Document:

BEAR STEARNS ASSET BACKED SECURITIES I LLC,  

Depositor,

EMC MORTGAGE CORPORATION,

Seller and Master Servicer,

and

LASALLE BANK NATIONAL ASSOCIATION,

Trustee

____________________

POOLING AND SERVICING AGREEMENT

Dated as of April 1, 2005

________________________________________

BEAR STEARNS ASSET BACKED SECURITIES I TRUST 2005-HE4

ASSET-BACKED CERTIFICATES, SERIES 2005-HE4

 

 

 

TABLE OF CONTENTS

ARTICLE I

 

DEFINITIONS

	
            Section 1.01
 	
            Defined Terms.
 	
             

	
            Section 1.02
 	
            Allocation of Certain Interest Shortfalls.
 

ARTICLE II

 

CONVEYANCE OF TRUST FUND REPRESENTATIONS AND WARRANTIES

	
            Section 2.01
 	
            Conveyance of Trust Fund.
 	
             

	
            Section 2.02
 	
            Acceptance of the Mortgage Loans.
 	
             

	
            Section 2.03
 	
            Representations, Warranties and Covenants of the Master Servicer and the Seller.
 	
             

	
            Section 2.04
 	
            Representations and Warranties of the Depositor.
 	
             

	
            Section 2.05
 	
            Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases.
 
	
            Section 2.06
 	
            Countersignature and Delivery of Certificates.
 	
             

							

ARTICLE III

 

ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

	
            Section 3.01
 	
            The Master Servicer to act as Master Servicer. 
 
	
            Section 3.02
 	
            Due-on-Sale Clauses; Assumption Agreements. 
 
	
            Section 3.03
 	
            Subservicers. 
 
	
            Section 3.04
 	
            Documents, Records and Funds in Possession of the Master Servicer To Be Held for Trustee. 
 
	
            Section 3.05
 	
            Maintenance of Hazard Insurance. 
 
	
            Section 3.06
 	
            Presentment of Claims and Collection of Proceeds. 
 
	
            Section 3.07
 	
            Maintenance of the Primary Mortgage Insurance Policies. 
 
	
            Section 3.08
 	
            Fidelity Bond, Errors and Omissions Insurance. 
 
	
            Section 3.09
 	
            Realization Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds and Realized Losses; Repurchases of Certain Mortgage Loans. 
 
	
            Section 3.10
 	
            Servicing Compensation. 
 
	
            Section 3.11
 	
            REO Property. 
 
	
            Section 3.12
 	
            Liquidation Reports. 
 
	
            Section 3.13
 	
            Annual Certificate as to Compliance. 
 
	
            Section 3.14
 	
            Annual Independent Certified Public Accountants’ Servicing Report. 
 
	
            Section 3.15
 	
            Books and Records. 
 
	
            Section 3.16
 	
            Reports Filed with Securities and Exchange Commission. 
 
	
            Section 3.17
 	
            UCC. 
 
	
            Section 3.18
 	
            Optional Purchase of Certain Mortgage Loans. 
 
	
            Section 3.19
 	
            Obligations of the Master Servicer in Respect of Mortgage Rates and Scheduled Payments. 
 
	
            Section 3.20
 	
            Reserve Fund; Payments to and from Swap Administrator. 
 
	Section 3.21	Advancing Facility.
	Section 3.22	Special Servicer.

	
             
 	
             
 

 

ARTICLE IV

 

ACCOUNTS

	
            Section 4.01
 	
            Collection of Mortgage Loan Payments; Protected Account.
 	
             

	
            Section 4.02
 	
            Permitted Withdrawals From the Protected Account.
 	
             

	
            Section 4.03
 	
            Collection of Taxes; Assessments and Similar Items; Escrow Accounts.
 
	
            Section 4.04
 	
            Distribution Account.
 	
             

	
            Section 4.05
 	
            Permitted Withdrawals and Transfers from the Distribution Account.
 	
             

	
            Section 4.06
 	
            Class P Certificate Account.
 	
             

							

ARTICLE V

 

DISTRIBUTIONS AND ADVANCES

	
            Section 5.01
 	
            Advances.
 	
             

	
            Section 5.02
 	
            Compensating Interest Payments.
 	
             

	
            Section 5.03
 	
            REMIC Distributions.
 	
             

	
            Section 5.04
 	
            Distributions.
 	
             

	
            Section 5.05
 	
            Allocation of Realized Losses.
 	
             

	
            Section 5.06
 	
            Monthly Statements to Certificateholders.
 	
             

	
            Section 5.07
 	
            REMIC Designations and REMIC Distributions.
 
								

ARTICLE VI

 

THE CERTIFICATES

	
            Section 6.01
 	
            The Certificates.
 	
             

	
            Section 6.02
 	
            Certificate Register; 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
 	
            Access to List of Certificateholders’ Names and Addresses.
 	
             

	
            Section 6.06
 	
            Book-Entry Certificates.
 	
             

	
            Section 6.07
 	
            Notices to Depository.
 	
             

	
            Section 6.08
 	
            Definitive Certificates.
 	
             

	
            Section 6.09
 	
            Maintenance of Office or Agency.
 	
             

										

ARTICLE VII

 

THE DEPOSITOR AND THE MASTER SERVICER

	
            Section 7.01
 	
            Liabilities of the Depositor and the Master Servicer.
 	
             

	
            Section 7.02
 	
            Merger or Consolidation of the Depositor or the Master Servicer.
 
	
            Section 7.03
 	
            Indemnification of the Trustee and the Master Servicer.
 	
             

				

 

 

 

 

	
            Section 7.04
 	
            Limitations on Liability of the Depositor, the Master Servicer and Others
 
	
            Section 7.05
 	
            Master Servicer Not to Resign
 	
             

	
            Section 7.06
 	
            Successor Master Servicer
 	
             

	
            Section 7.07
 	
            Sale and Assignment of Master Servicing
 	
             

					

ARTICLE VIII

 

DEFAULT; TERMINATION OF MASTER SERVICER

	
            Section 8.01
 	
            Events of Default.
 	
             

	
            Section 8.02
 	
            Trustee to Act; Appointment of Successor.
 
	
            Section 8.03
 	
            Notification to Certificateholders.
 	
             

	
            Section 8.04
 	
            Waiver of Defaults.
 	
             

					

ARTICLE IX

 

CONCERNING THE TRUSTEE

	
            Section 9.01
 	
            Duties of Trustee.
 	
             

	
            Section 9.02
 	
            Certain Matters Affecting the Trustee.
 	
             

	
            Section 9.03
 	
            Trustee Not Liable for Certificates or Mortgage Loans.
 
	
            Section 9.04
 	
            Trustee May Own Certificates.
 	
             

	
            Section 9.05
 	
            Trustee’s Fees and Expenses.
 	
             

	
            Section 9.06
 	
            Eligibility Requirements for Trustee.
 	
             

	
            Section 9.07
 	
            Insurance.
 	
             

	
            Section 9.08
 	
            Resignation and Removal of Trustee.
 	
             

	
            Section 9.09
 	
            Successor Trustee.
 	
             

	
            Section 9.10
 	
            Merger or Consolidation of Trustee.
 	
             

	
            Section 9.11
 	
            Appointment of Co-Trustee or Separate Trustee.
 	
             

	
            Section 9.12
 	
            Tax Matters.
 	
             

													

ARTICLE X

 

TERMINATION

	
            Section 10.01
 	
            Termination upon Liquidation or Repurchase of all Mortgage Loans.
 
	
            Section 10.02
 	
            Final Distribution on the Certificates.
 	
             

	
            Section 10.03
 	
            Additional Termination Requirements.
 	
             

				

ARTICLE XI

 

MISCELLANEOUS PROVISIONS

	
            Section 11.01
 	
            Amendment.
 	
             

	
            Section 11.02
 	
            Recordation of Agreement; Counterparts.
 
	
            Section 11.03
 	
            Governing Law.
 	
             

	
            Section 11.04
 	
            Intention of Parties.
 	
             

	
            Section 11.05
 	
            Notices.
 	
             

						

 

 

 

 

	
            Section 11.06
 	
            Severability of Provisions.
 	
             

	
            Section 11.07
 	
            Assignment.
 	
             

	
            Section 11.08
 	
            Limitation on Rights of Certificateholders.
 
	
            Section 11.09
 	
            Inspection and Audit Rights.
 	
             

	
            Section 11.10
 	
            Certificates Nonassessable and Fully Paid.
 
	
            Section 11.11
 	
            Third Party Rights.
 	
             

						

 

 

 

 

Exhibits

	
            Exhibit A-1
 	
            Form of Class A Certificates
 	
             

	
            Exhibit A-2
 	
            Form of Class M Certificates
 	
             

	
            Exhibit A-3
 	
            Form of Class P Certificates
 	
             

	
            Exhibit A-4
 	
            Form of Class CE Certificates
 	
             

	
            Exhibit A-5
 	
            Form of Class R Certificates
 	
             

	
            Exhibit B
 	
            Mortgage Loan Schedule
 	
             

	
            Exhibit C
 	
            Form of Transfer Affidavit
 	
             

	
            Exhibit D
 	
            Form of Transferor Certificate
 	
             

	
            Exhibit E
 	
            Form of Investment Letter (Non-Rule 144A)
 	
             

	
            Exhibit F
 	
            Form of Rule 144A and Related Matters Certificate
 
	
            Exhibit G
 	
            Form of Request for Release
 	
             

	
            Exhibit H
 	
            DTC Letter of Representations
 	
             

	
            Exhibit I
 	
            Schedule of Mortgage Loans with Lost Notes
 	
             

	
            Exhibit J
 	
            Form of Custodial Agreement
 	
             

	
            Exhibit K
 	
            Form of Back-Up Certification
 	
             

	
            Exhibit L
 	
            Form of Mortgage Loan Purchase Agreement
 	
             

	
            Exhibit M
 	
            Swap Agreement
 	
             

	
            Exhibit N
 	
            Special Servicer Delinquency Triggers
 	
             

															

 

 

 

POOLING AND SERVICING AGREEMENT, dated as of April 1, 2005, among BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited liability company, as depositor (the “Depositor”), EMC MORTGAGE CORPORATION, a Delaware corporation, as seller (in such capacity, the “Seller”) and as master servicer (in such capacity, the “Master Servicer”) and LASALLE BANK NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, but solely as trustee (the “Trustee”).

PRELIMINARY STATEMENT

The Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee in return for the Certificates.

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, the Swap Agreement, the Swap Account and any rights or obligations in respect of the Swap Administration Agreement) as a REMIC (as defined herein) for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC I”. The Class R-1 Certificates will be the sole class of Residual Interests (as defined herein) in REMIC I for purposes of the REMIC Provisions (as defined herein). The following table irrevocably sets forth the designation, the Uncertificated REMIC I Pass-Through Rate, the initial Uncertificated Principal 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
 
 	
            
Uncertificated REMIC I 
 Pass-Through Rate
 
 	
            
Initial Uncertificated Principal Balance
 
 	
            
Latest Possible Maturity Date (1)
 
 
	
            I-1-A
 	
            Variable(2)
 	
            $                1,695,147.15
 	
            April 25, 2035
 
	
            I-1-B
 	
            Variable(2)
 	
            $                1,695,147.15
 	
            April 25, 2035
 
	
            I-2-A
 	
            Variable(2)
 	
            $                2,030,315.42
 	
            April 25, 2035
 
	
            I-2-B
 	
            Variable(2)
 	
            $                2,030,315.42
 	
            April 25, 2035
 
	
            I-3-A
 	
            Variable(2)
 	
            $                2,360,524.24
 	
            April 25, 2035
 
	
            I-3-B
 	
            Variable(2)
 	
            $                2,360,524.24
 	
            April 25, 2035
 
	
            I-4-A
 	
            Variable(2)
 	
            $                2,682,699.70
 	
            April 25, 2035
 
	
            I-4-B
 	
            Variable(2)
 	
            $                2,682,699.70
 	
            April 25, 2035
 
	
            I-5-A
 	
            Variable(2)
 	
            $                2,993,610.85
 	
            April 25, 2035
 
	
            I-5-B
 	
            Variable(2)
 	
            $                2,993,610.85
 	
            April 25, 2035
 
	
            I-6-A
 	
            Variable(2)
 	
            $                3,289,804.91
 	
            April 25, 2035
 
	
            I-6-B
 	
            Variable(2)
 	
            $                3,289,804.91
 	
            April 25, 2035
 
	
            I-7-A
 	
            Variable(2)
 	
            $                3,568,083.09
 	
            April 25, 2035
 
	
            I-7-B
 	
            Variable(2)
 	
            $                3,568,083.09
 	
            April 25, 2035
 
	
            I-8-A
 	
            Variable(2)
 	
            $                3,817,004.75
 	
            April 25, 2035
 
	
            I-8-B
 	
            Variable(2)
 	
            $                3,817,004.75
 	
            April 25, 2035
 
	
            I-9-A
 	
            Variable(2)
 	
            $                3,877,235.15
 	
            April 25, 2035
 
	
            I-9-B
 	
            Variable(2)
 	
            $                3,877,235.15
 	
            April 25, 2035
 

 

 

 

 

	
            I-10-A
 	
            Variable(2)
 	
            $                3,703,364.71
 	
            April 25, 2035
 
	
            I-10-B
 	
            Variable(2)
 	
            $                3,703,364.71
 	
            April 25, 2035
 
	
            I-11-A
 	
            Variable(2)
 	
            $                3,534,734.26
 	
            April 25, 2035
 
	
            I-11-B
 	
            Variable(2)
 	
            $                3,534,734.26
 	
            April 25, 2035
 
	
            I-12-A
 	
            Variable(2)
 	
            $                3,373,783.96
 	
            April 25, 2035
 
	
            I-12-B
 	
            Variable(2)
 	
            $                3,373,783.96
 	
            April 25, 2035
 
	
            I-13-A
 	
            Variable(2)
 	
            $                3,220,238.42
 	
            April 25, 2035
 
	
            I-13-B
 	
            Variable(2)
 	
            $                3,220,238.42
 	
            April 25, 2035
 
	
            I-14-A
 	
            Variable(2)
 	
            $                3,073,754.57
 	
            April 25, 2035
 
	
            I-14-B
 	
            Variable(2)
 	
            $                3,073,754.57
 	
            April 25, 2035
 
	
            I-15-A
 	
            Variable(2)
 	
            $                2,934,005.21
 	
            April 25, 2035
 
	
            I-15-B
 	
            Variable(2)
 	
            $                2,934,005.21
 	
            April 25, 2035
 
	
            I-16-A
 	
            Variable(2)
 	
            $                2,800,678.50
 	
            April 25, 2035
 
	
            I-16-B
 	
            Variable(2)
 	
            $                2,800,678.50
 	
            April 25, 2035
 
	
            I-17-A
 	
            Variable(2)
 	
            $                2,673,485.93
 	
            April 25, 2035
 
	
            I-17-B
 	
            Variable(2)
 	
            $                2,673,485.93
 	
            April 25, 2035
 
	
            I-18-A
 	
            Variable(2)
 	
            $                2,552,121.66
 	
            April 25, 2035
 
	
            I-18-B
 	
            Variable(2)
 	
            $                2,552,121.66
 	
            April 25, 2035
 
	
            I-19-A
 	
            Variable(2)
 	
            $                2,436,340.30
 	
            April 25, 2035
 
	
            I-19-B
 	
            Variable(2)
 	
            $                2,436,340.30
 	
            April 25, 2035
 
	
            I-20-A
 	
            Variable(2)
 	
            $                2,326,007.38
 	
            April 25, 2035
 
	
            I-20-B
 	
            Variable(2)
 	
            $                2,326,007.38
 	
            April 25, 2035
 
	
            I-21-A
 	
            Variable(2)
 	
            $                2,221,485.98
 	
            April 25, 2035
 
	
            I-21-B
 	
            Variable(2)
 	
            $                2,221,485.98
 	
            April 25, 2035
 
	
            I-22-A
 	
            Variable(2)
 	
            $                2,119,272.16
 	
            April 25, 2035
 
	
            I-22-B
 	
            Variable(2)
 	
            $                2,119,272.16
 	
            April 25, 2035
 
	
            I-23-A
 	
            Variable(2)
 	
            $                2,019,026.38
 	
            April 25, 2035
 
	
            I-23-B
 	
            Variable(2)
 	
            $                2,019,026.38
 	
            April 25, 2035
 
	
            I-24-A
 	
            Variable(2)
 	
            $              29,886,541.77
 	
            April 25, 2035
 
	
            I-24-B
 	
            Variable(2)
 	
            $              29,886,541.77
 	
            April 25, 2035
 
	
            I-25-A
 	
            Variable(2)
 	
            $                   520,396.53
 	
            April 25, 2035
 
	
            I-25-B
 	
            Variable(2)
 	
            $                   520,396.53
 	
            April 25, 2035
 
	
            I-26-A
 	
            Variable(2)
 	
            $                   499,689.99
 	
            April 25, 2035
 
	
            I-26-B
 	
            Variable(2)
 	
            $                   499,689.99
 	
            April 25, 2035
 
	
            I-27-A
 	
            Variable(2)
 	
            $                   479,838.13
 	
            April 25, 2035
 
	
            I-27-B
 	
            Variable(2)
 	
            $                   479,838.13
 	
            April 25, 2035
 
	
            I-28-A
 	
            Variable(2)
 	
            $                   460,804.50
 	
            April 25, 2035
 
	
            I-28-B
 	
            Variable(2)
 	
            $                   460,804.50
 	
            April 25, 2035
 
	
            I-29-A
 	
            Variable(2)
 	
            $                   442,554.22
 	
            April 25, 2035
 
	
            I-29-B
 	
            Variable(2)
 	
            $                   442,554.22
 	
            April 25, 2035
 
	
            I-30-A
 	
            Variable(2)
 	
            $                   425,054.01
 	
            April 25, 2035
 
	
            I-30-B
 	
            Variable(2)
 	
            $                   425,054.01
 	
            April 25, 2035
 
	
            I-31-A
 	
            Variable(2)
 	
            $                   408,271.97
 	
            April 25, 2035
 
	
            I-31-B
 	
            Variable(2)
 	
            $                   408,271.97
 	
            April 25, 2035
 
	
            I-32-A
 	
            Variable(2)
 	
            $                   392,557.99
 	
            April 25, 2035
 

 

 

 

 

	
            I-32-B
 	
            Variable(2)
 	
            $                   392,557.99
 	
            April 25, 2035
 
	
            I-33-A
 	
            Variable(2)
 	
            $                   377,365.48
 	
            April 25, 2035
 
	
            I-33-B
 	
            Variable(2)
 	
            $                   377,365.48
 	
            April 25, 2035
 
	
            I-34-A
 	
            Variable(2)
 	
            $                   361,719.23
 	
            April 25, 2035
 
	
            I-34-B
 	
            Variable(2)
 	
            $                   361,719.23
 	
            April 25, 2035
 
	
            I-35-A
 	
            Variable(2)
 	
            $                   347,386.14
 	
            April 25, 2035
 
	
            I-35-B
 	
            Variable(2)
 	
            $                   347,386.14
 	
            April 25, 2035
 
	
            I-36-A
 	
            Variable(2)
 	
            $                3,578,226.91
 	
            April 25, 2035
 
	
            I-36-B
 	
            Variable(2)
 	
            $                3,578,226.91
 	
            April 25, 2035
 
	
            I-37-A
 	
            Variable(2)
 	
            $                   167,261.09
 	
            April 25, 2035
 
	
            I-37-B
 	
            Variable(2)
 	
            $                   167,261.09
 	
            April 25, 2035
 
	
            I-38-A
 	
            Variable(2)
 	
            $                   161,999.87
 	
            April 25, 2035
 
	
            I-38-B
 	
            Variable(2)
 	
            $                   161,999.87
 	
            April 25, 2035
 
	
            I-39-A
 	
            Variable(2)
 	
            $                   156,903.31
 	
            April 25, 2035
 
	
            I-39-B
 	
            Variable(2)
 	
            $                   156,903.31
 	
            April 25, 2035
 
	
            I-40-A
 	
            Variable(2)
 	
            $                   151,966.26
 	
            April 25, 2035
 
	
            I-40-B
 	
            Variable(2)
 	
            $                   151,966.26
 	
            April 25, 2035
 
	
            I-41-A
 	
            Variable(2)
 	
            $                   147,183.76
 	
            April 25, 2035
 
	
            I-41-B
 	
            Variable(2)
 	
            $                   147,183.76
 	
            April 25, 2035
 
	
            I-42-A
 	
            Variable(2)
 	
            $                   142,550.97
 	
            April 25, 2035
 
	
            I-42-B
 	
            Variable(2)
 	
            $                   142,550.97
 	
            April 25, 2035
 
	
            I-43-A
 	
            Variable(2)
 	
            $                   138,063.24
 	
            April 25, 2035
 
	
            I-43-B
 	
            Variable(2)
 	
            $                   138,063.24
 	
            April 25, 2035
 
	
            I-44-A
 	
            Variable(2)
 	
            $                   133,716.03
 	
            April 25, 2035
 
	
            I-44-B
 	
            Variable(2)
 	
            $                   133,716.03
 	
            April 25, 2035
 
	
            I-45-A
 	
            Variable(2)
 	
            $                   129,504.98
 	
            April 25, 2035
 
	
            I-45-B
 	
            Variable(2)
 	
            $                   129,504.98
 	
            April 25, 2035
 
	
            I-46-A
 	
            Variable(2)
 	
            $                   125,425.83
 	
            April 25, 2035
 
	
            I-46-B
 	
            Variable(2)
 	
            $                   125,425.83
 	
            April 25, 2035
 
	
            I-47-A
 	
            Variable(2)
 	
            $                   121,474.45
 	
            April 25, 2035
 
	
            I-47-B
 	
            Variable(2)
 	
            $                   121,474.45
 	
            April 25, 2035
 
	
            I-48-A
 	
            Variable(2)
 	
            $                   117,646.88
 	
            April 25, 2035
 
	
            I-48-B
 	
            Variable(2)
 	
            $                   117,646.88
 	
            April 25, 2035
 
	
            I-49-A
 	
            Variable(2)
 	
            $                   113,939.26
 	
            April 25, 2035
 
	
            I-49-B
 	
            Variable(2)
 	
            $                   113,939.26
 	
            April 25, 2035
 
	
            I-50-A
 	
            Variable(2)
 	
            $                   110,347.81
 	
            April 25, 2035
 
	
            I-50-B
 	
            Variable(2)
 	
            $                   110,347.81
 	
            April 25, 2035
 
	
            I-51-A
 	
            Variable(2)
 	
            $                   106,868.94
 	
            April 25, 2035
 
	
            I-51-B
 	
            Variable(2)
 	
            $                   106,868.94
 	
            April 25, 2035
 
	
            I-52-A
 	
            Variable(2)
 	
            $                   103,499.13
 	
            April 25, 2035
 
	
            I-52-B
 	
            Variable(2)
 	
            $                   103,499.13
 	
            April 25, 2035
 
	
            I-53-A
 	
            Variable(2)
 	
            $                   100,234.97
 	
            April 25, 2035
 
	
            I-53-B
 	
            Variable(2)
 	
            $                   100,234.97
 	
            April 25, 2035
 
	
            I-54-A
 	
            Variable(2)
 	
            $                     97,073.15
 	
            April 25, 2035
 
	
            I-54-B
 	
            Variable(2)
 	
            $                     97,073.15
 	
            April 25, 2035
 

 

 

 

 

	
            I-55-A
 	
            Variable(2)
 	
            $                     94,010.50
 	
            April 25, 2035
 
	
            I-55-B
 	
            Variable(2)
 	
            $                     94,010.50
 	
            April 25, 2035
 
	
            I-56-A
 	
            Variable(2)
 	
            $                     91,043.91
 	
            April 25, 2035
 
	
            I-56-B
 	
            Variable(2)
 	
            $                     91,043.91
 	
            April 25, 2035
 
	
            I-57-A
 	
            Variable(2)
 	
            $                     88,277.09
 	
            April 25, 2035
 
	
            I-57-B
 	
            Variable(2)
 	
            $                     88,277.09
 	
            April 25, 2035
 
	
            I-58-A
 	
            Variable(2)
 	
            $                     85,660.27
 	
            April 25, 2035
 
	
            I-58-B
 	
            Variable(2)
 	
            $                     85,660.27
 	
            April 25, 2035
 
	
            I-59-A
 	
            Variable(2)
 	
            $                     83,006.51
 	
            April 25, 2035
 
	
            I-59-B
 	
            Variable(2)
 	
            $                     83,006.51
 	
            April 25, 2035
 
	
            I-60-A
 	
            Variable(2)
 	
            $                2,513,609.76
 	
            April 25, 2035
 
	
            I-60-B
 	
            Variable(2)
 	
            $                2,513,609.76
 	
            April 25, 2035
 
	
            II-1-A
 	
            Variable(2)
 	
            $                   229,999.44
 	
            April 25, 2035
 
	
            II-1-B
 	
            Variable(2)
 	
            $                   229,999.44
 	
            April 25, 2035
 
	
            II-2-A
 	
            Variable(2)
 	
            $                   275,475.44
 	
            April 25, 2035
 
	
            II-2-B
 	
            Variable(2)
 	
            $                   275,475.44
 	
            April 25, 2035
 
	
            II-3-A
 	
            Variable(2)
 	
            $                   320,278.54
 	
            April 25, 2035
 
	
            II-3-B
 	
            Variable(2)
 	
            $                   320,278.54
 	
            April 25, 2035
 
	
            II-4-A
 	
            Variable(2)
 	
            $                   363,991.66
 	
            April 25, 2035
 
	
            II-4-B
 	
            Variable(2)
 	
            $                   363,991.66
 	
            April 25, 2035
 
	
            II-5-A
 	
            Variable(2)
 	
            $                   406,176.43
 	
            April 25, 2035
 
	
            II-5-B
 	
            Variable(2)
 	
            $                   406,176.43
 	
            April 25, 2035
 
	
            II-6-A
 	
            Variable(2)
 	
            $                   446,364.36
 	
            April 25, 2035
 
	
            II-6-B
 	
            Variable(2)
 	
            $                   446,364.36
 	
            April 25, 2035
 
	
            II-7-A
 	
            Variable(2)
 	
            $                   484,121.45
 	
            April 25, 2035
 
	
            II-7-B
 	
            Variable(2)
 	
            $                   484,121.45
 	
            April 25, 2035
 
	
            II-8-A
 	
            Variable(2)
 	
            $                   517,895.42
 	
            April 25, 2035
 
	
            II-8-B
 	
            Variable(2)
 	
            $                   517,895.42
 	
            April 25, 2035
 
	
            II-9-A
 	
            Variable(2)
 	
            $                   526,067.55
 	
            April 25, 2035
 
	
            II-9-B
 	
            Variable(2)
 	
            $                   526,067.55
 	
            April 25, 2035
 
	
            II-10-A
 	
            Variable(2)
 	
            $                   502,476.61
 	
            April 25, 2035
 
	
            II-10-B
 	
            Variable(2)
 	
            $                   502,476.61
 	
            April 25, 2035
 
	
            II-11-A
 	
            Variable(2)
 	
            $                   479,596.65
 	
            April 25, 2035
 
	
            II-11-B
 	
            Variable(2)
 	
            $                   479,596.65
 	
            April 25, 2035
 
	
            II-12-A
 	
            Variable(2)
 	
            $                   457,758.73
 	
            April 25, 2035
 
	
            II-12-B
 	
            Variable(2)
 	
            $                   457,758.73
 	
            April 25, 2035
 
	
            II-13-A
 	
            Variable(2)
 	
            $                   436,925.51
 	
            April 25, 2035
 
	
            II-13-B
 	
            Variable(2)
 	
            $                   436,925.51
 	
            April 25, 2035
 
	
            II-14-A
 	
            Variable(2)
 	
            $                   417,050.41
 	
            April 25, 2035
 
	
            II-14-B
 	
            Variable(2)
 	
            $                   417,050.41
 	
            April 25, 2035
 
	
            II-15-A
 	
            Variable(2)
 	
            $                   398,089.07
 	
            April 25, 2035
 
	
            II-15-B
 	
            Variable(2)
 	
            $                   398,089.07
 	
            April 25, 2035
 
	
            II-16-A
 	
            Variable(2)
 	
            $                   379,999.15
 	
            April 25, 2035
 
	
            II-16-B
 	
            Variable(2)
 	
            $                   379,999.15
 	
            April 25, 2035
 
	
            II-17-A
 	
            Variable(2)
 	
            $                   362,741.52
 	
            April 25, 2035
 

 

 

 

 

	
            II-17-B
 	
            Variable(2)
 	
            $                   362,741.52
 	
            April 25, 2035
 
	
            II-18-A
 	
            Variable(2)
 	
            $                   346,274.69
 	
            April 25, 2035
 
	
            II-18-B
 	
            Variable(2)
 	
            $                   346,274.69
 	
            April 25, 2035
 
	
            II-19-A
 	
            Variable(2)
 	
            $                   330,565.34
 	
            April 25, 2035
 
	
            II-19-B
 	
            Variable(2)
 	
            $                   330,565.34
 	
            April 25, 2035
 
	
            II-20-A
 	
            Variable(2)
 	
            $                   315,595.25
 	
            April 25, 2035
 
	
            II-20-B
 	
            Variable(2)
 	
            $                   315,595.25
 	
            April 25, 2035
 
	
            II-21-A
 	
            Variable(2)
 	
            $                   301,413.67
 	
            April 25, 2035
 
	
            II-21-B
 	
            Variable(2)
 	
            $                   301,413.67
 	
            April 25, 2035
 
	
            II-22-A
 	
            Variable(2)
 	
            $                   287,545.19
 	
            April 25, 2035
 
	
            II-22-B
 	
            Variable(2)
 	
            $                   287,545.19
 	
            April 25, 2035
 
	
            II-23-A
 	
            Variable(2)
 	
            $                   273,943.73
 	
            April 25, 2035
 
	
            II-23-B
 	
            Variable(2)
 	
            $                   273,943.73
 	
            April 25, 2035
 
	
            II-24-A
 	
            Variable(2)
 	
            $                4,055,039.00
 	
            April 25, 2035
 
	
            II-24-B
 	
            Variable(2)
 	
            $                4,055,039.00
 	
            April 25, 2035
 
	
            II-25-A
 	
            Variable(2)
 	
            $                     70,607.98
 	
            April 25, 2035
 
	
            II-25-B
 	
            Variable(2)
 	
            $                     70,607.98
 	
            April 25, 2035
 
	
            II-26-A
 	
            Variable(2)
 	
            $                     67,798.49
 	
            April 25, 2035
 
	
            II-26-B
 	
            Variable(2)
 	
            $                     67,798.49
 	
            April 25, 2035
 
	
            II-27-A
 	
            Variable(2)
 	
            $                     65,104.97
 	
            April 25, 2035
 
	
            II-27-B
 	
            Variable(2)
 	
            $                     65,104.97
 	
            April 25, 2035
 
	
            II-28-A
 	
            Variable(2)
 	
            $                     62,522.46
 	
            April 25, 2035
 
	
            II-28-B
 	
            Variable(2)
 	
            $                     62,522.46
 	
            April 25, 2035
 
	
            II-29-A
 	
            Variable(2)
 	
            $                     60,046.25
 	
            April 25, 2035
 
	
            II-29-B
 	
            Variable(2)
 	
            $                     60,046.25
 	
            April 25, 2035
 
	
            II-30-A
 	
            Variable(2)
 	
            $                     57,671.80
 	
            April 25, 2035
 
	
            II-30-B
 	
            Variable(2)
 	
            $                     57,671.80
 	
            April 25, 2035
 
	
            II-31-A
 	
            Variable(2)
 	
            $                     55,394.79
 	
            April 25, 2035
 
	
            II-31-B
 	
            Variable(2)
 	
            $                     55,394.79
 	
            April 25, 2035
 
	
            II-32-A
 	
            Variable(2)
 	
            $                     53,262.70
 	
            April 25, 2035
 
	
            II-32-B
 	
            Variable(2)
 	
            $                     53,262.70
 	
            April 25, 2035
 
	
            II-33-A
 	
            Variable(2)
 	
            $                     51,201.36
 	
            April 25, 2035
 
	
            II-33-B
 	
            Variable(2)
 	
            $                     51,201.36
 	
            April 25, 2035
 
	
            II-34-A
 	
            Variable(2)
 	
            $                     49,078.46
 	
            April 25, 2035
 
	
            II-34-B
 	
            Variable(2)
 	
            $                     49,078.46
 	
            April 25, 2035
 
	
            II-35-A
 	
            Variable(2)
 	
            $                     47,133.74
 	
            April 25, 2035
 
	
            II-35-B
 	
            Variable(2)
 	
            $                     47,133.74
 	
            April 25, 2035
 
	
            II-36-A
 	
            Variable(2)
 	
            $                   485,497.78
 	
            April 25, 2035
 
	
            II-36-B
 	
            Variable(2)
 	
            $                   485,497.78
 	
            April 25, 2035
 
	
            II-37-A
 	
            Variable(2)
 	
            $                     22,694.17
 	
            April 25, 2035
 
	
            II-37-B
 	
            Variable(2)
 	
            $                     22,694.17
 	
            April 25, 2035
 
	
            II-38-A
 	
            Variable(2)
 	
            $                     21,980.32
 	
            April 25, 2035
 
	
            II-38-B
 	
            Variable(2)
 	
            $                     21,980.32
 	
            April 25, 2035
 
	
            II-39-A
 	
            Variable(2)
 	
            $                     21,288.82
 	
            April 25, 2035
 
	
            II-39-B
 	
            Variable(2)
 	
            $                     21,288.82
 	
            April 25, 2035
 

 

 

 

 

	
            II-40-A
 	
            Variable(2)
 	
            $                     20,618.95
 	
            April 25, 2035
 
	
            II-40-B
 	
            Variable(2)
 	
            $                     20,618.95
 	
            April 25, 2035
 
	
            II-41-A
 	
            Variable(2)
 	
            $                     19,970.05
 	
            April 25, 2035
 
	
            II-41-B
 	
            Variable(2)
 	
            $                     19,970.05
 	
            April 25, 2035
 
	
            II-42-A
 	
            Variable(2)
 	
            $                     19,341.47
 	
            April 25, 2035
 
	
            II-42-B
 	
            Variable(2)
 	
            $                     19,341.47
 	
            April 25, 2035
 
	
            II-43-A
 	
            Variable(2)
 	
            $                     18,732.57
 	
            April 25, 2035
 
	
            II-43-B
 	
            Variable(2)
 	
            $                     18,732.57
 	
            April 25, 2035
 
	
            II-44-A
 	
            Variable(2)
 	
            $                     18,142.74
 	
            April 25, 2035
 
	
            II-44-B
 	
            Variable(2)
 	
            $                     18,142.74
 	
            April 25, 2035
 
	
            II-45-A
 	
            Variable(2)
 	
            $                     17,571.38
 	
            April 25, 2035
 
	
            II-45-B
 	
            Variable(2)
 	
            $                     17,571.38
 	
            April 25, 2035
 
	
            II-46-A
 	
            Variable(2)
 	
            $                     17,017.91
 	
            April 25, 2035
 
	
            II-46-B
 	
            Variable(2)
 	
            $                     17,017.91
 	
            April 25, 2035
 
	
            II-47-A
 	
            Variable(2)
 	
            $                     16,481.79
 	
            April 25, 2035
 
	
            II-47-B
 	
            Variable(2)
 	
            $                     16,481.79
 	
            April 25, 2035
 
	
            II-48-A
 	
            Variable(2)
 	
            $                     15,962.46
 	
            April 25, 2035
 
	
            II-48-B
 	
            Variable(2)
 	
            $                     15,962.46
 	
            April 25, 2035
 
	
            II-49-A
 	
            Variable(2)
 	
            $                     15,459.40
 	
            April 25, 2035
 
	
            II-49-B
 	
            Variable(2)
 	
            $                     15,459.40
 	
            April 25, 2035
 
	
            II-50-A
 	
            Variable(2)
 	
            $                     14,972.11
 	
            April 25, 2035
 
	
            II-50-B
 	
            Variable(2)
 	
            $                     14,972.11
 	
            April 25, 2035
 
	
            II-51-A
 	
            Variable(2)
 	
            $                     14,500.10
 	
            April 25, 2035
 
	
            II-51-B
 	
            Variable(2)
 	
            $                     14,500.10
 	
            April 25, 2035
 
	
            II-52-A
 	
            Variable(2)
 	
            $                     14,042.88
 	
            April 25, 2035
 
	
            II-52-B
 	
            Variable(2)
 	
            $                     14,042.88
 	
            April 25, 2035
 
	
            II-53-A
 	
            Variable(2)
 	
            $                     13,599.99
 	
            April 25, 2035
 
	
            II-53-B
 	
            Variable(2)
 	
            $                     13,599.99
 	
            April 25, 2035
 
	
            II-54-A
 	
            Variable(2)
 	
            $                     13,170.99
 	
            April 25, 2035
 
	
            II-54-B
 	
            Variable(2)
 	
            $                     13,170.99
 	
            April 25, 2035
 
	
            II-55-A
 	
            Variable(2)
 	
            $                     12,755.45
 	
            April 25, 2035
 
	
            II-55-B
 	
            Variable(2)
 	
            $                     12,755.45
 	
            April 25, 2035
 
	
            II-56-A
 	
            Variable(2)
 	
            $                     12,352.94
 	
            April 25, 2035
 
	
            II-56-B
 	
            Variable(2)
 	
            $                     12,352.94
 	
            April 25, 2035
 
	
            II-57-A
 	
            Variable(2)
 	
            $                     11,977.53
 	
            April 25, 2035
 
	
            II-57-B
 	
            Variable(2)
 	
            $                     11,977.53
 	
            April 25, 2035
 
	
            II-58-A
 	
            Variable(2)
 	
            $                     11,622.48
 	
            April 25, 2035
 
	
            II-58-B
 	
            Variable(2)
 	
            $                     11,622.48
 	
            April 25, 2035
 
	
            II-59-A
 	
            Variable(2)
 	
            $                     11,262.42
 	
            April 25, 2035
 
	
            II-59-B
 	
            Variable(2)
 	
            $                     11,262.42
 	
            April 25, 2035
 
	
            II-60-A
 	
            Variable(2)
 	
            $                   341,049.35
 	
            April 25, 2035
 
	
            II-60-B
 	
            Variable(2)
 	
            $                   341,049.35
 	
            April 25, 2035
 
	
            III-1-A
 	
            Variable(2)
 	
            $                1,211,083.74
 	
            April 25, 2035
 
	
            III-1-B
 	
            Variable(2)
 	
            $                1,211,083.74
 	
            April 25, 2035
 
	
            III-2-A
 	
            Variable(2)
 	
            $                1,450,541.92
 	
            April 25, 2035
 

 

 

 

 

	
            III-2-B
 	
            Variable(2)
 	
            $                1,450,541.92
 	
            April 25, 2035
 
	
            III-3-A
 	
            Variable(2)
 	
            $                1,686,456.86
 	
            April 25, 2035
 
	
            III-3-B
 	
            Variable(2)
 	
            $                1,686,456.86
 	
            April 25, 2035
 
	
            III-4-A
 	
            Variable(2)
 	
            $                1,916,632.42
 	
            April 25, 2035
 
	
            III-4-B
 	
            Variable(2)
 	
            $                1,916,632.42
 	
            April 25, 2035
 
	
            III-5-A
 	
            Variable(2)
 	
            $                2,138,760.30
 	
            April 25, 2035
 
	
            III-5-B
 	
            Variable(2)
 	
            $                2,138,760.30
 	
            April 25, 2035
 
	
            III-6-A
 	
            Variable(2)
 	
            $                2,350,373.67
 	
            April 25, 2035
 
	
            III-6-B
 	
            Variable(2)
 	
            $                2,350,373.67
 	
            April 25, 2035
 
	
            III-7-A
 	
            Variable(2)
 	
            $                2,549,187.20
 	
            April 25, 2035
 
	
            III-7-B
 	
            Variable(2)
 	
            $                2,549,187.20
 	
            April 25, 2035
 
	
            III-8-A
 	
            Variable(2)
 	
            $                2,727,027.21
 	
            April 25, 2035
 
	
            III-8-B
 	
            Variable(2)
 	
            $                2,727,027.21
 	
            April 25, 2035
 
	
            III-9-A
 	
            Variable(2)
 	
            $                2,770,058.32
 	
            April 25, 2035
 
	
            III-9-B
 	
            Variable(2)
 	
            $                2,770,058.32
 	
            April 25, 2035
 
	
            III-10-A
 	
            Variable(2)
 	
            $                2,645,838.03
 	
            April 25, 2035
 
	
            III-10-B
 	
            Variable(2)
 	
            $                2,645,838.03
 	
            April 25, 2035
 
	
            III-11-A
 	
            Variable(2)
 	
            $                2,525,361.41
 	
            April 25, 2035
 
	
            III-11-B
 	
            Variable(2)
 	
            $                2,525,361.41
 	
            April 25, 2035
 
	
            III-12-A
 	
            Variable(2)
 	
            $                2,410,371.81
 	
            April 25, 2035
 
	
            III-12-B
 	
            Variable(2)
 	
            $                2,410,371.81
 	
            April 25, 2035
 
	
            III-13-A
 	
            Variable(2)
 	
            $                2,300,672.48
 	
            April 25, 2035
 
	
            III-13-B
 	
            Variable(2)
 	
            $                2,300,672.48
 	
            April 25, 2035
 
	
            III-14-A
 	
            Variable(2)
 	
            $                2,196,018.31
 	
            April 25, 2035
 
	
            III-14-B
 	
            Variable(2)
 	
            $                2,196,018.31
 	
            April 25, 2035
 
	
            III-15-A
 	
            Variable(2)
 	
            $                2,096,175.55
 	
            April 25, 2035
 
	
            III-15-B
 	
            Variable(2)
 	
            $                2,096,175.55
 	
            April 25, 2035
 
	
            III-16-A
 	
            Variable(2)
 	
            $                2,000,921.39
 	
            April 25, 2035
 
	
            III-16-B
 	
            Variable(2)
 	
            $                2,000,921.39
 	
            April 25, 2035
 
	
            III-17-A
 	
            Variable(2)
 	
            $                1,910,049.73
 	
            April 25, 2035
 
	
            III-17-B
 	
            Variable(2)
 	
            $                1,910,049.73
 	
            April 25, 2035
 
	
            III-18-A
 	
            Variable(2)
 	
            $                1,823,342.03
 	
            April 25, 2035
 
	
            III-18-B
 	
            Variable(2)
 	
            $                1,823,342.03
 	
            April 25, 2035
 
	
            III-19-A
 	
            Variable(2)
 	
            $                1,740,623.01
 	
            April 25, 2035
 
	
            III-19-B
 	
            Variable(2)
 	
            $                1,740,623.01
 	
            April 25, 2035
 
	
            III-20-A
 	
            Variable(2)
 	
            $                1,661,796.57
 	
            April 25, 2035
 
	
            III-20-B
 	
            Variable(2)
 	
            $                1,661,796.57
 	
            April 25, 2035
 
	
            III-21-A
 	
            Variable(2)
 	
            $                1,587,122.13
 	
            April 25, 2035
 
	
            III-21-B
 	
            Variable(2)
 	
            $                1,587,122.13
 	
            April 25, 2035
 
	
            III-22-A
 	
            Variable(2)
 	
            $                1,514,096.32
 	
            April 25, 2035
 
	
            III-22-B
 	
            Variable(2)
 	
            $                1,514,096.32
 	
            April 25, 2035
 
	
            III-23-A
 	
            Variable(2)
 	
            $                1,442,476.56
 	
            April 25, 2035
 
	
            III-23-B
 	
            Variable(2)
 	
            $                1,442,476.56
 	
            April 25, 2035
 
	
            III-24-A
 	
            Variable(2)
 	
            $              21,352,190.48
 	
            April 25, 2035
 
	
            III-24-B
 	
            Variable(2)
 	
            $              21,352,190.48
 	
            April 25, 2035
 

 

 

 

 

	
            III-25-A
 	
            Variable(2)
 	
            $                   371,792.96
 	
            April 25, 2035
 
	
            III-25-B
 	
            Variable(2)
 	
            $                   371,792.96
 	
            April 25, 2035
 
	
            III-26-A
 	
            Variable(2)
 	
            $                   356,999.34
 	
            April 25, 2035
 
	
            III-26-B
 	
            Variable(2)
 	
            $                   356,999.34
 	
            April 25, 2035
 
	
            III-27-A
 	
            Variable(2)
 	
            $                   342,816.35
 	
            April 25, 2035
 
	
            III-27-B
 	
            Variable(2)
 	
            $                   342,816.35
 	
            April 25, 2035
 
	
            III-28-A
 	
            Variable(2)
 	
            $                   329,217.93
 	
            April 25, 2035
 
	
            III-28-B
 	
            Variable(2)
 	
            $                   329,217.93
 	
            April 25, 2035
 
	
            III-29-A
 	
            Variable(2)
 	
            $                   316,179.17
 	
            April 25, 2035
 
	
            III-29-B
 	
            Variable(2)
 	
            $                   316,179.17
 	
            April 25, 2035
 
	
            III-30-A
 	
            Variable(2)
 	
            $                   303,676.29
 	
            April 25, 2035
 
	
            III-30-B
 	
            Variable(2)
 	
            $                   303,676.29
 	
            April 25, 2035
 
	
            III-31-A
 	
            Variable(2)
 	
            $                   291,686.50
 	
            April 25, 2035
 
	
            III-31-B
 	
            Variable(2)
 	
            $                   291,686.50
 	
            April 25, 2035
 
	
            III-32-A
 	
            Variable(2)
 	
            $                   280,459.78
 	
            April 25, 2035
 
	
            III-32-B
 	
            Variable(2)
 	
            $                   280,459.78
 	
            April 25, 2035
 
	
            III-33-A
 	
            Variable(2)
 	
            $                   269,605.62
 	
            April 25, 2035
 
	
            III-33-B
 	
            Variable(2)
 	
            $                   269,605.62
 	
            April 25, 2035
 
	
            III-34-A
 	
            Variable(2)
 	
            $                   258,427.28
 	
            April 25, 2035
 
	
            III-34-B
 	
            Variable(2)
 	
            $                   258,427.28
 	
            April 25, 2035
 
	
            III-35-A
 	
            Variable(2)
 	
            $                   248,187.13
 	
            April 25, 2035
 
	
            III-35-B
 	
            Variable(2)
 	
            $                   248,187.13
 	
            April 25, 2035
 
	
            III-36-A
 	
            Variable(2)
 	
            $                2,556,434.37
 	
            April 25, 2035
 
	
            III-36-B
 	
            Variable(2)
 	
            $                2,556,434.37
 	
            April 25, 2035
 
	
            III-37-A
 	
            Variable(2)
 	
            $                   119,498.29
 	
            April 25, 2035
 
	
            III-37-B
 	
            Variable(2)
 	
            $                   119,498.29
 	
            April 25, 2035
 
	
            III-38-A
 	
            Variable(2)
 	
            $                   115,739.46
 	
            April 25, 2035
 
	
            III-38-B
 	
            Variable(2)
 	
            $                   115,739.46
 	
            April 25, 2035
 
	
            III-39-A
 	
            Variable(2)
 	
            $                   112,098.26
 	
            April 25, 2035
 
	
            III-39-B
 	
            Variable(2)
 	
            $                   112,098.26
 	
            April 25, 2035
 
	
            III-40-A
 	
            Variable(2)
 	
            $                   108,571.03
 	
            April 25, 2035
 
	
            III-40-B
 	
            Variable(2)
 	
            $                   108,571.03
 	
            April 25, 2035
 
	
            III-41-A
 	
            Variable(2)
 	
            $                   105,154.21
 	
            April 25, 2035
 
	
            III-41-B
 	
            Variable(2)
 	
            $                   105,154.21
 	
            April 25, 2035
 
	
            III-42-A
 	
            Variable(2)
 	
            $                   101,844.35
 	
            April 25, 2035
 
	
            III-42-B
 	
            Variable(2)
 	
            $                   101,844.35
 	
            April 25, 2035
 
	
            III-43-A
 	
            Variable(2)
 	
            $                     98,638.13
 	
            April 25, 2035
 
	
            III-43-B
 	
            Variable(2)
 	
            $                     98,638.13
 	
            April 25, 2035
 
	
            III-44-A
 	
            Variable(2)
 	
            $                     95,532.31
 	
            April 25, 2035
 
	
            III-44-B
 	
            Variable(2)
 	
            $                     95,532.31
 	
            April 25, 2035
 
	
            III-45-A
 	
            Variable(2)
 	
            $                     92,523.75
 	
            April 25, 2035
 
	
            III-45-B
 	
            Variable(2)
 	
            $                     92,523.75
 	
            April 25, 2035
 
	
            III-46-A
 	
            Variable(2)
 	
            $                     89,609.44
 	
            April 25, 2035
 
	
            III-46-B
 	
            Variable(2)
 	
            $                     89,609.44
 	
            April 25, 2035
 
	
            III-47-A
 	
            Variable(2)
 	
            $                     86,786.41
 	
            April 25, 2035
 

 

 

 

 

	
            III-47-B
 	
            Variable(2)
 	
            $                     86,786.41
 	
            April 25, 2035
 
	
            III-48-A
 	
            Variable(2)
 	
            $                     84,051.83
 	
            April 25, 2035
 
	
            III-48-B
 	
            Variable(2)
 	
            $                     84,051.83
 	
            April 25, 2035
 
	
            III-49-A
 	
            Variable(2)
 	
            $                     81,402.95
 	
            April 25, 2035
 
	
            III-49-B
 	
            Variable(2)
 	
            $                     81,402.95
 	
            April 25, 2035
 
	
            III-50-A
 	
            Variable(2)
 	
            $                     78,837.07
 	
            April 25, 2035
 
	
            III-50-B
 	
            Variable(2)
 	
            $                     78,837.07
 	
            April 25, 2035
 
	
            III-51-A
 	
            Variable(2)
 	
            $                     76,351.63
 	
            April 25, 2035
 
	
            III-51-B
 	
            Variable(2)
 	
            $                     76,351.63
 	
            April 25, 2035
 
	
            III-52-A
 	
            Variable(2)
 	
            $                     73,944.09
 	
            April 25, 2035
 
	
            III-52-B
 	
            Variable(2)
 	
            $                     73,944.09
 	
            April 25, 2035
 
	
            III-53-A
 	
            Variable(2)
 	
            $                     71,612.04
 	
            April 25, 2035
 
	
            III-53-B
 	
            Variable(2)
 	
            $                     71,612.04
 	
            April 25, 2035
 
	
            III-54-A
 	
            Variable(2)
 	
            $                     69,353.11
 	
            April 25, 2035
 
	
            III-54-B
 	
            Variable(2)
 	
            $                     69,353.11
 	
            April 25, 2035
 
	
            III-55-A
 	
            Variable(2)
 	
            $                     67,165.02
 	
            April 25, 2035
 
	
            III-55-B
 	
            Variable(2)
 	
            $                     67,165.02
 	
            April 25, 2035
 
	
            III-56-A
 	
            Variable(2)
 	
            $                     65,045.56
 	
            April 25, 2035
 
	
            III-56-B
 	
            Variable(2)
 	
            $                     65,045.56
 	
            April 25, 2035
 
	
            III-57-A
 	
            Variable(2)
 	
            $                     63,068.83
 	
            April 25, 2035
 
	
            III-57-B
 	
            Variable(2)
 	
            $                     63,068.83
 	
            April 25, 2035
 
	
            III-58-A
 	
            Variable(2)
 	
            $                     61,199.26
 	
            April 25, 2035
 
	
            III-58-B
 	
            Variable(2)
 	
            $                     61,199.26
 	
            April 25, 2035
 
	
            III-59-A
 	
            Variable(2)
 	
            $                     59,303.31
 	
            April 25, 2035
 
	
            III-59-B
 	
            Variable(2)
 	
            $                     59,303.31
 	
            April 25, 2035
 
	
            III-60-A
 	
            Variable(2)
 	
            $                1,795,827.53
 	
            April 25, 2035
 
	
            III-60-B
 	
            Variable(2)
 	
            $                1,795,827.53
 	
            April 25, 2035
 
	
            IV-1-A
 	
            Variable(2)
 	
            $                1,276,077.88
 	
            April 25, 2035
 
	
            IV-1-B
 	
            Variable(2)
 	
            $                1,276,077.88
 	
            April 25, 2035
 
	
            IV-2-A
 	
            Variable(2)
 	
            $                1,528,386.84
 	
            April 25, 2035
 
	
            IV-2-B
 	
            Variable(2)
 	
            $                1,528,386.84
 	
            April 25, 2035
 
	
            IV-3-A
 	
            Variable(2)
 	
            $                1,776,962.41
 	
            April 25, 2035
 
	
            IV-3-B
 	
            Variable(2)
 	
            $                1,776,962.41
 	
            April 25, 2035
 
	
            IV-4-A
 	
            Variable(2)
 	
            $                2,019,490.60
 	
            April 25, 2035
 
	
            IV-4-B
 	
            Variable(2)
 	
            $                2,019,490.60
 	
            April 25, 2035
 
	
            IV-5-A
 	
            Variable(2)
 	
            $                2,253,539.22
 	
            April 25, 2035
 
	
            IV-5-B
 	
            Variable(2)
 	
            $                2,253,539.22
 	
            April 25, 2035
 
	
            IV-6-A
 	
            Variable(2)
 	
            $                2,476,509.05
 	
            April 25, 2035
 
	
            IV-6-B
 	
            Variable(2)
 	
            $                2,476,509.05
 	
            April 25, 2035
 
	
            IV-7-A
 	
            Variable(2)
 	
            $                2,685,992.13
 	
            April 25, 2035
 
	
            IV-7-B
 	
            Variable(2)
 	
            $                2,685,992.13
 	
            April 25, 2035
 
	
            IV-8-A
 	
            Variable(2)
 	
            $                2,873,376.11
 	
            April 25, 2035
 
	
            IV-8-B
 	
            Variable(2)
 	
            $                2,873,376.11
 	
            April 25, 2035
 
	
            IV-9-A
 	
            Variable(2)
 	
            $                2,918,716.53
 	
            April 25, 2035
 
	
            IV-9-B
 	
            Variable(2)
 	
            $                2,918,716.53
 	
            April 25, 2035
 

 

 

 

 

	
            IV-10-A
 	
            Variable(2)
 	
            $                2,787,829.83
 	
            April 25, 2035
 
	
            IV-10-B
 	
            Variable(2)
 	
            $                2,787,829.83
 	
            April 25, 2035
 
	
            IV-11-A
 	
            Variable(2)
 	
            $                2,660,887.70
 	
            April 25, 2035
 
	
            IV-11-B
 	
            Variable(2)
 	
            $                2,660,887.70
 	
            April 25, 2035
 
	
            IV-12-A
 	
            Variable(2)
 	
            $                2,539,727.05
 	
            April 25, 2035
 
	
            IV-12-B
 	
            Variable(2)
 	
            $                2,539,727.05
 	
            April 25, 2035
 
	
            IV-13-A
 	
            Variable(2)
 	
            $                2,424,140.59
 	
            April 25, 2035
 
	
            IV-13-B
 	
            Variable(2)
 	
            $                2,424,140.59
 	
            April 25, 2035
 
	
            IV-14-A
 	
            Variable(2)
 	
            $                2,313,870.04
 	
            April 25, 2035
 
	
            IV-14-B
 	
            Variable(2)
 	
            $                2,313,870.04
 	
            April 25, 2035
 
	
            IV-15-A
 	
            Variable(2)
 	
            $                2,208,669.11
 	
            April 25, 2035
 
	
            IV-15-B
 	
            Variable(2)
 	
            $                2,208,669.11
 	
            April 25, 2035
 
	
            IV-16-A
 	
            Variable(2)
 	
            $                2,108,303.03
 	
            April 25, 2035
 
	
            IV-16-B
 	
            Variable(2)
 	
            $                2,108,303.03
 	
            April 25, 2035
 
	
            IV-17-A
 	
            Variable(2)
 	
            $                2,012,554.64
 	
            April 25, 2035
 
	
            IV-17-B
 	
            Variable(2)
 	
            $                2,012,554.64
 	
            April 25, 2035
 
	
            IV-18-A
 	
            Variable(2)
 	
            $                1,921,193.68
 	
            April 25, 2035
 
	
            IV-18-B
 	
            Variable(2)
 	
            $                1,921,193.68
 	
            April 25, 2035
 
	
            IV-19-A
 	
            Variable(2)
 	
            $                1,834,035.45
 	
            April 25, 2035
 
	
            IV-19-B
 	
            Variable(2)
 	
            $                1,834,035.45
 	
            April 25, 2035
 
	
            IV-20-A
 	
            Variable(2)
 	
            $                1,750,978.71
 	
            April 25, 2035
 
	
            IV-20-B
 	
            Variable(2)
 	
            $                1,750,978.71
 	
            April 25, 2035
 
	
            IV-21-A
 	
            Variable(2)
 	
            $                1,672,296.78
 	
            April 25, 2035
 
	
            IV-21-B
 	
            Variable(2)
 	
            $                1,672,296.78
 	
            April 25, 2035
 
	
            IV-22-A
 	
            Variable(2)
 	
            $                1,595,351.96
 	
            April 25, 2035
 
	
            IV-22-B
 	
            Variable(2)
 	
            $                1,595,351.96
 	
            April 25, 2035
 
	
            IV-23-A
 	
            Variable(2)
 	
            $                1,519,888.64
 	
            April 25, 2035
 
	
            IV-23-B
 	
            Variable(2)
 	
            $                1,519,888.64
 	
            April 25, 2035
 
	
            IV-24-A
 	
            Variable(2)
 	
            $              22,498,079.18
 	
            April 25, 2035
 
	
            IV-24-B
 	
            Variable(2)
 	
            $              22,498,079.18
 	
            April 25, 2035
 
	
            IV-25-A
 	
            Variable(2)
 	
            $                   391,745.63
 	
            April 25, 2035
 
	
            IV-25-B
 	
            Variable(2)
 	
            $                   391,745.63
 	
            April 25, 2035
 
	
            IV-26-A
 	
            Variable(2)
 	
            $                   376,158.10
 	
            April 25, 2035
 
	
            IV-26-B
 	
            Variable(2)
 	
            $                   376,158.10
 	
            April 25, 2035
 
	
            IV-27-A
 	
            Variable(2)
 	
            $                   361,213.96
 	
            April 25, 2035
 
	
            IV-27-B
 	
            Variable(2)
 	
            $                   361,213.96
 	
            April 25, 2035
 
	
            IV-28-A
 	
            Variable(2)
 	
            $                   346,885.77
 	
            April 25, 2035
 
	
            IV-28-B
 	
            Variable(2)
 	
            $                   346,885.77
 	
            April 25, 2035
 
	
            IV-29-A
 	
            Variable(2)
 	
            $                   333,147.28
 	
            April 25, 2035
 
	
            IV-29-B
 	
            Variable(2)
 	
            $                   333,147.28
 	
            April 25, 2035
 
	
            IV-30-A
 	
            Variable(2)
 	
            $                   319,973.41
 	
            April 25, 2035
 
	
            IV-30-B
 	
            Variable(2)
 	
            $                   319,973.41
 	
            April 25, 2035
 
	
            IV-31-A
 	
            Variable(2)
 	
            $                   307,340.18
 	
            April 25, 2035
 
	
            IV-31-B
 	
            Variable(2)
 	
            $                   307,340.18
 	
            April 25, 2035
 
	
            IV-32-A
 	
            Variable(2)
 	
            $                   295,510.96
 	
            April 25, 2035
 

 

 

 

 

	
            IV-32-B
 	
            Variable(2)
 	
            $                   295,510.96
 	
            April 25, 2035
 
	
            IV-33-A
 	
            Variable(2)
 	
            $                   284,074.30
 	
            April 25, 2035
 
	
            IV-33-B
 	
            Variable(2)
 	
            $                   284,074.30
 	
            April 25, 2035
 
	
            IV-34-A
 	
            Variable(2)
 	
            $                   272,296.07
 	
            April 25, 2035
 
	
            IV-34-B
 	
            Variable(2)
 	
            $                   272,296.07
 	
            April 25, 2035
 
	
            IV-35-A
 	
            Variable(2)
 	
            $                   261,506.36
 	
            April 25, 2035
 
	
            IV-35-B
 	
            Variable(2)
 	
            $                   261,506.36
 	
            April 25, 2035
 
	
            IV-36-A
 	
            Variable(2)
 	
            $                2,693,628.22
 	
            April 25, 2035
 
	
            IV-36-B
 	
            Variable(2)
 	
            $                2,693,628.22
 	
            April 25, 2035
 
	
            IV-37-A
 	
            Variable(2)
 	
            $                   125,911.29
 	
            April 25, 2035
 
	
            IV-37-B
 	
            Variable(2)
 	
            $                   125,911.29
 	
            April 25, 2035
 
	
            IV-38-A
 	
            Variable(2)
 	
            $                   121,950.74
 	
            April 25, 2035
 
	
            IV-38-B
 	
            Variable(2)
 	
            $                   121,950.74
 	
            April 25, 2035
 
	
            IV-39-A
 	
            Variable(2)
 	
            $                   118,114.14
 	
            April 25, 2035
 
	
            IV-39-B
 	
            Variable(2)
 	
            $                   118,114.14
 	
            April 25, 2035
 
	
            IV-40-A
 	
            Variable(2)
 	
            $                   114,397.61
 	
            April 25, 2035
 
	
            IV-40-B
 	
            Variable(2)
 	
            $                   114,397.61
 	
            April 25, 2035
 
	
            IV-41-A
 	
            Variable(2)
 	
            $                   110,797.42
 	
            April 25, 2035
 
	
            IV-41-B
 	
            Variable(2)
 	
            $                   110,797.42
 	
            April 25, 2035
 
	
            IV-42-A
 	
            Variable(2)
 	
            $                   107,309.94
 	
            April 25, 2035
 
	
            IV-42-B
 	
            Variable(2)
 	
            $                   107,309.94
 	
            April 25, 2035
 
	
            IV-43-A
 	
            Variable(2)
 	
            $                   103,931.65
 	
            April 25, 2035
 
	
            IV-43-B
 	
            Variable(2)
 	
            $                   103,931.65
 	
            April 25, 2035
 
	
            IV-44-A
 	
            Variable(2)
 	
            $                   100,659.15
 	
            April 25, 2035
 
	
            IV-44-B
 	
            Variable(2)
 	
            $                   100,659.15
 	
            April 25, 2035
 
	
            IV-45-A
 	
            Variable(2)
 	
            $                     97,489.14
 	
            April 25, 2035
 
	
            IV-45-B
 	
            Variable(2)
 	
            $                     97,489.14
 	
            April 25, 2035
 
	
            IV-46-A
 	
            Variable(2)
 	
            $                     94,418.42
 	
            April 25, 2035
 
	
            IV-46-B
 	
            Variable(2)
 	
            $                     94,418.42
 	
            April 25, 2035
 
	
            IV-47-A
 	
            Variable(2)
 	
            $                     91,443.90
 	
            April 25, 2035
 
	
            IV-47-B
 	
            Variable(2)
 	
            $                     91,443.90
 	
            April 25, 2035
 
	
            IV-48-A
 	
            Variable(2)
 	
            $                     88,562.57
 	
            April 25, 2035
 
	
            IV-48-B
 	
            Variable(2)
 	
            $                     88,562.57
 	
            April 25, 2035
 
	
            IV-49-A
 	
            Variable(2)
 	
            $                     85,771.53
 	
            April 25, 2035
 
	
            IV-49-B
 	
            Variable(2)
 	
            $                     85,771.53
 	
            April 25, 2035
 
	
            IV-50-A
 	
            Variable(2)
 	
            $                     83,067.95
 	
            April 25, 2035
 
	
            IV-50-B
 	
            Variable(2)
 	
            $                     83,067.95
 	
            April 25, 2035
 
	
            IV-51-A
 	
            Variable(2)
 	
            $                     80,449.12
 	
            April 25, 2035
 
	
            IV-51-B
 	
            Variable(2)
 	
            $                     80,449.12
 	
            April 25, 2035
 
	
            IV-52-A
 	
            Variable(2)
 	
            $                     77,912.38
 	
            April 25, 2035
 
	
            IV-52-B
 	
            Variable(2)
 	
            $                     77,912.38
 	
            April 25, 2035
 
	
            IV-53-A
 	
            Variable(2)
 	
            $                     75,455.17
 	
            April 25, 2035
 
	
            IV-53-B
 	
            Variable(2)
 	
            $                     75,455.17
 	
            April 25, 2035
 
	
            IV-54-A
 	
            Variable(2)
 	
            $                     73,075.02
 	
            April 25, 2035
 
	
            IV-54-B
 	
            Variable(2)
 	
            $                     73,075.02
 	
            April 25, 2035
 

 

 

 

 

	
            IV-55-A
 	
            Variable(2)
 	
            $                     70,769.50
 	
            April 25, 2035
 
	
            IV-55-B
 	
            Variable(2)
 	
            $                     70,769.50
 	
            April 25, 2035
 
	
            IV-56-A
 	
            Variable(2)
 	
            $                     68,536.31
 	
            April 25, 2035
 
	
            IV-56-B
 	
            Variable(2)
 	
            $                     68,536.31
 	
            April 25, 2035
 
	
            IV-57-A
 	
            Variable(2)
 	
            $                     66,453.49
 	
            April 25, 2035
 
	
            IV-57-B
 	
            Variable(2)
 	
            $                     66,453.49
 	
            April 25, 2035
 
	
            IV-58-A
 	
            Variable(2)
 	
            $                     64,483.59
 	
            April 25, 2035
 
	
            IV-58-B
 	
            Variable(2)
 	
            $                     64,483.59
 	
            April 25, 2035
 
	
            IV-59-A
 	
            Variable(2)
 	
            $                     62,485.89
 	
            April 25, 2035
 
	
            IV-59-B
 	
            Variable(2)
 	
            $                     62,485.89
 	
            April 25, 2035
 
	
            IV-60-A
 	
            Variable(2)
 	
            $                1,892,202.58
 	
            April 25, 2035
 
	
            IV-60-B
 	
            Variable(2)
 	
            $                1,892,202.58
 	
            April 25, 2035
 
	
            P
 	
            0.00%
 	
            $                          100.00
 	
            April 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 “Uncertificated REMIC I Pass-Through 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-2 Certificates will be the sole class of Residual Interests in REMIC II for purposes of the REMIC Provisions. The following table irrevocably sets forth the designation, the Uncertificated REMIC II Pass-Through Rate, the initial Uncertificated Principal 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 (as defined herein). None of the REMIC II Regular Interests will be certificated.

	
            
Designation
 
 	
            
Uncertificated REMIC II

Pass-Through Rate
 
 	
            
Initial Uncertificated Principal Balance
 
 	
            
Latest Possible Maturity Date (1)
 
 
	
            AA
 	
            Variable(2)
 	
            $           277,441,407.74 
 	
            April 25, 2035
 
	
            I-A-1
 	
            Variable(2)
 	
            $                  563,315.00 
 	
            April 25, 2035
 
	
            I-A-2
 	
            Variable(2)
 	
            $                  224,315.00 
 	
            April 25, 2035
 
	
            I-A-3
 	
            Variable(2)
 	
            $                    53,120.00 
 	
            April 25, 2035
 
	
            II-A-1
 	
            Variable(2)
 	
            $                    91,255.00 
 	
            April 25, 2035
 
	
            II-A-2
 	
            Variable(2)
 	
            $                    22,815.00 
 	
            April 25, 2035
 
	
            III-A-1
 	
            Variable(2)
 	
            $                  480,530.00 
 	
            April 25, 2035
 
	
            III-A-2
 	
            Variable(2)
 	
            $                  120,135.00 
 	
            April 25, 2035
 
	
            IV-A-1
 	
            Variable(2)
 	
            $                  506,320.00 
 	
            April 25, 2035
 
	
            IV-A-2
 	
            Variable(2)
 	
            $                  126,580.00 
 	
            April 25, 2035
 
	
            M-1
 	
            Variable(2)
 	
            $                  212,330.00 
 	
            April 25, 2035
 

 

 

 

 

	
            M-2
 	
            Variable(2)
 	
            $                  164,200.00 
 	
            April 25, 2035
 
	
            M-3
 	
            Variable(2)
 	
            $                    45,295.00 
 	
            April 25, 2035
 
	
            M-4
 	
            Variable(2)
 	
            $                    39,635.00 
 	
            April 25, 2035
 
	
            M-5
 	
            Variable(2)
 	
            $                    39,635.00 
 	
            April 25, 2035
 
	
            M-6
 	
            Variable(2)
 	
            $                    31,140.00 
 	
            April 25, 2035
 
	
            M-7
 	
            Variable(2)
 	
            $                    24,065.00 
 	
            April 25, 2035
 
	
            M-8
 	
            Variable(2)
 	
            $                    28,310.00 
 	
            April 25, 2035
 
	
            ZZ
 	
            Variable(2)
 	
            $               2,889,074.55 
 	
            April 25, 2035
 
	
            P
 	
            0.00%
 	
            $                         100.00 
 	
            April 25, 2035
 
	
            IO
 	
            (2)
 	
            (3)
 	
            April 25, 2035
 
	
            1A
 	
            Variable(2)
 	
            $                      4,937.88 
 	
            April 25, 2035
 
	
            1B
 	
            Variable(2)
 	
            $                    21,752.88 
 	
            April 25, 2035
 
	
            2A
 	
            Variable(2)
 	
            $                         670.05 
 	
            April 25, 2035
 
	
            2B
 	
            Variable(2)
 	
            $                      2,951.45 
 	
            April 25, 2035
 
	
            3A
 	
            Variable(2)
 	
            $                      3,527.86 
 	
            April 25, 2035
 
	
            3B
 	
            Variable(2)
 	
            $                    15,541.16 
 	
            April 25, 2035
 
	
            4A
 	
            Variable(2)
 	
            $                      3,717.20 
 	
            April 25, 2035
 
	
            4B
 	
            Variable(2)
 	
            $                    16,375.20 
 	
            April 25, 2035
 
	
            XX
 	
            Variable(2)
 	
            $           283,034,003.60 
 	
            April 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 “Uncertificated REMIC II Pass-Through Rate” herein.
 

	
            (3)
 	
            REMIC II Regular Interest IO will not have an Uncertificated Principal Balance but will accrue interest on its uncertificated notional amount calculated in accordance with the definition of “Uncertificated Notional Amount” herein.
 

 

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-3 Certificates will represent the sole class of Residual Interests in REMIC III for purposes of the REMIC Provisions.

The following table irrevocably sets forth the designation, Pass-Through Rate, Initial Certificate Principal Balance (or initial Uncertificated Principal Balance, in the case of the Class CE, P and IO Interests) and, for purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii), the “latest possible maturity date” for each class of Certificates and interests that represents ownership of one or more of the Regular Interests in REMIC III created hereunder.  

Each Certificate, other than the Class P Certificate, the Class CE Certificate and the Class R Certificates, represents ownership of a Regular Interest in REMIC III and also represents (i) the right to receive payments with respect to the Basis Risk Shortfall Carry Forward Amount (as defined herein) and (ii) the obligation to pay Class IO Distribution Amounts (as defined herein).  

 

 

The entitlement to principal of  the Regular Interest which corresponds to each Certificate shall be equal in amount and timing to the entitlement to principal of such Certificate.  

 

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Certificate or Uncertificated
 Principal Balance
 
 	
            
Latest Possible Maturity Date(1)
 
 
	
            I-A-1(2)
 	
            Variable(3)
 	
            $     112,663,000.00
 	
            April 25, 2035
 
	
            I-A-2(2)
 	
            Variable(3)
 	
            $        44,863,000.00
 	
            April 25, 2035
 
	
            I-A-3(2)
 	
            Variable(3)
 	
            $        10,624,000.00
 	
            April 25, 2035
 
	
            II-A-1(2)
 	
            Variable(3)
 	
            $        18,251,000.00
 	
            April 25, 2035
 
	
            II-A-2(2)
 	
            Variable(3)
 	
            $          4,563,000.00
 	
            April 25, 2035
 
	
            III-A-1(2)
 	
            Variable(3)
 	
            $        96,106,000.00
 	
            April 25, 2035
 
	
            III-A-2(2)
 	
            Variable(3)
 	
            $        24,027,000.00
 	
            April 25, 2035
 
	
            IV-A-1
 	
            Variable(3)
 	
            $     101,264,000.00
 	
            April 25, 2035
 
	
            IV-A-2
 	
            Variable(3)
 	
            $        25,316,000.00
 	
            April 25, 2035
 
	
            M-1(2)
 	
            Variable(3)
 	
            $        42,466,000.00
 	
            April 25, 2035
 
	
            M-2(2)
 	
            Variable(3)
 	
            $        32,840,000.00
 	
            April 25, 2035
 
	
            M-3(2)
 	
            Variable(3)
 	
            $          9,059,000.00
 	
            April 25, 2035
 
	
            M-4(2)
 	
            Variable(3)
 	
            $          7,927,000.00
 	
            April 25, 2035
 
	
            M-5(2)
 	
            Variable(3)
 	
            $          7,927,000.00
 	
            April 25, 2035
 
	
            M-6(2)
 	
            Variable(3)
 	
            $          6,228,000.00
 	
            April 25, 2035
 
	
            M-7(2)
 	
            Variable(3)
 	
            $          4,813,000.00
 	
            April 25, 2035
 
	
            M-8(2)
 	
            Variable(3)
 	
            $          5,662,000.00
 	
            April 25, 2035
 
	
            Class CE Interest
 	
            Variable(3)(4)
 	
            $        11,607,954.58
 	
            April 25, 2035
 
	
            Class P Interest
 	
            0.00%(5)
 	
            $                     100.00
 	
            April 25, 2035
 
	
            Class IO Interest
 	
            (6)
 	
            (7)
 	
             
 

___________________

	
            (1)
 	
            For purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations, the Distribution Date in the month 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 III Regular Interest.
 
	
            (2)
 	
            This Class of Certificates represents ownership of a Regular Interest in REMIC III.  Any amount distributed on this Class of Certificates on any Distribution Date in excess of the amount distributable on the related Regular Interest in REMIC III on such Distribution Date shall be treated for federal income tax purposes as having been paid from the Reserve Fund or the Swap Account, as applicable, and any amount distributable on the related Regular Interest in REMIC III on such Distribution Date in excess of the amount distributable on such Class of Certificates on such Distribution Date shall be treated as having been paid to the Swap Account, all pursuant to and as further provided in Section 3.20 hereof.
 
	
            (3)
 	
            Calculated in accordance with the definition of “Pass-Through Rate” herein.  Each Regular Interest  in REMIC III (other than the Class CE, P and IO Interests) which corresponds to a Certificate will have the same Pass-Through Rate as such Certificate, except with respect to the Net Rate Cap.  The Net Rate Cap for each such Regular Interest in REMIC III and Certificate is specified in the definition of “Net Rate Cap”.  
 
	
            (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 aggregate Uncertificated Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P). The Class CE Interest will not accrue interest on its Uncertificated Principal Balance.
 

	
            (5)
 	
            The Class P Interest is not entitled to distributions in respect of interest.
 

	
            (6)
 	
            For federal income tax purposes, the Class IO Interest will not have a Pass-Through Rate, but will be entitled to 100% of the amounts distributed on REMIC II Regular Interest IO. 
 

 

 

 

 

	
            (7)
 	
            For federal income tax purposes, the Class IO Interest will not have an Uncertificated Principal Balance, but will have a notional amount equal to the Uncertificated Notional Amount of REMIC II Regular Interest IO.  
 

 

REMIC IV

As provided herein, the Trustee shall 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-4 Interest represents the sole class of Residual Interests in REMIC IV for purposes of the REMIC Provisions.

The following table sets forth the Class designation, Pass Through Rate, Initial 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:

 

	
            
Class Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Certificate Principal Balance
 
 	
            
Latest Possible
 Maturity Date(1)
 
 
	
            CE
 	
            Variable(2)
 	
            $        11,607,954.58
 	
            April 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 shall 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-5 Interest represents the sole class of Residual Interests in REMIC V for purposes of the REMIC Provisions.

The following table sets forth the Class designation, Pass-Through Rate, Initial 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:

 

	
            
Class Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial

Certificate Principal Balance
 
 	
            
Latest Possible

Maturity Date(1)
 
 
	
            P
 	
            0.00%(2)
 	
            $                  100.00
 	
            April 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 shall elect to treat the segregated pool of assets consisting of the Class IO Interest as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC VI”. The Class R-6 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 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 interests that represents a Regular Interest in REMIC VI created hereunder:

 

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Initial Uncertificated Principal Balance
 
 	
            
Latest Possible

Maturity Date(1)
 
 
	
            IO(2)
 	
            (3)
 	
            (4)
 	
            April 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 REMIC VI Regular Interest IO.
 
	
            (2)
 	
            REMIC VI Regular Interest IO will be held as an asset of the Swap Account established by the Swap Administrator.  
 
	
            (3)
 	
            REMIC VI Regular Interest IO will not have a Pass-Through Rate, but will receive 100% of amounts received in respect of the Class IO Interest.
 
	
            (4)
 	
            REMIC VI Regular Interest IO will not have an Uncertificated Principal Balance, but will have a notional amount equal to the Uncertificated Notional Amount of the Class IO Interest.
 

 

The Trust Fund shall be named, and may be referred to as, the “Bear Stearns Asset Backed Securities I Trust 2005-HE4.” The Certificates issued hereunder may be referred to as “Asset-Backed Certificates, Series 2005-HE4” (including for purposes of any endorsement or assignment of a Mortgage Note or Mortgage).

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

 

 

 

ARTICLE I

 

DEFINITIONS

	
            Section 1.01
 	
            Defined Terms.  
 

In addition to those terms defined in Section 1.02, whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

Accepted Servicing Practices:  With respect to each Mortgage Loan, those mortgage servicing practices (including collection procedures) that are in accordance with all applicable statutes, regulations and prudent mortgage banking practices for similar mortgage loans.

Account:  The Distribution Account, the Reserve Fund, the Class P Certificate Account and the Protected Account.

Accrual Period:  With respect to the Certificates (other than the Class CE, Class P and the Residual Certificates) and any Distribution Date, the period from and including the immediately preceding Distribution Date (or with respect to the first Accrual Period, the Closing Date) to and including the day prior to such Distribution Date. With respect to the Class CE Certificates and any Distribution Date, the calendar month immediately preceding such Distribution Date. All calculations of interest on the Certificates (other than the Class CE, Class P and the Residual Certificates) will be made on the basis of the actual number of days elapsed in the related Accrual Period. All calculations of interest on the Class CE Certificates will be made on the basis of a 360-day year consisting of twelve 30-day months.

Advance:  An advance of delinquent payments of principal or interest in respect of a Mortgage Loan required to be made by the Master Servicer as provided in Section 5.01 hereof.

Affected Party:  As defined in the Swap Agreement.

Agreement:  This Pooling and Servicing Agreement and any and all amendments or supplements hereto made in accordance with the terms herein.

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.

Amount Held for Future Distribution:  As to any Distribution Date, the aggregate amount held in the Protected Account at the close of business on the immediately preceding Determination Date on account of (i) all Scheduled Payments or portions thereof received in respect of the Mortgage Loans due after the related Due Period and (ii) Principal Prepayments, 

 

 

Liquidation Proceeds, Subsequent Recoveries and Insurance Proceeds received in respect of such Mortgage Loans after the last day of the related Prepayment Period.

Applied Realized Loss Amount:  With respect to any Distribution Date and a Class of Class A Certificates and Class M Certificates, the sum of the Realized Losses with respect to the Mortgage Loans which have been applied in reduction of the Certificate Principal Balance of a Class of Certificates pursuant to Section 5.05 of this Agreement which have not previously been reimbursed or reduced by any Subsequent Recoveries applied to such Applied Realized Loss Amount.

Appraised Value:  With respect to any Mortgage Loan originated in connection with a refinancing, the appraised value of the Mortgaged Property based upon the appraisal made at the time of such refinancing or, with respect to any other Mortgage Loan, the lesser of (x) the appraised value of the Mortgaged Property based upon the appraisal made by a fee appraiser at the time of the origination of the related Mortgage Loan, and (y) the sales price of the Mortgaged Property at the time of such origination.

Basis Risk Shortfall Carry Forward Amount:  With respect to any Distribution Date and any Class of Class A Certificates and Class M Certificates, an amount equal to the sum of (A) the excess, if any, of (a) the amount of Current Interest that such Class would have been entitled to receive on such Distribution Date had the Pass-Though Rate applicable to such Class been calculated at a per annum rate equal to One-Month LIBOR plus the related Certificate Margin, over (b) the amount of Current Interest that such Class received on such Distribution Date if the Pass-Through Rate is limited to the related Net Rate Cap and (B) the amount in clause (A) for all previous Distribution Dates not previously paid, together with interest thereon at a rate equal to the related Pass-Through Rate for such Distribution Date.

Bankruptcy Code:  Title 11 of the United States Code.

Book-Entry Certificates:  Any of the Certificates that shall be registered in the name of the Depository or its nominee, the ownership of which is reflected on the books of the Depository or on the books of a person maintaining an account with the Depository (directly, as a “Depository Participant”, or indirectly, as an indirect participant in accordance with the rules of the Depository and as described in Section 6.06). As of the Closing Date, each Class of Regular Certificates (other than the Class M-7, Class M-8, Class CE and Class P Certificates) constitutes a Class of Book-Entry Certificates.

Business Day:  Any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in The City of New York, New York, Chicago, Illinois, Minneapolis, Minnesota or the city in which the Corporate Trust Office of the Trustee or the principal office of the Master Servicer is located are authorized or obligated by law or executive order to be closed.

Certificate:  Any one of the certificates of any Class executed and authenticated by the Trustee in substantially the forms attached hereto as Exhibits A-1 through A-5.

Certificate Margin:  With respect to the Class I-A-1 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest I-A-1, 0.100% per annum.

 

 

With respect to the Class I-A-2 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest I-A-2, 0.190% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.380% per annum in the case of each Distribution Date thereafter.

With respect to the Class I-A-3 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest I-A-3, 0.330% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.660% per annum in the case of each Distribution Date thereafter.

With respect to the Class II-A-1 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest II-A-1, 0.210% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.420% per annum in the case of each Distribution Date thereafter.

With respect to the Class II-A-2 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest II-A-2, 0.260% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.520% per annum in the case of each Distribution Date thereafter.

With respect to the Class III-A-1 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest III-A-1, 0.210% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.420% per annum in the case of each Distribution Date thereafter.

With respect to the Class III-A-2 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest III-A-2, 0.260% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.520% per annum in the case of each Distribution Date thereafter.

With respect to the Class IV-A-1 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest IV-A-1, 0.210% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.420% per annum in the case of each Distribution Date thereafter.

With respect to the Class IV-A-2 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest IV-A-2, 0.260% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.520% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-1 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-1, 0.430% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 0.645% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-2 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-2, 0.640% per annum in the 

 

 

case of each Distribution Date through and including the first possible Optional Termination Date and 0.960% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-3 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-3, 0.680% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 1.020% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-4 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-4, 1.250% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 1.875% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-5 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-5, 1.350% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 2.025% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-6 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-6, 1.800% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 2.700% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-7 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-7, 3.000% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 4.500% per annum in the case of each Distribution Date thereafter.

With respect to the Class M-8 Certificates and, for purposes of the definition of “One-Month LIBOR Pass-Through Rate”, REMIC II Regular Interest M-8, 3.000% per annum in the case of each Distribution Date through and including the first possible Optional Termination Date and 4.500% per annum in the case of each Distribution Date thereafter.

Certificate Notional Amount:  With respect to the Class CE Certificates and any Distribution Date, an amount equal to the Stated Principal Balance of the Mortgage Loans as of the beginning of the related Due Period.  The initial Certificate Notional Amount of the Class CE Certificates shall be $566,206,954.58. For federal income tax purposes, the Certificate Notional Amount for any Distribution Date shall be an amount equal to the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P) for such Distribution Date.

Certificate Owner:  With respect to a Book-Entry Certificate, the Person that is the beneficial owner of such Book-Entry Certificate.

Certificate Principal Balance:  As to any Certificate (other than any Class CE Certificate or Class R Certificate) and as of any Distribution Date, the Initial Certificate Principal Balance of such Certificate plus, in the case of a Class A Certificate and Class M Certificate, any Subsequent Recoveries added to the Certificate Principal Balance of such Certificate pursuant to 

 

 

Section 5.04(b), less the sum of (i) all amounts distributed with respect to such Certificate in reduction of the Certificate Principal Balance thereof on previous Distribution Dates pursuant to Section 5.04, and (ii) any Applied Realized Loss Amounts allocated to such Certificate on previous Distribution Dates.

Certificate Register:  The register maintained pursuant to Section 6.02 hereof.

Certificateholder or Holder:  The person in whose name a Certificate is registered in the Certificate Register (initially, Cede & Co., as nominee for the Depository, in the case of any Book-Entry Certificates).

Class:  All Certificates bearing the same Class designation as set forth in Section 6.01 hereof.

Class A Certificates:  Any of the Class I-A-1, Class I-A-2, Class I-A-3, Class II-A-1, Class II-A-2, Class III-A-1, Class III-A-2, Class IV-A-1 and Class IV-A-2 Certificates.

Class A Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the Principal Distribution Amount for such Distribution Date and (y) the excess, if any, of (i) the aggregate Certificate Principal Balance of the Class A Certificates immediately prior to such Distribution Date, over (ii) the lesser of (a) the product of (1) 54.60% and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (b) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class I-A Certificates:  Any of the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates.

Class I-A-1 Certificate:  Any Certificate designated as a “Class I-A-1 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class I-A-1 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class I-A-2 Certificate:  Any Certificate designated as a “Class I-A-2 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class I-A-2 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.

Class I-A-3 Certificate:  Any Certificate designated as a “Class I-A-3 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class I-A-3 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class I-A Principal Distribution Amount:  For any Distribution Date, with respect to the Class I-A Certificates and any Distribution Date, is the product of the Class A Principal Distribution Amount and a fraction, the numerator of which is the Principal Funds for Loan 

 

 

Group I for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Class II-A Certificates:  Any of the Class II-A-1 Certificates and Class II-A-2 Certificates.

Class II-A-1 Certificate:  Any Certificate designated as a “Class II-A-1 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class II-A-1 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class II-A-2 Certificate:  Any Certificate designated as a “Class II-A-2 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class II-A-2 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class II-A Principal Distribution Amount:  For any Distribution Date, with respect to the Class II-A Certificates and any Distribution Date, is the product of the Class A Principal Distribution Amount and a fraction, the numerator of which is the Principal Funds for Loan Group II for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Class III-A Certificates:  Any of the Class III-A-1 Certificates and Class III-A-2 Certificates.

Class III-A-1 Certificate:  Any Certificate designated as a “Class III-A-1 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class III-A-1 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class III-A-2 Certificate:  Any Certificate designated as a “Class III-A-2 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class III-A-2 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class III-A Principal Distribution Amount:  For any Distribution Date, with respect to the Class III-A Certificates and any Distribution Date, is the product of the Class A Principal Distribution Amount and a fraction, the numerator of which is the Principal Funds for Loan Group III for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Class IV-A Certificates:  Any of the Class IV-A-1 Certificates and Class IV-A-2 Certificates.

 

 

Class IV-A-1 Certificate:  Any Certificate designated as a “Class IV-A-1 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class IV-A-1 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class IV-A-2 Certificate:  Any Certificate designated as a “Class IV-A-2 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to the Percentage Interest of distributions provided for the Class IV-A-2 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class IV-A Principal Distribution Amount:  For any Distribution Date, with respect to the Class IV-A Certificates and any Distribution Date, is the product of the Class A Principal Distribution Amount and a fraction, the numerator of which is the Principal Funds for Loan Group IV for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Class CE Certificate:  Any Certificate designated as a “Class CE Certificate” on the face thereof, in the form of Exhibit A-4 hereto, representing the right to its Percentage Interest of distributions provided for the Class CE Certificates herein and evidencing (i) a Regular Interest in REMIC IV, (ii) the obligation to pay Basis Risk Shortfall Amounts and Swap Termination Payments and (iii) the right to receive the Class IO Distribution Amount.

Class CE Distribution Amount:  With respect to any Distribution Date, the sum of (i) the Current Interest for the Class CE Interest for such Distribution Date, (ii) any Overcollateralization Release Amount for such Distribution Date and (iii) without duplication, any Subsequent Recoveries not distributed to the Class A Certificates and Class M Certificates on such Distribution Date; provided, however that on any Distribution Date after the Distribution Date on which the Certificate Principal Balances of the Class A Certificates and Class M Certificates have been reduced to zero, the Class CE Distribution Amount shall include the Overcollateralization Amount.

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 3.20 hereof.  For purposes of clarity, the Class IO Distribution Amount for any Distribution Date shall equal the amount payable to the Swap Administrator on such Distribution Date in excess of the amount payable on REMIC VI Regular Interest IO on such Distribution Date, all as further provided in Section 3.20 hereof.

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

 

 

Class M Certificates:  Any of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates.

Class M-1 Certificate:  Any Certificate designated as a “Class M-1 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-1 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-1 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date) and (2) the Certificate Principal Balance of the Class M-1 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 69.60% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due
Period minus $2,831,034.

Class M-2 Certificate:  Any Certificate designated as a “Class M-2 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-2 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-2 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount and the Class M-1 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on such Distribution Date) and (3) the Certificate Principal Balance of the Class M-2 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of
(x) 81.20% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-3 Certificate:  Any Certificate designated as a “Class M-3 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-3 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

 

 

Class M-3 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount and the Class M-2 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (3) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the distribution
of the Class M-2 Principal Distribution Amount on such Distribution Date) and (4) the Certificate Principal Balance of the Class M-3 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 84.40% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-4 Certificate:  Any Certificate designated as a “Class M-4 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-4 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-4 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount and the Class M-3 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (3) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (4) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the distribution of the Class M-3 Principal Distribution Amount on such Distribution Date) and (5) the Certificate Principal Balance of the Class M-4 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 87.20% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-5 Certificate:  Any Certificate designated as a “Class M-5 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-5 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

 

 

Class M-5 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount and the Class M-4 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (3) the Certificate
Principal Balance of the Class M-2 Certificates (after taking into account the distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (4) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (5) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the distribution of the Class M-4 Principal Distribution Amount on such Distribution Date) and (6) the Certificate Principal Balance of the Class M-5 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 90.00% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-6 Certificate:  Any Certificate designated as a “Class M-6 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-6 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-6 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount and the Class M-5 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on
such Distribution Date), (3) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (4) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (5) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (6) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the distribution of the Class M-5 Principal Distribution Amount on such Distribution Date) and (7) the Certificate Principal Balance of the Class M-6 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 92.20% and (y) the aggregate Stated Principal Balance of the

 

 

Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-7 Certificate:  Any Certificate designated as a “Class M-7 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-7 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-7 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution Amount and the Class M-6 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the
Class M-1 Principal Distribution Amount on such Distribution Date), (3) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (4) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (5) the Certificate Principal Balance of the Class M-4 Certificates (after taking into account the distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (6) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the distribution of the Class M-5 Principal Distribution Amount on such Distribution Date) (7) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date) and (8) the Certificate Principal Balance of the Class M-7 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 93.90% and (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class M-8 Certificate:  Any Certificate designated as a “Class M-8 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to its Percentage Interest of distributions provided for the Class M-8 Certificates as set forth herein and evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the Basis Risk Shortfall Carry Forward Amount and (iii) the obligation to pay the Class IO Distribution Amount.  

Class M-8 Principal Distribution Amount:  For any Distribution Date, an amount equal to the lesser of (x) the remaining Principal Distribution Amount for such Distribution Date after distribution of the Class A Principal Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2 Principal Distribution Amount, the Class M-3 Principal Distribution Amount, the Class M-4 Principal Distribution Amount, the Class M-5 Principal Distribution 

 

 

Amount, the Class M-6 Principal Distribution Amount and the Class M-7 Principal Distribution Amount and (y) the excess, if any, of (a) the sum of (1) the aggregate Certificate Principal Balance of the Class A Certificates (after taking into account the distribution of the Class A Principal Distribution Amount on such Distribution Date), (2) the Certificate Principal Balance of the Class M-1 Certificates (after taking into account the distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (3) the Certificate Principal Balance of the Class M-2 Certificates (after taking into account the distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (4) the Certificate Principal Balance of the Class M-3 Certificates (after taking into account the distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (5) the Certificate
Principal Balance of the Class M-4 Certificates (after taking into account the distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (6) the Certificate Principal Balance of the Class M-5 Certificates (after taking into account the distribution of the Class M-5 Principal Distribution Amount on such Distribution Date) (7) the Certificate Principal Balance of the Class M-6 Certificates (after taking into account the distribution of the Class M-6 Principal Distribution Amount on such Distribution Date), (8) the Certificate Principal Balance of the Class M-7 Certificates immediately prior to such Distribution Date (after taking into account the distribution of the Class M-7 Principal Distribution Amount on such Distribution Date), and (9) the Certificate Principal Balance of the Class M-8 Certificates immediately prior to such Distribution Date, over (b) the lesser of (1) the product of (x) 95.90% and (y) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period, and (2) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period minus $2,831,034.

Class P Certificate:  Any Certificate designated as a “Class P Certificate” on the face thereof, in the form of Exhibit A-3 hereto, representing the right to its Percentage Interest of distributions provided for the Class P Certificates as set forth herein and evidencing a Regular Interest in REMIC V.

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 P Certificate Account:  The separate Eligible Account created and maintained by the Trustee pursuant to Section 4.05 in the name of the Trustee for the benefit of the Class P Certificateholders.

Class R-1 Certificate:  Any Certificate designated a “Class R-1 Certificate” on the face thereof, in the form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC I and representing the right to the Percentage Interest of distributions provided for the Class R-1 Certificates as set forth herein.

Class R-2 Certificate:  Any Certificate designated a “Class R-2 Certificate” on the face thereof, in the form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC II and representing the right to the Percentage Interest of distributions provided for the Class R-2 Certificates as set forth herein.

 

 

Class R-3 Certificate:  Any Certificate designated a “Class R-3 Certificate” on the face thereof, in the form set forth in Exhibit A-5 hereto, evidencing the Residual Interest in REMIC III and representing the right to the Percentage Interest of distributions provided for the Class R-3 Certificates as set forth herein.

Class RX Certificate:  Any Certificate designated a “Class RX Certificate” on the face thereof, in the form set forth in Exhibit A-5 hereto, evidencing the ownership of the Class R-4 Interest, Class R-5 Interest and Class R-6 Interest and representing the right to the Percentage Interest of distributions provided for the Class RX Certificates as set forth herein.

Class R-4 Interest:  The uncertificated Residual Interest in REMIC IV.

Class R-5 Interest:  The uncertificated Residual Interest in REMIC V.

Class R-6 Interest:  The uncertificated Residual Interest in REMIC VI.

Closing Date:  April 29, 2005.

Code:  The Internal Revenue Code of 1986, including any successor or amendatory provisions.

Compensating Interest:  An amount, not to exceed the Servicing Fee, to be deposited in the Protected Account by the Master Servicer to the payment of a Prepayment Interest Shortfall on a Mortgage Loan subject to this Agreement.

Corporate Trust Office:  The designated office of the Trustee where at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this Agreement is located at 135 South LaSalle Street, Suite 1625, Chicago, Illinois, Attention:  Global Securities and Trust Services Group - Bear Stearns Asset Backed Securities I LLC, Series 2005-HE4, or at such other address as the Trustee may designate from time to time.

Corresponding Certificate:  With respect to each REMIC II Regular Interest (other than REMIC II Regular Interests AA, ZZ, 1A, 1B, 2A, 2B, 3A, 3B, 4A, 4B, XX, IO and P), the Certificate with the corresponding designation.  With respect to each REMIC III Regular Interest (other than the Class CE Interest, the Class P Interest and the Class IO Interest), the related Certificate respresenting an ownership therein.

Current Interest:  As of any Distribution Date, with respect to the Certificates and interests of each class (other than the Class P Certificates, Class P Interest, the Residual Interests and the Residual Certificates), (i) the interest accrued on the Certificate Principal Balance or Certificate Notional Amount or Uncertificated Notional Amount, as applicable, during the related Accrual Period at the applicable Pass-Through Rate plus any amount previously distributed with respect to interest for such Certificate or interest that has been recovered as a voidable preference by a trustee in bankruptcy minus (ii) the sum of (a) any Prepayment Interest Shortfall for such Distribution Date, to the extent not covered by Compensating Interest and (b) any Relief Act Interest Shortfalls during the related Due Period, provided, however, that for purposes of calculating
Current Interest for any such Class, amounts specified in clause (ii) 

 

 

hereof for any such Distribution Date shall be allocated first to the Class CE Certificates and Residual Certificates in reduction of amounts otherwise distributable to such Certificates on such Distribution Date and then any excess shall be allocated to each Class of Class A Certificates and Class M Certificates pro rata based on the respective amounts of interest accrued pursuant to clause (i) hereof for each such Class on such Distribution Date.

Current Specified Enhancement Percentage:  With respect to any Distribution Date, the percentage obtained by dividing (x) the sum of (i) the aggregate Certificate Principal Balance of the Class M Certificates and (ii) the Overcollateralization Amount, in each case prior to the distribution of the Principal Distribution Amount on such Distribution Date, by (y) the aggregate Stated Principal Balance of the Mortgage Loans as of the end of the related Due Period.

Custodial Agreement: An agreement, dated as of April 29, 2005, among the Depositor, the Seller, the Master Servicer, the Trustee and the Custodian in substantially the form of Exhibit J hereto.

Custodian: LaSalle Bank National Association, or any successor custodian appointed pursuant to the provisions hereof and the Custodial Agreement.

Cut-off Date:  The close of business on April 1, 2005.

Cut-off Date Principal Balance:  As to any Mortgage Loan, the unpaid principal balance thereof as of the close of business on the Cut-off Date after application of all Principal Prepayments received prior to the Cut-off Date and scheduled payments of principal due on or before the Cut-off Date, whether or not received, but without giving effect to any installments of principal received in respect of Due Dates after the Cut-off Date. The aggregate Cut-off Date Principal Balance of the Mortgage Loans is $566,206,954.58.

Debt Service Reduction:  With respect to any Mortgage Loan, a reduction by a court of competent jurisdiction in a proceeding under the Bankruptcy Code in the Scheduled Payment for such Mortgage Loan that became final and non-appealable, except such a reduction resulting from a Deficient Valuation or any other reduction that results in a permanent forgiveness of principal.

Defaulting Party:  As defined in the Swap Agreement.

Deficient Valuation:  With respect to any Mortgage Loan, a valuation by a court of competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding indebtedness under such Mortgage Loan, or any reduction in the amount of principal to be paid in connection with any Scheduled Payment that results in a permanent forgiveness of principal, which valuation or reduction results from an order of such court that is final and non-appealable in a proceeding under the Bankruptcy Code.

Definitive Certificates:  As defined in Section 6.06.

Deleted Mortgage Loan:  A Mortgage Loan replaced or to be replaced by a Replacement Mortgage Loan.

 

 

Delinquency Event:  A Delinquency Event shall have occurred and be continuing if at any time, (x) the percent equivalent of a fraction, the numerator of which is the aggregate Stated Principal Balance of the Mortgage Loans that are 60 days or more Delinquent (including for this purpose any such Mortgage Loans in bankruptcy or foreclosure and Mortgage Loans with respect to which the related Mortgaged Property is REO Property), and the denominator of which is the aggregate Stated Principal Balance of all of the Mortgage Loans as of the last day of the related Due Period exceeds (y) 35% of the Current Specified Enhancement Percentage.

Delinquent:  A Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to the terms of such Mortgage Loan by the close of business on the day such payment is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment has not been received by the close of business on the corresponding day of the month immediately succeeding the month in which such payment was due, or, if there is no such corresponding day (e.g., as when a 30-day month follows a 31-day month in which a payment was due on the 31st day of such month), then on the last day of such immediately succeeding month. Similarly for “60 days delinquent,” “90 days delinquent” and so on.

Denomination:  With respect to each Certificate, the amount set forth on the face thereof as the “Initial Principal Balance or Initial Notional Amount of this Certificate”.

Depositor:  Bear Stearns Asset Backed Securities I LLC, a Delaware limited liability company, or its successor in interest.

Depository:  The initial Depository shall be The Depository Trust Company (“DTC”), the nominee of which is Cede & Co., or any other organization registered as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. The Depository shall initially be the registered Holder of the Book-Entry Certificates. The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New York.

Depository Agreement:  With respect to the Class of Book-Entry Certificates, the agreement among the Depositor, the Trustee and the initial Depository, dated as of the Closing Date, substantially in the form of Exhibit H.

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 any Distribution Date, the 15th day of the month of such Distribution Date or, if such 15th day is not a Business Day, the immediately preceding Business Day.

Distribution Account:  The separate Eligible Account created and maintained by the Trustee pursuant to Section 4.04 in the name of the Trustee for the benefit of the Certificateholders designated “LaSalle Bank National Association, in trust for registered holders of Bear Stearns Asset Backed Securities I LLC, Asset-Backed Certificates, Series 2005-HE4”. Funds in the Distribution Account shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement.

 

 

Distribution Account Deposit Date:  The Business Day prior to each Distribution Date.

Distribution Date:  The 25th day of each calendar month after the initial issuance of the Certificates, or if such 25th day is not a Business Day, the next succeeding Business Day, commencing in May 2005.

Due Date:  As to any Mortgage Loan, the date in each month on which the related Scheduled Payment is due, as set forth in the related Mortgage Note.

Due Period:  With respect to any Distribution Date, the period from the second day of the calendar month preceding the calendar month in which such Distribution Date occurs through close of business on the first day of the calendar month in which such Distribution Date occurs.

Eligible Account:  Any of (i) an account or accounts maintained with a federal or state chartered depository institution or trust company, the long-term unsecured debt obligations and short-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the debt obligations of such holding company, so long as Moody’s is not a Rating Agency) are rated by each Rating Agency in one of its two highest long-term and its highest short-term rating categories, respectively, at the time any amounts are held on deposit therein, or (ii) an account or accounts in a depository institution or trust company in which such accounts are insured by the FDIC (to the limits established by the FDIC) and the uninsured deposits in which accounts are otherwise secured such that, as
evidenced by an Opinion of Counsel delivered to the Trustee and to each Rating Agency, the Certificateholders have a claim with respect to the funds in such account or a perfected first priority security interest against any collateral (which shall be limited to Permitted Investments) securing such funds that is superior to claims of any other depositors or creditors of the depository institution or trust company in which such account is maintained, or (iii) a trust account or accounts maintained with the corporate trust department of a federal or state chartered depository institution or trust company having capital and surplus of not less than $50,000,000, acting in its fiduciary capacity or (iv) any other account acceptable to the Rating Agencies, as evidenced in writing.  Eligible Accounts may bear interest, and may include, if otherwise qualified under this definition, accounts maintained with the Trustee.

EMC:  EMC Mortgage Corporation, a Delaware corporation, and its successors and assigns.

ERISA:  The Employee Retirement Income Security Act of 1974, as amended.

ERISA Restricted Certificates:  Prior to the termination of the Swap Agreement, all of the Certificates. Subsequent to the termination of the Swap Agreement, any of the Class M-7, Class M-8, Class CE, Class P and Residual Certificates.

Event of Default:  As defined in Section 8.01 hereof.

Excess Cashflow:  With respect to any Distribution Date, an amount, if any, equal to the sum of (a) the Remaining Excess Spread for such Distribution Date and (b) the Overcollateralization Release Amount for such Distribution Date.

 

 

Excess Liquidation Proceeds:  To the extent not required by law to be paid to the related Mortgagor, the excess, if any, of any Liquidation Proceeds with respect to a Mortgage Loan over the Stated Principal Balance of such Mortgage Loan and accrued and unpaid interest at the related Mortgage Rate through the last day of the month in which the Mortgage Loan has been liquidated.

Excess Spread:  With respect to any Distribution Date, the excess, if any, of (i) the Interest Funds for such Distribution Date over (ii) the sum of the Current Interest on the Class A Certificates and Class M Certificates and Interest Carry Forward Amounts on the Class A Certificates (other than Interest Carry Forward Amounts paid pursuant to Section 5.04(a)(4)(A)), in each case for such Distribution Date.

Exemption:  Prohibited Transaction Exemption 90-30, as amended from time to time.

Extra Principal Distribution Amount:  With respect to any Distribution Date, the lesser of (i) the excess, if any, of the Overcollateralization Target Amount for such Distribution Date over the Overcollateralization Amount for such Distribution Date (after giving effect to distributions of principal on the Certificates other than any Extra Principal Distribution Amount) and (ii) the Excess Spread for such Distribution Date.

Fannie Mae:  Fannie Mae (formerly, Federal National Mortgage Association), or any successor thereto.

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

Final Certification:  The certification substantially in the form of Exhibit Three to the Custodial Agreement.

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 Seller pursuant to or as contemplated by Section 2.03(c) or Section 10.01), a determination made by the Master Servicer that all Insurance Proceeds, Liquidation Proceeds and other payments or recoveries which the Master Servicer, in its reasonable good faith judgment, expects to be finally recoverable in respect thereof have been so recovered. The Trustee shall maintain records, based solely on information provided by the Master Servicer, of each Final Recovery Determination made thereby.

FIRREA:  The Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

Fiscal Quarter:  December 1 to February 29 (or the last day in such month), March 1 to May 31, June 1 to August 31, or September 1 to November 30, as applicable.

Fitch:  Fitch, Inc. and any successor thereto.

Freddie Mac:  Federal Home Loan Mortgage Corporation, or any successor thereto.

Global Certificate: Any Private Certificate registered in the name of the Depository or its nominee, beneficial interests in which are reflected on the books of the Depository or on the 

 

 

books of a Person maintaining an account with such Depository (directly or as an indirect participant in accordance with the rules of such depository).

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 Mortgage Loan.

Group I Loans:  The Mortgage Loans identified as such on the Mortgage Loan Schedule.

Group I Principal Distribution Amount: With respect to any Distribution Date, the product of the Principal Distribution Amount for such Distribution Date and a fraction, the numerator of which is the Principal Funds for Loan Group I for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Group II Loans:  The Mortgage Loans identified as such on the Mortgage Loan Schedule.

Group II Principal Distribution Amount: With respect to any Distribution Date, the product of the Principal Distribution Amount for such Distribution Date and a fraction, the numerator of which is the Principal Funds for Loan Group II for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Group II Sequential Trigger Event:  With respect to any Distribution Date, a trigger event is in effect if, on any Distribution Date before the 37th Distribution Date, the aggregate amount of Realized Losses incurred since the Cut-off Date through the last day of the related Prepayment Period divided by the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds 3.50% or if, on or after the 37th Distribution Date, a Trigger Event is in effect.

Group III Loans:  The Mortgage Loans identified as such on the Mortgage Loan Schedule.

Group III Principal Distribution Amount: With respect to any Distribution Date, the product of the Principal Distribution Amount for such Distribution Date and a fraction, the numerator of which is the Principal Funds for Loan Group III for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Group III Sequential Trigger Event:  With respect to any Distribution Date, a trigger event is in effect if, on any Distribution Date before the 37th Distribution Date, the aggregate amount of Realized Losses incurred since the Cut-off Date through the last day of the related Prepayment Period divided by the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds 3.50% or if, on or after the 37th Distribution Date, a Trigger Event is in effect.

Group IV Loans:  The Mortgage Loans identified as such on the Mortgage Loan Schedule.

Group IV Principal Distribution Amount: With respect to any Distribution Date, the product of the Principal Distribution Amount for such Distribution Date and a fraction, the 

 

 

numerator of which is the Principal Funds for Loan Group IV for such Distribution Date and the denominator of which is the Principal Funds for all Loan Groups for such Distribution Date.

Group IV Sequential Trigger Event:  With respect to any Distribution Date, a trigger event is in effect if, on any Distribution Date before the 37th Distribution Date, the aggregate amount of Realized Losses incurred since the Cut-off Date through the last day of the related Prepayment Period divided by the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds 3.50% or if, on or after the 37th Distribution Date, a Trigger Event is in effect.

Indemnified Persons:  The Trustee, the Master Servicer, the Trust Fund and their officers, directors, agents and employees and, with respect to the Trustee, any separate co-trustee and its officers, directors, agents and employees.

Index:  With respect to each Adjustable Rate Mortgage Loan and with respect to each related Adjustment Date, the index as specified in the related Mortgage Note.

Individual Certificate:  Any Private Certificate registered in the name of the Holder other than the Depository or its nominee.

Initial Certification:  The certification substantially in the form of Exhibit One to the Custodial Agreement.

Initial Certificate Principal Balance:  With respect to any Certificate, the Certificate Principal Balance of such Certificate or any predecessor Certificate on the Closing Date.

Institutional Accredited Investor:  Any Person meeting the requirements of Rule 501(a)(l), (2), (3) or (7) of Regulation D under the Securities Act or any entity all of the equity Holders in which come within such paragraphs.

Insurance Proceeds:  Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy and any other insurance policy covering a Mortgage Loan, to the extent such proceeds are payable to the mortgagee under the Mortgage, the Master Servicer or the trustee under the deed of trust and are not applied to the restoration of the related Mortgaged Property or released to the Mortgagor in accordance with the procedures that the Master Servicer would follow in servicing mortgage loans held for its own account, in each case other than any amount included in such Insurance Proceeds in respect of Insured Expenses.

Insured Expenses:  Expenses covered by any insurance policy with respect to the Mortgage Loans.

Interest Carry Forward Amount:  As of any Distribution Date and with respect to each Class of Certificates (other than the Class CE, Class P and the Residual Certificates), the sum of (i) the excess of (a) the Current Interest for such Class with respect to such Distribution Date and any prior Distribution Dates over (b) the amount actually distributed to such Class of Certificates with respect to interest on such Distribution Dates and (ii) interest thereon (to the extent permitted by applicable law) at the applicable Pass-Through Rate for such Class for the related Accrual Period including the Accrual Period relating to such Distribution Date.

 

 

Interest Determination Date:  Shall mean the second LIBOR Business Day preceding the commencement of each Accrual Period.

Interest Funds:  With respect to each Loan Group and any Distribution Date (i) the sum, without duplication, of (a) all scheduled interest during the related Due Period with respect to the related Mortgage Loans less the Servicing Fee, the Trustee Fee and the LPMI Fee, if any, (b) all Advances relating to interest with respect to the related Mortgage Loans made on or prior to the related Distribution Account Deposit Date, (c) all Compensating Interest with respect to the related Mortgage Loans and required to be remitted by the Master Servicer pursuant to this Agreement with respect to such Distribution Date, (d) Liquidation Proceeds and Subsequent Recoveries with respect to the related Mortgage Loans collected during the related Prepayment Period (to the extent such Liquidation Proceeds and Subsequent Recoveries relate to interest), and (e) all amounts
relating to interest with respect to each Mortgage Loan in such Loan Group repurchased by the Seller pursuant to Sections 2.02 and 2.03 or the Mortgage Loan Purchase Agreement and by EMC pursuant to Section 3.18, in each case to the extent remitted by the Master Servicer to the Distribution Account pursuant to this Agreement, minus (ii) all amounts relating to interest required to be reimbursed pursuant to Sections 4.02 and 4.05 or as otherwise set forth in this Agreement, and (iii) any Net Swap Payments or Swap Termination Payments (not due to a Swap Provider Trigger Event) owed to the Swap Administrator for payment to the Swap Provider.

Interim Certification:  The certification substantially in the form of Exhibit Two to the Custodial Agreement.

LaSalle:  LaSalle Bank National Association, and any successor thereto.

Last Scheduled Distribution Date:  Solely for purposes of the face of the Certificates as follows:  with respect to the Certificates, other than the Class I-A-1 Certificates and Class I-A-2 Certificates, the Distribution Date in April 2035; with respect to the Class I-A-1 Certificates and Class I-A-2 Certificates, the Distribution Date in December 2028 and February 2034, respectively.

Latest Possible Maturity Date:  The Distribution Date in the month following the final scheduled maturity date of the Mortgage Loan in the Trust Fund having the latest scheduled maturity date as of the Cut-off Date. For purposes of the Treasury regulations under Code Sections 860A through 860G, the latest possible maturity date of each Regular Interest issued by REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI shall be the Latest Possible Maturity Date.

LIBOR Business Day:  Shall mean a day on which banks are open for dealing in foreign currency and exchange in London and New York City.

Liquidated Loan:  With respect to any Distribution Date, a defaulted Mortgage Loan that has been liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale or other realization as provided by applicable law governing the real property subject to the related Mortgage and any security agreements and as to which the Master Servicer has made a Final Recovery Determination with respect thereto.

 

 

Liquidation Proceeds:  Amounts, other than Insurance Proceeds, received in connection with the partial or complete liquidation of a Mortgage Loan, whether through trustee’s sale, foreclosure sale or otherwise, or in connection with any condemnation or partial release of a Mortgaged Property and any other proceeds received with respect to an REO Property, less the sum of related unreimbursed Advances, Servicing Fees and Servicing Advances and all expenses of liquidation, including property protection expenses and foreclosure and sale costs, including court and reasonable attorneys fees.

Loan-to-Value Ratio:  The fraction, expressed as a percentage, the numerator of which is the original principal balance of the related Mortgage Loan and the denominator of which is the Appraised Value of the related Mortgaged Property.

Loan Group:  Any of Loan Group I, Loan Group II, Loan Group III or Loan Group IV.

Loan Group I:  The Mortgage Loans included as such on the Mortgage Loan Schedule.

Loan Group II:  The Mortgage Loans included as such on the Mortgage Loan Schedule.

Loan Group III:  The Mortgage Loans included as such on the Mortgage Loan Schedule.

Loan Group IV  The Mortgage Loans included as such on the Mortgage Loan Schedule.

Loss Allocation Limitation:  The meaning specified in Section 5.05(b) hereof.

LPMI Fee:  The fee payable to the insurer for each Mortgage Loan subject to an LPMI Policy as set forth in such LPMI Policy.

LPMI Policy:  A policy of mortgage guaranty insurance issued by an insurer meeting the requirements of Fannie Mae and Freddie Mac in which the Master Servicer or the related subservicer of the related Mortgage Loan is responsible for the payment of the LPMI Fee thereunder from collections on the related Mortgage Loan.

Majority Class CE Certificateholder:  The Holder of a 50.01% or greater Percentage Interest in the Class CE Certificates.

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 Uncertificated REMIC II Pass-Through Rates for the REMIC II Regular Interests (other than REMIC II Regular Interests AA, 1A, 1B, 2A, 2B, 3A, 3B, 4A, 4B, XX, IO and P), 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 One-Month LIBOR Pass-Through Rate for the Corresponding Certificate and (ii) the Net Rate Cap for the REMIC III Regular Interest the ownership of which is represented by 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.

Master Servicer:  EMC Mortgage Corporation, in its capacity as master servicer, and its successors and assigns.

 

 

Master Servicer Certification:  A written certification covering servicing of the Mortgage Loans by the Master 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 superceded 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.

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.

Maximum Uncertificated Accrued Interest Deferral Amount:  With respect to any Distribution Date, the excess of (i) accrued interest at the Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular Interest ZZ for such Distribution Date on a balance equal to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ minus the REMIC II Overcollateralized Amount, in each case for such Distribution Date, over (ii) the aggregate amount of Uncertificated Accrued Interest for such Distribution Date on the REMIC II Regular Interests (other than REMIC II Regular Interests AA, ZZ, 1A, 1B, 2A, 2B, 3A, 3B, 4A, 4B, XX, IO and P), with the rate on each such REMIC II Regular Interest subject to a cap equal to the lesser of (x) the One Month LIBOR Pass Through Rate for the Corresponding Certificate and (y) the Net Rate Cap for the REMIC III Regular
Interest the ownership of which is represented by the Corresponding Certificate for the purpose of this calculation for such Distribution Date.

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.

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 Statement:  The statement delivered to the Certificateholders pursuant to Section 5.06.

Moody’s:  Moody’s Investors Service, Inc., and any successor thereto.

Mortgage:  The mortgage, deed of trust or other instrument creating a first or second lien on or first or second priority ownership interest in an estate in fee simple in real property securing a Mortgage Note.

Mortgage File:  The mortgage documents listed in Section 2.01 hereof pertaining to a particular Mortgage Loan and any additional documents delivered to the Custodian to be added to the Mortgage File pursuant to this Agreement and the Custodial Agreement.

Mortgage Loans:  Such of the Mortgage Loans transferred and assigned to the Trustee pursuant to the provisions hereof, as from time to time are held as a part of the Trust Fund (including any REO Property), the mortgage loans so held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition of title of the related Mortgaged Property.

Mortgage Loan Purchase Agreement:  The Mortgage Loan Purchase Agreement, dated as of April 29, 2005, between the Seller, as seller and the Depositor, as purchaser in the form attached hereto as Exhibit L.

Mortgage Loan Purchase Price:  The price, calculated as set forth in Section 10.01, to be paid in connection with the repurchase of the Mortgage Loans pursuant to Section 10.01.

Mortgage Loan Schedule:  The list of Mortgage Loans (as from time to time amended by the Seller or the Master Servicer to reflect the deletion of Deleted Mortgage Loans and the addition of Replacement Mortgage Loans pursuant to the provisions of this Agreement) transferred to the Trustee as part of the Trust Fund and from time to time subject to this Agreement, the initial Mortgage Loan Schedule being attached hereto as Exhibit B, setting forth the following information with respect to each Mortgage Loan:

	
            (i)
 	
            the Mortgage Loan identifying number;
 	
             

	
            (ii)
 	
            the current gross mortgage rate;
 	
             

	
            (iii)
 	
            the Servicing Fee Rate;
 	
             

	
            (iv)
 	
            the master servicing fee rate, if applicable;
 
	
            (v)
 	
            the LPMI Fee, if applicable;
 	
             

	
            (vi)
 	
            the Trustee Fee Rate;
 	
             

	
            (vii)
 	
            the current net mortgage rate;
 	
             

	
            (viii)
 	
            the maturity date;
 	
             

									

 

 

 

 

	
            (ix)
 	
            the original principal balance;
 	
             

	
            (x)
 	
            the current principal balance;
 	
             

	
            (xi)
 	
            the stated original term to maturity;
 	
             

	
            (xii)
 	
            the stated remaining term to maturity;
 	
             

	
            (xiii)
 	
            the property type;
 	
             

	
            (xiv)
 	
            the MIN with respect to each MOM Loan;
 
							

(xv)             with respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate;

(xvi)            with respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate;

(xvii)           with respect to each Adjustable Rate Mortgage Loan, the Gross Margin;

(xviii)          with respect to each Adjustable Rate Mortgage Loan, the next Adjustment Date;

(xix)            with respect to each Adjustable Rate Mortgage Loan, the Periodic Rate Cap;

	
            (xx)
 	
            the Loan Group; and
 

(xxi)            a code indicating whether such Mortgage Loan is a first lien Mortgage Loan or a second lien Mortgage Loan.

Such schedule shall also set forth the aggregate Cut-off Date Principal Balance for all of the Mortgage Loans.

Mortgage Note:  The original executed note or other evidence of indebtedness of a Mortgagor under a Mortgage Loan.

Mortgage Rate:  With respect to each fixed rate Mortgage Loan, the rate set forth in the related Mortgage Note.  With respect to each Adjustable Rate 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 (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, to equal the sum, rounded to the next highest or nearest 0.125% (as provided in the Mortgage Note), of the Index, determined as set forth in the related Mortgage Note, plus the related Gross Margin subject to
the limitations set forth in the related Mortgage Note.  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.

Mortgagor:  The obligors on a Mortgage Note.

Net Mortgage Rate:  As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate less the sum of (i) the Servicing Fee Rate, (ii) the Trustee Fee Rate and (iii) the rate at which the LPMI Fee is calculated, if any.

Net Rate Cap:  With respect to any Distribution Date and the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, the excess of (A) a rate per annum equal to the product of (x) the weighted average of the Net Mortgage Rates on the then outstanding Mortgage Loans in Loan Group I, weighted based on the Stated Principal Balances of such Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date and (y) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period, over (B) the sum of (1) an amount, expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap Provider on such Distribution Date, divided by the aggregate outstanding Stated Principal Balance of the Mortgage
Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, multiplied by 12, and (2) an amount equal to the Swap Termination Payment not due to a Swap Provider Trigger Event payable to the Swap Provider, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date. With respect to any Distribution Date and the REMIC III Regular Interests the ownership of which is represented by the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, a per annum rate equal to the weighted average (adjusted for the actual number of days elapsed in the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 1B, weighted on the basis of the Uncertificated Principal Balance of such REMIC II Regular Interest
immediately prior to such Distribution Date.

With respect to any Distribution Date and the Class II-A-1 Certificates and Class II-A-2 Certificates, the excess of (A) a rate per annum equal to the product of (x) the weighted average of the Net Mortgage Rates on the then outstanding Mortgage Loans in Loan Group II, weighted based on the Stated Principal Balances of such Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date and (y) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period, over (B) the sum of (1) an amount, expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap Provider on such Distribution Date, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to
giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, multiplied by 12, and (2) an amount equal to the Swap Termination Payment not due to a Swap Provider Trigger Event payable to the Swap Provider, divided by the aggregate outstanding Stated Principal 

 

 

Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date.  With respect to any Distribution Date and the REMIC III Regular Interests the ownership of which is represented by the Class II-A-1 Certificates and Class II-A-2 Certificates, the weighted average (adjusted for the actual number of days elapsed in the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 2B, weighted on the basis of the Uncertificated Principal Balance of such REMIC II Regular Interest immediately prior to such Distribution Date.  

With respect to any Distribution Date and the Class III-A-1 Certificates and Class III-A-2 Certificates, the excess of (A) a rate per annum equal to the product of (x) the weighted average of the Net Mortgage Rates on the then outstanding Mortgage Loans in Loan Group III, weighted based on the Stated Principal Balances of such Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date and (y) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period, over (B) the sum of (1) an amount, expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap Provider on such Distribution Date, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior
to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, multiplied by 12, and (2) an amount equal to the Swap Termination Payment not due to a Swap Provider Trigger Event payable to the Swap Provider, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date.  With respect to any Distribution Date and the REMIC III Regular Interests the ownership of which is represented by the Class III-A-1 Certificates and Class III-A-2 Certificates, the weighted average (adjusted for the actual number of days elapsed in the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 3B, weighted on the basis of the Uncertificated Principal Balance of such REMIC II Regular Interest immediately prior to such Distribution Date.  

With respect to any Distribution Date and the Class IV-A-1 Certificates and Class IV-A-2 Certificates, the excess of (A) a rate per annum equal to the product of (x) the weighted average of the Net Mortgage Rates on the then outstanding Mortgage Loans in Loan Group IV, weighted based on the Stated Principal Balances of such Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date and (y) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period, over (B) the sum of (1) an amount, expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap Provider on such Distribution Date, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to
giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, multiplied by 12, and (2) an amount equal to the Swap Termination Payment not due to a Swap Provider Trigger Event payable to the Swap Provider, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date.  With respect to any Distribution Date and the REMIC III Regular Interests the ownership of which is represented by 

 

 

the Class IV-A-1 Certificates and Class IV-A-2 Certificates, the weighted average (adjusted for the actual number of days elapsed in the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 4B, weighted on the basis of the Uncertificated Principal Balance of such REMIC II Regular Interest immediately prior to such Distribution Date.  

With respect to any Distribution Date and the Class M Certificates, the excess of (A) a rate per annum equal to the product of (x) the weighted average of the weighted average of the Net Mortgage Rates on the then outstanding Mortgage Loans in each Loan Group, weighted in proportion to the results of subtracting from the aggregate Stated Principal Balance of each such Loan Group as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, the aggregate Certificate Principal Balance of the related Class or Classes of Senior Certificates and (y) a fraction, the numerator of which is 30 and the denominator of which is the actual number of days elapsed in the related Accrual Period, over (B) the sum of (1) an amount, expressed as a per annum rate, equal to the Net Swap Payment payable to the Swap Provider on such
Distribution Date, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date, multiplied by 12, and (2) an amount equal to the Swap Termination Payment not due to a Swap Provider Trigger Event payable to the Swap Provider, divided by the aggregate outstanding Stated Principal Balance of the Mortgage Loans as of the related Due Date prior to giving effect to any reduction in the Stated Principal Balances of such Mortgage Loans on such Due Date. With respect to any Distribution Date and the REMIC III Regular Interests the ownership of which is represented by the Class M Certificates, a per annum rate equal to the weighted average (adjusted for the actual number of days elapsed in the related Accrual Period) of the Uncertificated REMIC II Pass-Through Rates on (a) REMIC II Regular Interest 1A, subject to a cap and a floor
equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 1B, (b) REMIC II Regular Interest 2A, subject to a cap and a floor equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 2B, (c) REMIC II Regular Interest 3A, subject to a cap and a floor equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 3B and (d) REMIC II Regular Interest 4A, subject to a cap and a floor equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest 4B, in each case as determined for such Distribution Date, weighted on the basis of the Uncertificated Principal Balances of each such REMIC II Regular Interest immediately prior to such Distribution Date.

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 Swap Administrator, which net payment shall not take into account any Swap Termination Payment.

Non-Book-Entry Certificate:  Any Certificate other than a Book-Entry Certificate.

Nonrecoverable Advance:  Any portion of an Advance previously made or proposed to be made by the Master Servicer pursuant to this Agreement, that, in the good faith judgment of the Master Servicer, will not or, in the case of a proposed advance, would not, be ultimately recoverable by it from the related Mortgagor, related Liquidation Proceeds, Insurance Proceeds or otherwise.

 

 

Notional Amount:  With respect to each Distribution Date and the Swap Agreement, the notional amount for the related calculation period as set forth in the related schedule set forth in Exhibit M.  

Officer’s Certificate:  A certificate (i) signed by the Chairman of the Board, the Vice Chairman of the Board, the President, a Vice President (however denominated), an Assistant Vice President, the Treasurer, the Secretary, or one of the assistant treasurers or assistant secretaries of the Depositor or the Master Servicer (or any other officer customarily performing functions similar to those performed by any of the above designated officers and also to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with a particular subject) or (ii), if provided for in this Agreement, signed by a Servicing Officer, as the case may be, and delivered to the Depositor, the Seller and/or the Trustee, as the case may be, as required by this Agreement.

One-Month LIBOR:  With respect to any Accrual Period, the rate determined by the Trustee on the related Interest Determination Date on the basis of the rate for U.S. dollar deposits for one month that appears on Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such Interest Determination Date; provided that the parties hereto acknowledge that One-Month LIBOR for the first Accrual Period shall equal 3.060% per annum. If such rate does not appear on such page (or such other page as may replace that page on that service, or if such service is no longer offered, such other service for displaying One-Month LIBOR or comparable rates as may be reasonably selected by the Trustee), One-Month LIBOR for the applicable Accrual Period will be the Reference Bank Rate. If no such quotations can be obtained by the Trustee and no Reference Bank Rate is available,
One-Month LIBOR will be One-Month LIBOR applicable to the preceding Accrual Period. The establishment of One-Month LIBOR on each Interest Determination Date by the Trustee and the Trustee’s calculation of the rate of interest applicable to the Class A Certificates and Class M Certificates for the related Accrual Period shall, in the absence of manifest error, be final and binding.

One-Month LIBOR Pass-Through Rate:  With respect to the Class I-A-1 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest I-A-1, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class I-A-2 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest I-A-2, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class I-A-3 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest I-A-3, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class II-A-1 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest II-A-1, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

 

 

With respect to the Class II-A-2 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest II-A-2, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class III-A-1 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest III-A-1, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class III-A-2 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest III-A-2, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class IV-A-1 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest IV-A-1, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class IV-A-2 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest IV-A-2, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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” and “Maximum Uncertificated Accrued Interest Deferral Amount”, 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 M-7 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest M-7, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

With respect to the Class M-8 Certificates and, for purposes of the definition of “Marker Rate” and “Maximum Uncertificated Accrued Interest Deferral Amount”, REMIC II Regular Interest M-8, a per annum rate equal to One Month LIBOR plus the related Certificate Margin.

Opinion of Counsel:  A written opinion of counsel, who may be counsel for the Seller, the Depositor or the Master Servicer, reasonably acceptable to each addressee of such opinion; provided that with respect to Section 2.05, 7.05, 7.07 or 11.01, or the interpretation or application of the REMIC Provisions, such counsel must (i) in fact be independent of the Seller, Depositor and the Master Servicer, (ii) not have any direct financial interest in the Seller, the Depositor or the Master Servicer or in any affiliate of either, and (iii) not be connected with the Seller, the Depositor or the Master Servicer as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

Optional Termination:  The termination of the Trust Fund created hereunder as a result of the purchase of all of the Mortgage Loans and any REO Property pursuant to the last sentence of Section 10.01 hereof.

Optional Termination Date:  The Distribution Date on which the Stated Principal Balance of all of the Mortgage Loans is equal to or less than 10% of the Stated Principal Balance of all of the Mortgage Loans as of the Cut-off Date.

Original Value:  The value of the property underlying a Mortgage Loan based, in the case of the purchase of the underlying Mortgaged Property, on the lower of an appraisal or the sales price of such property or, in the case of a refinancing, on an appraisal.

OTS:  The Office of Thrift Supervision.

Outstanding:  With respect to the Certificates as of any date of determination, all Certificates theretofore executed and authenticated under this Agreement except:

(a)        Certificates theretofore canceled by the Trustee or delivered to the Trustee for cancellation; and

(b)        Certificates in exchange for which or in lieu of which other Certificates have been executed and delivered by the Trustee pursuant to this Agreement.

Outstanding Mortgage Loan:  As of any date of determination, a Mortgage Loan with a Stated Principal Balance greater than zero that was not the subject of a Principal Prepayment in full, and that did not become a Liquidated Loan, prior to the end of the related Prepayment Period.

Overcollateralization Amount:  With respect to any Distribution Date, the excess, if any, of the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period (including any reduction due to Realized Losses) over the Certificate Principal 

 

 

Balances of the Certificates (other than the Class CE and Class P Certificates) on such Distribution Date (after taking into account the payment of principal other than any Extra Principal Distribution Amount on such Certificates).

Overcollateralization Release Amount:  With respect to any Distribution Date, the lesser of (x) the Principal Remittance Amount for such Distribution Date and (y) the excess, if any, of (i) the Overcollateralization Amount for such Distribution Date (assuming that 100% of the Principal Remittance Amount is applied as a principal payment on such Distribution Date) over (ii) the Overcollateralization Target Amount for such Distribution Date (with the amount pursuant to clause (y) deemed to be $0 if the Overcollateralization Amount is less than or equal to the Overcollateralization Target Amount on that Distribution Date).

Overcollateralization Target Amount:  With respect to any Distribution Date (a) prior to the Stepdown Date, 2.05% of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date, (b) on or after the Stepdown Date and if a Trigger Event is not in effect, the greater of (i) the lesser of (1) 2.05% of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date and (2) 4.10% of the then current aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period and (ii) $2,831,034 or (c) on or after the Stepdown Date and if a Trigger Event is in effect, the Overcollateralization Target Amount for the immediately preceding Distribution Date.

Ownership Interest:  As to any Certificate, any ownership 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.

Pass-Through Rate:  With respect to the Class A Certificates and Class M Certificates 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 Rate Cap 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 amount determined for each REMIC II Regular Interest (other than REMIC II Regular Interests 1A, 1B, 2A, 2B, 3A, 3B, 4A, 4B, XX, IO and P) equal to (x) the excess of the Uncertificated REMIC II Pass-Through Rate for such REMIC II Regular Interest over the Marker Rate, applied to (y) a notional amount equal to the Uncertificated Principal Balance of such REMIC II Regular Interest, and the denominator of which is the aggregate Uncertificated Principal Balance of such REMIC II Regular Interests.

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 Class IO Interest, Class IO Interest shall not have a Pass-Through Rate, but Current Interest for such interest 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 REMIC VI Regular Interest IO, REMIC VI Regular Interest IO shall not have a Pass-Through Rate, but Current Interest for such Regular Interest and each Distribution Date shall be an amount equal to 100% of the amounts distributable to the Class IO Interest for such Distribution Date. 

Percentage Interest:  With respect to any Certificate of a specified Class, the Percentage Interest set forth on the face thereof or the percentage obtained by dividing the Denomination of such Certificate by the aggregate of the Denominations of all Certificates of such Class.

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 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:  At any time, any one or more of the following obligations and securities:

	
            (i)
 	
            obligations of the United States or any agency thereof, provided such obligations are backed by the full faith and credit of the United States;
 
	
            (ii)
 	
            general obligations of or obligations guaranteed by any state of the United States or the District of Columbia receiving the highest long-term debt rating of each Rating Agency, or such lower rating as will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by each Rating Agency, as evidenced in writing;
 
	
            (iii)
 	
            commercial or finance company paper which is then receiving the highest commercial or finance company paper rating of each Rating Agency, or such lower rating as will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by each Rating Agency, as evidenced in writing;
 
	
            (iv)
 	
            certificates of deposit, demand or time deposits, or bankers’ acceptances issued by any depository institution or trust company incorporated under the laws of the United States or of any state thereof and subject to supervision and examination by federal and/or state banking authorities (including the Trustee in its commercial banking capacity), provided that the commercial paper and/or long term unsecured debt obligations of such depository institution or trust company are then rated one of the two highest long-term and the highest short-term ratings of each such Rating Agency for such securities, or such lower ratings as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by any Rating Agency, as evidenced in writing;
 

 

 

 

 

	
            (v)
 	
            guaranteed reinvestment agreements issued by any bank, insurance company or other corporation containing, at the time of the issuance of such agreements, such terms and conditions as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by any such Rating Agency, as evidenced in writing;
 
	
            (vi)
 	
            repurchase obligations with respect to any security described in clauses (i) and (ii) above, in either case entered into with a depository institution or trust company (acting as principal) described in clause (v) above;
 
	
            (vii)
 	
            securities (other than stripped bonds, stripped coupons or instruments sold at a purchase price in excess of 115% of the face amount thereof) bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any state thereof which, at the time of such investment, have one of the two highest short term ratings of each Rating Agency (except if the Rating Agency is Moody’s, such rating shall be the highest commercial paper rating of Moody’s for any such securities), or such lower rating as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by any Rating Agency, as evidenced by a signed writing delivered by each Rating Agency;
 
	
            (viii)
 	
            interests in any money market fund (including any such fund managed or advised by the Trustee or any affiliate thereof) which at the date of acquisition of the interests in such fund and throughout the time such interests are held in such fund has the highest applicable short term rating by each Rating Agency or such lower rating as will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by each Rating Agency, as evidenced in writing;
 
	
            (ix)
 	
            short term investment funds sponsored by any trust company or banking association incorporated under the laws of the United States or any state thereof (including any such fund managed or advised by the Trustee or the Master Servicer or any affiliate thereof) which on the date of acquisition has been rated by each Rating Agency in their respective highest applicable rating category or such lower rating as will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by each Rating Agency, as evidenced in writing; and
 
	
            (x)
 	
            such other investments having a specified stated maturity and bearing interest or sold at a discount acceptable to each Rating Agency and as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by any Rating Agency, as evidenced by a signed writing delivered by each Rating Agency;
 

provided, that no such instrument shall be a Permitted Investment if such instrument (i) evidences the right to receive interest only payments with respect to the obligations underlying such instrument, (ii) is purchased at a premium or (iii) is purchased at a deep discount; provided further that no such instrument shall be a Permitted Investment (A) if such instrument evidences 

 

 

principal and interest payments derived from obligations underlying such instrument and the interest payments with respect to such instrument provide a yield to maturity of greater than 120% of the yield to maturity at par of such underlying obligations, or (B) if it may be redeemed at a price below the purchase price (the foregoing clause (B) not to apply to investments in units of money market funds pursuant to clause (viii) above); provided further that no amount beneficially owned by any REMIC may be invested in investments (other than money market funds) treated as equity interests for federal income tax purposes, unless the Master Servicer shall receive an Opinion of Counsel, at the expense of the Master Servicer, to the effect that such investment will not adversely affect the status of any such REMIC as a REMIC under the Code or result in imposition of a tax on any such REMIC.  Permitted
Investments that are subject to prepayment or call may not be purchased at a price in excess of par.

Permitted Transferee:  Any person (x) other than (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, (ii) a foreign government, International Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’ cooperatives described in section 521 of the Code) that is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by section 511 of the Code on unrelated business taxable income) on any excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to any Residual Certificate, (iv) rural electric and telephone cooperatives described in section 1381(a)(2)(C) of the Code or (v) on electing large partnership within the meaning of Section 775(a) of the Code,
(y) that is a citizen or resident of the United States, a corporation, partnership (other than a partnership that has any direct or indirect foreign partners) or other entity (treated as a corporation or a partnership for federal income tax purposes), created or organized in or under the laws of the United States, any State thereof or the District of Columbia, an estate whose income from sources without the United States is includible 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, 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 authority to control all substantial decisions of the trust or if it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person and (z) other than any other Person so designated by
the Trustee based upon an Opinion of Counsel addressed to the Trustee (which shall not be an expense of the Trustee) that states that the Transfer of an Ownership Interest in a Residual Certificate to such Person may cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any Certificates are Outstanding. The terms “United States,” “State” and “International Organization” shall have the meanings set forth in section 7701 of the Code or successor provisions. A corporation will not be treated as an instrumentality of the United States or of any State or political subdivision thereof for these purposes if all of its activities are subject to tax and, with the exception of Freddie Mac, a majority of its board of directors is not selected by such government unit.

Person:  Any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government, or any agency or political subdivision thereof.

 

 

Prepayment Assumption:  The applicable rate of prepayment as described in the Prospectus Supplement.

Prepayment Charge:  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 Interest Shortfall:  With respect to any Distribution Date, for each Mortgage Loan that was the subject of a partial Principal Prepayment, a Principal Prepayment in full, or that became a Liquidated Loan during the related Prepayment Period, (other than a Principal Prepayment in full resulting from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 3.18 or 10.01 hereof), the amount, if any, by which (i) one month’s interest at the applicable Net Mortgage Rate on the Stated Principal Balance of such Mortgage Loan immediately prior to such prepayment (or liquidation) or in the case of a partial Principal Prepayment on the amount of such prepayment (or liquidation proceeds) exceeds (ii) the amount of interest paid or collected in connection with such Principal Prepayment or such liquidation proceeds less the sum of (a) the Trustee Fee,
(b) the Servicing Fee and (c) the LPMI Fee, if any.

Prepayment Period:  As to any Distribution Date, the period commencing on the 16th day of the month prior to the month in which the related Distribution Date occurs and ending on the 15th day of the month in which such Distribution Date occurs.

Primary Mortgage Insurance Policy:  Any primary mortgage guaranty insurance policy issued in connection with a Mortgage Loan which provides compensation to a Mortgage Note Holder in the event of default by the obligor under such Mortgage Note or the related security instrument, if any or any replacement policy therefor through the related Accrual Period for such Class relating to a Distribution Date.

Principal Distribution Amount:  With respect to each Distribution Date, an amount equal to (x) the Principal Funds for such Distribution Date plus (y) any Extra Principal Distribution Amount for such Distribution Date, less (z) any Overcollateralization Release Amount.

Principal Funds:  With respect to each Loan Group and any Distribution Date, (i) the sum, without duplication, of (a) all scheduled principal collected during the related Due Period, (b) all Advances relating to principal made on or before the Distribution Account Deposit Date, (c) Principal Prepayments exclusive of prepayment charges or penalties collected during the related Prepayment Period, (d) the Stated Principal Balance of each Mortgage Loan in the related Loan Group that was repurchased by the Seller pursuant to Sections 2.02 and 2.03, pursuant to the Mortgage Loan Purchase Agreement or by EMC pursuant to Section 3.18, (e) the aggregate of all Substitution Adjustment Amounts for the related Determination Date in connection with the substitution of Mortgage Loans pursuant to Section 2.03(c), (f) all Liquidation Proceeds and Subsequent Recoveries
collected during the related Prepayment Period (to the extent such Liquidation Proceeds and Subsequent Recoveries relate to principal), in each case to the extent remitted by the Master Servicer to the Distribution Account pursuant to this Agreement and (g) amounts in respect of principal paid by the Majority Class CE Certificateholder or the Master Servicer, as applicable, pursuant to Section 10.01, minus (ii) all amounts required to be reimbursed pursuant to Sections 4.02 and 4.05 or as otherwise set forth in this Agreement and 

 

 

(iii) any Net Swap Payments or Swap Termination Payments (not due to a Swap Provider Trigger Event) owed to the Swap Administrator for payment to the Swap Provider to the extent not paid from Interest Funds.

Principal Prepayment:  Any Mortgagor payment or other recovery of (or proceeds with respect to) principal on a Mortgage Loan (including loans purchased or repurchased under Sections 2.02, 2.03, 3.18 and 10.01 hereof) that is received in advance of its scheduled Due Date and is not accompanied by an amount as to interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment. Partial Principal Prepayments shall be applied by the Master Servicer, as appropriate, in accordance with the terms of the related Mortgage Note.

Principal Remittance Amount:  With respect to each Distribution Date, the sum of the amounts listed in clauses (a) through (f) of the definition of Principal Funds.

Private Certificates:  Any of the Class M-7, Class M-8, Class P, Class CE and Residual Certificates.

Prospectus Supplement:  The Prospectus Supplement dated April 26, 2005 relating to the public offering of the Class I-A-1, Class I-A-2, Class I-A-3, Class II-A-1, Class II-A-2, Class III-A-1, Class III-A-2, Class III-A-1, Class III-A-2, Class IV-A-1, Class IV-A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6 Certificates.

Protected Account:  The separate Eligible Account established and maintained by the Master Servicer with respect to the Mortgage Loans and REO Property in accordance with Section 4.01 hereof.

PUD:  A Planned Unit Development.

Purchase Price:  With respect to any Mortgage Loan (x) required to be repurchased by the Seller pursuant to Section 2.02 or 2.03 hereof or (y) that EMC has a right to purchase pursuant to Section 3.18 hereof, an amount equal to the sum of (i) 100% of the outstanding principal balance of the Mortgage Loan as of the date of such purchase (or if the related Mortgaged Property was acquired with respect thereto, 100% of the Outstanding Principal Balance at the date of the acquisition), plus (ii) accrued interest thereon at the applicable Mortgage Rate through the first day of the month in which the Purchase Price is to be distributed to Certificateholders, reduced by any portion of the Servicing Fee, Servicing Advances and Advances payable to the purchaser of the Mortgage Loan plus (iii) any costs and damages (if any) incurred by the Trust in connection with any
violation of such Mortgage Loan of any anti-predatory lending laws.

QIB:  A Qualified Institutional Buyer as defined in Rule 144A promulgated under the Securities Act.

Rating Agency:  Each of Moody’s and S&P. If any such organization or its successor is no longer in existence, “Rating Agency” shall be a nationally recognized statistical rating organization, or other comparable Person, designated by the Depositor, notice of which designation shall be given to the Trustee.  References herein to a given rating category of a Rating Agency shall mean such rating category without giving effect to any modifiers.

 

 

Realized Loss:  With respect to each Mortgage Loan as to which a Final Recovery Determination has been made, an amount (not less than zero) 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, minus (iii) 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 Master Servicer pursuant to this Agreement.  In addition, to the extent the Master Servicer receives Subsequent Recoveries with respect to any Mortgage Loan, the amount of the Realized Loss with respect to that Mortgage Loan will be reduced to the extent such recoveries are distributed to any Class of Certificates or applied to increase Excess Spread on any Distribution Date.

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, minus (iv) the aggregate of all unreimbursed Advances and Servicing Advances.

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.

Record Date:  With respect to any Distribution Date and the Certificates (other than the Class M-7, Class M-8, Class CE, Class P and Residual Certificates), so long as such Classes of Certificates are Book-Entry Certificates, the Business Day preceding such Distribution Date, and otherwise, the close of business on the last Business Day of the month preceding the month in 

 

 

which such Distribution Date occurs. With respect to the Class M-7, Class M-8, Class CE, Class P and Residual Certificates, so long as such Classes of Certificates remain non Book-Entry Certificates, the close of business on the last Business Day of the month preceding the month in which such Distribution Date occurs.

Reference Banks:  Shall mean leading banks selected by the Trustee and engaged in transactions in Eurodollar deposits in the international Eurocurrency market (i) with an established place of business in London, (ii) which have been designated as such by the Trustee and (iii) which are not controlling, controlled by, or under common control with, the Depositor, the Seller or the Master Servicer.

Reference Bank Rate:  With respect to any Accrual Period shall mean the arithmetic mean, rounded upwards, if necessary, to the nearest whole multiple of 0.03125%, of the offered rates for United States dollar deposits for one month that are quoted by the Reference Banks as of 11:00 a.m., New York City time, on the related Interest Determination Date to prime banks in the London interbank market for a period of one month in an amount approximately equal to the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates for such Accrual Period, provided that at least two such Reference Banks provide such rate. If fewer than two offered rates appear, the Reference Bank Rate will be the arithmetic mean, rounded upwards, if necessary, to the nearest whole multiple of 0.03125%, of the rates quoted by one or more major banks in New
York City, selected by the Trustee, as of 11:00 a.m., New York City time, on such date for loans in United States dollars to leading European banks for a period of one month in amounts approximately equal to the aggregate Certificate Principal Balance of the Class A Certificates and Class M Certificates for such Accrual Period.

Regular Certificate:  Any Certificate other than a Residual Certificate.

Regular Interest:  A “regular interest” in a REMIC within the meaning of Section 860G(a)(1) of the Code.

Relief Act:  The Servicemembers Civil Relief Act, as amended, or similar state law.

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.

Remaining Excess Spread:  With respect to any Distribution Date, the Excess Spread less any Extra Principal Distribution Amount, in each case for such Distribution Date.

REMIC:  A “real estate mortgage investment conduit” within the meaning of section 860D of the Code.

REMIC I:  The segregated pool of assets described in the Preliminary Statement and Section 5.07(a).

REMIC Regular Interests: The REMIC I Regular Interests and REMIC II Regular Interests.

 

 

REMIC I Group I Regular Interests:  REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-B as designated in the Preliminary Statement hereto.

REMIC I Group II Regular Interests:  REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-60-B as designated in the Preliminary Statement hereto.   

REMIC I Group III Regular Interests:  REMIC I Regular Interest III-1-A through REMIC I Regular Interest III-60-B as designated in the Preliminary Statement hereto.    

REMIC I Group IV Regular Interests:  REMIC I Regular Interest IV-1-A through REMIC I Regular Interest IV-60-B as designated in the Preliminary Statement hereto.    

REMIC I Regular Interest:  Any of the 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 Uncertificated REMIC I Pass-Through 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 Principal Balance as set forth in the Preliminary Statement hereto. The designations for the respective REMIC I Regular Interests are set forth in the Preliminary Statement hereto.  The REMIC I Regular Interests consist of the REMIC I Group I Regular Interests, REMIC I Group II Regular Interests, REMIC I Group III Regular Interests, REMIC I Group IV Regular Interests, and REMIC I Regular Interest P.

REMIC II:  The segregated pool of assets described in the Preliminary Statement and Section 5.07(a).

REMIC II Interest Loss Allocation Amount:  With respect to any Distribution Date, an amount (subject to adjustment based on the actual number of days elapsed in the respective Accrual Period) 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 Uncertificated REMIC II Pass-Through 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 I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7, REMIC II Regular Interest M-8 and REMIC II Regular Interest ZZ.

REMIC II Overcollateralization Amount:  With respect to any date of determination, (i) 0.50% of the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P) minus (ii) the aggregate Uncertificated Principal Balance of REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular 

 

 

Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7 and REMIC II Regular Interest M-8, 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 Uncertificated Principal Balance of REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7, REMIC
II Regular Interest M-8 and the denominator of which is the aggregate Uncertificated Principal Balance of REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7, REMIC II Regular Interest M-8 and REMIC II Regular Interest ZZ.

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 1A, REMIC II Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II Regular Interest 3B, REMIC II Regular Interest 4A, REMIC II Regular Interest 4B and REMIC II Regular Interest XX.

REMIC II Subordinated Balance Ratio:  The ratio among the Uncertificated Principal Balances of each REMIC II Regular Interest ending with the designation “A” (other than REMIC II Regular Interest AA), equal to the ratio among, with respect to each such REMIC II Regular Interest, the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group I or the Mortgage Loans in Loan Group II or the Mortgage Loans in Loan Group III or the Mortgage Loans in Loan Group IV, as applicable, over (y) the current Certificate Principal Balance of the related Class A Certificates.

REMIC II Required Overcollateralization Amount:  0.50% of the Overcollateralization Target Amount.

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 Uncertificated REMIC II Pass-Through 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 Principal 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 III:  The segregated pool of assets described in the Preliminary Statement and Section 5.07(a).

REMIC III Regular Interest:  The Class CE Interest, Class P Interest, Class IO Interest or any Regular Interest in REMIC III the ownership of which is represented by any of the Class A Certificates or Class M Certificates.

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 RX Certificate (in respect of the Class R-4 Interest), with respect to which a separate REMIC election is to be made.

REMIC IV Certificate:  Any Class CE Certificate or Class RX Certificate (in respect of the Class R-4 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 RX Certificate (in respect of the Class R-5 Interest), with respect to which a separate REMIC election is to be made.

REMIC V Certificate:  Any Class P Certificate or Class RX Certificate (in respect of the Class R-5 Interest).  

REMIC VI:  The segregated pool of assets consisting of the Class IO Interest conveyed in trust to the Trustee, for the benefit of the Holders of REMIC VI Regular Interest IO and the Class RX Certificate (in respect of the Class R-6 Interest), with respect to which a separate REMIC election is to be made.  

REMIC VI Interests:  The REMIC VI Regular Interest IO and any Class RX Certificate (in respect of the Class R-6 Interest).  

REMIC Opinion:  Shall mean an Opinion of Counsel to the effect that the proposed action will not cause any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any Certificates are outstanding.

REMIC Provisions:  Provisions of the federal income tax law relating to real estate mortgage investment conduits, which appear at Sections 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, as well as provisions of applicable state laws.

Remittance Date:  Shall mean the Business Day immediately preceding the Distribution Account Deposit Date.

 

 

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 Property:  A Mortgaged Property acquired by the Master Servicer through foreclosure or deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

Replacement Mortgage Loan:  A Mortgage Loan or Mortgage Loans in the aggregate substituted by the Seller for a Deleted Mortgage Loan, which must, on the date of such substitution, as confirmed in a Request for Release, (i) have a Stated Principal Balance, after deduction of the principal portion of the Scheduled Payment due in the month of substitution, not in excess of, and not less than 90% of, the Stated Principal Balance of the Deleted Mortgage Loan; (ii) if the Replacement Mortgage Loan is a fixed rate Mortgage Loan, have a fixed Mortgage Rate not less than or more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan; (iii) have the same or higher credit quality characteristics than that of the Deleted Mortgage Loan; (iv) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (v) have a remaining term to
maturity no greater than (and not more than one year less than) that of the Deleted Mortgage Loan; (vi) not permit conversion of the Mortgage Rate from a fixed rate to a variable rate; (vii) have the same lien priority as the Deleted Mortgage Loan; (viii) constitute the same occupancy type as the Deleted Mortgage Loan or be owner occupied; (ix) if the Replacement 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, (x) if the Replacement 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, (xi) if the Replacement Mortgage Loan is an Adjustable Rate Mortgage Loan, have a Gross Margin equal to or greater than the Gross Margin of the Deleted Mortgage Loan, (xii) if the Replacement 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, (xiii) comply with each representation and warranty set forth in Section 7 of the Mortgage Loan Purchase Agreement and (xiv) the Custodian has delivered a Final Certification noting no defects or exceptions.

Request for Release:  The Request for Release to be submitted by the Seller or the Master Servicer to the Custodian substantially in the form of Exhibit G. Each Request for Release furnished to the Custodian by the Seller or the Master Servicer shall be in duplicate and shall be executed by an officer of such Person or a Servicing Officer (or, if furnished electronically to the Custodian, shall be deemed to have been sent and executed by an officer of such Person or a Servicing Officer) of the Master Servicer.

Required Insurance Policy:  With respect to any Mortgage Loan, any insurance policy that is required to be maintained from time to time under this Agreement.

Reserve Fund:  Shall mean the separate trust account created and maintained by the Trustee pursuant to Section 3.20 hereof.

 

 

Residual Certificates:  The Class R-1, Class R-2, Class R-3 and Class RX Certificates (representing ownership of the Class R-4 Interest, Class R-5 Interest and Class R-6 Interest) each evidencing the sole class of Residual Interests (within the meaning of Section 860G(a)(2) of the Code) in the related REMIC.

Residual Interest:  The sole class of “residual interests” in a REMIC within the meaning of Section 860G(a)(2) of the Code.

Responsible Officer:  With respect to the Trustee, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, or any Trust Officer with specific responsibility for the transactions contemplated hereby, any other officer customarily performing functions similar to those performed by any of the above designated officers or other officers of the Trustee specified by the Trustee, as to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

S&P:  Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

Scheduled Payment:  The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan.

Securities Act:  The Securities Act of 1933, as amended.

Seller:  EMC Mortgage Corporation, a Delaware corporation, and its successors and assigns, in its capacity as seller of the Mortgage Loans to the Depositor.

Senior Certificates:  Any of the Class I-A-1, Class I-A-2, Class I-A-3, Class II-A-1 and Class II-A-2, Class III-A-1, Class III-A-2, Class IV-A-1 and Class IV-A-2 Certificates.

Servicing Advances:  All customary, reasonable and necessary “out of pocket” costs and expenses (including reasonable legal fees) incurred in the performance by the Master Servicer of its servicing obligations hereunder, 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 foreclosures, and including any expenses incurred in relation to any such proceedings that result from the Mortgage Loan being registered in the MERS® System, (iii) the management and liquidation of any REO Property (including, without limitation, realtor’s commissions) and (iv) compliance with any obligations under Section 3.07 hereof to cause insurance to be maintained.

Servicing Fee:  As to each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of the Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage Loan as of the last day of the related Due Period or, in the event of any payment of interest that accompanies a Principal Prepayment in full during the related Due Period made by the Mortgagor immediately prior to such prepayment, interest at the Servicing Fee Rate on the Stated Principal Balance of such Mortgage Loan for the period covered by such payment of interest.

Servicing Fee Rate:  0.500% per annum.

 

 

Servicing Modification:  With respect to any Mortgage Loan that is in default or, in the reasonable judgment of the Master Servicer, as to which default is reasonably foreseeable, any modification which is effected by the Master Servicer in accordance with the terms of this Agreement which results in any change in the outstanding Stated Principal Balance, any change in the Mortgage Rate or any extension of the term of such Mortgage Loan.

Servicing Officer:  Any officer of the Master Servicer involved in, or responsible for, the administration and servicing of the Mortgage Loans whose name and facsimile signature appear on a list of servicing officers furnished to the Trustee by the Master Servicer on the Closing Date pursuant to this Agreement, as such list may from time to time be amended.

Special Servicer Trigger: With respect to any Distribution Date, a Special Servicer Trigger shall have occurred and be continuing if at any time, (x) the percent equivalent of a fraction, the numerator of which is the aggregate Stated Principal Balance of the Mortgage Loans that are 61 days or more Delinquent (including for this purpose any such Mortgage Loans in bankruptcy or foreclosure and Mortgage Loans with respect to which the related Mortgaged Property is REO Property), and the denominator of which is the aggregate Stated Principal Balance of all of the Mortgage Loans as of the last day of the related Due Period exceeds (y) the percentage set forth in Exhibit N for such Distribution Date.. 

Startup Day:  The Startup Day for each REMIC formed hereunder shall be the Closing Date.

Stated Principal Balance:  With respect to any Mortgage Loan or related REO Property and any Distribution Date, the Cut-off Date Principal Balance thereof minus the sum of (i) the principal portion of the Scheduled Payments due with respect to such Mortgage Loan during each Due Period ending prior to such Distribution Date (and irrespective of any delinquency in their payment), (ii) all Principal Prepayments with respect to such Mortgage Loan received prior to or during the related Prepayment Period, and all Liquidation Proceeds to the extent applied by the Master Servicer as recoveries of principal in accordance with Section 3.09 with respect to such Mortgage Loan, that were received by the Master Servicer as of the close of business on the last day of the Prepayment Period related to such Distribution Date and (iii) any Realized Losses on such Mortgage Loan
incurred during the related Prepayment Period.  The Stated Principal Balance of a Liquidated Loan equals zero.

Stepdown Date:  The later to occur of (a) the Distribution Date in May 2008 and (b) the first Distribution Date on which the Current Specified Enhancement Percentage (calculated for this purpose only, prior to distributions on the Certificates but following distributions on the Mortgage Loans for the related Due Period) is greater than or equal to 45.40%.

Subordinated Certificates:  The Class M Certificates, Class CE Certificates and Residual Certificates.

Subsequent Recoveries:  As of any Distribution Date, amounts received by the Master Servicer (net of any related expenses permitted to be reimbursed pursuant to Section 4.02) or surplus amounts held by the Master Servicer to cover estimated expenses (including, but not limited to, recoveries in respect of the representations and warranties made by the Seller pursuant 

 

 

to the Mortgage Loan Purchase Agreement) specifically related to a Mortgage Loan that was the subject of a liquidation or final disposition of any REO Property prior to the related Prepayment Period that resulted in a Realized Loss.

Subservicing Agreement:  Any agreement entered into between the Master Servicer and a subservicer with respect to the subservicing of any Mortgage Loan hereunder by such subservicer.

Substitution Adjustment Amount:  The meaning ascribed to such term pursuant to Section 2.03(c).

Successor Master Servicer:  The meaning ascribed to such term pursuant to Section 8.02.

Swap Administration Agreement:  The swap administration agreement, dated April 29, 2005, pursuant to which the Swap Administrator will make payments to the Swap Provider and the Trust Fund, and certain other payments.

Swap Agreement: The interest rate swap agreement between the Swap Provider and the Swap Administrator, 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, attached hereto as Exhibit M.

Swap Account:  The separate trust account created and maintained by the Swap Administrator pursuant to the Swap Administration Agreement.  

Swap LIBOR:  LIBOR as determined pursuant to the Swap Agreement.

Swap Provider:  The swap provider under the Swap Agreement either (a) entitled to receive payments from the Swap Administrator from amounts payable by the Trust Fund under this Agreement or (b) required to make payments to the Swap Administrator for payment to the Trust Fund, 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 Bank of New York.

Swap Provider Trigger Event:  With respect to any Distribution Date, (i) an Event of Default under the Interest Rate Swap Agreement with respect to which the Swap Provider is a Defaulting Party, (ii) a Termination Event under the Interest Rate Swap Agreement with respect to which the Swap Provider is the sole Affected Party, or (iii) an Additional Termination Event under the interest rate 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 Swap Administrator to the Swap Provider from payments from the Trust Fund, or by the Swap Provider to the Swap Administrator for payment to the Trust Fund, as applicable, pursuant to the terms of the Swap Agreement.

Tax Matters Person:  The person designated as “tax matters person” in the manner provided under Treasury Regulation Sections 1.860F-4(d) and 301.6231(a)(7)-1T. The Holder of 

 

 

the greatest Percentage Interest in a Class of Residual Certificates shall be the Tax Matters Person for the related REMIC. The Trustee, or any successor thereto or assignee thereof, shall serve as tax administrator hereunder and as agent for the related Tax Matters Person.

Transfer:  Any direct or indirect transfer or sale of any Ownership Interest in a Certificate.

Transfer Affidavit:  As defined in Section 6.02.

Trigger Event:  With respect to any Distribution Date, a Trigger Event exists if (i) a Delinquency Event shall have occurred and be continuing or (ii) the aggregate amount of Realized Losses on the Mortgage Loans since the Cut-off Date as a percentage of the Cut-off Date Principal Balance exceeds the applicable percentages set forth below with respect to such Distribution Date:

	
            
Distribution Date
 
 	
            
Percentage
 
 
	
             
 	
             
 
	
            May 2008 to April 2009
 	
            3.50%
 
	
            May 2009 to April 2010
 	
            5.25%
 
	
            May 2010 to April 2011
 	
            7.00%
 
	
            May 2011 and thereafter
 	
            7.75%
 

 

Trust Fund:  The corpus of the trust created hereunder consisting of (i) the Mortgage Loans and all interest accruing and principal due with respect thereto after the Cut-off Date to the extent not applied in computing the Cut-off Date Principal Balance thereof; (ii) the Distribution Account, the Class P Certificate Account, the Reserve Fund and the Protected Account and all amounts deposited therein pursuant to the applicable provisions of this Agreement; (iii) property that secured a Mortgage Loan and has been acquired by foreclosure, deed in lieu of foreclosure or otherwise; (iv) the mortgagee’s rights under the Insurance Policies with respect to the Mortgage Loans; (v) the rights under the Swap Administration Agreement; (vi) the rights under the Mortgage Loan Purchase Agreement; and (vii) all proceeds of the foregoing, including proceeds of conversion,
voluntary or involuntary, of any of the foregoing into cash or other liquid property.

Trustee:  LaSalle Bank National Association, a national banking association, not in its individual capacity, but solely in its capacity as trustee for the benefit of the Certificateholders under this Agreement, and any successor thereto, and any corporation or national banking association resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee as may from time to time be serving as successor trustee hereunder.

Trustee Fee:  As to each Mortgage Loan and any Distribution Date, a per annum fee equal to 0.0054% multiplied by the Stated Principal Balance of such Mortgage Loan as of the last day of the related Due Period.

Uncertificated Accrued Interest:  With respect to each REMIC Regular Interest on each Distribution Date, an amount equal to one month’s interest at the related Uncertificated Pass-Through Rate on the related Uncertificated Principal Balance of such REMIC Regular Interest. 

 

 

In each case, Uncertificated Accrued Interest will be reduced by any Prepayment Interest Shortfalls and Relief Act Interest Shortfalls (allocated to such REMIC Regular Interests as set forth in Section 1.02).

Uncertificated Notional Amount:  With respect to the Class CE Interest and any Distribution Date, an amount equal to the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests (other than REMIC II Regular Interest P) for such Distribution Date.  

With respect to REMIC II Regular Interest IO and each Distribution Date listed below, the aggregate Uncertificated Principal 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-60-A, II-1-A through II-60-A, III-1-A through III-60-A and IV-1-A through IV-60-A
 
	 	 
	
            2
 	
            I-2-A through I-60-A, II-2-A through II-60-A, III-2-A through III-60-A and IV-2-A through IV-60-A
 
	 	 
	
            3
 	
            I-3-A through I-60-A, II-3-A through II-60-A, III-3-A through III-60-A and IV-3-A through IV-60-A
 
	 	 
	
            4
 	
            I-4-A through I-60-A, II-4-A through II-60-A, III-4-A through III-60-A and IV-4-A through IV-60-A
 
	 	 
	
            5
 	
            I-5-A through I-60-A, II-5-A through II-60-A, III-5-A through III-60-A and IV-5-A through IV-60-A
 
	 	 
	
            6
 	
            I-6-A through I-60-A, II-6-A through II-60-A, III-6-A through III-60-A and IV-6-A through IV-60-A
 
	 	 
	
            7
 	
            I-7-A through I-60-A, II-7-A through II-60-A, III-7-A through III-60-A and IV-7-A through IV-60-A
 
	 	 
	
            8
 	
            I-8-A through I-60-A, II-8-A through II-60-A, III-8-A through III-60-A and IV-8-A through IV-60-A
 
	 	 
	
            9
 	
            I-9-A through I-60-A, II-9-A through II-60-A, III-9-A through III-60-A and IV-9-A through IV-60-A
 
	 	 
	
            10
 	
            I-10-A through I-60-A, II-10-A through II-60-A, III-10-A through III-60-A and IV-10-A through IV-60-A
 
	 	 
	
            11
 	
            I-11-A through I-60-A, II-11-A through II-60-A, III-11-A through III-60-A and IV-11-A through IV-60-A
 
	 	 
	
            12
 	
            I-12-A through I-60-A, II-12-A through II-60-A, III-12-A through III-60-A and IV-12-A through IV-60-A
 
	
            13
 	
            I-13-A through I-60-A, II-13-A through II-60-A, III-13-A through III-60-A and IV-13-A through IV-60-A
 
	
            14
 	
            I-14-A through I-60-A, II-14-A through II-60-A, III-14-A through III-60-A and IV-14-A through IV-60-A
 
	
            15
 	
            I-15-A through I-60-A, II-15-A through II-60-A, III-15-A through III-60-A and IV-15-A through IV-60-A
 
	
            16
 	
            I-16-A through I-60-A, II-16-A through II-60-A, III-16-A through III-60-A and IV-16-A through IV-60-A
 
	
            17
 	
            I-17-A through I-60-A, II-17-A through II-60-A, III-17-A through III-60-A and IV-17-A through IV-60-A
 
	
            18
 	
            I-18-A through I-60-A, II-18-A through II-60-A, III-18-A through III-60-A and IV-18-A through IV-60-A
 
	
            19
 	
            I-19-A through I-60-A, II-19-A through II-60-A, III-19-A through III-60-A and IV-19-A through IV-60-A
 
	
            20
 	
            I-20-A through I-60-A, II-20-A through II-60-A, III-20-A through III-60-A and IV-20-A through IV-60-A
 
	
            21
 	
            I-21-A through I-60-A, II-21-A through II-60-A, III-21-A through III-60-A and IV-21-A through IV-60-A
 
	
            22
 	
            I-22-A through I-60-A, II-22-A through II-60-A, III-22-A through III-60-A and IV-22-A through IV-60-A
 
	
            23
 	
            I-23-A through I-60-A, II-23-A through II-60-A, III-23-A through III-60-A and IV-23-A through IV-60-A
 
	
            24
 	
            I-24-A through I-60-A, II-24-A through II-60-A, III-24-A through III-60-A and IV-24-A through IV-60-A
 
	
            25
 	
            I-25-A through I-60-A, II-25-A through II-60-A, III-25-A through III-60-A and IV-25-A through IV-60-A
 
	
            26
 	
            I-26-A through I-60-A, II-26-A through II-60-A, III-26-A through III-60-A and IV-26-A through IV-60-A
 
	
            27
 	
            I-27-A through I-60-A, II-27-A through II-60-A, III-27-A through III-60-A and IV-27-A through IV-60-A
 
	
            28
 	
            I-28-A through I-60-A, II-28-A through II-60-A, III-28-A through III-60-A and IV-28-A through IV-60-A
 
	
            29
 	
            I-29-A through I-60-A, II-29-A through II-60-A, III-29-A through III-60-A and IV-29-A through IV-60-A
 
	
            30
 	
            I-30-A through I-60-A, II-30-A through II-60-A, III-30-A through III-60-A and IV-30-A through IV-60-A
 
	
            31
 	
            I-31-A through I-60-A, II-31-A through II-60-A, III-31-A through III-60-A and IV-31-A through IV-60-A
 
	
            32
 	
            I-32-A through I-60-A, II-32-A through II-60-A, III-32-A through III-60-A and IV-32-A through IV-60-A
 
	
            33
 	
            I-33-A through I-60-A, II-33-A through II-60-A, III-33-A through III-60-A and IV-33-A through IV-60-A
 
	
            34
 	
            I-34-A through I-60-A, II-34-A through II-60-A, III-34-A through III-60-A and IV-34-A through IV-60-A
 
	
            35
 	
            I-35-A through I-60-A, II-35-A through II-60-A, III-35-A through III-60-A and IV-35-A through IV-60-A
 
	
            36
 	
            I-36-A through I-60-A, II-36-A through II-60-A, III-36-A through III-60-A and IV-36-A through IV-60-A
 
	
            37
 	
            I-37-A through I-60-A, II-37-A through II-60-A, III-37-A through III-60-A and IV-37-A through IV-60-A
 
	
            38
 	
            I-38-A through I-60-A, II-38-A through II-60-A, III-38-A through III-60-A and IV-38-A through IV-60-A
 
	
            39
 	
            I-39-A through I-60-A, II-39-A through II-60-A, III-39-A through III-60-A and IV-39-A through IV-60-A
 
	
            40
 	
            I-40-A through I-60-A, II-40-A through II-60-A, III-40-A through III-60-A and IV-40-A through IV-60-A
 
	
            41
 	
            I-41-A through I-60-A, II-41-A through II-60-A, III-41-A through III-60-A and IV-41-A through IV-60-A
 
	
            42
 	
            I-42-A through I-60-A, II-42-A through II-60-A, III-42-A through III-60-A and IV-42-A through IV-60-A
 
	
            43
 	
            I-43-A through I-60-A, II-43-A through II-60-A, III-43-A through III-60-A and IV-43-A through IV-60-A
 
	
            44
 	
            I-44-A through I-60-A, II-44-A through II-60-A, III-44-A through III-60-A and IV-44-A through IV-60-A
 
	
            45
 	
            I-45-A through I-60-A, II-45-A through II-60-A, III-45-A through III-60-A and IV-45-A through IV-60-A
 

 

 

 

 

	
            46
 	
            I-46-A through I-60-A, II-46-A through II-60-A, III-46-A through III-60-A and IV-46-A through IV-60-A
 
	
            47
 	
            I-47-A through I-60-A, II-47-A through II-60-A, III-47-A through III-60-A and IV-47-A through IV-60-A
 
	
            48
 	
            I-48-A through I-60-A, II-48-A through II-60-A, III-48-A through III-60-A and IV-48-A through IV-60-A
 
	
            49
 	
            I-49-A through I-60-A, II-49-A through II-60-A, III-49-A through III-60-A and IV-49-A through IV-60-A
 
	
            50
 	
            I-50-A through I-60-A, II-50-A through II-60-A, III-50-A through III-60-A and IV-50-A through IV-60-A
 
	
            51
 	
            I-51-A through I-60-A, II-51-A through II-60-A, III-51-A through III-60-A and IV-51-A through IV-60-A
 
	
            52
 	
            I-52-A through I-60-A, II-52-A through II-60-A, III-52-A through III-60-A and IV-52-A through IV-60-A
 
	
            53
 	
            I-53-A through I-60-A, II-53-A through II-60-A, III-53-A through III-60-A and IV-53-A through IV-60-A
 
	
            54
 	
            I-54-A through I-60-A, II-54-A through II-60-A, III-54-A through III-60-A and IV-54-A through IV-60-A
 
	
            55
 	
            I-55-A through I-60-A, II-55-A through II-60-A, III-55-A through III-60-A and IV-55-A through IV-60-A
 
	
            56
 	
            I-56-A through I-60-A, II-56-A through II-60-A, III-56-A through III-60-A and IV-56-A through IV-60-A
 
	
            57
 	
            I-57-A through I-60-A, II-57-A through II-60-A, III-57-A through III-60-A and IV-57-A through IV-60-A
 
	
            58
 	
            I-58-A through I-60-A, II-58-A through II-60-A, III-58-A through III-60-A and IV-58-A through IV-60-A
 
	
            59
 	
            I-59-A through I-60-A, II-59-A through II-60-A, III-59-A through III-60-A and IV-59-A through IV-60-A
 
	
            60
 	
            I-60-A, II-60-A and III-60-A
 
	
            thereafter
 	
            $0.00
 

 

With respect to the Class IO Interest and any Distribution Date, an amount equal to the Uncertificated Notional Amount of the REMIC II Regular Interest IO.   With respect to REMIC VI Regular Interest IO, an amount equal to the Uncertificated Notional Amount of the Class IO Interest.

Uncertificated Pass-Through Rate:  The Uncertificated REMIC I Pass-Through Rate and Uncertificated REMIC II Pass-Through Rate.

Uncertificated Principal Balance:  The amount of REMIC Regular Interests and Class P Interest outstanding as of any date of determination. As of the Closing Date, the Uncertificated Principal Balance of each REMIC Regular Interest and Class P Interest shall equal the amount set forth in the Preliminary Statement hereto as its initial uncertificated principal balance. On each Distribution Date, the Uncertificated Principal Balance of the REMIC Regular Interests and Class P Interest shall be reduced by all distributions of principal made on such REMIC Regular Interests and Class P Interest on such Distribution Date pursuant to Section 5.07 and, if and to the extent necessary and appropriate, shall be further reduced on such Distribution Date by Realized Losses as provided in Section 5.05, and the Uncertificated Principal Balance of REMIC II Regular Interest ZZ
shall be increased by interest deferrals as provided in Section 5.07(c)(1)(ii). The Uncertificated Principal Balance of each REMIC Regular Interest and Class P Interest shall never be less than zero.  With respect to the Class CE Interest as of any date of determination, an amount equal to the excess, if any, of (A) the then aggregate Uncertificated Principal Balance of the REMIC II Regular Interests over (B) the then aggregate Certificate Principal Balance of the Class A Certificates and the Class M Certificates and the Uncertified Principal Balance of the Class P Interest then outstanding.

Uncertificated REMIC I Pass-Through Rate:  With respect to each REMIC I Group I Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average Net Mortgage Rate of Loan Group I multiplied by 2, subject to a maximum rate of 8.2160%.  With respect to each REMIC I Group I 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 Net Mortgage Rate of Loan Group I over (ii) 8.2160% and (y) 0.00%.  With respect to each REMIC I Group II Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average Net Mortgage Rate of Loan Group II multiplied by 2, subject to a 

 

 

maximum rate of 8.2160%.  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 Net Mortgage Rate of Loan Group II over (ii) 8.2160% and (y) 0.00%.  With respect to each REMIC I Group III Regular Interest ending with the designation “A”, a per annum rate equal to the weighted average Net Mortgage Rate of Loan Group III multiplied by 2, subject to a maximum rate of 8.2160%.  With respect to each REMIC I Group III 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 Net Mortgage Rate of Loan Group III over (ii) 8.2160%, and (y) 0.00%. With respect to each REMIC I Group IV Regular Interest ending with the designation “A”, a
per annum rate equal to the weighted average Net Mortgage Rate of Loan Group IV multiplied by 2, subject to a maximum rate of 8.2160%.  With respect to each REMIC I Group IV 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 Net Mortgage Rate of Loan Group IV over (ii) 8.2160%, and (y) 0.00%. With respect to REMIC I Regular Interest P, 0.00%.

Uncertificated REMIC II Pass-Through Rate:  With respect to REMIC II Regular Interest AA, REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7, REMIC II Regular Interest M-8, REMIC II Regular Interest ZZ,  REMIC II Regular Interest 1A, REMIC II Regular Interest 2A, REMIC II Regular Interest 3A, REMIC II Regular Interest 4A and REMIC II Regular Interest XX, a per annum rate (but not less than zero)
equal to the weighted average of (x) with respect to REMIC I Regular Interests ending with the designation “B”, the weighted average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Principal 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 Principal 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-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
            2
 	
            I-2-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-2-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-2-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-2-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            I-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            3
 	
            I-3-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-3-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-3-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-3-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A and I-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A and II-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A and III-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A and IV-2-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            4
 	
            I-4-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-4-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-4-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-4-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-3-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            5
 	
            I-5-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-5-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-5-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-5-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-4-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            6
 	
            I-6-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-6-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-6-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-6-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-5-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            7
 	
            I-7-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-7-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-7-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-7-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-6-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            8
 	
            I-8-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-8-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-8-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-8-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-7-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            9
 	
            I-9-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-9-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-9-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-9-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-8-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            10
 	
            I-10-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-10-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-10-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-10-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-9-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            11
 	
            I-11-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-11-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-11-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-11-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-10-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            12
 	
            I-12-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-12-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-12-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-12-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-11-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 

 

 

 

 

	
            13
 	
            I-13-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-13-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-13-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-13-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-12-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            14
 	
            I-14-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-14-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-14-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-14-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-13-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            15
 	
            I-15-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-15-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-15-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-15-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-14-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            16
 	
            I-16-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-16-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-16-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-16-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-15-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            17
 	
            I-17-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-17-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-17-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-17-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-16-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            18
 	
            I-18-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-18-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            III-18-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-18-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-17-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            19
 	
            I-19-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-19-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-19-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-19-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-18-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            20
 	
            I-20-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-20-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-20-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-20-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-19-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            21
 	
            I-21-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-21-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-21-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-21-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-20-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            22
 	
            I-22-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-22-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-22-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-22-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-21-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            23
 	
            I-23-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-23-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-23-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-23-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-22-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            24
 	
            I-24-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-24-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-24-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-24-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-23-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            25
 	
            I-25-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-25-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-25-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-25-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-24-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            26
 	
            I-26-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-26-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-26-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-26-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-25-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            27
 	
            I-27-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-27-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-27-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-27-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-26-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            28
 	
            I-28-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-28-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-28-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-28-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-27-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            29
 	
            I-29-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-29-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-29-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-29-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-28-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            30
 	
            I-30-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-30-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-30-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-30-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-29-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            31
 	
            I-31-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-31-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-31-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-31-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-30-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            32
 	
            I-32-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-32-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-32-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-32-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-31-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            33
 	
            I-33-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-33-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-33-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-33-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-32-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 

 

 

 

 

	
            34
 	
            I-34-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-34-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-34-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-34-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-33-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            35
 	
            I-35-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-35-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-35-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-35-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-34-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            36
 	
            I-36-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-36-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-36-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-36-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-35-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            37
 	
            I-37-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-37-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-37-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-37-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-36-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            38
 	
            I-38-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-38-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-38-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-38-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-37-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            39
 	
            I-39-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-39-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            III-39-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-39-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-38-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            40
 	
            I-40-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-40-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-40-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-40-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-39-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            41
 	
            I-41-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-41-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-41-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-41-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-40-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            42
 	
            I-42-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-42-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-42-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-42-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-41-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            43
 	
            I-43-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-43-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate 
 
	
             
 	
            III-43-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate 
 
	
             
 	
            IV-43-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate 
 
	
             
 	
            I-1-A through I-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-42-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            44
 	
            I-44-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-44-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-44-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-44-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-43-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            45
 	
            I-45-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-45-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-45-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-45-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-44-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            46
 	
            I-46-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-46-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-46-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-46-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-45-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            47
 	
            I-47-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-47-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-47-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-47-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-46-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            48
 	
            I-48-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-48-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-48-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-48-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-47-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            49
 	
            I-49-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-49-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-49-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-49-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-48-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            50
 	
            I-50-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-50-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-50-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-50-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-49-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            51
 	
            I-51-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-51-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-51-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-51-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-50-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            52
 	
            I-52-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-52-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-52-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-52-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-51-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            53
 	
            I-53-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-53-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-53-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-53-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-52-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            54
 	
            I-54-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-54-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-54-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-54-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-53-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 

 

 

 

 

	
            55
 	
            I-55-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-55-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-55-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-55-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-54-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            56
 	
            I-56-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-56-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-56-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-56-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-55-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            57
 	
            I-57-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-57-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-57-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-57-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-56-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            58
 	
            I-58-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-58-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-58-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-58-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-57-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            59
 	
            I-59-A and I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-59-A and II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-59-A and III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-59-A and IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-58-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            60
 	
            I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-59-A
 	
            Uncertificated REMIC I Pass-Through Rate

 
 
	
            thereafter
 	
            I-1-A through I-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

With respect to REMIC II Regular Interest 1B, a per annum rate (but not less than zero) equal to the weighted average of (x) with respect to REMIC I Group I Regular Interests ending with the designation “B”, the weighted average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Principal Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group I 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 Principal 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-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            I-2-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            I-3-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A and I-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            I-4-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            I-5-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            I-6-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            I-7-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            I-8-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            I-9-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            I-10-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            I-1-A through I-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            I-11-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            I-12-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            I-13-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            I-14-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            I-15-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            I-16-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            I-17-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            I-18-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            I-19-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            I-20-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            I-21-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            I-22-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            I-23-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            I-24-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            I-25-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            I-26-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            I-27-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            I-1-A through I-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            I-28-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            I-29-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            I-30-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            I-31-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            I-32-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            I-33-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            I-34-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            I-35-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            I-36-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            I-37-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            I-38-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            I-39-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            I-40-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            I-41-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            I-42-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            43
 	
            I-43-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            44
 	
            I-44-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            I-1-A through I-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            45
 	
            I-45-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            46
 	
            I-46-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            47
 	
            I-47-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            48
 	
            I-48-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            49
 	
            I-49-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            50
 	
            I-50-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            51
 	
            I-51-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            52
 	
            I-52-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            53
 	
            I-53-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            54
 	
            I-54-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            55
 	
            I-55-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            56
 	
            I-56-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            57
 	
            I-57-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            58
 	
            I-58-A through I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            59
 	
            I-59-A and I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            60
 	
            I-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            I-1-A through I-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            I-1-A through I-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

 

 

With respect to REMIC II Regular Interest 2B, a per annum rate (but not less than zero) equal to the weighted average of (x) with respect to REMIC I Group II Regular Interests ending with the designation “B”, the weighted average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Principal 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 Principal 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-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            II-2-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            II-3-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A and II-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            II-4-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            II-5-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            II-6-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            II-7-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            II-8-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            II-9-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            II-10-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            II-11-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            II-12-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            II-13-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            II-14-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            II-1-A through II-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            II-15-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            II-16-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            II-17-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            II-18-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            II-19-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            II-20-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            II-21-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            II-22-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            II-23-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            II-24-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            II-25-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            II-26-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            II-27-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            II-28-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            II-29-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            II-30-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            II-31-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            II-1-A through II-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            II-32-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            II-33-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            II-34-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            II-35-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            II-36-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            II-37-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            II-38-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            II-39-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            II-40-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            II-41-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            II-42-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            43
 	
            II-43-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            44
 	
            II-44-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            45
 	
            II-45-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            46
 	
            II-46-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            47
 	
            II-47-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            48
 	
            II-48-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            II-1-A through II-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            49
 	
            II-49-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            50
 	
            II-50-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            51
 	
            II-51-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            52
 	
            II-52-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            53
 	
            II-53-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            54
 	
            II-54-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            55
 	
            II-55-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            56
 	
            II-56-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            57
 	
            II-57-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            58
 	
            II-58-A through II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            59
 	
            II-59-A and II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            60
 	
            II-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            II-1-A through II-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            II-1-A through II-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

With respect to REMIC II Regular Interest 3B, a per annum rate (but not less than zero) equal to the weighted average of (x) with respect to REMIC I Group III Regular Interests ending with the designation “B”, the weighted average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Principal Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group III 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 Principal 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-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            III-2-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            III-3-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A and III-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            III-4-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            III-5-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            III-6-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            III-7-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            III-8-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            III-9-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            III-10-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            III-11-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            III-12-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            III-13-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            III-14-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            III-15-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            III-16-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            III-17-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 

 

 

 

 

	
            18
 	
            III-18-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            III-19-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            III-20-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            III-21-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            III-22-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            III-23-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            III-24-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            III-25-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            III-26-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            III-27-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            III-28-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            III-29-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            III-30-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            III-31-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            III-32-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            III-33-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            III-34-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 

 

 

 

 

	
            35
 	
            III-35-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            III-36-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            III-37-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            III-38-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            III-39-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            III-40-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            III-41-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            III-42-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            43
 	
            III-43-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            44
 	
            III-44-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            45
 	
            III-45-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            46
 	
            III-46-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            47
 	
            III-47-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            48
 	
            III-48-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            49
 	
            III-49-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            50
 	
            III-50-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            51
 	
            III-51-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 

 

 

 

 

	
            52
 	
            III-52-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            53
 	
            III-53-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            54
 	
            III-54-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            55
 	
            III-55-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            56
 	
            III-56-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            57
 	
            III-57-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            58
 	
            III-58-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            59
 	
            III-59-A and III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            60
 	
            III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            III-1-A through III-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            III-1-A through III-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

With respect to REMIC II Regular Interest 4B, a per annum rate (but not less than zero) equal to the weighted average of (x) with respect to REMIC I Group IV Regular Interests ending with the designation “B”, the weighted average of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on the basis of the Uncertificated Principal Balances of each such REMIC I Regular Interest for each such Distribution Date and (y) with respect to REMIC I Group IV 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 Principal Balances of each such REMIC I Regular Interest for each such Distribution Date:

	
            
Distribution Date
 
 	
            
REMIC I Regular Interest
 
 	
            
Rate
 
 
	
            1
 	
            IV-1-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            2
 	
            IV-2-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            3
 	
            IV-3-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A and IV-2-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            4
 	
            IV-4-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-3-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            5
 	
            IV-5-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-4-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            6
 	
            IV-6-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-5-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            7
 	
            IV-7-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-6-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            8
 	
            IV-8-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-7-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            9
 	
            IV-9-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-8-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            10
 	
            IV-10-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-9-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            11
 	
            IV-11-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-10-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            12
 	
            IV-12-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-11-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            13
 	
            IV-13-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-12-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            14
 	
            IV-14-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-13-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            15
 	
            IV-15-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-14-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            16
 	
            IV-16-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-15-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            17
 	
            IV-17-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-16-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            18
 	
            IV-18-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-17-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            19
 	
            IV-19-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-18-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            20
 	
            IV-20-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-19-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            21
 	
            IV-21-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-20-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            22
 	
            IV-22-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-21-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            23
 	
            IV-23-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-22-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            24
 	
            IV-24-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-23-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            25
 	
            IV-25-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-24-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            26
 	
            IV-26-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-25-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            27
 	
            IV-27-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-26-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            28
 	
            IV-28-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-27-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            29
 	
            IV-29-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-28-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            30
 	
            IV-30-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-29-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            31
 	
            IV-31-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-30-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            32
 	
            IV-32-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-31-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            33
 	
            IV-33-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-32-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            34
 	
            IV-34-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-33-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            35
 	
            IV-35-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-34-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            36
 	
            IV-36-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-35-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            37
 	
            IV-37-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-36-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            38
 	
            IV-38-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-37-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            39
 	
            IV-39-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-38-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            40
 	
            III-40-A through III-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-39-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            41
 	
            IV-41-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-40-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            42
 	
            IV-42-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-41-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            43
 	
            IV-43-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-42-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            44
 	
            IV-44-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-43-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            45
 	
            IV-45-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-44-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            46
 	
            IV-46-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-45-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            47
 	
            IV-47-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-46-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            48
 	
            IV-48-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-47-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            49
 	
            IV-49-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-48-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            50
 	
            IV-50-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-49-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            51
 	
            IV-51-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-50-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            52
 	
            IV-52-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-51-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            53
 	
            IV-53-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-52-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            54
 	
            IV-54-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-53-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            55
 	
            IV-55-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 

 

 

 

 

	
             
 	
            IV-1-A through IV-54-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            56
 	
            IV-56-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-55-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            57
 	
            IV-57-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-56-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            58
 	
            IV-58-A through IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-57-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            59
 	
            IV-59-A and IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-58-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            60
 	
            IV-60-A
 	
            2 multiplied by Swap LIBOR, subject to a maximum rate of Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
            IV-1-A through IV-59-A
 	
            Uncertificated REMIC I Pass-Through Rate
 
	
             
 	
             
 	
             
 
	
            thereafter
 	
            IV-1-A through IV-60-A
 	
            Uncertificated REMIC I Pass-Through Rate
 

 

With respect to REMIC II Regular Interest IO, the excess of (i) the weighted average of the Uncertificated REMIC I Pass-Through Rates for REMIC I Regular Interests ending with the designation “A”, over (ii) 2 multiplied by Swap LIBOR. 

With respect to REMIC II Regular Interest P, 0.00%.

Unpaid Realized Loss Amount:  With respect to any Class A Certificates and as to any Distribution Date, is the excess of Applied Realized Loss Amounts with respect to such Class over the sum of all distributions in reduction of the Applied Realized Loss Amounts on all previous Distribution Dates.  Any amounts distributed to the Class A Certificates in respect of any Unpaid Realized Loss Amount shall not be applied to reduce the Certificate Principal Balance of such Class.

Voting Rights:  The portion of the voting rights of all the Certificates that is allocated to any Certificate for purposes of the voting provisions hereunder. Voting Rights shall be allocated (i) 92% to the Class A Certificates and Class M Certificates, (ii) 3% to the Class CE Certificates until paid in full, and (iii) 1% to each of the Class R-1, Class R-2, Class R-3, Class RX and Class P Certificates, with the allocation among the Certificates (other than the Class CE, Class P and Residual Certificates) to be in proportion to the Certificate Principal Balance of each Class relative to the Certificate Principal Balance of all other such Classes. Voting Rights will be allocated among the Certificates of each such Class in accordance with their respective Percentage Interests. 

	
            Section 1.02
 	
            Allocation of Certain Interest Shortfalls.  
 

For purposes of calculating the amount of Current Interest for the Class A Certificates, the Class M Certificates and the Class CE Certificates for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Master Servicer pursuant to Section 5.02) 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 Interest based on, and to the extent of, one month’s interest at the then applicable respective Pass Through Rate on the Uncertificated Notional Amount thereof and, thereafter, among the Class A Certificates and Class M Certificates, in each case on a pro rata basis based on, and to the extent of, one month’s interest at the then applicable respective Pass Through Rates on the respective Certificate Principal Balances of each such Certificate.

For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Regular Interests for any Distribution Date:

(a)        For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Group I Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Master Servicer pursuant to Section 5.02) and any Relief Act Interest Shortfalls incurred in respect of Loan Group I shall be allocated first, to REMIC I Group I 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest, and then, to REMIC I Group I 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest.  For purposes of calculating the amount of Uncertificated Accrued 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 Master Servicer pursuant to Section 5.02) and any Relief Act Interest Shortfalls incurred in respect of Loan Group II shall be allocated first, to 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 Uncertificated REMIC I Pass-Through 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest. For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Group III Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Master Servicer pursuant to Section 5.02) and any Relief Act Interest Shortfalls incurred in respect of Loan Group III shall be allocated first, to REMIC I Group III 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest, and then, to REMIC I Group III 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest. For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Group IV Regular Interests for any Distribution Date, the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Master Servicer pursuant to Section 5.02) and any Relief Act Interest Shortfalls incurred in respect of Loan 

 

 

Group IV shall be allocated first, to REMIC I Group IV 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest, and then, to REMIC I Group IV 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 Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC I Regular Interest.

(b)        The REMIC II Marker Allocation Percentage of the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by the Master Servicer pursuant to Section 5.02) 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 first, to Uncertificated Accrued Interest payable to 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% and 2%, respectively, and thereafter among REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC
Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7, REMIC II Regular Interest M-8 and REMIC II Regular Interest ZZ, pro rata, based on, and to the extent of, one month’s interest at the then applicable respective Uncertificated REMIC II Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC II Regular Interest.

(c)        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 Master Servicer pursuant to Section 5.02) 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 to Uncertificated Accrued Interest payable to REMIC II Regular Interest 1A, REMIC II Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II Regular Interest 3B, REMIC II Regular Interest 4A, REMIC II Regular Interest 4B and REMIC II Regular Interest XX, pro rata, based on, and to the extent of, one month’s interest at the then applicable respective Uncertificated
REMIC II Pass-Through Rates on the respective Uncertificated Principal Balances of each such REMIC II Regular Interest.

 

 

 

ARTICLE II

 

CONVEYANCE OF TRUST FUND

REPRESENTATIONS AND WARRANTIES

	
            Section 2.01
 	
            Conveyance of Trust Fund.  
 

Pursuant to the Mortgage Loan Purchase Agreement, the Seller sold, transferred, assigned, set over and otherwise conveyed to the Depositor, without recourse, all the right, title and interest of the Seller in and to the assets in the Trust Fund.

The Seller has entered into this Agreement in consideration for the purchase of the Mortgage Loans by the Depositor pursuant to the Mortgage Loan Purchase Agreement and has agreed to take the actions specified herein.

The Depositor, concurrently with the execution and delivery hereof, hereby sells, transfers, assigns, sets over and otherwise conveys to the Trustee for the use and benefit of the Certificateholders, without recourse, all the right, title and interest of the Depositor in and to the Trust Fund. 

In connection with such sale, the Depositor has delivered to, and deposited with, the Trustee or the Custodian, as its agent, the following documents or instruments with respect to each Mortgage Loan so assigned:  (i) the original Mortgage Note, including any riders thereto, endorsed without recourse (A) to the order of “LaSalle Bank National Association, as Trustee for Certificateholders of Bear Stearns Asset Backed Securities I LLC Asset-Backed Certificates, Series 2005-HE4,” or (B) in the case of a loan registered on the MERS system, in blank, and in each case showing an unbroken chain of endorsements from the original payee thereof to the Person endorsing it to the Trustee, (ii) the original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the presence of the MIN and language indicating that such Mortgage Loan is a MOM Loan, which shall have been recorded
(or if the original is not available, a copy), with evidence of such recording indicated thereon (or if clause (x) in the proviso below applies, shall be in recordable form), (iii) unless the Mortgage Loan is a MOM Loan, the assignment (either an original or a copy, which may be in the form of a blanket assignment if permitted in the jurisdiction in which the Mortgaged Property is located) to the Trustee of the Mortgage with respect to each Mortgage Loan in the name of “LaSalle Bank National Association, as Trustee for Certificateholders of Bear Stearns Asset Backed Securities I LLC Asset-Backed Certificates, Series 2005-HE4,” which shall have been recorded (or if clause (x) in the proviso below applies, shall be in recordable form), (iv) an original or a copy of all intervening assignments of the Mortgage, if any, with evidence of recording thereon, (v) the original policy of title insurance or mortgagee’s certificate of title insurance or commitment or binder for
title insurance, if available, or a copy thereof, or, in the event that such original title insurance policy is unavailable, a photocopy thereof, or in lieu thereof, a current lien search on the related Mortgaged Property and (vi) originals or copies of all available assumption, modification or substitution agreements, if any; provided, however, that in lieu of the foregoing, the Seller may deliver the following documents, under the circumstances set forth below:  (x) if any Mortgage, assignment thereof to the Trustee or intervening assignments thereof have been delivered or are being delivered to recording offices for recording and have not been returned in time to permit their delivery as 

 

 

specified above, the Depositor may deliver a true copy thereof with a certification by the Seller or the title company issuing the commitment for title insurance, on the face of such copy, substantially as follows:  “Certified to be a true and correct copy of the original, which has been transmitted for recording” and (y) in lieu of the Mortgage Notes relating to the Mortgage Loans identified in the list set forth in Exhibit I, the Depositor may deliver a lost note affidavit and indemnity and a copy of the original note, if available; and provided, further, however, that in the case of Mortgage Loans which have been prepaid in full after the Cut-Off Date and prior to the Closing Date, the Depositor, in lieu of delivering the above documents, may deliver to the Trustee and the Custodian a certification of a Servicing Officer to such effect and in such case shall deposit all amounts paid in respect
of such Mortgage Loans, in the Protected Account or in the Distribution Account on the Closing Date. In the case of the documents referred to in clause (x) above, the Depositor shall deliver such documents to the Trustee or the Custodian promptly after they are received. 

The Seller shall cause, at its expense, the Mortgage and intervening assignments, if any, and to the extent required in accordance with the foregoing, the assignment of the Mortgage to the Trustee to be submitted for recording promptly after the Closing Date; provided that, the Seller need not cause to be recorded (a) any assignment in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel addressed to the Trustee delivered by the Seller to the Trustee and the Rating Agencies, the recordation of such assignment is not necessary to protect the Trustee’s interest in the related Mortgage Loan or (b) if MERS is identified on the Mortgage or on a properly recorded assignment of the Mortgage as the mortgagee of record solely as nominee for Seller and its successors and assigns. In the event that the Seller, the Depositor or the Master Servicer gives written notice
to the Trustee that a court has recharacterized the sale of the Mortgage Loans as a financing, the Seller shall submit or cause to be submitted for recording as specified above each such previously unrecorded assignment to be submitted for recording as specified above at the expense of the Trust. In the event a Mortgage File is released to the Master Servicer as a result of such Person having completed a Request for Release, the Custodian shall, if not so completed, complete the assignment of the related Mortgage in the manner specified in clause (iii) above.

In connection with the assignment of any Mortgage Loan registered on the MERS® System, the Seller further agrees that it will cause, at the Seller’s own expense, within 30 days after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been assigned by the Seller to the Depositor and by the Depositor to the Trustee in accordance with this Agreement for the benefit of the Certificateholders by including (or deleting, in the case of Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files (a) the code in the field which identifies the specific Trustee and (b) the code in the field “Pool Field” which identifies the series of the Certificates issued in connection with such Mortgage Loans. The Seller further agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees
that it will not, alter the codes referenced in this paragraph with respect to any Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance with the terms of this Agreement or the Mortgage Loan Purchase Agreement.

 

 

 

	
            Section 2.02
 	
            Acceptance of the Mortgage Loans.  
 

(a)        Based on the Initial Certification received by it from the Custodian, the Trustee acknowledges receipt of, subject to the further review and exceptions reported by the Custodian pursuant to the procedures described below, the documents (or certified copies thereof) delivered to the Trustee or the Custodian on its behalf pursuant to Section 2.01 and declares that it holds and will continue to hold directly or through a custodian those documents and any amendments, replacements or supplements thereto and all other assets of the Trust Fund delivered to it in trust for the use and benefit of all present and future Holders of the Certificates.  On the Closing Date, the Trustee or the Custodian on its behalf will deliver an Initial Certification, in the form of Exhibit One to the Custodial Agreement, confirming whether or not it has received
the Mortgage File for each Mortgage Loan, but without review of such Mortgage File, except to the extent necessary to confirm whether such Mortgage File contains the original Mortgage Note or a lost note affidavit and indemnity in lieu thereof. No later than 90 days after the Closing Date, the Trustee or the Custodian on its behalf shall, for the benefit of the Certificateholders, review each Mortgage File delivered to it and execute and deliver to the Seller and the Master Servicer and, if reviewed by the Custodian or the Trustee, an Interim Certifications, substantially in the form of Exhibit Two to the Custodial Agreement. In conducting such review, the Trustee or the Custodian on its behalf will ascertain whether all required documents have been executed and received and whether those documents relate, determined on the basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans identified in Exhibit B to this Agreement, as supplemented
(provided, however, that with respect to those documents described in subclauses (iv) and (vi) of Section 2.01, such obligations shall extend only to documents actually delivered pursuant to such subclauses).  In performing any such review, the Trustee and the Custodian may conclusively rely on the purported due execution and genuineness of any such document and on the purported genuineness of any signature thereon. If the Trustee or the Custodian on its behalf finds any document constituting part of the Mortgage File not to have been executed or received, or to be unrelated to the Mortgage Loans identified in Exhibit B or to appear to be defective on its face, the Trustee or the Custodian on its behalf shall include such information in the exception report attached to the Interim Certification. The Seller shall correct or cure any such defect or, if prior to the end of the second anniversary of the Closing Date, the Seller may substitute for the related Mortgage Loan a Replacement
Mortgage Loan, which substitution shall be accomplished in the manner and subject to the conditions set forth in Section 2.03 or shall deliver to the Trustee an Opinion of Counsel addressed to the Trustee to the effect that such defect does not materially or adversely affect the interests of the Certificateholders in such Mortgage Loan within 60 days from the date of notice from the Trustee of the defect and if the Seller fails to correct or cure the defect or deliver such opinion within such period, the Seller will, subject to Section 2.03, within 90 days from the notification of the Trustee purchase such Mortgage Loan at the Purchase Price; provided, however, that if such defect relates solely to the inability of the Seller to deliver the Mortgage, assignment thereof to the Trustee, or intervening assignments thereof with evidence of recording thereon because such documents have been submitted for recording and have not been returned by the applicable jurisdiction, the Seller shall
not be required to purchase such Mortgage Loan if the Seller delivers such documents promptly upon receipt, but in no event later than 360 days after the Closing Date.

 

 

(b)        No later than 180 days after the Closing Date, the Trustee or the Custodian on its behalf will review, for the benefit of the Certificateholders, the Mortgage Files and will execute and deliver or cause to be executed and delivered to the Seller and the Master Servicer and, if reviewed by the Custodian or the Trustee, a Final Certification, substantially in the form of Exhibit Three to the Custodial Agreement. In conducting such review, the Trustee or the Custodian on its behalf will ascertain whether each document required to be recorded has been returned from the recording office with evidence of recording thereon and the Trustee or the Custodian on its behalf has received either an original or a copy thereof, as required in Section 2.01 (provided, however, that with respect to those documents described in subclauses (iv) and (vi) of
Section 2.01, such obligations shall extend only to documents actually delivered pursuant to such subclauses). If the Trustee or the Custodian on its behalf finds any document with respect to a Mortgage Loan has not been received, or to be unrelated, determined on the basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans identified in Exhibit B or to appear defective on its face, the Trustee or the Custodian on its behalf shall note such defect in the exception report attached to the Final Certification and shall promptly notify the Seller. The Seller shall correct or cure any such defect or, if prior to the end of the second anniversary of the Closing Date, the Seller may substitute for the related Mortgage Loan a Replacement Mortgage Loan, which substitution shall be accomplished in the manner and subject to the conditions set forth in Section 2.03 or shall deliver to the Trustee an Opinion of Counsel addressed to the Trustee to the effect
that such defect does not materially or adversely affect the interests of Certificateholders in such Mortgage Loan within 60 days from the date of notice from the Trustee of the defect and if the Seller is unable within such period to correct or cure such defect, or to substitute the related Mortgage Loan with a Replacement Mortgage Loan or to deliver such opinion, the Seller shall, subject to Section 2.03, within 90 days from the notification of the Trustee, purchase such Mortgage Loan at the Purchase Price; provided, however, that if such defect relates solely to the inability of the Seller to deliver the Mortgage, assignment thereof to the Trustee or intervening assignments thereof with evidence of recording thereon, because such documents have not been returned by the applicable jurisdiction, the Seller shall not be required to purchase such Mortgage Loan, if the Seller delivers such documents promptly upon receipt, but in no event later than 360 days after the Closing Date.
Notwithstanding anything to the contrary, the Trustee shall have no responsibility with respect to the custody or review of Mortgage Files held by the Custodian pursuant to the Custodial Agreement.  The Trustee shall have no liability for the failure of the Custodian to perform its obligations under the Custodial Agreement.

(c)        In the event that a Mortgage Loan is purchased by the Seller in accordance with subsections 2.02(a) or (b) above or Section 2.03, the Seller shall remit the applicable Purchase Price to the Master Servicer for deposit in the Protected Account and shall provide written notice to the Trustee detailing the components of the Purchase Price, signed by a Servicing Officer. Upon deposit of the Purchase Price in the Protected Account and upon receipt of a Request for Release with respect to such Mortgage Loan, the Trustee or the Custodian will release to the Seller the related Mortgage File and the Trustee shall execute and deliver all instruments of transfer or assignment, without recourse, representation or warranty furnished to it by the Seller, as are necessary to vest in the Seller title to and rights under the Mortgage Loan. Such purchase
shall be deemed to have occurred on the date on which the deposit into the Protected Account was made. The Trustee shall promptly notify the Rating Agencies of such repurchase. The obligation of the Seller to cure, repurchase or substitute for any Mortgage Loan as to which a 

 

 

defect in a constituent document exists shall be the sole remedies respecting such defect available to the Certificateholders or to the Trustee on their behalf.

(d)        The Seller shall deliver to the Trustee or the Custodian on its behalf, and Trustee agrees to accept the Mortgage Note and other documents constituting the Mortgage File with respect to any Replacement Mortgage Loan, which the Trustee or the Custodian will review as provided in subsections 2.02(a) and 2.02(b), provided that, the Closing Date referred to therein shall instead be the date of delivery of the Mortgage File with respect to each Replacement Mortgage Loan.

Section 2.03     Representations, Warranties and Covenants of the Master Servicer and the Seller.  

(a)        The Master Servicer hereby represents and warrants to the Depositor and the Trustee as follows, as of the Closing Date:

(i)               It is duly organized and is validly existing and in good standing 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 it 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, to service the Mortgage Loans in accordance with the terms of the Mortgage Loan Purchase Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof or thereof.

(ii)               It has the full corporate power and authority to service each Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary corporate action on its part the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto or thereto, as applicable, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except that (a) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(iii)              The execution and delivery of this Agreement, the servicing of the Mortgage Loans by it under this Agreement, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in its ordinary course of business and will not (A) result in a breach of any term or provision of its charter or by-laws 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 it is a party or by which it may be bound, or (C) constitute a violation of any statute, order or regulation applicable to it of any court, 

 

 

regulatory body, administrative agency or governmental body having jurisdiction over it; and it is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair its ability to perform or meet any of its obligations under this Agreement.

(iv)              It is an approved servicer of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act.

(v)              No litigation is pending or, to the best of its knowledge, threatened, against it that would materially and adversely affect the execution, delivery or enforceability of this Agreement or its ability to service the Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(vi)              No consent, approval, authorization or order of any court or governmental agency or body is required for its execution, delivery and performance of, or compliance with, this Agreement or the consummation of the transactions contemplated hereby or thereby, or if any such consent, approval, authorization or order is required, it has obtained the same.

(vii)             The Master Servicer will transmit full-file credit reporting data for each Group II Loan pursuant to the Fannie Mae Selling Guide and that for each Mortgage Loan, the Master Servicer agrees it shall report one of the following statuses each month as follows: new origination, current, delinquent (30-, 60-, 90-days, etc.) or foreclosed.

(viii)            The Master Servicer has and will fully furnish for each Group III Loan, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis.

(b)        The Seller hereby represents and warrants to the Depositor and the Trustee as follows, as of the Closing Date:

(i)               The Seller is duly organized as a Delaware corporation and is validly existing and in good standing 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 Seller 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, to sell the Mortgage Loans in accordance with the terms of the Mortgage Loan Purchase Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

 

 

(ii)               The Seller has the full corporate power and authority to sell each Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary corporate action on the part of the Seller the execution, delivery and performance of this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto or thereto, as applicable, constitutes a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except that (a) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of
specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(iii)              The execution and delivery of this Agreement by the Seller, the sale of the Mortgage Loans by the Seller under the Mortgage Loan Purchase Agreement, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in the ordinary course of business of the Seller and will not (A) result in a material breach of any term or provision of the charter or by-laws of the Seller 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 Seller is a party or by which it may be bound, or (C) constitute a violation of any statute, order or regulation applicable to the Seller of any court,
regulatory body, administrative agency or governmental body having jurisdiction over the Seller; and the Seller is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Seller’s ability to perform or meet any of its obligations under this Agreement.

(iv)              The Seller is an approved seller of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act.

(v)              No litigation is pending or, to the best of the Seller’s knowledge, threatened, against the Seller that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Seller to sell the Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms hereof or thereof.

(vi)              No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Seller of, or compliance by the Seller with, this Agreement or the consummation of the transactions contemplated hereby, or if any such consent, approval, authorization or order is required, the Seller has obtained the same.

(vii)             With respect to each Mortgage Loan as of the Closing Date (or such other date as may be specified in Section 7 of the Mortgage Loan Purchase Agreement), 

 

 

the Seller hereby remakes and restates each of the representations and warranties set forth in Section 7 of the Mortgage Loan Purchase Agreement to the Depositor and the Trustee to the same extent as if fully set forth herein.

(c)        Upon discovery by any of the parties hereto of a breach of a representation or warranty set forth in the Mortgage Loan Purchase Agreement with respect to the Mortgage Loans that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party discovering such breach shall give prompt written notice thereof to the other parties. Any breach of a representation or warranty contained in clauses (gg), (hh) and (tt) through (ww) of Section 7 of the Mortgage Loan Purchase Agreement in respect of a Group III Loan, shall be deemed to materially adversely affect the interests of the related Certificateholders. The Seller hereby covenants (pursuant to the Mortgage Loan Purchase Agreement), with respect to the representations and warranties set forth in the Mortgage Loan Purchase Agreement with respect to the
Mortgage Loans, that within 90 days of the discovery of a breach of any representation or warranty set forth therein that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, it shall cure such breach in all material respects and, if such breach is not so cured, (i) if such 90 day period expires prior to the second anniversary of the Closing Date, remove such Mortgage Loan (a “Deleted Mortgage Loan”) from the Trust Fund and substitute in its place a Replacement Mortgage Loan, in the manner and subject to the conditions set forth in this Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner set forth below; provided that any such substitution pursuant to (i) above or repurchase pursuant to (ii) above shall not be effected prior to the delivery to the Trustee of an Opinion of Counsel if required by Section 2.05 hereof and any such substitution pursuant to (i) above
shall not be effected prior to the additional delivery to the Trustee of a Request for Release. The Trustee shall give prompt written notice to the parties hereto of the Seller’s failure to cure such breach as set forth in the preceding sentence.  The Seller (pursuant to the Mortgage Loan Purchase Agreement) shall promptly reimburse the Master Servicer and the Trustee for any expenses reasonably incurred by the Master Servicer or the Trustee in respect of enforcing the remedies for such breach. To enable the Master Servicer to amend the Mortgage Loan Schedule, the Seller (pursuant to the Mortgage Loan Purchase Agreement) shall, unless it cures such breach in a timely fashion pursuant to this Section 2.03, promptly notify the Master Servicer whether it intends either to repurchase, or to substitute for, the Mortgage Loan affected by such breach. With respect to the representations and warranties with respect to the Mortgage Loans that are made to the best of the Seller’s
knowledge, if it is discovered by any of the Depositor, the Master Servicer, the Seller, the Trustee or the Custodian that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan, notwithstanding the Seller’s lack of knowledge with respect to the substance of such representation or warranty, the Seller shall nevertheless be required to cure, substitute for or repurchase the affected Mortgage Loan in accordance with the foregoing.

With respect to any Replacement Mortgage Loan or Loans, the Seller (pursuant to the Mortgage Loan Purchase Agreement) shall deliver to the Trustee or the Custodian on its behalf for the benefit of the Certificateholders such documents and agreements as are required by Section 2.01. No substitution will be made in any calendar month after the Determination Date for such month. Scheduled Payments due with respect to Replacement Mortgage Loans in the Due Period related to the Distribution Date on which such proceeds are to be distributed shall not 

 

 

be part of the Trust Fund and will be retained by the Seller. For the month of substitution, distributions to Certificateholders will include the Scheduled Payment due on any Deleted Mortgage Loan for the related Due Period and thereafter the Seller shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan. The Master Servicer shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted Mortgage Loan and the substitution of the Replacement Mortgage Loan or Loans and the Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee and the Custodian. Upon such substitution, the Replacement Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects, and the Seller shall be deemed to have made with respect to such Replacement Mortgage Loan or Loans, as of the date of
substitution, the representations and warranties set forth in Section 7 or Section 8 of the Mortgage Loan Purchase Agreement with respect to such Mortgage Loan. Upon any such substitution and the deposit into the Protected Account of the amount required to be deposited therein in connection with such substitution as described in the following paragraph and receipt by the Trustee of a Request for Release for such Mortgage Loan, the Trustee or the Custodian shall release to the Seller the Mortgage File relating to such Deleted Mortgage Loan and held for the benefit of the Certificateholders and the Trustee shall execute and deliver at the Seller’s direction such instruments of transfer or assignment as have been prepared by the Seller, without recourse, representation or warranty as shall be necessary to vest in the Seller, or its respective designee, title to the Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

For any month in which the Seller substitutes one or more Replacement Mortgage Loans for a Deleted Mortgage Loan, the Master Servicer will determine the amount (if any) by which the aggregate principal balance of all the Replacement Mortgage Loans as of the date of substitution is less than the Stated Principal Balance (after application of the principal portion of the Scheduled Payment due in the month of substitution) of such Deleted Mortgage Loan. An amount equal to the aggregate of such deficiencies, described in the preceding sentence for any Distribution Date (such amount, the “Substitution Adjustment Amount”) shall be deposited into the Protected Account, by the Seller delivering such Replacement Mortgage Loan on the Determination Date for the Distribution Date relating to the Prepayment Period during which the related Mortgage Loan became required to be purchased or
replaced hereunder.

In the event that the Seller shall have repurchased a Mortgage Loan, the Purchase Price therefor shall be deposited into the Protected Account, on the Determination Date for the Distribution Date in the month following the month during which the Seller became obligated to repurchase or replace such Mortgage Loan and upon such deposit of the Purchase Price, the delivery of an Opinion of Counsel if required by Section 2.05 and the receipt of a Request for Release, the Trustee or the Custodian shall release the related Mortgage File held for the benefit of the Certificateholders to the Seller and the Trustee shall execute and deliver at such Person’s direction the related instruments of transfer or assignment prepared by the Seller, without recourse, as shall be necessary to transfer title from the Trustee for the benefit of the Certificateholders and transfer the Trustee’s
interest to the Seller to any Mortgage Loan purchased pursuant to this Section 2.03. It is understood and agreed that the obligation under this Agreement of the Seller to cure, repurchase or replace any Mortgage Loan as to which a breach has occurred and is continuing shall constitute the sole remedies against the Seller respecting such breach available to the Certificateholders, the Depositor or the Trustee.

 

 

(d)        The representations and warranties set forth in this Section 2.03 hereof shall survive delivery of the respective Mortgage Loans and Mortgage Files to the Trustee or the Custodian for the benefit of the Certificateholders.

	
            Section 2.04
 	
            Representations and Warranties of the Depositor.  
 

The Depositor hereby represents and warrants to the Master Servicer and the Trustee as follows, as of the date hereof and as of the Closing Date:

(i)         The Depositor is duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware and has full power and authority necessary to own or hold its properties and to conduct its business as now conducted by it and to enter into and perform its obligations under this Agreement.

(ii)         The Depositor has the full power and authority to execute, deliver and perform, and to enter into and consummate the transactions contemplated by, this Agreement and has duly authorized, by all necessary corporate action on its part, the execution, delivery and performance of this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms, subject, as to enforceability, to (i) bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights generally and (ii) general principles of equity, regardless of whether enforcement is sought in a proceeding in equity or at law.

(iii)        The execution and delivery of this Agreement by the Depositor, the consummation of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in the ordinary course of business of the Depositor and will not (A) result in a material breach of any term or provision of the certificate of formation or limited liability company agreement of the Depositor 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 Depositor is a party or by which it may be bound or (C) constitute a violation of any statute, order or regulation applicable to the Depositor of any court, regulatory body, administrative agency or governmental body having jurisdiction
over the Depositor; and the Depositor is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Depositor’s ability to perform or meet any of its obligations under this Agreement.

(iv)        No litigation is pending, or, to the best of the Depositor’s knowledge, threatened, against the Depositor that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Depositor to perform its obligations under this Agreement in accordance with the terms hereof or thereof.

 

 

(v)        No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Depositor of, or compliance by the Depositor with this Agreement or the consummation of the transactions contemplated hereby or thereby, or if any such consent, approval, authorization or order is required, the Depositor has obtained the same.

The Depositor hereby represents and warrants to the Trustee as of the Closing Date, following the transfer of the Mortgage Loans to it by the Seller, the Depositor had good title to the Mortgage Loans and the related Mortgage Notes were subject to no offsets, claims, defenses or counterclaims.

It is understood and agreed that the representations and warranties set forth in this Section 2.04 shall survive delivery of the Mortgage Files to the Trustee or the Custodian for the benefit of the Certificateholders.  Upon discovery by the Depositor or the Trustee of a breach of such representations and warranties, the party discovering such breach shall give prompt written notice to the others and to each Rating Agency.

Section 2.05     Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases.  

(a)        Notwithstanding any contrary provision of this Agreement, with respect to any Mortgage Loan that is not in default or as to which default is not imminent, no repurchase or substitution pursuant to Sections 2.02 or 2.03 shall be made unless the Seller delivers to the Trustee an Opinion of Counsel, addressed to the Trustee, to the effect that such repurchase or substitution would not (i) result in the imposition of the tax on “prohibited transactions” of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI or contributions after the Closing Date, as defined in sections 860F(a)(2) and 860G(d) of the Code, respectively, or (ii) cause any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any Certificates are outstanding. Any Mortgage Loan as to which repurchase or
substitution was delayed pursuant to this paragraph shall be repurchased or the substitution therefor shall occur (subject to compliance with Sections 2.02 or 2.03) upon the earlier of (a) the occurrence of a default or imminent default with respect to such Mortgage Loan and (b) receipt by the Trustee of an Opinion of Counsel addressed to the Trustee to the effect that such repurchase or substitution, as applicable, will not result in the events described in clause (i) or clause (ii) of the preceding sentence.

(b)        Upon discovery by the Depositor, the Seller or the Master Servicer 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 promptly (and in any event within 5 Business Days of discovery) give written notice thereof to the other parties and the Trustee. In connection therewith, the Trustee shall require the Seller, at the Seller’s option, to either (i) substitute, if the conditions in Section 2.03 with respect to substitutions are satisfied, a Replacement Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within 90 days of such discovery in the same manner as it would a Mortgage Loan for a breach of representation or warranty in accordance with Section 2.03. The Trustee shall
reconvey to the Seller the Mortgage Loan to be released pursuant hereto (and the Custodian shall deliver the related Mortgage File) 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 in accordance with Section 2.03.

	
            Section 2.06
 	
            Countersignature and Delivery of Certificates.  
 

(a)        The Trustee acknowledges the sale, transfer and assignment to it of the Trust Fund and, concurrently with such transfer and assignment, has executed, countersigned and delivered, to or upon the order of the Depositor, the Certificates in authorized denominations evidencing the entire ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights referred to above for the benefit of all present and future Holders of the Certificates and to perform the duties set forth in this Agreement in accordance with its terms.

(b)        The Depositor concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the REMIC I Regular Interests, and the other assets of REMIC II for the benefit of the Holders of the REMIC II Regular Interests and the Class R-2 Certificates. The Trustee acknowledges receipt of the REMIC I Regular Interests (which are uncertificated) and the other assets of REMIC II and declares that it holds and will hold the same in trust for the exclusive use and benefit of the Holders of the REMIC II Regular Interests and the Class R-2 Certificates.

(c)        The Depositor concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the REMIC II Regular Interests, and the other assets of REMIC III for the benefit of the Holders of the REMIC III Regular Interests and the Class R-3 Certificates. The Trustee acknowledges receipt of the REMIC II Regular Interests (which are uncertificated) and the other assets of REMIC III and declares that it holds and will hold the same in trust for the exclusive use and benefit of the Holders of the REMIC III Regular Interests and the Class R-3 Certificates.

(d)        The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the Class CE Interest for the benefit of the Holders of the REMIC IV Certificates. The Trustee acknowledges receipt of the Class CE Interest (which is uncertificated) and declares that it holds and will hold the same in trust for the exclusive use and benefit of the Holders of the REMIC IV Certificates.

(e)        The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the Class P Interest for the benefit of the Holders of the REMIC V Certificates. The Trustee acknowledges receipt of the Class P Interest (which is uncertificated) and declares that it holds and will hold the same in trust for the exclusive use and benefit of the Holders of the REMIC V Certificates.

(f)         The Depositor, concurrently with the execution and delivery hereof, does hereby transfer, assign, set over and otherwise convey in trust to the Trustee without recourse all the right, title and interest of the Depositor in and to the Class IO Interest for the benefit of the 

 

 

Holders of the REMIC VI Interests. The Trustee acknowledges receipt of the Class IO Interest (which is uncertificated) and declares that it holds and will hold the same in trust for the exclusive use and benefit of the Holders of the REMIC VI Interests.

 

 

 

ARTICLE III

 

ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

	
            Section 3.01
 	
            The Master Servicer to act as Master Servicer.  
 

The Master Servicer shall service and administer the Mortgage Loans in accordance with customary and usual standards of practice of prudent mortgage loan servicers in the respective states in which the related Mortgaged Properties are located. In connection with such servicing and administration, the Master Servicer shall have full power and authority, acting alone and/or through subservicers as provided in Section 3.03, to do or cause to be done any and all things that it may deem necessary or desirable in connection with such servicing and administration, including but not limited to, the power and authority, subject to the terms hereof (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 related Mortgaged Property and assumptions of the Mortgage Notes and
related Mortgages (but only in the manner provided herein), (iii) to collect any Insurance Proceeds and other Liquidation Proceeds or Subsequent Recoveries, and (iv) subject to Section 3.09, to effectuate foreclosure or other conversion of the ownership of the Mortgaged Property securing any Mortgage Loan; provided that the Master Servicer shall take no action that is inconsistent with or prejudices the interests of the Trust Fund or the Certificateholders in any Mortgage Loan or the rights and interests of the Depositor or the Trustee under this Agreement.

Without limiting the generality of the foregoing, the Master Servicer, in its own name or in the name of the Trust, the Depositor or the Trustee, is hereby authorized and empowered by the Trust, the Depositor and the Trustee, when the Master Servicer believes it appropriate in its reasonable judgment, to execute and deliver, on behalf of the Trustee, the Depositor, the Certificateholders or any of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders. The Master Servicer shall prepare and deliver to the Depositor and/or the Trustee such documents requiring execution and delivery by any or all of them as are necessary or appropriate to enable the Master Servicer to service
and administer the Mortgage Loans. Upon receipt of such documents, the Depositor and/or the Trustee shall execute such documents and deliver them to the Master Servicer.

In accordance with the standards of the first paragraph of this Section 3.01, the Master Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the payment of taxes and assessments on the Mortgaged Properties, which advances shall be reimbursable in the first instance from related collections from the Mortgagors pursuant to Section 5.03, and further as provided in Section 5.02. All costs incurred by the Master Servicer, if any, in effecting the timely payments of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the Stated Principal Balance under the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.

 

 

 

	
            Section 3.02
 	
            Due-on-Sale Clauses; Assumption Agreements.  
 

(a)        Except as otherwise provided in this Section 3.02, when any property subject to a Mortgage has been or is about to be conveyed by the Mortgagor, the Master Servicer shall to the extent that it has knowledge of such conveyance, enforce any due-on-sale clause contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and governmental regulations, but only to the extent that such enforcement will not adversely affect or jeopardize coverage under any Required Insurance Policy. Notwithstanding the foregoing, the Master Servicer is not required to exercise such rights with respect to a Mortgage Loan if the Person to whom the related Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the terms and conditions contained in the Mortgage Note and Mortgage related thereto and the consent of the
mortgagee under such Mortgage Note or Mortgage is not otherwise so required under such Mortgage Note or Mortgage as a condition to such transfer. In the event that the Master Servicer is prohibited by law from enforcing any such due-on-sale clause, or if coverage under any Required Insurance Policy would be adversely affected, or if nonenforcement is otherwise permitted hereunder, the Master Servicer is authorized, subject to Section 3.02(b), to take or enter into an assumption and modification agreement from or with the person to whom such property has been or is about to be conveyed, pursuant to which such person becomes liable under the Mortgage Note and, unless prohibited by applicable state law, the Mortgagor remains liable thereon, provided that the Mortgage Loan shall continue to be covered (if so covered before the Master Servicer enters such agreement) by the applicable Required Insurance Policies. The Master Servicer, subject to Section 3.02(b), is also authorized with the
prior approval of the insurers under any Required Insurance Policies 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 Mortgagor and becomes liable under the Mortgage Note.  Notwithstanding the foregoing, the Master Servicer shall not be deemed to be in default under this Section 3.02(a) by reason of any transfer or assumption that the Master Servicer reasonably believes it is restricted by law from preventing.

(b)        Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set forth in Section 3.02(a), in any case in which a Mortgaged Property has been conveyed to a Person by a Mortgagor, and such Person is to enter into an assumption agreement or modification agreement or supplement to the Mortgage Note or Mortgage that requires the signature of the Trustee, or if an instrument of release signed by the Trustee is required releasing the Mortgagor from liability on the related Mortgage Loan, the Master Servicer shall prepare and deliver or cause to be prepared and delivered to the Trustee for signature and shall direct, in writing, the Trustee to execute the assumption agreement with the Person to whom the Mortgaged Property is to be conveyed and such modification agreement or supplement to the Mortgage Note or
Mortgage or other instruments as are reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to such Person. In connection with any such assumption, no material term of the Mortgage Note (including, but not limited to, the Mortgage Rate, the amount of the Scheduled Payment and any other term affecting the amount or timing of payment on the Mortgage Loan) may be changed. In addition, the substitute Mortgagor and the Mortgaged Property must be acceptable to the Master Servicer in accordance with its servicing standards as then in effect. The Master Servicer shall notify the Trustee that any such substitution or assumption agreement has been completed by forwarding to the Trustee 

 

 

the original of such substitution or assumption agreement, which in the case of the original 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. Any fee collected by the Master Servicer for entering into an assumption or substitution of liability agreement will be retained by the Master Servicer as additional servicing compensation.

	
            Section 3.03
 	
            Subservicers.  
 

The Master Servicer shall perform all of its servicing responsibilities hereunder or may cause a subservicer to perform any such servicing responsibilities on its behalf, but the use by the Master Servicer of a subservicer shall not release the Master Servicer from any of its obligations hereunder and the Master Servicer shall remain responsible hereunder for all acts and omissions of each subservicer as fully as if such acts and omissions were those of the Master Servicer. The Master Servicer shall pay all fees of each subservicer from its own funds, and a subservicer’s fee shall not exceed the Servicing Fee payable to the Master Servicer hereunder.

At the cost and expense of the Master Servicer, without any right of reimbursement from its Protected Account, the Master Servicer shall be entitled to terminate the rights and responsibilities of a subservicer and arrange for any servicing responsibilities to be performed by a successor subservicer; provided, however, that nothing contained herein shall be deemed to prevent or prohibit the Master Servicer, at the Master Servicer’s option, from electing to service the related Mortgage Loans itself. In the event that the Master Servicer’s responsibilities and duties under this Agreement are terminated pursuant to Section 8.03, the Master Servicer shall at its own cost and expense terminate the rights and responsibilities of each subservicer effective as of the date of termination of the Master Servicer. The Master Servicer shall pay all fees, expenses or penalties necessary in
order to terminate the rights and responsibilities of each subservicer from the Master Servicer’s own funds without reimbursement from the Trust Fund.

Notwithstanding the foregoing, the Master Servicer shall not be relieved of its obligations hereunder and shall be obligated to the same extent and under the same terms and conditions as if it alone were servicing and administering the Mortgage Loans. The Master Servicer shall be entitled to enter into an agreement with a subservicer for indemnification of the Master Servicer by the subservicer and nothing contained in this Agreement shall be deemed to limit or modify such indemnification.

Any subservicing agreement and any other transactions or services relating to the Mortgage Loans involving a subservicer shall be deemed to be between such subservicer and the Master Servicer alone, and the Trustee shall not have any obligations, duties or liabilities with respect to such subservicer including any obligation, duty or liability of the Trustee to pay such subservicer’s fees and expenses. Each subservicing agreement shall provide that such agreement may be assumed or terminated without cause or penalty by the Trustee or other Successor Master Servicer in the event the Master Servicer is terminated in accordance with this Agreement.  For purposes of remittances to the Trustee pursuant to this Agreement, the Master Servicer shall be deemed to have received a payment on a Mortgage Loan when a subservicer has received such payment.

 

 

Section 3.04     Documents, Records and Funds in Possession of the Master Servicer To Be Held for Trustee.  

Notwithstanding any other provisions of this Agreement, the Master Servicer shall transmit to the Trustee or the Custodian on behalf of the Trustee as required by this Agreement all documents and instruments in respect of a Mortgage Loan coming into the possession of the Master Servicer from time to time and shall account fully to the Trustee for any funds received by the Master Servicer or that otherwise are collected by the Master Servicer as Liquidation Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any such Mortgage Loan.  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 Subsequent Recoveries, including but not limited to, any funds on deposit in the Protected Account, shall be held by the
Master Servicer for and on behalf of the Trustee and shall be and remain the sole and exclusive property of the Trustee, subject to the applicable provisions of this Agreement. The Master Servicer also agrees that it shall not create, incur or subject any Mortgage File or any funds that are deposited in the Protected Account or in any Escrow Account, or any funds that otherwise are or may become due or payable to the Trustee for the benefit of the Certificateholders, to any claim, lien, security interest, judgment, levy, writ of attachment or other encumbrance, or assert by legal action or otherwise any claim or right of set off against any Mortgage File or any funds collected on, or in connection with, a Mortgage Loan, except, however, that the Master Servicer shall be entitled to set off against and deduct from any such funds any amounts that are properly due and payable to the Master Servicer under this Agreement.

	
            Section 3.05
 	
            Maintenance of Hazard Insurance.  
 

The Master Servicer shall cause to be maintained, for each Mortgage Loan, hazard insurance on buildings upon, or comprising part of, the Mortgaged Property against loss by fire, hazards of extended coverage and such other hazards as are customary in the area where the related Mortgaged Property is located with an insurer which is licensed to do business in the state where the related Mortgaged Property is located. Each such policy of standard hazard insurance shall contain, or have an accompanying endorsement that contains, a standard mortgagee clause. The Master Servicer shall also cause flood insurance to be maintained on property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, to the extent described below.  Pursuant to Section 4.01, any amounts collected by the Master Servicer under any such policies (other than the amounts to be applied to the
restoration or repair of the related Mortgaged Property or property thus acquired or amounts released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures) shall be deposited in the Protected Account. Any cost incurred by the Master Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly distributions to the Certificateholders or remittances to the Trustee for their benefit, be added to the principal balance of the Mortgage Loan, notwithstanding that the terms of the Mortgage Loan so permit.  Such costs shall be recoverable by the Master Servicer out of late payments by the related Mortgagor or out of Liquidation Proceeds to the extent permitted by Section 4.02. It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor or maintained on property acquired in respect of a Mortgage 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 is located at the 

 

 

time of origination of the Mortgage Loan in a federally designated special flood hazard area and such area is participating in the national flood insurance program, the Master Servicer shall cause flood insurance to be maintained with respect to such Mortgage Loan. Such flood insurance shall be in an amount equal to the least of (i) the Stated Principal Balance of the related Mortgage Loan, (ii) minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the maximum amount of such insurance available for the related Mortgaged Property under the Flood Disaster Protection Act of 1973, as amended.

In the event that the Master Servicer shall obtain and maintain a blanket policy insuring against hazard losses on all of the Mortgage Loans, it shall conclusively be deemed to have satisfied its obligations as set forth in the first sentence of this Section 3.05, it being understood and agreed that such policy may contain a deductible clause on terms substantially equivalent to those commercially available and maintained by comparable servicers.  If such policy contains a deductible clause, the Master Servicer shall, in the event that there shall not have been maintained on the related Mortgaged Property a policy complying with the first sentence of this Section 3.05, and there shall have been a loss that would have been covered by such policy, deposit in the Protected Account the amount not otherwise payable under the blanket policy because of such deductible clause. Such deposit shall
be from the Master Servicer’s own funds without reimbursement therefor.  In connection with its activities as administrator and servicer of the Mortgage Loans, the Master Servicer agrees to present, on behalf of itself, the Depositor and the Trustee for the benefit of the Certificateholders claims under any such blanket policy.

	
            Section 3.06
 	
            Presentment of Claims and Collection of Proceeds.  
 

The Master Servicer shall prepare and present on behalf of the Trustee and the Certificateholders all claims under the 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 Insurance Policies. Any proceeds disbursed to the Master Servicer in respect of such Insurance Policies shall be promptly deposited in the Protected 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 3.07
 	
            Maintenance of the Primary Mortgage Insurance Policies.  
 

(a)        The Master Servicer shall not take any action that would result in noncoverage under any applicable Primary Mortgage Insurance Policy of any loss which, but for the actions of the Master Servicer would have been covered thereunder. The Master Servicer shall use its best efforts 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. The Master 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 Mortgage Note and is required to be kept in force hereunder.

(b)        The Master Servicer agrees to present on behalf of the Trustee, 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. Pursuant to Section 4.01, any amounts collected by the Master Servicer under any Primary Mortgage Insurance Policies shall be deposited in the Protected Account, subject to withdrawal pursuant to Section 4.02 hereof.

	
            Section 3.08
 	
            Fidelity Bond, Errors and Omissions Insurance.  
 

The Master Servicer shall maintain, at its own expense, a blanket fidelity bond and an errors and omissions insurance policy, with broad coverage with responsible companies on all officers, employees or other persons acting in any capacity with regard to the Mortgage Loans and who handle funds, money, documents and papers relating to the Mortgage Loans.  The fidelity bond and errors and omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond and shall protect and insure the Master Servicer against losses, including forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of such persons.  Such fidelity bond shall also protect and insure the Master Servicer against losses in connection with the failure to maintain any insurance policies required pursuant to this Agreement and the release or satisfaction of a Mortgage Loan which is not in
accordance with Accepted Servicing Practices.  No provision of this Section 3.08 requiring the fidelity bond and errors and omissions insurance shall diminish or relieve the Master Servicer from its duties and obligations as set forth in this Agreement.  The minimum coverage under any such bond and insurance policy shall be at least equal to the corresponding amounts required by Accepted Servicing Practices.  The Master Servicer shall deliver to the Trustee a certificate from the surety and the insurer as to the existence of the fidelity bond and errors and omissions insurance policy and shall obtain a statement from the surety and the insurer that such fidelity bond or insurance policy shall in no event be terminated or materially modified without thirty days prior written notice to the Trustee.  The Master Servicer shall notify the Trustee within five business days of receipt of notice that such fidelity bond or insurance policy will be, or has been, materially modified or
terminated.  The Trustee for the benefit of the Certificateholders must be named as loss payees on the fidelity bond and as additional insured on the errors and omissions policy.

Section 3.09     Realization Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds and Realized Losses; Repurchases of Certain Mortgage Loans.  

(a)        The Master Servicer shall use reasonable efforts 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. In connection with such foreclosure or other conversion, the Master Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities and the requirements of the insurer under any Required Insurance Policy; provided that the Master Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration and/or foreclosure will increase
the proceeds of liquidation of the Mortgage Loan after reimbursement to itself of such expenses and (ii) that such expenses will be recoverable to it through Insurance Proceeds, Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Protected Account pursuant to Section 4.02). If the Master Servicer 

 

 

reasonably believes that Liquidation Proceeds with respect to any such Mortgage Loan would not be increased as a result of such foreclosure or other action, such Mortgage Loan will be charged-off and will become a Liquidated Loan. The Master Servicer will give notice of any such charge-off to the Trustee.  The Master Servicer shall be responsible for all other costs and expenses incurred by it in any such proceedings; provided that such costs and expenses shall be Servicing Advances and that it shall be entitled to reimbursement thereof from the proceeds of liquidation of the related Mortgaged Property, as contemplated in Section 4.02. If the Master Servicer has knowledge that a Mortgaged Property that the Master Servicer is contemplating acquiring in foreclosure or by deed- in-lieu of foreclosure is located within a one-mile radius of any site with environmental or hazardous waste risks known to the
Master Servicer, the Master Servicer will, prior to acquiring the Mortgaged Property, consider such risks and only take action in accordance with its established environmental review procedures.

With respect to any REO Property, the deed or certificate of sale shall be taken in the name of the Trustee for the benefit of the Certificateholders (or the Trustee’s nominee on behalf of the Certificateholders). The Trustee’s name shall be placed on the title to such REO Property solely as the Trustee hereunder and not in its individual capacity. The Master Servicer shall ensure that the title to such REO Property references this Agreement and the Trustee’s capacity hereunder. Pursuant to its efforts to sell such REO Property, the Master Servicer shall either itself or through an agent selected by the Master Servicer protect and conserve such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to its conservation and protection of the interests of the Certificateholders, rent the same, or
any part thereof, as the Master Servicer deems to be in the best interest of the Master Servicer and the Certificateholders for the period prior to the sale of such REO Property. The Master Servicer shall prepare for and deliver to the Trustee a statement with respect to each REO Property that has been rented showing the aggregate rental income received and all expenses incurred in connection with the management and maintenance of such REO Property at such times as is necessary to enable the Trustee to comply with the reporting requirements of the REMIC Provisions. The net monthly rental income, if any, from such REO Property shall be deposited in the Protected Account no later than the close of business on each Determination Date.  The Master Servicer shall perform the tax reporting and withholding related to foreclosures, abandonments and cancellation of indebtedness income as specified by Sections 1445, 6050J and 6050P of the Code by preparing and filing such tax and information
returns, as may be required.

In the event that the Trust Fund acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or imminent default on a Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property prior to three years after its acquisition by the Trust Fund or, at the expense of the Trust Fund, request more than 60 days prior to the day on which such three-year period would otherwise expire, an extension of the three-year grace period unless the Trustee shall have been supplied with an Opinion of Counsel addressed to the Trustee (such opinion not to be an expense of the Trustee) to the effect that the holding by the Trust Fund of such Mortgaged Property subsequent to such three-year period will not result in the imposition of taxes on “prohibited transactions” of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as defined in section 860F of
the Code or cause any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI 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). Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used for the production of income by or on behalf of the Trust Fund in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as “foreclosure property” within the meaning of section 860G(a)(8) of the Code or (ii) subject any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to the imposition of any federal, state or local income taxes on the income earned from such Mortgaged Property under section 860G(c) of the Code or otherwise, unless the Master Servicer has agreed to indemnify and hold harmless the Trust Fund with respect to the imposition of any such taxes.

The decision of the Master Servicer to foreclose on a defaulted Mortgage Loan shall be subject to a determination by the Master Servicer that the proceeds of such foreclosure would exceed the costs and expenses of bringing such a proceeding. The income earned from the management of any Mortgaged Properties acquired through foreclosure or other judicial proceeding, net of reimbursement to the Master Servicer for expenses incurred (including any property or other taxes) in connection with such management and net of unreimbursed Servicing Fees, Advances, Servicing Advances and any management fee paid or to be paid with respect to the management of such Mortgaged Property, shall be applied to the payment of principal of, and interest on, the related defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans were still current) and all such income shall be deemed, for all
purposes in the Agreement, to be payments on account of principal and interest on the related Mortgage Notes and shall be deposited into the Protected Account. To the extent the income received during a Prepayment Period is in excess of the amount attributable to amortizing principal and accrued interest at the related Mortgage Rate on the related Mortgage Loan, such excess shall be considered to be a partial Principal Prepayment for all purposes hereof.

The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of any payment to the Master Servicer as provided above, shall be deposited in the Protected Account on the next succeeding Determination Date following receipt thereof for distribution on the related Distribution Date, except that any Excess Liquidation Proceeds shall be retained by the Master Servicer as additional servicing compensation.

The proceeds of any Liquidated Loan, as well as any recovery resulting from a partial collection of Liquidation Proceeds or any income from an REO Property, will be applied in the following order of priority:  first, to reimburse the Master Servicer for any related unreimbursed Servicing Advances and Servicing Fees, pursuant to Section 4.02 or this Section 3.09; second, to reimburse the Master Servicer for any unreimbursed Advances, pursuant to Section 4.02 or this Section 3.09; third, to accrued and unpaid interest (to the extent no Advance has been made for such amount) on the Mortgage Loan or related REO Property, at the Net Mortgage Rate to the first day of the month in which such amounts are required to be distributed; and fourth, as a recovery of principal of the Mortgage Loan.

(b)        On each Determination Date, the Master Servicer shall determine the respective aggregate amounts of Excess Liquidation Proceeds and Realized Losses, if any, for the related Prepayment Period.

 

 

(c)        The Master Servicer has no intent to foreclose on any Mortgage Loan based on the delinquency characteristics as of the Closing Date; provided, that the foregoing does not prevent the Master Servicer from initiating foreclosure proceedings on any date hereafter if the facts and circumstances of such Mortgage Loans including delinquency characteristics in the Master Servicer’s discretion so warrant such action.

	
            Section 3.10
 	
            Servicing Compensation.  
 

As compensation for its activities hereunder, the Master Servicer shall be entitled to retain or withdraw from the Protected Account out of each payment of interest on a Mortgage Loan included in the Trust Fund an amount equal to the Servicing Fee.

Additional servicing compensation in the form of any Excess Liquidation Proceeds, assumption fees, late payment charges, all income and gain net of any losses realized from Permitted Investments with respect to funds in or credited to the Protected Account shall be retained by the Master Servicer to the extent not required to be deposited in the Protected Account pursuant to Section 4.02. The Master Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder (including payment of any premiums for hazard insurance, as required by Section 3.05 and maintenance of the other forms of insurance coverage required by Section 3.07) and shall not be entitled to reimbursement therefor except as specifically provided in Section 4.02.

	
            Section 3.11
 	
            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 sell any REO Property as expeditiously as possible and in accordance with the provisions of this Agreement. Pursuant to its efforts to sell such REO Property, the Master Servicer shall protect and conserve such REO Property in the manner and to the extent required herein, in accordance with the REMIC Provisions.

(b)        The Master Servicer shall deposit all funds collected and received in connection with the operation of any REO Property into the Protected Account.

(c)        The Master Servicer, upon the final disposition of any REO Property, shall be entitled to reimbursement for any related unreimbursed Advances, unreimbursed Servicing Advances or Servicing Fees from Liquidation Proceeds received in connection with the final disposition of such REO Property; provided, that any such unreimbursed Advances or Servicing Fees as well as any unpaid Servicing Fees may be reimbursed or paid, as the case may be, prior to final disposition, out of any net rental income or other net amounts derived from such REO Property.

	
            Section 3.12
 	
            Liquidation Reports.  
 

Upon the foreclosure of any Mortgaged Property or the acquisition thereof by the Trust Fund pursuant to a deed-in-lieu of foreclosure, the Master Servicer shall submit a liquidation 

 

 

report to the Trustee containing such information as shall be mutually acceptable to the Master Servicer and the Trustee with respect to such Mortgaged Property.

	
            Section 3.13
 	
            Annual Certificate as to Compliance.  
 

(a)        The Master Servicer will deliver to the Trustee and the Rating Agencies not later than March 1, 2006 and not later than March 1 of each year thereafter, a certificate of a Servicing Officer stating, as to each signatory thereof, that (i) a review of the activities of the Master Servicer during the preceding calendar year or portion thereof and of its performance under this Agreement has been made under such officer’s supervision, and (ii) to the best of such officer’s knowledge, based on such review, the Master Servicer has fulfilled all of its obligations under this Agreement in all material respects throughout such year or portion thereof, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof except for such defaults as
such officer in its good faith judgment believe to be immaterial.

(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 3.14
 	
            Annual Independent Certified Public Accountants’ Servicing Report.  
 

Not later than March 1, 2006 and not later than March 1 of each year thereafter, the Master Servicer at its expense shall cause a firm of independent public accountants which is a member of the American Institute of Certified Public Accountants to furnish a statement to the Trustee and the Rating Agencies to the effect that, with respect to the preceding calendar year, such firm has examined certain documents and records relating to the Master Servicer’s servicing of mortgage loans of the same type as the Mortgage Loans pursuant to servicing agreements substantially similar to this Agreement, which agreements may include this Agreement, and that, on the basis of such an examination, conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers, such firm is of the opinion that the Master Servicer’s servicing has been conducted in
compliance with the agreements examined pursuant to this Section 3.14, except for (i) such exceptions as such firm shall believe to be immaterial,(ii) such other exceptions as shall be set forth in such statement and (iii) such exceptions that the Uniform Single Attestation Program for Mortgage Bankers 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 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 3.15
 	
            Books and Records.  
 

The Master Servicer shall be responsible for maintaining, and shall maintain, a complete set of books and records for the Mortgage Loans which shall be appropriately identified in the 

 

 

Master Servicer’s computer system to clearly reflect the ownership of the Mortgage Loans by the Trust.  In particular, the Master Servicer shall maintain in its possession, available for inspection by the Trustee and shall deliver to the Trustee upon demand, evidence of compliance with all federal, state and local laws, rules and regulations. To the extent that original documents are not required for purposes of realization of Liquidation Proceeds or Insurance Proceeds, documents maintained by the Master Servicer may be in the form of microfilm or microfiche or such other reliable means of recreating original documents, including, but not limited to, optical imagery techniques so long as the Master Servicer complies with the requirements of Accepted Servicing Practices.

The Master Servicer shall maintain with respect to each Mortgage Loan and shall make available for inspection by the Trustee the related servicing file during the time such Mortgage Loan is subject to this Agreement and thereafter in accordance with applicable law.

	
            Section 3.16
 	
            Reports Filed with Securities and Exchange Commission.  
 

(a)        The Depositor shall prepare or cause to be prepared the initial current report on Form 8-K. Within 15 days after each Distribution Date, the Trustee shall, in accordance with industry standards, file with the Commission via the Electronic Data Gathering and Retrieval System (“EDGAR”), a Form 8-K with a copy of the monthly statement to be furnished by the Trustee to the Certificateholders for such Distribution Date as an exhibit thereto.  Prior to January 30 in each year commencing in 2006, the Trustee shall, in accordance with industry standards, file a Form 15 Suspension Notice with respect to the Trust Fund, if applicable. Prior to (i) March 15, 2006 and (ii) unless and until a Form 15 Suspension Notice shall have been filed, prior to March 15 of each year thereafter, the Master Servicer shall provide the Trustee with a
Master Servicer Certification, together with a copy of the annual independent accountant’s servicing report and annual statement of compliance to be delivered by the Master Servicer pursuant to Sections 3.13 and 3.14. 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 Trustee shall, subject to subsection (d) below, file a Form 10-K, in substance conforming to industry standards, with respect to the Trust Fund. Such Form 10-K shall include the Master Servicer Certification and other documentation provided by the Master Servicer pursuant to the second preceding sentence and the Form 10-K certification signed by the Depositor. The Depositor hereby grants to the Trustee 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 Trustee 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 Trustee, 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 Trustee reasonably deems appropriate to prepare and file all necessary reports with the Commission. The Trustee shall have no responsibility to file any items other than those specified in this Section 3.16; provided, however, the Trustee will cooperate with the Depositor in connection with any additional filings with respect to the Trust Fund as the Depositor deems necessary under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Copies of all reports filed by the Trustee under the Exchange Act shall be sent to:  the Depositor c/o Bear, Stearns & Co. Inc., Attn:  Managing Director-Analysis and Control, One Metrotech Center North, Brooklyn, New York 11202
3859. 

 

 

Fees and expenses incurred by the Trustee in connection with this Section 3.16 shall not be reimbursable from the Trust Fund.

(b)        In connection with the filing of any 10-K hereunder, the Trustee shall sign a certification (in the form attached hereto as Exhibit K) for the Depositor regarding certain aspects of the Form 10-K certification signed by the Depositor, provided, however, that the Trustee shall not be required to undertake an analysis of any accountant’s report attached as an exhibit to the Form 10-K.

(c)        (i)  The Trustee shall indemnify and hold harmless the Depositor and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the Trustee’s obligations under this Section 3.16 or the Trustee’s negligence, bad faith or willful misconduct in connection therewith.

(i)         The Depositor shall indemnify and hold harmless the Trustee and its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the obligations of the Depositor under this Section 3.16 or the Depositor’s negligence, bad faith or willful misconduct in connection therewith.

(ii)         The Master Servicer shall indemnify and hold harmless the Trustee and the Depositor and their respective officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the obligations of the Master Servicer under this Section 3.16 or the Master Servicer’s negligence, bad faith or willful misconduct in connection therewith.

(iii)        If the indemnification provided for herein is unavailable or insufficient to hold harmless the Depositor or the Trustee, as applicable, then the defaulting party, in connection with a breach of its respective obligations under this Section 3.16 or its respective negligence, bad faith or willful misconduct in connection therewith, agrees that it shall contribute to the amount paid or payable by the other parties as a result of the losses, claims, damages or liabilities of the other party in such proportion as is appropriate to reflect the relative fault and the relative benefit of the Depositor on the one hand and the Trustee on the other.

(d)        Nothing shall be construed from the foregoing subsections (a), (b) and (c) to require the Trustee or any officer, director or Affiliate thereof to sign any Form 10-K or any certification contained therein.  Furthermore, the inability of the Trustee to file a Form 10-K as a result of the lack of required information as set forth in Section 3.16(a) or required signatures on such Form 10-K or any certification contained therein shall not be regarded as a breach by the Trustee of any obligation under this Agreement.

(e)        Notwithstanding the provisions of Section 11.01, this Section 3.16 may be amended without the consent of the Certificateholders.

 

 

 

	
            Section 3.17
 	
            UCC.  
 

The Trustee agrees to file continuation statements for any Uniform Commercial Code financing statements which the Seller has informed the Trustee were filed on the Closing Date in connection with the Trust. The Seller shall file any financing statements or amendments thereto required by any change in the Uniform Commercial Code.

	
            Section 3.18
 	
            Optional Purchase of Certain Mortgage Loans.  
 

With respect to any Mortgage Loans which as of the first day of a Fiscal Quarter is Delinquent in payment by 90 days or more or is an REO Property, EMC shall have the right to purchase any Mortgage Loan from the Trust which becomes 90 days or more delinquent or becomes an REO Property at a price equal to the Purchase Price; provided however (i) that such Mortgage Loan is still 90 days or more delinquent or is an REO Property as of the date of such purchase and (ii) this purchase option, if not theretofore exercised, shall terminate on the date prior to the last day of the related Fiscal Quarter.  This purchase option, if not exercised, shall not be thereafter reinstated unless the delinquency is cured and the Mortgage Loan thereafter again becomes 90 days or more delinquent or becomes an REO Property, in which case the option shall again become exercisable as of the first day of the
related Fiscal Quarter.

In addition, EMC shall, at its option, purchase any Mortgage Loan from the Trust if the first Due Date for such Mortgage Loan is subsequent to the Cut-off Date and the initial Scheduled Payment is not made within thirty (30) days of such Due Date. Such purchase shall be made at a price equal to the Purchase Price. 

If at any time EMC remits to the Master Servicer a payment for deposit in the Protected Account covering the amount of the Purchase Price for such a Mortgage Loan, and EMC provides to the Trustee a certification signed by a Servicing Officer stating that the amount of such payment has been deposited in the Protected Account, then the Trustee shall execute the assignment of such Mortgage Loan prepared and delivered to the Trustee, at the request of EMC, without recourse, representation or warranty, to EMC which shall succeed to all the Trustee’s right, title and interest in and to such Mortgage Loan, and all security and documents relative thereto.  Such assignment shall be an assignment outright and not for security.  EMC will thereupon own such Mortgage, and all such security and documents, free of any further obligation to the Trustee or the Certificateholders with respect thereto.

Section 3.19     Obligations of the Master Servicer in Respect of Mortgage Rates and Scheduled 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, Scheduled Payments or Stated Principal Balances that were made by the Master Servicer in a manner not consistent with the terms of the related Mortgage Note and this Agreement, the Master Servicer, upon discovery or receipt of notice thereof, immediately shall deliver to the Trustee 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 Depositor and any successor Master Servicer in respect of any such liability. Such indemnities shall survive the termination or discharge of 

 

 

this Agreement.  Notwithstanding the foregoing, this Section 3.19 shall not limit the ability of the Master 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 3.20
 	
            Reserve Fund; Payments to and from Swap Administrator.  
 

(a)        On or before the Closing Date, the Trustee shall establish a Reserve Fund on behalf of the Holders of the Certificates.  On the Closing Date, the Depositor shall cause an amount equal to $5,000 to be deposited into the Reserve Fund.  The Reserve Fund must be an Eligible Account.  The Reserve Fund shall be entitled “Reserve Fund, LaSalle Bank National Association as Trustee for the benefit of holders of Bear Stearns Asset Backed Securities I LLC, Asset-Backed Certificates, Series 2005-HE4”.  The Trustee shall deposit in the Reserve Fund all payments received from the Swap Administrator that are payable to the Trust Fund pursuant to the Swap Administration Agreement. On each Distribution Date, the Trustee shall remit such amounts received from the Swap Administrator to the Holders of the Class A Certificates, Class M Certificates
and Class CE Certificates in the manner provided in clause (b) below.  In addition, on each Distribution Date as to which there is a Basis Risk Shortfall Carry Forward Amount payable to any Class of Class A Certificates and/or Class M Certificates, the Trustee shall deposit the amounts distributable pursuant to clauses (C) and (D) of Section 5.04(a)(4) into the Reserve Fund, and the Trustee has been directed by the Class CE Certificateholder to distribute such amounts to the Holders of the Class A and/or Class M Certificates in the amounts and priorities set forth in clauses (C) and (D) of Section 5.04(a)(4).  Any amount paid to the Holders of Class A Certificates and/or Class M Certificates pursuant to the preceding sentence in respect of Basis Risk Shortfall Carry Forward Amount shall be treated as distributed to the Class CE Certificateholder in respect of the Class CE Certificates and paid by the Class CE Certificateholder to the Holders of the Class A Certificates and/or Class M
Certificates.  Any payments to the Holders of the Class A Certificates and/or Class M Certificates in respect of Basis Risk Shortfall Carry Forward Amount, whether pursuant to the second preceding sentence or pursuant to subsection (b) below, shall not be payments with respect to a Regular Interest in a REMIC within the meaning of Code Section 860(G)(a)(1).

(b)        Net Swap Payments and Swap Termination Payments (other than Swap Termination Payments resulting from a Swap Provider Trigger Event) payable by the Swap Administrator to the Swap Provider pursuant to the Swap Agreement shall be deducted from Interest Funds, and to the extent of any such remaining amounts due, from Principal Funds, prior to any distributions to the Certificateholders. On or before each Distribution Date, such amounts will be remitted to the Swap Administrator, 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. For federal income tax purposes, such amounts paid to the Swap
Administrator on each Distribution Date shall first be deemed paid to the Swap Administrator in respect of REMIC VI Regular Interest IO to the extent of the amount distributable on such REMIC VI Regular Interest IO on such Distribution Date, and any remaining amount shall be deemed paid to the Swap Administrator in respect of  a Class IO Distribution Amount.  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 shall be paid as set forth under Section 5.04(a)(4).

(c)        Net Swap Payments payable by the Swap Provider to the Swap Administrator pursuant to the Swap Agreement will be deposited by the Swap Administrator into the Swap Account pursuant to the Swap Administration Agreement.  The Swap Administrator shall, to the extent provided in the Swap Administration Agreement, remit amounts on deposit in the Swap Account to the Trustee for deposit into the Reserve Fund.  On each Distribution Date, to the extent required, the Trustee shall withdraw such amounts from the Reserve Fund to distribute to the Certificates in the following order of priority:

(i)         first, to each Class of Class A Certificates, on a pro rata basis, to pay Current Interest and any Interest Carry Forward Amount to the extent due to the interest portion of a Realized Loss, in each case to the extent not fully paid pursuant to Section 5.04(a)(1);

(ii)         second, sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in that order, to pay Current Interest and any Interest Carry Forward Amount to the extent due to the interest portion of a Realized Loss, in each case to the extent not fully paid pursuant to Section 5.04(a)(1); 

(iii)        third, to pay first, to the Class A Certificates, on a pro rata basis, based on the amount of Basis Risk Shortfall Carry Forward Amount for each such class, and second, sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in that order, any Basis Risk Shortfall Carry Forward Amounts for such Distribution Date; and

(iv)        fourth, to pay as principal to the Class A Certificates and Class M Certificates as part of the Extra Principal Distribution Amount payable under Section 5.04(a)(2) until the Overcollateralization Target Amount has been reached, to the extent not paid from Excess Cashflow pursuant to Section 5.04(a)(2) for such Distribution Date. For the avoidance of doubt, any amounts distributable pursuant to this clause fourth shall be limited to rebuilding overcollateralization to the extent overcollateralization has been reduced through Realized Losses.  

(d)        The Reserve Fund is an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h) and shall be an asset of the Trust Fund but not an asset of any REMIC.  The Trustee on behalf of the Trust shall be the nominal owner of the Reserve Fund.  The Class CE Certificateholder shall be the beneficial owner of the Reserve Fund, subject to the power of the Trustee to transfer amounts under Section 5.04.  Amounts in the Reserve Fund shall, at the direction of the Class CE Certificateholder, be invested in Permitted Investments that mature no later than the Business Day prior to the next succeeding Distribution Date.  All net income and gain from such investments shall be distributed to the Class CE Certificateholder, not as a distribution in respect of any interest in any REMIC, on such Distribution Date.  All
amounts earned on amounts on deposit in the Reserve Fund shall be taxable to the Class CE Certificateholder.  Any losses on such investments shall be deposited in the Reserve Fund by the 

 

 

Class CE Certificateholder out of its own funds immediately as realized.  The Swap Account, which is created and maintained by the Swap Administrator pursuant to the Swap Administration Agreement, is an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h) and shall not be an asset of any REMIC created hereunder.  The beneficial owner of the Swap Account is identified, and other matters relating to the Swap Account are addressed, in the Swap Administration Agreement.  

(e)        The Trustee shall treat the Holders of Certificates (other than the Class P, Class CE and Class R 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 Class R 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 REMIC III Regular Interest corresponding to 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 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 Basis Risk Shortfall Carry Forward Amounts to the Holders of the Certificates (other than the Class CE, Class P and Class R Certificates) in accordance with the terms of this Agreement.  Any payments to the 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 Class R 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 their interests in REMIC III and as having been paid by such Holders to the Swap Administrator pursuant to the notional principal contract.  Thus, each Certificate (other than the Class P and Class R Certificates) shall be treated as representing not only ownership of Regular Interests in REMIC III, but also ownership of an interest in, and obligations with respect to, a notional principal contract.  

	
            Section 3.21
 	
            Advancing Facility.  
 

(a)        The Master Servicer and/or the Trustee on behalf of the Trust Fund, in either case, with the consent of the Master Servicer in the case of the Trustee and, in each case, with notice to the Rating Agencies, is hereby authorized to enter into a facility (the “Advancing Facility”) with any Person which provides that such Person (an “Advancing Person”) may fund Advances and/or Servicing Advances to the Trust Fund under this Agreement, although no such facility shall reduce or otherwise affect the Master Servicer’s obligation to fund such Advances and/or Servicing Advances.  If the Master Servicer enters into such an Advancing Facility pursuant to this Section 3.21, upon reasonable request of the Advancing Person, the Trustee shall execute a letter of acknowledgment, confirming its receipt of notice of the existence
of such Advancing Facility.  To the extent that an Advancing Person funds any Advance or any Servicing Advance and provides the Trustee with notice acknowledged by the Servicer that such Advancing Person 

 

 

is entitled to reimbursement, such Advancing Person shall be entitled to receive reimbursement pursuant to this Agreement for such amount to the extent provided in Section 3.21(b).  Such notice from the Advancing Person must specify the amount of the reimbursement, the Section of this Agreement that permits the applicable Advance or Servicing Advance to be reimbursed and the section(s) of the Advancing Facility that entitle the Advancing Person to request reimbursement from the Trustee, rather than the Master Servicer, and include the Master Servicer’s acknowledgment thereto or proof of an Event of Default under the Advancing Facility.  The Trustee shall have no duty or liability with respect to any calculation of any reimbursement to be paid to an Advancing Person and shall be entitled to rely without independent investigation on the Advancing Person’s notice provided pursuant to this Section
3.21. An Advancing Person whose obligations hereunder are limited to the funding of Advances and/or Servicing Advances shall not be required to meet the qualifications of a Master Servicer or a subservicer pursuant to Section 8.02 hereof and will not be deemed to be a subservicer under this Agreement.

(b)        If an Advancing Facility is entered into, then the Master Servicer shall not be permitted to reimburse itself therefor under Section 4.02(a)(ii), Section 4.02(a)(iii) and Section 4.02(a)(v) prior to the remittance to the Trust Fund, but instead the Master Servicer shall include such amounts in the applicable remittance to the Trustee made pursuant to Section 4.02.  The Trustee is hereby authorized to pay to the Advancing Person, reimbursements for Advances and Servicing Advances from the Distribution Account to the same extent the Master Servicer would have been permitted to reimburse itself for such Advances and/or Servicing Advances in accordance with Section 4.02(a)(ii), Section 4.02(a)(iii) or Section 4.02(a)(v), as the case may be, had the Master Servicer itself funded such Advance or Servicing Advance.  The Trustee is hereby
authorized to pay directly to the Advancing Person such portion of the Servicing Fee as the parties to any advancing facility agree.

(c)        All Advances and Servicing Advances made pursuant to the terms of this Agreement shall be deemed made and shall be reimbursed on a “first in-first out” (FIFO) basis.

(d)        Any amendment to this Section 3.21 or to any other provision of this Agreement that may be necessary or appropriate to effect the terms of an Advancing Facility as described generally in this Section 3.21, including amendments to add provisions relating to a successor master servicer, may be entered into by the Trustee and the Master Servicer without the consent of any Certificateholder, notwithstanding anything to the contrary in this Agreement. 

	
            Section 3.22
 	
            Special Servicer.  
 

On any Distribution Date on which (1) the servicer rating for the Master Servicer is downgraded by a full rating category from its rating as of the Closing Date by any of S&P, Moody’s and Fitch and (2) a Special Servicer Trigger is in effect for such Distribution Date, the Majority Class CE Certificateholder or its designee shall have the option to direct the Master Servicer to appoint a special servicer to service all of the Mortgage Loans that are 90 days or more Delinquent as of such Distribution Date (“Delinquent Loans”). In addition, on each of the next three Distribution Dates and for every Distribution Date occurring in the last month of each Fiscal Quarter thereafter, if a Special Servicing Trigger is in effect the Majority Class CE 

 

 

Certificateholder shall have the option to direct the Master Servicer to transfer any additional Delinquent Loans as of such Distribution Dates to the special servicer. 

 

The special servicer appointed at the direction of the Majority Class CE Certificateholder or its designee shall be rated in the two highest special servicer rankings by Moody’s and such special servicer shall be a “Select Special Servicer” as set forth in S&P’s criteria. Such special servicer shall be entitled to any Servicing Fees (including any related late payment charges) payable to the Master Servicer with respect to any Delinquent Loan the special servicer is servicing. In the event that a special servicer is appointed, the Trustee shall provide prompt written notice to the Rating Agencies of such appointment.  The special servicer shall comply in all respects with, and shall service such Delinquent Loans in accordance with, this Agreement to the same extent that the Master Servicer is required to under this Agreement. The special servicer shall indemnify
the Master Servicer for any losses, liabilities or damages incurred by the Master Servicer as a result of the special servicer’s servicing of any Delinquent Loan and shall reimburse the Master Servicer for any and all Advances, out of pocket expenses and accrued Servicing Fees made with respect to such Delinquent Loans transferred to the special servicer.

 

 

 

ARTICLE IV

 

ACCOUNTS

	
            Section 4.01
 	
            Collection of Mortgage Loan Payments; Protected Account.  
 

(a)        The Master Servicer shall make reasonable efforts in accordance with customary and usual standards of practice of prudent mortgage lenders in the respective states in which the Mortgaged Properties are located to collect all payments called for under the terms and provisions of the Mortgage Loans to the extent such procedures shall be consistent with this Agreement and the terms and provisions of any related Required Insurance Policy. Consistent with the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge and (ii) extend the due dates for payments due on a Mortgage Note for a period not greater than 125 days. In the event of any such arrangement, the Master Servicer shall make Advances on the related Mortgage Loan during the scheduled period in accordance with the amortization schedule of such Mortgage
Loan without modification thereof by reason of such arrangements, and shall be entitled to reimbursement therefor in accordance with Section 5.01. The Master Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law. In addition, if (x) a Mortgage Loan is in default or default is imminent or (y) the Master Servicer delivers to the Trustee a certification addressed to the Trustee, based on the advice of counsel or certified public accountants, in either case, that have a national reputation with respect to taxation of REMICs, that a modification of such Mortgage Loan will not result in the imposition of taxes on or disqualify from
REMIC status any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, the Master Servicer may, (A) amend the related Mortgage Note to reduce the Mortgage Rate applicable thereto, provided that such reduced Mortgage Rate shall in no event be lower than 5.00% with respect to any Mortgage Loan and (B) amend any Mortgage Note to extend to the maturity thereof.

The Master Servicer shall not waive (or permit a sub-servicer to waive) any Prepayment Charge unless:  (i) the enforceability thereof shall have been limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally, (ii) the enforcement thereof is illegal, or any local, state or federal agency has threatened legal action if the prepayment penalty is enforced, (iii) the collectability thereof shall have been limited due to acceleration in connection with a foreclosure or other involuntary payment or (iv) such waiver is standard and customary in servicing similar Mortgage Loans and relates to a default or a reasonably foreseeable default and would, in the reasonable judgment of the Master Servicer, maximize recovery of total proceeds taking into account the value of such Prepayment Charge and the related Mortgage Loan. If a
Prepayment Charge is waived, but does not meet the standards described above, then the Master Servicer is required to pay the amount of such waived Prepayment Charge, for the benefit of the Class P Certificates, by remitting such amount to the Trustee by the Distribution Account Deposit Date.

(b)        The Master Servicer shall establish and maintain a Protected Account (which shall at all times be an Eligible Account) with a depository institution in the name of the Master 

 

 

Servicer for the benefit of the Trustee on behalf of the Certificateholders and designated “EMC Mortgage Corporation, as Master Servicer, for the benefit of LaSalle Bank National Association, in trust for registered holders of Bear Stearns Asset Backed Securities I LLC, Asset-Backed Certificates Series 2005-HE4”. The Master Servicer shall deposit or cause to be deposited into the Protected Account on a daily basis within one Business Day of receipt, except as otherwise specifically provided herein, the following payments and collections remitted by subservicers or received by it in respect of the Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal and interest due on the Mortgage Loans on or before the Cut-off Date) and the following amounts required to be deposited hereunder:

(i)         all payments on account of principal, including Principal Prepayments, on the Mortgage Loans;

(ii)         all payments on account of interest on the Mortgage Loans net of the Servicing Fee permitted under Section 3.10 and LPMI Fees, if any;

(iii)        all Liquidation Proceeds, Subsequent Recoveries and Insurance Proceeds, other than proceeds to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures;

(iv)        any amount required to be deposited by the Master Servicer pursuant to Section 4.01(c) in connection with any losses on Permitted Investments;

(v)        any amounts required to be deposited by the Master Servicer pursuant to Section 3.05;

	
            (vi)
 	
            any Prepayment Charges collected on the Mortgage Loans; and
 
	
            (vii)
 	
            any other amounts required to be deposited hereunder.
 	
             

The foregoing requirements for remittance by the Master Servicer into the Protected 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 or assumption fees, if collected, need not be remitted by the Master Servicer.  In the event that the Master Servicer shall remit any amount not required to be remitted and not otherwise subject to withdrawal pursuant to Section 4.02, it may at any time withdraw or direct the institution maintaining the Protected Account, to withdraw such amount from the Protected Account, any provision herein to the contrary notwithstanding.  Such withdrawal or direction may be accomplished by delivering written notice thereof to the institution maintaining the Protected Account, that describes the amounts deposited in error in the Protected Account. The Master
Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section. All funds deposited in the Protected Account shall be held in trust for the Certificateholders until withdrawn in accordance with Section 4.02.

(c)        The institution that maintains the Protected Account shall invest the funds in the Protected Account, in the manner directed by the Master Servicer, in Permitted Investments which shall mature not later than the Remittance Date and shall not be sold or disposed of prior 

 

 

to its maturity. All such Permitted Investments shall be made in the name of the Trustee, for the benefit of the Certificateholders.  All income and gain net of any losses realized from any such investment shall be for the benefit of the Master Servicer as servicing compensation and shall be remitted to it monthly as provided herein. The amount of any losses incurred in the Protected Account in respect of any such investments shall be deposited by the Master Servicer into the Protected Account, out of the Master Servicer’s own funds.

(d)        The Master Servicer shall give at least 30 days advance notice to the Trustee, the Seller, each Rating Agency and the Depositor of any proposed change of location of the Protected Account prior to any change thereof.

	
            Section 4.02
 	
            Permitted Withdrawals From the Protected Account.  
 

(a)        The Master Servicer may from time to time make withdrawals from the Protected Account for the following purposes:

(i)         to pay itself (to the extent not previously paid to or withheld by the Master Servicer), as servicing compensation in accordance with Section 3.10, that portion of any payment of interest that equals the Servicing Fee for the period with respect to which such interest payment was made, and, as additional servicing compensation, those other amounts set forth in Section 3.10;

(ii)         to reimburse the Master Servicer for Advances made by it with respect to the Mortgage Loans, provided, however, that the Master Servicer’s right of reimbursement pursuant to this subclause (ii) shall be limited to amounts received on particular Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries) that represent late recoveries of payments of principal and/or interest on such particular Mortgage Loan(s) in respect of which any such Advance was made;

(iii)        to reimburse the Master Servicer for any previously made portion of a Servicing Advance or an Advance made by the Master Servicer that, in the good faith judgment of the Master Servicer, will not be ultimately recoverable by it from the related Mortgagor, any related Liquidation Proceeds, Insurance Proceeds or otherwise (a “Nonrecoverable Advance”), to the extent not reimbursed pursuant to clause (ii) or clause (v);

(iv)        to reimburse the Master Servicer from Insurance Proceeds for Insured Expenses covered by the related Insurance Policy;

(v)        to pay the Master Servicer any unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing Advances, provided, however, that the Master Servicer’s right to reimbursement for Servicing Advances pursuant to this subclause (v) with respect to any Mortgage Loan shall be limited to amounts received on particular Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds, Insurance Proceeds, Subsequent Recoveries and purchase and repurchase proceeds) that represent late recoveries of the payments for which such Servicing Advances were made;

 

 

(vi)        to pay to the Seller, the Depositor or itself, as applicable, with respect to each Mortgage Loan or property acquired in respect thereof that has been purchased pursuant to Section 2.02, 2.03 or 3.18 of this Agreement, all amounts received thereon and not taken into account in determining the related Stated Principal Balance of such repurchased Mortgage Loan;

(vii)       to pay any expenses recoverable by the Master Servicer pursuant to Section 7.04 of this Agreement;

(viii)      to withdraw pursuant to Section 4.01 any amount deposited in the Protected Account and not required to be deposited therein; and

(ix)        to clear and terminate the Protected Account upon termination of this Agreement pursuant to Section 10.01 hereof.

In addition, no later than 10:00 a.m. Eastern time on the Distribution Account Deposit Date, the Master Servicer shall withdraw from the Protected Account and remit to the Trustee the amount of Interest Funds for each Loan Group (without taking into account any reduction in the amount of Interest Funds attributable to the application of clause (c) of the definition thereof contained in Article I of this Agreement) and Principal Funds for each Loan Group collected, to the extent on deposit, and the Trustee shall deposit such amount in the Distribution Account. In addition, on or before the Distribution Account Deposit Date, the Master Servicer shall remit to the Trustee for deposit in the Distribution Account any Advances or any payments of Compensating Interest required to be made by the Master Servicer with respect to the Mortgage Loans. Furthermore, on each Distribution Account Deposit
Date, the Master Servicer shall remit to the Trustee all Prepayment Charges collected by the Master Servicer with respect to the Mortgage Loans during the related Prepayment Period.

The Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Protected Account pursuant to subclauses (i), (ii), (iv), (v), (vi) and (vii) above. Prior to making any withdrawal from the Protected Account pursuant to subclause (iii), the Master Servicer shall deliver to the Trustee an Officer’s Certificate of a Servicing Officer indicating the amount of any previous Advance or Servicing Advance determined by the Master Servicer to be a Nonrecoverable Advance and identifying the related Mortgage Loan(s), and their respective portions of such Nonrecoverable Advance.

	
            Section 4.03
 	
            Collection of Taxes; Assessments and Similar Items; Escrow Accounts.  
 

With respect to each Mortgage Loan, to the extent required by the related Mortgage Note, the Master Servicer shall establish and maintain one or more accounts (each, an “Escrow Account”) and deposit and retain therein all collections from the Mortgagors (or advances by the Master Servicer) for the payment of taxes, assessments, hazard insurance premiums or comparable items for the account of the Mortgagors. Nothing herein shall require the Master Servicer to compel a Mortgagor to establish an Escrow Account in violation of applicable law.

Withdrawals of amounts so collected from the Escrow Accounts may be made only to effect timely payment of taxes, assessments, hazard insurance premiums, condominium or PUD 

 

 

association dues, or comparable items, to reimburse the Master Servicer out of related collections for any payments made with respect to each Mortgage Loan pursuant to Section 3.01 (with respect to taxes and assessments and insurance premiums) and Section 3.05 (with respect to hazard insurance), to refund to any Mortgagors for any Mortgage Loans any sums as may be determined to be overages, to pay interest, if required by law or the terms of the related Mortgage or Mortgage Note, to such Mortgagors on balances in the Escrow Account or to clear and terminate the Escrow Account at the termination of this Agreement in accordance with Section 10.01 thereof. The Escrow Account shall not be a part of the Trust Fund.

	
            Section 4.04
 	
            Distribution Account.  
 

(a)        The Trustee shall establish and maintain in the name of the Trustee, for the benefit of the Certificateholders, the Distribution Account as a segregated trust account or accounts.

(b)        All amounts deposited to the Distribution Account shall be held by the Trustee in the name of the Trustee in trust for the benefit of the Certificateholders in accordance with the terms and provisions of this Agreement.

(c)        The Distribution Account shall constitute an Eligible Account of the Trust Fund segregated on the books of the Trustee and held by the Trustee and the Distribution Account and the funds deposited therein shall not be subject to, and shall be protected from, all claims, liens, and encumbrances of any creditors or depositors of the Trustee (whether made directly, or indirectly through a liquidator or receiver of the Trustee).  The amount at any time credited to the Distribution Account may be invested in the name of the Trustee, in such Permitted Investments, or deposited in demand deposits with such depository institutions, as determined by the Trustee.  All Permitted Investments shall mature or be subject to redemption or withdrawal on or before, and shall be held until, the next succeeding Distribution Date if the obligor for such
Permitted Investment is the Trustee or, if such obligor is any other Person, the Business Day preceding such Distribution Date. All investment earnings on amounts on deposit in the Distribution Account or benefit from funds uninvested therein from time to time shall be for the account of the Trustee. The Trustee shall be permitted to withdraw or receive distribution of any and all investment earnings from the Distribution Account on each Distribution Date. If there is any loss on a Permitted Investment or demand deposit, the Trustee shall deposit the amount of the loss in the Distribution Account not later than the applicable Distribution Date on which the moneys so invested are required to be distributed to the Certificateholders. With respect to the Distribution Account and the funds deposited therein, the Trustee shall take such action as may be necessary to ensure that the Certificateholders shall be entitled to the priorities afforded to such a trust account (in addition to a
claim against the estate of the Trustee) as provided by 12 U.S.C. § 92a(e), and applicable regulations pursuant thereto, if applicable, or any applicable comparable state statute applicable to state chartered banking corporations.

	
            Section 4.05
 	
            Permitted Withdrawals and Transfers from the Distribution Account.  
 

(a)        The Trustee will make or cause to be made such withdrawals or transfers from the Distribution Account for the following purposes:

 

 

 

	
            (i)
 	
            to pay to itself the Trustee Fee;
 

(ii)         to reimburse the Trustee or the Swap Administrator for expenses, costs and liabilities incurred by or reimbursable to it pursuant to this Agreement;

	
            (iii)
 	
            to pay investment income to the Trustee;
 
	
            (iv)
 	
            to remove amounts deposited in error;
 	
             

(v)        to make distributions to the Swap Administrator for payment to the Swap Provider as provided in this Agreement; and

	
            (vi)
 	
            to clear and terminate the Distribution Account pursuant to Section 10.01.
 

(b)        On each Distribution Date, the Trustee shall distribute Interest Funds and Principal Funds in the Distribution Account for each Loan Group to the Holders of the Certificates in accordance with Section 5.04.

	
            Section 4.06
 	
            Class P Certificate Account.  
 

(a)        The Trustee shall establish and maintain in the name of the Trustee, for the benefit of the Class P Certificateholders, the Class P Certificate Account as a segregated trust account or accounts.

(b)        On the Closing Date, the Depositor will deposit, or cause to be deposited in the Class P Certificate Account, an amount equal to $100.  All amounts deposited to the Class P Certificate Account shall be held by the Trustee in the name of the Trustee in trust for the benefit of the Class P Certificateholders in accordance with the terms and provisions of this Agreement.  The amount on deposit in the Class P Certificate Account shall be held uninvested.

 

 

 

ARTICLE V

 

DISTRIBUTIONS AND ADVANCES

	
            Section 5.01
 	
            Advances.  
 

The Master Servicer shall, or shall cause the related subservicer pursuant to the Subservicing Agreement to, make an Advance and deposit such Advance in the Protected Account. Each such Advance shall be remitted to the Distribution Account no later than 10:00 a.m. Eastern time on the Distribution Account Deposit Date in immediately available funds. The Master Servicer shall be obligated to make any such Advance only to the extent that such advance would not be a Nonrecoverable Advance. If the Master Servicer shall have determined that it has made a Nonrecoverable Advance or that a proposed Advance or a lesser portion of such Advance would constitute a Nonrecoverable Advance, the Master Servicer shall deliver (i) to the Trustee for the benefit of the Certificateholders funds constituting the remaining portion of such Advance, if applicable, and (ii) to the Depositor, each Rating Agency
and the Trustee an Officer’s Certificate setting forth the basis for such determination.  Subject to the Master Servicer’s recoverability determination, in the event that a subservicer fails to make a required Advance, the Master Servicer shall be required to remit the amount of such Advance to the Distribution Account.

In lieu of making all or a portion of such Advance from its own funds, the Master Servicer may (i) cause to be made an appropriate entry in its records relating to the Protected Account that any Amount Held for Future Distributions has been used by the Master Servicer in discharge of its obligation to make any such Advance and (ii) transfer such funds from the Protected Account to the Distribution Account.  Any funds so applied and transferred shall be replaced by the Master Servicer by deposit in the Distribution Account, no later than the close of business on the Business Day immediately preceding the Distribution Date on which such funds are required to be distributed pursuant to this Agreement.

The Master Servicer shall be entitled to be reimbursed from the Protected Account for all Advances of its own funds made pursuant to this Section as provided in Section 4.02. The obligation to make Advances with respect to any Mortgage Loan shall continue until such Mortgage Loan is paid in full or the related Mortgaged Property or related REO Property has been liquidated or until the purchase or repurchase thereof (or substitution therefor) from the Trust Fund pursuant to any applicable provision of this Agreement, except as otherwise provided in this Section 5.01.

Subject to and in accordance with the provisions of Article VIII hereof, in the event the Master Servicer fails to make such Advance, then the Trustee, as Successor Master Servicer, shall be obligated to make such Advance, subject to the provisions of this Section 5.01.

	
            Section 5.02
 	
            Compensating Interest Payments.  
 

In the event that there is a Prepayment Interest Shortfall arising from a voluntary Principal Prepayment in part or in full by the Mortgagor with respect to any Mortgage Loan, the Master Servicer shall, to the extent of the Servicing Fee for such Distribution Date, deposit into 

 

 

the Distribution Account, as a reduction of the Servicing Fee for such Distribution Date, no later than the close of business on the Business Day immediately preceding such Distribution Date, an amount equal to the Prepayment Interest Shortfall; and in case of such deposit, the Master Servicer shall not be entitled to any recovery or reimbursement from the Depositor, the Trustee, the Seller, the Trust Fund or the Certificateholders.

	
            Section 5.03
 	
            REMIC Distributions.  
 

On each Distribution Date the Trustee shall be deemed to have allocated distributions to the REMIC I Regular Interests, REMIC II Regular Interests, Class CE Interest, Class P Interest and Class IO Interest in accordance with Section 5.07 hereof.

	
            Section 5.04
 	
            Distributions.  
 

(a)        On each Distribution Date, an amount equal to the Interest Funds and Principal Funds for each Loan Group for such Distribution Date shall be withdrawn by the Trustee from the Distribution Account and distributed in the following order of priority:

(1)        Interest Funds shall be distributed in the following manner and order of priority:

	
            (A)
 	
            From Interest Funds in respect of:
 

	
            (i)
 	
            Loan Group I, to the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, the Current Interest and any Interest Carry Forward Amount for each such Class, on a pro rata basis based on the entitlement of each such Class; and
 
	
            (ii)
 	
            Loan Group II, to the Class II-A-1 Certificates and Class II-A-2 Certificates, the Current Interest and any Interest Carry Forward Amount for each such Class, on a pro rata basis based on the entitlement of each such Class; 
 
	
            (iii)
 	
            Loan Group III, to the Class III-A-1 Certificates and Class III-A-2 Certificates, the Current Interest and any Interest Carry Forward Amount for each such Class, on a pro rata basis based on the entitlement of each such Class; and
 
	
            (iv)
 	
            Loan Group IV, to the Class IV-A-1 Certificates and Class IV-A-2 Certificates, the Current Interest and any Interest Carry Forward Amount for each such Class, on a pro rata basis based on the entitlement of each such Class;
 

(B)              From remaining Interest Funds in respect of the non-related Loan Groups, to the Class I-A, Class II-A, Class III-A and Class IV-A Certificates, the remaining Current Interest, if any, and the remaining Interest Carry Forward Amount, if any, for such Classes, pro rata based on the entitlement of each such Class; and

 

 

(C)              From remaining Interest Funds in respect of all Loan Groups, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in that order, the Current Interest for each such Class.

Any Excess Spread to the extent necessary to meet a level of overcollateralization equal to the Overcollateralization Target Amount will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount. Any Remaining Excess Spread together with any Overcollateralization Release Amount will be applied as Excess Cashflow and distributed pursuant to clauses (4)(A) through (G) below.

On any Distribution Date, any Relief Act Interest Shortfalls and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest will be allocated as set forth in the definition of “Current Interest” herein.

(2)        Principal Funds, including any Extra Principal Distribution Amount, shall be distributed in the following manner and order of priority:

(A)              For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect:

	
            (i)
 	
            To the Class A Certificates, the Principal Distribution Amount for such Distribution Date to be distributed as follows:
 

(1)        from the Group I Principal Distribution Amount for such Distribution Date, sequentially, to the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, in that order, in each case until the Certificate Principal Balance thereof is reduced to zero; 

(2)        from the Group II Principal Distribution Amount for such Distribution Date, pro rata to the Class II-A-1 Certificates and Class II-A-2 Certificates, until the Certificate Principal Balances thereof are reduced to zero; provided, however, that if a Group II Sequential Trigger Event is in effect, the Group II Principal Distribution Amount for such Distribution Date shall be distributed sequentially to the Class II-A-1 Certificates and Class II-A-2 Certificates, in that order, in each case until the Certificate Principal Balance thereof is reduced to zero; 

(3)        from the Group III Principal Distribution Amount for such Distribution Date, pro rata to the Class III-A-1 Certificates and Class III-A-2 Certificates, until the Certificate Principal Balances thereof are reduced to zero; provided, however, that if a Group III Sequential Trigger Event is in effect, the Group III Principal Distribution Amount for such Distribution Date shall be distributed sequentially to the Class III-A-1 Certificates and 

 

 

Class III-A-2 Certificates, in that order, in each case until the Certificate Principal Balance thereof is reduced to zero; and

(4)        from the Group IV Principal Distribution Amount for such Distribution Date, pro rata to the Class IV-A-1 Certificates and Class IV-A-2 Certificates, until the Certificate Principal Balances thereof are reduced to zero; provided, however, that if a Group IV Sequential Trigger Event is in effect, the Group IV Principal Distribution Amount for such Distribution Date shall be distributed sequentially to the Class IV-A-1 Certificates and Class IV-A-2 Certificates, in that order, in each case until the Certificate Principal Balance thereof is reduced to zero;

	
            (ii)
 	
            To the Class M-1 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (iii)
 	
            To the Class M-2 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (iv)
 	
            To the Class M-3 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (v)
 	
            To the Class M-4 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (vi)
 	
            To the Class M-5 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (vii)
 	
            To the Class M-6 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution 
 

 

 

Amount, until the Certificate Principal Balance thereof is reduced to zero; 

	
            (viii)
 	
            To the Class M-7 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and 
 
	
            (ix)
 	
            To the Class M-8 Certificates, from any remaining Principal Funds in respect of all Loan Groups for such Distribution Date, the remaining Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero.
 

(B)              For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect:

	
            (i)
 	
            To the Class A Certificates, the Principal Distribution Amount for such Distribution Date to be distributed as follows:
 

(1)        from the Group I Principal Distribution Amount for such Distribution Date, sequentially, to the Class I-A-1, Class I-A-2 and Class I-A-3 Certificates, in that order, the Class I-A Principal Distribution Amount for such Distribution Date, in each case until the Certificate Principal Balance thereof is reduced to zero; 

(2)        from the Group II Principal Distribution Amount for such Distribution Date, pro rata to the Class II-A-1 Certificates and Class II-A-2 Certificates, the Class II-A Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balances thereof are reduced to zero; 

(3)        from the Group III Principal Distribution Amount for such Distribution Date, pro rata to the Class III-A-1 Certificates and Class III-A-2 Certificates, the Class III-A Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balances thereof are reduced to zero; and

(4)        from the Group IV Principal Distribution Amount for such Distribution Date, pro rata to the Class IV-A-1 Certificates and Class IV-A-2 Certificates, the Class IV-A Principal Distribution Amount for such Distribution Date, until the Certificate Principal Balances thereof are reduced to zero,

	
            (ii)
 	
            To the Class M-1 Certificates, from any remaining Principal Distribution Amount in respect of all Loan 
 

 

 

Groups for such Distribution Date, the Class M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

	
            (iii)
 	
            To the Class M-2 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (iv)
 	
            To the Class M-3 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (v)
 	
            To the Class M-4 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-4 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (vi)
 	
            To the Class M-5 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-5 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;
 
	
            (vii)
 	
            To the Class M-6 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-6 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 
 
	
            (viii)
 	
            To the Class M-7 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-7 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and
 
	
            (ix)
 	
            To the Class M-8 Certificates, from any remaining Principal Distribution Amount in respect of all Loan Groups for such Distribution Date, the Class M-8 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero.
 

(3)        Notwithstanding the provisions of clauses (2)(A) and (B) above, if on any Distribution Date the Class A Certificates related to a Loan Group are no 

 

 

longer outstanding, the pro rata portion of the Principal Distribution Amount or the applicable Class A Principal Distribution Amount, as applicable, otherwise allocable to such Class A Certificates will be allocated among the remaining group or groups of Class A Certificates pro rata and among the Classes of each such certificate group in the same manner and order of priority described above; and

(4)        Any Excess Cashflow shall be distributed in the following manner and order of priority:

(A)              from any remaining Excess Cashflow, to the Class A Certificates, (a) first, any remaining Interest Carry Forward Amount for such Classes, pro rata, in accordance with the Interest Carry Forward Amount due with respect to each such Class, to the extent not fully paid pursuant to clauses (1) (A) and (B) above and Section 3.20(c) and (b) second, any Unpaid Realized Loss Amount for such Classes for such Distribution Date, pro rata, in accordance with the Applied Realized Loss Amount allocated to each such Class;

(B)              from any remaining Excess Cashflow, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in that order, an amount equal to the Interest Carry Forward Amount for each such Class for such Distribution Date to the extent not fully paid pursuant to Section 3.20(c);

(C)              from any remaining Excess Cashflow otherwise distributable to the Class CE Interest and the Class CE Certificates, to the Reserve Fund to pay to the Class I-A, Class II-A, Class III-A and Class IV-A Certificates, any Basis Risk Shortfall Carry Forward Amount for each such Class for such Distribution Date, on a pro rata basis, based on the amount of the Basis Risk Shortfall Carry Forward Amount for each such Class and to the extent not paid pursuant to Section 3.20(c);

(D)              from any remaining Excess Cashflow otherwise distributable to the Class CE Interest and the Class CE Certificates, to the Reserve Fund to pay to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, sequentially in that order, any Basis Risk Shortfall Carry Forward Amount for each such Class for such Distribution Date, if any, in each case to the extent not paid pursuant to Section 3.20(c);

(E)              from any remaining Excess Cashflow, to the Class A Certificates, on a pro rata basis, based on the entitlement of each such Class, and then sequentially to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class M-8 Certificates, in that order, the amount of Relief Act Shortfalls and any Prepayment Interest Shortfalls 

 

 

allocated to such Classes of Certificates, to the extent not previously reimbursed;

(F)              from any remaining Excess Cashflow, to the Swap Administrator for payment to the Swap Provider, any Swap Termination Payments due to a Swap Provider Trigger Event owed by the Trust Fund;

(G)              from any remaining Excess Cashflow, to the Class CE Interest and Class CE Certificates, an amount equal to the Class CE Distribution Amount reduced by amounts distributed in clauses (C) and (D) above; and

(H)              any remaining amounts to each of the Class R-1, Class R-2, Class R-3 and Class RX Certificates, based on the related REMIC in which such amounts remain.

On each Distribution Date, all amounts in respect of Prepayment Charges shall be distributed to the Holders of the Class P Interest and the Class P Certificates, provided that such distributions shall not be in reduction of the principal balance thereof.  On the Distribution Date immediately following the expiration of the latest Prepayment Charge term as identified on the Mortgage Loan Schedule, any amount on deposit in the Class P Certificate Account will be distributed to the Holders of the Class P Interest and the Class P Certificates in reduction of the Certificate Principal Balance thereof.

In addition, notwithstanding the foregoing, on any Distribution Date after the Distribution Date on which the Certificate Principal Balance of a Class of Class A Certificates or Class M Certificates has been reduced to zero, that Class of Certificates will be retired and will no longer be entitled to distributions, including distributions in respect of Prepayment Interest Shortfalls or Basis Risk Shortfall Carry Forward Amounts.

(b)        In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such funds into the Protected Account pursuant to Section 4.01(b)(iii). 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 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 Certificates pursuant to Section 5.05; provided, however, to the extent that no reductions to a Certificate Principal Balance of any Class of Certificates currently exists as the result of a prior allocation of a Realized Loss, such Subsequent Recoveries
will be applied as Excess Spread. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 5.05, and so on. 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 Certificate of such Class in accordance with its respective Percentage Interest.

 

 

(c)        Subject to Section 10.02 hereof respecting the final distribution, on each Distribution Date the Trustee shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such Holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Trustee at least 5 Business Days prior to the related Record Date, or, if not, by check mailed by first class mail to such Certificateholder at the address of such Holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds.

(d)        On or before 5:00 p.m. Eastern time on the fifth Business Day immediately preceding each Distribution Date, the Master Servicer shall deliver a report to the Trustee in electronic form (or by such other means as the Master Servicer and the Trustee may agree from time to time) containing such data and information, as agreed to by the Master Servicer and the Trustee such as to permit the Trustee to prepare the Monthly Statement to Certificateholders and to make the required distributions for the related Distribution Date.

	
            Section 5.05
 	
            Allocation of Realized Losses.  
 

(a)        All Realized Losses on the Mortgage Loans allocated to any REMIC II Regular Interest pursuant to Section 5.05(c) on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date as follows:  first, to Excess Spread as part of the payment in respect of the Extra Principal Distribution amount for such Distribution Date; second, to the Class CE Interest and Class CE Certificates, until the Certificate Principal Balance or Uncertificated Principal Balance thereof, as applicable, has been reduced to zero; third, to the Class M-8 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fourth, to the Class M-7 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; fifth, to the Class M-6 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; sixth, to the Class M-5 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; seventh, to the Class M-4 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eighth, to the Class M-3 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; ninth, to the Class M-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; tenth, to the Class M-1 Certificates, until the Certificate Principal Balance thereof has been reduced to zero; eleventh, to the related Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced to zero; and twelfth, to the unrelated Class or Classes of Class A Certificates, on a pro rata basis, until the Certificate Principal Balances thereof have been reduced
to zero; provided, however, any such Realized Losses otherwise allocable to the Class II-A-1 Certificates shall be allocated first to the Class II-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and then to the Class II-A-1 Certificates, any such Realized Losses otherwise allocable to the Class III-A-1 Certificates shall be allocated first to the Class III-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and then to the Class III-A-1 Certificates, and any such Realized Losses otherwise allocable to the Class IV-A-1 Certificates shall be allocated first to the Class IV-A-2 Certificates, until the Certificate Principal Balance thereof has been reduced to zero, and then to the Class IV-A-1 Certificates.  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.

(b)        Any allocation of Realized Losses to a Class of Certificates 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 Interest and Class CE Certificates shall be made by reducing the amount otherwise payable in respect thereof pursuant to clause (G) of Section 5.04(a)(4). No allocations of any Realized Losses shall be made to the Certificate Principal Balance or Uncertificated Principal Balance, as applicable, of the Class P Interest and the Class P Certificates.

Notwithstanding the foregoing, no such allocation of any Realized Loss shall be made on a Distribution Date to any Class of Certificates to the extent that such allocation would result in the reduction of the aggregate Certificate Principal Balance of all the Certificates as of such Distribution Date, after giving effect to all distributions and prior allocations of Realized Losses on the Mortgage Loans on such date, to an amount less than the aggregate Stated Principal Balance of all of the Mortgage Loans as of the first day of the month of such Distribution Date (such limitation, the “Loss Allocation Limitation”).  In addition in no event will the Certificate Principal Balance of any Certificate be reduced more than once in respect of any particular amount both (i) allocable to such Certificate in respect of Realized Losses and (ii) payable as principal to the Holder of such
Certificate from Remaining Excess Spread.

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.

(c)        (i) All Realized Losses on the Group I Loans shall be allocated on each Distribution Date to REMIC I Regular Interest I-1-A through REMIC I Regular Interest I-60-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 Loans shall be allocated on each Distribution Date to REMIC I Regular Interest II-1-A through REMIC I Regular Interest II-60-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 III Loans shall be allocated on each Distribution Date to REMIC I Regular Interest III-1-A through REMIC I Regular Interest III-60-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 IV Loans shall be allocated on each Distribution Date to REMIC I Regular Interest IV-1-A through REMIC I Regular Interest IV-60-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 Percentage of all Realized Losses on the Mortgage Loans (without duplication of losses allocated pursuant to Section 1.02) shall be allocated by the Trustee on each Distribution Date to the following REMIC II Regular Interests in the specified percentages, as follows:  first, to Uncertificated Accrued 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 Principal 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 Principal Balances of REMIC II Regular
Interest AA, REMIC II Regular Interest M-8 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-8 has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-7 and REMIC II Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-7 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC II Regular Interest AA, REMIC II Regular Interest M-6 and REMIC I Regular Interest ZZ, 98.00%, 1.00% and 1.00%, respectively, until the Uncertificated Principal Balance of REMIC II Regular Interest M-6 has been reduced to zero; sixth, to the Uncertificated Principal 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
Principal Balance of REMIC II Regular Interest M-5 has been reduced to zero; seventh, to the Uncertificated Principal 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 Principal Balance of REMIC II Regular Interest M-4 has been reduced to zero; eighth, to the Uncertificated Principal 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 Principal Balance of REMIC II Regular Interest M-3 has been reduced to zero; ninth, to the Uncertificated Principal 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 Principal Balance of REMIC II Regular Interest M-2 has been reduced to zero; tenth, to the Uncertificated Principal 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 Principal Balance of REMIC II Regular Interest M-1 has been reduced to zero; eleventh, with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the related REMIC II Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, III-A-1, III-A-2, IV-A-1 and IV-A-2, 1.00% pro rata, and to the 

 

 

Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, Class III-A-1, Class III-A-2, IV-A-1 and IV-A-2 have been reduced to zero; and twelfth, with respect to any Realized Losses on the Mortgage Loans, to the Uncertificated Principal Balance of REMIC II Regular Interest AA, 98.00%, to the Uncertificated Principal Balances of the unrelated REMIC II Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, III-A-1, III-A-2, IV-A-1 and IV-A-2, 1.00% pro rata, and to the Uncertificated Principal Balance of REMIC II Regular Interest ZZ, 1.00%, until the Uncertificated Principal Balances of such REMIC II Regular Interests I-A-1, I-A-2, I-A-3, II-A-1, II-A-2, Class III-A-1, Class III-A-2, IV-A-1 and IV-A-2 have been
reduced to zero; provided, however, any such Realized Losses otherwise allocable to REMIC II Regular Interest II-A-1 shall be allocated first to REMIC II Regular Interest II-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to REMIC II Regular Interest II-A-1, any such Realized Losses otherwise allocable to REMIC II Regular Interest III-A-1 shall be allocated first to REMIC II Regular Interest III-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to REMIC II Regular Interest III-A-1, and any such Realized Losses otherwise allocable to REMIC II Regular Interest IV-A-1 shall be allocated first to REMIC II Regular Interest IV-A-2, until the Uncertificated Principal Balance thereof has been reduced to zero, and then to REMIC II Regular Interest IV-A-1.

(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 Principal Balance of each REMIC II Regular Interest ending with the designation “B” 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 “A” so that the Uncertificated Principal 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 Balances of the Class A Certificates related to such 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 5.06
 	
            Monthly Statements to Certificateholders.  
 

(a)        Not later than each Distribution Date, the Trustee shall prepare and make available to each Holder of Certificates, the Master Servicer and the Depositor a statement setting forth for the Certificates:

(i)         the amount of the related distribution to Holders of each Class allocable to principal, separately identifying (A) the aggregate amount of any Principal Prepayments included therein, (B) the aggregate of all scheduled payments of principal included therein and (C) the Extra Principal Distribution Amount (if any);

 

 

(ii)         the amount of such distribution to Holders of each Class A Certificates and Class M Certificates allocable to interest and the portion thereof, if any, provided by the Swap Administration Agreement;

(iii)        the Interest Carry Forward Amount and any Basis Risk Shortfall Carry Forward Amount for each Class of Certificates;

(iv)        the Certificate Principal Balance or Certificate Notional Amount, as applicable, of each Class after giving effect (i) to all distributions allocable to principal on such Distribution Date and (ii) the allocation of any Applied Realized Loss Amounts for such Distribution Date;

(v)        for each Loan Group, the aggregate of the Stated Principal Balance of (A) all of the Mortgage Loans in such Loan Group, (B) the first lien Mortgage Loans in such Loan Group, (C) the second lien Mortgage Loans in such Loan Group, and (D) the Adjustable Rate Mortgage Loans in such Loan Group, for the following Distribution Date;

(vi)        the related amount of the Servicing Fees paid to or retained by the Master Servicer for the related Due Period;

(vii)       the Pass-Through Rate for each Class of Class A Certificates and Class M Certificates with respect to the current Accrual Period, and, if applicable, whether such Pass-Through Rate was limited by the applicable Net Rate Cap;

(viii)      the amount of Advances included in the distribution on such Distribution Date;

	
            (ix)
 	
            the cumulative amount of Applied Realized Loss Amounts to date;
 

(x)        the number and aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group (A) Delinquent (exclusive of Mortgage Loans in foreclosure and bankruptcy) (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, (B) in foreclosure and delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days and (C) in bankruptcy and delinquent (1) 31 to 60 days, (2) 61 to 90 days and (3) 91 or more days, in each case as of the close of business on the last day of the calendar month preceding such Distribution Date and separately identifying such information for the (1) first lien Mortgage Loans, (2) second lien Mortgage Loans, and (3) Adjustable Rate Mortgage Loans, in each such Loan Group;

(xi)        with respect to any Mortgage Loan that was liquidated during the preceding calendar month, the loan number and Stated Principal Balance of, and Realized Loss on, such Mortgage Loan as of the close of business on the Determination Date preceding such Distribution Date;

(xii)       the total number and principal balance of any real estate owned or REO Properties as of the close of business on the Determination Date preceding such Distribution Date;

 

 

(xiii)      the three month rolling average of the percent equivalent of a fraction, the numerator of which is the aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group that are 60 days or more Delinquent or are in bankruptcy or foreclosure or are REO Properties, and the denominator of which is the aggregate Stated Principal Balance of all of the Mortgage Loans in such Loan Group, in each case as of the close of business on the last day of the calendar month preceding such Distribution Date and separately identifying such information for the (1) first lien Mortgage Loans, (2) second lien Mortgage Loans, and (3) Adjustable Rate Mortgage Loans, in each such Loan Group;

(xiv)      the Realized Losses during the related Prepayment Period and the cumulative Realized Losses through the end of the preceding month;

	
            (xv)
 	
            whether a Trigger Event exists;
 

(xvi)      whether a Group II Sequential Trigger Event, a Group III Sequential Trigger Event, or a Group IV Sequential Trigger Event exists;

(xvii)     the amount of any Net Swap Payment payable to the Swap Administrator, any Net Swap Payment payable to the Swap Provider, any Swap Termination Payment payable to the Swap Administrator and any Swap Termination Payment payable to the Swap Provider; and

(xviii)    the amount of the distribution made on such Distribution Date to the Holders of the Class P Certificates allocable to Prepayment Charges.

The Trustee may make the foregoing Monthly Statement (and, at its option, any additional files containing the same information in an alternative format) available each month to Certificateholders via the Trustee’s internet website. The Trustee’s internet website shall initially be located at “www.etrustee.net”. Assistance in using the website can be obtained by calling the Trustee’s customer service desk at (312) 904-6299. 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 Trustee may change the way Monthly Statements are distributed in order to make such distributions more convenient or more accessible to the above parties.

(b)        The Trustee’s responsibility for making the above information available to the Certificateholders is limited to the availability, timeliness and accuracy of the information derived from the Master Servicer. The Trustee will make available a copy of each statement provided pursuant to this Section 5.06 to each Rating Agency.

(c)        Within a reasonable period of time after the end of each calendar year, the Trustee shall cause to be furnished upon request to each Person who at any time during the calendar year was a Certificateholder, a statement containing the information set forth in clauses (a)(i) and (a)(ii) of this Section 5.06 aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder. Such obligation of the Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Trustee pursuant to any requirements of the Code as from time to time in effect.

 

 

(d)        Upon filing with the Internal Revenue Service, the Trustee shall furnish to the Holders of the Residual Certificates the applicable Form 1066 and each applicable Form 1066Q and shall respond promptly to written requests made not more frequently than quarterly by any Holder of a Residual Certificate with respect to the following matters:

(i)         The original projected principal and interest cash flows on the Closing Date on each Class of regular and residual interests created hereunder and on the Mortgage Loans, based on the Prepayment Assumption;

(ii)         The projected remaining principal and interest cash flows as of the end of any calendar quarter with respect to each class of Regular Interests and Residual Interests created hereunder and the Mortgage Loans, based on the Prepayment Assumption;

(iii)        The applicable Prepayment Assumption and any interest rate assumptions used in determining the projected principal and interest cash flows described above;

(iv)        The original issue discount (or, in the case of the Mortgage Loans, market discount) or premium accrued or amortized through the end of such calendar quarter with respect to each class of Regular Interests or Residual Interests created hereunder and to the Mortgage Loans, together with each constant yield to maturity used in computing the same;

(v)        The treatment of Realized Losses with respect to the Mortgage Loans or the Regular Interests created hereunder, including the timing and amount of any cancellation of indebtedness income of a REMIC with respect to such Regular Interests or bad debt deductions claimed with respect to the Mortgage Loans;

	
            (vi)
 	
            The amount and timing of any non-interest expenses of a REMIC; and
 

(vii)       Any taxes (including penalties and interest) imposed on the REMIC, including, without limitation, taxes on “prohibited transactions,” “contributions” or “net income from foreclosure property” or state or local income or franchise taxes.

The information pursuant to clauses (i), (ii), (iii) and (iv) above shall be provided by the Depositor pursuant to Section 9.12.

	
            Section 5.07
 	
            REMIC Designations and REMIC Distributions.  
 

(a)        The Trustee shall elect that each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI shall be treated as a REMIC under Section 860D of the Code. Any inconsistencies or ambiguities in this Agreement or in the administration of this Agreement shall be resolved in a manner that preserves the validity of such REMIC elections. The assets of REMIC I shall include the Mortgage Loans and all interest owing in respect of and principal due thereon, the Distribution Account, the Protected Account, any REO Property, any proceeds of the foregoing and any other assets subject to this Agreement (other than the Reserve Fund, the Swap Agreement, the Swap Account and any rights or obligations in respect of the Swap Administration Agreement).  The REMIC I Regular Interests shall constitute the assets of REMIC II.  The REMIC II Regular
Interests shall constitute the assets of REMIC III. The Class 

 

 

CE Interest shall constitute the assets of REMIC IV.  The Class P Interest shall constitute the assets of REMIC V. The Class IO Interest shall constitute the assets of REMIC VI. 

(b)        (1)        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 REMIC I Regular Interests I-1-A through I-60-B or withdrawn from the Distribution Account and distributed to the Holders of the Class R-1 Certificates, as the case may be:

(i)         to Holders of each REMIC I Regular Interest I-1-A through I-60-B, pro rata, in an amount equal to (A) Uncertificated Accrued 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, payments of principal shall be allocated as follows: to REMIC I Regular interests I-1-A through I-60-B starting with the lowest numerical denomination until the Uncertificated Principal 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)        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 REMIC I Regular Interests II-1-A through II-60-B or withdrawn from the Distribution Account and distributed to the Holders of the Class R-1 Certificates, as the case may be:

(i)         to the Holders of each REMIC I Regular Interest II-1-A through II-60-B, pro rata, in an amount equal to (A) Uncertificated Accrued 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, payments of principal shall be allocated as follows: to REMIC I Regular interests II-1-A through II-60-B starting with the lowest numerical denomination until the Uncertificated Principal 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)        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 REMIC I Regular Interests III-1-A through III-60-B or withdrawn from the Distribution Account and distributed to the Holders of the Class R-1 Certificates, as the case may be:

(i)         to the Holders of each REMIC I Regular Interest III-1-A through III-60-B, pro rata, in an amount equal to (A) Uncertificated Accrued 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, payments of principal shall be allocated as follows: to REMIC I Regular Interests III-1-A through III-60-B starting with the lowest numerical denomination until the Uncertificated Principal 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.  

(4)        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 REMIC I Regular Interests IV-1-A through IV-60-B or withdrawn from the Distribution Account and distributed to the Holders of the Class R-1 Certificates, as the case may be:

(i)         to the Holders of each REMIC I Regular Interest IV-1-A through IV-60-B, pro rata, in an amount equal to (A) Uncertificated Accrued 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, payments of principal shall be allocated as follows: to REMIC I Regular Interests IV-1-A through IV-60-B starting with the lowest numerical denomination until the Uncertificated Principal 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.

(5)        On each Distribution Date, amounts representing Prepayment Charges on the Mortgage loans shall be deemed distributed to REMIC I Regular Interest P, provided that such amounts shall not reduce the Uncertificated Principal Balance of REMIC I Regular Interest P.  On the Distribution Date immediately following the expiration of the latest Prepayment Charge term as identified on the Mortgage Loan Schedule, $100 shall be deemed distributed in respect of REMIC I Regular Interest P in reduction of the Uncertificated Principal Balance thereof.  

(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-2 Certificates, as the case may be:

(i)         to the Holders of REMIC II Regular Interest IO, in an amount equal to (A) Uncertificated Accrued Interest for such REMIC II Regular Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates; 

(ii)         to the extent of the REMIC II Marker Allocation Percentage of the Interest Funds remaining after the distributions pursuant to clause (i), to the Holders of each REMIC II Regular Interest (other than REMIC II Regular Interests IO, 1A, 1B, 2A, 2B, 

 

 

3A, 3B, 4A, 4B, XX and P) pro rata, in an amount equal to (A) Uncertificated Accrued Interest for such REMIC II Regular Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates. Amounts payable as Uncertificated Accrued 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 Uncertificated Accrued Interest Deferral Amount, and such amount will be payable to the Holders of REMIC II Regular Interest I-A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II
Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7 and REMIC II Regular Interest M-8  in the same proportion as the Extra Principal Distribution Amount is allocated to the Corresponding Certificates, and the Uncertificated Principal Balance of REMIC II Regular Interest ZZ shall be increased by such amount;

(iii)        to the extent of the REMIC II Sub WAC Allocation Percentage of the Interest Funds remaining after the distribution pursuant to clause (i), to the Holders of REMIC II Regular Interest 1A, REMIC II Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II Regular Interest 3B, REMIC II Regular Interest 4A, REMIC II Regular Interest 4B and REMIC II Regular Interest XX, pro rata, an amount equal to (A) the Uncertificated Accrued Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates;

(iv)        to the Holders of REMIC II Regular Interests (other than REMIC II Regular Interests IO, 1A, 1B, 2A, 2B, 3A, 3B, 4A, 4B, XX and P) in an amount equal to the REMIC II Marker Allocation Percentage of the remainder of the Interest Funds and Principal Funds for all Loan Groups for such Distribution Date after the distributions made pursuant to clauses (i), (ii) and (iii) above, allocated as follows:

(A)              98% of such remainder to the Holders of REMIC II Regular Interest AA, until the Uncertificated Principal Balance of such REMIC II Regular Interest is reduced to zero;

(B)              2% of such remainder, first, to the Holders of REMIC II Regular Interest I A-1, REMIC II Regular Interest I-A-2, REMIC II Regular Interest I-A-3, REMIC II Regular Interest II-A-1, REMIC II Regular Interest II-A-2, REMIC II Regular Interest III-A-1, REMIC II Regular Interest III-A-2, REMIC II Regular Interest IV-A-1, REMIC II Regular Interest IV-A-2, 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 M-7 and REMIC II Regular Interest M-8, in an 

 

 

aggregate amount equal to 1% of and in the same proportion as principal payments are allocated to the Corresponding Certificates, until the Uncertificated Principal 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 Principal Balance of such REMIC II Regular Interest is reduced to zero; then

(C)              any remaining amount to the Holders of the Class R-2  Certificates;

(v)              to the Holders of REMIC II Regular Interest 1A, REMIC II Regular Interest 1B, REMIC II Regular Interest 2A, REMIC II Regular Interest 2B, REMIC II Regular Interest 3A, REMIC II Regular Interest 3B, REMIC II Regular Interest 4A, REMIC II Regular Interest 4B and REMIC II Regular Interest XX, in an amount equal to the REMIC II Sub WAC Allocation Percentage of the remainder of the Interest Funds and Principal Funds for all Loan Groups for such Distribution Date after the distributions made pursuant to clauses (i), (ii) and (iii) above, first, so as to keep the Uncertificated Principal Balance of each REMIC II Regular Interest ending with the designation “B” 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 “A,” so that the Uncertificated Principal 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 Balances of the Class A Certificates related to such 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 amount to REMIC II Regular Interest XX; and 

(vi)              the Holders of REMIC II Regular Interest P, 100% of the amounts deemed distributed on REMIC I Regular Interest P.  

(d)        On each Distribution Date, an amount equal to the amounts distributed pursuant to Sections 5.04(a)(4)(C), (D) and (G) on such date shall be deemed distributed from REMIC III to REMIC IV in respect of the Class CE Distribution Amount distributable to the Class CE Interest.

(e)        On each Distribution Date, 100% of the amounts deemed distributed on REMIC II Regular Interest P shall be deemed distributed by REMIC III to REMIC V  in respect of the Class P Interest.

(f)         On each Distribution Date, 100% of the amounts deemed distributed on REMIC II Regular Interest IO shall be deemed distributed by REMIC III to REMIC VI in respect of the Class IO Interest.  Such amounts shall be deemed distributed by REMIC VI to the Swap Administrator for deposit into the Swap Account.  

 

 

 

ARTICLE VI

 

THE CERTIFICATES

	
            Section 6.01
 	
            The Certificates.  
 

The Certificates shall be substantially in the forms attached hereto as Exhibits A-1 through A-5. The Certificates shall be issuable in registered form, in the minimum dollar denominations, integral dollar multiples in excess thereof (except that one Certificate of each Class may be issued in a different amount which must be in excess of the applicable minimum dollar denomination) and aggregate dollar denominations as set forth in the following table:

	
            
Class
 
 	
            
Minimum Denomination
 
 	
            
Integral Multiple in Excess of Minimum
 
 	
            
Original Certificate Principal Balance
 
 
	
            I-A-1
 	
            $              25,000
 	
            $1.00
 	
            $           112,663,000.00
 
	
            I-A-2
 	
            $              25,000
 	
            $1.00
 	
            $             44,863,000.00
 
	
            I-A-3
 	
            $              25,000
 	
            $1.00
 	
            $             10,624,000.00
 
	
            II-A-1
 	
            $              25,000
 	
            $1.00
 	
            $             18,251,000.00
 
	
            II-A-2
 	
            $              25,000
 	
            $1.00
 	
            $               4,563,000.00
 
	
            III-A-1
 	
            $              25,000
 	
            $1.00
 	
            $             96,106,000.00
 
	
            III-A-2
 	
            $              25,000
 	
            $1.00
 	
            $             24,027,000.00
 
	
            IV-A-1
 	
            $              25,000
 	
            $1.00
 	
            $           101,264,000.00
 
	
            IV-A-2
 	
            $              25,000
 	
            $1.00
 	
            $             25,316,000.00
 
	
            M-1
 	
            $              25,000
 	
            $1.00
 	
            $             42,466,000.00
 
	
            M-2
 	
            $              25,000
 	
            $1.00
 	
            $             32,840,000.00
 
	
            M-3
 	
            $              25,000
 	
            $1.00
 	
            $               9,059,000.00
 
	
            M-4
 	
            $              25,000
 	
            $1.00
 	
            $               7,927,000.00
 
	
            M-5
 	
            $              25,000
 	
            $1.00
 	
            $               7,927,000.00
 
	
            M-6
 	
            $              25,000
 	
            $1.00
 	
            $               6,228,000.00
 
	
            M-7
 	
            $              25,000
 	
            $1.00
 	
            $               4,813,000.00
 
	
            M-8
 	
            $              25,000
 	
            $1.00
 	
            $               5,662,000.00
 
	
            CE
 	
            10%
 	
            1%
 	
            $          566,206,954.58*
 
	
            P
 	
            100
 	
            N/A
 	
            $                        100.00
 
	
            R-1
 	
            100%
 	
            N/A
 	
            N/A
 
	
            R-2
 	
            100%
 	
            N/A
 	
            N/A
 
	
            R-3
 	
            100%
 	
            N/A
 	
            N/A
 
	
            RX
 	
            100%
 	
            N/A
 	
            N/A
 

 

* This is a Notional Amount.

 

The Certificates shall be executed by manual or facsimile signature on behalf of the Trustee by an authorized officer. Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures were affixed, authorized to sign on behalf of the Trustee shall bind the Trustee, notwithstanding that such individuals or any of them have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of such authentication and delivery. No Certificate shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless there appears on such Certificate the countersignature of the Trustee by manual signature, and such countersignature upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly countersigned and delivered
hereunder. All Certificates shall be dated the date of their countersignature. On the Closing Date, the Trustee shall authenticate the Certificates to be issued at the written direction of the Depositor, or any affiliate thereof.

The Depositor shall provide, or cause to be provided, to the Trustee on a continuous basis, an adequate inventory of Certificates to facilitate transfers.

 

 

Section 6.02     Certificate Register; Registration of Transfer and Exchange of Certificates.  

(a)        The Trustee shall maintain, or cause to be maintained in accordance with the provisions of Section 6.09 hereof, a Certificate Register for the Trust Fund in which, subject to the provisions of subsections (b) and (c) below and to such reasonable regulations as it may prescribe, the Trustee shall provide for the registration of Certificates and of Transfers and exchanges of Certificates as herein provided. Upon surrender for registration of Transfer of any Certificate, the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Certificates of the same Class and of like aggregate Percentage Interest.

At the option of a Certificateholder, Certificates may be exchanged for other Certificates of the same Class in authorized denominations and evidencing the same aggregate Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency of the Trustee. Whenever any Certificates are so surrendered for exchange, the Trustee shall execute, authenticate, and deliver the Certificates that the Certificateholder making the exchange is entitled to receive. Every Certificate presented or surrendered for registration of Transfer or exchange shall be accompanied by a written instrument of Transfer in form satisfactory to the Trustee duly executed by the Holder thereof or his attorney duly authorized in writing.

No service charge to the Certificateholders shall be made for any registration of Transfer or exchange of Certificates, but 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 may be required.

All Certificates surrendered for registration of Transfer or exchange shall be canceled and subsequently destroyed by the Trustee in accordance with the Trustee’s customary procedures.

(b)        Subject to Subsection 6.07 and, in the case of any Global Certificate or Private Certificate upon the satisfaction of the conditions set forth below, upon surrender for registration of transfer of any Certificate at any office or agency of the Trustee maintained for such purpose, the Trustee shall sign, countersign and shall deliver, in the name of the designated transferee or transferees, a new Certificate of a like Class and aggregate Percentage Interest, but bearing a different number.

(c)        Subject to Subsection 6.02(g), so long as a Global Certificate of such Class is outstanding and is held by or on behalf of the Depository, transfers of beneficial interests in such Global Certificate, or transfers by Holders of Individual Certificates of such Class to transferees that take delivery in the form of beneficial interests in the Global Certificate, may be made only in accordance with this Subsection 6.02(c) and in accordance with the rules of the Depository:

(i)         In the case of a beneficial interest in the Global Certificate being transferred to an Institutional Accredited Investor, such transferee shall be required to take delivery in the form of an Individual Certificate or Certificates and the Trustee shall register such transfer only upon compliance with the provisions of Subsection 6.02(h).

 

 

(ii)               In the case of a beneficial interest in a Class of Global Certificates being transferred to a transferee that takes delivery in the form of an Individual Certificate or Certificates of such Class, except as set forth in clause (i) above, the Trustee shall register such transfer only upon compliance with the provisions of Subsection 6.02(h).

(iii)              In the case of an Individual Certificate of a Class being transferred to a transferee that takes delivery in the form of a beneficial interest in a Global Certificate of such Class, the Trustee shall register such transfer if the transferee has provided the Trustee with a Rule 144A and Related Matters Certificate or comparable evidence as to its QIB status.

(iv)              No restrictions shall apply with respect to the transfer or registration of transfer of a beneficial interest in the Global Certificate of a Class to a transferee that takes delivery in the form of a beneficial interest in the Global Certificate of such Class; provided that each such transferee shall be deemed to have made such representations and warranties contained in the Rule 144A and Related Matters Certificate as are sufficient to establish that it is a QIB.

(d)        Subject to Subsection 6.02(g), an exchange of a beneficial interest in a Global Certificate of a Class for an Individual Certificate or Certificates of such Class, an exchange of an Individual Certificate or Certificates of a Class for a beneficial interest in the Global Certificate of such Class and an exchange of an Individual Certificate or Certificates of a Class for another Individual Certificate or Certificates of such Class (in each case, whether or not such exchange is made in anticipation of subsequent transfer, and, in the case of the Global Certificate of such Class, so long as such Certificate is outstanding and is held by or on behalf of the Depository) may be made only in accordance with this Subsection 6.02(d) and in accordance with the rules of the Depository:

(i)         A Holder of a beneficial interest in a Global Certificate of a Class may at any time exchange such beneficial interest for an Individual Certificate or Certificates of such Class.

(ii)               A Holder of an Individual Certificate or Certificates of a Class may exchange such Certificate or Certificates for a beneficial interest in the Global Certificate of such Class if such holder furnishes to the Trustee a Rule 144A and Related Matters Certificate or comparable evidence as to its QIB status.

(iii)              A Holder of an Individual Certificate of a Class may exchange such Certificate for an equal aggregate principal amount of Individual Certificates of such Class in different authorized denominations without any certification.

(e)        (i)         Upon acceptance for exchange or transfer of an Individual Certificate of a Class for a beneficial interest in a Global Certificate of such Class as provided herein, the Trustee shall cancel such Individual Certificate and shall (or shall request the Depository to) endorse on the schedule affixed to the applicable Global Certificate (or on a continuation of such schedule affixed to the Global Certificate and made a part thereof) or otherwise make in its 

 

 

books and records an appropriate notation evidencing the date of such exchange or transfer and an increase in the certificate balance of the Global Certificate equal to the certificate balance of such Individual Certificate exchanged or transferred therefor.

(ii)         Upon acceptance for exchange or transfer of a beneficial interest in a Global Certificate of a Class for an Individual Certificate of such Class as provided herein, the Trustee shall (or shall request the Depository to) endorse on the schedule affixed to such Global Certificate (or on a continuation of such schedule affixed to such Global Certificate and made a part thereof) or otherwise make in its books and records an appropriate notation evidencing the date of such exchange or transfer and a decrease in the certificate balance of such Global Certificate equal to the certificate balance of such Individual Certificate issued in exchange therefor or upon transfer thereof.

(f)         Any Individual Certificate issued in exchange for or upon transfer of another Individual Certificate or of a beneficial interest in a Global Certificate shall bear the applicable legends set forth in Exhibit A-2.

(g)        Subject to the restrictions on transfer and exchange set forth in this Section 6.02, the Holder of any Individual Certificate may transfer or exchange the same in whole or in part (in an initial certificate balance equal to the minimum authorized denomination set forth in Section 6.01 above or any integral multiple of $1.00 in excess thereof) by surrendering such Certificate at the Corporate Trust Office, or at the office of any transfer agent, together with an executed instrument of assignment and transfer satisfactory in form and substance to the Trustee in the case of transfer and a written request for exchange in the case of exchange. The Holder of a beneficial interest in a Global Certificate may, subject to the rules and procedures of the Depository, cause the Depository (or its nominee) to notify the Trustee in writing of a
request for transfer or exchange of such beneficial interest for an Individual Certificate or Certificates. Following a proper request for transfer or exchange, the Trustee shall, within five Business Days of such request made at the Corporate Trust Office, sign, countersign and deliver at the Corporate Trust Office, to the transferee (in the case of transfer) or Holder (in the case of exchange) or send by first class mail at the risk of the transferee (in the case of transfer) or Holder (in the case of exchange) to such address as the transferee or Holder, as applicable, may request, an Individual Certificate or Certificates, as the case may require, for a like aggregate Percentage Interest and in such authorized denomination or denominations as may be requested. The presentation for transfer or exchange of any Individual Certificate shall not be valid unless made at the Corporate Trust Office by the registered Holder in person, or by a duly authorized attorney-in-fact.

(h)        No Transfer of a Private Certificate shall be made unless such Transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under the Securities Act and such state securities laws. In the event that a Transfer is to be made in reliance upon an exemption from the Securities Act and such laws, in order to assure compliance with the Securities Act and such laws, the Certificateholder desiring to effect such Transfer and such Certificateholder’s prospective transferee shall each certify to the Trustee in writing the facts surrounding the Transfer by (x)(i) the delivery to the Trustee by the Certificateholder desiring to effect such transfer of a certificate substantially in the form set forth in Exhibit D (the “Transferor 

 

 

Certificate”) and (ii) the delivery by the Certificateholder’s prospective transferee of (A) a letter in substantially the form of Exhibit E (the “Investment Letter”) if the prospective transferee is an Institutional Accredited Investor or (B) a letter in substantially the form of Exhibit F (the “Rule 144A and Related Matters Certificate”) if the prospective transferee is a QIB or (y) there shall be delivered to the Trustee an Opinion of Counsel addressed to the Trustee that such Transfer may be made pursuant to an exemption from the Securities Act, which Opinion of Counsel shall not be an expense of the Depositor, the Seller, the Master Servicer or the Trustee. Notwithstanding the provisions of the immediately preceding sentence, no restrictions shall apply with respect to the transfer or registration of transfer of a beneficial interest in any Certificate that is a Global
Certificate of a Class to a transferee that takes delivery in the form of a beneficial interest in the Global Certificate of such Class provided that each such transferee shall be deemed to have made such representations and warranties contained in the Rule 144A and Related Matters Certificate as are sufficient to establish that it is a QIB.  The Depositor shall provide to any Holder of a Private Certificate and any prospective transferee designated by any such Holder, information regarding the related Certificates and the Mortgage Loans and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for Transfer of any such Certificate without registration thereof under the Securities Act pursuant to the registration exemption provided by Rule 144A. The Trustee and the Master Servicer shall cooperate with the Depositor in providing the Rule 144A information referenced in the preceding sentence, including providing to the Depositor
such information regarding the Certificates, the Mortgage Loans and other matters regarding the Trust Fund as the Depositor shall reasonably request to meet its obligation under the preceding sentence. Each Holder of a Private Certificate desiring to effect such Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor, the Seller and the Master 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.

Prior to the termination of the Swap Agreement, no Transfer of a Class A Certificate or Class M Certificate (other than a Class M-7 Certificate or Class M-8 Certificate) shall be made unless either (i) the Trustee and the Master Servicer shall have received a representation from the transferee of such Certificate acceptable to and in form and substance satisfactory to the Trustee and the Master Servicer, to the effect that such transferee is not an employee benefit plan subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code (either a “Plan”), or a Person acting on behalf of a Plan or using the assets a Plan, or (ii) the transferee provides a representation, or is deemed to represent in the case of the Global Certificate that the proposed transfer or holding of such Certificate are eligible for exemptive relief under an individual or class prohibited
transaction exemption, including, but not limited to, Prohibited Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23.

Subsequent to the termination of the Swap Agreement, each beneficial owner of a Class M Certificate (other than a Class M-7 Certificate or Class M-8 Certificate) or any interest therein shall be deemed to have represented, by virtue of its acquisition or holding of that certificate or interest therein, that either (i) it is not a Plan or investing with “Plan Assets”, (ii) it has acquired and is holding such certificate in reliance on the Exemption, and that it understands that there are certain conditions to the availability of the Exemption, including that the certificate must be rated, at the time of purchase, not lower than “BBB-” (or its equivalent) by S&P, Fitch or Moody’s, and the certificate is so rated or (iii) (1) it is an insurance company, (2) the source of funds used to acquire or hold the certificate or interest therein is an “insurance company general 

 

 

account,” as such term is defined in PTE 95-60, and (3) the conditions in Sections I and III of PTE 95-60 have been satisfied.

Neither the Trustee nor the Master Servicer will be required to monitor, determine or inquire as to compliance with the transfer restrictions with respect to the Global Certificates. Any attempted or purported transfer of any Certificate in violation of the provisions of Subsections (a) or (b) above shall be void ab initio and such Certificate shall be considered to have been held continuously by the prior permitted Certificateholder. Any transferor of any Certificate in violation of such provisions, shall indemnify and hold harmless the Trustee and the Master Servicer from and against any and all liabilities, claims, costs or expenses incurred by the Trustee or the Master Servicer as a result of such attempted or purported transfer. The Trustee shall have no liability for transfer of any such Global Certificates in or through book-entry facilities of any Depository or between or among
Depository Participants or Certificate Owners made in violation of the transfer restrictions set forth herein.

No Transfer of a Class CE, Class P, Residual, Class M-7 or Class M-8 Certificate shall be made unless either (i) the transferee of such Certificate provides a representation, or is deemed to represent in the case of a Global Certificate, to the Trustee and the Master Servicer acceptable to and in form and substance satisfactory to the Trustee and the Master Servicer, to the effect that such transferee is not a Plan, or a Person acting on behalf of a Plan or using the assets of a Plan, or (ii) in the case of any such Certificate presented for registration in the name of a Plan, or a trustee of a Plan or any other person acting on behalf of a Plan, the Trustee shall have received an Opinion of Counsel for the benefit of the Trustee and the Master Servicer and on which they may rely, satisfactory to the Trustee, to the effect that the purchase and holding of such Certificate are permissible
under applicable law, will not result in any prohibited transactions under ERISA or Section 4975 of the Code and will not subject the Trustee, the Master Servicer or the Depositor to any obligation in addition to those expressly undertaken in this Agreement, which Opinion of Counsel shall not be an expense of the Trustee, the Master Servicer or the Depositor, or (iii) in the case of a Class M-7 Certificate or Class M-8 Certificate, the transferee provides a representation, or is deemed to represent in the case of the Global Certificate, or an opinion of counsel to the effect that the proposed transfer or holding of such Class M-7 Certificate or Class M-8 Certificate and the servicing, management and operation of the Trust and its assets:  (I) will not result in any prohibited transaction which is not covered under PTE 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (II) will not give rise to any obligation on the part of the Depositor, the Master Servicer or the Trustee in
addition to those expressly undertaken in this Agreement. Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA Restricted Certificate to or on behalf of a Plan without the delivery of the Opinion of Counsel as described above shall be void and of no effect; provided that the restriction set forth in this sentence shall not be applicable if there has been delivered to the Trustee an Opinion of Counsel meeting the requirements of clause (ii) of the first sentence of this paragraph. Neither the Trustee nor the Master Servicer shall be required to monitor, determine or inquire as to compliance with the transfer restrictions with respect to any ERISA Restricted Certificate that is a Book-Entry Certificate, and neither the Trustee nor the Master Servicer shall have any liability for transfers of any such Book-Entry Certificates made through the book-entry facilities of any Depository or between or among participants of the Depository or Certificate Owners
made in violation of the transfer restrictions set forth herein. Neither the Trustee nor the Master Servicer shall be under any liability to any Person for any registration of 

 

 

transfer of any ERISA Restricted Certificate that is in fact not permitted by this Section 6.02(h) or for making any payments due on such Certificate to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement.  The Trustee shall be entitled, but not obligated, to recover from any Holder of any ERISA Restricted Certificate that was in fact a Plan or a Person acting on behalf of a Plan at the time it became a Holder or, at such subsequent time as it became a Plan or Person acting on behalf of a Plan, all payments made on such ERISA Restricted Certificate at and after either such time. Any such payments so recovered by the Trustee shall be paid and delivered by the Trustee to the last preceding Holder of such Certificate that is not a Plan or Person acting on behalf of a Plan.

(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 the rights of each Person acquiring any Ownership Interest in a Residual Certificate are expressly subject to the following provisions:

(i)         Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of any change or impending change in its status as a Permitted Transferee.

(ii)         No Ownership Interest in a Residual Certificate may be registered on the Closing Date or thereafter transferred, and the Trustee shall not register the Transfer of any Residual Certificate unless, in addition to the certificates required to be delivered to the Trustee under subparagraph (b) above, the Trustee shall have been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner or the proposed transferee in the form attached hereto as Exhibit C.

(iii)        Each Person holding or acquiring any Ownership Interest in a Residual Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person to whom such Person attempts to Transfer its Ownership Interest in a Residual Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such Person is acting as nominee, trustee or agent in connection with any Transfer of a Residual Certificate and (C) not to Transfer its Ownership Interest in a Residual Certificate or to cause the Transfer of an Ownership Interest in a Residual Certificate to any other Person if it has actual knowledge that such Person is not a Permitted Transferee.

(iv)        Any attempted or purported Transfer of any Ownership Interest in a Residual Certificate in violation of the provisions of this Section 6.02(i) shall be absolutely null and void and shall vest no rights in the purported transferee. If any purported transferee shall become a Holder of a Residual Certificate in violation of the provisions of this Section 6.02(i), then the last preceding Permitted Transferee shall be restored to all rights as Holder thereof retroactive to the date of registration of Transfer of such Residual Certificate. The Trustee shall be under no liability to any Person for any registration of Transfer of a Residual Certificate that is in fact not permitted by Section 6.02(h) and this Section 6.02(i) or for making any payments due on such Certificate to the Holder thereof or taking any other action
with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered after receipt of the related Transfer Affidavit. The Trustee shall be entitled but not obligated to recover from 

 

 

any Holder of a Residual Certificate that was in fact not a Permitted Transferee at the time it became a Holder or, at such subsequent time as it became other than a Permitted Transferee, all payments made on such Residual Certificate at and after either such time. Any such payments so recovered by the Trustee shall be paid and delivered by the Trustee to the last preceding Permitted Transferee of such Certificate.

(v)        The Master Servicer shall make available within 60 days of written request from the Trustee, all information necessary to compute any tax imposed under Section 860E(e) of the Code as a result of a Transfer of an Ownership Interest in a Residual Certificate to any Holder who is not a Permitted Transferee.

The restrictions on Transfers of a Residual Certificate set forth in this Section 6.02(i) shall cease to apply (and the applicable portions of the legend on a Residual Certificate may be deleted) with respect to Transfers occurring after delivery to the Trustee of an Opinion of Counsel addressed to the Trustee, which Opinion of Counsel shall not be an expense of the Trustee, the Seller or the Master Servicer to the effect that the elimination of such restrictions will not cause REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, as applicable, to fail to qualify as a REMIC at any time that the Certificates are outstanding or result in the imposition of any tax on the Trust Fund, a Certificateholder or another Person. Each Person holding or acquiring any Ownership Interest in a Residual Certificate hereby consents to any amendment of this Agreement that, based on an Opinion of
Counsel addressed to the Trustee and furnished to the Trustee, is reasonably necessary (a) to ensure that the record ownership of, or any beneficial interest in, a Residual Certificate is not transferred, directly or indirectly, to a Person that is not a Permitted Transferee and (b) to provide for a means to compel the Transfer of a Residual Certificate that is held by a Person that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

(j)     The preparation and delivery of all certificates and opinions referred to above in this Section 6.02 shall not be an expense of the Trust Fund, the Trustee, the Depositor, the Seller or the Master Servicer.

	
            Section 6.03
 	
            Mutilated, Destroyed, Lost or Stolen Certificates.  
 

If (a) any mutilated Certificate is surrendered to the Trustee, or the Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and of the ownership thereof and (b) there is delivered to the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trustee that such Certificate has been acquired by a bona fide purchaser, the Trustee shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor and Percentage Interest. In connection with the issuance of any new Certificate under this Section 6.03, the Trustee 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 Trustee) connected therewith. Any replacement Certificate issued pursuant to this Section 6.03 shall constitute complete and indefeasible evidence of ownership in the Trust Fund, as if originally issued, whether or not the 

 

 

lost, stolen or destroyed Certificate shall be found at any time. All Certificates surrendered to the Trustee under the terms of this Section 6.03 shall be canceled and destroyed by the Trustee in accordance with its standard procedures without liability on its part.

	
            Section 6.04
 	
            Persons Deemed Owners.  
 

The Trustee and any agent of the Trustee may treat the person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions as provided in this Agreement and for all other purposes whatsoever, and neither the Trustee nor any agent of the Trustee shall be affected by any notice to the contrary.

	
            Section 6.05
 	
            Access to List of Certificateholders’ Names and Addresses.  
 

If three or more Certificateholders (a) request such information in writing from the Trustee, (b) state that such Certificateholders desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates, and (c) provide a copy of the communication that such Certificateholders propose to transmit or if the Depositor or the Master Servicer shall request such information in writing from the Trustee, then the Trustee shall, within ten Business Days after the receipt of such request, provide the Depositor, the Master Servicer or such Certificateholders at such recipients’ expense the most recent list of the Certificateholders of the Trust Fund held by the Trustee, if any. The Depositor and every Certificateholder, by receiving and holding a Certificate, agree that the Trustee shall not be held accountable by reason of the
disclosure of any such information as to the list of the Certificateholders hereunder, regardless of the source from which such information was derived.

	
            Section 6.06
 	
            Book-Entry Certificates.  
 

The Regular Certificates (other than the Class M-7, Class M-8, Class CE and Class P Certificates), upon original issuance, shall be issued in the form of one or more typewritten Certificates representing the Book-Entry Certificates, to be delivered to the Depository by or on behalf of the Depositor. Such Certificates shall initially be registered on the Certificate Register in the name of the Depository or its nominee, and no Certificate Owner of such Certificates will receive a definitive certificate representing such Certificate Owner’s interest in such Certificates, except as provided in Section 6.08. Unless and until definitive, fully registered Certificates (“Definitive Certificates”) have been issued to the Certificate Owners of such Certificates pursuant to Section 6.08:

	
            (a)
 	
            the provisions of this Section shall be in full force and effect;
 

(b)        the Depositor and the Trustee may deal with the Depository and the Depository Participants for all purposes (including the making of distributions) as the authorized representative of the respective Certificate Owners of such Certificates;

(c)        registration of the Book-Entry Certificates may not be transferred by the Trustee except to another Depository;

(d)        the rights of the respective Certificate Owners of such Certificates shall be exercised only through the Depository and the Depository Participants and shall be limited to 

 

 

those established by law and agreements between the Owners of such Certificates and the Depository and/or the Depository Participants. Pursuant to the Depository Agreement, unless and until Definitive Certificates are issued pursuant to Section 6.08, the Depository will make book-entry transfers among the Depository Participants and receive and transmit distributions of principal and interest on the related Certificates to such Depository Participants;

(e)        the Depository may collect its usual and customary fees, charges and expenses from its Depository Participants;

(f)         the Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Depository Participants; and

(g)        to the extent that the provisions of this Section conflict with any other provisions of this Agreement, the provisions of this Section shall control.

For purposes of any provision of this Agreement requiring or permitting actions with the consent of, or at the direction of, Certificateholders evidencing a specified percentage of the aggregate unpaid principal amount of any Class of Certificates, such direction or consent may be given by Certificate Owners (acting through the Depository and the Depository Participants) owning Book-Entry Certificates evidencing the requisite percentage of principal amount of such Class of Certificates.

The Private Certificates shall initially be held in fully registered certificated form. If at any time the Holders of all of the Certificates of one or more such Classes request that the Trustee cause such Class to become Global Certificates, the Depositor (with the assistance of the Trustee) will take such action as may be reasonably required to cause the Depository to accept such Class or Classes for trading if it may legally be so traded. If at anytime there are to be Global Certificates, the Global Certificates shall be delivered to the Depository by the Depositor or deposited with the Trustee as custodian for the Depository.

All transfers by Certificate Owners of such respective Classes of Book-Entry Certificates and any Global Certificates shall be made in accordance with the procedures established by the Depository Participant or brokerage firm representing such Certificate Owners. Each Depository Participant shall only transfer 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.

	
            Section 6.07
 	
            Notices to Depository.  
 

Whenever any notice or other communication is required to be given to Certificateholders of a Class with respect to which Book-Entry Certificates have been issued, unless and until Definitive Certificates shall have been issued to the related Certificate Owners, the Trustee shall give all such notices and communications to the Depository.

	
            Section 6.08
 	
            Definitive Certificates.  
 

If, after Book-Entry Certificates have been issued with respect to any Certificates, (a) the Depositor or the Depository advises the Trustee that the Depository is no longer willing or able 

 

 

to discharge properly its responsibilities under the Depository Agreement with respect to such Certificates and the Depositor is unable to locate a qualified successor or (b) the Depositor, at its sole option, advises the Trustee that it elects to terminate the book-entry system with respect to such Certificates through the Depository, then the Trustee shall notify all Certificate Owners of such Certificates, through the Depository, of the occurrence of any such event and of the availability of Definitive Certificates to applicable Certificate Owners requesting the same.  The Depositor shall provide the Trustee with an adequate inventory of certificates to facilitate the issuance and transfer of Definitive Certificates. Upon surrender to the Trustee of any such Certificates by the Depository, accompanied by registration instructions from the Depository for registration, the Trustee shall countersign and
deliver such Definitive Certificates. Neither the Depositor nor the Trustee shall be liable for any delay in delivery of such instructions and each may conclusively rely on, and shall be protected in relying on, such instructions.

In addition, if an Event of Default has occurred and is continuing, each Certificate Owner materially adversely affected thereby may at its option request a Definitive Certificate evidencing such Certificate Owner’s Voting Rights in the related Class of Certificates.  In order to make such request, such Certificate Owner shall, subject to the rules and procedures of the Depository, provide the Depository or the related Depository Participant with directions for the Trustee to exchange or cause the exchange of the Certificate Owner’s interest in such Class of Certificates for an equivalent Voting Right in fully registered definitive form.  Upon receipt by the Trustee of instructions from the Depository directing the Trustee to effect such exchange (such instructions to contain information regarding the Class of Certificates and the Certificate Principal Balance being exchanged,
the Depository Participant account to be debited with the decrease, the registered Holder of and delivery instructions for the definitive Certificate, and any other information reasonably required by the Trustee), (i) the Trustee shall instruct the Depository to reduce the related Depository Participant’s account by the aggregate Certificate Principal Balance of the definitive Certificate, (ii) the Trustee shall execute, authenticate and deliver, in accordance with the registration and delivery instructions provided by the Depository, a definitive Certificate evidencing such Certificate Owner’s Voting Rights in such Class of Certificates and (iii) the Trustee shall execute and authenticate a new Book-Entry Certificate reflecting the reduction in the Certificate Principal Balance of such Class of Certificates by the amount of the definitive Certificates.

	
            Section 6.09
 	
            Maintenance of Office or Agency.  
 

The Trustee will maintain or cause to be maintained at its expense an office or offices or agency or agencies at the Corporate Trust Office where Certificates may be surrendered for registration of transfer or exchange. The Trustee initially designates its Corporate Trust Office, as the office for such purposes. The Trustee will give prompt written notice to the Certificateholders of any change in such location of any such office or agency.

 

 

 

ARTICLE VII

 

THE DEPOSITOR AND THE MASTER SERVICER

	
            Section 7.01
 	
            Liabilities of the Depositor and the Master Servicer.  
 

Each of the Depositor, and the Master Servicer shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by it herein.

	
            Section 7.02
 	
            Merger or Consolidation of the Depositor or the Master Servicer.  
 

(a)        Each of the Depositor and the Master Servicer will keep in full force and effect its existence, rights and franchises as a corporation under the laws of the state of its incorporation, and will obtain and preserve its qualification to do business as a foreign corporation 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 duties under this Agreement.

(b)        Any Person into which the Depositor or the Master Servicer may be merged or consolidated, or any corporation resulting from any merger or consolidation to which the Depositor or the Master Servicer shall be a party, or any Person succeeding to the business of the Depositor or the Master Servicer, shall be the successor of the Depositor or the Master Servicer hereunder, without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

	
            Section 7.03
 	
            Indemnification of the Trustee and the Master Servicer.  
 

(a)        The Master Servicer agrees to indemnify the Indemnified Persons for, and to hold them harmless against, any loss, liability or expense (including reasonable legal fees and disbursements of counsel) incurred on their part that may be sustained in connection with, arising out of, or relating to, any claim or legal action (including any pending or threatened claim or legal action) relating to this Agreement, including any powers of attorney delivered pursuant to this Agreement, the Custodial Agreement or the Certificates (i) related to the Master Servicer’s failure to perform its duties in compliance with this Agreement (except as any such loss, liability or expense shall be otherwise reimbursable pursuant to this Agreement) or (ii) incurred by reason of the Master Servicer’s willful misfeasance, bad faith or gross negligence in
the performance of duties hereunder or by reason of reckless disregard of obligations and duties hereunder, provided, in each case, that with respect to any such claim or legal action (or pending or threatened claim or legal action), the Trustee shall have given the Master Servicer and the Seller written notice thereof promptly after the Trustee shall have with respect to such claim or legal action knowledge thereof; provided, however that the failure to give such notice shall not relieve the Master Servicer of its indemnification obligations hereunder. This indemnity shall survive the resignation or removal of the Trustee or Master Servicer and the termination of this Agreement.

(b)        The Seller will indemnify any Indemnified Person for any loss, liability or expense of any Indemnified Person not otherwise paid or covered pursuant to Subsection (a) above.

 

 

Section 7.04     Limitations on Liability of the Depositor, the Master Servicer and Others.  Subject to the obligation of the Master Servicer to indemnify the Indemnified Persons pursuant to Section 7.03:

(a)        Neither the Depositor, the Master Servicer nor any of the directors, officers, employees or agents of the Depositor and the Master Servicer shall be under any liability to the Indemnified Persons, the Trust Fund or the Certificateholders for taking any action or for refraining from taking 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 Master Servicer or any such Person against any breach of warranties or representations made herein or any liability which would otherwise be imposed by reason of such Person’s willful misfeasance, bad faith or gross negligence in the performance of duties or by reason of reckless disregard of obligations and duties hereunder.

(b)        The Depositor, the Master Servicer and any director, officer, employee or agent of the Depositor and the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.

(c)        The Depositor, the Master Servicer, the Trustee, the Custodian and any director, officer, employee or agent of the Depositor, the Master Servicer, the Trustee, the Custodian shall be indemnified by the Trust and held harmless thereby against any loss, liability or expense (including reasonable legal fees and disbursements of counsel) incurred on their part that may be sustained in connection with, arising out of, or related to, any claim or legal action (including any pending or threatened claim or legal action) relating to this Agreement, the Custodial Agreement or the Certificates, other than (i) in the case of the Master Servicer, (x) any such loss, liability or expense related to the Master Servicer’s failure to perform its duties in compliance with this Agreement (except as any such loss, liability or expense shall be otherwise
reimbursable pursuant to this Agreement) or (y) any such loss, liability or expense incurred by reason of the Master Servicer’s willful misfeasance, bad faith or gross negligence in the performance of duties hereunder, or by reason of reckless disregard of obligations and duties hereunder, (ii) in the case of the Trustee, any such loss, liability or expense incurred by reason of the Trustee’s willful misfeasance, bad faith or negligence in the performance of its duties hereunder, or by reason of its reckless disregard of obligations and duties hereunder and (iii) in the case of the Custodian, any such loss, liability or expense incurred by reason of the Custodian’s willful misfeasance, bad faith or negligence in the performance of its duties under the Custodial Agreement, or by reason of its reckless disregard of obligations and duties thereunder.

(d)        Neither the Depositor nor the Master Servicer shall be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its duties under this Agreement and that in its opinion may involve it in any expense or liability; provided, however, the Master Servicer may in its discretion, with the consent of the Trustee (which consent shall not be unreasonably withheld), 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 (expect any loss, liability or expense incurred by reason of reckless disregard of obligations and duties hereunder) shall be expenses, costs and 

 

 

liabilities of the Trust Fund, and the Master Servicer shall be entitled to be reimbursed therefor out of the Protected Account as provided by Section 4.02. Nothing in this Subsection 7.04(d) shall affect the Master Servicer’s obligation to service and administer the Mortgage Loans pursuant to Article III.

(e)        In taking or recommending any course of action pursuant to this Agreement, unless specifically required to do so pursuant to this Agreement, the Master Servicer shall not be required to investigate or make recommendations concerning potential liabilities which the Trust might incur as a result of such course of action by reason of the condition of the Mortgaged Properties but shall give notice to the Trustee if it has notice of such potential liabilities.

Section 7.05     Master Servicer Not to Resign.  Except as provided in Section 7.07, the Master Servicer shall not resign from the obligations and duties hereby imposed on it except (i) with the prior consent of the Trustee (which consents shall not be unreasonably withheld) or (ii) upon a determination that any such duties hereunder are no longer permissible under applicable law and such impermissibility cannot be cured. Any such determination permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel, addressed to and delivered to, the Trustee.  No such resignation by the Master Servicer shall become effective until the Trustee or a successor to the Master Servicer reasonably satisfactory to the Trustee shall have assumed the responsibilities and obligations of the Master Servicer
in accordance with Section 8.02 hereof. The Trustee shall notify the Rating Agencies of the resignation of the Master Servicer.

Section 7.06     Successor Master Servicer.  In connection with the appointment of any successor Master Servicer or the assumption of the duties of the Master Servicer, the Trustee may make such arrangements for the compensation of such successor master servicer out of payments on the Mortgage Loans as the Trustee and such successor master servicer shall agree. If the successor master servicer does not agree that such market value is a fair price, such successor master servicer shall obtain two quotations of market value from third parties actively engaged in the servicing of single family mortgage loans.  In no event shall the compensation of any successor master servicer exceed that permitted the Master Servicer hereunder without the consent of all of the Certificateholders.

Section 7.07     Sale and 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 accepting such assignment and delegation (a) shall be a Person which shall be qualified to service mortgage loans for Fannie Mae or Freddie Mac; (b) shall have a net worth of not less than $10,000,000 (unless otherwise approved by each Rating Agency pursuant to clause (ii) below); (c) shall be reasonably satisfactory to the Trustee (as evidenced in a writing signed by the Trustee); and (d) 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, 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 Counsel addressed to the Trustee, 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 prior to the effective date thereof.

 

 

 

ARTICLE VIII

 

DEFAULT; TERMINATION OF MASTER SERVICER

	
            Section 8.01
 	
            Events of Default.  
 

“Event of Default,” wherever used herein, means any one of the following events:

(i)         any failure by the Master Servicer to remit to the Trustee any amounts received or collected by the Master Servicer in respect of the Mortgage Loans and required to be remitted by it hereunder (other than any Advance), which failure shall continue unremedied for one Business Day after the date on which written notice of such failure shall have been given to the Master Servicer by the Trustee or the Depositor, or to the Trustee and the Master Servicer by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates;

(ii)         any failure by the Master Servicer 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 any breach of a representation or warranty by the Master Servicer, which failure or breach shall continue unremedied for a period of 60 days after the date on which written notice of such failure shall have been given to Master Servicer by the Trustee or the Depositor, or to the Trustee and the Master Servicer by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates;

(iii)        a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, 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 60 consecutive days;

(iv)        the Master Servicer shall consent to the appointment of a receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Master Servicer or all or substantially all of the property of the Master Servicer;

(v)        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, or commence a voluntary case under, any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations;

(vi)        the Master Servicer assigns or delegates its duties or rights under this Agreement in contravention of the provisions permitting such assignment or delegation under Sections 7.05 or 7.07; or

 

 

(vii)       The Master Servicer fails to deposit, or cause to be deposited, in the Distribution Account any Advance (other than a Nonrecoverable Advance) by 5:00 p.m. New York City time on the Distribution Account Deposit Date.

If an Event of Default shall occur, then, and in each and every such case, so long as such Event of Default shall not have been remedied, the Trustee may, and at the direction of the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates, the Trustee shall in the case of any Event of Default described in clauses (i) through (vii) above, by notice in writing to the Master Servicer (with a copy to each Rating Agency), terminate all of the rights and obligations of the Master Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder. On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer hereunder, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee, or any successor appointed pursuant to Section 8.02 (a “Successor Master Servicer”).  Such Successor Master Servicer shall thereupon if such Successor Master Servicer is a successor to the Master Servicer, make any Advance required by Article V, subject, in the case of the Trustee, to Section 8.02. The Trustee is hereby authorized and empowered to execute and deliver, on behalf of the terminated Master Servicer, as attorney- in-fact or otherwise, 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 any Mortgage Loans and related documents, or otherwise. Unless expressly provided in such written notice, no such termination shall affect any obligation of the Master Servicer to pay amounts owed pursuant to Article VII or Article IX. The Master Servicer agrees to cooperate with the
Trustee in effecting the termination of the Master Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to the applicable Successor Master Servicer of all cash amounts which shall at the time be credited to the Protected Account maintained pursuant to Section 4.02, or thereafter be received with respect to the applicable Mortgage Loans. The Trustee shall promptly notify the Rating Agencies of the occurrence of an Event of Default known to the Trustee.

Notwithstanding any termination of the activities of the Master Servicer hereunder, the Master Servicer shall be entitled to receive, out of any late collection of a Scheduled Payment on a Mortgage Loan that was due prior to the notice terminating the Master Servicer’s rights and obligations as Master Servicer hereunder and received after such notice, that portion thereof to which the Master Servicer would have been entitled pursuant to Sections 4.02 and to receive any other amounts payable to the Master Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder.

Notwithstanding the foregoing, if an Event of Default described in clause (vii) of this Section 8.01 shall occur, the Trustee shall, by notice in writing to the Master Servicer, which may be delivered by telecopy, immediately terminate all of the rights and obligations of the Master Servicer thereafter arising under this Agreement, but without prejudice to any rights it may have as a Certificateholder or to reimbursement of Advances and other advances of its own funds, and the Trustee shall act as provided in Section 8.02 to carry out the duties of the Master Servicer, including the obligation to make any Advance the nonpayment of which was an Event 

 

 

of Default described in clause (vii) of this Section 8.01. Any such action taken by the Trustee must be prior to the distribution on the relevant Distribution Date.

	
            Section 8.02
 	
            Trustee to Act; Appointment of Successor.  
 

On and after the time the Master Servicer receives a notice of termination pursuant to Section 8.01 hereof the Trustee shall automatically become the successor to the Master Servicer with respect to the transactions set forth or provided for herein and after a transition period (not to exceed 90 days), shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Master Servicer by the terms and provisions hereof; provided, however that, pursuant to Article V hereof, the Trustee in its capacity as successor Master Servicer shall be responsible for making any Advances required to be made by the Master Servicer immediately upon the termination of the Master Servicer and any such Advance shall be made on the Distribution Date on which such Advance was required to be made by the predecessor Master Servicer. Effective on the date of such notice of
termination, as compensation therefor, the Trustee shall be entitled to all compensation, reimbursement of expenses and indemnification that the Master Servicer would have been entitled to if it had continued to act hereunder, provided, however, that the Trustee shall not be (i) liable for any acts or omissions of the Master Servicer, (ii) obligated to make Advances if it is prohibited from doing so under applicable law, (iii) responsible for expenses of the Master Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses on any Permitted Investment directed by the Master Servicer.  Notwithstanding the foregoing, the Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited by applicable law from making Advances pursuant to Article V or if it is otherwise unable to so act, appoint, or petition a court of competent jurisdiction to appoint, any established mortgage loan servicing institution the appointment of which does not adversely affect the then
current rating of the Certificates by each Rating Agency as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder. Any Successor Master Servicer shall (i) be an institution that is a Fannie Mae and Freddie Mac approved seller/servicer in good standing, that has a net worth of at least $15,000,000, (ii) be acceptable to the Trustee (which consent shall not be unreasonably withheld) and (iii) be willing to act as successor servicer of any Mortgage Loans under this Agreement, and shall have executed and delivered to the Depositor and the Trustee an agreement accepting such delegation and assignment, that contains an assumption by such Person of the rights, powers, duties, responsibilities, obligations and liabilities of the Master Servicer (other than any liabilities of the Master Servicer hereof incurred prior to termination of the Master Servicer under Section 8.01 or as
otherwise set forth herein), with like effect as if originally named as a party to this Agreement, provided that each Rating Agency shall have acknowledged in writing that its rating of the Certificates in effect immediately prior to such assignment and delegation will not be qualified or reduced as a result of such assignment and delegation. If the Trustee assumes the duties and responsibilities of the Master Servicer in accordance with this Section 8.02, the Trustee shall not resign as Master Servicer until a Successor Master Servicer has been appointed and has accepted such appointment. Pending appointment of a successor to the Master Servicer hereunder, the Trustee, unless the Trustee is prohibited by law from so acting, shall act in such capacity as hereinabove provided. In connection with such appointment and assumption, the Trustee may make such arrangements for the compensation of such successor out of payments on Mortgage Loans or otherwise as it and such successor shall
agree; provided that no such compensation unless agreed to by the Certificateholders shall be in excess of that permitted the 

 

 

Master Servicer hereunder. The Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. Neither the Trustee nor any other Successor Master Servicer shall be deemed to be in default hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof or any failure to perform, or any delay in performing, any duties or responsibilities hereunder, in either case caused by the failure of the Master Servicer to deliver or provide, or any delay in delivering or providing, any cash, information, documents or records to it.

The costs and expenses of the Trustee in connection with the termination of the Master Servicer, appointment of a Successor Master Servicer and, if applicable, any transfer of servicing, including, without limitation, all costs and 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 Trustee to correct any errors or insufficiencies in the servicing data or otherwise to enable the Trustee or the Successor Master Servicer to service the related Mortgage Loans properly and effectively, to the extent not paid by the terminated Master Servicer, shall be payable to the Trustee pursuant to Section 9.05. Any successor to the Master Servicer as successor servicer under any Subservicing Agreement shall give notice to the applicable Mortgagors of such change of servicer and shall, during
the term of its service as successor servicer maintain in force the policy or policies that the Master Servicer is required to maintain pursuant to Section 3.08.

	
            Section 8.03
 	
            Notification to Certificateholders.  
 

(a)        Upon any termination of or appointment of a successor to the Master Servicer, the Trustee shall give prompt written notice thereof to Certificateholders and to each Rating Agency.

(b)        Within 60 days after the occurrence of any Event of Default, the Trustee shall transmit by mail to all Certificateholders notice of each such Event of Default hereunder actually known to a Responsible Officer of the Trustee, unless such Event of Default shall have been cured or waived.

	
            Section 8.04
 	
            Waiver of Defaults.  
 

The Trustee shall transmit by mail to all Certificateholders, within 60 days after the occurrence of any Event of Default actually known to a Responsible Officer of the Trustee, unless such Event of Default shall have been cured, notice of each such Event of Default hereunder known to the Trustee. The Holders of Certificates evidencing not less than 51% of the Voting Rights may, on behalf of all Certificateholders, waive any default by the Master Servicer in the performance of its obligations hereunder and the consequences thereof, except a default in the making of or the causing to be made of any required distribution on the Certificates. Upon any such waiver of a past default, such default shall be deemed to cease to exist, and any Event of Default arising therefrom shall be deemed to have been timely remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereon except to the extent expressly so waived. The Trustee shall give notice of any such waiver to the Rating Agencies.

 

 

ARTICLE IX

 

CONCERNING THE TRUSTEE

	
            Section 9.01
 	
            Duties of Trustee.  
 

(a)        The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Agreement as duties of the Trustee. If an Event of Default has occurred and has not been cured or waived, the Trustee shall exercise such of the rights and powers vested in it by this Agreement, and the same degree of care and skill in their exercise, as a prudent person would exercise under the circumstances in the conduct of such Person’s own affairs.

(b)        Upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments which are specifically required to be furnished to the Trustee pursuant to any provision of this Agreement, the Trustee shall examine them to determine whether they are in the form required by this Agreement; provided, however, that the Trustee shall not be responsible for the accuracy or content of any resolution, certificate, statement, opinion, report, document, order or other instrument furnished by the Master Servicer; provided, further, that the Trustee shall not be responsible for the accuracy or verification of any calculation provided to it pursuant to this Agreement.

(c)        On each Distribution Date, the Trustee shall make monthly distributions and the final distribution to the Certificateholders from funds in the Distribution Account as provided in Sections 5.04 and 10.01 herein.

(d)        No provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct; provided, however, that:

(i)         Prior to the occurrence of an Event of Default, and after the curing or waiver of all such Events of Default which may have occurred, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement, the Trustee shall not be liable except for the performance of their respective 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 and, in the absence of bad faith on the part of the Trustee, the Trustee 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 and conforming to the requirements of this Agreement;

(ii)         The Trustee shall not be liable in its individual capacity for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

 

(iii)        The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the directions of the Holders of Certificates evidencing not less than 25% of the aggregate Voting Rights of the Certificates (or such other percentage as specifically set forth herein), if such action or non-action relates to the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or other power conferred upon the Trustee under this Agreement;

(iv)        The Trustee shall not be required to take notice or be deemed to have notice or knowledge of any default or Event of Default unless a Responsible Officer of the Trustee shall have actual knowledge thereof. In the absence of such knowledge, the Trustee may conclusively assume there is no such default or Event of Default;

(v)        The Trustee shall not in any way be liable by reason of any insufficiency in any Account held by or in the name of Trustee unless it is determined by a court of competent jurisdiction in a non-appealable judgment that the Trustee’s negligence or willful misconduct was the primary cause of such insufficiency (except to the extent that the Trustee is obligor and has defaulted thereon);

(vi)        Anything in this Agreement to the contrary notwithstanding, in no event shall the Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and

(vii)       None of the Master Servicer, the Seller, the Depositor or the Trustee shall be responsible for the acts or omissions of the other, it being understood that this Agreement shall not be construed to render them partners, joint venturers or agents of one another.

The Trustee shall not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it, and none of the provisions contained in this Agreement shall in any event require the Trustee to perform, or be responsible for the manner of performance of, any of the obligations of the Master Servicer.

(e)        All funds received by the Trustee and required to be deposited in the Distribution Account pursuant to this Agreement will be promptly so deposited by the Trustee.

	
            Section 9.02
 	
            Certain Matters Affecting the Trustee.  
 	
             

	
            (a)
 	
            Except as otherwise provided in Section 10.01:
 
				

(i)         The Trustee may rely and shall be protected in acting or refraining from acting in reliance on any resolution or certificate of the Seller or the Master Servicer, any certificates of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

 

(ii)         The Trustee may consult with counsel and any advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection with respect to any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

(iii)        The Trustee shall not be under any obligation to exercise any of the trusts or powers vested in it by this Agreement, other than its obligation to give notices pursuant to 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 reasonable security or indemnity 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 an Event of Default of which a Responsible Officer of the Trustee has actual knowledge (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 under the circumstances in the conduct of his own affairs;

(iv)        The Trustee shall not be liable in its individual capacity 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)        The Trustee shall not 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 Holders of Certificates evidencing not less than 25% of the aggregate Voting Rights of the Certificates and provided that the payment within a reasonable time to the Trustee 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 reasonably assured to the Trustee by the security afforded to it by the terms of this Agreement. The Trustee may require reasonable indemnity against such expense or liability as a condition to taking any such action. The reasonable expense
of every such examination shall be paid by the Certificateholders requesting the investigation;

(vi)        The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or through Affiliates, agents or attorneys; provided, however, that the Trustee may not appoint any paying agent to perform any paying agent functions under this Agreement without the express written consent of the Master Servicer, which consents will not be unreasonably withheld. The Trustee shall not be liable or responsible for the misconduct or negligence of any of the Trustee’s agents or attorneys or paying agent appointed hereunder by the Trustee with due care and, when required, with the consent of the Master Servicer;

(vii)       Should the Trustee deem the nature of any action required on its part to be unclear, the Trustee may require prior to such action that it be provided by the Depositor with reasonable further instructions; the right of the Trustee to perform any discretionary act enumerated in this Agreement shall not be construed as a duty, and the Trustee shall 

 

 

not be accountable for other than its negligence or willful misconduct in the performance of any such act;

(viii)      The Trustee shall not be required to give any bond or surety with respect to the execution of the trust created hereby or the powers granted hereunder, except as provided in Subsection 9.07; and

(ix)        The Trustee shall not have any duty to conduct any affirmative investigation as to the occurrence of any condition requiring the repurchase of any Mortgage Loan by any Person pursuant to this Agreement, or the eligibility of any Mortgage Loan for purposes of this Agreement.

(b)        The Trustee is hereby directed by the Depositor to execute and deliver the Swap Administration Agreement. Amounts payable by the Trustee on any Distribution Date to the Swap Administrator shall be paid by the Trustee as provided herein. The Trustee in its individual capacity shall have no responsibility for any of the undertakings, agreements or representations with respect to the Swap Agreement or the Swap Administration Agreement, including, without limitation, for making any payments thereunder.

It is acknowledged and agreed that the Person serving as Trustee hereunder shall also serve as Swap Administrator under the Swap Administration Agreement and the Swap Agreement.  The Swap Administrator is hereby directed by the Depositor to execute and deliver the  Swap Administration Agreement and the Swap Agreement, and to make the representations required therein.  The Swap Administrator shall not have any liability for any failure or delay in payments to the Trust which are required under the Swap Administration Agreement where such failure or delay is due to the failure or delay of the Swap Provider in making such payment to the Swap Administrator.  The Swap Administrator shall be entitled to be indemnified and held harmless by the Trust from and against any and all losses, claims, expenses or other liabilities that arise by reason of or in connection with the performance or
observance by the Swap Administrator of its duties or obligations under the Swap Agreement or the Swap Administration Agreement, except to the extent that the same is due to the Swap Administrator’s gross negligence, willful misconduct or fraud.  Any Person appointed as successor trustee pursuant to Section 9.09 shall also be required to serve as successor Swap Administrator under the Swap Agreement and the Swap Administration Agreement.

	
            Section 9.03
 	
            Trustee Not Liable for Certificates or Mortgage Loans.  
 

The recitals contained herein and in the Certificates (other than the signature and countersignature of the Trustee on the Certificates) shall be taken as the statements of the Depositor, and the Trustee shall not have any responsibility for their correctness. The Trustee makes no representation as to the validity or sufficiency of the Certificates (other than the signature and countersignature of the Trustee on the Certificates) or of any Mortgage Loan except as expressly provided in Sections 2.02 and 2.06 hereof; provided, however, that the foregoing shall not relieve the Trustee, or the Custodian on its behalf, of the obligation to review the Mortgage Files pursuant to Section 2.02 of this Agreement. The Trustee’s signature and countersignature (or countersignature of its agent) on the Certificates shall be solely in its capacity as Trustee and shall not constitute the
Certificates an obligation of the Trustee in any 

 

 

other capacity. The Trustee 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 with respect to the Mortgage Loans. Subject to Section 2.06, the Trustee shall not be responsible for the legality or validity of this Agreement or any document or instrument relating to this Agreement, the validity of the execution of this Agreement or of any supplement hereto or instrument of further assurance, or the validity, priority, perfection or sufficiency of the security for the Certificates issued hereunder or intended to be issued hereunder. The Trustee shall not at any time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Mortgage or any Mortgage Loan, or the perfection and priority of any Mortgage or the
maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Fund or its ability to generate the payments to be distributed to Certificateholders, under this Agreement. The Trustee shall not be responsible for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder or to record this Agreement.

	
            Section 9.04
 	
            Trustee May Own Certificates.  
 

The Trustee in its individual capacity or in any capacity other than as Trustee hereunder may become the owner or pledgee of any Certificates with the same rights it would have if it were not the Trustee and may otherwise deal with the parties hereto.

	
            Section 9.05
 	
            Trustee’s Fees and Expenses.  
 

The Trustee will be entitled to recover from the Distribution Account pursuant to Section 4.05, the Trustee Fee, all reasonable out of pocket expenses, disbursements and advances and the expenses of the Trustee in connection with any Event of Default (or anything related thereto, including any determination that an Event of Default does or does not exist), any breach of this Agreement or any claim or legal action (including any pending or threatened claim or legal action) incurred or made by the Trustee in the administration of the trusts hereunder (including the reasonable compensation, expenses and disbursements of its counsel) except any such expense, disbursement or advance as may arise from its negligence or intentional misconduct or which is the responsibility of the Certificateholders hereunder. If funds in the Distribution Account are insufficient therefor, the Trustee shall
recover such expenses, disbursements or advances from the Depositor and the Depositor hereby agrees to pay such expenses, disbursements or advances. Such compensation and reimbursement obligation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust.

	
            Section 9.06
 	
            Eligibility Requirements for Trustee.  
 

The Trustee and any successor Trustee shall during the entire duration of this Agreement be a state bank or trust company or a national banking association organized and doing business under the laws of a state or the United States of America, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus and undivided profits of at least $50,000,000, subject to supervision or examination by federal or state authority and rated “BBB” or higher by Fitch with respect to their long-term rating and rated “BBB” or higher by S&P and “Baa2” or higher by Moody’s with respect to any outstanding long-term unsecured 

 

 

unsubordinated debt, and, in the case of a successor Trustee other than pursuant to Section 9.10, rated in one of the two highest long-term debt categories by each Rating Agency (at least “AA-” in the case of S&P) or otherwise acceptable to, each of the Rating Agencies and have a short-term debt rating of at least “A-1” from S&P, or otherwise acceptable to, S&P. The Trustee shall not be an Affiliate of the Master Servicer. If the Trustee publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 9.06 the combined capital and surplus of such corporation shall be deemed to be its total equity capital (combined capital and surplus) as set forth in its most recent report of condition so published. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 9.06, the Trustee shall resign immediately in the manner and with the effect specified in Section 9.08.

	
            Section 9.07
 	
            Insurance.  
 

The Trustee, at its own expense, shall at all times maintain and keep in full force and effect:  (i) fidelity insurance, (ii) theft of documents insurance and (iii) forgery insurance (which may be collectively satisfied by a “Financial Institution Bond” and/or a “Bankers’ Blanket Bond”); provided, that such insurance may be provided through self-insurance so long as the Trustee is rated “A” or better by S&P and “A1” or better by Moody’s. All such insurance shall be in amounts, with standard coverage and subject to deductibles, as are customary for insurance typically maintained by banks or their affiliates which act as custodians for investor-owned mortgage pools. A certificate of an officer of the Trustee as to the Trustee’s compliance with this Section 9.07 shall be furnished to any Certificateholder upon reasonable written request.

	
            Section 9.08
 	
            Resignation and Removal of Trustee.  
 

The Trustee may at any time resign and be discharged from the Trust hereby created by giving written notice thereof to the Depositor, the Seller and the Master Servicer, with a copy to the Rating Agencies. Upon receiving such notice of resignation, the Depositor shall promptly appoint a successor trustee by written instrument, in triplicate, one copy of which instrument shall be delivered to each of the resigning Trustee and the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee.

If at any time (i) the Trustee shall cease to be eligible in accordance with the provisions of Section 9.06 hereof and shall fail to resign after written request thereto by the Depositor, (ii) the Trustee shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or (iii)(A) a tax is imposed with respect to the Trust Fund by any state in which the Trustee or the Trust Fund is located, (B) the imposition of such tax would be avoided by the appointment of a different trustee and (C) the Trustee fails to indemnify the Trust Fund against such tax, then the Depositor or the Master Servicer may remove the Trustee and appoint a successor trustee by
written instrument, in multiple copies, a copy of which instrument shall be delivered to the Trustee, the Master Servicer and the successor trustee.

 

 

The Holders evidencing at least 51% of the Voting Rights of each Class of Certificates may at any time remove the Trustee and appoint a successor trustee by written instrument or instruments, in multiple copies, signed by such Holders or their attorneys-in-fact duly authorized, one complete set of which instruments shall be delivered by the successor trustee to the Master Servicer, the Trustee so removed and the successor trustee so appointed. Notice of any removal of the Trustee shall be given to each Rating Agency by the Trustee or successor trustee.

Any resignation or removal of LaSalle Bank National Association as Trustee shall also result in the resignation or removal, as applicable, of LaSalle Bank National Association as Swap Administrator.  Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 9.08 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 9.09 hereof and upon acceptance of appointment by a successor swap administrator under the Swap Administration Agreement.

	
            Section 9.09
 	
            Successor Trustee.  
 

Any successor trustee appointed as provided in Section 9.08 hereof shall execute, acknowledge and deliver to the Depositor, to its predecessor trustee, the Master Servicer an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee 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 herein.

No successor trustee shall accept appointment as provided in this Section 9.09 unless at the time of such acceptance such successor trustee shall be eligible under the provisions of Section 9.07 hereof and its appointment shall not adversely affect the then current rating of the Certificates.

Upon acceptance of appointment by a successor trustee as provided in this Section 9.09, the successor trustee shall mail notice of the succession of such trustee hereunder to all Holders of Certificates.  If the successor trustee fails to mail such notice within ten days after acceptance of appointment, the Depositor shall cause such notice to be mailed at the expense of the Trust Fund.

	
            Section 9.10
 	
            Merger or Consolidation of Trustee.  
 

Any corporation, state bank or national banking association into which the Trustee may be merged or converted or with which it may be consolidated or any corporation, state bank or national banking association resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation, state bank or national banking association succeeding to substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be eligible under the provisions of Section 9.06 hereof without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

 

 

 

	
            Section 9.11
 	
            Appointment of Co-Trustee or Separate Trustee.  
 

Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be located, the Master Servicer and the Trustee acting jointly 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 the Trust Fund, and to vest in such Person or Persons, in such capacity and for the benefit of the Certificateholders, such title to the Trust Fund or any part thereof, whichever is applicable, and, subject to the other provisions of this Section 9.11, such powers, duties, obligations, rights and trusts as the Master Servicer and the Trustee may consider
necessary or desirable. If the Master Servicer shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, or in the case an Event of Default shall have occurred and be continuing, the Trustee alone shall have the power to make such appointment. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 9.06 and no notice to Certificateholders of the appointment of any co-trustee or separate trustee shall be required under Section 9.09.

Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

(i)         All rights, powers, duties and obligations conferred or imposed upon the Trustee, except for the obligation of the Trustee under this Agreement to advance funds on behalf of the Master Servicer, shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed (whether a Trustee hereunder or as a Successor 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
the Trust Fund or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

(ii)         No trustee hereunder shall be held personally liable by reason of any act or omission of any other trustee hereunder; and

(iii)        The Trustee may at any time accept the resignation of or remove any separate trustee or co-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 trusts 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 and a copy thereof given to the Master Servicer and the Depositor.

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.

	
            Section 9.12
 	
            Tax Matters.  
 

It is intended that the Trust Fund shall constitute, and that the affairs of the Trust Fund shall be conducted so that each REMIC formed hereunder qualifies as, a “real estate mortgage investment conduit” as defined in and in accordance with the REMIC Provisions. In furtherance of such intention, the Trustee covenants and agrees that it shall act as agent (and the Trustee is hereby appointed to act as agent) on behalf of the Trust Fund. The Trustee, as agent on behalf of the Trust Fund, shall do or refrain from doing, as applicable, the following:  (a) the Trustee shall prepare and file, or cause to be prepared and filed, in a timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns (Form 1066 or any successor form adopted by the Internal Revenue Service) and prepare and file or cause to be prepared and filed with the Internal Revenue Service and
applicable state or local tax authorities income tax or information returns for each taxable year with respect to each such REMIC containing such information and at the times and in the manner as may be required by the Code or state or local tax laws, regulations, or rules, and furnish or cause to be furnished to Certificateholders the schedules, statements or information at such times and in such manner as may be required thereby; (b) the Trustee shall apply for an employer identification number with the Internal Revenue Service via a Form SS-4 or other comparable method for each REMIC that is or becomes a taxable entity, and within thirty days of the Closing Date, furnish or cause to be furnished to the Internal Revenue Service, on Forms 8811 or as otherwise may be required by the Code, the name, title, address, and telephone number of the Person that the Holders of the Certificates may contact for tax information relating thereto, together with such additional information as may be
required by such Form, and update such information at the time or times in the manner required by the Code for the Trust Fund; (c) the Trustee shall make or cause to be made elections, on behalf of each REMIC formed hereunder to be treated as a REMIC on the federal tax return of such REMIC for its first taxable year (and, if necessary, under applicable state law); (d) the Trustee shall prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and to the Internal Revenue Service and, if necessary, state tax authorities, all information returns and reports as and when required to be provided to them in accordance with the REMIC Provisions, including without limitation, the calculation of any original issue discount using the Prepayment Assumption; (e) the Trustee shall provide information necessary for the computation of tax imposed on the Transfer of a Residual Certificate to a Person that is not a Permitted Transferee, or an agent (including a broker,
nominee or other middleman) of a Person that is not a Permitted Transferee, or a pass-through entity in which a Person that is not a Permitted Transferee is the record Holder of an interest (the reasonable cost of computing and furnishing such information 

 

 

may be charged to the Person liable for such tax); (f) the Trustee shall, to the extent under its control, conduct the affairs of the Trust Fund at all times that any Certificates are outstanding so as to maintain the status of each REMIC formed hereunder as a REMIC under the REMIC Provisions; (g) the Trustee shall not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of any REMIC formed hereunder; (h) the Trustee shall pay, from the sources specified in the penultimate paragraph of this Section 9.12, the amount of any federal, state and local taxes, including prohibited transaction taxes as described below, imposed on any REMIC formed hereunder prior to the termination of the Trust Fund when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate Person from contesting any
such tax in appropriate proceedings and shall not prevent the Trustee from withholding payment of such tax, if permitted by law, pending the outcome of such proceedings); (i) the Trustee shall maintain records relating to each REMIC formed hereunder including but not limited to the income, expenses, assets and liabilities of each such REMIC and adjusted basis of the Trust Fund property determined at such intervals as may be required by the Code, as may be necessary to prepare the foregoing returns, schedules, statements or information; (j) the Trustee shall, for federal income tax purposes, maintain books and records with respect to the REMICs on a calendar year and on an accrual basis; (k) the Trustee shall not enter into any arrangement not otherwise provided for in this Agreement by which the REMICs will receive a fee or other compensation for services nor permit the REMICs 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; and (l) as and when necessary and appropriate, the Trustee, at the expense of the Trust Fund, shall represent the Trust Fund in any administrative or judicial proceedings relating to an examination or audit by any governmental taxing authority, request an administrative adjustment as to any taxable year of any REMIC formed hereunder, enter into settlement agreements with any governmental taxing agency, extend any statute of limitations relating to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC formed hereunder in relation to any tax matter involving any such REMIC.

In order to enable the Trustee to perform its duties as set forth herein, the Depositor shall provide, or cause to be provided, to the Trustee within 10 days after the Closing Date all information or data that the Trustee requests in writing and determines to be relevant for tax purposes to the valuations and offering prices of the Certificates, including, without limitation, the price, yield, prepayment assumption and projected cash flows of the Certificates and the Mortgage Loans. Thereafter, the Depositor shall provide to the Trustee promptly upon written request therefor, any such additional information or data that the Trustee may, from time to time, request in order to enable the Trustee to perform its duties as set forth herein. The Depositor hereby indemnifies the Trustee for any losses, liabilities, damages, claims or expenses of the Trustee arising from any errors or
miscalculations of the Trustee that result from any failure of the Depositor to provide, or to cause to be provided, accurate information or data to the Trustee on a timely basis.

In the event that any tax is imposed on “prohibited transactions” of any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure property” of the Trust Fund as defined in Section 860G(c) of the Code, on any contribution to any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI after the Startup Day pursuant to Section 860G(d) of the Code, or 

 

 

any other tax is imposed, including, without limitation, any federal, state or local tax or minimum tax imposed upon any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI, and is not paid as otherwise provided for herein, such tax shall be paid by (i) the Trustee, if any such other tax arises out of or results from a breach by the Trustee of any of its obligations under this Agreement, (ii) any party hereto (other than the Trustee) to the extent any such other tax arises out of or results from a breach by such other party of any of its obligations under this Agreement or (iii) in all other cases, or in the event that any liable party hereto fails to honor its obligations under the preceding clauses (i) or (ii), any such tax will be paid first with amounts otherwise to be distributed to the Class R Certificateholders, and second with amounts otherwise to be distributed to all other
Certificateholders in the following order of priority:  first, to the Class M-8 Certificates, second, to the Class M-7 Certificates, third, to the Class M-6 Certificates, fourth, to the Class M-5 Certificates, fifth, to the Class M-4 Certificates, sixth, to the Class M-3 Certificates, seventh, to the Class M-2 Certificates, eighth, to the Class M-1 Certificates, and ninth, to the Class A Certificates (pro rata based on the amounts to be distributed). Notwithstanding anything to the contrary contained herein, to the extent that such tax is payable by the Holder of any Certificates, the Trustee is hereby authorized to retain on any Distribution Date, from the Holders of the Class R Certificates (and, if necessary, second, from the Holders of the other Certificates in the priority specified in the preceding sentence), funds otherwise distributable to such Holders in an amount sufficient to pay such tax. The Trustee shall promptly notify in
writing the party liable for any such tax of the amount thereof and the due date for the payment thereof.

The Trustee agrees that, in the event it should obtain any information necessary for the other party to perform its obligations pursuant to this Section 9.12, it will promptly notify and provide such information to such other party.

 

 

 

ARTICLE X

 

TERMINATION

	
            Section 10.01
 	
            Termination upon Liquidation or Repurchase of all Mortgage Loans.  
 

Subject to Section 10.03, the obligations and responsibilities of the Depositor, the Master Servicer, the Seller and the Trustee created hereby with respect to the Trust Fund shall terminate upon the earlier of (a) the purchase by the Majority Class CE Certificateholder (or its designee) or the Master Servicer, as applicable, of all of the Mortgage Loans (and REO Properties) remaining in the Trust Fund at a price (the “Mortgage Loan Purchase Price”) equal to the sum of (i) 100% of the Stated Principal Balance of each Mortgage Loan (other than in respect of REO Property), (ii) accrued interest thereon at the applicable Mortgage Rate to, but not including, the first day of the month of such purchase, (iii) the appraised value of any REO Property in the Trust Fund (up to the Stated Principal Balance of the related Mortgage Loan), such appraisal to be conducted by an appraiser
mutually agreed upon by the Master Servicer and the Trustee, (iv) unreimbursed out-of pocket costs of the Master Servicer, including unreimbursed servicing advances and the principal portion of any unreimbursed Advances, made on the Mortgage Loans prior to the exercise of such repurchase right, (v) any unreimbursed costs and expenses of the Trustee payable pursuant to Section 9.05, (vi) any Swap Termination Payment payable to the Swap Provider which remains unpaid or which is due to the exercise of such option and (b) the later of (i) the maturity or other liquidation (or any Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the disposition of all REO Property and (ii) the distribution to Certificateholders of all amounts required to be distributed to them pursuant to this Agreement, as applicable. In no event shall the trusts 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 Latest Possible Maturity Date.

The right to repurchase all Mortgage Loans and REO Properties by the Majority Class CE Certificateholder pursuant to clause (a) in the preceding paragraph shall be conditioned upon the Stated Principal Balance of all of the Mortgage Loans in the Trust Fund, at the time of any such repurchase, aggregating 10% or less of the aggregate Cut-off Date Principal Balance of all of the Mortgage Loans. If the Majority Class CE Certificateholder does not exercise this option, the Master Servicer has the right to repurchase all Mortgage Loans and REO Properties pursuant to clause (a) in the preceding paragraph, conditioned upon the Stated Principal Balance of all of the Mortgage Loans in the Trust Fund, at the time of any such repurchase, aggregating 5% or less of the aggregate Cut-off Date Principal Balance of all of the Mortgage Loans.

	
            Section 10.02
 	
            Final Distribution on the Certificates.   
 

If on any Determination Date, (i) the Master Servicer determines that there are no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other than the funds in the Protected Account, the Master Servicer shall direct the Trustee to send a final distribution notice promptly to each Certificateholder or (ii) the Trustee determines that a Class of Certificates shall be retired after a final distribution on such Class, the Trustee shall notify the Certificateholders within five (5) Business Days after such Determination Date that the final 

 

 

distribution in retirement of such Class of Certificates is scheduled to be made on the immediately following Distribution Date. Any final distribution made pursuant to the immediately preceding sentence will be made only upon presentation and surrender of the related Certificates at the Corporate Trust Office of the Trustee. If the Majority Class CE Certificateholder or the Master Servicer, as applicable, elects to terminate the Trust Fund pursuant to Section 10.01, at least 20 days prior to the date notice is to be mailed to the Certificateholders, the Majority Class CE Certificateholder or the Master Servicer, as applicable, shall notify the Depositor and the Trustee of the date the Majority Class CE Certificateholder or the Master Servicer, as applicable, intends to terminate the Trust Fund. The Master Servicer shall remit the Mortgage Loan Purchase Price to the Trustee on the Business Day prior to the
Distribution Date for such Optional Termination by the Majority Class CE Certificateholder or the Master Servicer, as applicable.

Notice of any termination of the Trust Fund, specifying the Distribution Date on which Certificateholders may surrender their Certificates for payment of the final distribution and cancellation, shall be given promptly by the Trustee by letter to Certificateholders mailed not later than two Business Days after the Determination Date in the month of such final distribution. Any such notice shall specify (a) the Distribution Date upon which final distribution on the Certificates will be made upon presentation and surrender of Certificates at the office therein designated, (b) the amount of such final distribution, (c) the location of the office or agency at which such presentation and surrender must be made and (d) that the Record Date otherwise applicable to such Distribution Date is not applicable, distributions being made only upon presentation and surrender of the Certificates at the
office therein specified. The Trustee will give such notice to each Rating Agency at the time such notice is given to Certificateholders.

In the event such notice is given, the Master Servicer shall cause all funds in the Protected Account to be remitted to the Trustee for deposit in the Distribution Account on the Business Day prior to the applicable Distribution Date in an amount equal to the final distribution in respect of the Certificates. Upon such final deposit with respect to the Trust Fund and the receipt by the Trustee of a Request for Release therefor, the Trustee or the Custodian shall promptly release to EMC as applicable the Mortgage Files for the Mortgage Loans and the Trustee shall execute and deliver any documents prepared and delivered to it which are necessary to transfer any REO Property.

Upon presentation and surrender of the Certificates, the Trustee shall cause to be distributed to Certificateholders of each Class the amounts allocable to such Certificates held in the Distribution Account in the order and priority set forth in Section 5.04 hereof on the final Distribution Date and in proportion to their respective Percentage Interests.

In the event that any affected Certificateholders shall not surrender Certificates for cancellation within six months after the date specified in the above mentioned written notice, the Trustee shall give a second written notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the final distribution with respect thereto. If within six months after the second notice all the applicable Certificates shall not have been surrendered for cancellation, the Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets that remain a part of the Trust 

 

 

Fund. If within one year after the second notice all Certificates shall not have been surrendered for cancellation, the Class R Certificateholders shall be entitled to all unclaimed funds and other assets of the Trust Fund that remain subject hereto.

	
            Section 10.03
 	
            Additional Termination Requirements.   
 

(a)        Upon exercise by the Majority Class CE Certificateholder or the Master Servicer, as applicable, of its purchase option as provided in Section 10.01, the Trust Fund shall be terminated in accordance with the following additional requirements, unless the Trustee has been supplied with an Opinion of Counsel addressed to the Trustee, at the expense of the Majority Class CE Certificateholder or the Master Servicer, as applicable, to the effect that the failure of the Trust Fund to comply with the requirements of this Section 10.03 will not (i) result in the imposition of taxes on “prohibited transactions” of a REMIC, or (ii) cause a REMIC to fail to qualify as a REMIC at any time that any Certificates are outstanding:

(1)        The Majority Class CE Certificateholder or the Master Servicer, as applicable, shall establish a 90-day liquidation period and notify the Trustee thereof, and the Trustee shall in turn specify the first day of such period in a statement attached to the tax return for each of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI pursuant to Treasury Regulation Section 1.860F-1. The Majority Class CE Certificateholder or the Master Servicer, as applicable, shall satisfy all the requirements of a qualified liquidation under Section 860F of the Code and any regulations thereunder, as evidenced by an Opinion of Counsel obtained at the expense of the Majority Class CE Certificateholder or the Master Servicer, as applicable;

(2)        During such 90-day liquidation period, and at or prior to the time of making the final payment on the Certificates, the Trustee shall sell all of the assets of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI for cash; and

(3)        At the time of the making of the final payment on the Certificates, the Trustee shall distribute or credit, or cause to be distributed or credited, to the Holders of the Residual Certificates all cash on hand (other than cash retained to meet claims), and each REMIC shall terminate at that time.

(b)        By their acceptance of the Certificates, the Holders thereof hereby authorize the adoption of a 90-day liquidation period and the adoption of a plan of complete liquidation for REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI, which authorization shall be binding upon all successor Certificateholders.

(c)        The Trustee as agent for each REMIC hereby agrees to adopt and sign such a plan of complete liquidation meeting the requirements for a qualified liquidation under Section 860F of the Code and any regulations thereunder upon the written request of the Majority Class CE Certificateholder or the Master Servicer, as applicable, and the receipt of the Opinion of Counsel referred to in Section 10.03(a)(1) and to take such other action in connection therewith as may be 

 

 

reasonably requested by the Majority Class CE Certificateholder or the Master Servicer, as applicable.

 

 

 

ARTICLE XI

 

MISCELLANEOUS PROVISIONS

	
            Section 11.01
 	
            Amendment.  
 

This Agreement may be amended from time to time by parties hereto without the consent of any of the Certificateholders to cure any ambiguity, to correct or supplement any provisions herein (including to give effect to the expectations of investors), to change the manner in which the Protected Account is maintained or to make such other provisions with respect to matters or questions arising under this Agreement as shall not be inconsistent with any other provisions herein if such action shall not, as evidenced by an Opinion of Counsel addressed to the Trustee, adversely affect in any material respect the interests of any Certificateholder; 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.

Notwithstanding the foregoing, without the consent of the Certificateholders, the parties hereto may at any time and from time to time amend this Agreement to modify, eliminate or add to any of its provisions to such extent as shall be necessary or appropriate to maintain the qualification of any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as a REMIC under the Code or to avoid or minimize the risk of the imposition of any tax on any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI pursuant to the Code that would be a claim against any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI at any time prior to the final redemption of the Certificates, provided that the Trustee has been provided an Opinion of Counsel addressed to the Trustee, which opinion shall be an expense of the party requesting such opinion but in any case shall not be an
expense of the Trustee or the Trust Fund, to the effect that such action is necessary or appropriate to maintain such qualification or to avoid or minimize the risk of the imposition of such a tax.

This Agreement may also be amended from time to time by the parties hereto with the consent of the Holders of each Class of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes 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 Swap Administrator or the Holders of Certificates; provided that no such amendment shall (i) reduce in any manner the amount of, or delay the timing of, payments required to be distributed on any Certificate without the consent of the Holder of such Certificate, (ii) cause any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to cease to qualify as a REMIC or (iii) reduce the aforesaid percentages of Certificates of each Class the Holders of which are required to consent to any such
amendment without the consent of the Holders of all Certificates of such Class then outstanding.

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 addressed to the Trustee, which opinion shall be an expense of the party requesting such 

 

 

amendment but in any case shall not be an expense of the Trustee, to the effect that such amendment will not (other than an amendment pursuant to clause (ii) of, and in accordance with, the preceding paragraph) cause the imposition of any tax on any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI or the Certificateholders or cause any of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI to cease to qualify as a REMIC at any time that any Certificates are outstanding. Further, nothing in this Agreement shall require the Trustee to enter into an amendment without receiving an Opinion of Counsel, satisfactory to the Trustee that (i) such amendment is permitted and is not prohibited by this Agreement and that all requirements for amending this Agreement (including any consent of the applicable Certificateholders) have been complied with.

Notwithstanding any of the other provisions of this Section 11.01, none of the Depositor, the Master Servicer or the Trustee shall enter into any amendment to Section 3.20 or Section 5.04(a)(4)(F) of this Agreement without the prior written consent of the Swap Provider.

Promptly after the execution of any amendment to this Agreement requiring the consent of Certificateholders, the Trustee shall furnish written notification of the substance of such amendment to each Certificateholder and each Rating Agency.

It shall not be necessary for the consent of Certificateholders under this Section 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.

	
            Section 11.02
 	
            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 of the counties or other comparable jurisdictions in which any or all of the Mortgaged Properties are situated, and in any other appropriate public recording office or elsewhere. The Master Servicer shall effect such recordation at the Trust’s expense upon the request in writing of a Certificateholder, but only if such direction is accompanied by an Opinion of Counsel (provided at the expense of the Certificateholder requesting recordation) to the effect that such recordation would materially and beneficially affect the interests of the Certificateholders or is required by law.

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 11.03
 	
            Governing Law.  
 

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN 

 

 

ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAWS).

	
            Section 11.04
 	
            Intention of Parties.  
 

It is the express intent of the parties hereto that the conveyance of the Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies and any modifications, extensions and/or assumption agreements and private mortgage insurance policies relating to the Mortgage Loans by the Seller to the Depositor, and by the Depositor to the Trustee be, and be construed as, an absolute sale thereof to the Depositor or the Trustee, as applicable. It is, further, not the intention of the parties that such conveyance be deemed a pledge thereof by the Seller to the Depositor, or by the Depositor to the Trustee. However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Seller or the Depositor, as applicable, or if for any other reason the Mortgage Loan Purchase Agreement or this Agreement is held or deemed to create a security
interest in such assets, then (i) the Mortgage Loan Purchase Agreement and this Agreement shall each be deemed to be a security agreement within the meaning of the Uniform Commercial Code of the State of New York and (ii) the conveyance provided for in the Mortgage Loan Purchase Agreement from the Seller to the Depositor, and the conveyance provided for in this Agreement from the Depositor to the Trustee, shall be deemed to be an assignment and a grant by the Seller or the Depositor, as applicable, for the benefit of the Certificateholders of a security interest in all of the assets that constitute the Trust Fund, whether now owned or hereafter acquired.

The Depositor for the benefit of the Certificateholders shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the assets of the Trust Fund, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Agreement.

	
            Section 11.05
 	
            Notices.  
 

(a)        The Trustee shall use its best efforts to promptly provide notice to each Rating Agency with respect to each of the following of which a Responsible Officer of the Trustee has actual knowledge:

	
            (i)
 	
            Any material change or amendment to this Agreement;
 	
             

	
            (ii)
 	
            The occurrence of any Event of Default that has not been cured;
 

(iii)        The resignation or termination of the Master Servicer or the Trustee and the appointment of any successor;

(iv)        The repurchase or substitution of Mortgage Loans pursuant to Sections 2.02, 2.03, 3.18 and 10.01; and

	
            (v)
 	
            The final payment to Certificateholders.
 

 

 

 

(b)        All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when delivered at or mailed by registered mail, return receipt requested, postage prepaid, or by recognized overnight courier, or by facsimile transmission to a number provided by the appropriate party if receipt of such transmission is confirmed to (i) in the case of the Depositor, Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New York 10179, Attention:  Chief Counsel; (ii) in the case of the Seller or the Master Servicer, EMC Mortgage Corporation, 909 Hidden Ridge Drive, Irving, Texas 75038, Attention:  Ralene Ruyle or such other address as may be hereafter furnished to the other parties hereto by the Master Servicer in writing; (iii) in the case of the Trustee, at each Corporate Trust Office or such
other address as the Trustee may hereafter furnish to the other parties hereto and (iv) in the case of the Rating Agencies, (x) Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: Home Equity Monitoring and (y) Standard & Poor’s, 55 Water Street, 41st Floor, New York, New York 10041, Attention:  Mortgage Surveillance Group. Any notice delivered to the Seller, the Master Servicer or the Trustee under this Agreement shall be effective only upon receipt. Any notice required or permitted to be mailed to a Certificateholder, unless otherwise provided herein, shall be given by first-class mail, postage prepaid, at the address of such Certificateholder 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, whether or not the Certificateholder receives such notice.

	
            Section 11.06
 	
            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 11.07
 	
            Assignment.  
 

Notwithstanding anything to the contrary contained herein, except as provided pursuant to Section 7.02, this Agreement may not be assigned by the Master Servicer, the Seller or the Depositor.

	
            Section 11.08
 	
            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 representative or heirs to claim an accounting or to take any action or commence any proceeding in any court for a petition or winding up of the Trust Fund, or 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 provided 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 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 party 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 or by availing itself of any provisions 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 an Event of Default and of the continuance thereof, as hereinbefore provided, the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates shall also have made written request to 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 60 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 being understood and intended, and being 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 whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of the 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 common benefit of all Certificateholders. For the protection and enforcement of the provisions of this Section 11.08, each and every Certificateholder or the Trustee shall be entitled to such relief as can be given either at law or in equity.

	
            Section 11.09
 	
            Inspection and Audit Rights.  
 

The Master Servicer agrees that, on reasonable prior notice, it will permit any representative of the Depositor or the Trustee during the Master Servicer’s normal business hours, to examine all the books of account, records, reports and other papers of the Master Servicer relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants selected by the Depositor and the Trustee and to discuss its affairs, finances and accounts relating to such Mortgage Loans with its officers, employees and independent public accountants (and by this provision the Master Servicer hereby authorizes such accountants to discuss with such representative such affairs, finances and accounts), all at such reasonable times and as often as may be reasonably requested. Any out-of-pocket expense incident to the exercise by the
Depositor or the Trustee of any right under this Section 11.09 shall be borne by the party requesting such inspection, subject to such party’s right to reimbursement hereunder (in the case of the Trustee, pursuant to Section 9.05 hereof.

	
            Section 11.10
 	
            Certificates Nonassessable and Fully Paid.  
 

It is the intention of the Depositor that Certificateholders shall not be personally liable for obligations of the Trust Fund, that the interests in the Trust Fund represented by the Certificates shall be nonassessable for any reason whatsoever, and that the Certificates, upon due authentication thereof by the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

 

 

 

	
            Section 11.11
 	
            Third Party Rights.
 

The Swap Provider and the Swap Administrator shall be third-party beneficiaries of this Agreement to the same extent as if they were parties hereto, and shall have the right to enforce the provisions of this Agreement.

*     *     *

 

 

 

IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Seller and the Trustee have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

BEAR STEARNS ASSET BACKED SECURITIES I LLC,

as Depositor

	
            By:
 	
            /s/ Baron Silverstein  
 
	
            Name:
 	
            Baron Silverstein
 	
             

	
            Title:
 	
            Vice President
 	
             

				

EMC MORTGAGE CORPORATION,

as Seller and Master Servicer

	
            By:
 	
            /s/ Mark Ehrenreich  
 	
             

	
            Name:
 	
            Mark Ehrenreich
 	
             

	
            Title:
 	
            Senior Vice President
 
				

LASALLE BANK NATIONAL ASSOCIATION,

	
             
	
            as Trustee
 	
             

	
            By:
 	
            /s/ Rita Lopez  
 	
             

	
            Name:
 	
            Rita Lopez
 	
             

	
            Title:
 	
            Assistant Vice President
 
					

 

 

 

	
            STATE OF NEW YORK
 	
            )
 	
             

	
             
	
            ) ss.:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Baron Silverstein, personally known to me on the basis of satisfactory evidence to be an authorized representative of Bear Stearns Asset Backed Securities I LLC, one of the companies that executed the within instrument, and also known to me to be the person who executed it on behalf of such limited liability company and acknowledged to me that such limited liability company 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]

 

 

 

 

	
            STATE OF TEXAS
 	
            )
 	
             

	
             
	
            ) ss.:
 
	
            COUNTY OF DALLAS
 	
            )
 	
             

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared _______________, personally known to me on the basis of satisfactory evidence to be an authorized representative of EMC Mortgage Corporation, one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

	
            STATE OF ILLINOIS
 	
            )
 	
             

	
             
	
            ) ss.:
 
	
            COUNTY OF COOK
 	
            )
 	
             

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Rita Lopez, personally known to me on the basis of satisfactory evidence to be an authorized representative of LaSalle Bank National Association that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

 

 

EXHIBIT A-1

Form of Class A 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”).

THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. 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 TRUSTEE NAMED HEREIN.

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.

EACH HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(h) OF THE POOLING AGREEMENT.

 

 

 

	

            Certificate No. 1
 	

            Adjustable Pass-Through Rate
 
	
             
 	
             
 
	
            Class [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2][III-A-1][III-A-2][IV-A-1][IV-A-2]

Senior
 	
             
 
	
             
 	
             
 
	
            Date of Pooling and Servicing Agreement

and Cut-off Date: April 1, 2005
 	
            Aggregate Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            First Distribution Date:

May 25, 2005
 	
            Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            Master Servicer:

EMC Mortgage Corporation
 	
            CUSIP: [_____]
 
	
             
 	
             
 
	
            Last Scheduled Distribution Date:

[___________ , ___]
 	
             
 

 

ASSET-BACKED CERTIFICATE

SERIES 2005-HE4

evidencing a fractional undivided interest in the distributions allocable to the Class [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2][III-A-1][III-A-2][IV-A-1][IV-A-2] Certificates with respect to a Trust Fund consisting primarily of a pool of conventional, closed-end, first and second lien, one- to four-family fixed and adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

This Certificate is payable solely from the assets of the Trust Fund, and does not represent an obligation of or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee referred to below or any of their affiliates or any other person. Neither this Certificate nor the underlying Mortgage Loans are guaranteed or insured by any governmental entity or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of their affiliates or any other person. None of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any of their affiliates will have any obligation with respect to any certificate or other obligation secured by or payable from payments on the Certificates.

This certifies that Cede & Co. is the registered owner of the Percentage Interest evidenced hereby in the beneficial ownership interest of Certificates of the same Class as this 

 

 

Certificate in a trust (the “Trust Fund”) generally consisting of conventional, closed-end first and second lien, fixed and adjustable rate mortgage loans secured by one- to four- family residences (collectively, the “Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. EMC will act as master servicer of the Mortgage Loans (in that capacity, the “Master Servicer,” which term includes any successors thereto under the Agreement referred to below). The Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and Master Servicer and LaSalle Bank 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, capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

Interest on this Certificate will accrue from and including the immediately preceding Distribution Date (or with respect to the First Distribution Date, the Closing Date) to and including the day prior to the current Distribution Date on the Certificate Principal Balance hereof at a per annum rate equal to the Pass-Through Rate set forth above. The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 so long as such Certificate remains in book-entry form (and otherwise, the close of business on the last Business Day of the month immediately preceding the month
of such Distribution Date), an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount (of interest and principal, if any) required to be distributed to the Holders of Certificates of the same Class as this Certificate.  The Assumed Final Distribution Date is the Distribution Date in the month following the latest scheduled maturity date of any Mortgage Loan.

Each holder of a Certificate or beneficial ownership shall be deemed to have made the representations set forth in Section 6.02(h) of the Pooling Agreement.

Distributions on this Certificate will be made by the Trustee by check mailed to the address of the Person entitled thereto as such name and address shall appear on the Certificate Register or, if such Person so requests by notifying the Trustee in writing as specified in the Agreement. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Trustee for that purpose and designated in such notice. The initial Certificate Principal Balance of this Certificate is set forth above. The Certificate Principal Balance hereof will be reduced to the extent of distributions allocable to principal hereon and any Realized Losses allocable hereto.

This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.

 

 

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the Trust Fund for payment hereunder and that the Trustee is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced hereby, and the rights, duties and immunities of the Trustee.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Agreement from time to time by the parties thereto with the consent of the Holders of each Class of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes.  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 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 with the Trustee upon surrender of this Certificate for registration of transfer at the offices or agencies maintained by the Trustee for such purposes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates in authorized denominations representing a like aggregate Percentage Interest will be issued to the designated transferee.

The Certificates are issuable only as registered Certificates without coupons in the Classes and denominations specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, this Certificate is exchangeable for one or more new Certificates evidencing the same Class and in the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made to the Certificateholders for any such registration of transfer, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Depositor, the Master Servicer, the Trustee and any agent of any of them may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of Depositor, the Master Servicer, the Trustee or any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby (other than the obligations to make payments to Certificateholders with respect to the termination of the Agreement) shall terminate upon the earlier of (i) the later of (A) the maturity or other liquidation (or Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the remittance of all funds due under the Agreement, or (ii) the optional repurchase by the party named in the Agreement of all the Mortgage Loans and other 

 

 

assets of the Trust Fund in accordance with the terms of the Agreement. Such optional repurchase may be made only on or after the first Distribution Date on which the aggregate Stated Principal Balance of the Mortgage Loans is less than or equal to a certain percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as set forth in the Agreement.  The exercise of such right will effect the early retirement of the Certificates. In no event, however, will the Trust Fund created by the Agreement continue beyond the earlier of (i) the expiration of 21 years after the death of certain persons identified in the Agreement and (ii) the Latest Possible Maturity Date (as defined in the Agreement).

Unless this Certificate has been countersigned by an authorized signatory of the Trustee 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 Trustee has caused this Certificate to be duly executed.

	
            Dated: _____________, ____
 	
            LASALLE BANK NATIONAL ASSOCIATION
 

not in its individual capacity but solely as Trustee

	
            By:__________________________________
 

Authorized Signatory

CERTIFICATE OF AUTHENTICATION

This is one of the Class [I-A-1][I-A-2][I-A-3][II-A-1][II-A-2][III-A-1][III-A-2][IV-A-1][IV-A-2] Certificates referred to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION

Authorized signatory of LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
            By:  
 	
             _________________________________________________

	
             
	
            Authorized Signatory
 
			

 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto __________________________________ (Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Asset-Backed 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 Certificate Registrar 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  __________________, the assignee named above, or ________________________, as its agent.

 

 

EXHIBIT A-2

Form of Class M Certificates

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR 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] [,] [AND] [CLASS M-6 CERTIFICATES] [AND] [CLASS M-7 CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

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”).

THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO.  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 TRUSTEE NAMED HEREIN.

[For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6]

[EACH HOLDER OF A CERTIFICATE OR BENEFICIAL OWNERSHIP SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(h) OF THE POOLING AGREEMENT.]

[For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6]

[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.]

 [For Class M-7 and Class M-8] [THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES 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 ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME
WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION.]

 

 [For Class M-7 and Class M-8] [THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH 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, AS AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE SECURITIES ADMINISTRATOR, THE
MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR UNLESS AN OPINION SPECIFIED IN SECTION 6.02 OF THE AGREEMENT IS PROVIDED.]

 

 

 

 

	
            Certificate No.1
 	
            Adjustable Pass-Through Rate
 
	
             
 	
             
 
	
            Class M-[1][2][3][4][5][6][7][8] Subordinate
 	
             
 
	
             
 	
             
 
	
            Date of Pooling and Servicing Agreement 

and Cut-off Date: April 1, 2005
 	
            Aggregate Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            First Distribution Date:

May 25, 2005
 	
            Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            Master Servicer:

EMC Mortgage Corporation
 	
            CUSIP: [_____]
 
	
             
 	
             
 
	
            Last Scheduled Distribution Date:

[________], 2035
 	
             
 
	
             
 	
             
 

 

ASSET-BACKED CERTIFICATE

SERIES 2005-HE4

evidencing a fractional undivided interest in the distributions allocable to the Class M-[1][2][3][4][5][6][7][8] Certificates with respect to a Trust Fund consisting primarily of a pool of conventional, closed-end one- to four-family first and second lien, one- to four-family fixed and adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

This Certificate is payable solely from the assets of the Trust Fund, and does not represent an obligation of or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee referred to below or any of their affiliates or any other person. Neither this Certificate nor the underlying Mortgage Loans are guaranteed or insured by any governmental entity or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of their affiliates or any other person. None of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any of their affiliates will have any obligation with respect to any certificate or other obligation secured by or payable from payments on the Certificates.

This certifies that ____________________ is the registered owner of the Percentage Interest evidenced hereby in the beneficial ownership interest of Certificates of the same Class as this Certificate in a trust (the “Trust Fund”) generally consisting of conventional, 

 

 

closed-end first and second lien, fixed and adjustable rate mortgage loans secured by one- to four- family residences (collectively, the “Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. EMC will act as master servicer of the Mortgage Loans (in that capacity, the “Master Servicer,” which term includes any successors thereto under the Agreement referred to below). The Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and Master Servicer and LaSalle Bank 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, capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

[For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6]                               [Interest on this Certificate will accrue from and including the immediately preceding Distribution Date (or with respect to the First Distribution Date, the Closing Date) to and including the day prior to the current Distribution Date on the Certificate Principal Balance hereof at a per annum rate equal to the Pass-Through Rate set forth above. The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 so long as such Certificate remains in book-entry form (and otherwise, the close of business on the last Business Day of the month immediately preceding the month of such Distribution Date), an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount (of interest and principal, if any) required to be distributed to the Holders of Certificates of the same Class as this Certificate.  The Assumed Final Distribution Date is the Distribution Date in the month following the latest scheduled maturity date of any Mortgage Loan.]

[For Class M-7 and Class M-8] [Interest on this Certificate will accrue from and including the immediately preceding Distribution Date (or with respect to the First Distribution Date, the Closing Date) to and including the day prior to the current Distribution Date on the Certificate Principal Balance hereof at a per annum rate equal to the Pass-Through Rate set forth above. The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 last Business Day of the month immediately preceding the month of such Distribution date so long as this Certificate remains in non book-entry form (and otherwise, the close of business on
the Business Day immediately preceding such Distribution Date) an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amount (of interest and principal, if any) required to be distributed to the Holders of Certificates of the same Class as this Certificate.  The Assumed Final Distribution Date is the Distribution Date in the month following the latest scheduled maturity date of any Mortgage Loan.]

 

 

Distributions on this Certificate will be made by the Trustee by check mailed to the address of the Person entitled thereto as such name and address shall appear on the Certificate Register or, if such Person so requests by notifying the Trustee in writing as specified in the Agreement. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Trustee for that purpose and designated in such notice. The initial Certificate Principal Balance of this Certificate is set forth above. The Certificate Principal Balance hereof will be reduced to the extent of distributions allocable to principal hereon and any Realized Losses allocable hereto.

[For Class M-7 and Class M-8] [No transfer of this Class M-7 Certificate or Class M-8 Certificate will be made unless such transfer is (i) exempt from the registration requirements of the Securities Act of 1933, as amended, and any applicable state securities laws or is made in accordance with said Act and laws and (ii) made in accordance with Section 6.02 of the Agreement.  In the event that such transfer is to be made the Trustee shall register such transfer if, (i) made to a transferee who has provided the Trustee with evidence as to its QIB status; or (ii) (A) the transferor has advised the Trustee in writing that the Certificate is being transferred to an Institutional Accredited Investor and (B) prior to such transfer the transferee furnishes to the Trustee an Investment Letter; provided that if based upon an Opinion of Counsel to the effect that (A) and (B) above are not sufficient
to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable laws, the Trustee shall as a condition of the registration of any such transfer require the transferor to furnish such other certifications, legal opinions or other information prior to registering the transfer of this Certificate as shall be set forth in such Opinion of Counsel.]

This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the Trust Fund for payment hereunder and that the Trustee is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced hereby, and the rights, duties and immunities of the Trustee.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Agreement from time to time by the parties thereto with the consent of the Holders of the Class or Classes of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes.  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 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 with the Trustee upon surrender of this Certificate for registration of transfer at the offices or agencies maintained by the Trustee for such purposes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates in authorized denominations representing a like aggregate Percentage Interest will be issued to the designated transferee.

[For Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6] [Each holder of a Certificate or beneficial ownership shall be deemed to have made the representations set forth in Section 6.02(h) of the Pooling Agreement.]

 

 [For Class M-7 and Class M-8] [This Certificate may not be acquired directly or indirectly by, or on behalf of, an employee benefit plan or other retirement arrangement which 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, as amended, unless the transferee certifies or represents that the proposed transfer and holding of a Certificate and the servicing, management and operation of the trust and its assets: (i) will not result in any prohibited transaction which is not covered under an individual or class prohibited transaction exemption, including, but not limited to, Prohibited Transaction Exemption (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 or PTE 96-23 and (ii) will not give rise to any additional obligations on the part of the Depositor, the Master Servicer or the Trustee,
which will be deemed represented by an owner of a Book-Entry Certificate or a Global Certificate or unless an opinion specified in section 6.02 of the Agreement is provided. This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.]

 

The Certificates are issuable only as registered Certificates without coupons in the Classes and denominations specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, this Certificate is exchangeable for one or more new Certificates evidencing the same Class and in the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made to the Certificateholders for any such registration of transfer, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Depositor, the Master Servicer, the Trustee and any agent of any of them 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 or any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby (other than the obligations to make payments to Certificateholders with respect to the termination 

 

 

of the Agreement) shall terminate upon the earlier of (i) the later of (A) the maturity or other liquidation (or Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the remittance of all funds due under the Agreement, or (ii) the optional repurchase by the party named in the Agreement of all the Mortgage Loans and other assets of the Trust Fund in accordance with the terms of the Agreement. Such optional repurchase may be made only on or after the first Distribution Date on which the aggregate Stated Principal Balance of the Mortgage Loans is less than or equal to a certain percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as set forth in the Agreement.  The exercise of such right will effect the early
retirement of the Certificates. In no event, however, will the Trust Fund created by the Agreement continue beyond the earlier of (i) the expiration of 21 years after the death of certain persons identified in the Agreement and (ii) the Latest Possible Maturity Date (as defined in the Agreement).

Unless this Certificate has been countersigned by an authorized signatory of the Trustee 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 Trustee has caused this Certificate to be duly executed.

	
            Dated: ______________, _____
 	
            LASALLE BANK NATIONAL ASSOCIATION
 

not in its individual capacity but solely as Trustee

By:____________________________   

Authorized Signatory

CERTIFICATE OF AUTHENTICATION

This is one of the Class M-[1][2][3][4][5][6][7][8] Certificates referred to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION

Authorized signatory of LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
            By: _______________________________ 
 

Authorized Signatory

 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto __________________________________ (Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Asset-Backed 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 Certificate Registrar 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  __________________, the assignee named above, or ________________________, as its agent.

 

 

EXHIBIT A-3

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”).

THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE PRINCIPAL PAYMENTS HEREON. 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 TRUSTEE NAMED HEREIN.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES 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 ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION.

 

 

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 6.02(h) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

 

 

 

	
            Certificate No.1
 	
            Percentage Interest: 100%
 
	
             
 	
             
 
	
            Class P
 	
             
 
	
             
 	
             
 
	
            Date of Pooling and Servicing Agreement and Cut-off Date: April 1, 2005
 	
            Aggregate Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$100.00
 
	
             
 	
             
 
	
            First Distribution Date:

May 25, 2005
 	
            Initial Certificate Principal Balance of this Certificate as of the Cut-off Date:

$100.00
 
	
             
 	
             
 
	
            Master Servicer:

EMC Mortgage Corporation
 	
            CUSIP:  [_____]
 
	
             
 	
             
 
	
            Last Scheduled Distribution Date:

[________], 2035
 	
             
 
	
             
 	
             
 

 

ASSET-BACKED CERTIFICATE

SERIES 2005-HE4

evidencing a fractional undivided interest in the distributions allocable to the Class P Certificates with respect to a Trust Fund consisting primarily of a pool of conventional, closed-end one- to four-family first and second lien, fixed and adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

This Certificate is payable solely from the assets of the Trust Fund, and does not represent an obligation of or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee referred to below or any of their affiliates or any other person. Neither this Certificate nor the underlying Mortgage Loans are guaranteed or insured by any governmental entity or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer, the Trustee or any of their affiliates or any other person. None of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any of their affiliates will have any obligation with respect to any certificate or other obligation secured by or payable from payments on the Certificates.

This certifies that ___________________ is the registered owner of the Percentage Interest evidenced hereby in the beneficial ownership interest of Certificates of the same Class as this Certificate in a trust (the “Trust Fund”) generally consisting primarily of a pool of fixed and adjustable interest rate, conventional, closed-end  mortgage loans that are secured by first and second liens on one- to four-family residences (collectively, the “Mortgage 

 

 

Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. EMC will act as master servicer of the Mortgage Loans (in that capacity, the “Master Servicer,” which term includes any successors thereto under the Agreement referred to below). The Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and Master Servicer and LaSalle Bank 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, capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the calendar month immediately preceding the month in which the Distribution Date occurs, an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amounts required to be distributed to the Holders of Certificates of the same Class as this Certificate. 

Distributions on this Certificate will be made by the Trustee by check mailed to the address of the Person entitled thereto as such name and address shall appear on the Certificate Register or, if such Person so requests by notifying the Trustee in writing as specified in the Agreement. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Trustee for that purpose and designated in such notice.

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 Trustee 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 D and either Exhibit E or Exhibit F, as applicable, 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 or the Master Servicer 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. Neither the Depositor nor the Trustee 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 Seller and the Master 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.

No transfer of this Class P Certificate will be made unless the Trustee shall have received either (i) the opinion of counsel set forth in Section 6.02(h) of the Agreement or (ii) a representation letter under Section 6.02 of the Agreement, in the form as described by the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction provisions of ERISA or Section 4975 of the Code (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.

This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the Trust Fund for payment hereunder and that the Trustee is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced hereby, and the rights, duties and immunities of the Trustee.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Agreement from time to time by the parties thereto with the consent of the Holders of the Class or Classes of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes.  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 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 with the Trustee upon surrender of this Certificate for registration of transfer at the offices or agencies maintained by the Trustee for such purposes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates in authorized denominations representing a like aggregate Percentage Interest will be issued to the designated transferee.

The Certificates are issuable only as registered Certificates without coupons in the Classes and denominations specified in the Agreement. As provided in the Agreement and 

 

 

subject to certain limitations therein set forth, this Certificate is exchangeable for one or more new Certificates evidencing the same Class and in the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made to the Certificateholders for any such registration of transfer, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Depositor, the Master Servicer, the Trustee and any agent of any of them 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 or any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby (other than the obligations to make payments to Certificateholders with respect to the termination of the Agreement) shall terminate upon the earlier of (i) the later of (A) the maturity or other liquidation (or Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the remittance of all funds due under the Agreement, or (ii) the optional repurchase by the party named in the Agreement of all the Mortgage Loans and other assets of the Trust Fund in accordance with the terms of the Agreement. Such optional repurchase may be made only on or after the first Distribution Date on which the aggregate Stated Principal Balance of the Mortgage Loans is less than or equal to a
certain percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as set forth in the Agreement.  The exercise of such right will effect the early retirement of the Certificates. In no event, however, will the Trust Fund created by the Agreement continue beyond the earlier of (i) the expiration of 21 years after the death of certain persons identified in the Agreement and (ii) the Latest Possible Maturity Date (as defined in the Agreement).

Unless this Certificate has been countersigned by an authorized signatory of the Trustee 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 Trustee has caused this Certificate to be duly

executed.

	
            Dated: ___________, ____
 	
            LASALLE BANK NATIONAL ASSOCIATION,
 

not in its individual capacity but solely as Trustee

	
            By:  ________________________________________  
 

Authorized Signatory

CERTIFICATE OF AUTHENTICATION

This is one of the Class P Certificates referred to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION

Authorized signatory of LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
            By:  ________________________________________  
 

Authorized Signatory

 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto __________________________________ (Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Asset-Backed 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 Certificate Registrar 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  __________________, the assignee named above, or ________________________, as its agent.

 

 

EXHIBIT A-4

Form of Class CE Certificates

THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES AND THE CLASS M CERTIFICATES AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

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 “SECURITIES 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 ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION.

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 6.02(h) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE 

 

 

LAW, WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

 

 

 

	
            Certificate No.1
 	
            Percentage Interest: 100%
 
	
             
 	
             
 
	
            Class CE
 	
            Adjustable Pass-Through Rate
 
	
             
 	
             
 
	
            Date of Pooling and Servicing Agreement 

and Cut-off Date: April 1, 2005
 	
            Initial Certificate Notional Amount of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            First Distribution Date:

May 25, 2005
 	
            Aggregate Certificate Notional Amount of this Certificate as of the Cut-off Date:

$[__________]
 
	
             
 	
             
 
	
            Master Servicer:

EMC Mortgage Corporation
 	
            CUSIP: [_____]
 
	
             
 	
             
 
	
            Last Scheduled Distribution Date:

[________], 2035
 	
             
 
	
             
 	
             
 

 

ASSET-BACKED CERTIFICATE

SERIES 2005-HE4

evidencing a fractional undivided interest in the distributions allocable to the Class CE Certificates with respect to a Trust Fund consisting primarily of a pool of fixed and adjustable interest rate, conventional, closed-end  mortgage loans that are secured by first and second liens on one- to four-family residences sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

This Certificate is payable solely from the assets of the Trust Fund, and does not represent an obligation of or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee referred to below or any of their affiliates or any other person. Neither this Certificate nor the underlying Mortgage Loans are guaranteed or insured by any governmental entity or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee or any of their affiliates or any other person. None of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any of their affiliates will have any obligation with respect to any certificate or other obligation secured by or payable from payments on the Certificates.

This certifies that __________________ is the registered owner of the Percentage Interest evidenced hereby in the beneficial ownership interest of Certificates of the same Class as this Certificate in a trust (the “Trust Fund”) generally consisting primarily of a pool of fixed and adjustable interest rate, conventional, closed-end mortgage loans that are secured by first and second liens on one- to four-family residences (collectively, the “Mortgage Loans”) sold by Bear 

 

 

Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. EMC will act as master servicer of the Mortgage Loans (in that capacity, the “Master Servicer,” which term includes any successors thereto under the Agreement referred to below). The Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and Master Servicer and LaSalle Bank 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, capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the calendar month immediately preceding the month in which the Distribution Date occurs, an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amounts required to be distributed to the Holders of Certificates of the same Class as this Certificate. 

Distributions on this Certificate will be made by the Trustee by check mailed to the address of the Person entitled thereto as such name and address shall appear on the Certificate Register or, if such Person so requests by notifying the Trustee in writing as specified in the Agreement. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Trustee for that purpose and designated in such notice.

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 Trustee 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 D and either Exhibit E or Exhibit F, as applicable, 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, or the Master Servicer 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. Neither the Depositor nor the Trustee 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 Seller and the Master 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.

No transfer of this Class CE Certificate will be made unless the Trustee shall have received either (i) the opinion of counsel set forth in Section 6.02(h) of the Agreement or (ii) a representation letter under Section 6.02 of the Agreement, in the form as described by the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction provisions of ERISA or Section 4975 of the Code (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.

This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the Trust Fund for payment hereunder and that the Trustee is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced hereby, and the rights, duties and immunities of the Trustee.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Agreement from time to time by the parties thereto with the consent of the Holders of the Class or Classes of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes.  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 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 with the Trustee upon surrender of this Certificate for registration of transfer at the offices or agencies maintained by the Trustee for such purposes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates in authorized denominations representing a like aggregate Percentage Interest will be issued to the designated transferee.

The Certificates are issuable only as registered Certificates without coupons in the Classes and denominations specified in the Agreement. As provided in the Agreement and 

 

 

subject to certain limitations therein set forth, this Certificate is exchangeable for one or more new Certificates evidencing the same Class and in the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made to the Certificateholders for any such registration of transfer, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Depositor, the Master Servicer, the Trustee and any agent of any of them 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 or any such agent shall be affected by notice to the contrary.

The obligations created by the Agreement and the Trust Fund created thereby (other than the obligations to make payments to Certificateholders with respect to the termination of the Agreement) shall terminate upon the earlier of (i) the later of (A) the maturity or other liquidation (or Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and  disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the remittance of all funds due under the Agreement, or (ii) the optional repurchase by the party named in the Agreement of all the Mortgage Loans and other assets of the Trust Fund in accordance with the terms of the Agreement. Such optional repurchase may be made only on or after the first Distribution Date on which the aggregate Stated Principal Balance of the Mortgage Loans is less than or equal to a
certain percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as set forth in the Agreement. The exercise of such right will effect the early retirement of the Certificates. In no event, however, will the Trust Fund created by the Agreement continue beyond the earlier of (i) the expiration of 21 years after the death of certain persons identified in the Agreement and (ii) the Latest Possible Maturity Date (as defined in the Agreement).

Unless this Certificate has been countersigned by an authorized signatory of the Trustee 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 Trustee has caused this Certificate to be duly executed.

	
            Dated: ___________, ____
 	
            LASALLE BANK NATIONAL ASSOCIATION
 

not in its individual capacity but solely as Trustee

	
            By:  ___________________________________________  
 

Authorized Signatory

CERTIFICATE OF AUTHENTICATION

This is one of the Class CE Certificates referred to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION

Authorized signatory of LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
            By:  _______________________________________  
 

Authorized Signatory

 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto __________________________________ (Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Asset-Backed 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 Certificate Registrar 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  __________________, the assignee named above, or ________________________, as its agent.

 

 

EXHIBIT A-5

Form of Class R Certificates

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL 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”).

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 6.02(h) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT (A) 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), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) 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 UNLESS SUCH ORGANIZATION IS SUBJECT
TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE 

 

 

FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR 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 OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

 

 

 

	
            Certificate No.1
 	
             
 
	
             
 	
             
 
	
            Class R[-1][-2][-3]x
 	
            Percentage Interest: 100%
 
	
             
 	
             
 
	
            Date of Pooling and Servicing Agreement and Cut-off Date: April 1, 2005
 	
             
 
	
             
 	
             
 
	
            First Distribution Date:

May 25, 2005
 	
             
 
	
             
 	
             
 
	
            Master Servicer:

EMC Mortgage Corporation
 	
            CUSIP: [_____]
 
	
             
 	
             
 
	
            Last Scheduled Distribution Date:

[_______], 2035
 	
             
 
	
             
 	
             
 

 

ASSET-BACKED CERTIFICATE

SERIES 2005-HE4

evidencing a fractional undivided interest in the distributions allocable to the Class R[-1][-2][-3]x Certificates with respect to a Trust Fund consisting primarily of a pool of conventional, closed-end first and second lien one- to four-family fixed and adjustable interest rate mortgage loans sold by BEAR STEARNS ASSET BACKED SECURITIES I LLC.

This Certificate is payable solely from the assets of the Trust Fund, and does not represent an obligation of or interest in Bear Stearns Asset Backed Securities I LLC, the Master Servicer or the Trustee referred to below or any of their affiliates or any other person. Neither this Certificate nor the underlying Mortgage Loans are guaranteed or insured by any governmental entity or by Bear Stearns Asset Backed Securities I LLC, the Master Servicer, the Trustee or any of their affiliates or any other person. None of Bear Stearns Asset Backed Securities I LLC, the Master Servicer or any of their affiliates will have any obligation with respect to any certificate or other obligation secured by or payable from payments on the Certificates.

This certifies that Bear, Stearns Securities Corp. is the registered owner of the Percentage Interest evidenced hereby in the beneficial ownership interest of Certificates of the same Class as this Certificate in a trust (the “Trust Fund”) generally consisting of conventional, closed-end first and second lien, fixed and adjustable rate mortgage loans secured by one- to four- family residences (collectively, the “Mortgage Loans”) sold by Bear Stearns Asset Backed Securities I LLC (“BSABS I”). The Mortgage Loans were sold by EMC Mortgage Corporation (“EMC”) to BSABS I. EMC will act as master servicer of the Mortgage Loans (in that capacity, 

 

 

the “Master Servicer,” which term includes any successors thereto under the Agreement referred to below). The Trust Fund was created pursuant to the Pooling and Servicing Agreement, dated as of the Cut-off Date specified above (the “Agreement”), among BSABS I, as depositor (the “Depositor”), EMC Mortgage Corporation as seller and Master Servicer and LaSalle Bank 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, capitalized terms used herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is bound.

Each Holder of this Certificate will be deemed to have agreed to be bound by the

restrictions set forth in the Agreement to the effect that (i) each person holding or acquiring any Ownership Interest in this Certificate must be a Permitted Transferee, (ii) the transfer of any Ownership Interest in this Certificate will be conditioned upon the delivery to the Trustee of, among other things, an affidavit to the effect that it is a Permitted Transferee, (iii) any attempted or purported transfer of any Ownership Interest in this Certificate in violation of such restrictions will be absolutely null and void and will vest no rights in the purported transferee, and (iv) if any person other than a Permitted Transferee acquires any Ownership Interest in this Certificate in violation of such restrictions, then the Depositor will have the right, in its sole discretion and without notice to the Holder of this Certificate, to sell this Certificate to a purchaser selected by the Depositor, which
purchaser may be the Depositor, or any affiliate of the Depositor, on such terms and conditions as the Depositor may choose.

The Trustee will distribute on the 25th day of each month, or, if such 25th day is not a Business Day, the immediately following Business Day (each, 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 last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the calendar month immediately preceding the month in which the Distribution Date occurs, an amount equal to the product of the Percentage Interest evidenced by this Certificate and the amounts required to be distributed to the Holders of Certificates of the same Class as this Certificate. 

Distributions on this Certificate will be made by the Trustee by check mailed to the address of the Person entitled thereto as such name and address shall appear on the Certificate Register or, if such Person so requests by notifying the Trustee in writing as specified in the Agreement. Notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency appointed by the Trustee for that purpose and designated in such notice.

No transfer of this Class R[-1][-2][-3]x Certificate will be made unless the Trustee shall have received either (i) the opinion of counsel set forth in Section 6.02(h) of the Agreement or (ii) a representation letter under Section 6.02 of the Agreement, in the form as described by the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction provisions of ERISA or Section 4975 of the Code (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.

This Certificate is one of a duly authorized issue of Certificates designated as set forth on the face hereof (the “Certificates”). The Certificates, in the aggregate, evidence the entire beneficial ownership interest in the Trust Fund formed pursuant to the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the Trust Fund for payment hereunder and that the Trustee is not liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

This Certificate does not purport to summarize the Agreement and reference is made to the Agreement for the interests, rights and limitations of rights, benefits, obligations and duties evidenced hereby, and the rights, duties and immunities of the Trustee.

The Agreement permits, with certain exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Agreement from time to time by the parties thereto with the consent of the Holders of the Class or Classes of Certificates affected thereby evidencing over 50% of the Voting Rights of such Class or Classes.  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 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 with the Trustee upon surrender of this Certificate for registration of transfer at the offices or agencies maintained by the Trustee for such purposes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Trustee duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates in authorized denominations representing a like aggregate Percentage Interest will be issued to the designated transferee.

The Certificates are issuable only as registered Certificates without coupons in the Classes and denominations specified in the Agreement. As provided in the Agreement and subject to certain limitations therein set forth, this Certificate is exchangeable for one or more new Certificates evidencing the same Class and in the same aggregate Percentage Interest, as requested by the Holder surrendering the same.

No service charge will be made to the Certificateholders for any such registration of transfer, but the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The Depositor, the Master Servicer, the Trustee and any agent of any of them may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of Depositor, the Master Servicer, the Trustee or any such agent shall be affected by notice to the contrary.

 

 

The obligations created by the Agreement and the Trust Fund created thereby (other than the obligations to make payments to Certificateholders with respect to the termination of the Agreement) shall terminate upon the earlier of (i) the later of (A) the maturity or other liquidation (or Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and  disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan and (B) the remittance of all funds due under the Agreement, or (ii) the optional repurchase by the party named in the Agreement of all the Mortgage Loans and other assets of the Trust Fund in accordance with the terms of the Agreement. Such optional repurchase may be made only on or after the first Distribution Date on which the aggregate Stated Principal Balance of the Mortgage Loans is less than or equal to a
certain percentage of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date as set forth in the Agreement. The exercise of such right will effect the early retirement of the Certificates. In no event, however, will the Trust Fund created by the Agreement continue beyond the earlier of (i) the expiration of 21 years after the death of certain persons identified in the Agreement and (ii) the Latest Possible Maturity Date (as defined in the Agreement).

Unless this Certificate has been countersigned by an authorized signatory of the Trustee 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 Trustee has caused this Certificate to be duly executed.

	
            Dated: ____________, ____
 	
            LASALLE BANK NATIONAL ASSOCIATION,
 

not in its individual capacity but solely as Trustee

	
            By:_______________________________________  
 

Authorized Signatory

CERTIFICATE OF AUTHENTICATION

This is one of the Class R[-1][-2][-3]x Certificates referred to in the within-mentioned Agreement.

LASALLE BANK NATIONAL ASSOCIATION

Authorized signatory of LaSalle Bank National Association, not in its individual capacity but solely as Trustee

	
            By:______________________________  
 

Authorized Signatory

 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto __________________________________ (Please print or typewrite name and address including postal zip code of assignee) a Percentage Interest evidenced by the within Asset-Backed 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 Certificate Registrar 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  __________________, the assignee named above, or ________________________, as its agent.

 

 

EXHIBIT B

MORTGAGE LOAN SCHEDULE

[provided upon request]

 

 

EXHIBIT C

FORM OF TRANSFER AFFIDAVIT

Affidavit pursuant to Section 860E(e)(4) of the Internal Revenue Code of 1986, as amended, and for other purposes

	
            STATE OF
 	
            )
 

)ss:

	
            COUNTY OF
 	
            )
 

[NAME OF OFFICER], being first duly sworn, deposes and says:

1.          That he/she is [Title of Officer] of [Name of Investor] (the “Investor”), a [savings institution] [corporation] duly organized and existing under the laws of [the State of _____] [the United States], on behalf of which he makes this affidavit.

2.          That (i) the Investor is not a “disqualified organization” as defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended (the “Code”), or an electing large partnership as defined in Section 775(a) of the Code, and will not be a disqualified organization or an electing large partnership as of [Closing Date] [date of purchase]; (ii) it is not acquiring the Bear Stearns Asset Backed Securities I LLC Asset-Backed Certificates, Series 2005-HE4, Class R[-1][-2][-3]x Certificates (the “Residual Certificates”) for the account of a disqualified organization or an electing large partnership; (iii) it consents to any amendment of the Pooling and Servicing Agreement that shall be deemed necessary by Bear Stearns Asset Backed Securities I LLC
(upon advice of counsel) to constitute a reasonable arrangement to ensure that the Residual Certificates will not be owned directly or indirectly by a disqualified organization or an electing large partnership; and (iv) it will not transfer such Residual Certificates unless (a) it has received from the transferee an affidavit in substantially the same form as this affidavit containing these same seven representations and (b) as of the time of the transfer, it does not have actual knowledge that such affidavit is false.

3.          That the Investor is one of the following: (i) a citizen or resident of the United States, (ii) a corporation or partnership (including an entity treated as a corporation or partnership for federal income tax purposes) created or organized in, or under the laws of, the United States or any state thereof or the District of Columbia (except, in the case of a partnership, to the extent provided in regulations), provided that no partnership or other entity treated as a partnership for United States federal income tax purposes shall be treated as a United States person within the meaning of the Code 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 United States persons, (iii) an estate whose income is subject
to United States federal income tax regardless of its source, or (iv) a trust other than a “foreign trust” as defined in Section 7701 (a)(31) of the Code.

	
            4.
 	
            That the Investor’s taxpayer identification number is ______________________.
 

 

 

 

5.          That no purpose of the acquisition of the Residual Certificates is to avoid or impede the assessment or collection of tax.

6.          That the Investor understands that, as the holder of the Residual Certificates, the Investor may incur tax liabilities in excess of any cash flows generated by such Residual Certificates.

7.          That the Investor intends to pay taxes associated with holding the Residual Certificates as they become due.

IN WITNESS WHEREOF, the Investor has caused this instrument to be executed on its behalf, pursuant to authority of its Board of Directors, by its [Title of Officer] this ____ day of _________, 20__.

[NAME OF INVESTOR]

	
            By: ______________________________________  
 

[Name of Officer]

[Title of Officer]

[Address of Investor for receipt of distributions]

Address of Investor for receipt of tax information:

 

 

Personally appeared before me the above-named [Name of Officer], known or proved to me to be the same person who executed the foregoing instrument and to be the [Title of Officer] of the Investor, 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 Investor.

Subscribed and sworn before me this ___ day of _________, 20___.

NOTARY PUBLIC

COUNTY OF

STATE OF

My commission expires the ___ day of ___________________, 20___.

 

 

EXHIBIT D

FORM OF TRANSFEROR CERTIFICATE

______________, 200___

Bear Stearns Asset Backed Securities I LLC

383 Madison Avenue

New York, New York 10179

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois 60603

Attention: Bear Stearns Asset Backed Securities Trust 2005-HE4

	
            Re:
 	
            Bear Stearns Asset Backed Securities I LLC
 	
             

	
             
	
            Asset-Backed Certificates, Series 2005-HE4, Class[  
 	
            ]_
 
				

Ladies and Gentlemen:

In connection with the sale by ___________ (the “Seller”) to ________ (the “Purchaser”) of $_________ Initial Certificate Principal Balance of Asset-Backed Certificates, Series 2005-HE4, Class _____ (the “Certificates”), issued pursuant to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”), dated as of April 1, 2005, among Bear Stearns Asset Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage Corporation, as seller and master servicer and LaSalle Bank National Association, as trustee (the “Trustee”). The Seller hereby certifies, represents and warrants to, a covenants with, the Depositor and the Trustee that:

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,

 

________________________________
 
	
             
 	
      (Seller)
 
	
             
 	
            By:__________________________                                                                                                                                                                                                                             

            Name:________________________ 

            Title:_________________________
 

 

 

EXHIBIT E

FORM OF INVESTMENT LETTER-NON RULE 144A

	
            [Date]
 

[SELLER]

Bear Stearns Asset Backed Securities I LLC

383 Madison Avenue

New York, New York 10179

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois 60603

	
            Re:
 	
            Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4 (the “Certificates”), including the Class __ Certificates (the “Privately Offered Certificates”)                                          
                                          
  
 

Dear Ladies and Gentlemen:

In connection with our purchase of Privately Offered Certificates, we confirm that:

	
            (i)
 	
            we understand that the Privately Offered Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”) or any applicable state securities or “Blue Sky” laws, and are being sold to us in a transaction that is exempt from the registration requirements of such laws;
 
	
            (ii)
 	
            any information we desired concerning the Certificates, including the Privately Offered Certificates, the trust in which the Certificates represent the entire beneficial ownership interest (the “Trust”) or any other matter we deemed relevant to our decision to purchase Privately Offered Certificates has been made available to us;
 
	
            (iii)
 	
            we are able to bear the economic risk of investment in Privately Offered Certificates; we are an institutional “accredited investor” as defined in Section 501(a) of Regulation D promulgated under the Act and a sophisticated institutional investor;
 
	
            (iv)
 	
            we are acquiring Privately Offered Certificates for our own account, not as nominee for any other person, and not with a present view to any distribution or other disposition of the Privately Offered Certificates;
 
	
            (v)
 	
            we agree the Privately Offered Certificates must be held indefinitely by us (and may not be sold, pledged, hypothecated or in any way disposed of) unless subsequently registered under the Act and any applicable state securities or “Blue Sky” laws or an exemption from the registration 
 

 

 

requirements of the Act and any applicable state securities or “Blue Sky” laws is available;

	
            (vi)
 	
            we agree that in the event that at some future time we wish to dispose of or exchange any of the Privately Offered Certificates (such disposition or exchange not being currently foreseen or contemplated), we will not transfer or exchange any of the Privately Offered Certificates unless:
 

(A) (1) the sale is to an Eligible Purchaser (as defined below), (2) if required by the Pooling and Servicing Agreement (as defined below) a letter to substantially the same effect as either this letter or, if the Eligible Purchaser is a Qualified Institutional Buyer as defined under Rule 144A of the Act, the Rule 144A and Related Matters Certificate in the form attached to the Pooling and Servicing Agreement (as defined below) (or such other documentation as may be acceptable to the Trustee) is executed promptly by the purchaser and delivered to the addressees hereof and (3) all offers or solicitations in connection with the sale, whether directly or through any agent acting on our behalf, are limited only to Eligible Purchasers and are not made by means of any form of general solicitation or general advertising whatsoever; and

(B)  if the Privately Offered Certificate is not registered under the Act (as to which we acknowledge you have no obligation), the Privately Offered Certificate is sold in a transaction that does not require registration under the Act and any applicable state securities or “blue sky” laws and, if LaSalle Bank National Association (the “Trustee”) so requests, a satisfactory Opinion of Counsel is furnished to such effect, which Opinion of Counsel shall be an expense of the transferor or the transferee;

	
            (vii)
 	
            we agree to be bound by all of the terms (including those relating to restrictions on transfer) of the Pooling and Servicing, pursuant to which the Trust was formed; we have reviewed carefully and understand the terms of the Pooling and Servicing Agreement;
 
	
            (viii)
 	
            we either: (i) are not acquiring the Privately Offered Certificate directly or indirectly by, or on behalf of, an employee benefit plan or other retirement arrangement which is subject to Title I of the Employee Retirement Income Security Act of 1974, as amended, and/or section 4975 of the Internal Revenue Code of 1986, as amended, or (ii) in the case of the Privately Offered Certificates, have provided the Opinion of Counsel required by the Agreement. 
 
	
            ix)
 	
            We understand that each of the Privately Offered Certificates bears, and will continue to bear, a legend to substantiate the following effect: THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE 
 

 

 

REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES 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 ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN                RELIANCE ON RULE
144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE RECEIPT BY THE TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. [In the case of the Class M-7 Certificates and Class M-8 Certificates]: THIS CERTIFICATE MAY
NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH 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, AS AMENDED, UNLESS THE TRANSFEREE CERTIFIES OR REPRESENTS THAT THE PROPOSED TRANSFER AND HOLDING OF A CERTIFICATE AND THE SERVICING, MANAGEMENT AND OPERATION OF THE TRUST AND ITS ASSETS: (I) WILL NOT RESULT IN ANY PROHIBITED TRANSACTION WHICH IS NOT COVERED 

 

 

UNDER AN INDIVIDUAL OR CLASS PROHIBITED TRANSACTION EXEMPTION, INCLUDING, BUT NOT LIMITED TO, PROHIBITED TRANSACTION EXEMPTION (“PTE”) 84-14, PTE 91-38, PTE 90-1, PTE 95-60 OR PTE 96-23 AND (II) WILL NOT GIVE RISE TO ANY ADDITIONAL OBLIGATIONS ON THE PART OF THE DEPOSITOR, THE MASTER SERVICER OR THE TRUSTEE, WHICH WILL BE DEEMED REPRESENTED BY AN OWNER OF A BOOK-ENTRY CERTIFICATE OR A GLOBAL CERTIFICATE OR UNLESS AN OPINION SPECIFIED IN SECTION 6.02 OF THE AGREEMENT IS PROVIDED.

[In the case of the Class P Certificates and Class CE Certificates]:

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 6.02(h) OF THE AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN ANY NON-EXEMPT PROHIBITED TRANSACTIONS UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE TRUSTEE, MASTER SERVICER OR THE DEPOSITOR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.] 

“Eligible Purchaser” means a corporation, partnership or other entity which we have reasonable grounds to believe and do believe (i) can make representations with respect to itself to substantially the same effect as the representations set forth herein, and (ii) is either a Qualified Institutional Buyer as defined under Rule 144A of the Act or an institutional “Accredited Investor” as defined under Rule 501 of the Act.

Terms not otherwise defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement, dated as of April 1, 2005, among Bear Stearns Asset Backed Securities I LLC, as depositor, EMC Mortgage Corporation, as seller and master servicer and LaSalle Bank National Association, as Trustee (the “Pooling and Servicing Agreement’).

If the Purchaser proposes that its Certificates be registered in the name of a nominee on its behalf, the Purchaser has identified such nominee below, and has caused such nominee to complete the Nominee Acknowledgment at the end of this letter.

Name of Nominee (if any):          

 

 

IN WITNESS WHEREOF, this document has been executed by the undersigned who is duly authorized to do so on behalf of the undersigned Eligible Purchaser on the ___ day of ________, 20___.

Very truly yours,

[PURCHASER]

	
            By:  
 	
             _______________________________

	
             
	
            (Authorized Officer)
 
	
            By:
 	
             _______________________________

	
             
	
            (Attorney-in-fact)
 	
             

				

 

 

 

Nominee Acknowledgment

The undersigned hereby acknowledges and agrees that as to the Certificates being registered in its name, the sole beneficial owner thereof is and shall be the Purchaser identified above, for whom the undersigned is acting as nominee.

[NAME OF NOMINEE]

	
            By:______________________
 

(Authorized Officer)

	
            By: _____________________
 

(Attorney-in-fact)

 

 

 

EXHIBIT F

FORM OF RULE 144A AND RELATED MATTERS CERTIFICATE

[SELLER]

Bear Stearns Asset Backed Securities I LLC

383 Madison Avenue

New York, New York 10179

LaSalle Bank National Association

135 South LaSalle Street, Suite 1625

Chicago, Illinois 60603

	
            Re:
 	
            Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4 (the “Certificates”), including the Class __ Certificates (the “Privately Offered Certificates”)                                          
                       
 

Dear Ladies and Gentlemen:

In connection with our purchase of Privately Offered Certificates, the undersigned certifies to each of the parties to whom this letter is addressed that it is a qualified institutional buyer (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Act”)) as follows:

1.          It owned and/or invested on a discretionary basis eligible securities (excluding affiliate’s securities, bank deposit notes and CD’s, loan participations, repurchase agreements, securities owned but subject to a repurchase agreement and swaps), as described below:

Date: ______________, 20__ (must be on or after the close of its most recent fiscal year)

Amount: $ _____________________; and

	
            2.
 	
            The dollar amount set forth above is:
 	
             

	
             
	
            a.
 	
            greater than $100 million and the undersigned is one of the following entities:
 	
             

	
             
	
            (1)
 	
            [ ]
 	
            an insurance company as defined in Section 2(13) of the Act1; or
 
	 	(2)	[ ] 	an investment company registered under the Investment Company Act or any business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940; or 
	 	(3)	[ ] 	a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; or 
	 	(4)	[ ] 	a plan (i) established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivions, the law of which permit the purchase of securities of this type, for the benefit of its employees and (ii) the governing investment guidelines of which permit the purchase of securities of this type; or 
	 	(5)	[ ] 	a business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or 
	 	(6)	[ ] 	a corporation (other than a U.S. bank, savings and loan association or equivalent foreign institiution), partnership, Massachusetts or similar business trust, or an organization described in Section 501(c)(3) of the Internal Revenue Code; or 
	 	(7)	[ ] 	a U.S. bank, savings and loan association or equivalent foreign institution, which has an audited net worth of a least $25 million as demonstrated in its latest annual financial statements; or 
	 	(8)	[ ] 	an investment adviser registered under the Investment Advisers Act; or 
	 
	b.
	[ ]    greater than $10 million, and the undersigned is a broker-dealer registered with the SEC; or 
	 

	 	c.	[ ]    less than $10 million, and the undersigned is a broker-dealer registered with the SEC and will only purchase Rule 144A securities in transactions in which it acts as a riskless principal (as defined in Rule 144A); or	 
	 	d.	[ ] less than $100 million, and the undersigned is an investment company registered under the Investment Company Act of 1940, which, together with one or more registered investment companies having the same or an affiliated investment adviser, owns at least $100 million of eligible securities; or 	 
	 	e.	[ ] less than $100 million, and the undersigned is an entity, all the equity owners of which are qualified institutional buyers.	 
							

 

_________________________

1           A purchase by an insurance company for one or more of its separate accounts, as defined by Section 2(a)(37) of the Investment Company Act of 1940, which are neither registered nor required to be registered thereunder, shall be deemed to be a purchase for the account of such insurance company. 

 

 

 

 

The undersigned further certifies that it is purchasing a Privately Offered Certificate for its own account or for the account of others that independently qualify as “Qualified Institutional Buyers” as defined in Rule 144A. It is aware that the sale of the Privately Offered Certificates is being made in reliance on its continued compliance with Rule 144A. It is aware that the transferor may rely on the exemption from the provisions of Section 5 of the Act provided by Rule 144A. The undersigned understands that the Privately Offered Certificates may be resold, pledged or transferred only to (i) 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 in Rule 144A, or (ii) an institutional "accredited investor,"

; as such term is defined under Rule 501 of the Act in a transaction that otherwise does not constitute a public offering.

The undersigned agrees that if at some future time it wishes to dispose of or exchange any of the Privately Offered Certificates, it will not transfer or exchange any of the Privately Offered Certificates to a Qualified Institutional Buyer without first obtaining a Rule 144A and Related Matters Certificate in the form hereof from the transferee and delivering such certificate to the addressees hereof. Prior to making any transfer of Privately Offered Certificates, if the proposed Transferee is an institutional “accredited investor,” the transferor shall obtain from the transferee and deliver to the addressees hereof an Investment Letter in the form attached to the Pooling and Servicing Agreement, dated as of April 1, 2005, among Bear Stearns Asset Backed Securities I LLC, EMC Mortgage Corporation and LaSalle Bank National Association, as Trustee, pursuant to which the
Certificates were issued.

The undersigned certifies that it either: (i) is not acquiring the Privately Offered Certificate directly or indirectly by, or on behalf of, an employee benefit plan or other retirement arrangement which is subject to Title I of the Employee Retirement Income Security Act of 1974, as amended, and/or section 4975 of the Internal Revenue Code of 1986, as amended, or (ii) in the case of the Privately Offered Certificates, has provided the Opinion of Counsel required by the Agreement. 

If the Purchaser proposes that its Certificates be registered in the name of a nominee on its behalf, the Purchaser has identified such nominee below, and has caused such nominee to complete the Nominee Acknowledgment at the end of this letter.

Name of Nominee (if any):          

 

 

 

IN WITNESS WHEREOF, this document has been executed by the undersigned who is duly authorized to do so on behalf of the undersigned Eligible Purchaser on the ____ day of ___________, 20___.

Very truly yours,

[PURCHASER]

	
            By:__________________________
 

(Authorized Officer)

	
            By:__________________________
 

(Attorney-in-fact)

 

 

Nominee Acknowledgment

The undersigned hereby acknowledges and agrees that as to the Certificates being registered in its name, the sole beneficial owner thereof is and shall be the Purchaser identified above, for whom the undersigned is acting as nominee.

[NAME OF NOMINEE]

	
            By:_________________________
 

(Authorized Officer)

	
            By:_________________________
 

(Attorney-in-fact)

 

 

EXHIBIT G

FORM OF REQUEST FOR RELEASE

	
            To:
 	
            LaSalle Bank National Association
 

135 South LaSalle Street, Suite 1625

Chicago, Illinois 60603

 

	
            RE:
 	
            Pooling and Servicing Agreement, dated as of April 1, 2005, among Bear Stearns Asset Backed Securities I LLC, as Depositor, EMC Mortgage Corporation, as seller and master servicer and LaSalle Bank National Association, as Trustee                                          
  
 

In connection with the administration of the Mortgage Loans held by you pursuant to the above-captioned Pooling and Servicing Agreement, we request the release, and hereby acknowledge receipt, of the Mortgage File for the Mortgage Loan described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

	
            _____
 	
                             1.      Mortgage Paid in Full and proceeds have been deposited into the Custodial Account
 

	
            _____
 	
            2.
 	
            Foreclosure
 	
             

	
            _____
 	
            3.
 	
            Substitution
 	
             

	
            _____
 	
            4.
 	
            Other Liquidation
 	
             

	
            _____
 	
            5.
 	
            Nonliquidation
 	
            Reason:
 
	
            _____
 	
            6.
 	
            California Mortgage Loan paid in full
 	
             

	
             
	
            By:
 	
             

										

(authorized signer)

	
            Issuer:  
 	
             

	
            Address:  
 
	
            Date:
 	
             

			

 

 

 

EXHIBIT H

DTC Letter of Representations

[provided upon request]

 

 

EXHIBIT I

Schedule of Mortgage Loans with Lost Notes

[provided upon request]

 

 

 

EXHIBIT J

FORM OF CUSTODIAL AGREEMENT

THIS CUSTODIAL AGREEMENT (as amended and supplemented from time to time, the “Agreement”), dated as of April 29, 2005, by and among LASALLE BANK NATIONAL ASSOCIATION, not individually but solely as trustee under the Pooling and Servicing Agreement defined below (including its successors under the Pooling and Servicing Agreement defined below, in that capacity, the “Trustee”) and as custodian (together with any successor in interest or any successor appointed hereunder, in that capacity, the “Custodian”), BEAR STEARNS ASSET BACKED SECURITIES I LLC, as depositor (together with any successor in interest, the “Depositor”) and EMC MORTGAGE CORPORATION, as seller (in that capacity, the “Seller”) and master servicer (together with any successor in interest or successor under the Pooling and Servicing Agreement referred to below, the “Master
Servicer”). 

WITNESSETH THAT:

WHEREAS, the Depositor, the Seller, the Master Servicer and the Trustee have entered into a Pooling and Servicing Agreement, dated as of April 1, 2005, relating to the issuance of Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4 (as in effect on the date of this Agreement, the “Original Pooling and Servicing Agreement,” and as amended and supplemented from time to time, the “Pooling and Servicing Agreement”); and all custodian obligations are defined herein.  In the event any custodian obligations are defined in the Pooling and Servicing Agreement, this custodial agreement shall supercede.

WHEREAS, the Custodian has agreed to act as agent for the Trustee on behalf of the Certificateholders for the purposes of receiving and holding certain documents and other instruments delivered by the Depositor, the Seller or the Master Servicer under the Pooling and Servicing Agreement and the Servicers, if any, under their respective Servicing Agreements, all upon the terms and conditions and subject to the limitations hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the Trustee, the Depositor, the Seller, the Master Servicer and the Custodian hereby agree as follows:

ARTICLE I.

DEFINITIONS

Definitions.  For the purposes of this Agreement, the following terms shall have the indicated meanings unless the context or use indicates another or different meaning and intent, the definitions of such terms are equally applicable to the singular and the plural forms of such terms, the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular section or other subdivision, and section references refer to sections of this Agreement.

"Business Day" shall mean any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in The City of New York, New York, Chicago, Illinois, Minneapolis, 

 

 

Minnesota or the city in which the Corporate Trust Office of the Trustee or the principal office of the Master Servicer is located are authorized or obligated by law or executive order to be closed.

 

	
            “Closing Date”  shall mean April 29, 2005.
 

 

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

 

 “MERS Mortgage Loan” shall mean any Mortgage Loan registered with MERS on the MERS® system.

 

 “MERS® System” shall mean the system of recording transfers of Mortgages electronically maintained by MERS.

 

 “MIN” shall mean the Mortgage Identification Number for Mortgage Loans registered with MERS on the MERS System.

 

 “MOM Loan” shall mean 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.

 

"Mortgage" shall mean the mortgage, deed of trust or other instrument creating a first or second lien on or first or second priority ownership interest in an estate in fee simple in real property securing a Mortgage Note.

"Mortgage Assignment" shall mean an assignment of the Mortgage in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale of the Mortgage.

 

	
            "Mortgage File" shall have the meaning set forth in Section 2 hereof.
 

 

"Mortgage Loan" shall mean a first or subordinate lien mortgage loan on a one-to-four family residential property.

 

"Mortgage Loan Schedule" shall mean the electronic schedule of Mortgage Loans identified in Schedule A.

 

"Mortgaged Property" shall mean the real property securing repayment of a Mortgage Loan.

 

	
            "Mortgagor" shall mean the obligor on a Mortgage Note.
 

 

"Note" shall mean any promissory note or other evidence of indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

 

 “Servicer”  shall mean the related servicer of the Mortgage Loans as designated by Owner.

 

 

 

Any Capitalized terms used in this Agreement and not defined herein shall have the meanings assigned in the Original Pooling and Servicing Agreement, unless otherwise required by the context herein.

ARTICLE II.

CUSTODY OF MORTGAGE DOCUMENTS

Section 2.1.      Custodian to Act as Agent: Acceptance of Mortgage Files.  The Custodian, as the duly appointed custodial agent of the Trustee for these purposes, acknowledges (subject to any exceptions noted in the Initial Certification referred to in Section 2.3(a)) receipt of the Mortgage Files relating to the Mortgage Loans identified on the Schedule attached hereto (the “Mortgage Loan Schedule”) and declares that it holds and will hold such Mortgage Files as agent for the Trustee, in trust, for the use and benefit of all present and future Certificateholders.

Section 2.2.      Recordation of Assignments. If any Mortgage File includes one or more assignments of Mortgage that have not been recorded and the related Mortgage Loan is not a MERS Loan or the Custodian has not received written instructions from the Seller or the Trustee that the related Mortgaged Properties are located in jurisdictions under the laws of which the recordation of such assignment is not necessary to protect the Trustee’s interest therein, each such assignment shall be delivered by the Custodian to the Seller for the purpose of recording it in the appropriate public office for real property records, and the Seller, at no expense to the Custodian, shall promptly cause to be recorded in the appropriate public office for real property records each such assignment of Mortgage and, upon receipt
thereof from such public office, shall return each such assignment of Mortgage to the Custodian.

	
            Section 2.3.
 	
            Review of Mortgage Files.
 

(a)        The documents set forth in the definition “Mortgage File” herein shall be delivered and released to the Custodian relating to each of the Mortgage Loans to be purchased on a Closing Date. The related Mortgage Loans shall be identified in the Mortgage Loan Schedule in electronic format which shall be delivered to the Custodian at least two Business Days prior to each Closing Date.  On or prior to the Closing Date, the Custodian shall deliver to the Seller and the Trustee an Initial Certification in the form annexed hereto as Exhibit One evidencing receipt (subject to any exceptions noted therein) of a Mortgage File for each of the Mortgage Loans listed on Schedule A attached hereto (the “Mortgage Loan Schedule”).

(b)        Within 90 days thereafter, the Custodian agrees, for the benefit of Certificateholders, to review each such document, and shall deliver to the Seller, the Master Servicer and the Trustee an Interim Certification in the form annexed hereto as Exhibit Two to the effect that all such documents have been executed and received and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached to such Interim Certification. The Custodian shall be under no duty or obligation to inspect, review or examine said documents, instruments, certificates or other papers to determine that the same are genuine, enforceable, or appropriate for the represented purpose or that they have actually been recorded or that they are other than what they purport to be on their face.

 

 

(c)        Not later than 180 days after the Closing Date, the Custodian shall review, for the benefit of Certificateholders, the Mortgage Files and deliver to the Seller, the Master Servicer and the Trustee a Final Certification in the form annexed hereto as Exhibit Three evidencing whether each document required to be recorded has been returned from the recording office with evidence of recording thereon and the Custodian has received either an original or a copy thereof.  If the Custodian finds any document missing, or to be unrelated, determined on the basis of the mortgagor name, original principal balance and loan number, to the mortgage loans identified on the Mortgage Loan Schedule or to appear defective on its face, the Custodian shall note such defect in the exception report attached to the Final Certification and shall promptly notify the Trustee. 

(d)        In reviewing the Mortgage Files as provided herein, the Custodian shall make no representation as to and shall not be responsible to verify (i) the validity, legality, enforceability, due authorization, recordability, sufficiency or genuineness of any of the documents included in any Mortgage File or (ii) the collectibility, insurability, effectiveness or suitability of any of the documents in any Mortgage File.

In performing any such review, the Custodian may conclusively rely on the purported due execution and genuineness of any such document and on the purported genuineness of any signature thereon.

Upon receipt of written request from the Trustee, the Custodian shall as soon as practicable supply the Trustee with a list of all of the documents relating to the Mortgage Loans missing from the Mortgage Files.

Section 2.4.      Custodian to Cooperate: Release of Mortgage Files.  Upon receipt of written notice per Exhibit Four or Electronic Release Request per Exhibit Five from the Trustee that the Seller has repurchased a Mortgage Loan pursuant to Article II of the Pooling and Servicing Agreement, and a request for release (a “Request for Release”) confirming that the purchase price therefore has been paid as required under the Pooling and Servicing Agreement, then the Custodian agrees to promptly release to the Seller the related Mortgage File.

Upon the Custodian’s receipt of a Request for Release substantially in the form of Exhibit Four or Three attached hereto or Electronic Release Request per Exhibit Five, stating that it has received payment in full of a Mortgage Loan or that payment in full will be escrowed in a manner customary for such purposes, the Custodian agrees promptly to release to the Master Servicer, the related Mortgage File.  The Depositor shall deliver to the Custodian and the Custodian agrees to review in accordance with the provisions of the Custodial Agreement the Mortgage Note and other documents constituting the Mortgage File with respect to any Replacement Mortgage Loan.

From time to time as is appropriate for the servicing or foreclosure of any Mortgage Loan, the Master Servicer shall deliver to the Custodian a Request for Release per Exhibit Four or Electronic Release Request per Exhibit Five requesting that possession of all of the Mortgage File be released to the Master Servicer and certifying as to the reason for such release.  Upon receipt of the foregoing, the Custodian shall deliver the Mortgage File to the Master Servicer. The Master Servicer shall cause each Mortgage File or any document therein so 

 

 

released to be returned to the Custodian when the need therefore by the Master Servicer no longer exists, unless (i) the Mortgage Loan has been liquidated, or (ii) the Mortgage File or such document has been delivered to an attorney, or to a public trustee or other public official as required by law, for purposes of initiating or pursuing legal action or other proceedings for the foreclosure of the Mortgaged Property.

Section 2.5.     Assumption Agreements.  In the event that any assumption agreement, substitution of liability agreement or sale of servicing agreement is entered into with respect to any Mortgage Loan subject to this Agreement, the Master Servicer shall notify the Custodian that such assumption or substitution agreement has been completed by forwarding to the Custodian the original of such assumption or substitution agreement, which shall be added to the related Mortgage File and, for all purposes, shall be considered a part of such Mortgage File to the same extent as all other documents and instruments constituting parts thereof.

ARTICLE III.

CONCERNING THE CUSTODIAN

Section 3.1.      Custodian a Bailee and Agent of the Trustee.  With respect to each Mortgage Note, Mortgage and other documents constituting each Mortgage File which are delivered to the Custodian, the Custodian is exclusively the bailee and custodial agent of the Trustee and has no instructions to hold any Mortgage Note or Mortgage for the benefit of any person other than the Trustee and the Certificateholders and undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. Except upon compliance with the provisions of Section 2.4 of this Agreement, no Mortgage Note, Mortgage or Mortgage File shall be delivered by the Custodian to the Seller, the Depositor or the Master Servicer or otherwise released from the possession of the Custodian.

Section 3.2.      Custodian May Own Certificates. The Custodian in its individual or any other capacity may become the owner or pledgee of interests in the Mortgage Loans with the same rights it would have if it were not Custodian.

Section 3.3.      Master Servicer to Pay Custodian’s Fees and Expenses.  The Master Servicer covenants and agrees to pay to the Custodian from time to time, and the Custodian shall be entitled to, reasonable compensation for all services rendered by it in the exercise and performance of any of the powers and duties hereunder of the Custodian, and the Master Servicer will pay or reimburse the Custodian upon its request for all reasonable expenses, disbursements and advances incurred or made by the Custodian in accordance with any of the provisions of this Agreement (including the reasonable compensation and the expenses and disbursements of its counsel and of all persons not regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence or bad faith.  A separate fee
schedule will apply between the Custodian and the Master Servicer.  

Section 3.4.      Custodian May Resign; Trustee May Remove Custodian.  The Custodian may resign from the obligations and duties hereby imposed upon it as such obligations and duties relate to its acting as Custodian of the Mortgage Loans. Upon receiving such written notice of resignation, the Trustee shall either take custody of the Mortgage Files itself and give prompt written notice thereof to the Depositor, the Master Servicer and the Custodian, or 

 

 

promptly appoint a successor Custodian by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Custodian and one copy to the successor Custodian.  If the Trustee shall not have taken custody of the Mortgage Files and no successor Custodian shall have been so appointed and have accepted appointment within 30 days after the giving of such written notice of resignation, the resigning Custodian may petition any court of competent jurisdiction for the appointment of a successor Custodian.

The Trustee may remove the Custodian at any time upon 60 days prior written notice to Custodian. In such event, the Trustee shall appoint, or petition a court of competent jurisdiction to appoint, a successor Custodian hereunder. Any successor Custodian shall be a depository institution subject to supervision or examination by federal or state authority shall be able to satisfy the other requirements contained in Section 3.7 and shall be unaffiliated with the Master Servicer and the Depositor.

Any resignation or removal of the Custodian and appointment of a successor Custodian pursuant to any of the provisions of this Section 3.4 shall become effective upon acceptance of appointment by the successor Custodian. The Trustee shall give prompt notice to the Depositor and the Master Servicer of the appointment of any successor Custodian. Notwithstanding anything to the contrary set forth herein, no successor Custodian shall be appointed by the Trustee without the prior approval of the Depositor and the Master Servicer.

Section 3.5.      Merger or Consolidation of Custodian.  Any Person into which the Custodian may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Custodian shall be a party, or any Person succeeding to the business of the Custodian, shall be the successor of the Custodian 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.

Section 3.6.      Representations of the Custodian.  The Custodian hereby represents that it is a depository institution subject to supervision or examination by a federal or state authority, has a combined capital and surplus of at least $15,000,000 and is qualified to do business in the jurisdictions in which it will hold any Mortgage File.

Section 3.7.      Limitation on Liability.  Neither the Custodian nor any of its directors, officers, agents or employees, shall be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith in good faith and believed (which belief may be based upon the opinion or advice of counsel selected by it in the exercise of reasonable care) by it or them to be within the purview of this Agreement, except for its or their own negligence, lack of good faith or willful misconduct.  The Custodian and any director, officer, employee or agent of the Custodian may rely in good faith on any document of any kind prima facie properly executed and submitted by any person respecting any matters arising hereunder. In no event shall the Custodian or its directors, officers, agents and
employees be held liable for any special, indirect or consequential damages resulting from any action taken or omitted to be taken by it or them hereunder or in connection herewith even if advised of the possibility of such damages.

 

 

Notwithstanding anything herein to the contrary, the Custodian agrees to indemnify the Trust Fund, the Trustee and each of their respective officers, directors and agents for any and all liabilities, obligations, losses, damages, payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trustee or Trust Fund, due to any negligent performance by the Custodian of its duties and responsibilities under this Agreement; provided, however, that the Custodian shall not be liable to any of the foregoing Persons for any amount and any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of such person, and the Custodian’s reliance on instructions from the Trustee or the Master Servicer. The provisions of this Section 3.7 shall survive the termination of this Custodial Agreement.

The Custodian and its directors, officers, employees and agents shall be entitled to indemnification and defense from the Trust Fund for any loss, liability or expense incurred without negligence, willful misconduct, bad faith on their part, arising out of, or in connection with, the acceptance or administration of the custodial arrangement created hereunder, including the costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties hereunder.

	
            Section 3.8.
 	
            Limitation of Duties.  The Custodian in its capacity as such:
 

(a)        in the course of its review of the Mortgage Files, shall not be required to make determinations (1) of a legal nature or (2) as to the authority of any officer or agent of the Master Servicer, Trustee or other entity who has executed (or certified with respect to) any document which is part of the Mortgage File; 

(b)        shall have no duties or obligations other than those specifically set forth herein or as may subsequently be agreed upon in writing by the parties hereto and shall use the same degree of care and skill as is reasonably expected of financial institutions acting in comparable capacities;

(c)        will be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value, genuineness, ownership or transferability of any Mortgage Loans and will not be required to and will not make any representations as to the validity, value or genuineness of the Mortgage Loans;

(d)        shall not be obligated to take any legal action hereunder which might in its judgment involve any expense or liability unless it has been furnished with reasonable indemnity;

(e)        may rely on and shall be protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document, or any security, delivered to it and reasonably believed by it to be genuine and to have been signed by the Master Servicer or the Trustee;

(f)         may rely on and shall be protected in acting upon the written instructions of the Master Servicer or the Trustee and such employees and representatives of the Master Servicer and the Trustee, as applicable, may hereinafter designate in writing;

 

 

(g)        may consult counsel satisfactory to it (including counsel for the Trustee or the Master Servicer) and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the opinion of such counsel (provided that the fees of such counsel in connection with such consultation and opinion shall be paid by the Custodian); and

(h)        shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection therewith, except in the case of a breach of any of the Custodian’s obligations hereunder, negligence or willful misconduct.

The Custodian shall be held to the same standard of conduct, and shall be entitled to the same protections, privileges and immunities as other custodians acting in a custodial capacity are generally afforded.

No covenant or agreement contained herein shall be deemed to be the covenant or agreement of any member of the Board of Directors, or any director, officer, agent, employee or representative of the Trustee, Master Servicer or the Custodian in his or her individual capacity and none of such persons shall be subject to any personal liability or accountability by reason of the execution of this Agreement, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty, or otherwise.

ARTICLE IV.

MISCELLANEOUS PROVISIONS

Section 4.1.      Notices.  All notices, requests, consents and demands and other communications required under this Agreement or pursuant to any other instrument or document delivered hereunder shall be in writing and, unless otherwise specifically provided, may be delivered personally, by telegram or telex, or by registered or certified mail, postage prepaid, return receipt requested, at the addresses specified on the signature page hereof (unless changed by the particular party whose address is stated herein by similar notice in writing), in which case the notice will be deemed delivered when received.

Section 4.2.      Amendments.  No modification or amendment of or supplement to this Agreement shall be valid or effective unless the same is in writing and signed by all parties hereto. The Trustee shall give prompt notice to the Custodian of any amendment or supplement to the Pooling and Servicing Agreement and furnish the Custodian with written copies thereof.

Section 4.3.      GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

Section 4.4.      Recordation of Agreement.  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 and at the Trust’s expense, but only upon direction accompanied by an Opinion of Counsel reasonably satisfactory to the Depositor to the effect that the failure to effect such recordation is likely to materially and adversely affect 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 4.5.      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.

[Signature Page Attached]

 

 

 

IN WITNESS WHEREOF, this Agreement is executed as of the date first above written.

 

	
            Address:

135 South LaSalle Street

Chicago, IL 60603

Attention:  BSABS I 2005-HE4

 
 	
            LASALLE BANK NATIONAL ASSOCIATION, not individually but solely as Trustee

By:                                                                                                                                                                                                            

Name:  

Title:  

 
 
	
            Address:

2571 Busse Rd., Suite 200

Elk Grove Village, IL 60007

 

 
 	
            LASALLE BANK NATIONAL ASSOCIATION, as Custodian

By:                                                                                                                                                                                                            

Name:        

Title:                   
 
	
            Address:

383 Madison Avenue

New York, New York 10179
 	
            BEAR STEARNS ASSET BACKED SECURITIES I LLC

By:                                                                                                                                                                                                            

Name: 

Title:   

 
 
	
            Address:

909 Hidden Ridge Drive, Suite 200

Irving, Texas 75038
 	
            EMC MORTGAGE CORPORATION

By:                                                                                                                                                                                                            

Name:        

Title:    

 
 
	
             
 	
             
 

 

 

 

	
            STATE OF ILLINOIS
 	
            )
 	
             

	
             
	
            ) ss:
 
	
            COUNTY OF COOK
 	
            )
 	
             

On the 29th day of April 2005 before me, a notary public in and for said State, personally appeared _____________________________________ , known to me to be a(n) __________________________ of LaSalle Bank National Association, one of the parties that executed the within agreement, and also known to me to be the person who executed the within agreement on behalf of said party and acknowledged to me that such party 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
 

[SEAL]

 

 

 

	
            STATE OF ILLINIOS
 	
            )
 	
             

	
             
	
            ) ss:
 
	
            COUNTY OF  
 	
            )
 	
             

On the 29th day of April 2005 before me, a notary public in and for said State, personally appeared _____________________________________, known to me to be a(n) ____________________________ of LaSalle Bank National Association, one of the parties that executed the within instrument, and also known to me to be the person who executed it on behalf of said party, and acknowledged to me that such party 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]

 

 

 

	
            STATE OF NEW YORK
 	
            )
 	
             

	
             
	
            ) ss:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             

On the 29th day of April 2005 before me, a notary public in and for said State, personally appeared ___________________________, known to me to be a(n) ____________________ of Bear Stearns Asset Backed Securities I LLC, and also known to me to be the person who executed the within instrument on behalf of said party, and acknowledged to me that such party 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
 

[SEAL]

 

 

 

	
            STATE OF TEXAS
 	
            )
 	
             

	
             
	
            ) ss:
 
	
            COUNTY OF DALLAS
 	
            )
 	
             

On the 29th day of April 2005 before me, a notary public in and for said State, personally appeared __________________, known to me to be a/an ___________________ of EMC Mortgage Corporation, one of the parties that executed the within instrument, and also known to me to be the person who executed the within instrument on behalf of said party, and acknowledged to me that such party 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]

 

 

SCHEDULE A

(Provided upon request)

 

 

EXHIBIT ONE

 

FORM OF CUSTODIAN INITIAL CERTIFICATION

April 29, 2005

	
            LaSalle Bank National Association
 
	
            135 South LaSalle Street
 	
             

	
            Chicago, IL 60603
 	
             

			

EMC Mortgage Corporation

909 Hidden Ridge Drive, Suite 200

Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE4

	
            Re:
 	
            Custodial Agreement, dated as of April 29, 2005, by and among LaSalle Bank National Association, Bear Stearns Asset Backed Securities I LLC, and EMC Mortgage Corporation, relating to Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4             
 

Ladies and Gentlemen:

In accordance with Section 2.3(a) of the above-captioned Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has received the following documents with respect to each Mortgage Loan listed in the Mortgage Loan Schedule, with any exceptions listed on Schedule A attached hereto: (i) an original note, including any riders thereto, endorsed without recourse to the order of LaSalle Bank National Association, as Trustee for certificateholders of ___________________________ and showing an unbroken chain of endorsements from the original payee thereof to the person endorsing it to the Trustee; (ii) an original mortgage and, if the related mortgage loan is a MERS Loan, registered with MERS, noting the presence of the mortgage identification number and language indicating that such mortgage loan is a MERS Loan, which shall have been recorded (or if the original is not
available, a copy) with evidence of such recording indicated thereon (or if clause (x) in the proviso below applies, shall be in recordable form); (iii) unless the mortgage loan is a MERS Loan, the assignment (either an original or a copy, which may be in the form of a blanket assignment if permitted in the jurisdiction in which the mortgage property is located) to the Trustee of the mortgage with respect to each mortgage loan in the name of ___________________________, which shall have been recorded (of if clause (x) in the proviso below applies, shall be in recordable form); (iv) an original or a copy of all intervening assignments of the mortgage, if any, with evidence of recording thereon; (v) the original policy of title insurance or mortgagee’s certificate of title insurance or commitment or binder for title insurance, if available, or a copy thereof, or, in the event that such original title insurance policy is unavailable, a photocopy thereof, or in lieu thereof, a
current lien search on the related mortgaged property; and (vi) originals or copies of all available assumption, modification or 

 

 

substitution agreements, if any; provided, however, that in lieu of the foregoing, the Seller may deliver the following documents, under the circumstances set forth below: (x) if any mortgage, assignment thereof to the Trustee or intervening assignments thereof have been delivered or are being delivered to recording offices for recording and have not been returned in time to permit their delivery as specified above, the Depositor may deliver a true copy thereof with a certification by the Seller or the title company issuing the commitment for title insurance, on the face of such copy, substantially as follows: “Certified to be a true and correct copy of the original, which has been transmitted for recording” and (y) in lieu of the mortgage notes relating to the mortgage loans identified in the list attached hereto, the Depositor may deliver a lost note affidavit and indemnity and a copy of the
original note, if available.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Custodial Agreement.

LASALLE BANK NATIONAL ASSOCIATION

 

 

	
            By:______________________________
 	
             

	
            Name:
 

Title: 

 

 

SCHEDULE A

(PROVIDED UPON REQUEST)

 

 

EXHIBIT TWO

 

FORM OF CUSTODIAN INTERIM CERTIFICATION

[DATE]

	
            LaSalle Bank National Association
 
	
            135 South LaSalle Street
 	
             

	
            Chicago, IL 60603
 	
             

			

EMC Mortgage Corporation

909 Hidden Ridge Drive, Suite 200

Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE4

	
            Re:
 	
            Custodial Agreement, dated as of April 29, 2005, by and among LaSalle Bank National Association, Bear Stearns Asset Backed Securities I LLC, and EMC Mortgage Corporation, relating to Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4             
 

Ladies and Gentlemen:

In accordance with Section 2.3(b) of the above-captioned Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has received and reviewed the documents described in its initial certification dated April 29, 2005 and has determined that: all documents have been executed and received and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, with any exceptions listed on Schedule A attached hereto.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Custodial Agreement.

LASALLE BANK NATIONAL ASSOCIATION

 

 

	
            By:______________________________
 	
             

	
            Name:
 

Title: 

 

 

SCHEDULE A

(PROVIDED UPON REQUEST)

 

 

EXHIBIT THREE

 

FORM OF CUSTODIAN FINAL CERTIFICATION

                [DATE]

	
            LaSalle Bank National Association
 
	
            135 South LaSalle Street
 	
             

	
            Chicago, IL 60603
 	
             

			

EMC Mortgage Corporation

909 Hidden Ridge Drive, Suite 200

Irving, Texas 75038

Attention: Bear Stearns Asset Backed Securities I LLC, Series 2005-HE4

	
            Re:
 	
            Custodial Agreement, dated as of April 29, 2005, by and among LaSalle Bank National Association, Bear Stearns Asset Backed Securities I LLC, and EMC Mortgage Corporation, relating to Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4             
 

Ladies and Gentlemen:

In accordance with Section 2.3(c) of the above-captioned Custodial Agreement, the undersigned, as Custodian, hereby certifies that it has received and reviewed the documents described in its initial certification dated April 29, 2005 and has determined that: all documents have been executed and received and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, with any exceptions listed on Schedule A attached hereto.

 

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Custodial Agreement.

LASALLE BANK NATIONAL ASSOCIATION

 

 

	
            By:______________________________
 	
             

	
            Name:
 

Title: 

 

 

SCHEDULE A

(PROVIDED UPON REQUEST)

 

 

EXHIBIT FOUR

 

FORM OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

 

 

	
            To:
 	
            [Name/Address of Owner]
 

 

 

Attention: 

	
            Re:
 	
            Custodial Agreement, dated as of April 29, 2005, by and among LaSalle Bank National Association, Bear Stearns Asset Backed Securities I LLC, and EMC Mortgage Corporation, relating to Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4             
 

             In connection with the Mortgage Files that you hold pursuant to the Custodial Agreement, we request the release, and acknowledge receipt of the Mortgage file/[specify document] for the Mortgage Loan described below, the reason indicated.

 

Mortgagor’s Name, Address and Zip Code:

 

Mortgage Loan Number:

 

Reason for Requesting Documents:  (check one)

 

_____ 1.  Mortgage Loan paid in full.  ([The Master Servicer] [A Servicer] [the Trustee] hereby certifies that all amounts received in connection therewith have been credited to __________________________________________________________________________.)

 

	
            _____ 2.  Mortgage Loan in foreclosure.
 

 

_____ 3.  Repurchase.  (The [Master Servicer] [Trustee] hereby certifies that the repurchase price has been credited to _____________________________________________.)

 

_____ 4.  Mortgage Loan liquidated by _______________________________________.  ([The Master Servicer] [A Servicer] [The Trustee] hereby certifies that all proceeds of the foreclosure, insurance, condemnation or other liquidation have been finally received and credited to _____________________________________.

 

                _____ 5.  Other (explain):  

 

 

EXHIBIT FIVE

 

ELECTRONIC RELEASE REQUEST (Excel)

	
            Collateral Release Tasks 
 	
             
 
	
             
 	
             
 
	
            Required Field Header
 	
            Description
 
	
             
 	
             
 
	
            customer
 	
            Value can be constant of1018
	
             
 	
             
 
	
            poolnum
 	
            pool number if available, can be left blank as well
 
	
             
 	
             
 
	
            loanid
 	
            EMC loan#, required field
 
	
             
 	
             
 
	
            loc_code
 	
            Codes must be mutually agreed upon with custodian. Examples are PDPO= loans released for payoff, FORC = loans released for foreclosure, OLIQ= loans released for repurchase, NLIQ = loans released for non-liquidation/correction.
 
	
             
 	
             
 
	
            rel_code
 	
            Codes must be mutually agreed upon with custodian. Examples are 

1 = payoff, 2 = foreclosure, 4 = repurchase, 5 = non-liquidation.
 
	
             
 	
             
 
	
            rel_doclist
 	
            Can be left blank
 
	
             
 	
             
 
	
            notation
 	
            "Name of Person File Being Released To @ Company Name" (i.e. Sharon Ayers@EMC)
 
	
             
 	
             
 
	
            reqstr
 	
            Can be left blank
 
	
             
 	
             
 
	
            reqstr_sig
 	
            Signatory code assigned to requestor, TBD
 
	
             
 	
             
 
	
            amend
 	
            0 = new release request, 1= amend an existing released record (ie. FORC to PDPO)
 

 

 

 

 

EXHIBIT K

FORM OF BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

This certificate is being delivered pursuant to Section 3.16 of the Pooling and Servicing Agreement, dated as of April 1, 2005 (the “Agreement”), among Bear Stearns Asset Backed Securities I LLC, as depositor (the “Depositor”), EMC Mortgage Corporation as seller (in that capacity, the “Seller”) and master servicer (in that capacity, the “Master Servicer”) and LaSalle Bank National Association as trustee (the “Trustee”). Capitalized terms used herein and not otherwise defined have the meanings set forth in the Agreement.

I, [identify the certifying individual], on behalf of LaSalle Bank National Association, as trustee (the “Trustee”) certify that:

1.          I have reviewed the annual report on Form 10-K for the fiscal year [___], and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by that annual report, of the trust (the “Trust”) created pursuant to the Agreement; and

2.          Based on my knowledge, the distribution information in these reports and any other information provided by the Trustee for inclusion in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which the statements were made, not misleading as of the last day of the period covered by that annual report.

Date:_______________________________________

[Signature]

Name:

Title:

 

 

EXHIBIT L

FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

MORTGAGE LOAN PURCHASE AGREEMENT, dated as of April 29, 2005, as amended and supplemented by any and all amendments hereto (collectively, “this Agreement”), by and between EMC MORTGAGE CORPORATION, a Delaware corporation (the “Mortgage Loan Seller”) and BEAR STEARNS ASSET BACKED SECURITIES I LLC, a Delaware limited liability company (the “Purchaser”).

Upon the terms and subject to the conditions of this Agreement, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to purchase, certain conventional, closed-end, fixed rate and adjustable rate, first and second lien mortgage loans secured by one- to four-family residences (collectively, the “Mortgage Loans”) as described herein. The Purchaser intends to deposit the Mortgage Loans into a trust fund (the “Trust Fund”) and create Bear Stearns Asset-Backed Securities I Trust 2005-HE4, Asset-Backed Certificates, Series 2005-HE4 (the “Certificates”), under a pooling and servicing agreement, to be dated as of April 1, 2005 (the “Pooling and Servicing Agreement”), among the Purchaser, as depositor, the Mortgage Loan Seller, as seller and master servicer (in that capacity, the “Master Servicer”) and LaSalle Bank National Association, as trustee (the “Trustee”).

The Purchaser has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Number 333-113636) relating to its Mortgage Pass-Through Certificates and the offering of certain series thereof (including certain classes of the Certificates) from time to time in accordance with Rule 415 under the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder (the “Securities Act”).  Such registration statement, when it became effective under the Securities Act, and the prospectus relating to the public offering of certain classes of the Certificates by the Purchaser (the “Public Offering”), as each may be amended or supplemented from
time to time pursuant to the Securities Act or otherwise, are referred to herein as the “Registration Statement” and the “Prospectus,” respectively.  The “Prospectus Supplement” shall mean that supplement, dated April 26, 2005, to the Prospectus, dated April 26, 2004, relating to certain classes of the Certificates.  With respect to the Public Offering of certain classes of the Certificates, Bear, Stearns & Co. Inc. (“Bear Stearns”) and the Purchaser have entered into a terms agreement, dated as of April 26, 2005, to an underwriting agreement dated January 25, 2005 (together, the “Underwriting Agreement”) between Bear Stearns and the Purchaser.

Now, therefore, in consideration of the premises and the mutual agreements set forth herein, the parties hereto agree as follows:

SECTION 1.          Definitions.  Certain terms are defined herein. Capitalized terms used herein but not defined herein shall have the meanings specified in the Pooling and Servicing Agreement. The following other terms are defined as follows:

 

 

Acquisition Price: Cash in an amount equal to $            *                                       (plus $              2          in accrued interest) and the retained certificates.

Bear Stearns: Bear, Stearns & Co. Inc.

Closing Date: April 29, 2005.

Custodial Agreement: An agreement, dated as April 29, 2005, among the Depositor, the Seller, the Master Servicer, the Trustee and the Custodian.

Cut-off Date: April 1, 2005.

Cut-off Date Balance: Shall mean $566,206,954.58.

Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a Replacement Mortgage Loan.

Due Date: As to any Mortgage Loan, the date in each month on which the related Scheduled Payment is due, as set forth in the related Mortgage Note.

LaSalle: LaSalle Bank National Association, or its successors in interest.

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.

Moody’s: Moody’s Investors Service, Inc., or its successors in interest.

Mortgage: The mortgage, deed of trust or other instrument creating a first or second lien on or first or second priority ownership interest in an estate in fee simple in real property securing a Mortgage Note.

Mortgage File: The items referred to in Exhibit 1 pertaining to a particular Mortgage Loan and any additional documents required to be added to such documents pursuant to this Agreement.

Mortgage Rate: The annual rate of interest borne by a Mortgage Note as stated herein.

Mortgagor: The obligor(s) on a Mortgage Note.

Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate less the sum of (i) the Servicing Fee Rate, (ii) the Trustee Fee Rate and (iii) the rate at which the LPMI Fee is calculated, if any.

 

_________________________

	
            2
 	
            Please contact Bear Stearns for pricing information.
 

 

 

 

Opinion of Counsel: A written opinion of counsel, who may be counsel for the Mortgage Loan Seller or the Purchaser, reasonably acceptable to the Trustee.

Person: Any legal person, including any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

Purchase Price: With respect to any Mortgage Loan required to be purchased by the Mortgage Loan Seller pursuant to the applicable provisions of this Agreement, an amount equal to the sum of (i) 100% of the principal remaining unpaid on such Mortgage Loan as of the date of purchase (including if a foreclosure has already occurred, the principal balance of the related Mortgage Loan at the time the Mortgaged Property was acquired), (ii) accrued and unpaid interest thereon at the Mortgage Interest Rate through and including the last day of the month of purchase and (iii) any costs and damages (if any) incurred by the Trust in connection with any violation of such Mortgage Loan of any anti-predatory lending laws.

Rating Agencies: Standard & Poor’s and Moody’s, each a “Rating Agency.”

Replacement Mortgage Loan: A mortgage loan substituted for a Deleted Mortgage Loan which must meet on the date of such substitution the requirements stated herein and in the Pooling and Servicing Agreement; upon such substitution, such mortgage loan shall be a “Mortgage Loan” hereunder.

Securities Act: The Securities Act of 1933, as amended.

Standard & Poor’s: Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or its successors in interest.

Value: The value of the Mortgaged Property at the time of origination of the related Mortgage Loan, such value being the lesser of (i) the value of such property set forth in an appraisal accepted by the applicable originator of the Mortgage Loan or (ii) the sales price of such property at the time of origination.

SECTION 2.          Purchase and Sale of the Mortgage Loans and Related Rights.  (a)  Upon satisfaction of the conditions set forth in Section 10 hereof, the Mortgage Loan Seller agrees to sell, and the Purchaser agrees to purchase Mortgage Loans having an aggregate outstanding principal balance as of the Cut-off Date equal to the Cut-off Date Balance.

(b)        The closing for the purchase and sale of the Mortgage Loans and the closing for the issuance of the Certificates will take place on the Closing Date at the office of the Purchaser’s counsel in New York, New York or such other place as the parties shall agree.

(c)        Upon the satisfaction of the conditions set forth in Section 10 hereof, on the Closing Date, the Purchaser shall pay to the Mortgage Loan Seller the Acquisition Price for the Mortgage Loans in immediately available funds by wire transfer to such account or accounts as shall be designated by the Mortgage Loan Seller.

 

 

SECTION 3.         Mortgage Loan Schedules.  The Mortgage Loan Seller agrees to provide to the Purchaser as of the date hereof a preliminary listing of the Mortgage Loans (the “Preliminary Mortgage Loan Schedule”) setting forth the information listed on Exhibit 2 to this Agreement with respect to each of the Mortgage Loans being sold by the Mortgage Loan Seller. If there are changes to the Preliminary Mortgage Loan Schedule, the Mortgage Loan Seller shall provide to the Purchaser as of the Closing Date a final schedule (the “Final Mortgage Loan Schedule”) setting forth the information listed on Exhibit
2 to this Agreement with respect to each of the Mortgage Loans being sold by the Mortgage Loan Seller to the Purchaser. The Final Mortgage Loan Schedule shall be delivered to the Purchaser on the Closing Date, shall be attached to an amendment to this Agreement to be executed on the Closing Date by the parties hereto and shall be in form and substance mutually agreed to by the Mortgage Loan Seller and the Purchaser (the “Amendment”). If there are no changes to the Preliminary Mortgage Loan Schedule, the Preliminary Mortgage Loan Schedule shall be the Final Mortgage Loan Schedule for all purposes hereof.

	
            SECTION 4.
 	
            Mortgage Loan Transfer.
 

(a)        The Purchaser will be entitled to all scheduled payments of principal and interest on the Mortgage Loans due after the Cut-off Date (regardless of when actually collected) and all payments thereof.  The Mortgage Loan Seller will be entitled to all scheduled payments of principal and interest on the Mortgage Loans due on or before the Cut-off Date (including payments collected after the Cut-off Date) and all payments thereof.  Such principal amounts and any interest thereon belonging to the Mortgage Loan Seller as described above will not be included in the aggregate outstanding principal balance of the Mortgage Loans as of the Cut-off Date as set forth on the Final Mortgage Loan Schedule.

(b)        Pursuant to various conveyancing documents to be executed on the Closing Date and pursuant to the Pooling and Servicing Agreement, the Purchaser will assign on the Closing Date all of its right, title and interest in and to the Mortgage Loans to the Trustee for the benefit of the Certificateholders. In connection with the transfer and assignment of the Mortgage Loans, the Mortgage Loan Seller has delivered or will deliver or cause to be delivered to the Trustee, or the Custodian on behalf of the Trustee, by the Closing Date or such later date as is agreed to by the Purchaser and the Mortgage Loan Seller (each of the Closing Date and such later date is referred to as a “Mortgage File Delivery Date”), the items of the Custodian’s Mortgage File, provided, however, that in lieu of the foregoing, the Mortgage Loan Seller may deliver the following documents, under the circumstances set forth below: (x) in lieu of the original Mortgage, assignments to the Trustee or intervening assignments thereof which have been delivered, are being delivered or will upon receipt of recording information relating to the Mortgage required to be included thereon, be delivered to recording offices for recording and have not been returned in time to permit their delivery as specified above, the Mortgage Loan Seller may deliver a true copy thereof with a certification by the Mortgage Loan Seller or the Master Servicer, on the face of such copy, substantially as follows: “Certified to be a true and correct copy of the original, which has been transmitted for recording;” (y) in lieu of the Mortgage, assignments to the Trustee or intervening assignments thereof, if
the applicable jurisdiction retains the originals of such documents or if the originals are lost (in each case, as evidenced by a certification from the Mortgage Loan Seller or the Master Servicer to such 

 

 

effect), the Mortgage Loan Seller may deliver photocopies of such documents containing an original certification by the judicial or other governmental authority of the jurisdiction where such documents were recorded; and (z) in lieu of the Mortgage Notes relating to the Mortgage Loans, each identified in the list delivered by the Purchaser to the Trustee on the Closing Date and attached hereto as Exhibit 5 the Mortgage Loan Seller may deliver lost note affidavits and indemnities of the Mortgage Loan Seller; and provided further, however, that in the case of Mortgage Loans which have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Mortgage Loan Seller, in lieu of delivering the above documents, may deliver to the Trustee a certification by the Mortgage Loan Seller or the Master Servicer to such effect. The Mortgage Loan Seller
shall deliver such original documents (including any original documents as to which certified copies had previously been delivered) or such certified copies to the Trustee, or the Custodian on behalf of the Trustee, promptly after they are received. The Mortgage Loan Seller shall cause the Mortgage and intervening assignments, if any, and the assignment of the Mortgage to be recorded not later than 180 days after the Closing Date unless such assignment is not required to be recorded under the terms set forth in Section 6(a) hereof.

(c)        In connection with the assignment of any Mortgage Loan registered on the MERS® System, the Mortgage Loan Seller further agrees that it will cause, at the Mortgage Loan Seller’s own expense, within 30 days after the Closing Date, the MERS® System to indicate that such Mortgage Loans have been assigned by the Mortgage Loan Seller to the Purchaser and by the Purchaser to the Trustee in accordance with this Agreement for the benefit of the Certificateholders by including (or deleting, in the case of Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files (a) the code in the field which identifies the specific Trustee and (b) the code in the field “Pool Field” which identifies the series of the Certificates issued in connection with such Mortgage Loans. The Mortgage Loan Seller
further agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees that it will not, alter the codes referenced in this paragraph with respect to any Mortgage Loan during the term of the Pooling and Servicing Agreement unless and until such Mortgage Loan is repurchased in accordance with the terms of the Pooling and Servicing Agreement.

(d)        The Mortgage Loan Seller and the Purchaser acknowledge hereunder that all of the Mortgage Loans will ultimately be assigned to LaSalle Bank National Association, as Trustee for the benefit of the Certificateholders, on the date hereof.

	
            SECTION 5.
 	
            Examination of Mortgage Files.
 

(a)        On or before the Mortgage File Delivery Date, the Mortgage Loan Seller will have made the Mortgage Files available to the Purchaser or its agent for examination which may be at the offices of the Trustee or the Mortgage Loan Seller and/or the Mortgage Loan Seller’s custodian. The fact that the Purchaser or its agent has conducted or has failed to conduct any partial or complete examination of the Mortgage Files shall not affect the Purchaser’s rights to demand cure, repurchase, substitution or other relief as provided in this Agreement. In furtherance of the foregoing, the Mortgage Loan Seller shall make the Mortgage Files available to the Purchaser or its agent from time to time so as to permit the Purchaser to confirm the Mortgage Loan Seller’s compliance with the delivery and recordation requirements of this 

 

 

Agreement and the Pooling and Servicing Agreement. In addition, upon request of the Purchaser, the Mortgage Loan Seller agrees to provide to the Purchaser, Bear Stearns and to any investors or prospective investors in the Certificates information regarding the Mortgage Loans and their servicing, to make the Mortgage Files available to the Purchaser, Bear Stearns and to such investors or prospective investors (which may be at the offices of the Mortgage Loan Seller and/or the Mortgage Loan Seller’s custodian) and to make available personnel knowledgeable about the Mortgage Loans for discussions with the Purchaser, Bear Stearns and such investors or prospective investors, upon reasonable request during regular business hours, sufficient to permit the Purchaser, Bear Stearns and such investors or potential investors to conduct such due diligence as any such party reasonably believes is appropriate.

(b)        Pursuant to the Pooling and Servicing Agreement, on the Closing Date the Trustee (or the Custodian as obligated under the Custodial Agreement) for the benefit of the Certificateholders will review items of the Mortgage Files as set forth on Exhibit 1 and will deliver to the Mortgage Loan Seller an initial certification in the form attached as Exhibit One to the Custodial Agreement.

(c)        Within 90 days of the Closing Date, the Trustee or the Custodian on its behalf shall, in accordance with the provisions of Section 2.02 of the Pooling and Servicing Agreement,  deliver to the Mortgage Loan Seller and the Trustee an Interim Certification in the form attached as Exhibit Two to the Custodial Agreement to the effect that all such documents have been executed and received and that such documents relate to the Mortgage Loans identified on the Mortgage Loan Schedule, except for any exceptions listed on Schedule A attached to such Interim Certification. The Custodian shall be under no duty or obligation to inspect, review or examine said documents, instruments, certificates or other papers to determine that the same are genuine, enforceable, or appropriate for the represented purpose or that they have actually been recorded or
that they are other than what they purport to be on their face.

(d)        The Trustee or the Custodian on its behalf will review the Mortgage Files within 180 days of the Closing Date and will deliver to the Mortgage Loan Seller and the Master Servicer, and if reviewed by the Custodian, the Trustee, a final certification substantially in the form of Exhibit Three to the Custodial Agreement. If the Trustee or the Custodian on its behalf is unable to deliver a final certification with respect to the items listed in Exhibit 1 due to any document that is missing, has not been executed, is unrelated, determined on the basis of the Mortgagor name, original principal balance and loan number, to the Mortgage Loans identified in the Final Mortgage Loan Schedule (a “Material Defect”), the Trustee or the Custodian on
its behalf shall notify the Mortgage Loan Seller of such Material Defect. The Mortgage Loan Seller shall correct or cure any such Material Defect within 90 days from the date of notice from the Trustee, the Depositor or the Master Servicer of the Material Defect and if the Mortgage Loan Seller does not correct or cure such Material Defect within such period and such defect materially and adversely affects the interests of the Certificateholders in the related Mortgage Loan, the Mortgage Loan Seller will, in accordance with the terms of the Pooling and Servicing Agreement, within 90 days of the date of notice, provide the Trustee with a Replacement Mortgage Loan (if within two years of the Closing Date) or purchase the related Mortgage Loan at the applicable Purchase Price; provided, however, that if such defect relates solely to the inability of the Mortgage Loan Seller to deliver the
original security instrument or intervening 

 

 

assignments thereof, or a certified copy because the originals of such documents, or a certified copy, have not been returned by the applicable jurisdiction, the Mortgage Loan Seller shall not be required to purchase such Mortgage Loan if the Mortgage Loan Seller delivers such original documents or certified copy promptly upon receipt, but in no event later than 360 days after the Closing Date. The foregoing repurchase obligation shall not apply in the event that the Mortgage Loan Seller cannot deliver such original or copy of any document submitted for recording to the appropriate recording office in the applicable jurisdiction because such document has not been returned by such office; provided that the Mortgage Loan Seller shall instead deliver a recording receipt of such recording office or, if such receipt is not available, a certificate of Mortgage Loan Seller or a Servicing Officer confirming that
such documents have been accepted for recording, and delivery to the Trustee shall be effected by the Mortgage Loan Seller within thirty days of its receipt of the original recorded document.

(e)        At the time of any substitution, the Mortgage Loan Seller shall deliver or cause to be delivered the Replacement Mortgage Loan, the related Mortgage File and any other documents and payments required to be delivered in connection with a substitution pursuant to the Pooling and Servicing Agreement. At the time of any purchase or substitution, the Trustee shall (i) assign the selected Mortgage Loan to the Mortgage Loan Seller and shall release or cause the Custodian to release the documents (including, but not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage File) in the possession of the Trustee or the Custodian, as applicable relating to the Deleted Mortgage Loan and (ii) execute and deliver such instruments of transfer or assignment, in each case without recourse, as shall be necessary to vest in the Mortgage
Loan Seller title to such Deleted Mortgage Loan.

	
            SECTION 6.
 	
            Recordation of Assignments of Mortgage.
 

(a)        The Mortgage Loan Seller will, promptly after the Closing Date, cause each Mortgage and each assignment of Mortgage from the Mortgage Loan Seller to the Trustee, and all unrecorded intervening assignments, if any, delivered on or prior to the Closing Date, to be recorded in all recording offices in the jurisdictions where the related Mortgaged Properties are located; provided, however, the Mortgage Loan Seller need not cause to be recorded any assignment which relates to a Mortgage Loan that is a MOM Loan or for which the related Mortgaged Property is located in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Mortgage Loan Seller to the Trustee and the Rating Agencies, the recordation of such
assignment is not necessary to protect the Trustee’s interest in the related Mortgage Loan;  provided, however, notwithstanding the delivery of any Opinion of Counsel, each assignment of Mortgage shall be submitted for recording by the Mortgage Loan Seller in the manner described above, at no expense to the Trust Fund or Trustee, upon the earliest to occur of (i) reasonable direction by the Holders of Certificates evidencing Percentage Interests aggregating not less than 25% of the Trust, (ii) the occurrence of an Event of Default, (iii) the occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgage Loan Seller under the Pooling and Servicing Agreement, (iv) the occurrence of a servicing transfer or an assignment of the servicing as described in Section 7.07 of the Pooling and Servicing Agreement or (iv) with respect to any one assignment of Mortgage, the occurrence
of a bankruptcy, insolvency or foreclosure relating to the Mortgagor under the related Mortgage.

 

 

While each such Mortgage or assignment is being recorded, if necessary, the Mortgage Loan Seller shall leave or cause to be left with the Trustee or the Custodian on its behalf a certified copy of such Mortgage or assignment. In the event that, within 180 days of the Closing Date, the Trustee has not been provided with an Opinion of Counsel as described above or received evidence of recording with respect to each Mortgage Loan delivered to the Purchaser pursuant to the terms hereof or as set forth above and the related Mortgage Loan is not a MOM Loan, the failure to provide evidence of recording or such Opinion of Counsel shall be considered a Material Defect, and the provisions of Section 5(c) and (d) shall apply. All customary recording fees and reasonable expenses relating to the recordation of the assignments of mortgage to the Trustee or the Opinion of Counsel, as the case may be,
shall be borne by the Mortgage Loan Seller.

(b)        It is the express intent of the parties hereto that the conveyance of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser, as contemplated by this Agreement be, and be treated as, a sale. It is, further, not the intention of the parties that such conveyance be deemed a pledge of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser to secure a debt or other obligation of the Mortgage Loan Seller. However, in the event that, notwithstanding the intent of the parties, the Mortgage Loans are held by a court to continue to be property of the Mortgage Loan Seller, then (a) this Agreement shall also be deemed to be a security agreement within the meaning of Articles 8 and 9 of the applicable Uniform Commercial Code; (b) the transfer of the Mortgage Loans provided for herein shall be deemed to be a grant by the Mortgage Loan
Seller to the Purchaser of a security interest in all of the Mortgage Loan Seller’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, to the extent the Purchaser would otherwise be entitled to own such Mortgage Loans and proceeds pursuant to Section 4 hereof, including all amounts, other than investment earnings, from time to time held or invested in any accounts created pursuant to the Pooling and Servicing Agreement, whether in the form of cash, instruments, securities or other property; (c) the possession by the Purchaser or the Trustee (or the Custodian on its behalf) of Mortgage Notes and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be deemed to be “possession by the secured
party” for purposes of perfecting the security interest pursuant to Section 9-305 (or comparable provision) of the applicable Uniform Commercial Code; and (d) 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 Purchaser for the purpose of perfecting such security interest under applicable law. Any assignment of the interest of the Purchaser pursuant to any provision hereof or pursuant to the Pooling and Servicing Agreement shall also be deemed to be an assignment of any security interest created hereby. The Mortgage Loan Seller and the Purchaser shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Pooling and Servicing Agreement.

 

 

SECTION 7.         Representations and Warranties of Mortgage Loan Seller Concerning the Mortgage Loans.  The Mortgage Loan Seller hereby represents and warrants to the Purchaser as of the Closing Date or such other date as may be specified below with respect to each Mortgage Loan being sold by it:

(a)        The information set forth in the Mortgage Loan Schedule on the Closing Date is complete, true and correct.

(b)        All payments required to be made prior to the Cut-off Date with respect to each Mortgage Loan have been made and no Mortgage Loan is delinquent thirty one or more days; and the Mortgage Loan Seller has not advanced funds, or induced, solicited or knowingly received any advance of funds from a party other than the owner of the Mortgaged Property subject to the Mortgage, directly or indirectly, for the payment of any amount required under any Mortgage Loan.

(c)        If any of the Mortgage Loans are secured by a leasehold interest, with respect to each leasehold interest: the use of leasehold estates for residential properties is an accepted practice in the area where the related Mortgaged Property is located; residential property in such area consisting of leasehold estates is readily marketable; the lease is recorded and no party is in any way in breach of any provision of such lease; the leasehold is in full force and effect and is not subject to any prior lien or encumbrance by which the leasehold could be terminated or subject to any charge or penalty; and the remaining term of the lease does not terminate less than ten years after the maturity date of such Mortgage Loan.

(d)        Except with respect to taxes, insurance and other amounts previously advanced by a prior servicer with respect to any Mortgage Loan, there are no delinquent taxes, water charges, sewer rents, assessments, insurance premiums, leasehold payments, including assessments payable in future installments, or other outstanding charges affecting the related Mortgaged Property.

(e)        The terms of the Mortgage Note and the Mortgage have not been impaired, waived, altered or modified in any respect, except by written instruments which in the case of the Mortgage Loans are in the Mortgage File and have been or will be recorded, if necessary to protect the interests of the Trustee, and which have been or will be delivered to the Trustee, all in accordance with this Agreement. The substance of any such waiver, alteration or modification has been approved by the title insurer, to the extent required by the related policy. No Mortgagor has been released, in whole or in part, except in connection with an assumption agreement approved by the title insurer, to the extent required by the policy, and which assumption agreement in the case of the Mortgage Loans is part of the Mortgage File.

(f)         The Mortgage Note and the Mortgage are not subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of the Mortgage Note and the Mortgage, or the exercise of any right thereunder, render the Mortgage unenforceable, in whole or in part, or subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto.

 

 

(g)        All buildings upon, or comprising part of, the Mortgaged Property are insured by an insurer acceptable to Fannie Mae and Freddie Mac against loss by fire, hazards of extended coverage and such other hazards as are customary in the area where the Mortgaged Property is located, and such insurer is licensed to do business in the state where the Mortgaged Property is located. All such insurance policies contain a standard mortgagee clause naming the originator, its successors and assigns as mortgagee and Mortgage Loan Seller has received no notice that all premiums thereon have not been paid. If upon origination of the Mortgage Loan, the Mortgaged Property was, or was subsequently deemed to be, in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards (and such flood insurance has
been made available), which require under applicable law that a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration (or any successor thereto) be obtained, such flood insurance policy is in effect which policy is with a generally acceptable carrier in an amount representing coverage not less than the least of (A) the Stated Principal Balance of the related Mortgage Loan, (B) the minimum amount required to compensate for damage or loss on a replacement cost basis, or (C) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The Mortgage obligates the Mortgagor thereunder to maintain all such insurance at Mortgagor’s cost and expense and, on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to maintain such insurance at Mortgagor’s cost and expense and to obtain reimbursement therefor from the Mortgagor.

(h)        Each loan at the time it was made complied in all material respects with applicable local, state and federal laws, including but not limited to, all applicable anti-predatory and abusive lending laws.  

(i)         The Mortgage has not been satisfied, canceled, subordinated, or rescinded, in whole or in part, and the Mortgaged Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would effect any such release, cancellation, subordination or rescission.

(j)         The Mortgage is a valid, existing and enforceable first or second lien on the Mortgaged Property, including all improvements on the Mortgaged Property, if any, subject only to (1) the lien of current real property taxes and assessments not yet due and payable, (2) covenants, conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording being acceptable to mortgage lending institutions generally and specifically referred to in the lender’s title insurance policy delivered to the originator of the Mortgage Loan and which do not adversely affect the Appraised Value of the Mortgaged Property and (3) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the Mortgage. The
Mortgage Loan Seller has full right to sell and assign the Mortgage to the Purchaser.

(k)        The Mortgage Note and the related Mortgage are genuine and each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or reorganization or general principles of equity.

 

 

(l)         All parties to the Mortgage Note and the Mortgage had the legal capacity to enter into the Mortgage Loan transaction and to execute and deliver the Mortgage Note and the Mortgage, and the Mortgage Note and the Mortgage have been duly and properly executed by such parties.

(m)       The proceeds of the Mortgage Loan have been fully disbursed and there is no requirement for future advances thereunder and any and all requirements as to completion of any on-site or off-site improvement and as to disbursements of any escrow funds therefor have been complied with. All costs, fees and expenses incurred in making or closing the Mortgage Loan and the recording of the Mortgage were paid, and the Mortgagor is not entitled to any refund of any amounts paid or due under the Mortgage Note or Mortgage.

(n)        Immediately prior to the conveyance of the Mortgage Loans by the Mortgage Loan Seller to the Purchaser hereunder, the Mortgage Loan Seller was the sole owner and holder of the Mortgage Loan; the related Originator or the Mortgage Loan Seller was the custodian of the related escrow account, if applicable; the Mortgage Loan had neither been assigned nor pledged, and the Mortgage Loan Seller had good and marketable title thereto, and had full right to transfer and sell the Mortgage Loan and the related servicing rights to the Purchaser free and clear of any encumbrance, equity, lien, pledge, charge, claim or security interest subject to the applicable servicing agreement and had full right and authority subject to no interest or participation of, or agreement with, any other party, to sell and assign the Mortgage Loan and the related
servicing rights, subject to the applicable servicing agreement, to the Purchaser pursuant to the terms of this Agreement.

(o)        All parties which have had any interest in the Mortgage, whether as mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and disposed of such interest, were) (1) in compliance with any and all applicable licensing requirements of the laws of the state wherein the Mortgaged Property is located, and (2) organized under the laws of such state, qualified to do business in such state, a federal savings and loan association or national bank having principal offices in such state or not deemed to be doing business in such state under applicable law.

(p)        The Mortgage Loan is covered by an ALTA lender’s title insurance policy or equivalent form acceptable to the Department of Housing and Urban Development, or any successor thereto, and qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring (subject to the exceptions contained in clause (i) above) the Mortgage Loan Seller (as assignee), its successors and assigns as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan. Additionally, such lender’s title insurance policy affirmatively insures ingress and egress, and against encroachments by or upon the Mortgaged Property or any interest therein. With respect to each Mortgage Loan, the Mortgage Loan Seller (as assignee) is the sole insured of such lender’s title insurance policy, and such
lender’s title insurance policy is in full force and effect. No claims have been made under such lender’s title insurance policy, and no prior holder of the related Mortgage, including the Mortgage Loan Seller, has done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy.

 

 

(q)        Except as provided in clause (b), immediately prior to the Cut-off Date, there was no default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage Note and there was no event which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration, and the Mortgage Loan Seller has not waived any default, breach, violation or event of acceleration.

(r)         There are no mechanics’ or similar liens or claims which have been filed for work, labor or material (and no rights are outstanding that under law could give rise to such lien) affecting the related Mortgaged Property which are or may be liens prior to or equal with, the lien of the related Mortgage.

(s)         At the time of origination, each Mortgaged Property was the subject of an appraisal which conformed to the underwriting requirements of the originator of the Mortgage Loan and, the appraisal is in a form acceptable to Fannie Mae or FHLMC.

(t)         The origination, servicing and collection practices with respect to each Mortgage Note and Mortgage including, the establishment, maintenance and servicing of the escrow accounts and escrow payments, if any, since origination, have been conducted in all respects in accordance with the terms of Mortgage Note and in compliance with all applicable laws and regulations and, unless otherwise required by law or Fannie Mae/Freddie Mac standards, in accordance with the proper, prudent and customary practices in the mortgage origination and servicing business. With respect to the escrow accounts and escrow payments, if any, and a Mortgage Loan all such payments are in the possession or under the control of the Mortgage Loan Seller (including pursuant to a Subservicing Agreement) and there exists no deficiencies in connection therewith for
which customary arrangements for repayment thereof have not been made.  Any interest required to be paid pursuant to state and local law has been properly paid and credited.

(u)        The Mortgaged Property is free of material damage and waste and there is no proceeding pending for the total or partial condemnation thereof.

(v)        The Mortgage contains customary and enforceable provisions to render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security intended to be provided thereby, including, (1) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (2) otherwise by judicial foreclosure. There is no other exemption available to the Mortgagor which would interfere with the right to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage.  The Mortgagor has not notified the Mortgage Loan Seller and the Mortgage Loan Seller has no knowledge of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act.

(w)       The Mortgage Note is not and has not been secured by any collateral except the lien of the applicable Mortgage.

(x)        In the event the Mortgage constitutes a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so 

 

 

serves and is named in the Mortgage, and no fees or expenses are or will become payable by the Certificateholders to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the Mortgagor.

(y)        No Mortgage Loan contains a permanent or temporary “buydown” provision. The Mortgage Loan is not a graduated payment mortgage loan.

(z)         The Mortgagor has received all disclosure materials required by applicable law with respect to the making of the Mortgage Loan.

(aa)       No Mortgage Loan was made in connection with the construction or rehabilitation of a Mortgaged Property.

(bb)      To the best of Mortgage Loan Seller’s knowledge, the Mortgaged Property is lawfully occupied under applicable law and all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including but not limited to certificates of occupancy, have been made or obtained from the appropriate authorities.

(cc)       The assignment of Mortgage with respect to a Mortgage Loan is in recordable form and is acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is located.

(dd)      The Mortgaged Property consists of a single parcel of real property with or without a detached single family residence erected thereon, or an individual condominium unit, or a 2-4 family dwelling, or an individual unit in a planned unit development as defined by Fannie Mae or a townhouse, each structure of which is permanently affixed to the Mortgaged Property, and is legally classified as real estate.

(ee)       Each Mortgage Loan at the time of origination was underwritten in general in accordance with guidelines not inconsistent with the guidelines set forth in the Prospectus Supplement and generally accepted credit underwriting guidelines.

(ff)        No error, omission, misrepresentation, fraud or similar occurrence with respect to a Mortgage Loan has taken place on the part of the Mortgage Loan Seller or the related Originator.

(gg)       None of the Mortgage Loans are (a) loans subject to 12 CFR Part 226.31, 12 CFR Part 226.32 or 12 CFR Part 226.34 of Regulation Z, the regulation implementing TILA, which implements the Home Ownership and Equity Protection Act of 1994 (“HOEPA”) or (b) classified and/or defined as a “high cost home loan” (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees) under any federal, state, or local law, including, but not limited to, the States of Georgia or North Carolina.

(hh)       None of the Mortgage Loans originated on or after October 1, 2002 and before March 7, 2003 was secured by property located in the State of Georgia.

 

 

(ii)         None of the Mortgage Loans that are secured by property located in the State of Illinois are in violation of the provisions of the Illinois Interest Act.

(jj)        All points and fees related to each Group II Loan were disclosed in writing to the borrower in accordance with applicable state and federal law and regulation.  Except in the case of a Group II Loan in an original principal amount of less than $60,000 which would have resulted in an unprofitable origination, no mortgagor was charged “points and fees” (whether or not financed) in an amount greater than 5% of the principal amount of such loan, such 5% limitation is calculated in accordance with Fannie Mae’s anti-predatory lending requirements as set forth in the Fannie Mae Selling Guide.

(kk)      With respect to each Group II Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity, the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law.

(ll)         No Group II Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk Home Loan Act effective January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.).

(mm)     All fees and charges (including finance charges) and whether or not financed, assessed, collected or to be collected in connection with the origination and servicing of each Group II Loan has been disclosed in writing to the borrower in accordance with applicable state and federal law and regulation.

(nn)       With respect to a Group II Loan, no borrower was encouraged or required to select a Group II Loan product offered by the Group II Loan’s originator which is a higher cost product designed for less creditworthy borrowers, unless at the time of the Group II Loan’s origination, such borrower did not qualify taking into account credit history and debt-to-income ratios for a lower-cost credit product then offered by the Group II Loan’s originator or any affiliate of that originator.  If, at the time of loan application, the borrower may have qualified for a lower-cost product than offered by any mortgage lending affiliate of the Group II Loan’s originator, the Group II Loan’s originator referred the borrower’s application to such affiliate for underwriting consideration.

(oo)      With respect to a Group II Loan, the methodology used in underwriting the extension of credit for each such Mortgage Loan employs objective mathematical principles which relate the borrower’s income, assets and liabilities to the proposed payment and such underwriting methodology does not rely on the extent of the borrower’s equity in the collateral as the principal determining factor in approving such credit extension.  Such underwriting methodology confirmed that at the time of origination (application/approval) the borrower had a reasonable ability to make timely payments on such Mortgage Loan.

(pp)      With respect to any Group II Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the loan’s origination, the borrower agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the borrower was offered the option of obtaining a mortgage loan that did not require payment of such a premium and (iii) for loans originated on or after September 1, 2004, the duration of the prepayment period shall not 

 

 

exceed three (3) years from the date of the note, unless the loan was modified to reduce the prepayment period to no more than three years from the date of the note and the borrower was notified in writing of such reduction in prepayment period.

(qq)      With respect to any Group II Loan, no borrower was required to purchase any single premium credit insurance policy (e.g., life, mortgage, disability, accident unemployment or health insurance product) or debt cancellation agreement as a condition of obtaining the extension of credit.  No borrower obtained a prepaid single-premium credit insurance policy (e.g., life, mortgage, disability, accident, unemployment or health insurance product) or debt cancellation agreement in connection with the origination of a Group II Loan; No proceeds from any Group II Loan were used to purchase single premium credit insurance policies or debt cancellation agreements as part of the origination of, or as a condition to closing, such Group II Loan.

(rr)        No Group II Loan is a balloon mortgage loan that has an original stated maturity of less than seven (7) years.

(ss)       No Group II Loan that was originated on or after October 31, 2004 is subject to mandatory arbitration except when the terms of the arbitration also contain a waiver provision that provides that in the event of a sale or transfer of the Group II Loan or interest in the Group II Loan to Fannie Mae, the terms of the arbitration are null and void and cannot be reinstated.  The Company hereby covenants that the seller or servicer of the Group II Loan, as applicable, will notify the borrower in writing within 60 days of the sale or transfer of the Group II Loan to Fannie Mae that the terms of arbitration are null and void. 

(tt)        With respect to any mortgage loans in Loan Group III originated on or after August 1, 2004 and underlying the Security, neither the related mortgage nor the related mortgage note requires the borrower to submit to arbitration to resolve any dispute arising out of or relating in any way to the mortgage loan transaction.

(uu)       None of the Group III Loans originated before October 1, 2002 imposes a Prepayment Charge for a term exceeding five years; none of the Group III Loans originated on or after October 1, 2002 imposes a Prepayment Charge for a term in excess of three years.

(vv)       With respect to each Group III Loan, no borrower obtained a prepaid single premium credit life, credit disability, credit unemployment or credit property insurance policy in connection with the origination of the mortgage loan.

(ww)     The conforming one- to four-family mortgage loans in Loan Group III, which may include the balance of any subordinated lien, each have an original principal balance that does not exceed Freddie Mac’s dollar amount limits.

(xx)       Each Group III Loan is a “qualified mortgage” under Section 860G(a)(3) of the Code.   

(yy)       None of the Mortgage Loans contains provisions pursuant to which monthly payments are (a) paid or partially paid with funds deposited in any separate account 

 

 

established by the Mortgage Loan Seller, the mortgagor, or anyone on behalf of the mortgagor, (b) paid by any source other than the mortgagor or (c) contains any other similar provisions which may constitute a “buydown” provision.  None of the Mortgage Loans is a graduated payment mortgage loan and no Mortgage Loan has a shared appreciation or other contingent interest feature.

(zz)       Each Mortgage Loan that contains a provision for the assumption substitution of liability, pursuant to which the original mortgagor is released from liability and another person is substituted as the mortgagor and becomes liable under the Mortgage Note, shall be effective only if such person satisfies the then current underwriting practices and procedures of prudent mortgage lenders in a state in which the mortgaged property is located.

(aaa)     The Mortgaged Property and all improvements thereon comply with all requirements of any applicable zoning and subdivision laws and ordinances.

(bbb)    Each Mortgage is a valid and enforceable first or second lien as applicable  on the property securing the related Mortgage Note and each Mortgaged Property is owned by the Mortgagor in fee simple (except with respect to common areas in the case of condominiums, PUDs and de minimis PUDs) or by leasehold for a term longer than the term of the related Mortgage, subject only to (i) the lien of current real property taxes and assessments, (ii) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage, such exceptions being acceptable to mortgage lending institutions generally or specifically reflected in the appraisal obtained in connection with the origination of the related Mortgage Loan or referred to in the lender’s title insurance policy delivered to the originator of
the related Mortgage Loan and (iii) other matters to which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by such Mortgage; Appraisal Form 1004 or Form 2055 with an interior inspection for first lien Mortgage Loans has been obtained.  Form 704, 2065 or 2055 with an exterior only inspection for junior lien Mortgage Loans has been obtained.

(ccc)     Each Prepayment Charge is enforceable and was originated in compliance with all applicable federal, state and local laws.

(ddd)    With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity, the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law.

(eee)     No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such terms are defined in the then current Standard & Poor’s LEVELS® Glossary which is now Version 5.6b Revised (Appendix E attached hereto as Exhibit 6).

It is understood and agreed that the representations and warranties set forth in this Section 7 will inure to the benefit of the Purchaser, its successors and assigns, notwithstanding any restrictive or qualified endorsement on any Mortgage Note or assignment of Mortgage or the examination of any Mortgage File. Upon any substitution for a Mortgage Loan, the representations and warranties set forth above shall be deemed to be made by the Mortgage Loan Seller as to any Replacement Mortgage Loan as of the date of substitution.

 

 

Upon discovery or receipt of notice by the Mortgage Loan Seller, the Purchaser or the Trustee of a breach of any representation or warranty of the Mortgage Loan Seller set forth in this Section 7 which materially and adversely affects the value of the interests of the Purchaser, the Certificateholders or the Trustee in any of the Mortgage Loans delivered to the Purchaser pursuant to this Agreement, the party discovering or receiving notice of such breach shall give prompt written notice to the others. It is understood and agreed that a breach of any one of the representations contained in clauses (gg), (hh) and  (tt) through (ww) above in respect of a Group III Loan will be deemed to materially adversely affect the interests of the related Certificateholders. In the case of any such breach of a representation or warranty set forth in this Section 7, within 90 days from the date of
discovery by the Mortgage Loan Seller, or the date the Mortgage Loan Seller is notified by the party discovering or receiving notice of such breach (whichever occurs earlier), the Mortgage Loan Seller will (i) cure such breach in all material respects, (ii) purchase the affected Mortgage Loan at the applicable Purchase Price or (iii) if within two years of the Closing Date, substitute a qualifying Replacement Mortgage Loan in exchange for such Mortgage Loan; provided that, (A) in the case of a breach of the representation and warranty concerning the Mortgage Loan Schedule contained in clause (a) of this Section 7, if such breach is material and relates to any field on the Mortgage Loan Schedule which identifies any Prepayment Charge or (B) in the case of a breach of the representation contained in clause (ccc) of this Section 7, then, in each case, in lieu of purchasing such Mortgage Loan from the Trust Fund at the Purchase Price, the Mortgage Loan Seller shall pay the amount of the
Prepayment Charge (net of any amount previously collected by or paid to the Trust Fund in respect of such Prepayment Charge) from its own funds and without reimbursement therefor, and the Mortgage Loan Seller shall have no obligation to repurchase or substitute for such Mortgage Loan. The obligations of the Mortgage Loan Seller to cure, purchase or substitute a qualifying Replacement Mortgage Loan shall constitute the Purchaser’s, the Trustee’s and the Certificateholder’s sole and exclusive remedy under this Agreement or otherwise respecting a breach of representations or warranties hereunder with respect to the Mortgage Loans, except for the obligation of the Mortgage Loan Seller to indemnify the Purchaser for such breach as set forth in and limited by Section 13 hereof.

Any cause of action against the Mortgage Loan Seller or relating to or arising out of a breach by the Mortgage Loan Seller of any representations and warranties made in this Section 7 shall accrue as to any Mortgage Loan upon (i) discovery of such breach by the Mortgage Loan Seller or notice thereof by the party discovering such breach and (ii) failure by the Mortgage Loan Seller to cure such breach, purchase such Mortgage Loan or substitute a qualifying Replacement Mortgage Loan pursuant to the terms hereof.

SECTION 8.          Representations and Warranties Concerning the Mortgage Loan Seller.  As of the date hereof and as of the Closing Date, the Mortgage Loan Seller represents and warrants to the Purchaser as to itself in the capacity indicated as follows:

(a)        the Mortgage Loan Seller (i) is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and (ii) is qualified and in good standing to do business in each jurisdiction where such qualification is necessary, except where the failure so to qualify would not reasonably be expected to have a material adverse effect on the Mortgage Loan Seller’s business as presently conducted or on the Mortgage Loan 

 

 

Seller’s ability to enter into this Agreement and to consummate the transactions contemplated hereby;

(b)        the Mortgage Loan Seller has full power to own its property, to carry on its business as presently conducted and to enter into and perform its obligations under this Agreement;

(c)        the execution and delivery by the Mortgage Loan Seller of this Agreement has been duly authorized by all necessary action on the part of the Mortgage Loan Seller; and neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof or thereof, will conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Mortgage Loan Seller or its properties or the charter or by-laws of the Mortgage Loan Seller, except those conflicts, breaches or defaults which would not reasonably be expected to have a material adverse effect on the Mortgage Loan Seller’s ability to enter into this Agreement and to consummate the transactions contemplated hereby;

(d)        the execution, delivery and performance by the Mortgage Loan Seller of this Agreement and the consummation of the transactions contemplated hereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any state, federal or other governmental authority or agency, except those consents, approvals, notices, registrations or other actions as have already been obtained, given or made and, in connection with the recordation of the Mortgages, powers of attorney or assignments of Mortgages not yet completed;

(e)        this Agreement has been duly executed and delivered by the Mortgage Loan Seller and, assuming due authorization, execution and delivery by the Purchaser or the parties thereto, constitutes a valid and binding obligation of the Mortgage Loan Seller enforceable against it in accordance with its terms (subject to applicable bankruptcy and insolvency laws and other similar laws affecting the enforcement of the rights of creditors generally);

(f)         there are no actions, suits or proceedings pending or, to the knowledge of the Mortgage Loan Seller, threatened against the Mortgage Loan Seller, before or by any court, administrative agency, arbitrator or governmental body (i) with respect to any of the transactions contemplated by this Agreement or (ii) with respect to any other matter which in the judgment of the Mortgage Loan Seller could reasonably be expected to be determined adversely to the Mortgage Loan Seller and if determined adversely to the Mortgage Loan Seller materially and adversely affect the Mortgage Loan Seller’s ability to perform its obligations under this Agreement; and the Mortgage Loan Seller is not in default with respect to any order of any court, administrative agency, arbitrator or governmental body so as to materially and adversely affect the
transactions contemplated by this Agreement; and

(g)        the Mortgage Loan Seller’s Information (as defined in Section 14(a) hereof) does not include any untrue statement of a material fact or omit to state a material fact 

 

 

necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

SECTION 9.          Representations and Warranties Concerning the Purchaser.  As of the date hereof and as of the Closing Date, the Purchaser represents and warrants to the Mortgage Loan Seller as follows:

(a)        the Purchaser (i) is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and (ii) is qualified and in good standing to do business in each jurisdiction where such qualification is necessary, except where the failure so to qualify would not reasonably be expected to have a material adverse effect on the Purchaser’s business as presently conducted or on the Purchaser’s ability to enter into this Agreement and to consummate the transactions contemplated hereby;

(b)        the Purchaser has full power to own its property, to carry on its business as presently conducted and to enter into and perform its obligations under this Agreement;

(c)        the execution and delivery by the Purchaser of this Agreement has been duly authorized by all necessary action on the part of the Purchaser; and neither the execution and delivery of this Agreement, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof, will conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulation, judgment, decree or order binding on the Purchaser or its properties or the certificate of formation or limited liability company agreement of the Purchaser, except those conflicts, breaches or defaults which would not reasonably be expected to have a material adverse effect on the Purchaser’s ability to enter into this Agreement and to consummate the transactions contemplated hereby or thereby;

(d)        the execution, delivery and performance by the Purchaser of this Agreement and the consummation of the transactions contemplated hereby or thereby do not require the consent or approval of, the giving of notice to, the registration with, or the taking of any other action in respect of, any state, federal or other governmental authority or agency, except those consents, approvals, notices, registrations or other actions as have already been obtained, given or made;

(e)        this Agreement has been duly executed and delivered by the Purchaser and, assuming due authorization, execution and delivery by the Mortgage Loan Seller, constitutes a valid and binding obligation of the Purchaser enforceable against it in accordance with its terms (subject to applicable bankruptcy and insolvency laws and other similar laws affecting the enforcement of the rights of creditors generally);

(f)         there are no actions, suits or proceedings pending or, to the knowledge of the Purchaser, threatened against the Purchaser, before or by any court, administrative agency, arbitrator or governmental body (i) with respect to any of the transactions contemplated by this Agreement or (ii) with respect to any other matter which in the judgment of the Purchaser could reasonably be expected to be determined adversely to the Purchaser and if determined adversely to the Purchaser materially and adversely affect the Purchaser’s ability to perform its obligations 

 

 

under this Agreement; and the Purchaser is not in default with respect to any order of any court, administrative agency, arbitrator or governmental body so as to materially and adversely affect the transactions contemplated by this Agreement; and

(g)        the Purchaser’s Information (as defined in Section 14(b) hereof) does not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.

	
            SECTION 10.
 	
            Conditions to Closing.
 

(a)        The obligations of the Purchaser under this Agreement will be subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

(1)        Each of the obligations of the Mortgage Loan Seller required to be performed at or prior to the Closing Date pursuant to the terms of this Agreement shall have been duly performed and complied with in all material respects; all of the representations and warranties of the Mortgage Loan Seller under this Agreement shall be true and correct as of the date or dates specified in all material respects; and no event shall have occurred which, with notice or the passage of time, would constitute a default under this Agreement or the Pooling and Servicing Agreement, and the Purchaser shall have received certificates to that effect signed by authorized officers of the Mortgage Loan Seller.

(2)        The Purchaser shall have received all of the following closing documents, in such forms as are agreed upon and reasonably acceptable to the Purchaser, duly executed by all signatories other than the Purchaser as required pursuant to the respective terms thereof:

(i)         If required pursuant to Section 3 hereof, the Amendment dated as of the Closing Date and any documents referred to therein;

(ii)         If required pursuant to Section 3 hereof, the Final Mortgage Loan Schedule containing the information set forth on Exhibit 2 hereto, one copy to be attached to each counterpart of the Amendment;

(iii)        The Pooling and Servicing Agreement, in form and substance reasonably satisfactory to the Trustee and the Purchaser, and all documents required thereby duly executed by all signatories;

(iv)        A certificate of an officer of the Mortgage Loan Seller dated as of the Closing Date, in a form reasonably acceptable to the Purchaser, and attached thereto the resolutions of the Mortgage Loan Seller authorizing the transactions contemplated by this Agreement, together with copies of the articles of incorporation, by-laws and certificate of good standing of the Mortgage Loan Seller;

 

 

(v)        One or more opinions of counsel from the Mortgage Loan Seller’s counsel otherwise in form and substance reasonably satisfactory to the Purchaser, the Trustee and each Rating Agency;

(vi)        A letter from each of the Rating Agencies giving each Class of Certificates set forth on Schedule A hereto the rating set forth therein; and

(vii)       Such other documents, certificates (including additional representations and warranties) and opinions as may be reasonably necessary to secure the intended ratings from each Rating Agency for the Certificates.

(3)        The Certificates to be sold to Bear Stearns pursuant to the Underwriting Agreement and the Purchase Agreement shall have been issued and sold to Bear Stearns.

(4)        The Mortgage Loan Seller shall have furnished to the Purchaser such other certificates of its officers or others and such other documents and opinions of counsel to evidence fulfillment of the conditions set forth in this Agreement and the transactions contemplated hereby as the Purchaser and its respective counsel may reasonably request.

(b)        The obligations of the Mortgage Loan Seller under this Agreement shall be subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

(1)        The obligations of the Purchaser required to be performed by it on or prior to the Closing Date pursuant to the terms of this Agreement shall have been duly performed and complied with in all material respects, and all of the representations and warranties of the Purchaser under this Agreement shall be true and correct in all material respects as of the date hereof and as of the Closing Date, and no event shall have occurred which would constitute a breach by it of the terms of this Agreement or Pooling and Servicing Agreement, and the Mortgage Loan Seller shall have received a certificate to that effect signed by an authorized officer of the Purchaser.

(2)        The Mortgage Loan Seller shall have received copies of all of the following closing documents, in such forms as are agreed upon and reasonably acceptable to the Mortgage Loan Seller, duly executed by all signatories other than the Mortgage Loan Seller as required pursuant to the respective terms thereof:

(i)         If required pursuant to Section 3 hereof, the Amendment dated as of the Closing Date and any documents referred to therein;

(ii)         The Pooling and Servicing Agreement, in form and substance reasonably satisfactory to the Mortgage Loan Seller and the Trustee and all documents required thereby duly executed by all signatories;

(iii)        A certificate of an officer of the Purchaser dated as of the Closing Date, in a form reasonably acceptable to the Mortgage Loan Seller, and attached thereto the written consent of the member of the Purchaser authorizing the transactions 

 

 

contemplated by this Agreement and the Pooling and Servicing Agreement, together with copies of the Purchaser’s certificate of formation, limited liability company agreement and evidence as to the good standing of the Purchaser dated as of a recent date;

(iv)        One or more opinions of counsel from the Purchaser’s counsel in form and substance reasonably satisfactory to the Mortgage Loan Seller, the Trustee and the Rating Agencies; and

(v)        Such other documents, certificates (including additional representations and warranties) and opinions as may be reasonably necessary to secure the intended rating from each Rating Agency for the Certificates.

SECTION 11.       Fees and Expenses.  Subject to Section 16 hereof, the Mortgage Loan Seller shall pay on the Closing Date or such later date as may be agreed to by the Purchaser (i) the fees and expenses of the Mortgage Loan Seller’s attorneys and the reasonable fees and expenses of the Purchaser’s attorneys, (ii) the fees and expenses of Deloitte & Touche LLP, (iii) the fee for the use of Purchaser’s Registration Statement based on the aggregate original principal amount of the Certificates and the filing fee of the Commission as in effect on the date on which the Registration Statement was declared effective, (iv) the fees and expenses including counsel’s fees and expenses in connection with any “blue sky” and legal investment matters, (v) the fees and expenses of the
Trustee which shall include without limitation the fees and expenses of the Trustee (and the fees and disbursements of its counsel) with respect to (A) legal and document review of this Agreement, the Pooling and Servicing Agreement, the Certificates and related agreements, (B) attendance at the Closing and (C) review of the Mortgage Loans to be performed by the Trustee or the Custodian on its behalf, (vi) the expenses for printing or otherwise reproducing the Certificates, the Prospectus and the Prospectus Supplement, (vii) the fees and expenses of each Rating Agency (both initial and ongoing), (viii) the fees and expenses relating to the preparation and recordation of mortgage assignments (including intervening assignments, if any and if available, to evidence a complete chain of title from the originator to the Trustee) from the Mortgage Loan Seller to the Trustee or the expenses relating to the Opinion of Counsel referred to in Section 6(a) hereof, as the case may be and (ix)
Mortgage File due diligence expenses and other out-of-pocket expenses incurred by the Purchaser in connection with the purchase of the Mortgage Loans and by Bear Stearns in connection with the sale of the Certificates. The Mortgage Loan Seller additionally agrees to pay directly to any third party on a timely basis the fees provided for above which are charged by such third party and which are billed periodically.

	
            SECTION 12.
 	
            Accountants’ Letters.
 

(a)        Deloitte & Touche LLP will review the characteristics of a sample of the Mortgage Loans described in the Final Mortgage Loan Schedule and will compare those characteristics to the description of the Mortgage Loans contained in the Prospectus Supplement under the captions “Summary—The Mortgage Loans” and “The Mortgage Pool” and in Schedule A thereto. The Mortgage Loan Seller will cooperate with the Purchaser in making available all information and taking all steps reasonably necessary to permit such accountants to complete the review and to deliver the letters required of them under the Underwriting Agreement. Deloitte & 

 

 

Touche LLP will also confirm certain calculations as set forth under the caption “Yield, Prepayment and Maturity Considerations” in the Prospectus Supplement.

(b)        To the extent statistical information with respect to the Mortgage Loan Seller’s servicing portfolio is included in the Prospectus Supplement under the caption “Servicing of the Mortgage Loans—The Master Servicer—Delinquency and Foreclosure Experience of EMC,” a letter from the certified public accountant for the Mortgage Loan Seller will be delivered to the Purchaser dated the date of the Prospectus Supplement, in the form previously agreed to by the Mortgage Loan Seller and the Purchaser, with respect to such statistical information.

	
            SECTION 13.
 	
            Indemnification.
 

(a)        The Mortgage Loan Seller shall indemnify and hold harmless the Purchaser and its directors, officers and controlling persons (as defined in Section 15 of the Securities Act) from and against any loss, claim, damage or liability or action in respect thereof, to which they or any of them may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon (i) any untrue statement of a material fact contained in the Mortgage Loan Seller’s Information as identified in Exhibit 3, the omission to state in the Prospectus Supplement or Prospectus (or any amendment thereof or supplement thereto approved by the Mortgage Loan Seller and in which additional Mortgage Loan
Seller’s Information is identified), in reliance upon and in conformity with Mortgage Loan Seller’s Information a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances in which they were made, not misleading, (ii) any representation or warranty assigned or made by the Mortgage Loan Seller in Section 7 or Section 9 hereof being, or alleged to be, untrue or incorrect, or (iii) any failure by the Mortgage Loan Seller to perform its obligations under this Agreement; and the Mortgage Loan Seller shall reimburse the Purchaser and each other indemnified party for any legal and other expenses reasonably incurred by them in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action.

The foregoing indemnity agreement is in addition to any liability which the Mortgage Loan Seller otherwise may have to the Purchaser or any other such indemnified party.

(b)        The Purchaser shall indemnify and hold harmless the Mortgage Loan Seller and its respective directors, officers and controlling persons (as defined in Section 15 of the Securities Act) from and against any loss, claim, damage or liability or action in respect thereof, to which they or any of them may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon (i) any untrue statement of a material fact contained in the Purchaser’s Information as identified in Exhibit 4, the omission to state in the Prospectus Supplement or Prospectus (or any amendment thereof or supplement thereto approved by the Purchaser and in which additional Purchaser’s Information
is identified), in reliance upon and in conformity with the Purchaser’s Information, a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances in which they were made, not misleading, (ii) any representation or warranty made by the Purchaser in Section 9 hereof being, or alleged to be, untrue or incorrect, or (iii) any failure by the Purchaser to perform its obligations under this Agreement; and the Purchaser shall 

 

 

reimburse the Mortgage Loan Seller, and each other indemnified party for any legal and other expenses reasonably incurred by them in connection with investigating or defending or preparing to defend any such loss, claim, damage, liability or action. The foregoing indemnity agreement is in addition to any liability which the Purchaser otherwise may have to the Mortgage Loan Seller, or any other such indemnified party.

(c)        Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the commencement thereof (but the failure so to notify an indemnifying party shall not relieve it from any liability which it may have under this Section 13 except to the extent that it has been prejudiced in any material respect by such failure or from any liability which it may have otherwise). In case any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent it may
elect by written notice delivered to the indemnified party promptly (but, in any event, within 30 days) after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, or (iii) such indemnified party or parties shall have reasonably concluded that there is a conflict of interest between itself or themselves and the
indemnifying party in the conduct of the defense of any claim or that the interests of the indemnified party or parties are not substantially co-extensive with those of the indemnifying party (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the indemnifying parties (provided, however, that the indemnifying party shall be liable only for the fees and expenses of one counsel in addition to one local counsel in the jurisdiction involved. Anything in this subsection to the contrary notwithstanding, an indemnifying party shall not be liable for any settlement or any claim or action effected without its written consent; provided, however, that
such consent was not unreasonably withheld.

(d)        If the indemnification provided for in paragraphs (a) and (b) of this Section 13 shall for any reason be unavailable to an indemnified party in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to in Section 13, then the indemnifying party shall in lieu of indemnifying the indemnified party contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, in such proportion as shall be appropriate to reflect the relative benefits received by the Mortgage Loan Seller on the one hand and the Purchaser on the other from the purchase and sale of the Mortgage Loans, the offering of the Certificates and the other transactions contemplated hereunder. No person found liable for a fraudulent misrepresentation 

 

 

shall be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation.

(e)        The parties hereto agree that reliance by an indemnified party on any publicly available information or any information or directions furnished by an indemnifying party shall not constitute negligence, bad faith or willful misconduct by such indemnified party.

SECTION 14. Notices.  All demands, notices and communications hereunder shall be in writing but may be delivered by facsimile transmission subsequently confirmed in writing. Notices to the Mortgage Loan Seller shall be directed to EMC Mortgage Corporation, 909 Hidden Ridge Drive, Suite 200 Irving, Texas 75038, (Telecopy: (972-444-2880)); notices to the Purchaser shall be directed to Bear Stearns Asset Backed Securities I LLC, 383 Madison Avenue, New York, New York 10179, (Telecopy: (212-272-7206)), Attention: Chief Counsel; or to any other address as may hereafter be furnished by one party to the other party by like notice.  Any such demand, notice or communication hereunder shall be deemed to have been received on the date received at the premises of the addressee (as evidenced, in the case of registered or certified mail, by
the date noted on the return receipt) provided that it is received on a business day during normal business hours and, if received after normal business hours, then it shall be deemed to be received on the next business day.

SECTION 15.       Transfer of Mortgage Loans.  The Purchaser retains the right to assign the Mortgage Loans and any or all of its interest under this Agreement to the Trustee without the consent of the Mortgage Loan Seller, and, upon such assignment, the Trustee shall succeed to the applicable rights and obligations of the Purchaser hereunder; provided, however, the Purchaser shall remain entitled to the benefits set forth in Sections 11, 13 and 17 hereto and as provided in Section 2(a). Notwithstanding the foregoing, the sole and exclusive right and remedy of the Trustee with respect to a breach of representation or warranty of the Mortgage Loan Seller shall be the cure, purchase or substitution obligations of the Mortgage Loan Seller contained in Sections 5 and 7 hereof.

SECTION 16.        Termination.  This Agreement may be terminated (a) by the mutual consent of the parties hereto prior to the Closing Date, (b) by the Purchaser, if the conditions to the Purchaser’s obligation to close set forth under Section 10(a) hereof are not fulfilled as and when required to be fulfilled or (c) by the Mortgage Loan Seller, if the conditions to the Mortgage Loan Seller’s obligation to close set forth under Section 10(b) hereof are not fulfilled as and when required to be fulfilled. In the event of termination pursuant to clause (b), the Mortgage Loan Seller shall pay, and in the event of termination pursuant to clause (c), the Purchaser shall pay, all reasonable out-of-pocket expenses incurred by the other in connection with the transactions contemplated by this
Agreement. In the event of a termination pursuant to clause (a), each party shall be responsible for its own expenses.

SECTION 17.       Representations, Warranties and Agreements to Survive Delivery.  All representations, warranties and agreements contained in this Agreement, or contained in certificates of officers of the Mortgage Loan Seller submitted pursuant hereto, shall remain operative and in full force and effect and shall survive delivery of the Mortgage Loans to the Purchaser (and by the Purchaser to the Trustee). Subsequent to the delivery of the Mortgage Loans to the Purchaser, each of the Mortgage Loan Seller’s representations and warranties 

 

 

contained herein with respect to the Mortgage Loans shall be deemed to relate to the Mortgage Loans actually delivered to the Purchaser and included in the Final Mortgage Loan Schedule and any Replacement Mortgage Loan and not to those Mortgage Loans deleted from the Preliminary Mortgage Loan Schedule pursuant to Section 3 hereof prior to the Closing.

SECTION 18.        Severability.  If any provision of this Agreement shall be prohibited or invalid under applicable law, this Agreement shall be ineffective only to such extent, without invalidating the remainder of this Agreement.

SECTION 19.        Counterparts.  This Agreement may be executed in counterparts, each of which will be an original, but which together shall constitute one and the same agreement.

SECTION 20.       Amendment.  This Agreement cannot be amended or modified in any manner without the prior written consent of each party.

SECTION 21.        GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTION 5 1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

SECTION 22.       Further Assurances.  Each of the parties agrees to execute and deliver such instruments and take such actions as another party may, from time to time, reasonably request in order to effectuate the purpose and to carry out the terms of this Agreement including any amendments hereto which may be required by either Rating Agency.

	
            SECTION 23.
 	
            Successors and Assigns.
 

(a)        This Agreement shall bind and inure to the benefit of and be enforceable by the Mortgage Loan Seller and the Purchaser and their permitted successors and assigns and, to the extent specified in Section 13 hereof, Bear Stearns, and their directors, officers and controlling persons (within the meaning of federal securities laws), to the extent of its rights as a third party beneficiary hereunder. The Mortgage Loan Seller acknowledges and agrees that the Purchaser may assign its rights under this Agreement (including, without limitation, with respect to the Mortgage Loan Seller’s representations and warranties respecting the Mortgage Loans) to the Trustee. Any person into which the Mortgage Loan Seller may be merged or consolidated (or any person resulting from any merger or consolidation involving the Mortgage Loan Seller), any person
resulting from a change in form of the Mortgage Loan Seller or any person succeeding to the business of the Mortgage Loan Seller, shall be considered the “successor” of the Mortgage Loan Seller hereunder and shall be considered a party hereto without the execution or filing of any paper or any further act or consent on the part of any party hereto. Except as provided in the two preceding sentences, this Agreement cannot be assigned, pledged or hypothecated by either party hereto without the written consent of the other parties to this Agreement and any such assignment or purported assignment shall be deemed null and void.

 

 

SECTION 24.        The Mortgage Loan Seller.  The Mortgage Loan Seller will keep in full force and effect its existence, all rights and franchises as a corporation under the laws of the State of its incorporation and will obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is necessary to perform its obligations under this Agreement.

SECTION 25.        Entire Agreement.  This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.

SECTION 26.       No Partnership.  Nothing herein contained shall be deemed or construed to create a partnership or joint venture between the parties hereto.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective duly authorized officers as of the date first above written.

EMC MORTGAGE CORPORATION

 

	
            By:
 	
             ________________________________________

	
            Name:
 
	
            Title:
 	
             

			

BEAR STEARNS ASSET BACKED SECURITIES I LLC

 

	
            By:_________________________________
 

Name: 

Title:  

 

 

 

EXHIBIT 1

CONTENTS OF MORTGAGE FILE

With respect to each Mortgage Loan, the Mortgage File shall include each of the following items, which shall be available for inspection by the Purchaser or its designee, and which shall be delivered to the Purchaser or its designee pursuant to the terms of this Agreement.

(i)         The original Mortgage Note, including any riders thereto, endorsed without recourse to the order of “LaSalle Bank National Association, as Trustee for certificateholders of Bear Stearns Asset Backed Securities I LLC Asset- Backed Certificates, Series 2005-HE4,” and showing to the extent available to the Mortgage Loan Seller an unbroken chain of endorsements from the original payee thereof to the Person endorsing it to the Trustee;

(ii)         the original Mortgage and, if the related Mortgage Loan is a MOM Loan, noting the presence of the MIN and language indicating that such Mortgage Loan is a MOM Loan, which shall have been recorded (or if the original is not available, a copy), with evidence of such recording indicated thereon (or if clause (x) in the proviso below applies, shall be in recordable form);

(iii)        unless the Mortgage Loan is a MOM Loan, the assignment (either an original or a copy, which may be in the form of a blanket assignment if permitted in the jurisdiction in which the Mortgaged Property is located) to the Trustee of the Mortgage with respect to each Mortgage Loan in the name of “LaSalle Bank National Association, as Trustee for certificateholders of Bear Stearns Asset Backed Securities I LLC Asset Backed Certificates, Series 2005-HE4,” which shall have been recorded (or if clause (x) in the proviso below applies, shall be in recordable form);

(iv)        an original or a copy of all intervening assignments of the Mortgage, if any, to the extent available to the Mortgage Loan Seller, with evidence of recording thereon;

(v)        the original policy of title insurance or mortgagee’s certificate of title insurance or commitment or binder for title insurance, if available, or a copy thereof, or, in the event that such original title insurance policy is unavailable, a photocopy thereof, or in lieu thereof, a current lien search on the related Mortgaged Property and

(vi)        originals or copies of all available assumption, modification or substitution agreements, if any; provided, however, that in lieu of the foregoing, the Mortgage Loan Seller may deliver the following documents, under the circumstances set forth below:  x) if any Mortgage, assignment thereof to the Trustee or intervening assignments thereof have been delivered or are being delivered to recording offices for recording and have not been returned in time to permit their delivery as specified above, the Purchaser may deliver a true copy thereof with a certification by the Mortgage Loan Seller or the title company issuing the commitment for title insurance, on the face of such copy, substantially as follows: “Certified to be a true and correct copy of the original, 

 

 

which has been transmitted for recording” and (y) in lieu of the Mortgage Notes relating to the Mortgage Loans identified in the list set forth in Exhibit J to the Pooling and Servicing Agreement, the Purchaser may deliver a lost note affidavit and indemnity and a copy of the original note, if available; and provided, further, however, that in the case of Mortgage Loans which have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Purchaser, in lieu of delivering the above documents, may deliver to the Trustee and its Custodian a certification of a Servicing Officer to such effect and in such case shall deposit all amounts paid in respect of such Mortgage Loans, in the Protected Account or in the Distribution Account on the Closing Date. In the case of the documents referred to in clause (x) above, the Purchaser shall deliver such documents to the
Trustee or its Custodian promptly after they are received. The Mortgage Loan Seller shall cause, at its expense, the Mortgage and intervening assignments, if any, and to the extent required in accordance with the foregoing, the assignment of the Mortgage to the Trustee to be submitted for recording promptly after the Closing Date; provided that the Mortgage Loan Seller need not cause to be recorded any assignment (a) in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel addressed to the Trustee delivered by the Mortgage Loan Seller to the Trustee and the Rating Agencies, the recordation of such assignment is not necessary to protect the Trustee’s interest in the related Mortgage Loan or (b) if MERS is identified on the Mortgage or on a properly recorded assignment of the Mortgage as mortgagee of record solely as nominee for Mortgage Loan Seller and its successors and assigns.  In the event that the Mortgage Loan Seller, the Purchaser or the Master
Servicer gives written notice to the Trustee that a court has recharacterized the sale of the Mortgage Loans as a financing, the Mortgage Loan Seller shall submit or cause to be submitted for recording as specified above or, should the Mortgage Loan Seller fail to perform such obligations, the Master Servicer shall cause each such previously unrecorded assignment to be submitted for recording as specified above at the expense of the Trust.  In the event a Mortgage File is released to the Mortgage Loan Seller or the Master Servicer as a result of such Person having completed a Request for Release, the Custodian shall, if not so completed, complete the assignment of the related Mortgage in the manner specified in clause (iii) above.

 

 

 

EXHIBIT 2

MORTGAGE LOAN SCHEDULE INFORMATION

The Preliminary and Final Mortgage Loan Schedules shall set forth the following information with respect to each Mortgage Loan:

	
            (i).
 	
            the loan sequence number;
 	
             

	
            (ii).
 	
            the Mortgage Loan identifying number;
 	
             

	
            (iii).
 	
            the EMC Loan identifying number;
 	
             

	
            (iv).
 	
            the current gross coupon;
 	
             

	
            (v).
 	
            the Servicing Fee Rate;
 	
             

	
            (vi).
 	
            the master servicing fee rate, if applicable;
 
	
            (vii).
 	
            the LPMI Fee, if applicable;
 	
             

	
            (viii).
 	
            the Trustee Fee Rate;
 	
             

	
            (ix).
 	
            the current net coupon;
 	
             

	
            (x).
 	
            the maturity date;
 	
             

	
            (xi).
 	
            the original principal balance;
 	
             

	
            (xii).
 	
            the current principal balance;
 	
             

	
            (xiii).
 	
            the stated original term to maturity;
 	
             

	
            (xiv).
 	
            the stated remaining term to maturity;
 	
             

	
            (xv).
 	
            the property type;
 	
             

	
            (xvi).
 	
            the MIN with respect to each MOM Loan;
 
															

	
            (xvii).
 	
            with respect to each Adjustable Rate Mortgage Loan, the Minimum Mortgage Rate;
 
	
            (xviii).
 	
            with respect to each Adjustable Rate Mortgage Loan, the Maximum Mortgage Rate;
 

	
            (xix).
 	
            with respect to each Adjustable Rate Mortgage Loan, the Gross Margin;
 

 

 

 

 

	
            (xx).
 	
            with respect to each Adjustable Rate Mortgage Loan, the next Adjustment Date;
 
	
            (xxi).
 	
            with respect to each Adjustable Rate Mortgage Loan, the Periodic Rate Cap;
 

	
            (xxii).
 	
            the Loan Group; and
 

	
            (xxiii).
 	
            a code indicating whether such Mortgage Loan is a first lien Mortgage Loan or a second lien Mortgage Loan.
 

 

 

EXHIBIT 3

MORTGAGE LOAN SELLER’S INFORMATION

All information in the Prospectus Supplement described under the following captions: “SUMMARY — The Mortgage Loans,” “THE MORTGAGE POOL” and “SCHEDULE A — Mortgage Loan Statistical Data.”

 

 

EXHIBIT 4

PURCHASER’S INFORMATION

All information in the Prospectus Supplement and the Prospectus, except the Mortgage Loan Seller’s Information and the Swap Provider’s Information.

 

 

 

EXHIBIT 5

SCHEDULE OF LOST NOTES

Available Upon Request

 

 

 

EXHIBIT 6

REVISED February 07, 2005

	
            .
 	
            APPENDIX E – Standard & Poor’s Anti-Predatory Lending Categorization
 

 

 

Standard & Poor’s has categorized loans governed by anti-predatory lending laws in the Jurisdictions listed below into three categories based upon a combination of factors that include (a) the risk exposure associated with the assignee liability and (b) the tests and thresholds set forth in those laws. Note that certain loans classified by the relevant statute as Covered are included in Standard & Poor’s High Cost Loan Category because they included thresholds and tests that are typical of what is generally considered High Cost by the industry. 

 

	
            Standard  & Poor’s High Cost Loan Categorization

 
  
	
            State/Jurisdiction
  	
            Name of  Anti-Predatory Lending Law/Effective Date
  	
            Category under  Applicable Anti-Predatory Lending Law
  
	
            Arkansas
 	
            Arkansas Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

Effective July 16, 2003
 	
            High Cost Home Loan
 
	
            Cleveland Heights, OH
 	
            Ordinance No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

Effective June 2, 2003 
 	
            Covered Loan
 
	
            Colorado
 	
            Consumer Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

Effective for covered loans offered or entered into on or after January 1, 2003. Other provisions of the Act took effect on June 7, 2002
 	
            Covered Loan
 
	
            Connecticut
 	
            Connecticut Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746 et seq. 

Effective October 1, 2001
 	
            High Cost Home Loan
 
	
            District of Columbia
 	
            Home Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

Effective for loans closed on or after January 28, 2003
 	
            Covered Loan
 

 

 

 

 

	
            Florida
 	
            Fair Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

Effective October 2, 2002
 	
            High Cost Home Loan
 
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003
 	
            High Cost Home Loan
 
	
            Georgia as amended (Mar. 7, 2003 – current)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective for loans closed on or after March 7, 2003
 	
            High Cost Home Loan
 
	
            HOEPA Section 32
 	
            Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R. §§ 226.32 and 226.34

Effective October 1, 1995, amendments October 1, 2002
 	
            High Cost Loan
 
	
            Illinois
 	
            High Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

Effective January 1, 2004 (prior to this date, regulations under Residential Mortgage License Act effective from May 14, 2001)
 	
            High Risk Home Loan 
 
	
            Indiana
 	
            Indiana Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1 et seq. 

Effective for loans originated on or after January 1, 2005.
 	
            High Cost Home Loan
 
	
            Kansas
 	
            Consumer Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.

Sections 16a-1-301 and 16a-3-207 became effective April 14, 1999; Section 16a-3-308a became effective July 1, 1999 
 	
            High Loan to Value Consumer Loan (id. § 16a-3-207) and;
 
	
            High APR Consumer Loan (id. § 16a-3-308a)
 

 

 

 

 

	
            Kentucky
 	
            2003 KY H.B. 287 – High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100 et seq.

Effective June 24, 2003
 	
            High Cost Home Loan
 
	
            Maine
 	
            Truth in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

Effective September 29, 1995 and as amended from time to time
 	
            High Rate High Fee Mortgage
 
	
            Massachusetts
 	
            Part 40 and Part 32, 209 C.M.R. §§ 32.00 et seq. and 209 C.M.R. §§ 40.01 et seq.

Effective March 22, 2001 and amended from time to time
 	
            High Cost Home Loan
 
	
             
 	
            Massachusetts Predatory Home Loan Practices Act

Mass. Gen. Laws ch. 183C,  §§ 1 et seq.

Effective November 7, 2004
 	
            High Cost Home Mortgage Loan
 
	
            Nevada
 	
            Assembly Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.

Effective October 1, 2003
 	
            Home Loan
 
	
            New Jersey
 	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective for loans closed on or after November 27, 2003
 	
            High Cost Home Loan
 
	
            New Mexico
 	
            Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

Effective as of January 1, 2004; Revised as of February 26, 2004
 	
            High Cost Home Loan
 
	
            New York
 	
            N.Y. Banking Law Article 6-l

Effective for applications made on or after April 1, 2003
 	
            High Cost Home Loan
 
	
            North Carolina
 	
            Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.

Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)
 	
            High Cost Home Loan
 

 

 

 

 

	
            Ohio
 	
            H.B. 386 (codified in various sections of the Ohio Code), Ohio Rev. Code Ann. §§ 1349.25 et seq.

Effective May 24, 2002
 	
            Covered Loan
 
	
            Oklahoma
 	
            Consumer Credit Code (codified in various sections of Title 14A)

Effective July 1, 2000; amended effective January 1, 2004
 	
            Subsection 10 Mortgage
 
	
            South Carolina
 	
            South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004
 	
            High Cost Home Loan
 
	
            West Virginia 
 	
            West Virginia Residential Mortgage Lender, Broker and Servicer Act, W. Va. Code Ann. §§ 31-17-1 et seq.

Effective June 5, 2002
 	
            West Virginia Mortgage Loan Act Loan
 

 

Standard & Poor’s Covered Loan Categorization

 

	
            State/Jurisdiction
 	
            Name of Anti-Predatory Lending Law/Effective Date
 	
            Category under Applicable Anti-Predatory Lending Law
 
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003
 	
            Covered Loan
 
	
            New Jersey
 	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective November 27, 2003 – July 5, 2004
 	
            Covered Home Loan
 

 

	
            Standard  & Poor’s Home Loan Categorization

 
  

 

 

 

 

	
            State/Jurisdiction
  	
            Name of  Anti-Predatory Lending Law/Effective Date
  	
            Category under  Applicable Anti-Predatory Lending Law
  
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003
 	
            Home Loan
 
	
            New Jersey
 	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective for loans closed on or after November 27, 2003
 	
            Home Loan
 
	
            New Mexico
 	
            Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

Effective as of January 1, 2004; Revised as of February 26, 2004
 	
            Home Loan
 
	
            North Carolina
 	
            Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.

Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)
 	
            Consumer Home Loan
 
	
            South Carolina
 	
            South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004
 	
            Consumer Home Loan
 

 

	
            (i).
	
            

 

 

SCHEDULE A

REQUIRED RATINGS FOR EACH CLASS OF CERTIFICATES

Public Certificates

 

	
            
Class
 
 	
            
S&P
 
 	
            
Moody’s
 
 
	
            I-A-1
 	
            AAA
 	
            Aaa
 
	
            I-A-2
 	
            AAA
 	
            Aaa
 
	
            I-A-3
 	
            AAA
 	
            Aaa
 
	
            II-A-1
 	
            AAA
 	
            Aaa
 
	
            II-A-2
 	
            AAA
 	
            Aaa
 
	
            III-A-1
 	
            AAA
 	
            Aaa
 
	
            III-A-2
 	
            AAA
 	
            Aaa
 
	
            IV-A-1
 	
            AAA
 	
            Aaa
 
	
            IV-A-2
 	
            AAA
 	
            Aaa
 
	
            M-1
 	
            AA
 	
            Aa2
 
	
            M-2
 	
            A
 	
            A2
 
	
            M-3
 	
            A-
 	
            A3
 
	
            M-4
 	
            BBB+
 	
            Baa1
 
	
            M-5
 	
            BBB
 	
            Baa2
 
	
            M-6
 	
            BBB-
 	
            Baa3
 

 

None of the above ratings has been lowered, qualified or withdrawn since the dates of issuance of such ratings by the Rating Agencies.

Private Certificates

 

	
            
Class
 
 	
            
S&P
 
 	
            
Moody’s
 
 
	
            M-7
 	
            BB+
 	
            Ba1
 
	
            M-8
 	
            BB
 	
            Ba2
 
	
            CE
 	
            Not Rated
 	
            Not Rated
 
	
            P
 	
            Not Rated
 	
            Not Rated
 
	
            R-1
 	
            Not Rated
 	
            Not Rated
 
	
            R-2
 	
            Not Rated
 	
            Not Rated
 
	
            R-3
 	
            Not Rated
 	
            Not Rated
 
	
            RX
 	
            Not Rated
 	
            Not Rated
 

 

 

EXHIBIT M

 

SWAP AGREEMENT 

 

	
            DATE:
 	
            April 29, 2005
 

 

	
            TO:
 	
            LaSalle Bank National Association, not individually, but solely
 

as Swap Administrator under the Swap Administration Agreement (each as defined herein)  (“Counterparty”)

	
            Phone #: (312) 904-6299
 
	
            Fax #: (312) 904-1368
 	
             

 

	
            ATTN:
 	
            Global Securitization Trust Services Group
 

 

	
            FROM:
 	
            The Bank of New York (“BNY”)
 	
             

	
             
	
            Derivative Products Support Department
 
	
             
	
            32 Old Slip, 16th Floor
 	
             

	
             
	
            New York, New York 10286
 	
             

	
             
	
            Attn:  Kenny Au-Yeung
 	
             

	
             
	
            Phone #: 212-804-5103
 	
             

	
             
	
            Fax #:  212-804-5818/5837
 	
             

								

 

	
            RE:
 	
            Transaction Reference Number: 35750
 

 

The purpose of this letter agreement ("Agreement") is to confirm the terms and conditions of the current Transaction entered into on the Trade Date specified below (the "Transaction") between The Bank of New York ("BNY") and LaSalle Bank National Association, not individually, but solely as Swap Administrator under the Swap Administration Agreement dated as of April 29, 2005 (the “Swap Administration Agreement”), among LaSalle Bank National Association (“LaSalle”), as swap administrator (in such capacity, the “Swap Administrator”), LaSalle Bank National Association, as trustee for Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset Backed Certificates, Series 2005-HE4 (in such capacity, the “Trustee”), and LaSalle Bank National Association, as indenture trustee for CMO Holdings II Ltd., Series BSABS HE4 NIM Trust 2005-4 Notes (in such capacity, the
“Indenture Trustee”) ("Counterparty").  This Agreement, which evidences a complete and binding agreement between you and us to enter into the Transaction on the terms set forth below, constitutes a "Confirmation" as referred to in the "ISDA Form Master Agreement" (as defined below), as well as a “Schedule” as referred to in the ISDA Form Master Agreement.

 

1.          This Agreement is subject to the 2000 ISDA Definitions (the “Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  You and we have agreed to enter into this Agreement in lieu of negotiating a Schedule to the 1992 ISDA Master Agreement (Multicurrency—Cross Border) form (the "ISDA Form Master Agreement") but, rather, an ISDA Form Master Agreement shall be deemed to have been executed by you and us on the date we entered into the Transaction. Terms capitalized but not defined herein except in the Definitions shall have the respective meanings attributed to them in the Swap Administration Agreement or, if not defined therein, in the Pooling and
Servicing Agreement, dated as of April 1, 2005, among Bear Stearns Asset Backed Securities I LLC (Depositor), EMC Mortgage Corporation (Seller and 

 

 

Master Servicer) and LaSalle Bank National Association (Trustee) (the “Pooling and Servicing Agreement”). In the event of any inconsistency between the provisions of this Agreement and the Definitions or the ISDA Form Master Agreement, this Agreement shall prevail for purposes of the Transaction.  Each reference to a “Section” (unless specifically referencing the Pooling and Servicing Agreement or the Swap Administration Agreement) or to a “Section” “of this Agreement” will be construed as a reference to a Section of the ISDA Form Master Agreement.

	
            2.
 	
            The terms of the particular Transaction to which this Confirmation relates are as follows:
 

 

	
            Notional Amount:
 	
            With respect to any Calculation Period, the amount set forth for such period on Schedule I attached hereto.
 

 

	
            Trade Date:
 	
            April 7, 2005
 

 

	
            Effective Date:
 	
            April 29, 2005
 

 

	
            Termination Date
 	
            April 25, 2010, subject to adjustment in accordance with the Following Business Day Convention.
 

 

Fixed Amount:

 

	
            Fixed Rate Payer:
 	
            Counterparty
 

 

Fixed Rate Payer  

	
            Period End Dates:
 	
            The 25th calendar day of each month during the Term of this Transaction, commencing May 25, 2005 and ending on the Termination Date, subject to adjustment in accordance with the Following Business Day Convention with No Adjustment.
 

 

Fixed Rate Payer

	
            Payment Dates:
 	
            Early Payment shall be applicable. The Fixed Rate Payer Payment Date shall be one (1) Business Days preceding each Floating Rate Payer Period End Date.
 

 

	
            Fixed Rate:
 	
            4.108%
 

 

	
            Fixed Amount:
 	
            To be determined in accordance with the following formula: 
 

 

100 * Fixed Rate * Notional Amount * Fixed Rate Day Count Fraction.

Fixed Rate Day 

	
            Count Fraction:
 	
            30/360
 

 

 

 

 

 

	
            Floating Amounts:
 

 

	
            Floating Rate Payer:
 	
            BNY
 

 

Floating Rate Payer  

	
            Period End Dates:
 	
            The 25th calendar day of each month during the Term of this Transaction, commencing May 25, 2005 and ending on the Termination Date, subject to adjustment in accordance with the Following Business Day Convention
 

 

 

Floating Rate Payer 

	
            Payment Dates:
 	
            Early Payment shall be applicable. The Floating Rate Payer Payment Date shall be one (1) Business Days preceding each Floating Rate Payer Period End Date.
 

 

	
            Floating Rate Option:
 	
            USD-LIBOR-BBA
 

 

	
            Floating Amount:
 	
            To be determined in accordance with the following formula: 
 

 

100 * Floating Rate Option * Notional Amount * Floating Rate Day Count Fraction        

	
            Designated Maturity:
 	
            One month
 

 

Floating Rate Day 

	
            Count Fraction:
 	
            Actual/360
 

 

	
            Reset Dates:
 	
            The first day of each Calculation  Period.
 

 

	
            Compounding:
 	
            Inapplicable
 

 

	
            Business Days:
 	
            New York and Illinois
 

 

	
            Calculation Agent:
 	
            BNY
 

 

	
            Additional Fee:
 	
            Counterparty shall pay BNY USD 13,000.00 on April 29, 2005
 

 

 

	
            3.
 	
            Additional Provisions:
 

 

1) Each party hereto is hereby advised and acknowledges that the other party has engaged in (or refrained from engaging in) substantial financial transactions and has taken (or refrained from taking) other material actions in reliance upon the entry by the parties into the Transaction being entered into on the terms and conditions set forth herein and in the Pooling and Servicing 

 

 

Agreement relating to such Transaction, as applicable.  This paragraph 1) shall be deemed repeated on the trade date of each Transaction. 

 

	
            4.
 	
            Provisions Deemed Incorporated in a Schedule to the Master Agreement:
 

 

	
            1)
 	
            The parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form Master Agreement will apply to any Transaction.
 

 

2)  Termination Provisions. For purposes of the Master Agreement:

 

	
            (a)
 	
            "Specified Entity" is not applicable to BNY or Counterparty for any purpose.
 

 

(b)        "Specified Transaction" is not applicable to BNY or Counterparty for any purpose, and, accordingly, Section 5(a)(v) shall not apply to BNY or Counterparty.

 

(c)        The "Cross Default" provisions of Section 5(a)(vi) will not apply to BNY or to  Counterparty.  

 

(d)        The "Credit Event Upon Merger" provisions of Section 5(b)(iv) will not apply to BNY or Counterparty.

 

(e)        With respect to Counterparty, “Bankruptcy Provisions” of Section 5(a) (vii) (2) shall be deleted in its entirety. 

 

(f)         The "Automatic Early Termination" provision of Section 6(a) will not apply to BNY or to Counterparty.

 

	
            (g)
 	
            Payments on Early Termination.  For the purpose of Section 6(e) of this Agreement:
 

 

	
            (i)
 	
            Market Quotation will apply.
 

 

	
            (ii)
 	
            the Second Method will apply.
 

 

	
            (h)
 	
            "Termination Currency" means United States Dollars.
 

 

	
            (i)
 	
            Tax Event. The provisions of Section 2(d)(i)(4) and 2(d)(ii) of the printed ISDA Form Master Agreement shall not apply to Counterparty and Counterparty shall not be required to pay any additional amounts referred to therein. 
 

3) Tax Representations. 

 

(a) Payer Representations.  For the purpose of Section 3(e) of this Agreement, each of BNY and the Counterparty will make the following representations:

It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or 

 

 

withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement.  In making this representation, it may rely on: 

(i)                the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement;

 

(ii)               the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or  4(a)(iii) of this Agreement; and

 

(iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 

 

(b) Payee Representations. For the purpose of Section 3(f) of this Agreement, each of BNY and the Counterparty make the following representations. 

	
            The following representation will apply to BNY:
 

 

BNY is a trust company duly organized and existing under the laws of the State of New York and its U.S. taxpayer identification number is 135160382. 

 

The following representation will apply to the Counterparty: 

 

Pursuant to the Indenture, Counterparty represents that the beneficial owner of the payments made to it under this Agreement, is a "non-U.S. branch of a foreign person" as that term is used in section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations (the "Regulations") for United States federal income tax purposes, and is a "foreign person" as that term is used in section 1.6041-4(a)(4) of the Regulations for United States federal income tax purposes.

 

4) The ISDA Form Master Agreement is hereby amended as follows:

 

The word “third” shall be replaced by the word “second” in the third line of Section 5(a)(i) of the ISDA Form Master Agreement.

 

5) Documents to be Delivered. For the purpose of Section 4(a):

 

	
            (1)
 	
            Tax forms, documents, or certificates to be delivered are:
 

 

 

 

 

	
            Party required to deliver document
 	
            Form/Document/

Certificate
 	
            Date by which to

be delivered
 
	
            BNY and

the Counterparty
 	
            Any document required or reasonably requested to allow the other party to make payments under this Agreement without any deduction or withholding for or on the account of any Tax or with such deduction or withholding at a reduced rate
 	
            Promptly after the earlier of (i) reasonable demand by either party or (ii) learning that such form or document is required
 

                

	
            (2)
 	
            Other documents to be delivered are:
 

 

	
            Party required to deliver document
  	
            Form/Document/

Certificate
  	
            Date by which to

be delivered
  	
            Covered by Section 3(d)  Representation
  
	
            BNY and

the Counterparty
 	
            Any documents required by the receiving party to evidence the authority of the delivering party or its Credit Support Provider, if any, for it to execute and deliver this Agreement, any Confirmation , and any Credit Support Documents to which it is a party, and to evidence the authority of the delivering party or its Credit Support Provider to perform its obligations under this Agreement, such Confirmation and/or Credit Support Document, as the case may be
 	
            Upon the execution and delivery of this Agreement and such Confirmation
 	
            Yes
 

 

 

 

 

	
            BNY and

the Counterparty
 	
            A certificate of an authorized officer of the party, as to the incumbency and authority of the respective officers of the party signing this Agreement, any relevant Credit Support Document, or any  Confirmation, as the case may be
 	
            Upon the execution and delivery of this Agreement and such Confirmation
 	
            Yes
 
	
            BNY and

the Counterparty
 	
            An opinion of counsel with respect to the due authorization, execution and enforceability of this Agreement, acceptable to the other party hereto.
 	
            Upon the execution and delivery of this Agreement and such Confirmation
 	
            Yes
 

 

	
            BNY
 	
            A copy of the most recent publicly available regulatory call report

 
 	
            Promptly after request by the other party
 	
            Yes
 

6)  Miscellaneous. Miscellaneous

 

	
            (a)
 	
            Address for Notices:  For the purposes of Section 12(a) of this Agreement:
 

 

	
            Address for notices or communications to BNY:
 

 

	
            Address:
 	
            The Bank of New York
 	
             

	
             
	
            Swaps and Derivatives Products Group
 
	
             
	
            Treasury Division
 	
             

	
             
	
            32 Old Slip, 15th Floor
 	
             

	
             
	
            New York, New York 10286
 	
             

	
             
	
            Attention: Stephen M. Lawler
 	
             

							

 

 

	
            Facsimile:
 	
            212-495-1015
 
	
            Phone:
 	
            212-804-2137
 

 

 

 

	
            (For all purposes)
 

 

 

 

 

	
            Address for notices or communications to the Counterparty:
 

 

	
            Address:
 	
            LaSalle Bank National Association
 	
             

	
             
	
            135 South LaSalle Street, Suite 1625
 
	
             
	
            Chicago, IL 60603
 	
             

				

	
            Attention:
 	
            Global Securitization Trust Services Group-Bear Stearns Asset Backed Securities I Trust 2005-HE4
 

	
            Facsimile:
 	
            (312) 904-1368
 
	
            Phone:
 	
            (312) 904-6299
 

 

(For all purposes)

 

	
            (b)
 	
            Process Agent.  For the purpose of Section 13(c):
 

 

	
            BNY appoints as its
 	
             

	
            Process Agent:
 	
            Not Applicable
 
			

 

	
            The Counterparty appoints as its
 	
             

	
            Process Agent:
 	
            Not Applicable
 
			

 

	
            (c)
 	
            Offices. The provisions of Section 10(a) will not apply to this Agreement; neither BNY nor the Counterparty have any Offices other than as set forth in the Notices Section and BNY agrees that, for purposes of Section 6(b) of this Agreement, it shall not in future have any Office other than one in the United States.
 

 

	
            (d)
 	
            Multibranch Party.  For the purpose of Section 10(c) of this Agreement:
 

 

	
            BNY is not a Multibranch Party.
 

 

The Counterparty is not a Multibranch Party.

 

	
            (e)
 	
            Credit Support Document.  Not applicable for either BNY or the Counterparty.
 

 

	
            (f)
 	
            Credit Support Provider.
 

 

	
            BNY:
 	
            Not Applicable
 

 

	
            The Counterparty:
 	
            Not Applicable
 

 

	
            (g)
 	
            Governing Law.                The parties to this Agreement hereby agree that the law of the State of New York shall govern their rights and duties in whole, without regard to the conflict of law provisions thereof other than New York General Obligations Law Sections 5-1401 and 5-1402. 
 

 

 

 

 (h)       Severability.      If any term, provision, covenant, or condition of this Agreement, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants, and conditions hereof shall continue in full force and effect as if this Agreement had been executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Agreement and the deletion of such portion of this Agreement will not substantially impair the respective benefits or expectations of the parties. 

 

The parties shall endeavor to engage in good faith negotiations to replace any invalid or unenforceable term, provision, covenant or condition with a valid or enforceable term, provision, covenant or condition, the economic effect of which comes as close as possible to that of the invalid or unenforceable term, provision, covenant or condition. 

 

(i)         Consent to Recording. Each party hereto consents to the monitoring or recording, at any time and from time to time, by the other party of any and all communications between officers or employees of the parties, waives any further notice of such monitoring or recording, and agrees to notify its officers and employees of such monitoring or recording. 

 

(j)         Waiver of Jury Trial.    Each party waives any right it may have to a trial by jury in respect of any Proceedings relating to this Agreement or any Credit Support Document. 

 

(k)        Set-Off.   The provisions for Set-off set forth in Section 6(e) of the ISDA Form Master Agreement shall not apply for purposes of this Transaction.  Notwithstanding any provision of this Agreement or any other existing or future agreement, each party irrevocably waives any and all rights it may have to set off, net, recoup or otherwise withhold or suspend or condition payment or performance of any obligation between it and the other party hereunder against any obligation between it and the other party under any other agreements. 

(l)         This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

	
            (m)
 	
            Additional Definitional Provisions.
 

As used in this Agreement, the following terms shall have the meanings set forth below, unless the context clearly requires otherwise: 

“Moody’s” means Moody’s Investors Service, Inc., or any successor.

“S&P” means Standard & Poor's Ratings Services, or any successor.

 (n)       Swap Administrator Liability Limitations.  It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered by LaSalle Bank National Association   (“LaSalle”), not individually or personally but solely as Swap Administrator, (b) each of the representations, undertakings and agreements herein made on the part of the Counterparty is made and intended not as personal representations, undertakings and agreements 

 

 

by LaSalle but is made and intended for the purpose of binding only the Counterparty, (c) nothing herein contained shall be construed as creating any liability on LaSalle, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto; provided that nothing in this paragraph shall relieve LaSalle from performing its duties and obligations under the Swap Administration Agreement in accordance with the standard of care set forth therein, and (d) under no circumstances shall LaSalle be personally liable for the payment of any indebtedness or expenses of the Counterparty or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Counterparty under this Agreement or any other
related documents.  Any resignation or removal of LaSalle as Swap Administrator under the Swap Administration Agreement shall require the assignment of this agreement to LaSalle’s replacement.

 

(o)        Additional Provisions.  The provisions of Sections 5(a)(ii), 5(a)(iii) and 5(a)(iv) shall not apply to BNY or Counterparty.

 

7) "Affiliate": BNY and Counterparty shall be deemed to not have any Affiliates for purposes of this Agreement, including for purposes of Section 6(b)(ii).

 

8) Additional Termination Events.  Additional Termination Events will apply: 

 

(a) If a Rating Agency Downgrade has occurred and BNY has not, within 30 days, complied with Section 9 below, then an Additional Termination Event shall have occurred with respect to BNY and BNY shall be the sole Affected Party with respect to such an Additional Termination Event.  

 

(b) If the Trustee is unable to pay its Class I-A, II-A, III-A or IV-A Certificates or fails or admits in writing its inability to pay its Class I-A, II-A, III-A or IV-A Certificates as they become due, then an Additional Termination Event shall have occurred with respect to Counterparty and Counterparty shall be the sole Affected Party with respect to such Additional Termination Event. 

 

(c) If (i) the Majority Class CE Certificate holder or the Master Servicer gives notice pursuant to Section 10.02 of the Pooling and Servicing Agreement to BNY or the Trustee of its intent to terminate the Trust Fund under Section 10.01(a) of the Pooling and Servicing Agreement, (ii) a final distribution notice is given to BNY or to the Certificate holders under Section 10.02(i) of the Pooling and Servicing or (iii) any other notice of early termination of the Pooling and Servicing Agreement or a final distribution thereunder is provided to the Trustee, the Certificate holders or BNY, then an Additional Termination Event shall have occurred and Counterparty shall be the sole Affected Party with respect thereto.

 

9) Rating Agency Downgrade.  In the event that BNY’s short-term unsecured and unsubordinated debt rating is withdrawn or reduced below “A-1” by S&P or its long-term unsecured and unsubordinated debt rating is withdrawn or reduced below “Aa3” by Moody’s (and together with S&P, the “Swap Rating Agencies”, and such rating thresholds, “Approved Rating Thresholds”), then within 30 days after such rating withdrawal or downgrade (unless, within 30 days after such withdrawal or downgrade, each such Swap Rating Agency, as applicable, has reconfirmed the 

 

 

rating of the Bear Stearns Asset Backed Securities I Trust 2005-HE4, Asset Backed Certificates, Series 2005-HE4 (the “Certificates”) and CMO Holdings II Ltd., Series BSABS HE4 NIM TRUST 2005-4 Notes (the “Notes”), which was in effect immediately prior to such withdrawal or downgrade), BNY shall, at its own expense, subject to the Rating Agency Condition, either (i) seek another entity to replace BNY as party to this Agreement that meets or exceeds the Approved Rating Thresholds and that is approved by the Swap Administrator (which approval shall not be unreasonably withheld) on terms substantially similar to this Agreement or (ii) obtain a guaranty of, or a contingent agreement of another person with the Approved Rating Thresholds, to honor, BNY’s obligations under this Agreement; provided that such other person is approved by the Swap Administrator (in writing), such approval not
to be unreasonably withheld. BNY’s failure to do any of the foregoing shall, at the Counterparty’s option, constitute an Additional Termination Event with BNY as the Affected Party. For purposes of this provision, “Rating Agency Condition” means, with respect to any particular proposed act or omission to act hereunder that the party acting or failing to act must consult with any of the Swap Rating Agencies then providing a rating of the Certificates and Notes and receive from the Swap Rating Agencies a prior written confirmation that the proposed action or inaction would not cause a downgrade or withdrawal of the then-current rating of the Certificates and Notes.

 

10) Payment Instructions.  BNY hereby agrees that, unless notified in writing by the Counterparty of other payment instructions, any and all amounts payable by BNY to the Counterparty under this Agreement shall be paid to the Counterparty at the account specified in Section 5.

 

11)  Section 3 of the ISDA Form Master Agreement is hereby amended by adding at the end thereof the following subsection (g): 

 

	
            “(g)
 	
            Relationship Between Parties.
 

 

Each party represents to the other party on each date when it enters into a Transaction that:--

 

 (1)  Nonreliance. (i) It is not relying on any statement or representation of the other party regarding the Transaction (whether written or oral), other than the representations expressly made in this Agreement or the Confirmation in respect of that Transaction and (ii) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent it has deemed necessary, and it has made its own investment, hedging and trading decisions based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by the other party.

	
            (2) Evaluation and Understanding.
 

 

 (i)  It has the capacity to evaluate (internally or through independent professional advice) the Transaction and has made its own decision to enter into the Transaction; and

 

 (ii)  It understands the terms, conditions and risks of the Transaction and is willing and able to accept those terms and conditions and to assume those risks, financially and otherwise. 

 

 

 

 (3) Purpose.  It is entering into the Transaction for the purposes of managing its borrowings or investments, hedging its underlying assets or liabilities or in connection with a line of business. 

 

 (4) Status of Parties.  The other party is not acting as an agent, fiduciary or advisor for it in respect of the Transaction.

 

 (5)  Eligible Contract Participant.  It constitutes an “eligible contract participant” as such term is defined in Section 1(a)12 of the Commodity Exchange Act, as amended.”

 

12) Non-Recourse. Notwithstanding any provision herein or in the ISDA Form Master Agreement to the contrary, the obligations of Counterparty hereunder are limited recourse obligations of Counterparty, payable solely from the Swap Account and the proceeds thereof, in accordance with the terms of the  Pooling and Servicing Agreement and the Swap Administration Agreement. In the event that the Swap Account and proceeds thereof should be insufficient to satisfy all claims outstanding and following the realization of the Swap Account and the proceeds thereof, any claims against or obligations of Counterparty under the ISDA Form Master Agreement or any other confirmation thereunder still outstanding shall be extinguished and thereafter not revive.  The Swap Administrator shall not have liability for any failure or delay in making a payment hereunder to BNY due to any
failure or delay in receiving amounts in the Swap Account from the Trust created pursuant to the Pooling and Servicing Agreement.

 

13) Transfer, Amendment and Assignment. No transfer, amendment, waiver, supplement, assignment or other modification of this Transaction shall be permitted by either party unless (i) each of S&P and Moody’s have been provided notice of the same  (ii)  S&P and Moody’s confirm in writing (including by facsimile transmission) within five Business Days after such notice is given that they will not downgrade, qualify, withdraw or otherwise modify their then-current rating of the Certificates and (iii) S&P confirms in writing (including by facsimile transmission) within five Business Days after such notice is given that it will not downgrade, qualify, withdraw or otherwise modify its then-current rating of the Notes.

 

14) Proceedings. BNY shall not institute against or cause any other person to institute against, or join any other person in instituting against Counterparty, the Trustee, the Indenture Trustee, the trust formed pursuant to the Pooling and Servicing Agreement or CMO Holdings II Ltd. any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy or similar law for a period of one year and one day (or, if longer, the applicable preference period) following payment in full of the Certificates      

 

 

	
            5.
 	
            Account Details and
 	
             

	
             
	
            Settlement Information:
 	
            Payments to BNY:
 
				

The Bank of New York

Derivative Products Support Department 

32 Old Slip, 16th Floor

New York, New York 10286

Attention: Renee Etheart

 

 

 

	
            ABA #021000018
 	
             

	
            Account #890-0068-175
 	
             

	
            Reference: Interest Rate Caps
 
			

 

Payments to Counterparty:

Bank Name: LaSalle Bank N.A.

	
            ABA Number: 071000505
 	
             

	
            LaSalle CHGO/CTR/BNF:/ LaSalle Trust
 	
             

	
            Reference Trust Account Number: 722547.4
 
	
            Attn: Amanda Hellyer
 	
             

				

 

This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to BNY a facsimile of the fully-executed Confirmation follow by a fully executed Original to The Bank of New York, NY 32 Old Slip, 16th Floor, New York, NY 10286 Attn: Kenny Au-Yeung, Facsimile No. 212-804-5818/5837 .We are very pleased to have executed this Transaction with you and we look forward to completing other transactions with you in the near future.

 

Very truly yours,

 

THE BANK OF NEW YORK

 

 

	
            By:
 	
            _______________________________
 
	
             
	
            Name:
 	
             

	
             
	
            Title:
 	
             

				

 

 

 

Counterparty, acting through its duly authorized signatory, hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

LASALLE BANK NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS SWAP ADMINISTRATOR UNDER THE SWAP ADMINISTRATION AGREEMENT 

 

 

	
            By:
 	
            _______________________________
 
	
             
	
            Name:
 	
             

	
             
	
            Title:
 	
             

				

 

 

 

 

 

 

 

 

SCHEDULE I

(all such dates subject to adjustment in accordance with the Business Day Convention) 

 

	
            From and Including
 	
            To but excluding
 	
            Notional Amount USD 
 
	
            29-Apr-05
 	
            25-May-05
 	
            5,662,069.5458
 
	
            25-May-05
 	
            25-Jun-05
 	
            5,573,823.3816
 
	
            25-Jun-05
 	
            25-Jul-05
 	
            5,468,128.9892
 
	
            25-Jul-05
 	
            25-Aug-05
 	
            5,345,244.5482
 
	
            25-Aug-05
 	
            25-Sep-05
 	
            5,205,588.2607
 
	
            25-Sep-05
 	
            25-Oct-05
 	
            5,049,746.5246
 
	
            25-Oct-05
 	
            25-Nov-05
 	
            4,878,485.4847
 
	
            25-Nov-05
 	
            25-Dec-05
 	
            4,692,737.8072
 
	
            25-Dec-05
 	
            25-Jan-06
 	
            4,494,031.7374
 
	
            25-Jan-06
 	
            25-Feb-06
 	
            4,292,190.1864
 
	
            25-Feb-06
 	
            25-Mar-06
 	
            4,099,400.0028
 
	
            25-Mar-06
 	
            25-Apr-06
 	
            3,915,388.4023
 
	
            25-Apr-06
 	
            25-May-06
 	
            3,739,755.5712
 
	
            25-May-06
 	
            25-Jun-06
 	
            3,572,116.0311
 
	
            25-Jun-06
 	
            25-Jul-06
 	
            3,412,102.1645
 
	
            25-Jul-06
 	
            25-Aug-06
 	
            3,259,363.3857
 
	
            25-Aug-06
 	
            25-Sep-06
 	
            3,113,565.3442
 
	
            25-Sep-06
 	
            25-Oct-06
 	
            2,974,388.7078
 
	
            25-Oct-06
 	
            25-Nov-06
 	
            2,841,530.0668
 
	
            25-Nov-06
 	
            25-Dec-06
 	
            2,714,698.7849
 
	
            25-Dec-06
 	
            25-Jan-07
 	
            2,593,611.2267
 
	
            25-Jan-07
 	
            25-Feb-07
 	
            2,477,964.8556
 
	
            25-Feb-07
 	
            25-Mar-07
 	
            2,367,639.5431
 
	
            25-Mar-07
 	
            25-Apr-07
 	
            2,262,532.8370
 
	
            25-Apr-07
 	
            25-May-07
 	
            706,695.8285
 
	
            25-May-07
 	
            25-Jun-07
 	
            679,604.9667
 
	
            25-Jun-07
 	
            25-Jul-07
 	
            653,592.0482
 
	
            25-Jul-07
 	
            25-Aug-07
 	
            628,612.5800
 
	
            25-Aug-07
 	
            25-Sep-07
 	
            604,623.9669
 
	
            25-Sep-07
 	
            25-Oct-07
 	
            581,585.4285
 
	
            25-Oct-07
 	
            25-Nov-07
 	
            559,457.9182
 
	
            25-Nov-07
 	
            25-Dec-07
 	
            538,204.0495
 
	
            25-Dec-07
 	
            25-Jan-08
 	
            517,768.2209
 
	
            25-Jan-08
 	
            25-Feb-08
 	
            498,123.2857
 
	
            25-Feb-08
 	
            25-Mar-08
 	
            479,292.8648
 
	
            25-Mar-08
 	
            25-Apr-08
 	
            461,208.5974
 
	
            25-Apr-08
 	
            25-May-08
 	
            274,932.8517
 
	
            25-May-08
 	
            25-Jun-08
 	
            266,225.5550
 
	
            25-Jun-08
 	
            25-Jul-08
 	
            257,792.1472
 
	
            25-Jul-08
 	
            25-Aug-08
 	
            249,624.0565
 
	
            25-Aug-08
 	
            25-Sep-08
 	
            241,712.9794
 
	
            25-Sep-08
 	
            25-Oct-08
 	
            234,050.8706
 
	
            25-Oct-08
 	
            25-Nov-08
 	
            226,629.9359
 

 

 

 

 

	
            25-Nov-08
 	
            25-Dec-08
 	
            219,442.6242
 
	
            25-Dec-08
 	
            25-Jan-09
 	
            212,481.6196
 
	
            25-Jan-09
 	
            25-Feb-09
 	
            205,739.8348
 
	
            25-Feb-09
 	
            25-Mar-09
 	
            199,210.4028
 
	
            25-Mar-09
 	
            25-Apr-09
 	
            192,886.6720
 
	
            25-Apr-09
 	
            25-May-09
 	
            186,762.1971
 
	
            25-May-09
 	
            25-Jun-09
 	
            180,830.7343
 
	
            25-Jun-09
 	
            25-Jul-09
 	
            175,086.2354
 
	
            25-Jul-09
 	
            25-Aug-09
 	
            169,522.8397
 
	
            25-Aug-09
 	
            25-Sep-09
 	
            164,134.8700
 
	
            25-Sep-09
 	
            25-Oct-09
 	
            158,916.8266
 
	
            25-Oct-09
 	
            25-Nov-09
 	
            153,863.3812
 
	
            25-Nov-09
 	
            25-Dec-09
 	
            148,969.3717
 
	
            25-Dec-09
 	
            25-Jan-10
 	
            144,229.7973
 
	
            25-Jan-10
 	
            25-Feb-10
 	
            139,634.2586
 
	
            25-Feb-10
 	
            25-Mar-10
 	
            135,174.9467
 
	
            25-Mar-10
 	
            25-Apr-10
 	
            130,853.7842
 

 

 

 

 

 

EXHIBIT N

 

SPECIAL SERVICER DELINQUENCY TRIGGERS

 

	
             
 	
            Base
 	
            Multiple
 
	
             
 	
            60+
 	
             
 
	
             
 	
            Model 3M+ DQ+LEGAL
 	
            1.5
 
	
            1
 	
            0.06%
 	
            0.09%
 
	
            2
 	
            0.19%
 	
            0.28%
 
	
            3
 	
            0.70%
 	
            1.06%
 
	
            4
 	
            1.24%
 	
            1.86%
 
	
            5
 	
            1.81%
 	
            2.71%
 
	
            6
 	
            2.28%
 	
            3.43%
 
	
            7
 	
            2.72%
 	
            4.08%
 
	
            8
 	
            3.24%
 	
            4.85%
 
	
            9
 	
            3.68%
 	
            5.52%
 
	
            10
 	
            4.19%
 	
            6.28%
 
	
            11
 	
            4.77%
 	
            7.16%
 
	
            12
 	
            5.30%
 	
            7.95%
 
	
            13
 	
            5.94%
 	
            8.91%
 
	
            14
 	
            6.43%
 	
            9.64%
 
	
            15
 	
            7.00%
 	
            10.50%
 
	
            16
 	
            7.43%
 	
            11.14%
 
	
            17
 	
            7.85%
 	
            11.78%
 
	
            18
 	
            8.33%
 	
            12.49%
 
	
            19
 	
            8.77%
 	
            13.15%
 
	
            20
 	
            9.10%
 	
            13.65%
 
	
            21
 	
            9.57%
 	
            14.36%
 
	
            22
 	
            10.30%
 	
            15.45%
 
	
            23
 	
            11.47%
 	
            17.21%
 
	
            24
 	
            12.61%
 	
            18.92%
 
	
            25
 	
            13.43%
 	
            20.15%
 
	
            26
 	
            14.22%
 	
            21.34%
 
	
            27
 	
            14.80%
 	
            22.20%
 
	
            28
 	
            15.18%
 	
            22.77%
 
	
            29
 	
            15.59%
 	
            23.38%
 
	
            30
 	
            15.81%
 	
            23.71%
 
	
            31
 	
            16.17%
 	
            24.25%
 
	
            32
 	
            16.63%
 	
            24.94%
 
	
            33
 	
            16.85%
 	
            25.28%
 
	
            34
 	
            17.20%
 	
            25.79%
 
	
            35
 	
            17.41%
 	
            26.12%
 
	
            36
 	
            17.78%
 	
            26.67%
 
	
            37
 	
            18.19%
 	
            27.28%
 
	
            38
 	
            18.56%
 	
            27.84%
 
	
            39
 	
            18.98%
 	
            28.46%
 
	
            40
 	
            19.27%
 	
            28.91%
 
	
            41
 	
            19.49%
 	
            29.24%
 
	
            42
 	
            19.81%
 	
            29.71%
 

 

 

 

 

	
            43
 	
            20.04%
 	
            30.06%
 
	
            44
 	
            20.23%
 	
            30.34%
 
	
            45
 	
            20.52%
 	
            30.78%
 
	
            46
 	
            20.73%
 	
            31.10%
 
	
            47
 	
            20.96%
 	
            31.44%
 
	
            48
 	
            21.12%
 	
            31.68%
 
	
            49
 	
            21.31%
 	
            31.96%
 
	
            50
 	
            21.55%
 	
            32.33%
 
	
            51
 	
            21.71%
 	
            32.57%
 
	
            52
 	
            21.84%
 	
            32.76%
 
	
            53
 	
            21.99%
 	
            32.99%
 
	
            54
 	
            22.12%
 	
            33.18%
 
	
            55
 	
            22.28%
 	
            33.43%
 
	
            56
 	
            22.44%
 	
            33.67%
 
	
            57
 	
            22.60%
 	
            33.90%
 
	
            58
 	
            22.74%
 	
            34.11%
 
	
            59
 	
            22.85%
 	
            34.27%
 
	
            60
 	
            22.89%
 	
            34.33%
 
	
            61
 	
            22.93%
 	
            34.40%
 
	
            62
 	
            23.06%
 	
            34.59%
 
	
            63
 	
            23.12%
 	
            34.68%
 
	
            64
 	
            23.23%
 	
            34.84%
 
	
            65
 	
            23.21%
 	
            34.82%
 
	
            66
 	
            23.26%
 	
            34.89%
 
	
            67
 	
            23.37%
 	
            35.06%
 
	
            68
 	
            23.42%
 	
            35.13%
 
	
            69
 	
            23.51%
 	
            35.27%
 
	
            70
 	
            23.65%
 	
            35.48%
 
	
            71
 	
            23.73%
 	
            35.59%
 
	
            72
 	
            23.76%
 	
            35.64%
 
	
            73
 	
            23.82%
 	
            35.73%
 
	
            74
 	
            23.90%
 	
            35.85%
 
	
            75
 	
            24.07%
 	
            36.10%
 
	
            76
 	
            24.09%
 	
            36.14%
 
	
            77
 	
            24.20%
 	
            36.30%
 
	
            78
 	
            24.15%
 	
            36.22%
 
	
            79
 	
            24.21%
 	
            36.31%
 
	
            80
 	
            24.24%
 	
            36.36%
 
	
            81
 	
            24.20%
 	
            36.30%
 
	
            82
 	
            24.15%
 	
            36.23%
 
	
            83
 	
            24.29%
 	
            36.43%
 
	
            84
 	
            24.44%
 	
            36.66%
 
	
            85
 	
            24.36%
 	
            36.54%
 
	
            86
 	
            24.46%
 	
            36.69%
 
	
            87
 	
            24.50%
 	
            36.75%
 
	
            88
 	
            24.49%
 	
            36.73%
 
	
            89
 	
            24.45%
 	
            36.67%
 
	
            90
 	
            24.44%
 	
            36.66%
 
	
            91
 	
            24.49%
 	
            36.74%
 

 

 

 

 

	
            92
 	
            24.56%
 	
            36.84%
 
	
            93
 	
            24.65%
 	
            36.97%
 
	
            94
 	
            24.63%
 	
            36.94%
 
	
            95
 	
            24.58%
 	
            36.88%
 
	
            96
 	
            24.71%
 	
            37.07%
 
	
            97
 	
            24.79%
 	
            37.18%
 
	
            98
 	
            24.69%
 	
            37.04%
 
	
            99
 	
            24.71%
 	
            37.07%
 
	
            100
 	
            24.83%
 	
            37.25%
 
	
            101
 	
            24.86%
 	
            37.29%
 
	
            102
 	
            24.76%
 	
            37.15%
 
	
            103
 	
            24.78%
 	
            37.17%
 
	
            104
 	
            24.62%
 	
            36.93%
 
	
            105
 	
            24.61%
 	
            36.91%
 
	
            106
 	
            24.66%
 	
            36.99%
 
	
            107
 	
            24.60%
 	
            36.90%
 
	
            108
 	
            24.53%
 	
            36.79%
 
	
            109
 	
            24.58%
 	
            36.86%
 
	
            110
 	
            24.64%
 	
            36.96%
 
	
            111
 	
            24.84%
 	
            37.26%
 
	
            112
 	
            24.94%
 	
            37.42%
 
	
            113
 	
            24.84%
 	
            37.26%
 
	
            114
 	
            25.03%
 	
            37.55%
 
	
            115
 	
            25.06%
 	
            37.60%
 
	
            116
 	
            25.18%
 	
            37.76%
 
	
            117
 	
            25.26%
 	
            37.90%
 
	
            118
 	
            25.28%
 	
            37.92%
 
	
            119
 	
            25.46%
 	
            38.18%
 
	
            120
 	
            25.38%
 	
            38.07%
 
	
            121
 	
            25.48%
 	
            38.23%
 
	
            122
 	
            25.38%
 	
            38.07%
 
	
            123
 	
            25.60%
 	
            38.40%
 
	
            124
 	
            25.68%
 	
            38.51%
 
	
            125
 	
            25.76%
 	
            38.64%
 
	
            126
 	
            25.69%
 	
            38.53%
 
	
            127
 	
            25.80%
 	
            38.70%
 
	
            128
 	
            25.88%
 	
            38.82%
 
	
            129
 	
            25.88%
 	
            38.82%
 
	
            130
 	
            26.06%
 	
            39.09%
 
	
            131
 	
            26.15%
 	
            39.23%
 
	
            132
 	
            26.16%
 	
            39.25%
 
	
            133
 	
            26.08%
 	
            39.13%
 
	
            134
 	
            26.18%
 	
            39.27%
 
	
            135
 	
            26.46%
 	
            39.69%
 
	
            136
 	
            26.49%
 	
            39.73%
 
	
            137
 	
            26.65%
 	
            39.98%
 
	
            138
 	
            27.05%
 	
            40.57%
 
	
            139
 	
            27.15%
 	
            40.73%
 
	
            140
 	
            27.23%
 	
            40.85%
 

 

 

 

 

	
            141
 	
            27.33%
 	
            40.99%
 
	
            142
 	
            27.24%
 	
            40.86%
 
	
            143
 	
            27.30%
 	
            40.95%
 
	
            144
 	
            27.44%
 	
            41.16%
 
	
            145
 	
            27.61%
 	
            41.42%
 
	
            146
 	
            27.66%
 	
            41.49%
 
	
            147
 	
            27.71%
 	
            41.57%
 
	
            148
 	
            28.14%
 	
            42.21%
 
	
            149
 	
            28.21%
 	
            42.32%
 
	
            150
 	
            28.53%
 	
            42.79%
 
	
            151
 	
            28.53%
 	
            42.80%
 
	
            152
 	
            28.74%
 	
            43.11%
 
	
            153
 	
            28.71%
 	
            43.06%
 
	
            154
 	
            29.11%
 	
            43.66%
 
	
            155
 	
            29.36%
 	
            44.04%
 
	
            156
 	
            29.49%
 	
            44.23%
 
	
            157
 	
            29.73%
 	
            44.59%
 
	
            158
 	
            29.92%
 	
            44.88%
 
	
            159
 	
            29.87%
 	
            44.81%
 
	
            160
 	
            30.25%
 	
            45.37%
 
	
            161
 	
            30.51%
 	
            45.76%
 
	
            162
 	
            30.76%
 	
            46.14%
 
	
            163
 	
            30.96%
 	
            46.44%
 
	
            164
 	
            31.06%
 	
            46.59%
 
	
            165
 	
            31.15%
 	
            46.72%
 
	
            166
 	
            31.14%
 	
            46.70%
 
	
            167
 	
            31.38%
 	
            47.06%
 
	
            168
 	
            31.60%
 	
            47.40%
 
	
            169
 	
            31.71%
 	
            47.56%
 
	
            170
 	
            32.00%
 	
            48.00%
 
	
            171
 	
            32.42%
 	
            48.63%
 
	
            172
 	
            32.49%
 	
            48.74%
 
	
            173
 	
            32.91%
 	
            49.36%
 
	
            174
 	
            33.25%
 	
            49.88%
 
	
            175
 	
            33.26%
 	
            49.90%
 
	
            176
 	
            33.74%
 	
            50.61%
 
	
            177
 	
            34.03%
 	
            51.05%
 
	
            178
 	
            34.28%
 	
            51.42%
 
	
            179
 	
            34.27%
 	
            51.41%
 
	
            180
 	
            34.59%
 	
            51.88%
 
	
            181
 	
            34.80%
 	
            52.21%
 
	
            182
 	
            35.18%
 	
            52.76%
 
	
            183
 	
            35.26%
 	
            52.89%
 
	
            184
 	
            35.54%
 	
            53.31%
 
	
            185
 	
            35.91%
 	
            53.87%
 
	
            186
 	
            35.93%
 	
            53.89%
 
	
            187
 	
            36.48%
 	
            54.72%
 
	
            188
 	
            36.59%
 	
            54.88%
 
	
            189
 	
            36.90%
 	
            55.35%
 

 

 

 

 

	
            190
 	
            37.37%
 	
            56.06%
 
	
            191
 	
            37.54%
 	
            56.31%
 
	
            192
 	
            37.49%
 	
            56.23%
 
	
            193
 	
            37.88%
 	
            56.81%
 
	
            194
 	
            37.97%
 	
            56.95%
 
	
            195
 	
            38.18%
 	
            57.26%
 
	
            196
 	
            38.82%
 	
            58.24%
 
	
            197
 	
            39.45%
 	
            59.17%
 
	
            198
 	
            39.51%
 	
            59.27%
 
	
            199
 	
            39.34%
 	
            59.00%
 
	
            200
 	
            39.82%
 	
            59.74%
 
	
            201
 	
            40.49%
 	
            60.73%
 
	
            202
 	
            40.84%
 	
            61.26%
 
	
            203
 	
            40.99%
 	
            61.49%
 
	
            204
 	
            41.08%
 	
            61.62%
 
	
            205
 	
            41.32%
 	
            61.98%
 
	
            206
 	
            41.74%
 	
            62.61%
 
	
            207
 	
            42.17%
 	
            63.26%
 
	
            208
 	
            42.32%
 	
            63.47%
 
	
            209
 	
            42.74%
 	
            64.11%
 
	
            210
 	
            43.39%
 	
            65.09%
 
	
            211
 	
            43.73%
 	
            65.59%
 
	
            212
 	
            44.34%
 	
            66.51%
 
	
            213
 	
            44.58%
 	
            66.87%
 
	
            214
 	
            45.08%
 	
            67.62%
 
	
            215
 	
            44.48%
 	
            66.72%
 
	
            216
 	
            45.39%
 	
            68.08%
 
	
            217
 	
            45.93%
 	
            68.90%
 
	
            218
 	
            46.64%
 	
            69.97%
 
	
            219
 	
            46.23%
 	
            69.34%
 
	
            220
 	
            46.46%
 	
            69.68%
 
	
            221
 	
            47.21%
 	
            70.82%
 
	
            222
 	
            47.55%
 	
            71.33%
 
	
            223
 	
            47.52%
 	
            71.28%
 
	
            224
 	
            48.13%
 	
            72.20%
 
	
            225
 	
            48.42%
 	
            72.63%
 
	
            226
 	
            48.41%
 	
            72.62%
 
	
            227
 	
            48.56%
 	
            72.84%
 
	
            228
 	
            49.73%
 	
            74.60%
 
	
            229
 	
            50.25%
 	
            75.37%
 
	
            230
 	
            50.38%
 	
            75.57%
 
	
            231
 	
            50.40%
 	
            75.60%
 
	
            232
 	
            51.12%
 	
            76.68%
 
	
            233
 	
            51.71%
 	
            77.57%
 
	
            234
 	
            52.23%
 	
            78.35%
 
	
            235
 	
            53.15%
 	
            79.72%
 
	
            236
 	
            53.19%
 	
            79.79%
 
	
            237
 	
            53.29%
 	
            79.94%
 
	
            238
 	
            53.74%
 	
            80.61%
 

 

 

 

 

	
            239
 	
            54.32%
 	
            81.48%
 
	
            240
 	
            54.24%
 	
            81.36%
 
	
            241
 	
            54.53%
 	
            81.79%
 
	
            242
 	
            54.84%
 	
            82.26%
 
	
            243
 	
            54.88%
 	
            82.32%
 
	
            244
 	
            56.05%
 	
            84.08%
 
	
            245
 	
            56.33%
 	
            84.49%
 
	
            246
 	
            56.45%
 	
            84.68%
 
	
            247
 	
            57.91%
 	
            86.87%
 
	
            248
 	
            57.43%
 	
            86.15%
 
	
            249
 	
            57.53%
 	
            86.30%
 
	
            250
 	
            58.60%
 	
            87.89%
 
	
            251
 	
            59.09%
 	
            88.64%
 
	
            252
 	
            59.10%
 	
            88.65%
 
	
            253
 	
            59.54%
 	
            89.31%
 
	
            254
 	
            59.86%
 	
            89.80%
 
	
            255
 	
            59.56%
 	
            89.33%
 
	
            256
 	
            60.19%
 	
            90.28%
 
	
            257
 	
            60.29%
 	
            90.43%
 
	
            258
 	
            60.91%
 	
            91.36%
 
	
            259
 	
            60.60%
 	
            90.90%
 
	
            260
 	
            60.76%
 	
            91.13%
 
	
            261
 	
            61.99%
 	
            92.98%
 
	
            262
 	
            62.41%
 	
            93.62%
 
	
            263
 	
            62.78%
 	
            94.17%
 
	
            264
 	
            62.69%
 	
            94.03%
 
	
            265
 	
            63.38%
 	
            95.06%
 
	
            266
 	
            62.80%
 	
            94.20%
 
	
            267
 	
            63.37%
 	
            95.05%
 
	
            268
 	
            63.54%
 	
            95.31%
 
	
            269
 	
            64.40%
 	
            96.60%
 
	
            270
 	
            64.42%
 	
            96.62%
 
	
            271
 	
            64.31%
 	
            96.47%
 
	
            272
 	
            64.46%
 	
            96.69%
 
	
            273
 	
            64.65%
 	
            96.97%
 
	
            274
 	
            65.73%
 	
            98.60%
 
	
            275
 	
            66.20%
 	
            99.31%
 
	
            276
 	
            66.14%
 	
            99.22%
 
	
            277
 	
            67.05%
 	
            100.57%
 
	
            278
 	
            66.74%
 	
            100.11%
 
	
            279
 	
            67.37%
 	
            101.05%
 
	
            280
 	
            67.85%
 	
            101.77%
 
	
            281
 	
            68.22%
 	
            102.33%
 
	
            282
 	
            68.07%
 	
            102.11%
 
	
            283
 	
            68.69%
 	
            103.04%
 
	
            284
 	
            68.79%
 	
            103.19%
 
	
            285
 	
            68.72%
 	
            103.08%
 
	
            286
 	
            69.44%
 	
            104.15%
 
	
            287
 	
            69.82%
 	
            104.73%
 

 

 

 

 

	
            288
 	
            69.12%
 	
            103.67%
 
	
            289
 	
            69.56%
 	
            104.34%
 
	
            290
 	
            70.35%
 	
            105.53%
 
	
            291
 	
            70.43%
 	
            105.65%
 
	
            292
 	
            71.36%
 	
            107.05%
 
	
            293
 	
            71.65%
 	
            107.47%
 
	
            294
 	
            71.68%
 	
            107.52%
 
	
            295
 	
            71.55%
 	
            107.33%
 
	
            296
 	
            71.84%
 	
            107.76%
 
	
            297
 	
            72.15%
 	
            108.22%
 
	
            298
 	
            72.68%
 	
            109.01%
 
	
            299
 	
            73.87%
 	
            110.81%
 
	
            300
 	
            73.33%
 	
            110.00%
 
	
            301
 	
            72.47%
 	
            108.70%
 
	
            302
 	
            73.13%
 	
            109.70%
 
	
            303
 	
            73.93%
 	
            110.90%
 
	
            304
 	
            74.69%
 	
            112.04%
 
	
            305
 	
            74.71%
 	
            112.06%
 
	
            306
 	
            74.41%
 	
            111.62%
 
	
            307
 	
            74.82%
 	
            112.23%
 
	
            308
 	
            74.59%
 	
            111.88%
 
	
            309
 	
            75.09%
 	
            112.64%
 
	
            310
 	
            75.91%
 	
            113.87%
 
	
            311
 	
            76.58%
 	
            114.87%
 
	
            312
 	
            76.01%
 	
            114.02%
 
	
            313
 	
            75.87%
 	
            113.81%
 
	
            314
 	
            76.65%
 	
            114.97%
 
	
            315
 	
            77.04%
 	
            115.56%
 
	
            316
 	
            76.99%
 	
            115.49%
 
	
            317
 	
            77.29%
 	
            115.94%
 
	
            318
 	
            77.01%
 	
            115.52%
 
	
            319
 	
            77.29%
 	
            115.93%
 
	
            320
 	
            78.00%
 	
            117.00%
 
	
            321
 	
            78.13%
 	
            117.19%
 
	
            322
 	
            78.37%
 	
            117.55%
 
	
            323
 	
            78.75%
 	
            118.13%
 
	
            324
 	
            78.79%
 	
            118.18%
 
	
            325
 	
            78.96%
 	
            118.45%
 
	
            326
 	
            78.79%
 	
            118.18%
 
	
            327
 	
            78.58%
 	
            117.87%
 
	
            328
 	
            79.65%
 	
            119.48%
 
	
            329
 	
            79.47%
 	
            119.20%
 
	
            330
 	
            79.04%
 	
            118.56%
 
	
            331
 	
            79.25%
 	
            118.87%
 
	
            332
 	
            79.35%
 	
            119.02%
 
	
            333
 	
            79.59%
 	
            119.39%
 
	
            334
 	
            79.98%
 	
            119.98%
 
	
            335
 	
            79.43%
 	
            119.14%
 
	
            336
 	
            79.56%
 	
            119.34%
 

 

 

 

 

 

 

	
            337
 	
            79.65%
 	
            119.47%
 
	
            338
 	
            79.64%
 	
            119.46%
 
	
            339
 	
            79.70%
 	
            119.56%
 
	
            340
 	
            79.87%
 	
            119.80%
 
	
            341
 	
            79.24%
 	
            118.85%
 
	
            342
 	
            79.24%
 	
            118.86%
 
	
            343
 	
            79.50%
 	
            119.25%
 
	
            344
 	
            79.52%
 	
            119.28%
 
	
            345
 	
            79.83%
 	
            119.74%
 
	
            346
 	
            79.18%
 	
            118.77%
 
	
            347
 	
            78.57%
 	
            117.86%
 
	
            348
 	
            77.66%
 	
            116.49%
 
	
            349
 	
            77.08%
 	
            115.62%
 
	
            350
 	
            76.37%
 	
            114.55%
 
	
            351
 	
            75.45%
 	
            113.18%
 
	
            352
 	
            73.80%
 	
            110.71%
 
	
            353
 	
            71.25%
 	
            106.88%
 
	
            354
 	
            68.38%
 	
            102.56%
 
	
            355
 	
            63.37%
 	
            95.06%
 
	
            356
 	
            55.07%
 	
            82.61%
 
	
            357
 	
            40.72%
 	
            61.08%
 
	
            358
 	
            21.03%
 	
            31.55%
 
	
            359
 	
            1.49%
 	
            2.23%
 
	
            360
 	
            0.00%
 	
            0.00%
 
	
            361
 	
            0.00%
 	
            0.00%CWABS ASSET-BACKED CERTIFICATES TRUST 2005-BC2,

Issuer

CWABS, INC.,

Depositor

COUNTRYWIDE HOME LOANS, INC.,

Seller

PARK SIENNA LLC,

Seller

COUNTRYWIDE HOME LOANS SERVICING LP,

Master Servicer

and

THE BANK OF NEW YORK,

Trustee

______________________________________

POOLING AND SERVICING AGREEMENT

Dated as of April 1, 2005

______________________________________

ASSET-BACKED CERTIFICATES, SERIES 2005-BC2

 

 

 

Table of Contents

 

ARTICLE I

	
            DEFINITIONS
 	
             

	
             
	
            Section 1.01
 	
            Defined Terms.
 
				

ARTICLE II

CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES            

	
            Section 2.01
 	
            Conveyance of Mortgage Loans.
 	
             

	
            Section 2.02
 	
            Acceptance of the Mortgage Loans.
 

	
            Section 2.03
 	
            Representations, Warranties and Covenants of the Master Servicer and the Sellers.     
 

	
            Section 2.04
 	
            Representations and Warranties of the Depositor.
 

	
            Section 2.05
 	
            Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases.      
 

	
            Section 2.06
 	
            Authentication and Delivery of Certificates.
 
	
            Section 2.07
 	
            Covenants of the Master Servicer.
 	
             

ARTICLE III

	
            ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
 	
             

	
             
	
            Section 3.01
 	
            Master Servicer to Service Mortgage Loans.
 
				

	
            Section 3.02
 	
            Subservicing; Enforcement of the Obligations of Master Servicer.                         
 
	
            Section 3.03
 	
            Rights of the Depositor, the Sellers and the Trustee in Respect of the Master Servicer.               
 

	
            Section 3.04
 	
            Trustee to Act as Master Servicer.
 

	
            Section 3.05
 	
            Collection of Mortgage Loan Payments; Certificate Account; Distribution Account; Seller Shortfall Interest Requirement.          
 
	
            Section 3.06
 	
            Collection of Taxes, Assessments and Similar Items; Escrow Accounts.            
 
	
            Section 3.07
 	
            Access to Certain Documentation and Information Regarding the Mortgage Loans.     
 
	
            Section 3.08
 	
            Permitted Withdrawals from the Certificate Account, Distribution Account and the Carryover Reserve Fund.  
 

	
            Section 3.09
 	
            [Reserved.]
 	
             

	
            Section 3.10
 	
            Maintenance of Hazard Insurance.
 	
             

	
            Section 3.11
 	
            Enforcement of Due-On-Sale Clauses; Assumption Agreements.
 
				

	
            Section 3.12
 	
            Realization Upon Defaulted Mortgage Loans; Determination of Excess Proceeds and Realized Losses; Repurchase of Certain Mortgage Loans.
 

	
            Section 3.13
 	
            Trustee to Cooperate; Release of Mortgage Files.
 

	
            Section 3.14
 	
            Documents, Records and Funds in Possession of Master Servicer to be Held for the Trustee.
 

	
            Section 3.15
 	
            Servicing Compensation.
 	
             

	
            Section 3.16
 	
            Access to Certain Documentation.
 

 

 

 

 

	
            Section 3.17
 	
            Annual Statement as to Compliance.
 

	
            Section 3.18
 	
            Annual Independent Public Accountants’ Servicing Statement; Financial Statements.   
 

	
            Section 3.19
 	
            The Corridor Contracts.
 
	
            Section 3.20
 	
            Prepayment Charges.
 	
             

	
            Section 3.21
 	
            Credit Reporting.
 	
             

				

ARTICLE IV

	
            DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER
 
	
             
	
            Section 4.01
 	
            Advances.
 	
             

				

	
            Section 4.02
 	
            Reduction of Servicing Compensation in Connection with Prepayment Interest Shortfalls.
 

	
            Section 4.03
 	
            [Reserved].
 	
             

	
            Section 4.04
 	
            Distributions.
 	
             

	
            Section 4.05
 	
            Monthly Statements to Certificateholders.
 	
             

	
            Section 4.06
 	
            [Reserved]
 	
             

	
            Section 4.07
 	
            [Reserved]
 	
             

	
            Section 4.08
 	
            Carryover Reserve Fund.
 	
             

	
            Section 4.09
 	
            Distributions on the REMIC I Regular Interests.
 
	
            Section 4.10
 	
            [Reserved].
 	
             

							

	
            Section 4.11
 	
            Allocation of Realized Losses on the REMIC I Regular Interests.                          
 

	
            Section 4.12
 	
            The Class P Certificates.
 

ARTICLE V

	
            THE CERTIFICATES
 	
             

	
             
	
            Section 5.01
 	
            The Certificates.
 
				

	
            Section 5.02
 	
            Certificate Register; Registration of Transfer and Exchange of Certificates.       
 

	
            Section 5.03
 	
            Mutilated, Destroyed, Lost or Stolen Certificates.
 	
             

	
            Section 5.04
 	
            Persons Deemed Owners.
 	
             

	
            Section 5.05
 	
            Access to List of Certificateholders’ Names and Addresses.
 
	
            Section 5.06
 	
            Book-Entry Certificates.
 	
             

	
            Section 5.07
 	
            Notices to Depository.
 	
             

	
            Section 5.08
 	
            Definitive Certificates.
 	
             

	
            Section 5.09
 	
            Maintenance of Office or Agency.
 	
             

								

ARTICLE VI

	
            THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS
 

	
            Section 6.01
 	
            Respective Liabilities of the Depositor, the Master Servicer and the Sellers.     
 
	
            Section 6.02
 	
            Merger or Consolidation of the Depositor, the Master Servicer or the Sellers.                
 
	
            Section 6.03
 	
            Limitation on Liability of the Depositor, the Sellers, the Master Servicer and Others.   
 

	
            Section 6.04
 	
            Limitation on Resignation of Master Servicer.
 	
             

	
            Section 6.05
 	
            Errors and Omissions Insurance; Fidelity Bonds.
 

 

 

 

ARTICLE VII

	
            DEFAULT; TERMINATION OF MASTER SERVICER
 	
             

	
             
	
            Section 7.01
 	
            Events of Default.
 	
             

	
             
	
            Section 7.02
 	
            Trustee to Act; Appointment of Successor.
 
	
             
	
            Section 7.03
 	
            Notification to Certificateholders.
 	
             

						

ARTICLE VIII

	
            CONCERNING THE TRUSTEE
 	
             

	
             
	
            Section 8.01
 	
            Duties of Trustee.
 	
             

	
             
	
            Section 8.02
 	
            Certain Matters Affecting the Trustee.
 	
             

	
             
	
            Section 8.03
 	
            Trustee Not Liable for Mortgage Loans.
 	
             

	
             
	
            Section 8.04
 	
            Trustee May Own Certificates.
 	
             

	
             
	
            Section 8.05
 	
            Master Servicer to Pay Trustee’s Fees and Expenses.
 
	
             
	
            Section 8.06
 	
            Eligibility Requirements for Trustee.
 	
             

	
             
	
            Section 8.07
 	
            Resignation and Removal of Trustee.
 	
             

	
             
	
            Section 8.08
 	
            Successor Trustee.
 	
             

	
             
	
            Section 8.09
 	
            Merger or Consolidation of Trustee.
 	
             

	
             
	
            Section 8.10
 	
            Appointment of Co-Trustee or Separate Trustee.
 	
             

	
             
	
            Section 8.11
 	
            Tax Matters.
 	
             

														

ARTICLE IX

	
            TERMINATION
 

	
            Section 9.01
 	
            Termination upon Liquidation or Repurchase of all Mortgage Loans.                   
 

	
            Section 9.02
 	
            Final Distribution on the Certificates.
 	
             

	
            Section 9.03
 	
            Additional Termination Requirements.
 

ARTICLE X

	
            MISCELLANEOUS PROVISIONS
 	
             

	
             
	
            Section 10.01
 	
            Amendment.
 	
             

	
             
	
            Section 10.02
 	
            Recordation of Agreement; Counterparts.
 	
             

	
             
	
            Section 10.03
 	
            Governing Law.
 	
             

	
             
	
            Section 10.04
 	
            Intention of Parties.
 	
             

	
             
	
            Section 10.05
 	
            Notices.
 	
             

	
             
	
            Section 10.06
 	
            Severability of Provisions.
 	
             

	
             
	
            Section 10.07
 	
            Assignment.
 	
             

	
             
	
            Section 10.08
 	
            Limitation on Rights of Certificateholders.
 
	
             
	
            Section 10.09
 	
            Inspection and Audit Rights.
 	
             

	
             
	
            Section 10.10
 	
            Certificates Nonassessable and Fully Paid.
 
												

 

EXHIBITS

	
            EXHIBIT A-1
 	
            Class 1-A-1 Certificate
 
	
            EXHIBIT A-2
 	
            Class 1-A-2 Certificate
 
	
            EXHIBIT A-3
 	
            Class 2-A-1 Certificate
 
	
            EXHIBIT A-4
 	
            Class 2-A-2 Certificate
 
	
            EXHIBIT A-5
 	
            Class 2-A-3 Certificate
 

 

 

 

 

	
            EXHIBIT A-6
 	
            Class M-1 Certificate
 	
             

	
            EXHIBIT A-7
 	
            Class M-2 Certificate
 	
             

	
            EXHIBIT A-8
 	
            Class M-3 Certificate
 	
             

	
            EXHIBIT A-9
 	
            Class M-4 Certificate
 	
             

	
            EXHIBIT A-10
 	
            Class M-5 Certificate
 	
             

	
            EXHIBIT A-11
 	
            Class M-6 Certificate
 	
             

	
            EXHIBIT A-12
 	
            Class M-7 Certificate
 	
             

	
            EXHIBIT A-13
 	
            Class M-8 Certificate
 	
             

	
            EXHIBIT A-14
 	
            Class B Certificate
 	
             

	
            EXHIBIT B
 	
            Class C Certificate
 	
             

	
            EXHIBIT C
 	
            Class P Certificate
 	
             

	
            EXHIBIT D
 	
            Class A-R Certificate
 	
             

	
            EXHIBIT E
 	
            Form of Tax Matters Person Certificate
 
	
            EXHIBIT F
 	
            Mortgage Loan Schedules
 	
             

	
            EXHIBIT F-1
 	
            List of Mortgage Loans
 	
             

							

	
            EXHIBIT F-2
 	
            Mortgage Loans for which All or a Portion of a Related Mortgage File is not Delivered to the Trustee on or prior to the Closing Date
 

	
            EXHIBIT G
 	
            Forms of Certification of Trustee
 	
             

	
            EXHIBIT G-1
 	
            Form of Initial Certification of Trustee
 	
             

	
            EXHIBIT G-2
 	
            Form of Interim Certification of Trustee
 	
             

	
            EXHIBIT G-3
 	
            Form of Delay Delivery Certification
 	
             

	
            EXHIBIT G-4
 	
            [Reserved]
 	
             

	
            EXHIBIT H
 	
            Form of Final Certification of Trustee
 	
             

	
            EXHIBIT I
 	
            Transfer Affidavit
 	
             

	
            EXHIBIT J-1
 	
            Form of Transferor Certificate for Class A-R Certificates
 
	
            EXHIBIT J-2
 	
            Form of Transferor Certificate for Private Certificates
 	
             

	
            EXHIBIT K
 	
            Form of Investment Letter (Non-Rule 144A)
 	
             

	
            EXHIBIT L
 	
            Form of Rule 144A Letter
 	
             

	
            EXHIBIT M
 	
            Form of Request for Release (for Trustee)
 	
             

													

	
            EXHIBIT N
 	
            Form of Request for Release (for Mortgage Loans Paid in Full, Repurchased or Replaced)
 

	
            EXHIBIT O
 	
            Copy of Depositary Agreement
 	
             

	
            EXHIBIT P
 	
            Form of Mortgage Note and Mortgage
 	
             

	
            EXHIBIT Q
 	
            [reserved]
 	
             

	
            EXHIBIT R
 	
            Form of Corridor Contract
 	
             

	
            EXHIBIT S
 	
            Form of Corridor Contract Novation Agreement
 	
             

	
            EXHIBIT T
 	
            Form of Corridor Contract Administration Agreement
 	
             

	
            EXHIBIT U
 	
            Officer’s Certificate with Respect to Prepayments
 	
             

	
            EXHIBIT V
 	
            Standard & Poor's Anit-Predatory Lending Categorization
 
									

 

 

 

POOLING AND SERVICING AGREEMENT, dated as of April 1, 2005, by and among CWABS, INC., a Delaware corporation, as depositor (the “Depositor”), COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller (a “Seller”), PARK SIENNA LLC (“Park Sienna”), a Delaware limited liability company, as a seller (a “Seller”),COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership, as master servicer (the “Master Servicer”), and THE BANK OF NEW YORK, a New York banking corporation, as trustee (the “Trustee”).

PRELIMINARY STATEMENT:

The Depositor intends to sell mortgage asset-backed pass-through certificates (collectively, the “Certificates”), to be issued hereunder in seventeen classes, which in the aggregate will evidence the entire beneficial ownership interest in the Mortgage Loans (as defined herein). 

REMIC I

As provided herein, the Trustee will make an election to treat the segregated pool of assets consisting of the Mortgage Loans and certain other related assets (exclusive of the Corridor Contracts and the Carryover Reserve Fund) subject to this Agreement as a real estate mortgage investment conduit (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 represent the sole class of “residual interests” in REMIC I for purposes of the REMIC Provisions (as defined herein) under federal income tax law. The following table irrevocably sets forth the designation, remittance rate (the “Uncertificated REMIC I Pass-Through Rate”) and initial Uncertificated Principal Balance for each of the “regular interests” in REMIC I (the “REMIC I Regular Interests”).
The “latest possible maturity date” (determined for purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii)) for each REMIC I Regular Interest shall be the 360th Distribution Date. None of the REMIC I Regular Interests will be certificated.

	
            
Designation
 
 	
            
Uncertificated REMIC I Pass-Through Rate
 
 	
            
Uncertificated Principal Balance
 
 	
            
Latest Possible Maturity Date
 
 
	
      LT-AA
 	
      (1)
 	
      $367,500,000.00
 	
      April 25, 2035
 
	
      LT-1A1
 	
      (1)
 	
      $1,339,200.00
 	
      April 25, 2035
 
	
      LT-1A2
 	
      (1)
 	
      $334,800.00
 	
      April 25, 2035
 
	
      LT-2A1
 	
      (1)
 	
      $904,475.00
 	
      April 25, 2035
 
	
      LT-2A2
 	
      (1)
 	
      $400,700.00
 	
      April 25, 2035
 
	
      LT-2A3
 	
      (1)
 	
      $159,575.00
 	
      April 25, 2035
 
	
      LT-M1
 	
      (1)
 	
      $127,500.00
 	
      April 25, 2035
 
	
      LT-M2
 	
      (1)
 	
      $118,125.00
 	
      April 25, 2035
 
	
      LT-M3
 	
      (1)
 	
      $69,375.00
 	
      April 25, 2035
 
	
      LT-M4
 	
      (1)
 	
      $63,750.00
 	
      April 25, 2035
 
	
      LT-M5
 	
      (1)
 	
      $58,125.00
 	
      April 25, 2035
 
	
      LT-M6
 	
      (1)
 	
      $54,375.00
 	
      April 25, 2035
 

 

 

 

 

	
            LT-M7
 	
            (1)
 	
            $48,750.00
 	
            April 25, 2035
 
	
            LT-M8
 	
            (1)
 	
            $33,750.00
 	
            April 25, 2035
 
	
            LT-B
 	
            (1)
 	
            $37,500.00
 	
            April 25, 2035
 
	
            LT-ZZ
 	
            (1)
 	
            $3,750,000.00
 	
            April 25, 2035
 
	
            LT-P
 	
            (1)
 	
            $100.00
 	
            April 25, 2035
 
	
            LT-R
 	
            (1)
 	
            $100.00
 	
            April 25, 2035
 
	
            LT-1SUB
 	
            (1)
 	
            $6,519.99
 	
            April 25, 2035
 
	
            LT-1GRP
 	
            (1)
 	
            $39,999.99
 	
            April 25, 2035
 
	
            LT-2SUB
 	
            (1)
 	
            $5,705.01
 	
            April 25, 2035
 
	
            LT-2GRP
 	
            (1)
 	
            $35,000.01
 	
            April 25, 2035
 
	
            LT-XX
 	
            (1)
 	
            $374,912,775.02
 	
            April 25, 2035
 

 

	
            (1)
 	
            Calculated as provided in the definition of Uncertificated REMIC I Pass- Through Rate.
 

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 represent the sole class of “residual interests” in REMIC II for purposes of the REMIC Provisions under federal income tax law. The following table irrevocably sets forth the designation, Pass-Through Rate, aggregate Initial Certificate Principal Balance and Final Scheduled Distribution Date for each Class of Certificates comprising the interests representing “regular interests” in REMIC II. The “latest possible maturity date” (determined for purposes of satisfying Treasury Regulation Section 1.860G-1(a)(4)(iii)) for each Class of REMIC II Regular Certificates shall be the 360th Distribution Date.

	
            
Designation
 
 	
            
Pass-Through Rate
 
 	
            
Aggregate Initial Certificate Principal Balance
 
 	
            
Latest Possible Maturity Date
 
 
	
            Class 1-A-1
 	
            (1)
 	
             
 	
            $
 	
            267,840,000.00
 	
            April 25, 2035
 
	
            Class 1-A-2
 	
            (1)
 	
             
 	
            $
 	
            66,960,000.00
 	
            April 25, 2035
 
	
            Class 2-A-1
 	
            (1)
 	
             
 	
            $
 	
            180,895,000.00
 	
            April 25, 2035
 
	
            Class 2-A-2
 	
            (1)
 	
             
 	
            $
 	
            80,140,000.00
 	
            April 25, 2035
 
	
            Class 2-A-3
 	
            (1)
 	
             
 	
            $
 	
            31,915,000.00
 	
            April 25, 2035
 
	
            Class M-1
 	
            (1)
 	
             
 	
            $
 	
            25,500,000.00
 	
            April 25, 2035
 
	
            Class M-2
 	
            (1)
 	
             
 	
            $
 	
            23,625,000.00
 	
            April 25, 2035
 
	
            Class M-3
 	
            (1)
 	
             
 	
            $
 	
            13,875,000.00
 	
            April 25, 2035
 
	
            Class M-4
 	
            (1)
 	
             
 	
            $
 	
            12,750,000.00
 	
            April 25, 2035
 
	
            Class M-5
 	
            (1)
 	
             
 	
            $
 	
            11,625,000.00
 	
            April 25, 2035
 
	
            Class M-6
 	
            (1)
 	
             
 	
            $
 	
            10,875,000.00
 	
            April 25, 2035
 

 

 

 

 

	
            Class M-7
 	
            (1)
 	
             
 	
            $
 	
            9,750,000.00
 	
            April 25, 2035
 
	
            Class M-8
 	
            (1)
 	
             
 	
            $
 	
            6,750,000.00
 	
            April 25, 2035
 
	
            Class B
 	
            (1)
 	
             
 	
            $
 	
            7,500,000.00
 	
            April 25, 2035
 
	
            Class C
 	
            (2)
 	
             
 	
            $
 	
            0.00
 	
            April 25, 2035
 
	
            Class P
 	
            (3)
 	
             
 	
            $
 	
            100.00
 	
            April 25, 2035
 

_______________

	
            (1)
 	
            Interest will accrue at a rate equal to the Pass-Through Rate, as defined herein.
 
	
            (2)
 	
            The Class C Certificates will accrue interest at its variable Pass-Through Rate on the Notional Amount of the Class C Certificates outstanding from time to time which shall equal the Uncertificated Principal Balance of the REMIC I Regular Interests (other than REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R). The Class C Certificates will not accrue interest on its Certificate Principal Balance.
 
	
            (3)
 	
  The Class P Certificates will not be entitled to distributions of interest.
 

 

ARTICLE I

 

DEFINITIONS

	
            Section 1.01
 	
            Defined Terms.
 

In addition to those defined terms defined in Section 1.02, whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

Accrual Period:  With respect to any Distribution Date and the Certificates (other than the Class A-R, Class P and Class C Certificates), the period from and including the immediately preceding Distribution Date (or, in the case of the first Distribution Date, from and including the Closing Date) and to and including the day immediately preceding the current Distribution Date.  With respect to any Distribution Date and the Class C Certificates, the calendar month preceding the month in which such Distribution Date occurs.  All calculations of interest on the Certificates (other than the Class A-R, Class P and Class C Certificates) will be made on the basis of the actual number of days elapsed in the related Accrual Period and on a 360-day year.  All calculations of interest on the Class C Certificates will be made on the basis of a 360-day year consisting of
twelve 30-day months. The Class A-R Certificates and Class P Certificates will not accrue any interest and therefore have no Accrual Period.

Adjustable Rate Mortgage Loans:  The Mortgage Loans identified in the Mortgage Loan Schedule as having a Mortgage Rate which is adjustable for the life of the related Mortgage, including any Mortgage Loans delivered in replacement thereof.

Adjusted Net Mortgage Rate:  As to each Mortgage Loan, the Mortgage Rate less the Expense Fee Rate.

Adjustment Date:  As to each Adjustable Rate Mortgage Loan, each date on which the related Mortgage Rate is subject to adjustment, as provided in the related Mortgage Note.

Advance:  The aggregate of the advances required to be made by the Master Servicer with respect to any Distribution Date pursuant to Section 4.01, the amount of any such advances being equal to the sum of (A) the aggregate of payments of principal and interest (net of the Servicing Fees) on the Mortgage Loans that were due on the related Due Date and not received by the Master Servicer as of the close of business on the related Determination Date and (B) with respect to each REO Property that has not been liquidated, an amount equal to the excess, if any, of (x) one month’s interest (adjusted to the Net Mortgage Rate) on the Stated Principal Balance of the related Mortgage Loan over (y) the net monthly rental income (if any) from such REO Property deposited in the Certificate Account for such Distribution Date pursuant to Section 3.12, less the aggregate
amount of any such delinquent payments that the Master Servicer has determined would constitute a Nonrecoverable Advance were an advance to be made with respect thereto.  

Agreement: This Pooling and Servicing Agreement and any and all amendments or supplements hereto made in accordance with the terms herein.

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

Applied Realized Loss Amount:  With respect to any Distribution Date, the sum of the Realized Losses with respect to the Mortgage Loans which shall equal the amount, if any, by which the aggregate Certificate Principal Balance of Senior Certificates and Subordinate Certificates (after all distributions of principal on such Distribution Date) exceeds the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date, and which are to be applied as provided in Section 4.04 of this Agreement.

Appraised Value:  The appraised value of the Mortgaged Property based upon the appraisal made for the originator by a fee appraiser at the time of the origination of the related Mortgage Loan, or the sales price of the Mortgaged Property at the time of such origination, whichever is less, or with respect to any Mortgage Loan originated in connection with a refinancing, the appraised value of the Mortgaged Property based upon the appraisal made at the time of such refinancing.

Bankruptcy Code:  Title 11 of the United States Code.

Book-Entry Certificates:  Any of the Certificates that shall be registered in the name of the Depository or its nominee, the ownership of which is reflected on the books of the Depository or on the books of a person maintaining an account with the Depository (directly, as a “Depository Participant”, or indirectly, as an indirect participant in accordance with the rules of the Depository and as described in Section 5.06).  As of the Closing Date, each Class of Class A Certificates and Subordinate Certificates constitutes a Class of Book-Entry Certificates.

Business Day:  Any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in the State of California, City of New York, New York or 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.

Calendar Quarter: A Calendar Quarter shall consist of one of the following  time periods in any given year:  January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31.

Carryover Reserve Fund:  The separate Eligible Account created and initially maintained by the Trustee pursuant to Section 4.08 in the name of the Trustee for the benefit of the Certificateholders and designated “The Bank of New York in trust for registered holders of CWABS, Inc., Asset-Backed Certificates, Series 2005-BC2”.  Funds in the Carryover Reserve Fund shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement and shall not be a part of any REMIC created under this Agreement.

 

 

Certificate:  Any one of the certificates of any Class executed and authenticated by the Trustee in substantially the forms attached hereto as Exhibits A-1 through A-14, Exhibit B, Exhibit C and Exhibit D.

Certificate Account:  The separate Eligible Account created and initially maintained by the Master Servicer pursuant to Section 3.05(b) with a depository institution in the name of the Master Servicer for the benefit of the Trustee on behalf of the Certificateholders and designated “Countrywide Home Loans Servicing LP in trust for registered holders of CWABS, Inc., Asset-Backed Certificates, Series 2005-BC2”.  Funds in the Certificate Account shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement.

Certificate Account Deposit:  An amount equal to the aggregate of all amounts in respect of (i) principal of the Mortgage Loans due on or after the Cut-off Date and received by the Master Servicer before the Closing Date and not applied in computing the Cut-off Date Principal Balance thereof, and (ii) interest on the Mortgage Loans due on and after the  Cut-off Date and received by the Master Servicer before the Closing Date.

Certificate Group:  Any of the Group 1 Certificates or Group 2 Certificates.

Certificate Owner:  With respect to a Book-Entry Certificate, the person that is the beneficial owner of such Book-Entry Certificate.

Certificate Principal Balance:  As to any Certificate (other than the Class C Certificates) and as of any Distribution Date, the Initial Certificate Principal Balance of such Certificate less the sum of (i) all amounts distributed with respect to such Certificate in reduction of the Certificate Principal Balance thereof on previous Distribution Dates pursuant to Section 4.04, and (ii) in the case of any Subordinate Certificate and the Class 1-A-2 Certificates any Applied Realized Loss Amounts allocated to such Certificate on previous Distribution Dates pursuant to Section 4.04; provided that first, the Certificate Principal Balance of the Class 1-A-2 Certificates and second, the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated will be increased by the amount of any Subsequent Recoveries on the
Mortgage Loans not previously allocated, but not by more than the amount of Realized Losses previously allocated to reduce the Certificate Principal Balance of that Class. As to any Class C Certificate and as of any Distribution Date, an amount equal to the excess, if any, of (i) the aggregate Stated Principal Balance of the Mortgage Loans over (ii) the aggregate Certificate Principal Balance of the Senior Certificates and Subordinate Certificates. References herein to the Certificate Principal Balance of a Class of Certificates shall mean the Certificate Principal Balances of all Certificates in such Class.

Certificate Register:  The register maintained pursuant to Section 5.02 hereof.

Certificateholder or Holder:  The person in whose name a Certificate is registered in the Certificate Register (initially, Cede & Co., as nominee for the Depository, in the case of any Class of Regular Certificates, except that solely for the purpose of giving any consent pursuant to this Agreement, any Certificate registered in the name of the Depositor or any affiliate of the Depositor shall be deemed not to be Outstanding and the Voting  Interest evidenced thereby shall not be taken into account in determining whether the requisite amount of Voting Interests 

 

 

necessary to effect such consent has been obtained; provided that if any such Person (including the Depositor) owns 100% of the Voting Interests evidenced by a Class of Certificates, such Certificates shall be deemed to be Outstanding for purposes of any provision hereof (other than the second sentence of Section 10.01 hereof) that requires the consent of the Holders of Certificates of a particular Class as a condition to the taking of any action hereunder.  The Trustee is entitled to rely conclusively on a certification of the Depositor or any affiliate of the Depositor in determining which Certificates are registered in the name of an affiliate of the Depositor.

Class:  All Certificates bearing the same Class designation as set forth in Section 5.01 hereof.

Class A Principal Distribution Target Amount: For any Distribution Date, the excess of (i) the aggregate Certificate Principal Balance of the Class 1-A Certificates and Class 2-A Certificates immediately prior to such Distribution Date, over (ii) the lesser of (x) 63.50% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor.

Class 1-A Certificates:  The Class 1-A-1 Certificates and Class 1-A-2 Certificates.

Class 1-A-1 Certificate:  Any Certificate designated as a “Class 1-A-1 Certificate” on the face thereof, in the form of Exhibit A-1 hereto, representing the right to distributions as set forth herein.

Class 1-A-2 Certificate: Any Certificate designated as a “Class 1-A-2 Certificate” on the face thereof, in the form of Exhibit A-2 hereto, representing the right to distributions as set forth herein.

Class 1-A Corridor Contract: The transaction evidenced by the Confirmation and Agreement for the benefit of the Class 1-A Certificateholders (as assigned to the Corridor Contract Administrator pursuant to the Corridor Contract Novation Agreement), a form of which is attached hereto as Exhibit R.

Class 1-A Corridor Contract Payment Amount:  The amount, if any, allocated to the Trustee by the Corridor Contract Administrator for the benefit of the Trust Fund in respect of the Class 1-A Corridor Contract.

Class 1-A Corridor Contract Termination Date:  The Distribution Date in April 2011.

Class 1-A Confirmation and Agreement: The Confirmation and Agreement dated April 19, 2005, reference numbers 775113B and 775122B, evidencing the Class 1-A Corridor Contract.

Class 1-A Principal Distribution Amount: For any Distribution Date, the product of (a) the Class A Principal Distribution Target Amount and (b) a fraction, the numerator of which is the Class 1-A Principal Distribution Target Amount and the denominator of which is the sum of 

 

 

the Class 1-A Principal Distribution Target Amount and Class 2-A Principal Distribution Target Amount.

Class 1-A Principal Distribution Target Amount: For any Distribution Date, the excess of:

(i)                the aggregate Certificate Principal Balance of the Class 1-A Certificates immediately prior to such Distribution Date, over

(ii)               the lesser of (x) 63.50% of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus 0.50% of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 as of the Cut-off Date.

Class 1-A-1 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class 1-A-1 Certificates.

Class 1-A-2 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class 1-A-2 Certificates.

Class 1-A-1 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class 1-A-1 Pass-Through Rate on the Class 1-A-1 Certificate Principal Balance immediately prior to such Distribution Date.

Class 1-A-2 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class 1-A-2 Pass-Through Rate on the Class 1-A-2 Certificate Principal Balance immediately prior to such Distribution Date.

Class 1-A-1 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class 1-A-1 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class 1-A-1 Certificates with respect to interest on such prior Distribution Dates.

Class 1-A-2 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class 1-A-2 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class 1-A-2 Certificates with respect to interest on such prior Distribution Dates.

Class 1-A-1 Interest Carryover Amount:  For any Distribution Date and the Class 1-A-1 Certificates, the sum of (A) the excess of (i) the amount of interest the Class 1-A-1 Certificates would otherwise have accrued for such Distribution Date had the Class 1-A-1 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class 1-A-1 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class 1-A-1 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class 1-A-1 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 

 

 

4.04, together with interest thereon at the Class 1-A-1 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class 1-A-2 Interest Carryover Amount:  For any Distribution Date and the Class 1-A-2 Certificates, the sum of (A) the excess of (i) the amount of interest the Class 1-A-2 Certificates would otherwise have accrued for such Distribution Date had the Class 1-A-2 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class 1-A-2 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class 1-A-2 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class 1-A-2 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class 1-A-2 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class 1-A-1 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.200% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.400% per annum.

Class 1-A-2 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.250% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.500% per annum.

Class 1-A-1 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class 1-A-1 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class 1-A-2 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class 1-A-2 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class 2-A Certificates: The Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates.

Class 2-A-1 Certificate: Any Certificate designated as a “Class 2-A-1 Certificate” on the face thereof, in the form of Exhibit A-3 hereto, representing the right to distributions as set forth herein.

Class 2-A-2 Certificate: Any Certificate designated as a “Class 2-A-2 Certificate” on the face thereof, in the form of Exhibit A-4 hereto, representing the right to distributions as set forth herein.

Class 2-A-3 Certificate: Any Certificate designated as a “Class 2-A-3 Certificate” on the face thereof, in the form of Exhibit A-5 hereto, representing the right to distributions as set forth herein.

Class 2-A Corridor Contract: The transaction evidenced by the Confirmation and Agreement for the benefit of the Class 2-A Certificateholders (as assigned to the Corridor Contract Administrator pursuant to the Corridor Contract Novation Agreement), a form of which is attached hereto as Exhibit S.

 

 

Class 2-A Corridor Contract Payment Amount:  The amount, if any, allocated to the Trustee by the Corridor Contract Administrator for the benefit of the Trust Fund in respect of the Class 2-A Corridor Contract.

Class 2-A Corridor Contract Termination Date:  The Distribution Date in April.

Class 2-A Confirmation and Agreement: The Confirmation and Agreement dated April 19, 2005, reference numbers 775120B and 775121B, evidencing the Class 2-A Corridor Contract.

Class 2-A Principal Distribution Amount: For any Distribution Date, the product of (a) the Class A Principal Distribution Target Amount and (b) a fraction, the numerator of which is the Class 2-A Principal Distribution Target Amount and the denominator of which is the sum of the Class 1-A Principal Distribution Target Amount and Class 2-A Principal Distribution Target Amount.

Class 2-A Principal Distribution Target Amount: For any Distribution Date, the excess of:

(i)                the aggregate Certificate Principal Balance of the Class 2-A Certificates immediately prior to such Distribution Date, over

(ii)                the lesser of (x) 63.50% of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus 0.50% of the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 as of the Cut-off Date.

Class 2-A-1 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class 2-A-1 Certificates.

Class 2-A-2 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class 2-A-2 Certificates.

Class 2-A-3 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class 2-A-3 Certificates.

Class 2-A-1 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class 2-A-1 Pass-Through Rate on the Class 2-A-1 Certificate Principal Balance immediately prior to such Distribution Date.

Class 2-A-2 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class 2-A-2 Pass-Through Rate on the Class 2-A-2 Certificate Principal Balance immediately prior to such Distribution Date.

 

 

Class 2-A-3 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class 2-A-3 Pass-Through Rate on the Class 2-A-3 Certificate Principal Balance immediately prior to such Distribution Date.

Class 2-A-1 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class 2-A-1 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class 2-A-1 Certificates with respect to interest on such prior Distribution Dates.

Class 2-A-2 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class 2-A-2 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class 2-A-2 Certificates with respect to interest on such prior Distribution Dates.

Class 2-A-3 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class 2-A-3 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class 2-A-3 Certificates with respect to interest on such prior Distribution Dates.

Class 2-A-1 Interest Carryover Amount: For any Distribution Date and the Class 2-A-1 Certificates, the sum of (A) the excess of (i) the amount of interest the Class 2-A-1 Certificates would otherwise have accrued for such Distribution Date had the Class 2-A-1 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class 2-A-1 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class 2-A-1 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class 2-A-1 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class 2-A-1 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class 2-A-2 Interest Carryover Amount: For any Distribution Date and the Class 2-A-2 Certificates, the sum of (A) the excess of (i) the amount of interest the Class 2-A-2 Certificates would otherwise have accrued for such Distribution Date had the Class 2-A-2 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class 2-A-2 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class 2-A-2 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class 2-A-2 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class 2-A-2 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class 2-A-3 Interest Carryover Amount: For any Distribution Date and the Class 2-A-3 Certificates, the sum of (A) the excess of (i) the amount of interest the Class 2-A-3 Certificates would otherwise have accrued for such Distribution Date had the Class 2-A-3 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class 2-A-3 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class 2-A-3 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class 2-A-3 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 

 

 

4.04, together with interest thereon at the Class 2-A-3 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class 2-A-1 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.090% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.180% per annum.

Class 2-A-2 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.200% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.400% per annum.

Class 2-A-3 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.320% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.640% per annum.

Class 2-A-1 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class 2-A-1 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class 2-A-2 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class 2-A-2 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class 2-A-3 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class 2-A-3 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class A-R Certificate: Any one of the Class A-R Certificates executed by the Trustee substantially in the form annexed hereto as Exhibit D, composed of the Class R-I Interest and Class R-II Interest.

Class A-R Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class A-R Certificates.

Class A-R Principal Distribution Amount: With respect to any Distribution Date, the excess, if any, of (A) $100 over (B) all amounts distributed with respect to such Certificate in reduction of the Certificate Principal Balance thereof on previous Distribution Dates pursuant to Section 4.04.

Class B Certificate:  Any Certificate designated as a “Class B Certificate” on the face thereof, in the form of Exhibit A-14 hereto, representing the right to distributions as set forth herein.

Class B Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class B Certificates.

Class B Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class B Pass-Through Rate on the Class B Certificate Principal Balance immediately prior to such Distribution Date.

 

 

Class B Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class B Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class B Certificates with respect to interest on such prior Distribution Dates.

Class B Interest Carryover Amount:  For any Distribution Date and the Class B Certificates, the sum of (A) the excess of (i) the amount of interest the Class B Certificates would otherwise have accrued for such Distribution Date had the Class B Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class B Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class B Certificates at the Net Rate Cap for such Distribution Date and (B) the Class B Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class B Pass-Through Rate (without giving effect to the Net Rate Cap).

Class B Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 1.750% per annum and, for any Distribution Date after the Optional Termination Date, 2.625% per annum.

Class B Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class B Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class B Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C) the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate Principal
Balance (after taking into account distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate Principal Balance (after taking into account distribution of the Class M-5 Principal Distribution Amount on such Distribution Date); (G) the Class M-6 Certificate Principal Balance (after taking into account distribution of the Class M-6 Principal Distribution Amount on such Distribution Date); (H) the Class M-7 Certificate Principal Balance (after taking into account distribution of the Class M-7 Principal Distribution Amount on such Distribution Date); (I) the Class M-8 Certificate Principal Balance (after taking into account distribution of the Class M-8 Principal Distribution Amount on such Distribution Date) and (J) the Class B Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 96.10% of the aggregate Stated Principal Balances of the Mortgage Loans for such Distribution Date
after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class B Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

 

 

Class C Certificate:  Any Certificate designated as a “Class C Certificate” on the face thereof, in the form of Exhibit B hereto, representing the right to distributions as set forth herein, to be issued initially to Countrywide Securities Holding Inc.

Class C Current Interest:  For any Distribution Date, the interest accrued on the Class C Notional Amount during the related Accrual Period at the Class C Pass-Through Rate.

Class C Notional Amount: The aggregate amount of the Uncertificated Principal Balance of the REMIC I Regular Interests other than REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R.

Class C Pass-Through Rate: 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 (A) through (P) below, and the denominator of which is the Uncertificated Principal Balance of the REMIC I Regular Interests (other than REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R).  For purposes of calculating the Pass Through Rate for the Class C Certificates, the numerator is equal to the sum of the following components:

(A)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-AA minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-AA;

(B)        the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-1A minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-1A1;

(C)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-1A minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-1A2;

(D)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-2A1;

(E)        the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-2A2;

(F)        the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-2A minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-2A3;

(G)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M1 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M1;

 

 

(H)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M2 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M2;

(I)         the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M3 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M3;

(J)         the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M4 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M4;

(K)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M5 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M5;

(L)        the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M6 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M6;

(M)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M7 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M7;

(N)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-M8 minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-M8;

(O)       the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-B minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-B; and

(P)        the Uncertificated REMIC I Pass-Through Rate for REMIC I Regular Interest LT-ZZ minus the Marker Rate, applied to an amount equal to the Uncertificated Principal Balance of REMIC I Regular Interest LT-ZZ.

Class M-1 Certificate:  Any Certificate designated as a “Class M-1 Certificate” on the face thereof, in the form of Exhibit A-6 hereto, representing the right to distributions as set forth herein.

Class M-1 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-1 Certificates.

Class M-1 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on the Class M-1 Certificate Principal Balance immediately prior to such Distribution Date.

 

 

Class M-1 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-1 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-1 Certificates with respect to interest.

Class M-1 Interest Carryover Amount:  For any Distribution Date and the Class M-1 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-1 Certificates would otherwise have accrued for such Distribution Date had the Class M-1 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-1 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-1 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-1 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-1 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-1 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.430% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.645% per annum.

Class M-1 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-1 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-1 Principal Distribution Amount: With respect to any Distribution Date, the excess of (i) the sum of (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distribution of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amounts on such Distribution Date) and (B) the Class M-1 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 70.30% of the Stated Principal Balances of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate
Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-1 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-2 Certificate:  Any Certificate designated as a “Class M-2 Certificate” on the face thereof, in the form of Exhibit A-7 hereto, representing the right to distributions as set forth herein.

Class M-2 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-2 Certificates.

Class M-2 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on the Class M-2 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-2 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-2 Current Interest with respect to prior Distribution Dates over (b) the amount 

 

 

actually distributed to the Class M-2 Certificates with respect to interest on such prior Distribution Dates.

Class M-2 Interest Carryover Amount:  For any Distribution Date and the Class M-2 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-2 Certificates would otherwise have accrued for such Distribution Date had the Class M-2 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-2 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-2 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-2 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-2 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-2 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.450% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.675% per annum.

Class M-2 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-2 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-2 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date) and (C) the Class M-2 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 76.60% of the aggregate Stated Principal Balances of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage
Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-2 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-3 Certificate:  Any Certificate designated as a “Class M-3 Certificate” on the face thereof, in the form of Exhibit A-8 hereto, representing the right to distributions as set forth herein.

Class M-3 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-3 Certificates.

Class M-3 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-3 Pass-Through Rate on the Class M-3 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-3 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-3 Current Interest with respect to prior Distribution Dates over (b) the amount 

 

 

actually distributed to the Class M-3 Certificates with respect to interest on such prior Distribution Dates.

Class M-3 Interest Carryover Amount:  For any Distribution Date and the Class M-3 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-3 Certificates would otherwise have accrued for such Distribution Date had the Class M-3 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-3 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-3 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-3 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-3 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-3 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.490% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.735% per annum.

Class M-3 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-3 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-3 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)  the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date) and (D) the Class M-3 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 80.30% of the aggregate Stated Principal Balances of the Mortgage Loans for
such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each of the other Classes of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-3 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-4 Certificate:  Any Certificate designated as a “Class M-4 Certificate” on the face thereof, in the form of Exhibit A-9 hereto, representing the right to distributions as set forth herein.

Class M-4 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-4 Certificates.

Class M-4 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-4 Pass-Through Rate on the Class M-4 Certificate Principal Balance immediately prior to such Distribution Date.

 

 

Class M-4 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-4 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-4 Certificates with respect to interest on such prior Distribution Dates.

Class M-4 Interest Carryover Amount:  For any Distribution Date and the Class M-4 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-4 Certificates would otherwise have accrued for such Distribution Date had the Class M-4 Pass-through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-4 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-4 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-4 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-4 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-4 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.610% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.915% per annum.

Class M-4 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-4 Margin and (ii) the Net Rate Cap for such Distribution Date.

Class M-4 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)  the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account distribution of the Class M-3 Principal Distribution Amount on such Distribution Date) and (E) the Class M-4 Certificate
Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 83.70% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each of the other Classes of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-4 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-5 Certificate:  Any Certificate designated as a “Class M-5 Certificate” on the face thereof, in the form of Exhibit A-10 hereto, representing the right to distributions as set forth herein.

Class M-5 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-5 Certificates.

 

 

Class M-5 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-5 Pass-Through Rate on the Class M-5 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-5 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-5 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-5 Certificates with respect to interest on such prior Distribution Dates.

Class M-5 Interest Carryover Amount:  For any Distribution Date and the Class M-5 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-5 Certificates would otherwise have accrued for such Distribution Date had the Class M-5 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-5 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-5 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-5 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-5 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-5 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.640% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 0.960% per annum.

Class M-5 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-5 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-5 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C) the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate
Principal Balance (after taking into account distribution of the Class M-4 Principal Distribution Amount on such Distribution Date) and (F) the Class M-5 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 86.80% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-5 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

 

 

Class M-6 Certificate:  Any Certificate designated as a “Class M-6 Certificate” on the face thereof, in the form of Exhibit A-11 hereto, representing the right to distributions as set forth herein.

Class M-6 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-6 Certificates.

Class M-6 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on the Class M-6 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-6 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-6 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-6 Certificates with respect to interest on such prior Distribution Dates.

Class M-6 Interest Carryover Amount:  For any Distribution Date and the Class M-6 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-6 Certificates would otherwise have accrued for such Distribution Date had the Class M-6 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-6 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-6 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-6 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-6 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-6 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 0.680% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 1.020% per annum.

Class M-6 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-6 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-6 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)  the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate
Principal Balance (after taking into account distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate Principal Balance (after taking into account distribution of the Class M-5 Principal Distribution Amount on such Distribution Date) and (G) the Class M-6 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 89.70% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to 

 

 

distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-6 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-7 Certificate:  Any Certificate designated as a “Class M-7 Certificate” on the face thereof, in the form of Exhibit A-12 hereto, representing the right to distributions as set forth herein.

Class M-7 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-7 Certificates.

Class M-7 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-7 Pass-Through Rate on the Class M-7 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-7 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-7 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-7 Certificates with respect to interest on such prior Distribution Dates.

Class M-7 Interest Carryover Amount:  For any Distribution Date and the Class M-7 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-7 Certificates would otherwise have accrued for such Distribution Date had the Class M-7 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-7 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-7 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-7 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-7 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-7 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 1.250% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 1.875% per annum.

Class M-7 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-7 Margin and (ii) the related Net Rate Cap for such Distribution Date.

Class M-7 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)  the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account 

 

 

distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate Principal Balance (after taking into account distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate Principal Balance (after taking into account distribution of the Class M-5 Principal Distribution Amount on such Distribution Date), (G) the Class M-6 Certificate Principal Balance (after taking into account distribution of the Class M-6 Principal Distribution Amount on such Distribution Date) and (H) the Class M-7 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 92.30% of the aggregate Stated Principal Balances of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance
of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-7 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class M-8 Certificate:  Any Certificate designated as a “Class M-8 Certificate” on the face thereof, in the form of Exhibit A-13 hereto, representing the right to distributions as set forth herein.

Class M-8 Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class M-8 Certificates.

Class M-8 Current Interest:  For any Distribution Date, the interest accrued during the related Accrual Period at the Class M-8 Pass-Through Rate on the Class M-8 Certificate Principal Balance immediately prior to such Distribution Date.

Class M-8 Interest Carry Forward Amount:  For any Distribution Date, the excess of (a) the Class M-8 Current Interest with respect to prior Distribution Dates over (b) the amount actually distributed to the Class M-8 Certificates with respect to interest on such prior Distribution Dates.

Class M-8 Interest Carryover Amount:  For any Distribution Date and the Class M-8 Certificates, the sum of (A) the excess of (i) the amount of interest the Class M-8 Certificates would otherwise have accrued for such Distribution Date had the Class M-8 Pass-Through Rate thereon been calculated as the sum of One-Month LIBOR and the applicable Class M-8 Margin for such Distribution Date, over (ii) the amount of interest accrued on the Class M-8 Certificates at the Net Rate Cap for such Distribution Date and (B) the Class M-8 Interest Carryover Amount for all previous Distribution Dates not previously paid pursuant to Section 4.04, together with interest thereon at the Class M-8 Pass-Through Rate (without giving effect to the Net Rate Cap).

Class M-8 Margin:  For the Accrual Period for any Distribution Date on or prior to the Optional Termination Date, 1.350% per annum and, for the Accrual Period for any Distribution Date after the Optional Termination Date, 2.025% per annum.

Class M-8 Pass-Through Rate:  For any Distribution Date, the lesser of (i) One-Month LIBOR plus the Class M-8 Margin and (ii) the related Net Rate Cap for such Distribution Date.

 

 

Class M-8 Principal Distribution Amount:  With respect to any Distribution Date, the excess of (i) the sum of: (A) the aggregate Certificate Principal Balance of the Senior Certificates (after taking into account distributions of the Class 1-A Principal Distribution Amount and Class 2-A Principal Distribution Amount for such Distribution Date), (B) the Class M-1 Certificate Principal Balance (after taking into account distribution of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)  the Class M-2 Certificate Principal Balance (after taking into account distribution of the Class M-2 Principal Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate Principal Balance (after taking into account distribution of the Class M-3 Principal Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate
Principal Balance (after taking into account distribution of the Class M-4 Principal Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate Principal Balance (after taking into account distribution of the Class M-5 Principal Distribution Amount on such Distribution Date), (G) the Class M-6 Certificate Principal Balance (after taking into account distribution of the Class M-6 Principal Distribution Amount on such Distribution Date), (H) the Class M-7 Certificate Principal Balance (after taking into account distribution of the Class M-7 Principal Distribution Amount on such Distribution Date) and (I) the Class M-8 Certificate Principal Balance immediately prior to such Distribution Date over (ii) the lesser of (x) 94.10% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date after giving effect to distributions to be made on that Distribution Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date after giving effect to distributions to be made on that Distribution Date minus the OC Floor; provided, however, that after the Certificate Principal Balance of each other Class of Senior Certificates and Subordinate Certificates is reduced to zero, the Class M-8 Principal Distribution Amount for such Distribution Date will equal 100% of the Principal Distribution Amount for such Distribution Date.

Class P Certificate:  Any Certificate designated as a “Class P Certificate” on the face thereof, in the form of Exhibit C hereto, representing the right to distributions as set forth herein.

Class P Certificate Principal Balance:  As of any date of determination, the Certificate Principal Balance of the Class P Certificates.

Class P Distribution Account:  The separate Eligible Account created and maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee for the benefit of the Class P Certificateholders and designated “The Bank of New York, in trust for registered holders of CWABS, Inc., Asset-Backed Certificates, Series 2005-BC2”.

Class P Principal Distribution Date: The first Distribution Date that occurs after the end of the latest Prepayment Charge Period for all Mortgage Loans that have a Prepayment Charge Period.

Class R-I Interest: The uncertificated Residual Interest in REMIC I.

Class R-II Interest: The uncertificated Residual Interest in REMIC II.

Closing Date: April 29, 2005.

 

 

Code: The Internal Revenue Code of 1986, including any successor or amendatory provisions.

Compensating Interest:  With respect to any Distribution Date, an amount equal to one-half of the Servicing Fee, to be applied to the interest portion of any Prepayment Interest Shortfall on the Mortgage Loans pursuant to Section 4.02 hereof.

Confirmation And Agreements: The Class 1-A Confirmation and Agreement, Class 2-A Confirmation and Agreement and Subordinated Confirmation and Agreement.

Corporate Trust Office:  The designated office of the Trustee in the State of New York where at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this Agreement is located at 101 Barclay Street, New York, New York 10286 (Attention:  Corporate Trust MBS Administration), telephone:  (212) 815-3236, facsimile:  (212) 815-3986.

Corresponding Certificate: With respect to each REMIC I Regular Interest set forth below, the Certificate set forth in the table below:

	
             
 	
            REMIC I Regular Interest
 	 	
            REMIC II Certificate
 	
             
 
	
             
 	
            LT-1A1
 	 	
            Class 1-A-1 Certificate
 	
             
 
	
             
 	
            LT-1A2
 	 	
            Class 1-A-2 Certificate
 	
             
 
	
             
 	
            LT-2A1
 	 	
            Class 2-A-1 Certificate
 	
             
 
	
             
 	
            LT-2A2
 	 	
            Class 2-A-2 Certificate
 	
             
 
	
             
 	
            LT-2A3
 	 	
            Class 2-A-3 Certificate
 	
             
 
	
             
 	
            LT-M1
 	 	
            Class M-1 Certificate
 	
             
 
	
             
 	
            LT-M2
 	 	
            Class M-2 Certificate
 	
             
 
	
             
 	
            LT-M3
 	 	
            Class M-3 Certificate
 	
             
 
	
             
 	
            LT-M4
 	 	
            Class M-4 Certificate
 	
             
 
	
             
 	
            LT-M5
 	 	
            Class M-5 Certificate
 	
             
 
	
             
 	
            LT-M6
 	 	
            Class M-6 Certificate
 	
             
 
	
             
 	
            LT-M7
 	 	
            Class M-7 Certificate
 	
             
 
	
             
 	
            LT-M8
 	 	
            Class M-8 Certificate
 	
             
 
	
             
 	
            LT-B
 	 	
            Class B Certificate
 	
             
 
	
             
 	
            LT-P
 	 	
            Class P Certificate
 	
             
 
	
             
 	
            LT-R
 	 	
            Class A-R Certificate
 	
             
 

 

Corridor Contract Administration Agreement: The Corridor Contract Administration Agreement dated as April 29, 2005 between the Corridor Contract Administrator, the Trustee and Countrywide, a form of which is attached hereto as Exhibit T.

Corridor Contract Administrator: The Bank of New York, a New York banking corporation, and any successor thereto.

 

 

Corridor Contracts: The Class 1-A Corridor Contract, Class 2-A Corridor Contract and Subordinated Corridor Contract.

Corridor Contract Counterparty: Barclays Bank PLC, and any permitted successors and assigns pursuant to the Corridor Contracts.

Corridor Contract Novation Agreement: The Novation Agreement regarding the Class 1-A Corridor Contract, Class 2-A Corridor Contract and Subordinated Corridor Contract, each dated as of the Closing Date among Countrywide, the Corridor Contract Administrator and the Corridor Contract Counterparty, which is attached hereto as Exhibit S.

Corridor Contract Payment Amount: The Class 1-A Corridor Contract Payment Amount, Class 2-A Corridor Contract Payment Amount and Subordinated Corridor Contract Payment Amount, as applicable.

Corridor Contract Termination Date: The Class 1-A Corridor Contract Termination Date, Class 2-A Corridor Contract Termination Date and Subordinated Corridor Contract Termination Date, as applicable.

Countrywide:  Countrywide Home Loans, Inc., a New York corporation and its successors and assigns, in its capacity as the seller of the Countrywide Mortgage Loans to the Depositor.

Countrywide Mortgage Loans: The Mortgage Loans identified as such on the Mortgage Loan Schedule for which Countrywide is the applicable Seller.

Cumulative Loss Trigger Event: With respect to a Distribution Date on or after the Stepdown Date exists if the aggregate amount of Realized Losses on the Mortgage Loans from (and including) the Cut-off Date for each Mortgage Loan to (and including) the last day of the related Due Period (reduced by the aggregate amount of Subsequent Recoveries received through the last day of that Due Period) a Cumulative Loss Trigger Event exceeds the applicable percentage, for such Distribution Date, of the Cut-off Date Principal Balance of the Mortgage Loans, as set forth below:

 

	
            Distribution Date
 	
            Percentage
 
	
            May 2008 — April 2009       
 	
            2.75% with respect to May 2008, plus an additional 1/12th of 1.25% for each month thereafter until April 2009
 
	
            May 2009 — April 2010       
 	
            4.00% with respect to May 2009, plus an additional 1/12th of 1.25% for each month thereafter until April 2010
 
	
            May 2010 — April 2011       
 	
            5.25% with respect to May 2010, plus an additional 1/12th of 0.75% for each month thereafter until April 2011
 
	
            May 2011 and thereafter
 	
            6.00%
 

 

 

 

 

Current Interest:  With respect to (i) the Class 1-A-1 Certificates, the Class 1-A-1 Current Interest (ii) the Class 1-A-2 Certificates, the Class 1-A-2 Current Interest, (iii) the Class 2-A-1 Certificates, the Class 2-A-1 Current Interest, (iv) the Class 2-A-2 Certificates, the Class 2-A-2 Current Interest (v) the Class 2-A-3 Certificates, the Class 2-A-3 Current Interest (vi) the Class M-1 Certificates, the Class M-1 Current Interest, (vii) the Class M-2 Certificates, the Class M-2 Current Interest, (viii) the Class M-3 Certificates, the Class M-3 Current Interest, (ix) the Class M-4 Certificates, the Class M-4 Current Interest, (x) the Class M-5 Certificates, the Class M-5 Current Interest, (xi) the Class M-6 Certificates, the Class M-6 Current Interest, (xii) the Class M-7 Certificates, the Class M-7 Current Interest, (xiii) the Class M-8 Certificates, the
Class M-8 Current Interest, (xiv) the Class B Certificates, the Class B Current Interest and (xv) the Class C Certificates, the Class C Current Interest.

Cut-off Date:  In the case of any Mortgage Loan, the later of (x) April 1, 2005 and (y) the date of origination of such Mortgage Loan.  When used with respect to any Mortgage Loans “the Cut-off Date” shall mean the related Cut-off Dates.

Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid principal balance thereof as of the close of business on the Cut-off Date after application of all payments of principal due on or prior to the Cut-off Date, whether or not received, and all Principal Prepayments received on or prior to the Cut-off Date, but without giving effect to any installments of principal received in respect of Due Dates after the Cut-off Date.  

Debt Service Reduction: With respect to any Mortgage Loan, a reduction by a court of competent jurisdiction in a proceeding under the Bankruptcy Code in the Scheduled Payment for such Mortgage Loan that became final and non-appealable, except such a reduction resulting from a Deficient Valuation or any other reduction that results in a permanent forgiveness of principal.

Definitive Certificates:  As defined in Section 5.06.

Deficient Valuation:  With respect to any Mortgage Loan, a valuation by a court of competent jurisdiction of the Mortgaged Property in an amount less than the then outstanding indebtedness under such Mortgage Loan, or any reduction in the amount of principal to be paid in connection with any Scheduled Payment that results in a permanent forgiveness of principal, which valuation or reduction results from an order of such court that is final and non-appealable in a proceeding under the Bankruptcy Code.

Delay Delivery Mortgage Loans:  The Mortgage Loans identified on the schedule of Mortgage Loans hereto set forth on Exhibit F-2 hereof for which all or a portion of a related Mortgage File is not delivered to the Trustee on or prior to the Closing Date.  The Depositor shall deliver (or cause delivery of) the Mortgage Files to the Trustee: (A) with respect to at least 50% of the Mortgage Loans in each Loan Group, not later than the Closing Date, (B) with respect to at least an additional 40% of the Mortgage Loans in each Loan Group, not later than 20 days after the Closing Date, and (C) with respect to the remaining 10% of the Mortgage Loans, not later than 30 days after the Closing Date.  To the extent that Countrywide shall be in possession of any Mortgage Files with respect to any Delay Delivery Loan, until delivery to of 

 

 

such Mortgage File to the Trustee as provided in Section 2.01, Countrywide shall hold such files as agent and in trust for the Trustee.

Deleted Mortgage Loan:  A Mortgage Loan replaced or to be replaced by a Replacement Mortgage Loan.

Delinquency Trigger Event: With respect to any Distribution Date on or after the Stepdown Date, a Delinquency Trigger Event exists if the Rolling Delinquency Percentage equals or exceeds the product of 42.00% and the Senior Enhancement Percentage.

Delinquent:  A Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to the terms of such Mortgage Loan by the close of business on the day such payment is scheduled to be due.  A Mortgage Loan is “30 days delinquent” if such payment has not been received by the close of business on the corresponding day of the month immediately succeeding the month in which such payment was due, or, if there is no such corresponding day (e.g., as when a 30-day month follows a 31-day month in which a payment was due on the 31st day of such month), then on the last day of such immediately succeeding month.  Similarly for “60 days delinquent,” “90 days delinquent” and so on.

Denomination:  With respect to each Certificate, the amount set forth on the face thereof as the “Initial Certificate Balance of this Certificate” or the “Initial Notional Amount of this Certificate” or, if neither of the foregoing, the Percentage Interest appearing on the face thereof.

Depositor:  CWABS, Inc., a Delaware corporation, or its successor in interest.

Depository:  The initial Depository shall be The Depository Trust Company (“DTC”), the nominee of which is Cede & Co., or any other organization registered as a “clearing agency” pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.  The Depository shall initially be the registered Holder of the Book-Entry Certificates.  The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(a)(5) of the Uniform Commercial Code of the State of New York.

Depository Agreement:  With respect to the Class of Book-Entry Certificates, the agreement among the Depositor, the Trustee and the initial Depository, dated as of the Closing Date, substantially in the form of Exhibit O.

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 any Distribution Date, the 15th day of the month of such Distribution Date or, if such 15th day is not a Business Day, the immediately preceding Business Day.

Distribution Account:  The separate Eligible Account created and maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee for the benefit of the Certificateholders and designated “The Bank of New York, in trust for registered holders of CWABS, Inc., Asset-Backed Certificates, Series 2005-BC2”.  Funds in the Distribution Account 

 

 

shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement.

Distribution Account Deposit Date:  As to any Distribution Date, 1:00 p.m. Pacific time on the Business Day immediately preceding such Distribution Date.

Distribution Date:  The 25th day of each calendar month after the initial issuance of the Certificates, or if such 25th day is not a Business Day, the next succeeding Business Day, commencing in May 2005.

Due Date:  With respect to any Mortgage Loan and Due Period, the due date for scheduled payments of interest and/or principal on that Mortgage Loan occurring in such Due Period as provided in the related Mortgage Note.

Due Period:  With respect to any Distribution Date, the period beginning on the second day of the calendar month preceding the calendar 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 federal or state chartered depository institution or trust company, the long-term unsecured debt obligations and short-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the debt obligations of such holding company) are rated by each Rating Agency in one of its two highest long-term and its highest short-term rating categories respectively, at the time any amounts are held on deposit therein, or (ii) an account or accounts in a depository institution or trust company in which such accounts are insured by the FDIC (to the limits established by the FDIC) and the uninsured deposits in which accounts are otherwise secured such that, as evidenced by an Opinion of Counsel delivered to the
Trustee and to each Rating Agency, the Certificateholders have a claim with respect to the funds in such account or a perfected first priority security interest against any collateral (which shall be limited to Permitted Investments) securing such funds that is superior to claims of any other depositors or creditors of the depository institution or trust company in which such account is maintained, or (iii) a trust account or accounts maintained with the corporate trust department of a federal or state chartered depository institution or trust company having capital and surplus of not less than $50,000,000, acting in its fiduciary capacity or (iv) any other account acceptable to the Rating Agencies.  Eligible Accounts may bear interest, and may include, if otherwise qualified under this definition, accounts maintained with the Trustee.

Eligible Repurchase Month:  As defined in Section 3.12(c) hereof.

ERISA:  The Employee Retirement Income Security Act of 1974, as amended.

ERISA-Restricted Certificates:  The Class A-R, Class C and Class P Certificates.

Event of Default:  As defined in Section 7.01 hereof.

Excess Cashflow:  With respect to any Distribution Date the sum of (i) the amount remaining after the distribution of interest to Certificateholders for such Distribution Date pursuant to Section 4.04(a)(xi), (ii) the amount remaining after the distribution of principal to 

 

 

Certificateholders for such Distribution Date pursuant to Section 4.04(d)(i)(K) or 4.04(d)(ii)(H) and (iii) the related Overcollateralization Reduction Amount, if any, for such Distribution Date.

Excess Overcollateralization Amount: With respect to any Distribution Date, the excess, if any, of the  Overcollateralized Amount on that Distribution Date over the Overcollateralization Target Amount.

Excess Proceeds:  With respect to any Liquidated Loan, any Liquidation Proceeds that are in excess of the sum of (i) the unpaid principal balance of such Liquidated Loan as of the date of such liquidation plus (ii) interest at the Mortgage Rate from the Due Date as to which interest was last paid or advanced to Certificateholders (and not reimbursed to the Master Servicer) up to the Due Date in the month in which such Liquidation Proceeds are required to be distributed on the Stated Principal Balance of such Liquidated Loan outstanding during each Due Period as to which such interest was not paid or advanced.

Expense Fee Rate:  The sum of (i) the Servicing Fee Rate and (ii) the Trustee Fee Rate.

Extra Principal Distribution Amount:  With respect to any Distribution Date and Loan Group, the lesser of (1) the Overcollateralization Deficiency Amount for such Distribution Date multiplied by a fraction, the numerator of which is the Principal Remittance Amount for such Loan Group and the denominator of which is the Principal Remittance Amount for both Loan Groups and (2) the Loan Group Excess Cashflow Allocation Amount for such Distribution Date available for payment thereof pursuant to Section 4.04(e)(i).

Fannie Mae:  The Federal National Mortgage Association, a federally chartered and privately owned corporation organized and existing under the Federal National Mortgage Association Charter Act, or any successor thereto.

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

FIRREA:  The Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

Five-Year Hybrid Mortgage Loan:  A Mortgage Loan having a Mortgage Rate that is fixed for 60 months after origination thereof before such Mortgage Rate becomes subject to adjustment.  

Fixed Rate Mortgage Loans:  The Mortgage Loans identified in the Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life of the related Mortgage, including any Mortgage Loans delivered in replacement thereof.

Freddie Mac:  The Federal Home Loan Mortgage Corporation, a corporate instrumentality of the United States created and existing under Title III of the Emergency Home Finance Act of 1970, as amended, or any successor thereto.

Gross Margin:  The percentage set forth in the related Mortgage Note for the Adjustable Rate Mortgage Loans to be added to the Index for use in determining the Mortgage Rate on each Adjustment Date, and which is set forth in the Mortgage Loan Schedule for the Adjustable Rate Mortgage Loans.

 

 

Group 1 Certificates:  The Class A-R, Class 1-A-1, and Class 1-A-2 Certificates.

Group 1 Mortgage Loans:  The group of Mortgage Loans identified in the related Mortgage Loan Schedule as “Group 1 Mortgage Loans”, including in each case any Mortgage Loans delivered in replacement thereof.

Group 1 Net WAC:  The weighted average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 1.

Group 1 Sequential Trigger Event: With respect to any Distribution Date before the 37th Distribution Date, exists if the aggregate amount of Realized Losses on the Group 1 Mortgage Loans divided by the aggregate Principal Balance of the Group 1 Mortgage Loans as of the Cut-off Date exceeds 2.75%, or with respect to any Distribution Date on or after the 37th Distribution Date, exists if a Trigger Event is in effect.  

Group 2 Certificates:  The Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates.

Group 2 Mortgage Loans:  The group of Mortgage Loans identified in the related Mortgage Loan Schedule as “Group 2 Mortgage Loans”, including any Mortgage Loans delivered in replacement thereof.

Group 2 Net WAC:  The weighted average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 2.

Index:  As to any Adjustable Rate Mortgage Loan on any Adjustment Date related thereto, the index for the adjustment of the Mortgage Rate set forth as such in the related Mortgage Note, such index in general being  the average of the London interbank offered rates for six-month U.S. dollar deposits in the London market, as set forth in The Wall Street Journal or some other source generally accepted in the residential mortgage loan origination business and specified in the related Mortgage Note, as most recently announced as of either 45 days prior to, or the first business day of the month immediately preceding the month of, such Adjustment Date or, if the Index ceases to be published in the original source or becomes unavailable for any reason, then the Index shall be a new index selected by the Master Servicer, based on comparable information.

Initial Adjustment Date:  As to any Adjustable Rate Mortgage Loan, the first Adjustment Date following the origination of such Mortgage Loan.

Initial Certificate Principal Balance:  With respect to any Certificate, the Certificate Principal Balance of such Certificate or any predecessor Certificate on the Closing Date.

Initial Mortgage Rate:  As to each Mortgage Loan, the Mortgage Rate in effect prior to the Initial Adjustment Date.

Insurance Proceeds:  Proceeds paid in respect of the Mortgage Loans pursuant to any Required Insurance Policy or any other insurance policy covering a Mortgage Loan, to the extent such proceeds are payable to the mortgagee under the Mortgage, the Master Servicer or the trustee under the deed of trust and are not applied to the restoration of the related Mortgaged 

 

 

Property or released to the Mortgagor in accordance with the procedures that the Master Servicer would follow in servicing mortgage loans held for its own account, in each case other than any amount included in such Insurance Proceeds in respect of Insured Expenses.

Insured Expenses:  Expenses covered by a Required Insurance Policy or any other insurance policy with respect to the Mortgage Loans.

Interest Carry Forward Amount:  With respect to (i) the Class 1-A-1 Certificates, the Class 1-A-1 Interest Carry Forward Amount, (ii) the Class 1-A-2 Certificates, the Class 1-A-2 Interest Carry Forward Amount (iii) the Class 2-A-1 Certificates, the Class 2-A-1 Interest Carry Forward Amount, (iv) the Class 2-A-2 Certificates, the Class 2-A-2 Interest Carry Forward Amount, (v) the Class 2-A-3 Certificates, the Class 2-A-3 Interest Carry Forward Amount (vi) the Class M-1 Certificates, the Class M-1 Interest Carry Forward Amount, (vii) the Class M-2 Certificates, the Class M-2 Interest Carry Forward Amount, (viii) the Class M-3 Certificates, the Class M-3 Interest Carry Forward Amount, (ix) the Class M-4 Certificates, the Class M-4 Interest Carry Forward Amount, (x) the Class M-5 Certificates, the Class M-5 Interest Carry Forward Amount, (xi) the Class M-6
Certificates, the Class M-6 Interest Carry Forward Amount, (xii) the Class M-7 Certificates, the Class M-7 Interest Carry Forward Amount, (xiii) the Class M-8 Certificates, the Class M-8 Interest Carry Forward Amount, and (xiv) the Class B Certificates, the Class B Interest Carry Forward Amount.

Interest Determination Date:  With respect to the Certificates (other than the Class A-R, Class C and Class P Certificates) for the first Accrual Period, April 27, 2005.  With respect to the Certificates (other than the Class A-R, Class C and Class P Certificates) and any Accrual Period thereafter, the second LIBOR Business Day preceding the commencement of such Accrual Period.

Interest Funds:  On any Distribution Date, the Interest Remittance Amount less the Trustee Fee for the Mortgage Loans for such Distribution Date.

Interest Remittance Amount:  With respect to the Mortgage Loans in each Loan Group and any Master Servicer Advance Date, the sum, without duplication, of (i) all scheduled interest collected during the related Due Period with respect to the Mortgage Loans less the related Servicing Fee, (ii) interest payments on any Principal Prepayments received during the related Prepayment Period other than Prepayment Interest Excess, (iii) all related Advances relating to interest with respect to the Mortgage Loans, (iv) all Compensating Interest with respect to the Mortgage Loans, (v) Liquidation Proceeds and Subsequent Recoveries with respect to the Mortgage Loans collected during the related Due Period (to the extent such Liquidation Proceeds and Subsequent Recoveries relate to interest), and (vi) for the Master Servicer Advance Date in May 2005, the Seller Shortfall
Interest Requirement for such Master Servicer Advance Date (if any), less all Nonrecoverable Advances relating to interest reimbursed during the related Due Period.

Latest Possible Maturity Date:  The 360th Distribution Date.

LIBOR Business Day:  Any day on which banks in the City of London, England and New York are open and conducting transactions in foreign currency and exchange.

 

 

Liquidated Loan:  With respect to any Distribution Date, a defaulted Mortgage Loan that has been liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale or other realization as provided by applicable law governing the real property subject to the related Mortgage and any security agreements and as to which the Master Servicer has certified (in accordance with Section 3.12) in the related Prepayment Period that it has received all amounts it expects to receive in connection with such liquidation.

Liquidation Proceeds:  Amounts, including Insurance Proceeds, received in connection with the partial or complete liquidation of Mortgage Loans, whether through trustee’s sale, foreclosure sale or otherwise or amounts received in connection with any condemnation or partial release of a Mortgaged Property and any other proceeds received in connection with an REO Property, less the sum of related unreimbursed Advances, Servicing Fees and Servicing Advances.

Loan Group:  Any of Loan Group 1 or Loan Group 2.

Loan Group Characteristics:  The characteristics for each Loan Group identified under the caption “The Mortgage Pool” in the Prospectus Supplement.

Loan Group 1:  The Group 1 Mortgage Loans.

Loan Group 2:  The Group 2 Mortgage Loans.

Loan Group Excess Cashflow Allocation Amount:  With respect to any Distribution Date and Loan Group, the product of (i) the Excess Cashflow for such Distribution Date multiplied by (ii) a fraction, the numerator of which is the Principal Remittance Amount for such Loan Group for such Distribution Date and the denominator of which is the sum of the Principal Remittance Amount for both Loan Groups.

Loan-to-Value Ratio:  The fraction, expressed as a percentage, the numerator of which is the original principal balance of the related Mortgage Loan and, in the case of a second lien Mortgage Loan, the unpaid principal balance of the related first lien mortgage loan at the time of origination of such second lien Mortgage Loan, and the denominator of which is the Appraised Value of the related Mortgaged Property.

Marker Rate: With respect to the Class C Certificates and any Distribution Date, a per annum rate equal to two (2) multiplied by the weighted average of the Pass Through Rates for each REMIC I Regular Interest (other than REMIC I Regular Interest LT-AA, REMIC 1 Regular Interest LT-1SUB, REMIC 1 Regular Interest LT-1GRP, REMIC Regular Interest LT-2SUB, REMIC 1 Regular Interest LT-2GRP, REMIC 1 Regular Interest LT-XX, REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R), with the rates on each such REMIC I Regular Interest subject to a cap equal to the Pass Through Rate for the Corresponding Class for such REMIC I Regular Interest, and the rate on REMIC I Regular Interest LT-ZZ subject to a cap of zero for purposes of this calculation; provided, however, for purposes of this calculation each such rate shall be multiplied by a fraction., the numerator
of which is the actual number of days in the accrual period and the denominator of which is 30.

 

 

Master Servicer:  Countrywide Home Loans Servicing LP, a Texas limited partnership, and its successors and assigns, in its capacity as master servicer hereunder.

Master Servicer Advance Date:  As to any Distribution Date, the Business Day immediately preceding such Distribution Date.

Maximum Mortgage Rate:  With respect to each Adjustable Rate Mortgage Loan, the maximum rate of interest set forth as such in the related Mortgage Note.

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

MERS Mortgage Loan:  Any Mortgage Loan registered with MERS on the MERS® System.

MERS® System:  The system of recording transfers of mortgages electronically maintained by MERS.

MIN:  The Mortgage Identification Number for any MERS Mortgage Loan.

Minimum Mortgage Rate:  With respect to each Adjustable Rate Mortgage Loan, the minimum rate of interest set forth as such in the related Mortgage Note.

MOM Loan:  Any Mortgage Loan, as to which MERS is acting as mortgagee, solely as nominee for the originator of such Mortgage Loan and its successors and assigns.

Monthly Statement:  The statement delivered to the Certificateholders pursuant to Section 4.05.

Moody’s: Moody’s Investors Service, Inc., and its successors.

Mortgage:  The mortgage, deed of trust or other instrument creating a first or second lien on or first or second priority ownership interest in an estate in fee simple in real property securing a Mortgage Note.

Mortgage File:  The mortgage documents listed in Section 2.01 hereof pertaining to a particular Mortgage Loan and any additional documents delivered to the Trustee to be added to the Mortgage File pursuant to this Agreement.

Mortgage Loan:  Such of the Group 1 Mortgage Loans and Group 2 Mortgage Loans transferred and assigned to the Trustee pursuant to the provisions hereof as from time to time are held as a part of the Trust Fund (including any REO Property), the mortgage loans so held being identified in the Mortgage Loan Schedule, notwithstanding foreclosure or other acquisition of title of the related Mortgaged Property.  Any Mortgage Loan subject to repurchase by Countrywide, on behalf of itself and each other Seller, or Master Servicer as provided in this Agreement, shall continue to be a Mortgage Loan hereunder until the Purchase Price with respect thereto has been paid to the Trust Fund.

 

 

Mortgage Loan Schedule:  The list of Mortgage Loans (as from time to time amended by the Master Servicer to reflect the deletion of Deleted Mortgage Loans and the addition of Replacement Mortgage Loans pursuant to the provisions of this Agreement) transferred to the Trustee as part of the Trust Fund and from time to time subject to this Agreement, attached hereto as Exhibit F-1, setting forth the following information with respect to each Mortgage Loan: 

			(i)        the loan number;

            

            (ii)       the Loan Group;

			(iii)      the Appraised Value;

            (iv)      the Initial Mortgage Rate;

            (v)       the maturity date;

			(vi)      the original principal balance;

			(vii)     the Cut-off Date Principal Balance of each of Loan Group 1 and Loan Group 2 and the aggregate thereof;

			(viii)    the first payment date of the Mortgage Loan;

             

			(ix)       the Scheduled Payment in effect as of the Cut-off Date;

			(x)        the Loan-to-Value Ratio at origination;

			(xi)       a code indicating whether the residential dwelling at the time of origination was represented to be owner-occupied;

			(xii)       a code indicating whether the residential dwelling is either (a) a detached single family dwelling (b) a condominium unit or (c) a two to four unit residential property;

			(xiii)      a code indicating whether the Mortgage Loan is a Countrywide Mortgage Loan or a Park Sienna Mortgage Loan;

			(xiv)      a code indicating whether the Mortgage Loan is a first or second lien Mortgage Loan;

			(xv)       the type and term of any Prepayment Charge;

			(xvi)      with respect to each Adjustable Rate Mortgage Loan;

			(a)         the frequency of each Adjustment Date;

			(b)         the next Adjustment Date;
(c)         the Maximum Mortgage Rate;

			 

			
 

 

			(d)         the Minimum Mortgage Rate;

			(e)         the Mortgage Rate as of the Cut-off Date;

			(f)          the related Periodic Rate Cap; and

			(g)         the Gross Margin;

			(xvii)     the purpose of the Mortgage Loan.

             

			Mortgage Note:  The original executed note or other evidence of indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

Mortgage Pool:  The aggregate of the Mortgage Loans identified in the Mortgage Loan Schedule.

Mortgage Rate:  The annual rate of interest borne by a Mortgage Note from time to time.

Mortgaged Property:  The underlying property securing a Mortgage Loan.

Mortgagor:  The obligors on a Mortgage Note.

Net Mortgage Rate:  As to each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage Rate less the Servicing Fee Rate.

Net Rate Cap: For any Distribution Date, (i) With respect to the Class 1-A Certificates, the Group 1 Net WAC, (ii) with respect to the Class 2-A Certificates, the Group 2 Net WAC, and (iii) with respect to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates, the weighted average of the Group 1 Net WAC and Group 2 Net WAC (weighted (x) in the case of the Group 1 Net WAC, on the positive difference (if any) of the Stated Principal Balance of the Mortgage Loans in Loan Group 1 over the outstanding aggregate Certificate Principal Balance of the Class 1-A Certificates and (y) in the case of the Group 2 Net WAC, on the positive difference (if any) of the Stated Principal Balance of the Mortgage Loans in Loan Group 2 over the outstanding aggregate Certificate Principal Balance the Class 2-A Certificates),
in the case of each of (i), (ii) and (iii) above, adjusted to an effective rate reflecting the calculation of interest on the basis of the actual number of days elapsed during the related interest accrual period and a 360-day year. For federal income tax purposes, the equivalent of clause (i) above shall be expressed as the weighted average of the Uncertificated REMIC I Pass-Through Rate on REMIC I Regular Interest LT-1GRP, weighted on the basis of the Uncertificated Principal Balance of such REMIC I Regular Interest. For federal income tax purposes, the equivalent of clause (ii) above shall be expressed as the weighted average of the Uncertificated REMIC I Pass-Through Rate on REMIC I Regular Interest LT-2GRP, weighted on the basis of the Uncertificated Principal Balance of such REMIC I Regular Interest. For federal income tax purposes, the equivalent of clause (iii) above shall be expressed as the weighted average of the Uncertificated REMIC I Pass-Through Rates on (a) REMIC I
Regular Interest LT-1SUB, subject to a cap and a floor equal to the Group 1 Net WAC Rate and (b) REMIC I Regular Interest LT-2SUB, subject to a cap and a floor equal to the Group 

 

 

2 Net WAC Rate; in each case weighted on the basis of the Uncertificated Principal Balance of such REMIC I Regular Interests.

Net Rate Carryover:  With respect to any Distribution Date, an amount equal to the sum of (i) the Class 1-A-1 Interest Carryover Amount for such Distribution Date (if any), (ii) the Class 1-A-2 Interest Carryover Amount for such Distribution Date (if any), (iii) the Class 2-A-1, Interest Carryover Amounts for such Distribution Date (if any), (iv) the Class 2-A-2 Interest Carryover Amount for such Distribution Date (if any), (v) the Class 2-A-3 Interest Carryover Amount for such Distribution Date (if any), (vi) the Class M-1 Interest Carryover Amount for such Distribution Date (if any), (vii) the Class M-2 Interest Carryover Amount for such Distribution Date (if any), (viii) the Class M-3 Interest Carryover Amount for such Distribution Date (if any), (ix) the Class M-4 Interest Carryover Amount for such Distribution Date (if any), (x) the Class M-5 Interest
Carryover Amount for such Distribution Date (if any), (xi) the Class M-6 Interest Carryover Amount for such Distribution Date (if any), (xii) the Class M-7 Interest Carryover Amount for such Distribution Date (if any), (xiii) the Class M-8 Interest Carryover Amount for such Distribution Date (if any), and (xiv) the Class B Interest Carryover Amount for such Distribution Date (if any); provided that when the term Net Rate Carryover is used with respect to one Class of Certificates (other than the Class A-R, Class C and Class P Certificates), it shall mean such carryover amount listed in clauses (i), (ii), (iii) (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii) or (xiv) as applicable, with the same Class designation.  The Class A-R, Class C and Class P Certificates shall not accrue any Net Rate Carryover.

Non-Book-Entry Certificate:  Any Certificate other than a Book-Entry Certificate.

Nonrecoverable Advance:  Any portion of an Advance previously made or proposed to be made by the Master Servicer that, in the good faith judgment of the Master Servicer, will not or, in the case of a current delinquency, would not, be ultimately recoverable by the Master Servicer from the related Mortgagor, related Liquidation Proceeds or otherwise.

OC Floor:  For any Distribution Date, 0.50% of the Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.

Officer’s Certificate:  A certificate (i) in the case of the Depositor, signed by the Chairman of the Board, the Vice Chairman of the Board, the President, a Managing Director, a Vice President (however denominated), an Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant Secretaries of the Depositor, (ii) in the case of the Master Servicer, (x) signed by the President, an Executive Vice President, a Vice President, an Assistant Vice President, the Treasurer, or one of the Assistant Treasurers or Assistant Secretaries or Countrywide GP, Inc., its general partner, or (y) if provided for in this Agreement, signed by a Servicing Officer, as the case may be, and delivered to the Depositor and the Trustee, as the case may be, as required by this Agreement.

One-Month LIBOR:  With respect to any Accrual Period for the Certificates (other than the Class A-R, Class P and Class C Certificates), the rate determined by the Trustee on the related Interest Determination Date on the basis of the rate for U.S. dollar deposits for one month that appears on Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such Interest Determination Date; provided that the parties hereto acknowledge that One-Month LIBOR 

 

 

calculated for the first Accrual Period shall equal 3.06438% per annum.  If such rate does not appear on such page (or such other page as may replace that page on that service, or if such service is no longer offered, such other service for displaying One-Month LIBOR or comparable rates as may be reasonably selected by the Trustee), One-Month LIBOR for the applicable Accrual Period will be the Reference Bank Rate.  If no such quotations can be obtained by the Trustee and no Reference Bank Rate is available, One-Month LIBOR will be One-Month LIBOR applicable to the preceding Accrual Period for such Certificates.

One-Year Hybrid Mortgage Loan:  A Mortgage Loan having a Mortgage Rate that is fixed for 12 months after origination thereof before such Mortgage Rate becomes subject to adjustment.

Opinion of Counsel:  A written opinion of counsel, who may be counsel for the Depositor or the Master Servicer, reasonably acceptable to each addressee of such opinion; provided that with respect to Section 6.04 or 10.01, or the interpretation or application of the REMIC Provisions, such counsel must (i) in fact be independent of the Depositor and the Master Servicer, (ii) not have any direct financial interest in the Depositor or the Master Servicer or in any affiliate of either, and (iii) not be connected with the Depositor or the Master Servicer as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

Optional Termination:  The termination of the Trust Fund provided hereunder pursuant to the liquidation of the Trust Fund by the Trustee upon the surrender of the Class C Certificateholders of their interests or the purchase of the Mortgage Loans by the Master Servicer pursuant to the last sentence of Section 9.01 hereof.

Optional Termination Date:  Any Distribution Date on which the Stated Principal Balance of the Mortgage Loans and REO Properties in the Trust Fund is equal to or less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.

Original Mortgage Loan:  The mortgage loan refinanced in connection with the origination of a Refinancing Mortgage Loan.

Original Value:  The value of the property underlying a Mortgage Loan based, in the case of the purchase of the underlying Mortgaged Property, on the lower of an appraisal satisfactory to the Master Servicer or the sales price of such property or, in the case of a refinancing, on an appraisal satisfactory to the Master Servicer.

OTS:  The Office of Thrift Supervision.

Outstanding:  With respect to the Certificates as of any date of determination, all Certificates theretofore executed and authenticated under this Agreement except:

(i)         Certificates theretofore canceled by the Trustee or delivered to the Trustee for cancellation; and

(ii)         Certificates in exchange for which or in lieu of which other Certificates have been executed and delivered by the Trustee pursuant to this Agreement.

 

 

Outstanding Mortgage Loan:  As of any Distribution Date, a Mortgage Loan with a Stated Principal Balance greater than zero that was not the subject of a Principal Prepayment in full, and that did not become a Liquidated Loan, prior to the end of the related Prepayment Period.

Overcollateralized Amount:  For any Distribution Date, the amount, if any, by which (x) the aggregate Stated Principal Balance of the Mortgage Loans as of the last day of the related Due Period exceeds (y) the aggregate Certificate Principal Balance of the Senior Certificates and Subordinate Certificates as of such Distribution Date (after giving effect to distributions in respect of the Principal Remittance Amount on such Distribution Date).

Overcollateralization Deficiency Amount: With respect to any Distribution Date, the amount, if any, by which the Overcollateralization Target Amount exceeds the Overcollateralized Amount for such Distribution Date (after giving effect to distributions in respect of the Principal Remittance Amount for such Distribution Date).

Overcollateralization Reduction Amount:  For any Distribution Date for which the Excess Overcollateralization Amount is, or would be, after taking into account all other distributions to be made on that Distribution Date, greater than zero, an amount equal to the lesser of (i) the Excess Overcollateralization Amount for that Distribution Date and (ii) the Principal Remittance Amount for that Distribution Date.

Overcollateralization Target Amount: (a) on each Distribution Date prior to the Stepdown Date, 1.95% of the Cut-off Date Pool Principal Balance, and (b) on and after the Stepdown Date, an amount equal to 3.90% of the aggregate Stated Principal Balance of the Mortgage Loans in the Mortgage Pool for the current Distribution Date, subject to a minimum amount equal to the OC Floor; provided, however, that if on any Distribution Date, a Trigger Event is in effect, the Overcollateralization Target Amount will be the Overcollateralization Target Amount on the Distribution Date immediately preceding such Distribution Date.  Notwithstanding the foregoing on and after any Distribution Date following the reduction of the aggregate Certificate Principal Balance of the Senior Certificates and Subordinate Certificates to zero, the Overcollateralization Target Amount shall be zero.

Ownership Interest:  As to any Certificate, any ownership 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.

Park Sienna:  Park Sienna LLC, a Delaware limited liability company, and its successors and assigns, in its capacity as the seller of the Park Sienna Mortgage Loans to the Depositor.

Park Sienna Mortgage Loans:  The Mortgage Loans identified as such on the Mortgage Loan Schedule for which Park Sienna is the applicable Seller.

Pass-Through Rate: With respect to the Class 1-A-1 Certificates, the Class 1-A-1 Pass-Through Rate; with respect to the Class 1-A-2 Certificates, the Class 1-A-2 Pass-Through Rate, with respect to the Class 2-A-1 Certificates, the Class 2-A-1 Pass-Through Rate; with respect to the Class 2-A-2 Certificates, the Class 2-A-2 Pass-Through Rate, with respect to the Class 2-A-3 

 

 

Certificates, the Class 2-A-3 Pass-Through Rate with respect to the Class M-1 Certificates, the Class M-1 Pass-Through Rate; with respect to the Class M-2 Certificates, the Class M-2 Pass-Through Rate; with respect to the Class M-3 Certificates, the Class M-3 Pass-Through Rate; with respect to the Class M-4 Certificates, the Class M-4 Pass-Through Rate; with respect to the Class M-5 Certificates, the Class M-5 Pass-Through Rate; with respect to the Class M-6 Certificates, the Class M-6 Pass-Through Rate; with respect to the Class M-7 Certificates, the Class M-7 Pass-Through Rate; with respect to the Class M-8 Certificates, the Class M-8 Pass-Through Rate; with respect to the Class B Certificates, the Class B Pass-Through Rate and with respect to the Class C Certificates, the Class C Pass-Through Rate.

Percentage Interest:   With respect to any Certificate (other than the Class P, Class C or Class A-R Certificates), a fraction, expressed as a percentage, the numerator of which is the Certificate Principal Balance represented by such Certificate and the denominator of which is the aggregate Certificate Principal Balance of the related Class.  With respect to the Class C, Class P and Class A-R Certificates, the portion of the Class evidenced thereby, expressed as a percentage, as stated on the face of such Certificate.

Periodic Rate Cap:  As to substantially all Adjustable Rate Mortgage Loans and the related Mortgage Notes, the provision therein that limits permissible increases and decreases in the Mortgage Rate on any Adjustment Date to not more than three percentage points.

Permitted Investments:  At any time, any one or more of the following obligations and securities:

(i)         obligations of the United States or any agency thereof, provided such obligations are backed by the full faith and credit of the United States;

(ii)         general obligations of or obligations guaranteed by any state of the United States or the District of Columbia receiving the highest long-term debt rating of each Rating Agency, or such lower rating as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by such Rating Agency;

(iii)        [Reserved];

(iv)        commercial or finance company paper which is then receiving the highest commercial or finance company paper rating of each Rating Agency, or such lower rating as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by such Rating Agency;

(v)         certificates of deposit, demand or time deposits, or bankers’ acceptances issued by any depository institution or trust company incorporated under the laws of the United States or of any state thereof and subject to supervision and examination by federal and/or state banking authorities, provided that the commercial paper and/or long term unsecured debt obligations of such depository institution or trust company (or in the case of the principal depository institution in a holding company system, the commercial paper or long-term unsecured debt obligations of such holding company) are then rated 

 

 

one of the two highest long-term and the highest short-term ratings of each such Rating Agency for such securities, or such lower ratings as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by such Rating Agency;

(vi)        repurchase obligations with respect to any security described in clauses (i) and (ii) above, in either case entered into with a depository institution or trust company (acting as principal) described in clause (v) above;

(vii)       securities (other than stripped bonds, stripped coupons or instruments sold at a purchase price in excess of 115% of the face amount thereof) bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any state thereof which, at the time of such investment, have one of the two highest long term ratings of each Rating Agency (such rating shall be the highest commercial paper rating of S&P for any such securities) or such lower rating as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by such Rating Agency;

(viii)      interests in any money market fund which at the date of acquisition of the interests in such fund and throughout the time such interests are held in such fund has the highest applicable long term rating by each Rating Agency or such lower rating as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by such Rating Agency;

(ix)        short term investment funds sponsored by any trust company or national banking association incorporated under the laws of the United States or any state thereof which on the date of acquisition has been rated by each Rating Agency in their respective highest applicable rating category or such lower rating as each Rating Agency has confirmed in writing will not result in the downgrading or withdrawal of the ratings then assigned to the Certificates by such Rating Agency; and

(x)        such other relatively risk free investments having a specified stated maturity and bearing interest or sold at a discount acceptable to each Rating Agency as will not result in the downgrading or withdrawal of the rating then assigned to the Certificates by any Rating Agency, as evidenced by a signed writing delivered by each Rating Agency;

(xi)        provided, that no such instrument shall be a Permitted Investment if such instrument (i) evidences the right to receive interest only payments with respect to the obligations underlying such instrument, (ii) is purchased at a premium or (iii) is purchased at a deep discount; provided further that no such instrument shall be a Permitted Investment (A) if such instrument evidences principal and interest payments derived from obligations underlying such instrument and the interest payments with respect to such instrument provide a yield to maturity of greater than 120% of the yield to maturity at par of such underlying obligations, or (B) if it may be redeemed at a price below the purchase price (the foregoing clause (B) not to apply to investments in units of money market funds pursuant to clause (vii) above); provided
further that no amount 

 

 

beneficially owned by any REMIC (including, without limitation, any amounts collected by the Master Servicer but not yet deposited in the Certificate Account) may be invested in investments (other than money market funds) treated as equity interests for Federal income tax purposes, unless the Master Servicer shall receive an Opinion of Counsel, at the expense of Master Servicer, to the effect that such investment will not adversely affect the status of any such REMIC as a REMIC under the Code or result in imposition of a tax on any such REMIC.  Permitted Investments that are subject to prepayment or call may not be purchased at a price in excess of par.

Permitted Transferee:  Any person other than (i) the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, International Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’ cooperatives described in section 521 of the Code) that is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by section 511 of the Code on unrelated business taxable income) on any excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to any Class A-R Certificate, (iv) rural electric and telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” as defined in Section 775 of the Code, (vi) a Person that is not a citizen or
resident of the United States, a corporation, partnership, or other entity (treated as a corporation or a partnership for federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia, or an estate whose income from sources without the United States is includible 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, 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 authority to control all substantial decisions of the trustor unless such Person has furnished the transferor and the Trustee with a duly completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so designated by the Trustee based upon an Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause any REMIC to fail to qualify as a REMIC at any time that any Certificates are Outstanding.  The terms “United States,” “State” and “International Organization” shall have the meanings set forth in section 7701 of the Code or successor provisions.  A corporation will not be treated as an instrumentality of the United States or of any State or political subdivision thereof for these purposes if all of its activities are subject to tax and, with the exception of the Federal Home Loan Mortgage Corporation, a majority of its board of directors is not selected by such government unit.

Person:  Any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government, or any agency or political subdivision thereof.

Pool Stated Principal Balance:  As to any Distribution Date, the aggregate of the Stated Principal Balances of the Mortgage Loans which were Outstanding Mortgage Loans as of the first day of the related Due Period (after giving effect to Principal Prepayments in the Prepayment Period including during such Due Period).

 

 

Prepayment Assumption:  The applicable rate of prepayment, as described in the Prospectus Supplement relating to the Senior Certificates and certain classes of the Subordinate Certificates.

Prepayment Charge: As to a Mortgage Loan, any charge paid by a Mortgagor in connection with certain partial prepayments and all prepayments in full made within the related Prepayment Charge Period, the Prepayment Charges with respect to each applicable Mortgage Loan being identified in the Prepayment Charge Schedule.

Prepayment Charge Period: As to any Mortgage Loan the period of time during which a Prepayment Charge may be imposed.

Prepayment Charge Schedule: As of any date, the list of Prepayment Charges included in the Trust Fund on that date, (including the prepayment charge summary attached thereto). The Prepayment Charge Schedule shall contain the following information with respect to each Prepayment Charge:

(i)         the Mortgage Loan account number;

(ii)        a code indicating the type of Prepayment Charge;

(iii)       the state of origination in which the related Mortgage Property is located;

(iv)       the first date on which a Monthly Payment is or was due under the related Mortgage Note;

(v)        the term of the Prepayment Charge;

(vi)       the original principal amount of the related Mortgage Loan; and

(vii)      the Cut-off Date Principal Balance of the related Mortgage Loan.

The Prepayment Charge Schedule shall be amended from time to time by the Master Servicer in accordance with this Agreement.

Prepayment Interest Excess: With respect to any Distribution Date, for each Mortgage Loan that was the subject of a Principal Prepayment during the portion of the Prepayment Period from the related Due Date to the end of such Prepayment Period, any payment of interest received in connection therewith (net of any applicable Servicing Fee) representing interest accrued for any portion of such month of receipt.

Prepayment Interest Shortfall:  With respect to any Distribution Date, for each Mortgage Loan that was the subject of a partial Principal Prepayment, a Principal Prepayment in full, or that became a Liquidated Loan during the portion of the Prepayment Period from the beginning of such Prepayment Period to the related Due Date in such Prepayment Period (in each case, other than a Principal Prepayment in full resulting from the purchase of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof), the amount, if any, by which (i) one month’s interest at the applicable Net Mortgage Rate on the Stated Principal Balance of such 

 

 

Mortgage Loan immediately prior to such prepayment (or liquidation) or in the case of a partial Principal Prepayment on the amount of such prepayment (or liquidation proceeds) exceeds (ii) the amount of interest paid or collected in connection with such Principal Prepayment or such liquidation proceeds.

Prepayment Period:  As to any Distribution Date and Due Date, the period beginning with the opening of business on the sixteenth day of the calendar month preceding the month in which such Distribution Date occurs (or, with respect to the first Distribution Date, the period from May 1, 2005) and ending on the close of business on the fifteenth day of the month in which such Distribution Date occurs. 

Prime Rate: The prime commercial lending rate of The Bank of New York, as publicly announced to be in effect from time to time.  The Prime Rate shall be adjusted automatically, without notice, on the effective date of any change in such prime commercial lending rate.  The Prime Rate is not necessarily the Bank of New York’s lowest rate of interest.

Principal Distribution Amount:  With respect to any Distribution Date and a Loan Group, the sum of (i) the Principal Remittance Amount for such Loan Group for such Distribution Date and (ii) the Extra Principal Distribution Amount for such Loan Group for such Distribution Date minus (iii) the amount of any related Overcollateralization Reduction Amount for that Distribution Date.

Principal Prepayment:  Any Mortgagor payment or other recovery of (or proceeds with respect to) principal on a Mortgage Loan (including loans purchased or repurchased under Sections 2.02, 2.03, 2.04, 3.12 and 9.01 hereof) that is received in advance of its scheduled Due Date and is not accompanied by an amount as to interest representing scheduled interest due on any date or dates in any month or months subsequent to the month of prepayment.  Partial Principal Prepayments shall be applied by the Master Servicer in accordance with the terms of the related Mortgage Note.

Principal Remittance Amount:  As to any Distribution Date and the Mortgage Loans in a Loan Group, (a) the sum, without duplication, of: (i) the scheduled principal due during the related Due Period and collected on or before the related Determination Date or advanced on or before the related Master Servicer Advance Date, (ii) Principal Prepayments collected in the related Prepayment Period, (iii) the Stated Principal Balance of each Mortgage Loan that was repurchased by Countrywide, on behalf of itself and each other Seller, or purchased by the Master Servicer, (iv) the amount, if any, by which the aggregate unpaid principal balance of any Replacement Mortgage Loans is less than the aggregate unpaid principal balance of any Deleted Mortgage Loans delivered by Countrywide (on behalf of itself and each other Seller) in connection with a substitution of a Mortgage
Loan and (v) all Liquidation Proceeds and Subsequent Recoveries collected during the related Due Period (to the extent such Liquidation Proceeds related to principal); less (b) all non-recoverable Advances relating to principal and certain expenses reimbursed during the related Due Period.

Private Certificates:  The Class M-3, Class M-4, Class C and Class P Certificates.

 

 

Prospectus Supplement:  The Prospectus Supplement dated April 22, 2005, relating to the public offering of the Senior Certificates and certain classes of the Subordinate Certificates offered thereby.

PUD:  A Planned Unit Development.

Purchase Price:  With respect to any Mortgage Loan (x) required to be (1) repurchased by Countrywide (on behalf of itself and each other Seller) or purchased by the Master Servicer, as applicable, pursuant to Section 2.02, 2.03 or 3.12 hereof or (2) repurchased by the Depositor pursuant to Section 2.04 hereof, or (y) that the Master Servicer has a right to purchase pursuant to Section 3.12 hereof, an amount equal to the sum of (i) 100% of the unpaid principal balance (or, if such purchase or repurchase, as the case may be, is effected by the Master Servicer, the Stated Principal Balance) of the Mortgage Loan as of the date of such purchase, (ii) accrued interest thereon at the applicable Mortgage Rate (or, if such purchase or repurchase, as the case may be, is effected by the Master Servicer, at the Net Mortgage Rate) from (a) the date through which interest
was last paid by the Mortgagor (or, if such purchase or repurchase, as the case may be, is effected by the Master Servicer, the date through which interest was last advanced and not reimbursed by the Master Servicer) to (b) the Due Date in the month in which the Purchase Price is to be distributed to Certificateholders, and (iii) costs and damages incurred by the Trust Fund in connection with a repurchase pursuant to Section 2.03 hereof that arises out of a violation of any predatory or  abusive lending law which also constitutes an actual breach of representation (xxxiv) of Section 2.03(b) hereof.

Rating Agency:  Each of S&P and Moody’s.  If any such organization or its successor is no longer in existence, “Rating Agency” shall be a nationally recognized statistical rating organization, or other comparable Person, designated by the Depositor, notice of which designation shall be given to the Trustee.  References herein to a given rating category of a Rating Agency shall mean such rating category without giving effect to any modifiers.

Realized Loss:  With respect to each Liquidated Loan, an amount (not less than zero or more than the Stated Principal Balance of the Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated Principal Balance of such Liquidated Loan as of the date of such liquidation, minus (ii) the Liquidation Proceeds, if any, received in connection with such liquidation during the month in which such liquidation occurs, to the extent applied as recoveries of principal of the Liquidated Loan. With respect to each Mortgage Loan that has become the subject of a Deficient Valuation, (i) if the value of the related Mortgaged Property was reduced below the principal balance of the related Mortgage Note, the amount by which the value of the Mortgaged Property was reduced below the principal balance of the related Mortgage Note, and (ii) if the principal amount due
under the related Mortgage Note has been reduced, 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 plus any reduction in the interest component of the Scheduled Payments.  With respect to each Mortgage Loan that has become the subject of a Debt Service Reduction and any Distribution Date, the amount, if any, by which the related Scheduled Payment was reduced.  The amount of a Realized Loss on a Liquidated Loan will be reduced by the amount of Subsequent Recoveries received with respect to such Liquidated Loan.

 

 

Record Date:   With respect to any Distribution Date and the Certificates, other than the Class A-R, Class C and Class P Certificates, the Business Day immediately preceding such Distribution Date, or if such Certificates are no longer Book-Entry Certificates, the last Business Day of the month preceding the month of such Distribution Date.  With respect to the Class A-R, Class C and Class P Certificates, the last Business Day of the month preceding the month of a Distribution Date.

Reference Bank Rate:  With respect to any Accrual Period for the Senior Certificates and Subordinate Certificates (other than the Class A-R, Class P and Class C Certificates), the arithmetic mean (rounded upwards, if necessary, to the nearest whole multiple of 0.03125%) of the offered rates for United States dollar deposits for one month that are quoted by the Reference Banks as of 11:00 a.m., New York City time, on the related Interest Determination Date to prime banks in the London interbank market for a period of one month in amounts approximately equal to the aggregate Certificate Principal Balance of the Senior Certificates and Subordinate Certificates on such Interest Determination Date, provided that at least two such Reference Banks provide such rate.  If fewer than two offered rates appear, the Reference Bank Rate will be the arithmetic mean  (rounded
upwards, if necessary, to the nearest whole multiple of 0.03125%) of the rates quoted by one or more major banks in New York City, selected by the Trustee, as of 11:00 a.m., New York City time, on such date for loans in U.S. dollars to leading European banks for a period of one month in amounts approximately equal to the aggregate Certificate Principal Balance of the Senior Certificates and Subordinate Certificates on such Interest Determination Date.

Reference Banks:  Barclays Bank PLC, Deutsche Bank and NatWest, N.A., provided that if any of the foregoing banks are not suitable to serve as a Reference Bank, then any leading banks selected by the Trustee which are engaged in transactions in Eurodollar deposits in the international Eurocurrency market (i) with an established place of business in London, England, (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 Trustee.

Refinancing Mortgage Loan:  Any Mortgage Loan originated in connection with the refinancing of an existing mortgage loan.

Regular Certificate:  Any Certificate other than a Class A-R Certificate.

Relief Act:  The Servicemembers Civil 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 a portion of the primary trust created hereby and to be administered hereunder, with respect to which a separate REMIC election is to be made, consisting of: (i) the Mortgage Loans and the related Mortgage Files; (ii) all payments on and collections in respect of the Mortgage Loans due after the Cut-off Date (other than Monthly Payments due in March 2005 and reflected in the Cut-off Date Principal Balance) as shall be on deposit in the Certificate Account and identified as belonging to the Trust Fund; (iii) property which secured a Mortgage Loan and which has been acquired for 

 

 

the benefit of the Certificateholders by foreclosure or deed in lieu of foreclosure; (iv) Required Insurance Policies pertaining to the Mortgage Loans, if any; and (v) all proceeds of clauses (i) through (iv) above.  The Corridor Contracts and Carryover Reserve Fund will not be assets of REMIC I.

REMIC I Interest Loss Allocation Amount: With respect to any Distribution Date, an amount equal to (a) the product of (i) the aggregate Uncertificated Principal Balance of the REMIC I Regular Interests then outstanding and (ii) the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT-AA minus the Marker Rate, divided by (b) 12.

REMIC I Marker Allocation Percentage: 50% of any amount payable or loss attributable from the Mortgage Loans, which shall be allocated to REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC Regular Interest LT-M8, REMIC I Regular Interest LT-B, REMIC I Regular Interest LT-ZZ, REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R.

REMIC I Overcollateralized Amount: With respect to any date of determination, (i) 0.50% of the aggregate Uncertificated Principal Balances of the REMIC I Regular Interests minus (ii) the Uncertificated Principal Balances of REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC Regular Interest LT-M8, and REMIC I Regular Interest LT-B, in each case as of such date of determination.

REMIC I Overcollateralization Target Amount: 0.50% of the Overcollateralization Target Amount.

REMIC I Principal Loss Allocation Amount: With respect to any Distribution Date, an amount equal to the product of (i) the aggregate Stated Principal Balance of the Mortgage Loans then outstanding and (ii) 1 minus a fraction, the numerator of which is two times the sum of the Uncertificated Principal Balances of REMIC I Regular Interests LT-1A1, LT-1A2, LT-2A1, LT-2A2, LT-2A3, LT-M1, LT-M2, LT-M3, LT-M4, LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M7, LT-M8, and LT-B and the denominator of which is the sum of the Uncertificated Principal Balances of REMIC I Regular Interests LT-1A1, LT-1A2, LT-2A1, LT-2A2, LT-2A3, LT-M1, LT-M2, LT-M3, LT-M4, LT-M5, LT-M6, LT-M7, LT-M8, LT-B and LT-ZZ.

REMIC I Regular Interests: REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest 

 

 

LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 Regular Interest LT-M6, REMIC 1 Regular Interest LT-M-7, REMIC Regular Interest LT-M8,REMIC I Regular Interest LT-B, REMIC I Regular Interest LT-ZZ, REMIC, REMIC I Regular Interest LT-P, REMIC I Regular Interest LT-R, REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest  LT-1GRP, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT-2GRP and REMIC I Regular Interest LT-XX.

REMIC I Regular Interest LT-AA: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-1A1: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-1A2: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-2A1: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-2A2: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-2A3: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M1: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M2: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

 

 

REMIC I Regular Interest LT-M3: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M4: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M5: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M6: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M7: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-M8: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-B: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-ZZ: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-P: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-R: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal 

 

 

Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-1SUB: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-1GRP: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-2SUB: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-2GRP: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-XX: A regular interest in REMIC I that is held as an asset of REMIC II, that has an initial principal balance equal to the related Uncertificated Principal Balance, that bears interest at the related Uncertificated REMIC I Pass-Through Rate, and that has such other terms as are described herein.

REMIC I Regular Interest LT-ZZ Maximum Interest Deferral Amount: With respect to any Distribution Date, the sum of (a) the excess of (i) Uncertificated Accrued Interest calculated with the Uncertificated Pass-Through Rate for REMIC I Regular Interest LT-ZZ and an Uncertificated Principal Balance equal to the excess of (x) the Uncertificated Principal Balance of REMIC I Regular Interest LT-ZZ over (y) the REMIC I Overcollateralized Amount, in each case for such Distribution Date, over (ii) Uncertificated Accrued Interest on REMIC I Regular Interests LT-1A1, LT-1A2, LT-2A1, LT-2A2, LT-2A3, LT-M1, LT-M2, LT-M3, LT-M4, LT-M5, LT-M6, LT-M7, LT-M8 and LT-B, with the rate on each such REMIC I Regular Interest subject to a cap equal to the Pass-Through Rate on the Corresponding Certificate for the purpose of this calculation.

REMIC I Sub WAC Allocation Percentage: 50% of any amount payable or loss attributable from the Mortgage Loans, which shall be allocated to REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT2-GRP and REMIC I Regular Interest LT-XX.

REMIC I Subordinated Balance Ratio: The ratio among the Uncertificated Principal Balances of each REMIC I Regular Interest ending with the designation “SUB,”, equal to the ratio among, with respect to each such REMIC I Regular Interest, the excess of (x) the aggregate 

 

 

Stated Principal Balance of the Mortgage Loans in the related Loan Group over (y) the Certificate Principal Balance of the Class A Certificates, Class R Certificates and Class P Certificates in the related Loan Group.  

REMIC II Regular Certificates: Any of the Class 1-A-1, Class 1-A-2, Class 2-A-1, Class 2-A-2, Class 2-A-3, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class B, Class C or Class P Certificates.

REMIC Provisions: Provisions of the federal income tax law relating to real estate mortgage investment conduits, which appear at Sections 860A through 860G of Subchapter M of Chapter 1 of the Code, and related provisions, and temporary and final regulations (or, to the extent not inconsistent with such temporary or final regulations, proposed regulations) and published rulings, notices and announcements promulgated thereunder, as the foregoing may be in effect from time to time.

REO Property:  A Mortgaged Property acquired by the Master Servicer through foreclosure or deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

Replacement Mortgage Loan:  A Mortgage Loan substituted by Countrywide (on behalf of itself and each other Seller) for a Deleted Mortgage Loan, which must, on the date of such substitution, as confirmed in a Request for Release, substantially in the form of Exhibit N, (i) have a Stated Principal Balance, after deduction of the principal portion of the Scheduled Payment due in the month of substitution, not in excess of, and not less than 90% of the Stated Principal Balance of the Deleted Mortgage Loan; (ii) with respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate no more than 1% per annum higher or lower than the Maximum Mortgage Rate of the Deleted Mortgage Loan;
(b) have a Minimum Mortgage Rate no more than 1% per annum higher or lower than the Minimum Mortgage Rate of the Deleted Mortgage Loan; (c) have the same Index, Periodic Rate Cap and intervals between Adjustment Dates as that of the Deleted Mortgage Loan and a Gross Margin not more than 1% per annum higher or lower than that of the Deleted Mortgage Loan; and (d) not permit conversion of the related Mortgage Rate to a fixed Mortgage Rate; (iii) have the same or higher credit quality characteristics than that of the Deleted Mortgage Loan; (iv) at the time of transfer to the Trust Fund, be accruing interest at a Mortgage Rate not more than 1% per annum higher or lower than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio no higher than that of the Deleted Mortgage Loan; (vi) have a remaining term to maturity no greater than (and not more than one year less than) that of the Deleted Mortgage Loan; (vii) not permit conversion of the Mortgage Rate from a fixed rate to a
variable rate or visa versa; (viii) provide for a prepayment charge on terms substantially similar to those of the prepayment charge, if any, of the Deleted Mortgage Loan; (ix) have the same lien priority as the Deleted Mortgage Loan; (x) constitute the same occupancy type as the Deleted Mortgage Loan; (xi) [reserved], and (xii) comply with each representation and warranty (other than a statistical representation or warranty) set forth in Section 2.03 hereof.

Request for Release:  The Request for Release submitted by the Master Servicer to the Trustee, substantially in the form of Exhibits M and N, as appropriate.

 

 

Required Insurance Policy:  With respect to any Mortgage Loan, any insurance policy that is required to be maintained from time to time under this Agreement.

Responsible Officer:  When used with respect to the Trustee, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, any Trust Officer or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also to whom, with respect to a particular matter, such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

Rolling Delinquency Percentage: With respect to any Distribution Date on or after the Stepdown Date, the average, over the past three months, of a fraction (expressed as a percentage), (a) the numerator of which is the aggregate Stated Principal Balances for such Distribution Date of all Mortgage Loans 60 or more days delinquent as of the last day of the preceding month (including Mortgage Loans in bankruptcy, foreclosure and REO Properties) and (b) the denominator of which is the aggregate Stated Principal Balances of the Mortgage Loans for such Distribution Date.

S&P:  Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or any successor thereto.

Scheduled Payment:  The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan.

Securities Act:  The Securities Act of 1933, as amended.

Sellers:  Countrywide, in its capacity as seller of the Countrywide Mortgage Loans to the Depositor and Park Sienna, in its capacity as seller of the Park Sienna Mortgage Loans to the Depositor.

Seller Shortfall Interest Requirement:  For the Master Servicer Advance Date in May 2005, to the extent not covered by Excess Cashflow, an amount equal to 30 days interest on the Stated Principal Balance of each Mortgage Loan that does not have a scheduled payment of interest due in the related Due Period at the Net Mortgage Rates for such Mortgage Loans.

Senior Certificates:  The Class 1-A-1, Class 1-A-2, Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class A-R Certificates.

Senior Enhancement Percentage:  With respect to each Distribution Date on or after the Stepdown Date, the fraction (expressed as a percentage) (1) the numerator of which is the excess of (a) the aggregate Stated Principal Balance of the Mortgage Loans for the preceding Distribution Date over (b) (i) before the aggregate Certificate Principal Balance of the Senior Certificates has been reduced to zero, the aggregate Certificate Principal Balance of the Senior Certificates, or (ii) after the Certificate Principal Balances of the Senior Certificates have been reduced to zero, the Certificate Principal Balance of the most senior Class of Certificates outstanding as of the preceding Master Servicer Advance Date and (2) the denominator of which is the aggregate Stated Principal Balance of the Mortgage Loans for the preceding Distribution Date.

 

 

Servicing Advances:  All customary, reasonable and necessary “out of pocket” costs and expenses incurred in the performance by the Master Servicer of its servicing obligations hereunder, 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 foreclosures, (iii) the management and liquidation of any REO Property and (iv) compliance with the obligations under Section 3.10.

Servicing Fee:  As to each Mortgage Loan and any Distribution Date, an amount equal to one month’s interest at the Servicing Fee Rate on the Stated Principal Balance of such Mortgage Loan or, in the event of any payment of interest that accompanies a Principal Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate on the Stated Principal Balance of such Mortgage Loan for the period covered by such payment of interest.

Servicing Fee Rate:  With respect to each Mortgage Loan, 0.50% per annum.

Servicing Officer:  Any officer of the Master Servicer involved in, or responsible for, the administration and servicing of the Mortgage Loans whose name and facsimile signature appear on a list of servicing officers furnished to the Trustee by the Master Servicer on the Closing Date pursuant to this Agreement, as such list may from time to time be amended.

Stated Principal Balance:  With respect to any Mortgage Loan or related REO Property (i) as of the Cut-off Date, the unpaid principal balance of the Mortgage Loan as of such date (before any adjustment to the amortization schedule for any moratorium or similar waiver or grace period), after giving effect to any partial Prepayments or Liquidation Proceeds received prior to such date and to the payment of principal due on or prior to such date and irrespective any delinquency in payment by the related mortgagor with respect to Actuarial Mortgage Loans, and (ii) as of any Distribution Date, the Stated Principal Balance of the Mortgage Loan as of its Cut-off Date, minus the sum of (a) the principal portion of the Scheduled Payments (x) due with respect to such Mortgage Loan during each Due Period ending prior to such Distribution Date and (y) that were received by
the Master Servicer as of the close of business on the Determination Date related to such Distribution Date or with respect to which Advances were made as of the Master Servicer Advance Date related to such Distribution Date, (b) all Principal Prepayments with respect to such Mortgage Loan received by the Master Servicer during each Prepayment Period ending prior to such Distribution Date, and (c) all Liquidation Proceeds collected with respect to such Mortgage Loan during each Due Period ending prior to such Distribution Date, to the extent applied by the Master Servicer as recoveries of principal in accordance with Section 3.12.  The Stated Principal Balance of any Mortgage Loan that becomes a Liquidated Loan will be zero on the Distribution Date following the Due Period in which such Mortgage Loan becomes a Liquidated Loan.  References herein to the Stated Principal Balance the Mortgage Loans at any time shall mean the aggregate Stated Principal Balances of all Mortgage Loans in
the Trust Fund as of such time.

Stepdown Date:  The later to occur of (a) the Distribution Date in May 2008 and (b) the first Distribution Date on which the aggregate Certificate Principal Balance of the Senior Certificates (after calculating anticipated distributions on such Distribution Date) is less than or equal to 63.50% of the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date.

 

 

Subordinate Certificates:  The Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates.

Subordinated Corridor Contract: The transaction evidenced by the Confirmation and Agreement for the benefit of the Subordinate Certificateholders (as assigned to the Corridor Contract Administratore pursuant to the Corridor Contract Novation Agreement), a form of which is attached hereto as Exhibit R.

Subordinated Corridor Contract Payment Amount:  The amount, if any, allocated to the Trustee by the Corridor Contract Administrator for the benefit of the Trust Fund in respect of the Subordinated Corridor Contract.

Subordinated Corridor Contract Termination Date:  The Distribution Date in April 2011.

Subordinated Confirmation And Agreement: The Confirmation and Agreement dated April 19, 2005, reference numbers 775115B and 775116B, evidencing the Subordinated Corridor Contract.

Subservicer:  As defined in Section 3.02(a).

Subservicing Agreement:  As defined in Section 3.02(a).

Subsequent Recoveries:  Unexpected recoveries, net of reimbursable expenses, with respect to Mortgage Loans that have been previously liquidated and that resulted in a Realized Loss.

Substitution Adjustment Amount:  The meaning ascribed to such term pursuant to Section 2.03(c).

Substitution Amount:  With respect to any Mortgage Loan substituted pursuant to Section 2.03(c), the excess of (x) the principal balance of the Mortgage Loan that is substituted for, over (y) the principal balance of the related substitute Mortgage Loan, each balance being determined as of the date of substitution.

Tax Matters Person:  The person designated as “tax matters person” in the manner provided under Treasury regulation § 1.860F 4(d) and temporary Treasury regulation § 301.6231(a)(7) 1T.  Initially, this person shall be the Trustee.

Tax Matters Person Certificate:  The Class A-R Certificate with a Denomination of $0.05.

Three-Year Hybrid Mortgage Loan:  A Mortgage Loan having a Mortgage Rate that is fixed for 36 months after origination thereof before such Mortgage Rate becomes subject to adjustment.

Transfer:  Any direct or indirect transfer or sale of any Ownership Interest in a Certificate.

 

 

Trigger Event:  With respect to any Distribution Date on or after the Stepdown Date, either a Delinquency Trigger Event or a Cumulative Loss Trigger Event  with respect to that Distribution Date.

Trust Fund:  The corpus of the trust created hereunder consisting of (i) the Mortgage Loans and all interest and principal received on or with respect thereto on and after the Cut-off Date to the extent not applied in computing the Cut-off Date Principal Balance thereof, exclusive of interest not required to be deposited in the Certificate Account pursuant to Section 3.05(b)(ii); (ii) the Certificate Account, the Distribution Account, the Carryover Reserve Fund and all amounts deposited therein pursuant to the applicable provisions of this Agreement; (iii) the Corridor Contracts; (iv) property that secured a Mortgage Loan and has been acquired by foreclosure, deed in lieu of foreclosure or otherwise; (v) the mortgagee’s rights under any insurance policies with respect to the Mortgage Loan; and (vi) all proceeds of the conversion, voluntary or involuntary,
of any of the foregoing into cash or other liquid property.

Trustee:  The Bank of New York, a New York banking corporation, not in its individual capacity, but solely in its capacity as trustee for the benefit of the Certificateholders under this Agreement, and any successor thereto, and any corporation or national banking association resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee as may from time to time be serving as successor trustee hereunder.

Trustee Advance Rate: With respect to any Advance made by the Trustee pursuant to Section 4.01(b), a per annum rate of interest determined as of the date of such Advance equal to the Prime Rate in effect on such date plus 5.00%.

Trustee Fee:  As to any Distribution Date, an amount equal to one-twelfth of the Trustee Fee Rate multiplied by the aggregate Stated Principal Balance of the Mortgage Loans for such Distribution Date.

Trustee Fee Rate:  With respect to each Mortgage Loan, 0.009% per annum.

Two-Year Hybrid Mortgage Loan:  A Mortgage Loan having a Mortgage Rate that is fixed for 24 months after origination thereof before such Mortgage Rate becomes subject to adjustment.

Uncertificated Accrued Interest: With respect to any Uncertificated Regular Interest for any Distribution Date, one month’s interest at the related Uncertificated Pass-Through Rate for such Distribution Date, accrued on the Uncertificated Principal, immediately prior to such Distribution Date. Uncertificated Accrued Interest for the Uncertificated Regular Interests shall accrue on the basis of a 360-day year consisting of twelve 30-day months. For purposes of calculating the amount of Uncertificated Accrued Interest for the REMIC I Regular Interests for any Distribution Date:

(A)       The REMIC I Marker Allocation Percentage of the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by Compensating Interest) incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated among REMIC I 

 

 

Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC I Regular Interest LT-B, REMIC I Regular Interest LT-ZZ, pro rata based on, and to the extent of, one month’s interest at the then applicable respective REMIC I Pass-Through Rate on the respective Uncertificated Principal Balance of each such REMIC I Regular Interest; and

(B)        The REMIC I Sub WAC Allocation Percentage of the aggregate amount of any Prepayment Interest Shortfalls (to the extent not covered by payments by Compensating Interest) incurred in respect of the Mortgage Loans for any Distribution Date shall be allocated first, to Uncertificated Accrued Interest payable to REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT-2GRP and REMIC I Regular Interest LT-XX, pro rata based on, and to the extent of, one month’s interest at the then applicable respective Uncertificated REMIC I Pass-Through Rate on the respective Uncertificated Principal Balance of each such REMIC I Regular Interest.

Uncertificated Pass-Through Rate: The Uncertificated REMIC I Pass-Through Rate.

Uncertificated Principal Balance: The principal amount of any Uncertificated Regular Interest outstanding as of any date of determination. The Uncertificated Principal Balance of each Uncertificated Regular Interest shall be reduced by all distributions of principal made on such Uncertificated Regular Interest, as applicable, on such Distribution Date and, if and to the extent necessary and appropriate, shall be further reduced in such Distribution Date by Realized Losses. The Uncertificated Principal Balance of each Uncertificated Regular Interest shall never be less than zero.

Uncertificated REMIC I Pass-Through Rate: With respect to REMIC I Regular Interest LT-AA, REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC I Regular Interest LT-B, REMIC I Regular Interest LT-ZZ, REMIC I Regular Interest LT-P, REMIC I Regular Interest LT-AR, REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-2SUB and REMIC I Regular Interest LT-XX, the weighted average of the Adjusted Net Mortgage Rates of the Mortgage Loans. With respect to REMIC I Regular Interest LT-1GRP, the
weighted average of the Adjusted Net Mortgage Rates of the Group 1 Mortgage Loans and with respect REMIC I Regular Interest LT-2GRP, the weighted average of the Adjusted Net Mortgage Rates of the Group 2 Mortgage Loans.

Uncertificated Regular Interests: The REMIC I Regular Interests.

Underwriter: Countrywide Securities Corporation or Greenwich Capital Markets, Inc.

 

 

Underwriter’s Exemption:  Prohibited Transaction Exemption 2002-41, 67 Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any substantially similar administrative exemption granted by the U.S. Department of Labor.

Unpaid Realized Loss Amount:  For any Class of Subordinate Certificates or Class 1-A-2 Certificates, the portion of the aggregate Applied Realized Loss Amount previously allocated to that Class remaining unpaid from prior Distribution Dates, as reduced by the amount of the increase in the related Certificate Principal Balance due to the receipt of Subsequent Recoveries.

Voting Rights:  The portion of the voting rights of all the Certificates that is allocated to any Certificates for purposes of the voting provisions hereunder.  Voting Rights allocated to each Class of Certificates shall be allocated 97% to the Certificates other than the Class A-R, Class C and Class P Certificates (with the allocation among the Certificates to be in proportion to the Certificate Principal Balance of each Class relative to the Certificate Principal Balance of all other such Classes), and 1% to each of the Class A-R, Class C and Class P Certificates.  Voting Rights will be allocated among the Certificates of each such Class in accordance with their respective Percentage Interests.

 

 

 

ARTICLE II

 

CONVEYANCE OF MORTGAGE LOANS;

REPRESENTATIONS AND WARRANTIES

Section 2.01    Conveyance of Mortgage Loans.

(a)            Each Seller hereby sells, transfers, assigns, sets over and otherwise conveys to the Depositor, without recourse, all the right, title and interest of such Seller in and to the Mortgage Loans sold by it, including all interest and principal received and receivable by such Seller on or with respect to the Mortgage Loans after the Cut-off Date (to the extent not applied in computing the Cut-off Date Principal Balance thereof) or deposited into the Certificate Account by such Seller as a Certificate Account Deposit as provided in this Agreement, other than principal due on the Mortgage Loans on or prior to the Cut-off Date and interest accruing prior to the Cut-off Date.  Countrywide, on behalf of itself and each other Seller confirms that, concurrently with the transfer and assignment, it has deposited into the
Certificate Account the Certificate Account Deposit.

Immediately upon the conveyance of the Mortgage Loans referred to in the preceding paragraph, the Depositor sells, transfers, assigns, sets over and otherwise conveys to the Trustee for benefit of the Certificateholders, without recourse, all right title and interest in the Mortgage Loans.

Countrywide further agrees to assign all of its right, title and interest in and to the corridor contracts evidenced by the Confirmation And Agreements, and to cause all of its obligations in respect of such transactions to be assumed by, the Corridor Contract Administrator on the terms and conditions set forth in the Corridor Contract Novation Agreement.

The Depositor, the Master Servicer and the Trustee agree that it is not intended that any mortgage loan be included in the Trust that is either (i) a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective November 27, 2003 or (ii) a “High-Cost Home Loan” as defined in the New Mexico Home Loan Protection Act effective January 1, 2004.

(b)            [reserved]

(c)            Each Seller has entered into this Agreement in consideration for the purchase of the Mortgage Loans by the Depositor and has agreed to take the actions specified herein.  The Depositor, concurrently with the execution and delivery of this Agreement, hereby sells, transfers, assigns and otherwise conveys to the Trustee for the use and benefit of the Certificateholders, without recourse, all right title and interest in the portion of the Trust Fund not otherwise conveyed to the Trustee pursuant to Sections 2.01(a) or (b).

(d)            [reserved]

(e)            [reserved]

(f)            [reserved]

 

(g)            In connection with the transfer and assignment of each Mortgage Loan, the Depositor has delivered to, and deposited with, the Trustee (or, in the case of the Delay Delivery Mortgage Loans, will deliver to, and deposit with, the Trustee within the time periods specified in the definition of Delay Delivery Mortgage Loans) (except as provided in clause (vi) below) for the benefit of the Certificateholders, the following documents or instruments with respect to each such Mortgage Loan so assigned (with respect to each Mortgage Loan, clause (i) through (vi) below, together, the “Mortgage File” for each such Mortgage Loan):

(i)         the original Mortgage Note, endorsed by the originator of such Mortgage Loan to the Person endorsing, without recourse, in the following form:  “Pay to the order of ________________ without recourse”, with all intervening endorsements that show a complete chain of endorsement from the originator to the relevant Seller, or, if the original Mortgage Note has been lost or destroyed and not replaced, an original lost note affidavit from the relevant Seller, stating that the original Mortgage Note was lost or destroyed, together with a copy of the related Mortgage Note;

(ii)         in the case of each Mortgage Loan that is not a MERS Mortgage Loan, the original recorded Mortgage, and in the case of each MERS Mortgage Loan, the original Mortgage, noting the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording indicated thereon, or a copy of the Mortgage certified by the public recording office in which such Mortgage has been recorded;

(iii)        in the case of each Mortgage Loan that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage to “Asset-Backed Certificates, Series 2005-BC2, CWABS, Inc., by The Bank of New York, a New York banking corporation, as trustee under the Pooling and Servicing Agreement dated as of April 1, 2005, without recourse” (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which such assignment relates);

(iv)        the original recorded assignment or assignments of the Mortgage together with all interim recorded assignments of such Mortgage (noting the presence of a MIN in the case of each MERS Mortgage Loan);

(v)        the original or copies of each assumption, modification, written assurance or substitution agreement, if any; and

(vi)        the original or duplicate original lender’s title policy or a printout of the electronic equivalent and all riders thereto or, in the event such original title policy has not been received from the insurer, such original or duplicate original lender’s title policy and all riders thereto shall be delivered within one year of the Closing Date.

In addition, in connection with the assignment of any MERS Mortgage Loan, each Seller agrees that it will cause, at such Seller’s own expense, the MERS® System to indicate (and provide evidence to the Trustee that it has done so) that such Mortgage Loans have been assigned by such Seller to the Trustee in accordance with this Agreement for the benefit of the 

 

 

Certificateholders by including (or deleting, in the case of Mortgage Loans which are repurchased in accordance with this Agreement) in such computer files (a) the code “[IDENTIFY TRUSTEE SPECIFIC CODE]” in the field “[IDENTIFY THE FIELD NAME FOR TRUSTEE]” which identifies the Trustee and (b) the code “[IDENTIFY SERIES SPECIFIC CODE NUMBER]” in the field “Pool Field” which identifies the series of the Certificates issued in connection with such Mortgage Loans.  Each Seller further agrees that it will not, and will not permit the Master Servicer to, and the Master Servicer agrees that it will not, alter the codes referenced in this paragraph with respect to any Mortgage Loan during the term of this Agreement unless and until such Mortgage Loan is repurchased in accordance with the terms of this Agreement.

In the event that in connection with any Mortgage Loan that is not a MERS Mortgage Loan the Depositor cannot deliver the original recorded Mortgage or all interim recorded assignments of the Mortgage satisfying the requirements of clause (ii), (iii) or (iv) concurrently with the execution and delivery hereof, the Depositor shall deliver or cause to be delivered to the Trustee a true copy of such Mortgage and of each such undelivered interim assignment of the Mortgage each certified by such Seller, the applicable title company, escrow agent or attorney, or the originator of such Mortgage, as the case may be, to be a true and complete copy of the original Mortgage or assignment of Mortgage submitted for recording.  For any such Mortgage Loan that is not a MERS Mortgage Loan the relevant Seller shall promptly deliver or cause to be delivered to the Trustee such original Mortgage and such
assignment or assignments with evidence of recording indicated thereon upon receipt thereof from the public recording official, or a copy thereof, certified, if appropriate, by the relevant recording office, but in no event shall any such delivery be made later than 270 days following the Closing Date; provided that in the event that by such date the Depositor is unable to deliver or cause to be delivered each such Mortgage and each interim assignment by reason of the fact that any such documents have not been returned by the appropriate recording office, or, in the case of each interim assignment, because the related Mortgage has not been returned by the appropriate recording office, the Depositor shall deliver or cause to be delivered such documents to the Trustee as promptly as possible upon receipt thereof.  If the public recording office in which a Mortgage or interim assignment thereof is recorded retains the original of such Mortgage or assignment, a copy of the original
Mortgage or assignment so retained, with evidence of recording thereon, certified to be true and complete by such recording office, shall satisfy the Depositor’s obligations in Section 2.01.  If any document submitted for recording pursuant to this Agreement is (x) lost prior to recording or rejected by the applicable recording office, the Depositor shall immediately prepare or cause to be prepared a substitute and submit it for recording, and shall deliver copies and originals thereof in accordance with the foregoing or (y) lost after recording, the Depositor shall deliver to the Trustee a copy of such document certified by the applicable public recording office to be a true and complete copy of the original recorded document.  The Depositor shall promptly forward or cause to be forwarded to the Trustee (x) from time to time additional original documents evidencing an assumption or modification of a Mortgage Loan and (y) any other documents required to be delivered by the
Depositor or the Master Servicer to the Trustee within the time periods specified in this Section 2.01.

With respect to each Mortgage Loan other than a MERS Mortgage Loan as to which the related Mortgaged Property and Mortgage File are located in (a) the State of California or (b) any other jurisdiction under the laws of which the recordation of the assignment specified in clause 

 

 

(iii) above is not necessary to protect the Trustee’s and the Certificateholders’ interest in the related Mortgage Loan, as evidenced by an Opinion of Counsel, delivered by the Depositor to the Trustee and a copy to the Rating Agencies, in lieu of recording the assignment specified in clause (iii) above, the Depositor may deliver an unrecorded assignment in blank, in form otherwise suitable for recording to the Trustee; provided that if the related Mortgage has not been returned from the applicable public recording office, such assignment, or any copy thereof, of the Mortgage may exclude the information to be provided by the recording office.  As to any Mortgage Loan other than a MERS Mortgage Loan, the procedures of the preceding sentence shall be applicable only so long as the related Mortgage File is maintained in the possession of the Trustee in the State or jurisdiction described in such
sentence.  In the event that with respect to Mortgage Loans other than MERS Mortgage Loans (i) the relevant Seller, the Depositor or the Master Servicer gives written notice to the Trustee that recording is required to protect the right, title and interest of the Trustee on behalf of the Certificateholders in and to any Mortgage Loan, (ii) a court recharacterizes the sale of the Mortgage Loans as a financing, or (iii) as a result of any change in or amendment to the laws of the State or jurisdiction described in the first sentence of this paragraph or any applicable political subdivision thereof, or any change in official position regarding application or interpretation of such laws, including a holding by a court of competent jurisdiction, such recording is so required, the Trustee shall complete the assignment in the manner specified in clause (iii) of the second paragraph of this Section 2.01 and the Depositor shall submit or cause to be submitted for recording as specified above
or, should the Depositor fail to perform such obligations, the Trustee shall cause the Master Servicer, at the Master Servicer’s expense, to cause each such previously unrecorded assignment to be submitted for recording as specified above.  In the event a Mortgage File is released to the Master Servicer as a result of the Master Servicer’s having completed a Request for Release in the form of Exhibit M, the Trustee shall complete the assignment of the related Mortgage in the manner specified in clause (iii) of the second paragraph of this Section 2.01.

So long as the Trustee maintains an office in the State of California, the Trustee shall maintain possession of and not remove or attempt to remove from the State of California any of the Mortgage Files as to which the related Mortgaged Property is located in such State.  In the event that a Seller fails to record an assignment of a Mortgage Loan as herein provided within 90 days of notice of an event set forth in clause (i), (ii) or (iii) of the above paragraph, the Master Servicer shall prepare and, if required hereunder, file such assignments for recordation in the appropriate real property or other records office.  Each Seller hereby appoints the Master Servicer (and any successor servicer hereunder) as its attorney-in-fact with full power and authority acting in its stead for the purpose of such preparation, execution and filing.

In the case of Mortgage Loans that become the subject of a Principal Prepayment between the Closing Date and the Cut-off Date, the Depositor shall deposit or cause to be deposited in the Certificate Account the amount required to be deposited therein with respect to such payment pursuant to Section 3.05 hereof.

Notwithstanding anything to the contrary in this Agreement, within thirty days after the Closing Date, Countrywide (on its own behalf and on behalf of each Seller) shall either (i) deliver to the Trustee the Mortgage File as required pursuant to this Section 2.01 for each Delay Delivery Mortgage Loan or (ii) (A) repurchase the Delay Delivery Mortgage Loan or (B) substitute the Delay Delivery Mortgage Loan for a Replacement Mortgage Loan, which 

 

 

repurchase or substitution shall be accomplished in the manner and subject to the conditions set forth in Section 2.03, provided that if Countrywide (on its own behalf and on behalf of each Seller) fails to deliver a Mortgage File for any Delay Delivery Mortgage Loan within the period provided in the prior sentence, the cure period provided for in Section 2.02 or in Section 2.03 shall not apply to the initial delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but rather Countrywide (on its own behalf and on behalf of each Seller) shall have five (5) Business Days to cure such failure to deliver; and provided further, that Countrywide (on its own behalf and on behalf of each Seller) shall use its best efforts to substitute rather than repurchase.  Countrywide (on its own behalf and on behalf of each Seller) shall promptly provide each Rating Agency with written notice of any cure,
repurchase or substitution made pursuant to the proviso of the preceding sentence. On or before the thirtieth (30th) day (or if such thirtieth day is not a Business Day, the succeeding Business Day) after the Closing Date (in the case of the Mortgage Loans), the Trustee shall, in accordance with the provisions of Section 2.02, send a Delay Delivery Certification substantially in the form annexed hereto as Exhibit G-3 (with any applicable exceptions noted thereon) for all Delay Delivery Mortgage Loan delivered within thirty (30) days after such date.  The Trustee will promptly send a copy of such Delay Delivery Certification to each Rating Agency.

	
            Section 2.02
 	
            Acceptance of the Mortgage Loans.
 

(a)            The Trustee acknowledges receipt, subject to the limitations contained in and any exceptions noted in the Initial Certification in the form annexed hereto as Exhibit G-1 and in the list of exceptions attached thereto, of the documents referred to in clauses (i) and (iii) of Section 2.01(g) above with respect to the Mortgage Loans and all other assets included in the Trust Fund and declares that it holds and will hold such documents and the other documents delivered to it constituting the Mortgage Files, and that it holds or will hold such other assets included in the Trust Fund, in trust for the exclusive use and benefit of all present and future Certificateholders.

The Trustee agrees to execute and deliver on the Closing Date to the Depositor, the Master Servicer and Countrywide (on its own behalf and on behalf of each Seller) an Initial Certification substantially in the form annexed hereto as Exhibit G-1 to the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), the documents described in Section 2.01(g)(i) and, in the case of each Mortgage Loan that is not a MERS Mortgage Loan, the documents described in Section 2.01(g)(iii), with respect to such Mortgage Loan are in the Trustee’s possession, and based on its review and examination and only as to the foregoing documents, such documents appear regular on their face and relate to such Mortgage Loan.  The Trustee agrees to
execute and deliver within thirty (30) days after the Closing Date to the Depositor, the Master Servicer and Countrywide (on its own behalf and on behalf of each Seller) an Interim Certification substantially in the form annexed hereto as Exhibit G-2 to the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), all documents required to be delivered to the Trustee pursuant to this Agreement with respect to such Mortgage Loan are in its possession (except those described in Section 2.01(g)(vi)) and based on its review and examination and only as to the foregoing documents, (i) such documents appear regular on their 

 

 

face and relate to such Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v), (vi), (viii), (xi) and (xiv) of the definition of the “Mortgage Loan Schedule” accurately reflects information set forth in the Mortgage File.  On or before the thirtieth (30th) day after the Closing Date (or if such thirtieth day is not a Business Day, the succeeding Business Day), the Trustee shall deliver to the Depositor, the Master Servicer and Countrywide (on its own behalf and on behalf of each Seller) a Delay Delivery Certification with respect to the Mortgage Loans substantially in the form annexed hereto as Exhibit G-3, with any applicable exceptions noted thereon.  The Trustee shall be under no duty or obligation to inspect, review or examine such documents, instruments, certificates or other papers to determine that the same are genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded in the real estate records or that they are other than what they purport to be on their face.

Not later than 180 days after the Closing Date, the Trustee shall deliver to the Depositor, the Master Servicer and Countrywide (on its own behalf and on behalf of each Seller) (and to any Certificateholder that so requests) a Final Certification with respect to the Mortgage Loans substantially in the form annexed hereto as Exhibit H, with any applicable exceptions noted thereon.

In connection with the Trustee’s completion and delivery of such Final Certification, the Trustee shall review each Mortgage File with respect to the Mortgage Loans to determine that such Mortgage File contains the documents listed in Section 2.01(g).  If, in the course of such review, the Trustee finds any document or documents constituting a part of such Mortgage File that do not meet the requirements of clauses (i)-(iv) and (vi) of Section 2.01(g), the Trustee shall include such exceptions in such Final Certification (and the Trustee shall state in such Final Certification whether any Mortgage File does not then include the original or duplicate original lender’s title policy or a printout of the electronic equivalent and all riders thereto).  If the public recording office in which a Mortgage or assignment thereof is recorded retains the original of such Mortgage or
assignment, a copy of the original Mortgage or assignment so retained, with evidence of recording thereon, certified to be true and complete by such recording office, shall be deemed to satisfy the requirements of clause (ii), (iii) or (iv) of Section 2.01(g), as applicable.  Countrywide (on its own behalf and on behalf of each Seller) shall promptly correct or cure such defect referred to above within 90 days from the date it was so notified of such defect and, if such Seller does not correct or cure such defect within such period, Countrywide (on its own behalf and on behalf of each Seller) shall either (A) if the time to cure such defect expires prior to the end of the second anniversary of the Closing Date, substitute for the related Mortgage Loan a Replacement Mortgage Loan, which substitution shall be accomplished in the manner and subject to the conditions set forth in Section 2.03, or (B) purchase such Mortgage Loan from the Trust Fund within 90 days from the date Countrywide
(on its own behalf and on behalf of each Seller) was notified of such defect in writing at the Purchase Price of such Mortgage Loan; provided that any such substitution pursuant to (A) above or repurchase pursuant to (B) above shall not be effected prior to the delivery to the Trustee of the Opinion of Counsel required by Section 2.05 hereof and any substitution pursuant to (A) above shall not be effected prior to the additional delivery to the Trustee of a Request for Release substantially in the form of Exhibit N.  No substitution will be made in any calendar month after the Determination Date for such month.  The Purchase Price for any such Mortgage Loan shall be deposited by Countrywide (on its own behalf and on behalf of each Seller) in the Certificate Account and, upon receipt of such deposit and certification with respect thereto in the form of Exhibit N hereto, the Trustee shall release the 

 

 

related Mortgage File to Countrywide (on its own behalf and on behalf of each Seller) and shall execute and deliver at Countrywide’s (on its own behalf and on behalf of each Seller) request such instruments of transfer or assignment as Countrywide (on its own behalf and on behalf of each Seller) has prepared, in each case without recourse, as shall be necessary to vest in Countrywide (on its own behalf and on behalf of each Seller), or a designee, the Trust Fund’s interest in any Mortgage Loan released pursuant hereto. If pursuant to the foregoing provisions Countrywide (on its own behalf and on behalf of each Seller) repurchases a Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall cause MERS to execute and deliver an assignment of the Mortgage in recordable form to transfer the Mortgage from MERS to Countrywide (on its own behalf and on behalf of each Seller) and shall cause
such Mortgage to be removed from registration on the MERS® System in accordance with MERS’ rules and regulations.

The Trustee shall retain possession and custody of each Mortgage File in accordance with and subject to the terms and conditions set forth herein.  Countrywide (on its own behalf and on behalf of each Seller) shall promptly deliver to the Trustee, upon the execution or receipt thereof, the originals of such other documents or instruments constituting the Mortgage File that come into the possession of Countrywide (on its own behalf and on behalf of each Seller) from time to time.

It is understood and agreed that the obligation of Countrywide (on its own behalf and on behalf of each Seller) to substitute for or to purchase any Mortgage Loan that does not meet the requirements of Section 2.02(a)(A) or (B) above shall constitute the sole remedy respecting such defect available to the Trustee, the Depositor and any Certificateholder against the applicable Seller.

	
            (b)
 	
            [reserved]
 

	
            Section 2.03
 	
            Representations, Warranties and Covenants of the Master Servicer and the Sellers.
 

(a)            The Master Servicer hereby represents and warrants to the Depositor, the Sellers and the Trustee as follows, as of the date hereof with respect to the Mortgage Loans:

(i)         The Master Servicer is duly organized as a Texas limited partnership and is validly existing and in good standing under the laws of the State of Texas and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by the Master 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, to service the Mortgage Loans in accordance with the terms of this Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(ii)         The Master Servicer has the full partnership power and authority to sell and service each Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly 

 

 

authorized by all necessary corporate action on the part of the Master Servicer the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of the Master Servicer, enforceable against the Master Servicer in accordance with its terms, except that (a) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(iii)        The execution and delivery of this Agreement by the Master Servicer, the servicing of the Mortgage Loans by the Master Servicer under this Agreement, the consummation of any other of the transactions contemplated by this Agreement, 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 material breach of any term or provision of the certificate of limited partnership, partnership agreement or other organizational document of the Master Servicer or (B) materially conflict with, result in a material breach, violation or acceleration of, or result in a material 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 (C) constitute a material
violation of 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 in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Master Servicer’s ability to perform or meet any of its obligations under this Agreement.

(iv)        The Master Servicer is an approved servicer of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act.

(v)        No litigation is pending or, to the best of the Master Servicer’s knowledge, threatened, 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 service the Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(vi)        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 of the transactions contemplated hereby, or if any such consent, approval, authorization or order is required, the Master Servicer has obtained the same.

 

 

(vii)       The Master 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 for as long as such Mortgage Loans are registered with MERS.

(b)            Countrywide (on behalf of itself and, where applicable, on behalf of Park Sienna) hereby represents and warrants to the Depositor, the Master Servicer and the Trustee as follows, as of the Cut-off Date (unless otherwise indicated or the context otherwise requires, percentages with respect to the Mortgage Loans in a Loan Group are measured by the Cut-off Date Principal Balance of the Mortgage Loans in the related Loan Group):

(i)         Countrywide is duly organized as a New York corporation and is validly existing and in good standing under the laws of the State of New York and is duly authorized and qualified to transact any and all business contemplated by this Agreement to be conducted by Countrywide 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 Countrywide Mortgage Loan, to sell the Countrywide Mortgage Loans in accordance with the terms of this Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(ii)         Countrywide has the full corporate power and authority to sell each Countrywide Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary corporate action on the part of Countrywide the execution, delivery and performance of this Agreement; and this Agreement , assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of Countrywide, enforceable against Countrywide in accordance with its terms, except that (a) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(iii)        The execution and delivery of this Agreement by Countrywide, the sale of the Countrywide Mortgage Loans by Countrywide under this Agreement, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in the ordinary course of business of Countrywide and will not (A) result in a material breach of any term or provision of the charter or by-laws of Countrywide or (B) materially conflict with, result in a material breach, violation or acceleration of, or result in a material default under, the terms of any other material agreement or instrument to which Countrywide is a party or by which it may be bound, or (C) constitute a material violation of any statute, order or regulation applicable to Countrywide of any court,
regulatory body, administrative agency or governmental body having jurisdiction over Countrywide; and Countrywide is not in breach or violation of any material indenture or other material agreement or 

 

 

instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair Countrywide’s ability to perform or meet any of its obligations under this Agreement.

(iv)        Countrywide is an approved seller of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act.

(v)        No litigation is pending or, to the best of Countrywide’s knowledge, threatened, against Countrywide that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of Countrywide to sell the Countrywide Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(vi)        No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by Countrywide of, or compliance by Countrywide with, this Agreement or the consummation of the transactions contemplated hereby, or if any such consent, approval, authorization or order is required, Countrywide has obtained the same.

(vii)       The information set forth on Exhibit F-1 hereto with respect to each  Countrywide Mortgage Loan is true and correct in all material respects as of the Closing Date.

(viii)      Countrywide will treat the transfer of the Countrywide Mortgage Loans to the Depositor as a sale of the Countrywide Mortgage Loans for all tax, accounting and regulatory purposes.

(ix)        None of the Mortgage Loans are more than 60 days delinquent in payment of principal and interest.

(x)        No Mortgage Loan secured by a first lien on the related Mortgaged Property had a Loan-to-Value Ratio at origination in excess of 100%.

(xi)        Each Mortgage Loan is secured by a valid and enforceable first or second lien on the related Mortgaged Property, subject only to (1) the lien of non-delinquent current real property taxes and assessments and the lien of the related first mortgage in the case of a second lien Mortgage Loan, (2) covenants, conditions and restrictions, rights of way, easements and other matters of public record as of the date of recording of such Mortgage, such exceptions appearing of record being acceptable to mortgage lending institutions generally or specifically reflected in the appraisal made in connection with the origination of the related Mortgage Loan, and (3) other matters to which like properties are commonly subject that do not materially interfere with the benefits of the security intended to be provided by such Mortgage.

(xii)       Immediately prior to the assignment of the Countrywide Mortgage Loans to the Depositor, Countrywide had good title to, and was the sole owner of, such 

 

 

Countrywide Mortgage Loans free and clear of any pledge, lien, encumbrance or security interest and had full right and authority, subject to no interest or participation of, or agreement with, any other party, to sell and assign the same pursuant to this Agreement.

(xiii)      There is no delinquent tax or assessment lien against any Mortgaged Property.

(xiv)      There is no valid offset, claim, defense or counterclaim to any Mortgage Note or Mortgage, including the obligation of the Mortgagor to pay the unpaid principal of or interest on such Mortgage Note.

(xv)       There are no mechanics’ liens or claims for work, labor or material affecting any Mortgaged Property that are or may be a lien prior to, or equal with, the lien of such Mortgage, except those that are insured against by the title insurance policy referred to in item (xviii) below.

(xvi)      As of the Closing Date, to the best of Countrywide’s knowledge, each Mortgaged Property is free of material damage and is in good repair.

(xvii)     As of the Closing Date neither Countrywide nor any prior holder of any Mortgage has modified the Mortgage in any material respect (except that a Mortgage Loan may have been modified by a written instrument that has been recorded or submitted for recordation, if necessary, to protect the interests of the Certificateholders and the original or a copy of which has been delivered to the Trustee); satisfied, cancelled or subordinated such Mortgage in whole or in part; released the related Mortgaged Property in whole or in part from the lien of such Mortgage; or executed any instrument of release, cancellation, modification (except as expressly permitted above) or satisfaction with respect thereto.

(xviii)    A lender’s policy of title insurance together with a condominium endorsement and extended coverage endorsement, if applicable, in an amount at least equal to the Cut-off Date Stated Principal Balance of each such Mortgage Loan or a commitment (binder) to issue the same was effective on the date of the origination of each Mortgage Loan, each such policy is valid and remains in full force and effect, and each such policy was issued by a title insurer qualified to do business in the jurisdiction where the Mortgaged Property is located and acceptable to Fannie Mae or Freddie Mac and is in a form acceptable to Fannie Mae or Freddie Mac, which policy insures Countrywide and successor owners of indebtedness secured by the insured Mortgage, as to the first priority lien, of the Mortgage subject to the exceptions set forth in paragraph (iv)
above and against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the Mortgage providing for adjustment in the mortgage interest rate and/or monthly payment; to the best of Countrywide’s knowledge, no claims have been made under such mortgage title insurance policy and no prior holder of the related Mortgage, including Countrywide, has done, by act or omission, anything that would impair the coverage of such mortgage title insurance policy.

 

 

(xix)      No Mortgage Loan was the subject of a Principal Prepayment in full between the Closing Date and the Cut-off Date.

(xx)       To the best of Countrywide’s knowledge, all of the improvements that were included for the purpose of determining the Appraised Value of the Mortgaged Property lie wholly within the boundaries and building restriction lines of such property, and no improvements on adjoining properties encroach upon the Mortgaged Property.

(xxi)      To the best of Countrywide’s knowledge, no improvement located on or being part of the Mortgaged Property is in violation of any applicable zoning law or regulation.  To the best of Countrywide’s knowledge, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities, unless the lack thereof would not have a material adverse effect on the value of such Mortgaged Property, and the Mortgaged Property is lawfully occupied under applicable law.

(xxii)     The Mortgage Note and the related Mortgage are genuine, and each is the legal, valid and binding obligation of the maker thereof, enforceable in accordance with its terms and under applicable law, except that (a) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.  To the best of Countrywide’s knowledge, all parties to the Mortgage Note and the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage and each Mortgage Note and Mortgage have been duly and properly executed by such parties.

(xxiii)    The proceeds of the Mortgage Loan have been fully disbursed, there is no requirement for future advances thereunder, and any and all requirements as to completion of any on-site or off-site improvements and as to disbursements of any escrow funds therefor have been complied with.  All costs, fees and expenses incurred in making, or closing or recording the Mortgage Loans were paid.

(xxiv)    The related Mortgage contains customary and enforceable provisions that render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise by judicial foreclosure.

(xxv)     With respect to each Mortgage constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Certificateholders to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the Mortgagor.

 

 

(xxvi)    Each Mortgage Note and each Mortgage is in substantially one of the forms attached hereto as Exhibit P acceptable in form to Fannie Mae or Freddie Mac.

(xxvii)    There exist no deficiencies with respect to escrow deposits and payments, if such are required, for which customary arrangements for repayment thereof have not been made, and no escrow deposits or payments of other charges or payments due Countrywide have been capitalized under the Mortgage or the related Mortgage Note.

(xxviii)     The origination, underwriting, servicing and collection practices used by Countrywide with respect to each Mortgage Loan have been in all respects legal, proper, prudent and customary in the mortgage lending and servicing business.

(xxix)    There is no pledged account or other security other than real estate securing the Mortgagor’s obligations.

(xxx)     No Mortgage Loan has a shared appreciation feature, or other contingent interest feature.

(xxxi)    Each Mortgage Loan contains a customary “due on sale” clause.

(xxxii)   No more than approximately 5.15% and 4.67% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by two-family dwellings.  No more than approximately 2.02% and 1.79% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by three-family dwellings. No more than approximately 0.89% and 0.79% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by four-family dwellings.  No more than approximately 4.13% and 5.50% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by condominium units.  No more than approximately 0.24% and 0.71% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by high rise condominium units. No more than approximately 77.96% and 72.66% of the Mortgage Loans in Loan Group 1 and Loan
Group 2, respectively, are secured by single family detached dwellings.  None of the Mortgage Loans in Loan Group 1 and no more than approximately 0.36% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by manufactured housing.  No more than approximately 9.56% and 13.33% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by PUDs.

(xxxiii)   No Mortgage Loan in Loan Group 1 and Loan Group 2 had a principal balance in excess of $498,297 and $705,476 respectively, at origination.

(xxxiv)  To the extent required under applicable law, each originator and subsequent mortgagee or servicer of the Mortgage Loan complied with all licensing requirements and was authorized to transact and do business in the jurisdiction in which the related Mortgaged Property is located at all times when it held or serviced the Mortgage Loan.  Any and all requirements of any federal, state or local laws or regulations, including, without limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit protection, anti-predatory lending, fair credit reporting, 

 

 

unfair collection practice, equal credit opportunity, fair housing and disclosure laws and regulations, applicable to the solicitation, origination, collection and servicing of such Mortgage Loan have been complied with in all material respects; and any obligations of the holder of the Mortgage Note, Mortgage and other loan documents have been complied with in all material respects; servicing of each Mortgage Loan has been in accordance with prudent mortgage servicing standards, any applicable laws, rules and regulations and in accordance with the terms of the Mortgage Notes, Mortgage and other loan documents, whether such origination and servicing was done by Seller, its affiliates, or any third party which originated the Mortgage Loan on behalf of, or sold the Mortgage Loan to, any of them, or any servicing agent of any of the foregoing;

(xxxv)   Each Mortgage Loan was originated on or after March 7, 2003;

(xxxvi)  Each One-Year Hybrid Mortgage Loan had an initial Adjustment Date no later than January 1, 2006; each Two-Year Hybrid Mortgage Loan had an initial Adjustment Date no later than February 1, 2007; each Three-Year Hybrid Mortgage Loan had an initial Adjustment Date no later than January 1, 2008; each Five-Year Hybrid Mortgage Loan had an initial Adjustment Date no later than January 1, 2010.

(xxxvii)  Approximately 82.37% and 84.13% of the Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, provide for a prepayment penalty.

(xxxviii) On the basis of representations made by the Mortgagors in their loan applications, no less than approximately 94.41% and 97.12% of the owner-occupied Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by owner-occupied Mortgaged Properties that are primary residences and no more than approximately 0.27% and 0.12% of the owner-occupied Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are secured by owner-occupied Mortgaged Properties that are secondary residences.

(xxxix)    At the Cut-off Date, the improvements upon each Mortgaged Property are covered by a valid and existing hazard insurance policy with a generally acceptable carrier that provides for fire and extended coverage and coverage for such other hazards as are customary in the area where the Mortgaged Property is located in an amount that is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan or (ii) the greater of (a) the outstanding principal balance of the Mortgage Loan and (b) an amount such that the proceeds of such policy shall be sufficient to prevent the Mortgagor and/or the mortgagee from becoming a co-insurer.  If the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy for the condominium unit.  All such individual insurance policies and
all flood policies referred to in item (xl) below contain a standard mortgagee clause naming Countrywide or the original mortgagee, and its successors in interest, as mortgagee, and Countrywide has received no notice that any premiums due and payable thereon have not been paid; the Mortgage obligates the Mortgagor thereunder to maintain all such insurance, including flood insurance, at the Mortgagor’s cost and expense, and upon the Mortgagor’s failure to do so, authorizes the holder of the Mortgage to obtain 

 

 

and maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from the Mortgagor.

(xl)        If the Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy in a form meeting the requirements of the current guidelines of the Flood Insurance Administration is in effect with respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (A) the original outstanding principal balance of the Mortgage Loan, (B) the minimum amount required to compensate for damage or loss on a replacement cost basis, or (C) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973, as amended.

(xli)       To the best of Countrywide’s knowledge, there is no proceeding occurring, pending or threatened for the total or partial condemnation of the Mortgaged Property.

(xlii)      There is no material monetary default existing under any Mortgage or the related Mortgage Note and, to the best of Countrywide’s knowledge, there is no material event that, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration under the Mortgage or the related Mortgage Note; and Countrywide has not waived any default, breach, violation or event of acceleration.

(xliii)     Each Mortgaged Property is improved by a one- to four-family residential dwelling, including condominium units and dwelling units in PUDs.  To the best of Countrywide’s knowledge, no Mortgaged Property includes a cooperative or a mobile home or constitutes other than real property under state law.

(xliv)     Each Mortgage Loan is being serviced by the Master Servicer, or, if a Mortgage Loan is being serviced by the originator of such Mortgage Loan, the Master Servicer and the originator have agreed to transfer the servicing of such Mortgage Loan on or prior to June 1, 2005.

(xlv)      Any future advances made prior to the Cut-off Date have been consolidated with the outstanding principal amount secured by the Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the Mortgage Loan Schedule.  The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan.  The Mortgage Note does not permit or obligate the Master Servicer to make future advances to the Mortgagor at the option of the Mortgagor.

(xlvi)     All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents that previously became due and owing have been paid, or an escrow of funds has been established in an amount sufficient to pay for every such item that remains unpaid and that has been assessed, but is not yet due and payable.  Except for (A) payments in the nature of escrow payments, 

 

 

and (B) interest accruing from the date of the Mortgage Note or date of disbursement of the Mortgage proceeds, whichever is later, to the day that precedes by one month the Due Date of the first installment of principal and interest, including without limitation, taxes and insurance payments, the Master Servicer has not advanced funds, or induced, solicited or knowingly received any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any amount required by the Mortgage.

(xlvii)    The Mortgage Loans were underwritten in all material respects in accordance with customary and prudent underwriting guidelines generally used by originators of credit blemished quality mortgage loans.

(xlviii)    Prior to the approval of the Mortgage Loan application, an appraisal of the related Mortgaged Property was obtained from a qualified appraiser, duly appointed by the originator, who had no interest, direct or indirect, in the Mortgaged Property or in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan; such appraisal is in a form acceptable to Fannie Mae and Freddie Mac.

(xlix)     None of the Mortgage Loans is a graduated payment mortgage loan or a growing equity mortgage loan, and no Mortgage Loan is subject to a buydown or similar arrangement.

(l)         The Mortgage Rates borne by the Mortgage Loans in Loan Group 1 as of the Cut-off Date ranged from 4.700% per annum to 11.250% per annum and the weighted average Mortgage Rate as of the Cut-off Date was 7.100% per annum. The Mortgage Rates borne by the Mortgage Loans in Loan Group 2 as of the Cut-off Date ranged from 4.700% per annum to 12.990% per annum and the weighted average Mortgage Rate as of the Cut-off Date was 6.909% per annum.

(li)         The Mortgage Loans were selected from among the outstanding one- to four-family mortgage loans in the Sellers’ portfolio at the Closing Date, as to which the representations and warranties made as to the Mortgage Loans set forth in this Section 2.03(b) can be made.  No selection was made in a manner that would adversely affect the interests of Certificateholders.

(lii)        The Gross Margins on the Adjustable Rate Mortgage Loans that are Mortgage Loans in Loan Group 1 range from approximately 4.500% to 9.040% and the weighted average Gross Margin was approximately 6.475%. The Gross Margins on the Adjustable Rate Mortgage Loans that are Mortgage Loans in Loan Group 2 range from approximately 4.500% to 8.740% and the weighted average Gross Margin was approximately 6.290%.

(liii)       Each Mortgage Loan has a payment date on or before the Due Date in the month of the first Distribution Date.

 

 

(liv)       The Mortgage Loans, individually and in the aggregate, conform in all material respects to the descriptions thereof in the Prospectus Supplement.

(lv)        There is no obligation on the part of Countrywide under the terms of the Mortgage or related Mortgage Note to make payments in addition to those made by the Mortgagor.

(lvi)       Any leasehold estate securing a Mortgage Loan has a term of not less than five years in excess of the term of the related Mortgage Loan.

(lvii)      No Mortgage Loan was either a “consumer credit contract” or a “purchase money loan” as such terms are defined in 16 C.F.R. Section 433 nor is any Mortgage Loan a “mortgage” as defined in 15 U.S.C. § 1602(aa).

(lviii)     The information set forth in the Prepayment Charge Schedule with respect to each Mortgage Loan is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms under applicable law upon the Mortgagor’s full and voluntary principal prepayment (except to the extent that: (1) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally; or (2) the collectibility thereof may be limited due to acceleration in connection with a foreclosure or other involuntary prepayment).

(lix)       Each Mortgage Loan in Loan Group 1 had an original principal balance that conforms to Freddie Mac guidelines concerning original principal balance limits at the time of the origination of such Mortgage Loan.

(lx)        No Mortgage Loan in Loan Group 1 imposes a prepayment penalty in excess of three years beyond the related date of origination of such Mortgage Loan.

(lxi)       With respect to each Mortgage Loan in Loan Group 1, the Master Servicer has fully furnished, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis.

(lxii)      Each Mortgage Loan in Loan Group 1 represents a “qualified mortgage” within the meaning of Section 860(a)(3) of the Code (but without regard to the rule in Treasury Regulation § 1.860G 2(f)(2) that treats a defective obligation as a qualified mortgage, or any substantially similar successor provision) and applicable Treasury regulations promulgated thereunder.

(lxiii)     With respect to any Mortgage Loan in Loan Group 1, (a) the related borrower (i) was not required to purchase any single premium credit insurance policy (e.g., life, disability, accident, unemployment, or health insurance product) or debt cancellation agreement as a condition of obtaining the extension of credit and (ii) did not obtain a prepaid single premium credit insurance policy (e.g., life, disability, accident, 

 

 

unemployment, mortgage, or health insurance) in connection with the origination of such Mortgage Loan and (b) the related loan proceeds were not used to purchase single premium credit insurance policies or debt cancellation agreements as part of the origination of, or as a condition to closing, such Mortgage Loan.

(lxiv)     With respect to (a) any Mortgage Loan in Loan Group 1 originated by Countrywide from August 1, 2004 through April 30, 2005 and (b) any Mortgage Loan in Loan Group 1 originated by any other entity through April 30, 2005, if the related Mortgage or the related Mortgage Note, or any document relating to the loan transaction, contains a mandatory arbitration clause (that is, a clause that requires the borrower to submit to arbitration to resolve any dispute arising out of or relating in any way to the mortgage loan transaction), Countrywide (i) will notify the related borrower in writing within 60 days after the issuance of the Certificates that none of the Sellers, the Master Servicer or any subsequent party that acquires an interest in such Mortgage Loan or services such Mortage Loan will
enforce such arbitration clause against the borrower, but that the borrower will continue to have the right to submit a dispute to arbitration and (ii) will place a copy of such notice in the Mortgage File.

(lxv)      No mortgage loan in Loan Group 1 was originated on or after October 1, 2002 and before March 7, 2003 which is secured by property located in the State of Georgia and there is no Mortgage Loan in Loan Group 1 that was originated on or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending Act.

(lxvi)     No Mortgage Loan in Loan Group 1 is covered by the Home Ownership and Equity Protection Act of 1994.

(lxvii)    No Mortgage Loan in Loan Group 1 is a “high cost home,” “covered” (excluding home loans defined as "covered home loans" in the New Jersey Home Ownership Security Act of 2002 that were originated between November 26, 2003 and July 7, 2004), “high risk home” or “predatory” loan under any applicable state, federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).

(lxviii)    No Mortgage Loan is a High Cost Loan or Covered Loan, as applicable (as such terms are defined in Standard & Poor's LEVELS® Glossary, Version 5.6b Revised, Appendix E, attached hereto as Exhibit V) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act.

(c)            [reserved]

(d)            Countrywide and Park Sienna, jointly and severally, (and with respect to item (ix) below, Park Sienna only) hereby represents and warrants to the Depositor, the Master Servicer and the Trustee as follows, as of the Cut-off Date:

 

 

(i)         Park Sienna is duly organized as a Delaware limited liability company and is validly existing and in good standing 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 Park Sienna 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 Park Sienna Mortgage Loan, to sell the Park Sienna Mortgage Loans in accordance with the terms of this Agreement and to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(ii)         Park Sienna has the full corporate power and authority to sell each Park Sienna Mortgage Loan, and to execute, deliver and perform, and to enter into and consummate the transactions contemplated by this Agreement and has duly authorized by all necessary corporate action on the part of Park Sienna the execution, delivery and performance of this Agreement; and this Agreement , assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of Park Sienna, enforceable against Park Sienna in accordance with its terms, except that (a) the enforceability hereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (b) the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

(iii)        The execution and delivery of this Agreement by Park Sienna, the sale of the Park Sienna Mortgage Loans by Park Sienna under this Agreement, the consummation of any other of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in the ordinary course of business of Park Sienna and will not (A) result in a material breach of any term or provision of the charter or by-laws of Park Sienna or (B) materially conflict with, result in a material breach, violation or acceleration of, or result in a material default under, the terms of any other material agreement or instrument to which Park Sienna is a party or by which it may be bound, or (C) constitute a material violation of any statute, order or regulation applicable to Park Sienna of any court,
regulatory body, administrative agency or governmental body having jurisdiction over Park Sienna; and Park Sienna is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair Park Sienna’s ability to perform or meet any of its obligations under this Agreement.

(iv)        Park Sienna is an approved seller of conventional mortgage loans for Fannie Mae or Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to sections 203 and 211 of the National Housing Act.

(v)        No litigation is pending or, to the best of Park Sienna’s knowledge, threatened, against Park Sienna that would materially and adversely affect the execution, 

 

 

delivery or enforceability of this Agreement or the ability of Park Sienna to sell the Park Sienna Mortgage Loans or to perform any of its other obligations under this Agreement in accordance with the terms hereof.

(vi)        No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by Park Sienna of, or compliance by Park Sienna with, this Agreement or the consummation of the transactions contemplated hereby, or if any such consent, approval, authorization or order is required, Park Sienna has obtained the same.

(vii)       The information set forth on Exhibit F-1 hereto with respect to each  Park Sienna Mortgage Loan is true and correct in all material respects as of the Closing Date.

(viii)      Park Sienna will treat the transfer of the Park Sienna Mortgage Loans to the Depositor as a sale of the Park Sienna Mortgage Loans for all tax, accounting and regulatory purposes.

(ix)        Immediately prior to the assignment of the Park Sienna Mortgage Loans to the Depositor, Park Sienna had good title to, and was the sole owner of, such Park Sienna Mortgage Loans free and clear of any pledge, lien, encumbrance or security interest and had full right and authority, subject to no interest or participation of, or agreement with, any other party, to sell and assign the same pursuant to this Agreement.

(e)            Upon discovery by any of the parties hereto of a breach of a representation or warranty set forth in Section 2.03(a), (b), (c) or (d), that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, the party discovering such breach shall give prompt notice thereof to the other parties. Any breach of a representation set forth in Section 2.03(b)(lix) through Section 2.03(b)(lxvii) with respect to a Mortgage Loan in Loan Group 1 shall be deemed to materially and adversely affect the Certificateholders.  Each of the Master Servicer and each Seller (each, a “Representing Party”) hereby covenants with respect to a breach of the representations and warranties set forth in Sections 2.03(a), (b), (c) or (d), as applicable, that within 90 days of the earlier of the discovery
by such Representing Party or receipt of written notice by such Representing Party from any party of a breach of any representation or warranty set forth herein made that materially and adversely affects the interests of the Certificateholders in any Mortgage Loan, it shall cure such breach in all material respects and, if such breach is not so cured, shall, (i) if such 90 day period expires prior to the second anniversary of the Closing Date, remove such Mortgage Loan (a “Deleted Mortgage Loan”) from the Trust Fund and substitute in its place a Replacement Mortgage Loan, in the manner and subject to the conditions set forth in this Section; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at the Purchase Price in the manner set forth below; provided that any such substitution pursuant to (i) above or repurchase pursuant to (ii) above shall not be effected prior to the delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof and any such substitution pursuant to (i) above shall not be effected prior to the additional delivery to the Trustee of a Request for Release substantially in the form of Exhibit M.  Any Representing Party liable for a breach under this Section 2.03 shall promptly reimburse the Master Servicer and the Trustee for any expenses reasonably incurred by the Master Servicer or the Trustee in respect of enforcing the remedies for such breach.  To enable 

 

 

the Master Servicer to amend the Mortgage Loan Schedule, any Representing Party liable for a breach under this Section 2.03 shall, unless it cures such breach in a timely fashion pursuant to this Section 2.03, promptly notify the Master Servicer whether such Representing Party intends either to repurchase, or to substitute for, the Mortgage Loan affected by such breach.  With respect to the representations and warranties described in this Section that are made to the best of the Representing Party’s knowledge, if it is discovered by any of the Depositor, the Master Servicer, any Seller or the Trustee that the substance of such representation and warranty is inaccurate and such inaccuracy materially and adversely affects the value of the related Mortgage Loan, notwithstanding the Representing Party’s lack of knowledge with respect to the substance of such representation or warranty, such
inaccuracy shall be deemed a breach of the applicable representation or warranty.

With respect to any Replacement Mortgage Loan or Loans sold by a Seller, Countrywide (on its own behalf and on behalf of each Seller), delivering such Replacement Mortgage Loan shall deliver to the Trustee for the benefit of the Certificateholders the related Mortgage Note, Mortgage and assignment of the Mortgage, and such other documents and agreements as are required by Section 2.01, with the Mortgage Note endorsed and the Mortgage assigned as required by Section 2.01.  No substitution will be made in any calendar month after the Determination Date for such month.  Scheduled Payments due with respect to Replacement Mortgage Loans in the Due Period related to the Distribution Date on which such proceeds are to be distributed shall not be part of the Trust Fund and will be retained by Countrywide (on its own behalf and on behalf of each Seller) delivering such Replacement Loan on such
Distribution Date.  For the month of substitution, distributions to Certificateholders will include the Scheduled Payment due on any Deleted Mortgage Loan for the related Due Period and thereafter such Seller shall be entitled to retain all amounts received in respect of such Deleted Mortgage Loan.  The Master Servicer shall amend the Mortgage Loan Schedule for the benefit of the Certificateholders to reflect the removal of such Deleted Mortgage Loan and the substitution of the Replacement Mortgage Loan or Loans and the Master Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee.  Upon such substitution, the Replacement Mortgage Loan or Loans shall be subject to the terms of this Agreement in all respects, and Countrywide (on its own behalf and on behalf of each Seller) delivering such Replacement Mortgage Loan shall be deemed to have made with respect to such Replacement Mortgage Loan or Loans, as of the date of substitution, the representations and warranties set
forth in Section 2.03(b) with respect to such Mortgage Loan.  Upon any such substitution and the deposit to the Certificate Account of the amount required to be deposited therein in connection with such substitution as described in the following paragraph, the Trustee shall release to the Representing Party the Mortgage File relating to such Deleted Mortgage Loan and held for the benefit of the Certificateholders and shall execute and deliver at the Master Servicer’s direction such instruments of transfer or assignment as have been prepared by the Master Servicer, in each case without recourse, as shall be necessary to vest in the relevant Seller, or its respective designee, title to the Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this Section 2.03.

For any month in which a Seller substitutes one or more Replacement Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will determine the amount (if any) by which the aggregate principal balance of all such Replacement Mortgage Loans as of the date of substitution is less than the Stated Principal Balance (after application of the principal portion 

 

 

of the Scheduled Payment due in the month of substitution) of all such Deleted Mortgage Loans, and costs and damages incurred by the Trust Fund in connection with a repurchase pursuant to Section 2.03 hereof that arise out of a violation of any predatory or abusive lending law which also constitutes an actual breach of representation (xxxiv) of Section 2.03(b) hereof.  An amount equal to the aggregate of the deficiencies described in the preceding sentence (such amount, the “Substitution Adjustment Amount”) shall be forwarded by Countrywide (on its own behalf and on behalf of each Seller) to the Master Servicer and deposited by the Master Servicer into the Certificate Account not later than the Determination Date for the Distribution Date relating to the Prepayment Period during which the related Mortgage Loan became required to be purchased or replaced hereunder.

In the event that a Seller shall have repurchased a Mortgage Loan, the Purchase Price therefor shall be deposited in the Certificate Account pursuant to Section 3.08 on the Determination Date for the Distribution Date in the month following the month during which such Seller became obligated to repurchase or replace such Mortgage Loan and upon such deposit of the Purchase Price, the delivery of the Opinion of Counsel required by Section 2.05, if any, and the receipt of a Request for Release in the form of Exhibit N hereto, the Trustee shall release the related Mortgage File held for the benefit of the Certificateholders to such Seller, and the Trustee shall execute and deliver at such Person’s direction the related instruments of transfer or assignment prepared by such Seller, in each case without recourse, as shall be necessary to transfer title from the Trustee for the benefit of
the Certificateholders and transfer the Trustee’s interest to such Seller to any Mortgage Loan purchased pursuant to this Section 2.03.  It is understood and agreed that the obligation under this Agreement of each Seller to cure, repurchase or replace any Mortgage Loan as to which a breach has occurred and is continuing shall constitute the sole remedy against such Seller respecting such breach available to Certificateholders, the Depositor or the Trustee.

(f)             The representations and warranties set forth in Section 2.03 hereof shall survive delivery of the respective Mortgage Files to the Trustee for the benefit of the Certificateholders.

	
            Section 2.04
 	
            Representations and Warranties of the Depositor.
 

The Depositor hereby represents and warrants to each Seller, the Master Servicer and the Trustee as follows, as of the date hereof:

(i)         The Depositor is duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has full power and authority (corporate and other) necessary to own or hold its properties and to conduct its business as now conducted by it and to enter into and perform its obligations under this Agreement.

(ii)         The Depositor has the full corporate power and authority to execute, deliver and perform, and to enter into and consummate the transactions contemplated by, this Agreement and has duly authorized, by all necessary corporate action on its part, the execution, delivery and performance of this Agreement; and this Agreement, assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes a legal, valid and binding obligation of the Depositor, enforceable against the Depositor in accordance with its terms, subject, as to enforceability, to (i) bankruptcy, insolvency, reorganization, moratorium and other similar laws 

 

 

affecting creditors’ rights generally and (ii) general principles of equity, regardless of whether enforcement is sought in a proceeding in equity or at law.

(iii)        The execution and delivery of this Agreement by the Depositor, the consummation of the transactions contemplated by this Agreement, and the fulfillment of or compliance with the terms hereof and thereof are in the ordinary course of business of the Depositor and will not (A) result in a material breach of any term or provision of the charter or by-laws of the Depositor or (B) materially conflict with, result in a material breach, violation or acceleration of, or result in a material default under, the terms of any other material agreement or instrument to which the Depositor is a party or by which it may be bound or (C) constitute a material violation of any statute, order or regulation applicable to the Depositor of any court, regulatory body, administrative agency or governmental body having jurisdiction over the Depositor; and the
Depositor is not in breach or violation of any material indenture or other material agreement or instrument, or in violation of any statute, order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over it which breach or violation may materially impair the Depositor’s ability to perform or meet any of its obligations under this Agreement.

(iv)        No litigation is pending, or, to the best of the Depositor’s knowledge, threatened, against the Depositor that would materially and adversely affect the execution, delivery or enforceability of this Agreement or the ability of the Depositor to perform its obligations under this Agreement in accordance with the terms hereof and thereof.

(v)        No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Depositor of, or compliance by the Depositor with, this Agreement or the consummation of the transactions contemplated hereby, or if any such consent, approval, authorization or order is required, the Depositor has obtained the same.

The Depositor hereby represents and warrants to the Trustee with respect to each Mortgage Loan as of the Closing Date, that following the transfer of the Mortgage Loans to it by the Sellers, the Depositor had good title to the Mortgage Loans, and the related Mortgage Notes were subject to no offsets, claims, defenses or counterclaims.

It is understood and agreed that the representations and warranties set forth in the two immediately preceding paragraphs shall survive delivery of the Mortgage Files to the Trustee.  Upon discovery by the Depositor or the Trustee of a breach of any of the foregoing representations and warranties set forth in the immediately preceding paragraph (referred to herein as a “breach”), which breach materially and adversely affects the interest of the Certificateholders, the party discovering such breach shall give prompt written notice to the others and to each Rating Agency.  The Depositor hereby covenants with respect to the representations and warranties made by it in this Section 2.04 that within 90 days of the earlier of the discovery it or receipt of written notice by it from any party of a breach of any representation or warranty set forth herein made that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan, it shall cure such breach in all material respects and, if such breach is not so cured, shall repurchase or replace the affected Mortgage Loan or Loans in accordance with the procedure set forth in Section 2.03(c).

 

 

 

	
            Section 2.05
 	
            Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases.
 

(a)            Notwithstanding any contrary provision of this Agreement, with respect to any Mortgage Loan that is not in default or as to which default is not imminent, no repurchase or substitution pursuant to Sections 2.02, 2.03 or 2.04 shall be made unless the Representing Party making such repurchase or substitution delivers to the Trustee an Opinion of Counsel, addressed to the Trustee, to the effect that such repurchase or substitution would not (i) result in the imposition of the tax on “prohibited transactions” of the Trust Fund or contributions after the Closing Date, as defined in sections 860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are outstanding.  Any Mortgage Loan as to which repurchase or substitution was
delayed pursuant to this paragraph shall be repurchased or the substitution therefor shall occur (subject to compliance with Sections 2.02, 2.03 or 2.04) upon the earlier of (a) the occurrence of a default or imminent default with respect to such loan and (b) receipt by the Trustee of an Opinion of Counsel to the effect that such repurchase or substitution, as applicable, will not result in the events described in clause (i) or clause (ii) of the preceding sentence.

(b)            Upon discovery by the Depositor, any Seller, the Master 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 promptly (and in any event within 5 Business Days of discovery) give written notice thereof to the other parties.  In connection therewith, the Trustee shall require Countrywide (on its own behalf and on behalf of each Seller), at its option, to either (i) substitute, if the conditions in Section 2.03(b) with respect to substitutions are satisfied, a Replacement Mortgage Loan for the affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within 90 days of such discovery in the same manner as it would a Mortgage Loan for a breach of representation or
warranty contained in Section 2.03.  The Trustee shall reconvey to the relevant 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 contained in Section 2.03.

	
            Section 2.06
 	
            Authentication and Delivery of Certificates.
 

The Trustee acknowledges the transfer and assignment to it of the Trust Fund and, concurrently with such transfer and assignment, has executed, authenticated and delivered, to or upon the order of the Depositor, the Certificates in authorized denominations evidencing the entire ownership of the Trust Fund.  The Trustee agrees to hold the Trust Fund and exercise the rights referred to above for the benefit of all present and future Holders of the Certificates and to perform the duties set forth in this Agreement to the best of its ability, to the end that the interests of the Holders of the Certificates may be adequately and effectively protected.

	
            Section 2.07
 	
            Covenants of the Master Servicer.
 

The Master Servicer hereby covenants to the Depositor, each Seller and the Trustee as follows:

 

 

(a)            the Master Servicer shall comply in the performance of its obligations under this Agreement with all reasonable rules and requirements of the insurer under each Required Insurance Policy; and

(b)            no written information, certificate of an officer, statement furnished in writing or written report delivered to the Depositor, any affiliate of the Depositor or the Trustee and prepared by the Master Servicer pursuant to this Agreement will contain any untrue statement of a material fact or omit to state a material fact necessary to make the information, certificate, statement or report not misleading.

 

 

 

ARTICLE III

 

ADMINISTRATION AND SERVICING

OF MORTGAGE LOANS

	
            Section 3.01
 	
            Master Servicer to Service Mortgage Loans.
 

For and on behalf of the Certificateholders, the Master Servicer shall service and administer the Mortgage Loans in accordance with customary and usual standards of practice of prudent mortgage loan lenders in the respective states in which the Mortgaged Properties are located.  In connection with such servicing and administration, the Master Servicer shall have full power and authority, acting alone and/or through subservicers as provided in Section 3.02 hereof, subject to the terms hereof (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 (but only in the manner provided in this Agreement), (iii) to collect any Insurance Proceeds and other Liquidation Proceeds, and (iv) subject
to Section 3.12(a), to effectuate foreclosure or other conversion of the ownership of the Mortgaged Property securing any Mortgage Loan; provided that the Master Servicer shall take no action that is inconsistent with or prejudices the interests of the Trust Fund or the Certificateholders in any Mortgage Loan or the rights and interests of the Depositor and the Trustee under this Agreement.  The Master Servicer shall represent and protect the interest of the Trust Fund in the same manner as it currently protects its own interest in mortgage loans in its own portfolio in any claim, proceeding or litigation regarding a Mortgage Loan and shall not make or permit any modification, waiver or amendment of any term of any Mortgage Loan which would cause any REMIC to fail to qualify as a REMIC or result in the imposition of any tax under Section 860(a) or 860(d) of the Code, but in any case not in any manner that is a lesser standard than that provided in the first sentence of this Section
3.01. Without limiting the generality of the foregoing, the Master Servicer, in its own name or in the name of the Depositor and the Trustee, is hereby authorized and empowered by the Depositor and the Trustee, when the Master Servicer believes it appropriate in its reasonable judgment, to execute and deliver, on behalf of the Trustee, the Depositor, the Certificateholders or any of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge and all other comparable instruments, with respect to the Mortgage Loans, and with respect to the Mortgaged Properties held for the benefit of the Certificateholders.  The Master Servicer shall prepare and deliver to the Depositor and/or the Trustee such documents requiring execution and delivery by any or all of them as are necessary or appropriate to enable the Master Servicer to service and administer the Mortgage Loans.  Upon receipt of such documents, the Depositor and/or the Trustee shall execute
such documents and deliver them to the Master Servicer.  The Master 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 Subservicer, when the Master Servicer or the Subservicer, as the case may be, believes it 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.

In accordance with the standards of the preceding paragraph, the Master Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the payment of taxes and assessments on the Mortgaged Properties, which advances shall be reimbursable in the first instance from related collections from the Mortgagors pursuant to Section 3.06, and further as provided in Section 3.08.  All costs incurred by the Master Servicer, if any, in effecting the timely payments of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for the purpose of calculating monthly distributions to the Certificateholders, be added to the Stated Principal Balance under the related Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so permit.

The Master Servicer shall deliver a list of Servicing Officers to the Trustee by the Closing Date.

	
            Section 3.02
 	
            Subservicing; Enforcement of the Obligations of Master Servicer.
 

(a)            The Master Servicer may arrange for the subservicing of any Mortgage Loan by a subservicer (each, a “Subservicer”) pursuant to a subservicing agreement (each, a “Subservicing Agreement”); provided that such subservicing arrangement and the terms of the related subservicing agreement must provide for the servicing of such Mortgage Loans in a manner consistent with the servicing arrangements contemplated hereunder.  Notwithstanding the provisions of any subservicing agreement, any of the provisions of this Agreement relating to agreements or arrangements between the Master Servicer or a subservicer or reference to actions taken through a Master Servicer or otherwise, the Master 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 subservicing agreements or arrangements or by virtue of indemnification from the subservicer and to the same extent and under the same terms and conditions as if the Master Servicer alone were servicing and administering the Mortgage Loans.  Every subservicing agreement entered into by the Master Servicer shall contain a provision giving the successor Master Servicer the option to terminate such agreement in the event a successor Master Servicer is appointed.  All actions of each subservicer performed pursuant to the related subservicing agreement shall be performed as an agent of the Master Servicer with the same force and effect as if performed directly by the Master Servicer.

(b)            For purposes of this Agreement, the Master Servicer shall be deemed to have received any collections, recoveries or payments with respect to the Mortgage Loans that are received by a subservicer regardless of whether such payments are remitted by the subservicer to the Master Servicer.

 

 

 

	
            Section 3.03
 	
            Rights of the Depositor, the Sellers and the Trustee in Respect of the Master Servicer.
 

None of the Trustee, any of the Sellers or the Depositor shall have any responsibility or liability for any action or failure to act by the Master Servicer, and none of them is obligated to supervise the performance of the Master Servicer hereunder or otherwise.

	
            Section 3.04
 	
            Trustee to Act as Master Servicer.
 

In the event that the Master Servicer shall for any reason no longer be the Master Servicer hereunder (including by reason of an Event of Default), the Trustee or its designee shall thereupon assume all of the rights and obligations of the Master Servicer hereunder arising thereafter (except that the Trustee shall not be (i) liable for losses of the Master Servicer pursuant to Section 3.10 hereof or any acts or omissions of the predecessor Master Servicer hereunder, (ii) obligated to make Advances if it is prohibited from doing so by applicable law, (iii) obligated to effectuate repurchases or substitutions of Mortgage Loans hereunder, including pursuant to Section 2.02 or 2.03 hereof, (iv) responsible for expenses of the Master Servicer pursuant to Section 2.03 or (v) deemed to have made any representations and warranties hereunder, including pursuant to Section 2.03 or the first
paragraph of Section 6.02 hereof).  If the Master Servicer shall for any reason no longer be the Master Servicer (including by reason of any Event of Default), the Trustee (or any other successor servicer) may, at its option, succeed to any rights and obligations of the Master Servicer under any subservicing agreement in accordance with the terms thereof; provided that the Trustee (or any other successor servicer) shall not incur any liability or have any obligations in its capacity as servicer under a subservicing agreement arising prior to the date of such succession unless it expressly elects to succeed to the rights and obligations of the Master Servicer thereunder; and the Master Servicer shall not thereby be relieved of any liability or obligations under the subservicing agreement arising prior to the date of such succession.

The Master Servicer shall, upon request of the Trustee, but at the expense of the Master Servicer, deliver to the assuming party all documents and records relating to each subservicing agreement and the Mortgage Loans then being serviced thereunder and an accounting of amounts collected held by it and otherwise use its best efforts to effect the orderly and efficient transfer of the subservicing agreement to the assuming party.

	
            Section 3.05
 	
            Collection of Mortgage Loan Payments; Certificate Account; Distribution Account; Seller Shortfall Interest Requirement.
 

(a)            The Master Servicer shall make reasonable efforts in accordance with customary and usual standards of practice of prudent mortgage lenders in the respective states in which the Mortgaged Properties are located to collect all payments called for under the terms and provisions of the Mortgage Loans to the extent such procedures shall be consistent with this Agreement and the terms and provisions of any related Required Insurance Policy.  Consistent with the foregoing, the Master Servicer may in its discretion (i) waive any late payment charge or any Prepayment Charge or penalty interest in connection with the prepayment of a Mortgage Loan and (ii) extend the due dates for payments due on a Mortgage Note for a period not greater than 270 days.  In the event of any such arrangement, the Master Servicer shall make Advances 

 

 

on the related Mortgage Loan during the scheduled period in accordance with the amortization schedule of such Mortgage Loan without modification thereof by reason of such arrangements.  The Master Servicer shall not be required to institute or join in litigation with respect to collection of any payment (whether under a Mortgage, Mortgage Note or otherwise or against any public or governmental authority with respect to a taking or condemnation) if it reasonably believes that enforcing the provision of the Mortgage or other instrument pursuant to which such payment is required is prohibited by applicable law.

(b)            The Master Servicer shall establish and maintain a Certificate Account into which the Master Servicer shall deposit or cause to be deposited on a daily basis within two Business Days of receipt, except as otherwise specifically provided herein, the following payments and collections remitted by Subservicers or received by it in respect of Mortgage Loans subsequent to the Cut-off Date (other than in respect of principal and interest due on the Mortgage Loans before the Cut-off Date) and the following amounts required to be deposited hereunder:

(i)         all payments on account of principal, including Principal Prepayments, on the Mortgage Loans;

(ii)        all payments on account of interest (other than interest accrued on the Mortgage Loans and due on or prior to the related Cut-off Date) on the Mortgage Loans net of the related Servicing Fee permitted under Section 3.15 and Prepayment Interest Excess;

(iii)       all Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries, other than proceeds to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures;

(iv)       all Compensating Interest;

(v)        any amount required to be deposited by the Master Servicer pursuant to Section 3.05(f) in connection with any losses on Permitted Investments;

(vi)        any amounts required to be deposited by the Master Servicer pursuant to Section 3.10 hereof;

(vii)       the Purchase Price and any Substitution Adjustment Amount;

(viii)      all Advances made by the Master Servicer pursuant to Section 4.01;

(ix)         the Seller Shortfall Interest Requirement;

(x)          all Prepayment Charges collected; and

(xi)         any other amounts required to be deposited hereunder.

 

 

The foregoing requirements for remittance by the Master Servicer into the Certificate Account shall be exclusive, it being understood and agreed that, without limiting the generality of the foregoing, payments in the nature of prepayment penalties, late payment charges or assumption fees, if collected, need not be remitted by the Master Servicer.  In the event that the Master Servicer shall remit any amount not required to be remitted and not otherwise subject to withdrawal pursuant to Section 3.08 hereof, it may at any time withdraw or direct the institution maintaining the Certificate Account, to withdraw such amount from the Certificate Account, any provision herein to the contrary notwithstanding.  Such withdrawal or direction may be accomplished by delivering written notice thereof to the institution maintaining the Certificate Account, that describes the amounts deposited in error
in the Certificate Account.  The Master Servicer shall maintain adequate records with respect to all withdrawals made pursuant to this Section.  All funds deposited in the Certificate Account shall be held in trust for the Certificateholders until withdrawn in accordance with Section 3.08.

(c)            The Trustee shall establish and maintain, on behalf of the Certificateholders, the Distribution Account.  The Trustee shall, promptly upon receipt, deposit in the Distribution Account and retain therein the following:

(i)         the aggregate amount remitted by the Master Servicer pursuant to the second paragraph of Section 3.08(a); and

(ii)         any amount required to be deposited by the Master Servicer pursuant to Section 3.05(f) in connection with any losses on Permitted Investments.

On the Closing Date, Countrywide shall make an initial deposit of $185.46 into the Distribution Account to be included in the funds available for distribution to Certificateholders in accordance with Section 4.04 on the first Distribution Date.

The foregoing requirements for remittance by the Master Servicer and deposit by the Trustee into the Distribution Account shall be exclusive.  In the event that the Master Servicer shall remit any amount not required to be remitted and not otherwise subject to withdrawal pursuant to Section 3.08 hereof, it may at any time direct the Trustee to withdraw such amount from the Distribution Account, any provision herein to the contrary notwithstanding.  Such direction may be accomplished by delivering a written notice to the Trustee that describes the amounts deposited in error in the Distribution Account.  All funds deposited in the Distribution Account shall be held by the Trustee in trust for the Certificateholders until disbursed in accordance with this Agreement or withdrawn in accordance with Section 3.08.  In no event shall the Trustee incur liability for withdrawals from the
Distribution Account at the direction of the Master Servicer.

(d)            No later than 1:00 p.m. Pacific time on the Business Day prior to the Master Servicer Advance Date in May 2005, Countrywide (on its own behalf and on behalf of each Seller) shall remit to the Master Servicer, and the Master Servicer shall deposit in the Certificate Account, the Seller Shortfall Interest Requirement (if any) for such Master Servicer Advance Date.

(e)            [reserved]

 

 

 

(f)             Each institution that maintains the Certificate Account or the Distribution Account shall invest the funds in each such account, as directed by the Master Servicer, in Permitted Investments, which shall mature not later than (x) in the case of the Certificate Account, the second Business Day next preceding the related Distribution Account Deposit Date (except that if such Permitted Investment is an obligation of the institution that maintains such Certificate Account, then such Permitted Investment shall mature not later than the Business Day next preceding such Distribution Account Deposit Date) and (y) in the case of the Distribution Account, the Business Day immediately preceding the first Distribution Date that follows the date of such investment (except that if such Permitted Investment is an obligation
of the institution that maintains such Distribution Account, then such Permitted Investment shall mature not later than such Distribution Date), in each case, shall not be sold or disposed of prior to its maturity.  All such Permitted Investments shall be made in the name of the Trustee, for the benefit of the Certificateholders.  In the case of the Certificate Account and the Distribution Account, all income and gain net of any losses realized from any such investment shall be for the benefit of the Master Servicer as servicing compensation and shall be remitted to it monthly as provided herein. The amount of any losses incurred in the Certificate Account or the Distribution Account in respect of any such investments shall be deposited by the Master Servicer in the Certificate Account or paid to the Trustee for deposit into the Distribution Account out of the Master Servicer’s own funds immediately as realized. Any losses incurred in the Carryover Reserve Fund in respect of any
such investments shall be charged against amounts on deposit in the Carryover Reserve Fund (or such investments) immediately as realized.  The Trustee shall not be liable for the amount of any loss incurred in respect of any investment or lack of investment of funds held in the Certificate Account, the Distribution Account, the Carryover Reserve Fund and made in accordance with this Section 3.05 (or in the case of the Carryover Reserve Fund, Section 4.08).

(g)            The Master Servicer shall give at least 30 days advance notice to the Trustee, Countrywide, each Rating Agency and the Depositor of any proposed change of location of the Certificate Account prior to any change thereof.  The Trustee shall give at least 30 days advance notice to the Master Servicer, Countrywide, each Rating Agency and the Depositor of any proposed change of the location of the Distribution Account, the Carryover Reserve Fund prior to any change thereof.

(h)            The Trustee shall establish and maintain, on behalf of the Class P Certificateholders, the Class P Distribution Account. Funds in the Class P Distribution Account shall be held in trust for the Class P Certificateholders for the uses and purposes set forth in this Agreement.  On the Closing Date, an amount equal to $100 shall be deposited in the Class P Distribution Account and shall be held in trust for the Class P Certificateholders for the uses and purposes set forth in this Agreement.  Such funds may not be invested.

	
            Section 3.06
 	
            Collection of Taxes, Assessments and Similar Items; Escrow Accounts.
 

To the extent required by the related Mortgage Note, the Master Servicer shall establish and maintain one or more accounts (each, an “Escrow Account”) and deposit and retain therein all collections from the Mortgagors (or advances by the Master Servicer) for the payment of taxes, assessments, hazard insurance premiums or comparable items for the account of the 

 

 

Mortgagors.  Nothing herein shall require the Master Servicer to compel a Mortgagor to establish an Escrow Account in violation of applicable law.

Withdrawals of amounts so collected from the Escrow Accounts may be made only to effect timely payment of taxes, assessments, hazard insurance premiums, condominium or PUD association dues, or comparable items, to reimburse the Master Servicer out of related collections for any payments made pursuant to Sections 3.01 hereof (with respect to taxes and assessments and insurance premiums) and 3.10 hereof (with respect to hazard insurance), to refund to any Mortgagors any sums as may be determined to be overages, to pay interest, if required by law or the terms of the related Mortgage or Mortgage Note, to Mortgagors on balances in the Escrow Account or to clear and terminate the Escrow Account at the termination of this Agreement in accordance with Section 9.01 hereof.  The Escrow Accounts shall not be a part of the Trust Fund.

	
            Section 3.07
 	
            Access to Certain Documentation and Information Regarding the Mortgage Loans.
 

The Master Servicer shall afford the Depositor and the Trustee reasonable access to all records and documentation regarding the Mortgage Loans and all accounts, insurance policies and other matters relating to this Agreement, such access being afforded without charge, but only upon reasonable request and during normal business hours at the offices of the Master Servicer designated by it.

Upon reasonable advance notice in writing if required by federal regulation, the Master Servicer will provide to each Certificateholder or Certificate Owner that is a savings and loan association, bank or insurance company certain reports and reasonable access to information and documentation regarding the Mortgage Loans sufficient to permit such Certificateholder or Certificate Owner to comply with applicable regulations of the OTS or other regulatory authorities with respect to investment in the Certificates; provided that the Master Servicer shall be entitled to be reimbursed by each such Certificateholder or Certificate Owner for actual expenses incurred by the Master Servicer in providing such reports and access.

	
            Section 3.08
 	
            Permitted Withdrawals from the Certificate Account, Distribution Account and the Carryover Reserve Fund.
 

(a)            The Master Servicer may from time to time make withdrawals from the Certificate Account for the following purposes:

(i)         to pay to the Master Servicer (to the extent not previously paid to or withheld by the Master Servicer), as servicing compensation in accordance with Section 3.15, that portion of any payment of interest that equals the Servicing Fee for the period with respect to which such interest payment was made, and, as additional servicing compensation, those other amounts set forth in Section 3.15;

(ii)         to reimburse each of the Master Servicer and the Trustee for Advances made by it with respect to the Mortgage Loans, such right of reimbursement pursuant to this subclause (ii) being limited to amounts received on particular Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds and Subsequent Recoveries) that represent late recoveries of payments of 

 

 

principal and/or interest on such particular Mortgage Loan(s) in respect of which any such Advance was made;

(iii)        to reimburse each of the Master Servicer and the Trustee for any Nonrecoverable Advance previously made by it;

(iv)        to reimburse the Master Servicer from Insurance Proceeds for Insured Expenses covered by the related Required Insurance Policy;

(v)        to pay the Master Servicer any unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing Advances, the Master Servicer’s right to reimbursement of Servicing Advances pursuant to this subclause (v) with respect to any Mortgage Loan being limited to amounts received on particular Mortgage Loan(s) (including, for this purpose, Liquidation Proceeds and Subsequent Recoveries and purchase and repurchase proceeds) that represent late recoveries of the payments for which such advances were made pursuant to Section 3.01 or Section 3.06;

(vi)        to pay to the applicable Seller, the Depositor or the Master Servicer, as applicable, with respect to each Mortgage Loan or property acquired in respect thereof that has been purchased pursuant to Section 2.02, 2.03 or 3.12, all amounts received thereon and not taken into account in determining the related Stated Principal Balance of such repurchased Mortgage Loan;

(vii)       to reimburse the applicable Seller, the Master Servicer or the Depositor for expenses incurred by any of them in connection with the Mortgage Loans or Certificates and reimbursable pursuant to Section 6.03 hereof provided that such amount shall only be withdrawn following the withdrawal from the Certificate Account for deposit into the Distribution Account pursuant to the following paragraph;

(viii)      to withdraw pursuant to Section 3.05 any amount deposited in the Certificate Account and not required to be deposited therein; and

(ix)        to clear and terminate the Certificate Account upon termination of this Agreement pursuant to Section 9.01 hereof.

In addition, no later than 1:00 p.m. Pacific time on the Distribution Account Deposit Date, the Master Servicer shall withdraw from the Certificate Account and remit to the Trustee the Interest Remittance Amount and the Principal Remittance Amount for each Loan Group for such Distribution Date to the extent on deposit in the Certificate Account, and the Trustee shall deposit such amount in the Distribution Account.

The Master Servicer shall keep and maintain separate accounting, on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from the Certificate Account pursuant to subclauses (i), (ii), (iv), (v) and (vi) above.  Prior to making any withdrawal from the Certificate Account pursuant to subclause (iii), the Master Servicer shall deliver to the Trustee an Officer’s Certificate of a Servicing Officer indicating the amount of any previous Advance determined by the Master Servicer to be a Nonrecoverable Advance and identifying the related Mortgage Loan(s), and their respective portions of such Nonrecoverable Advance.

 

 

(b)            The Trustee shall withdraw funds from the Distribution Account for distribution to the Certificateholders in the manner specified in this Agreement (and to withhold from the amounts so withdrawn, the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 8.11). In addition, the Trustee may from time to time make withdrawals from the Distribution Account for the following purposes:

(i)          to pay to the Master Servicer, as additional servicing compensation, earnings on or investment income with respect to funds in or credited to the Distribution Account;

(ii)         to pay the Trustee the Trustee Fee on each Distribution Date;

(iii)        to withdraw pursuant to Section 3.05 any amount deposited in the Distribution Account and not required to be deposited therein;

(iv)        to reimburse the Trustee for any unreimbursed Advances made by it pursuant to Section 4.01(b) hereof, such right of reimbursement pursuant to this subclause (iv) being limited to (x) amounts received on the related Mortgage Loan(s) in respect of which any such Advance was made and (y) amounts not otherwise reimbursed to the Trustee pursuant to Section 3.08(a)(ii) hereof;

(v)        to reimburse the Trustee for any Nonrecoverable Advance previously made by the Trustee pursuant to Section 4.01(b) hereof, such right of reimbursement pursuant to this subclause (v) being limited to amounts not otherwise reimbursed to the Trustee pursuant to Section 3.08(a)(iii) hereof; and

(vi)        to clear and terminate the Distribution Account upon termination of the Agreement pursuant to Section 9.01 hereof.

(c)            The Trustee shall withdraw funds from the Carryover Reserve Fund for distribution to the Certificateholders in the manner specified in this Agreement (and to withhold from the amounts so withdrawn, the amount of any taxes that it is authorized to retain pursuant to the last paragraph of Section 8.11).  In addition, the Trustee may from time to time make withdrawals from the Carryover Reserve Fund for the following purposes:

(i)         to withdraw pursuant to Section 3.05 any amount deposited in the Carryover Reserve Fund and not required to be deposited therein; and

(ii)         to clear and terminate the Carryover Reserve Fund upon termination of the Agreement pursuant to Section 9.01 hereof.

	
            Section 3.09
 	
            [Reserved.]
 	
             

	
            Section 3.10
 	
            Maintenance of Hazard Insurance.
 
				

The Master Servicer shall cause to be maintained, for each Mortgage Loan, hazard insurance with extended coverage in an amount that is at least equal to the lesser of (i) the maximum insurable value of the improvements securing such Mortgage Loan and (ii) the greater 

 

 

of (a) the outstanding principal balance of the Mortgage Loan and (b) an amount such that the proceeds of such policy shall be sufficient to prevent the related Mortgagor and/or mortgagee from becoming a co-insurer.  Each such policy of standard hazard insurance shall contain, or have an accompanying endorsement that contains, a standard mortgagee clause. The Master Servicer shall also cause flood insurance to be maintained on property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, to the extent described below.  Pursuant to Section 3.05 hereof, any amounts collected by the Master Servicer under any such policies (other than the amounts to be applied to the restoration or repair of the related Mortgaged Property or property thus acquired or amounts released to the Mortgagor in accordance with the Master Servicer’s normal servicing procedures) shall be deposited in the
Certificate Account.  Any cost incurred by the Master Servicer in maintaining any such insurance shall not, for the purpose of calculating monthly distributions to the Certificateholders or remittances to the Trustee for their benefit, be added to the principal balance of the Mortgage Loan, notwithstanding that the terms of the Mortgage Loan so permit.  Such costs shall be recoverable by the Master Servicer out of late payments by the related Mortgagor or out of Liquidation Proceeds to the extent permitted by Section 3.08 hereof.  It is understood and agreed that no earthquake or other additional insurance is to be required of any Mortgagor or maintained on property acquired in respect of a Mortgage 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 is located at the time of origination of the Mortgage Loan in a federally designated special flood hazard area and such
area is participating in the national flood insurance program, the Master Servicer shall cause flood insurance to be maintained with respect to such Mortgage Loan.  Such flood insurance shall be in an amount equal to the lesser of (i) the original principal balance of the related Mortgage Loan, (ii) the replacement value of the improvements that are part of such Mortgaged Property, or (iii) the maximum amount of such insurance available for the related Mortgaged Property under the Flood Disaster Protection Act of 1973, as amended.

	
            Section 3.11
 	
            Enforcement of Due-On-Sale Clauses; Assumption Agreements.
 

(a)            Except as otherwise provided in this Section 3.11(a), when any property subject to a Mortgage has been or is about to be conveyed by the Mortgagor, the Master Servicer shall to the extent that it has knowledge of such conveyance, enforce any due-on-sale clause contained in any Mortgage Note or Mortgage, to the extent permitted under applicable law and governmental regulations, but only to the extent that such enforcement will not adversely affect or jeopardize coverage under any Required Insurance Policy.  Notwithstanding the foregoing, the Master Servicer is not required to exercise such rights with respect to a Mortgage Loan if the Person to whom the related Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the terms and conditions contained in the Mortgage Note and Mortgage related
thereto and the consent of the mortgagee under such Mortgage Note or Mortgage is not otherwise so required under such Mortgage Note or Mortgage as a condition to such transfer.  In the event that the Master Servicer is prohibited by law from enforcing any such due-on-sale clause, or if coverage under any Required Insurance Policy would be adversely affected, or if nonenforcement is otherwise permitted hereunder, the Master Servicer is authorized, subject to Section 3.11(b), to take or enter into an assumption and modification agreement from or with the person to whom such property has been or is about to be conveyed, pursuant to which such person becomes liable under the Mortgage Note and, unless prohibited by applicable state law, the Mortgagor remains liable thereon, provided that the Mortgage Loan shall continue to be covered (if so covered 

 

 

before the Master Servicer enters such agreement) by the applicable Required Insurance Policies.  The Master Servicer, subject to Section 3.11(b), is also authorized with the prior approval of the insurers under any Required Insurance Policies 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 Mortgagor and becomes liable under the Mortgage Note.  Notwithstanding the foregoing, the Master Servicer shall not be deemed to be in default under this Section 3.11(a) by reason of any transfer or assumption that the Master Servicer reasonably believes it is restricted by law from preventing.

(b)            Subject to the Master Servicer’s duty to enforce any due-on-sale clause to the extent set forth in Section 3.11(a) hereof, in any case in which a Mortgaged Property has been conveyed to a Person by a Mortgagor, and such Person is to enter into an assumption agreement or modification agreement or supplement to the Mortgage Note or Mortgage that requires the signature of the Trustee, or if an instrument of release signed by the Trustee is required releasing the Mortgagor from liability on the Mortgage Loan, the Master Servicer shall prepare and deliver or cause to be prepared and delivered to the Trustee for signature and shall direct, in writing, the Trustee to execute the assumption agreement with the Person to whom the Mortgaged Property is to be conveyed and such modification agreement or supplement to the
Mortgage Note or Mortgage or other instruments as are reasonable or necessary to carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with any applicable laws regarding assumptions or the transfer of the Mortgaged Property to such Person.  In connection with any such assumption, no material term of the Mortgage Note (including, but not limited to, the Mortgage Rate, the amount of the Scheduled Payment, the Maximum Mortgage Rate, the Minimum Mortgage Rate, the Gross Margin, the Periodic Rate Cap, the Adjustment Date and any other term affecting the amount or timing of payment on the Mortgage Loan) may be changed.  In addition, the substitute Mortgagor and the Mortgaged Property must be acceptable to the Master Servicer in accordance with its underwriting standards as then in effect.  The Master Servicer shall notify the Trustee that any such substitution or assumption agreement has been completed by forwarding to the Trustee the original of such substitution or
assumption agreement, which in the case of the original 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.  Any fee collected by the Master Servicer for entering into an assumption or substitution of liability agreement will be retained by the Master Servicer as additional servicing compensation.

	
            Section 3.12
 	
            Realization Upon Defaulted Mortgage Loans; Determination of Excess Proceeds and Realized Losses; Repurchase of Certain Mortgage Loans.
 

(a)            The Master Servicer shall use reasonable efforts 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.  In connection with such foreclosure or other conversion, the Master Servicer shall follow such practices and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities and the requirements of the insurer under any Required Insurance Policy; provided that the Master Servicer shall not be required to expend its own funds in connection with any foreclosure or towards the restoration of any property unless it shall determine (i) that such restoration and/or 

 

 

foreclosure will increase the proceeds of liquidation of the Mortgage Loan after reimbursement to itself of such expenses and (ii) that such expenses will be recoverable to it through Liquidation Proceeds (respecting which it shall have priority for purposes of withdrawals from the Certificate Account pursuant to Section 3.08 hereof).  The Master Servicer shall be responsible for all other costs and expenses incurred by it in any such proceedings; provided that it shall be entitled to reimbursement thereof from the proceeds of liquidation of the related Mortgaged Property, as contemplated in Section 3.08 hereof.  If the Master Servicer has knowledge that a Mortgaged Property that the Master Servicer is contemplating acquiring in foreclosure or by deed-in-lieu of foreclosure is located within a one-mile radius of any site with environmental or hazardous waste risks known to the Master Servicer, the Master
Servicer will, prior to acquiring the Mortgaged Property, consider such risks and only take action in accordance with its established environmental review procedures.

With respect to any REO Property, the deed or certificate of sale shall be taken in the name of the Trustee for the benefit of the Certificateholders (or the Trustee’s nominee on behalf of the Certificateholders).  The Trustee’s name shall be placed on the title to such REO Property solely as the Trustee hereunder and not in its individual capacity.  The Master Servicer shall ensure that the title to such REO Property references this Agreement and the Trustee’s capacity thereunder.  Pursuant to its efforts to sell such REO Property, the Master Servicer shall either itself or through an agent selected by the Master Servicer protect and conserve such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to its conservation and protection of the interests of the Certificateholders, rent the
same, or any part thereof, as the Master Servicer deems to be in the best interest of the Master Servicer and the Certificateholders for the period prior to the sale of such REO Property.  The Master Servicer shall prepare for and deliver to the Trustee a statement with respect to each REO Property that has been rented showing the aggregate rental income received and all expenses incurred in connection with the management and maintenance of such REO Property at such times as is necessary to enable the Trustee to comply with the reporting requirements of the REMIC Provisions.  The net monthly rental income, if any, from such REO Property shall be deposited in the Certificate Account no later than the close of business on each Determination Date.  The Master Servicer shall perform the tax reporting and withholding related to foreclosures, abandonments and cancellation of indebtedness income as specified by Sections 1445, 6050J and 6050P of the Code by preparing and filing such tax and
information returns, as may be required.

In the event that the Trust Fund acquires any Mortgaged Property as aforesaid or otherwise in connection with a default or imminent default on a Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as soon as practicable in a manner that maximizes the Liquidation Proceeds, but in no event later than three years after its acquisition by the Trust Fund or, at the expense of the Trust Fund, the Master Servicer shall request, more than 60 days prior to the day on which such three-year period would otherwise expire, an extension of the three-year grace period.  In the event the Trustee shall have been supplied with an Opinion of Counsel (such opinion not to be an expense of the Trustee) to the effect that the holding by the Trust Fund of such Mortgaged Property subsequent to such three-year period will not result in the imposition of taxes on “prohibited
transactions” of the Trust Fund as defined in section 860F of the Code or cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are outstanding, the Trust Fund may continue to hold such Mortgaged Property 

 

 

(subject to any conditions contained in such Opinion of Counsel) after the expiration of such three-year period. Notwithstanding any other provision of this Agreement, no Mortgaged Property acquired by the Trust Fund shall be rented (or allowed to continue to be rented) or otherwise used for the production of income by or on behalf of the Trust Fund in such a manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify as “foreclosure property” within the meaning of section 860G(a)(8) of the Code or (ii) subject the Trust Fund to the imposition of any federal, state or local income taxes on the income earned from such Mortgaged Property under section 860G(c) of the Code or otherwise, unless the Master Servicer has agreed to indemnify and hold harmless the Trust Fund with respect to the imposition of any such taxes.

The decision of the Master Servicer to foreclose on a defaulted Mortgage Loan shall be subject to a determination by the Master Servicer that the proceeds of such foreclosure would exceed the costs and expenses of bringing such a proceeding.  The income earned from the management of any Mortgaged Properties acquired through foreclosure or other judicial proceeding, net of reimbursement to the Master Servicer for expenses incurred (including any property or other taxes) in connection with such management and net of unreimbursed Servicing Fees, Advances, Servicing Advances and any management fee paid or to be paid with respect to the management of such Mortgaged Property, shall be applied to the payment of principal of, and interest on, the related defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans were still current) and all such income shall be deemed, for all
purposes in this Agreement, to be payments on account of principal and interest on the related Mortgage Notes and shall be deposited into the Certificate Account.  To the extent the income received during a Prepayment Period is in excess of the amount attributable to amortizing principal and accrued interest at the related Mortgage Rate on the related Mortgage Loan, such excess shall be considered to be a partial Principal Prepayment for all purposes hereof.

The Liquidation Proceeds from any liquidation of a Mortgage Loan, net of any payment to the Master Servicer as provided above, shall be deposited in the Certificate Account on the next succeeding Determination Date following receipt thereof for distribution on the related Distribution Date, except that any Excess Proceeds shall be retained by the Master Servicer as additional servicing compensation.

The proceeds of any Liquidated Loan, as well as any recovery resulting from a partial collection of liquidation proceeds or any income from an REO Property, will be applied in the following order of priority:  first, to reimburse the Master Servicer for any related unreimbursed Servicing Advances and Servicing Fees, pursuant to Section 3.08(a)(v) or this Section 3.12; second, to reimburse the Master Servicer for any unreimbursed Advances, pursuant to Section 3.08(a)(ii) or this Section 3.12; third, to accrued and unpaid interest (to the extent no Advance has been made for such amount) on the Mortgage Loan or related REO Property, at the Net Mortgage Rate to the Due Date occurring in the month in which such amounts are required to be distributed; and fourth, as a recovery of principal of the Mortgage Loan.

(b)            On each Determination Date, the Master Servicer shall determine the respective aggregate amounts of Excess Proceeds and Realized Losses, if any, for the related Prepayment Period.

 

 

(c)            The Master Servicer, in its sole discretion, shall have the right to elect (by written notice sent to the Trustee) to purchase for its own account from the Trust Fund any Mortgage Loan that is 150 days or more delinquent during any Calendar Quarter at a price equal to the Purchase Price; provided, however, that the Master Servicer may only exercise this right during the period beginning on the first Business Day of the following Calendar Quarter, and ending at the close of business on the second-to-last Business Day of such following Calendar Quarter in which such Mortgage Loan became 150 days delinquent (such month, the “Eligible Repurchase Month”); provided further, that any such Mortgage Loan which becomes current but thereafter becomes delinquent may be purchased by the Master Servicer pursuant to
this Section in any ensuing Eligible Repurchase Month.  The Purchase Price for any Mortgage Loan purchased hereunder shall be delivered to the Trustee for deposit in the Certificate Account and the Trustee, upon receipt of such deposit and a Request for Release from the Master Servicer in the form of Exhibit N hereto, shall release or cause to be released to the purchaser of such Mortgage Loan the related Mortgage File and shall execute and deliver such instruments of transfer or assignment prepared by the purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the Trustee’s right, title and interest in and to such Mortgage Loan and all security and documents related thereto.  Such assignment shall be an assignment outright and not for security. The purchaser of such Mortgage Loan shall thereupon own
such Mortgage Loan, and all security and documents, free of any further obligation to the Trustee or the Certificateholders with respect thereto.

	
            Section 3.13
 	
            Trustee to Cooperate; Release of Mortgage Files.
 

Upon the payment in full of any Mortgage Loan, or the receipt by the Master Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Master Servicer will promptly notify the Trustee by delivering a Request for Release substantially in the form of Exhibit N.  Upon receipt of such request, the Trustee shall promptly release the related Mortgage File to the Master Servicer, and the Trustee shall at the Master Servicer’s direction execute and deliver to the Master Servicer the request for reconveyance, deed of reconveyance or release or satisfaction of mortgage or such instrument releasing the lien of the Mortgage in each case provided by the Master Servicer, together with the Mortgage Note with written evidence of cancellation thereon.  The Master Servicer is authorized to cause the removal from the registration on the MERS®
System of such Mortgage and to execute and deliver, on behalf of the Trust Fund and the Certificateholders or any of them, any and all instruments of satisfaction or cancellation or of partial or full release.  No expenses incurred in connection with any instrument of satisfaction or deed of reconveyance shall be chargeable to the Certificate Account, the Distribution Account, the Carryover Reserve Fund or the related subservicing account.  From time to time and as shall be appropriate for the servicing or foreclosure of any Mortgage Loan, including for such purpose, collection under any policy of flood insurance any fidelity bond or errors or omissions policy, or for the purposes of effecting a partial release of any Mortgaged Property from the lien of the Mortgage or the making of any corrections to the Mortgage Note or the Mortgage or any of the other documents included in the Mortgage File, the Trustee shall, upon delivery to the Trustee of a Request for Release in the form of
Exhibit M signed by a Servicing Officer, release the Mortgage File to the Master Servicer. Subject to the further limitations set forth below, the Master Servicer shall cause the 

 

 

Mortgage File or documents so released to be returned to the Trustee when the need therefor by the Master Servicer no longer exists, unless the Mortgage Loan is liquidated and the proceeds thereof are deposited in the Certificate Account, in which case the Trustee shall deliver the Request for Release to the Master Servicer.

If the Master Servicer at any time seeks to initiate a foreclosure proceeding in respect of any Mortgaged Property as authorized by this Agreement, the Master Servicer shall deliver or cause to be delivered to the Trustee, for signature, as appropriate, any court pleadings, requests for trustee’s sale or other documents necessary to effectuate such foreclosure or any legal action brought to obtain judgment against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce any other remedies or rights provided by the Mortgage Note or the Mortgage or otherwise available at law or in equity.  Notwithstanding the foregoing, the Master Servicer shall cause possession of any Mortgage File or of the documents therein that shall have been released by the Trustee to be returned to the Trustee within 21 calendar days after possession thereof shall have
been released by the Trustee unless (i) the Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the Mortgage Loan have been deposited in the Certificate Account, and the Master Servicer shall have delivered to the Trustee a Request for Release in the form of Exhibit N or (ii) the Mortgage File or document shall have been delivered to an attorney or to a public trustee or other public official as required by law for purposes of initiating or pursuing legal action or other proceedings for the foreclosure of the Mortgaged Property and the Master Servicer shall have delivered to the Trustee an Officer’s Certificate of a Servicing Officer certifying as to the name and address of the Person to which the Mortgage File or the documents therein were delivered and the purpose or purposes of such delivery.

	
            Section 3.14
 	
            Documents, Records and Funds in Possession of Master Servicer to be Held for the Trustee.
 

Notwithstanding any other provisions of this Agreement, the Master Servicer shall transmit to the Trustee as required by this Agreement all documents and instruments in respect of a Mortgage Loan coming into the possession of the Master Servicer from time to time and shall account fully to the Trustee for any funds received by the Master Servicer or that otherwise are collected by the Master Servicer as Liquidation Proceeds, Subsequent Recoveries or Insurance Proceeds in respect of any Mortgage Loan. 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, including but not limited to, any funds on deposit in the Certificate Account, shall be held by the Master Servicer for and on behalf of the Trust Fund and shall be and
remain the sole and exclusive property of the Trust Fund, subject to the applicable provisions of this Agreement.  The Master Servicer also agrees that it shall not create, incur or subject any Mortgage File or any funds that are deposited in the Certificate Account, Distribution Account or Carryover Reserve Fund or in any Escrow Account (as defined in Section 3.06), or any funds that otherwise are or may become due or payable to the Trustee for the benefit of the Certificateholders, to any claim, lien, security interest, judgment, levy, writ of attachment or other encumbrance, or assert by legal action or otherwise any claim or right of set off against any Mortgage File or any funds collected on, or in connection with, a Mortgage Loan, except, however, that the Master Servicer shall be entitled to 

 

 

set off against and deduct from any such funds any amounts that are properly due and payable to the Master Servicer under this Agreement.

	
            Section 3.15
 	
            Servicing Compensation.
 

As compensation for its activities hereunder, the Master Servicer shall be entitled to retain or withdraw from the Certificate Account out of each payment of interest on a Mortgage Loan included in the Trust Fund an amount equal to interest at the applicable Servicing Fee Rate on the Stated Principal Balance of the related Mortgage Loan for the period covered by such interest payment.

Additional servicing compensation in the form of Excess Proceeds, assumption fees, late payment charges, Prepayment Interest Excess, and all income and gain net of any losses realized from Permitted Investments shall be retained by the Master Servicer to the extent not required to be deposited in the Certificate Account pursuant to Section 3.05 or 3.12(a) hereof.  The Master Servicer shall be required to pay all expenses incurred by it in connection with its servicing activities hereunder (including payment of any premiums for hazard insurance, as required by Section 3.10 hereof and maintenance of the other forms of insurance coverage required by Section 3.10 hereof) and shall not be entitled to reimbursement therefor except as specifically provided in Sections 3.08 and 3.12 hereof.

	
            Section 3.16
 	
            Access to Certain Documentation.
 

The Master Servicer shall provide to the OTS and the FDIC and to comparable regulatory authorities supervising Holders of the Certificates or Certificate Owners and the examiners and supervisory agents of the OTS, the FDIC and such other authorities, access to the documentation regarding the Mortgage Loans required by applicable regulations of the OTS and the FDIC.  Such access shall be afforded without charge, but only upon reasonable and prior written request and during normal business hours at the offices of the Master Servicer designated by it.  Nothing in this Section shall limit the obligation of the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of the Master Servicer to provide access as provided in this Section as a result of such obligation shall not constitute a breach of this Section.

	
            Section 3.17
 	
            Annual Statement as to Compliance.
 

The Master Servicer shall deliver to the Depositor and the Trustee on or before the 80th day after the end of the Master Servicer’s fiscal year, commencing with its 2005 fiscal year, an Officer’s Certificate stating, as to the signer thereof, that (i) a review of the activities of the Master Servicer during the preceding calendar year and of the performance of the Master Servicer under this Agreement has been made under such officer’s supervision and (ii) to the best of such officer’s knowledge, based on such review, the Master Servicer has fulfilled all its obligations under this Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof and (iii) to the best of such officer’s knowledge, each Subservicer has fulfilled all its
obligations under its Subservicing Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation specifying each such default known to 

 

 

such officer and the nature and status thereof.  The Trustee shall forward a copy of each such statement to each Rating Agency.  Copies of such statement shall be provided by the Trustee to any Certificateholder upon request at the Master Servicer’s expense, provided such statement is delivered by the Master Servicer to the Trustee.

	
            Section 3.18
 	
            Annual Independent Public Accountants’ Servicing Statement; Financial Statements.
 

On or before the later of (i) the 80th day after the end of the Master Servicer’s fiscal year, commencing with its 2005 fiscal year or (ii) within 30 days of the issuance of the annual audited financial statements beginning with the audit for the period ending in 2005, the Master Servicer at its expense shall cause a nationally recognized firm of independent public accountants (who may also render other services to the Master Servicer, the Sellers or any affiliate thereof) that is a member of the American Institute of Certified Public Accountants to furnish a report to the Trustee, Depositor and Countrywide in compliance with the Uniform Single Attestation Program for Mortgage Bankers.  Copies of such report shall be provided by the Trustee to any Certificateholder upon request at the Master Servicer’s expense, provided such report is delivered by the Master Servicer to the
Trustee.  Upon written request, the Master Servicer shall provide to the Certificateholders its publicly available annual financial statements (or, for so long as Countrywide Home Loans Servicing LP is the Master Servicer hereunder, the Master Servicer’s parent company’s publicly available annual financial statements), if any, promptly after they become available.

	
            Section 3.19
 	
            The Corridor Contracts.
 

Countrywide shall assign all of its right, title and interest in and to the interest rate cap transactions evidenced by the Corridor Contracts to, and shall cause all of its obligations in respect of such transaction to be assumed by the Corridor Contract Administrator, on the terms and conditions set forth in the Corridor Contract Novation Agreement.  Countrywide, the Corridor Contract Administrator and the Trustee will enter into the Corridor Contract Administration Agreement pursuant to which the Corridor Contract Administrator will allocate any payments received under each Corridor Contract between the Corridor Contract Counterparty and Countrywide.  The Master Servicer, on behalf of the Trustee, shall deposit any amounts allocated from time to time to the Trustee with respect to the Corridor Contracts into the Carryover Reserve Fund.  The parties hereto acknowledge and agree that
the Corridor Contract Administrator is directed and authorized to sign the Corridor Contract Novation Agreement and the Corridor Contract Administration Agreement and shall be fully protected in relying thereon.  

The Master Servicer, on behalf of the Trustee, shall prepare and deliver any notices required to be delivered under the Corridor Contracts.

The Master Servicer, on behalf of the Corridor Contract Administrator, shall act as calculation agent and/or shall terminate the Corridor Contracts, in each case upon the occurrence of certain events of default or termination events to the extent specified thereunder.  Upon any such termination, the Corridor Contract Counterparty will be obligated to pay the Corridor Contract Administrator an amount in respect of such termination.  Any amounts allocated to the Trustee by the Corridor Contract Administrator in respect of such termination shall be deposited 

 

 

and held in the Carryover Reserve Fund to pay Net Rate Carryover for the applicable Certificates (by deposit of the amount of any such Net Rate Carryover in the Carryover Reserve Fund for payment to the related Certificateholders) as provided in Section 4.04(a) on Distribution Dates following such termination to and including the Cap Contract Termination Date.  On the related Corridor Contract Termination Date, after all other distributions on such date, if any such amounts in respect of early termination remain in the Carryover Reserve Fund, such amounts shall be distributed by the Trustee to the Class C Certificateholder.

	
            Section 3.20
 	
            Prepayment Charges.
 

(a)            Notwithstanding anything in this Agreement to the contrary, in the event of a Principal Prepayment in full or in part of a Mortgage Loan, the Master Servicer may not waive any Prepayment Charge or portion thereof required by the terms of the related Mortgage Note unless (i) the Master Servicer determines that such waiver would maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking into account the value of such Prepayment Charge, or (ii) (A) the enforceability thereof is limited (1) by bankruptcy, insolvency, moratorium, receivership, or other similar law relating to creditors’ rights generally or (2) due to acceleration in connection with a foreclosure or other involuntary payment, or (B) the enforceability is otherwise limited or prohibited by applicable law.  In the event of a Principal
Prepayment in full or in part with respect to any Mortgage Loan, the Master Servicer shall deliver to the Trustee an Officer’s Certificate substantially in the form of Exhibit U no later than the third Business Day following the immediately succeeding Determination Date with a copy to the Class P Certificateholders.  If the Master Servicer has waived or does not collect all or a portion of a Prepayment Charge relating to a Principal Prepayment in full or in part due to any action or omission of the Master Servicer, other than as provided above, the Master Servicer shall deliver to the Trustee, together with the Principal Prepayment in full or in part, the amount of such Prepayment Charge (or such portion thereof as had been waived) for deposit into the Certificate Account (not later than the immediately succeeding Master Servicer Advance Date, in the case of such Prepayment Charge) for distribution in accordance with the terms of this Agreement.

(b)            Upon discovery by the Master Servicer or a Responsible Officer of the Trustee of a breach of the foregoing subsection (a), the party discovering the breach shall give prompt written notice to the other parties.

(c)            Countrywide represents and warrants to the Depositor and the Trustee, as of the Closing Date, that the information in the Prepayment Charge Schedule (including the attached prepayment charge summary) is complete and accurate in all material respects at the dates as of which the information is furnished and each Prepayment Charge is permissible and enforceable in accordance with its terms under applicable state law, except as the enforceability thereof is limited due to acceleration in connection with a foreclosure or other involuntary payment.

(d)            Upon discovery by the Master Servicer or a Responsible Officer of the Trustee of a breach of the foregoing clause (c) that materially and adversely affects right of the Holders of the Class P Certificates to any Prepayment Charge, the party discovering the breach shall give prompt written notice to the other parties. Within 60 days of the earlier of discovery by the Master Servicer or receipt of notice by the Master Servicer of breach, the Master Servicer shall 

 

 

cure the breach in all material respects or shall pay into the Certificate Account the amount of the Prepayment Charge that would otherwise be due from the Mortgagor, less any amount representing such Prepayment Charge previously collected and paid by the Master Servicer into the Certificate Account.

	
            Section 3.21
 	
            Credit Reporting.
 

The Master Servicer acknowledges that, as part of its servicing activities, it shall fully furnish, in accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files related to the Mortgage Loans to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis.

 

 

 

ARTICLE IV

 

DISTRIBUTIONS AND

ADVANCES BY THE MASTER SERVICER

	
            Section 4.01
 	
            Advances.
 

(a)            The Master Servicer shall determine on or before each Master Servicer Advance Date whether it is required to make an Advance pursuant to the definition thereof.  If the Master Servicer determines it is required to make an Advance, it shall, on or before the Master Servicer Advance Date, either (i) deposit into the Certificate Account an amount equal to the Advance or (ii) make an appropriate entry in its records relating to the Certificate Account that any Amount Held for Future Distribution has been used by the Master Servicer in discharge of its obligation to make any such Advance.  Any funds so applied shall be replaced by the Master Servicer by deposit in the Certificate Account no later than the close of business on the next Master Servicer Advance Date.  The Master Servicer shall be entitled to be reimbursed
from the Certificate Account for all Advances of its own funds made pursuant to this Section as provided in Section 3.08.  The obligation to make Advances with respect to any Mortgage Loan shall continue if such Mortgage Loan has been foreclosed or otherwise terminated and the related Mortgaged Property has not been liquidated.

(b)            If the Master Servicer determines that it will be unable to comply with its obligation to make the Advances as and when described in the second sentence of Section 4.01(a), it shall use its best efforts to give written notice thereof to the Trustee (each such notice a “Trustee Advance Notice” and such notice may be given by telecopy), not later than 3:00 P.M., New York time, on the Business Day immediately preceding the related Master Servicer Advance Date, specifying the amount that it will be unable to deposit (each such amount an “Advance Deficiency”) and certifying that such Advance Deficiency constitutes an Advance hereunder and is not a Nonrecoverable Advance.  If the Trustee receives a Trustee Advance Notice on or before 3:30 P.M., New York time on a Master Servicer Advance Date, the
Trustee shall, not later than 3:00 P.M., New York time, on the related Distribution Date, deposit in the Distribution Account an amount equal to the Advance Deficiency identified in such Trustee Advance Notice unless it is prohibited from so doing by applicable law.  Notwithstanding the foregoing, the Trustee shall not be required to make such deposit if the Trustee shall have received written notification from the Master Servicer that the Master Servicer has deposited or caused to be deposited in the Certificate Account an amount equal to such Advance Deficiency.  All Advances made by the Trustee pursuant to this Section 4.01(b) shall accrue interest on behalf of the Trustee at the Trustee Advance Rate from and including the date such Advances are made to but excluding the date of repayment, with such interest being an obligation of the Master Servicer and not the Trust Fund.  The Master Servicer shall reimburse the Trustee for the amount of any Advance made by the Trustee pursuant
to this Section 4.01(b) together with accrued interest, not later than 6:00 P.M., New York time on the Business Day following the related Distribution Date.  In the event that the Master Servicer does not reimburse the Trustee in accordance with the requirements of the preceding sentence, the Trustee shall immediately (a) terminate all of the rights and obligations of the Master Servicer under this Agreement in 

 

 

accordance with Section 7.01 and (b) subject to the limitations set forth in Section 3.04, assume all of the rights and obligations of the Master Servicer hereunder.

(c)            The Master Servicer, not later than the close of business on the second Business Day immediately preceding each Distribution Date, shall deliver to the Trustee a report (in the form and substance reasonably satisfactory to the Trustee) that indicates (i) the Mortgage Loans with respect to which the Master Servicer has determined that the related Scheduled Payments should be advanced and (ii) the amount of the related Scheduled Payments.  The Master Servicer shall deliver to the Trustee on the related Master Servicer Advance Date an Officer’s Certificate of a Servicing Officer indicating the amount of any proposed Advance determined by the Master Servicer to be a Nonrecoverable Advance.

	
            Section 4.02
 	
            Reduction of Servicing Compensation in Connection with Prepayment Interest Shortfalls.
 

In the event that any Mortgage Loan is the subject of a Prepayment Interest Shortfall, the Master Servicer shall, to the extent of one-half of the Servicing Fee for such Distribution Date, deposit into the Certificate Account, as a reduction of the Servicing Fee (but not in excess of one-half thereof) for such Distribution Date, no later than the close of business on the Business Day immediately preceding such Distribution Date, an amount equal to the Prepayment Interest Shortfall; and in case of such deposit, the Master Servicer shall not be entitled to any recovery or reimbursement from the Depositor, the Trustee, the Trust Fund or the Certificateholders.

	
            Section 4.03
 	
            [Reserved].
 	
             

	
            Section 4.04
 	
            Distributions.
 

(a)            On each Distribution Date, the Interest Funds for such Distribution Date shall be allocated by the Trustee from the Distribution Account in the following order of priority, until such Interest Funds have been fully disbursed:

	
            (i)
 	
            concurrently
 

(A)       from the Interest Funds for Loan Group 1 (and after the distribution of Interest Funds from Loan Group 2 as provided in clause (B) below, from Interest Funds for Loan Group 2), to each Class of the Class 1-A Certificates, pro rata, based on their respective entitlements, the Current Interest and any Interest Carry Forward Amount for such Class, and

(B)        from the Interest Funds for Loan Group 2 (and after the distribution of Interest Funds from Loan Group 1 as provided in clause (A) above, from Interest Funds for Loan Group 1), to each Class of the Class 2-A Certificates, pro rata, based on their respective entitlements, the Current Interest and any Interest Carry Forward Amount for such Class;

(ii)         from the Interest Funds for both Loan Groups to the Class M-1 Certificates, the Class M-1 Current Interest;

 

 

(iii)        from the Interest Funds for both Loan Groups to the Class M-2 Certificates, the Class M-2 Current Interest;

(iv)        from the Interest Funds for both Loan Groups to the Class M-3 Certificates, the Class M-3 Current Interest;

(v)        from the Interest Funds for both Loan Groups to the Class M-4 Certificates, the Class M-4 Current Interest;

(vi)        from the Interest Funds for both Loan Groups to the Class M-5 Certificates, the Class M-5 Current Interest;

(vii)       from the Interest Funds for both Loan Groups to the Class M-6 Certificates, the Class M-6 Current Interest;

(viii)      from the Interest Funds for both Loan Groups to the Class M-7 Certificates, the Class M-7 Current Interest;

(ix)        from the Interest Funds for both Loan Groups to the Class M-8 Certificates, the Class M-8 Current Interest;

(x)        from the Interest Funds for both Loan Groups to the Class B Certificates, the Class B Current Interest; and

(xi)       any remainder, as part of the Excess Cashflow.

(b)            On each Distribution Date on or prior to the related Corridor Contract Termination Date, amounts allocated to the Trustee by the Corridor Contract Administrator in respect of the Corridor Contracts for such Distribution Date will be deposited in the Carryover Reserve Fund to be distributed to each applicable Class of Certificates (other than the Class A-R Certificates and Class P Certificates) pursuant to Section 4.04(e)(iv); provided, however, that if the Corridor Contracts are subject to early termination, early termination payments allocated to the Trustee by the Corridor Contract Administrator shall be held by the Trustee until the related Corridor Contract Termination Date and deposited in the Carryover Reserve Fund, as necessary, to pay any Net Rate Carryover as provided in Section 3.19.

(c)            Upon the earlier of (a) the exercise of the Optional Termination by the Master Servicer pursuant to Section 9.01 and (b) the Class P Principal Distribution Date, all funds on deposit in the Class P Distribution Account shall be distributed to the Class P Certificates.

(d)            On each Distribution Date, the Principal Distribution Amount for such Distribution Date with respect to each Loan Group shall be allocated by the Trustee from the Distribution Account in the following order of priority until such Principal Distribution Amount has been fully distributed:

(i)         with respect to any Distribution Date prior to the Stepdown Date or as to which a Trigger Event is in effect:

 

 

(A)       concurrently, (i) from the Principal Distribution Amount for Loan Group 1, sequentially (a) to the Class A-R Certificates until the Certificate Principal Balance thereof is reduced to zero and (b) concurrently, to the Class 1-A-1 Certificates and Class 1-A-2 Certificates, pro rata, based on their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero; provided, however, that if a Group 1 Sequential Trigger Event is in effect, sequentially to the Class 1-A-1 Certificates and Class 1-A-2 Certificates, in that order, in each case until the Certificate Principal Balance thereof has been reduced to zero and (ii) from the Principal Distribution Amount for Loan Group 2, sequentially, to the Class 2-A-1, Class 2-A-2 and Class 2-A-3, Certificates, in that order, until
the Certificate Principal Balance of each such Class is reduced to zero; provided, however, that (x) after the Certificate Principal Balances of the Class 1-A Certificates have been reduced to zero, the Principal Distribution Amount remaining from both Loan Groups will be applied sequentially to the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates, in that order, until the Certificate Principal Balance of each such Class is reduced to zero and (y) after the Certificate Principal Balances of the Class 2-A Certificates have been reduced to zero, the Principal Distribution Amount remaining from both Loan Groups will be applied to the Class 1-A-1 Certificates and Class 1-A-2 Certificates concurrently, pro rata, based on their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero; provided, however, that if a Group 1 Sequential Trigger Event is in effect, sequentially to the Class 1-A-1 Certificates and Class 1-A-2
Certificates, in that order, in each case until the Certificate Principal Balance thereof has been reduced to zero; 

(B)        the remaining Principal Distribution Amount for both Loan Groups, to the Class M-1 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(C)       the remaining Principal Distribution Amount for both Loan Groups, to the Class M-2 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(D)       the remaining Principal Distribution Amount for both Loan Groups, to the Class M-3 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(E)        the remaining Principal Distribution Amount for both Loan Groups, to the Class M-4 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(F)        the remaining Principal Distribution Amount for both Loan Groups, to the Class M-5 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

 

 

(G)       the remaining Principal Distribution Amount for both Loan Groups, to the Class M-6 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(H)       the remaining Principal Distribution Amount for both Loan Groups, to the Class M-7 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(I)         the remaining Principal Distribution Amount for both Loan Groups, to the Class M-8 Certificates, until the Certificate Principal Balance thereof is reduced to zero;

(J)         the remaining Principal Distribution Amount for both Loan Groups, to the Class B Certificates, until the Certificate Principal Balance thereof is reduced to zero; and

(K)        any remainder, as part of the Excess Cashflow.

(ii)         with respect to each Distribution Date on and after the Stepdown Date and as to which a Trigger Event is not in effect:

(A)       concurrently, (i) the Class 1-A Principal Distribution Amount will be distributed concurrently to the Class 1-A-1 Certificates and Class 1-A-2 Certificates, pro rata based on their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero and (ii) the Class 2-A Principal Distribution Amount will be distributed sequentially, to the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates, in that order, until the Certificate Principal Balance of each such Class is reduced to zero; provided, however, that (x) after the aggregate Certificate Principal Balance of the Class 1-A Certificates has been reduced to zero, the remaining Class 1-A Principal Distribution Amount will be applied sequentially to the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates, in that order,
until the Certificate Principal Balance of each such Class is reduced to zero and (y) after the aggregate Certificate Principal Balance of the Class 2-A Certificates have been reduced to zero, the remaining Class 2-A Principal Distribution Amount will be applied to the Class 1-A-1 Certificates and Class 1-A-2 Certificates concurrently, pro rata, based on their respective Certificate Principal Balances, until the Certificate Principal Balance of each such Class is reduced to zero;

(B)        to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(C)       to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(D)       to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

 

 

(E)        to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(F)        to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(G)       to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(H)       to the Class M-7 Certificates, the Class M-7 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(I)         to the Class M-8 Certificates, the Class M-8 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero;

(G)       to the Class B Certificates, the Class B Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and

(H)       any remainder, as part of the Excess Cashflow.

(e)            With respect to any Distribution Date, any Excess Cashflow and each Corridor Contract Payment Amount will be paid to the Classes of Certificates, after payment of the Seller Shortfall Interest Requirement, if any, as follows:

(i)         from Excess Cashflow from both Loan Groups, to the holders of the Class or Classes of Senior Certificates and Subordinate Certificates (other than the Class A-R Certificates) then entitled to receive distributions in respect of principal, in an amount equal to the Extra Principal Distribution Amount, payable to such holders as part of the Principal Distribution Amount pursuant to Section 4.04(d) above;

(ii)         from any remaining Excess Cashflow from both Loan Groups, to the holders of the Class 1-A-2 Certificates in an amount equal to the Unpaid Realized Loss Amount for such Class;

(iii)        from any remaining Excess Cashflow from both Loan Groups, 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 M-7, Class M-8 and Class B Certificates, in that order, in an amount equal to any Interest Carry Forward Amount for each such Class;

(iv)        from any remaining Excess Cashflow from both Loan Groups, sequentially to the holders of the Class 1-A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates, in that order, in an amount equal to the Unpaid Realized Loss Amounts  for each such Class;

(v)        (a) from the Class 1-A Corridor Contract Payment Amount, concurrently, to the Class 1-A-1 Certificates and Class 1-A-2 Certificates, on a pro rata basis, based on the Certificate Principal Balances thereof, to the extent needed to pay any related Net Rate Carryover for each such Class; provided that any Class 1-A Corridor Contract 

 

 

Payment Amount remaining after such allocation to pay Net Rate Carryover based on the Certificate Principal Balances of these Certificates will be distributed to each such Class of Certificates with respect to which there remains any unpaid Net Rate Carryover (after the distribution based on Certificate Principal Balances), pro rata, based on the amount of such unpaid Net Rate Carryover, until reduced to zero, (b) from the Class 2-A Corridor Contract Payment Amount, concurrently, to the Class 2-A-1, Class 2-A-2 and Class 2-A-3 Certificates, on a pro rata basis, based on the Certificate Principal Balances thereof, to the extent needed to pay any related Net Rate Carryover for each such Class; provided that any Class 2-A Corridor Contract Payment Amount remaining after such allocation to pay Net Rate Carryover based on the Certificate Principal Balances of these Certificates will be
distributed to each such Class of Certificates with respect to which there remains any unpaid Net Rate Carryover (after the distribution based on Certificate Principal Balances), pro rata, based on the amount of such unpaid Net Rate Carryover, until reduced to zero, and (c) from the Subordinated Corridor Contract Payment Amount, concurrently, to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates, on a pro rata basis, based on the Certificate Principal Balances thereof, to the extent needed to pay any related Net Rate Carryover for each such Class; provided that any Subordinated Corridor Contract Payment Amount remaining after such allocation to pay Net Rate Carryover based on the Certificate Principal Balances of these Certificates will be distributed to each such Class of Certificates with respect to which there remains any unpaid Net Rate Carryover (after the distribution based on Certificate Principal Balances), pro
rata, based on the amount of such unpaid Net Rate Carryover, until reduced to zero;

(vi)        from any remaining Excess Cashflow from both Loan Groups and any remaining Corridor Contract Payment Amounts as provided in clause (v) above, concurrently, to the Class 1-A-1, Class 1-A-2, Class 2-A-1, Class 2-A-2, Class 2-A-3, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificates, on a pro rata basis, based on the Certificate Principal Balances thereof, to the extent needed to pay any remaining Net Rate Carryover for each such Class; provided that any amounts remaining after such allocation to pay Net Rate Carryover based on the Certificate Principal Balances of these Certificates will be distributed to each such Class of Certificates with respect to which there remains any unpaid Net Rate Carryover (after the distribution based on Certificate Principal
Balances), pro rata, based on the amount of such unpaid Net Rate Carryover, until reduced to zero;

(vii)       from any remaining Excess Cashflow from both Loan Groups, to the Class C Certificates, (x) the Current Interest for such Class and (y) any remaining Excess Cashflow shall be paid to the Class C Certificates;

(viii)      from any remaining Excess Cashflow from both Loan Groups and any remaining Corridor Contract Payment Amount, if (x) the related Corridor Contract has not been terminated or (y) on any Distribution Date on or after the related Corridor Contract Termination Date, to the Class C Certificates; and

 

 

(ix)        any remaining Excess Cashflow from both Loan Groups, to the Class A-R Certificates.

(f)             On each Distribution Date, all Prepayment Charges (including amounts deposited in connection with the full or partial waiver of such Prepayment Charges pursuant to Section 3.20) shall be distributed to the Class P Certificates.

(g)            To the extent that a Class of Certificates (other than the Class A-R, Class C and Class P Certificates) receives interest in excess of the Net Rate Cap, such interest shall be treated as having been paid to the Carryover Reserve Fund and then paid by the Carryover Reserve Fund to such Certificateholders.

(i)             [reserved]

(i)             On each Distribution Date, the Trustee shall allocate the Applied Realized Loss Amount to reduce the Certificate Principal Balances of the Subordinate Certificates and Class 1-A-2 Certificates  in the following order of priority:

(i)         to the Class B Certificates until the Class B Certificate Principal Balance is reduced to zero;

(ii)         to the Class M-8 Certificates until the Class M-8 Certificate Principal Balance is reduced to zero;

(iii)        to the Class M-7 Certificates until the Class M-7 Certificate Principal Balance is reduced to zero;

(iv)        to the Class M-6 Certificates until the Class M-6 Certificate Principal Balance is reduced to zero;

(v)        to the Class M-5 Certificates until the Class M-5 Certificate Principal Balance is reduced to zero;

(vi)        to the Class M-4 Certificates until the Class M-4 Certificate Principal Balance is reduced to zero;

(vii)       to the Class M-3 Certificates until the Class M-3 Certificate Principal Balance is reduced to zero;

(viii)      to the Class M-2 Certificates until the Class M-2 Certificate Principal Balance is reduced to zero;

(ix)        to the Class M-1 Certificates until the Class M-1 Certificate Principal Balance is reduced to zero; and

(x)        with respect to Realized Losses on the Mortgage Loans in Loan Group 1 only, to the Class 1-A-2 Certificates until the Class 1-A-2 Certificate Principal Balance is reduced to zero.

 

 

(j)             Subject to Section 9.02 hereof respecting the final distribution, on each Distribution Date the Trustee shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if (i) such Holder has so notified the Trustee at least 5 Business Days prior to the related Record Date and (ii) such Holder shall hold Regular Certificates with aggregate principal denominations of not less than $1,000,000 or evidencing a Percentage Interest aggregating 10% or more with respect to such Class or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register.  Notwithstanding
the foregoing, but subject to Section 9.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds.

On or before 5:00 p.m. Pacific time on the fifth Business Day following each Determination Date (but in no event later than 5:00 p.m. Pacific time on the third Business Day before the related Distribution Date), the Master Servicer shall deliver a report to the Trustee in the form of a computer readable magnetic tape (or by such other means as the Master Servicer and the Trustee may agree from time to time) containing such data and information as agreed to by the Master Servicer and the Trustee such as to permit the Trustee to prepare the Monthly Statement to Certificateholders and make the required distributions for the related Distribution Date (the “Remittance Report”).  The Trustee shall not be responsible to recompute, recalculate or verify information provided to it by the Master Servicer and shall be permitted to conclusively rely on any information provided to it by the
Master Servicer.

	
            Section 4.05
 	
            Monthly Statements to Certificateholders.
 

(a)            Not later than each Distribution Date, the Trustee shall prepare and cause to be forwarded by first class mail to each Holder of a Class of Certificates of the Trust Fund, the Master Servicer, Countrywide and the Depositor a statement setting forth for the Certificates:

(i)         the amount of the related distribution to Holders of each Class allocable to principal, separately identifying (A) the aggregate amount of any Principal Prepayments included therein and (B) the aggregate of all scheduled payments of principal included therein;

(ii)         the amount of such distribution to Holders of each Class allocable to interest;

(iii)        any Interest Carry Forward Amount for each Class;

(iv)        the Certificate Principal Balance of each Class after giving effect (i) to all distributions allocable to principal on such Distribution Date and (ii) the allocation of any Applied Realized Loss Amounts for such Distribution Date;

(v)        the aggregate of the Stated Principal Balances of the Mortgage Loans for the Mortgage Pool and each Loan Group;

 

 

(vi)        the related amount of the Servicing Fees paid to or retained by the Master Servicer for the related Due Period;

(vii)       the Pass-Through Rate for each Class of Certificates with respect to the current Accrual Period;

(viii)      with respect to the May 2005 Distribution Date, the Seller Shortfall Interest Requirement (if any) for the related Master Servicer Advance Date;

(ix)        the amount of Advances for each Loan Group included in the distribution on such Distribution Date;

(x)         he cumulative amount of Applied Realized Loss Amounts to date;

(xi)        [reserved];

(xii)       the number and aggregate principal amounts of Mortgage Loans in each Loan Group: (A) Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, and (B) in foreclosure and Delinquent (1) 30 to 59 days, (2) 60 to 89 days and (3) 90 or more days, in each case as of the close of business on the last day of the calendar month preceding such Distribution Date;

(xiii)      with respect to any Mortgage Loan that became an REO Property during the preceding calendar month in each Loan Group, the loan number and Stated Principal Balance of such Mortgage Loan;

(xiv)      and the aggregate Stated Principal Balances of any Mortgage Loans converted to REO Properties as of the close of business on the Determination Date preceding such Distribution Date;

(xv)       the aggregate Stated Principal Balances of all Liquidated Loans;

(xvi)      with respect to any Liquidated Loan in each Loan Group, the loan number and Stated Principal Balance relating thereto;

(xvii)     whether a Trigger Event or Group 1 Sequential Trigger Event is in effect;

(xviii)    any Net Rate Carryover paid on each Class of Certificates (other than the Class A-R, Class C and Class P Certificates) and any remaining Net Rate Carryover remaining on each Class of Certificates (other than the Class A-R, Class C and Class P Certificates) on such Distribution Date;

(xix)      the amount of Prepayment Charges collected or waived by the Master Servicer;

(xx)        [reserved];

(xxi)       [reserved]; and

 

 

 

(xxii)     the amount, if any, due, and the amount received under each Corridor Contract for such Distribution Date.

(b)            The Trustee’s responsibility for disbursing the above information to the Certificateholders is limited to the availability, timeliness and accuracy of the information derived from the Master Servicer.  The Trustee will send a copy of each statement provided pursuant to this Section 4.05 to each Rating Agency.  The Trustee may make the above information available to Certificateholders via the Trustee’s website at http://www.bnyinvestorreporting.com.

(c)            Within a reasonable period of time after the end of each calendar year, the Trustee shall cause to be furnished to each Person who at any time during the calendar year was a Certificateholder, a statement containing the information set forth in clauses (a)(i), (a)(ii) and (a)(vi) of this Section 4.05 aggregated for such calendar year or applicable portion thereof during which such Person was a Certificateholder.  Such obligation of the Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Trustee pursuant to any requirements of the Code as from time to time in effect.

(d)            Upon filing with the Internal Revenue Service, the Trustee shall furnish to the Holders of the Class A-R Certificates the Form 1066 and each Form 1066Q and shall respond promptly to written requests made not more frequently than quarterly by any Holder of Class A-R Certificates with respect to the following matters:

(i)         The original projected principal and interest cash flows on the Closing Date on each related Class of regular and residual interests created hereunder and on the Mortgage Loans, based on the Prepayment Assumption;

(ii)         The projected remaining principal and interest cash flows as of the end of any calendar quarter with respect to each related Class of regular and residual interests created hereunder and the Mortgage Loans, based on the Prepayment Assumption;

(iii)        The applicable Prepayment Assumption and any interest rate assumptions used in determining the projected principal and interest cash flows described above;

(iv)        The original issue discount (or, in the case of the Mortgage Loans, market discount) or premium accrued or amortized through the end of such calendar quarter with respect to each related Class of regular or residual interests created hereunder and to the Mortgage Loans, together with each constant yield to maturity used in computing the same;

(v)        The treatment of losses realized with respect to the Mortgage Loans or the regular interests created hereunder, including the timing and amount of any cancellation of indebtedness income of the related REMIC with respect to such regular interests or bad debt deductions claimed with respect to the Mortgage Loans;

(vi)        The amount and timing of any non-interest expenses of the related REMIC; and

 

 

(vii)       Any taxes (including penalties and interest) imposed on the related REMIC, including, without limitation, taxes on “prohibited transactions,” “contributions” or “net income from foreclosure property” or state or local income or franchise taxes.

The information pursuant to clauses (i), (ii), (iii) and (iv) above shall be provided by the Depositor pursuant to Section 8.11.

	
            Section 4.06
 	
            [Reserved]
 	
             

	
            Section 4.07
 	
            [Reserved]
 	
             

	
            Section 4.08
 	
            Carryover Reserve Fund.
 

(a)            On the Closing Date, the Trustee shall establish and maintain in its name, in trust for the benefit of the Holders of the Certificates, the Carryover Reserve Fund.   The Carryover Reserve Fund 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 held by the Trustee pursuant to this Agreement.

(b)            [reserved].

(c)            The Trustee shall make withdrawals from the Carryover Reserve Fund to make distributions of amounts allocated to the Trust Fund by the Corridor Contract Administrator pursuant to the Corridor Contract Administration Agreement to the related Certificates pursuant to paragraph (e) of Section 4.04 hereof. Any amounts remaining after the distributions required pursuant to preceding sentence shall be distributed to the Class C Certificates; provided, however, that if a Corridor Contract is subject to early termination, early termination payments on such Corridor Contract allocated to the Trustee by the Corridor Contract Administrator pursuant to the Corridor Contract Administration Agreement will be held by the Trustee until the related Corridor Contract Termination Date and deposited in the Carryover Reserve Fund as
necessary to cover any Net Rate Carryover on the Certificates entitled thereto on future Distribution Dates.

(d)            Funds in the Carryover Reserve Fund may be invested in Permitted Investments.  Any earnings on such amounts shall be payable to the Class C Certificates.  The Class C Certificates shall evidence ownership of the Carryover Reserve Fund for federal tax purposes and the Holders thereof evidencing not less than 50% of the Voting Rights of such Class shall direct the Trustee in writing as to the investment of amounts therein.  In the absence of such written direction, all funds in the Carryover Reserve Fund shall be invested by the Trustee in The Bank of New York cash reserves.

(e)            Upon termination of the Trust Fund, any amounts remaining in the Carryover Reserve Fund shall be distributed to the Holders of the Class C Certificates in the same manner as if distributed pursuant to Section 4.04(f) hereof.

	
            Section 4.09
 	
            Distributions on the REMIC I Regular Interests.
 

 

 

 

(a)            (1)(A)           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 or withdrawn from the Distribution Account and distributed to the holders of the Class AR Certificates (in respect of the Class R-I Interest), as the case may be:

(i)         first, (a) to Holders of REMIC I Regular Interest LT-AA, REMIC Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC Regular Interest LT-M3, REMIC Regular Interest LT-M4, REMIC Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8, REMIC Regular Interest LT-B, REMIC I Regular Interest LT-ZZ, REMIC I Regular Interest LT-P and REMIC I Regular Interest LT-R, pro rata, in an amount equal to (A) the Uncertificated Accrued Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates. Amounts payable as Uncertificated
Accrued Interest in respect of REMIC I Regular Interest LT-ZZ shall be reduced and deferred when the REMIC I Overcollateralized Amount is less than the REMIC I Overcollateralization Target Amount, by the lesser of (x) the amount of such difference and (y) the REMIC I Regular Interest LT-ZZ Maximum Interest Deferral Amount and such amount will be payable to the Holders of REMIC Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC Regular Interest LT-2A3, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC Regular Interest LT-M3, REMIC Regular Interest LT-M4, REMIC Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8 and REMIC Regular Interest LT-B in the same proportion as the Overcollateralization Increase Amount is allocated to the Corresponding Certificates and the Uncertificated Principal Balance of REMIC I Regular Interest
LT-ZZ shall be increased by such amount; and

(b)            to Holders of REMIC I Regular Interest LT-1SUB, REMIC I Regular Interest LT-1GRP, REMIC I Regular Interest LT-2SUB, REMIC I Regular Interest LT-2GRP and REMIC I Regular Interest LT-XX, pro rata, in an amount equal to (A) the Uncertificated Accrued Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates

(i)         second, to the Holders of REMIC I Regular Interests, in an amount equal to the remainder of the REMIC I Marker Allocation Percentage of Available Funds for such Distribution Date after the distributions made pursuant to clause (i) above, allocated as follows:

(a)        98.00% of such remainder (other than amounts payable under clause (c) below), to the Holders of REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-P, until the Uncertificated Principal Balance of such REMIC I Regular Interest is reduced to zero, provided, however, that REMIC I Regular Interest LT-P shall not be reduced until the Distribution Date immediately following the expiration of the latest Prepayment Charge as identified on the Prepayment Charge Schedule or any 

 

 

Distribution Date thereafter, at which point such amount shall be distributed to REMIC I Regular Interest LT-P, until $100 has been distributed pursuant to this clause;

(b)        2.00% of such remainder first, to the Holders of REMIC I Regular Interest LT-1A1, REMIC I Regular Interest LT-1A2, REMIC I Regular Interest LT-2A1, REMIC I Regular Interest LT-2A2, REMIC I Regular Interest LT-2A, REMIC I Regular Interest LT-M1, REMIC I Regular Interest LT-M2, REMIC I Regular Interest LT-M3, REMIC I Regular Interest LT-M4, REMIC I Regular Interest LT-M5, REMIC 1 REGULAR Interest LT-M6, REMIC 1 Regular Interest LT-M7, REMIC 1 Regular Interest LT-M8 and REMIC Regular Interest LT-B, 1.00% in the same proportion as principal payments are allocated to the Corresponding Certificates, until the Uncertificated Principal Balances of such REMIC I Regular Interests are reduced to zero and second, to the Holders of REMIC I Regular Interest LT-ZZ, until the Uncertificated Principal Balance of such REMIC I Regular
Interest is reduced to zero; then

(c)        any remaining amount to the Holders of the Class AR Certificates (in respect of the Class R-I Interest); and

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that are attributable to an Overcollateralization Reduction Amount shall be allocated to Holders of (i) REMIC I Regular Interest LT-AA and REMIC I Regular Interest LT-P, in that order and (ii) REMIC I Regular Interest LT-ZZ, respectively; provided that REMIC I Regular Interest LT-P shall not be reduced until the Distribution Date immediately following the expiration of the latest Prepayment Charge as identified on the Prepayment Charge Schedule or any Distribution Date thereafter, at which point such amount shall be distributed to REMIC I Regular Interest LT-P, until $100 has been distributed pursuant to this clause.

On each Distribution Date, all amounts representing Prepayment Charges in respect of the Mortgage Loans received during the related Prepayment Period will be distributed by REMIC I to the Holders of REMIC I Regular Interest LT-P. The payment of the foregoing amounts to the Holders of REMIC I Regular Interest LT-P shall not reduce the Uncertificated Principal Balance thereof.

(ii)         third, to the Holders of REMIC I Regular Interests, in an amount equal to the remainder of the REMIC I Sub WAC Allocation Percentage of Available Funds for such Distribution Date after the distributions made pursuant to clause (i) above, allocated as follows:

(a)        Distributions of interest shall be deemed to be made to the Holders of REMIC I Regular Interest LT-ISUB, REMIC I Regular Interest LT1-GRP, REMIC I Regular Interest LT-2GRP and REMIC I Regular Interest LT-XX, pro rata, in an amount equal to (A) the Uncertificated Accrued Interest for each such REMIC I Regular Interest for such Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from previous Distribution Dates.

(b)        Distributions of principal shall be deemed to be made to the REMIC I Regular Interests first, so as to keep the Uncertificated Principal Balance of each REMIC 

 

 

I Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Group; second, to each REMIC I Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Group over (y) the Certificate Principal Balance of the Class A Certificate in the related 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 I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining principal to REMIC I Regular Interest LT-XX.

(c)        Notwithstanding the distributions described in this Section 4.09, distribution of funds shall be made only in accordance with Section 4.04.

	
            Section 4.10
 	
            [Reserved].
 	
             

	
            Section 4.11
 	
            Allocation of Realized Losses on the REMIC I Regular Interests.
 

(a)            The REMIC I Marker Percentage of all Realized Losses on the Mortgage Loans shall be allocated by the Trustee on each Distribution Date to the following REMIC I Regular Interests in the specified percentages, as follows: first, to Uncertificated Interest payable to the REMIC I Regular Interest LT AA and REMIC I Regular Interest LT ZZ up to an aggregate amount equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated Principal Balances of the REMIC I Regular Interest LT AA and REMIC I Regular Interest LT ZZ up to an aggregate amount equal to the REMIC I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT B and REMIC I Regular Interest LT ZZ, 98%,
1.00% and 1%, respectively, until the Uncertificated Principal Balances of REMIC I Regular Interest LT B has been reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M8 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M8 has been reduced to zero; fifth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M7 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M7 has been reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M6 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M6 has been reduced to zero; seventh to the
Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M5 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M5 has been reduced to zero; eighth to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M4 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M4 has been reduced to zero; ninth to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M3 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of 

 

 

REMIC I Regular Interest LT M3 has been reduced to zero; tenth to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M2 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M2 has been reduced to zero; and eleventh sixth to the Uncertificated Principal Balances of REMIC I Regular Interest LT AA, REMIC I Regular Interest LT M1 and REMIC I Regular Interest LT ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal Balance of REMIC I Regular Interest LT M1 has been reduced to zero.

(b)            The REMIC I 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 Principal Balance of each REMIC I Regular Interest ending with the designation “GRP” equal to 0.01% of the aggregate Stated Principal Balance of the Mortgage Loans in the related Group; second, to each REMIC I Regular Interest ending with the designation “SUB,” so that the Uncertificated Principal Balance of each such REMIC I Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the Mortgage Loans in the related Group over (y) the Certificate Principal Balance of the Senior Certificate in the related 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 I Regular Interests such that the REMIC I Subordinated Balance Ratio is maintained); and third, any remaining Realized Losses shall be allocated to REMIC I Regular Interest LT-XX.

	
            Section 4.12
 	
            The Class P Certificates.
 

On the Closing Date, $100 shall be deposited into the Class P Distribution Account and shall be held in trust for the benefit of the Class P Certificateholders for payment pursuant to Section 4.04 upon the earlier of (a) the exercise of the Optional Termination by the Master Servicer pursuant to Section 9.01 and (b) the Class P Principal Distribution Date. Such funds may not be invested.

 

 

 

ARTICLE V

 

THE CERTIFICATES

	
            Section 5.01
 	
            The Certificates.
 

The Certificates shall be substantially in the forms attached hereto as Exhibits A-1 through A-8, B, C and D.  The Certificates shall be issuable in registered form, in the minimum dollar denominations, integral dollar multiples in excess thereof and aggregate dollar denominations as set forth in the following table:

 

	
             
 	
            
Class
 
 	
            
Minimum Denomination
 
 	
            
Integral Multiples in Excess of Minimum
 
 	
            
Original Certificate Principal Balance
 
 
	
             
 	
            1-A-1
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            267,840,000
 
	
             
 	
            1-A-2
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            66,960,000
 
	
             
 	
            2-A-1
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            180,895,000
 
	
             
 	
            2-A-2
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            80,140,000
 
	
             
 	
            2-A-3
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            31,915,000
 
	
             
 	
            A-R
 	
            $99.95(1)
 	
            N/A
 	
             
 	
            $
 	
            100.00
 
	
             
 	
            M-1
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            25,500,000
 
	
             
 	
            M-2
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            23,625,000
 
	
             
 	
            M-3
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            13,875,000
 
	
             
 	
            M-4
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            12,750,000
 
	
             
 	
            M-5
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            11,625,000
 
	
             
 	
            M-6
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            10,875,000
 
	
             
 	
            M-7
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            9,750,000
 
	
             
 	
            M-8
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            6,750,000
 
	
             
 	
            B
 	
            $20,000
 	
            $1,000
 	
             
 	
            $
 	
            7,500,000
 
	
             
 	
            C
 	
            20%
 	
            1%
 	
             
 	
            $
 	
            0.00
 
	
             
 	
            P
 	
            20%
 	
            1%
 	
             
 	
            $
 	
            100.00
 

 

(1) The Tax Matters Person Certificate may be issued in a denomination of $0.05.

The Certificates shall be executed by manual or facsimile signature on behalf of the Trustee by an authorized officer.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures were affixed, authorized to sign on behalf of the Trustee shall bind the Trustee, notwithstanding that such individuals or any of them have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of such authentication and delivery.  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 set forth as attached hereto executed by the Trustee by manual signature, and such certificate of authentication upon 

 

 

any Certificate 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.  On the Closing Date, the Trustee shall authenticate the Certificates to be issued at the written direction of the Depositor, or any affiliate thereof.

	
            Section 5.02
 	
            Certificate Register; Registration of Transfer and Exchange of Certificates.
 

(a)            The Trustee shall maintain, or cause to be maintained in accordance with the provisions of Section 5.09 hereof, a Certificate Register for the Trust Fund in which, subject to the provisions of subsections (b) and (c) below and to such reasonable regulations as it may prescribe, the Trustee shall provide for the registration of Certificates and of Transfers and exchanges of Certificates as herein provided.  Upon surrender for registration of Transfer of any Certificate, the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Certificates of the same Class and of like aggregate Percentage Interest.

At the option of a Certificateholder, Certificates may be exchanged for other Certificates of the same Class in authorized denominations and evidencing the same aggregate Percentage Interest upon surrender of the Certificates to be exchanged at the office or agency of the Trustee.  Whenever any Certificates are so surrendered for exchange, the Trustee shall execute, authenticate, and deliver the Certificates that the Certificateholder making the exchange is entitled to receive.  Every Certificate presented or surrendered for registration of Transfer or exchange shall be accompanied by a written instrument of Transfer in form satisfactory to the Trustee duly executed by the holder thereof or his attorney duly authorized in writing.

No service charge to the Certificateholders shall be made for any registration of Transfer or exchange of Certificates, but 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 may be required.

All Certificates surrendered for registration of Transfer or exchange shall be canceled and subsequently destroyed by the Trustee in accordance with the Trustee’s customary procedures.

(b)            No Transfer of a Private Certificate shall be made unless such Transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under the Securities Act and such state securities laws.  In the event that a transfer is to be made in reliance upon an exemption from the Securities Act and such state securities laws, in order to assure compliance with the Securities Act and such state securities laws, the Certificateholder desiring to effect such Transfer and such Certificateholder’s prospective transferee shall each certify to the Trustee in writing the facts surrounding the Transfer in substantially the forms set forth in Exhibit J (the “Transferor Certificate”) and (i) deliver a letter in
substantially the form of either Exhibit K (the “Investment Letter”) or Exhibit L (the “Rule 144A Letter”) or (ii) there shall be delivered to the Trustee at the expense of the Certificateholder desiring to effect such transfer an Opinion of Counsel that such Transfer may be made pursuant to an exemption from the Securities Act.  The Depositor shall provide to any Holder of a Private Certificate and any prospective transferee 

 

 

designated by any such Holder, information regarding the related Certificates and the Mortgage Loans and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate without registration thereof under the Securities Act pursuant to the registration exemption provided by Rule 144A.  The Trustee and the Master Servicer shall cooperate with the Depositor in providing the Rule 144A information referenced in the preceding sentence, including providing to the Depositor such information regarding the Certificates, the Mortgage Loans and other matters regarding the Trust Fund as the Depositor shall reasonably request to meet its obligation under the preceding sentence.  Each Holder of a Private Certificate desiring to effect such Transfer shall, and does hereby agree to, indemnify the Trustee, the Depositor, each Seller and
the Master 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.

No Transfer of an ERISA-Restricted Certificate or a Subordinate Certificate shall be made unless the Trustee shall have received either (i) a representation from the transferee of such Certificate acceptable to and in form and substance satisfactory to the Trustee (in the event such Certificate is a Private Certificate that is a Definitive Certificate, such requirement is satisfied only by the Trustee’s receipt of a representation letter from the transferee substantially in the form of Exhibit K or Exhibit L, or in the event such Certificate is a Class A-R Certificate, such requirement is satisfied only by the Trustee’s receipt of a representation letter from the transferee substantially in the form of Exhibit I), to the effect that such transferee is not an employee benefit plan or arrangement subject to Section 406 of ERISA or a plan or arrangement subject to Section 4975 of
the Code, nor a Person acting on behalf of any such plan or arrangement or using the assets of any such plan or arrangement to effect such transfer, or (ii) in the case of the Subordinate Certificates, a representation from the transferee of such Certificates that (A) it has acquired and is holding such Certificate in reliance on the Underwriters’ Exemption and that it understands that there are certain conditions to the availability of the Underwriters’ Exemption, including that the Certificate must be rated, at the time of purchase, not less than “BBB-“ or its equivalent by one of the Rating Agencies and, in the case of a Class M-3 Certificate or Class M-4 Certificate, that it is an accredited investor as defined in Rule 501(a)(1) of Regulation D of the Securities and Exchange Commission under the Securities Act of 1933 and that it will obtain a representation from any transferee that such transferee is an accredited investor so long  as  it is required to obtain
a representation regarding compliance with the 1933Act or (B) the purchaser is an insurance company which is purchasing such Certificates with funds contained in an “insurance company general account” (as such term is defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and the conditions of Sections I and III of PTCE 95-60 have been satisfied or (iii) in the case of the Class C Certificates or the Class P Certificates if such Certificates have been offered in a placement or underwriting which meets the requirements of the Underwriter’s Exemption, a representation that the purchaser is an insurance company which is purchasing such Certificates with funds contained in or “insurance company general account” (as such term is defined in Section V(e) of PTCE 95-60) and the conditions of sections I and III of PTCE 95-60 have been satisfied, or (iv) in the case of any ERISA-Restricted Certificate presented for registration
in the name of an employee benefit plan subject to ERISA, or a plan or arrangement subject to Section 4975 of the Code (or comparable provisions of any subsequent enactments), or a trustee of any such plan or any other person acting on behalf of any such plan or arrangement, or using such plan’s or arrangement’s assets, an opinion of counsel satisfactory to the Trustee, for the benefit of the Trustee, the Sellers, the 

 

 

Depositor and the Master Servicer, and on which they may rely, which opinion of counsel shall not be an expense of either the Trustee or the Trust Fund, addressed to the Trustee to the effect that the purchase and holding of such ERISA-Restricted Certificate is permissible under applicable law, will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code and will not subject the Depositor, any Seller, the Master Servicer or Trustee to any obligation, or liability (including liabilities or obligations under ERISA or Section 4975 of the Code) in addition to those expressly undertaken in this Agreement or to any liability.  For purposes of the preceding sentence, with respect to an ERISA-Restricted Certificate that is not a Book-Entry Certificate or a Class A-R Certificate, in the event the representation letter referred to in the preceding
sentence is not so furnished, such representation shall be deemed to have been made to the Trustee by the transferee’s (including an initial acquiror’s) acceptance of such ERISA-Restricted Certificate.  Notwithstanding anything else to the contrary herein, any purported transfer of an ERISA-Restricted Certificate or a Subordinate Certificate to or on behalf of an employee benefit plan subject to ERISA or the Code other than as described above shall be void and of no effect. Any purported beneficial owner whose acquisition or holding of the Certificate or interest therein was effected in violation of the conditions described in this paragraph shall indemnify and hold harmless the Depositor, the Trustee, the Master Servicer, the Sellers, any Subservicer 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.

To the extent permitted under applicable law (including, but not limited to, ERISA), the Trustee shall be under no liability to any Person for any registration of Transfer of any ERISA-Restricted Certificate that is in fact not permitted by this Section 5.02(b) or for making any payments due on such Certificate to the Holder thereof or taking any other action with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered by the Trustee in accordance with the foregoing requirements.

(c)            Each Person who has or who acquires any Ownership Interest in a Class A-R Certificate shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions, and the rights of each Person acquiring any Ownership Interest in a Class A-R Certificate are expressly subject to the following provisions:

(i)         Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of any change or impending change in its status as a Permitted Transferee.

(ii)         No Ownership Interest in a Class A-R Certificate may be registered on the Closing Date or thereafter transferred, and the Trustee shall not register the Transfer of any Class A-R Certificate unless, in addition to the representation letters required to be delivered to the Trustee under subparagraph (b) above, the Trustee shall have been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner or the proposed transferee in the form attached hereto as Exhibit I.

(iii)        Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person to whom such Person attempts to Transfer its Ownership Interest in a Class A-R Certificate, (B) to 

 

 

obtain a Transfer Affidavit from any Person for whom such Person is acting as nominee, trustee or agent in connection with any Transfer of a Class A-R Certificate and (C) not to Transfer its Ownership Interest in a Class A-R Certificate or to cause the Transfer of an Ownership Interest in a Class A-R Certificate to any other Person if it has actual knowledge that such Person is not a Permitted Transferee.

(iv)        Any attempted or purported Transfer of any Ownership Interest in a Class A-R Certificate in violation of the provisions of this Section 5.02(c) shall be absolutely null and void and shall vest no rights in the purported Transferee.  If any purported transferee shall become a Holder of a Class A-R Certificate in violation of the provisions of this Section 5.02(c), then the last preceding Permitted Transferee shall be restored to all rights as Holder thereof retroactive to the date of registration of Transfer of such Class A-R Certificate.  The Trustee shall be under no liability to any Person for any registration of Transfer of a Class A-R Certificate that is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or for making any payments due on such Certificate to the Holder thereof or taking any other
action with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered after receipt of the related Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter or the Investment Letter.  The Trustee shall be entitled but not obligated to recover from any Holder of a Class A-R Certificate that was in fact not a Permitted Transferee at the time it became a Holder or, at such subsequent time as it became other than a Permitted Transferee, all payments made on such Class A-R Certificate at and after either such time.  Any such payments so recovered by the Trustee shall be paid and delivered by the Trustee to the last preceding Permitted Transferee of such Certificate.

(v)        The Depositor shall use its best efforts to make available, upon receipt of written request from the Trustee, all information necessary to compute any tax imposed under Section 860E(e) of the Code as a result of a Transfer of an Ownership Interest in a Class A-R Certificate to any Holder who is not a Permitted Transferee.

The restrictions on Transfers of a Class A-R Certificate set forth in this Section 5.02(c) shall cease to apply (and the applicable portions of the legend on a Class A-R  Certificate may be deleted) with respect to Transfers occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, any Seller or the Master Servicer, to the effect that the elimination of such restrictions will not cause any REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding or result in the imposition of any tax on the Trust Fund, a Certificateholder or another Person.  Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate hereby consents to any amendment of this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a)
to ensure that the record ownership of, or any beneficial interest in, a Class A-R Certificate is not transferred, directly or indirectly, to a Person that is not a Permitted Transferee and (b) to provide for a means to compel the Transfer of a Class A-R Certificate that is held by a Person that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

 

 

(d)            The preparation and delivery of all representation letters and opinions referred to above in this Section 5.02 in connection with any Transfers shall be at the expense of the parties to such Transfers.

	
            Section 5.03
 	
            Mutilated, Destroyed, Lost or Stolen Certificates.
 

If (a) any mutilated Certificate is surrendered to the Trustee, or the Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and of the ownership thereof and (b) there is delivered to the Master Servicer and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Trustee that such Certificate has been acquired by a bona fide purchaser, the Trustee shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor and Percentage Interest.  In connection with the issuance of any new Certificate under this Section 5.03, the Trustee 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 Trustee) connected therewith.  Any replacement Certificate issued pursuant to this Section 5.03 shall constitute complete and indefeasible evidence of ownership in the Trust Fund, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.  All Certificates surrendered to the Trustee under the terms of this Section 5.03 shall be canceled and destroyed by the Trustee in accordance with its standard procedures without liability on its part.

	
            Section 5.04
 	
            Persons Deemed Owners.
 

The Master Servicer, the Trustee and any agent of the Master Servicer or the Trustee may treat the person in whose name any Certificate is registered as the owner of such Certificate for the purpose of receiving distributions as provided in this Agreement and for all other purposes whatsoever, and neither the Master Servicer, the Trustee nor any agent of the Master Servicer or the Trustee shall be affected by any notice to the contrary.

	
            Section 5.05
 	
            Access to List of Certificateholders’ Names and Addresses.
 

If three or more Certificateholders and/or Certificate Owners (a) request such information in writing from the Trustee, (b) state that such Certificateholders and/or Certificate Owners desire to communicate with other Certificateholders and/or Certificate Owners with respect to their rights under this Agreement or under the Certificates, and (c) provide a copy of the communication that such Certificateholders and/or Certificate Owners propose to transmit or if the Depositor or Master Servicer shall request such information in writing from the Trustee, then the Trustee shall, within ten Business Days after the receipt of such request, provide the Depositor, the Master Servicer or such Certificateholders and/or Certificate Owners at such recipients’ expense the most recent list of the Certificateholders and/or Certificate Owners of the Trust Fund held by the Trustee, if any.  The
Depositor and every Certificateholder or Certificate Owner, by receiving and holding a Certificate, agree that the Trustee shall not be held accountable by reason of the disclosure of any such information as to the list of the Certificateholders hereunder, regardless of the source from which such information was derived.

 

 

 

	
            Section 5.06
 	
            Book-Entry Certificates.
 

The Regular Certificates, upon original issuance, shall be issued in the form of one or more typewritten Certificates representing the Book-Entry Certificates, to be delivered to the Depository by or on behalf of the Depositor.  Such Certificates shall initially be registered on the Certificate Register in the name of the Depository or its nominee, and no Certificate Owner of such Certificates will receive a definitive certificate representing such Certificate Owner’s interest in such Certificates, except as provided in Section 5.08. Unless and until definitive, fully registered Certificates (“Definitive Certificates”) have been issued to the Certificate Owners of such Certificates pursuant to Section 5.08:

(a)            the provisions of this Section shall be in full force and effect;

(b)            the Depositor, the Sellers, the Master Servicer and the Trustee may deal with the Depository and the Depository Participants for all purposes (including the making of distributions) as the authorized representative of the respective Certificate Owners of such Certificates;

(c)            registration of the Book-Entry Certificates may not be transferred by the Trustee except to another Depository;

(d)            the rights of the respective Certificate Owners of such Certificates shall be exercised only through the Depository and the Depository Participants and shall be limited to those established by law and agreements between the Owners of such Certificates and the Depository and/or the Depository Participants.  Pursuant to the Depository Agreement, unless and until Definitive Certificates are issued pursuant to Section 5.08, the Depository will make book-entry transfers among the Depository Participants and receive and transmit distributions of principal and interest on the related Certificates to such Depository Participants;

(e)            the Depository may collect its usual and customary fees, charges and expenses from its Depository Participants;

(f)             the Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to its Depository Participants; and

(g)            to the extent that the provisions of this Section conflict with any other provisions of this Agreement, the provisions of this Section shall control.

For purposes of any provision of this Agreement requiring or permitting actions with the consent of, or at the direction of, Certificateholders evidencing a specified percentage of the aggregate unpaid principal amount of any Class of Certificates, such direction or consent may be given by Certificate Owners (acting through the Depository and the Depository Participants) owning Book-Entry Certificates evidencing the requisite percentage of principal amount of such Class of Certificates.

	
            Section 5.07
 	
            Notices to Depository.
 

 

 

 

Whenever any notice or other communication is required to be given to Certificateholders of the Class with respect to which Book-Entry Certificates have been issued, unless and until Definitive Certificates shall have been issued to the related Certificate Owners, the Trustee shall give all such notices and communications to the Depository.

	
            Section 5.08
 	
            Definitive Certificates.
 

If, after Book-Entry Certificates have been issued with respect to any Certificates, (a) the Depositor advises the Trustee that the Depository is no longer willing or able to discharge properly its responsibilities under the Depository Agreement with respect to such Certificates and the Trustee or the Depositor is unable to locate a qualified successor or (b) after the occurrence and continuation of an Event of Default, Certificate Owners of such Book-Entry Certificates having not less than 51% of the Voting Rights evidenced by any Class of Book-Entry Certificates advise the Trustee and the Depository in writing through the Depository Participants that the continuation of a book-entry system with respect to Certificates of such Class through the Depository (or its successor) is no longer in the best interests of the Certificate Owners of such Class, then the Trustee shall notify all
Certificate Owners of such Certificates, through the Depository, of the occurrence of any such event and of the availability of Definitive Certificates to Certificate Owners of such Class requesting the same.  The Depositor shall provide the Trustee with an adequate inventory of certificates to facilitate the issuance and transfer of Definitive Certificates.  Upon surrender to the Trustee of any such Certificates by the Depository, accompanied by registration instructions from the Depository for registration, the Trustee shall authenticate and deliver such Definitive Certificates.  Neither the Depositor nor the Trustee shall be liable for any delay in delivery of such instructions and each may conclusively rely on, and shall be protected in relying on, such instructions.  Upon the issuance of such 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 Trustee, to the extent
applicable with respect to such Definitive Certificates and the Trustee shall recognize the Holders of such Definitive Certificates as Certificateholders hereunder.

	
            Section 5.09
 	
            Maintenance of Office or Agency.
 

The Trustee will maintain or cause to be maintained at its expense an office or offices or agency or agencies in New York City where Certificates may be surrendered for registration of transfer or exchange.  The Trustee initially designates its offices at 101 Barclay Street, New York, New York 10286, Attention:  Corporate Trust MBS Administration, as offices for such purposes.  The Trustee will give prompt written notice to the Certificateholders of any change in such location of any such office or agency.

 

 

ARTICLE VI

 

THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

	
            Section 6.01
 	
            Respective Liabilities of the Depositor, the Master Servicer and the Sellers.
 

The Depositor, the Master Servicer and each Seller shall each be liable in accordance herewith only to the extent of the obligations specifically and respectively imposed upon and undertaken by them herein.

	
            Section 6.02
 	
            Merger or Consolidation of the Depositor, the Master Servicer or the Sellers.
 

Each of the Depositor and each Seller will keep in full effect its existence, rights and franchises as a corporation under the laws of the United States or under the laws of one of the states thereof and will each obtain and preserve its qualification to do business as a foreign corporation in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, or any of the Mortgage Loans and to perform its duties under this Agreement.  The Master Servicer will keep in effect its existence, rights and franchises as a limited partnership under the laws of the United States or under the laws of one of the states thereof and will obtain and preserve its qualification or registration to do business as a foreign partnership in each jurisdiction in which such qualification or registration is or shall be necessary to protect the
validity and enforceability of this Agreement or any of the Mortgage Loans and to perform its duties under this Agreement.

Any Person into which the Depositor, the Master Servicer or any Seller may be merged or consolidated, or any Person resulting from any merger or consolidation to which the Depositor, the Master Servicer or any Seller shall be a party, or any person succeeding to the business of the Depositor, the Master Servicer or any Seller, shall be the successor of the Depositor, the Master Servicer or such Seller, 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 that the successor or surviving Person to the Master Servicer shall be qualified to service mortgage loans on behalf of Fannie Mae or Freddie Mac.

	
            Section 6.03
 	
            Limitation on Liability of the Depositor, the Sellers, the Master Servicer and Others.
 

None of the Depositor, any of the Sellers, the Master Servicer or any of the directors, officers, employees or agents of the Depositor, any Seller 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 that this provision shall not protect the Depositor, any Seller, the Master Servicer or any such Person against any breach of representations or warranties made by it herein or protect the Depositor, any Seller, the Master Servicer or any such Person from any liability that would 

 

 

otherwise be imposed by reasons 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, each Seller, the Master Servicer and any director, officer, employee or agent of the Depositor, each Seller or the Master Servicer may rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder.  The Depositor, each Seller, the Master Servicer and any director, officer, employee or agent of the Depositor, each Seller or the Master Servicer shall be indemnified by the Trust Fund and held harmless against any loss, liability or expense incurred in connection with any audit, controversy or judicial proceeding relating to a governmental taxing authority or any legal action relating to this Agreement or the Certificates, other
than any loss, liability or expense related to any specific Mortgage Loan or Mortgage Loans (except as any such loss, liability or expense shall be otherwise reimbursable pursuant to this Agreement) and 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.  None of the Depositor, any Seller or the Master Servicer shall be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its respective duties hereunder and that in its opinion may involve it in any expense or liability; provided that any of the Depositor, any Seller or the Master Servicer may, in its discretion undertake any such action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and interests of the Trustee and the Certificateholders hereunder.  In such
event, the legal expenses and costs of such action and any liability resulting therefrom shall be, expenses, costs and liabilities of the Trust Fund, and the Depositor, each Seller and the Master Servicer shall be entitled to be reimbursed therefor out of the Certificate Account as provided by Section 3.08 hereof.

	
            Section 6.04
 	
            Limitation on Resignation of 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 permitting the resignation of the Master Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Trustee.  No such resignation shall become effective until the Trustee or a successor servicer to such appointment shall have assumed the Master Servicer’s responsibilities, duties, liabilities and obligations hereunder.

	
            Section 6.05
 	
            Errors and Omissions Insurance; Fidelity Bonds.
 

The Master Servicer shall, for so long as it acts as servicer under this Agreement, obtain and maintain in force (a) a policy or policies of insurance covering errors and omissions in the performance of its obligations as servicer hereunder, and (b) a fidelity bond in respect of its officers, employees and agents.  Each such policy or policies and bond shall, together, comply with the requirements from time to time of Fannie Mae or Freddie Mac for persons performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac.  In the event that any such policy or bond ceases to be in effect, the Master Servicer shall use its reasonable best efforts to obtain a comparable replacement policy or bond from an insurer or issuer, meeting the requirements set forth above as of the date of such replacement.

 

 

 

ARTICLE VII

 

DEFAULT; TERMINATION OF MASTER SERVICER

	
            Section 7.01
 	
            Events of Default.
 

“Event of Default,” wherever used herein, means any one of the following events:

(i)         any failure by the Master Servicer to deposit in the Certificate Account or the Distribution Account or remit to the Trustee any payment (excluding a payment required to be made under Section 4.01 hereof) required to be made under the terms of this Agreement, which failure shall continue unremedied for five calendar days and, with respect to a payment required to be made under Section 4.01 hereof, for one Business Day, after the date on which written notice of such failure shall have been given to the Master Servicer by the Trustee, Countrywide or the Depositor, or to the Trustee and the Master Servicer by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates; or

(ii)         any failure by the Master Servicer 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 any representation or warranty shall prove to be untrue, which failure or breach shall continue unremedied for a period of 60 days after the date on which written notice of such failure shall have been given to the Master Servicer by the Trustee or the Depositor, or to the Trustee by the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates; provided that the sixty-day cure period shall not apply to the initial delivery of the Mortgage File for Delay Delivery Mortgage Loans nor the failure to repurchase or substitute in lieu thereof; or

(iii)        a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, 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 60 consecutive days; or

(iv)        the Master Servicer shall consent to the appointment of a receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Master Servicer or all or substantially all of the property of the Master Servicer;

(v)        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, or commence a voluntary case under, any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; or

(vi)        the Master Servicer shall fail to reimburse in full the Trustee not later than 6:00 P.M., New York time on the Business Day following the related Distribution Date for any 

 

 

Advance made by the Trustee pursuant to Section 4.01(b) together with accrued and unpaid interest.

If an Event of Default shall occur, then, and in each and every such case, so long as such Event of Default shall not have been remedied, the Trustee shall, but only at the direction of the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates, by notice in writing to the Master Servicer (with a copy to each Rating Agency), terminate all of the rights and obligations of the Master Servicer under this Agreement and in and to the Mortgage Loans and the proceeds thereof, other than its rights as a Certificateholder hereunder.  On or after the receipt by the Master Servicer of such written notice, all authority and power of the Master Servicer hereunder, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee.  The Trustee shall thereupon make any Advance described in Section 4.01 hereof subject to
Section 3.04 hereof.  The Trustee is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer, as attorney-in-fact or otherwise, 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.  Unless expressly provided in such written notice, no such termination shall affect any obligation of the Master Servicer to pay amounts owed pursuant to Article VIII.  The Master Servicer agrees to cooperate with the Trustee in effecting the termination of the Master Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to the Trustee of all cash amounts which shall at the time be credited to the Certificate Account, or thereafter be received with respect to the Mortgage Loans.  The Trustee
shall promptly notify the Rating Agencies of the occurrence of an Event of Default.

Notwithstanding any termination of the activities of a Master Servicer hereunder, such Master Servicer shall be entitled to receive, out of any late collection of a Scheduled Payment on a Mortgage Loan that was due prior to the notice terminating such Master Servicer’s rights and obligations as Master Servicer hereunder and received after such notice, that portion thereof to which such Master Servicer would have been entitled pursuant to Sections 3.08(a)(i) through (viii), and any other amounts payable to such Master Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder.

	
            Section 7.02
 	
            Trustee to Act; Appointment of Successor.
 

On and after the time the Master Servicer receives a notice of termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in Section 3.04, be the successor to the Master Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for herein and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Master Servicer by the terms and provisions hereof and applicable law including the obligation to make advances pursuant to Section 4.01.  As compensation therefor, the Trustee shall be entitled to all fees, costs and expenses relating to the Mortgage Loans that the Master Servicer would have been entitled to if the Master Servicer had continued to act hereunder.  Notwithstanding the foregoing, if the Trustee has become the successor to the Master Servicer in accordance with
Section 7.01 hereof, the Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited by applicable law from making Advances pursuant to Section 4.01 hereof or if it is otherwise unable to so act, appoint, or petition a court of competent jurisdiction 

 

 

to appoint, any established mortgage loan servicing institution the appointment of which does not adversely affect the then current rating of the Certificates by each Rating Agency as the successor to the Master Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer hereunder.  Any successor Master Servicer shall be an institution that is a Fannie Mae and Freddie Mac approved seller/servicer in good standing, that has a net worth of at least $15,000,000, and that is willing to service the Mortgage Loans and executes and delivers to the Depositor and the Trustee an agreement accepting such delegation and assignment, that contains an assumption by such Person of the rights, powers, duties, responsibilities, obligations and liabilities of the Master Servicer (other than liabilities of the Master Servicer under Section 6.03 hereof incurred
prior to termination of the Master Servicer under Section 7.01), with like effect as if originally named as a party to this Agreement; and provided further that each Rating Agency acknowledges that its rating of the Certificates in effect immediately prior to such assignment and delegation will not be qualified or reduced as a result of such assignment and delegation.  No appointment of a successor to the Master Servicer hereunder shall be effective until the Trustee shall have consented thereto, and written notice of such proposed appointment shall have been provided by the Trustee to each Certificateholder.  The Trustee shall not resign as servicer until a successor servicer has been appointed and has accepted such appointment.  Pending appointment of a successor to the Master Servicer hereunder, the Trustee, unless the Trustee is prohibited by law from so acting, shall, subject to Section 3.04 hereof, act in such capacity as hereinabove provided.  In connection with such
appointment and assumption, the Trustee may make such arrangements for the compensation of such successor out of payments on Mortgage Loans as it and such successor shall agree; provided that no such compensation shall be in excess of that permitted the Master Servicer hereunder.  The Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession.  Neither the Trustee nor any other successor servicer shall be deemed to be in default hereunder by reason of any failure to make, or any delay in making, any distribution hereunder or any portion thereof or any failure to perform, or any delay in performing, any duties or responsibilities hereunder, in either case caused by the failure of the Master Servicer to deliver or provide, or any delay in delivering or providing, any cash, information, documents or records to it.

Any successor to the Master Servicer as servicer shall give notice to the Mortgagors of such change of servicer and shall, during the term of its service as servicer maintain in force the policy or policies that the Master Servicer is required to maintain pursuant to Section 6.05.

In connection with the termination or resignation of the Master Servicer hereunder, either (i) the successor Master Servicer, including the Trustee if the Trustee is acting as successor Master Servicer, shall represent and warrant that it is a member of MERS in good standing and shall agree to 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, or (ii) the predecessor Master Servicer shall cooperate with the successor Master Servicer in causing MERS to execute and deliver an assignment of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee and to execute and deliver such other notices, documents and other instruments as may be necessary or desirable to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on the MERS® System to the
successor Master Servicer.  The predecessor Master Servicer shall file or cause to be filed any such assignment in the appropriate recording office.  The successor Master Servicer shall cause such assignment to 

 

 

be delivered to the Trustee or the Custodian promptly upon receipt of the original with evidence of recording thereon or a copy certified by the public recording office in which such assignment was recorded.

	
            Section 7.03
 	
            Notification to Certificateholders.
 

(a)            Upon any termination of or appointment of a successor to the Master Servicer, the Trustee shall give prompt written notice thereof to Certificateholders and to each Rating Agency.

(b)            Within 60 days after the occurrence of any Event of Default, the Trustee shall transmit by mail to all Certificateholders notice of each such Event of Default hereunder known to the Trustee, unless such Event of Default shall have been cured or waived.

 

 

 

ARTICLE VIII

 

CONCERNING THE TRUSTEE

	
            Section 8.01
 	
            Duties of Trustee.
 

The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default that may have occurred, shall undertake to perform such duties and only such duties as are specifically set forth in this Agreement.  In case an Event of Default has occurred and remains uncured, 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 their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

The Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Trustee that 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, to the extent provided in this Agreement.  If any such instrument is found not to conform to the requirements of this Agreement in a material manner, the Trustee shall take action as it deems appropriate to have the instrument corrected.

No provision of this Agreement shall be construed to relieve the Trustee from liability for its own grossly negligent action, its own gross negligent failure to act or its own misconduct, its grossly negligent failure to perform its obligations in compliance with this Agreement, or any liability that would be imposed by reason of its willful misfeasance or bad faith; provided that:

(i)         prior to the occurrence of an Event of Default, and after the curing of all such Events of Default that may have occurred, the duties and obligations of the Trustee shall be determined solely by the express provisions of this Agreement, the Trustee shall not be liable, individually or as Trustee, 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 and the Trustee 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 and conforming to the requirements of this Agreement that it reasonably believed in good faith to be genuine and to have been duly executed by the proper
authorities respecting any matters arising hereunder;

(ii)         the Trustee shall not be liable, individually or as Trustee, for an error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless the Trustee was grossly negligent or acted in bad faith or with willful misfeasance;

(iii)        the Trustee shall not be liable, individually or as Trustee, with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of Holders of each Class of Certificates evidencing not less than 25% of the Voting Rights of such Class relating to the time, method and place of conducting any proceeding for any remedy 

 

 

available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Agreement; and

(vi)        without in any way limiting the provisions of this Section 8.01 or Section 8.02 hereof, the Trustee shall be entitled to rely conclusively on the information delivered to it by the Master Servicer in a Trustee Advance Notice in determining whether or not it is required to make an Advance under Section 4.01(b), shall have no responsibility to ascertain or confirm any information contained in any Trustee Advance Notice, and shall have no obligation to make any Advance under Section 4.01(b) in the absence of a Trustee Advance Notice or actual knowledge of a Responsible Officer of the Trustee that (A) such Advance was not made by the Master Servicer and (B) that such Advance is not a Nonrecoverable Advance.

	
            Section 8.02
 	
            Certain Matters Affecting the Trustee.
 	
             

	
            (a)
 	
            Except as otherwise provided in Section 8.01:
 
				

(i)         the Trustee may request and rely upon and shall be protected in acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of auditors or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, appraisal, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

(ii)         the Trustee may consult with counsel and 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 Opinion of Counsel;

(iii)        the Trustee shall not be liable, individually or as Trustee, 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;

(iv)        prior to the occurrence of an Event of Default hereunder and after the curing of all Events of Default that may have occurred, the Trustee shall not 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 so to do by Holders of each Class of Certificates evidencing not less than 25% of the Voting Rights of such Class;

(v)        the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, accountants or attorneys;

(vi)        the Trustee shall not be required to expend its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such liability is not assured to it;

(vii)       the Trustee shall not be liable, individually or as Trustee, for any loss on any investment of funds pursuant to this Agreement (other than in its commercial capacity as issuer of the investment security);

 

 

(viii)      the Trustee shall not be deemed to have knowledge of an Event of Default until a Responsible Officer of the Trustee shall have received written notice thereof; and

(ix)        the Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Agreement or to make any investigation of matters arising hereunder 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 reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein or thereby.

(b)            All rights of action under this Agreement or under any of the Certificates, enforceable by the Trustee, may be enforced by the Trustee 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 the Certificates, subject to the provisions of this Agreement.

	
            Section 8.03
 	
            Trustee Not Liable for Mortgage Loans.
 

The recitals contained herein shall be taken as the statements of the Depositor or the Master Servicer, as the case may be, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Agreement or of any Mortgage Loan or related document or of MERS or the MERS® System other than with respect to the Trustee’s execution and authentication of the Certificates.  The Trustee shall not be accountable for the use or application by the Depositor or the Master Servicer of any funds paid to the Depositor or the Master Servicer in respect of the Mortgage Loans or deposited in or withdrawn from the Certificate Account by the Depositor or the Master Servicer.

	
            Section 8.04
 	
            Trustee May Own Certificates.
 

The Trustee in its individual or any other capacity may become the owner or pledgee of Certificates with the same rights as it would have if it were not the Trustee.

	
            Section 8.05
 	
            Master Servicer to Pay Trustee’s Fees and Expenses.
 

The Master Servicer covenants and agrees to pay or reimburse the Trustee, upon its request, for all reasonable expenses, disbursements and advances incurred or made by the Trustee on behalf of the Trust Fund in accordance with any of the provisions of this Agreement (including, without limitation:  (A) the reasonable compensation and the expenses and disbursements of its counsel, but only for representation of the Trustee acting in its capacity as Trustee hereunder and (B) to the extent that the Trustee must engage persons not regularly in its employ to perform acts or services on behalf of the Trust Fund, which acts or services are not in the ordinary course of the duties of a trustee, paying agent or certificate registrar, in the absence of a breach or default by any party hereto, the reasonable compensation, expenses and disbursements of such persons, except any such expense,
disbursement or advance as may arise from its negligence, bad faith or willful misconduct).  The Trustee and any director, officer, 

 

 

employee or agent of the Trustee shall be indemnified by the Master Servicer and held harmless against any loss, liability or expense (i) incurred in connection with any legal action relating to this Agreement or the Certificates, or in connection with the performance of any of the Trustee’s duties hereunder, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of any of the Trustee’s duties hereunder or by reason of reckless disregard of the Trustee’s obligations and duties hereunder and (ii) resulting from any error in any tax or information return prepared by the Master Servicer.  Such indemnity shall survive the termination of this Agreement or the resignation or removal of the Trustee hereunder.

	
            Section 8.06
 	
            Eligibility Requirements for Trustee.
 

The Trustee hereunder shall, at all times, be a corporation or association organized and doing business under the laws of a 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, subject to supervision or examination by federal or state authority and with a credit rating that would not cause any of the Rating Agencies to reduce their respective ratings of any Class of Certificates below the ratings issued on the Closing Date (or having provided such security from time to time as is sufficient to avoid such reduction).  If such corporation or association publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 8.06 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 condition so published.  In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 8.06, the Trustee shall resign immediately in the manner and with the effect specified in Section 8.07 hereof.  The corporation or national banking association serving as Trustee may have normal banking and trust relationships with the Depositor, any Seller and the Master Servicer and their respective affiliates; provided that such corporation cannot be an affiliate of the Master Servicer other than the Trustee in its role as successor to the Master Servicer.

	
            Section 8.07
 	
            Resignation and Removal of Trustee.
 

The Trustee may at any time resign and be discharged from the trusts hereby created by (1) giving written notice of resignation to the Depositor and the Master Servicer and by mailing notice of resignation by first class mail, postage prepaid, to the Certificateholders at their addresses appearing on the Certificate Register and each Rating Agency, not less than 60 days before the date specified in such notice when, subject to Section 8.08, such resignation is to take effect, and (2) acceptance of appointment by a successor trustee in accordance with Section 8.08 and meeting the qualifications set forth in Section 8.06.  If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice or resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee.

If at any time (i) the Trustee shall cease to be eligible in accordance with the provisions of Section 8.06 hereof and shall fail to resign after written request thereto by the Depositor, (ii) the Trustee shall become incapable of acting, or shall be adjudged as bankrupt or insolvent, or a 

 

 

receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, or (iii)(A) a tax is imposed with respect to the Trust Fund by any state in which the Trustee or the Trust Fund is located, (B) the imposition of such tax would be avoided by the appointment of a different trustee and (C) the Trustee fails to indemnify the Trust Fund against such tax, then the Depositor or the Master Servicer may remove the Trustee and appoint a successor trustee by written instrument, in triplicate, one copy of which instrument shall be delivered to the Trustee, one copy of which shall be delivered to the Master Servicer and one copy of which shall be delivered to the successor trustee.

The Holders evidencing at least 51% of the Voting Rights of each Class of Certificates may at any time remove the Trustee and appoint a successor trustee 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 by the successor Trustee to the Master Servicer one complete set to the Trustee so removed and one complete set to the successor so appointed.  Notice of any removal of the Trustee shall be given to each Rating Agency by the Successor Trustee.

Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.07 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 8.08 hereof.

	
            Section 8.08
 	
            Successor Trustee.
 

Any successor trustee appointed as provided in Section 8.07 hereof shall execute, acknowledge and deliver to the Depositor, its predecessor trustee and the Master Servicer an instrument accepting such appointment hereunder and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, 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 herein.

No successor trustee shall accept appointment as provided in this Section 8.08 unless at the time of such acceptance such successor trustee shall be eligible under the provisions of Section 8.06 hereof and its appointment shall not adversely affect the then current rating of the Certificates.

Upon acceptance of appointment by a successor trustee as provided in this Section 8.08, the Depositor shall mail notice of the succession of such trustee hereunder to all Holders of Certificates.  If the Depositor fails to mail such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Depositor.

	
            Section 8.09
 	
            Merger or Consolidation of Trustee.
 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated or any corporation resulting from any merger, conversion or consolidation 

 

 

to which the Trustee shall be a party, or any corporation succeeding to substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be eligible under the provisions of Section 8.06 hereof without the execution or filing of any paper or further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

	
            Section 8.10
 	
            Appointment of Co-Trustee or Separate Trustee.
 

Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Trust Fund or property securing any Mortgage Note may at the time be located, the Master Servicer and the Trustee acting jointly 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 the Trust Fund, and to vest in such Person or Persons, in such capacity and for the benefit of the Certificateholders, such title to the Trust Fund or any part thereof, whichever is applicable, and, subject to the other provisions of this Section 8.10, such powers, duties, obligations, rights and trusts as the Master Servicer and the Trustee may consider
necessary or desirable. If the Master Servicer shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, or in the case an Event of Default shall have occurred and be continuing, the Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 8.06 and no notice to Certificateholders of the appointment of any co-trustee or separate trustee shall be required under Section 8.08.

Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

(i)         All rights, powers, duties and obligations conferred or imposed upon the Trustee, except for the obligation of the Trustee under this Agreement to advance funds on behalf of the Master Servicer, shall be conferred or imposed upon and exercised or performed by the Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed (whether as Trustee hereunder or as successor to the 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 the Trust Fund
or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Trustee;

(ii)         No trustee hereunder shall be held personally liable by reason of any act or omission of any other trustee hereunder; and

(iii)        The Trustee may at any time accept the resignation of or remove any separate trustee or co-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 VIII.  Each separate trustee and co-trustee, upon its acceptance of the trusts 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 and a copy thereof given to the Master Servicer and the Depositor.

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.

	
            Section 8.11
 	
            Tax Matters.
 

It is intended that the Trust Fund shall constitute, and that the affairs of the Trust Fund shall be conducted so that each of REMIC I and REMIC II will qualify as, a “real estate mortgage investment conduit” as defined in and in accordance with the REMIC Provisions.  In furtherance of such intention, the Trustee covenants and agrees that it shall act as agent (and the Trustee is hereby appointed to act as agent) on behalf of the Trust Fund and that in such capacity it shall:  (a) prepare and file, or cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage Investment Conduit Income Tax Returns (Form 1066 or any successor form adopted by the Internal Revenue Service) and prepare and file or cause to be prepared and filed with the Internal Revenue Service and applicable state or local tax authorities income tax or information returns for each taxable year
with respect to each REMIC created hereunder containing such information and at the times and in the manner as may be required by the Code or state or local tax laws, regulations, or rules, and furnish or cause to be furnished to Certificateholders the schedules, statements or information at such times and in such manner as may be required thereby; (b) within thirty days of the Closing Date, furnish or cause to be furnished to the Internal Revenue Service, on Forms 8811 or as otherwise may be required by the Code, the name, title, address, and telephone number of the person that the holders of the Certificates may contact for tax information relating thereto, together with such additional information as may be required by such Form, and update such information at the time or times in the manner required by the Code for the Trust Fund; (c) make or cause to be made elections, on behalf of each REMIC created hereunder to be treated as a REMIC on the federal tax return of each such REMIC
for its first taxable year (and, if necessary, under applicable state law); (d) prepare and forward, or cause to be prepared and forwarded, to the Certificateholders and to the Internal Revenue Service and, if necessary, state tax authorities, all information returns and reports as and when required to be provided to them in accordance with the REMIC Provisions, including without limitation, the calculation of any original issue discount using the Prepayment Assumption; (e) provide information necessary for the computation of tax imposed on the transfer of a Class A-R Certificate to a Person that is not a Permitted Transferee, or an agent 

 

 

(including a broker, nominee or other middleman) of a Non-Permitted Transferee, or a pass-through entity in which a Non-Permitted Transferee is the record holder of an interest (the reasonable cost of computing and furnishing such information may be charged to the Person liable for such tax); (f) to the extent that they are under its control conduct the affairs of the Trust Fund at all times that any Certificates are outstanding so as to maintain the status of each REMIC created hereunder as a REMIC under the REMIC Provisions; (g) not knowingly or intentionally take any action or omit to take any action that would cause the termination of the REMIC status of any REMIC created hereunder; (h) pay, from the sources specified in the last paragraph of this Section 8.11, the amount of any federal, state and local taxes, including prohibited transaction taxes as described below, imposed on any REMIC created
hereunder prior to the termination of the Trust Fund when and as the same shall be due and payable (but such obligation shall not prevent the Trustee or any other appropriate Person from contesting any such tax in appropriate proceedings and shall not prevent the Trustee from withholding payment of such tax, if permitted by law, pending the outcome of such proceedings); (i) sign or cause to be signed federal, state or local income tax or information returns; (j) maintain records relating to each REMIC created hereunder, including but not limited to the income, expenses, assets and liabilities of each such REMIC, and the fair market value and adjusted basis of the Trust Fund property determined at such intervals as may be required by the Code, as may be necessary to prepare the foregoing returns, schedules, statements or information; and (k) as and when necessary and appropriate, represent the Trust Fund in any administrative or judicial proceedings relating to an examination or audit
by any governmental taxing authority, request an administrative adjustment as to any taxable year of any REMIC created hereunder, enter into settlement agreements with any governmental taxing agency, extend any statute of limitations relating to any tax item of the Trust Fund, and otherwise act on behalf of any REMIC created hereunder in relation to any tax matter involving any such REMIC.

In order to enable the Trustee to perform its duties as set forth herein, the Depositor shall provide, or cause to be provided, to the Trustee within 10 days after the Closing Date all information or data that the Trustee requests in writing and determines to be relevant for tax purposes to the valuations and offering prices of the Certificates, including, without limitation, the price, yield, prepayment assumption and projected cash flows of the Certificates and the Mortgage Loans.  Thereafter, the Depositor shall provide to the Trustee promptly upon written request therefor, any such additional information or data that the Trustee may, from time to time, request in order to enable the Trustee to perform its duties as set forth herein.  The Depositor hereby indemnifies the Trustee for any losses, liabilities, damages, claims or expenses of the Trustee arising from any errors, omissions
or miscalculations of the Trustee that result from any failure of the Depositor to provide, or to cause to be provided, accurate information or data to the Trustee on a timely basis.

In the event that any tax is imposed on “prohibited transactions” of the Trust Fund as defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure property” of the Trust Fund as defined in Section 860G(c) of the Code, on any contribution to the Trust Fund after the startup day pursuant to Section 860G(d) of the Code, or any other tax is imposed, including, without limitation, any federal, state or local tax or minimum tax imposed upon the Trust Fund pursuant to Sections 23153 and 24872 of the California Revenue and Taxation Code if not paid as otherwise provided for herein, such tax shall be paid by (i) the Trustee, if any such other tax arises out of or results from a breach by the Trustee of any of its obligations under this 

 

 

Agreement, (ii) (x) the Master Servicer, in the case of any such minimum tax, and (y) any party hereto (other than the Trustee) to the extent any such other tax arises out of or results from a breach by such other party of any of its obligations under this Agreement or (iii) in all other cases, or in the event that any liable party here fails to honor its obligations under the preceding clauses (i) or (ii), any such tax will be paid first with amounts otherwise to be distributed to the Class A-R Certificateholders , and second with amounts otherwise to be distributed to all other Certificateholders in the following order of priority: first, to the Class B Certificates, second, to the Class M-8 Certificates, third, to the Class M-7 Certificates, fourth, to the Class M-6 Certificates, fifth, to the Class M-5 Certificates, sixth, to the Class M-4 Certificates, seventh, to the Class M-3 Certificates, eighth,
to the Class M-2 Certificates, ninth, to the Class M-1 Certificates, and tenth, to the Class 1-A Certificates and Class 2-A Certificates.  Notwithstanding anything to the contrary contained herein, to the extent that such tax is payable by the Class A-R Certificates, the Trustee is hereby authorized to retain on any Distribution Date, from the Holders of the Class A-R Certificates (and, if necessary, second, from the Holders of the all other Certificates in the priority specified in the preceding sentence), funds otherwise distributable to such Holders in an amount sufficient to pay such tax.  The Trustee agrees to promptly notify in writing the party liable for any such tax of the amount thereof and the due date for the payment thereof.

The Trustee shall treat the rights of the Class 1-A-1, Class 1-A-2, Class 2-A-1, Class 2-A-2, Class 2-A-3, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B Certificateholders to receive payments from the Carryover Reserve Fund as rights in an interest rate cap contracts written by the Corridor Contract Counterparty with respect to the Net Rate Carryover funded by the Corridor Contracts and Excess Cashflow, in favor of the Certificateholders (other than the Holders of the Class A-R, Class C and Class P Certificates). Thus, each Certificate (other than the Class A-R, Class C and Class P Certificates) shall be treated as representing ownership of not only REMIC II Regular Interests, but also ownership of an interest in an interest rate cap contract. For purposes of determining the issue price of the REMIC II Regular Interests, the Trustee
shall assume that the Class 1-A Corridor Contract, the Class 2-A Corridor Contract and Subordinated Corridor Contract have values of $45,000, $30,000 and $35,000 respectively.

 

 

 

ARTICLE IX

 

TERMINATION

	
            Section 9.01
 	
            Termination upon Liquidation or Repurchase of all Mortgage Loans.
 

(a)   Subject to Section 9.03, the Trust Fund shall terminate and the obligations and responsibilities of the Depositor, the Master Servicer, the Sellers and the Trustee created hereby shall terminate upon the earlier of (a) the purchase by the Master Servicer of all of the Mortgage Loans (and REO Properties) remaining in the Trust Fund at the price equal to the sum of (i) 100% of the Stated Principal Balance of each Mortgage Loan plus one month's accrued interest thereon at the applicable Mortgage Rate less the Servicing Fee Rate, (ii) the lesser of (x) the appraised value of any REO Property as determined by the higher of two appraisals completed by two independent appraisers selected by the Master Servicer at the expense of the Master Servicer and (y) the Stated Principal Balance of each Mortgage Loan related to any REO Property and (iii) any remaining unpaid costs and damages incurred
by the Trust Fund that arises out of a violation of any predatory or abusive lending law that also constitutes an actual breach of representation (xxxiv) of Section 2.03 hereof and (b) the later of (i) the maturity or other liquidation (or any Advance with respect thereto) of the last Mortgage Loan remaining in the Trust Fund and the disposition of all REO Property and (ii) the distribution to Certificateholders of all amounts required to be distributed to them pursuant to this Agreement. In no event shall the trusts created hereby continue beyond the earlier of (i) the expiration of 21 years from the death of the 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 Latest Possible Maturity Date.

(b)   The right to purchase all Mortgage Loans and REO Properties by the Master Servicer (the party exercising such purchase option, the “Terminating Party”) pursuant to clause (a) above shall be conditioned upon the Stated Principal Balance of the Mortgage Loans at the time of any such repurchase, aggregating ten percent (10%) or less of the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.

(c)   The Master Servicer may assign the right to purchase all of the Mortgage Loans and REO Properties remaining in the Trust Fund at the price specified in (a) above to any third party.

	
            Section 9.02
 	
            Final Distribution on the Certificates.
 

If on any Determination Date, (i) the Master Servicer determines that there are no Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other than the funds in the Certificate Account, the Master Servicer shall direct the Trustee to send a final distribution notice promptly to each Certificateholder or (ii) the Trustee determines that a Class of Certificates shall be retired after a final distribution on such Class, the Trustee shall notify the related Certificateholders within five (5) Business Days after such Determination Date that the final distribution in retirement of such Class of Certificates is scheduled to be made on the immediately following Distribution Date.  Any final distribution made pursuant to the immediately preceding sentence will be made only upon presentation and surrender of the related 

 

 

Certificates at the Corporate Trust Office of the Trustee.  If the Terminating Party elects to terminate the Trust Fund  pursuant to Section 9.01, at least 5 days prior to the date notice is to be mailed to the Certificateholders, such electing party shall notify the Depositor and the Trustee of the date such electing party intends to terminate the Trust Fund and of the applicable repurchase price of the related Mortgage Loans and REO Properties.

Notice of any termination of the Trust Fund, specifying the Distribution Date on which related Certificateholders may surrender their Certificates for payment of the final distribution and cancellation, shall be given promptly by the Trustee by letter to related Certificateholders mailed not earlier than the 10th day and no later than the 15th day of the month of such final distribution.  Any such notice shall specify (a) the Distribution Date upon which final distribution on related Certificates will be made upon presentation and surrender of such Certificates at the office therein designated, (b) the amount of such final distribution, (c) the location of the office or agency at which such presentation and surrender must be made, and (d) that the Record Date otherwise applicable to such Distribution Date is not applicable, distributions being made only upon presentation and surrender of
such Certificates at the office therein specified.  The Master Servicer will give such notice to each Rating Agency at the time such notice is given to the affected Certificateholders.

In the event such notice is given, the Master Servicer shall cause all funds in the Certificate Account to be remitted to the Trustee for deposit in the Distribution Account on the Business Day prior to the applicable Distribution Date.  Upon such final deposit and the receipt by the Trustee of a Request for Release therefor, the Trustee shall promptly release to the Terminating Party the Mortgage Files for the related Mortgage Loans.

Upon presentation and surrender of the related Certificates, the Trustee shall cause to be distributed to Certificateholders of each Class the amounts allocable to such Certificates held in the Distribution Account (and, if applicable, the Carryover Reserve Fund) in the order and priority set forth in Section 4.04 hereof on the final Distribution Date and in proportion to their respective Percentage Interests.

In the event that any affected Certificateholders shall not surrender related Certificates for cancellation within six months after the date specified in the above mentioned written notice, the Trustee shall give a second written notice to the remaining Certificateholders to surrender their related Certificates for cancellation and receive the final distribution with respect thereto.  If within six months after the second notice all the applicable Certificates shall not have been surrendered for cancellation, the Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets that remain a part of the Trust Fund.  If within one year after the second notice all related Certificates shall not have been
surrendered for cancellation, the Class A-R Certificates shall be entitled to all unclaimed funds and other assets that remain subject hereto.

	
            Section 9.03
 	
            Additional Termination Requirements.
 

(a)            In the event the Terminating Party exercises the Option, the Trust Fund shall be terminated in accordance with the following additional requirements, unless the Trustee has been 

 

 

supplied with an Opinion of Counsel, at the expense of the Terminating Party, to the effect that the failure of the Trust Fund to comply with the requirements of this Section 9.03 will not (i) result in the imposition of taxes on “prohibited transactions” of a REMIC, or (ii) cause any REMIC created hereunder to fail to qualify as a REMIC at any time that any Certificates are outstanding:

(1)        The Terminating Party shall establish a 90 day liquidation period and notify the Trustee thereof, which shall in turn specify the first day of such period in a statement attached to the Trust Fund’s final Tax Return pursuant to Treasury Regulation Section 1.860F 1.  The Terminating Party shall prepare a plan of complete liquidation and shall otherwise satisfy all the requirements of a qualified liquidation under Section 860F of the Code and any regulations thereunder, as evidenced by an Opinion of Counsel obtained at the expense of the Terminating Party;

(2)        During such 90 day liquidation period, and at or prior to the time of making the final payment on the Certificates, the Master Servicer as agent of the Trustee shall sell all of the assets of the Trust Fund for cash; and

(3)        At the time of the making of the final payment on the Certificates, the Trustee shall distribute or credit, or cause to be distributed or credited, to the Class A-R Certificateholders all cash on hand (other than cash retained to meet claims) related to such Class of Certificates, and the Trust Fund shall terminate at that time.

(b)        By their acceptance of the Certificates, the Holders thereof hereby authorize the Terminating Party to specify the 90 day liquidation period for the Trust Fund, which authorization shall be binding upon all successor Certificateholders.

(c)        The Trustee as agent for each REMIC created hereunder hereby agrees to adopt and sign such a plan of complete liquidation upon the written request of the Terminating Party, and, together with the holders of the Class A-R Certificates, agree to take such other action in connection therewith as may be reasonably requested by the Terminating Party.

 

 

 

ARTICLE X

 

MISCELLANEOUS PROVISIONS

	
            Section 10.01
 	
            Amendment.
 

This Agreement may be amended from time to time by the Depositor, the Master Servicer, Countrywide and the Trustee, without the consent of any of the Certificateholders to cure any ambiguity, to correct or supplement any provisions herein, to make such other provisions with respect to matters or questions arising under this Agreement, as shall not be inconsistent with any other provisions herein or to give effect to the expectations of the investors if such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any Certificateholder; 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, it being understood and agreed that any such letter in and of itself will not represent a determination as to the materiality of any such amendment and will represent a determination only as to the credit issues affecting any such rating. Notwithstanding the foregoing, no amendment that significantly changes the permitted activities of the trust created by this Agreement may be made without the consent of Certificateholders representing not less than 51% of the Voting Rights of each Class of Certificates affected by such amendment.

The Trustee, the Depositor, the Master Servicer and Countrywide may also at any time and from time to time amend this Agreement, without the consent of the Certificateholders, to modify, eliminate or add to any of its provisions to such extent as shall be necessary or appropriate to maintain the qualification of the Trust Fund as a REMIC under the Code or to avoid or minimize the risk of the imposition of any tax on the Trust Fund pursuant to the Code that would be a claim against the Trust Fund at any time prior to the final redemption of the Certificates, provided that the Trustee have been provided an Opinion of Counsel, which opinion shall be an expense of the party requesting such opinion but in any case shall not be an expense of the Trustee, to the effect that such action is necessary or appropriate to maintain such qualification or to avoid or minimize the risk of the imposition
of such a tax.

This Agreement may also be amended from time to time by the Depositor, the Master Servicer, Countrywide and the Trustee and the Holders of each Class of Certificates adversely affected thereby evidencing not less than a majority Percentage Interest of the Voting Rights of such Class 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; provided that no such amendment pursuant to this paragraph shall (i) reduce in any manner the amount of, or delay the timing of, payments 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 66% or more of the Voting Rights of such Class, or (iii) reduce the aforesaid percentages of 

 

 

Certificates the Holders of which are required to consent to any such amendment without the consent of the Holders of all such Certificates then outstanding.

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, which opinion shall be an expense of the party requesting such amendment but in any case shall not be an expense of the Trustee, to the effect that such amendment will not cause the imposition of any tax on the Trust Fund or the Certificateholders or cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are outstanding.

Promptly after the execution of any amendment to this Agreement requiring the consent of Certificateholders, the Trustee shall furnish written notification of the substance of such amendment to each Certificateholder and each Rating Agency.

It shall not be necessary for the consent of Certificateholders under this Section 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.

Nothing in this Agreement shall require the Trustee to enter into an amendment without receiving an Opinion of Counsel, satisfactory to the Trustee that (i) such amendment is permitted and is not prohibited by this Agreement and that all requirements for amending this Agreement have been complied with; and (ii) either (A) the amendment does not adversely affect in any material respect the interests of any Certificateholder or (B) the conclusion set forth in the immediately preceding clause (A) is not required to be reached pursuant to this Section 10.01.

	
            Section 10.02
 	
            Recordation of Agreement; Counterparts.
 

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 Master Servicer at its expense.

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 10.03
 	
            Governing Law.
 

THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

 

 

	
            Section 10.04
 	
            Intention of Parties.
 

It is the express intent of the parties hereto that the conveyance of the Mortgage Notes, Mortgages, assignments of Mortgages, title insurance policies and any modifications, extensions and/or assumption agreements and private mortgage insurance policies relating to the Mortgage Loans by the Depositor to the Trustee be, and be construed as, an absolute sale thereof to the Trustee.  It is, further, not the intention of the parties that such conveyance be deemed a pledge thereof by the Depositor to the Trustee.  However, in the event that, notwithstanding the intent of the parties, such assets are held to be the property of the Depositor, or if for any other reason this Agreement is held or deemed to create a security interest in such assets, then (i) this Agreement shall be deemed to be a security agreement (within the meaning of the Uniform Commercial Code of the State of New York) with
respect to all such assets and security interests and (ii) the conveyance provided for in this Agreement shall be deemed to be an assignment and a grant pursuant to the terms of this Agreement by the Depositor to the Trustee, for the benefit of the Certificateholders, of a security interest in all of the assets that constitute the Trust Fund, whether now owned or hereafter acquired.

The Depositor for the benefit of the Certificateholders shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure that, if this Agreement were deemed to create a security interest in the assets of the Trust Fund, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of the Agreement.  The Depositor shall arrange for filing any Uniform Commercial Code continuation statements in connection with any security interest granted or assigned to the Trustee for the benefit of the Certificateholders.

	
            Section 10.05
 	
            Notices.
 

(a)            The Trustee shall use its best efforts to promptly provide notice to each Rating Agency with respect to each of the following of which it has actual knowledge:

(i)          Any material change or amendment to this Agreement;

(ii)         The occurrence of any Event of Default that has not been cured;

(iii)        The resignation or termination of the Master Servicer or the Trustee and the appointment of any successor;

(iv)        The repurchase or substitution of Mortgage Loans pursuant to Sections 2.02, 2.03, 2.04 and 3.12; and

(v)          The final payment to Certificateholders.

In addition, the Trustee shall promptly furnish to each Rating Agency copies of the following:

	
            (i)
 	
            Each report to Certificateholders described in Section 4.05;
 	
             

	
            (ii)
 	
            Each annual statement as to compliance described in Section 3.17; and
 

 

 

 

(iii)        Each annual independent public accountants’ servicing report described in Section 3.18.

(b)            All directions, demands and notices hereunder shall be in writing and shall be deemed to have been duly given when sent by facsimile transmission, first class mail or delivered to (i) in the case of the Depositor, CWABS, Inc., 4500 Park Granada, Calabasas, California 91302, Attention:  Josh Adler, with a copy to the same address, Attention:  Legal Department; (ii) in the case of Countrywide, Countrywide Home Loans, Inc., 4500 Park Granada, Calabasas, California 91302, Attention:  Josh Adler, with a copy to the same address, Attention:  Legal Department, or such other address as may be hereafter furnished to the Depositor and the Trustee by the Master Servicer in writing; (iii) in the case of Park Sienna, Park Sienna LLC, 4500 Park Granada, Calabasas, California 91302, facsimile number (818) 225-4028, Attention:
Paul Liu, or such other address as may be hereafter furnished to the Depositor, the Master Servicer and the Trustee by the Sellers in writing; (iv) in the case of the Master Servicer, Countrywide Home Loans Servicing LP, 400 Countrywide Way, Simi Valley, California 93065, Attention: Mark Wong or such other address as may be hereafter furnished to the Depositor and the Trustee by the Master Servicer in writing; (v) in the case of the Trustee, The Bank of New York, 101 Barclay Street, New York, New York  10286 Attention:  Corporate Trust MBS Administration, CWABS, Series 2005-BC2, or such other address as the Trustee may hereafter furnish to the Depositor or the Master Servicer; and (vi) in the case of the Rating Agencies, (y) Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., Attention:  Mortgage Surveillance Group, 25 Broadway, 12th Floor, New York, New York  10004, and (z) Moody’s Investors Service, Inc., Attention:  ABS Monitoring
Department, 99 Church Street, Sixth Floor, New York, New York 10007.  Notices to Certificateholders shall be deemed given when mailed, first class postage prepaid, to their respective addresses appearing in the Certificate Register.

	
            Section 10.06
 	
            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 10.07
 	
            Assignment.
 

Notwithstanding anything to the contrary contained herein, except as provided pursuant to Section 6.02, this Agreement may not be assigned by the Master Servicer without the prior written consent of the Trustee and the Depositor.

	
            Section 10.08
 	
            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 representative or heirs to claim an accounting or to take any action or commence any proceeding in any court for a petition 

 

 

or winding up of the Trust Fund, or 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 provided 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 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 party 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 or by availing itself of any provisions 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 an Event of Default and of the continuance thereof, as hereinbefore provided, the Holders of Certificates evidencing not less than 25% of the Voting Rights evidenced by the Certificates shall also have made written request to 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 60 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 being understood and intended, and being 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 whatever by virtue or by availing itself or themselves of any provisions of this Agreement to affect, disturb or prejudice the rights of the Holders of any other of the 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 common benefit of all Certificateholders.  For the protection and enforcement of the provisions of this Section 10.08, each and every Certificateholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

	
            Section 10.09
 	
            Inspection and Audit Rights.
 

The Master Servicer agrees that, on reasonable prior notice, it will permit any representative of the Depositor, any Seller or the Trustee during the Master Servicer’s normal business hours, to examine all the books of account, records, reports and other papers of the Master Servicer relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books to be audited by independent certified public accountants selected by the Depositor, any Seller or the Trustee and to discuss its affairs, finances and accounts relating to the Mortgage Loans with its officers, employees and independent public accountants (and by this provision the Master Servicer hereby authorizes such accountants to discuss with such representative such affairs, finances and accounts), all at such reasonable times and as often as may be reasonably requested.  Any out-of-pocket expense incident
to the exercise by the Depositor, any Seller or the Trustee of any right under this Section 10.09 shall be borne by the party requesting such inspection; all other such expenses shall be borne by the Master Servicer.

	
            Section 10.10
 	
            Certificates Nonassessable and Fully Paid.
 

 

 

 

It is the intention of the Depositor that Certificateholders shall not be personally liable for obligations of the Trust Fund, that the interests in the Trust Fund represented by the Certificates shall be nonassessable for any reason whatsoever, and that the Certificates, upon due authentication thereof by the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

*            *            *

 

 

IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Sellers and the Trustee have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

CWABS, INC.,

as Depositor

 

By: __________________________

	
            Name:
 	
            Ruben Avilez
 	
             

	
            Title:
 	
            Vice President
 

COUNTRYWIDE HOME LOANS, INC.,

as Seller

 

By: __________________________

	
            Name:
 	
            Ruben Avilez
 	
             

	
            Title:
 	
            Vice President
 

PARK SIENNA LLC,

as Seller

 

By: __________________________

	
            Name:
 	
            Ruben Avilez
 

Title:      Vice President

 

 

COUNTRYWIDE HOME LOANS

SERVICING LP,

as Master Servicer

 

 

	
            By:
 	
            COUNTRYWIDE GP, INC.
 

 

 

By: __________________________

	
            Name:
 	
            Ruben Avilez
 	
             

	
            Title:
 	
            Senior Vice President
 

THE BANK OF NEW YORK,

not in its individual capacity,

but solely as Trustee

 

By: __________________________

	
            Name:
 
	
            Title:
 	
             

 

 

THE BANK OF NEW YORK

(solely with respect to its obligations under Section 4.01(b))

By:____________________________

	
            Name:
 

Title:

 

 

 

	
            STATE OF CALIFORNIA
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF LOS ANGELES
 	
            )
 	
             

				

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Ruben Avilez, personally known to me on the basis of satisfactory evidence to be a Vice President of Countrywide Home Loans, Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

	
             
	
            STATE OF CALIFORNIA
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF LOS ANGELES
 	
            )
 	
             

					

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Ruben Avilez, personally known to me on the basis of satisfactory evidence to be a Assistant Vice President of Park Sienna LLC, one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

	
            STATE OF CALIFORNIA
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF LOS ANGELES
 	
            )
 	
             

				

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Ruben Avilez, personally known to me on the basis of satisfactory evidence to be a Vice President of Countrywide GP, Inc., the general partner of Countrywide Home Loans Servicing LP, one of the organizations that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

	
            STATE OF CALIFORNIA
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF LOS ANGELES
 	
            )
 	
             

				

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared Ruben Avilez, personally known to me on the basis of satisfactory evidence to be a Vice President of CWABS, Inc., one of the corporations that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

	
            STATE OF NEW YORK
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF NEW YORK
 	
            )
 	
             

				

On this 29th day of April, 2005, before me, a notary public in and for said State, appeared _______________, personally known to me on the basis of satisfactory evidence to be a ____________ of The Bank of New York, a New York banking corporation that executed the within instrument, and also known to me to be the person who executed it on behalf of such 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]

 

 

 

 

Exhibit A-1

Exhibit A-1 is a photocopy

of the Class 1-A-1 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-2

Exhibit A-2 is a photocopy

of the Class 1-A-2 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-3

Exhibit A-3 is a photocopy

of the Class 2-A-1 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-4

Exhibit A-4 is a photocopy

of the Class 2-A-2 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-5

Exhibit A-5 is a photocopy

of the Class 2-A-3 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-6

Exhibit A-6 is a photocopy

of the Class M-1 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-7

Exhibit A-7 is a photocopy

of the Class M-2 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

Exhibit A-8

Exhibit A-8 is a photocopy

of the Class M-3 Certificate as 

delivered.

 

[See appropriate documents delivered at closing]

 

 

 

Exhibit A-9

Exhibit A-9 is a photocopy

of the Class M-4 Certificates

as delivered.

 

[See appropriate documents delivered at closing.]

 

 

Exhibit A-10

Exhibit A-10 is a photocopy

of the Class M-5 Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

Exhibit A-11

Exhibit A-11 is a photocopy

of the Class M-6 Certificates

as delivered.

 

[See appropriate documents delivered at closing.]

 

 

Exhibit A-12

Exhibit A-12 is a photocopy

of the Class M-7 Certificates

as delivered.

 

[See appropriate documents delivered at closing.]

 

 

Exhibit A-13

Exhibit A-13 is a photocopy

of the Class M-8 Certificates

as delivered.

 

[See appropriate documents delivered at closing.]

 

 

Exhibit A-14

Exhibit A-14 is a photocopy

of the Class B Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

Exhibit B

Exhibit B is a photocopy

of the Class C Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

 

Exhibit C

Exhibit C is a photocopy

of the Class P Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

 

Exhibit D

Exhibit D is a photocopy

of the Class A-R Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

 

Exhibit E

Exhibit E is a photocopy

of the Tax Matters Person Certificate

as delivered.

[See appropriate documents delivered at closing]

 

 

 

Exhibit F

Mortgage Loan Schedules

[Delivered to Trustee at closing and on file with the Trustee]

 

 

Exhibit F-1

List of Mortgage Loans

[Delivered to Trustee at closing and on file with the Trustee]

 

 

Exhibit F-2

Mortgage Loans for which All or a Portion of a Related Mortgage File

is not Delivered to the Trustee on or prior to the Closing Date

[Provided Upon Request]

 

 

EXHIBIT G

FORMS OF CERTIFICATION OF TRUSTEE

 

 

EXHIBIT G-1

FORM OF INITIAL CERTIFICATION OF TRUSTEE

[Date]

[Depositor]

[Seller]

[Servicer]

	
            Re:
 	
            Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee, relating to the Asset-Backed Certificates, Series 2005-BC2
 

Gentlemen:

In accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement, the undersigned, as Trustee (the “Trustee”), hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on the attachment hereto) it has reviewed the Mortgage File and the Mortgage Loan Schedule and has determined that: (i) all documents required to be included in the Mortgage File are in its possession; (ii) such documents have been reviewed by it and appear regular on their face and relate to such Mortgage Loan; and (iii) based on examination by it, and only as to such documents, the information set forth in items (i), (ii), (iii) and (iv) of the definition or description of “Mortgage Loan Schedule” is correct.

The Trustee has made no independent examination of any documents contained in each Mortgage File b

eyond the review specifically required in the above-referenced Pooling and Servicing Agreement. The Trustee makes no representation that any documents specified in clause (vi) of Section 2.01 should be included in any Mortgage File. The Trustee makes no representations as to and shall not be responsible to verify: (i) the validity, legality, sufficiency, enforceability, due authorization, recordability or genuineness of any of the documents contained in each Mortgage File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the collectability, insurability, effectiveness or suitability of any such Mortgage Loan, or (iii) the existence of any assumption, modification, written assurance or substitution agreement with respect to any Mortgage File if no such documents
  appear in the Mortgage File delivered to the Trustee.

 

 

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Pooling and Servicing Agreement.

THE BANK OF NEW YORK,

as Trustee

 

By:__________________________

Name:

Title: 

 

 

 

EXHIBIT G-2

FORM OF INTERIM CERTIFICATION OF TRUSTEE

[Date]

[Depositor]

[Seller]

[Servicer]

	
            Re:
 	
            Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee, relating to the Asset-Backed Certificates, Series 2005-BC2
 

Gentlemen:

In accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except as listed in the following paragraph, as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on the attached list of exceptions) the Trustee has received:

	
            (i)
 	
            the original Mortgage Note, endorsed by the related Seller or the originator of such Mortgage Loan, without recourse in the following form:  “Pay to the order of _______________ without recourse”, with all intervening endorsements that show a complete chain of endorsement from the originator to the related Seller, or, if the original Mortgage Note has been lost or destroyed and not replaced, an original lost note affidavit from the related Seller, stating that the original Mortgage Note was lost or destroyed, together with a copy of the related Mortgage Note; 
 
	
            (ii)
 	
            in the case of each Mortgage Loan that is not a MERS Mortgage Loan, the original recorded Mortgage, and in the case of each  Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage, noting thereon the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording indicated thereon, or a copy of the Mortgage certified by the public recording office in which such Mortgage has been recorded; 
 

 

 

 

 

	
            (iii)
 	
            in the case of each Mortgage Loan that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage to “Asset-Backed Certificates, Series 2005-BC2, CWABS, Inc., by The Bank of New York, a New York banking corporation, as trustee under the Pooling and Servicing Agreement, dated as of April 1, 2005, without recourse”, or, in the case of each Mortgage Loan with respect to property located in the State of California that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage in blank (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which such assignment relates); 
 
	
            (iv)
 	
            the original recorded assignment or assignments of the Mortgage together with all interim recorded assignments of such Mortgage [(noting the presence of a MIN in the case of each MERS Mortgage Loan)]; 
 
	
            (v)
 	
            the original or copies of each assumption, modification, written assurance or substitution agreement, if any, with evidence of recording thereon if recordation thereof is permissible under applicable law; and
 
	
            (vi)
 	
            the original or duplicate original lender’s title policy or a printout of the electronic equivalent and all riders thereto or, in the event such original title policy has not been received from the insurer, any one of an original title binder, an original preliminary title report or an original title commitment, or a copy thereof certified by the title company, with the original policy of title insurance to be delivered within one year of the Closing Date. 
 

In the event that in connection with any Mortgage Loan that is not a MERS Mortgage Loan the related Seller cannot deliver the original recorded Mortgage or all interim recorded assignments of the Mortgage satisfying the requirements of clause (ii), (iii) or (iv), as applicable, the Trustee has received, in lieu thereof, a true and complete copy of such Mortgage and/or such assignment or assignments of the Mortgage, as applicable, each certified by the related Seller, the applicable title company, escrow agent or attorney, or the originator of such Mortgage Loan, as the case may be, to be a true and complete copy of the original Mortgage or assignment of Mortgage submitted for recording.

Based on its review and examination and only as to the foregoing documents, (i) such documents appear regular on their face and related to such Mortgage Loan, and (ii) the information set forth in it

ems (i), (iv), (v), (vi), (viii), (xi) and (xiv) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the Pooling and Servicing Agreement accurately reflects information set forth in the Mortgage File. 

The Trustee has made no independent examination of any documents contained in each Mortgage File beyond the review specifically required in the above-referenced Pooling and Servicing Agreement.  The Trustee makes no representations as to:  (i) the validity, legality, sufficiency, enforceability or genuineness of any of the documents contained in each Mortgage 

 

 

File of any of the Mortgage Loan identified on the Mortgage Loan Schedule or (ii) the collectibility, insurability, effectiveness or suitability of any such Mortgage Loan.

 

 

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Pooling and Servicing Agreement.

THE BANK OF NEW YORK,

as Trustee

 

By:__________________________

Name:

Title: 

 

 

EXHIBIT G-3

 

FORM OF DELAY DELIVERY CERTIFICATION

[Date]

[Depositor]

[Seller]

[Servicer]

	
            Re:
 	
      Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee, relating to the Asset-Backed Certificates, Series 2005-BC2
 

Gentlemen:

Reference is made to the Initial Certification of Trustee relating to the above-referenced series, with the schedule of exceptions attached thereto, delivered by the undersigned, as Trustee, on the Closing Date in accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement.  The undersigned hereby certifies that as to each Delay Delivery Mortgage Loan listed on the Schedule A attached hereto (other than any Mortgage Loan paid in full or listed on Schedule B attached hereto) the Trustee has received:

	
            (i)
 	
            the original Mortgage Note, endorsed by the related Seller or the originator of such Mortgage Loan, without recourse in the following form:  “Pay to the order of _______________ without recourse”, with all intervening endorsements that show a complete chain of endorsement from the originator to the related Seller, or, if the original Mortgage Note has been lost or destroyed and not replaced, an original lost note affidavit from the related Seller, stating that the original Mortgage Note was lost or destroyed, together with a copy of the related Mortgage Note; and
 
	
            (ii)
 	
      in the case of each Mortgage Loan that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage to “Asset-Backed Certificates, Series 2005-BC2, CWABS, Inc., by The Bank of New York, a New York banking corporation, as trustee under the Pooling and Servicing Agreement, dated as of April 1, 2005, without recourse”, or, in the case of each Mortgage Loan with respect to property located in the State of California that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage in blank (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which such assignment relates).
 

 

 

Based on its review and examination and only as to the foregoing documents, such documents appear regular on their face and related to such Mortgage Loan.

The Trustee has made no independent examination of any documents contained in each Mortgage File beyond the review specifically required in the above-referenced Pooling and Servicing Agreement.  The Trustee makes no representations as to:  (i) the validity, legality, sufficiency, enforceability or genuineness of any of the documents contained in each Mortgage File of any of the Mortgage Loan identified on the Mortgage Loan Schedule or (ii) the collectibility, insurability, effectiveness or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Pooling and Servicing Agreement.

 

THE BANK OF NEW YORK,

as Trustee

 

By:__________________________

Name:

Title: 

 

 

 

EXHIBIT G-4

[RESERVED] 

 

 

EXHIBIT H

FORM OF FINAL CERTIFICATION OF TRUSTEE

[Date]

[Depositor]

[Servicer]

[Seller]

	
            Re:
 	
            Pooling and Servicing Agreement, dated as of April 1, 2005 (the “Pooling and Servicing Agreement”), among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee, relating to the Asset-Backed Certificates, Series 2005-BC2
 

Gentlemen:

In accordance with Section 2.02 of the above-captioned Pooling and Servicing Agreement, the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed on the attached Document Exception Report) the Trustee has received:

	
            (i)
 	
            the original Mortgage Note, endorsed by the related Seller or the originator of such Mortgage Loan, without recourse in the following form:  “Pay to the order of _________________ without recourse”, with all intervening endorsements that show a complete chain of endorsement from the originator to the related Seller, or, if the original Mortgage Note has been lost or destroyed and not replaced, an original lost note affidavit from the related Seller, stating that the original Mortgage Note was lost or destroyed, together with a copy of the related Mortgage Note;
 
	
            (ii)
 	
            in the case of each Mortgage Loan that is not a MERS Mortgage Loan, the original recorded Mortgage, and in the case of each Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage, noting thereon the presence of the MIN of the Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording indicated thereon, or a copy of the Mortgage certified by the public recording office in which such Mortgage has been recorded;
 

 

 

 

 

	
            (iii)
 	
            in the case of each Mortgage Loan that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage to “Asset-Backed Certificates, Series 2005-BC2, CWABS, Inc., by The Bank of New York, a New York banking corporation, as trustee under the Pooling and Servicing Agreement, dated as of April 1, 2005, without recourse”, or, in the case of each Mortgage Loan with respect to property located in the State of California that is not a MERS Mortgage Loan, a duly executed assignment of the Mortgage in blank (each such assignment, when duly and validly completed, to be in recordable form and sufficient to effect the assignment of and transfer to the assignee thereof, under the Mortgage to which such assignment relates);
 
	
            (iv)
 	
            the original recorded assignment or assignments of the Mortgage together with all interim recorded assignments of such Mortgage [(noting the presence of a MIN in the case of each MERS Mortgage Loan)];
 
	
            (v)
 	
            the original or copies of each assumption, modification, written assurance or substitution agreement, if any, with evidence of recording thereon if recordation thereof is permissible under applicable law; and
 
	
            (vi)
 	
            the original or duplicate original lender’s title policy or a printout of the electronic equivalent and all riders thereto or any one of an original title binder, an original preliminary title report or an original title commitment, or a copy thereof certified by the title company.
 

If the public recording office in which a Mortgage or assignment thereof is recorded has retained the original of such Mortgage or assignment, the Trustee has received, in lieu thereof, a copy of the original Mortgage or assignment so retained, with evidence of recording thereon, certified to be true and complete by such recording office.

Based on its review and examination and only as to the foregoing documents, (i) such documents appear regular on their face and related to such Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v), (vi), (viii), (xiii) and (xiv) of the definition of the “Mortgage Loan Schedule” in Section 1.01 of the Pooling and Servicing Agreement accurately reflects information set forth in the Mortgage File.

The Trustee has made no independent examination of any documents contained in each Mortgage File beyo
    nd the review specifically required in the above-referenced Pooling and Servicing Agreement.  The Trustee makes no representations as to:  (i) the validity, legality, sufficiency, enforceability or genuineness of any of the documents contained in each Mortgage File of any of the Mortgage Loans identified on the Mortgage Loan Schedule or (ii) the collectibility, insurability, effectiveness or suitability of any such Mortgage Loan.

 

 

Capitalized words and phrases used herein shall have the respective meanings assigned to them in the above-captioned Pooling and Servicing Agreement.

THE BANK OF NEW YORK,

as Trustee

 

By:__________________________

Name:

Title: 

 

 

EXHIBIT I

TRANSFER AFFIDAVIT

	
            STATE OF
 	
            )
 	
             

	
             
	
            )
 	
            ss.:
 
	
            COUNTY OF
 	
            )
 	
             

	

The undersigned, being first duly sworn, deposes and says as follows:

1.          The undersigned is an officer of __________, the proposed transferee of an Ownership Interest in a Class A-R Certificate (the "Certificate") issued pursuant to the Pooling and Servicing Agreement, dated as of April 1, 2005 (the "Agreement"), by and among CWABS, Inc., as Depositor (the "Depositor"), Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.  Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall have the meanings ascribed to such terms in the Agreement.  The transferee has authorized the undersigned to make this affidavit on behalf of the transferee.

    2.          Either (a) the transferee is not an employee benefit plan that is subject to Section 406 of ERISA or to section 4975 of the Internal Revenue Code of 1986, nor is it acting on behalf of or with plan assets of any such plan, or (b) the transferee has provided the opinion of counsel specified in Section 5.02(b) of the Agreement.  The transferee is, as of the date hereof, and will be, as of the date of the Transfer, a Permitted Transferee.  The transferee is acquiring its Ownership Interest in the Certificate for its own account.    

3.          The transferee has been advised of, and understands that (i) a tax will be imposed on Transfers of the Certificate to Persons that are not Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if such Transfer is through an agent (which includes a broker, nominee or middleman) for a Person that is not a Permitted Transferee, on the agent; and (iii)
    the Person otherwise liable for the tax shall be relieved of liability for the tax if the subsequent transferee furnished to such Person an affidavit that such subsequent transferee is a Permitted Transferee and, at the time of Transfer, such Person does not have actual knowledge that the affidavit is false.

    4.          The transferee has been advised of, and understands that a tax will be imposed on a "pass-through entity" holding the Certificate if at any time during the taxable year of the pass-through entity a Person that is not a Permitted Transferee is the record holder of an interest in such entity.  The transferee understands that such tax will not be imposed for any period with respect to which the record holder furnishes to the pass-through entity an affidavit that such record holder is a Permitted Transferee and the pass-through entity does not have actual knowledge that such affidavit is false.  (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 and, except as may be provided in Treasury Regulations, persons holding interests in pass-through entities as a nominee for another Person.)

5.          The transferee has reviewed the provisions of Section 5.02(c) of the Agreement (attached hereto as Exhibit 2 and incorporated herein by reference) and understands the legal consequences of the acquisition of an Ownership Interest in the Certificate including, without limitation, the restrictions on subsequent Transfers and the provisions regarding voiding the Transfer and mandatory sales.  The transferee expressly agrees to be bound by and to abide by the provisions of Section 5.02(c) of the Agreement and the restrictions noted on the face of the Certificate.  The transferee understands and agrees that any breach of any of the representations included herein shall render the Transfer to the transferee contemplated hereby null and void.

6.          The transferee agrees to require a
  Transfer Affidavit from any Person to whom the transferee attempts to Transfer its Ownership Interest in the Certificate, and in connection with any Transfer by a Person for whom the transferee is acting as nominee, trustee or agent, and the transferee will not Transfer its Ownership Interest or cause any Ownership Interest to be Transferred to any Person that the transferee knows is not a Permitted Transferee.  In connection with any such Transfer by the transferee, the transferee agrees to deliver to the Trustee a certificate substantially in the form set forth as Exhibit I to the Agreement (a “Transferor Certificate”) to the effect that such transferee has no actual knowledge that the Person to which the Transfer is to be made is not a Permitted Transferee.

7.          The transferee does not have the intention to impede the assessment or collection of any tax legally required to be paid with respect to the Class A-R Certificates.

8.          The transferee’s taxpayer identification number is __________________.

9.          The transferee is a U.S. Person as defined in Code section 7701(a)(30).

10.        The transferee is aware that the Class A-R Certificates may be “noneconomic residual interests” within the meaning of proposed Treasury regulations promulgated pursuant to 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 was to impede the assessment or collection of tax.  In addition, as the holder of a noneconomic residual interest, the transferee may incur tax liabilities in excess of any cash flows generated by the interest and the transferee hereby represents that it intends to pay taxes associated with holding the residual interest as they become due.

11.        The transferee has provided financial statements or other financial inform
  ation requested by the Transferor in connection with the transfer of the Class A-R Certificates to permit the Transferor to assess the financial capability of the transferee to pay such taxes.

*                *                *

 

 

IN WITNESS WHEREOF, the transferee has caused this instrument to be executed on its behalf, pursuant to authority of its Board of Directors, by its duly authorized officer and its corporate seal to be hereunto affixed, duly attested, this __th day of _______, 20__.

 

[NAME OF TRANSFEREE]

 

By:__________________________

Name:

Title: 

 

[Corporate Seal]

ATTEST:

_________________________

[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 the _____________________ of the transferee, and acknowledged that he executed the same as his free act and deed and the free act and deed of the transferee.

Subscribed and sworn before me this __th day of _______, 20__.

__________________________________

	
            NOTARY PUBLIC
 

 

My Commission expires the ___ day of 

	
            , 20__.
 

 

 

EXHIBIT 1

Certain Definitions

“Ownership Interest”:  As to any Certificate, any ownership 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.

 “Permitted Transferee”:  Any person other than (i) the United States, any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, International Organization or any agency or instrumentality of either of the foregoing, (iii) an organization (except certain farmers’ cooperatives described in section 521 of the Code) that is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by section 511 of the Code on unrelated business taxable income) on any excess inclusions (as defined in section 860E(c)(1) of the Code) with respect to any Class A-R Certificate, (iv) rural electric and telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an “electing large partnership” as defined in Section 775 of the Code, (vi) a Person that
is not a citizen or resident of the United States, a corporation, partnership, or other entity (treated as a corporation or a partnership for federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia, or an estate whose income from sources without the United States is includible 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, 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 authority to control all substantial decisions of the trustor unless such Person has furnished the transferor and the Trustee with a duly completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so designated by the Trustee based upon an Opinion of Counsel that the Transfer of an Ownership
Interest in a Class A-R Certificate to such Person may cause the Trust Fund to fail to qualify as a REMIC at any time that any Certificates are Outstanding.  The terms “United States,” “State” and “International Organization” shall have the meanings set forth in section 7701 of the Code or successor provisions.  A corporation will not be treated as an instrumentality of the United States or of any State or political subdivision thereof for these purposes if all of its activities are subject to tax and, with the exception of the Federal Home Loan Mortgage Corporation, a majority of its board of directors is not selected by such government unit.  

“Person”:  Any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government, or any agency or political subdivision thereof.

“Transfer”:  Any direct or indirect transfer or sale of any Ownership Interest in a Certificate.

 

 

 

Section 5.02(c) of the Agreement

(c)        Each Person who has or who acquires any Ownership Interest in a Class A-R Certificate shall be deemed by the acceptance or acquisition of such Ownership Interest to have agreed to be bound by the following provisions, and the rights of each Person acquiring any Ownership Interest in a Class A-R Certificate are expressly subject to the following provisions:

(i)         Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate shall be a Permitted Transferee and shall promptly notify the Trustee of any change or impending change in its status as a Permitted Transferee.

(ii)         No Ownership Interest in a Class A-R Certificate may be registered on the Closing Date or thereafter transferred, and the Trustee shall not register the Transfer of any Class A-R Certificate unless, in addition to the representation letters required to be delivered to the Trustee under subparagraph (b) above, the Trustee shall have been furnished with an affidavit (a “Transfer Affidavit”) of the initial owner or the proposed transferee in the form attached hereto as Exhibit I.

(iii)        Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from any other Person to whom such Person attempts to Transfer its Ownership Interest in a Class A-R Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such Person is acting as nominee, trustee or agent in connection with any Transfer of a Class A-R Certificate and (C) not to Transfer its Ownership Interest in a Class A-R Certificate or to cause the Transfer of an Ownership Interest in a Class A-R Certificate to any other Person if it has actual knowledge that such Person is not a Permitted Transferee.

(iv)        Any attempted or purported Transfer of any Ownership Interest in a Class A-R Certificate in violation of the provisions of this Sectiont
      ransferee shall become a Holder of a Class A-R Certificate in violation of the provisions of this Section 5.02(c), then the last preceding Permitted Transferee shall be restored to all rights as Holder thereof retroactive to the date of registration of Transfer of such Class A-R Certificate.  The Trustee shall be under no liability to any Person for any registration of Transfer of a Class A-R Certificate that is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or for making any payments due on such Certificate to the Holder thereof or
      taking any other action with respect to such Holder under the provisions of this Agreement so long as the Transfer was registered after receipt of the related Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter or the Investment Letter.  The Trustee shall be entitled but not obligated to recover from any Holder of a Class A-R Certificate that was in fact not a Permitted Transferee at 

 

 

the time it became a Holder or, at such subsequent time as it became other than a Permitted Transferee, all payments made on such Class A-R Certificate at and after either such time.  Any such payments so recovered by the Trustee shall be paid and delivered by the Trustee to the last preceding Permitted Transferee of such Certificate.

(v)        The Depositor shall use its best efforts to make available, upon receipt of written request from the Trustee, all information necessary to compute any tax imposed under Section 860E(e) of the Code as a result of a Transfer of an Ownership Interest in a Class A-R Certificate to any Holder who is not a Permitted Transferee.

The restrictions on Transfers of a Class A-R Certificate set forth in this Section 5.02(c) shall cease to apply (and the applicable portions of the legend on a Class A-R Certificate may be deleted) with respect to Transfers occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall not be an expense of the Trust Fund, the Trustee, the Seller or the Master Servicer, to the effect that the elimination of such restrictions will not cause any REMIC hereunder to fail to qualify as a REMIC at any time that the Certificates are outstanding or result in the imposition of any tax on the Trust Fund, a Certificateholder or another Person.  Each Person holding or acquiring any Ownership Interest in a Class A-R Certificate hereby consents to any amendment of this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to ensure
that the record ownership of, or any beneficial interest in, a Class A-R Certificate is not transferred, directly or indirectly, to a Person that is not a Permitted Transferee and (b) to provide for a means to compel the Transfer of a Class A-R Certificate that is held by a Person that is not a Permitted Transferee to a Holder that is a Permitted Transferee.

 

 

EXHIBIT J-1

FORM OF TRANSFEROR CERTIFICATE FOR

CLASS A-R CERTIFICATES

Date:

CWABS, Inc.,

as Depositor

4500 Park Granada

Calabasas, California 91302

The Bank of New York,

as Trustee

101 Barclay Street

New York, New York 10286

	
            Re:
 	
            CWABS, Inc. Asset-Backed
 

Certificates, Series 2005-BC2 

Ladies and Gentlemen:

In connection with our disposition of the Class A-R Certificates, we certify that we have no knowledge the Transferee is not a Permitted Transferee.  All capitalized terms used herein but not defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.

Very truly yours,

__________________________________

Name of Transferor

By: _______________________________

Name:

Title:

 

 

 

EXHIBIT J-2

FORM OF TRANSFEROR CERTIFICATE FOR

PRIVATE CERTIFICATES

Date:

CWABS, Inc.,

as Depositor

4500 Park Granada

Calabasas, California 91302

The Bank of New York,

as Trustee

101 Barclay Street

New York, New York 10286

	
            Re:
 	
            CWABS, Inc. Asset-Backed Certificates,
 
	
             
	
            Series 2005-BC2, Class [  ] 
 	

             

Ladies and Gentlemen:

In connection with our disposition of the above-captioned Certificates we certify that (a) we understand that the Certificates have not been registered under the Securities Act of 1933, as amended (the “Act”), and are being disposed by us in a transaction that is exempt from the registration requirements of the Act, (b) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, in a manner that would be deemed, or taken any other action which would result in, a violation of Section 5 of the Act.  All capitalized terms used herein but not defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as
Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.

Very truly yours,

__________________________________

Name of Transferor

By: _______________________________

Name:

Title:

 

 

 

EXHIBIT K

FORM OF INVESTMENT LETTER (NON-RULE 144A)

Date:

CWABS, Inc.,

as Depositor

4500 Park Granada

Calabasas, California 91302

The Bank of New York,

as Trustee

101 Barclay Street

New York, New York 10286

	
            Re:
 	
            CWABS, Inc. Asset-Backed Certificates,
 
	
             
	
            Series 2005-BC2, Class [  ] 
 	

             

Ladies and Gentlemen:

In connection with our acquisition of the above-captioned Certificates we certify that (a) we understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we are an “accredited investor,” as defined in Regulation D under the Act, and have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d)
either (i) we are not an employee benefit plan that is subject to the Employee Retirement Income Security Act of 1974, as amended, or a plan or arrangement that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any such plan or arrangement, nor are we using the assets of any such plan or arrangement to effect such acquisition or (ii) the transferee has provided the opinion of counsel specified in Section 5.02(b) of the Pooling and Servicing Agreement, (e) we are acquiring the Certificates for investment for our own account and not with a view to any distribution of such Certificates (but without prejudice to our right at all times to sell or otherwise dispose of the Certificates in accordance with clause (g) below), (f) we have not offered or sold any Certificates to, or solicited offers to buy any Certificates from, any person, or otherwise approached or negotiated with any person with respect thereto, or taken any other
action which would result in a violation of Section 5 of the Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates unless (1) such sale, transfer or other disposition is made pursuant to an effective registration 

 

 

statement under the Act or is exempt from such registration requirements, and if requested, we will at our expense provide an opinion of counsel satisfactory to the addressees of this Certificate that such sale, transfer or other disposition may be made pursuant to an exemption from the Act, (2) the purchaser or transferee of such Certificate has executed and delivered to you a certificate to substantially the same effect as this certificate, and (3) the purchaser or transferee has otherwise complied with any conditions for transfer set forth in the Pooling and Servicing Agreement.

All capitalized terms used herein but not defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.

Very truly yours,

__________________________________

Name of Transferee

By: _______________________________          

                   Authorized Officer

 

 

EXHIBIT L

FORM OF RULE 144A LETTER

Date:

CWABS, Inc.,

as Depositor

4500 Park Granada

Calabasas, California 91302

The Bank of New York,

as Trustee

101 Barclay Street

New York, New York 10286

	
            Re:
 	
            CWABS, Inc. Asset-Backed Certificates,
 
	
             
	
            Series 2005-BC2, Class [  ] 
 	

             

Ladies and Gentlemen:

In connection with our acquisition of the above-captioned Certificates we certify that (a) we understand that the Certificates are not being registered under the Securities Act of 1933, as amended (the “Act”), or any state securities laws and are being transferred to us in a transaction that is exempt from the registration requirements of the Act and any such laws, (b) we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of investments in the Certificates, (c) we have had the opportunity to ask questions of and receive answers from the Depositor concerning the purchase of the Certificates and all matters relating thereto or any additional information deemed necessary to our decision to purchase the Certificates, (d) either (i) we are not an employee benefit plan that is subject to the Employee Retirement
Income Security Act of 1974, as amended, or a plan or arrangement that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any such plan or arrangement, nor are we using the assets of any such plan or arrangement to effect such acquisition or (ii) the transferee has provided the opinion of counsel specified in Section 5.02(b) of the Pooling and Servicing Agreement, (e) of Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”)) and the purchase and holding of such Certificates are covered under Sections I and III of PTCE 95-60, (e) we have not, nor has anyone acting on our behalf offered, transferred, pledged, sold or otherwise disposed of the Certificates, any interest in the Certificates or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Certificates, any interest in the Certificates or any other similar security from, or otherwise approached or
negotiated with respect to the Certificates, any interest in the Certificates or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Certificates under the 

 

 

Securities Act or that would render the disposition of the Certificates a violation of Section 5 of the Securities Act or require registration pursuant thereto, nor will act, nor has authorized or will authorize any person to act, in such manner with respect to the Certificates, (f) we are a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act and have completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.  We are aware that the sale to us is being made in reliance on Rule 144A.  We are acquiring the Certificates for our own account or for resale pursuant to Rule 144A and further, understand that such Certificates 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 Securities Act.

All capitalized terms used herein but not defined herein shall have the meanings assigned to them in the Pooling and Servicing Agreement, dated as of April 1, 2005, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.

 

 

ANNEX 1 TO EXHIBIT L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees Other Than Registered Investment Companies]

The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

1.          As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the Buyer.

2.          In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary basis either at least $100,000 in securities or, if Buyer is a dealer, Buyer must own and/or invest on a discretionary basis at least $10,000,000 in securities (except for the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A and (ii) the Buyer satisfies the criteria in the category marked below.

	
            ___
 	
            Corporation, etc.  The Buyer is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
 
	
            ___
 	
            Bank.  The Buyer (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 Buyer (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.
 

 

 

 

 

	
            ___
 	
            Broker-dealer.  The Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.
 
	
            ___
 	
            Insurance Company.  The Buyer 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 Buyer 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 Buyer is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.
 
	
            ___
 	
            Investment Advisor.  The Buyer is an investment advisor registered under the Investment Advisors Act of 1940.
 
	
            ___
 	
            Small Business Investment Company.  Buyer is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
 
	
            ___
 	
            Business Development Company.  Buyer is a business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.
 

3.          The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer, (ii) securities that are part of an unsold allotment to or subscription by the Buyer, if the Buyer 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 Buyer, the Buyer used the cost of such securities to the Buyer and did not include any of the securities refe
  rred to in the preceding paragraph, except (i) where the Buyer reports its securities holdings in its financial statements on the basis of their market value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at market.  Further, in determining such aggregate amount, the Buyer may have included securities owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared in accordance with
  generally accepted accounting principles and if the investments of such subsidiaries are managed under the Buyer’s direction.  

 

 

However, such securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of 1934, as amended.

5.          The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller to it 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 Buyer may be in reliance on Rule 144A.

6.          Until the date of purchase of the Rule 144A Securities, the Buyer 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 Buyer’s purchase of the Certificates will constitute a reaffirmation of this certification as of the date of such purchase.  In addition, if the Buyer is a bank or savings and loan is provided above, the Buyer agrees that it will furnish to such parties updated annual fi
  nancial statements promptly after they become available.

_______________________________________

Print Name of Buyer

By:____________________________________

Name:

Title:

Date:__________________________________

 

 

ANNEX 2 TO EXHIBIT L

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Transferees That are Registered Investment Companies]

The undersigned (the “Buyer”) hereby certifies as follows to the parties listed in the Rule 144A Transferee Certificate to which this certification relates with respect to the Certificates described therein:

1.    As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”) because Buyer is part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

2.          In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the Investment Company Act of 1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer’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 Buyer’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the cost of such securities was used, except (i) where the Buyer or the Buyer’s Family of Investment Companies reports its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those securities has been published.  If clause (ii) in the preceding sentence applies, the securities may be valued at market.

	
            ___
 	
            The Buyer owned $________in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).
 
	
            ___
 	
            The Buyer 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 Buyer’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 Buyer or are part of the Buyer’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 Buyer is familiar with Rule 144A and under-stands that the parties listed in the Rule 144A Transferee Certificate to which this certification relates are relying and will continue to rely on the statements made herein because one or more sales to the Buyer will be in reliance on Rule 144A.  In addition, the Buyer will only purchase for the Buyer’s own account.

6.          Until the date of purchase of the Certificates, the undersigned will notify the parties listed in the Rule 144A Transferee Certificate to which this certification relates of any changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of the Certificates will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

_____________________________________

Print Name of Buyer or Adviser

By:___________________________________

Name:

Title:

IF AN ADVISER:

_____________________________________

Print Name of Buyer

Date:_________________________________

 

 

EXHIBIT M

FORM OF REQUEST FOR RELEASE

(for Trustee)

	
            Loan Information
 	
             
 	
             
 
	
            Name of Mortgagor:
 	
             
 	
             
 
	
            Servicer Loan No.:
 	
             
 	
             
 
	
            Trustee
 	
             
 	
             
 
	
            Name:
 	
             
 	
             
 
	
            Address:
 	
             
 	
             
 
	
            Trustee 
 Mortgage File No.:
 	
             
 	
             
 

 

The undersigned Servicer hereby acknowledges that it has received from _______________________________________, as Trustee for the Holders of Asset-Backed Certificates, Series 2005-BC2, the documents referred to below (the “Documents”).  All capitalized terms not otherwise defined in this Request for Release shall have the meanings given them in the Pooling and Servicing Agreement, dated as of April 1, 2005 (the “Pooling and Servicing Agreement”), among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and the Trustee.

	
            (  )
 	
            Mortgage Note dated ___________, ____, in the original principal sum of $________, made by __________________, payable to, or endorsed to the order of, the Trustee.
 
	
            (  )
 	
            Mortgage recorded on _________________ as instrument no. ________________ in the County Recorder’s Office of the County of ________________, State of _______________ in book/reel/docket _______________ of official records at page/image _____________.
 
	
            (  )
 	
            Deed of Trust recorded on _________________ as instrument no. ________________ in the County Recorder’s Office of the County of ________________, State of _______________ in book/reel/docket _______________ of official records at page/image _____________.
 

 

 

 

 

	
            (  )
 	
            Assignment of Mortgage or Deed of Trust to the Trustee, recorded on _________________ as instrument no. __________ in the County Recorder’s Office of the County of __________, State of _______________ in book/reel/docket _______________ of official records at page/image _____________.
 
	
            (  )
 	
            Other documents, including any amendments, assignments or other assumptions of the Mortgage Note or Mortgage.
 

	
            (  )
 	
            ______________________________________________
 
	
            (  )
 	
            ______________________________________________
 
	
            (  )
 	
            ______________________________________________
 
	
            (  )
 	
            ______________________________________________
 

The undersigned Servicer hereby acknowledges and agrees as follows:

(1)        The Servicer shall hold and retain possession of the Documents in trust for the benefit of the Trust Fund, solely for the purposes provided in the Agreement.

(2)        The Servicer shall not cause or knowingly permit the Documents to become subject to, or encumbered by, any claim, liens, security interest, charges, writs of attachment or other impositions nor shall the Servicer assert or seek to assert any claims or rights of setoff to or against the Documents or any proceeds thereof.

(3)        The Servicer shall return each and every Document previously requested from the Mortgage File to the Trustee when the need therefor no longer exists, unless the Mortgage Loan relating to the Documents has been liquidated and the proce
    eds thereof have been remitted to the Certificate Account and except as expressly provided in the Agreement.

(4)        The Documents and any proceeds thereof, including any proceeds of proceeds, coming into the possession or control of the Servicer shall at all times be earmarked for the account of the Trust Fund, and the Servicer shall keep the Documents and any proceeds separate and distinct from all other property in the Servicer’s possession, custody or control.

[Servicer]

By  _______________________________

Its ________________________________

Date: _________________, ____

 

 

EXHIBIT N

FORM OF REQUEST FOR RELEASE

(for Mortgage Loans Paid in Full, Repurchased or Replaced)

OFFICER’S CERTIFICATE AND TRUST RECEIPT

ASSET-BACKED CERTIFICATES,

Series 2005-BC2

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN OFFICER OF THE SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.]  [THE [PURCHASE PRICE] [MORTGAGE LOAN REPURCHASE PRICE] FOR SUCH MORTGAGE LOANS HAS BEEN PAID.]  [THE MORTGAGE LOANS HAVE BEEN LIQUIDATED AND THE RELATED [INSURANCE PROCEEDS] [LIQUIDATION PROCEEDS] HAVE BEEN DEPOSITED PURSUANT TO SECTION 3.13 OF THE POOLING AND SERVICING
AGREEMENT.]  [A REPLACEMENT MORTGAGE LOAN HAS BEEN DELIVERED TO THE TRUSTEE IN THE MANNER AND OTHERWISE IN ACCORDANCE WITH THE CONDITIONS SET FORTH IN SECTIONS 2.02 AND 2.03 OF THE POOLING AND SERVICING AGREEMENT.]

	
            LOAN NUMBER:_______________
 	
            BORROWER’S NAME:_____________
 

COUNTY:____________________

[For Substitution or Repurchase Only:  The Servicer certifies that [an] [no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS, THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO SECTION 3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE CREDITED.

	________________________	    	________________________	     	DATED:	________________________
	 	 	 	 	 	 
	//     VICE PRESIDENT	 	 	 
	 	 	 	 	 	 
	//     ASSISTANT VICE PRESIDENT	 	 	 

 

 

Exhibit O

Exhibit O is a photocopy

of the Depository Agreement

as delivered.

[see appropriate documents delivered at closing]

 

 

EXHIBIT P

FORM OF MORTGAGE NOTE AND MORTGAGE

[Provided Upon Request]

 

 

EXHIBIT Q

[RESERVED]

 

 

EXHIBIT R

FORM OF CORRIDOR CONTRACT

 

 

 

EXHIBIT S

FORM OF CORRIDOR CONTRACT NOVATION AGREEMENT

 

 

EXHIBIT T

FORM OF CORRIDOR CONTRACT ADMINISTRATION AGREEMENT

 

[see appropriate document delivered at closing]

 

 

EXHIBIT U

OFFICER’S CERTIFICATE WITH RESPECT TO PREPAYMENTS

ASSET-BACKED CERTIFICATES,

Series 2005-BC2

[Date]

 Via Facsimile

 

 The Bank of New York,

as Trustee

101 Barclay St., 8W

New York, New York  10286

 Dear Sir or Madam: 

 

Reference is made to the Pooling and Servicing Agreement, dated as of April 1, 2005, (the “Pooling and Servicing Agreement”) among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as Seller, Park Sienna LLC, as Seller, Countrywide Home Loans Servicing LP, as Master Servicer and The Bank of New York, as Trustee.  Capitalized terms used herein shall have the meanings ascribed to such terms in the Pooling and Servicing Agreement.

__________________ hereby certifies that he/she is a Servicing Officer, holding the office set forth beneath his/her name and hereby further certifies as follows:

With respect to the Distribution Date in _________ 20[ ]and each Mortgage Loan set forth in the attached schedule:

1. A Principal Prepayment in full or in part was received during the related Prepayment Period;

2. Any Prepayment Charge due under the terms of the Mortgage Note with respect to such Principal Prepayment was or was not, as indicated on the attached schedule using “Yes” or “No”, received from the Mortgagor and deposited in the Certificate Account;

3. As to each Mortgage Loan set forth on the attached schedule for which all or part of the Prepayment Charge required in connection with the Principal Prepayment was waived by the Servicer, such waiver was, as indicated on the attached schedule, based upon:

 

 

(i) the Servicer’s determination that such waiver would maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking into account the value of such Prepayment Charge, or

(ii)(A) the enforceability thereof is limited (1) by bankruptcy, insolvency, moratorium, receivership, or other similar law relating to creditors’ rights generally or (2) due to acceleration in connection with a foreclosure or other involuntary payment, or (B) the enforceability is otherwise limited or prohibited by applicable law; and

4. We certify that all amounts due in connection with the waiver of a Prepayment Charge inconsistent with clause 3 above which are required to be deposited by the Servicer pursuant to Section 3.20 of the Pooling and Servicing Agreement, have been or will be so deposited.

COUNTRYWIDE HOME LOANS SERVICING LP,

as Servicer

By:  COUNTRYWIDE GP, INC.

By:___________________________

Name:

Title:

 

 

SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED DURING THE RELATED PREPAYMENT PERIOD

	Loan Number
	Clause 2: Yes/No
	Clause 3: (i) or (ii) 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

EXHIBIT V

STANDARD & POOR’S ANTI-PREDATORY LENDING CATEGORIZATION

 

Standard & Poor’s has categorized loans governed by anti-predatory lending laws in the Jurisdictions listed below into three categories based upon a combination of factors that include (a) the risk exposure associated with the assignee liability and (b) the tests and thresholds set forth in those laws. Note that certain loans classified by the relevant statute as Covered are included in Standard & Poor’s High Cost Loan Category because they included thresholds and tests that are typical of what is generally considered High Cost by the industry. 

 

 

 

	
            Standard & Poor’s High Cost Loan Categorization
	
            State/Jurisdiction	
            Name of  Anti-Predatory Lending Law/Effective  Date	
            Category under Applicable Anti-Predatory  Lending Law
	
            Arkansas	
            Arkansas Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et  seq.Effective July 16, 2003	
            High Cost Home Loan
	
            Cleveland Heights, OH	
            Ordinance No. 72-2003 (PSH), Mun. Code §§ 757.01 et  seq.Effective June 2, 2003 	
            Covered Loan
	
            Colorado	
            Consumer Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et  seq.Effective for covered loans offered or entered into on or after January 1, 2003. Other provisions of the Act took effect on June 7, 2002	
            Covered Loan
	
            Connecticut	
            Connecticut Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746 et  seq. Effective October 1, 2001	
            High Cost Home Loan
	
            District of Columbia	
            Home Loan Protection Act, D.C. Code §§ 26-1151.01 et  seq.Effective for loans closed on or after January 28, 2003	
            Covered Loan
	
            Florida	
            Fair Lending Act, Fla. Stat. Ann. §§ 494.0078 et  seq.Effective October 2, 2002	

            High Cost Home Loan
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et  seq.Effective October 1, 2002 – March 6, 2003	
  High Cost Home Loan

 

 

 

 

	
            Georgia as amended (Mar. 7, 2003 – current)	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et  seq.Effective for loans closed on or after March 7, 2003	
            High Cost Home Loan
	
            HOEPA Section 32	
            Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R. §§ 226.32 and 226.34Effective October 1, 1995, amendments October 1, 2002	
            High Cost Loan
	
            Illinois	
            High Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et  seq.Effective January 1, 2004 (prior to this date, regulations under Residential Mortgage License Act effective from May 14, 2001)	
            High Risk Home Loan 
	
            Indiana	
            Indiana Home Loan Practices Act, Ind. Code Ann. §§ 24-9-1-1 et  seq. Effective for loans originated on or after January 1, 2005.	
            High Cost Home Loan
	
            Kansas	
            Consumer Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et  seq.Sections 16a-1-301 and 16a-3-207 became effective April 14, 1999; Section 16a-3-308a became effective July 1, 1999 	
            High Loan to Value Consumer Loan (id. § 16a-3-207) and;
	
            High APR Consumer Loan (id. § 16a-3-308a)
	
            Kentucky	
            2003 KY H.B. 287 – High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100 et  seq.Effective June 24, 2003	
            High Cost Home Loan
	
            Maine	
            Truth in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et  seq.Effective September 29, 1995 and as amended from time to time	
            High Rate High Fee Mortgage
	
            Massachusetts	
            Part 40 and Part 32, 209 C.M.R. §§ 32.00 et  seq. and 209 C.M.R. §§ 40.01 et  seq.Effective March 22, 2001 and amended from time to time	
  High Cost Home Loan

 

 

 

 

	
             	
            Massachusetts Predatory Home Loan Practices ActMass. Gen. Laws ch. 183C,  §§ 1 et  seq.Effective November 7, 2004	
            High Cost Home Mortgage Loan
	
            Nevada	
            Assembly Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et  seq.Effective October 1, 2003	
            Home Loan
	
            New Jersey	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et  seq.Effective for loans closed on or after November 27, 2003	
            High Cost Home Loan
	
            New Mexico	
            Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et  seq.Effective as of January 1, 2004; Revised as of February 26, 2004	
            High Cost Home Loan
	
            New York	
            N.Y. Banking Law Article 6-lEffective for applications made on or after April 1, 2003	
            High Cost Home Loan
	
            North Carolina	
            Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et  seq.Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)	
            High Cost Home Loan
	
            Ohio	
            H.B. 386 (codified in various sections of the Ohio Code), Ohio Rev. Code Ann. §§ 1349.25 et  seq.Effective May 24, 2002	
            Covered Loan
	
            Oklahoma	
            Consumer Credit Code (codified in various sections of Title 14A)Effective July 1, 2000; amended effective January 1, 2004	
  Subsection 10 Mortgage
 

 

 

 

 

	
            South Carolina
 	
            South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004
 	
            High Cost Home Loan
 
	
            West Virginia 
 	
            West Virginia Residential Mortgage Lender, Broker and Servicer Act, W. Va. Code Ann. §§ 31-17-1 et seq.

Effective June 5, 2002
 	
  West Virginia Mortgage Loan Act Loan
 

 

 

	Standard & Poor’s Covered Loan Categorization
	
            State/Jurisdiction
 	
            Name of Anti-Predatory Lending Law/Effective Date
 	
            Category under Applicable Anti-Predatory Lending Law
 
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003
 	
            Covered Loan
 
	
            New Jersey
 	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective November 27, 2003 – July 5, 2004
 	
  Covered Home Loan
 

 

	
            Standard  & Poor’s Home Loan Categorization

  
	
            State/Jurisdiction
  	
            Name of  Anti-Predatory Lending Law/Effective Date
  	
            Category under  Applicable Anti-Predatory Lending Law
  
	
            Georgia (Oct. 1, 2002 – Mar. 6, 2003)
 	
            Georgia Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

Effective October 1, 2002 – March 6, 2003
 	
            Home Loan
 
	
            New Jersey
 	
            New Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22 et seq.

Effective for loans closed on or after November 27, 2003
 	
  Home Loan
 

 

 

 

 

	
            New Mexico
 	
            Home Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

Effective as of January 1, 2004; Revised as of February 26, 2004
 	
            Home Loan
 
	
            North Carolina
 	
            Restrictions and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E et seq.

Effective July 1, 2000; amended October 1, 2003 (adding open-end lines of credit)
 	
            Consumer Home Loan
 
	
            South Carolina
 	
            South Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann. §§ 37-23-10 et seq.

Effective for loans taken on or after January 1, 2004
 	
  Consumer Home Loan

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