Document:

CONFIDENTIAL TREATMENT REQUESTED.  INFORMATION FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND MARKED WITH “[***]” AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Exhibit 10.1

Execution Copy

 

AMENDED & RESTATED

CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE

This AMENDED & RESTATED CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE (“Settlement Agreement”) is made as of this 2nd day of March, 2015 (the “Signing Date”), by and among Mortgage Guaranty Insurance Corporation (“MGIC”), Countrywide Home Loans, Inc. (“CHL”) and Bank of America, N.A., in its capacity as the current or prior master servicer or servicer of Subject Loans (“Servicer”).  Each of MGIC, CHL and Servicer is referred to herein as a “Party” and are collectively referred to herein as the “Parties.” Capitalized terms have the meanings given them in Section 1.

 

RECITALS

 

WHEREAS, MGIC issued mortgage insurance policies on the Subject Loans;

 

WHEREAS, the Parties previously entered into the Confidential Settlement Agreement and Release dated April 19, 2013 (the “Original Agreement Signing Date”), as amended September 24, 2013, November 8, 2013, March 13, 2014, May 19, 2014, June 5, 2014, August 31, 2014, September 11, 2014, October 30, 2014, November 30, 2014, January 29, 2015, February 6, 2015, February 13, 2015, February 20, 2015, and February 27, 2015 (as so amended, the “Original Agreement”);

 

WHEREAS, on the Original Agreement Signing Date, MGIC and Servicer entered into a separate Confidential Settlement Agreement and Release (the “MGIC/BANA Settlement Agreement”) governing MGIC’s insurance obligations on certain loans that CHL sold to the GSEs, or which are currently owned by either Servicer or CHL;

 

WHEREAS, concurrent with the execution of the MGIC/BANA Settlement Agreement and the Original Agreement, on April 19, 2013, the Parties entered into a Curtailment Dispute Resolution Agreement (“Curtailment ADR Agreement”), which set forth an alternative dispute resolution (“ADR”) process for the resolution of claims and differences related to Curtailments;

 

WHEREAS, the Parties desire further to amend the Original Agreement, as previously and hereby amended, and restate the Original Agreement as a single document;

 

WHEREAS, pursuant to the Original Agreement, MGIC and CHL established the Escrow Accounts into which they made certain cash deposits;

WHEREAS, each of the Parties acknowledges that absent this Settlement Agreement, the Parties would continue to prosecute or defend their positions related to the Mortgage Insurance Dispute, including in the Arbitration Action and the Litigation Action, and through the ADR process set forth the Curtailment ADR Agreement;

 

 

US_ACTIVE-120241040.31

 

WHEREAS, except as set forth in this Settlement Agreement, the Parties now desire to limit the expense, inconvenience, and distraction of litigation, including in the Arbitration Action, the Litigation Action and ADR process set forth in the Curtailment ADR Agreement, and wish to resolve their claims and differences related to the Mortgage Insurance Dispute;

 

WHEREAS, MGIC provided insurance on CHL-originated or acquired loans that were then either sold to third party investors (“Third Party PLS/Other Loans”) or deposited into Countrywide sponsored residential mortgage backed securitization trusts (“Countrywide PLS Loans”);

 

WHEREAS, this Settlement Agreement addresses MGIC’s insurance obligations with respect to Third Party PLS/Other Loans and Countrywide PLS Loans;

 

WHEREAS, Servicer either was or currently is the servicer or master servicer on the Subject Loans, and as such, had or has certain mortgage loan servicing-related rights and obligations;

 

WHEREAS, unless terminated, this Settlement Agreement will be implemented as of the Implementation Date; and

 

WHEREAS, neither Party, by entering into this Settlement Agreement, admits the accuracy of any position advanced by any other Party.

 

NOW, THEREFORE, intending to be legally bound, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, including the promises and the other matters contained herein, the Parties agree as follows:

 

AGREEMENT

 

	1.	Definitions.

 

The following definitions govern this Settlement Agreement:

 

		(a)	“ADR Procedure” means the alternative dispute resolution procedure set forth in Section 11(b).

 

		(b)	“Affiliate” means, with respect to each of MGIC, CHL and Servicer, each of those entities listed on Exhibit 21 to the annual report on Form 10-K for the year ended December 31, 2013 filed with the United States Securities and Exchange Commission in the case of MGIC, by MGIC Investment Corporation, a Wisconsin corporation, and in the case of CHL and Servicer, by Bank of America Corporation, a Delaware corporation.

 

		(c)	“Appeal of Claims” means a request by Servicer, or the applicable Third Party Servicer, through the filing of a supplemental Claim or otherwise, that MGIC reconsider interest and expenses previously disallowed on a paid Claim.

 

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		(d)	“Applicable Reduction” means a ten percent (10%) reduction of the Contested Notices Amount on the last day of each calendar quarter, beginning on the last day of the first calendar quarter following the Initial Implementation Date and ending when the Contested Notices Amount is reduced to or below zero; provided that a reduction shall occur only (i) if the OCI has not initiated and is not pursuing an action as contemplated by Section 12(b) during the applicable calendar quarter, or (ii) if the OCI initiated such action, (A) as of the last day of such calendar quarter the OCI either has discontinued or has informed MGIC that it is not pursuing such action, or (B) a final court order has been entered dismissing such action with prejudice.  If clause (ii) of the preceding sentence should apply, then the Contested Notices Amount shall be reduced by the Applicable Reduction for that quarter and for each previous quarter in which the Applicable Reduction was not applied.

 

		(e)	“Arbitration Action” means the arbitration proceeding captioned Mortgage Guaranty Insurance Corporation v. Countrywide Home Loans, Inc., et al., American Arbitration Association, Case No. 51 148 Y 00398 10.

 

		(f)	Bank of America Released Parties” means Bank of America, N.A. (including as a successor to BAC Home Loans Servicing, formerly, Countrywide Home Loans Servicing LP, on its own behalf, and as successor in interest by de jure merger to Countrywide Bank FSB, formerly Treasury Bank), and each of its Affiliates, and each of its and its Affiliates’ respective predecessors, successors, assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

		(g)	“Bank of America Releasors” means Bank of America, N.A. (including as a successor to BAC Home Loans Servicing, formerly, Countrywide Home Loans Servicing LP, on its own behalf, and as successor in interest by de jure merger to Countrywide Bank FSB, formerly Treasury Bank), each of its Affiliates, and each of its and its Affiliates’ respective predecessors, successors, assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

		(h)	“Causes of Action” means all claims, damages, demands, proceedings, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, controversies, debts, costs, expenses (including, but not limited to, attorneys’ fees and costs associated with any court or administrative proceedings), judgments, orders and liabilities, of any kind whatsoever, in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, certain or speculative, and whether concealed or hidden, which have existed, may have existed, or do exist.

 

		(i)	“CHL” means Countrywide Home Loans, Inc. as set forth in the Preamble.

 

		(j)	“CHL Escrow Account” means the escrow account established pursuant to the Original Agreement.

 

		(k)	“CHL/PLS Loans” means the Countrywide PLS Loans and Third Party PLS/Other Loans.

 

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		(l)	“CHL Released Parties” means CHL, each of its Affiliates (including without limitation Servicer), and each of CHL’s and such Affiliates’ respective predecessors, successors, and assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

		(m)	“CHL Releasors” means CHL, each of its Affiliates (including without limitation Servicer), and each of CHL’s and such Affiliates’ respective predecessors, successors, and assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

		(n)	“Claim” (A) has, with respect to any Subject Loan, the meaning set forth in the applicable Master Policy and (B) when used in reference to a Covered Future Legacy Loan, Recently Rescinded Loan, or Future Servicing Only Loan, also means a Supplemental Claim.

 

		(o)	“Claim Group” means one or more disputed claims but not in excess of fifteen (15) disputed claims.

 

		(p)	“Confidential Information” means the content of this Settlement Agreement that is nonpublic, the negotiation of this Settlement Agreement, and any discussions or information (written or oral) exchanged during the Arbitration Action, the Litigation Action, or any dispute resolution pursuant to Section 11, including any written decision or award issued by any arbitrator described in Section 11.  Confidential Information does not include information that (i) was or becomes generally available to the public, other than as a result of a disclosure by a Party or a representative of a Party in violation of the provisions of Section 16, or (ii) becomes available to a Party on a non-confidential basis from an independent source which is not bound by any obligation to keep such Confidential Information confidential.

 

		(q)	“Contested Notices Amount” means an amount calculated as of the Initial Implementation Date equal to (x) the sum of all of the Claim benefit amounts of the Past Coverage Determination Loans less (y) the aggregate amount of the premium refund checks associated with the Past Coverage Determination Loans.

 

		(r)	“Countrywide PLS Loans” means those loans identified as Countrywide PLS Loans, which include loans held in Countrywide-sponsored private label securitizations, listed on any of Schedules 1 through 15 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(s)	“Coverage Rescission” means a rescission or denial of coverage under an applicable Master Policy by reason of any fact, event or circumstance other than a fact, event or circumstance which is the basis for an Exclusion.  For the avoidance of doubt, a Curtailment shall not be considered a Coverage Rescission.

 

		(t)	“Covered Future Legacy Claims” means Claims on Covered Future Legacy Loans which MGIC has processed or will process after the Cut-off Date.

 

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		(u)	“Covered Future Legacy Loans” means those loans that have coverage in-force as of December 31, 2012, or coverage was in force prior to a default that existed as of December 31, 2012, listed on Schedule 1 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b), including, for the avoidance of doubt, the Recently Rescinded Loans and Potential Curtailment Loans, and excluding, for the avoidance of doubt, the Past Paid Loans and Pending Rescission Loans.

 

		(v)	“Current Liability Amount” means an amount calculated as of the date the OCI files a court complaint in an action that seeks an order of the type referred to in Section 12(b) equal to (x) the Contested Notices Amount less (y) all Applicable Reductions.

 

		(w)	“Curtailment” means any reduction by MGIC to some portion of a payment of a Claim based on Servicer’s servicing activities or failures to act, including but not limited to one or more of the servicing-related reasons identified as a curtailment on Exhibit A, but shall not include Policy Adjustments or Third Party Servicer Curtailments.

 

		(x)	“Cut-off Date” means September 30, 2014.

 

		(y)	“Decisioned Servicing Only Loans” mean those Servicing Only Loans for which MGIC effected a Claim payment (with or without a Curtailment) on or before the Cut-off Date, listed on Schedule 15 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(z)	“Disclosee” means the Party from whom the disclosure of Confidential Information is sought by any nonparty as described in Section 16(b).

 

		(aa)	“Dispute” means any dispute between the Parties arising under or relating to this Settlement Agreement that does not involve (i) a matter to be resolved pursuant to the ADR Procedure set forth in Section 11(b), or (ii) enforcement of an arbitral decision rendered pursuant to Section 11(b) or 11(c).

 

		(bb)	“DPO” means any OCI administrative order under which MGIC may be operating after the Implementation Date that requires MGIC to pay Claims in part by deferred payment obligations.

 

		(cc)	“EOB” means an explanation of benefit form issued by MGIC for Claim payments.

 

		(dd)	“Escrow Accounts” means the CHL Escrow Account and the MGIC Escrow Account previously established pursuant to the Original Agreement.

 

		(ee)	“Escrow Agreement” means the escrow agreement previously executed in connection with the Original Agreement, as attached as Exhibit H.

 

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		(ff)	“Exclusion” means a basis to either rescind coverage or deny a Claim or coverage under an applicable Master Policy for a Covered Future Legacy Loan if, and only if, the applicable Master Policy provision permitting such rescission or denial is specified on Exhibit F.  For the avoidance of doubt, a Curtailment shall not be considered an Exclusion.

 

		(gg)	“Future Servicing Only Claims” means Claims on Future Servicing Only Loans.

 

		(hh)	“Future Servicing Only Loans” means the Servicing Only Loans for which MGIC may make a Claim payment after the Cut-off Date, as identified on Schedule 11 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(ii)	“GSEs” means the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

 

		(jj)	“Implementation Date” means a date mutually agreed upon by the Parties that occurs on the last day of a month for implementation of the Settlement Agreement with respect to one or more Trust/Others, provided that prior to the Implementation Date, Trustee/Other Consent has been obtained with respect to such Trust/Other(s).

 

		(kk)	“Indemnified Party” means each of MGIC and its Affiliates, on the one hand, and each of CHL and Servicer and their respective Affiliates, on the other hand, which shall be indemnified, defended and held harmless by the other Party as set forth in this Settlement Agreement.

 

		(ll)	“Indemnifying Party” means each of MGIC, CHL and Servicer, which shall indemnify, defend and hold harmless the Indemnified Party as set forth in this Settlement Agreement.

 

		(mm)	“Initial Implementation Date” has the meaning given it in the MGIC/BANA Settlement Agreement.

 

		(nn)	“Interim Reconciliation Loan Report” means each loan report substantially in the form of Exhibit E, to be delivered by MGIC pursuant to Section 3(a).  Fields may be added to or amended on the Interim Reconciliation Loan Report as mutually agreed by the Parties without need for written amendment to this Settlement Agreement.

 

		(oo)	“Legacy Loans” means the loans that were originated or acquired by CHL and insured under a Master Policy prior to January 1, 2009, listed on any of Schedules 1 through 8 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).  Legacy Loans consist of Covered Future Legacy Loans (Schedule 1), Past Coverage Determination Loans (Schedule 2), Recently Paid Loans (Schedule 3), Recently Rescinded Loans (Schedule 4), Past Paid Loans (Schedule 5), Potential Curtailment Loans (Schedule 6), and Pending Rescission Loans (Schedule 8).  For the avoidance of doubt, no Legacy Loan is a Servicing Only Loan or vice versa.

 

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		(pp)	[Deliberately omitted.]

 

		(qq)	“Legacy Loan Settlement Percentage” means [***] for payment of Perfected Claims on all Covered Future Legacy Loans after the Implementation Date and as otherwise used in this Settlement Agreement, subject to potential adjustment as provided in Section 3(a)(iv) and (v).

 

		(rr)	“Litigation Action” means the action currently captioned Countrywide Home Loans, Inc., et al. v. Mortgage Guaranty Insurance Corporation, United States District Court for the Northern District of California, Case No. CV 10-00233 JSW, on removal from San Francisco Superior Court Case No. CGC-09-495278.

 

		(ss)	“Loss” has, with respect to any Subject Loan, the meaning set forth in the applicable Master Policy, including corrections and curtailments, but not including Curtailments; provided that for purposes of arriving at the Settlement Percentage Claim Payment and the Servicing Only Settlement Percentage Claim Payment, MGIC (1) first makes any reduction in the amount of a Claim by any permissible curtailments and Policy Adjustments under this Settlement Agreement to determine the amount of the Loss, and (2) then applies the applicable Settlement Percentage to the Loss to determine the Claim payment amount.

 

		(tt)	“Master Policy” means the mortgage guaranty master policy and all applicable endorsements under which MGIC provided primary mortgage guaranty insurance applicable to a particular Subject Loan, and the related certificate issued under any Master Policy.

 

		(uu)	“MGIC” means Mortgage Guaranty Insurance Corporation as set forth in the Preamble.

 

		(vv)	“MGIC/BANA Settlement Agreement” means the Confidential Settlement Agreement and Release between MGIC and Bank of America, N.A. as set forth in the Recitals.

 

		(ww)	“MGIC Escrow Account” means the escrow account established pursuant to the Original Agreement.

 

		(xx)	“MGIC Released Parties” means MGIC, each of its Affiliates, and each of MGIC’s and its Affiliates’ predecessors, successors, and assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

		(yy)	“MGIC Releasors” means MGIC, each of its Affiliates, and each of MGIC’s and its Affiliates’ predecessors, successors, and assigns, and all of their respective shareholders, directors, officers, employees and agents.

 

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		(zz)	“Mortgage Insurance Dispute” means all Causes of Action related to the Subject Loans arising from, under, or in connection with, or otherwise related in any way to, (i) mortgage insurance coverage provided by MGIC with respect to the Subject Loans and (ii) [***], including, for the avoidance of doubt, those Causes of Action at issue between the Parties in the Arbitration Action and the Litigation Action; provided that such Causes of Action include Causes of Action with respect to the Countrywide PLS Loans and the Third Party PLS/Other Loans only to the extent that the Implementation Date has occurred with respect to such Countrywide PLS Loans and Third Party PLS/Other Loans. The inclusion of any Causes of Action in this definition is not an admission by either Party that such Cause of Action is at issue between the Parties in the Arbitration Action or the Litigation Action.

 

		(aaa)	“Non-Consenting Loans” means those Countrywide PLS Loans or Third Party PLS/Other Loans that do not receive Trustee/Other Consent pursuant to Section 5, designated as Non-Consenting Loans on Schedule 17 pursuant to Section 3(b)(ii) and are therefore, no longer a Subject Loan.

 

		(bbb)	“OCI” means the Wisconsin Office of the Commissioner of Insurance.

 

		(ccc)	“Original Agreement” has the meaning set forth in the Recitals.

 

		(ddd)	“Original Agreement Signing Date” means the date the Original Agreement was initially made, as specified in the Preamble to this Settlement Agreement.

 

		(eee)	“Party” and “Parties” means MGIC, CHL and Servicer as set forth in the Preamble.

 

		(fff)	“Past Coverage Determination Loans” means Legacy Loans for which MGIC rescinded or denied coverage on or before December 31, 2012, listed on Schedule 2 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(ggg)	“Past Paid Loans” means Legacy Loans for which MGIC made Claim benefit payments (with or without a Curtailment) on or before the Cut-off Date, listed on Schedule 5 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(hhh)	“Pending Rescission Loans” means Legacy Loans for which MGIC has made a determination to effect a Coverage Rescission on or before the Cut-off Date, listed on Schedule 8 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(iii)	“Perfected Claim” means a Claim that is perfected pursuant to Section 10(e), Section 10(f)(i), Section 10(g)(i), Section 10(g)(v) or Section 10(h)(iii), as applicable.

 

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		(jjj)	“Policy Adjustment” means any reduction by MGIC to some portion of a payment of a Claim for items that are disallowed under the terms of the applicable Master Policy, including, but not limited to, reductions generally associated with servicing advances, interest or fees, for one or more of the reasons identified as a Policy Adjustment on Exhibit A.  For the avoidance of doubt, Policy Adjustments shall not include Curtailments or vice versa.

 

		(kkk)	“Potential Curtailment Loans” means those Covered Future Legacy Loans which have ever been serviced by the Servicer and were less than 90 days past due either (x) as of the Cut-off Date, or (y) at the time of servicing transfer, if applicable, listed on Schedule 6 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(lll)	“Recently Paid Loans” means Legacy Loans for which MGIC has paid Claims in the period after the Cut-off Date and on or before the Implementation Date, listed on Schedule 3 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

	 	(mmm)	“Recently Paid Servicing Only Loans” means Servicing Only Loans for which MGIC has paid Claims in the period after the Cut-Off Date and on or before the Implementation Date, listed on Schedule 13 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(nnn)	“Recently Rescinded Loans” means Covered Future Legacy Loans for which MGIC rescinded coverage or communicated a determination to rescind coverage in the period after the Cut-off Date and on or before the Implementation Date, listed on Schedule 4 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(ooo)	“Resolved Covered Future Legacy Loan” means each Covered Future Legacy Loan for which: (i) MGIC made a Settlement Percentage Claim Payment and CHL and Servicer have waived, pursuant to Section 11(b)(ii)(A), their ability to invoke the ADR Procedure; or (ii) there has been a final decision pursuant to Section 11(b)(ii)(I) under the ADR Procedure, and the Party for whose benefit the decision made an award has obtained, or could have obtained if sought, full satisfaction of such award.

 

		(ppp)	“Servicer” means Bank of America, N.A., in its capacity as the current or prior master servicer or servicer of Subject Loans, as set forth in the Preamble.

 

		(qqq)	“Servicing Guide” means MGIC’s Servicing Guide in effect at October 2014, a copy of which is attached as Exhibit D hereto.

 

		(rrr)	“Servicing Only Claims” means Claims made on Servicing Only Loans after the Cut-Off Date.

 

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		(sss)	“Servicing Only Loans” means the loans that were insured under a Master Policy on or before August 8, 2009  which were ever serviced by the Servicer and were 90 days or more past due either (x) as of the Cut-off Date, or (y) at the time of servicing transfer, if applicable, listed on Schedule 11 (Future Decisioned Servicing Only Loans), Schedule 13 (Recently Paid Servicing Only Loans), and Schedule 15 (Decisioned Servicing Only Loans) on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(ttt)	[Deliberately omitted.]

 

		(uuu)	“Servicing Only Settlement Percentage” means [***] for payment of Perfected Claims on Servicing Only Loans after the Implementation Date and as otherwise used in this Settlement Agreement, subject to potential adjustment as provided in Section 3(a)(iv) and (v).

 

		(vvv)	“Servicing Only Settlement Percentage Claim Payment” means with respect to an applicable Servicing Only Loan, the amount equal to the product of (x) the Servicing Only Settlement Percentage and (y) the Loss, provided that if MGIC exercises the property acquisition settlement option permitted by the applicable Master Policy, the Servicing Only Settlement Percentage Claim Payment shall be the Loss, reduced by an amount equal to the product of (x) 1 minus the Servicing Only Settlement Percentage and (y) what the Loss would have been if MGIC had exercised the “percentage guaranty option,” as defined in the applicable Master Policy.

 

	 	(www)	“Settlement Percentage” means the Legacy Loan Settlement Percentage or the Servicing Only Settlement Percentage, as applicable.

 

		(xxx)	“Settlement Percentage Claim Payment” means with respect to an applicable Covered Future Legacy Loan, the amount equal to the product of (x) the Legacy Loan Settlement Percentage and (y) the Loss; provided that if MGIC exercises the property acquisition settlement option permitted by the applicable Master Policy, the Settlement Percentage Claim Payment shall be the Loss, reduced by an amount equal to the product of (x) 1 minus the Legacy Loan Settlement Percentage and (y) what the Loss would have been if MGIC had exercised the “percentage guaranty option,” as defined in the applicable Master Policy.

 

		(yyy)	“Signing Date” means the date this Settlement Agreement is made.

 

		(zzz)	“Statutory Statements” has the meaning given in Section 19(k)(ii) of this Settlement Agreement.

 

		(aaaa)	“Subject Loan” means each of the loans designated on any of Schedules 1 through 15 on the Signing Date, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

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		(bbbb)	“Subject Loan Report” means each loan report in the form of Exhibit I, to be delivered pursuant to Section 3(d).

 

		(cccc)	“Supplemental Claim” means a supplemental Claim for items the Insured (as defined in the Master Policy) must advance under Section 5.7 of the applicable Master Policy, which supplemental Claim is made after the date on which the Claim to which such supplemental Claim relates is initially paid.

 

		(dddd)	“Third Party PLS/Other Loans” means those loans identified as Third Party PLS/Other Loans on any of Schedules 1 through 15, which include loans held in third-party sponsored private label securitization trusts, whole loans, or other loans originated or acquired by CHL, as updated pursuant to Section 3(a), and as finalized with respect to the Implementation Date pursuant to Section 3(b).

 

		(eeee)	“Third Party Servicer” means any servicer, master servicer, or subservicer other than Servicer or an Affiliate of Servicer.

 

		(ffff)	“Third Party Servicer Curtailment” means any reduction by MGIC to some portion of a Claim based on servicing-related activities or failures to act of a Third Party Servicer during the period of time that the loan was serviced by the Third Party Servicer.  For avoidance of doubt, a Third Party Servicer Curtailment shall not be considered a Curtailment under this Settlement Agreement or vice versa.

 

		(gggg)	[Deliberately omitted.]

 

		(hhhh)	“Trust/Other” means (i) the applicable trust, pool, person, or other entity holding any loans designated as Countrywide PLS Loans or Third-Party PLS/Other Loans on any of Schedules 1 through 15, or (ii) any group of such loans held by such trust, pool, person or other entity, provided that (x) such group was designated or otherwise identified as a group at the time the trust, pool, person, or other entity acquired the loans in the group, (y) the loans in the group are identified on any of Schedules 1 through 15 by the name of the applicable trust, pool, person, or other entity and as belonging to an identified group distinct from one or more other groups included within such trust, pool, person, or other entity.

 

		(iiii)	“Trustee/Other” means the trustee, person, servicer, or entity having decision-making power with respect to a Trust/Other, acting in the capacity as trustee or as decision-maker under delegated authority or otherwise with respect to that particular Trust/Other.

 

		(jjjj)	“Trustee/Other Consent” means written consent obtained from a Trustee/Other pursuant to Section 5 with respect to a particular Trust/Other.

 

		(kkkk)	“Unresolved Covered Future Legacy Loan” means each Covered Future Legacy Loan for which (i) MGIC has not made a determination of coverage; (ii) MGIC has provided written notice of an Exclusion or Curtailment with respect to such Covered Future Legacy Loan, and Servicer has given MGIC written notification of a dispute pursuant to Section 11(b), CHL and Servicer have not waived, pursuant to Section 11(b)(ii)(A), their ability to invoke the ADR Procedure, and there has not been a final decision or other final resolution, by the passage of time or otherwise, under the ADR Procedure pursuant to Section 11(b)(ii)(I); or (iii) there has been a final decision under the ADR Procedure, but the Party for whose benefit the decision made an award has sought but has not obtained full satisfaction of such award pursuant to the ADR Procedure.

 

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	2.	Previous Deposits into Escrow Accounts; Termination of Security Interests.

 

		(a)	Establishing Escrow.  The Parties entered into an Escrow Agreement as provided in the Original Agreement.  Pursuant to the terms of the Original Agreement, MGIC deposited funds into the MGIC Escrow Account and CHL deposited funds into the CHL Escrow Account. The funds in the Escrow Accounts and the interest thereon shall be disbursed pursuant to Section 9.

 

		(b)	Effect of Deposits into Escrow Accounts.

 

		(i)	CHL and Servicer intend, and MGIC will not dispute, that the Escrow Agreement and the Escrow Accounts thereunder constitute an “escrow” within the meaning of Wisconsin Statute section 645.03(1)(j).

 

		(ii)	Each of MGIC, CHL and Servicer intends, and no Party will dispute, that (A) the Escrow Agreement and the Escrow Accounts thereunder transfer (x) to the Escrow Agent legal title to the funds in such Escrow Accounts and (y) to each of the Parties equitable ownership (contingent or otherwise) of the funds deposited in the Escrow Account to which each is entitled to disbursement in accordance with the provisions of this Settlement Agreement and the Escrow Agreement; and (B) neither Party has equitable ownership (contingent or otherwise) of any of such funds to which it is not entitled to disbursement in accordance with the provisions of this Settlement Agreement and the Escrow Agreement.

 

		(c)	Security Interests.

 

		(i)	MGIC hereby represents that it has not assigned any of, and grants Servicer a security interest in all of, MGIC’s right, title and interest in and to any and all disbursements from the MGIC Escrow Account to which MGIC is entitled pursuant to the terms and conditions of this Settlement Agreement or the Escrow Agreement, as security for the full performance of MGIC’s obligations under this Settlement Agreement and the Escrow Agreement.  Servicer previously filed a UCC-1 financing statement with respect to such security interest.

 

		(ii)	CHL hereby represents that it has not assigned any of, and grants MGIC a security interest in all of, CHL’s right, title and interest in and to any and all disbursements from the CHL Escrow Account to which CHL is entitled pursuant to the terms and conditions of this Settlement Agreement or the Escrow Agreement, as security for the full performance of CHL’s obligations under this Settlement Agreement and the Escrow Agreement.  MGIC previously filed a UCC-1 financing statement with respect to such security interest.

 

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		(iii)	In the event that this Settlement Agreement is terminated for any reason other than termination pursuant to Section 4(a) or Section 4(b), upon the disbursement of all funds in the Escrow Accounts pursuant to Section 9(d), the security interests granted pursuant to Sections 2(c)(i) and (ii) above shall immediately become null and void, and each of Servicer and MGIC shall promptly file an appropriate UCC-3 termination statement reflecting such termination.

 

	3.	Continuing Reconciliation; Finalizing Schedules; Manifest Error; Subject Loan Reports.

 

		(a)	Continuing Reconciliation.

 

		(i)	Beginning with the next month end following the Signing Date through the Implementation Date, MGIC shall deliver to Servicer an Interim Reconciliation Loan Report by the 20th day of the following month via secured internet delivery.

 

		(ii)	Each Interim Reconciliation Loan Report (i) shall identify by Schedule number each Subject Loan and (ii) update and supplement to reflect changes through the Implementation Date to the listing of loans identified on Schedules 1 through 15 at the Signing Date, provided that the first Interim Reconciliation Loan Report shall include activity related to MGIC’s determination of a Claim for a Subject Loan from the Cut-off Date to the end of the first full month following the Signing Date, and each subsequent Interim Reconciliation Loan Report shall reflect activity occurring for every month thereafter.

 

		(iii)	The Parties covenant and agree to work together in good faith to reconcile the Schedules up through the time the Schedules are finalized pursuant to Section 3(b).

 

		(iv)	If the total of: (x) all Actual Curtailment Amounts (as defined below)  shown on the Interim Loan Reconciliation Report as of April 30, 2015 for Claims on Legacy Loans and Servicing Only Loans paid between October 1, 2014 and April 30, 2015, plus (y) the average monthly amount of such Actual Curtailment Amounts during that period is [***], then, prior to Implementation Date, the Legacy Loan Settlement Percentage and Servicing Only Settlement Percentage shall each be recalculated applying the methodology previously employed by the Parties to determine, respectively, the Legacy Loan Settlement Percentage and Servicing Only Settlement Percentage.  As used in this Section 3(a)(iv), the “Actual Curtailment Amount” shall mean, for each Claim on Legacy Loans and Servicing Only Loans paid between October 1, 2014 and April 30, 2015, the total curtailment multiplied by a fraction in which the numerator is the number of days in the Default Period (as defined below) for which Servicer was the servicer of such Legacy Loan or Servicing Only Loan that resulted in such Claim, and the denominator is the number of days in the Default Period.  “Default Period” means the period beginning on the “paid through date” of such Legacy Loan or Servicing Only Loan and ending on the date of such Claim submission, as shown on the EOB.

 

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		(v)	If (x) the total of: (x) all Actual Claim Amounts (as defined below)  shown on the Interim Loan Reconciliation Report as of April 30, 2015 for Claims on Legacy Loans and Servicing Only Loans paid between October 1, 2014 and April 30, 2015, plus (y) the average monthly amount of such Actual Claim Amounts during that period is [***], then, prior to the Implementation Date, the Legacy Loan Settlement Percentage and Servicing Only Settlement Percentage shall each be recalculated applying the methodology previously employed by the Parties to calculate, respectively, the Legacy Loan Settlement Percentage and Servicing Only Settlement Percentage.  As used in this Section 3(a)(v), the “Actual Claim Amount” shall mean, for each Claim on Legacy Loans and Servicing Only Loans paid between October 1, 2014 and April 30, 2015, the Claim payment amount plus the Actual Curtailment Amount.

 

		(vi)	For purposes of making any adjustment required by either Section 3(a)(iv), 3(a)(v), or 3(c), “the methodology previously employed” means, in the case of 3(c) the Worksheet, or in the case of 3(a)(iv) or 3(a)(v) the procedure to be applied to the Worksheet, that was described in the email sent at 1:16 p.m. PST on the Signing Date from Servicer to MGIC with respect to such procedure referencing this Section 3(a)(vi) (the “Servicer Email”), which acceptance of the Servicer Email was confirmed by email from MGIC to Servicer on the Signing Date.  The Worksheet is the “AB single rate” worksheet of that certain Excel spreadsheet named “MGIC BAC PLS All in Settlement 20150227v6” attached to the Servicer Email.

 

		(vii)	Schedule 18 shall identify, as of the Signing Date and as updated through, and finalized as of, the Implementation Date, all transfers of servicing of Subject Loans from Servicer to a Third Party Servicer.  Servicer will reasonably cooperate with MGIC to determine the correct servicing transfer date of a Subject Loan in the event that (i) a potential error is discovered with respect to a servicing transfer date identified on Schedule 18 or (ii) on and after the Implementation Date, MGIC is uncertain about a servicing transfer date of a Subject Loan.

 

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		(b)	Finalizing Loan Schedules.

 

		(i)	The final identification and allocation of Subject Loans on Schedules 1 through 15 as of the Implementation Date shall be as stated on an Interim Reconciliation Loan Report, in a form mutually agreed by the Parties, delivered by MGIC, and verified by BANA, within twenty (20) business days following the Implementation Date.  Such final identification and allocation shall include a list of (i) each Countrywide PLS Loan and Third Party/PLS Other Loan that is subject to the Implementation Date and (ii) the Trust/Other holding such Countrywide PLS Loan and Third Party PLS/Other Loan.

 

		(ii)	As soon as practicable after the expiration of the time period for obtaining Trustee/Other Consent pursuant to Section 5, the Parties shall finalize the Non-Consenting Loans, by identifying and listing on Schedule 17 (i) each Countrywide PLS Loan and Third Party/PLS Other Loan that has not received Trustee/Other Consent and (ii) the Trust/Other holding such Non-Consenting Loan.  Each Non-Consenting Loan shall be removed from each of Schedules 1 through 15 and shall no longer be a Subject Loan.

 

		(c)	Manifest Error. To the extent it is determined in the period of time between the Signing Date and the Implementation Date that the listing of (or failure to list) a Subject Loan on a Schedule to this Settlement Agreement is the result of manifest error, or there is a manifest error in the (i) “claim filed amounts” of [***] of Pending Rescission Loans for the period November 1, 2011 through the Cut-off Date, (ii) the amount of curtailments on Subject Loans for the period January 1, 2010 through the Implementation Date or (iii) the “paid thru dt”, “claim title date”, and “claim received date” data provided by MGIC on transferred loans, in the case of each of (i), (ii), and (iii), that forms the basis of the calculations of the Legacy Loan Settlement Percentage or Servicing Only Settlement Percentage, the Parties agree to first cooperate in good faith to correct such error and any impact the error may have had to the calculation of the Legacy Loan Settlement Percentage or Servicing Only Settlement Percentage, as applicable.  To the extent the Parties continue to dispute such error, then such dispute and its impact shall be resolved pursuant to Section 11(c).  If, however, the error is claimed by either Party to have the effect of increasing or decreasing by more than [***], in the aggregate, the estimated total Claim benefit amounts to be paid by MGIC under the Settlement Agreement, applying the methodology employed by the Parties to determine the Settlement Percentages as described in Section 3(a)(vi), and the data in (i), (ii), or (iii) above exchanged by the Parties prior to the Signing Date, then prior to beginning any proceedings under Section 11(c), (i) the Parties shall negotiate in good faith, consistently with the methodology previously employed by the Parties in their calculation of the Legacy Loan Settlement Percentage or Servicing Only Settlement Percentage prior to execution of this Settlement Agreement, to resolve their dispute; and (ii) if such negotiations have failed to resolve such dispute within thirty (30) days after either Party notifies the other Party of a potential manifest error, then within fifteen (15) days of the expiration of the time period for good-faith negotiations, the Party aggrieved by the manifest error may terminate this Settlement Agreement upon written notice to the other Party pursuant to Section 5(c)(iii) without any proceedings pursuant to Section 11(c), and the Implementation Date shall not occur. To the extent the Parties dispute whether the [***] termination threshold is met, such a dispute shall also be resolved pursuant to Section 11(c). If neither Party terminates this Settlement Agreement pursuant to this Section 3(c), then the Parties shall continue to resolve the dispute as a Dispute pursuant to Section 11(c), and all time periods under this Settlement Agreement are tolled while such proceedings pursuant to Section 11(c) are ongoing.

 

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		(d)	Subject Loan Reports.  Beginning with the next month end following the Implementation Date, MGIC shall deliver to Servicer via secured internet delivery within twenty (20) days after the end of each month, a Subject Loan Report with respect to each Subject Loan for which MGIC resolved a Claim during the preceding month, provided that the Implementation Date has occurred with respect to such Subject Loan.  MGIC shall continue to deliver Subject Loan Reports until the last Claims on Subject Loans have been resolved and no remaining Subject Loan has mortgage insurance coverage in-force or coverage that was in-force prior to default.

 

		(i)	Within sixty (60) days after receipt by Servicer of a Subject Loan Report, Servicer shall have the right to notify MGIC and as applicable, the Third Party Servicer, in writing, of any error by MGIC in applying the Legacy Loan Settlement Percentage to any Covered Future Legacy Loan, or the Servicing Only Settlement Percentage to any Future Servicing Only Loan, included in the Subject Loan Report.

 

		(ii)	If MGIC has made an error, MGIC shall correct any Settlement Percentage error within thirty (30) days of written notice directly with such loan’s servicer or owner (whichever received the original Claim payment), and report such payment corrections in the next Subject Loan Report, as applicable, as a supplemental Claim payment.

 

		(iii)	The Parties shall work in good faith to resolve any of Servicer’s objections or notice of an error in MGIC applying the applicable Settlement Percentage.

 

	4.	Termination Based on Certain Actions.

 

		(a)	Termination of Settlement Agreement.

 

		(i)	Termination by MGIC.

 

		(A)	CHL shall give written notification to MGIC within ten (10) business days if CHL or any third party initiates in respect of CHL any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding, whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body, and such proceeding is not dismissed within thirty (30) days of such initiation.

 

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		(B)	If prior to the Implementation Date, (x) MGIC receives written notification from CHL pursuant to Section 4(a)(i)(A) or learns that CHL failed to provide written notification required pursuant to Section 4(a)(i)(A) or (y) CHL becomes the subject of any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding, whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body, then MGIC may terminate this Settlement Agreement by written notice to CHL.

 

		(ii)	Termination by CHL.

 

		(A)	MGIC shall give written notification to CHL within ten (10) business days if MGIC or any third party initiates in respect of MGIC any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding, whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body, and such proceeding is not dismissed within thirty (30) days of the initiation of such proceeding.

 

		(B)	If prior to the Implementation Date, (x) CHL receives written notification from MGIC pursuant to Section 4(a)(ii)(A) or learns that MGIC failed to provide written notification required pursuant to Section 4(a)(ii)(A) or (y) MGIC becomes the subject of any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding, whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body, then CHL may terminate this Settlement Agreement by written notice to MGIC.

 

		(b)	Termination Based on OCI Complaint.  Servicer may terminate this Settlement Agreement by written notice to MGIC prior to the Implementation Date if the OCI has filed a complaint prior to such Implementation Date relating to MGIC under Wisconsin Statute section 645.54 seeking to void any portion of this Settlement Agreement in a way that deprives Servicer (on behalf of the Trust/Others) of any monetary benefit conferred by the terms of this Settlement Agreement which it would otherwise have obtained.

 

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		(c)	Effect of Termination of Settlement Agreement.  The Parties shall cooperate in delivering notice to the escrow agent of the Escrow Accounts of any termination of this Settlement Agreement.  Upon any termination, this Settlement Agreement, including the provisions with respect to perfection and processing of Claims that are specified in Section 10(f), the provisions of Sections 10(k)(i)(A) and 10(k)(ii)(A)  governing Appeals of Claims, and the releases in Sections 13 and 14, shall be deemed null and void and of no further force and effect and except as provided below, the Parties shall be deemed to have reverted to their respective status as of the day prior to the Original Agreement Signing Date with respect to the Legacy Loans and as of the day prior to the Signing Date with respect to the Servicing Only Loans; provided that:

 

		(i)	the definitions in Section 1 related to any provisions not terminated, Section 2, this Section 4(c), Section 9(d) (Termination of Settlement Agreement), Section 10(f)(vi), Sections 10(k)(i)(B) and 10(k)(ii)(B), the provisions of dispute resolution in Section 11(c) to the extent that they relate to the resolution of any Dispute regarding the termination of this Settlement Agreement, Section 16 (Confidentiality), and paragraphs (a), (c), (d), (e), (f), (g), (h), (i), (k), (l), and (n), and solely for the purpose of enforcing provisions that survive termination of this Settlement Agreement, (o) of Section 19 (Miscellaneous Provisions) shall continue in full force and effect despite any termination of this Settlement Agreement;

 

		(ii)	in the event of any such termination, MGIC may effect rescission or denial of the Claims with respect to any Legacy Loan for which MGIC has communicated an intent to complete a denial after October 31, 2011, or has communicated an intent to complete a rescission after October 31, 2011, without regard to the passage of time, and CHL and Servicer hereby waive any claim or defense as to the lack of timely assertion of any such rescission or denial with respect to any such Claim, but not, except as provided in this Settlement Agreement, with respect to any other available claim or defense as set forth herein, in the applicable Master Policy, or by operation of law, and provided that any Claim paid pursuant to Section10(b) prior to such termination shall remain a paid Claim;

 

		(iii)	the applicable time period for Servicer to submit the documents that MGIC may require Servicer to provide in order to perfect a Claim on a Covered Future Legacy Loan shall terminate on the later of (A) the applicable time period for perfection of a Claim under the applicable Master Policy or (B) three months after the date of such termination of the Settlement Agreement; and

 

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		(iv)	any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action included in the Litigation Action or the Arbitration Action are tolled from the date such Causes of Action were made in such actions and shall continue to be tolled through [***], in addition to any other tolling periods that may apply by operation of law.  Any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in such actions shall be tolled from the [***] and shall continue to be tolled through [***], in addition to any tolling that may apply by operation of law; provided that (x) no such tolling shall apply to such Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to rescissions and denials of Claims on Servicing Only Loans, except any tolling that may apply by operation of law and (y) tolling with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to Curtailment of Claims on Servicing Only Loans shall begin on  [***] and such tolling shall continue through [***], in addition to any tolling that may apply by operation of law. No tolling that occurs pursuant to this Section 4(c)(iv) and/or by operation of law shall have the effect of reviving any Cause of Action that was otherwise barred by any statute of limitations or similar rule of law or equity prior to [***], or in the case of Causes of Action relating to Curtailments of Claims on Servicing Only Loans, prior to [***].

 

	5.	Trustee/Other Consents.

 

		(a)	Obtaining Trustee/Other Consents.  CHL and Servicer shall use reasonable efforts to obtain Trustee/Other Consents.  The Parties will use their best efforts to cooperate with each other in seeking to obtain Trustee/Other Consents, which shall be obtained (or not) by May 15, 2015.

 

		(b)	Contents of Trustee/Other Consent.  Each Trustee/Other Consent shall include confirmation from the Trustee/Other that such Trustee/Other (i) agrees to be bound by Servicer’s determination to enter into the Settlement Agreement on behalf of such Trust/Other for which Trustee/Other Consent is being given, and (ii) consents to Servicer, as the servicer or the agent, as applicable, entering into this Settlement Agreement on behalf of such Trust/Others and the Trustee/Others, in each case of clauses (i) and (ii) above, consistent with customary conditions, assumptions and/or qualifications that do not alter the terms of this Settlement Agreement or impede any Party from enforcing the terms of the Settlement Agreement against the Trustee/Other that provides such Trustee/Other Consent.  If Servicer acts as an agent for a successor servicer of Subject Loans in seeking Trustee/Other Consent, the appointment of Servicer as agent shall: (x) provide that Servicer is authorized, in Servicer’s discretion: (1) to provide to the Trustee instruments that Servicer will provide in connection with obtaining the Trustee/Other Consent from such Trustee, (2) to direct the Trustee to ratify Servicer’s actions in connection with the Settlement Agreement; and (y) acknowledge Servicer’s authority to settle on behalf of the Trust/Other, claims under and/or with respect to the Master Policy.

 

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		(c)	Termination of Settlement Agreement for Failure to Obtain Trustee/Other Consent.

 

		(i)	If Trustee/Other Consent is not obtained from the Trustee/Other(s) holding at least seventy percent (70%) of the aggregate number of Subject Loans by the close of business on May 15, 2015, MGIC, on the one hand, and CHL and Servicer, on the other, may terminate this Settlement Agreement by written notice to the other Parties within thirty (30) days thereafter, provided that no Party shall be entitled to so terminate this Settlement Agreement if it has breached its obligation to cooperate in seeking to obtain the Trustee/Other Consent.

 

		(ii)	If no Implementation Date has occurred by June 1, 2015 (effective as of May 31, 2015), MGIC, on the one hand, and CHL and Servicer, on the other hand, may terminate this Settlement Agreement by written notice to the other Parties within thirty (30) days thereafter

 

		(iii)	The effect of any termination of this Settlement Agreement pursuant to this Section 5(c) shall be as provided in Section 4(c).

 

		(d)	Failure to Obtain Trustee/Other Consents.  If the Implementation Date has occurred, CHL/PLS Loans that do not receive the requisite Trustee/Other Consent within the time period set forth in Section 5(a) shall become Non-Consenting Loans.  MGIC may effect rescission or denial of the Claims with respect to any Non-Consenting Loans for which MGIC has communicated an intent to complete a rescission or denial after October 31, 2011 and on or before the Implementation Date, without regard to the passage of time, and CHL and Servicer hereby waive any claim or defense as to the lack of timely assertion of any such rescission or denial with respect to any such Claim.  MGIC may effect curtailments (including, for the avoidance of doubt, Curtailments) with respect to any Non-Consenting Loans.  The applicable time period by which Servicer must submit the documents that MGIC may require Servicer to provide in order to perfect a Claim with respect to a Non-Consenting Loan that is a Covered Future Legacy Loan shall terminate on the date that is the later of (A) date of termination of the applicable time period for perfection of a Claim under the applicable Master Policy and (B) three months after the Implementation Date.  When finalized pursuant to Section 3(b)(ii), MGIC shall follow its normal business practices with respect to premium refunds with respect to the Non-Consenting Loans.

 

	6.	Dismissal of Arbitration Action and Litigation Action.

 

		(a)	No Dismissals if Trustee/Other Consents Not Obtained.  If the Trustee/Other Consents are not obtained within the time and in the amounts specified in Section 5, there shall be no dismissals of the Litigation Action or the Arbitration Action pursuant to this Settlement Agreement (except for any dismissal without prejudice of the Arbitration Action that may be made under Section 6(c)), and this Settlement Agreement may be terminated as provided in Section 5.

 

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		(b)	No Action or Assistance.  After the Original Agreement Signing Date, neither CHL nor Servicer will take any action, or provide any assistance to any third party, in connection with the Litigation Action, the Arbitration Action, or any other litigation or arbitration action that is intended or reasonably could be expected to be adverse to or inconsistent with the intent, terms, and conditions of this Settlement Agreement and/or the MGIC/BANA Settlement Agreement, including, but not limited to, the releases pursuant to Section 14 by CHL and Servicer; provided that CHL and/or Servicer may take such actions or provide such assistance (i) if and to the extent that CHL and/or Servicer has a contractual obligation to take such action or to provide such assistance to such third party, and CHL and/or Servicer, as applicable, gives written notice to MGIC within twenty (20) business days after taking such action or providing such assistance, or (ii) for the avoidance of doubt, if this Settlement Agreement is terminated.

 

		(c)	Stay of Arbitration Action.  Upon the Original Agreement Signing Date, the Parties took the necessary steps to stay the Arbitration Action through the earlier of (i) the expiration of the time period set forth in Section 5 for obtaining Trustee/Other Consent, to the extent that any part of the Arbitration Action is not earlier dismissed with prejudice pursuant to Section 6(d) and/or the MGIC/BANA Settlement Agreement, and (ii) the termination of this Agreement.  Following the Signing Date, if the panel in the Arbitration Action does not agree to continue the stay, then each of CHL and Servicer shall take all steps necessary to dismiss the Arbitration Action without prejudice within thirty (30) days of such refusal to agree to a stay, and any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action included in the Litigation Action and the Arbitration Action are tolled from the date such Causes of Action were made in such actions and shall continue to be tolled through the earlier of (i) [***] and (ii) [***], in addition to any other tolling periods that may apply (x) by operation of law or (y) to the Non-Consenting Loans pursuant to Section 6(e).  Any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in such actions shall be tolled from [***] and shall continue to be tolled through the earlier of (i) [***] and (ii) [***], in addition to any tolling that may apply by operation of law; provided that (x) no such tolling shall apply to such Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to rescissions and denials of Claims on Servicing Only Loans, except any tolling that may apply by operation of law and (y) tolling with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to Curtailment of Claims on Servicing Only Loans shall begin on [***] and such tolling shall continue through the earlier of (i) [***] and (ii) [***], in addition to any tolling that may apply by operation of law.  No tolling that occurs by virtue of this Section 6(c) and/or by operation of law shall have the effect of reviving any Cause of Action that was barred by any statute of limitations or similar rule of law or equity prior to [***], or in the case of Causes of Action relating to Curtailments of Claims on Servicing Only Loans, prior to [***].

 

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		(d)	Dismissals of Countrywide PLS Loans and Third Party PLS/Other Loans.  As soon as practicable after a Trustee/Other Consent has been obtained (or on such later date as MGIC shall agree), each of CHL and Servicer shall take all necessary steps to dismiss the Arbitration Action with prejudice as to the Countrywide PLS Loans and Third Party PLS/Other Loans with respect to which such Trustee/Other Consents have been obtained, and such dismissal shall be substantially in the form of Stipulation and Order of Dismissal on Exhibit J.

 

		(e)	Dismissals of Non-Consenting Loans and the Litigation Action.  As soon as practicable after the identification of the Non-Consenting Loans pursuant to Section 3(b)(ii), each of CHL and Servicer shall take all necessary steps to dismiss the Litigation Action with prejudice as to all of the Countrywide PLS Loans and Third Party PLS/Other Loans with respect to which Trustee/Other Consent has been obtained, and to dismiss the Arbitration Action and the Litigation Action without prejudice as to the Non-Consenting Loans, and such dismissals shall be substantially in the form of Stipulation of Dismissal (with respect to the Litigation Action) and Stipulation and Order of Dismissal (with respect to the Arbitration Action) on Exhibit J.

 

		(i)	Any legal or contractual limitations period and any defense based on the passage of time for any Causes of Action with respect to Non-Consenting Loans included in the Litigation Action or the Arbitration Action that were tolled by the initiation of the Litigation Action or the Arbitration Action shall continue to be tolled for such Causes of Action for [***], in addition to any other tolling periods that may apply by operation of law.  Any legal or contractual limitations period and any defense based on the passage of time for any Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Arbitration Action or the Litigation Action with respect to Non-Consenting Loans shall be tolled from [***] and shall continue to be tolled for such Causes of Action for [***], in addition to any other tolling periods that may apply by operation of law; provided that (x) no such tolling shall apply to such Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to rescissions and denials of Claims on Servicing Only Loans, except any tolling that may apply by operation of law and (y) tolling with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to Curtailment of Claims on Servicing Only Loans shall begin on [***] and such tolling shall continue for [***], in addition to any tolling that may apply by operation of law.    

 

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		(ii)	No tolling that occurs by virtue of this Section 6(e) and/or by operation of law shall have the effect of reviving any Cause of Action that was barred by any statute of limitations or similar rule of law or equity prior to [***], or in the case of Causes of Action relating to Curtailments of Claims on Servicing Only Loans, prior to [***].

 

		(iii)	Upon the expiration of the [***] tolling period pursuant to Section 6(e)(i), the arbitrators in the Arbitration Action shall be released from any further involvement in the Arbitration Action or with any Non-Consenting Loans.

 

		(f)	Effect of Dismissals with Prejudice.  To the extent that the Litigation Action and the Arbitration Action are dismissed with prejudice with respect to certain Legacy Loans, such Legacy Loans shall be subject to the ADR Procedure as and to the extent set forth in Section 11(a) and any Dispute with respect to such Legacy Loans shall be resolved as and to the extent set forth in Section 11(c).

 

	7.	[Deliberately omitted.]

 

	8.	[Deliberately omitted.]

 

	9.	Disbursements from the Escrow Accounts.  The Parties shall jointly instruct the escrow agent acting under the Escrow Agreement in writing to disburse the funds in the Escrow Accounts as specified below.

 

		(a)	Disbursement from MGIC Escrow Account.  Effective as of the Signing Date, the Parties shall jointly instruct the escrow agent acting under the Escrow Agreement in writing to disburse to MGIC all funds in the MGIC Escrow Account.  The Parties acknowledge and agree that this disbursement to MGIC does not constitute a disbursement to MGIC for the purposes of the grant of a security interest under Section 2(c) above but rather is a return of the funds to MGIC resulting from the amendments to the Original Agreement reflected by this Settlement Agreement.  Servicer releases and discharges any security interest which may have been granted to Servicer by MGIC in Section 2(c)(i) of the Original Agreement and waives any and all claims or interest it has or might have in and to the funds in, or any disbursements from, the MGIC Escrow Account.  Servicer shall promptly file a UCC-3 termination statement with respect to UCC-1 financing statement previously filed by Servicer, such termination statement to reflect the termination of Servicer’s security interest, if any, in the funds in, or such disbursement from, the MGIC Escrow Account.  The MGIC Escrow Account shall then be terminated.

 

		(b)	Disbursement from CHL Escrow Account.  Effective as of the Signing Date, the Parties shall jointly instruct the escrow agent acting under the Escrow Agreement in writing to disburse the funds in the CHL Escrow Account to CHL in excess of (x) [***] plus (y) any pending amounts for which MGIC is asserting an indemnification claim against CHL as of the Signing Date. The Parties acknowledge and agree that this disbursement to CHL does not constitute a disbursement to CHL for the purposes of the grant of a security interest under Section 2(c)(ii) of the Original Agreement but rather is a return of certain of the funds to CHL resulting from the amendment to the Original Agreement reflected by this Settlement Agreement.  MGIC waives any and all claims or interest it has or might have in and to the funds in, or any disbursements from, the CHL Escrow Account.

 

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		(c)	Periodic Disbursement of CHL Escrow Amount.  The Parties shall jointly instruct the escrow agent to disburse the remaining funds in the CHL Escrow Account as follows:

 

		(i)	To MGIC: Within ten (10) days after each determination that CHL is required to indemnify MGIC pursuant to Section 15, the amount of funds from the CHL Escrow Amount and associated interest to compensate MGIC for such indemnification obligation; and

 

		(ii)	To CHL: Within ten (10) days after the end of each calendar quarter following the Implementation Date, an amount equal to ten percent (10%) of (x) the funds remaining in the CHL Escrow Account after the disbursement pursuant to Section 9(b), minus (y) any pending amounts for which MGIC is asserting an indemnification claim against CHL at the time of such disbursement.  On the tenth such calendar quarter end, all funds remaining in the CHL Escrow Account, after deduction of any pending amounts for which MGIC is asserting an indemnification claim against CHL at the time of such disbursement, shall be disbursed to CHL. The Parties acknowledge and agree that any such disbursement to CHL does not constitute a disbursement to CHL for the purposes of the grant of a security interest under Section 2(c)(ii) of the Original Agreement. Upon disbursement of all of the funds from the CHL Escrow Account, MGIC shall promptly file a UCC-3 termination statement with respect to UCC-1 financing statement previously filed by MGIC, such termination statement to reflect the termination of MGIC’s security interest, if any, in the funds in, or such disbursements from, the CHL Escrow Account.  The CHL Escrow Account shall then be terminated.

 

		(d)	Termination of Settlement Agreement.  Within ten (10) days after the Settlement Agreement is terminated, the Parties shall jointly instruct the escrow agent to disburse to CHL all of the funds in the CHL Escrow Account. MGIC shall promptly file a UCC-3 termination statement with respect to the UCC-1 financing statement previously filed by MGIC, such termination statement to reflect the termination of MGIC’s security interest, if any, in the funds in, or any disbursements from, the CHL Escrow Account. The CHL Escrow Account shall then be terminated.

 

		(e)	Accounts for Payments.  Absent any other signed agreement by the Parties, the Parties shall jointly instruct the escrow agent to complete any disbursement as provided in Section 17(b), subject to change as provided in Section 17(c).

 

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	10.	Treatment of Subject Loans.

 

		(a)	Pending Rescission Loans.  As soon as practicable after the Implementation Date, MGIC shall rescind insurance coverage on the Pending Rescission Loans and if such coverage has already been rescinded, coverage will remain rescinded.  No Claim shall be processed for payment for such loans and as of the Implementation Date, none of CHL, Servicer or the Trustee/Other(s) shall have any rights to challenge, dispute, or otherwise attempt to recover any amounts with respect to such Pending Rescission Loans.

 

		(b)	Past Coverage Determination Loans.  As of the Implementation Date, (i) all actions heretofore taken by MGIC to rescind or deny Claims on the Past Coverage Determination Loans are agreed to be final and (ii) none of CHL, Servicer or the Trustee/Other(s) shall have any rights to challenge, dispute, or otherwise attempt to recover any amounts with respect to such Past Coverage Determination Loans.

 

		(c)	Premium Refunds.  As soon as practicable after the Implementation Date, MGIC shall pay to Servicer (and, where already paid, Servicer shall be entitled to retain), for the benefit of the applicable Trust/Other, all premium refunds due on Past Coverage Determination Loans and Pending Rescission Loans in accordance with the terms of the applicable Master Policy.  The Parties agree to cooperate with each other in good faith to avoid the escheatment of premium refunds after the Signing Date.  Any amounts of premium refunds previously escheated shall be considered as already paid.

 

		(d)	Past Paid Loans, Decisioned Servicing Only Loans, Recently Paid Loans, Recently Paid Servicing Only Loans.

 

		(i)	Effective upon the Implementation Date, all Curtailments and Policy Adjustments on Past Paid Loans and Decisioned Servicing Only Loans shall be deemed final as of the Cut-off Date without regard to the pendency of any appeals filed by Servicer and without any offset, credit, disgorgement, or any other adjustments.  Neither MGIC nor any of CHL, Servicer or the Trustee/Other(s) shall have any further rights to challenge, dispute, appeal or otherwise attempt to recover any amounts with respect to Curtailments or Policy Adjustments on Past Paid Loans or Decisioned Servicing Only Loans, provided that nothing herein affects (x) MGIC’s obligations to process Supplemental Claims for all Past Paid Loans and Decisioned Servicing Only Loans, which Supplemental Claims may continue to be submitted and shall be processed (including denial thereof on timeliness or other grounds) by MGIC in the ordinary course; or (y) a Third Party Servicer’s ability to appeal Policy Adjustments that MGIC made on Past Paid Loans and Decisioned Servicing Only Loans for which the Claim was filed by a Third Party Servicer.

 

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		(ii)	Effective upon the Implementation Date, all Curtailments and Policy Adjustments on Recently Paid Loans and Recently Paid Servicing Only Loans shall be deemed final as of the Implementation Date without regard to the pendency of any appeals filed by Servicer and without any offset, credit, disgorgement, or any other adjustments.  Neither MGIC nor any of CHL, Servicer or the Trustee/Other(s) shall have any further rights to challenge, dispute, appeal or otherwise attempt to recover any amounts with respect to Curtailments or Policy Adjustments on Recently Paid Loans and Recently Paid Servicing Only Loans, provided that nothing herein affects (x) MGIC’s obligations to process Supplemental Claims for all Recently Paid Loans and Recently Paid Servicing Only Loans, which Supplemental Claims may continue to be submitted and shall be processed (including denial thereof on timeliness or other grounds) by MGIC in the ordinary course; or (y) a Third Party Servicer’s ability to appeal Policy Adjustments that MGIC made on Recently Paid Loans and Recently Paid Servicing Only Loans for which the Claim was filed by a Third Party Servicer.

 

		(e)	Recently Rescinded Loans.  As soon as practicable after the Implementation Date, MGIC shall determine whether a Claim with respect to a Recently Rescinded Loan is a Perfected Claim and shall process any such Perfected Claim in accordance with the provisions of Section 10(g); provided that the time periods in Section 10(g)(i) shall not apply and in lieu thereof Servicer shall perfect a Claim for a Recently Rescinded Loan in accordance with the time period set forth in the applicable Master Policy (except that Servicer shall have [***] from the later of (A) the Implementation Date and (B) the date that MGIC provides written notice to Servicer of the documents on Exhibit B required to perfect the Claim, to submit all documents set forth on Exhibit B).  To the extent MGIC has communicated an intent to complete a Coverage Rescission on any Recently Rescinded Loan, but has not yet completed such Coverage Rescission, all such communications shall be deemed withdrawn.

 

		(f)	Covered Future Legacy Claims Processed After the Signing Date.  Effective as of the Signing Date, and until this Section 10(f) ceases to be applicable pursuant to Section 10(f)(vi):

 

		(i)	MGIC shall determine whether a Covered Future Legacy Claim is a Perfected Claim (including the applicable time period for perfection of a Claim), and process any such Perfected Claim in accordance with the applicable Master Policy, except that (A) the documents that MGIC may require Servicer to provide in order to establish a Covered Future Legacy Claim as a Perfected Claim shall be limited to those documents set forth on subdivision I of Exhibit B and (B) MGIC may effect an Exclusion only if the basis for such Exclusion is set forth in Exhibit F, which claimed Exclusion shall be accompanied by a contemporaneous writing in the form used by MGIC that specifies the basis for such Exclusion.  For the avoidance of doubt, in the course of processing Covered Future Legacy Claims pursuant to this Section 10(f)(i), MGIC may request, and Servicer shall use best efforts to provide, all information reasonably requested by MGIC, including loan origination and servicing-related documents; provided that unless such documents are also set forth on subdivision I of Exhibit B, Servicer’s failure to provide any document in response to a request by MGIC pursuant to this Section 10(f)(i) shall not affect the determination of whether a Covered Future Legacy Claim is a Perfected Claim.

 

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		(ii)	If MGIC denies a Claim processed as contemplated by the first sentence of Section 10(f)(i) prior to Section 10(f)(i) ceasing to be applicable pursuant to Section 10(f)(vi), then Servicer or CHL shall be entitled to dispute such denial exclusively in accordance with the ADR Procedure set forth in Section 11(b), on and after the Implementation Date, provided that Servicer shall give MGIC notice in writing for purposes of Section 11(b)(ii)(A) within nine (9) months of the Implementation Date.

 

		(iii)	If MGIC denies a Claim on a Covered Future Legacy Loan (other than a Claim on a Potential Curtailment Loan or a loan for which Servicer does not have responsibility as the servicer) processed as contemplated by the second sentence of Section 10(f)(i) for  failure to provide loss mitigation notes, collection notes, or payment histories set forth on subdivision I of Exhibit B, then as soon as practicable following the Implementation Date, MGIC will reverse that denial and process the Claim as provided in Section 10(g), provided that this Section 10(f)(iii) does not apply to any Non-Consenting Loan.

 

		(iv)	If MGIC denies a Claim processed as contemplated by the first sentence of Section 10(f)(i)  and such Claim is with respect to a Non-Consenting Loan or a loan for which a Trustee/Other gives notice to CHL or Servicer that the Trustee/Other has determined not to provide Trustee/Other Consent, the applicable time period for Servicer to submit the documents that MGIC may require Servicer to provide in order to establish a Claim as a Perfected Claim shall terminate on the date that is the later of (A) the date of termination of the applicable time period for perfection of a Claim under the applicable Master Policy and (B) [***] after the earlier of (x) termination of this Agreement and (y) the Implementation Date.

 

		(v)	Except as otherwise specifically required by this Agreement, MGIC will continue to process Claims in the ordinary course consistent with the Master Policy.

 

		(vi)	Sections 10(f)(i) and 10(f)(ii) shall cease to be applicable after (A) the Implementation Date, (B) the expiration of the time period set forth in Section 5 for obtaining Other Consent, with respect to Non-Consenting Loans, and (C) for the avoidance of doubt, termination of this Agreement.

 

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		(g)	Covered Future Legacy Claims.  After the Implementation Date, Covered Future Legacy Claims shall be perfected and processed in accordance with the following provisions:

 

		(i)	Perfection of Claims. Servicer shall submit and perfect a Covered Future Legacy Claim in the manner set forth in the applicable Master Policy; provided that the documents that MGIC may require Servicer to provide in order to establish a Covered Future Legacy Claim (other than a Claim on a Potential Curtailment Loan) as a Perfected Claim shall be limited to those documents set forth on subdivision II of Exhibit B.  Servicer shall submit and perfect Covered Future Legacy Claims in accordance with the time period set forth in the applicable Master Policy; provided that Servicer shall have [***] from the title transfer date (i.e., foreclosure/sheriff’s sale, short sale or deed-in-lieu) to submit all subdivision II of Exhibit B documents in relation to certificates issued under Master Policy Form 71-7135.

 

		(ii)	Exclusions.  MGIC may effect an Exclusion with respect to any Covered Future Legacy Claim only if the basis for such Exclusion is set forth in Exhibit F.  Such claimed Exclusion shall be accompanied by a contemporaneous writing in the form used by MGIC that specifies the basis for such Exclusion.  Servicer and/or CHL shall have the right to challenge and dispute MGIC’s assertion of any Exclusion solely pursuant to the ADR Procedure.

 

		(iii)	Payment of Perfected Covered Future Legacy Claims.

 

		(A)	MGIC shall effect no Coverage Rescission on any Covered Future Legacy Claim.

 

		(B)	MGIC shall pay the Settlement Percentage Claim Payment with respect to such Covered Future Legacy Claim.

 

		(C)	A Covered Future Legacy Claim for which Trustee/Other Consent is sought will be paid by MGIC pursuant to the terms of this Settlement Agreement only after the Implementation Date for such Covered Future Legacy Loan.

 

		(D)	MGIC shall make Claim payments in timeframes consistent with the appropriate Master Policy.

 

		(E)	Any payment of a Perfected Claim shall be accompanied by an EOB in the form used by MGIC that specifies the basis for such payment under the applicable Master Policy and as permitted under this Settlement Agreement.

 

		(F)	The remedy for untimely payment of Perfected Claims shall be determined solely by reference to the applicable Master Policy.

 

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		(iv)	No Curtailments.  MGIC shall pay all Covered Future Legacy Claims (other than Potential Curtailment Loans and loans serviced by a Third Party Servicer) without any Curtailment whatsoever.  Notwithstanding the foregoing, in the event that Servicer reacquires servicing of any Covered Future Legacy Loan from a Third Party Servicer after the Implementation Date, then MGIC may effect Curtailments on such Covered Future Legacy Claim based on Servicer’s servicing activities or failures to act on such Covered Future Legacy Loan subsequent to the date on which servicing was reacquired.

 

		(v)	Potential Curtailment Loans.  Servicer shall submit and perfect a Claim on a Potential Curtailment Loan in the manner set forth in the applicable Master Policy; provided that the documents that MGIC may require Servicer to provide in order to establish a Claim on a Potential Curtailment Loan as a Perfected Claim shall be limited to those documents set forth on subdivision I of Exhibit B.  Servicer shall submit and perfect Claims on Potential Curtailment Loans in accordance with the time period set forth in the applicable Master Policy; provided that Servicer shall have [***] from the title transfer date (i.e., foreclosure/sheriff’s sale, short sale or deed-in-lieu) to submit all subdivision I of Exhibit B documents in relation to certificates issued under Master Policy Form 71-7135.  Sections 10(g)(ii) and (iii) shall apply to Claims on Potential Curtailment Loans.  Potential Curtailment Loans shall be subject to Curtailment only to the extent curtailments are permitted under the terms of the applicable Master Policy. Any claimed Curtailment on a Potential Curtailment Loan shall be accompanied by an EOB that specifies the basis for such Curtailment.  The Parties reserve all rights and defenses available under the applicable Master Policy and applicable law with respect to any Curtailment on Potential Curtailment Loans.

 

		(h)	Future Servicing Only Claims.  After the Implementation Date, Future Servicing Only Claims shall be perfected and processed in accordance with the following provisions:

 

		(i)	Future Servicing Only Claims.  MGIC shall pay all Future Servicing Only Claims without any Curtailment whatsoever.  Notwithstanding the foregoing, in the event that BANA reacquires servicing of any Future Servicing Only Loan from a Third Party Servicer after the Implementation Date, then MGIC may effect Curtailments on such Future Servicing Only Loan based on BANA’s servicing activities or failures to act on such Future Servicing Only Loan subsequent to the date on which servicing was reacquired.

 

		(ii)	Rescissions or Denials on Servicing Only Loans.  Nothing in this Settlement Agreement shall limit MGIC’s rescissions or denials on any Servicing Only Loans and any such rescissions and denials shall continue to be governed by the terms of the applicable Master Policy. MGIC and Servicer reserve all rights and defenses available under the applicable Master Policy and applicable law with respect to rescissions of coverage and denials of coverage or Claims on any Servicing Only Loans.

 

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		(iii)	Perfection of Claims. Servicer shall submit and perfect a Future Servicing Only Claim in the manner set forth in the applicable Master Policy; provided that the documents that MGIC may require Servicer to provide in order to establish a Future Servicing Only Claim as a Perfected Claim shall be limited to those documents set forth on subdivision III of Exhibit B.  Servicer shall submit and perfect Future Servicing Only Claims in accordance with the time period set forth in the applicable Master Policy; provided that Servicer shall have one year from the title transfer date (i.e., foreclosure/sheriff’s sale, short sale or deed-in-lieu) to submit all subdivision III of Exhibit B documents in relation to certificates issued under Master Policy Form 71-7135.

 

		(iv)	Payment of Perfected Future Servicing Only Claims

 

		(A)	MGIC shall pay in the ordinary course of business the Servicing Only Settlement Percentage Claim Payment with respect to Servicing Only Loans.

 

		(B)	A Future Servicing Only Claim for which Trustee/Other Consent is sought will be paid by MGIC pursuant to the terms of this Settlement Agreement only after the Implementation Date for such Future Servicing Only Claim.

 

		(C)	MGIC shall make Claim payments in timeframes consistent with the appropriate Master Policy.

 

		(D)	Any payment of a Perfected Claim shall be accompanied by an EOB in the form used by MGIC that specifies the basis for such payment under the applicable Master Policy and any permitted Curtailment hereunder.

 

		(E)	The remedy for untimely payment of Perfected Claims shall be determined solely by reference to the applicable Master Policy.

 

		(i)	Third Party Servicer Curtailment.  Except as set forth in Section 11(a), nothing in this Settlement Agreement affects the rights or obligations of MGIC or any Third Party Servicer with respect to Third Party Servicer Curtailments.  If MGIC assesses a Third Party Servicer Curtailment on a Covered Future Legacy Claim or a Future Servicing Only Loan, the accompanying EOB will inform the Third Party Servicer as to the basis for the Third Party Servicer Curtailment.

 

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		(j)	Policy Adjustments.  Nothing in this Settlement Agreement affects the rights of MGIC to make Policy Adjustments on Subject Loans.

 

		(k)	Filing and Processing of Appeals of Claims.

 

		(i)	Appeals of Claims Filed by Servicer.

 

		(A)	Effective as of the Signing Date, Servicer shall suspend the filing of Appeals of Claims for the purposes of contesting MGIC’s Curtailments on Subject Loans (except with respect to Potential Curtailment Loans) and shall not pursue any pending Appeals of Claims on such Curtailments.  MGIC agrees that Servicer’s suspension of such activities shall in no way affect Servicer’s or the rights of Trusts/Others under the Master Policy and shall not be considered a waiver of either Servicer’s or the Trusts/Others’ rights under the Master Policy or otherwise to contest Curtailments upon termination of this Settlement Agreement.

 

		(B)	Any and all claims or defenses, including statutory or contractual defenses, that MGIC may have arising from the passage of time for the submission of Appeals of Claims on Subject Loans (except with respect to Potential Curtailment Loans) are waived effective from [***] through the earlier of either (x) [***] or (y) [***].

 

		(ii)	Appeals of Claims Filed by Third Party Servicers.

 

		(A)	Effective as of the Signing Date, MGIC will suspend its review of that portion of Appeals of Claims filed by Third Party Servicers which relate to Curtailments on Subject Loans (except with respect to Potential Curtailment Loans).

 

		(B)	Any and all claims or defenses, including statutory or contractual defenses, that Servicer may have against MGIC arising from the passage of time for MGIC’s review and response to such Appeals of Claims on Subject Loans (except with respect to Potential Curtailment Loans) are waived effective from [***] through the earlier of either (x) [***] or (y) [***].

 

		(l)	Request for Additional Documents.  On and after the Implementation Date, MGIC may request from time to time, and Servicer and CHL shall use reasonable efforts to provide, the documents set forth on Exhibit C with respect to Covered Future Legacy Loans and Future Servicing Only Loans; provided that unless such documents are also set forth on subdivision I, II, or III (as applicable) of Exhibit B, Servicer’s or CHL’s failure to provide any document set forth on Exhibit C in response to a request by MGIC pursuant to this Section 10(l) shall not affect the determination of whether a Claim is a Perfected Claim.

 

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		(m)	Delivery of Documents to Servicer.  If Servicer is not the servicer with respect to any Subject Loan, MGIC shall have no obligation to provide to Servicer any documents other than the Interim Reconciliation Loan Reports and the Subject Loan Reports, provided that if Servicer is unable after reasonable efforts to obtain such documents directly from the applicable servicer and, if applicable, the investor does not object to MGIC providing such documents to Servicer, then MGIC will use reasonable efforts to provide such documents to Servicer, without undue burden or expense on the part of MGIC as determined on a cumulative basis with respect to all such requests.

 

		(n)	Supplemental Claims for Certain Loans.  On and after the Implementation Date, MGIC shall make payment pursuant to the provisions of the Servicing Guide relevant to the filing and paying of Supplemental Claims on valid and allowable Supplemental Claims on Covered Future Legacy Loans and Future Servicing Only Loans received by MGIC within 90 days of the initial Claim payment date at the Legacy Loan Settlement Percentage in the same manner as claims for Covered Future Legacy Claims and at the Servicing Only Settlement Percentage in the same manner as claims for Future Servicing Only Loans, provided that nothing herein otherwise affects MGIC’s ability to deny such Supplemental Claims on timeliness or other grounds as may be permitted under the applicable Master Policy.  If, however, MGIC’s customary practice as to any particular type of Supplemental Claim is to waive the fact that the Supplemental Claim has not been received within 90 days of the initial Claim payment date, it shall follow that customary practice for purposes of Supplemental Claims of that type received pursuant to this Section 10(n).  Any disputes regarding payment on Supplemental Claims, other than a dispute regarding the application of the preceding sentence, shall be resolved as described in the final sentence of Section 11(a), and any disputes regarding the application of the preceding sentence shall be resolved pursuant to Section 11(c).

 

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	11.	Alternative Dispute Resolution.

 

		(a)	Applicability of ADR Procedure.  On and after the Implementation Date, all disputes shall be resolved exclusively in accordance with the ADR Procedure set forth in Section 11(b) below if: (i) the dispute is regarding (A) any Exclusion effected by MGIC in respect of any Covered Future Legacy Claim; (B) any failure to provide documents set forth on subdivision II or subdivision III (as applicable) of Exhibit B in order to establish a Claim as a Perfected Claim; (C) whether a reduction of a payment of a Claim on one or more Covered Future Legacy Loans or Future Servicing Only Loans is a Curtailment or a Policy Adjustment; (D) the amount of, or whether the underlying facts support the application of, any Policy Adjustment on any Covered Future Legacy Loan, Recently Paid Loan, Future Servicing Only Loan or Recently Paid Servicing Only Loan, or (E) the allocation of responsibility for servicing-related activities or failures to act on a Subject Loan as between Servicer and a Third Party Servicer; provided that if a dispute under Section 11(a)(i)(E) relates to a Past Paid Loan or a Decisioned Servicing Only Loan, then the dispute shall be resolved exclusively in accordance with the ADR Procedure only if and so long as MGIC is seeking indemnification pursuant to this Settlement Agreement with respect to a claim made on MGIC by a Third Party Servicer with respect to such Past Paid Loan or Decisioned Servicing Only Loan, and (ii) Servicer was a servicer of such loan at the time the basis for such dispute arose; and (iii) Servicer is the servicer of such loan at the time of such dispute; and (iv) the applicable Trustee/Other Consent has been obtained at the time Servicer provides notice of such dispute pursuant to Section 11(b)(i)(A).  On and after the Implementation Date, all disputes may, at the option of the Servicer, be resolved in accordance with the ADR Procedure set forth in Section 11(b) below if (i) the dispute is regarding any failure to provide documents set forth on subdivision III of Exhibit B in order to establish a Future Servicing Only Claim as a Perfected Claim, and (ii) Servicer was a servicer of such Subject Loan at the time the basis for such dispute arose; and (iii) Servicer is the servicer of such Subject Loan at the time of such dispute; and (iv) the applicable Trustee/Other Consent has been obtained at the time Servicer provides notice of such dispute pursuant to Section 11(b)(i)(A).   If Servicer is not the servicer at the time of a dispute under Section 11(a)(i)(A)-(D), the dispute nonetheless may be resolved pursuant to this ADR Procedure if Servicer represents to MGIC’s reasonable satisfaction that: 1) no Third Party Servicer, subservicer, or other party has an interest in the dispute; or 2) each Third Party Servicer, subservicer, or other party that has an interest in the dispute either (x) has agreed to participate as a party to the ADR Procedure and to be bound by the resolution thereof under all of the terms of this Settlement Agreement, (y) has duly appointed Servicer as agent of such Third Party Servicer, subservicer, or other party, or (z) shall nonetheless be bound by the resolution thereof.  If Servicer is not the servicer at the time of a dispute under Section 11(a)(i)(E), the dispute nonetheless may be resolved pursuant to the ADR Procedure if Servicer represents to MGIC’s reasonable satisfaction that: 1) no Third Party Servicer, subservicer, or other party has an interest in the dispute; or 2) the Third Party Servicer is bound by the resolution thereof.  If Servicer is not the servicer at the time of the dispute, and Servicer is not able to make the applicable representations in the preceding sentences, the dispute shall be resolved pursuant to the terms of the applicable Master Policy rather than the ADR Procedure.  All disputes regarding any disallowance of a Supplemental Claim by MGIC in respect of any Subject Loan shall be resolved in the same manner and subject to the same conditions and limitations as other disputes resolved under the ADR Procedure, including without limitation, including such dispute in a Claim Group; provided, however, that for purposes of resolving disputes about disallowance of Supplemental Claims, (i) any reference in this Section 11(a) to a “Claim” shall instead be to “disallowance of a Supplemental Claim”, (ii) the bases for the disallowance of a Supplemental Claim shall be those contained in the terms of the applicable Master Policy, the provisions of the Servicing Guide relevant to the filing and paying of Supplemental Claims, and this Settlement Agreement, and (iii) the arbitrator shall be bound by the terms of this Settlement Agreement, the provisions of the Servicing Guide relevant to the filing and paying of Supplemental Claims, and the applicable Master Policy.

 

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		(b)	ADR Procedure.  The ADR Procedure is as follows:

 

		(i)	Informal Resolution.

 

		(A)	Notice by Servicer.  Servicer shall provide written notification to MGIC of such dispute within sixty (60) days from the date MGIC first delivers initial written notification of MGIC’s determination of facts forming a basis for the dispute to Servicer (including on behalf of CHL as originator or acquirer of disputed loan), the servicer, the subservicer, or other party that may have an interest in the dispute.  Notification by Servicer shall specify the basis upon which Servicer and/or CHL believes that MGIC’s determination is improper under the terms of the applicable Master Policy and this Settlement Agreement.  A failure by Servicer to provide notification to MGIC in this Section 11(b)(i)(A) shall not constitute a waiver of Servicer’s or CHL’s ability to invoke the ADR Procedure.

 

		(B)	Response from MGIC.  Within sixty (60) days of MGIC’s receipt of a notification from Servicer pursuant to the first sentence of Section 11(b)(i)(A), MGIC shall provide a written response addressing the written submission that MGIC’s determination is improper, and if applicable, why such submission does not serve to reverse MGIC’s decision.  A failure by MGIC to provide a response to Servicer and/or CHL pursuant to this Section 11(b)(i)(B) shall not constitute a waiver of MGIC’s ability to participate in the ADR Procedure set forth in Section 11(b).

 

		(C)	Continued Informal Discussions.  For up to sixty (60) days after Servicer’s and/or CHL’s receipt of MGIC’s response pursuant to Section 11(b)(i)(B), the Parties will continue to attempt to resolve their dispute informally.

 

		(ii)	Formal Resolution.  A continuing dispute for which Servicer and/or CHL has invoked this ADR Procedure shall be resolved as follows:

 

		(A)	Notice of Claim Group.  If Servicer and/or CHL wishes to continue disputing MGIC’s determination, Servicer shall notify MGIC in writing of the existence of a Claim Group and of Servicer’s and/or CHL’s intention to pursue the ADR Procedure with respect to the Claim Group within nine (9) months from the date that Servicer or a Third Party Servicer receives initial written notification of MGIC’s determination that is the basis under Section 11(a) for invoking this ADR Procedure.  Each claim included in a Claim Group shall have been the subject of a written notification of MGIC’s determination of an Exclusion, curtailment, or Policy Adjustment pursuant to an EOB, as applicable, within such nine (9) month period, provided that if the dispute is within the proviso to Section 11(a)(i)(D), then such claim must have been made within nine (9) months from the date that MGIC sought indemnification from Servicer and/or CHL.  A failure by Servicer to provide notification to MGIC under this Section 11(b)(ii)(A) shall constitute a waiver of Servicer’s and CHL’s ability to invoke the ADR Procedure set forth in Section 11(b)(ii).  Servicer and CHL shall be entitled to pursue the ADR Procedure for multiple Claim Groups within any nine (9) month period, provided that no Subject Loan shall be included in more than one Claim Group.

 

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		(B)	Administration of Arbitration.  The disputes in the first Claim Group shall be resolved by an arbitrator from the American Arbitration Association, the second by a JAMS arbitrator, and so on.  Servicer or CHL shall deliver the notice provided to MGIC pursuant to Section 11(b)(ii)(A) to the American Arbitration Association or JAMS, as applicable.

 

		(C)	Appointment of Arbitrator.  A single disinterested arbitrator who has no prior business relationship with any Party (other than acting as an arbitrator or mediator) shall be appointed to resolve a Claim Group.  The arbitrator shall be appointed by the Parties either by mutual agreement or through the selection process prescribed by the American Arbitration Association or JAMS, whichever is administering the arbitration.

 

		(D)	Written Submissions.  For each claim in the Claim Group, MGIC shall submit in writing within thirty (30) business days after appointment of the arbitrator no more than ten (10) pages of double-spaced written argument plus any supporting documentation; and Servicer and/or CHL shall submit a single response in writing with no more than ten (10) pages of double-spaced written argument plus any supporting documents within thirty (30) business days after it receives MGIC’s submission.  MGIC shall be allowed a five (5) page double-spaced written rebuttal for each disputed claim and shall be permitted to submit any additional documents directly responsive to the submission by Servicer and/or CHL within fifteen (15) business days after MGIC has received such submission.

 

		(E)	Production of Documents and Prohibition of Discovery.  Each Party agrees it will not use or produce any document in any formal resolution contemplated by the ADR Procedure in Section 11(b)(ii) unless it has provided such information or produced such document to the other Party prior to or during the process for submission and resolution of the related disputed Claim in connection with the informal dispute resolution procedure pursuant to Section 11(b)(i).  Due to the expedited nature of the ADR Procedure, all discovery, including, but not limited to, interrogatories, document demands, depositions, or subpoenas directed to third parties, is prohibited.

 

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		(F)	Hearing Duration.  For each claim in a Claim Group dispute there shall be a hearing with the arbitrator of no more than ninety (90) minutes in duration.  MGIC will have up to thirty (30) minutes to present oral argument, followed by up to thirty (30) minutes of oral argument, which may be made by Servicer, CHL, or a combination of Servicer and CHL.  MGIC will have up to fifteen (15) minutes of rebuttal.  Any remaining time shall be reserved for questions by the arbitrator.  All hearings shall be conducted via conference call, unless both Parties agree otherwise.

 

		(G)	Location and Seat.  The location of any in person hearing shall be Milwaukee, Wisconsin, but the seat of arbitration shall be San Francisco, California.If the Parties mutually agree that proceedings may take place outside of Milwaukee, Wisconsin, or by telephone or videoconference, the seat of arbitration nevertheless shall remain at San Francisco, California.

 

		(H)	Burden of Proof.  MGIC shall have the burden of proof by a preponderance of the evidence with respect to each disputed claim in a Claim Group.

 

		(I)	Arbitrator Decision.  The arbitrator shall be bound by the terms of this Settlement Agreement and the applicable Master Policy, and shall issue a written decision regarding each disputed claim in the Claim Group within thirty (30) days of the hearing (1) resolving all disputed claims, and (2) accepting either Servicer’s/CHL’s or MGIC’s position on each disputed determination by MGIC set forth in such Party’s submission without rendering a reasoned decision and without a discussion of the reasons therefor.  The arbitrator’s written decision shall be final and binding upon the Parties without further recourse or collateral attack, shall be used for the sole and exclusive benefit of the Parties that participate in such proceeding, shall be binding only with respect to the individual claims in the Claim Group, shall have no precedential effect, shall not benefit any third party (except as set forth in Section 19(b)), and shall not be cited by any Party for any purpose in any other proceeding, except a proceeding to enforce the decision.

 

		(J)	Costs.  All costs of the ADR Procedure contemplated by this Section 11(b) (including the arbitrator’s fees but excluding attorneys’ fees) shall be borne by the Party that is the least successful in such process, as determined by the arbitrator, which shall be determined by comparing (1) the position asserted by each Party on all disputed matters in the Claim Group taken together with (2) the final decision of the arbitrator on all disputed matters in the Claim Group taken together.  For purposes of this Section 11(b)(ii)(J), “disputed matters” and “position asserted” shall be determined by reference to such Party’s submissions, and “Party” shall be MGIC on the one hand, and CHL and/or Servicer, on the other hand.

 

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		(iii)	Counsel.  The Parties may, but are not required to, be represented by counsel in the proceedings described in this Section 11(b).

 

		(c)	Other Dispute.  Any Dispute shall be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association and subject to the Federal Arbitration Act, 9 U.S.C., Sections 1 through 16.  Each Dispute shall be arbitrated by a panel of three disinterested arbitrators, each of whom shall have no prior business relationship with any Party other than acting as an arbitrator under this Settlement Agreement.  No Dispute shall be consolidated with any arbitration concerning a dispute, claim or controversy with any other party.  For purposes of appointment of arbitrators, each of MGIC, on the one hand, and Servicer and/or CHL, as applicable, on the other hand, is entitled to appoint one arbitrator, with the third arbitrator to be appointed by the two already appointed.

 

		(i)	Location and Seat.  The arbitration shall be seated in San Francisco, California, and all proceedings shall take place there.  If the Parties mutually agree that proceedings may take place outside of San Francisco, California, or by telephone or videoconference, San Francisco, California, nevertheless shall remain the seat of the arbitration.

 

	
 

 

	(ii)	Costs.  All costs of the arbitration of any Dispute pursuant to this Section 11(c) (including the arbitrators’ fees, but exclusive of attorneys’ fees) shall be borne by the Party that is the least successful in such arbitration, as determined by the arbitrators, which shall be determined by comparing the position asserted by each Party on the Disputed Matter with the final decision of the arbitrators on the Disputed Matter.  For purposes of this Section 11(c)(ii), the “Disputed Matter” and “position asserted” shall be all matters raised by a Party in its final written presentations submitted to the arbitrators in connection with a Dispute, and “Party” shall be MGIC on the one hand, and CHL and/or Servicer, on the other hand.

 

		(d)	With respect to the resolution of (i) each dispute pursuant to the ADR Procedure in Section 11(b) and (ii) each Dispute pursuant to Section 11(c):

 

		(i)	No Presumption.  No presumption based on MGIC’s role as an insurer shall apply against MGIC.

 

- 37 -

		(ii)	Limitation on Damages.  The arbitrator(s) shall not award any incidental, indirect or consequential damages, including damages for lost profits, punitive or exemplary damages, and the Parties waive any right to recover any such damages.

 

		(iii)	Confirmation of Award.  A Party shall have three (3) months from the date of a written decision to satisfy an award before the other Party may seek confirmation of the award.  A Party may seek confirmation of an award only in a state court located in California.

 

		(iv)	Governing Law.  The Parties agree that New York law shall govern the resolution of any disputes resolved pursuant to the ADR Procedure set forth in Section 11(b) and any Dispute resolved pursuant to Section 11(c); except, however, California state law shall govern the collateral estoppel effect of an award issued pursuant to Sections 11(b) and 11(c), including but not limited to Vandenberg v. Superior Court, 21 Cal. 4th 815 (1999).

 

	12.	Effect of Certain Action by OCI.

 

		(a)	In the event that the OCI indicates in writing that, pursuant to Wisconsin Statute section 645.54, it intends to seek to avoid any payment under this Settlement Agreement or to void any portion of this Settlement Agreement, the Parties shall use good faith efforts to resist such action and shall meet and confer regarding such efforts to resist any such action by the OCI.

 

		(b)	In the event that the OCI, pursuant to Wisconsin Statute section 645.54, obtains a final and non-appealable court order after the Implementation Date: (i) avoiding the payment, and/or granting recovery, of any amount of money paid by MGIC to Servicer or CHL pursuant to this Settlement Agreement, or (ii) voiding any portion of this Settlement Agreement in a way that deprives Servicer (on behalf of the applicable Trust/Other) or CHL of any monetary benefit conferred by the terms of this Settlement Agreement which it would otherwise have obtained, then the Parties, in consultation with the OCI, shall meet and confer regarding the effect of such court order and the potential for modifications to this Settlement Agreement in an attempt to recoup such amount of money, and/or provide CHL or Servicer with, as applicable, a reasonable substitute for the material benefit deprived by such court order.

 

		(c)	If the Parties and the OCI cannot reach agreement within sixty (60) days as to such modifications, then notwithstanding any other provision in this Settlement Agreement, including the releases and covenants set forth in Sections 13 and 14 and the dismissals pursuant to Section 6, CHL and Servicer shall have the right to pursue Causes of Action against MGIC or any successor to MGIC for any and all of the following:

 

		(i)	Past Coverage Determination Loans, Pending Rescission Loans and Decisioned Servicing Only Loans;

 

- 38 -

		(ii)	Each Resolved Covered Future Legacy Loan for which the OCI avoided a payment made by MGIC to or for the benefit of Servicer; and

 

		(iii)	Each Unresolved Covered Future Legacy Loan.

 

		(d)	In the event that CHL or Servicer pursues any Cause of Action available under Section 12(c), then:

 

		(i)	MGIC and any successor to MGIC may assert any defense or counterclaim available to it, under any applicable Master Policy or otherwise, including, but not limited to, any defense by MGIC or any successor to MGIC that it is entitled to rescind coverage or deny or curtail (through a Curtailment or otherwise) a Claim.

 

		(ii)	Any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action included in the Litigation Action or the Arbitration Action are tolled from the date such Causes of Action were made in such actions and shall continue to be tolled through [***], in addition to any other tolling periods that may apply by operation of law.  Any legal or contractual limitations period and any defense based on the passage of time with respect to Causes of Action comprising the Mortgage Insurance Dispute not included in such actions shall be tolled from [***] and shall continue to be tolled through [***], in addition to any tolling that may apply by operation of law, provided that (x) no such tolling shall apply to such Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to rescissions and denials of Claims on Servicing Only Loans, except any tolling that may apply by operation of law and (y) tolling with respect to Causes of Action comprising the Mortgage Insurance Dispute that are not included in the Litigation Action or the Arbitration Action and relating to Curtailment of Claims on Servicing Only Loans shall begin on [***] and such tolling shall continue through [***], in addition to any tolling that may apply by operation of law.  No tolling that occurs by virtue of this Section 12(d) and/or by operation of law shall have the effect of reviving any Cause of Action that was barred by any statute of limitations or similar rule of law or equity prior to [***], or in the case of Causes of Action relating to Curtailments of Claims on Servicing Only Loans, prior to [***].

 

		(iii)	The amount of recovery from MGIC and any successor to MGIC in connection with all such Causes of Action shall not exceed the sum of (x) the Current Liability Amount plus (y) the amount(s) for which the OCI avoided payment, or obtained recovery, pursuant to a court order contemplated by Section 12(b).

 

- 39 -

		(iv)	MGIC shall process and pay Claims under the terms of the applicable Master Policy, subject to MGIC’s rights to rescind, deny, curtail, or correct coverage without regard to the terms of this Settlement Agreement.

 

		(v)	CHL and Servicer shall have no rights, and MGIC shall have no obligations, under Section 11(b).

 

	13.	Release by MGIC Releasors.

 

		(a)	Except as set forth in Sections 12 and 13(d), upon CHL and Servicer dismissing any part of the Arbitration Action or the Litigation Action with prejudice pursuant to Section 6(d) or Section 6(e):

 

		(i)	the MGIC Releasors shall be deemed to release and discharge as of the Implementation Date, the CHL Released Parties and the Bank of America Released Parties from any and all past, present, or future Causes of Action, whether such Causes of Action are known or unknown, foreseen or unforeseen, developed or undeveloped, discoverable or presently incapable of being discovered, relating in any way to any act, event or omission that occurred or should have occurred on or before the Implementation Date with respect to the CHL/PLS Loans and concerning the Mortgage Insurance Dispute, provided that Causes of Action related to Policy Adjustments are released only with respect to Past Paid Loans or Decisioned Servicing Only Loans; for the avoidance of doubt, all of the foregoing released Causes of Action include all Causes of Action that were asserted, could have been asserted, or could have been asserted had there been no jurisdictional bars, by any MGIC Releasor in the Arbitration Action or the Litigation Action; and

 

		(ii)	MGIC, on behalf of itself and all other MGIC Releasors, hereby covenants and agrees, not to initiate, on or after the Implementation Date, any Cause of Action against any of the CHL Released Parties or the Bank of America Released Parties for any of the subject matter released by this Section 13(a), and covenants and agrees not to participate, assist, encourage or cooperate in any such Cause of Action.

 

		(b)	In making a full and complete release as provided in Section 13(a), MGIC expressly waives and relinquishes all rights and benefits, which it has, or may have, under California Civil Code section 1542 or any similar statute in any other jurisdiction.  Section 1542 provides as follows:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

- 40 -

		(c)	MGIC acknowledges that it is aware that it or another MGIC Releasor may hereafter discover facts different from, or in addition to, those which it now knows or believes to be true with respect to the Causes of Action released pursuant to this Section 13.  Notwithstanding any such different or additional facts, this release shall fully discharge each of the CHL Released Parties and the Bank of America Released Parties from any and all Causes of Action released pursuant to this Section 13.

 

		(d)	Notwithstanding anything in this Section 13 to the contrary, and notwithstanding whether such claims were or could have been brought in the Arbitration Action or the Litigation Action, the release given in Section 13(a) does not apply to:

 

		(i)	Any disputes or claims within the scope of Sections 11(a) and (b), and any Dispute within the scope of Section 11(c);

 

		(ii)	Any dispute or claim involving rescissions or denials on Servicing Only Loans;

 

		(iii)	Any disputes or claims involving Curtailments on Potential Curtailment Loans;

 

		(iv)	Any disputes or claims involving Non-Consenting Loans;

 

		(v)	Any disputes or claims regarding payments to be made by CHL or Servicer pursuant to an applicable Master Policy;

 

		(vi)	Any disputes or claims involving Third Party Servicer Curtailments;

 

		(vii)	Any disputes or claims regarding [***]; and

 

		(viii)	For the avoidance of doubt, any disputes or claims involving Policy Adjustments on Past Paid Loans, Recently Paid Loans, Decisioned Servicing Only Loans, and Recently Paid Servicing Only Loans associated solely with the activities of Third Party Servicers.

 

	14.	Release by CHL Releasors and Bank of America Releasors.

 

		(a)	Except as set forth in Sections 12 and 14(d), upon CHL and Servicer dismissing any part of the Arbitration Action or the Litigation Action with prejudice pursuant to Section 6(d) or Section 6(e):

 

		(i)	the CHL Releasors and the Bank of America Releasors shall be deemed to release and discharge as of the Implementation Date, each of the MGIC Released Parties from any and all past, present, or future Causes of Action, whether such Causes of Action are known or unknown, foreseen or unforeseen, developed or undeveloped, discoverable or presently incapable of being discovered, relating in any way to any act, event or omission that occurred or should have occurred on or before the Implementation Date with respect to the CHL/PLS Loans and concerning the Mortgage Insurance Dispute, provided that Causes of Action related to Policy Adjustments are released only with respect to Past Paid Loans or Decisioned Servicing Only Loans; for the avoidance of doubt, all of the foregoing released Causes of Action include all Causes of Action that were asserted, could have been asserted, or could have been asserted had there been no jurisdictional bars, by any CHL Releasor or Bank of America Releasor in the Arbitration Action or the Litigation Action; and

 

- 41 -

		(ii)	CHL, on behalf of itself and all other CHL Releasors, and Servicer, on behalf of itself and all Bank of America Releasors, hereby covenant and agree, not to initiate, on or after the Implementation Date, any Cause of Action against any of the MGIC Released Parties (i) for any of the subject matter released by this Section 14(a) or (ii) related to or arising from MGIC’s mortgage insurance coverage obligations with respect to any Subject Loans for which CHL or Servicer has acted solely as a subservicer, and covenants and agrees not to participate, assist, encourage or cooperate in any such Cause of Action; provided that CHL and Servicer may take such actions and provide such assistance permitted under Section 6(b).

 

		(b)	In making a full and complete release as provided in Section 14(a), each of CHL and Servicer expressly waives and relinquishes all rights and benefits, which it has, or may have, under California Civil Code section 1542 or any similar statute in any other jurisdiction.  Section 1542 provides as follows:

 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

 

		(c)	Each of CHL and Servicer acknowledges that it is aware that it or another CHL Releasor or Bank of America Releasor may hereafter discover facts different from, or in addition to, those which it now knows or believes to be true with respect to the Causes of Action released pursuant to this Section 14.  Notwithstanding any such different or additional facts, this release shall fully discharge each of the MGIC Released Parties from any and all Causes of Action released pursuant to this Section 14.

 

		(d)	Notwithstanding anything in this Section 14 to the contrary, and notwithstanding whether such claims were or could have been brought in the Arbitration Action or the Litigation Action, the release given in Section 14(a) does not apply to:

 

		(i)	Any disputes or claims within the scope of Sections 11(a) and (b), and any  Dispute within the scope of Section 11(c);

 

		(ii)	Any dispute or claim involving rescission or denials on Servicing Only Loans;

 

- 42 -

		(iii)	Any disputes or claims involving Curtailments on Potential Curtailment Loans;

 

		(iv)	Any disputes or claims involving Third Party Servicer Curtailments;

 

		(v)	Any disputes or claims involving Non-Consenting Loans;

 

		(vi)	Any actual or claimed acts, errors, mistakes or omissions [***];

 

		(vii)	Any claims by CHL or Servicer that MGIC has reduced the amount of a Settlement Percentage Claim Payment due to the existence of a DPO; and

 

		(viii)	For the avoidance of doubt, any disputes or claims involving Policy Adjustments on Past Paid Loans, Recently Paid Loans, Decisioned Servicing Only Loans, and Recently Paid Servicing Only Loans associated solely with the activities of Third Party Servicers.

 

	15.	Indemnification.

 

		(a)	(i) MGIC shall indemnify, defend and hold harmless each of CHL and Servicer and their respective Affiliates from and against all Causes of Action asserted against, resulting to, imposed upon or incurred by, CHL and Servicer and their respective Affiliates, directly or indirectly, by reason of, arising out of or resulting from the inaccuracy or breach of any representation, warranty or covenant of MGIC contained in this Settlement Agreement; (ii) CHL shall indemnify, defend and hold harmless MGIC and its Affiliates from and against all Causes of Action asserted against, resulting to, imposed upon or incurred by, MGIC or its Affiliates, directly or indirectly, (x) by reason of, arising out of or resulting from the inaccuracy or breach of any representation, warranty or covenant of CHL contained in this Settlement Agreement and (y) any Subject Loan as to which CHL elects to exercise delegated authority as servicer or otherwise to consent on behalf of the Trust/Other for purposes of obtaining Trustee/Other Consent; and (iii) Servicer shall indemnify, defend and hold harmless MGIC and its Affiliates from and against all Causes of Action asserted against, resulting to, imposed upon or incurred by, MGIC or its Affiliates, directly or indirectly, (x) by reason of, arising out of or resulting from the inaccuracy or breach of any representation, warranty or covenant of Servicer contained in this Settlement Agreement and (y) in connection with any Subject Loan as to which Servicer elects to exercise delegated authority as servicer or otherwise to consent on behalf of the Trust/Other for purposes of obtaining Trustee/Other Consent; provided, for the avoidance of doubt, that Servicer shall have no obligation whatsoever to indemnify MGIC under this Section 15(a)(iii): (x) for any indemnification obligation of CHL pursuant to clause (ii) of this Section 15(a), or Section 15(b); or (y) with respect to any Cause of Action that results from the action or inaction by a servicer of a Subject Loan at a time when Servicer is neither the master servicer nor servicer at the time the basis for such Cause of Action arose.

 

- 43 -

		(b)	On and after the Implementation Date with respect to [***], CHL shall indemnify all MGIC Released Parties from and against all Causes of Action asserted by [***], directly or indirectly, by reason of, arising out of or resulting from the actual or claimed obligation to pay any amount of money in respect of:

 

		(i)	[***];

 

		(ii)	[***];

 

		(iii)	[***]; or

 

		(iv)	[***].

 

		(c)	CHL shall not be required to so indemnify any MGIC Released Party under Section 15(b) in respect of:

 

		(i)	[***];

 

		(ii)	[***];

 

		(iii)	any actual or claimed acts, errors, mistakes or omissions in [***];

 

		(iv)	any Cause of Action relating to any Non-Consenting Loans;

 

		(v)	any Cause of Action brought by the OCI under Wisconsin Statute section 645.54;

 

		(vi)	any Cause of Action brought by any borrower or any successor in interest to any borrower, in each case, in such capacity, with respect to any Subject Loan;

 

		(vii)	any Cause of Action brought by any stockholder, employee, or employee benefit plan subject to the federal Employee Retirement Income Security Act of MGIC or its Affiliates, in each case, in such capacity;

 

		(viii)	[***]; or

 

		(ix)	[***].  

 

		(d)	An Indemnified Party seeking indemnification under this Section 15 for any claim brought by a third party will: (i) give the Indemnifying Party prompt written notice of the claim; (ii) allow the Indemnifying Party to participate fully in negotiations or other alternative dispute resolution process with the Indemnified Party and such third party in an attempt to resolve the dispute.  Furthermore, the Indemnified Party shall consult and cooperate as reasonably requested by the Indemnifying Party in connection with the defense and any settlement of the claim, and shall not settle or compromise the claim without the written consent of the Indemnifying Party, which consent will not be unreasonably or untimely withheld.

 

- 44 -

	16.	Confidentiality.

 

		(a)	The Parties covenant and agree to keep confidential the Confidential Information and further covenant and agree not to disclose or otherwise convey any portion of the Confidential Information outside of their respective organization except:

 

		(i)	By written agreement of MGIC, CHL and Servicer;

 

		(ii)	To reinsurers, directly or through intermediaries in connection with claims for reinsurance, and to any arbitration panel, court or tribunal in reinsurance disputes;

 

		(iii)	To any entity performing servicing functions with respect to a Subject Loan (including Third Party Servicers, master servicers, servicers and subservicers of Subject Loans) and to any owner or Trustee/Other of Subject Loans, whether or not Trustee/Other Consent has been obtained, in the ordinary course of business or in the course of obtaining Trustee/Other Consent;

 

		(iv)	To originators, directly or through intermediaries in the event CHL or Servicer seeks to obtain repurchase based on a breach of a representation or warranty, and to any arbitration panel, court or tribunal in repurchase disputes;

 

		(v)	To outside auditors, attorneys, accountants, regulators or consultants of any Party;

 

		(vi)	By MGIC, to any third party for purposes of any Cause of Action asserted by such third party against MGIC with respect to which the CHL Releasors or the Bank of America Releasors have released MGIC pursuant to Section 14 or for which CHL or Servicer has indemnified MGIC pursuant to Section 15(b), provided that MGIC may make any such disclosure only if MGIC has complied with the notice and other procedures pursuant to Section 15(d);

 

		(vii)	By Servicer or CHL, to any third party for purposes of any Causes of Action asserted by such third party against Servicer or CHL with respect to which the MGIC Releasors have released Servicer or CHL pursuant to Section 13 or for which MGIC has indemnified Servicer or CHL pursuant to Section 15(a), provided that Servicer or CHL may make any such disclosure only if such Party has complied with the notice and other procedures pursuant to Section 15(d);

 

- 45 -

		(viii)	To regulators of any Party (including the OCI) and to the GSEs, and to any of the auditors, attorneys, accountants, or consultants of any such regulator or the GSEs;

 

		(ix)	By MGIC, to financial institutions potentially providing funds to MGIC or an Affiliate of MGIC (and to financial institutions providing funds to such financial institutions), including to securities underwriters and their counsel;

 

		(x)	To the extent a Party is advised by its counsel (who may be internal counsel) that it or an Affiliate is required to do so by law, regulation, or the rules of a securities marketplace on which the securities of it or an Affiliate are traded (it being understood that, for this purpose, “law” includes a subpoena or similar demand issued in connection with an adversary proceeding).  Each of CHL and Servicer acknowledges and agrees that MGIC will make public disclosure of the contents of this Settlement Agreement and file this Settlement Agreement with the United States Securities and Exchange Commission or such securities marketplace, and that MGIC will seek confidential treatment of the contents of this Settlement Agreement as mutually agreed by the Parties; or

 

		(xi)	As provided in Section 16(b).

 

		(b)	If any court, governmental agency, or regulatory body demands that a Party disclose any information contained in the Confidential Information to the public or to a third party other than the court, governmental agency or regulatory body, the Disclosee may, in the absence of a protective order, disclose such information to the extent that the Disclosee is advised in writing that it must do so by its legal counsel; provided that the Disclosee within two (2) business days of such demand shall, unless restrained by court order, provide written notice to the other Party, shall provide as soon as practical copies of all notice papers, orders, requests or other documents in order to allow the other Party to seek an appropriate protective order, and shall not disclose such information until five (5) business days after the Disclosee has given notice to the other Party.  Notice under this Section 16(b) shall be made to the persons identified in Section 17(a).  The Disclosee shall cooperate fully with the other Party, at the other Party’s cost and expense, should the other Party seek such an order.

 

		(c)	In the event of any disputes between the Parties regarding this Settlement Agreement and/or any disputes pursuant to Sections 11(b) and/or Disputes pursuant to Section 11(c), the Parties agree to use their best efforts not to disclose any Confidential Information to any third parties other than the court, arbitrator(s) or any trier of fact.  To the extent this Settlement Agreement is to be used in any court filing or offered as evidence in any court proceeding, the Parties will use their best efforts consistent with applicable law to have the Settlement Agreement filed or marked under seal and enter into a confidentiality agreement restricting access to the Settlement Agreement to the parties to that litigation.  No Party to this Settlement Agreement will oppose any other Party’s request to have this Settlement Agreement filed or marked under seal.

 

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	17.	Notices and Payments.

 

		(a)	Notices.  Except for notices and communications contemplated by Section 3 (Continuing Reconciliation; Finalizing Schedules; Manifest Error; Subject Loan Reports), Section 4 (Termination Based on Certain Actions), Section 5 (Trustee/Other Consents), Section 10 (Treatment of Subject Loans); and Section 11(b) (ADR Procedure), which shall be delivered in the ordinary course of business and as provided in such applicable Section of this Settlement Agreement, any notice or communications required or arising under, or relating to, this Settlement Agreement shall be in writing and shall be deemed to have been duly given when (i) delivered via email, (ii) mailed by United States registered or certified mail, return receipt requested, (iii) mailed by overnight express mail or other nationally recognized overnight or same-day delivery service, or (iv) delivered in person to the Parties and their counsel at the following addresses:

 

With respect to MGIC:

 

Mortgage Guaranty Insurance Corporation

250 East Kilbourn Avenue

Milwaukee, Wisconsin 53202

Attention: Jeffrey H. Lane

Executive Vice President and General Counsel

Email: jeff_lane@mgic.com

 

With a copy to:

 

Bartlit Beck Herman Palenchar & Scott LLP

Courthouse Place

54 West Hubbard

Chicago, Illinois 60654

Attention: Jeffrey A. Hall

Email: jeffrey.hall@bartlit-beck.com

 

With respect to CHL:

 

Countrywide Home Loans, Inc.

4500 Park Granada

Calabasas, CA 91302

Attention: Michael W. Schloessmann

President

Email: michael.schloessmann@bankofamerica.com

 

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With a copy to:

 

Reed Smith LLP

355 So. Grand Avenue

Los Angeles, CA 90071

Attention: David Halbreich

Email: dhalbreich@reedsmith.com

 

With respect to Servicer:

 

Bank of America, N.A.

50 Rockefeller Plaza, 7th Floor

NY1-050-07-01

New York, NY 10020-1605

Attention: Christopher J. Garvey

Associate General Counsel – Litigation

Email: christopher.garvey@bankofamerica.com

 

With a copy to:

 

Reed Smith LLP

355 So. Grand Avenue

Los Angeles, CA 90071

Attention: David Halbreich

Email: dhalbreich@reedsmith.com

 

		(b)	Payments.  Absent any other written agreement signed by the Parties, all payments by the Parties under the terms of this Settlement Agreement and disbursements by the escrow agent from the Escrow Accounts shall be made by wire transfer to the following accounts:

 

to MGIC:

 

Bank: [***]

Milwaukee, WI

ABA [***]

Account No. [***]

Account Name: [***]; and

 

to Servicer:

 

Bank: [***]

ABA: [***]

Account Number: [***]

Account Name: [***]

Reference: [***]

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to CHL (solely for purposes of disbursements from the CHL Escrow Account):

 

Bank: [***]

ABA: [***]

Account Number: [***]

Account Name: [***]

Reference: [***]

 

		(c)	Changes.  Any Party may change (i) the address to which notices and communications hereunder are to be delivered, or (ii) the account to which payments and disbursements are to be made for the benefit of such Party, by giving the other Party notice in the manner set forth in this Section 17, provided that notice of a change in an account is effective with respect to a payment or disbursement only if given twenty (20) or more business days prior to the date such payment or disbursement is due to be made, unless otherwise agreed in writing by the Parties.

 

	18.	Schedules and Exhibits.

 

This Settlement Agreement includes the following Schedules and Exhibits, each of which is incorporated herein by this reference:

 

Schedules

 

	
Schedule 1

	
-

	
Covered Future Legacy Loans

	 		
	
Schedule 2

	
-

	
Past Coverage Determination Loans

	 		
	
Schedule 3

	
-

	
Recently Paid Loans

	 		
	
Schedule 4

	
-

	
Recently Rescinded Loans

	 		
	
Schedule 5

	
-

	
Past Paid Loans

	 		
	
Schedule 6

	
-

	
Potential Curtailment Loans

	 		
	
Schedule 7

	
-

	
[Deliberately omitted.]

	 		
	
Schedule 8

	
-

	
Pending Rescission Loans

	 		
	
Schedule 9

	
-

	
[Deliberately omitted.]

	 		
	
Schedule 10

	
-

	
[Deliberately omitted.]

	 		
	
Schedule 11

	
-

	
Future Servicing Only Loans

	 		
	
Schedule 12

	
-

	
[Deliberately omitted.]

	 		
	
Schedule 13

	
-

	
Recently Paid Servicing Only Loans

 

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Schedule 14

	
-

	
[Deliberately omitted.]

	 		
	
Schedule 15

	
-

	
Decisioned Servicing Only Loans

	 		
	
Schedule 16

	 	
[***]

	 		
	
Schedule 17

	
-

	
Non-Consenting Loans

	 		
	
Schedule 18

	
-

	
Servicing Transfers

	 		
	
Exhibits

	 	 
	 		
	
Exhibit A

	
-

	
List of Curtailments and Policy Adjustments

	 		
	
Exhibit B

	
-

	
List of Documents Required to Perfect a Claim

	 		
	
Exhibit C

	
-

	
Origination Documents Required Due to State Regulation

	 		
	
Exhibit D

	
-

	
Servicing Guide

	 		
	
Exhibit E

	
-

	
Form of Interim Reconciliation Loan Report

	 		
	
Exhibit F

	
-

	
Exclusions

	 		
	
Exhibit G

	
-

	
[Deliberately omitted.]

	 		
	
Exhibit H

	
-

	
Escrow Agreement

	 		
	
Exhibit I

	
-

	
Form of Subject Loan Report

	 		
	
Exhibit J

	
-

	
Form of Stipulation and Order of Dismissal

 

	19.	Miscellaneous Provisions.

 

		(a)	No Admission.  The Parties agree that this Settlement Agreement is entered in compromise of claims that are disputed as to both liability and damages and that this Settlement Agreement shall be deemed to be subject to Fed. R. Civ. P. 408, Cal. Evid. Code § 1152 and any other similar provision regarding the admissibility of offers to compromise disputed claims.  This Settlement Agreement and any negotiations leading thereto do not constitute an admission of any fact or claim by any Party with respect to any matter.  This Settlement Agreement shall not be used as an admission against any Party in this or any other past, present or future claim or matter; provided, however, that nothing in this Section 19(a) shall preclude the use of the Settlement Agreement to enforce the Settlement Agreement.  Except as expressly stated herein, neither this Settlement Agreement nor any provision herein shall be considered or treated as a precedent, either for purposes of the Parties’ or any of their Affiliates’ future dealings or otherwise.  The Parties understand and agree that no Party, by entering this Settlement Agreement, admits the accuracy of any position advanced by any other person whatsoever, and that any resolution reached, whether by mutual agreement or by further arbitration in accordance with the terms of this Settlement Agreement, is the resolution of a disputed claim.

 

- 50 -

		(b)	Successors, Assignees, and Third Party Beneficiaries.  All terms and conditions of this Settlement Agreement shall be binding on the successors and assignees of each Party; provided that (i) no assignment by a Party shall operate as a release of such Party from any obligations under this Settlement Agreement; (ii) subject to the requirements of the applicable Master Policy, Servicer may assign any servicing rights or obligations with respect to any Subject Loan to any assignee that is an approved servicer (as contemplated by the applicable Master Policy), and such assignee shall be entitled to the benefit of any provision of this Settlement Agreement only if (x) Servicer gives prior written notice to MGIC of such assignment if and only to the extent required under the applicable Master Policy and (y) such assignee agrees to be bound by all of the provisions hereof; and (iii) an assignee which is not bound by the provisions hereof may nonetheless participate in the ADR Procedure as expressly provided in Section 11(a).  Nothing expressed or referred to in this Settlement Agreement is intended or shall be construed to give any person other than MGIC, CHL, and Servicer any legal or equitable right, remedy, or claim under or with respect to this Settlement Agreement or any provisions contained herein, or in any arbitration or litigation arising out of this Settlement Agreement, except as expressly provided in this Settlement Agreement, including, but not limited to, the releases and indemnification of the MGIC Released Parties and the CHL Released Parties provided in Sections 13, 14, and 15.  Except as expressly set forth in Section 10(f), no Trust/Other or any Trustee/Other shall have any rights or obligations under this Settlement Agreement unless and until the Implementation Date with respect to such Trust/Other has occurred, and prior to such time, no Claim submitted with respect to any loan held by any Trust/Other shall be subject to any terms of this Settlement Agreement, including, for the avoidance of doubt, any payments hereunder or the ADR Procedure set forth in Section 11(b).

 

		(c)	Governing Law.  Except as provided in Section 11(d)(iv), this Settlement Agreement and any Cause of Action arising under or related to this Settlement Agreement or the settlement effected by this Settlement Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the law of conflicts.

 

		(d)	Interpretation.  This Settlement Agreement shall not be construed against any Party, but shall be construed as if the Parties jointly prepared the Settlement Agreement and any uncertainty and ambiguity shall not be interpreted against any one Party.  The use of any gender in this Settlement Agreement shall be deemed to be or include the other genders, including neuter, and the use of the singular shall be deemed to be or include the plural (and vice versa) wherever applicable.  The use of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not any “no limitation” language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter.  All references to “Section,” “clause,” “recital,” “Schedule” or “Exhibit” shall be deemed to refer to the Sections, clauses, recitals, Schedules or Exhibits of this Settlement Agreement.  The words “this Settlement Agreement,” “this Agreement,” “hereof,” “hereunder,” “herein,” “hereby,” or words of similar import shall refer to this Settlement Agreement as a whole and not to a particular section, subsection, clause or other subdivision of this Settlement Agreement, unless the context otherwise requires.

 

- 51 -

		(e)	Severability; Effect of Court Order.  If any provision of this Settlement Agreement is declared invalid or unenforceable, then, to the extent possible, all of the remaining provisions of this Settlement Agreement shall remain in full force and effect and shall be binding upon the Parties, subject to the provisions of Section 12, including, but not limited to, any modifications as contemplated by Section 12(b).  In the event that in any proceeding a final and non-appealable court order is entered on or after the Implementation Date (i) avoiding the payment, and/or granting recovery, of any amount of money paid pursuant to this Settlement Agreement by CHL to MGIC, or by MGIC to CHL, or (ii) voiding any portion of this Settlement Agreement in a way that deprives CHL or MGIC of any monetary benefit that it would otherwise have obtained from the other Party pursuant to the terms of this Settlement Agreement, then CHL and MGIC shall meet and confer regarding the effect of such court order and the potential for modifications to this Settlement Agreement in an attempt to recoup such amount of money, and/or provide CHL or MGIC, whichever is deprived of a material benefit by such court order with, as applicable, a reasonable substitute for such material benefit to the extent that any such recoupment or material benefit can be lawfully provided, provided that (i) Servicer (including without limitation any of its Affiliates (other than CHL)) shall have no obligation to participate in such discussions, to agree to any modifications to this Settlement Agreement, to undertake or assume any liabilities or other obligations to any Party or other person as a result of this provision, or to provide any payment to any Party or other person pursuant to this Section 19(e), and (ii) Servicer’s only obligation pursuant to this Section 19(e), solely in its capacity as master servicer or servicer of the Subject Loans and not in any other capacity, is to use commercially reasonable efforts to cooperate in good faith with MGIC and CHL to effect any modifications to this Settlement Agreement made pursuant to this Section 19(e), but only to the extent that such cooperation and modifications do not either cause Servicer to incur any additional monetary obligations or other liabilities not contemplated by this Settlement Agreement or impose any unreasonable burdens on Servicer, and only to the extent permitted under applicable law.

 

		(f)	Headings.  The headings and subheadings contained in this Settlement Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Settlement Agreement or any provision hereof.

 

- 52 -

		(g)	Amendment and Waiver.  No change or amendment shall be valid unless it is made in writing and executed by the Parties to this Settlement Agreement.  No specific waiver of any of the terms of this Settlement Agreement shall be considered as a general waiver.  All waivers of this Settlement Agreement must be in writing and signed by or on behalf of the Party waiving its rights.  No delay or failure on the part of any Party to exercise any right, remedy, power or privilege under this Settlement Agreement shall operate as a waiver thereof, and no single or partial exercise by any Party of any such right, remedy, power or privilege precludes other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

		(h)	Costs.  The Parties agree that they are solely responsible for their own attorneys’ fees, costs and expenses incurred in connection with the Mortgage Insurance Dispute, the Arbitration Action, the Litigation Action or dispute resolution pursuant to Section 11 (except as expressly provided otherwise in Section 11) and the execution, delivery and implementation of this Settlement Agreement.

 

		(i)	Advice of Counsel.  Each of the Parties acknowledges that it has had the advice of counsel in connection with this Settlement Agreement, and has entered into this Settlement Agreement freely after reviewing this Settlement Agreement with counsel.

 

		(j)	Corporate Existence and Authority.  Each of the Parties represents that (1) it is validly existing under the laws of its chartering authority and has full power and authority to conduct its business as now conducted by it, (2) it has full power and authority to execute and deliver this Settlement Agreement and to perform its obligations hereunder, (3) it has taken all necessary corporate action to authorize the execution and delivery of this Settlement Agreement and the performance of its duties and obligations contemplated hereby, (4) none of such execution, delivery, or performance of this Settlement Agreement and the transactions contemplated hereby: (A) conflicts with the obligations of such Party under any material agreement binding upon it; (B) requires any authorization, consent or approval by, or registration, declaration or filing with, or notice to, any governmental authority, agency or instrumentality, or any third party, except for (i) any authorization, consent, approval, registration, declaration, filing, or notice that has been obtained or given prior to the date hereof, and (ii) the Trustee/Other Consents or as may be required in obtaining the Trustee/Other Consents; (C) results in, or requires, the creation or imposition of any lien or other charge upon or with respect to any of the assets now owned or hereafter acquired by a Party, (5) this Settlement Agreement, upon execution and delivery, is a valid and binding agreement, enforceable against it in accordance with the terms of this Settlement Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium, insurers’ rehabilitation and liquidation, and other similar laws affecting creditor’s rights generally and general principles of equity.  To the extent CHL or Servicer provides an Trustee/Other Consent required under Section 5 with respect to a particular Trust/Other under contractual or delegated authority without specific approval by the Trust/Other, at each time CHL or Servicer takes such action, CHL or Servicer represents and warrants that it is authorized to deliver such Trustee/Other Consent on behalf of the Trust/Other to which such Trustee/Other Consent relates.

 

- 53 -

		(k)	Certain Representations by MGIC.  MGIC represents and warrants as of the Signing Date and shall be deemed to represent and warrant as of the Implementation Date that:

 

		(i)	MGIC (a) is not and, immediately after giving effect to the consummation of the transactions contemplated by this Settlement Agreement and the other transactions contemplated hereby, will not be insolvent as such term is defined in Wisconsin Statute section 600.03, and (b) has received “reasonably equivalent value” as that term is used by the Uniform Fraudulent Transfer Act (“UFTA”) and “fair consideration” as that term is used by the Uniform Fraudulent Conveyance Act (“UFCA”) in exchange for any payments made by MGIC pursuant to this Settlement Agreement  and performance by MGIC of its other obligations hereunder, each in accordance with the terms and conditions of this Settlement Agreement and the Escrow Agreement.

 

		(ii)	MGIC has made available to CHL and Servicer true and complete copies of (A) the unaudited statutory annual statements of MGIC, containing the annual statutory statements of assets, liabilities and capital and surplus of MGIC as at December 31, 2012, 2011 and 2010 and the related statements of income, which include changes in statutory capital and surplus accounts, and cash flows for the fiscal years then ended, together with all exhibits, schedules and notes thereto and any related certifications filed with the OCI, and (B) the audited statutory financial statements of MGIC containing the annual statutory statements of admitted assets, liabilities and capital and surplus of MGIC as at December 31, 2011 and 2010 and the related statutory statements of operations, statutory statements of capital and surplus and statutory statements of cash flows for the fiscal years then ended, together with all exhibits, schedules and notes thereto (the portion of the documents referred to in the foregoing clauses (A) and (B) that are financial statements are collectively referred to as the “Statutory Statements” and the remaining portion of such documents is the “Additional Items”).  The Statutory Statements (A) have been derived from the books and records of MGIC, (B) have been prepared in accordance with all applicable laws and applicable accounting principles, (C) have been timely filed with or submitted to the OCI on forms prescribed or permitted by the OCI and (D) fairly present in all material respects, in accordance with applicable accounting principles, the statutory financial position, results of operations and cash flows, assets, liabilities, capital and surplus, changes in statutory surplus and cash flows of MGIC as at the respective dates of, and for the periods referred to in, the Statutory Statements (to the extent presented in such statements).  The Additional Items (A) have been derived from the books and records of MGIC, except that this subclause (A) does not apply to the portion of the Additional Items that are certifications, (B) have been prepared in accordance with all applicable laws, and (C) have been timely filed with or submitted to the OCI on forms prescribed or permitted by the OCI.

 

- 54 -

		(iii)	MGIC is not the subject of any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding.  MGIC has not received any oral or written notice from any governmental authority, including the OCI, threatening to seek to initiate any such proceeding.

 

		(l)	Certain Representations by CHL.  CHL represents and warrants as of the Signing Date and shall be deemed to represent and warrant as of the Implementation Date that:

 

		(i)	CHL has received “reasonably equivalent value” as that term is used by the UFTA and “fair consideration” as that term is used by the UFCA in exchange for any payments made by CHL pursuant to this Settlement Agreement, including, but not limited to, the CHL Escrow Account, and performance by CHL of its other obligations hereunder, each in accordance with the terms and conditions of this Settlement Agreement and the Escrow Agreement.

 

		(ii)	CHL is not the subject of any supervision, conservation, rehabilitation, liquidation, receivership, insolvency, bankruptcy or other equivalent proceeding.  CHL has not received any oral or written notice from any governmental authority threatening to seek to initiate any such proceeding.

 

		(m)	Counterparts.  This Settlement Agreement may be executed in counterparts, and when each Party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with the other signed counterparts, shall constitute one agreement, which shall be binding upon and effective as to all Parties.  Signatures of the Parties transmitted by fax or .pdf shall be deemed to be their original signatures for all purposes.

 

		(n)	Entire Agreement.  This Settlement Agreement, together with the attached Schedules and Exhibits (whether such Exhibits are executed or not), the letter agreement between the Parties dated December 10, 2012, the MGIC/BANA Settlement Agreement to the extent expressly referenced in this Settlement Agreement, each document executed by the Parties that expressly references this Section 19(n), and the applicable Master Policy to the extent that the terms and conditions of this Settlement Agreement do not supersede the terms and conditions of an applicable Master Policy, constitutes the entire agreement between the Parties with respect to the subject matter of this Settlement Agreement and supersedes all prior and contemporaneous oral and written agreements, discussions and correspondence, including agreements in principle, drafts, descriptions of this Settlement Agreement, and prior written agreements.  The Parties hereby affirm all other terms, provisions, and conditions of the Original Agreement, as hereby amended and restated, which is and shall continue to be in full force and effect and is hereby ratified and confirmed in all other respects. All references in this Settlement Agreement to the Settlement Agreement shall mean the Original Agreement as amended by this Amended and Restated Agreement.  The Parties further acknowledge and represent that other than as specifically stated herein, no promises or inducements have been offered for this Settlement Agreement, and this Settlement Agreement is executed without reliance by either Party on any representation, statement, report or analysis of any other Party or any of their respective representatives concerning or relating to this Settlement Agreement or the settlement effected hereby.  Effective as of the Signing Date, the Curtailment ADR Agreement shall terminate and shall have no further force or effect with respect to the Subject Loans.

 

- 55 -

		(o)	Specific Performance.  Each of the Parties acknowledges and agrees that the other Party would be damaged irreparably in the event any provision of this Settlement Agreement is not performed in accordance with its specific terms or otherwise is breached.  Each of the Parties agrees that any Party shall be entitled, in addition to any other remedy at law or in equity, to enforce the terms of this Settlement Agreement through an arbitration award seeking a decree of specific performance without the necessity of proving the inadequacy of money damages as a remedy or the posting of any bond.

 

		(p)	Further Assurances.  The Parties shall execute such further instruments and take such further actions as may reasonably be necessary to carry out the intent of this Settlement Agreement.

 

		(q)	Servicing of Subject Loans after the Signing Date.  On and after the Signing Date, where Servicer is the Servicer of a Subject Loan, Servicer will continue servicing the Subject Loan in the ordinary course and consistent with reasonably acceptable and customary servicing practices, provided that nothing herein prevents Servicer from transferring servicing of a Subject Loan as allowed by the Master Policy, and provided further that any such transferee shall be entitled to the benefit of this Settlement Agreement only as provided in Section 19(b).

 

[The following page is the signature page.]

 

- 56 -

IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of the Signing Date stated above.

	
MORTGAGE GUARANTY INSURANCE CORPORATION

		
COUNTRYWIDE HOME LOANS, INC.

	
	 			
	By:	
/s/ Jeffrey H. Lane

		By:	
/s/ Michael Schloessmann

	
	Name: Jeffrey H. Lane		
Name: Michael Schloessmann

	
	Title: EVP		
Title: President

	
	 					
		 		
BANK OF AMERICA, N.A., as Master Servicer or Servicer

	
	 					
		 		By:	
/s/ David Cassell

	
	 			
Name: David Cassell

	
	 			
Title: SVP

	

 

- 57 -

Exhibit A

 

List of Curtailments and Policy Adjustments

EXHIBIT A

 

	
EOB 

Code

	
Type (Curtailment or 

Policy Adjustment)

	
Explanation of EOB Code (as shown on EOB)

	
[***]

	
[***]

	
[***]

 

Exhibit B

Documents Required to Perfect a Claim

 

EXHIBIT B

 

DOCUMENTS REQUIRED TO PERFECT A CLAIM

 

Unless otherwise specified, defined terms have the meaning given them in the applicable Master Policy (as defined in the Settlement Agreement) and references to Exhibits are to Exhibits to the Settlement Agreement.

 

		I.	List of Documents Required to Perfect a Claim on Covered Future Legacy Loans (as defined in the Settlement Agreement) Under Section 10(f)(i) and Potential Curtailment Loans (as defined in the Settlement Agreement) Under Section 10(g)(v) of the Settlement Agreement

		·	Declaration of loss, including Lender’s calculation of the Claim Amount, prepared by Lender

A copy of each of the following documents:

 

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

If MGIC is exercising its right to acquire a property, the original of each of the following:

 

		·	[***]

		·	[***]

		II.	List of Documents Required to Perfect a Claim on Covered Future Legacy Loans (as defined in the Settlement Agreement) Under Section 10(g)(i) of the Settlement Agreement

		·	Declaration of loss, including Lender’s calculation of the Claim Amount, prepared by Lender

A copy of each of the following documents:

 

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

		·	[***]

 

If MGIC is exercising its right to acquire a property, the original of each of the following:

 

		·	[***]

		·	[***]

		III.	List of Documents Required to Perfect a Claim on Future Servicing Only Loans (as defined in the Settlement Agreement) Under Section 10(h)(iii)

MGIC may require submission of any documents to the extent permitted by the applicable Master Policy, [***].

 

Exhibit C

Origination Documents Required for Fraud Investigations

Due to State Regulations

 

Execution Copy

 

EXHIBIT C

ORIGINATION DOCUMENTS REQUIRED FOR FRAUD INVESTIGATIONS DUE TO STATE REGULATIONS

Defined terms have the meaning given them in the applicable Master Policy (as defined in the Settlement Agreement) and references to Exhibits are to Exhibits to the Settlement Agreement.

A copy of each of the following, as requested pursuant to the Settlement Agreement:

 

		·	Loan application (1003)

		·	Appraisal and satisfactory completion certificate, if applicable

		·	Verification of income – pay stubs/W2s, if applicable to loan type

		·	Verification of employment, if applicable to loan type

		·	Tax returns, if applicable to loan type

		·	Credit reports

		·	Verification of deposits or bank statements, if applicable to loan type

		·	Transmittal summary (1008)

		·	HUD 1 settlement statement

		·	Note

		·	Mortgage or deed of trust

		·	Purchase agreement or sales contract

		·	Escrow instructions

		·	Gift letter and supporting documentation, if applicable

		·	Title commitment

		·	Closing instructions

		·	IRS form 4506,  if applicable

		·	Underwriter conditions

		·	Underwriter approval form

		·	Automated findings report (AUS results)

		·	Foreclosure and Bankruptcy Affidavit, Declaration and Sworn Statement Preparation PP (122407) pursuant to the DOJ Settlement, if applicable

		·	Any other document to which MGIC is entitled under the applicable Master Policy (without regard to Exhibits B and F)

 

 

Exhibit D

Servicing Guide

 

EFFECTIVE OCTOBER 1, 2014

MGIC SERVICING GUIDE

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Contents

 

  

CONTENTS

 

	
Introduction

	
5

	 	 
	
Gold Cert 12-Payment Protection

	
7

	 	 
	
Servicing Information Submission Options

	
8

	 	 
	
1 Mortgage Insurance Premium

	
9

	
1.01 Premium Plans

	
10

	
1.02 Premium Due to Activate Coverage

	
10

	
1.03 Renewal Premium Billing

	
11

	
1.04 Billing Cycles

	
11

	
1.05 Billing Options

	
12

	
1.06 Premium Payment Options

	
12

	
1.07 Premium Guidelines for Loans in Default

	
12

	 	 
	
2 Cancellations

	
13

	
2.01 Cancelling Mortgage Insurance Coverage

	
14

	
2.02 Cancellation Covered Under the Homeowners Protection Act (HPA)

	
15

	
2.03 Cancellation not Covered Under the Homeowners Protection Act (HPA)

	
15

	
2.04 Premium Refund Guidelines

	
15

	 	 
	
3 Reinstatements

	
17

	
3.01 Reinstatement Requests

	
18

	
3.02 Reinstatement Exception

	
18

	 	 
	
4 Certificate Changes

	
19

	 	 
	
5 Servicing Transfers

	
20

	 	 
	
6 Assumptions

	
21

	
6.01 Assumptions With Release of Liability

	
22

	
6.02 Assumptions Without Release of Liability

	
22

	 	 
	
7 Partial Releases

	
23

	 	 
	
8 Loan Status & Activity Report

	
24

	
8.01 Servicing Report

	
25

	
8.02 Default Reporting

	
25

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

2

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Contents

 

  

	
9 Loan Modifications

	
27

	
9.01 Reporting Modifications

	
28

	
9.02 Modification Guidelines for Current Loans

	
29

	
9.03 Modification Guidelines for Delinquent Loans

	
29

	 	 
	
10 Other Loan Workouts

	
31

	
10.01 Foreclosure Sale Postponement

	
32

	
10.02 Forbearance Plan

	
32

	
10.03 Repayment Plan

	
33

	
10.04 Short Sale and Deed in Lieu of Foreclosure

	
34

	 	 
	
11 Foreclosure

	
37

	
11.01 Foreclosure Commencement

	
38

	
11.02 Bankruptcy

	
38

	
11.03 Preserving our Deficiency Rights

	
38

	
11.04 Foreclosure Bidding

	
39

	
11.05 Foreclosure Completion

	
40

	 	 
	
12 Claim

	
41

	
12.01 Claim Requirements

	
42

	
12.02 Claim Filing

	
42

	
12.03 Claim Documentation Requirements

	
42

	
12.04 Claim Perfection

	
45

	
12.05 Claim Calculation and Curtailment Methodology

	
46

	
12.06 Claim Settlement

	
47

	
12.07 Supplemental Claim

	
48

	 	 
	
13 Real Estate Owned (REO) Property Sales & Election of Acquisition Option

	 
	
13.01 Property Disposition for Primary Coverage

	
50

	
13.02 Election of Acquisition Option for Primary Coverage

	
50

	
13.03 Property Disposition for Pool or Second Layer Coverage

	
51

	 	 
	
14 Credible Evidence

	
53

	 	 
	
15 Appeals

	
54

	 	 
	
16 US Treasury & GSE-Sponsored Programs

	
55

	 	 
	
17 Exhibits

	
56

	
17.01 Foreclosure State Time Frames

	
57

Questions? Contact MGIC Customer Service, 1-800-424-6442.

3

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Contents

 

 

	
17.02 Claim Form

	
58

	
17.03 Claim Settlement Examples

	
58

	 	 
	
18 Servicing Tools

	
59

	
18.01 MGIC/Link Servicing

	
60

	
18.02 Secure File Transfer (SFT)

	
61

	
18.03 Automated Default Reporting (ADR)

	
62

	
18.04 Electronic Funds Transfer (EFT)/ACH

	
62

	
18.05 Electronic Data Interface (EDI)

	
62

  

Questions? Contact MGIC Customer Service, 1-800-424-6442.

4

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Introduction

 

  

INTRODUCTION

 

We have consolidated our previous Servicing and Default Servicing Guides into one streamlined Servicing Guide.

Master Policy

To view a copy of the Master Policy and all endorsements, see Master Policyholder Resources.

Terms in This Guide

	•	Capitalized terms relate primarily to Master Policy 71-43342 (10/14)

		–	Refer to the applicable Master Policy for definitions

		–	Any reference to our Master Policy means the Master Policy under which the Loan was insured by MGIC

	•	“Borrowers” or “Borrower” may refer to multiple Borrowers or a single Borrower

	•	“We,” ”us” and “our” refer to MGIC

	•	“You” refers to you, the Servicer, and your representatives

	•	“Beneficiary” refers to the Initial Insured, except in the case of a Loan Transfer, in which the Loan Transferee will become the Beneficiary

		–	GSE Beneficiary means a Beneficiary that is a GSE

	•	Stated time frames are in terms of calendar days, unless otherwise referred to as Business Days

References

This guide includes internal references to supporting information in other sections

within the document. For example, (2.04) means you will find related information in section 2, subsection 4. External references are linked to pages on our website, www.mgic.com.

Special Notes

Information to note will be pointed out to you with this icon: 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

5

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Introduction

 

 

Support

If you have questions about information in this guide, contact us at customer_service@mgic.com or 1-800-424-6442.

Reservation of Rights

We retain a full and complete reservation of rights. Neither this document nor any action taken by us that may appear inconsistent with this document should be construed as a waiver by us of any rights or defenses we may have. The guide reflects the servicing requirements applicable to the Master Policy. Requirements may vary, based on specific Master Policy endorsements. Refer to your Master Policy and endorsements for reference.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

6

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Gold Cert 12-Payment Protection

 

  

GOLD CERT 12-PAYMENT PROTECTION

See Section 1.06.02 of our Underwriting Guide, www.mgic.com/uwguide, for complete 12-Payment Protection information.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

7

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Servicing Information Submission

 

  

SERVICING INFORMATION SUBMISSION OPTIONS

When available, MGIC/Link Servicing is our preferred submission method. However, we have included a list of other submission options (as applicable) for your convenience.

	
Request/Report

		
MGIC/Link Servicing

		
Other Submission Options

	
MI Billing and Format Inquiries

		 		
billing_inquiry@mgic.com

	
Premium Payment Options (Wire/ACH Information)

		 		
premium_pay@mgic.com

	
MI Premium Payment Inquiries

		 		
suspense_premium_inquiry@mgic.com

	
MI Cancellations

		
Cancel Coverage

		
Submit Request for Cancellation of Insurance form via:

– Secure File Transfer (SFT) (18.02) (Cancellations)

– cancel_requests@mgic.com

– Fax 1-888-818-0241

	
Reinstatements

		 		
customer_service@mgic.com or fax 1-800-345-3291

	
Loan Number Changes

		
Change Loan Numbers

		
SFT (Portfolio Audits, Servicing Transfers and Loan # Updates) or policy_info@mgic.com

	
Servicing Transfers

		
Transfer Servicing

		
Submit Notice of Change of Servicer form via SFT (Portfolio Audits, Servicing Transfers and Loan # Updates) or policy_info@mgic.com

	
Notice of Assumption

		 		
Submit Notice of Assumption form via customer_service@mgic.com or fax 1-800-345-3291

	
Partial Releases

		 		
customer_service@mgic.com or fax 1-800-345-3291

	
Servicing Report

		 		
Submit Servicing Report via SFT (Servicing Report) or servicingreport@mgic.com

	
Loan Modifications

		
Loan Modification,

MI Loan Activity Report

		
Submit Notice of Loan Modification form (for an individual loan) or Loan Modification Submission spreadsheet (for multiple loans) via SFT (Loan Modification) or loanmodrequests@mgic.com

	
Notice of Default

		
File/Update a Default

		
Submit a Notice of Default form via:

– ADR (18.03)

– SFT (Claims Query)

– claimsquery@mgic.com

– Fax 1-800-353-8781

	
Monthly Default Reports

		
File/Update a Default

		
ADR, SFT (Claims Query), claimsquery@mgic.com  or

Fax 1-800-353-8781

	
Loan Workouts — Short Sale (Nondelegated)

		
Short Sale

		
SFT (Claims Query) or claimsquery@mgic.com

	
Loan Workouts — Deed in Lieu (Nondelegated)

		
Deed in Lieu

		
SFT (Claims Query) or claimsquery@mgic.com

	
Loan Workouts — Foreclosure Postponement, Forbearance and Repayment Plans (Nondelegated)

		
Other Workout Types

		
SFT (Claims Query) or claimsquery@mgic.com

	
Promissory Notes Payable to MGIC

		 		
Send to: Shellpoint Mortgage Servicing, 55 Beattie Place, Suite

100, MS #003, Greenville, SC 29601

	
REO Property Offer Approval

		 		
reo_marketing@mgic.com

	
REO Acquisition Documentation

		 		
reo_marketing@mgic.com

	
Initial Claim Filing

		
File a Claim

		
Submit a Claim form via:

– EDI X-12 (18.05)

– SFT (Claims Query)

– claimsquery@mgic.com

– Fax 1-800-353-8781

	
Initial Claim Documents

		
Upload Claim

Documents

		
SFT (Claims Documents) or claims_documents@mgic.com

	
Supplemental Claim Filing

		
File a Claim

		
SFT (Claims Query) or claimsquery@mgic.com

	
Supplemental Claim Documents

		 		
SFT (Claims Query) or claimsquery@mgic.com

	
Claim Status/Explanation of Benefits

		
Policy Inquiries

		 
	
Appeals of Rescission, Cancellation, Denial or

Reduction in Insurance Benefit

		 		
Appeals of Rescission, Cancellation or Denial:

– appeals@mgic.com

Appeals of Reduction in Insurance Benefit:

– claimsquery@mgic.com

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

8

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

1

	 	
Mortgage Insurance

 

 

	
1

	
MORTGAGE

INSRANCE

PREMIUM

 

	 	
1.01

	
Premium Plans

	 	
1.02

	
Premium Due to Activate Coverage

	 	
1.03

	
Renewal Premium Billing

	 	
1.04

	
Billing Cycles

	 	
1.05

	
Billing Options

	 	
1.06

	
Premium Payment Options

	 	
1.07

	
Premium Guidelines for Loans in Default

Questions? Contact MGIC Customer Service, 1-800-424-6442.

9

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

1

	 	
Mortgage Insurance

 

  

Premium billing is based on the Premium plan and renewal option that the lender selected at the time of Origination, as referenced on your mortgage insurance Commitment/Certificate.

1.01 Premium Plans

Monthly Premium

Our monthly Premium plans provide a month-to-month coverage term. No Premium is due at closing. Billing begins the first month after closing and payment is due the following month. The billing process continues until the insurance is cancelled.

Single Premium

Our single Premium plans provide coverage with a one-time Premium payment. Premium is paid at closing.

 Our Borrower-paid single Premium plans provide coverage for a limited time based on the Loan’s scheduled amortization. Coverage expires automatically when the unpaid principal balance of the Loan, based on the original amortization schedule, reaches 78% of the original value, regardless of actual payments.

Annual Premium

Our annual Premium plans provide coverage for a term of one year. The first-year Premium is paid at closing. The renewal Premium is due on the Certificate anniversary date. The billing process continues annually until the insurance is cancelled.

Split Premium

Our split Premium plans provide a month-to-month coverage term. Part of the Premium is paid up front in order to reduce the monthly Premium. The upfront Premium can be financed into the Loan amount or paid at closing. We bill for the monthly portion of the Premium. Billing begins the first full month after closing and payment is due the following month. The billing process continues until the insurance is cancelled.

1.02 Premium Due to Activate Coverage

 

Premium due to activate coverage is listed on the Commitment/Certificate. For information on initial Premium payment requirements, refer to our Underwriting Guide.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

10

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

1

	 	
Mortgage Insurance

 

  

1.03 Renewal Premium Billing

 

We provide monthly, annual and split Premium plan renewal bills. Premium billing includes:

 

		•	Insurance Premiums for current and unpaid coverage periods

		•	Applicable Premium taxes or assessments required by any state or local jurisdiction

– See Taxes and assessments

The entire renewal Premium is due on the Premium due date specified on the bill. Do not alter our calculated Premiums, and pay them as indicated on the bill. We will cancel coverage on a Certificate if we do not receive Premium within the 60-day grace period, effective the last day of the renewal term for which Premium was paid.

For monthly, annual and the monthly portion of split Premiums, the Premium amount due is based on one of the following renewal options:

Declining Renewal

Declining renewal Premiums are adjusted annually based on the current Mortgage balance. Each year on the Certificate anniversary month, we will send you a bill that requires you to report the current Mortgage balance and calculate the current

Premium due as follows:

 

		•	Multiply the Mortgage balance by the Premium rate (for monthly Premiums, divide the results by 12)

		•	If applicable, multiply the newly calculated Premium by the tax/assessment rate

Constant Renewal

Constant renewal Premiums are based on the original amount insured and remain the same for the first 10 years. After 10 years, the Premium due may decrease to a lower renewal rate for the remaining life of the insurance.

1.04 Billing Cycles

 

We issue renewal bills based on a billing cycle of your choice:

Cycles 1- 4

		•	We issue bills the first, second, third and fourth full weekends of the month, respectively

		•	Bills include coverage dates for the current month’s monthly Premiums due (and any unpaid coverage periods) and next month’s annual Premiums due

For example, if the current month is January, the bill is for January monthly Premiums due and February annual Premiums due.

Cycle 5

		•	We issue bills the first full weekend of the month

		•	Bills include billing for the previous month’s monthly Premiums due (and any unpaid coverage periods) and the current month’s annual Premiums due

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

11

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

1

	 	
Mortgage Insurance Premium

 

 

 

For example, if the current month is January, the bill is for December monthly

Premiums due and January annual Premiums due. See our Billing cycles calendar for specific due dates.

E-mail billing_inquiry@mgic.com to request the billing cycle that best meets your needs.

1.05 Billing Options

Automated Renewal Billing (ARB)

Receive your bill electronically with no minimum portfolio size. E-mail ecommerce_services@mgic.com for more information about the vendors and software providers we support.

Secure File Transfer (SFT)

To receive your bill electronically via SFT, e-mail billing_inquiry@mgic.com. We can provide you a PDF, or a TXT file that you can convert to an XLS file.

Paper Billing

We will mail you a paper bill if you do not select an electronic billing format.

1.06 Premium Payment Options

Remit payments via:

 

		•	Check — Mail to MGIC, PO Box 566, Milwaukee, WI 53201-0566

		•	ACH or wire — To request more information, e-mail premium_pay@mgic.com

1.07 Premium Guidelines for Loans in Default

If a Loan Defaults, coverage remains in force and we continue to bill renewal Premiums.

If you continue to pay Premiums due, any Premium paid for the period following the Default will be refunded at the time of the Insurance Benefit payment.

If you do not continue to pay renewal Premiums, and you report the Default to us as cured, we will provide a special bill indicating all unpaid Premium due. If we do not receive all unpaid Premium by the Premium due date indicated on the special bill, we will cancel coverage on the Certificate, effective the last day of the renewal term for which Premium was paid.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

12

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

2

	 	
Cancellations

 

 

	
2

	
CANCELLATIONS

	 	 	 
	 	
2.01

	
Cancelling Mor tgage Insurance Coverage

	 	
2.02

	
Cancellation Covered Under the Homeowners Protection Act (HPA)

	 	
2.03

	
Cancellation not Covered Under the Homeowners  Protection Act (HPA)

	 	
2.04

	
Premium Refund Guidelines

Questions? Contact MGIC Customer Service, 1-800-424-6442.

13

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

2

	 	
Cancellations

 

2.01 Cancelling Mortgage Insurance Coverage

Notify us to cancel or terminate coverage pursuant to Applicable Law or the Beneficiary’s established guidelines. We do not monitor mortgage insurance cancellation requirements and are not obligated to cancel coverage unless you notify us.

Submission Options

		•	MGIC/Link Servicing — Select Cancel Coverage in the main menu

		•	Submit Request for Cancellation of Insurance form or required information (see below) via:

– Secure File Transfer (SFT) — Select Cancellations

– Secure e-mail to cancel_requests@mgic.com

– Fax to 1-888-818-0241

For multiple cancellations, Electronic Data Interface (EDI) format is also available. Contact ecommerce_services@mgic.com for more information on EDI technology.

Information Required

In lieu of a Request for Cancellation of Insurance form, provide the following information via SFT, e-mail or fax:

		•	MGIC Certificate number

		•	Servicer’s Loan number

		•	Borrower’s name

		•	Subject Property address

		•	Reason for cancellation

		•	Cancellation effective date

		•	Payee’s name and address if a refund is due

Premiums Due After Cancellation

Since monthly Premiums are generally paid in arrears (unlike annual or single Premiums, which are paid in advance), it is possible that Premium will be due at the time of cancellation. If so, we will send you a bill indicating the amount due.

Noncancellable Coverage

Insurance under certain Master Policies may not be cancelled unless the Loan is paid in full, or has amortized or been paid down to a specified loan-to-value ratio. E-mail cancel_requests@mgic.com with questions regarding cancellation on a Loan with noncancellable coverage.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

14

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

2

	 	
Cancellations

 

 

2.02 Cancellation Covered Under the Homeowners Protection Act (HPA)

The Homeowners Protection Act of 1998 (HPA) covers single-family primary residence Loans that closed on or after July 29, 1999. HPA provides for Borrower-requested cancellation and automatic termination. It is your responsibility to notify us when coverage terminates under HPA automatically or due to a Borrower-requested cancellation.

 

2.03 Cancellation not Covered Under the Homeowners Protection Act (HPA)

Investors establish the criteria for cancelling mortgage insurance for Loans not covered by HPA. This includes second homes, investment properties and where the Property’s current value is used.

Fannie Mae and Freddie Mac requirements are provided in their guides and are subject to change. Refer to the agencies’ guides for the most current mortgage insurance cancellation information. Check other investors’ mortgage insurance cancellation requirements.

 

2.04 Premium Refund Guidelines

We offer refundable and nonrefundable Premium plans (1.01). Premium refundability is specified on the Loan’s insurance Commitment/Certificate.

Refundable Premium Plans

 

	
Premium Plan

	
Initial Insurance

Effective Date

	
Refund Calculation

	
Annual Premiums

	
Prior to 7/29/1999

	
See

Annual Premium Refund Schedule

	
On or after 7/29/1999

	
Prorated refund

Calculated based on the number of days of coverage in force divided by 365 days

	
Monthly Premiums

	
N/A

	
Prorated refund

Calculated based on the number of days of coverage in force divided by 30 days

	
Single Premiums – Borrower-Paid

	
N/A

	
See

Single Premium Refund Schedule

 

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

15

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

2

	2.04 Premium Refund Guidelines	
Cancellations

 

 

We will not provide a refund for any period more than 45 days prior to our receipt of the required mortgage insurance cancellation notice.

We will mail Premium refund checks to you. We will only refund annual and single Premiums of less than $5 upon request.

Nonrefundable Premium Plans

Our Borrower-paid nonrefundable Premium plans may be partially refundable if mortgage insurance is terminated under the Homeowners Protection Act. These refunds are based on our HPA refund schedules. Otherwise, Premium under these plans is nonrefundable.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

16

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

3

	 	Reinstatements

 

 

	
3

	
REINSTATEMENTS

	 	 	 
	 	
3.01

	
Reinstatement Requests

	 	
3.02

	
Reinstatement Exception

Questions? Contact MGIC Customer Service, 1-800-424-6442.

17

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

3

	 	
Reinstatements

 

 

3.01 Reinstatement Requests

 

We will consider requests to reinstate cancelled coverage.

Information Required

E-mail or fax the following information:

•   MGIC Certificate number

•   Borrower’s last name

•   Subject Property address

•   12-month Mortgage payment history

•   Reason for reinstatement and supporting documentation

•   Requestor’s name and contact information

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Reinstatement request”

•   Fax to 1-800-345-3291

We will contact you if we require additional information. After review, we will approve or deny your request.

If we approve the reinstatement request, we may generate a reinstatement bill. If we receive the Premium payments by the Premium due date indicated on the reinstatement bill, we will reinstate coverage retroactively to the termination effective date.

 

3.02 Reinstatement Exception

 

If an error or omission involving a servicing transfer results in unpaid Premium and insurance coverage is terminated, we will reinstate coverage on the affected Loans if we receive the following within 60 days after expiration of the Premium payment grace period:

•   Notification of the servicing transfer

•   Payment of the entire renewal Premium for all affected Loans

Information Required

E-mail or fax the following information:

•   MGIC Certificate number

•   Borrower’s name

•   Subject Property address

•   New Servicer’s name and contact information

•   Requestor’s name and contact information

•   Effective date of servicing transfer

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Reinstatement request”

•   Fax to 1-800-345-3291

Questions? Contact MGIC Customer Service, 1-800-424-6442.

18

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

4

	 	
Certificate

 

 

	
4

	
CERTIFICATE

CHANGES

	 	
	 	
After Certificate activation, you may need to change or correct Certificate Loan information, such as Borrower name and Property address, or insurance terms.

Submit all requests as soon as possible, including the change or correction details and reason. If we need additional documentation to process your request, we will contact you.

We will review your request and evaluate whether the changes increase our exposure according to our Underwriting Requirements in effect as of the date of the change request. Changes are subject to approval. If approved, we will issue a Certificate endorsement reflecting the change and update our records accordingly. If additional Premium is due as a result of the change, we will send you a bill.

Information Required

E-mail or fax the following information:

•   MGIC Certificate number

•   Borrower’s last name

•   Subject Property address

•   Detail of the change or correction requested, including current and new information

•   Reason for the change or correction

•   Requestor’s name and contact information

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Certificate changes”

•   Fax to 1-800-345-3291

 Report Servicer Loan Number changes via MGIC/Link Servicing — Select Change Loan Numbers in the main menu. (For other changes or corrections, or for multiple changes or corrections, use one of the other submission options noted previously.)

 For Certificate changes or corrections before activation, refer to our Underwriting Guide.

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

19

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

5

	 	
Servicing

 

 

	
5

	
SERVICING

TRANSFERS

	 	
	 	
Notify us within 60 days of acquiring servicing rights for a Loan. The new Servicer must be an approved MGIC Servicer. The Loan Transferor (seller), Loan Transferee (buyer) or Beneficiary may submit this notification.

Submission Options

•   MGIC/Link Servicing — Select Transfer Servicing in the main menu

•   Submit Notice of Change of Servicer form or required information (see below) via:

– Secure File Transfer (SFT) — Select Portfolio Audits/Servicing Transfers/Loan # Updates

– Secure e-mail to policy_info@mgic.com

– Fax to 1-800-711-6442

Information Required

In lieu of a Notice of Change of Servicer form, provide the following information via SFT, e-mail or fax:

•   MGIC Certificate number

•   Borrower’s last name

•   Selling Servicer’s name

•   New Servicer’s name and address

•   New Servicer’s Loan number, if available

•   Effective date of the change of Servicer

•   Requestor’s contact name and information

If your service bureau already provides us electronic notification of servicing transfers, do not send any additional documentation.

  

Questions? Contact MGIC Customer Service, 1-800-424-6442.

20

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

6

	 	
Assumptions

 

 

	
6

	
ASSUMPTIONS

	 	 	 
	 	
6.01

	
Assumptions With Release of Liability

	 	
6.02

	
Assumptions Without Release of Liability

Questions? Contact MGIC Customer Service, 1-800-424-6442.

21

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

6

	 	
Assumptions

 

 

An assumption is a change in ownership of the Property whereby the new owner agrees to assume primary liability for payment of the existing Mortgage. You are responsible for executing applicable legal documents for the assumption.

We recognize two types of assumptions; both require prior approval:

•   Assumption with release of liability, where the original Borrower is released from liability

•   Assumption without release of liability, where the original Borrower remains liable for repayment of the Loan

We will review and respond to all assumption requests within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

 

6.01 Assumptions With Release of Liability

 

We will underwrite the assuming Borrower based on the Underwriting Requirements in effect at the time the assumption is submitted to us.

Documentation Requirements

E-mail or fax the following documentation:

•   Completed Notice of Assumption form

•   Lender’s Loan Application

•   Verification of employment

•   Verification of deposit

•   Sales contract/reason for assumption

•   New Borrower’s current credit report

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Assumption request”

•   Fax to 1-800-345-3291

 

6.02 Assumptions Without Release of Liability

Documentation Requirements

E-mail or fax a completed Notice of Assumption form.

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Assumption request”

•   Fax to 1-800-345-3291

Questions? Contact MGIC Customer Service, 1-800-424-6442.

22

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

7

	 	
Partial

 

  

	
7

	
PARTIAL RELEASES

	 	
	 	
A partial release is the release of a portion of the collateral securing the Loan. Our prior approval is required for both a voluntary partial release and an involuntary partial release.

We will review and respond to all partial release requests within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

Our approval may be conditioned on a reduction of insurance coverage or covered principal balance proportionate with any reduction in the Property value. In the case of an involuntary partial release, you must require the Borrower to apply any funds received to reduce the outstanding principal balance of the Loan.

Documentation Requirements

E-mail or fax the following documentation:

•   Mortgage payment history for most recent 24-month period

•   New appraisal, reflecting the value of the Property after release (not applicable for involuntary)

•   Statement regarding the effect of the release on the marketability of the Property

•   Copy of the survey, indicating which portion of the Property is to be released

Submission Options

•   Secure e-mail to customer_service@mgic.com with the subject line “Partial release request”

•   Fax to 1-800-345-3291

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

23

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

8

	 	
Loan Status & Activity Report

 

 

	
8

	
LOAN STATUS &

ACTIVITY REPORT

	 	 	 
	 	
8.01

	
Ser vicing Report

	 	
8.02

	
Default Repor ting

Questions? Contact MGIC Customer Service, 1-800-424-6442.

24

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

8

	 	
Loan Status & Activity Report

 

 

8.01 Servicing Report

 

We require you to submit a monthly Servicing Report that provides the status of all Loans (both current and Delinquent Loans). Report this information on or before the 25th day of each month for the prior month’s activity. For more information on timing requirements, report components and reporting options, see Servicing Report.

8.02 Default Reporting

8.02.01 Requirements

 

Initial Notice of Default

We require you to notify us when a Loan becomes two consecutive payments past due. File a Notice of Default no later than the 25th day of the month in which the Borrower’s second consecutive missed payment remains unpaid.

Subsequent Monthly Default Reporting

We require you to continue providing monthly updates for all Loans that remain in Default. Report the status of each Loan in Default on or before the 25th day of each month, and continue until a Claim is submitted, or no payment is 30 days or more Delinquent.

8.02.02 Reporting Options

 

Automated Default Reporting (ADR)

Report Delinquent Loan information via an automated data file in an industry- recognized format. ADR is supported by most service bureaus and is the preferred reporting method of Servicers. If you report via ADR, do not submit a Notice of Default or Monthly Delinquency Loan Status Report.

If a Loan previously reported Delinquent is not on the current month’s ADR file, we will send you a Monthly Exception Audit (MEA) report. Review the MEA and provide Loan updates as applicable.

For more information about ADR, see (18.03) or contact ecommerce@mgic.com.

MGIC/Link Servicing

File a Notice of Default and provide monthly updates on Delinquent Loans using our online tool:

•   Log in to MGIC/Link Servicing from www.mgic.com

•   Select File/Update a Default in the main menu

•   Enter the requested information

Questions? Contact MGIC Customer Service, 1-800-424-6442.

25

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

8

	8.02 Default Reporting	
Loan Status & Activity Report

 

 

Manual Reporting Options

Submit Notice of Default (NOD) forms and Monthly Delinquency Loan Status Reports that we provide for you to update via:

•   Secure File Transfer (SFT) — Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

•   Fax to 1-800-353-8781

Questions? Contact MGIC Customer Service, 1-800-424-6442.

26

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

9

	 	
Loan Modifications

 

 

	
9

	
LOAN

MODIFICATIONS

	 	 	 
	 	
9.01

	
Reporting Modifications

	 	
9.02

	
Modification Guidelines for Current Loans

	 	
9.03

	
Modification Guidelines for Delinquent Loans

Questions? Contact MGIC Customer Service, 1-800-424-6442.

27

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

9

	 	
Loan Modifications

 

 

9.01 Reporting Modifications

 

A Loan modification is any change in the terms of the Loan including principal balance, interest rate, payment terms or amortization schedule, regardless of whether Loan status is current or Delinquent. All Loan modifications require our approval. Obtain approval by:

•   Complying with our delegated guidelines, or

•   Submitting a modification request for approval prior to implementing the modification terms

See (9.02) and (9.03) for more information on delegated authority and when you should submit a modification for prior approval.

Report Delinquent Loan modifications that meet our delegated guidelines (9.03) within 30 days of the date the modification is effective. Submit any Loan modification that does not meet our delegated guidelines for our review prior to implementing the modification terms.

Upon receipt of your Loan modification request, we will review the Loan information and respond with either an approval or denial within 10 Business Days. We will send you our response in a letter for individual Loan modification submissions, or a decision report for files submitted containing multiple Loan modifications.

If we approve a Loan modification, our approval notification may include a limitation of coverage of capitalized principal.

If we deny a Loan modification due to missing documentation, our denial notification will indicate the information we need to evaluate your request. If you submitted a file containing multiple Loan modifications, we will return your data file and indicate the information still needed. Submit a new request with the required information.

You may need to remit additional Premium, based on the modified principal balance, subject to our limitation of capitalized principal. All Premium is due within 60 days of approval notification. If you do not proceed with an approved modification and Premium payment amount is affected, notify us within 60 days of our approval so we may correct our Premium billing records.

9.01.01 Reporting Individual Modifications

 

Submission Options

•   MGIC/Link Servicing — Select Loan Modifications in the main menu

•   Complete our MGIC Notice of Modification web form

•   Submit Notice of Loan Modification form via:

– Secure File Transfer (SFT) — Select Loan Modifications

– Secure e-mail to loanmodrequests@mgic.com

  

Questions? Contact MGIC Customer Service, 1-800-424-6442.

28

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

9

	9.01 Reporting Modifications	
Loan Modifications

 

 

9.01.02 Reporting Multiple Modifications

 

Submission Options

•   Submit a Loan Modification Submission Spreadsheet via:

– MGIC/Link Servicing — Select Loan Modifications in the main menu

– Secure File Transfer (SFT) — Select Loan Modifications

– Secure e-mail to loanmodrequests@mgic.com

9.02 Modification Guidelines for Current Loans

 

Loans that are not Delinquent may be eligible for modification, subject to our approval prior to implementing the modification terms.

Modification Guidelines for Current Loans

	
Modification Terms

	
Modification Guidelines for Current Loans

	
Loan Purpose

	
Reasonable and customary closing/financing costs and prepaids may be added to the Loan, but may not exceed 2% of the unpaid principal balance or $2,500, whichever is less

No cash back to the Borrower

	
Loan Type and Term

	
Fully amortizing, fixed-rate up to 40 years

Fully amortizing ARM with fixed payment for the first 5 years

Ineligible: Negative amortization (potential or scheduled), temporary buydown, GPM, interest-only

	
Property Value

	
We rely on the Origination Valuation of the existing Loan

	
Occupancy

	
Cannot change from the original Loan

Coverage percentage and Premium rate will not change from the existing Loan

 

9.03 Modification Guidelines for Delinquent Loans

 

For Delinquent Loans, offer a Loan modification when the Borrowers have the desire and financial ability to continue making Mortgage payments after the Loan is modified.

Delegated Guidelines for Loan Modifications

•   Interest rate — Same or lower than premodification rate, and

•   Term — Fully amortizing up to 50 years from the Loan Origination date, and

•   Loan meets the Modification Capitalization Guidelines for Delinquent Loans (see next table)

Questions? Contact MGIC Customer Service, 1-800-424-6442.

29

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

9

	9.03 Modification Guidlines for Delinquent Loans	
Loan Modifications

 

 

Modification Capitalization Guidelines for Delinquent Loans

	
Policy Type

	
Loan Capitalization Guidelines

	
MGIC Approval With or Without Limitations

	
Primary

	
Modified UPB <110% of original

UPB

	
Approval without limitations

	
Modified UPB >110% of original UPB, and Number of PITI payments capitalized 0-12 months, and Payment (P&I) reduced or stays the same

	
Approval without limitations

	
Modified UPB >110% of original UPB, and Number of PITI payments capitalized >12 months, and/or Payment (P&I) increases

	
Approval with limitations

	
Pool or Primary With Pool

	
Modified UPB <105% of original UPB

	
Approval without limitations

	
Modified UPB >105% of original UPB, and Number of PITI payments capitalized 0-6 months, and Payment (P&I) reduced by 25% or more

	
Approval without limitations

	
Modified UPB >105% of originalUPB, and Number of PITI payments capitalized >6 months, and/or Payment (P&I) reduced by less than 25%

	
Approval with limitations

Questions? Contact MGIC Customer Service, 1-800-424-6442.

30

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

10

	 	
Other Loan Workouts

 

 

	
10

	
OTHER LOAN

WORKOUTS

	 	 	 
	 	
10.01

	
Foreclosure Sale Postponement

	 	
10.02

	
Forbearance Plan

	 	
10.03

	
Repayment Plan

	 	
10.04

	
Shor t Sale and Deed in Lieu of Foreclosure

Questions? Contact MGIC Customer Service, 1-800-424-6442.

31

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

10

	 	
Other Loan Workouts

 

 

Our Master Policy requires that you assist and cooperate with us in preventing and mitigating our losses. Offer Loan Workouts such as repayment plans, forbearance plans or Loan modifications (9.0) to any Borrowers who have the ability to cure a Delinquency in compliance with industry standards and Applicable Law.

You may perform the following Loan Workouts as long as the terms comply with our guidelines for delegated authority, which apply to primary coverage and pool or second layer coverage. Delegated authority can be revoked upon notice from us.

Loan Workouts that fall outside of your delegated authority require our prior approval before implementation.

 

10.01 Foreclosure Sale Postponement

You may postpone a scheduled foreclosure sale in order to pursue a forbearance plan, repayment plan, Loan modification or short sale.

Foreclosure sale postponements for any other reason require our prior approval.

Information Required

•   Date of foreclosure initiation

•   Timeline needed for postponement

•   Information detailing the reason for postponing the foreclosure sale

Submission Options

•   MGIC/Link Servicing — Select Other Workout Types in the main menu

•   Secure File Transfer (SFT) —Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

We will review and respond to your request within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

 

10.02 Forbearance Plan

10.02.01 Delegated Authority

You have delegated authority to complete a forbearance plan on Loans that meet the following criteria:

•   The forbearance term does not exceed six months from the Loan due date

•   The Borrower is unable to make full monthly payments

•   The forbearance plan is part of a broader Workout strategy for home retention or sale

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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	10.02 Forbearance Plan	
Other Loan Workouts

 

 

•   At the conclusion of the forbearance agreement, one of the following actions occurs:

– The Loan is no longer in Default, either through Borrower payments or the execution of a Loan modification or repayment plan

– The Loan is paid in full

– The Property is sold

 

10.02.02 Nondelegated Requirements

Forbearance plans that do not meet the delegated authority guidelines require our prior approval before implementation.

Information Required

•   Terms of the forbearance plan

•   A complete financial package disclosing all income, assets and expenses from the last two months

•   Letter of hardship written by the Borrowers or a personal representative

•   Proof of the Borrowers’ ability to resolve the Delinquency

Submission Options

•   MGIC/Link Servicing — Select Other Workout Types in the main menu

•   Secure File Transfer (SFT) — Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

We will review and respond to your request within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

 

10.03 Repayment Plan

10.03.01 Delegated Authority

You have delegated authority to execute a repayment plan. The repayment term may not exceed six months from the Loan due date.

10.03.02 Nondelegated Requirements

Repayment plans that do not meet the delegated authority guidelines require our prior approval before implementation.

Information Required

•   Terms of the repayment plan

•   A complete financial package disclosing all Borrowers’ income, assets and expenses from the last 2 months

•   A letter of hardship written by the Borrowers or a personal representative

•   Proof of the Borrowers’ ability to resolve the Delinquency

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

10

	10.03 Repayment Plan	
Other Loan Workouts

 

 

Submission Options

•   MGIC/Link Servicing — Select Other Workout Types in the main menu

•   Secure File Transfer (SFT) — Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

We will review and respond to your request within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

 

10.04 Short Sale and Deed in Lieu of Foreclosure

 

Short sales or deeds in lieu may be appropriate Loan Workouts when all home retention options have been exhausted, and the Borrowers are unable or unwilling to continue making their full Mortgage payments. We prefer a short sale under these circumstances, but recognize that there are situations in which a deed in lieu of foreclosure may be an appropriate Workout option.

 On Fannie Mae or Freddie Mac Loans, follow investor guidelines. We have delegated approval authority to Fannie Mae and Freddie Mac for short sale and deed in lieu Workouts.

 

10.04.01 Delegated Authority

You have delegated authority to complete a Borrower-titled short sale or deed in lieu on all non-GSE Loans regardless of occupancy type where the Borrowers do not qualify for a Loan modification, and do not have the long-term financial ability to continue paying their full Mortgage payment, subject to compliance with the following guidelines:

Short Sale

•   Unless foreclosure has been initiated, the Borrowers must meet one of the Allowable Hardship Scenarios (see next table)

•   Sale price is based on an interior Property valuation completed within the past 90 days or, at your discretion, 120 days

•   Variance between the “as-is” and “repaired” values is <15%

•   Net Proceeds equals 82% or higher of the as-is value

•   Borrowers must not receive any funds from the sale of the Property, including relocation assistance or any other incentives

•   Borrowers must not retain or regain ownership of the Property

Deed in Lieu

•   Unless foreclosure has been initiated, the Borrowers must meet one of the Allowable Hardship Scenarios (see next table) OR have filed for bankruptcy

•   The scheduled foreclosure sale date must be more than 60 days from the date of approval of the deed in lieu and may not be postponed to allow for deed in lieu consideration

•   Title to the Property must be free and clear of all subordinate liens or encumbrances

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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	10.01 Short Sale and Deed in Lieu of Forclosure	
Other Laon Workouts

 

 

Allowable Hardship Scenarios

	
Delinquency

	
Stated Hardship Reason

	
Credit

Score

	
Current or < 60 Days

	
•   Death

•   Long-term/permanent disability

•   Distant employment transfer, including Permanent Change of Station (PCS) orders, greater than 50 miles

	
Not

Applicable

	
> 60-120 Days

	
•   Death

•   Long-term/permanent disability

•   Distant employment transfer, including Permanent Change of Station (PCS) orders, greater than 50 miles

•   Unemployment outside of the Borrower’s control

•   Divorce

	
Not

Applicable

	
> 120 Days

	
Any hardship reason

	
< 620

Borrower Contribution Requirements

MGIC delegated (Non-GSE):

•   It is your responsibility to determine whether a Borrower contribution is permissible under Applicable Law

•   We do not require you to obtain a contribution from the Borrower; doing so is at your discretion

•   If you do obtain a contribution, the following requirements apply:

– Cash contributions must be paid to you at closing or upon execution of the deed in lieu. We will reduce the Insurance Benefit by the cash contribution amount.

– Execute promissory notes according to our promissory note guidelines

(see next section)

Promissory Note Guidelines

•   Monthly payment should be affordable for the Borrowers, but no lower than $50 per month

•   Borrowers must sign and date the promissory note at the closing of the short sale or upon execution of the deed in lieu

•   The note must be payable to Mortgage Guaranty Insurance Corporation

•   Send the original, signed promissory note referencing the MGIC Certificate number to:

 

Shellpoint Mortgage Servicing

55 Beattie Place, Suite 110, MS #003

Greenville, SC 29601

Phone: 1-800-365-7107

Shellpoint will send the Borrower a welcome letter and perform all servicing activities on our behalf.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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10

	10.04 Short Sale and Deed in Lieu of Foreclosure	
Other Loan Workouts

 

 

Closing Provisions (Short Sales Only)

Second lien payoff provisions apply to second mortgages owned by a third party (a legal entity unaffiliated with the Servicer).

If a second Mortgage exists, and we elect the Loss on Property Sale Option (12.06) in settlement of the Claim, we will allow the lesser of $6,000 or an amount not to exceed 50% of the current outstanding second lien amount to the second lien holder to be included in the Calculated Loss.

If a second Mortgage exists, and we elect the Percentage Option (12.06) in settlement of the Claim, we have no requirements or limitations on the second lien payoff provision.

10.04.02 Nondelegated Requirements

Short sales and deeds in lieu that do not meet the delegated authority guidelines require our prior approval before the sale or deed in lieu is completed.

Documentation Requirements

•   Borrowers’ Financial Analysis

•   Documentation for all Borrowers’ sources of income from the last two months, including but not limited to, paystubs and any asset accounts that provide 1099 income from interest or dividends (such as checking, savings and investment accounts; money markets; CDs; stocks; bonds; trusts; and annuities)

•   Federal tax returns for the last year or IRS Form 4506-T, Request for Transcript of Tax Return, completed and signed by the Borrowers

•   Letter of hardship written by the Borrowers or a personal representative indicating the reason for Default

•   Financials, income and expense breakdown, current within the last 90 days

•   Recent credit report dated within the last 90 days

•   Estimated HUD-1 Settlement Statement or Net Sheet (short sale only)

•   Executed Offer to Purchase agreement (short sale only)

•   Loan payoff statement, including all fees and costs within the last 30 days

•   Broker’s Price Opinion (BPO) or an appraisal no more than 90 days old — or up to 120 days old, at your discretion — including interior photographs

Submission Options

•   MGIC/Link Servicing — Select Short Sale or Deed in Lieu in the main menu

•   Secure File Transfer — Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

We will review and respond to your request within 10 Business Days with either an approval or denial. If we require additional documentation to evaluate the request, we will deny the request and indicate the information we still need. Submit a new request with the required documentation.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

11

	 	
Foreclosure

 

  

	
11

	
FORECLOSURE

	 	 	 
	 	
11.01

	
Foreclosure Commencement

	 	
11.02

	
Bankruptcy

	 	
11.03

	
Preserving our Deficiency Rights

	 	
11.04

	
Foreclosure Bidding

	 	
11.05

	
Foreclosure Completion

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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11

	 	
Foreclosure

 

 

11.01 Foreclosure Commencement

 

If you cannot resolve a Default through a Loan Workout, initiate foreclosure by filing a complaint in the appropriate court or publishing a notice of sale, or by such process as required by Applicable Law, by the later of:

•   30 days after the date that the Loan remains in Default for six consecutive months, or

•   60 days after the earliest date after such six-month period that Appropriate Proceedings may be commenced under Applicable Law

11.02 Bankruptcy

In the event of Chapter 7 or Chapter 13 bankruptcies, initiate foreclosure within 60 days after the first of the following occurs:

•   The automatic stay is lifted

•   The bankruptcy case is dismissed

•   The Borrowers are discharged

For a Chapter 13 bankruptcy, file a petition for relief from the bankruptcy stay within 60 days after the Borrower has missed 2 consecutive payments under the bankruptcy plan.

Report a Bankruptcy

If a bankruptcy is filed on a Delinquent Loan, report the bankruptcy to us through the monthly Default reporting process. For reporting options, see (8.02).

 

11.03 Preserving our Deficiency Rights

File the appropriate action(s) preserving our right to pursue a deficiency in conformity with state foreclosure statutes. We may pursue Deficiency Judgment in the following states:

AL, AR, CO, CT, DC, DE, FL, HI, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, NC, NH, NM, NV, OH, OK, RI, SC, TN, TX, UT, VA, WV

If we intend to pursue a Deficiency Judgment, we may request additional documentation upon Claim submission.

If you would like to request a deficiency waiver, send a secure e-mail to claimsquery@mgic.com. Include the following information with your request:

•   MGIC Certificate number

•   Borrower’s name

•   Property address

•   Total debt

•   Value (BPO or appraisal) no more than 120 days from approval

•   Reason for the request

•   Requestor’s name and contact information

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Foreclosure

 

 

11.04 Foreclosure Bidding

 

Bid an amount that protects our rights, including the right to pursue Deficiency Judgment if applicable. To determine the proper bid amount:

 

•   If Freddie Mac is the GSE Beneficiary on the Loan, refer to Freddie Mac’s guide

•   For all other Beneficiaries, use the state reference table and bid calculation instructions in this guide

If the bid calculation exceeds the total Mortgage indebtedness, bid the total debt amount.

 

11.04.01 State Reference Table

	
Property

State

	
Bidding Instructions

	 	
Property

State

	
Bidding Instructions

	
AK

	
Greater of 85% FMV or investor guidelines

	 	
ND

	
Greater of 85% FMV or investor guidelines

	
AL

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
NE

	
Greater of 85% FMV or investor guidelines

	
AR

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
NH

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
AZ

	
Greater of 85% FMV or investor guidelines

	 	
NJ

	
Start at $100, up to greater of 85% FMV or investor guidelines

	
CA

	
Greater of 85% FMV or investor guidelines

	 	
NM

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
CO

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
NV

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
CT (1)

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
NY

	
Greater of 85% FMV or investor guidelines

	
DC

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
OH

	
Start at 2/3 Sheriff Appraisal, up to greater of 85% FMV or Make Whole Amount if required by investor

	
DE

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
OK

	
Start at 2/3 Sheriff Appraisal, up to greater of 85% FMV or Make Whole Amount if required by investor

	
FL

	
Start at $100, up to greater of 85% FMV or Make Whole Amount if required by investor

	 	
OR

	
Greater of 85% FMV or investor guidelines

	
GA

	
Greater of 85% FMV or investor guidelines

	 	
PA

	
Start at Sheriff cost, up to greater of 85% FMV or Make

Whole Amount if required by investor guidelines

	
HI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
RI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
IA

	
Greater of 85% FMV or investor guidelines

	 	
SC (2)

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
ID

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
SD

	
100% of total debt

	
IL

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
TN

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
IN

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
TX

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
KS

	
100% of total debt

	 	
UT

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
KY

	
Start at 2/3 Sheriff Appraisal up to greater of 85% FMV or Make Whole Amount if required by investor

	 	
VA

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
LA

	
Start at 2/3 Sheriff Appraisal up to greater of 85% FMV or Make Whole Amount if required by investor

	 	
VT

	
Greater of 85% FMV or investor guidelines

	
MA

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
WA

	
Greater of 85% FMV or investor guidelines

	
MD

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
WI

	
Greater of 85% FMV or investor guidelines

	
ME

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
WV

	
Greater of 85% FMV or Make Whole Amount if required by investor

	
MI

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
WY

	
Greater of 85% FMV or investor guidelines

	
MN

	
Greater of 85% FMV or investor guidelines

	 	
Guam

	
Greater of 85% FMV or investor guidelines

	
MO

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
Puerto

Rico

	
Greater of 85% FMV or investor guidelines

	
MS

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
Virgin

Islands

	
Greater of 85% FMV or investor guidelines

	
MT

	
Greater of 85% FMV or investor guidelines

	 	
FOOTNOTES

 

	 
	
NC

	
Greater of 85% FMV or Make Whole Amount if required by investor

	 	
(1) In a strict foreclosure action, we require that you file a motion within 30 days after the title vests, in order to preserve our deficiency rights. Please instruct your attorney accordingly.

 

(2) The deficiency should be set forth in the initial pleadings.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

11

	11.04 Foreclosure Bidding	
Foreclosure

 

 

11.04.02 Bid Calculation Instructions

 

Fair Market Value (FMV)

Use one of the following documents to determine the appropriate FMV:

•   A BPO less than 120 days old as of the foreclosure sale date

•   An appraisal less than 120 days old as of the foreclosure sale date

– You must use an appraisal where required by state statute

•   Bidding value derived via Fannie Mae’s valuation model

For variances between “as is” and “repaired” values:

•   If variance is 10% or less, use the “as is” value for FMV

•   If variance is greater than 10%, use the “repaired” value for FMV

Total Debt or Total Mortgage Indebtedness

The total amount of debt associated with the Mortgage includes principal, interest and any additional costs incurred (such as attorney fees and Property preservation costs).

Make Whole Amount

Fannie Mae defines the “make whole amount” as total Mortgage indebtedness less the amount of the anticipated mortgage Insurance Benefit. For questions regarding the make whole bid amount, contact your investor.

 

11.05 Foreclosure Completion

 

Diligently pursue completion of foreclosure in compliance with the foreclosure state time frames (17.01) and as we direct. If the foreclosure state time frame is exceeded on a Claim, the additional time may be covered if we determine that there have been diligent servicing and loss mitigation activities or events outside of the Servicer’s control (e.g., unavoidable court delays).

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

12

	 	
Claim

 

 

	
12

	
CLAIM

	 	 	 
	 	
12.01

	
Claim Requirements

	 	
12.02

	
Claim Filing

	 	
12.03

	
Claim Documentation Requirements

	 	
12.04

	
Claim Per fection

	 	
12.05

	
Claim Calculation and Cur tailment Methodology

	 	
12.06

	
Claim Settlement

	 	
12.07

	
Supplemental Claim

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

12

	 	
Claim

 

 

12.01 Claim Requirements

 

The submission of a Claim is a representation that the Claim and any supporting documentation submitted with the Claim is complete and accurate and that all conditions precedent to Claim submission under the applicable Master Policy have been met.

When you submit a Claim, provide us with the following:

•   A properly completed Claim (12.02) with all information and documentation required (12.03)

•   The Servicing File (12.03)

•   Information and documentation demonstrating that you or the Beneficiary has acquired Borrower’s Title to the Property, if applicable (12.03)

 

12.02 Claim Filing

 

Either you or the GSE Beneficiary may file primary coverage Claims, or pool or second layer coverage Claims.

Primary Coverage Claim Time Frame Requirements

File a Claim within 60 days of the earlier of:

•   Acquisition of Borrower’s Title

•   Completion of a Property Sale

In states where a redemption period exists, you have the option to file the Claim anytime after the foreclosure sale date, but no later than 60 days after the expiration of the redemption period.

Pool Coverage Claim Time Frame Requirements

File within 60 days after completion of the sale of the property.

Submission Options

•   Electronic Data Interface (EDI) X-12

– For questions or more information about EDI technology, e-mail ecommerce_services@mgic.com

•   MGIC/Link Servicing — Select File a Claim

•   Submit Claim form via:

– Secure File Transfer (SFT) — Select Claims Query

– Secure e-mail to claimsquery@mgic.com

– Fax to 1-800-353-8781

 

12.03 Claim Documentation Requirements

Loan Origination and Closing Files

Provide any applicable Loan Origination and Closing File documents not already submitted to us when you file the initial Claim. Loan Origination and Closing File documentation includes all information, data and materials created, received,

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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	12.03 Claim Documentation Requirements	
Claim

 

 

required, transmitted, stored or preserved in connection with the Origination of a Loan, such as:

•   1003/65 Original Loan Application

•   1008/1077 Uniform Underwriting and Transmittal Summary

•   Final AUS Findings/Feedback Report, if applicable

•   Appraisal and other Property valuation information, including all addenda, attachments, schedules, photographs and other information included by the appraiser

•   Credit report and all other credit documentation

•   Other credit and liabilities, such as child support documentation and divorce decree/separation information

•   Bankruptcy evidence of discharge/completion date

•   Evidence of debt satisfaction

•   Income and employment verification for all Borrowers such as: Verification of Employment (VOE), W-2s, paystubs, tax returns with all schedules, tax transcripts, evidence of receipt of rental income and lease agreements, and child support documentation

•   Asset verification for all Borrowers such as: Verification of Deposit (VOD); bank, retirement, money market and other account statements verified for assets to close and meet reserve requirements; source of funds letter; proof of sale of previous residence (HUD 1); and gift letter

•   Sales contract or equivalent with all addenda

•   Letter of explanation from Borrower or lender

•   Final HUD-1 Settlement Statement or other settlement statement signed by the Borrowers

•   Mortgage/Deed of Trust

•   Note and riders

•   Title insurance commitment

•   Homeowners insurance declaration page

Additional documentation may be required. For all potential Loan Origination and Closing File documentation requirements, contact us at customer_service@mgic.com or 1-800-424-6442 to obtain the Underwriting Guide in effect at the time the Loan was insured.

Servicing File

Provide all Servicing File documents from activity beginning on the date of Default through the Claim filing date (unless otherwise noted below) when you file the initial Claim. Servicing File documentation includes the following:

•   Loan Payment history from origination date to Claim filing date, including running principal, escrow and suspense balances

•   Servicing system notes, including servicing, collection, loss mitigation, bankruptcy, legal and foreclosure activity

•   ARM interest rate index, respective principal and interest payment changes, and effective date(s)

•   Terms of any Workouts including assumptions, partial releases, forbearance agreements, repayment plans, deeds in lieu and Loan modifications, whether completed or not

•   Hardship letter, recent credit report and Fannie Mae/Freddie Mac Form 710 (Uniform Borrower Assistance form/Financial Analysis form)

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Claim

 

 

•   Bankruptcy information including bankruptcy type, filing date, motion for relief filing date and date motion granted

•   If the foreclosure state time frame was exceeded, a chronology of events demonstrating efforts pertaining to collection, foreclosure, loss mitigation, bankruptcy, Loan repurchase or indemnification demands and other legal activities, as applicable

•   For GSE pool or second layer coverage, primary Claim form and Explanation of Benefits statement as applicable

•   All communications to and from the Borrower

Title Transfer Documentation

Provide documentation demonstrating evidence of title transfer when you file the initial Claim. Based on the type of title transfer, documentation includes the following:

	
Type of Title Transfer

	
Documentation

	
Foreclosure

	
•   Foreclosure deed

•   Sherriff’s expense breakdown, if applicable

•   Value (BPO, appraisal or other MGIC-approved value) determined no more than 120 days prior to foreclosure sale

	
Third-Party Outbid or

Redemption Proceeds

	
•   Evidence of third-party or redemption proceeds with itemization of funds

•   Bidding instructions with opening and final bid

•   Value (BPO, appraisal or other MGIC-approved value) determined no more than 120 days prior to foreclosure sale

	
Deed in Lieu of

Foreclosure

	
•   Deed transferring title

•   Deed in lieu approval letter

•   Value (BPO, appraisal or other MGIC-approved value) determined no more than 120 days prior to approval Additional documentation required for non-GSE delegated deeds in lieu only:

•   Terms of the promissory note or cash contribution, if they are not provided in the deed in lieu approval letter

•   Promissory note, if applicable

	
Presettlement Sale — Borrower

	
•   Sale approval letter

•   Final HUD-1 Settlement Statement

•   Interior value (BPO, appraisal or other MGIC-approved value) determined no more than 120 days prior to approval Additional documentation required for non-GSE delegated sales only:

•   Terms of the promissory note or cash contribution, if they are not provided in the deed in lieu approval letter

•   Promissory note, if applicable

	
Presettlement Sale — Servicer/Beneficiary REO

	
•   If not previously provided for REO sale (13.0):

–  Required documentation for offer approval, including interior value, cost of any repairs made and sale terms

– Final HUD-1 Settlement Statement

  

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Section

12

	12.03 Claim Documentation Requirments	
Claim

 

 

We may request certain documents to pursue a Deficiency Judgment (11.03), including:

•   Assignment of Mortgage

•   Assignment of foreclosure judgment

•   Limited Power of Attorney

•   Appointment of successor trustee

•   Foreclosure judgment if judicial state

•   Other state-specific foreclosure documents

If we elect to acquire the Property, we may require additional documentation (13.02).

Submission Options

Submit required documents via:

•   MGIC/Link Servicing — Select Upload Claim Documents

•   Secure File Transfer (SFT) – Select Claims Documents

•   Secure e-mail to claims_documents@mgic.com

12.04 Claim Perfection

Claim perfection occurs when we have received all required information and documentation and gained Property access if requested. Claim perfection timeline requirements depend on the applicable Master Policy.

We generally provide notifications as follows:

•   Within 20 days of filing your Claim, we will notify you of additional Claim requirements including any documentation we have not received

•   If after 30 days from our initial notification we do not receive the required documentation or the documentation is insufficient, we will provide a follow-up notification listing any outstanding items

•   If after 30 days from our second notification we do not receive the required documentation or the documentation is insufficient, we will provide a final notification

•   If the required documentation is not provided by the time frame indicated in the applicable Master Policy, we may deny the Claim

Property Access

We will notify you if we require Property access. If we have not obtained access by the time of Claim settlement, the Insurance Benefit may be reduced.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

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Claim

 

 

12.05 Claim Calculation and Curtailment Methodology

The Insurance Benefit is based on the Calculated Loss. This section includes a list of amounts that can be included on a Claim, as well as amounts that will not be covered. The amounts that can be included on a Claim include the unpaid principal balance, accrued and unpaid interest at the applicable note rate and Advances associated with servicing the Loan after the Default resulting in the Claim.

Generally, interest and Advances are includable in the Calculated Loss for the period of time from the date of Default through the date that the Claim is filed. On every Claim, we perform an assessment of the Servicer’s compliance with the terms of the Master Policy when determining the period of time for which interest and Advances will be covered on a Claim. Noncompliance with provisions of the Master Policy, including post-origination obligations, may result in a reduction of the Calculated Loss or Insurance Benefit. Such a reduction is referred to as a curtailment. Generally, the curtailment amount will be the sum of (1) any Advances paid by the Servicer and incurred during the curtailment period, and (2) unpaid interest accrued during the curtailment period. The curtailment period either begins on the date that we determine a post-origination obligation should have been commenced and ends on the date the post-origination obligation was actually commenced, or begins on the date that post-origination obligation should have been completed and ends on the date it was actually completed. The total number of days for the curtailment period(s) is deducted from the actual Claim filing date, resulting in what we refer to on the Explanation of Benefits (EOB) as the “Revised Claim Date”. However, for Loans insured under Master Policy 71-43342 (10/14), we will not cover more than 36 months of unpaid accumulated interest and Advances.

Post-Origination Obligations

The following are examples of some of the most common post-origination obligations that we will assess when determining the period of time for which interest and Advances will be covered or curtailed on a Claim:

•   Commencement and completion of Appropriate Proceedings (11.01, 11.05, 17.01)

•   Pursuit of a Borrower Workout (9.0, 10.0)

•   Pursuit of relief of stay or dismissal from a Borrower bankruptcy (11.02)

•   Adherence to our delegated guidelines for Loan Workouts, including Loan modifications and short sales (9.03, 10.04)

Nonresidential Property and Physical Damage

If a Property is not in the same condition when a Claim is filed that it was in on the Certificate Effective Date (ordinary wear and tear excepted), either because the Property is no longer considered a residential Property or because the Property sustained damage, we may curtail the Insurance Benefit by the amount we determine is the estimated cost of restoring the Property to its condition as of the Certificate Effective Date.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

46

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

12

	12.05 Claim Calculation and Curtailment Methodology	
Claim

 

 

Certain expenses should not be included on a Claim because they are not covered Advances under the Master Policy. The following are examples of some of the most common expenses not covered by the Master Policy:

•   Attorney fees incurred for work outside of the standard foreclosure proceedings such as attorney transfers, “robo-signing” issues and title issues and defects

•   Assignment of Mortgage expenses

•   Automated Valuation Model fees

•   Borrower outreach expenses such as field service fees and “door-knocking” fees

•   Homeowner assessments that are extinguished by the foreclosure

•   Expenses associated with Property Damage

•   Incentive fees

•   Late charges

•   Mortgage insurance Premiums

•   Tax penalties and interest

•   Technology fees, including connectivity, invoicing and processing fees

•   Transaction fees

•   Vendor fees

 

12.06 Claim Settlement

 

The Insurance Benefit is payable to you, or to Fannie Mae or Freddie Mac if either is the Beneficiary and has elected to receive the Insurance Benefit.

The Insurance Benefit in settlement of the Claim will be one of the following:

Percentage Option

The Insurance Benefit is the Calculated Loss, multiplied by the percentage of coverage.

Loss on Property Sale Option

The Insurance Benefit is the Calculated Loss less Net Proceeds, resulting in an Insurance Benefit less than the Percentage Option.

Acquisition Option

The Insurance Benefit is the Calculated Loss.

Anticipated Loss Option

The Insurance Benefit is the Calculated Loss less the estimated Net Proceeds, assuming the Property is in the same condition as it was on the Commitment date (reasonable wear and tear excepted). This option applies when:

•   We are not granted Property access, or

•   We do not receive a Good and Marketable Title, or

•   We are unable to assess estimated restoration costs related to the Physical Damage or Nonresidential Property Exclusions

Questions? Contact MGIC Customer Service, 1-800-424-6442.

47

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

12

	12.06 Claim Settlement	
Claim

 

 

Explanation of Benefits (EOB)

Your Explanation of Benefits (EOB) statement includes an explanation of any Insurance Benefit paid and any adjustments to the Claim amount.

Regardless of how you file a Claim, access its EOB via MGIC/Link Servicing (18.01). If you use Electronic Funds Transfer (EFT), you can view and print the EOB from the MGIC/Link Servicing Reports menu.

 

12.07 Supplemental Claim

 

You may file a supplemental Claim to request additional allowable Advances that were not included in the initial Claim. You must have incurred the allowable Advances prior to the date the initial Claim was submitted, and paid them prior to filing the supplemental Claim.

We must receive supporting documentation for all additional expenses pertaining to your filed supplemental Claim, such as invoices reflecting the expense(s).

To receive consideration of payment, submit the supplemental Claim and supporting documentation within 90 days of the initial Claim being paid.

12.07.01 File a Supplemental Claim

 

Submission Options

•   MGIC/Link Servicing — Select File a Claim

•   Submit Claim form via:

– Secure File Transfer (SFT) — Select Claims Query

– Secure e-mail to claimsquery@mgic.com

 

12.07.02 Submit Supplemental Claim Suppor ting Documentation

 

Submission Options

Provide any documentation that supports your filed supplemental Claim via:

•   MGIC’s Secure File Transfer (SFT) — Select Claims Query

•   Secure e-mail to claimsquery@mgic.com

Questions? Contact MGIC Customer Service, 1-800-424-6442.

48

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

13

	 	
Real Estate Owned (REO) Property Sales & Election of Acquisition

 

 

	
13

	
REAL ESTATE

OWNED (REO)

PROPERTY SALES

& ELECTION OF

ACQUISITION

OPTION

	 	 	 
	 	
13.01

	
Property Disposition for Primary Coverage

	 	
13.02

	
Election of Acquisition Option for Primary Coverage

	 	
13.03

	
Property Disposition for Pool or Second Layer Coverage

Questions? Contact MGIC Customer Service, 1-800-424-6442.

49

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

13

	 	
Real Estate Owned (REO) Property Sales & Election of Acquisition

 

 

Once you complete foreclosure, diligent efforts to market REO properties should continue through Claim resolution.

 

13.01 Property Disposition for Primary Coverage

Guidelines

After you complete foreclosure, list the Property for sale as soon as possible and continue to market it through Claim resolution. Our approval is not required on the listing. All offers acceptable by the Beneficiary require our approval until the Claim is resolved.

We will provide a response within 10 Business Days of receiving your request indicating if we approve the offer and if the offer will result in our election of the Loss on Property Sale Option (12.06).

If the sale terms change and we indicated we will elect the Loss on Property Sale Option (12.06), submit the revisions for our approval.

After closing, submit the Final HUD-1 Settlement Statement regardless of Claim filing status.

Information Required

•   Value estimate provided after an interior inspection (BPO, appraisal or other MGIC- approved value), no more than 120 days old

•   Itemized costs of any repairs made

•   Sale terms including offer amount, closing date, estimated closing costs for buyer and seller, and any other miscellaneous terms of sale

Submission

Submit required information via secure e-mail to reo_marketing@mgic.com.

 

13.02 Election of Acquisition Option for Primary Coverage If we elect the Acquisition Option (12.06), we will notify you of our initial decision and the need to submit required documentation.

Required documentation may typically include the following:

•   A recordable warranty deed (e.g., Grant Deed for California Property, Covenant Deed for Michigan Property) containing the normal and customary warranties and covenants in the usual and customary form (Quit Claim Deeds are not an acceptable form of conveyance)

•   All appropriate state and county transfer forms (executed, if required)

•   Evidence of Good and Marketable Title

•   Evidence that all Property taxes are paid current as of the Insurance Benefit payment date

•   If the Property is subject to a homeowners association/condo assessment, a written statement from the association showing that:

– All dues, assessments, penalties and interest are paid current, and

– All filed liens have been released or satisfied

Questions? Contact MGIC Customer Service, 1-800-424-6442.

50

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

13

	13.02 Election of Acquisition Option	
Real Estate Owned (REO) Property Sales & Election of Acquisition

 

Submission

Submit required documentation via secure e-mail to reo_marketing@mgic.com.

 

13.03 Property Disposition for Pool or Second Layer Coverage

Guidelines

We oversee the marketing activity of all REO properties with pool or second layer coverage. Our approval is required throughout this process.

Property Listing Approval

Submit the following for listing approval within 60 days after the title transfers through foreclosure or deed in lieu:

•   Two value estimates after an interior inspection (BPO, appraisal, or other MGIC- approved value), one obtained from the listing agent and one from an independent source

– For your convenience, you may obtain the second value estimate from MGIC; e-mail revsalessupport@mgic.com for more information

– Value estimates should include color photos and full repair addendums with brokers’ itemized estimates of all repairs

•   List price for marketing of the Property as-is or in a repaired state

•   Itemized general contractor’s bid for all repairs needed; provide a second bid for any repairs totaling more than $10,000

•   Appraisal from the Loan Origination

•   Contact name and phone number for an individual with access to the Property

•   Eviction proceedings start and end date, tenant or Borrower occupancy, and any other eviction information if applicable

Upon review, we will respond with listing instructions, including a strategy for marketing the Property in as-is or repaired condition.

Documentation Required During the Listing Period if the Property is not Under a Sales Contrac t

•   Provide the status of marketing activity and any recommendations on marketing strategy and listing price adjustments every 30 Business Days

•   Provide a value estimate after an interior inspection (BPO, appraisal or other MGIC- approved value) every 90 Business Days

Upon review of the documentation, we will contact you regarding any listing approval changes.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

51

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

13

	13.03 Property Disposition	
Real Estate Owned (REO) Property Sales & Election of Acquisition

 

 

Property Offer Approval

Property offers acceptable by the Beneficiary must be submitted for our approval.

Submit the sale terms including the offer amount, estimated closing date, estimated closing costs for buyer and seller including buyer closing costs being paid as a concession, estimated Net Proceeds, and any other miscellaneous terms of the sale.

We will provide a response within 10 Business Days of receiving your request indicating if we approve the offer.

If the sale terms change or the closing date is extended by more than 15 Business Days, submit these revisions for our approval.

After closing, submit the Final HUD-1 Settlement Statement regardless of Claim filing status.

Submission

Submit required documentation via secure e-mail to reo_marketing@mgic.com.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

52

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

14

	 	
Credible Evidence

 

 

	
14

	
CREDIBLE

EVIDENCE

	 	 
	 	
Examples of Credible Evidence as referenced in Master Policy 71-43342 (10/14) may include the following:

•   Automated database sources

•   Bank statement/gift letter reverification form/verification of deposit

•   Bank statement reverification form

•   Bankruptcy documents

•   Borrower sworn statements or other Borrower statements with corroborating evidence

•   Collection notes and/or hardship letter

•   Copy of earnest money and down payment checks

•   Documentation from Loan Origination and Closing File package

•   Employer interview

•   Gift donor, seller, Realtor® or settlement agent interview

•   Motor vehicle registration, hunting license or voter registration (primary residence only)

•   Neighbor(s) interview

•   Police report

•   Publicly available information such as courthouse records, internet articles and database searches

•   Relative/roommate interview

•   Review appraisal

•   Subject Property tax bill (primary residence only)

•   Tax return and/or W-2 including transcripts obtained with a 45060-T

•   Undisclosed installment debt: credit bureau

•   Undisclosed Mortgage: transaction history or Mortgage and updated credit bureau

•   Verification of employment and/or income reverification form

•   Verification of rent (if the Borrower rented)

Questions? Contact MGIC Customer Service, 1-800-424-6442.

53

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

15

	 	
Appeals

 

 

 

	
15

	
APPEALS

	 	 
	 	
To receive consideration, we must receive your appeal no later than 90 days after your receipt of the Explanation of Benefits (EOB) statement detailing the Insurance Benefit, Rescission Notice, Company Cancellation Notice or Claim Denial Notice.

 

Your submitted appeal should detail the appeal reason and include supporting documentation.

 

We will review your appeal and supporting documentation and respond no later than 60 days from the date we receive it.

 

Information Required

 

Submit the following via e-mail:

•   MGIC Certificate number

•   Borrower’s name

•   Servicer’s name

•   Specific reason for your appeal

•   Requestor’s name and contact information

•   Explanation and supporting documentation not previously provided (12.03)

 

Submission

 

Appeals for Rescission Notice, Company Cancellation Notice or Claim Denial Notice:

•   Secure e-mail to appeals@mgic.com

 

Appeals for a reduction of the Insurance Benefit:

•   Secure e-mail to claimsquery@mgic.com

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

54

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

16

	 	
US Treasury & GSE-Sponsored

 

 

	
16

	
US TREASURY &

GSE-SPONSORED

PROGRAMS

	 	 
	 	
 

We offer delegated authority for a variety of loss mitigation Workout options on Loans with primary insurance coverage, including several US Treasury/GSE-sponsored programs.

 

For details, see US Treasury & GSE-Sponsored Programs.

 

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

55

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

17

	 	
Exhibits

 

  

	
17

	
EXHIBITS

	 	 	 
	 	
17.01

	
Foreclosure State Time Frames

	 	
17.02

	
Claim Form

	 	
17.03

	
Claim Settlement Examples

Questions? Contact MGIC Customer Service, 1-800-424-6442.

56

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

17

	 	
Exhibits

 

17.01 Foreclosure State Time Frames

The table below lists the number of days we allow for completion of foreclosure, subject to additional time required for diligent servicing, loss mitigation activities and events outside of your control (e.g., unavoidable court delays). If the foreclosure state time frame is exceeded on a Claim, you must provide a chronology of events demonstrating efforts pertaining to collection, foreclosure, loss mitigation, bankruptcy and other legal activities as applicable (12.03). We will review the information to determine if additional days claimed will be allowed. For Loans insured under Master Policy 71-43342 (10/14), we will not cover more than 36 months of unpaid accumulated interest and Advances.

	
State

	
Method of Foreclosures

	
Foreclosure

Duration in Days

	 	
State

	
Method of Foreclosures

	
Foreclosure

Duration in Days

	
Alabama

	
Power of Sale

	
60

	 	
Mississippi

	
Trustee Sale

	
60

	
Alaska

	
Judicial

	
510

	 	
Missouri

	
Trustee Sale

	
60

	
Trustee Sale

	
120

	 	
Montana

	
Judicial

	
480

	
Arizona

	
Judicial

	
270

	 	 	
Power of Sale

	
120

	
Trustee Sale

	
120

	 	
Nebraska

	
Judicial

	
210

	
Arkansas

	
Power of Sale

	
120

	 	 	
Trustee Sale

	
90

	
California

	
Judicial

	
720

	 	
Nevada

	
Judicial

	
480

	
Trustee Sale

	
120

	 	 	
Trustee Sale

	
120

	
Colorado

	
Trustee Sale

	
165

	 	
New Hampshire

	
Power of Sale

	
60

	
Connecticut

	
Power of Sale

	
240

	 	
New Jersey

	
Judicial w/ Deficiency

	
480

	
Strict Foreclosure

	
180

	 	 	
Judicial w/o Deficiency

	
300

	
Delaware

	
Judicial

	
210

	 	
New Mexico

	
Judicial

	
180

	
District of Columbia

	
Trustee Sale

	
60

	 	
New York

	
Judicial

	
300

	
Florida

	
Judicial

	
210

	 	
North Carolina

	
Trustee Sale

	
60

	
Georgia

	
Power of Sale

	
60

	 	
North Dakota

	
Judicial

	
180

	
Guam

	
Non-judicial

	
180

	 	
Ohio

	
Judicial

	
270

	
Hawaii

	
Judicial

	
210

	 	
Oklahoma

	
Judicial

	
180

	
Idaho

	
Trustee Sale

	
360

	 	
Oregon

	
Judicial

	
510

	
Judicial for properties with 20+ acres

	
180

	 	 	
Trustee Sale

	
150

	
Illinois

	
Judicial w/ Deficiency

	
300

	 	
Pennsylvania

	
Judicial

	
210

	
Judicial w/o Deficiency

	
270

	 	
Puerto Rico

	
Judicial

	
360

	
Judicial w/ Abandonment

	
120

	 	
Rhode Island

	
Power of Sale

	
60

	
Indiana

	
Judicial

	
240

	 	
South Carolina

	
Judicial w/ Deficiency

	
180

	
Iowa

	
Judicial w/ Deficiency

	
480

	 	 	
Judicial w/o Deficiency

	
150

	
Judicial w/o Deficiency

	
300

	 	
South Dakota

	
Judicial

	
300

	
Judicial w/o Deficiency

(Non Owner Occupied)

	
180

	 	
Tennessee

	
Trustee Sale

	
60

	
Non-Judicial

	
120

	 	
Texas

	
Judicial

	
180

	
Kansas

	
Judicial

	
270

	 	 	
Power of Sale

	
40

	
Kentucky

	
Judicial

	
180

	 	
US Virgin Islands

	
Judicial

	
330

	
Louisiana

	
Judicial

	
180

	 	
Utah

	
Judicial

	
330

	
Maine

	
Judicial

	
330

	 	 	
Trustee Sale

	
150

	
Maryland

	
Trustee Sale

	
105

	 	
Vermont

	
Judicial

	
240

	
Massachusetts

	
Judicial

	
210

	 	
Virginia

	
Trustee Sale

	
60

	
Michigan

	
Judicial

	
360

	 	
Washington

	
Judicial

	
510

	
Power of Sale

	
270

	 	 	
Trustee Sale

	
150

	
Power of Sale w/ Abandonment

	
120

	 	
West Virginia

	
Trustee Sale

	
90

	
Power of Sale for properties with 3+ acres

	
450

	 	
Wisconsin

	
Judicial w/ Deficiency

	
450

	
Minnesota

	
Judicial

	
480

	 	 	
Judicial w/o Deficiency

	
270

	 	
Power of Sale

	
270

	 	
Wyoming

	
Power of Sale

	
225

	 	 	 	 	 	 	 
	 	 	 	 	
The foreclosure method with the shortest duration for each state will determine the applicable state time frame unless another foreclosure method is directed by the GSE Beneficiary or us.

Questions? Contact MGIC Customer Service, 1-800-424-6442.

57

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

17

	 	
Exhibits

 

 

17.02 Claim Form

 

File a Claim using MGIC/Link Servicing’s secure, web-based form. If you’re unable to use MGIC/Link Servicing, complete the editable PDF version of the Claim form.

17.03 Claim Settlement Examples

 

The following illustrates examples of the four possible settlement options (12.06) using a Calculated Loss of $200,000.

Settlement Options

Insurance Benefit calculations based on a Loan with 30% coverage

 

	
Percentage Option

	
Calculated Loss multiplied by percentage of coverage

	
$200,000 Calculated Loss

x 30% = $60,000 Insurance

Benefit

	
 

Loss on Property Sale

Option

	
 

Calculated Loss less Net Proceeds resulting in an Insurance Benefit less than the Percentage Option

	
 

$200,000 Calculated Loss

- $180,000 Net Proceeds =

$20,000 Insurance Benefit

	
 

Acquisition Option

	
 

Calculated Loss

	
 

$200,000 Insurance Benefit

	
 

Anticipated Loss

Option

	
 

Calculated Loss less estimated Net Proceeds assuming the Property is in the same condition as it was on the Commitment date, reasonable wear and tear excepted

	
 

$200,000 Calculated Loss

– ($180,000 estimated Net

Proceeds - $10,000 estimated

reasonable wear-and-tear

excepted) = $30,000

Insurance Benefit

Questions? Contact MGIC Customer Service, 1-800-424-6442.

58

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

18

	 	
Servicing

 

  

	
18

	
SERVICING TOOLS

	 	 	 
	 	
18.01

	
MGIC/Link Servicing

	 	
18.02

	
Secure File Transfer (SFT)

	 	
18.03

	
Automated Default Reporting (ADR)

	 	
18.04

	
Electronic Funds Transfer (EFT)/ACH

	 	
18.05

	
Electronic Data Interface (EDI)

Questions? Contact MGIC Customer Service, 1-800-424-6442.

59

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

18

	 	
Servicing

 

 

18.01 MGIC/Link Servicing

 

MGIC/Link Servicing is a secure, automated support hub for all your servicing needs — from activation of coverage to Claim resolution. MGIC/Link Servicing allows you to view Loan status and report/file applicable information.

To Sign Up

Register for your login ID and password at www.mgic.com/signup.

Report Servicing Transfers

Select Transfer Servicing in the main menu.

Report Individual Loan Number Changes

Select Change Loan Numbers in the main menu.

Report Cancellation of Mortgage Insurance

Select Cancel Coverage in the main menu.

Report Loans in Default and Default Status

Select File/Update a Default in the main menu.

Submit Loan Modifications

Select Loan Modification in the main menu to:

•   Request approval for individual or multiple Loan modifications (9.0)

•   Upload documentation for Loan modifications, including the Loan Modification Submission spreadsheet

Submit Loan Workouts

Select Short Sale in the main menu to:

•   Request approval and submit documentation for short sales that fall outside of your delegated authority (10.04)

•   Provide additional information on short sale requests pending approval

•   Request an extension approval

Select Deed in Lieu in the main menu to submit requests for approval and supporting documentation for a deed in lieu that falls outside of your delegated authority (10.04).

Select Other Workout Types in the main menu to submit requests for approval for the following Workout types:

•   Foreclosure sale postponement (10.01)

•   Forbearance (10.02)

•   Repayment plans (10.03)

•   Other unlisted programs that require our review and approval

Questions? Contact MGIC Customer Service, 1-800-424-6442.

60

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

18

	18.01 MGIC/Link Servicing	
Servicing Tools

 

 

File Individual Claims

Select File a Claim in the main menu and enter the Certificate number.

The online Claim form will open prefilled with the Servicer, mortgage insurance, Borrower and Property location information. The form also calculates totals for you. You have the option to save your work and finish at your convenience. Once completed, submit the Claim.

Uploading Documentation

Select Claim Documents in the main menu to upload documentation:

•   Prior to filing a Claim, or

•   Immediately after filing a Claim, or

•   Upon our request for missing or additional documentation

After we have notified you that we have registered your Claim, use the Claim Documents main menu option to:

•   Determine specific missing documents you need to submit on a per-Claim basis

•   Create reports that show all of your Claims and any outstanding documents requested

For more information, view MGIC/Link Claims Pending Doc Request training tutorial.

Check Claim Status/Explanation of Benefits (EOB)

Regardless of how you file a Claim, you can check Claim status securely and easily via MGIC/Link Servicing. Once a Claim has been settled, you can download an EOB.

•   In the MGIC/Link Servicing main menu, select Policy Inquiries

•   Provide the Certificate number, Borrower Social Security Number or Servicer Number and select Claim as your inquiry type

View Elec tronic Funds Transfer (EFT) Claim Payment Details

Select Reports in the main menu to view payment details on the same day funds are transferred, and to access:

•   EFT reconciliation reports with daily totals of Claim funds transferred

•   Individual Claim payments

•   EOB statements for each Claim

 

18.02 Secure File Transfer (SFT)

 

All data transmissions are encrypted using the strongest available industry standards, Secured Socket Layer (SSL). Send and receive any file type, such as PDF, XLS and DOC.

 

To Sign Up

Register for your login ID and password at www.mgic.com/signup.

Support

•   View or print our SFT step-by-step instructions

•   View our Send and receive files through SFT training tutorial

Questions? Contact MGIC Customer Service, 1-800-424-6442.

61

MGIC SERVICING GUIDE

EFFECTIVE OCTOBER 1, 2014

 

	 	
Section

18

	 	
Servicing Tools

 

 

18.03 Automated Default Reporting (ADR)

 

Report Loans in Default and their status (8.02) electronically via ADR.

How ADR Works

After the 15th of every month, your Loan database is scanned to gather information about Delinquent MGIC-insured Loans. This information is loaded into an electronic file that you deliver to us.

To Get Started

Step 1: Portfolio review

We recommend performing a portfolio review on all of your MGIC-insured Loans. This review ensures that your files — and ours — are accurate. To assist you, we can provide a file or listing of your current MGIC-insured Loans.

Step 2: Data verification

Once the review is complete and any discrepancies are resolved, Automated Default Reporting begins. To make sure your Delinquent Loans are accurately transmitted, we typically verify your data for the first 2 file submissions. During this time, continue to report your Delinquencies manually.

To set up ADR, contact us at ecommerce_services@mgic.com.

 

18.04 Electronic Funds Transfer (EFT)/ACH EFT service expedites your Claim payments by allowing us to electronically transfer funds into your account upon completion of the Claim. We provide an EFT reconciliation report via MGIC/Link Servicing listing all Loans receiving payment one Business Day prior to deposit.

To Get Started

Complete and fax an Authorization for Electronic Receipt of Payment form to our Cash Management Department, (414) 347-6354.

Upon receipt of the form, we will:

•   Test to ensure the successful transfer of future funds

•   Work with you to set up EFT service for your designated branches or offices

•   Notify you of the date EFT Claim payments will be activated

•   Provide instructions for accessing payment detail via MGIC/Link Servicing

 

18.05 Electronic Data Interface (EDI)

 

We offer secure, electronic document submission through Electronic Data Interface (EDI) technology. For more information, contact ecommerce_services@mgic.com.

 

Questions? Contact MGIC Customer Service, 1-800-424-6442.

62

 

  

Mortgage Guaranty Insurance Corporation

MGIC Plaza, Milwaukee, Wisconsin 53202 • www.mgic.com

© 2014 Mortgage Guaranty Insurance Corporation. All rights reserved.

71-43444 9/14

 

 

Exhibit E

Interim Reconciliation Loan Report

 

INTERIM RECONCILIATION REPORT  -- Column Definitions 

 

	Column Name	Description
	
MGIC Certificate Number

	
The number assigned by the mortgage insurance company to track the primary or bulk insurance coverage on the loan

	
Recon ID Number

	
The number assigned by Bank of America and MGIC to identify the loan for reconciliation and settlement monitoring purposes

	
Borrower Name

	
Name of borrower(s)

	
Trust

	
Name of trust as provided by Bank of America 

	Servicer Name	Name of current entity servicing the loan
	
Servicer Loan Number

	
The current loan number assigned to the loan

	
MI Coverage Percentage (%)

	
MGIC percentage of coverage for the loan as evidenced on the certificate

	
Payee Name

	
Entity to whom MGIC directed the claim payment (GSE or servicer)

	
Claim Type

	
Initial or supplemental

	
Submitted Claim Benefit Amount ($)

	
Claim Amount submitted by servicer or GSE prior to any corrections and curtailments under the applicable First Lien Policy

	
Claim Filed Date (Claim Recd Date)

	
Date the claim was filed by the servicer or GSE

	
Claim Resolution Date (Claim Paid Date)

	
Date claim was paid

	
Claim Settlement type

	
Claim settlement option (percentage  guaranty, pre-claim sale or property acquisition)

	
Claim Paid Amount ($)

	
The total claim amount paid by MGIC as evidenced on the Explanation of Benefits (EOB)

	
Curtailment Amount ($)

	
The claim amount portion not paid by MGIC due to a curtailment as evidenced on the EOB (net dollars)

	
Paid Through Date

	
The "paid thru date" from the detail claim record

	
Total Days - Paid Through Date to Claim Received Date

	
The total number of days from the paid thru date to claim received date

	
Transfer of Servicing Date from Bank of America (Source is Bank of America File)

	
The date the servicing was transferred from Bank of America to another servicer, if applicable

	
Bank of America Days - Paid Through Date or Bank of America Beginning Servicing Date to Transfer Date or Claim Filed Date

	
The number of days from the paid through date or date Bank of America started servicing to servicing transfer date, if applicable, or claim filing date

	
Bank of America Portion of Curtailment Amount ($)

	
Bank of America portion of the total curtailment amount as noted in #16 based on Bank of America days over Total Days

	
Origination or Insured Date (Coverage Effective Date)

	
Date loan was insured

	
Settlement Group

	
PLS or Servicing Only Loan Group

	
Settlement Percent

	
Settlement Percentage associated with the Settlement Group

 

	
Signing Schedule 1

	
1 if applies, 0 if does not apply

	
Signing Schedule 2

	
1 if applies, 0 if does not apply

	
Signing Schedule 3

	
1 if applies, 0 if does not apply

	
Signing Schedule 4

	
1 if applies, 0 if does not apply

	
Signing Schedule 5

	
1 if applies, 0 if does not apply

	
Signing Schedule 6

	
1 if applies, 0 if does not apply

	
Signing Schedule 7

	
1 if applies, 0 if does not apply

	Signing Schedule 8	
1 if applies, 0 if does not apply

	Signing Schedule 9	
1 if applies, 0 if does not apply

	Signing Schedule 10	
1 if applies, 0 if does not apply

	Signing Schedule 11	
1 if applies, 0 if does not apply

	Signing Schedule 12	
1 if applies, 0 if does not apply

	Signing Schedule 13	
1 if applies, 0 if does not apply

	Signing Schedule 14	
1 if applies, 0 if does not apply

	Signing Schedule 15	
1 if applies, 0 if does not apply

	Signing Schedule 16	
1 if applies, 0 if does not apply

	Signing Schedule 17	
1 if applies, 0 if does not apply

	Signing Schedule 18	
1 if applies, 0 if does not apply

	
Schedule 1 current month end

	
1 if applies, 0 if does not apply

	
Schedule 2 current month end

	
1 if applies, 0 if does not apply

	Schedule 3 current month end	
1 if applies, 0 if does not apply

	
Schedule 4 current month end

	
1 if applies, 0 if does not apply

	
Schedule 5 current month end

	
1 if applies, 0 if does not apply

	
Schedule 6 current month end

	
1 if applies, 0 if does not apply

	
Schedule 7 current month end

	
1 if applies, 0 if does not apply

	
Schedule 8 current month end

	
1 if applies, 0 if does not apply

	
Schedule 9 current month end

	
1 if applies, 0 if does not apply

	
Schedule 10 current month end

	
1 if applies, 0 if does not apply

	
Schedule 11 current month end

	
1 if applies, 0 if does not apply

	
Schedule 12 current month end

	
1 if applies, 0 if does not apply

	
Schedule 13 current month end

	
1 if applies, 0 if does not apply

	
Schedule 14 current month end

	
1 if applies, 0 if does not apply

	
Schedule 15 current month end

	
1 if applies, 0 if does not apply

	
Schedule 16 current month end

	
1 if applies, 0 if does not apply

	
Schedule 17 current month end

	
1 if applies, 0 if does not apply

	
Schedule 18 current month end

	
1 if applies, 0 if does not apply

 

INTERIM RECONCILIATION REPORT

 

[The format of this schedule has been modified for purpose of preparing it for filing with the Securities and Exchange Commission]

 

	
MGIC Certificate Number

	
Recon ID Number

	
Borrower Name

	
Trust

	
Servicer Name

	
Servicer Loan Number

	
MI Coverage Percentage (%)

	
Payee Name

	
Claim Type

	
Submitted Claim Amount ($)

	
Claim Filed Date (Claim Recd Date)

	
Claim Resolution Date (Claim Paid Date)

	
Claim Settlement type

	
Claim Paid Amount ($)

	
Curtailment Amount ($)

	
Paid Through Date

	
Total Days - Paid Through Date to Claim Received Date

	
Transfer of Servicing Date from Bank of America (Source is Bank of America File)

	
Bank of America Days - Paid Through Date or Bank of America Beginning Servicing Date to Transfer Date or Claim Filed Date

	
Bank of America Portion of Curtailment Amount ($)

	
Origination or Insured Date (Coverage Effective Date)

	
Settlement Group

	
Settlement Percent

	
Signing Schedule 1

	
Signing Schedule 2

	
Signing Schedule 3

	
Signing Schedule 4

	
Signing Schedule 5

	
Signing Schedule 6

	
Signing Schedule 7

	
Signing Schedule 8

	
Signing Schedule 9

	
Signing Schedule 10

	
Signing Schedule 11

	
Signing Schedule 12

	
Signing Schedule 13

	
Signing Schedule 14

	
Signing Schedule 15

	
Signing Schedule 16

	
Signing Schedule 17

	
Signing Schedule 18

	
Schedule 1 current month end

	
Schedule 2 current month end

	
Schedule 3 current month end

	
Schedule 4 current month end

	
Schedule 5 current month end

	
Schedule 6 current month end

	
Schedule 7 current month end

	
Schedule 8 current month end

	
Schedule 9 current month end

	
Schedule 10 current month end

	
Schedule 11 current month end

	
Schedule 12 current month end

	
Schedule 13 current month end

	
Schedule 14 current month end

	
Schedule 15 current month end

	
Schedule 16 current month end

	
Schedule 17 current month end

	
Schedule 18 current month end

	 

 

Exhibit F

 

Exclusions

 

Execution Copy

 

EXHIBIT F

EXCLUSIONS

Defined terms have the meaning given them in the applicable Master Policy (as defined in the Settlement Agreement) or, where noted, in the Settlement Agreement.

Flow Policy #71-7135 (8/94)

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		o	[***]

 

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Execution Copy

 

Select Master Policy for Multiple Loan Transactions #71-70283 (2/05)

 

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	·	[***]

 

Execution Copy

 

Master Policy for Multiple Loan Transactions #71-70276 (2/05)

 

	·	[***]

 

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	·	[***]

 

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		o	[***]

 

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	·	[***]

 

Exhibit H

 

MGIC Escrow Agreement

 

Execution Copy

 

ESCROW AGREEMENT

THIS ESCROW AGREEMENT, dated as of April 19, 2013 (“Escrow Agreement”), is by and between Mortgage Guaranty Insurance Corporation (“MGIC”), Countrywide Home Loans, Inc. (“CHL”), and Bank of America, N.A., in its capacity as master servicer or servicer of Subject Loans (“Servicer”); and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Escrow Agent hereunder (“Escrow Agent”).  MGIC, CHL, and Servicer are sometimes referred to collectively in this Escrow Agreement as the “Parties.”

BACKGROUND

A.  The Parties have entered into a Confidential Settlement Agreement and Release (the “Settlement Agreement”), dated as of April 19, 2013, pursuant to which the Parties have resolved their claims and differences with respect to Subject Loans.  The Settlement Agreement provides that the Parties shall deposit the Escrow Funds (defined below) in segregated escrow accounts to be held by Escrow Agent, and disbursed to the Parties as jointly instructed by the Parties in writing.  Capitalized terms not otherwise defined in this Escrow Agreement have the meanings given them in the Settlement Agreement.

B.  Escrow Agent has agreed to accept, hold, and disburse the funds deposited with it and the earnings thereon in accordance with the terms of this Escrow Agreement and as instructed by the Parties pursuant to the Settlement Agreement.

C.  Pursuant to the Settlement Agreement, the Parties have appointed the Representatives (as defined below) to represent them for all purposes in connection with the funds to be deposited with Escrow Agent and this Escrow Agreement.

D.  In order to establish the escrow of funds and to effect the provisions of the Settlement Agreement, the Parties and Escrow Agent have entered into this Escrow Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

1.                   Definitions.  The following terms shall have the following meanings when used herein:

“CHL Representatives” shall mean the person(s) so designated on Schedule C hereto or any other person designated in a writing signed by CHL and delivered to Escrow Agent, MGIC, and Servicer in accordance with the notice provisions of this Escrow Agreement, to act as its representative(s) under this Escrow Agreement.

“Escrow Funds” shall mean the funds deposited with Escrow Agent pursuant to Section 3 of this Agreement, together with any interest and other income thereon.

“Escrow Period” shall mean the period commencing on the date hereof and ending twelve (12) months later, unless earlier terminated or extended by agreement of the Parties and Escrow Agent.

“Joint Written Direction” shall mean a written direction executed by the Representatives and directing Escrow Agent to disburse all or a portion of the Escrow Funds or to take or refrain from taking an action pursuant to this Escrow Agreement.

“MGIC Representatives” shall mean the person(s) so designated on Schedule C hereto or any other person designated in a writing signed by MGIC and delivered to Escrow Agent, CHL, and Servicer in accordance with the notice provisions of this Escrow Agreement, to act as its representative(s) under this Escrow Agreement.

“Representatives” shall mean the MGIC Representatives, the CHL Representatives, and the Servicer Representatives.

“Servicer Representatives” shall mean the person(s) so designated on Schedule C hereto or any other person designated in a writing signed by Servicer and delivered to Escrow Agent, MGIC, and CHL in accordance with the notice provisions of this Escrow Agreement, to act as its representative(s) under this Escrow Agreement.

 

2.                   Appointment of and Acceptance by Escrow Agent.  The Parties hereby appoint Escrow Agent to serve as escrow agent hereunder.  Escrow Agent hereby accepts such appointment and, upon receipt by wire transfer of the Escrow Funds in accordance with Section 3 below, agrees to hold, invest and disburse the Escrow Funds in accordance with this Escrow Agreement.

3.                   Deposit of Escrow Funds.  Within five (5) business days of the Signing Date of the Settlement Agreement, and simultaneously with or after the execution and delivery of this Escrow Agreement, the Parties will transfer the Escrow Funds in the below amounts.  Upon receipt of any portion of the Escrow Funds, Escrow Agent shall acknowledge the receipt and deposit of each subject portion to the Parties and counsel identified in Section 17(a) of the Settlement Agreement, and Section 14 of this Escrow Agreement.

a.               MGIC shall deposit the Settlement Payment and the Denial Settlement Payment by wire transfer of immediately available funds to an account designated by Escrow Agent, which shall be the MGIC Escrow Account as defined in the Settlement Agreement.

 

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b.              CHL shall deposit the CHL Escrow Amount by wire transfer of immediately available funds to an account designated by Escrow Agent, which shall be the CHL Escrow Account as defined in the Settlement Agreement.

The deposits by each of MGIC and CHL shall be made to and held in a separate account, segregated from the deposit(s) by the other Party made pursuant to this Escrow Agreement and from all other funds and accounts held by the Escrow Agent.

4.                   Disbursements of Escrow Funds; Acknowledgement of Security Interests in Disbursement Rights.  Escrow Agent shall disburse the Escrow Funds at any time and from time to time, upon receipt of, and in accordance with, a Joint Written Direction pursuant to Section 8 of the Settlement Agreement.  Such Joint Written Direction shall contain wiring instructions or an address to which one or more checks shall be sent.  Upon the expiration of the Escrow Period, Escrow Agent shall distribute, as promptly as practicable, any remaining Escrow Funds as set forth in a Joint Written Direction, or if Escrow Agent has not received such Joint Written Direction, Escrow Agent may take action pursuant to Section 5 of this Agreement.  All disbursements of funds from the Escrow Funds shall be subject to the fees and claims of Escrow Agent and the Indemnified Persons (as defined below) pursuant to Section 10 and Section 11 below.  Escrow Agent acknowledges the security interest granted by MGIC to Servicer, pursuant to Section 2(e)(i) of the Settlement Agreement, in all of MGIC’s right, title and interest in and to any and all disbursements from the MGIC Escrow Account (as defined in the Settlement Agreement) to which MGIC is entitled pursuant to the terms and conditions of this Escrow Agreement or the Settlement Agreement, as security for the full performance of MCIG’s obligations under this Escrow Agreement and the Settlement Agreement.  Escrow Agent acknowledges the security interest granted pursuant to Section 2(e)(ii) of the Settlement Agreement by CHL to MGIC in all of CHL’s right, title and interest in and to any and all disbursements from the CHL Escrow Account (as defined in the Settlement Agreement) to which CHL is entitled pursuant to the terms and conditions of this Escrow Agreement or the Settlement Agreement, as security for the full performance of CHL’s obligations under this Escrow Agreement and the Settlement Agreement.

5.                   Suspension of Performance; Disbursement Into Court.  If, at any time, (i) there shall exist any dispute between MGIC, CHL, Servicer or the Representatives with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of Escrow Agent hereunder, (ii) Escrow Agent is unable to determine, to Escrow Agent's sole satisfaction, the proper disposition of all or any portion of the Escrow Funds or Escrow Agent's proper actions with respect to its obligations hereunder, or (iii) the Representatives have not within 30 days of the furnishing by Escrow Agent of a notice of resignation pursuant to Section 7 hereof, appointed a successor Escrow Agent to act hereunder, then Escrow Agent may, in its sole discretion, take either or both of the following actions:

a.               suspend the performance of any of its obligations (including without limitation any disbursement obligations) under this Escrow Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent shall have been appointed (as the case may be).

 

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b.               petition (by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient to Escrow Agent, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by law, pay into such court, for holding and disposition in accordance with the instructions of such court, all Escrow Funds, after deduction and payment to Escrow Agent of all fees and expenses (including court costs and attorneys' fees) payable to, incurred by, or expected to be incurred by Escrow Agent in connection with the performance of its duties and the exercise of its rights hereunder.

Escrow Agent shall have no liability to MGIC, CHL, Servicer, their respective owners, shareholders or members or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of the Escrow Funds or any delay in or with respect to any other action required or requested of Escrow Agent.

6.                   Investment of Funds.  Escrow Agent shall hold the Escrow Funds in interest-bearing accounts, and shall disburse the Escrow Funds and any proceeds solely as provided by the Parties pursuant to a Joint Written Direction.  The Escrow Funds shall be held only for the purpose and subject to the terms and conditions set forth in the Settlement Agreement, and shall not be subject to any lien, attachment, trusteeship or any judicial process.  No third parties or their respective creditors shall have any right to, or claim respecting, the Escrow Funds.

Escrow Agent is herein directed and instructed to initially invest and reinvest the Escrow Funds in the investment indicated on Schedule B hereto.  MGIC, CHL, and Servicer may provide instructions changing the investment of the Escrow Funds by the furnishing of a Joint Written Direction to Escrow Agent; provided, however, that no investment or reinvestment may be made except in the following:  (a) direct obligations of the United States of America or obligations the principal of and the interest on which are unconditionally guaranteed by the United State of America; (b) U.S. dollar denominated money market deposit accounts and certificates of deposits issued by any bank, bank and trust company, or national banking association (including Escrow Agent and its affiliates), which such deposits are either (i) insured by the Federal Deposit Insurance Corporation or a similar governmental agency, or (ii) with domestic commercial banks which have a rating on their short- term certificates of deposit on the date of purchase of “A-1” or “A-l+” by S&P and “P-1” by Moody's and maturing no more than 360 days after the date of purchase (ratings on holding companies are not considered as the rating of the bank); (c) repurchase agreements with any bank, trust company, or national banking association (including Escrow Agent and its affiliates); or (d) institutional money market funds, including funds managed by Escrow Agent or any of its affiliates.

Each of the foregoing investments shall be made in the name of Escrow Agent. Notwithstanding anything to the contrary contained herein, Escrow Agent may, without notice to the Representatives, sell or liquidate any of the foregoing investments at any time if the proceeds thereof are required for any disbursement of Escrow Funds permitted or required hereunder.  All investment earnings shall become part of the Escrow Funds and investment losses shall be charged against the Escrow Funds.  Escrow Agent shall not be liable or responsible for loss in the value of any investment made pursuant to this Escrow Agreement, or for any loss, cost or penalty resulting from any sale or liquidation of the Escrow Funds.  With respect to any Escrow Funds received by Escrow Agent after twelve o’clock, p.m., Central Standard Time, Escrow Agent shall not be required to invest such funds or to effect any investment instruction until the next day upon which banks in St. Paul, Minnesota, are open for business.

 

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7.                   Resignation of Escrow Agent.  Escrow Agent may resign and be discharged from the performance of its duties hereunder at any time by giving ten (10) days prior written notice to the MGIC, CHL, and Servicer specifying a date when such resignation shall take effect.  Upon any such notice of resignation, the Representatives jointly shall appoint a successor Escrow Agent hereunder prior to the effective date of such resignation.  The retiring Escrow Agent shall transmit all records pertaining to the Escrow Funds and shall pay all Escrow Funds to the successor Escrow Agent, after making copies of such records as the retiring Escrow Agent deems advisable and after deduction and payment to the retiring Escrow Agent of all fees and expenses (including court costs and attorneys' fees) payable to, incurred by, or expected to be incurred by the retiring Escrow Agent in connection with the performance of its duties and the exercise of its rights hereunder.  After any retiring Escrow Agent's resignation, the provisions of this Escrow Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Escrow Agent under this Escrow Agreement.  Any corporation or association into which Escrow Agent may be merged or converted or with which it may be consolidated, or any corporation or association to which all or substantially all of the escrow business of Escrow Agent’s corporate trust line of business may be transferred, shall be Escrow Agent under this Escrow Agreement without further act.

8.                   Liability of Escrow Agent.  Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied.  Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Escrow Agreement, including without limitation any other agreement between any or all of the parties hereto or any other persons even though reference thereto may be made herein.  Escrow Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that Escrow Agent’s gross negligence or willful misconduct was the primary cause of any loss to the MGIC, CHL, or Servicer.  Escrow Agent's sole responsibility shall be for the safekeeping and disbursement of the Escrow Funds in accordance with the terms of this Escrow Agreement.  Escrow Agent shall have no implied duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein.  Escrow Agent may rely upon any notice, instruction, request or other instrument, not only as to its due execution, validity and effectiveness, but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall believe to be genuine and to have been signed or presented by the person or parties purporting to sign the same.  In no event shall Escrow Agent be liable for incidental, indirect, special, consequential or punitive damages (including, but not limited to lost profits), even if Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.  Escrow Agent shall not be obligated to take any legal action or commence any proceeding in connection with the Escrow Funds, the accounts in which Escrow Funds are deposited, this Escrow Agreement or the Settlement Agreement, or to appear in, prosecute or defend any such legal action or proceeding.  Escrow Agent may consult legal counsel selected by it in the event of any dispute or question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute involving any party hereto, and shall incur no liability and shall be fully indemnified from any liability whatsoever in acting in accordance with the opinion or instruction of such counsel.  MGIC, and CHL, jointly and severally, and MGIC and Servicer jointly and severally, shall promptly pay, upon demand, the reasonable fees and expenses of any such counsel.

 

5

Escrow Agent is authorized, in its sole discretion, to comply with final orders issued or process entered by any court with respect to the Escrow Funds, without determination by Escrow Agent of such court's jurisdiction in the matter.  If any portion of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, Escrow Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ, judgment or decree which it is advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if Escrow Agent complies with any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.

9.                   Indemnification of Escrow Agent.  From and at all times after the date of this Escrow Agreement, MGIC, and CHL, jointly and severally, and MGIC and Servicer, jointly and severally, shall, to the fullest extent permitted by law, defend, indemnify and hold harmless Escrow Agent and each director, officer, employee, attorney, agent and affiliate of Escrow Agent (collectively, the “Indemnified Persons”) against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys' fees, costs and expenses) incurred by or asserted against any of the Indemnified Persons, whether direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any person, including without limitation MGIC, CHL, or Servicer, whether threatened or initiated, asserting a claim for any legal or equitable remedy against any person under any statute or regulation, including, but not limited to, any federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with the negotiation, preparation, execution, performance or failure of performance of this Escrow Agreement or any transactions contemplated herein, whether or not any such Indemnified Person is a party to any such action, proceeding, suit or the target of any such inquiry or investigation; provided, however, that no Indemnified Person shall have the right to be indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted solely from the gross negligence or willful misconduct of such Indemnified Person. Each Indemnified Person shall, in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees of such counsel shall be paid upon demand by the MGIC,CHL, and Servicer jointly and severally.   The obligations of MGIC, CHL, and Servicer under this Section 9 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.

 

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The parties agree that neither the payment by MGIC, CHL, or Servicer of any claim by Escrow Agent for indemnification hereunder nor the disbursement of any amounts to Escrow Agent from the Escrow Funds in respect of a claim by Escrow Agent for indemnification shall impair, limit, modify, or affect, as between MGIC, CHL, and Servicer the respective rights and obligations of MGIC, on the one hand, and CHL and Servicer, on the other hand, under the Settlement Agreement.

10.                Fees and Expenses of Escrow Agent.  Escrow Agent shall be compensated for its services hereunder in accordance with Schedule A attached hereto.  The Parties shall be equally responsible for all of the compensation and reimbursement obligations set forth in this Section 10, and such compensation and reimbursement obligations shall be equally payable by the Parties, upon demand by Escrow Agent.  Obligations under this Section 10 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent. Escrow Agent is authorized to, and may, disburse to itself from the Escrow Funds, from time to time, the amount of any compensation and reimbursement of out-of-pocket expenses due and payable hereunder (including any amount to which Escrow Agent or any Indemnified Person is entitled to seek indemnification pursuant to Section 9 hereof).  Escrow Agent shall notify the Representatives of any disbursement from the Escrow Funds to itself or any Indemnified Person in respect of any compensation or reimbursement hereunder and shall furnish to the Representatives copies of all related invoices and other statements.  CHL, MGIC, Servicer, and the Representatives hereby grant to Escrow Agent and the Indemnified Persons a security interest in and lien upon the Escrow Funds to secure all obligations with respect to the right to offset the amount of any compensation or reimbursement due any of them hereunder (including any claim for indemnification pursuant to Section 9 hereof) against the Escrow Funds.  If for any reason funds in the Escrow Funds are insufficient to cover such compensation and reimbursement, MGIC, CHL, and Servicer shall promptly pay such amounts to Escrow Agent or any Indemnified Person upon receipt of an itemized invoice.

11.                Representations and Warranties.  Each of MGIC, CHL, and Servicer respectively makes the following representations and warranties to Escrow Agent:

(i)              It is duly organized, validly existing, and in good standing under the laws of the state of its incorporation or organization, and has full power and authority to execute and deliver this Escrow Agreement and to perform its obligations hereunder.

(ii)            This Escrow Agreement has been duly approved by all necessary action, including any necessary shareholder or membership approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement enforceable in accordance with its terms.

 

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(iii)           The execution, delivery, and performance of this Escrow Agreement is in accordance with the Settlement Agreement and will not violate, conflict with, or cause a default under its articles of incorporation, articles of organization, bylaws, management agreement or other organizational document, as applicable, any applicable law or regulation, any court order or administrative ruling or decree to which it is a party or any of its property is subject, or any agreement, contract, indenture, or other binding arrangement, including without limitation the Settlement Agreement, to which it is a party or any of its property is subject.

(iv)           The applicable persons designated on Schedule C hereto have been duly appointed to act as its representatives hereunder and have full power and authority to execute and deliver any Joint Written Direction, to amend, modify or waive any provision of this Escrow Agreement and to take any and all other actions as the Representatives under this Escrow Agreement, all without further consent or direction from, or notice to, it or any other party.

(v)            No party other than the parties hereto has, or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof.  No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or generally) the Escrow Funds or any part thereof.

(vi)          All of its representations and warranties contained herein are true and complete as of the date hereof and will be true and complete at the time of any disbursement of the Escrow Funds.

12.                Identifying Information.  To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust, or other legal entity, Escrow Agent requires documentation to verify its formation and existence as a legal entity. Escrow Agent may ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.  Each of MGIC, CHL, and Servicer acknowledges that a portion of the identifying information set forth herein is being requested by Escrow Agent in connection with the USA Patriot Act, Pub.L.107-56 (the “Act”), and each of MGIC, CHL, and Servicer agrees to provide any additional information requested by Escrow Agent in connection with the Act or any similar legislation or regulation to which Escrow Agent is subject, in a timely manner.

13.                Consent to Jurisdiction and Venue.  In the event that any party hereto commences a lawsuit or other proceeding relating to or arising from this Escrow Agreement, the parties hereto agree that a federal court in New York shall have the sole and exclusive jurisdiction over any such proceeding.  If such court lacks federal subject matter jurisdiction, the parties agree that a California federal court shall have sole and exclusive jurisdiction.  Any of these courts shall be proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection to such venue.  The parties hereto consent to and agree to submit to the jurisdiction of any of the courts specified herein and agree to accept service of process to vest personal jurisdiction over them in any of these courts.

 

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14.                Notice.  All notices, approvals, consents, requests, and other communications hereunder shall be in writing and shall be deemed to have been given when the writing is delivered if given or delivered by hand, overnight delivery service or email (with confirmed receipt) to the address or email address set forth in this section 14, or to such other address as each party may designate for itself by like notice, and shall be deemed to have been given on the date deposited in the mail, if mailed, by first-class, registered or certified mail, postage prepaid, addressed as set forth herein, or to such other address as each party may designate for itself by like notice.

If to MGIC at:

 

Mortgage Guaranty Insurance Corporation

250 East Kilbourn Avenue

Milwaukee, Wisconsin 53202

Attention: Jeffrey H. Lane

Executive Vice President and General Counsel

Email:  jeff_lane@mgic.com

 

With a copy to:

 

Bartlit Beck Herman Palenchar & Scott LLP

Courthouse Place

54 West Hubbard

Chicago, Illinois  60654

Attention: Jeffrey A. Hall

Email: jeffrey.hall@bartlit-beck.com

If to CHL at:

 

Countrywide Home Loans, Inc.

4500 Park Granada

Calabasas, CA, 91302

Attention: Michael Schloessmann

President

Email: michael.schloessmann@bankofamerica.com

With a copy to:

 

Reed Smith LLP

355 So. Grand Avenue

Los Angeles, CA 90071

Attention: David Halbreich

Email: dhalbreich@reedsmith.com

 

9

If to Servicer at:

Bank of America

50 Rockefeller Plaza, 7th Floor

NY1-050-07-01

New York, NY 10020-1605

Attention: Christopher J. Garvey

Associate General Counsel – Litigation

Email: christopher.garvey@bankofamerica.com

With a copy to:

 

Reed Smith LLP

355 So. Grand Avenue

Los Angeles, CA 90071

Attention: David Halbreich

Email: dhalbreich@reedsmith.com

 

If to Escrow Agent at:                                      U.S. Bank National Association, as Escrow Agent

1555 N RiverCenter Drive Suite 203

Milwaukee, WI 53212

Attention:  Peter Brennan

Email:  Peter.Brennan@USBank.com

15.                Amendment or Waiver.  This Escrow Agreement may be changed, waived, discharged or terminated only by a writing signed by the Representatives and Escrow Agent.  No delay or omission by any party in exercising any right with respect hereto shall operate as a waiver.  A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion.

16.                Severability.  To the extent any provision of this Escrow Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Escrow Agreement.

17.                Governing Law.  This Escrow Agreement shall be construed and interpreted in accordance with the internal laws of the State of New York without giving effect to the conflict of laws principles thereof.

18.                Entire Agreement.  This Escrow Agreement and the Settlement Agreement constitute the entire agreement between the parties relating to the deposit, holding, investment and disbursement of the Escrow Funds, and sets forth in their entirety the obligations and duties of Escrow Agent with respect to the Escrow Funds.  Each of the Parties acknowledges the intent and covenants set forth in Section 2(d) of the Settlement Agreement.  In the event of any conflict between this Escrow Agreement and such Section 2(d), then, to the maximum extent permitted by law, such Section 2(d) shall govern.

 

10

19.                Binding Effect.  All of the terms of this Escrow Agreement, as amended from time to time, shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of MGIC, CHL, Servicer, and Escrow Agent.

20.                Execution in Counterparts.  This Escrow Agreement and any Joint Written Direction may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement or direction.

21.               Termination.  Upon the first to occur of the termination of the Escrow Period, the disbursement of all amounts in the Escrow Funds pursuant to Joint Written Directions or the disbursement of all amounts in the Escrow Funds into court pursuant to Section 4 or Section 5 hereof, this Escrow Agreement shall terminate and Escrow Agent shall have no further obligation or liability whatsoever with respect to this Escrow Agreement or the Escrow Funds.

22.                Dealings.  Escrow Agent and any stockholder, director, officer or employee of Escrow Agent may buy, sell, and deal in any of the securities of the MGIC,  CHL, or Servicer and become pecuniarily interested in any transaction in which the MGIC, CHL, or Servicer may be interested, and contract and lend money to the MGIC, CHL, or Servicer and otherwise act as fully and freely as though it were not Escrow Agent under this Agreement.  Nothing herein shall preclude Escrow Agent from acting in any other capacity for the MGIC, CHL, or Servicer or for any other entity.

23.                Security Advice Waiver.  The Representatives acknowledge that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Representatives the right to receive brokerage confirmations for certain security transactions as they occur, the Representatives specifically waive receipt of such confirmations to the extent permitted by law.  Escrow Agent will furnish the Representatives periodic cash transaction statements that include detail for all investment transactions made by Escrow Agent.

24.                Tax Reporting.  Escrow Agent shall have no responsibility for the tax consequences of this Escrow Agreement and hereby advises each party to consult with independent counsel concerning any tax ramifications.  Any interest or income on the Escrow Funds shall be reported on a cash basis unless determined otherwise in accordance with the terms of this Escrow Agreement.

[Remainder of this page intentionally left blank; signature page follows.]

 

11

            IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed under seal as of the date first above written.

 

	
MORTGAGE GUARANTY INSURANCE CORPORATION

	
 

	
COUNTRYWIDE HOME LOANS, INC.

	
 

	
 

	
 

	
/s/ Patrick Sinks

	
 

	
/s/ Michael Schloessmann

	
Name: Patrick Sinks

	
 

	
Name: Michael Schloessmann

	
Title:   President and COO

	
 

	
Title:    President

	
 

	
 

	
 

	 		
BANK OF AMERICA, N.A., as Master Servicer or Servicer

	 		
	 		/s/  Anthony T. Meola
	 		
Name: Anthony T. Meola

	 		
Title:   Senior Vice President

	 		
	 		
U.S BANK NATIONAL ASSOCIATION as Escrow Agent

	 		
	 		/s/ Peter M. Brennan
	 		
Name: Peter M. Brennan

	 		
Title:   Vice President

 

12

SCHEDULE A

Schedule of Fees for Services as Escrow Agent

Due Upon Execution of Escrow Agreement

	
I.

	
Acceptance Fee:

$1,000.00

 

The acceptance fee includes the administrative review of documents, initial set-up of each account, and other reasonably required services up to and including the closing.  This is a flat one-time fee, payable at closing.

 

	
II.

	
Annual Administration Fee: 

$3,500.00

 

Annual administration fee for performance of the routine duties of Escrow Agent associated with the management of each account.  Administration fees are payable in advance.

 

	
III.

	
Out-of-Pocket Expenses: 

At Cost

 

Out of pocket expenses outside of wire charges will be billed back at cost.

	
IV.

	
Extraordinary Expenses:

 

Reimbursement of Escrow Agent’s fees incurred including but not limited to reasonable attorney’s fees and expenses.

 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

For a non-individual person such as a business entity, a charity, a Trust or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation.

 

SCHEDULE B

U.S. BANK NATIONAL ASSOCIATION

MONEY MARKET ACCOUNT AUTHORIZATION FORM

DESCRIPTION AND TERMS

The U.S. Bank Money Market Account is a U.S. Bank National Association (“U.S. Bank”) interest-bearing money market deposit account designed to meet the needs of U.S. Bank’s Corporate Trust Services Escrow Group and other Corporate Trust customers of U.S. Bank.   Selection of this investment includes authorization to place funds on deposit and invest with U.S. Bank.

U.S. Bank uses the daily balance method to calculate interest on this account (actual/365 or 366).  This method applies a daily periodic rate to the principal balance in the account each day.  Interest is accrued daily and credited monthly to the account.  Interest rates are determined at U.S. Bank’s discretion, and may be tiered by customer deposit amount.

The owner of the account is U.S. Bank as Agent for its trust customers.  U.S. Bank’s trust department performs all account deposits and withdrawals. Deposit accounts are FDIC Insured per depositor, for the benefit of MGIC, CHL, and Servicer as determined under FDIC Regulations, up to applicable FDIC limits.

 

AUTOMATIC AUTHORIZATION

In the absence of specific written direction to the contrary, U.S. Bank is hereby directed to invest and reinvest proceeds and other available moneys in the U.S. Bank Money Market Account.  The U.S. Bank Money Market Account is a permitted investment under the operative documents and this authorization is the permanent direction for investment of the moneys until notified in writing of alternate instructions.

 

SCHEDULE C

MGIC Representatives:

 

The following person(s) are hereby designated and appointed as the MGIC Representatives with respect to the Settlement Payment and Denial Settlement Payment under the Escrow Agreement:

 

	
                                          [***]

	
 

	
Name: [***]

	
 

	
Title:   [***]

	
 

	
 

	
 

	                                          [***]	
	
Name:  [***]

	
	
Title:    [***]

	
	 	
	                                          [***]	
	
Name:   [***]

	
	
Title:     [***]

	
 

 

CHL Representative(s):

 

The following person(s) are hereby designated and appointed as the CHL Representatives with respect to the CHL Escrow Amount under the Escrow Agreement.

 

	                                          [***]	
	
Name:  [***]

	
	
Title:    [***]

	
	 	
	                                          [***]	
	
Name:   [***]

	
	
Title:     [***]

	
 

 

Servicer Representative(s):

 

The following person(s) are hereby designated and appointed as the Servicer Representatives under the Escrow Agreement.

 

	
                                          [***]

	
 

	
Name: [***]

	
 

	
Title:   [***]

	
 

	
 

	
 

	                                          [***]	
	
Name:  [***]

	
	
Title:    [***]

	
	 	
	                                          [***]	
	
Name:   [***]

	
	
Title:     [***]

	
 

 

Exhibit I

Form of Subject Loan Report

 

Exhibit I - Form of Subject Loan Report

 

	
Field Name

	
Description

	
MGIC Certificate Number

	
The number assigned by the mortgage insurance company to track the primary insurance coverage on the loan

	
Recon ID Number

	
The number assigned by Bank of America and MGIC to identify the loan for reconciliation purposes

	
Borrower Name

	
Names of borrower(s)

	
Servicer Name*

	
Name of entity currently servicing the loan

	
Servicer Loan Number*

	
The current loan number assigned to the loan

	
Payee Name

	
Entity to whom MGIC directed the claim payment

	
Resolved Claim Method

	
Paid, rescinded, denied, canceled, or withdrawn

	
Claim Type

	
Initial or supplemental

	
Claim Filed Date

	
Date the claim was filed by servicer or GSE

	
Claim Resolution Date

	
Date claim paid, rescinded, denied, or canceled or withdrawn

	
Submitted Claim Amount($)

	
Claim amount submitted by servicer or GSE

	
Adjusted Claim Amount($)

	
Claim amount after Policy Adjustments and curtailments under the applicable Master Policy and this Settlement Agreement and Release

	
Mortgage Insurance Coverage Percentage (%)

	
MGIC percentage of coverage for the loan

	
Claim Benefit Amount

	
The Loss amount which resulted from multiplying the Adjusted Claim Amount by the Mortgage Insurance Coverage Percentage

	
Settlement Percentage (%)

	
The applicable Settlement Percentage

	
Settlement Percentage Claim Payment ($)

	
The amount that MGIC paid which resulted from multiplying the Settlement Percentage by the Claim Benefit Amount

	
Settlement Percentage Reduction ($)

	
The amount by which the Claim Benefit Amount was reduced as a result of MGIC paying the Settlement Percentage Claim Payment amount.

	
Supplemental Data - Category

	
Loan category which determines either Legacy Loan Settlement Percentage or Servicing Only Settlement Percentage

	
Supplemental Data - Claim Settlement Option

	
Percentage guaranty option, Property acquisition settlement option or Pre-claim sale option

	
Supplemental Data - Dollar for Dollar Claim Additions / Reductions

	
Amounts added or deducted to determine the claim disbursement amount

	
Supplemental Data - Claim Disbursement $

	
Claim payment amount

 

* May not be current information and will only be updated upon resolution of a claim.

 

Exhibit J

 

Form of Stipulation and Order of Dismissal

 

Execution Copy

 

David E. Weiss (SBN 148147)

Reed Smith LLP

101 Second Street, Suite 1800

San Francisco, CA 94105-3659

Telephone: (415) 543-8700

Facsimile:  (415) 391-8269

dweiss@reedsmith.com

David M. Halbreich (SBN 138926)

Reed Smith LLP

355 South Grand Avenue

Suite 2900

Los Angeles, CA 90071

Telephone:  (213) 457-8000

Facsimile: (213) 457-8080

dhalbreich@ReedSmith.com

Roxanne M. Anderson (SBN 244935)

Reed Smith LLP

10 South Wacker Drive

40th Floor

Chicago, IL 60606-7507

Telephone:  (312) 207-1000

Facsimile: (312) 207-6400

randerson@reedsmith.com

Attorneys for Plaintiffs COUNTRYWIDE HOME LOANS, INC., and BANK OF AMERICA, N.A.

 

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA – SAN FRANCISCO

 

	
COUNTRYWIDE HOME LOANS, INC., and BANK OF AMERICA, N.A. (successor to BAC Home Loans Servicing, LP and f/k/a Countrywide Home Loans Servicing, LP),

 

Plaintiffs,

 

v.

 

MORTGAGE GUARANTY INSURANCE CORPORATION,

 

Defendant.

	
Case No.  C 10 0233 JSW

 

STIPULATION OF DISMISSAL

 

Honorable Jeffrey S. White

 

	 	 	
Case No. C 10 0233 JSW

	
STIPULATION OF DISMISSAL

 

Execution Copy

 

It is hereby stipulated by and between Countrywide Home Loans, Inc. (“CHL”), Bank of America, N.A. (“BANA”), and Mortgage Guaranty Insurance Corporation (“MGIC”) that pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii) and based on the Amended and Restated  Confidential Settlement Agreement and Release, dated March 2, 2015, by and among MGIC, CHL, and BANA, in its capacity as master servicer or servicer (the “CHL Settlement Agreement”), and the Confidential Settlement Agreement and Release, dated April 19, 2013, as amended, by and between MGIC and BANA (the “BANA Settlement Agreement,”  and  together with the CHL Settlement Agreement, the “Settlement Agreements”), the above-captioned action is dismissed with prejudice as to the loans listed on Exhibit A and without prejudice as to the loans listed on Exhibit B.  This dismissal expressly is conditioned upon and based on the Settlement Agreements.

 

Each party shall bear its own costs and attorneys’ fees.

 

	
Dated:

	
Bartlit Beck Herman Palenchar & Scott LLP  

	 	
		

By:

	
/s/ Andrew C. Baak

	 		

Jeffrey A. Hall

Joseph C. Smith, Jr.

Andrew C. Baak

Attorneys for Defendant

MORTGAGE GUARANTY INSURANCE CORPORATION

	 		
	 	
Reed Smith LLP

	 		
	 	
By:

	
/s/ David M. Halbreich

	 		

David M. Halbreich

David E. Weiss

Roxanne M. Anderson

Attorneys for Plaintiffs

COUNTRYWIDE HOME LOANS, INC., and BANK OF AMERICA, N.A.

 

	 		
Case No. C 10 0233 JSW

	
STIPULATION OF DISMISSAL

 

2

Execution Copy

 

AMERICAN ARBITRATION ASSOCIATION

 

	
MORTGAGE GUARANTY INSURANCE CORPORATION,

 

Claimant,

 

v.

 

COUNTRYWIDE HOME LOANS, INC. and BAC HOME LOANS SERVICING, LP,

 

Respondents.

	 	
No. 51 148 Y 00398 10

 

 

STIPULATION AND [PROPOSED] ORDER OF DISMISSAL

The Panel, having reviewed the Amended and Restated Confidential Settlement Agreement and Release, dated March 2, 2015, entered into by and among Claimant and Counterclaim Respondent Mortgage Guaranty Insurance Corporation (“MGIC”) and Respondent and Counterclaim Claimants Countrywide Home Loans, Inc. (“CHL”) and Bank of America, N.A. (“BANA”) (in its capacity as master servicer or servicer) (the “CHL Settlement Agreement,” attached as Exhibit A), and  the Confidential Settlement Agreement and Release, dated April 19, 2013, as amended, entered into by and between MGIC and BANA, as a successor to BAC Home Loans Servicing f/k/a Countrywide Home Loans Servicing LP, on its own behalf and as successor in interest by de jure merger to Countrywide Bank FSB, formerly Treasury Bank (“Countrywide Bank”) (the “BANA Settlement Agreement;” the CHL Settlement Agreement and the BANA Settlement Agreement are referred to collectively as the “Settlement Agreements”), and having dismissed with prejudice all claims in this arbitration related to the loans listed on Exhibit C to the Order of Dismissal dated October 28, 2013 pursuant to Section 6(d) of the BANA Settlement Agreement, and GOOD CAUSE APPEARING THEREFOR:

HEREBY ORDERS, ADJUDGES AND DECREES:

1.            Based on the joint submission of MGIC, CHL, and BANA and consents obtained on behalf of certain loans, and pursuant to the terms and conditions of the CHL Settlement Agreement, which is incorporated by reference, all claims in this arbitration related to the loans listed on Exhibit B to this Order of Dismissal are dismissed with prejudice as specified in Section 6(d) of the CHL Settlement Agreement.

 

2.            The Panel shall have no further jurisdiction over claims related to the loans listed on Exhibit B to this Order of Dismissal.

 

3.            All claims in this arbitration related to the loans listed on Exhibit C to this Order of Dismissal are dismissed without prejudice; such claims shall be tolled as specified in Section 6(e) of the CHL Settlement Agreement, and shall continue to be tolled for three (3) months after entry of this order, in addition to any other tolling periods that may apply by operation of law.

 

 

4.            Upon expiration of the three-month period referenced in Paragraph 3, the Panel shall have no further jurisdiction over claims related to the loans listed on Exhibit C to this Order of Dismissal and shall have no further involvement in the above-captioned arbitration.

 

5.            Each party shall bear its own attorneys’ fees and costs.

 

	
IT IS SO ORDERED

	
 

	
Arbitration Panel:

	
 

	
 

	
 

	
 

	
 

	
Dated: ____________, 2015

	
 

	
    

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
   

	
 

	 			
	 		    	

 

 

2EX-4.2

 Exhibit 4.2 

NEWCASTLE INVESTMENT CORP. 

INDENTURE 
 Dated as of

                     ,
             
 U.S. BANK, NATIONAL ASSOCIATION 

Trustee 

 Reconciliation and tie between 

Trust Indenture Act of 1939 and Indenture* 
  

					
	 Tenet Indenture Art Section
	  	 Indenture Section

	 §  310
	 	(a)	  	11.04(a), 16.02
		 	(b)	  	11.01(f), 11.04(b), 11.05(1), 16.02
		 	(b)(1)	  	11.04(b), 16.02
	 §  311
	 		  	11.01(f), 16.02
	 §  312
	 		  	14.02(d), 16.02
		 	(b)	  	11.10, 16.02
		 	 (c)
	  	11.10, 16.02
	 §  313
	 	(a)	  	10.01(a), 16.02
	 §  314
	 		  	16.02
	 §  315
	 	(e)	  	11.05, 16.02
	 §  316
	 		  	16.02
	 §  317
	 		  	16.02
	 §  317
	 		  	16.02

  
  

	* 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

 TABLE OF CONTENTS* 

 
  

							
	 	 	 	  	PAGE	 
	
	Article I	  
	
	DEFINITIONS	  
	 Section 1.01
	 	Definitions	  	 	1	  
	
	Article II	  
	
	FORMS OF SECURITIES	  
			
	 Section 2.01
	 	Terms of the Securities	  	 	12	  
	 Section 2.02
	 	Form of Trustee’s Certificate of Authentication	  	 	12	  
	 Section 2.03
	 	Form of Trustee’s Certificate of Authentication by an Authenticating Agent	  	 	13	  
	
	Article III	  
	
	THE DEBT SECURITIES	  
			
	 Section 3.01
	 	Amount Unlimited; Issuable in Series	  	 	13	  
	 Section 3.02
	 	Denominations	  	 	16	  
	 Section 3.03
	 	Execution. Authentication. Delivery and Dating	  	 	16	  
	 Section 3.04
	 	Temporary Securities	  	 	18	  
	 Section 3.05
	 	Registrar and Paying Agent	  	 	19	  
	 Section 3.06
	 	Transfer and Exchange	  	 	20	  
	 Section 3.07
	 	Mutilated. Destroyed. Lost and Stolen Securities	  	 	23	  
	 Section 3.08
	 	Payment of Interest: Interest Rights Preserved	  	 	24	  
	 Section 3.09
	 	Cancellation	  	 	25	  
	 Section 3.10
	 	Computation of Interest	  	 	26	  
	 Section 3.11
	 	Currency of Payments in Respect of Securities	  	 	26	  
	 Section 3.12
	 	Judgments	  	 	26	  
	 Section 3.13
	 	CUSIP Numbers	  	 	27	  
	
	Article IV	  
	
	REDEMPTION OF SECURITIES	  
			
	 Section 4.01
	 	Applicability of Right of Redemption	  	 	27	  
	 Section 4.02
	 	Selection of Securities to be Redeemed	  	 	27	  

  
  

	* 	The Table of Contents is not part of the Indenture. 

  
 i 

							
	 Section 4.03
		Notice of Redemption		 	28	  
	 Section 4.04
		Deposit of Redemption Price		 	28	  
	 Section 4.05
		Securities Payable on Redemption Date		 	28	  
	 Section 4.06
		Securities Redeemed in Part		 	29	  
	
	Article V	  
	
	SINKING FUNDS	  
			
	 Section 5.01
		Applicability of Sinking Fund		 	29	  
	 Section 5.02
		Mandatory Sinking Fund Obligation		 	30	  
	 Section 5.03
		Optional Redemption at Sinking Fund Redemption Price		 	30	  
	 Section 5.04
		Application of Sinking Fund Payment		 	30	  
	
	Article VI	  
	
	PARTICULAR COVENANTS OF THE COMPANY	  
			
	 Section 6.01
		Payments of Securities		 	31	  
	 Section 6.02
		Paying Agent		 	31	  
	 Section 6.03
		To Hold Payment in Trust		 	32	  
	 Section 6.04
		Merger. Consolidation and Sale of Assets		 	33	  
	 Section 6.05
		Compliance Certificate		 	34	  
	 Section 6.06
		Conditional Waiver by Holders of Securities		 	34	  
	 Section 6.07
		Statement by Officers as to Default		 	35	  
	
	Article VII	  
	
	REMEDIES OF TRUSTEE AND SECURITYHOLDERS	  
			
	 Section 7.01
		Events of Default		 	35	  
	 Section 7.02
		Acceleration; Rescission and Annulment		 	37	  
	 Section 7.03
		Other Remedies		 	38	  
	 Section 7.04
		Trustee as Attorney-in-Fact		 	39	  
	 Section 7.05
		Priorities		 	40	  
	 Section 7.06
		Control by Securityholders: Waiver of Past Defaults		 	40	  
	 Section 7.07
		Limitation on Suits		 	40	  
	 Section 7.08
		Undertaking for Costs		 	41	  
	 Section 7.09
		Remedies Cumulative		 	41	  
	
	Article VIII	  
	
	CONCERNING THE SECURITYHOLDERS	  
			
	 Section 8.01
		Evidence of Action of Securityholders		 	42	  
	 Section 8.02
		Proof of Execution or Holding of Securities		 	42	  
	 Section 8.03
		Persons Deemed Owners		 	43	  
	 Section 8.04
		Effect of Consents		 	43	  

  
 ii 

							
	Article IX	  
	
	SECURITYHOLDERS’ MEETINGS	  
			
	 Section 9.01
		Purposes of Meetings		 	43	  
	 Section 9.02
		Call of Meetings by Trustee		 	44	  
	 Section 9.03
		Call of Meetings by Company or Securityholders		 	44	  
	 Section 9.04
		Qualifications for Voting		 	44	  
	 Section 9.05
		Regulation of Meetings		 	44	  
	 Section 9.06
		Voting		 	45	  
	 Section 9.07
		No Delay of Rights by Meeting		 	45	  
	
	Article X	  
	
	REPORTS BY THE COMPANY AND THE TRUSTEE AND SECURITYHOLDERS’ LISTS	  
			
	 Section 10.01
		Reports by Trustee		 	46	  
	 Section 10.02
		Reports by the Company		 	46	  
	 Section 10.03
		Securityholders’ Lists		 	47	  
	
	Article XI	  
	
	CONCERNING THE TRUSTEE	  
			
	 Section 11.01
		Rights of Trustees		 	47	  
	 Section 11.02
		Duties of Trustee		 	50	  
	 Section 11.03
		Notice of Defaults		 	51	  
	 Section 11.04
		Eligibility; Disqualification		 	51	  
	 Section 11.05
		Registration and Notice; Removal		 	52	  
	 Section 11.06
		Successor Trustee by Appointment		 	53	  
	 Section 11.07
		Successor Trustee by Merger		 	54	  
	 Section 11.08
		Right to Rely on Officer’s Certificate		 	54	  
	 Section 11.09
		Appointment of Authenticating Agent		 	55	  
	 Section 11.10
		Communications by Securityholders with Other Securityholders		 	56	  
	
	Article XII	  
	
	SATISFACTION AND DISCHARGE: DEFEASANCE	  
			
	 Section 12.01
		Applicability of Article		 	56	  
	 Section 12.02
		Satisfaction and Discharge of Indenture		 	56	  
	 Section 12.03
		Defeasance upon Deposit of Moneys or U.S. Government Obligations		 	57	  
	 Section 12.04
		Repayment to Company		 	58	  
	 Section 12.05
		Indemnity for U.S. Government Obligations		 	58	  
	 Section 12.06
		Deposits to Be Held in Escrow		 	59	  
	 Section 12.07
		Application of Trust Money		 	59	  
	 Section 12.08
		Deposits of Non-U.S. Currencies		 	60	  

  
 iii 

							
	Article XIII	  
	
	IMMUNITY OF CERTAIN PERSONS	  
			
	 Section 13.01
		No Personal Liability		 	60	  
	
	Article XIV	  
	
	SUPPLEMENTAL INDENTURES	  
			
	 Section 14.01
		Without Consent of Securityholders		 	60	  
	 Section 14.02
		With Consent of Securityholders: Limitations		 	62	  
	 Section 14.03
		Trustee Protected		 	64	  
	 Section 14.04
		Effect of Execution of Supplemental Indenture		 	64	  
	 Section 14.05
		Notation on or Exchange of Securities		 	64	  
	 Section 14.06
		Conformity with TIA		 	64	  
	
	Article XV	  
	
	SUBORDINATION OF SECURITIES	  
			
	 Section 15.01
		Agreement to Subordinate		 	65	  
	 Section 15.02
		Distribution on Dissolution. Liquidation and Reorganization		 	65	  
	 Section 15.03
		No Payment on Securities in Event of Default on Senior Indebtedness		 	66	  
	 Section 15.04
		Payments on Securities Permitted		 	67	  
	 Section 15.05
		Authorization of Securityholders to Trustee to Effect Subordination		 	67	  
	 Section 15.06
		Notices to Trustee		 	67	  
	 Section 15.07
		Trustee as Holder of Senior Indebtedness		 	68	  
	 Section 15.08
		Modifications of Terms of Senior Indebtedness		 	68	  
	 Section 15.09
		Reliance on Judicial Order or Certificate of Liquidating Agent		 	68	  
	 Section 15.10
		Satisfaction and Discharge; Defeasance and Covenant Defeasance		 	69	  
	 Section 15.11
		Trustee Not Fiduciary for Holders of Senior Indebtedness		 	69	  
	
	Article XVI	  
	
	MISCELLANEOUS PROVISIONS	  
			
	 Section 16.01
		Certificates and Opinions as to Conditions Precedent		 	69	  
	 Section 16.02
		Trust Indenture Act Controls		 	70	  
	 Section 16.03
		Notices to the Company and Trustee		 	70	  
	 Section 16.04
		Notices to Securityholders; Waiver		 	71	  
	 Section 16.05
		Legal Holiday		 	71	  
	 Section 16.06
		Effects of Headings and Table of Contents		 	71	  
	 Section 16.07
		Successors and Assigns		 	71	  
	 Section 16.08
		Separability Clause		 	72	  
	 Section 16.09
		Benefits of Indenture		 	72	  
	 Section 16.10
		Counterparts Originals		 	72	  

  
 iv 

							
	 Section 16.11
		Governing Law: Waiver of Trial by Jury		 	72	  
	 Section 16.12
		Force Majeure		 	72	  
	 Section 16.13
		U.S.A. Patriot Act		 	72	  

  
 v 

 INDENTURE dated as of         ,
        , between Newcastle Investment Corp., a Maryland corporation (the “Company”), and U.S. Bank, National Association, as trustee (the “Trustee”). 

WITNESSETH: 
 WHEREAS, the
Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of unsecured debentures, notes, bonds or other evidences of indebtedness (the “Securities”) in an unlimited aggregate principal amount to
be issued from time to time in one or more series as provided in this Indenture; and 
 WHEREAS, all things necessary to make this Indenture
a valid and legally binding agreement of the Company, in accordance with its terms, have been done. 
 NOW, THEREFORE, THIS INDENTURE
WITNESSETH: 
 That, in consideration of the premises and the purchase of the Securities by the Holders thereof for the equal and
proportionate benefit of all of the present and future Holders of the Securities, each party agrees and covenants as follows: 
 ARTICLE I

 DEFINITIONS 

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 

(a) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 

(b) unless otherwise defined in this Indenture or the context otherwise requires, all terms used herein without definition which are defined in
the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; and 
 (c) the words
“herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 

(d) references to “Article” or “Section” or other subdivision herein are references to an Article, Section or other
subdivision of the Indenture, unless the context otherwise requires. 
 Section 1.01 Definitions. 

Unless the context otherwise requires, the terms defined in this Section 1.01 shall for all purposes of this Indenture have the meanings
hereinafter set forth: 

 Affiliate: 

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

Authenticating Agent: 
 The term
“Authenticating Agent” shall have the meaning assigned to it in Section 11.09. 
 Board of Directors: 

The term “Board of Directors” shall mean either the board of directors of the Company or the executive or any other committee of that
board duly authorized to act in respect hereof. 
 Board Resolution: 

The term “Board Resolution” shall mean a copy of a resolution or resolutions certified by the Secretary or an Assistant Secretary of
the Company to have been duly adopted by the Board of Directors (or by a committee of the Board of Directors to the extent that any such other committee has been authorized by the Board of Directors to establish or approve the matters contemplated)
and to be in full force and effect on the date of such certification and delivered to the Trustee. 
 Business Day: 

The term “Business Day,” when used with respect to any Place of Payment or any other particular location referred to in this
Indenture or in the Securities, shall mean each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law or executive order to
close. 
 Capital Stock: 
 The term
“Capital Stock” shall mean: 
 (a) in the case of a corporation, corporate stock; 

(b) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; 
 (c) in the case of a partnership or limited liability company,
partnership interests (whether general or limited) or membership interests; and 

  
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 (d) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock. 
 Code: 

The term “Code” shall mean the Internal Revenue Code of 1986, as amended. 

Company: 
 The term “Company”
shall mean the Person named as the “Company” in the first paragraph of this Indenture until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean
such successor Person. 
 Company Order: 

The term “Company Order” shall mean a written order signed in the name of the Company by the Chairman of the Board of Directors,
Chief Executive Officer, Chief Financial Officer, President, Executive Vice President, Senior Vice President, Treasurer, Assistant Treasurer, Controller, Assistant Controller, Secretary or Assistant Secretary of the Company, and delivered to the
Trustee. 
 Corporate Trust Office: 

The term “Corporate Trust Office,” or other similar term, shall mean the principal office of the Trustee at which at any particular
time its corporate trust business shall be administered, which office at the date hereof is located at U.S. Bank, National Association, 60 Livingston Avenue, St. Paul, MN 55107-2292, Attention: Global Corporate Trust Services—Administrator for
Newcastle Investment Corp., or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust officer of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders and the Company). 
 Currency: 

The term “Currency” shall mean U.S. Dollars or Foreign Currency. 

Default: 
 The term “Default”
shall have the meaning assigned to it in Section 11.03. 
 Defaulted Interest: 

The term “Defaulted Interest” shall have the same meaning assigned to it in Section 3.08(b). 

  
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 Depositary: 

The term “Depositary” shall mean, with respect to the Securities of any series issuable in whole or in part in the form of one or
more Global Securities, each Person designated as Depositary by the Company pursuant to Section 3.01 until one or more successor Depositaries shall have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Depositary” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean the
Depositary with respect to the Securities of that series. 
 Designated Currency: 

The term “Designated Currency” shall have the same meaning assigned to it in Section 3.12. 

Discharged: 
 The term
“Discharged” shall have the meaning assigned to it in Section 12.03. 
 DTC: 

The term “DTC” shall mean The Depository Trust Company, Inc. and its successors. 

Event of Default: 
 The term “Event
of Default” shall have the meaning specified in Section 7.01. 
 Exchange Act: 

The term “Exchange Act” shall mean the United States Securities Exchange Act of 1934, and the rules and regulations promulgated by
the SEC thereunder and any statute successor thereto, in each case as amended from time to time. 
 Exchange Rate: 

The term “Exchange Rate” shall have the meaning assigned to it in Section 7.01. 

Floating Rate Security: 
 The term
“Floating Rate Security” shall mean a Security that provides for the payment of interest at a variable rate determined periodically by reference to an interest rate index specified pursuant to Section 3.01. 

Foreign Currency: 
 The term “Foreign
Currency” shall mean a currency issued by the government of any country other than the United States or a composite currency, the value of which is determined by reference to the values of the currencies of any group of countries. 

  
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 GAAP: 

The term “GAAP,” with respect to any computations required or permitted hereunder, shall mean generally accepted accounting
principles in effect in the United States as in effect from time to time; provided, however if the Company is required by the SEC to adopt (or is permitted to adopt and so adopts) a different accounting framework, including but not
limited to the International Financial Reporting Standards, “GAAP” shall mean such new accounting framework as in effect from time to time, including, without limitation, in each case, those accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession. 
 Global Security: 

The term “Global Security” shall mean any Security that evidences all or part of a series of Securities, issued in fully-registered
certificated form to the Depositary for such series in accordance with Section 3.03 and bearing the legend prescribed in Section 3.03(g). 

Holder; Holder of Securities: 
 The terms
“Holder” and “Holder of Securities” are defined under “Securityholder; Holder of Securities; Holder.” 
 Indebtedness:

 The term “Indebtedness” shall mean any and all obligations of a Person for money borrowed which, in accordance with GAAP,
would be reflected on the balance sheet of such Person as a liability on the date as of which Indebtedness is to be determined. 
 Indenture: 

The term “Indenture” or “this Indenture” shall mean this instrument as originally executed or as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust
Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively. The term “Indenture” shall also include the terms of particular series of Securities established as contemplated by
Section 3.01; provided, however, that if at any time more than one Person is acting as Trustee under this Indenture due to the appointment of one or more separate Trustees for any one or more separate series of Securities,
“Indenture” shall mean, with respect to such series of Securities for which any such Person is Trustee, this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall include the terms of particular series of Securities for which such Person is Trustee established as contemplated by Section 3.01, exclusive, however, of any provisions
or terms which relate solely to other series of Securities for which such Person is not Trustee, regardless of when such terms or provisions were adopted, and exclusive of any 

  
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provisions or terms adopted by means of one or more indentures supplemental hereto executed and delivered after such person had become such Trustee, but to which such person, as such Trustee, was
not a party; provided, further that in the event that this Indenture is supplemented or amended by one or more indentures supplemental hereto which are only applicable to certain series of Securities, the term “Indenture” for
a particular series of Securities shall only include the supplemental indentures applicable thereto. 
 Individual Securities: 

The term “Individual Securities” shall have the meaning specified in Section 3.01(p). 

Interest: 
 The term “interest”
shall mean, unless the context otherwise requires, interest payable on any Securities, and with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, interest payable after Maturity. 

Interest Payment Date: 
 The term
“Interest Payment Date” shall mean, with respect to any Security, the Stated Maturity of an installment of interest on such Security. 

Mandatory Sinking Fund Payment: 
 The term
“Mandatory Sinking Fund Payment” shall have the meaning assigned to it in Section 5.01(b). 
 Maturity: 

The term “Maturity,” with respect to any Security, shall mean the date on which the principal of such Security shall become due and
payable as therein and herein provided, whether by declaration, call for redemption or otherwise. 
 Members: 

The term “Members” shall have the meaning assigned to it in Section 3.03(i). 

Officer’s Certificate: 
 The term
“Officer’s Certificate” shall mean a certificate signed by any of the Chairman of the Board of Directors, Chief Executive Officer, Chief Financial Officer the President or a Vice President, Treasurer, an Assistant Treasurer, the
Controller, the Secretary or an Assistant Secretary of the Company and delivered to the Trustee. Each such certificate shall include the statements provided for in Section 16.01 if and to the extent required by the provisions of such Section.

  
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 Opinion of Counsel: 

The term “Opinion of Counsel” shall mean an opinion in writing signed by one or more legal counsel, who may be an employee of or of
counsel to the Company, or may be one or more other counsel that meets the requirements provided for in Section 16.01. 
 Optional Sinking Fund
Payment: 
 The term “Optional Sinking Fund Payment” shall have the meaning assigned to it in Section 5.01(b). 

Original Issue Discount Security: 
 The
term “Original Issue Discount Security” shall mean any Security that is issued with “original issue discount” within the meaning of Section 1273(a) of the Code and the regulations thereunder, or any successor provision, and
any other Security designated by the Company as issued with original issue discount for United States federal income tax purposes. 
 Outstanding:

 The term “Outstanding,” when used with respect to Securities means, as of the date of determination, all Securities
theretofore authenticated and delivered under this Indenture, except: 
 (a) Securities theretofore canceled by the Trustee
or delivered to the Trustee for cancellation; 
 (b) Securities or portions thereof for which payment or redemption money in
the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such
Securities or Securities as to which the Company’s obligations have been Discharged; provided, however, that if such Securities or portions thereof are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made; and 
 (c) Securities that have been paid pursuant
to Section 3.07(b) or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to a Responsible
Officer of the Trustee proof satisfactory to it that such Securities are held by a protected purchaser in whose hands such Securities are valid obligations of the Company; 

provided, however, that in determining whether the Holders of the requisite principal amount of Securities of a series Outstanding have
performed any action hereunder, Securities owned by the Company or any other obligor upon the Securities of such series or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such action, only Securities of such series that a Responsible Officer of the Trustee actually knows to be so owned 

  
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shall be so disregarded. Securities so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon such Securities or any Affiliate of the Company or of such other obligor. In determining whether the Holders of the requisite principal
amount of Outstanding Securities of a series have performed any action hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding for such purpose shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 7.02 and the principal amount of a Security denominated in a Foreign Currency that shall be deemed to
be Outstanding for such purpose shall be the amount calculated pursuant to Section 3.11(b). 
 Paying Agent: 

The term “Paying Agent” shall have the meaning assigned to it in Section 6.02(a). 

Person: 
 The term “Person”
shall mean an individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization or a government or an agency or political subdivision thereof. 

Place of Payment: 
 The term “Place
of Payment” shall mean, when used with respect to the Securities of any series, the place or places where the principal of and premium, if any, and interest on the Securities of that series are payable as specified pursuant to
Section 3.01. 
 Predecessor Security: 

The term “Predecessor Security” shall mean, with respect to any Security, every previous Security evidencing all or a portion of the
same Indebtedness as that evidenced by such particular Security, and, for the purposes of this definition, any Security authenticated and delivered under Section 3.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence
the same Indebtedness as the lost, destroyed or stolen Security. 
 Record Date: 

The term “Record Date” shall mean, with respect to any interest payable on any Security on any Interest Payment Date, the close of
business on any date specified in such Security for the payment of interest pursuant to Section 3.01. 
 Redemption Date: 

The term “Redemption Date” shall mean, when used with respect to any Security to be redeemed, in whole or in part, the date fixed for
such redemption by or pursuant to this Indenture and the terms of such Security, which, in the case of a Floating Rate Security, unless otherwise specified pursuant to Section 3.01, shall be an Interest Payment Date only. 

  
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 Redemption Price: 

The term “Redemption Price,” when used with respect to any Security to be redeemed, in whole or in part, shall mean the price at
which it is to be redeemed pursuant to the terms of the applicable Security and this Indenture. 
 Register: 

The term “Register” shall have the meaning assigned to it in Section 3.05(a). 

Registrar: 
 The term
“Registrar” shall have the meaning assigned to it in Section 3.05(a). 
 Responsible Officers: 

The term “Responsible Officers” of the Trustee hereunder shall mean any vice president, any assistant vice president, any trust
officer, any assistant trust officer or any other officer associated with the corporate trust department of the Trustee customarily performing functions similar to those performed by any of the above designated officers, and also means, with respect
to a particular corporate trust matter, any other officer of the Trustee to whom such matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture. 
 SEC: 

The term “SEC” shall mean the United States Securities and Exchange Commission, as constituted from time to time. 

Securities Act: 
 The term
“Securities Act” shall mean the United States Securities Act of 1933 and the rules and regulations promulgated by the SEC thereunder and any statute successor thereto, in each case as amended from time to time. 

Security: 
 The term “Security”
or “Securities” shall have the meaning stated in the recitals and shall more particularly mean one or more of the Securities duly authenticated by the Trustee and delivered pursuant to the provisions of this Indenture. 

Security Custodian: 
 The term
“Security Custodian” shall mean the custodian with respect to any Global Security appointed by the Depositary, or any successor Person thereto, and shall initially be the Paying Agent. 

  
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 Securityholder; Holder of Securities; Holder: 

The term “Securityholder” or “Holder of Securities” or “Holder,” shall mean the Person in whose name Securities
shall be registered in the Register kept for that purpose hereunder. 
 Senior Indebtedness: 

The term “Senior Indebtedness” means the principal of (and premium, if any) and unpaid interest on (x) Indebtedness of the
Company, whether outstanding on the date hereof or thereafter created, incurred, assumed or guaranteed, for money borrowed other than (a) any Indebtedness of the Company which when incurred, and without respect to any election under
Section 1111(b) of the Federal Bankruptcy Code, was without recourse to the Company, (b) any Indebtedness of the Company to any of its Subsidiaries, (c) Indebtedness to any employee of the Company, (d) any liability for taxes,
(e) Trade Payables and (f) any Indebtedness of the Company which is expressly subordinate in right of payment to any other Indebtedness of the Company, and (y) renewals, extensions, modifications and refundings of any such
Indebtedness. For purposes of the foregoing and the definition of “Senior Indebtedness,” the phrase “subordinated in right of payment” means debt subordination only and not lien subordination, and accordingly, (i) unsecured
indebtedness shall not be deemed to be subordinated in right of payment to secured indebtedness merely by virtue of the fact that it is unsecured, and (ii) junior liens, second liens and other contractual arrangements that provide for
priorities among Holders of the same or different issues of indebtedness with respect to any collateral or the proceeds of collateral shall not constitute subordination in right of payment. This definition may be modified or superseded by a
supplemental indenture. 
 Special Record Date: 

The term “Special Record Date” shall have the meaning assigned to it in Section 3.08(b)(i). 

Stated Maturity: 
 The term “Stated
Maturity” when used with respect to any Security or any installment of interest thereon, shall mean the date specified in such Security as the fixed date on which the principal (or any portion thereof) of or premium, if any, on such Security or
such installment of interest is due and payable. 
 Subsidiary: 

The term “Subsidiary,” when used with respect to any Person, shall mean: 

(a) any corporation, limited liability company, association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of
directors, managers or trustees of the corporation, limited liability company, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person
(or a combination thereof); and 

  
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 (b) any partnership (i) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

Successor Company: 
 The term
“Successor Company” shall have the meaning assigned to it in Section 3.06(i). 
 Trade Payables: 

The term “Trade Payables” means accounts payable or any other Indebtedness or monetary obligations to trade creditors created or
assumed by the Company or any Subsidiary of the Company in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities). 

Trust Indenture Act; TIA: 
 The term
“Trust Indenture Act” or “TIA” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations thereunder as in effect on the date of this Indenture, except as provided in Section 14.06 and except to
the extent any amendment to the Trust Indenture Act expressly provides for application of the Trust Indenture Act as in effect on another date. 

Trustee: 
 The term “Trustee”
shall mean the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such with respect to one or more series of Securities pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall
mean the Trustee with respect to Securities of that series. 
 U.S. Dollars: 

The term “U.S. Dollars” shall mean such currency of the United States as at the time of payment shall be legal tender for the payment
of public and private debts. 
 U.S. Government Obligations: 

The term “U.S. Government Obligations” shall have the meaning assigned to it in Section 12.03. 

  
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 United States: 

The term “United States” shall mean the United States of America (including the States and the District of Columbia), its territories
and its possessions and other areas subject to its jurisdiction. 
 ARTICLE II 

FORMS OF SECURITIES 

Section 2.01 Terms of the Securities. 

(a) The Securities of each series shall be substantially in the form set forth in a Company Order or in one or more indentures supplemental
hereto, and shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification or designation and such legends or
endorsements placed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange on which any series of the Securities may be listed or of any automated quotation system on which any such series may be quoted, or to conform to usage, all as determined by the officers executing such
Securities as conclusively evidenced by their execution of such Securities. 
 (b) The terms and provisions of the Securities shall
constitute, and are hereby expressly made, a part of this Indenture, and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture expressly agree to such terms and provisions and to be bound thereby.

 Section 2.02 Form of Trustee’s Certificate of Authentication. 

(a) Only such of the Securities as shall bear thereon a certificate substantially in the form of the Trustee’s certificate of
authentication hereinafter recited, executed by the Trustee by manual signature, shall be valid or become obligatory for any purpose or entitle the Holder thereof to any right or benefit under this Indenture. 

(b) Each Security shall be dated the date of its authentication, except that any Global Security shall be dated as of the date specified as
contemplated in Section 3.01. 
 (c) The form of the Trustee’s certificate of authentication to be borne by the Securities shall be
substantially as follows: 

  
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 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
	Date of authentication:                          				U.S. Bank, National Association, as Trustee
				
					By:		  

							Authorized Signatory

 Section 2.03 Form of Trustee’s Certificate of Authentication by an Authenticating Agent. If
at any time there shall be an Authenticating Agent appointed with respect to any series of Securities, then the Trustee’s Certificate of Authentication by such Authenticating Agent to be borne by Securities of each such series shall be
substantially as follows: 
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
	Date of authentication:                          				U.S. Bank, National Association, as Trustee
				
					By:		 [NAME OF AUTHENTICATING AGENT]

							Authenticating Agent
				
	Date of authentication:                          				By:		  

							Authorized Signatory

 ARTICLE III 

THE DEBT SECURITIES 

Section 3.01 Amount Unlimited; Issuable in Series. The aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one or more series. There shall be set forth in a Company Order or in one or more indentures supplemental hereto, prior to the issuance of Securities of any series: 

(a) the title of the Securities of the series (which shall distinguish the Securities of such series from the Securities of all other series,
except to the extent that additional Securities of an existing series are being issued); 
 (b) any limit upon the aggregate principal amount
of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon transfer of, or in exchange for, or in lieu of, other Securities of such series pursuant to
Section 3.04, 3.06, 3.07, 4.06, or 14.05); 
 (c) the dates on which or periods during which the Securities of the series may be issued,
and the dates on, or the range of dates within, which the principal of and premium, if any, on the Securities of such series are or may be payable or the method by which such date or dates shall be determined or extended; 

  
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 (d) the rate or rates at which the Securities of the series shall bear interest, if any, or the
method by which such rate or rates shall be determined, whether such interest shall be payable in cash or additional Securities of the same series or shall accrue and increase the aggregate principal amount outstanding of such series (including if
such Securities were originally issued at a discount), the date or dates from which such interest shall accrue, or the method by which such date or dates shall be determined, the Interest Payment Dates on which any such interest shall be payable,
and the Record Dates for the determination of Holders to whom interest is payable on such Interest Payment Dates or the method by which such date or dates shall be determined, the right, if any, to extend or defer interest payments and the duration
of such extension or deferral; 
 (e) if other than U.S. Dollars, the Foreign Currency in which Securities of the series shall be denominated
or in which payment of the principal of, premium, if any, or interest on the Securities of the series shall be payable and any other terms concerning such payment; 

(f) if the amount of payment of principal of, premium, if any, or interest on the Securities of the series may be determined with reference to
an index, formula or other method including, but not limited to, an index based on a Currency or Currencies other than that in which the Securities are stated to be payable, the manner in which such amounts shall be determined; 

(g) if the principal of, premium, if any, or interest on Securities of the series are to be payable, at the election of the Company or a Holder
thereof, in a Currency other than that in which the Securities are denominated or stated to be payable without such election, the period or periods within which, and the terms and conditions upon which, such election may be made and the time and the
manner of determining the exchange rate between the Currency in which the Securities are denominated or payable without such election and the Currency in which the Securities are to be paid if such election is made; 

(h) the place or places, if any, in addition to or instead of the Corporate Trust Office of the Trustee where the principal of, premium, if
any, and interest on Securities of the series shall be payable, and where Securities of any series may be presented for registration of transfer, exchange or conversion, and the place or places where notices and demands to or upon the Company in
respect of the Securities of such series may be made; 
 (i) the price or prices at which, the period or periods within which or the date or
dates on which, and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option; 

(j) the obligation or right, if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund,
amortization or analogous provisions or at the option of a Holder thereof and the price or prices at which, the period or periods within which or the date or dates on which, the Currency or Currencies in which and the terms and conditions upon which
Securities of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation; 

  
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 (k) if other than denominations of $2,000 or any integral multiple thereof, the denominations in
which Securities of the series shall be issuable; 
 (l) if other than the principal amount thereof, the portion of the principal amount of
the Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 7.02; 

(m) the guarantors, if any, of the Securities of the series, and the extent of the guarantees (including provisions relating to seniority,
subordination, and the release of the guarantors), if any, and any additions or changes to permit or facilitate guarantees of such Securities; 

(n) whether the Securities of the series are to be issued as Original Issue Discount Securities and the amount of discount with which such
Securities may be issued; 
 (o) provisions, if any, for the defeasance of Securities of the series in whole or in part and any addition or
change in the provisions related to satisfaction and discharge; 
 (p) whether the Securities of the series are to be issued in whole or in
part in the form of one or more Global Securities and, in such case, the Depositary for such Global Security or Global Securities, and the terms and conditions, if any, upon which interests in such Global Security or Global Securities may be
exchanged in whole or in part for the individual securities represented thereby in definitive form registered in the name or names of Persons other than such Depositary or a nominee or nominees thereof (“Individual Securities”); 

(q) the date as of which any Global Security of the series shall be dated if other than the original issuance of the first Security of the
series to be issued; 
 (r) the form of the Securities of the series; 

(s) if the Securities of the series are to be convertible into or exchangeable for any securities or property of any Person (including the
Company), the terms and conditions upon which such Securities will be so convertible or exchangeable, and any additions or changes, if any, to permit or facilitate such conversion or exchange; 

(t) whether the Securities of such series are subject to subordination and the terms of such subordination; 

(u) any restriction or condition on the transferability of the Securities of such series; 

(v) any addition or change in the provisions related to compensation and reimbursement of the Trustee which applies to Securities of such
series; 

  
 15 

 (w) any addition or change in the provisions related to supplemental indentures set forth in
Sections 14.01, 14.02 and 14.04 which applies to Securities of such series; 
 (x) provisions, if any, granting special rights to Holders
upon the occurrence of specified events; 
 (y) any addition to or change in the Events of Default which applies to any Securities of the
series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 7.02 and any addition or change in the provisions set forth in Article VII
which applies to Securities of the series; 
 (z) any addition to or change in the covenants set forth in Article VI which applies to
Securities of the series; and 
 (aa) any other terms of the Securities of such series (which terms shall not be inconsistent with the
provisions of the TIA, but may modify, amend, supplement or delete any of the terms of this Indenture with respect to such series). 
 All Securities of any
one series shall be substantially identical, except as to denomination and except as may otherwise be provided herein or set forth in a Company Order or in one or more indentures supplemental hereto. 

Section 3.02 Denominations. In the absence of any specification pursuant to Section 3.01 with respect to Securities of any
series, the Securities of such series shall be issuable only as Securities in denominations of any integral multiple of $2,000, and shall be payable only in U.S. Dollars. 

Section 3.03 Execution. Authentication. Delivery and Dating. 

(a) The Securities shall be executed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board
of Directors, its Chief Executive Officer, President, one of its Vice Presidents or Treasurer. If the Person whose signature is on a Security no longer holds that office at the time the Security is authenticated and delivered, the Security shall
nevertheless be valid. 
 (b) At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver
Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities and, if required pursuant to Section 3.01, a supplemental indenture or
Company Order setting forth the terms of the Securities of a series. The Trustee shall thereupon authenticate and deliver such Securities without any further action by the Company. The Company Order shall specify the amount of Securities to be
authenticated and the date on which the original issue of Securities is to be authenticated. 
 (c) In authenticating the first Securities of
any series and accepting the additional responsibilities under this Indenture in relation to such Securities the Trustee shall receive, and (subject to Section 11.02) shall be fully protected in relying upon an Officer’s Certificate and an
Opinion of Counsel, each prepared in accordance with Section 16.01 stating that the conditions precedent, if any, provided for in the Indenture have been complied with. 

  
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 (d) The Trustee shall have the right to decline to authenticate and deliver the Securities under
this Section 3.03 if the issue of the Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to
the Trustee. 
 (e) Each Security shall be dated the date of its authentication, except as otherwise provided pursuant to Section 3.01
with respect to the Securities of such series. 
 (f) Notwithstanding the provisions of Section 3.01 and of this Section 3.03, if
all of the Securities of any series are not to be originally issued at the same time, then the documents required to be delivered pursuant to this Section 3.03 must be delivered only once prior to the authentication and delivery of the first
Security of such series; 
 (g) If the Company shall establish pursuant to Section 3.01 that the Securities of a series are to be issued
in whole or in part in the form of one or more Global Securities, then the Company shall execute and the Trustee shall authenticate and deliver one or more Global Securities that (i) shall represent an aggregate amount equal to the aggregate
principal amount of the Outstanding Securities of such series to be represented by such Global Securities, (ii) shall be registered, if in registered form, in the name of the Depositary for such Global Security or Global Securities or the
nominee of such Depositary, (iii) shall be delivered by the Trustee to such Depositary or pursuant to such Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: 

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE NOMINEE OF THE DEPOSITARY OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO THE
NOMINEE OF THE DEPOSITARY OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
THE NOMINEE OF THE DEPOSITARY, HAS AN INTEREST HEREIN. 

  
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 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

 The aggregate principal amount of each Global Security may from time to time be increased or decreased by adjustments made on the records
of the Security Custodian, as provided in this Indenture. 
 (h) Each Depositary designated pursuant to Section 3.01 for a Global
Security in registered form must, at the time of its designation and at all times while it serves as such Depositary, be a clearing agency registered under the Exchange Act and any other applicable statute or regulation. 

(i) Members of, or participants in, the Depositary (“Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or by the Security Custodian under such Global Security, and the Depositary may be treated by the Company, the Trustee, the Paying Agent and the Registrar and any of their agents as the absolute owner
of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee, the Paying Agent or the Registrar or any of their agents from giving effect to any written certification,
proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Members, the operation of customary practices of the Depositary governing the exercise of the rights of an owner of a beneficial interest in any
Global Security. The Holder of a Global Security may grant proxies and otherwise authorize any Person, including Members and Persons that may hold interests through Members, to take any action that a Holder is entitled to take under this Indenture
or the Securities. 
 (j) No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in one of the forms provided for herein duly executed by the Trustee or by an Authenticating Agent by manual or facsimile signature of an authorized signatory of the
Trustee, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. 

Section 3.04 Temporary Securities. 

(a) Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities that are printed, lithographed, typewritten, mimeographed or otherwise reproduced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are
issued, in registered form and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may 

  
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determine, as conclusively evidenced by their execution of such Securities. Any such temporary Security may be in the form of one or more Global Securities, representing all or a portion of the
Outstanding Securities of such series. Every such temporary Security shall be executed by the Company and shall be authenticated and delivered by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as
the definitive Security or Securities in lieu of which it is issued. 
 (b) If temporary Securities of any series are issued, the Company
will cause definitive Securities of such series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such
series upon surrender of such temporary Securities at the office or agency of the Company in a Place of Payment for such series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of the same series of authorized denominations and of like tenor. Until so exchanged, the temporary Securities
of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series. 
 (c)
Upon any exchange of a portion of a temporary Global Security for a definitive Global Security or for the Individual Securities represented thereby pursuant to this Section 3.04 or Section 3.06, the temporary Global Security shall be
endorsed by the Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such temporary Global Security shall be reduced for all purposes by the amount so exchanged and endorsed. 

Section 3.05 Registrar and Paying Agent. 

(a) The Company will keep, at an office or agency to be maintained by it in a Place of Payment where Securities may be presented for
registration or presented and surrendered for registration of transfer or of exchange, and where Securities of any series that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable (the “Registrar”),
a security register for the registration and the registration of transfer or of exchange of the Securities (the registers maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the “Register”), as in this Indenture provided, which Register shall at all reasonable times be open for inspection by the Trustee. Such Register shall be in written form or in any other form capable of being
converted into written form within a reasonable time. The Company may have one or more co-Registrars; the term “Registrar” includes any co-registrar. 

(b) The Company shall enter into an appropriate agency agreement with any Registrar or co-Registrar not a party to this Indenture. The
agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of each such agent. If the Company fails to maintain a Registrar for any series, the Trustee shall act
as such and shall be entitled to appropriate compensation therefor pursuant to Section 11.01. The Company or any Affiliate thereof may act as Registrar, co-Registrar or transfer agent. 

  
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 (c) The Company hereby appoints the Trustee at its Corporate Trust Office as Registrar in
connection with the Securities and this Indenture, until such time as another Person is appointed as such. 
 Section 3.06 Transfer
and Exchange. 
 (a) Transfer. 

(i) Upon surrender for registration of transfer of any Security of any series at the Registrar the Company shall execute, and
the Trustee or any Authenticating Agent shall authenticate and deliver, in the name of the designated transferee, one or more new Securities of the same series for like aggregate principal amount of any authorized denomination or denominations. The
transfer of any Security shall not be valid as against the Company or the Trustee unless registered at the Registrar at the request of the Holder, or at the request of his, her or its attorney duly authorized in writing. 

(ii) Notwithstanding any other provision of this Section, unless and until it is exchanged in whole or in part for the
Individual Securities represented thereby, a Global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary. 

(b) Exchange. 

(i) At the option of the Holder, Securities of any series (other than a Global Security, except as set forth below) may be
exchanged for other Securities of the same series for like aggregate principal amount of any authorized denomination or denominations, upon surrender of the Securities to be exchanged at the Registrar. 

(ii) Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities that the Holder making the exchange is entitled to receive. 
 (c) Exchange of Global Securities for Individual
Securities. Except as provided below, owners of beneficial interests in Global Securities will not be entitled to receive Individual Securities. 

(i) Individual Securities shall be issued to all owners of beneficial interests in a Global Security in exchange for such
interests if: (A) at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for the Securities of
such series shall no longer be eligible under Section 3.03(h) and, in each case, a successor Depositary is not appointed by the Company within 90 days of such notice, or (B) the Company executes and delivers to the Trustee and the
Registrar an Officer’s Certificate stating that such Global Security shall be so exchangeable. 

  
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 In connection with the exchange of an entire Global Security for Individual
Securities pursuant to this subsection (c), such Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery
of Individual Securities of such series, will authenticate and deliver to each beneficial owner identified by the Depositary in exchange for its beneficial interest in such Global Security, an equal aggregate principal amount of Individual
Securities of authorized denominations. 
 (ii) The owner of a beneficial interest in a Global Security will be entitled to
receive an Individual Security in exchange for such interest if an Event of Default has occurred and is continuing. Upon receipt by the Security Custodian and Registrar of instructions from the Holder of a Global Security directing the Security
Custodian and Registrar to (x) issue one or more Individual Securities in the amounts specified to the owner of a beneficial interest in such Global Security and (y) debit or cause to be debited an equivalent amount of beneficial interest
in such Global Security, subject to the rules and regulations of the Depositary: 
 (A) the Security Custodian and Registrar
shall notify the Company and the Trustee of such instructions, identifying the owner and amount of such beneficial interest in such Global Security; 

(B) the Company shall promptly execute and the Trustee, upon receipt of a Company Order for the authentication and delivery of
Individual Securities of such series, shall authenticate and deliver to such beneficial owner Individual Securities in an equivalent amount to such beneficial interest in such Global Security; and 

(C) the Security Custodian and Registrar shall decrease such Global Security by such amount in accordance with the foregoing.
In the event that the Individual Securities are not issued to each such beneficial owner promptly after the Registrar has received a request from the Holder of a Global Security to issue such Individual Securities, the Company expressly
acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Section 7.07 hereof, the right of any beneficial Holder of Securities to pursue such remedy with respect to the portion of the Global Security that represents
such beneficial Holder’s Securities as if such Individual Securities had been issued. 
 (iii) If specified by the
Company pursuant to Section 3.01 with respect to a series of Securities, the Depositary for such series of Securities may surrender a Global Security for such series of Securities in exchange in whole or in part for Individual Securities of
such series on such terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the Trustee shall authenticate and deliver, without service charge, 

  
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 (A) to each Person specified by such Depositary a new Individual Security or new
Individual Securities of the same series, of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Global Security; and 

(B) to such Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of
the surrendered Global Security and the aggregate principal amount of Individual Securities delivered to Holders thereof. 

(iv) In any exchange provided for in clauses (i) through (iii), the Company will execute and the Trustee will authenticate
and deliver Individual Securities in registered form in authorized denominations. 
 (v) Upon the exchange in full of a
Global Security for Individual Securities, such Global Security shall be canceled by the Trustee. Individual Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized
denominations as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Persons in whose names such
Securities are so registered. 
 (d) All Securities issued upon any registration of transfer or exchange of Securities shall be valid
obligations of the Company evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered for such registration of transfer or exchange. 

(e) Every Security presented or surrendered for registration of transfer, or for exchange or payment shall (if so required by the Company, the
Trustee or the Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, the Trustee and the Registrar, duly executed by the Holder thereof or by his, her or its attorney
duly authorized in writing. 
 (f) No service charge will be made for any registration of transfer or exchange of Securities. The Company or
the Trustee may require payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than those expressly provided in this
Indenture to be made at the Company’s own expense or without expense or charge to the Holders. 
 (g) The Company shall not be required
to (i) register, transfer or exchange Securities of any series during a period beginning at the opening of business 15 days before the day of the transmission of a notice of redemption of Securities of such series selected for redemption under
Section 4.03 and ending at the close of business on the day of such transmission, or (ii) register, transfer or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being
redeemed in part. 

  
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 (h) Prior to the due presentation for registration of transfer or exchange of any Security, the
Company, the Trustee, the Paying Agent, the Registrar, any co-Registrar or any of their agents may deem and treat the Person in whose name a Security is registered as the absolute owner of such Security (whether or not such Security shall be overdue
and notwithstanding any notation of ownership or other writing thereon) for all purposes whatsoever, and none of the Company, the Trustee, the Paying Agent, the Registrar, any co-Registrar or any of their agents shall be affected by any notice to
the contrary. 
 (i) In case a successor Company (“Successor Company”) has executed an indenture supplemental hereto with the
Trustee pursuant to Article XIV, any of the Securities authenticated or delivered pursuant to such transaction may, from time to time, at the request of the Successor Company, be exchanged for other Securities executed in the name of the Successor
Company with such changes in phraseology and form as may be appropriate, but otherwise identical to the Securities surrendered for such exchange and of like principal amount; and the Trustee, upon Company Order of the Successor Company, shall
authenticate and deliver Securities as specified in such order for the purpose of such exchange. If Securities shall at any time be authenticated and delivered in any new name of a Successor Company pursuant to this Section 3.06 in exchange or
substitution for or upon registration of transfer of any Securities, such Successor Company, at the option of the Holders but without expense to them, shall provide for the exchange of all Securities at the time Outstanding for Securities
authenticated and delivered in such new name. 
 (j) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable United States federal or state securities laws. 

(k) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any interest in any Security other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when
expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 

(l) Neither the Trustee nor any agent of the Trustee shall have any responsibility for any actions taken or not taken by the Depositary. 

Section 3.07 Mutilated. Destroyed. Lost and Stolen Securities. 

(a) If (i) any mutilated Security is surrendered to the Trustee at its Corporate Trust Office or (ii) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Security, and there is delivered to the Company and the Trustee security or indemnity satisfactory to them to save each of them and any Paying Agent harmless, and
neither the Company nor the Trustee receives notice that such Security has been acquired by 

  
 23 

 
a protected purchaser, then the Company shall execute and upon Company Order the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Security, a new Security of the same series and of like tenor, form, terms and principal amount, bearing a number not contemporaneously outstanding, that neither gain nor loss in interest shall result from such exchange or substitution. 

(b) In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay the amount due on such Security in accordance with its terms. 
 (c) Upon the issuance
of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in respect thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith. 
 (d) Every new Security of any series issued pursuant to this Section shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other
Securities of that series duly issued hereunder. 
 (e) The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 

Section 3.08 Payment of Interest: Interest Rights Preserved. 

(a) Interest on any Security that is payable and is punctually paid or duly provided for on any Interest Payment Date shall be paid to the
Person in whose name such Security (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such interest notwithstanding the cancellation of such Security upon any transfer or exchange subsequent to the
Record Date. Payment of interest on Securities shall be made at the Corporate Trust Office (except as otherwise specified pursuant to Section 3.01) or, at the option of the Company, by check mailed to the address of the Person entitled thereto
as such address shall appear in the Register or, in accordance with arrangements satisfactory to the Trustee, by wire transfer to an account designated by the Holder. 

(b) Any interest on any Security that is payable but is not punctually paid or duly provided for on any Interest Payment Date (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Record Date by virtue of his, her or its having been such a Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in clause (i) or (ii) below: 
 (i) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest (a “Special Record Date”),
which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of 

  
 24 

 
Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 calendar days and not less than
10 calendar days prior to the date of the proposed payment and not less than 10 calendar days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holders of such Securities at their addresses as
they appear in the Register, not less than 10 calendar days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest
shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (ii). 

(ii) The Company may make payment of any Defaulted Interest on Securities in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee. 
 (c) Subject to the provisions set forth herein relating to Record Dates,
each Security delivered pursuant to any provision of this Indenture in exchange or substitution for, or upon registration of transfer of, any other Security shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security. 
 Section 3.09 Cancellation. Unless otherwise specified pursuant to Section 3.01 for Securities of
any series, all Securities surrendered for payment, redemption, registration of transfer or exchange or credit against any sinking fund or otherwise shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee for
cancellation and shall be promptly canceled by it and, if surrendered to the Trustee, shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder that the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture. The Trustee shall dispose of all canceled Securities held by it in accordance with its then customary procedures and deliver a certificate of such disposal to the Company upon its
written request therefor. The acquisition of any Securities by the Company shall not operate as a redemption or satisfaction of the Indebtedness represented thereby unless and until such Securities are surrendered to the Trustee for cancellation.

  
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 Section 3.10 Computation of Interest. Except as otherwise specified pursuant to
Section 3.01 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months. 

Section 3.11 Currency of Payments in Respect of Securities. 

(a) Except as otherwise specified pursuant to Section 3.01 for Securities of any series, payment of the principal of and premium, if any,
and interest on Securities of such series will be made in U.S. Dollars. 
 (b) For purposes of any provision of the Indenture where the
Holders of Outstanding Securities may perform an action that requires that a specified percentage of the Outstanding Securities of all series perform such action and for purposes of any decision or determination by the Trustee of amounts due and
unpaid for the principal of and premium, if any, and interest on the Securities of all series in respect of which moneys are to be disbursed ratably, the principal of and premium, if any, and interest on the Outstanding Securities denominated in a
Foreign Currency will be the amount in U.S. Dollars based upon exchange rates, determined as specified pursuant to Section 3.01 for Securities of such series, as of the date for determining whether the Holders entitled to perform such action
have performed it or as of the date of such decision or determination by the Trustee, as the case may be. 
 (c) Any decision or
determination to be made regarding exchange rates shall be made by an agent appointed by the Company; provided, that such agent shall accept such appointment in writing and the terms of such appointment shall, in the opinion of the Company at
the time of such appointment, require such agent to make such determination by a method consistent with the method provided pursuant to Section 3.01 for the making of such decision or determination. All decisions and determinations of such
agent regarding exchange rates shall, in the absence of manifest error, be conclusive for all purposes and irrevocably binding upon the Company, the Trustee and all Holders of the Securities. 

Section 3.12 Judgments. The Company may provide pursuant to Section 3.01 for Securities of any series that (a) the
obligation, if any, of the Company to pay the principal of, premium, if any, and interest on the Securities of any series in a Foreign Currency or U.S. Dollars (the “Designated Currency”) as may be specified pursuant to Section 3.01
is of the essence and agrees that, to the fullest extent possible under applicable law, judgments in respect of such Securities shall be given in the Designated Currency; (b) the obligation of the Company to make payments in the Designated
Currency of the principal of and premium, if any, and interest on such Securities shall, notwithstanding any payment in any other Currency (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the
Designated Currency that the Holder receiving such payment may, in accordance with normal banking procedures, purchase with the sum paid in such other Currency (after any premium and cost of exchange) on the business day in the country of issue of
the Designated Currency or in the international banking community (in the case of a composite currency) immediately following the day on which such Holder receives such payment; (c) if the amount in the Designated Currency that may be so
purchased for any reason falls short of the amount originally due, the Company shall pay such additional amounts as may be necessary to compensate for such shortfall; and (d) any obligation of the Company not discharged by such payment shall be
due as a separate and independent obligation and, until discharged as provided herein, shall continue in full force and effect. 

  
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 Section 3.13 CUSIP Numbers. The Company in issuing any Securities may use CUSIP, ISIN
or other similar numbers, if then generally in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice of redemption or exchange with respect to such series provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and
any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the CUSIP, ISIN or other similar numbers. 

ARTICLE IV 

REDEMPTION OF SECURITIES 

Section 4.01 Applicability of Right of Redemption. Redemption of Securities (other than pursuant to a sinking fund, amortization
or analogous provision) permitted by the terms of any series of Securities shall be made (except as otherwise specified pursuant to Section 3.01 for Securities of any series) in accordance with this Article; provided, however,
that if any such terms of a series of Securities shall conflict with any provision of this Article, the terms of such series shall govern. 

Section 4.02 Selection of Securities to be Redeemed. 

(a) If the Company shall at any time elect to redeem all or any portion of the Securities of a series then Outstanding, it shall at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter period shall be satisfactory to the Trustee) notify the Trustee of such Redemption Date and of the principal amount of Securities to be redeemed, and thereupon the Trustee
shall select, by lot or in such other manner as the Trustee shall deem appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Security of such series; provided that the unredeemed
portion of the principal amount of any Security shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Security. In any case where more than one Security of such series is registered in the
same name, the Trustee may treat the aggregate principal amount so registered as if it were represented by one Security of such series. The Trustee shall, as soon as practicable, notify the Company in writing of the Securities and portions of
Securities so selected. 
 (b) For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the
redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security that has been or is to be redeemed. If the Company shall so direct, Securities
registered in the name of the Company, any Affiliate or any Subsidiary thereof shall not be included in the Securities selected for redemption. 

  
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 Section 4.03 Notice of Redemption. 

(a) Notice of redemption shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the
Company, not less than 30 nor more than 60 days prior to the Redemption Date (unless a shorter period shall be satisfactory to the Trustee), to the Holders of Securities of any series to be redeemed in whole or in part pursuant to this Article, in
the manner provided in Section 16.04. Any notice so given shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. Failure to give such notice, or any defect in such notice to the Holder of any
Security of a series designated for redemption, in whole or in part, shall not affect the sufficiency of any notice of redemption with respect to the Holder of any other Security of such series. 

(b) All notices of redemption shall identify the Securities to be redeemed (including CUSIP, ISIN or other similar numbers, if available) and
shall state: 
 (i) such election by the Company to redeem Securities of such series pursuant to provisions contained in this
Indenture or the terms of the Securities of such series or a supplemental indenture establishing such series, if such be the case; 

(ii) the Redemption Date; 

(iii) the Redemption Price; 

(iv) if less than all Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial
redemption, the principal amounts) of the Securities of such series to be redeemed; 
 (v) that on the Redemption Date the
Redemption Price will become due and payable upon each such Security to be redeemed, and that, if applicable, interest thereon shall cease to accrue on and after said date; 

(vi) the Place or Places of Payment where such Securities are to be surrendered for payment of the Redemption Price; and 

(vii) that the redemption is for a sinking fund, if such is the case; 

Section 4.04 Deposit of Redemption Price. On or prior to 11:00 a.m., New York City time, on the Redemption Date for any
Securities, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 6.03) an amount of money in the Currency in which such
Securities are denominated (except as provided pursuant to Section 3.01) sufficient to pay the Redemption Price of such Securities or any portions thereof that are to be redeemed on that date. 

Section 4.05 Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, any Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption Price and from and after such date (unless the Company shall Default in the payment of the Redemption Price) such Securities shall cease to bear interest. Upon
surrender of any such Security for redemption in accordance with said notice, such 

  
 28 

 
Security shall be paid by the Company at the Redemption Price; provided, however, that (unless otherwise provided pursuant to Section 3.01) installments of interest that have a
Stated Maturity on or prior to the Redemption Date for such Securities shall be payable according to the terms of such Securities and the provisions of Section 3.08. 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal thereof and premium, if any,
thereon shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security. 
 Section 4.06
Securities Redeemed in Part. Any Security that is to be redeemed only in part shall be surrendered at the Corporate Trust Office or such other office or agency of the Company as is specified pursuant to Section 3.01 with, if the Company,
the Registrar or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company, the Registrar and the Trustee duly executed by the Holder thereof or his, her or its attorney duly authorized in
writing, and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series, of like tenor and form, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered; except that if a Global Security is so surrendered, the Company shall execute, and the
Trustee shall authenticate and deliver to the Depositary for such Global Security, without service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion of the principal of the Global Security so
surrendered. In the case of a Security providing appropriate space for such notation, at the option of the Holder thereof, the Trustee, in lieu of delivering a new Security or Securities as aforesaid, may make a notation on such Security of the
payment of the redeemed portion thereof. 
 ARTICLE V 

SINKING FUNDS 

Section 5.01 Applicability of Sinking Fund. 

(a) Redemption of Securities permitted or required pursuant to a sinking fund for the retirement of Securities of a series by the terms of such
series of Securities shall be made in accordance with such terms of such series of Securities and this Article, except as otherwise specified pursuant to Section 3.01 for Securities of such series, provided, however, that if any
such terms of a series of Securities shall conflict with any provision of this Article, the terms of such series shall govern. 
 (b) The
minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “Mandatory Sinking Fund Payment,” and any payment in excess of such minimum amount provided for by the terms of
Securities of any series is herein referred to as an “Optional Sinking Fund Payment.” If provided for by the terms of Securities of any series, the cash amount of any Mandatory Sinking Fund Payment may be subject to reduction as provided
in Section 5.02. 

  
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 Section 5.02 Mandatory Sinking Fund Obligation. The Company may, at its option,
satisfy any Mandatory Sinking Fund Payment obligation, in whole or in part, with respect to a particular series of Securities by (a) delivering to the Trustee Securities of such series in transferable form theretofore purchased or otherwise
acquired by the Company or redeemed at the election of the Company pursuant to Section 4.03 or (b) receiving credit for Securities of such series (not previously so credited) acquired by the Company and theretofore delivered to the
Trustee. The Trustee shall credit such Mandatory Sinking Fund Payment obligation with an amount equal to the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such Mandatory Sinking
Fund Payment shall be reduced accordingly. If the Company shall elect to so satisfy any Mandatory Sinking Fund Payment obligation, it shall deliver to the Trustee not less than 45 days prior to the relevant sinking fund payment date an
Officer’s Certificate, which shall designate the Securities (and portions thereof, if any) so delivered or credited and which shall be accompanied by such Securities (to the extent not theretofore delivered) in transferable form. In case of the
failure of the Company, at or before the time so required, to give such notice and deliver such Securities the Mandatory Sinking Fund Payment obligation shall be paid entirely in moneys. 

Section 5.03 Optional Redemption at Sinking Fund Redemption Price. In addition to the sinking fund requirements of
Section 5.02, to the extent, if any, provided for by the terms of a particular series of Securities, the Company may, at its option, make an Optional Sinking Fund Payment with respect to such Securities. Unless otherwise provided by such terms,
(a) to the extent that the right of the Company to make such Optional Sinking Fund Payment shall not be exercised in any year, it shall not be cumulative or carried forward to any subsequent year, and (b) such optional payment shall
operate to reduce the amount of any Mandatory Sinking Fund Payment obligation as to Securities of the same series. If the Company intends to exercise its right to make such optional payment in any year it shall deliver to the Trustee not less than
45 days prior to the relevant sinking fund payment date an Officer’s Certificate stating that the Company will exercise such optional right, and specifying the amount which the Company will pay on or before the next succeeding sinking fund
payment date. Such Officer’s Certificate shall also state that no Event of Default has occurred and is continuing. 
 Section 5.04
Application of Sinking Fund Payment. 
 (a) If the sinking fund payment or payments made in funds pursuant to either Section 5.02
or 5.03 with respect to a particular series of Securities plus any unused balance of any preceding sinking fund payments made in funds with respect to such series shall exceed $50,000 (or a lesser sum if the Company shall so request, or such
equivalent sum for Securities denominated other than in U.S. Dollars), it shall be applied by the Trustee on the sinking fund payment date next following the date of such payment, unless the date of such payment shall be a sinking fund payment date,
in which case such payment shall be applied on such sinking fund payment date, to the redemption of Securities of such series at the redemption price specified pursuant to Section 4.03(b). The Trustee shall select, in the manner provided in
Section 4.02, for redemption on such sinking fund payment date, a sufficient principal amount of Securities of such series to absorb said funds, as nearly as may be, and shall, at the expense and in the name of the Company, thereupon cause
notice of redemption of the Securities to be given in substantially the manner provided in Section 4.03(a) for the redemption of Securities in part at the option of the Company, except that the notice of redemption shall also state that the
Securities are being 

  
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redeemed for the sinking fund. Any sinking fund moneys not so applied by the Trustee to the redemption of Securities of such series shall be added to the next sinking fund payment received in
funds by the Trustee and, together with such payment, shall be applied in accordance with the provisions of this Section 5.04. Any and all sinking fund moneys held by the Trustee on the last sinking fund payment date with respect to Securities
of such series, and not held for the payment or redemption of particular Securities of such series, shall be applied by the Trustee to the payment of the principal of the Securities of such series at Maturity. 

(b) On or prior to each sinking fund payment date, the Company shall pay to the Trustee a sum equal to all interest accrued to but not
including the date fixed for redemption on Securities to be redeemed on such sinking fund payment date pursuant to this Section 5.04. 

(c) The Trustee shall not redeem any Securities of a series with sinking fund moneys or mail any notice of redemption of Securities of such
series by operation of the sinking fund during the continuance of a Default in payment of interest on any Securities of such series or of any Event of Default (other than an Event of Default occurring as a consequence of this paragraph) of which a
Responsible Officer of the Trustee has actual knowledge, except that if the notice of redemption of any Securities of such series shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities
if funds sufficient for that purpose shall be deposited with the Trustee in accordance with the terms of this Article. Except as aforesaid, any moneys in the sinking fund at the time any such Default or Event of Default shall occur and any moneys
thereafter paid into the sinking fund shall, during the continuance of such Default or Event of Default, be held as security for the payment of all the Securities of such series; provided, however, that in case such Default or Event of
Default shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date on which such moneys are required to be applied pursuant to the provisions of this Section 5.04. 

ARTICLE VI 

PARTICULAR COVENANTS OF THE COMPANY 

The Company hereby covenants and agrees as follows: 

Section 6.01 Payments of Securities. The Company will duly and punctually pay the principal of and premium, if any, on each series
of Securities, and the interest which shall have accrued thereon, at the dates and place and in the manner provided in the Securities and in this Indenture. 

Section 6.02 Paying Agent. 

(a) The Company will maintain in each Place of Payment for any series of Securities, if any, an office or agency where Securities may be
presented or surrendered for payment, where Securities of such series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served (the
“Paying Agent”). The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If 

  
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at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as Paying Agent to receive all presentations, surrenders, notices and demands. 

(b) The Company may also from time to time designate different or additional offices or agencies where the Securities of any series may be
presented or surrendered for any or all such purposes (in or outside of such Place of Payment), and may from time to time rescind any such designations; provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligations described in the preceding paragraph. The Company will give prompt written notice to the Trustee of any such additional designation or rescission of designation and of any change in the location of any such
different or additional office or agency. The Company shall enter into an appropriate agency agreement with any Paying Agent not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee of the name and address of each such agent. The Company or any Affiliate thereof may act as Paying Agent. 

Section 6.03 To Hold Payment in Trust. 

(a) If the Company or an Affiliate thereof shall at any time act as Paying Agent with respect to any series of Securities, then, on or before
the date on which the principal of and premium, if any, or interest on any of the Securities of that series by their terms or as a result of the calling thereof for redemption shall become payable, the Company or such Affiliate will segregate and
hold in trust for the benefit of the Holders of such Securities or the Trustee a sum sufficient to pay such principal and premium, if any, or interest which shall have so become payable until such sums shall be paid to such Holders or otherwise
disposed of as herein provided, and will notify the Trustee of its action or failure to act in that regard. Upon any proceeding under any federal bankruptcy laws with respect to the Company or any Affiliate thereof, if the Company or such Affiliate
is then acting as Paying Agent, the Trustee shall replace the Company or such Affiliate as Paying Agent. 
 (b) If the Company shall appoint,
and at the time have, a Paying Agent for the payment of the principal of and premium, if any, or interest on any series of Securities, then prior to 11:00 a.m., New York City time, on the date on which the principal of and premium, if any, or
interest on any of the Securities of that series shall become payable as aforesaid, whether by their terms or as a result of the calling thereof for redemption, the Company will deposit with such Paying Agent a sum sufficient to pay such principal
and premium, if any, or interest, such sum to be held in trust for the benefit of the Holders of such Securities or the Trustee, and (unless such Paying Agent is the Trustee), the Company or any other obligor of such Securities will promptly notify
the Trustee of its payment or failure to make such payment. 
 (c) If the Paying Agent shall be other than the Trustee, the Company will
cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 6.03, that such Paying Agent shall: 

  
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 (i) hold all moneys held by it for the payment of the principal of and premium,
if any, or interest on the Securities of that series in trust for the benefit of the Holders of such Securities until such sums shall be paid to such Holders or otherwise disposed of as herein provided; 

(ii) give to the Trustee notice of any Default by the Company or any other obligor upon the Securities of that series in the
making of any payment of the principal of and premium, if any, or interest on the Securities of that series; and 
 (iii) at
any time during the continuance of any such Default, upon the written request of the Trustee, pay to the Trustee all sums so held in trust by such Paying Agent. 

(d) Anything in this Section 6.03 to the contrary notwithstanding, the Company may at any time, for the purpose of obtaining a release,
satisfaction or discharge of this Indenture or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or by any Paying Agent other than the Trustee as required by this Section 6.03, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent. 
 (e) Any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of and premium, if any, or interest on any Security of any series and remaining unclaimed for two years after such principal and
premium, if any, or interest has become due and payable shall be paid to the Company upon Company Order along with any interest that has accumulated thereon as a result of such money being invested at the direction of the Company, or (if then held
by the Company) shall be discharged from such trust, and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment of such amounts without interest thereon, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in The City of New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 

Section 6.04 Merger. Consolidation and Sale of Assets. Except as otherwise provided as contemplated by Section 3.01 with
respect to any series of Securities: 
 (a) The Company will not consolidate with any other entity or accept a merger of any other entity
into the Company or permit the Company to be merged into any other entity, or sell other than for cash or lease all or substantially all its assets to another entity, or purchase all or substantially all the assets of another entity, unless
(i) either the Company shall be the continuing entity, or the successor, transferee or lessee entity (if other than the Company) shall expressly assume, by indenture supplemental hereto, executed and delivered by such entity prior to or
simultaneously with such consolidation, merger, sale or lease, the due and punctual 

  
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payment of the principal of and interest and premium, if any, on all the Securities, according to their tenor, and the due and punctual performance and observance of all other obligations to the
Holders and the Trustee under this Indenture or under the Securities to be performed or observed by the Company; and (ii) immediately after such consolidation, merger, sale, lease or purchase the Company or the successor, transferee or lessee
entity (if other than the Company) would not be in Default in the performance of any covenant or condition of this Indenture. A purchase by a Subsidiary of all or substantially all of the assets of another entity shall not be deemed to be a purchase
of such assets by the Company. 
 (b) Upon any consolidation with or merger into any other entity, or any sale other than for cash, or any
conveyance or lease of all or substantially all of the assets of the Company in accordance with this Section 6.04, the successor entity formed by such consolidation or into or with which the Company is merged or to which the Company is sold or
to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor entity had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Company shall be relieved of all obligations and covenants under this Indenture and the Securities, and from time to time such entity may exercise each and every right and power
of the Company under this Indenture, in the name of the Company, or in its own name; and any act or proceeding by any provision of this Indenture required or permitted to be done by the Board of Directors or any officer of the Company may be done
with like force and effect by the like board or officer of any entity that shall at the time be the successor of the Company hereunder. In the event of any such sale or conveyance, but not any such lease, the Company (or any successor entity which
shall theretofore have become such in the manner described in this Section 6.04) shall be discharged from all obligations and covenants under this Indenture and the Securities and may thereupon be dissolved and liquidated. 

Section 6.05 Compliance Certificate. Except as otherwise provided as contemplated by Section 3.01 with respect to any series
of Securities, the Company shall furnish to the Trustee annually, within 120 days after the end of each fiscal year, a brief certificate from the principal executive officer, principal financial officer or principal accounting officer as to his or
her knowledge of the Company’s compliance with all conditions and covenants under this Indenture (which compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture) and, in the
event of any Default, specifying each such Default and the nature and status thereof of which such person may have knowledge. Such certificates need not comply with Section 16.01 of this Indenture. 

Section 6.06 Conditional Waiver by Holders of Securities. Anything in this Indenture to the contrary notwithstanding, the Company
may fail or omit in any particular instance to comply with a covenant or condition set forth herein with respect to any series of Securities if the Company shall have obtained and filed with the Trustee, prior to the time of such failure or
omission, evidence (as provided in Article VIII) of the consent of the Holders of a majority in aggregate principal amount of the Securities of such series at the time Outstanding, either waiving such compliance in such instance or generally waiving
compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, or impair any right consequent thereon and, until such waiver shall have become effective,
the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect. 

  
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 Section 6.07 Statement by Officers as to Default. The Company shall deliver to the
Trustee as soon as possible and in any event within 30 days after the Company becomes aware of the occurrence of any Event of Default or an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default, an
Officer’s Certificate setting forth the details of such Event of Default or Default and the action which the Company proposes to take with respect thereto. 

ARTICLE VII 
 REMEDIES
OF TRUSTEE AND SECURITYHOLDERS 
 Section 7.01 Events of Default. Except where otherwise indicated by the context or
where the term is otherwise defined for a specific purpose, the term “Event of Default” as used in this Indenture with respect to Securities of any series shall mean one of the following described events unless it is either inapplicable to
a particular series or it is specifically deleted or modified in the manner contemplated in Section 3.01: 
 (a) the failure of the
Company to pay any installment of interest on any Security of such series when and as the same shall become payable, which failure shall have continued unremedied for a period of 30 days; 

(b) the failure of the Company to pay the principal of (and premium, if any, on) any Security of such series, when and as the same shall become
payable, whether at Maturity as therein expressed, by call for redemption (otherwise than pursuant to a sinking fund), by declaration as authorized by this Indenture or otherwise; 

(c) the failure of the Company to pay a sinking fund installment, if any, when and as the same shall become payable by the terms of a Security
of such series, which failure shall have continued unremedied for a period of 30 days; 
 (d) the failure of the Company, subject to the
provisions of Section 6.06, to perform any covenants or agreements contained in this Indenture (including any indenture supplemental hereto pursuant to which the Securities of such series were issued as contemplated by Section 3.01) (other
than a covenant or agreement which has been expressly included in this Indenture solely for the benefit of a series of Securities other than that series and other than a covenant or agreement a default in the performance of which is elsewhere in
this Section 7.01 specifically addressed), which failure shall not have been remedied, or without provision deemed to be adequate for the remedying thereof having been made, for a period of 90 days after written notice shall have been given to
the Company by the Trustee or shall have been given to the Company and the Trustee by Holders of 25% or more in aggregate principal amount of the Securities of such series then Outstanding, specifying such failure, requiring the Company to remedy
the same and stating that such notice is a “Notice of Default” hereunder; 

  
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 (e) the entry by a court having jurisdiction in the premises of a decree or order for relief in
respect of the Company in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar official) of the Company or of substantially all the property of the Company or ordering the winding-up or liquidation of its affairs and such decree or order shall
remain unstayed and in effect for a period of 90 consecutive days; 
 (f) the commencement by the Company of a voluntary case under the
federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Company to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Company to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian or sequestrator (or similar official) of the Company or of substantially all the
property of the Company or the making by it of an assignment for the benefit of creditors or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any action; or 
 (g) the occurrence of any other Event of Default with respect to Securities of such series as provided in
Section 3.01; 
 provided, however, that no event described in clause (d) or (other than with respect to a payment default)
(g) above shall constitute an Event of Default hereunder until a Responsible Officer of the Trustee has actual knowledge thereof or until a written notice of any such event is received by the Trustee at the Corporate Trust Office, and such
notice refers to the facts underlying such event, the Securities generally, the Company and the Indenture. 
 Notwithstanding the foregoing
provisions of this Section 7.01, to the extent elected by the Company, the sole remedy for an Event of Default relating to the failure to comply with the reporting obligations specified in Section 10.02, and for any failure to comply with
the requirements of § 314(a)(1) of the TIA, shall for the first 60 days after the occurrence of such an Event of Default consist exclusively of the right to receive additional interest on the Securities at an annual rate equal to 0.25% of the
principal amount of the Securities. The additional interest will accrue on all outstanding Securities from and including the date on which an Event of Default relating to a failure to comply with the reporting obligations specified in
Section 10.02 first occurs to but not including the 60th day thereafter (or such earlier date on which the Event of Default relating to the reporting obligations shall have been cured or waived). On such 60th day (or earlier, if the Event of
Default relating to the reporting obligations is cured or waived prior to such 60th day), such additional interest will cease to accrue and, if the Event of Default relating to the reporting obligations has not been cured or waived prior to such
60th day, the Securities shall be subject to an acceleration of maturity as provided in Section 7.02(a). 
 The provisions of the
immediately preceding paragraph will not affect the rights of Holders in the event of the occurrence of any other Event of Default; provided, however, that in no event will the rate of additional interest accruing pursuant to the
immediately preceding paragraph at any time exceed 1.00% per annum, in the aggregate. In the event the Company does not elect to pay additional interest upon an Event of Default in accordance with the immediately preceding paragraph, the
Securities shall be subject to an acceleration of maturity as provided in Section 7.02(a). If the Company elects to pay additional interest as the sole remedy for an Event 

  
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of Default relating to the failure to comply with the reporting obligations specified in Section 10.02, and for any failure to comply with the requirements of § 314(a)(1) of the TIA in
accordance with the immediately preceding paragraph, the Company shall notify all Holders and the Trustee and Paying Agent of such election on or before the close of business on the date on which such Event of Default first occurs. 

Notwithstanding the foregoing provisions of this Section 7.01, if the principal or any premium or interest on any Security is payable in
a Currency other than the Currency of the United States and such Currency is not available to the Company for making payment thereof due to the imposition of exchange controls or other circumstances beyond the control of the Company, the Company
will be entitled to satisfy its obligations to Holders of the Securities by making such payment in the Currency of the United States in an amount equal to the Currency of the United States equivalent of the amount payable in such other Currency, as
determined by the Company’s agent in accordance with Section 3.11(c) hereof by reference to the noon buying rate in The City of New York for cable transfers for such Currency (“Exchange Rate”), as such Exchange Rate is reported
or otherwise made available by the Federal Reserve Bank of New York on the date of such payment, or, if such rate is not then available, on the basis of the most recently available Exchange Rate. Notwithstanding the foregoing provisions of this
Section 7.01, any payment made under such circumstances in the Currency of the United States where the required payment is in a Currency other than the Currency of the United States will not constitute an Event of Default under this Indenture.

 Section 7.02 Acceleration; Rescission and Annulment. 

(a) Except as otherwise provided as contemplated by Section 3.01 with respect to any series of Securities, if any one or more of the
above-described Events of Default (other than an Event of Default specified in Section 7.01(e) or 7.01(f)) shall happen with respect to Securities of any series at the time Outstanding, then, and in each and every such case, during the
continuance of any such Event of Default, the Trustee or the Holders of 25% or more in principal amount of the Securities of such series then Outstanding may declare the principal (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the terms of that series) of and all accrued but unpaid interest on all the Securities of such series then Outstanding to be due and payable immediately by a notice in writing
to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable. If an Event of Default specified in Section 7.01(e) or 7.01(f) occurs
and is continuing, then in every such case, the principal amount of all of the Securities of that series then Outstanding shall automatically, and without any declaration or any other action on the part of the Trustee or any Holder, become due and
payable immediately. Upon payment of such amounts in the Currency in which such Securities are denominated (subject to Section 7.01 and except as otherwise provided pursuant to Section 3.01), all obligations of the Company in respect of
the payment of principal of and interest on the Securities of such series shall terminate. 
 (b) The provisions of Section 7.02(a),
however, are subject to the condition that, at any time after the principal of all the Securities of such series, to which any one or more of the above-described Events of Default is applicable, shall have been so declared to be due and payable, and
before a judgment or decree for payment of the money due has been obtained by the 

  
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Trustee as hereinafter provided in this Article, the Event of Default giving rise to such declaration of acceleration shall, without further act, be deemed to have been waived, and such
declaration and its consequences shall, without further act, be deemed to have been rescinded and annulled, if: 
 (i) the
Company has paid or deposited with the Trustee or Paying Agent a sum in the Currency in which such Securities are denominated (subject to Section 7.01 and except as otherwise provided pursuant to Section 3.01) sufficient to pay 

(A) all amounts owing the Trustee and any predecessor trustee hereunder under Section 11.01(a) (provided,
however, that all sums payable under this clause (A) shall be paid in U.S. Dollars); 
 (B) all arrears of
interest, if any, upon all the Securities of such series (with interest, to the extent that interest thereon shall be legally enforceable, on any overdue installment of interest at the rate borne by such Securities at the rate or rates prescribed
therefor in such Securities); and 
 (C) the principal of and premium, if any, on any Securities of such series that have
become due otherwise than by such declaration of acceleration and interest thereon; and 
 (ii) every other Default and Event
of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in
Section 7.06. 
 (c) No such rescission shall affect any subsequent default or impair any right consequent thereon. 

(d) For all purposes under this Indenture, if a portion of the principal of any Original Issue Discount Securities shall have been accelerated
and declared due and payable pursuant to the provisions hereof, then, from and after such declaration, unless such declaration has been rescinded and annulled, the principal amount of such Original Issue Discount Securities shall be deemed, for all
purposes hereunder, to be such portion of the principal thereof as shall be due and payable as a result of such acceleration, and payment of such portion of the principal thereof as shall be due and payable as a result of such acceleration, together
with interest, if any, thereon and all other amounts owing thereunder, shall constitute payment in full of such Original Issue Discount Securities. 

Section 7.03 Other Remedies. If the Company shall fail for a period of 30 days to pay any installment of interest on the
Securities of any series or shall fail to pay the principal of and premium, if any, on any of the Securities of such series when and as the same shall become due and payable, whether at Maturity, or by call for redemption (other than pursuant to the
sinking fund), by declaration as authorized by this Indenture, or otherwise, or shall fail for a period of 30 days to make any required sinking fund payment as to a series of Securities, then, upon demand of the Trustee, the Company will pay to the
Paying Agent for the benefit of the Holders of Securities of such series then Outstanding the whole amount which then shall have become due 

  
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and payable on all the Securities of such series, with interest on the overdue principal and premium, if any, and (so far as the same may be legally enforceable) on the overdue installments of
interest at the rate borne by the Securities of such series, and all amounts owing the Trustee and any predecessor trustee hereunder under Section 11.01(a). 

In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any action or proceeding at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor upon the Securities of such series, and collect the moneys adjudged or decreed to be payable out of the property of the Company or any other obligor upon the Securities of such
series, wherever situated, in the manner provided by law. Every recovery of judgment in any such action or other proceeding, subject to the payment to the Trustee of all amounts owing the Trustee and any predecessor trustee hereunder under
Section 11.01(a), shall be for the ratable benefit of the Holders of such series of Securities which shall be the subject of such action or proceeding. All rights of action upon or under any of the Securities or this Indenture may be enforced
by the Trustee without the possession of any of the Securities and without the production of any thereof at any trial or any proceeding relative thereto. 

Section 7.04 Trustee as Attorney-in-Fact. The Trustee is hereby appointed, and each and every Holder of the Securities, by
receiving and holding the same, shall be conclusively deemed to have appointed the Trustee, the true and lawful attorney-in-fact of such Holder, with authority to make or file (whether or not the Company shall be in Default in respect of the payment
of the principal of, or interest on, any of the Securities), in its own name and as trustee of an express trust or otherwise as it shall deem advisable, in any receivership, insolvency, liquidation, bankruptcy, reorganization or other judicial
proceeding relative to the Company or any other obligor upon the Securities or to their respective creditors or property, any and all claims, proofs of claim, proofs of debt, petitions, consents, other papers and documents and amendments of any
thereof, as may be necessary or advisable in order to have the claims of the Trustee and any predecessor trustee hereunder and of the Holders of the Securities allowed in any such proceeding and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to execute and deliver any and all other papers and documents and to do and perform any and all other acts and things, as it may deem necessary or advisable in order to enforce in any such proceeding any
of the claims of the Trustee and any predecessor trustee hereunder and of any of such Holders in respect of any of the Securities; and any receiver, assignee, trustee, custodian or debtor in any such proceeding is hereby authorized, and each and
every taker or Holder of the Securities, by receiving and holding the same, shall be conclusively deemed to have authorized any such receiver, assignee, trustee, custodian or debtor, to make any such payment or delivery only to or on the order of
the Trustee, and to pay to the Trustee any amount due it and any predecessor trustee hereunder under Section 11.01(a); provided, however, that nothing herein contained shall be deemed to authorize or empower the Trustee to consent
to or accept or adopt, on behalf of any Holder of Securities, any plan of reorganization or readjustment affecting the Securities or the rights of any Holder thereof, or to authorize or empower the Trustee to vote in respect of the claim of any
Holder of any Securities in any such proceeding. 

  
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 Section 7.05 Priorities. Any moneys or properties collected by the Trustee with
respect to a series of Securities under this Article VII shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such moneys or properties and, in the case of the distribution of such moneys or
properties on account of the Securities of any series, upon presentation of the Securities of such series, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid: 

First: To the payment of all amounts due to the Trustee and any predecessor trustee hereunder under Section 11.01(a). 

Second: Subject to Article XV, to the payment of the amounts then due and unpaid for principal of and any premium and interest
on the Outstanding Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Outstanding Securities for principal
and any premium and interest, respectively. 
 Any surplus then remaining shall be paid to the Company or as directed by a court of competent jurisdiction.

 Section 7.06 Control by Securityholders: Waiver of Past Defaults. The Holders of a majority in principal amount of the
Securities of any series at the time Outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee hereunder, or of exercising any trust or power hereby conferred upon the Trustee with respect
to the Securities of such series, provided, however, that, subject to the provisions of Sections 11.01 and 11.02, the Trustee shall have the right to decline to follow any such direction if the Trustee being advised by counsel
determines that the action so directed may not lawfully be taken or would be unduly prejudicial to Holders not joining in such direction or would involve the Trustee in personal liability. Prior to any declaration accelerating the Maturity of the
Securities of any series, the Holders of a majority in aggregate principal amount of such series of Securities at the time Outstanding may on behalf of the Holders of all of the Securities of such series waive any past Default or Event of Default
hereunder and its consequences except a Default in the payment of interest or any premium on or the principal of the Securities of such series. Upon any such waiver the Company, the Trustee and the Holders of the Securities of such series shall be
restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder
shall have been waived as permitted by this Section 7.06, said Default or Event of Default shall for all purposes of the Securities of such series and this Indenture be deemed to have been cured and to be not continuing. 

Section 7.07 Limitation on Suits. No Holder of any Security of any series shall have any right to institute any action, suit or
proceeding at law or in equity for the execution of any trust hereunder or for the appointment of a receiver or for any other remedy hereunder, in each case with respect to an Event of Default with respect to such series of Securities, unless such
Holder previously shall have given to the Trustee written notice of one or more of the Events of Default herein specified with respect to such series of Securities, and unless also the Holders of 25% in principal amount of the Securities of such
series then Outstanding shall have requested 

  
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the Trustee in writing to take action in respect of the matter complained of, and unless also there shall have been offered to the Trustee security and indemnity satisfactory to it against the
costs, expenses and liabilities to be incurred therein or thereby, and the Trustee, for 60 days after receipt of such notification, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding; and
such notification, request and offer of indemnity are hereby declared in every such case to be conditions precedent to any such action, suit or proceeding by any Holder of any Security of such series; it being understood and intended that no one or
more of the Holders of Securities of such series shall have any right in any manner whatsoever by his, her, its or their action to enforce any right hereunder, except in the manner herein provided, and that every action, suit or proceeding at law or
in equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of all Holders of the Outstanding Securities of such series; provided, however, that nothing in this Indenture or in the
Securities of such series shall affect or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on the Securities of such series to the respective Holders of such Securities
at the respective due dates in such Securities stated, or affect or impair the right, which is also absolute and unconditional, of such Holders to institute suit to enforce the payment thereof. 

Section 7.08 Undertaking for Costs. All parties to this Indenture and each Holder of any Security, by such Holder’s
acceptance thereof, shall be deemed to have agreed that any court may in its discretion require, in any action, suit or proceeding for the enforcement of any right or remedy under this Indenture, or in any action, suit or proceeding against the
Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such action, suit or proceeding of an undertaking to pay the costs of such action, suit or proceeding, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such action, suit or proceeding, having due regard to the merits and good faith of the claims or defenses made by such party litigant;
provided, however, that the provisions of this Section 7.08 shall not apply to any action, suit or proceeding instituted by the Trustee, to any action, suit or proceeding instituted by any one or more Holders of Securities holding
in the aggregate more than 10% in principal amount of the Securities of any series Outstanding, or to any action, suit or proceeding instituted by any Holder of Securities of any series for the enforcement of the payment of the principal of or
premium, if any, or the interest on, any of the Securities of such series, on or after the respective due dates expressed in such Securities. 

Section 7.09 Remedies Cumulative. No remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities of
any series is intended to be exclusive of any other remedy or remedies, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. No
delay or omission of the Trustee or of any Holder of the Securities of any series to exercise any right or power accruing upon any Default or Event of Default shall impair any such right or power or shall be construed to be a waiver of any such
Default or Event of Default or an acquiescence therein; and every power and remedy given by this Article VII to the Trustee and to the Holders of Securities of any series, respectively, may be exercised from time to time and as often as may be
deemed expedient by the Trustee or by the Holders of Securities of such series, as the case may be. In case the Trustee or any Holder of Securities of any series shall have proceeded to enforce any right under this Indenture and the proceedings for
the enforcement 

  
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thereof shall have been discontinued or abandoned because of waiver or for any other reason or shall have been adjudicated adversely to the Trustee or to such Holder of Securities, then and in
every such case the Company, the Trustee and the Holders of the Securities of such series shall severally and respectively be restored to their former positions and rights hereunder, and thereafter all rights, remedies and powers of the Trustee and
the Holders of the Securities of such series shall continue as though no such proceedings had been taken, except as to any matters so waived or adjudicated. 

ARTICLE VIII 

CONCERNING THE SECURITYHOLDERS 

Section 8.01 Evidence of Action of Securityholders. Whenever in this Indenture it is provided that the Holders of a specified
percentage or a majority in aggregate principal amount of the Securities or of any series of Securities may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other
action), the fact that at the time of taking any such action the Holders of such specified percentage or majority have joined therein may be evidenced by (a) any instrument or any number of instruments of similar tenor executed by
Securityholders in person, by an agent or by a proxy appointed in writing, including through an electronic system for tabulating consents operated by the Depositary for such series or otherwise (such action becoming effective, except as herein
otherwise expressly provided, when such instruments or evidence of electronic consents are delivered to the Trustee and, where it is hereby expressly required, to the Company), or (b) by the record of the Holders of Securities voting in favor
thereof at any meeting of Securityholders duly called and held in accordance with the provisions of Article IX, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Securityholders. 

Section 8.02 Proof of Execution or Holding of Securities. Proof of the execution of any instrument by a Securityholder or his, her
or its agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner: 

(a) The fact and date of the execution by any Person of any such instrument may be proved (i) by the certificate of any notary public or
other officer in any jurisdiction who, by the laws thereof, has power to take acknowledgments or proof of deeds to be recorded within such jurisdiction, that the Person who signed such instrument did acknowledge before such notary public or other
officer the execution thereof, or (ii) by the affidavit of a witness of such execution sworn to before any such notary or other officer. Where such execution is by a Person acting in other than his or her individual capacity, such certificate
or affidavit shall also constitute sufficient proof of his or her authority. 
 (b) The ownership of Securities of any series shall be proved
by the Register of such Securities or by a certificate of the Registrar for such series. 
 (c) The record of any Holders’ meeting shall
be proved in the manner provided in Section 9.06. 

  
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 (d) The Trustee may require such additional proof of any matter referred to in this
Section 8.02 as it shall deem appropriate or necessary, so long as the request is a reasonable one. 
 (e) If the Company shall solicit
from the Holders of Securities of any series any action, the Company may, at its option fix in advance a record date for the determination of Holders of Securities entitled to take such action, but the Company shall have no obligation to do so. Any
such record date shall be fixed at the Company’s discretion. If such a record date is fixed, such action may be sought or given before or after the record date, but only the Holders of Securities of record at the close of business on such
record date shall be deemed to be Holders of Securities for the purpose of determining whether Holders of the requisite proportion of Outstanding Securities of such series have authorized or agreed or consented to such action, and for that purpose
the Outstanding Securities of such series shall be computed as of such record date. 
 Section 8.03 Persons Deemed Owners. 

(a) The Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Security is registered as the
owner of such Security for the purpose of receiving payment of principal of and premium, if any, and (subject to Section 3.08) interest, if any, on, such Security and for all other purposes whatsoever, whether or not such Security be overdue,
and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. All payments made to any Holder, or upon his, her or its order, shall be valid, and, to the extent of the sum or sums paid,
effectual to satisfy and discharge the liability for moneys payable upon such Security. 
 (b) None of the Company, the Trustee, any Paying
Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests. 
 Section 8.04 Effect of Consents. After an amendment, supplement, waiver or
other action becomes effective as to any series of Securities, a consent to it by a Holder of such series of Securities is a continuing consent conclusive and binding upon such Holder and every subsequent Holder of the same Securities or portion
thereof, and of any Security issued upon the transfer thereof or in exchange therefor or in place thereof, even if notation of the consent is not made on any such Security. An amendment, supplement or waiver becomes effective in accordance with its
terms and thereafter binds every Holder. 
 ARTICLE IX 

SECURITYHOLDERS’ MEETINGS 

Section 9.01 Purposes of Meetings. A meeting of Securityholders of any or all series may be called at any time and from time to
time pursuant to the provisions of this Article IX for any of the following purposes: 

  
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 (a) to give any notice to the Company or to the Trustee, or to give any directions to the
Trustee, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Securityholders pursuant to any of the provisions of Article VIII; 

(b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article XI; 

(c) to consent to the execution of an Indenture or of indentures supplemental hereto pursuant to the provisions of Section 14.02; or 

(d) to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the
Securities of any one or more or all series, as the case may be, under any other provision of this Indenture or under applicable law. 

Section 9.02 Call of Meetings by Trustee. The Trustee may at any time call a meeting of all Securityholders of all series that may
be affected by the action proposed to be taken, to take any action specified in Section 9.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Securityholders of a series, setting forth
the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed to Holders of Securities of such series at their addresses as they shall appear on the Register of the Company. Such notice
shall be mailed not less than 20 nor more than 90 days prior to the date fixed for the meeting. 
 Section 9.03 Call of Meetings by
Company or Securityholders. In case at any time the Company or the Holders of at least 10% in aggregate principal amount of the Securities of a series (or of all series, as the case may be) then Outstanding that may be affected by the action
proposed to be taken, shall have requested the Trustee to call a meeting of Securityholders of such series (or of all series), by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee
shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or such Securityholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in
Section 9.01, by mailing notice thereof as provided in Section 9.02. 
 Section 9.04 Qualifications for Voting. To be
entitled to vote at any meeting of Securityholders, a Person shall (a) be a Holder of one or more Securities affected by the action proposed to be taken at the meeting or (b) be a Person appointed by an instrument in writing as proxy by a
Holder of one or more such Securities. The only Persons who shall be entitled to be present or to speak at any meeting of Securityholders shall be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee
and its counsel and any representatives of the Company and its counsel. 
 Section 9.05 Regulation of Meetings. 

(a) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Securityholders, in regard to proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other
evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem fit. 

  
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 (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Securityholders as provided in Section 9.03, in which case the Company or the Securityholders calling the meeting, as the case may be, shall in like manner appoint a temporary
chair. A permanent chairman and a permanent secretary of the meeting shall be elected by majority vote of the meeting. 
 (c) At any meeting
of Securityholders of a series, each Securityholder of such series of such Securityholder’s proxy shall be entitled to one vote for each $1,000 principal amount of Securities of such series Outstanding held or represented by him;
provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote other than by virtue of Securities of such series held by him or her or instruments in writing as aforesaid duly designating him or her as the Person to vote on behalf of other Securityholders. At any meeting of the Securityholders
duly called pursuant to the provisions of Section 9.02 or 9.03 the presence of Persons holding or representing Securities in an aggregate principal amount sufficient to take action upon the business for the transaction of which such meeting was
called shall be necessary to constitute a quorum, and any such meeting may be adjourned from time to time by a majority of those present, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice. 

Section 9.06 Voting. The vote upon any resolution submitted to any meeting of Securityholders of a series shall be by written
ballots on which shall be subscribed the signatures of the Holders of Securities of such series or of their representatives by proxy and the principal amounts of the Securities of such series held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast
at the meeting. A record in duplicate of the proceedings of each meeting of Securityholders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 9.02. The record shall show the principal
amounts of the Securities voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and
the other to the Trustee to be preserved by the Trustee. 
 Any record so signed and verified shall be conclusive evidence of the matters
therein stated. 
 Section 9.07 No Delay of Rights by Meeting. Nothing contained in this Article IX shall be deemed or construed
to authorize or permit, by reason of any call of a meeting of Securityholders of any series or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or
reserved to the Trustee or to the Securityholders of such series under any of the provisions of this Indenture or of the Securities of such series. 

  
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 ARTICLE X 

REPORTS BY THE COMPANY AND THE TRUSTEE AND SECURITYHOLDERS’ LISTS 

Section 10.01 Reports by Trustee. 

(a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by Section 313 (a) of the Trust Indenture Act, the Trustee shall, within sixty days after each February 15 following the date of the
initial issuance of Securities under this Indenture deliver to Holders a brief report, dated as of such February 15, which complies with the provisions of such Section 313(a). 

(b) The Trustee shall, at the time of the transmission to the Holders of Securities of any report pursuant to the provisions of this
Section 10.01, file a copy of such report with each stock exchange upon which the Securities are listed, if any, and also with the SEC in respect of a Security listed and registered on a national securities exchange, if any. The Company agrees
to notify the Trustee in writing when, as and if the Securities become listed on any stock exchange or any delisting thereof. 
 (c) The
Company will reimburse the Trustee for all expenses incurred in the preparation and transmission of any report pursuant to the provisions of this Section 10.01 and of Section 10.02. 

Section 10.02 Reports by the Company. The Company shall file with the Trustee and the SEC, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided in the Trust Indenture Act; provided that, unless available on EDGAR, any
such information, documents or reports required to be filed with the SEC pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 30 days after the same is filed with the SEC, provided, however,
that the Trustee shall not be required to determine whether such information, documents or reports are available on EDGAR. 
 Delivery of
such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates). Notwithstanding any provisions hereunder to the contrary, the foregoing
provisions of this Section 10.02 are subject, in their entirety, to the provisions of Section 7.01. 

  
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 Section 10.03 Securityholders’ Lists. The Company covenants and agrees that it
will furnish or cause to be furnished to the Trustee: 
 (a) semi-annually, within 15 days after each Record Date, but in any event not less
frequently than semi-annually, a list in such form as the Trustee may reasonably require of the names and addresses of the Holders of Securities to which such Record Date applies, as of such Record Date, and 

(b) at such other times as the Trustee may request in writing, within 30 days after receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time such list is furnished; 
 provided, however, that so long as
the Trustee shall be the Registrar, such lists shall not be required to be furnished. 
 ARTICLE XI 

CONCERNING THE TRUSTEE 

Section 11.01 Rights of Trustees: Compensation and Indemnity. The Trustee accepts the trusts created by this Indenture upon the
terms and conditions hereof, including the following, to all of which the parties hereto and the Holders from time to time of the Securities agree: 

(a) The Trustee shall be entitled to such compensation as the Company and the Trustee shall from time to time agree in writing for all services
rendered by it hereunder (including in any agent capacity in which it acts). The compensation of the Trustee shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust. The Company shall reimburse the
Trustee promptly upon its request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee (including the reasonable expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its own negligence or willful misconduct. 
 The Company also agrees to indemnify each of
the Trustee and any predecessor Trustee hereunder for, and to hold it harmless against, any and all loss, liability, damage, claim, or expense incurred without its own negligence or willful misconduct, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder and the performance of its duties (including in any agent capacity in which it acts), as well as the costs and expenses of defending itself against any claim (whether asserted by the
Company, a Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except those attributable to its negligence or willful misconduct. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have one separate counsel of its selection and the Company shall pay the reasonable fees and
expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. 

As security for the performance of the obligations of the Company under this Section 11.01(a), the Trustee shall have a lien upon all
property and funds held or collected by the Trustee as such, except funds held in trust by the Trustee to pay principal of and interest on any Securities. Notwithstanding any provisions of this Indenture to the contrary, the obligations of

  
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the Company to compensate and indemnify the Trustee under this Section 11.01(a) shall survive the resignation or removal of the Trustee, the termination of this Indenture and any
satisfaction and discharge under Article XII. When the Trustee incurs expenses or renders services after an Event of Default specified in clause (e) or (f) of Section 7.01 occurs, the expenses and compensation for the services are
intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or similar laws. 
 (b) The
Trustee may execute any of the trusts or powers hereof and perform any duty hereunder either directly or by its agents and attorneys and shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder. 
 (c) The Trustee shall not be responsible in any manner whatsoever for the correctness of the recitals herein or
in the Securities (except its certificates of authentication thereon) contained, all of which are made solely by the Company; and the Trustee shall not be responsible or accountable in any manner whatsoever for or with respect to the validity or
execution or sufficiency of this Indenture or of the Securities (except its certificates of authentication thereon), and the Trustee makes no representation with respect thereto, except that the Trustee represents that it is duly authorized to
execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the
qualifications set forth therein. The Trustee shall not be accountable for the use or application by the Company of any Securities, or the proceeds of any Securities, authenticated and delivered by the Trustee in conformity with the provisions of
this Indenture. 
 (d) The Trustee may consult with counsel of its selection, and, to the extent permitted by Section 11.02, any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Trustee hereunder in good faith and in accordance with such Opinion of Counsel. 

(e) The Trustee, to the extent permitted by Section 11.02, may conclusively rely upon the certificate of the Secretary or one of the
Assistant Secretaries of the Company as to the adoption of any Board Resolution or resolution of the stockholders of the Company, and any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by, and
whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee may conclusively rely upon, an Officer’s
Certificate of the Company (unless other evidence in respect thereof be herein specifically prescribed). 
 (f) Subject to
Section 11.04, the Trustee or any agent of the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the
Company with the same rights it would have had if it were not the Trustee or such agent. 

  
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 (g) Money held by the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company. 

(h) Any action taken by the Trustee pursuant to any provision hereof at the request or with the consent of any Person who at the time is the
Holder of any Security shall be conclusive and binding in respect of such Security upon all future Holders thereof or of any Security or Securities which may be issued for or in lieu thereof in whole or in part, whether or not such Security shall
have noted thereon the fact that such request or consent had been made or given. 
 (i) Subject to the provisions of Section 11.02, the
Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, debenture or other paper or document
reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties. 
 (j) Subject to the provisions
of Section 11.02, the Trustee shall not be under any obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders of the Securities, pursuant to any provision of this
Indenture, unless one or more of the Holders of the Securities shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred by it therein or thereby. 

(k) Subject to the provisions of Section 11.02, the Trustee shall not be liable for any action taken or omitted by it in good faith and
believed by it to be authorized or within its discretion or within the rights or powers conferred upon it by this Indenture. 
 (l) Subject
to the provisions of Section 11.02, the Trustee shall not be deemed to have knowledge or notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless the Holders of not less than
25% of the Outstanding Securities notify the Trustee thereof. 
 (m) Subject to the provisions of the first paragraph of Section 11.02,
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, direction, consent, order, bond, debenture, note, other evidence of
Indebtedness or other paper or document, but the Trustee, may, but shall not be required to, make further inquiry or investigation into such facts or matters as it may see fit. 

(n) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder. 
 (o) In no event shall the
Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action. 

  
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 (p) The Trustee shall not be required to give any bond or surety in respect of the performance of
its powers and duties hereunder. 
 (q) The Trustee may request that the Company deliver a certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture. 
 Section 11.02 Duties of
Trustee. 
 (a) If one or more of the Events of Default specified in Section 7.01 with respect to the Securities of any series shall
have happened, then, during the continuance thereof, the Trustee shall, with respect to such Securities, exercise such of the rights and powers vested in it by this Indenture, and shall 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. 
 (b) None of the provisions
of this Indenture shall be construed as relieving the Trustee from liability for its own negligent action, negligent failure to act, or its own willful misconduct, except that, anything in this Indenture contained to the contrary notwithstanding,

 (i) unless and until an Event of Default specified in Section 7.01 with respect to the Securities of any series shall
have happened which at the time is continuing, 
 (A) the Trustee undertakes to perform such duties and only such duties with
respect to the Securities of that series as are specifically set out in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee, whose duties and obligations shall be determined solely by the
express provisions of this Indenture; and 
 (B) the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, in the absence of bad faith on the part of the Trustee, upon certificates and opinions furnished to it pursuant to the express provisions of this Indenture; but in the case of any such certificates or
opinions which, by the provisions of this Indenture, are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture (but
need not confirm or investigate the accuracy of mathematical calculations or other facts, statements, opinions or conclusions stated therein); 

(ii) the Trustee shall not be liable to any Holder of Securities or to any other Person for any error of judgment made in good
faith by a Responsible Officer or Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and 

  
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 (iii) the Trustee shall not be liable to any Holder of Securities or to any other
Person with respect to any action taken or omitted to be taken by it in good faith, in accordance with the direction of Securityholders given as provided in Section 7.06, relating to the time, method and place of conducting any proceeding for
any remedy available to it or exercising any trust or power conferred upon it by this Indenture. 
 (c) None of the provisions of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise to incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 

(d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 11.02. 
 Section 11.03 Notice of
Defaults. Within 90 days after the occurrence thereof, and if known to the Trustee, the Trustee shall give to the Holders of the Securities of a series notice of each Default or Event of Default with respect to the Securities of such series
known to the Trustee, by transmitting such notice to Holders at their addresses as the same shall then appear on the Register of the Company, unless such Default shall have been cured or waived before the giving of such notice (the term
“Default” being hereby defined to be the events specified in Section 7.01, which are, or after notice or lapse of time or both would become, Events of Default as defined in said Section). Except in the case of a Default or Event of
Default in payment of the principal of, premium, if any, or interest on any of the Securities of such series when and as the same shall become payable, or to make any sinking fund payment as to Securities of the same series, the Trustee shall be
protected in withholding such notice, if and so long as a Responsible Officer or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Securities of such series.

 Section 11.04 Eligibility; Disqualification. 

(a) The Trustee shall at all times satisfy the requirements of TIA Section 310(a). The Trustee shall have a combined capital and surplus
of at least $50 million as set forth in its most recent published annual report of condition, and shall have a Corporate Trust Office. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 11.04, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 (b) The Trustee
shall comply with TIA Section 310(b); provided, however, that there shall be excluded from the operation of TIA Section 310(b)(i) any indenture or indentures under which other securities or certificates of interest or
participation in other securities of the Company are outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(i) are met. If the Trustee has or shall acquire a conflicting interest within the meaning of
Section 310(b) of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. If
Section 310(b) of the Trust Indenture Act is amended any time after the date of this Indenture to change the circumstances under which a Trustee shall be deemed to have a conflicting interest with respect to the Securities of any series or to
change any of the definitions in connection therewith, this Section 11.04 shall be automatically amended to incorporate such changes. 

  
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 Section 11.05 Registration and Notice; Removal. The Trustee, or any successor to it
hereafter appointed, may at any time resign and be discharged of the trusts hereby created with respect to any one or more or all series of Securities by giving to the Company notice in writing. Such resignation shall take effect upon the
appointment of a successor Trustee and the acceptance of such appointment by such successor Trustee. Any Trustee hereunder may be removed with respect to any series of Securities at any time by the filing with such Trustee and the delivery to the
Company of an instrument or instruments in writing signed by the Holders of a majority in principal amount of the Securities of such series then Outstanding, specifying such removal and the date when it shall become effective. 

If at any time: 
 (1) the Trustee
shall fail to comply with the provisions of TIA Section 310(b) after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since
the initial issuance of the Securities of such series), or 
 (2) the Trustee shall cease to be eligible under Section 11.04 and shall
fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since the initial issuance of the Securities of such
series), or 
 (3) the Trustee shall become incapable of acting or shall be adjudged a 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, 

then, in any such case, (i) the Company by written notice to the Trustee may remove the Trustee and appoint a successor Trustee with respect to all
Securities, or (ii) subject to TIA Section 315(e), any Securityholder who has been a bona fide Holder of a Security for at least six months (or, if it is a shorter period, the period since the initial issuance of the Securities of such
series) may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees. 

Upon its resignation or removal, any Trustee shall be entitled to the payment of reasonable compensation for the services rendered hereunder
by such Trustee and to the payment of all reasonable expenses incurred hereunder and all moneys then due to it hereunder. The Trustee’s rights to indemnification provided in Section 11.01(a) shall survive its resignation or removal. 

  
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 Section 11.06 Successor Trustee by Appointment. 

(a) In case at any time the Trustee shall resign, or shall be removed (unless the Trustee shall be removed as provided in
Section 11.04(b), in which event the vacancy shall be filled as provided in said subdivision), or shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or if a receiver of the Trustee or of its property shall be
appointed, or if 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 with respect to the Securities of one or more series, a successor Trustee
with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any series) may be appointed by the Holders of a majority in principal amount of the Securities of that or those series then Outstanding, by an instrument or instruments in writing signed in duplicate by such
Holders and filed, one original thereof with the Company and the other with the successor Trustee; but, until a successor Trustee shall have been so appointed by the Holders of Securities of that or those series as herein authorized, the Company,
or, in case all or substantially all the assets of the Company shall be in the possession of one or more custodians or receivers lawfully appointed, or of trustees in bankruptcy or reorganization proceedings (including a trustee or trustees
appointed under the provisions of the federal bankruptcy laws, as now or hereafter constituted), or of assignees for the benefit of creditors, such receivers, custodians, trustees or assignees, as the case may be, by an instrument in writing, shall
appoint a successor Trustee with respect to the Securities of such series. Subject to the provisions of Sections 11.04 and 11.05, upon the appointment as aforesaid of a successor Trustee with respect to the Securities of any series, the Trustee with
respect to the Securities of such series shall cease to be Trustee hereunder. After any such appointment other than by the Holders of Securities of that or those series, the Person making such appointment shall forthwith cause notice thereof to be
mailed to the Holders of Securities of such series at their addresses as the same shall then appear on the Register of the Company but any successor Trustee with respect to the Securities of such series so appointed shall, immediately and without
further act, be superseded by a successor Trustee appointed by the Holders of Securities of such series in the manner above prescribed, if such appointment be made prior to the expiration of one year from the date of the mailing of such notice by
the Company, or by such receivers, trustees or assignees. 
 (b) If any Trustee with respect to the Securities of one or more series shall
resign or be removed and a successor Trustee shall not have been appointed by the Company or by the Holders of the Securities of such series or, if any successor Trustee so appointed shall not have accepted its appointment within 30 days after such
appointment shall have been made, the resigning Trustee at the expense of the Company may apply to any court of competent jurisdiction for the appointment of a successor Trustee. If in any other case a successor Trustee shall not be appointed
pursuant to the foregoing provisions of this Section 11.06 within three months after such appointment might have been made hereunder, the Holder of any Security of the applicable series or any retiring Trustee at the expense of the Company may
apply to any court of competent jurisdiction to appoint a successor Trustee. Such court may thereupon, in any such case, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee. 

(c) Any successor Trustee appointed hereunder with respect to the Securities of one or more series shall execute, acknowledge and deliver to
its predecessor Trustee and to the Company, or to the receivers, trustees, assignees or court appointing it, as the case may be, an instrument accepting such appointment hereunder, and thereupon such successor Trustee,

  
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without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations with respect to such series of such predecessor
Trustee with like effect as if originally named as Trustee hereunder, and such predecessor Trustee, upon payment of its charges and disbursements then unpaid, shall thereupon become obligated to pay over, and such successor Trustee shall be entitled
to receive, all moneys and properties held by such predecessor Trustee as Trustee hereunder, subject nevertheless to its lien provided for in Section 11.01(a). Nevertheless, on the written request of the Company or of the successor Trustee or
of the Holders of at least 10% in principal amount of the Securities of such series then Outstanding, such predecessor Trustee, upon payment of its said charges and disbursements, shall execute and deliver an instrument transferring to such
successor Trustee upon the trusts herein expressed all the rights, powers and trusts of such predecessor Trustee and shall assign, transfer and deliver to the successor Trustee all moneys and properties held by such predecessor Trustee, subject
nevertheless to its lien provided for in Section 11.01(a); and, upon request of any such successor Trustee or the Company shall make, execute, acknowledge and deliver any and all instruments in writing for more fully and effectually vesting in
and confirming to such successor Trustee all such authority, rights, powers, trusts, immunities, duties and obligations. 

Section 11.07 Successor Trustee by Merger. Any Person into which the Trustee or any successor to it in the trusts created by this
Indenture shall be merged or converted, or any Person with which it or any successor to it shall be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee or any such successor to it shall be a party,
or any Person to which the Trustee or any successor to it shall sell or otherwise transfer all or substantially all of the corporate trust business of the Trustee, shall be the successor Trustee under this Indenture without the execution or filing
of any paper or any further act on the part of any of the parties hereto; provided that such Person shall be otherwise qualified and eligible under this Article. In case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture with respect to one or more series of Securities, any of such Securities shall have been authenticated but not delivered by the Trustee then in office, any successor to such Trustee may adopt the certificate of
authentication of any predecessor Trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the
name of any predecessor hereunder or in the name of the successor Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee
shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation. 
 Section 11.08 Right to Rely on Officer’s Certificate. Subject to
Section 11.02, and subject to the provisions of Section 16.01 with respect to the certificates required thereby, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a
matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the
Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate with respect thereto delivered to the Trustee, and such Officer’s Certificate, in the absence of negligence or willful misconduct on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof. 

  
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 Section 11.09 Appointment of Authenticating Agent. The Trustee may appoint an agent
(the “Authenticating Agent”) acceptable to the Company to authenticate the Securities, and the Trustee shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent
will serve. Unless limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by the
Authenticating Agent. Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. 

Each Authenticating Agent shall at all times be a corporation organized and doing business and in good standing under the laws of the United
States, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State
authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Article XI, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Article
XI, it shall resign immediately in the manner and with the effect specified in this Article XI. 
 Any corporation into which an
Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all
or substantially all the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible under this Article XI, without the execution or
filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
 An Authenticating Agent may resign at any
time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section 11.09, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent will serve. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section 11.09. 

  
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 The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation
for its services under this Section 11.09. 
 Section 11.10 Communications by Securityholders with Other Securityholders.
Holders of Securities may communicate pursuant to Section 312(b) of the Trust Indenture Act with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall
have the protection of Section 312(c) of the Trust Indenture Act with respect to such communications. 
 ARTICLE XII 

SATISFACTION AND DISCHARGE: DEFEASANCE 

Section 12.01 Applicability of Article. If, pursuant to Section 3.01, provision is made for the defeasance of Securities of a
series and if the Securities of such series are denominated and payable only in U.S. Dollars (except as provided pursuant to Section 3.01), then the provisions of this Article shall be applicable except as otherwise specified pursuant to
Section 3.01 for Securities of such series. Defeasance provisions, if any, for Securities denominated in a Foreign Currency may be specified pursuant to Section 3.01. 

Section 12.02 Satisfaction and Discharge of Indenture. This Indenture, with respect to the Securities of any series (if all series
issued under this Indenture are not to be affected), shall, upon Company Order, cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of such Securities herein expressly provided for and rights to
receive payments of principal of and premium, if any, and interest on such Securities) and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when, 

(a) either: 
 (i)
all Securities of such series theretofore authenticated and delivered (other than (A) Securities that have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 3.07 and (B) Securities for whose
payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 6.03) have been delivered to the Trustee for
cancellation; or 
 (ii) all Securities of such series not theretofore delivered to the Trustee for cancellation, 

(A) have become due and payable, or 

(B) will become due and payable at their Stated Maturity within one year, or 

(C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice by
the Trustee in the name, and at the expense, of the Company, and the Company, 

  
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and in the case of (A), (B) or (C) above, has deposited or caused to be deposited with the Trustee or Paying Agent as trust funds in trust for the purpose an amount in the Currency in
which such Securities are denominated (except as otherwise provided pursuant to Section 3.01) sufficient, in the opinion of an independent firm of certified public accountants, to pay and discharge the entire Indebtedness on such Securities for
principal and premium, if any, and interest to the date of such deposit (in the case of Securities that have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; provided, however, in the event a
petition for relief under federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, is filed with respect to the Company within 91 days after the deposit and the
Trustee is required to return the moneys then on deposit with the Trustee to the Company, the obligations of the Company under this Indenture with respect to such Securities shall not be deemed terminated or discharged; 

(b) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 

(c) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel each stating that all conditions precedent
herein provided for relating to the satisfaction and discharge of this Indenture with respect to such series have been complied with. Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee
under Section 11.01 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (a)(i) of this Section, the obligations of the Trustee under Section 12.07 and the last paragraph of Section 6.03(e)
shall survive. 
 Section 12.03 Defeasance upon Deposit of Moneys or U.S. Government Obligations. At the Company’s option,
either (a) the Company shall be deemed to have been Discharged (as defined below) from its obligations with respect to Securities of any series on the first day after the applicable conditions set forth below have been satisfied or (b) the
Company shall cease to be under any obligation to comply with any term, provision or condition set forth in Section 6.04 and Section 10.02 with respect to Securities of any series (and, if so specified pursuant to Section 3.01, any
other restrictive covenant added for the benefit of such series pursuant to Section 3.01) at any time after the applicable conditions set forth below have been satisfied (such action under clauses (a) or (b) of this paragraph in no
circumstance may be construed as an Event of Default under Section 7.01): 
 (a) The Company shall have deposited or caused to be
deposited irrevocably with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of the Securities of such series (i) money in an amount, or (ii) U.S. Government
Obligations (as defined below) that through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (iii) a
combination of (i) and (ii), sufficient to pay and discharge each installment of principal (including any mandatory sinking fund payments) of and premium, if any, and interest on, the Outstanding Securities of such series on the dates such
installments of interest or principal and premium are due; 

  
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 (b) No Default with respect to the Securities of such series shall have occurred and be
continuing on the date of such deposit (other than a Default resulting from the borrowing of funds and the grant of any related liens to be applied to such deposit); and 

(c) The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such series will not
recognize income, gain or loss for U.S. federal income tax purposes as a result of the Company’s exercise of its option under this Section and will be subject to federal income tax on the same amounts and in the same manner and at the same
times as would have been the case if such action had not been exercised and, in the case of the Securities of such series being Discharged accompanied by a ruling to that effect received from or published by the Internal Revenue Service. 

“Discharged” means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by, and
obligations under, the Securities of such series and to have satisfied all the obligations under this Indenture relating to the Securities of such series (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging
the same), except (A) the rights of Holders of Securities of such series to receive, from the trust fund described in clause (a) above, payment of the principal of and premium, if any, and interest on such Securities when such payments are
due, (B) the Company’s obligations with respect to Securities of such series under Sections 3.04, 3.06, 3.07, 6.02, 12.06 and 12.07 and (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder. 

“U.S. Government Obligations” means securities that are (i) direct obligations of the United States for the payment of which
its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States the timely of payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States, that, in either case under clauses (i) or (ii) are not callable or redeemable at the action of the issuer thereof, and shall also include a depositary receipt issued by a bank or trust company as
custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depositary receipt; provided that
(except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the
specific payment of interest on or principal of the U.S. Government Obligation evidenced by such depositary receipt. 
 Section 12.04
Repayment to Company. The Trustee and any Paying Agent shall promptly pay to the Company (or to its designee) upon Company Order any excess moneys or U.S. Government Obligations held by them at any time, including any such moneys or
obligations held by the Trustee under any escrow trust agreement entered into pursuant to Section 12.06. The provisions of the last paragraph of Section 6.03 shall apply to any money held by the Trustee or any Paying Agent under this
Article that remains unclaimed for two years after the Maturity of any series of Securities for which money or U.S. Government Obligations have been deposited pursuant to Section 12.03. 

Section 12.05 Indemnity for U.S. Government Obligations. The Company shall pay and shall indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the deposited U.S. Government Obligations or the principal or interest received on such U.S. Government Obligations. 

  
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 Section 12.06 Deposits to Be Held in Escrow. Any deposits with the Trustee referred
to in Section 12.03 above shall be irrevocable (except to the extent provided in Sections 12.04 and 12.07) and shall be made under the terms of an escrow trust agreement. If any Outstanding Securities of a series are to be redeemed prior to
their Stated Maturity, whether pursuant to any optional redemption provisions or in accordance with any mandatory or optional sinking fund requirement, the applicable escrow trust agreement shall provide therefor and the Company shall make such
arrangements as are satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company. The agreement shall provide that, upon satisfaction of any mandatory sinking fund payment
requirements, whether by deposit of moneys, application of proceeds of deposited U.S. Government Obligations or, if permitted, by delivery of Securities, the Trustee shall pay or deliver over to the Company as excess moneys pursuant to
Section 12.04 all funds or obligations then held under the agreement and allocable to the sinking fund payment requirements so satisfied. 

If Securities of a series with respect to which such deposits are made may be subject to later redemption at the option of the Company or
pursuant to optional sinking fund payments, the applicable escrow trust agreement may, at the option of the Company, provide therefor. In the case of an optional redemption in whole or in part, such agreement shall require the Company to deposit
with the Trustee on or before the date notice of redemption is given funds sufficient to pay the Redemption Price of the Securities to be redeemed together with all unpaid interest thereon to the Redemption Date. Upon such deposit of funds, the
Trustee shall pay or deliver over to the Company as excess funds pursuant to Section 12.04 all funds or obligations then held under such agreement and allocable to the Securities to be redeemed. In the case of exercise of optional sinking fund
payment rights by the Company, such agreement shall, at the option of the Company, provide that upon deposit by the Company with the Trustee of funds pursuant to such exercise the Trustee shall pay or deliver over to the Company as excess funds
pursuant to Section 12.04 all funds or obligations then held under such agreement for such series and allocable to the Securities to be redeemed. 

Section 12.07 Application of Trust Money. 

(a) Neither the Trustee nor any other Paying Agent shall be required to pay interest on any moneys deposited pursuant to the provisions of this
Indenture, except such as it shall agree with the Company in writing to pay thereon. Any moneys so deposited for the payment of the principal of, or premium, if any, or interest on the Securities of any series and remaining unclaimed for two years
after the date of the maturity of the Securities of such series or the date fixed for the redemption of all the Securities of such series at the time outstanding, as the case may be, shall be repaid by the Trustee or such other Paying Agent to the
Company upon its written request and thereafter, anything in this Indenture to the contrary notwithstanding, any rights of the Holders of Securities of such series in respect of which such moneys shall have been deposited shall be enforceable only
against the Company, and all liability of the Trustee or such other Paying Agent with respect to such moneys shall thereafter cease. 

  
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 (b) Subject to the provisions of the foregoing paragraph, any moneys which at any time shall be
deposited by the Company or on its behalf with the Trustee or any other Paying Agent for the purpose of paying the principal of, premium, if any, and interest on any of the Securities shall be and are hereby assigned, transferred and set over to the
Trustee or such other Paying Agent in trust for the respective Holders of the Securities for the purpose for which such moneys shall have been deposited; but such moneys need not be segregated from other funds except to the extent required by law.

 Section 12.08 Deposits of Non-U.S. Currencies. Notwithstanding the foregoing provisions of this Article, if the Securities of
any series are payable in a Currency other than U.S. Dollars, the Currency or the nature of the government obligations to be deposited with the Trustee under the foregoing provisions of this Article shall be as set forth in the Officer’s
Certificate or established in the supplemental indenture under which the Securities of such series are issued. 
 ARTICLE XIII 

IMMUNITY OF CERTAIN PERSONS 

Section 13.01 No Personal Liability. No recourse shall be had for the payment of the principal of, or the premium, if any, or
interest on, any Security or for any claim based thereon or otherwise in respect thereof or of the Indebtedness represented thereby, or upon any obligation, covenant or agreement of this Indenture, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitutional provision, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that this Indenture and the Securities are solely corporate obligations, and that no personal liability whatsoever shall attach to, or be incurred by,
any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, because of the incurring of the Indebtedness
hereby authorized or under or by reason of any of the obligations, covenants, promises or agreements contained in this Indenture or in any of the Securities, or to be implied herefrom or therefrom, and that all liability, if any, of that character
against every such incorporator, stockholder, officer and director is, by the acceptance of the Securities and as a condition of, and as part of the consideration for, the execution of this Indenture and the issue of the Securities expressly waived
and released. 
 ARTICLE XIV 

SUPPLEMENTAL INDENTURES 

Section 14.01 Without Consent of Securityholders. Except as otherwise provided as contemplated by Section 3.01 with respect
to any series of Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any one or more of or all the following purposes: 

  
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 (a) to add to the covenants and agreements of the Company, to be observed thereafter and during
the period, if any, in such supplemental indenture or indentures expressed, and to add Events of Default, in each case for the protection or benefit of the Holders of all or any series of the Securities (and if such covenants, agreements and Events
of Default are to be for the benefit of fewer than all series of Securities, stating that such covenants, agreements and Events of Default are expressly being included for the benefit of such series as shall be identified therein), or to surrender
any right or power herein conferred upon the Company; 
 (b) to delete or modify any Events of Default with respect to all or any series of
the Securities, the form and terms of which are being established pursuant to such supplemental indenture as permitted in Section 3.01 (and, if any such Event of Default is applicable to fewer than all such series of the Securities, specifying
the series to which such Event of Default is applicable), and to specify the rights and remedies of the Trustee and the Holders of such Securities in connection therewith; 

(c) to add to or change any of the provisions of this Indenture to provide, change or eliminate any restrictions on the payment of principal of
or premium, if any, on Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of any series in any material respect; 

(d) to change or eliminate any of the provisions of this Indenture; provided that any such change or
elimination shall become effective only when there is no Outstanding Security of any series created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision and as to which such supplemental indenture
would apply; 
 (e) to evidence the succession of another corporation to the Company, or successive successions, and the assumption by such
successor of the covenants and obligations of the Company contained in the Securities of one or more series and in this Indenture or any supplemental indenture; 

(f) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to one or more series of Securities
and to add to or change any of the provisions of this Indenture as shall be necessary for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 11.06(c); 

(g) to secure any series of Securities; 

(h) to evidence any changes to this Indenture pursuant to Sections 11.05, 11.06 or 11.07 hereof as permitted by the terms thereof; 

(i) to cure any ambiguity or to correct or supplement any provision contained herein or in any indenture supplemental hereto which may be
defective or inconsistent with any other provision contained herein or in any supplemental indenture or to conform the terms hereof, as amended and supplemented, that are applicable to the Securities of any series to the description of the terms of
such Securities in the prospectus supplement or other offering document applicable to such Securities at the time of initial sale thereof, as provided in an Officer’s Certificate; 

  
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 (j) to add to or change or eliminate any provision of this Indenture as shall be necessary or
desirable in accordance with any amendments to the Trust Indenture Act; 
 (k) to add guarantors or co-obligors with respect to any series of
Securities or to release guarantors from their guarantees of Securities in accordance with the terms of the applicable series of Securities; 

(l) to make any change in any series of Securities that does not adversely affect in any material respect the rights of the Holders of such
Securities; 
 (m) to provide for uncertificated securities in addition to certificated securities; 

(n) to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities; provided that any such action shall not adversely affect the interests of the Holders of Securities of such series or any other series of Securities; 

(o) to prohibit the authentication and delivery of additional series of Securities; or 

(p) to establish the form and terms of Securities of any series as permitted in Section 3.01, or to authorize the issuance of additional
Securities of a series previously authorized or to add to the conditions, limitations or restrictions on the authorized amount, terms or purposes of issue, authentication or delivery of the Securities of any series, as herein set forth, or other
conditions, limitations or restrictions thereafter to be observed. 
 Subject to the provisions of Section 14.03, the Trustee is
authorized to join with the Company in the execution of any such supplemental indenture, to make the further agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property or assets thereunder. 
 Any supplemental indenture authorized by the provisions of this Section 14.01 may be executed by the
Company and the Trustee without the consent of the Holders of any of the Securities at the time Outstanding. 
 Section 14.02 With
Consent of Securityholders: Limitations. 
 (a) With the consent of the Holders (evidenced as provided in Article VIII) of a majority in
aggregate principal amount of the Outstanding Securities of each series affected by such supplemental indenture voting separately, the Company and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or eliminating any provisions of this Indenture or of modifying in any manner the rights of the Holders of the Securities of such series to be affected; provided,
however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security of each such series affected thereby, 

  
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 (i) extend the Stated Maturity of the principal of, or any installment of
interest on, any Security, or reduce the principal amount thereof or the interest thereon or any premium payable upon redemption thereof, or extend the Stated Maturity of, or change the place of payment where, or the Currency in which the principal
of and premium, if any, or interest on such Security is denominated or payable, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 7.02, or impair the right to institute suit for the enforcement of any payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or materially adversely affect the
economic terms of any right to convert or exchange any Security as may be provided pursuant to Section 3.01; or 
 (ii)
reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain
provisions of this Indenture or certain Defaults hereunder and their consequences provided for in this Indenture; or 
 (iii)
modify any of the provisions of this Section, Section 7.06 or Section 6.06, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby; provided, however, that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in
this Section and Section 6.06, or the deletion of this proviso, in accordance with the requirements of Sections 11.06 and 14.01(f); or 

(iv) change the Company’s obligation to pay additional amounts; or 

(v) modify, without the written consent of the Trustee, the rights, duties or immunities of the Trustee. 

(b) A supplemental indenture that changes or eliminates any provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series. 
 (c) It shall not be necessary for the consent of the Securityholders under this
Section 14.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 

(d) The Company may set a record date for purposes of determining the identity of the Holders of each series of Securities entitled to give a
written consent or waive compliance by the Company as authorized or permitted by this Section. Such record date shall not be more than 30 days prior to the first solicitation of such consent or waiver or the date of the most recent list of Holders
furnished to the Trustee prior to such solicitation pursuant to Section 312 of the Trust Indenture Act. 

  
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 (e) Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of this Section 14.02, the Company shall mail a notice, setting forth in general terms the substance of such supplemental indenture, to the Holders of Securities at their addresses as the same shall then appear in the
Register of the Company. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. 

Section 14.03 Trustee Protected. Upon the written request of the Company, accompanied by the Officer’s Certificate and
Opinion of Counsel required by Section 16.01 and evidence reasonably satisfactory to the Trustee of consent of the Holders if the supplemental indenture is to be executed pursuant to Section 14.02, the Trustee shall join with the Company
in the execution of said supplemental indenture unless said supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into said supplemental indenture. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modification thereby of the trusts created by this Indenture, the Trustee
shall receive, and shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that such supplemental
indenture is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. 

Section 14.04 Effect of Execution of Supplemental Indenture. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article XIV, this Indenture shall be deemed to be modified and amended in accordance therewith and, except as herein otherwise expressly provided, the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the Holders of all of the Securities or of the Securities of any series affected, as the case may be, shall thereafter be determined, exercised and enforced hereunder subject in all respects to
such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 

Section 14.05 Notation on or Exchange of Securities. Securities of any series authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article may bear a notation in the form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new
Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for the Securities then Outstanding in equal aggregate principal amounts, and such exchange shall be made without cost to the Holders of the Securities. 

Section 14.06 Conformity with TIA. Every supplemental indenture executed pursuant to the provisions of this Article shall conform
to the requirements of the Trust Indenture Act as then in effect. 

  
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 ARTICLE XV 

SUBORDINATION OF SECURITIES 

Section 15.01 Agreement to Subordinate. In the event a series of Securities is designated as subordinated pursuant to
Section 3.01, and except as otherwise provided in a Company Order or in one or more indentures supplemental hereto, the Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Securities of such series by his,
her or its acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on each and all of the Securities of such series is hereby expressly subordinated, to the extent and in
the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness. In the event a series of Securities is not designated as subordinated pursuant to Section 3.01(s), this Article XV shall have no
effect upon the Securities. 
 Section 15.02 Distribution on Dissolution. Liquidation and Reorganization: Subrogation of
Securities. Subject to Section 15.01, upon any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings
or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights
conferred in this Indenture upon the Senior Indebtedness and the holders thereof with respect to the Securities and the holders thereof by a lawful plan of reorganization under applicable bankruptcy law): 

(a) the holders of all Senior Indebtedness shall be entitled to receive payment in full of the principal thereof (and premium, if any) and
interest due thereon before the Holders of the Securities are entitled to receive any payment upon the principal (or premium, if any) or interest, if any, on Indebtedness evidenced by the Securities; and 

(b) any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the
Holders of the Securities or the Trustee would be entitled except for the provisions of this Article XV shall be paid by the liquidation trustee or agent or other Person making such payment or distribution, whether a trustee in bankruptcy, a
receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior
Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the principal of (and premium, if any) and interest on the Senior Indebtedness held or represented by each, to the extent necessary to make
payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; and 

(c) in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities prohibited by the foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full, such payment or distribution shall be

  
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paid over, upon written notice to a Responsible Officer of the Trustee, to the holder of such Senior Indebtedness or his, her or its representative or representatives or to the trustee or
trustees under any indenture under which any instrument evidencing any of such Senior Indebtedness may have been issued, ratably as aforesaid, as calculated by the Company, for application to payment of all Senior Indebtedness remaining unpaid until
all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness. 

(d) Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall be subrogated to the rights of the holders
of Senior Indebtedness (to the extent that distributions otherwise payable to such holder have been applied to the payment of Senior Indebtedness) to receive payments or distributions of cash, property or securities of the Company applicable to
Senior Indebtedness until the principal of (and premium, if any) and interest, if any, on the Securities shall be paid in full and no such payments or distributions to the Holders of the Securities of cash, property or securities otherwise
distributable to the holders of Senior Indebtedness shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities be deemed to be a payment by the Company to or on account of the
Securities. It is understood that the provisions of this Article XV are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the
other hand. Nothing contained in this Article XV or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the
Securities, the obligation of the Company, which is unconditional and absolute, to pay to the Holders of the Securities the principal of (and premium, if any) and interest, if any, on the Securities as and when the same shall become due and payable
in accordance with their terms, or to affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or in the Securities prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article XV of the holders of Senior Indebtedness in respect of cash, property or
securities of the Company received upon the exercise of any such remedy. Upon any payment or distribution of assets of the Company referred to in this Article XV, the Trustee, subject to the provisions of Section 15.05, shall be entitled to
conclusively rely upon a certificate of the liquidating trustee or agent or other person making any distribution to the Trustee for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of Senior
Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereof and all other facts pertinent thereto or to this Article XV. 

Section 15.03 No Payment on Securities in Event of Default on Senior Indebtedness. Subject to Section 15.01, no payment by
the Company on account of principal (or premium, if any), sinking funds or interest, if any, on the Securities shall be made at anytime if: (i) a default on Senior Indebtedness exists that permits the holders of such Senior Indebtedness to
accelerate its maturity and (ii) the default is the subject of judicial proceedings or the Company has received notice of such default. The Company may resume payments on the Securities when full payment of amounts then due for principal
(premium, if any), sinking funds and interest on Senior Indebtedness has been made or duly provided for in money or money’s worth. 

  
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 In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section 15.03, such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of such Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, as calculated by the Company, but only to the extent that the
holders of such Senior Indebtedness (or their representative or representatives or a trustee) notify the Trustee in writing within 90 days of such payment of the amounts then due and owing on such Senior Indebtedness and only the amounts specified
in such notice to the Trustee shall be paid to the holders of such Senior Indebtedness. 
 Section 15.04 Payments on Securities
Permitted. Subject to Section 15.01, nothing contained in this Indenture or in any of the Securities shall (a) affect the obligation of the Company to make, or prevent the Company from making, at any time except as provided in Sections
15.02 and 15.03, payments of principal of (or premium, if any) or interest, if any, on the Securities or (b) prevent the application by the Trustee of any moneys or assets deposited with it hereunder to the payment of or on account of the
principal of (or premium, if any) or interest, if any, on the Securities, unless a Responsible Officer of the Trustee shall have received at its Corporate Trust Office written notice of any fact prohibiting the making of such payment from the
Company or from the holder of any Senior Indebtedness or from the trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee more than two Business Days
prior to the date fixed for such payment. 
 Section 15.05 Authorization of Securityholders to Trustee to Effect Subordination.
Subject to Section 15.01, each Holder of Securities by his acceptance thereof authorizes and directs the Trustee on his, her or its behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in
this Article XV and appoints the Trustee his attorney-in-fact for any and all such purposes. 
 Section 15.06 Notices to
Trustee. The Company shall give prompt written notice to a Responsible Officer of the Trustee of any fact known to the Company that would prohibit the making of any payment of monies or assets to or by the Trustee in respect of the Securities of
any series pursuant to the provisions of this Article XV. Subject to Section 15.01, notwithstanding the provisions of this Article XV or any other provisions of this Indenture, neither the Trustee nor any Paying Agent (other than the Company)
shall be charged with knowledge of the existence of any Senior Indebtedness or of any fact which would prohibit the making of any payment of moneys or assets to or by the Trustee or such Paying Agent, unless and until a Responsible Officer of the
Trustee or such Paying Agent shall have received (in the case of a Responsible Officer of the Trustee, at the Corporate Trust Office of the Trustee) written notice thereof from the Company or from the holder of any Senior Indebtedness or from the
trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee and, prior to the receipt of any such written notice, the Trustee shall be entitled in all
respects conclusively to presume that no such facts exist; provided, however, that if at least two Business Days prior to the date upon which by the terms hereof any such moneys or assets may become payable for any purpose (including,
without limitation, the payment of either the principal (or premium, if any) or interest, if any, on 

  
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any Security) a Responsible Officer of the Trustee shall not have received with respect to such moneys or assets the notice provided for in this Section 15.06, then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys or assets and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary
which may be received by it within two Business Days prior to such date. The Trustee shall be entitled to conclusively rely on the delivery to it of a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a
trustee on behalf of such holder) to establish that such a notice has been given by a holder of Senior Indebtedness or a trustee on behalf of any such holder. In the event that the Trustee determines in good faith that further evidence is required
with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article XV, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article XV and, if
such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. 

Section 15.07 Trustee as Holder of Senior Indebtedness. Subject to Section 15.01, the Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article XV in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of Senior Indebtedness and nothing in this Indenture shall be construed to deprive
the Trustee of any of its rights as such holder. Nothing in this Article XV shall apply to claims of, or payments to, the Trustee under or pursuant to Sections 7.05 or 11.01. 

Section 15.08 Modifications of Terms of Senior Indebtedness. Subject to Section 15.01, any renewal or extension of the time
of payment of any Senior Indebtedness or the exercise by the holders of Senior Indebtedness of any of their rights under any instrument creating or evidencing Senior Indebtedness, including, without limitation, the waiver of default thereunder, may
be made or done all without notice to or assent from the Holders of the Securities or the Trustee. No compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in respect of, any
liability or obligation under or in respect of, or of any of the terms, covenants or conditions of any indenture or other instrument under which any Senior Indebtedness is outstanding or of such Senior Indebtedness, whether or not such release is in
accordance with the provisions of any applicable document, shall in any way alter or affect any of the provisions of this Article XV or of the Securities relating to the subordination thereof. 

Section 15.09 Reliance on Judicial Order or Certificate of Liquidating Agent. Subject to Section 15.01, upon any payment or
distribution of assets of the Company referred to in this Article XV, the Trustee and the Holders of the Securities shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of
creditors, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of
Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article XV. 

  
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 Section 15.10 Satisfaction and Discharge; Defeasance and Covenant Defeasance. Subject
to Section 15.01, amounts and U.S. Government Obligations deposited in trust with the Trustee pursuant to and in accordance with Article XII and not, at the time of such deposit, prohibited to be deposited under Sections 15.02 or 15.03 shall
not be subject to this Article XV. 
 Section 15.11 Trustee Not Fiduciary for Holders of Senior Indebtedness. With respect to
the holders of Senior Indebtedness, the Trustee undertakes to perform or observe only such of its covenants and obligations as are specifically set forth in this Article XV, and no implied covenants or obligations with respect to the holders of
Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness. The Trustee shall not be liable to any such holder if it shall pay over or
distribute to or on behalf of Holders of Securities or the Company, or any other Person, moneys or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article XV or otherwise. 

ARTICLE XVI 

MISCELLANEOUS PROVISIONS 

Section 16.01 Certificates and Opinions as to Conditions Precedent. 

(a) Upon any request or application by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of
such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such document is specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be furnished. 
 (b) Each certificate or opinion provided for in
this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture (other than the certificates provided pursuant to Section 6.05 of this Indenture) shall include (i) a
statement that the Person giving such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such
certificate or opinion are based; (iii) a statement that, in the view or opinion of such Person, he or she has made such examination or investigation as is necessary to enable such Person to express an informed view or opinion as to whether or
not such covenant or condition has been complied with; and (iv) a statement as to whether or not, in the view or opinion of such Person, such condition or covenant has been complied with. 

  
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 (c) Any certificate, statement or opinion of an officer of the Company may be based, insofar as
it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the
matters upon which his or her certificate, statement or opinion is based are erroneous. Any certificate, statement or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate, statement or opinion of, or
representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the
certificate, statement or opinion or representations with respect to such matters are erroneous. 
 (d) Any certificate, statement or opinion
of an officer of the Company or of counsel to the Company may be based, insofar as it relates to accounting matters, upon a certificate or opinion of, or representations by, an accountant or firm of accountants, unless such officer or counsel, as
the case may be, knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the accounting matters upon which his or her certificate, statement or opinion may be based are erroneous.
Any certificate or opinion of any firm of independent registered public accountants filed with the Trustee shall contain a statement that such firm is independent. 

(e) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary
that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

(f) Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 Section 16.02 Trust
Indenture Act Controls. If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by, or another provision included in this Indenture which is required to be included in this Indenture by
any of the provisions of Sections 310 to 318, inclusive, of the Trust Indenture Act, such imposed duties or incorporated provision shall control. 

Section 16.03 Notices to the Company and Trustee. Any notice or demand authorized by this Indenture to be made upon, given or
furnished to, or filed with, the Company or the Trustee shall be sufficiently made, given, furnished or filed for all purposes if it shall be mailed, delivered or telefaxed to: 

(a) the Company, at 1345 Avenue of the Americas, New York, New York 10105, Attention: Brian C. Sigman, Chief Financial Officer, Facsimile No.:
(212) 798-6100 or at such other address or facsimile number as may have been furnished in writing to the Trustee by the Company. 

  
 70 

 (b) the Trustee, at the Corporate Trust Office of the Trustee, Attention: Corporate Trust
Services-Administrator for Newcastle Investment Corp. 
 Any such notice, demand or other document shall be in the English language. 

Section 16.04 Notices to Securityholders; Waiver. Any notice required or permitted to be given to Securityholders shall be
sufficiently given (unless otherwise herein expressly provided), 
 (a) if to Holders, if given in writing by first class mail, postage
prepaid, to such Holders at their addresses as the same shall appear on the Register of the Company; provided, that in the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by
mail, then such notification as shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder; or 

(b) If a series of notes has been issued in global form through DTC as Depositary, notice may be provided by delivery of such notice to DTC for
posting through its “Legal Notice Service” (LENS) or a successor system thereof. 
 Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in reliance on such waiver. In any case where notice to Holders is given by mail; neither the failure to mail such notice nor any defect in any notice so mailed to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders, and any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given. In any case where notice to Holders is given by
publication, any defect in any notice so published as to any particular Holder shall not affect the sufficiency of such notice with respect to other Holders, and any notice that is published in the manner herein provided shall be conclusively
presumed to have been duly given. 
 Section 16.05 Legal Holiday. Unless otherwise specified pursuant to Section 3.01, in
any case where any Interest Payment Date, Redemption Date or Maturity of any Security of any series shall not be a Business Day at any Place of Payment for the Securities of that series, then payment of principal and premium, if any, or interest
need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on such Interest Payment Date, Redemption Date or Maturity and no interest
shall accrue on such payment for the period from and after such Interest Payment Date, Redemption Date or Maturity, as the case may be, to such Business Day if such payment is made or duly provided for on such Business Day. 

Section 16.06 Effects of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 
 Section 16.07 Successors and Assigns. All covenants and
agreements in this Indenture by the parties hereto shall bind their respective successors and assigns and inure to the benefit of their permitted successors and assigns, whether so expressed or not. 

  
 71 

 Section 16.08 Separability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 16.09 Benefits of Indenture. Nothing in this Indenture expressed and nothing that may be implied from any of the
provisions hereof is intended, or shall be construed, to confer upon, or to give to, any Person or corporation other than the parties hereto and their successors and the Holders of the Securities any benefit or any right, remedy or claim under or by
reason of this Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all covenants, conditions, stipulations, promises and agreements in this Indenture contained shall be for the sole and exclusive benefit of the
parties hereto and their successors and of the Holders of the Securities. 
 Section 16.10 Counterparts Originals. This
Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Indenture and
of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto
transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 
 Section 16.11 Governing Law:
Waiver of Trial by Jury. This Indenture and the Securities shall be deemed to be contracts made under the law of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of said State. 

EACH PARTY HERETO, AND EACH HOLDER OF A SECURITY BY ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE. 

Section 16.12 Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted
practices in the banking industry to resume performance as soon as practicable under the circumstances. 
 Section 16.13 U.S.A.
Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to
obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as
it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act. 

  
 72 

 IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date
first written above. 
  

			
	 NEWCASTLE INVESTMENT CORP.,
 as
Issuer

		
	By:		  

			Name:
			Title:
	
	 U.S. BANK, NATIONAL ASSOCIATION,
 as
Trustee

		
	By:		  

			Name:
			Title:

  
 73 

 EXHIBIT A 

[FORM OF FACE OF SECURITY] 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER
AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE [DEPOSITARY]1 TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF [NOMINEE OF DEPOSITARY]2. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF [DEPOSITARY] (AND ANY PAYMENT HEREON IS MADE TO [NOMINEE OF DEPOSITARY] OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF [DEPOSITARY]), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, [NOMINEE OF DEPOSITARY], HAS AN INTEREST HEREIN. 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY,
OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

 
  

	1 	Typically DTC. 

	2 	Typically Cede & Co. 

  
 74 

 CUSIP No. 

Newcastle Investment Corp. 

NOTES DUE 20 
  

			
	No.		$
			 As revised by the
 Schedule of Increases

or Decreases in
 Global Security

attached hereto

 Interest. Newcastle Investment Corp., a Maryland corporation (herein called the “Company”,
which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to     or registered assigns, the principal sum of
        million dollars ($         ), as revised by the Schedule of Increases or Decreases in Global Security attached hereto, on     , 20 and to pay
interest thereon from     , 20 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on and     in each year, commencing
    , 20 at the rate of     % per annum, until the principal hereof is paid or made available for payment. 

Method of Payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such interest, which shall be or
        , as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record
Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice thereof having been given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, all as more fully provided in said Indenture. Payment of the principal of (and premium, if any) and any such interest
on this Security will be made at the Corporate Trust Office in U.S. Dollars. 
 Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

Authentication. Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by
manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 75 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated:                     ,
20     
  

			
	NEWCASTLE INVESTMENT CORP.
		
	By:		  

			Name:
			Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

							
	Date of authentication:				 U.S. Bank, National Association,
 as
Trustee

				
					By:		  

							Authorized Signatory

  
 76 

 [FORM OF REVERSE OF SECURITY] 

Indenture. This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as of             , 20     , [as supplemented by a Supplemental Indenture dated , 20 ] (as so
supplemented, herein called the “Indenture”), between the Company and U.S. Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $         . 

Optional Redemption. The Securities of this series are subject to redemption at the Company’s option, at any time and from time to
time, in whole or in part, at a Redemption Price equal to        . 
 For purposes of
determining the optional redemption price, the following definitions are applicable: 
 Notice of any redemption will be mailed at least 30
days but not more than 60 days before the Redemption Date (unless a shorter period shall be satisfactory to the Trustee) to each registered Holder of the Securities to be redeemed. Unless the Company defaults in payment of the redemption price, on
and after the Redemption Date, interest will cease to accrue on the Securities or portions of the Securities called for redemption. If fewer than all of the Securities are to be redeemed, the Trustee will select, not more than
            days prior to the Redemption Date, the particular Securities or portions thereof for redemption from the outstanding Securities not previously called by such method as the
Trustee deems fair and appropriate. 
 Except as set forth above, the Securities will not be redeemable by the Company prior to maturity
[and will not be entitled to the benefit of any sinking fund]. 
 Defaults and Remedies. If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

Amendment, Modification and Waiver. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. 

  
 77 

 
Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

Restrictive Covenants. The Indenture does not limit unsecured debt of the Company or any of its Subsidiaries. 

Denominations, Transfer and Exchange. The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and in integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of
Securities of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 As provided in
the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the Registrar accompanied by a written
request for transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 No service charge
shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Persons Deemed Owners. Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary. 
 Miscellaneous. The Indenture and this Security shall be governed by and construed in accordance
with the laws of the State of New York, without regard to the conflicts of law rules of said State. 
 All terms used in this
Security and not defined herein shall have the meanings assigned to them in the Indenture. 

  
 78 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 

 

									
	 Date of Exchange
	  	Amount of
increase in
Principal
Amount of this
Global Security	  	Amount of
decrease in
Principal
Amount of this
Global Security	  	Principal
Amount of this
Global Security
following each
decrease or
increase	  	Signature of
authorized
signatory of
Trustee
		  		  		  		  	
		  	  
	  	  
	  	  
	  	  

  
 79

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