Document:

Unassociated Document

Exhibit 10.5

 

 

	 

 

GS MORTGAGE SECURITIES CORPORATION II,

 

PURCHASER

 

and

 

REDWOOD COMMERCIAL MORTGAGE CORPORATION,

 

SELLER

 

and

 

REDWOOD TRUST, INC.

 

MORTGAGE LOAN PURCHASE AGREEMENT

 

Dated as of April 1, 2014

 

Series 2014-GC20

	 

  

  

  

 

This Mortgage Loan Purchase Agreement (“Agreement”), dated as of April 1, 2014, is between GS Mortgage Securities Corporation II, a Delaware corporation, as purchaser (the “Purchaser”), and Redwood Commercial Mortgage Corporation, a Delaware corporation, as seller (the “Seller”), and Redwood Trust, Inc. (“RTI”).

 

Capitalized terms used in this Agreement not defined herein shall have the meanings ascribed to them in the Pooling and Servicing Agreement, dated as of April 1, 2014 (the “Pooling and Servicing Agreement”), among the Purchaser, as depositor, KeyBank National Association, as master servicer (in such capacity, the “Master Servicer”), LNR Partners, LLC, as special servicer (the “Special Servicer”), Trimont Real Estate Advisors, Inc., as operating advisor, Wells Fargo Bank, National Association, as certificate administrator (in such capacity, the “Certificate Administrator”), and as trustee (in such capacity, the “Trustee”), pursuant to which the Purchaser will transfer the Mortgage Loans (as defined herein), together with certain other mortgage loans, to a trust fund and certificates representing ownership interests in the Mortgage Loans, together with the other mortgage loans, will be issued by the trust fund (the “Trust Fund”).  In exchange for the Mortgage Loans and the other mortgage loans, the Trust Fund will issue to or at the direction of the Depositor certificates to be known as GS Mortgage Securities Trust 2014-GC20, Commercial Mortgage Pass-Through Certificates, Series 2014-GC20 (collectively, the “Certificates”).  For purposes of this Agreement, “Mortgage Loans” refers to the mortgage loans listed on Exhibit A and “Mortgaged Properties” refers to the properties securing such Mortgage Loans.

 

The Purchaser and the Seller wish to prescribe the manner of sale of the Mortgage Loans from the Seller to the Purchaser and in consideration of the premises and the mutual agreements hereinafter set forth, agree as follows:

 

SECTION 1     Sale and Conveyance of Mortgages; Possession of Mortgage File.  The Seller does hereby sell, transfer, assign, set over and convey to the Purchaser, without recourse (except as otherwise specifically set forth herein), (subject to the rights of the holder of interests in the River Oaks Companion Loan) all of its right, title and interest in and to the Mortgage Loans identified on Exhibit A to this Agreement (the “Mortgage Loan Schedule”) including all interest and principal received on or with respect to the Mortgage Loans after the Cut-Off Date (and, in any event, excluding payments of principal and interest first due on the Mortgage Loans on or before the Cut-Off Date).  Upon the sale of the Mortgage Loans, the ownership of each related Note, the Seller’s interest in the related Mortgage represented by the Note and the other contents of the related Mortgage File (subject to the rights of the holders of interests in the River Oaks Companion Loan) will be vested in the Purchaser and immediately thereafter the Trustee, and the ownership of records and documents with respect to each Mortgage Loan (other than those to be held by the holder of the River Oaks Companion Loan) prepared by or which come into the possession of the Seller shall  (subject to the rights of the holder the River Oaks Companion Loan) immediately vest in the Purchaser and immediately thereafter the Trustee.  In connection with the transfer of the River Oaks Mortgage Loan pursuant to this Section 1, the Seller does hereby assign all of its rights, title and interest (solely in its capacity as the holder of the River Oaks Mortgage Loan) in, to and under the related Co-Lender Agreement (it being understood and agreed that the Seller does not assign any right, title or interest that it may have thereunder in its capacity as the River Oaks Companion Loan Holder, if applicable). The Purchaser will sell certain of the Certificates (the “Public Certificates”) to the 

 

  

  

  

 

underwriters (the “Underwriters”) specified in the Underwriting Agreement, dated as of March 27, 2014 (the “Underwriting Agreement”), between the Purchaser and the Underwriters, and the Purchaser will sell certain of the Certificates (the “Private Certificates”) to the initial purchasers (the “Initial Purchasers” and, collectively with the Underwriters, the “Dealers”) specified in the Purchase Agreement, dated as of March 27, 2014 (the “Certificate Purchase Agreement”), between the Purchaser and Initial Purchasers.

 

The sale and conveyance of the Mortgage Loans is being conducted on an arms-length basis and upon commercially reasonable terms.  As consideration for the Mortgage Loans, the Purchaser shall pay, by wire transfer of immediately available funds, to the Seller or at the Seller’s direction $72,594,309.40, plus accrued interest on the Mortgage Loans from and including April 1, 2014 to but excluding the Closing Date (but subject to certain post-settlement adjustment for expenses incurred by the Underwriters and the Initial Purchasers on behalf of the Depositor and for which the Seller is specifically responsible).

 

The purchase and sale of the Mortgage Loans shall take place on the Closing Date.

 

SECTION 2     Books and Records; Certain Funds Received After the Cut-Off Date.  From and after the sale of the Mortgage Loans to the Purchaser, record title to each Mortgage and each Note shall be transferred to the Trustee subject to and in accordance with this Agreement.  Any funds due after the Cut-Off Date in connection with a Mortgage Loan received by the Seller shall be held in trust on behalf of the Trustee (for the benefit of the Certificateholders) as the owner of such Mortgage Loan and shall be transferred promptly to the Certificate Administrator.  All scheduled payments of principal and interest due on or before the Cut-Off Date but collected after the Cut-Off Date, and all recoveries and payments of principal and interest collected on or before the Cut-Off Date (only in respect of principal and interest on the Mortgage Loans due on or before the Cut-Off Date and principal prepayments thereon), shall belong to, and shall be promptly remitted to, the Seller.

 

The transfer of each Mortgage Loan shall be reflected on the Seller’s balance sheets and other financial statements as the sale of such Mortgage Loan by the Seller to the Purchaser.  The Seller intends to treat the transfer of each Mortgage Loan to the Purchaser as a sale for tax purposes.  Following the transfer of the Mortgage Loans by the Seller to the Purchaser, the Seller shall not take any actions inconsistent with the ownership of the Mortgage Loans by the Purchaser and its assignees.

 

The transfer of each Mortgage Loan shall be reflected on the Purchaser’s balance sheets and other financial statements as the purchase of such Mortgage Loan by the Purchaser from the Seller.  The Purchaser intends to treat the transfer of each Mortgage Loan from the Seller as a purchase for tax purposes.  The Purchaser shall be responsible for maintaining, and shall maintain, a set of records for each Mortgage Loan which shall be clearly marked to reflect the transfer of ownership of each Mortgage Loan by the Seller to the Purchaser pursuant to this Agreement.

 

SECTION 3     Delivery of Mortgage Loan Documents; Additional Costs and Expenses.  (a)  The Purchaser hereby directs the Seller, and the Seller hereby agrees, such 

 

  

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agreement effective upon the transfer of the Mortgage Loans contemplated herein, to deliver or cause to be delivered to the Custodian (on behalf of the Trustee), the Master Servicer and the Special Servicer, respectively, on the dates set forth in Section 2.01 of the Pooling and Servicing Agreement, all documents, instruments and agreements required to be delivered by the Purchaser, or contemplated to be delivered by the Seller (whether at the direction of the Purchaser or otherwise), to the Custodian, the Master Servicer and the Special Servicer, as applicable, with respect to the Mortgage Loans under Section 2.01 of the Pooling and Servicing Agreement, and meeting all the requirements of such Section 2.01 of the Pooling and Servicing Agreement; provided that the Seller shall not be required to deliver any draft documents, privileged communications, credit underwriting, due diligence analyses or data or internal worksheets, memoranda, communications or evaluations.

 

(b)    The Seller shall deliver to and deposit (or cause to be delivered to and deposited) with the Master Servicer within five (5) Business Days after the Closing Date a copy of the Mortgage File and documents and records not otherwise required to be contained in the Mortgage File that (i) relate to the origination and/or servicing and administration of the Mortgage Loans and the River Oaks Companion Loan, (ii) are reasonably necessary for the ongoing administration and/or servicing of the Mortgage Loans (including any asset summaries related to the Mortgage Loans that were delivered to the Rating Agencies in connection with the rating of the Certificates) and the River Oaks Companion Loan or for evidencing or enforcing any of the rights of the holder of the Mortgage Loans and the River Oaks Companion Loan or holders of interests therein and (iii) are in the possession or under the control of the Seller, together with (x) all unapplied Escrow Payments and reserve funds in the possession or under control of the Seller that relate to the Mortgage Loans and the River Oaks Companion Loan and (y) a statement indicating which Escrow Payments and reserve funds are allocable to each Mortgage Loan or to the River Oaks Companion Loan, provided that copies of any document in the Mortgage File and any other document, record or item referred to above in this sentence that constitutes a Designated Servicing Document shall be delivered to the Master Servicer on or before the Closing Date; provided that the Seller shall not be required to deliver any draft documents, privileged or other communications, credit underwriting, due diligence analyses or data or internal worksheets, memoranda, communications or evaluations.

 

SECTION 4     Treatment as a Security Agreement.  Pursuant to Section 1 hereof, the Seller has conveyed to the Purchaser all of its right, title and interest in and to the Mortgage Loans.  The parties intend that such conveyance of the Seller’s right, title and interest in and to the Mortgage Loans pursuant to this Agreement shall constitute a purchase and sale and not a loan.  If such conveyance is deemed to be a pledge and not a sale, then the parties also intend and agree that the Seller shall be deemed to have granted, and in such event does hereby grant, to the Purchaser, a first priority security interest in all of its right, title and interest in, to and under the Mortgage Loans, all payments of principal or interest on such Mortgage Loans due after the Cut-Off Date, all other payments made in respect of such Mortgage Loans after the Cut-Off Date (and, in any event, excluding scheduled payments of principal and interest due on or before the Cut-Off Date) and all proceeds thereof, and that this Agreement shall constitute a security agreement under applicable law.  If such conveyance is deemed to be a pledge and not a sale, the Seller consents to the Purchaser hypothecating and transferring such security interest in favor of the Trustee and transferring the obligation secured thereby to the Trustee.

 

  

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SECTION 5     Covenants of the Seller.  The Seller covenants with the Purchaser as follows:

 

(a)     it shall cause Anderson McCoy & Orta, P.C. to record and file in the appropriate public recording office for real property records or UCC financing statements, as appropriate (or, with respect to any assignments that the Custodian has agreed to record or file pursuant to the Pooling and Servicing Agreement, deliver to the Custodian for such purpose and cause the Custodian to record and file), the assignments of assignment of leases, rents and profits and the assignments of Mortgage and each related UCC-3 financing statement referred to in the definition of Mortgage File from the Seller to the Trustee as and to the extent contemplated under Section 2.01(c) of the Pooling and Servicing Agreement.  All out of pocket costs and expenses relating to the recordation or filing of such assignments, assignments of Mortgage and financing statements shall be paid by the Seller.  If any such document or instrument is lost or returned unrecorded or unfiled, as the case may be, because of a defect therein, then the Seller shall prepare or cause the preparation of a substitute therefor or cure such defect or cause such defect to be cured, as the case may be, and the Seller shall record or file, or cause the recording or filing of, such substitute or corrected document or instrument or, with respect to any assignments that the Custodian has agreed to record or file pursuant to the Pooling and Servicing Agreement, deliver such substitute or corrected document or instrument to the Custodian (or, if the Mortgage Loan is then no longer subject to the Pooling and Servicing Agreement, the then holder of such Mortgage Loan);

 

(b)    as to each Mortgage Loan, if the Seller cannot deliver or cause to be delivered the documents and/or instruments referred to in clauses (2), (3) and (6) (if recorded) and (15) of the definition of “Mortgage File” in the Pooling and Servicing Agreement solely because of a delay caused by the public recording or filing office where such document or instrument has been delivered for recordation or filing, as applicable, it shall forward to the Custodian a copy of the original certified by the Seller to be a true and complete copy of the original thereof submitted for recording.  The Seller shall cause each assignment referred to in Section (5)(a) above that is recorded and the file copy of each UCC-3 assignment referred to in Section (5)(a) above to reflect that it should be returned by the public recording or filing office to the Custodian or its agent following recording (or, alternatively, to the Seller or its designee, in which case the Seller shall deliver or cause the delivery of the recorded original to the Custodian promptly following receipt); provided that, in those instances where the public recording office retains the original assignment of Mortgage or assignment of Assignment of Leases, the Custodian shall obtain therefrom a certified copy of the recorded original.  On a monthly basis, at the expense of the Seller, the Custodian shall forward to the Master Servicer a copy of each of the aforementioned assignments following the Custodian’s receipt thereof;

 

(c)     it shall take any action reasonably required by the Purchaser, the Certificate Administrator, the Trustee or the Master Servicer in order to assist and facilitate the transfer of the servicing of the Mortgage Loans to the Master Servicer, including effectuating the transfer of any letters of credit with respect to any Mortgage Loan to the Master Servicer on behalf of the Trustee for the benefit of Certificateholders and the River Oaks Companion Loan Holder.  Prior to the date that a letter of credit with respect to any Mortgage Loan is transferred to the Master Servicer, the Seller will cooperate with the reasonable requests of the Master 

 

  

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Servicer or Special Servicer, as applicable, in connection with effectuating a draw under such letter of credit as required under the terms of the related Loan Documents;

 

(d)    the Seller shall provide the Master Servicer the initial data with respect to each Mortgage Loan for the CREFC Financial File and the CREFC Loan Periodic Update File that are required to be prepared by the Master Servicer pursuant to the Pooling and Servicing Agreement and the Supplemental Servicer Schedule;

 

(e)     if (during the period of time that the Underwriters are required, under applicable law, to deliver a prospectus related to the Public Certificates in connection with sales of the Public Certificates by an Underwriter or a dealer) the Seller has obtained actual knowledge of undisclosed or corrected information related to an event that occurred prior to the Closing Date, which event causes there to be an untrue statement of a material fact with respect to the Seller Information in the Prospectus Supplement dated March 31, 2014 relating to the Public Certificates, the annexes and exhibits thereto and the DVD delivered therewith, or the Offering Circular dated March 28, 2014 relating to the Private Certificates, the annexes and exhibits thereto and the DVD delivered therewith (collectively, the “Offering Documents”), or causes there to be an omission to state therein a material fact with respect to the Seller Information required to be stated therein or necessary to make the statements therein with respect to the Seller Information, in the light of the circumstances under which they were made, not misleading, then the Seller shall promptly notify the Dealers and the Depositor. If as a result of any such event the Dealers’ legal counsel determines that it is necessary to amend or supplement the Offering Documents in order to correct the untrue statement, or to make the statements therein, in the light of the circumstances when the Offering Documents are delivered to a purchaser, not misleading, or to make the Offering Documents in compliance with applicable law, the Seller shall (to the extent that such amendment or supplement solely relates to the Seller Information) at the expense of the Seller, do all things reasonably necessary to assist the Depositor to prepare and furnish to the Dealers, such amendments or supplements to the Offering Documents as may be necessary so that the Seller Information in the Offering Documents, as so amended or supplemented, will not contain an untrue statement, will not, in the light of the circumstances when the Offering Documents are delivered to a purchaser, be misleading and will comply with applicable law.  (All terms under this clause (e) and not otherwise defined in this Agreement shall have the meanings set forth in the Indemnification Agreement, dated as of March 27, 2014, among the Underwriters, the Initial Purchasers, the Seller and the Purchaser (the “Indemnification Agreement” and, together with this Agreement, the “Operative Documents”)); and

 

(f)     for so long as the Trust Fund (or with respect to the River Oaks Companion Loan, if such Companion Loan is deposited into another securitization, the trust fund under such other securitization) is subject to the reporting requirements of the Exchange Act, the Seller shall provide the Depositor (or with respect to the River Oaks Companion Loan if such Companion Loan (or a portion thereof) is deposited into another securitization, the depositor of such securitization) and the Certificate Administrator with any Additional Form 10-D Disclosure, any Additional Form 10-K Disclosure and any Form 8-K Disclosure Information indicated on Exhibit U, Exhibit V and Exhibit Z to the Pooling and Servicing Agreement, to the extent contemplated to be provided by the Seller, within the time periods set forth in the Pooling and Servicing Agreement; provided that, in connection with providing Additional Form 10-K Disclosure and the Seller’s reporting obligations under Item 1119 of Regulation AB, upon 

 

  

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reasonable request by the Seller, the Purchaser shall provide the Seller with a list of all parties to the Pooling and Servicing Agreement and any other Servicing Function Participant.

 

SECTION 6  Representations and Warranties.

 

(a)    Each of the Seller and RTI represents and warrants to the Purchaser, solely as to itself, in each case as of the date hereof and as of the Closing Date that:

 

(i)    The Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware and RTI is a corporation and in good standing under the laws of the State of Maryland, and Seller has full power and authority to own its assets and conduct its business, is duly qualified as a foreign organization in good standing in all jurisdictions to the extent such qualification is necessary to hold and sell the Mortgage Loans or otherwise comply with its obligations under this Agreement except where the failure to be so qualified would not have a material adverse effect on its ability to perform its obligations hereunder, and each of the Seller and RTI has taken all necessary action to authorize the execution and delivery of, and performance under, the Operative Documents and has duly executed and delivered each Operative Document, and has the power and authority to execute, deliver and perform under each Operative Document and all the transactions contemplated hereby and thereby, including, but not limited to, the power and authority to sell, assign, transfer, set over and convey the Mortgage Loans in accordance with this Agreement;

 

(ii)    Assuming the due authorization, execution and delivery of this Agreement by the Purchaser, this Agreement will constitute a legal, valid and binding obligation of the Seller and RTI, enforceable against the Seller and RTI in accordance with its terms, except as such enforcement may be limited by (A) bankruptcy, insolvency, reorganization, moratorium, liquidation or other similar laws affecting the enforcement of creditors’ rights generally, (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (C) public policy considerations underlying the securities laws, to the extent that such public policy considerations limit the enforceability of the provisions of this Agreement that purport to provide indemnification for securities laws liabilities;

 

(iii)       The execution and delivery of each Operative Document by the Seller and RTI and the performance of its obligations hereunder and thereunder will not conflict with any provision of any law or regulation to which the Seller or RTI is subject, or conflict with, result in a breach of, or constitute a default under, any of the terms, conditions or provisions of any of the Seller’s or RTI’s organizational documents or any agreement or instrument to which the Seller or RTI is a party or by which it is bound, or any order or decree applicable to the Seller or RTI, or result in the creation or imposition of any lien on any of the Seller’s assets or property, in each case, which would materially and adversely affect the ability of the Seller or RTI to carry out the transactions contemplated by the Operative Documents;

 

(iv)       There is no action, suit, proceeding or investigation pending or, to the Seller’s or RTI’s knowledge, threatened against the Seller or RTI in any court or by or 

 

  

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before any other governmental agency or instrumentality which would materially and adversely affect the validity of the Mortgage Loans or the ability of the Seller or RTI to carry out the transactions contemplated by each Operative Document;

 

(v)    Neither RTI nor the Seller is in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or governmental agency, which default might have consequences that, in the Seller’s  or RTI’s good faith and reasonable judgment, is likely to materially and adversely affect the condition (financial or other) or operations of the Seller or RTI or its properties or might have consequences that, in the Seller’s or RTI’s good faith and reasonable judgment, is likely to materially and adversely affect its performance under any Operative Document;

 

(vi)       No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Seller or RTI of, or compliance by the Seller or RTI with, each Operative Document or the consummation of the transactions contemplated hereby or thereby, other than those which have been obtained by the Seller or RTI; and

 

(vii)      The transfer, assignment and conveyance of the Mortgage Loans by the Seller to the Purchaser is not subject to bulk transfer laws or any similar statutory provisions in effect in any applicable jurisdiction.

 

(b)    The Purchaser represents and warrants to the Seller as of the Closing Date that:

 

(i)    The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, with full corporate power and authority to own its assets and conduct its business, is duly qualified as a foreign corporation in good standing in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a material adverse effect on the ability of the Purchaser to perform its obligations hereunder, and the Purchaser has taken all necessary action to authorize the execution, delivery and performance of this Agreement by it, and has duly executed and delivered this Agreement, and has the power and authority to execute, deliver and perform this Agreement and all the transactions contemplated hereby;

 

(ii)    Assuming the due authorization, execution and delivery of this Agreement by the Seller, this Agreement will constitute a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, liquidation or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);

 

(iii)    The execution and delivery of this Agreement by the Purchaser and the performance of its obligations hereunder will not conflict with any provision of any law 

 

  

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or regulation to which the Purchaser is subject, or conflict with, result in a breach of, or constitute a default under, any of the terms, conditions or provisions of any of the Purchaser’s organizational documents or any agreement or instrument to which the Purchaser is a party or by which it is bound, or any order or decree applicable to the Purchaser, or result in the creation or imposition of any lien on any of the Purchaser’s assets or property, in each case which would materially and adversely affect the ability of the Purchaser to carry out the transactions contemplated by this Agreement;

 

(iv)    There is no action, suit, proceeding or investigation pending or, to the Purchaser’s knowledge, threatened against the Purchaser in any court or by or before any other governmental agency or instrumentality which would materially and adversely affect the validity of this Agreement or any action taken in connection with the obligations of the Purchaser contemplated herein, or which would be likely to impair materially the ability of the Purchaser to perform under the terms of this Agreement;

 

(v)    The Purchaser is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or other) or operations of the Purchaser or its properties or might have consequences that would materially and adversely affect its performance under any Operative Document; and

 

(vi)    No consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery and performance by the Purchaser of or compliance by the Purchaser with this Agreement or the consummation of the transactions contemplated by this Agreement other than those that have been obtained by the Purchaser.

 

(c)     The Seller further makes the representations and warranties as to the Mortgage Loans set forth in Exhibit B to this Agreement as of the Cut-Off Date or such other date set forth in Exhibit B to this Agreement, which representations and warranties are subject to the exceptions thereto set forth in Exhibit C to this Agreement.

 

(d)    Pursuant to the Pooling and Servicing Agreement, if (i) any party thereto discovers or receives notice alleging that any document constituting a part of a Mortgage File has not been properly executed, is missing, contains information that does not conform in any material respect with the corresponding information set forth in the Mortgage Loan Schedule, or does not appear to be regular on its face (each, a “Document Defect”), or discovers or receives notice alleging a breach of any representation or warranty of the Seller made pursuant to Section 6(c) of this Agreement with respect to any Mortgage Loan (a “Breach”) or (ii) the Special Servicer or the Purchaser receives a Repurchase Request, such party is required to give prompt written notice thereof to the Seller.

 

(e)    Pursuant to the Pooling and Servicing Agreement, the Special Servicer is required to determine whether any such Document Defect or Breach with respect to any Mortgage Loan materially and adversely affects, or such Document Defect is deemed in accordance with Section 2.03 of the Pooling and Servicing Agreement to materially and 

 

  

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adversely affect, the value of the Mortgage Loan or any related REO Property or the interests of the Certificateholders therein (any such Document Defect shall constitute a “Material Document Defect” and any such Breach shall constitute a “Material Breach”).  If such Document Defect or Breach has been determined to be a Material Document Defect or Material Breach, then the Special Servicer will be required to give prompt written notice thereof to the Seller.  Promptly upon becoming aware of any such Material Document Defect or Material Breach (including through a written notice given by any party hereto, as provided above if the Document Defect or Breach identified therein is a Material Document Defect or Material Breach, as the case may be), the Seller shall, not later than 90 days from the earlier of the Seller’s discovery or receipt of notice of, and receipt of a demand to take action with respect to, such Material Document Defect or Material Breach, as the case may be (or, in the case of a Material Document Defect or Material Breach relating to a Mortgage Loan not being a “qualified mortgage” within the meaning of the REMIC Provisions, not later than 90 days from any party discovering such Material Document Defect or Material Breach, provided that, if such discovery is by any party other than the Seller, the Seller receives notice thereof in a timely manner), cure the same in all material respects (which cure shall include payment of any losses and Additional Trust Fund Expenses associated therewith) or, if such Material Document Defect or Material Breach, as the case may be, cannot be cured within such 90 day period, the Seller shall either (i) substitute a Qualified Substitute Mortgage Loan for such affected Mortgage Loan (provided that in no event shall any such substitution occur later than the second anniversary of the Closing Date) and pay the Master Servicer, for deposit into the Collection Account, any Substitution Shortfall Amount in connection therewith or (ii) repurchase the affected Mortgage Loan or any related REO Property (or the Trust Fund’s interest therein) at the applicable Purchase Price by wire transfer of immediately available funds to the Collection Account; provided, however, that if (i) such Material Document Defect or Material Breach is capable of being cured but not within such 90 day period, (ii) such Material Document Defect or Material Breach is not related to any Mortgage Loan’s not being a “qualified mortgage” within the meaning of the REMIC Provisions and (iii) the Seller has commenced and is diligently proceeding with the cure of such Material Document Defect or Material Breach within such 90 day period, then the Seller shall have an additional 90 days to complete such cure (or, in the event of a failure to so cure, to complete such repurchase of the related Mortgage Loan or substitute a Qualified Substitute Mortgage Loan as described above) it being understood and agreed that, in connection with the Seller’s receiving such additional 90 day period, the Seller shall deliver an Officer’s Certificate to the Trustee, the Special Servicer and the Certificate Administrator setting forth the reasons such Material Document Defect or Material Breach is not capable of being cured within the initial 90 day period and what actions the Seller is pursuing in connection with the cure thereof and stating that the Seller anticipates that such Material Document Defect or Material Breach will be cured within such additional 90 day period; and provided, further, that, if any such Material Document Defect is still not cured after the initial 90 day period and any such additional 90 day period solely due to the failure of the Seller to have received the recorded document, then the Seller shall be entitled to continue to defer its cure, substitution or repurchase obligations in respect of such Document Defect so long as the Seller certifies to the Trustee, the Special Servicer and the Certificate Administrator every 30 days thereafter that the Document Defect is still in effect solely because of its failure to have received the recorded document and that the Seller is diligently pursuing the cure of such defect (specifying the actions being taken), except that no such deferral of cure, substitution or repurchase may continue beyond the date that is 18 months 

 

  

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following the Closing Date.  Any such repurchase of a Mortgage Loan shall be on a servicing released basis.  The Seller shall have no obligation to monitor the Mortgage Loans regarding the existence of a Breach or a Document Defect, but if the Seller discovers a Material Breach or Material Document Defect with respect to a Mortgage Loan, it will notify the Purchaser.

 

Subject to the Seller’s right to cure set forth above in this Section 6(e), and further subject to Sections 2.01(b) and 2.01(c) of the Pooling and Servicing Agreement, failure of the Seller to deliver the documents referred to in clauses (1), (2), (7), (8), (18) and (19) in the definition of “Mortgage File” in the Pooling and Servicing Agreement in accordance with this Agreement and the Pooling and Servicing Agreement for any Mortgage Loan shall be deemed a Material Document Defect; provided, however, that no Document Defect (except such deemed Material Document Defect described above) shall be considered to be a Material Document Defect unless the document with respect to which the Document Defect exists is required in connection with an imminent enforcement of the lender’s rights or remedies under the related Mortgage Loan, defending any claim asserted by any Mortgagor or third party with respect to the Mortgage Loan, establishing the validity or priority of any lien on any collateral securing the Mortgage Loan or for any immediate significant servicing obligation.

 

(f)    In connection with any repurchase or substitution of one or more Mortgage Loans pursuant to this Section 6, the Pooling and Servicing Agreement shall provide that the Trustee, the Certificate Administrator, the Custodian, the Master Servicer and the Special Servicer shall each tender to the repurchasing entity, upon delivery to each of them of a receipt executed by the repurchasing entity, all portions of the Mortgage File and other documents and all Escrow Payments and reserve funds pertaining to such Mortgage Loan possessed by it, and each document that constitutes a part of the Mortgage File shall be endorsed or assigned to the extent necessary or appropriate to the repurchasing or substituting entity or its designee in the same manner, but only if the respective documents have been previously assigned or endorsed to the Trustee, and pursuant to appropriate forms of assignment, substantially similar to the manner and forms pursuant to which such documents were previously assigned to the Trustee or as otherwise reasonably requested to effect the retransfer and reconveyance of the Mortgage Loan and the security therefor to the Seller or its designee; provided that such tender by the Trustee shall be conditioned upon its receipt from the Master Servicer of a Request for Release and an Officer’s Certificate to the effect that the requirements for repurchase or substitution have been satisfied.

 

(g)    The representations and warranties of the parties hereto shall survive the execution and delivery and any termination of this Agreement and shall inure to the benefit of the respective parties, notwithstanding any restrictive or qualified endorsement on the Notes or Assignment of Mortgage or the examination of the Mortgage Files.

 

(h)    Each party hereto agrees to promptly notify the other party of any breach of a representation or warranty contained in Section 6(c) of this Agreement.  The Seller’s obligation to cure any Material Breach or Material Document Defect or to repurchase or substitute any affected Mortgage Loan pursuant to this Section 6 shall constitute the sole remedy available to the Purchaser in connection with a breach of any of the Seller’s representations or warranties contained in Section 6(c) of this Agreement or a Document Defect with respect to any Mortgage Loan.

 

  

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(i)    The Seller shall promptly notify the Depositor if (i) the Seller receives a Repurchase Communication of a Repurchase Request (other than from the Depositor), (ii) the Seller repurchases or replaces a Mortgage Loan, (iii) the Seller receives a Repurchase Communication of a Repurchase Request Withdrawal (other than from the Depositor) or (iv) the Seller rejects or disputes any Repurchase Request.  Each such notice shall be given no later than the tenth (10th) Business Day after (A) with respect to clauses (i) and (iii) of the preceding sentence, receipt of a Repurchase Communication of a Repurchase Request or a Repurchase Request Withdrawal, as applicable, and (B) with respect to clauses (ii) and (iv) of the preceding sentence, the occurrence of the event giving rise to the requirement for such notice, and shall include (1) the identity of the related Mortgage Loan, (2) the date (x) such Repurchase Communication of such Repurchase Request or Repurchase Request Withdrawal was received, (y) the related Mortgage Loan was repurchased or replaced or (z) the Repurchase Request was rejected or disputed, as applicable, and (3) if known, the basis for (x) the Repurchase Request (as asserted in the Repurchase Request) or (y) any rejection or dispute of a Repurchase Request, as applicable.

 

The Seller shall provide to the Depositor and the Certificate Administrator the Seller’s “Central Index Key” number assigned by the Securities and Exchange Commission and a true, correct and complete copy of the relevant portions of any Form ABS-15G that the Seller is required to file with the Securities and Exchange Commission with respect to the Mortgage Loans on or before the date that is five (5) Business Days before the date such Form ABS-15G is required to be filed with the Securities and Exchange Commission.

 

In addition, the Seller shall provide the Depositor, upon request, such other information in its possession as would permit the Depositor to comply with its obligations under Rule 15Ga-1 under the Exchange Act to disclose fulfilled and unfulfilled repurchase requests.  Any such information requested shall be provided as promptly as practicable after such request is made.

 

The Seller agrees that no 15Ga-1 Notice Provider will be required to provide information in a 15Ga-1 Notice that is protected by the attorney-client privilege or attorney work product doctrines.  In addition, the Seller hereby acknowledges that (i) any 15Ga-1 Notice provided pursuant to Section 2.03(a) of the Pooling and Servicing Agreement is so provided only to assist the Seller, the Depositor and their respective Affiliates to comply with Rule 15Ga-1 under the Exchange Act, Items 1104 and 1121 of Regulation AB and any other requirement of law or regulation and (ii)(A) no action taken by, or inaction of, a 15Ga-1 Notice Provider and (B) no information provided pursuant to Section 2.03(a) of the Pooling and Servicing Agreement by a 15Ga-1 Notice Provider shall be deemed to constitute a waiver or defense to the exercise of any legal right the 15Ga-1 Notice Provider may have with respect to this Agreement, including with respect to any Repurchase Request that is the subject of a 15Ga-1 Notice.

 

Each party hereto agrees that the receipt of a 15Ga-1 Notice or the delivery of any notice required to be delivered pursuant to this Section 6(i) shall not, in and of itself, constitute delivery of notice of, receipt of notice of, or knowledge of the Seller of, any Material Document Defect or Material Breach.

 

  

-11-

  

 

Each party hereto agrees and acknowledges that, as of the date of this Agreement, the “Central Index Key” number of the Trust Fund is 0001601744.

 

“Repurchase Communication” means, for purposes of this Section 6(i) only, any communication, whether oral or written, which need not be in any specific form.

 

SECTION 7  Review of Mortgage File.  The Purchaser shall require the Certificate Administrator pursuant to the Pooling and Servicing Agreement to review the Mortgage Files pursuant to Section 2.02 of the Pooling and Servicing Agreement and if it finds any document or documents not to have been properly executed, or to be missing or to be defective on its face in any material respect, to notify the Purchaser, which shall promptly notify the Seller.

 

SECTION 8  Conditions to Closing.  The obligation of the Seller to sell the Mortgage Loans shall be subject to the Seller having received the consideration for the Mortgage Loans as contemplated by Section 1 of this Agreement.  The obligations of the Purchaser to purchase the Mortgage Loans shall be subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

 

(a)    Each of the obligations of the Seller required to be performed by it at or prior to the Closing Date pursuant to the terms of this Agreement shall have been duly performed and complied with and all of the representations and warranties of the Seller under this Agreement shall, subject to any applicable exceptions set forth on Exhibit C to this Agreement, be true and correct in all material respects as of the Closing Date or as of such other date as of which such representation is made under the terms of Exhibit B to this Agreement, and no event shall have occurred as of the Closing Date which would constitute a default on the part of the Seller under this Agreement, and the Purchaser shall have received a certificate to the foregoing effect signed by an authorized officer of the Seller substantially in the form of Exhibit D to this Agreement.

 

(b)    The Pooling and Servicing Agreement (to the extent it affects the obligations of the Seller hereunder), in such form as is agreed upon and acceptable to the Purchaser, the Seller, the Underwriters, the Initial Purchasers and their respective counsel in their reasonable discretion, shall be duly executed and delivered by all signatories as required pursuant to the terms thereof.

 

(c)    The Purchaser shall have received the following additional closing documents:

 

(i)    copies of the Seller’s Articles of Association, charter, by-laws or other organizational documents and all amendments, revisions, restatements and supplements thereof, certified as of a recent date by the Secretary of the Seller;

 

(ii)    a certificate as of a recent date of the Secretary of State of the State of Delaware to the effect that the Seller is duly organized, existing and in good standing in the State of Delaware and RTI is a corporation and in good standing under the laws of the State of Maryland;

 

  

-12-

  

 

(iii)   an officer’s certificate of the Seller and of RTI in form reasonably acceptable to the Underwriters, the Initial Purchasers and each Rating Agency;

 

(iv)  an opinion of counsel of the Seller and RTI, subject to customary exceptions and carve-outs, in form reasonably acceptable to the Underwriters, the Initial Purchasers and each Rating Agency; and

 

(v)   a letter from counsel of the Seller and RTI substantially to the effect that (a) nothing has come to such counsel’s attention that would lead such counsel to believe that the agreed upon sections of the Primary Free Writing Prospectus, the Prospectus Supplement, the Preliminary Offering Circular or the Final Offering Circular (each as defined in the Indemnification Agreement), as of the date thereof or as of the Closing Date (or, in the case of the Primary Free Writing Prospectus or the Preliminary Offering Circular, solely as of the time of sale) contained or contain, as applicable, with respect to the Seller or the Mortgage Loans, any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein relating to the Seller or the Mortgage Loans, in the light of the circumstances under which they were made, not misleading and (b) the Seller Information (as defined in the Indemnification Agreement) in the Prospectus Supplement appears to be appropriately responsive in all material respects to the applicable requirements of Regulation AB.

 

(d)    The Public Certificates shall have been concurrently issued and sold pursuant to the terms of the Underwriting Agreement.  The Private Certificates shall have been concurrently issued and sold pursuant to the terms of the Certificate Purchase Agreement.

 

(e)    The Seller and RTI shall have executed and delivered concurrently herewith the Indemnification Agreement.

 

(f)    The Seller and RTI shall furnish the Purchaser, the Underwriters and the Initial Purchasers with such other certificates of its officers or others and such other documents and opinions to evidence fulfillment of the conditions set forth in this Agreement as the Purchaser and its counsel may reasonably request.

 

SECTION 9  Closing.  The closing for the purchase and sale of the Mortgage Loans shall take place at the office of Cadwalader, Wickersham & Taft LLP, New York, New York, at 10:00 a.m., on the Closing Date or such other place and time as the parties shall agree.

 

SECTION 10  Expenses.  The Seller will pay its pro rata share (the Seller’s pro rata portion to be determined according to the percentage that the aggregate principal balance as of the Cut-Off Date of all the Mortgage Loans represents as to the aggregate principal balance as of the Cut-Off Date of all the mortgage loans to be included in the Trust Fund) of all costs and expenses of the Purchaser in connection with the transactions contemplated herein, including, but not limited to: (i) the costs and expenses of the Purchaser in connection with the purchase of the Mortgage Loans; (ii) the costs and expenses of reproducing and delivering the Pooling and Servicing Agreement and this Agreement and printing (or otherwise reproducing) and delivering the Certificates; (iii) the reasonable and documented fees, costs and expenses of the Trustee, the Certificate Administrator and their respective counsel; (iv) the fees and disbursements of a firm 

 

  

-13-

  

 

of certified public accountants selected by the Purchaser and the Seller with respect to numerical information in respect of the Mortgage Loans and the Certificates included in the Prospectus, Primary Free Writing Prospectus, the Prospectus Supplement, the Preliminary Offering Circular, the Final Offering Circular and any related disclosure for the initial Form 8-K, including the cost of obtaining any “comfort letters” with respect to such items; (v) the costs and expenses in connection with the qualification or exemption of the Certificates under state securities or blue sky laws, including filing fees and reasonable fees and disbursements of counsel in connection therewith; (vi) the costs and expenses in connection with any determination of the eligibility of the Certificates for investment by institutional investors in any jurisdiction and the preparation of any legal investment survey, including reasonable fees and disbursements of counsel in connection therewith; (vii) the costs and expenses in connection with printing (or otherwise reproducing) and delivering the Registration Statement, Prospectus, Primary Free Writing Prospectus, Prospectus Supplement, Preliminary Offering Circular and Final Offering Circular and the reproducing and delivery of this Agreement and the furnishing to the Underwriters of such copies of the Registration Statement, Prospectus, Primary Free Writing Prospectus, Prospectus Supplement, Preliminary Offering Circular, Final Offering Circular and this Agreement as the Underwriters may reasonably request; (viii) the fees of the rating agency or agencies requested to rate the Certificates; (ix) the reasonable fees and expenses of Cadwalader, Wickersham & Taft LLP, as counsel to the Purchaser; and (x) the reasonable fees and expenses of Mayer Brown LLP, as counsel to the Underwriters and the Initial Purchasers.

 

SECTION 11  Severability of Provisions.  If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement.  Furthermore, the parties shall in good faith endeavor to replace any provision held to be invalid or unenforceable with a valid and enforceable provision which most closely resembles, and which has the same economic effect as, the provision held to be invalid or unenforceable.

 

SECTION 12  Governing Law.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT, THE RELATIONSHIP OF THE PARTIES TO THIS AGREEMENT, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CHOICE OF LAW RULES THEREOF.  THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.

 

SECTION 13  Waiver of Jury Trial.  THE PARTIES HERETO HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

  

-14-

  

 

SECTION 14  Submission to Jurisdiction.  EACH OF THE PARTIES HERETO IRREVOCABLY (I) SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT; (II) WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT; (III) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (IV) CONSENTS TO SERVICE OF PROCESS UPON IT BY MAILING A COPY THEREOF BY CERTIFIED MAIL ADDRESSED TO IT AS PROVIDED FOR NOTICES HEREUNDER AND AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY MANNER PERMITTED BY LAW.

 

SECTION 15  No Third-Party Beneficiaries.  The parties do not intend the benefits of this Agreement to inure to any third party except as expressly set forth in Section 16.

 

SECTION 16  Assignment.  Each of the Seller and RTI hereby acknowledges that the Purchaser has, concurrently with the execution hereof, executed and delivered the Pooling and Servicing Agreement and that, in connection therewith, it has assigned its rights hereunder to the Trustee for the benefit of the Certificateholders. Each of the Seller and RTI hereby acknowledges its obligations pursuant to Sections 2.01, 2.02 and 2.03 of the Pooling and Servicing Agreement.  This Agreement shall bind and inure to the benefit of and be enforceable by the Seller, RTI, the Purchaser and their permitted successors and assigns.  Any Person into which the Seller or RTI may be merged or consolidated, or any Person resulting from any merger, conversion or consolidation to which the Seller or RTI may become a party, or any Person succeeding to all or substantially all of the business of the Seller or RTI, shall be the successor to the Seller or RTI hereunder without any further act.  The warranties and representations and the agreements made by the Seller or RTI herein shall survive delivery of the Mortgage Loans to the Trustee until the termination of the Pooling and Servicing Agreement, but shall not be further assigned by the Trustee to any Person. The guaranty and indemnity provided for in Sections 24 and 25 of this Agreement shall inure to the benefit of the Purchaser and shall be enforceable by the Purchaser (including without limitation, the Trustee) or any special servicer or master servicer on its behalf.

 

SECTION 17  Notices.  All communications hereunder shall be in writing and effective only upon receipt and (i) if sent to the Purchaser, will be mailed, hand delivered, couriered or sent by facsimile transmission to it at 200 West Street, New York, New York 10282, to the attention of Leah Nivison, fax number: (212) 428-1439, email: leah.nivison@gs.com, with copies to: Peter Morreale, fax number: (212) 902-3000, email: peter.morreale@gs.com and Joe Osborne, fax number: (212) 291-5318, email: joe.osborne@gs.com, (ii) if sent to the Seller, will be mailed, hand delivered, couriered or sent by facsimile transmission or electronic mail and confirmed to it at Redwood Commercial Mortgage Corporation, One Belvedere Place, Suite 300, Mill Valley, California  94941, Attention: Sandy Vergano, fax number: (415) 381-1773, (iii) in the case of RTI, Redwood Trust 

 

  

-15-

  

 

Inc., One Belvedere Place, Suite 300, Mill Valley, California 94941, Attention: Sandy Vergano, fax number: (415) 381-1773, and (vi) in the case of any of the preceding parties, such other address as may hereafter be furnished to the other party in writing by such parties.

 

SECTION 18  Amendment.  This Agreement may be amended only by a written instrument which specifically refers to this Agreement and is executed by the Purchaser, the Seller and RTI.  This Agreement shall not be deemed to be amended orally or by virtue of any continuing custom or practice.  No amendment to the Pooling and Servicing Agreement which relates to defined terms contained therein or to any obligations or rights of the Seller or RTI whatsoever shall be effective against the Seller or RTI unless the Seller and RTI shall have agreed to such amendment in writing.

 

SECTION 19  Counterparts.  This Agreement may be executed in any number of counterparts, and by the parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement in Portable Document Format (PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart of this Agreement.

 

SECTION 20     Exercise of Rights.  No failure or delay on the part of any party to exercise any right, power or privilege under this Agreement and no course of dealing between the Seller and the Purchaser shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under this Agreement preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  Except as set forth in Section 6(h) of this Agreement, the rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which any party would otherwise have pursuant to law or equity.  No notice to or demand on any party in any case shall entitle such party to any other or further notice or demand in similar or other circumstances, or constitute a waiver of the right of either party to any other or further action in any circumstances without notice or demand.

 

SECTION 21     No Partnership.  Nothing herein contained shall be deemed or construed to create a partnership or joint venture between the parties hereto.  Nothing herein contained shall be deemed or construed as creating an agency relationship between the Purchaser  on the one hand, and the Seller and RTI, on the other hand, and no Party shall take any action which could reasonably lead a third party to assume that it has the authority to bind the other party or make commitments on such party’s behalf.

 

SECTION 22     Miscellaneous.  This Agreement supersedes all prior agreements and understandings relating to the subject matter hereof.  Neither this Agreement nor any term hereof may be waived, discharged or terminated orally, but only by an instrument in writing signed by the party against whom enforcement of the waiver, discharge or termination is sought.

 

SECTION 23     Further Assurances.  The Seller and Purchaser each agree to execute and deliver such instruments and take such further actions as any party hereto may, from time to time, reasonably request in order to effectuate the purposes and carry out the terms of this Agreement.

 

  

-16-

  

 

SECTION 24     Guaranty by RTI.  (a) RTI hereby unconditionally and irrevocably guarantees to the Purchaser the due and punctual payment of all sums due by, and the performance of all obligations of, the Seller under Sections 6 and 10 of this Agreement and any other provisions hereof requiring the payment of any amount by the Seller and, to the extent that they relate to the obligations of the Seller to cure any Defect or Breach, or repurchase or substitute for any affected Mortgage Loan or make any other payment, Sections 2.01, 2.02 and 2.03 of the Pooling and Servicing Agreement, as and when the same shall become due and payable (after giving effect to any applicable grace period) according to the terms hereof or thereof.  In the case of the failure of the Seller to make any such payment as and when due, RTI hereby agrees to make such payment or cause such payment to be made, promptly upon written demand by the Purchaser to RTI, but any delay in providing such notice shall not under any circumstances reduce the liability of RTI or operate as a waiver of the Purchaser’s right to demand payment.

 

(b)    This guarantee shall be a guaranty of payment and performance and not of collection, and the obligations of RTI under this guarantee shall be continuing, absolute and unconditional.  RTI waives any and all defenses it may have arising out of: (i) the validity, regularity or enforceability of this Agreement; (ii) the absence of any action to enforce the same; (iii) the rendering of any judgment against the Seller or any action to enforce the same; (iv) any waiver or consent by the Purchaser or any amendment or other modification to this Agreement; (v) any defense to payment hereunder based upon suretyship defenses; (vi) the bankruptcy or insolvency of the Seller, (vii) any defense based on (1) the corporate status of the Seller, (2) the power and authority of the Seller to enter into this Agreement and to perform its obligations hereunder or (3) the legality, validity and enforceability of the Seller’s obligation under this Agreement, or (viii) any other defense, circumstances or limitation of any nature whatsoever that would constitute a legal or equitable discharge of a guarantor or other third party obligor.  This guarantee shall continue to remain in full force and effect in accordance with its terms notwithstanding the renewal, extension, modification, or waiver, in whole or in part, of any of the Seller’s obligations under this Agreement or the Pooling and Servicing Agreement which are subject to this guarantee.

 

(c)    RTI waives (i) notice of acceptance of the guaranty provided for in this Section 24 and notice of any obligations to which it may apply, (ii) diligence, presentment, demand for payment, protest and notice of nonpayment or dishonor and all other notices and demands relating to this Agreement and (iii) any requirement that the Purchaser proceed first against the Seller under this Agreement or otherwise exhaust any right, power or remedy under this Agreement before proceeding hereunder.

 

(d)    RTI agrees to pay on demand, all expenses (including reasonable legal fees) in any way relating to the enforcement or protection of the rights of the Purchaser hereunder or with respect to any obligations.

 

SECTION 25     Indemnification by RTI. RTI shall indemnify and hold harmless the Purchaser from and against any and all loss, cost or expense, including any losses, liabilities, penalties, fines, forfeitures, fees (including reasonable attorneys’ fees) and related costs, judgments, and any other costs, including any costs of enforcement, incurred or suffered as a result of, or related to, (i) any breach by the Seller of any of its representations, warranties or 

 

  

-17-

  

 

covenants in this Agreement (other than Sections 6(c), 6(e) and 9 hereof and any other provisions hereof requiring the payment of any amount by the Seller) or (ii) the invalidity or otherwise unenforceability of the guaranty provided for under, or any other provisions of, Section 24, including the waiver of any defenses provided for pursuant to Section 24, or for any limitations on the recovery or timing of amounts in connection with the attempted enforcement of the guaranty.

 

* * * * * *

 

  

-18-

  

 

IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.

	 	 
	 	
GS MORTGAGE SECURITIES CORPORATION II

	 	 	 
	 	
By: 

	/s/  Leah Nivison
	 	 	Name: Leah Nivison 
	 	 	Title: Vice President

	 	 
	 	

REDWOOD COMMERCIAL MORTGAGE CORPORATION

	 	 	 
	 	
By: 

	/s/  Aaron Dunn
	 	 	Name: Aaron Dunn 
	 	 	Title: Executive Vice President

	 	 
	 	

REDWOOD TRUST, INC.

	 	 	 
	 	
By: 

	/s/  Aaron Dunn
	 	 	Name: Aaron Dunn
	 	 	Title: Managing Director

 

  

  

  

 

EXHIBIT A

 

MORTGAGE LOAN SCHEDULE

 

  

  A-1

  

 

	
GC20 RCMC Mortgage Loan Schedule

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
Companion Loan

	  	
 

	  	
Companion Loan

	  	
 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
Original

	  	
Remaining

	  	  	  	
Remaining

	  	  	  	  	  	  	  	
Crossed With

	  	  	  	  	  	  	  	
Remaining

	  	
Companion Loan

	  	
Remaining

	  	
Companion Loan

	
Control

	  	  	  	
Loan

	  	  	  	  	  	  	  	  	  	  	  	
Cut-Off Date

	  	
Mortgage

	  	
Term To

	  	  	  	
Amortization Term

	  	
Subservicing

	  	
Servicing

	  	
Mortgage

	  	
Other Loans

	  	
Companion Loan

	  	
Companion Loan

	  	
Companion Loan

	  	
Term To

	  	
Maturity

	  	
Amortization Term

	  	
Servicing

	
Number

	  	
Footnotes

	  	
Number

	  	
Property Name

	  	
Address

	  	
City

	  	
State

	  	
Zip Code

	  	
Balance ($)

	  	
Loan Rate (%)

	  	
Maturity (Mos.)

	  	
Maturity Date

	  	
(Mos.)

	  	
Fee Rate (%)

	  	
Fee Rate (%)

	  	
Loan Seller

	  	
(Crossed Group)

	  	
Flag

	  	
Cut-off Balance

	  	
Interest Rate

	  	
Maturity (Mos.)

	  	
Date

	  	
(Mos.)

	  	
Fees

	
10

	  	  	  	
1

	  	
River Oaks

	  	
1951 Northwest South River Drive

	  	
Miami

	  	
Florida

	  	
33125

	  	
29,500,000

	  	
4.79000%

	  	
120

	  	
4/5/2024

	  	
360

	  	
0.00000%

	  	
0.01000%

	  	
RCMC

	  	
NAP

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
16

	  	  	  	
2

	  	
West Run Apartments

	  	
500 Koehler Drive

	  	
Morgantown

	  	
West Virginia

	  	
26508

	  	
24,300,000

	  	
4.97000%

	  	
120

	  	
4/5/2024

	  	
360

	  	
0.03000%

	  	
0.00500%

	  	
RCMC

	  	
NAP

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
21

	  	  	  	
3

	  	
Preserve at Greenway Park II

	  	
2079 Preserve Circle

	  	
Casper

	  	
Wyoming

	  	
82609

	  	
16,954,727

	  	
4.73000%

	  	
118

	  	
2/5/2024

	  	
358

	  	
0.03000%

	  	
0.00500%

	  	
RCMC

	  	
NAP

	  	  	  	  	  	  	  	  	  	  	  	  	  	  

 

  

  

  

 

EXHIBIT B

 

MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES

 

 

	
(1)

	
Whole Loan; Ownership of Mortgage Loans. Except with respect to a Mortgage Loan that is part of a Whole Loan, each Mortgage Loan is a whole loan and not a participation interest in a Mortgage Loan. Each Mortgage Loan that is part of a Whole Loan is a senior or pari passu portion of a whole loan evidenced by a senior or pari passu note. At the time of the sale, transfer and assignment to Depositor, no Mortgage Note or Mortgage was subject to any assignment (other than assignments to the Seller), participation or pledge, and the Seller had good title to, and was the sole owner of, each Mortgage Loan free and clear of any and all liens, charges, pledges, encumbrances, participations, any other ownership interests on, in or to such Mortgage Loan other than any servicing rights appointment or similar agreement, any Other Pooling and Servicing Agreement with respect to a Non-Serviced Mortgage Loan and rights of the holder of a related Companion Loan pursuant to a Co-Lender Agreement. Seller has full right and authority to sell, assign and transfer each Mortgage Loan, and the assignment to Depositor constitutes a legal, valid and binding assignment of such Mortgage Loan free and clear of any and all liens, pledges, charges or security interests of any nature encumbering such Mortgage Loan other than the rights of the holder of a related Companion Loan pursuant to a Co-Lender Agreement.

 

	
(2)

	
Loan Document Status. Each related Mortgage Note, Mortgage, Assignment of Leases (if a separate instrument), guaranty and other agreement executed by or on behalf of the related Mortgagor, guarantor or other obligor in connection with such Mortgage Loan is the legal, valid and binding obligation of the related Mortgagor, guarantor or other obligor (subject to any non-recourse provisions contained in any of the foregoing agreements and any applicable state anti-deficiency or market value limit deficiency legislation), as applicable, and is enforceable in accordance with its terms, except (i) as such enforcement may be limited by (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law) and (ii) that certain provisions in such Loan Documents (including, without limitation, provisions requiring the payment of default interest, late fees or prepayment/yield maintenance fees, charges and/or premiums) are, or may be, further limited or rendered unenforceable by or under applicable law, but (subject to the limitations set forth in clause (i) above) such limitations or unenforceability will not render such Loan Documents invalid as a whole or materially interfere with the Mortgagee’s realization of the principal benefits and/or security provided thereby (clauses (i) and (ii) collectively, the “Standard Qualifications”).

 

Except as set forth in the immediately preceding sentence, there is no valid offset, defense, counterclaim or right of rescission available to the related Mortgagor with respect to any of the related Mortgage Notes, Mortgages or other Loan Documents, including, without limitation, any such valid offset, defense, counterclaim or right based on intentional fraud by Seller in connection with the origination of the Mortgage Loan, 

 

  

B-1

  

 

that would deny the Mortgagee the principal benefits intended to be provided by the Mortgage Note, Mortgage or other Loan Documents.

 

	
(3)

	
Mortgage Provisions. The Loan Documents for each Mortgage Loan contain provisions that render the rights and remedies of the holder thereof adequate for the practical realization against the Mortgaged Property of the principal benefits of the security intended to be provided thereby, including realization by judicial or, if applicable, nonjudicial foreclosure subject to the limitations set forth in the Standard Qualifications.

 

	
(4)

	
Mortgage Status; Waivers and Modifications. Since origination and except by written instruments set forth in the related Mortgage File (a) the material terms of such Mortgage, Mortgage Note, Mortgage Loan guaranty, and related Loan Documents have not been waived, impaired, modified, altered, satisfied, canceled, subordinated or rescinded in any respect which materially interferes with the security intended to be provided by such Mortgage; (b) no related Mortgaged Property or any portion thereof has been released from the lien of the related Mortgage in any manner which materially interferes with the security intended to be provided by such Mortgage or the use or operation of the remaining portion of such Mortgaged Property; and (c) neither the related Mortgagor nor the related guarantor has been released from its material obligations under the Mortgage Loan.

 

	
(5)

	
Lien; Valid Assignment. Subject to the Standard Qualifications, each assignment of Mortgage and assignment of Assignment of Leases to the Trust Fund constitutes a legal, valid and binding assignment to the Trust Fund. Each related Mortgage and Assignment of Leases is freely assignable without the consent of the related Mortgagor. Each related Mortgage is a legal, valid and enforceable first lien on the related Mortgagor’s fee (or if identified on the Mortgage Loan Schedule, leasehold) interest in the Mortgaged Property in the principal amount of such Mortgage Loan or allocated loan amount (subject only to Permitted Encumbrances (as defined below) and the exceptions to paragraph (6) below (each such exception, a “Title Exception”)), except as the enforcement thereof may be limited by the Standard Qualifications. Such Mortgaged Property (subject to and excepting Permitted Encumbrances and the Title Exceptions) as of origination was, and as of the Cut-Off Date, to the Seller’s knowledge, is free and clear of any recorded mechanics’ liens, recorded materialmen’s liens and other recorded encumbrances which are prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by a lender’s title insurance policy (as described below), and, to the Seller’s knowledge and subject to the rights of tenants (as tenants only) (subject to and excepting Permitted Encumbrances and the Title Exceptions), no rights exist which under law could give rise to any such lien or encumbrance that would be prior to or equal with the lien of the related Mortgage, except those which are bonded over, escrowed for or insured against by a lender’s title insurance policy (as described below). Notwithstanding anything herein to the contrary, no representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of Uniform Commercial Code financing statements is required in order to effect such perfection.

 

  

B-2

  

 

	
(6)

	
Permitted Liens; Title Insurance. Each Mortgaged Property securing a Mortgage Loan is covered by an American Land Title Association loan title insurance policy or a comparable form of loan title insurance policy approved for use in the applicable jurisdiction (or, if such policy is yet to be issued, by a pro forma policy, a preliminary title policy with escrow instructions or a “marked up” commitment, in each case binding on the title insurer) (the “Title Policy”) in the original principal amount of such Mortgage Loan (or with respect to a Mortgage Loan secured by multiple properties, an amount equal to at least the allocated loan amount with respect to the Title Policy for each such property) after all advances of principal (including any advances held in escrow or reserves), that insures for the benefit of the owner of the indebtedness secured by the Mortgage, the first priority lien of the Mortgage, which lien is subject only to (a) the lien of current real property taxes, water charges, sewer rents and assessments due and payable but not yet delinquent; (b) covenants, conditions and restrictions, rights of way, easements and other matters of public record; (c) the exceptions (general and specific) and exclusions set forth in such Title Policy; (d) other matters to which like properties are commonly subject; (e) the rights of tenants (as tenants only) under leases (including subleases) pertaining to the related Mortgaged Property and condominium declarations; (f) if the related Mortgage Loan constitutes a Cross-Collateralized Mortgage Loan, the lien of the Mortgage for another Mortgage Loan contained in the same Cross-Collateralized Group; and (g) if the related Mortgage Loan is part of a Whole Loan, the rights of the holders of the related Companion Loan pursuant to the related Co-Lender Agreement; provided that none of items (a) through (g), individually or in the aggregate, materially and adversely interferes with the value or current use of the Mortgaged Property or the security intended to be provided by such Mortgage or the Mortgagor’s ability to pay its obligations when they become due (collectively, the “Permitted Encumbrances”). Except as contemplated by clause (f) of the preceding sentence, none of the Permitted Encumbrances are mortgage liens that are senior to or coordinate and co-equal with the lien of the related Mortgage. Such Title Policy (or, if it has yet to be issued, the coverage to be provided thereby) is in full force and effect, all premiums thereon have been paid and no claims have been made by the Seller thereunder and no claims have been paid thereunder. Neither the Seller, nor to the Seller’s knowledge, any other holder of the Mortgage Loan, has done, by act or omission, anything that would materially impair the coverage under such Title Policy.

 

	
(7)

	
Junior Liens. It being understood that B notes secured by the same Mortgage as a Mortgage Loan are not subordinate mortgages or junior liens, except for any Mortgage Loan that is cross-collateralized and cross-defaulted with another Mortgage Loan, there are no subordinate mortgages or junior liens securing the payment of money encumbering the related Mortgaged Property (other than Permitted Encumbrances and the Title Exceptions, taxes and assessments, mechanics and materialmens liens (which are the subject of the representation in paragraph (5) above), and equipment and other personal property financing). Except as set forth on Exhibit B-30-1, the Seller has no knowledge of any mezzanine debt secured directly by interests in the related Mortgagor.

 

	
(8)

	
Assignment of Leases and Rents. There exists as part of the related Mortgage File an Assignment of Leases (either as a separate instrument or incorporated into the related 

 

  

B-3

  

 

	
 

	
Mortgage). Subject to the Permitted Encumbrances and the Title Exceptions, each related Assignment of Leases creates a valid first-priority collateral assignment of, or a valid first-priority lien or security interest in, rents and certain rights under the related lease or leases, subject only to a license granted to the related Mortgagor to exercise certain rights and to perform certain obligations of the lessor under such lease or leases, including the right to operate the related leased property, except as the enforcement thereof may be limited by the Standard Qualifications. The related Mortgage or related Assignment of Leases, subject to applicable law, provides that, upon an event of default under the Mortgage Loan, a receiver is permitted to be appointed for the collection of rents or for the related Mortgagee to enter into possession to collect the rents or for rents to be paid directly to the Mortgagee.

 

	
(9)

	
UCC Filings. If the related Mortgaged Property is operated as a hospitality property, the Seller has filed and/or recorded or caused to be filed and/or recorded (or, if not filed and/or recorded, submitted in proper form for filing and/or recording), UCC financing statements in the appropriate public filing and/or recording offices necessary at the time of the origination of the Mortgage Loan to perfect a valid security interest in all items of physical personal property reasonably necessary to operate such Mortgaged Property owned by such Mortgagor and located on the related Mortgaged Property (other than any non-material personal property, any personal property subject to a purchase money security interest, a sale and leaseback financing arrangement as permitted under the terms of the related Mortgage Loan documents or any other personal property leases applicable to such personal property), to the extent perfection may be effected pursuant to applicable law by recording or filing, as the case may be. Subject to the Standard Qualifications, each related Mortgage (or equivalent document) creates a valid and enforceable lien and security interest on the items of personalty described above. No representation is made as to the perfection of any security interest in rents or other personal property to the extent that possession or control of such items or actions other than the filing of UCC financing statements are required in order to effect such perfection.

 

	
(10)

	
Condition of Property. Seller or the originator of the Mortgage Loan inspected or caused to be inspected each related Mortgaged Property within six months of origination of the Mortgage Loan and within thirteen months of the Cut-Off Date.

 

An engineering report or property condition assessment was prepared in connection with the origination of each Mortgage Loan no more than thirteen months prior to the Cut-Off Date. To the Seller’s knowledge, based solely upon due diligence customarily performed in connection with the origination of comparable mortgage loans, as of the Closing Date, each related Mortgaged Property was free and clear of any material damage (other than deferred maintenance for which escrows were established at origination) that would affect materially and adversely the use or value of such Mortgaged Property as security for the Mortgage Loan.

 

	
(11)

	
Taxes and Assessments. All taxes, governmental assessments and other outstanding governmental charges (including, without limitation, water and sewage charges), or installments thereof, which could be a lien on the related Mortgaged Property that would 

 

  

B-4

  

 

	
 

	
be of equal or superior priority to the lien of the Mortgage and that prior to the Cut-Off Date have become delinquent in respect of each related Mortgaged Property have been paid, or an escrow of funds has been established in an amount sufficient to cover such payments and reasonably estimated interest and penalties, if any, thereon. For purposes of this representation and warranty, real estate taxes and governmental assessments and other outstanding governmental charges and installments thereof shall not be considered delinquent until the earlier of (a) the date on which interest and/or penalties would first be payable thereon and (b) the date on which enforcement action is entitled to be taken by the related taxing authority.

 

	
(12)

	
Condemnation. As of the date of origination and to the Seller’s knowledge as of the Cut-Off Date, there is no proceeding pending, and, to the Seller’s knowledge as of the date of origination and as of the Cut-Off Date, there is no proceeding threatened, for the total or partial condemnation of such Mortgaged Property that would have a material adverse effect on the value, use or operation of the Mortgaged Property.

 

	
(13)

	
Actions Concerning Mortgage Loan. As of the date of origination and to the Seller’s knowledge as of the Cut-Off Date, there was no pending or filed action, suit or proceeding, arbitration or governmental investigation involving any Mortgagor, guarantor, or Mortgagor’s interest in the Mortgaged Property, an adverse outcome of which would reasonably be expected to materially and adversely affect (a) such Mortgagor’s title to the Mortgaged Property, (b) the validity or enforceability of the Mortgage, (c) such Mortgagor’s ability to perform under the related Mortgage Loan, (d) such guarantor’s ability to perform under the related guaranty, (e) the principal benefit of the security intended to be provided by the Mortgage Loan documents or (f) the current principal use of the Mortgaged Property.

 

	
(14)

	
Escrow Deposits. All escrow deposits and payments required to be escrowed with Mortgagee pursuant to each Mortgage Loan are in the possession, or under the control, of the Seller or its servicer, and there are no deficiencies (subject to any applicable grace or cure periods) in connection therewith, and all such escrows and deposits (or the right thereto) that are required to be escrowed with Mortgagee under the related Loan Documents are being conveyed by the Seller to Depositor or its servicer.

 

	
(15)

	
No Holdbacks. The principal amount of the Mortgage Loan stated on the Mortgage Loan Schedule has been fully disbursed as of the Closing Date and there is no requirement for future advances thereunder (except in those cases where the full amount of the Mortgage Loan has been disbursed but a portion thereof is being held in escrow or reserve accounts pending the satisfaction of certain conditions relating to leasing, repairs or other matters with respect to the related Mortgaged Property, the Mortgagor or other considerations determined by Seller to merit such holdback).

 

	
(16)

	
Insurance. Each related Mortgaged Property is, and is required pursuant to the related Mortgage to be, insured by a property insurance policy providing coverage for loss in accordance with coverage found under a “special cause of loss form” or “all risk form” that includes replacement cost valuation issued by an insurer meeting the requirements of 

 

  

B-5

  

 

the related Loan Documents and having a claims-paying or financial strength rating of at least “A-:VIII” from A.M. Best Company or “A3” (or the equivalent) from Moody’s Investors Service, Inc. or “A-” from Standard & Poor’s Ratings Services (collectively the “Insurance Rating Requirements”), in an amount (subject to a customary deductible) not less than the lesser of (1) the original principal balance of the Mortgage Loan and (2) the full insurable value on a replacement cost basis of the improvements, furniture, furnishings, fixtures and equipment owned by the Mortgagor and included in the Mortgaged Property (with no deduction for physical depreciation), but, in any event, not less than the amount necessary or containing such endorsements as are necessary to avoid the operation of any coinsurance provisions with respect to the related Mortgaged Property.

 

Each related Mortgaged Property is also covered, and required to be covered pursuant to the related Loan Documents, by business interruption or rental loss insurance which (subject to a customary deductible) covers a period of not less than 12 months (or with respect to each Mortgage Loan on a single asset with a principal balance of $50 million or more, 18 months).

 

If any material part of the improvements, exclusive of a parking lot, located on a Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as a “Special Flood Hazard Area,” the related Mortgagor is required to maintain insurance in the maximum amount available under the National Flood Insurance Program.

 

If the Mortgaged Property is located within 25 miles of the coast of the Gulf of Mexico or the Atlantic coast of Florida, Georgia, South Carolina or North Carolina, the related Mortgagor is required to maintain coverage for windstorm and/or windstorm related perils and/or “named storms” issued by an insurer meeting the Insurance Rating Requirements or endorsement covering damage from windstorm and/or windstorm related perils and/or named storms.

 

The Mortgaged Property is covered, and required to be covered pursuant to the related Loan Documents, by a commercial general liability insurance policy issued by an insurer meeting the Insurance Rating Requirements including coverage for property damage, contractual damage and personal injury (including bodily injury and death) in amounts as are generally required by prudent institutional commercial mortgage lenders, and in any event not less than $1 million per occurrence and $2 million in the aggregate.

 

An architectural or engineering consultant has performed an analysis of each of the Mortgaged Properties located in seismic zones 3 or 4 in order to evaluate the structural and seismic condition of such property, for the sole purpose of assessing the scenario expected limit (“SEL”) for the Mortgaged Property in the event of an earthquake. In such instance, the SEL was based on a 475-year return period, an exposure period of 50 years and a 10% probability of exceedance. If the resulting report concluded that the SEL would exceed 20% of the amount of the replacement costs of the improvements, earthquake insurance on such Mortgaged Property was obtained from an insurer rated at 

 

  

B-6

  

 

least “A:VIII” by A.M. Best Company or “A3” (or the equivalent) from Moody’s Investors Service, Inc. or “A-” by Standard & Poor’s Ratings Services in an amount not less than 100% of the SEL.

 

The Loan Documents require insurance proceeds in respect of a property loss to be applied either (a) to the repair or restoration of all or part of the related Mortgaged Property, with respect to all property losses in excess of 5% of the then outstanding principal amount of the related Mortgage Loan (or related Whole Loan), the Mortgagee (or a trustee appointed by it) having the right to hold and disburse such proceeds as the repair or restoration progresses, or (b) to the payment of the outstanding principal balance of such Mortgage Loan together with any accrued interest thereon.

 

All premiums on all insurance policies referred to in this section required to be paid as of the Cut-Off Date have been paid, and such insurance policies name the Mortgagee under the Mortgage Loan and its successors and assigns as a loss payee under a mortgagee endorsement clause or, in the case of the general liability insurance policy, as named or additional insured. Such insurance policies will inure to the benefit of the Trustee. Each related Mortgage Loan obligates the related Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the Mortgagee to maintain such insurance at the Mortgagor’s reasonable cost and expense and to charge such Mortgagor for related premiums. All such insurance policies (other than commercial liability policies) require at least 10 days’ prior notice to the Mortgagee of termination or cancellation arising because of nonpayment of a premium and at least 30 days prior notice to the Mortgagee of termination or cancellation (or such lesser period, not less than 10 days, as may be required by applicable law) arising for any reason other than non-payment of a premium and no such notice has been received by Seller.

 

	
(17)

	
Access; Utilities; Separate Tax Lots. Each Mortgaged Property (a) is located on or adjacent to a public road and has direct legal access to such road, or has access via an irrevocable easement or irrevocable right of way permitting ingress and egress to/from a public road, (b) is served by or has uninhibited access rights to public or private water and sewer (or well and septic) and all required utilities, all of which are appropriate for the current use of the Mortgaged Property, and (c) constitutes one or more separate tax parcels which do not include any property which is not part of the Mortgaged Property or is subject to an endorsement under the related Title Policy insuring the Mortgaged Property, or in certain cases, an application has been, or will be, made to the applicable governing authority for creation of separate tax lots, in which case the Mortgage Loan requires the Mortgagor to escrow an amount sufficient to pay taxes for the existing tax parcel of which the Mortgaged Property is a part until the separate tax lots are created.

 

	
(18)

	
No Encroachments. To Seller’s knowledge based solely on surveys obtained in connection with origination and the Mortgagee’s Title Policy (or, if such policy is not yet issued, a pro forma title policy, a preliminary title policy with escrow instructions or a “marked up” commitment) obtained in connection with the origination of each Mortgage Loan, all material improvements that were included for the purpose of determining the appraised value of the related Mortgaged Property at the time of the origination of such 

 

  

B-7

  

 

Mortgage Loan are within the boundaries of the related Mortgaged Property, except encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy. No improvements on adjoining parcels encroach onto the related Mortgaged Property except for encroachments that do not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy. No improvements encroach upon any easements except for encroachments the removal of which would not materially and adversely affect the value or current use of such Mortgaged Property or for which insurance or endorsements were obtained under the Title Policy.

 

	
(19)

	
No Contingent Interest or Equity Participation. No Mortgage Loan has a shared appreciation feature, any other contingent interest feature or a negative amortization feature or an equity participation by Seller.

 

	
(20)

	
REMIC. The Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code (but determined without regard to the rule in Treasury Regulations Section 1.860G-2(f)(2) that treats certain defective mortgage loans as qualified mortgages), and, accordingly, (A) the issue price of the Mortgage Loan to the related Mortgagor at origination did not exceed the non-contingent principal amount of the Mortgage Loan and (B) either: (a) such Mortgage Loan is secured by an interest in real property (including buildings and structural components thereof, but excluding personal property) having a fair market value (i) at the date the Mortgage Loan (or related Whole Loan) was originated at least equal to 80% of the adjusted issue price of the Mortgage Loan (or related Whole Loan) on such date or (ii) at the Closing Date at least equal to 80% of the adjusted issue price of the Mortgage Loan (or related Whole Loan) on such date, provided that for purposes hereof, the fair market value of the real property interest must first be reduced by (A) the amount of any lien on the real property interest that is senior to the Mortgage Loan and (B) a proportionate amount of any lien that is in parity with the Mortgage Loan; or (b) substantially all of the proceeds of such Mortgage Loan were used to acquire, improve or protect the real property which served as the only security for such Mortgage Loan (other than a recourse feature or other third-party credit enhancement within the meaning of Treasury Regulations Section 1.860G-2(a)(1)(ii)). If the Mortgage Loan was “significantly modified” prior to the Closing Date so as to result in a taxable exchange under Section 1001 of the Code, it either (x) was modified as a result of the default or reasonably foreseeable default of such Mortgage Loan or (y) satisfies the provisions of either sub-clause (B)(a)(i) above (substituting the date of the last such modification for the date the Mortgage Loan was originated) or sub-clause (B)(a)(ii), including the proviso thereto. Any prepayment premium and yield maintenance charges applicable to the Mortgage Loan constitute “customary prepayment penalties” within the meaning of Treasury Regulations Section 1.860G-1(b)(2). All terms used in this paragraph shall have the same meanings as set forth in the related Treasury Regulations.

 

	
(21)

	
Compliance with Usury Laws. The Mortgage Rate (exclusive of any default interest, late charges, yield maintenance charge, or prepayment premiums) of such Mortgage Loan 

 

  

B-8

  

 

complied as of the date of origination with, or was exempt from, applicable state or federal laws, regulations and other requirements pertaining to usury.

 

	
(22)

	
Authorized to do Business. To the extent required under applicable law, as of the Cut-Off Date or as of the date that such entity held the Mortgage Note, each holder of the Mortgage Note was authorized to originate, acquire and/or hold (as applicable) the Mortgage Note in the jurisdiction in which each related Mortgaged Property is located, or the failure to be so authorized does not materially and adversely affect the enforceability of such Mortgage Loan by the Trust.

 

	
(23)

	
Trustee under Deed of Trust. With respect to each Mortgage which is a deed of trust, as of the date of origination and, to the Seller’s knowledge, as of the Closing Date, a trustee, duly qualified under applicable law to serve as such, currently so serves and is named in the deed of trust or has been substituted in accordance with the Mortgage and applicable law or may be substituted in accordance with the Mortgage and applicable law by the related Mortgagee.

 

	
(24)

	
Local Law Compliance. To the Seller’s knowledge, based upon any of a letter from any governmental authorities, a legal opinion, an architect’s letter, a zoning consultant’s report, an endorsement to the related Title Policy, or other affirmative investigation of local law compliance consistent with the investigation conducted by the Seller for similar commercial and multifamily mortgage loans intended for securitization, there are no material violations of applicable zoning ordinances, building codes and land laws (collectively “Zoning Regulations”) with respect to the improvements located on or forming part of each Mortgaged Property securing a Mortgage Loan as of the date of origination of such Mortgage Loan (or related Whole Loan, as applicable) and as of the Cut-Off Date, other than those which (i) are insured by the Title Policy or a law and ordinance insurance policy or (ii) would not have a material adverse effect on the value, operation or net operating income of the Mortgaged Property. The terms of the Loan Documents require the Mortgagor to comply in all material respects with all applicable governmental regulations, zoning and building laws.

 

	
(25)

	
Licenses and Permits. Each Mortgagor covenants in the Loan Documents that it shall keep all material licenses, permits and applicable governmental authorizations necessary for its operation of the Mortgaged Property in full force and effect, and to the Seller’s knowledge based upon any of a letter from any government authorities or other affirmative investigation of local law compliance consistent with the investigation conducted by the Seller for similar commercial and multifamily mortgage loans intended for securitization, all such material licenses, permits and applicable governmental authorizations are in effect. The Mortgage Loan requires the related Mortgagor to be qualified to do business in the jurisdiction in which the related Mortgaged Property is located.

 

	
(26)

	
Recourse Obligations. The Loan Documents for each Mortgage Loan provide that such Mortgage Loan (a) becomes full recourse to the Mortgagor and guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated 

 

  

B-9

  

 

with the Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis) in any of the following events: (i) if any voluntary petition for bankruptcy, insolvency, dissolution or liquidation pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by the Mortgagor; (ii) Mortgagor or guarantor shall have colluded with (or, alternatively, solicited or caused to be solicited) other creditors to cause an involuntary bankruptcy filing with respect to the Mortgagor or (iii) voluntary transfers of either the Mortgaged Property or equity interests in Mortgagor made in violation of the Loan Documents; and (b) contains provisions providing for recourse against the Mortgagor and guarantor (which is a natural person or persons, or an entity distinct from the Mortgagor (but may be affiliated with the Mortgagor) that has assets other than equity in the related Mortgaged Property that are not de minimis), for losses and damages sustained by reason of Mortgagor’s (i) misappropriation of rents after the occurrence of an event of default under the Mortgage Loan; (ii) misappropriation of (A) insurance proceeds or condemnation awards or (B) security deposits or, alternatively, the failure of any security deposits to be delivered to Mortgagee upon foreclosure or action in lieu thereof (except to the extent applied in accordance with leases prior to a Mortgage Loan event of default); (iii) fraud or intentional material misrepresentation; (iv) breaches of the environmental covenants in the Loan Documents; or (v) commission of intentional material physical waste at the Mortgaged Property (but, in some cases, only to the extent there is sufficient cash flow generated by the related Mortgaged Property to prevent such waste).

 

	
(27)

	
Mortgage Releases. The terms of the related Mortgage or related Loan Documents do not provide for release of any material portion of the Mortgaged Property from the lien of the Mortgage except (a) a partial release, accompanied by principal repayment, of not less than a specified percentage at least equal to the lesser of (i) 110% of the related allocated loan amount of such portion of the Mortgaged Property and (ii) the outstanding principal balance of the Mortgage Loan, (b) upon payment in full of such Mortgage Loan, (c) upon a Defeasance defined in (32) below, (d) releases of out-parcels that are unimproved or other portions of the Mortgaged Property which will not have a material adverse effect on the underwritten value of the Mortgaged Property and which were not afforded any material value in the appraisal obtained at the origination of the Mortgage Loan and are not necessary for physical access to the Mortgaged Property or compliance with zoning requirements, or (e) as required pursuant to an order of condemnation or taking by a State or any political subdivision or authority thereof. With respect to any partial release under the preceding clauses (a) or (d), either: (x) such release of collateral (i) would not constitute a “significant modification” of the subject Mortgage Loan within the meaning of Treasury Regulations Section 1.860G-2(b)(2) and (ii) would not cause the subject Mortgage Loan to fail to be a “qualified mortgage” within the meaning of Section 860G(a)(3)(A) of the Code; or (y) the Mortgagee or servicer can, in accordance with the related Loan Documents, condition such release of collateral on the related Mortgagor’s delivery of an opinion of tax counsel to the effect specified in the immediately preceding clause (x). For purposes of the preceding clause (x), for all Mortgage Loans originated after December 6, 2010, if the fair market value of the real property constituting such Mortgaged Property after the release is not equal to at least 80% of the principal balance of the Mortgage Loan (or related Whole Loan) outstanding after the release, the 

 

  

B-10

  

 

Mortgagor is required to make a payment of principal in an amount not less than the amount required by the REMIC Provisions.

 

With respect to any partial release under the preceding clause (e), for all Mortgage Loans originated after December 6, 2010, the Mortgagor can be required to pay down the principal balance of the Mortgage Loan in an amount not less than the amount required by the REMIC Provisions and, to such extent, such amount may not be required to be applied to the restoration of the Mortgaged Property or released to the Mortgagor, if, immediately after the release of such portion of the Mortgaged Property from the lien of the Mortgage (but taking into account the planned restoration) the fair market value of the real property constituting the remaining Mortgaged Property is not equal to at least 80% of the remaining principal balance of the Mortgage Loan (or related Whole Loan).

 

No Mortgage Loan that is secured by more than one Mortgaged Property or that is cross-collateralized with another Mortgage Loan permits the release of cross-collateralization of the related Mortgaged Properties or a portion thereof, including due to partial condemnation, other than in compliance with the REMIC Provisions.

 

	
(28)

	
Financial Reporting and Rent Rolls. The Mortgage Loan documents for each Mortgage Loan require the Mortgagor to provide the owner or holder of the Mortgage with quarterly (other than for single-tenant properties) and annual operating statements, and quarterly (other than for single-tenant properties) rent rolls for properties that have leases contributing more than 5% of the in-place base rent and annual financial statements, which annual financial statements with respect to each Mortgage Loan with more than one Mortgagor are in the form of an annual combined balance sheet of the Mortgagor entities (and no other entities), together with the related combined statements of operations, members’ capital and cash flows, including a combining balance sheet and statement of income for the Mortgaged Properties on a combined basis.

 

	
(29)

	
Acts of Terrorism Exclusion. With respect to each Mortgage Loan over $20 million, the related special-form all-risk insurance policy and business interruption policy (issued by an insurer meeting the Insurance Rating Requirements) do not specifically exclude Acts of Terrorism, as defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (collectively referred to as “TRIA”), from coverage, or if such coverage is excluded, it is covered by a separate terrorism insurance policy. With respect to each other Mortgage Loan, the related special all-risk insurance policy and business interruption policy (issued by an insurer meeting the Insurance Rating Requirements) did not, as of the date of origination of the Mortgage Loan, and, to Seller’s knowledge, do not, as of the Cut-Off Date, specifically exclude Acts of Terrorism, as defined in TRIA, from coverage, or if such coverage is excluded, it is covered by a separate terrorism insurance policy. With respect to each Mortgage Loan, the related Loan Documents do not expressly waive or prohibit the Mortgagee from requiring coverage for Acts of Terrorism, as defined in TRIA, or damages related thereto; provided, however, that if TRIA or a similar or subsequent statute is not in effect, then, provided that terrorism insurance is commercially available, the Mortgagor under each Mortgage Loan is required to carry terrorism insurance, but in such event the Mortgagor 

 

  

B-11

  

 

shall not be required to spend more than the Terrorism Cap Amount on terrorism insurance coverage, and if the cost of terrorism insurance exceeds the Terrorism Cap Amount, the Mortgagor is required to purchase the maximum amount of terrorism insurance available with funds equal to the Terrorism Cap Amount. The “Terrorism Cap Amount” is the specified percentage (which is at least equal to 200%) of the amount of the insurance premium that is payable at such time in respect of the property and business interruption/rental loss insurance required under the related Loan Documents (without giving effect to the cost of terrorism and earthquake components of such casualty and business interruption/rental loss insurance).

 

	
(30)

	
Due on Sale or Encumbrance. Subject to specific exceptions set forth below, each Mortgage Loan contains a “due on sale” or other such provision for the acceleration of the payment of the unpaid principal balance of such Mortgage Loan if, without the consent of the holder of the Mortgage (which consent, in some cases, may not be unreasonably withheld) and/or complying with the requirements of the related Loan Documents (which provide for transfers without the consent of the Mortgagee which are customarily acceptable to prudent commercial and multifamily mortgage lending institutions lending on the security of property comparable to the related Mortgaged Property, including, without limitation, transfers of worn-out or obsolete furnishings, fixtures, or equipment promptly replaced with property of equivalent value and functionality and transfers by leases entered into in accordance with the Loan Documents), (a) the related Mortgaged Property, or any equity interest of greater than 50% in the related Mortgagor, is directly or indirectly pledged, transferred or sold, other than as related to (i) family and estate planning transfers or transfers upon death or legal incapacity, (ii) transfers to certain affiliates as defined in the related Loan Documents, (iii) transfers of less than, or other than, a controlling interest in the related Mortgagor, (iv) transfers to another holder of direct or indirect equity in the Mortgagor, a specific Person designated in the related Loan Documents or a Person satisfying specific criteria identified in the related Loan Documents, such as a qualified equityholder, (v) transfers of stock or similar equity units in publicly traded companies or (vi) a substitution or release of collateral within the parameters of paragraphs (27) and (32) herein or the exceptions thereto set forth on Exhibit C, or (vii) as set forth on Exhibit B-30-1 by reason of any mezzanine debt that existed at the origination of the related Mortgage Loan, or future permitted mezzanine debt as set forth on Exhibit B-30-2 or (b) the related Mortgaged Property is encumbered with a subordinate lien or security interest against the related Mortgaged Property, other than (i) any Companion Loan of any Mortgage Loan or any subordinate debt that existed at origination and is permitted under the related Loan Documents, (ii) purchase money security interests (iii) any Mortgage Loan that is cross-collateralized and cross-defaulted with another Mortgage Loan, as set forth on Exhibit B-30-3 or (iv) Permitted Encumbrances. The Mortgage or other Loan Documents provide that to the extent any Rating Agency fees are incurred in connection with the review of and consent to any transfer or encumbrance, the Mortgagor is responsible for such payment along with all other reasonable out-of-pocket fees and expenses incurred by the Mortgagee relative to such transfer or encumbrance.

 

  

B-12

  

 

	
(31)

	
Single-Purpose Entity. Each Mortgage Loan requires the Mortgagor to be a Single-Purpose Entity for at least as long as the Mortgage Loan is outstanding. Both the Loan Documents and the organizational documents of the Mortgagor with respect to each Mortgage Loan with a Cut-Off Date Principal Balance in excess of $5 million provide that the Mortgagor is a Single-Purpose Entity, and each Mortgage Loan with a Cut-Off Date Principal Balance of $20 million or more has a counsel’s opinion regarding non-consolidation of the Mortgagor. For this purpose, a “Single-Purpose Entity” shall mean an entity, other than an individual, whose organizational documents (or if the Mortgage Loan has a Cut-Off Date Principal Balance equal to $5 million or less, its organizational documents or the related Loan Documents) provide substantially to the effect that it was formed or organized solely for the purpose of owning and operating one or more of the Mortgaged Properties securing the Mortgage Loans and prohibit it from engaging in any business unrelated to such Mortgaged Property or Properties, and whose organizational documents further provide, or which entity represented in the related Loan Documents, substantially to the effect that it does not have any assets other than those related to its interest in and operation of such Mortgaged Property or Properties, or any indebtedness other than as permitted by the related Mortgage(s) or the other related Loan Documents, that it has its own books and records and accounts separate and apart from those of any other person (other than a Mortgagor for a Mortgage Loan that is cross-collateralized and cross-defaulted with the related Mortgage Loan), and that it holds itself out as a legal entity, separate and apart from any other person or entity.

 

	
(32)

	
Defeasance. With respect to any Mortgage Loan that, pursuant to the Loan Documents, can be defeased (a “Defeasance”), (i) the Loan Documents provide for defeasance as a unilateral right of the Mortgagor, subject to satisfaction of conditions specified in the Loan Documents; (ii) the Mortgage Loan cannot be defeased within two years after the Closing Date; (iii) the Mortgagor is permitted to pledge only United States “government securities” within the meaning of Treasury Regulations Section 1.860G-2(a)(8)(ii), the revenues from which will, in the case of a full Defeasance, be sufficient to make all scheduled payments under the Mortgage Loan when due, including the entire remaining principal balance on the maturity date (or on or after the first date on which payment may be made without payment of a yield maintenance charge or prepayment penalty), and if the Mortgage Loan permits partial releases of real property in connection with partial defeasance, the revenues from the collateral will be sufficient to pay all such scheduled payments calculated on a principal amount equal to a specified percentage at least equal to the lesser of (A) 110% of the allocated loan amount for the real property to be released and (B) the outstanding principal balance of the Mortgage Loan; (iv) the Mortgagor is required to provide a certification from an independent certified public accountant that the collateral is sufficient to make all scheduled payments under the Mortgage Note as set forth in (iii) above, (v) if the Mortgagor would continue to own assets in addition to the defeasance collateral, the portion of the Mortgage Loan secured by defeasance collateral is required to be assumed (or the Mortgagee may require such assumption) by a Single-Purpose Entity; (vi) the Mortgagor is required to provide an opinion of counsel that the Mortgagee has a perfected security interest in such collateral prior to any other claim or interest; and (vii) the Mortgagor is required to pay all rating agency fees associated with defeasance (if rating confirmation is a specific condition precedent thereto) and all other 

 

  

B-13

  

 

reasonable out-of-pocket expenses associated with defeasance, including, but not limited to, accountant’s fees and opinions of counsel.

 

	
(33)

	
Fixed Interest Rates. Each Mortgage Loan bears interest at a rate that remains fixed throughout the remaining term of such Mortgage Loan, except in situations where default interest is imposed.

 

	
(34)

	
Ground Leases. For purposes of this Exhibit B, a “Ground Lease” shall mean a lease creating a leasehold estate in real property where the fee owner as the ground lessor conveys for a term or terms of years its entire interest in the land and buildings and other improvements, if any, comprising the premises demised under such lease to the ground lessee (who may, in certain circumstances, own the building and improvements on the land), subject to the reversionary interest of the ground lessor as fee owner and does not include industrial development agency (IDA) or similar leases for purposes of conferring a tax abatement or other benefit.

 

With respect to any Mortgage Loan where the Mortgage Loan is secured by a leasehold estate under a Ground Lease in whole or in part, and the related Mortgage does not also encumber the related lessor’s fee interest in such Mortgaged Property, based upon the terms of the Ground Lease and any estoppel or other agreement received from the ground lessor in favor of Seller, its successors and assigns, Seller represents and warrants that:

 

	
  

	
(a)

	
The Ground Lease or a memorandum regarding such Ground Lease has been duly recorded or submitted for recordation in a form that is acceptable for recording in the applicable jurisdiction. The Ground Lease or an estoppel or other agreement received from the ground lessor permits the interest of the lessee to be encumbered by the related Mortgage and does not restrict the use of the related Mortgaged Property by such lessee, its successors or assigns in a manner that would materially adversely affect the security provided by the related Mortgage. No material change in the terms of the Ground Lease had occurred since the origination of the Mortgage Loan, except as reflected in any written instruments which are included in the related Mortgage File;

 

	
  

	
(b)

	
The lessor under such Ground Lease has agreed in a writing included in the related Mortgage File (or in such Ground Lease) that the Ground Lease may not be amended or modified, or canceled or terminated by agreement of lessor and lessee, without the prior written consent of the Mortgagee;

 

	
  

	
(c)

	
The Ground Lease has an original term (or an original term plus one or more optional renewal terms, which, under all circumstances, may be exercised, and will be enforceable, by either Mortgagor or the Mortgagee) that extends not less than 20 years beyond the stated maturity of the related Mortgage Loan, or 10 years past the stated maturity if such Mortgage Loan fully amortizes by the stated maturity (or with respect to a Mortgage Loan that accrues on an actual 360 basis, substantially amortizes);

 

  

B-14

  

 

	
  

	
(d)

	
The Ground Lease either (i) is not subject to any liens or encumbrances superior to, or of equal priority with, the Mortgage, except for the related fee interest of the ground lessor and the Permitted Encumbrances, or (ii) is subject to a subordination, non-disturbance and attornment agreement to which the Mortgagee on the lessor’s fee interest in the Mortgaged Property is subject;

 

	
  

	
(e)

	
The Ground Lease does not place commercially unreasonably restrictions on the identity of the Mortgagee and the Ground Lease is assignable to the holder of the Mortgage Loan and its successors and assigns without the consent of the lessor thereunder (provided that proper notice is delivered to the extent required in accordance with the Ground Lease), and in the event it is so assigned, it is further assignable by the holder of the Mortgage Loan and its successors and assigns without the consent of (but with prior notice to) the lessor;

 

	
  

	
(f)

	
The Seller has not received any written notice of material default under or notice of termination of such Ground Lease. To the Seller’s knowledge, there is no material default under such Ground Lease and no condition that, but for the passage of time or giving of notice, would result in a material default under the terms of such Ground Lease and to the Seller’s knowledge, such Ground Lease is in full force and effect as of the Closing Date;

 

	
  

	
(g)

	
The Ground Lease or ancillary agreement between the lessor and the lessee requires the lessor to give to the Mortgagee written notice of any default, and provides that no notice of default or termination is effective against the Mortgagee unless such notice is given to the Mortgagee;

 

	
  

	
(h)

	
The Mortgagee is permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the interest of the lessee under the Ground Lease through legal proceedings) to cure any default under the Ground Lease which is curable after the Mortgagee’s receipt of notice of any default before the lessor may terminate the Ground Lease;

 

	
  

	
(i)

	
The Ground Lease does not impose any restrictions on subletting that would be viewed as commercially unreasonable by a prudent commercial mortgage lender;

 

	
  

	
(j)

	
Under the terms of the Ground Lease, an estoppel or other agreement received from the ground lessor and the related Mortgage (taken together), any related insurance proceeds or the portion of the condemnation award allocable to the ground lessee’s interest (other than (i) de minimis amounts for minor casualties or (ii) in respect of a total or substantially total loss or taking as addressed in subpart (k)) will be applied either to the repair or to restoration of all or part of the related Mortgaged Property with (so long as such proceeds are in excess of the threshold amount specified in the related Loan Documents) the Mortgagee or a trustee appointed by it having the right to hold and disburse such proceeds as repair or restoration progresses, or to the payment of the outstanding principal balance of the Mortgage Loan, together with any accrued interest;

 

  

B-15

  

 

	
  

	
(k)

	
In the case of a total or substantially total taking or loss, under the terms of the Ground Lease, an estoppel or other agreement and the related Mortgage (taken together), any related insurance proceeds, or portion of the condemnation award allocable to the ground lessee’s interest in respect of a total or substantially total loss or taking of the related Mortgaged Property to the extent not applied to restoration, will be applied first to the payment of the outstanding principal balance of the Mortgage Loan, together with any accrued interest; and

 

	
  

	
(l)

	
Provided that the Mortgagee cures any defaults which are susceptible to being cured, the ground lessor has agreed to enter into a new lease with the Mortgagee upon termination of the Ground Lease for any reason, including rejection of the Ground Lease in a bankruptcy proceeding.

 

	
(35)

	
Servicing. The servicing and collection practices used by the Seller with respect to the Mortgage Loan have been, in all respects, legal and have met customary industry standards for servicing of commercial loans for conduit loan programs.

 

	
(36)

	
Origination and Underwriting. The origination practices of the Seller (or the related originator if the Seller was not the originator) with respect to each Mortgage Loan have been, in all material respects, legal and as of the date of its origination, such Mortgage Loan (or the related Whole Loan, as applicable) and the origination thereof complied in all material respects with, or was exempt from, all requirements of federal, state or local law relating to the origination of such Mortgage Loan; provided that such representation and warranty does not address or otherwise cover any matters with respect to federal, state or local law otherwise covered in this Exhibit B.

 

	
(37)

	
No Material Default; Payment Record. No Mortgage Loan has been more than 30 days delinquent, without giving effect to any grace or cure period, in making required debt service payments since origination, and as of the date hereof, no Mortgage Loan is more than 30 days delinquent (beyond any applicable grace or cure period) in making required payments as of the Closing Date. To the Seller’s knowledge, there is (a) no material default, breach, violation or event of acceleration existing under the related Mortgage Loan, or (b) no event (other than payments due but not yet delinquent) which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a material default, breach, violation or event of acceleration, which default, breach, violation or event of acceleration, in the case of either (a) or (b), materially and adversely affects the value of the Mortgage Loan or the value, use or operation of the related Mortgaged Property, provided, however, that this representation and warranty does not cover any default, breach, violation or event of acceleration that specifically pertains to or arises out of an exception scheduled to any other representation and warranty made by the Seller in this Exhibit B (including, but not limited to, the prior sentence). No person other than the holder of such Mortgage Loan may declare any event of default under the Mortgage Loan or accelerate any indebtedness under the Loan Documents.

 

  

B-16

  

 

	
(38)

	
Bankruptcy. As of the date of origination of the related Mortgage Loan and to the Seller’s knowledge as of the Cut-Off Date, neither the Mortgaged Property (other than any tenants of such Mortgaged Property), nor any portion thereof, is the subject of, and no Mortgagor, guarantor or tenant occupying a single-tenant property is a debtor in state or federal bankruptcy, insolvency or similar proceeding.

 

	
(39)

	
Organization of Mortgagor. With respect to each Mortgage Loan, in reliance on certified copies of the organizational documents of the Mortgagor delivered by the Mortgagor in connection with the origination of such Mortgage Loan (or related Whole Loan, as applicable), the Mortgagor is an entity organized under the laws of a state of the United States of America, the District of Columbia or the Commonwealth of Puerto Rico. Except with respect to any Mortgage Loan that is cross-collateralized and cross-defaulted with another Mortgage Loan, no Mortgage Loan has a Mortgagor that is an affiliate of another Mortgagor.

 

	
(40)

	
Environmental Conditions. A Phase I environmental site assessment (or update of a previous Phase I and or Phase II site assessment) and, with respect to certain Mortgage Loans, a Phase II environmental site assessment (collectively, an “ESA”) meeting ASTM requirements were conducted by a reputable environmental consultant in connection with such Mortgage Loan within 12 months prior to its origination date (or an update of a previous ESA was prepared), and such ESA (i) did not identify the existence of recognized environmental conditions (as such term is defined in ASTM E1527-05 or its successor, hereinafter “Environmental Condition”) at the related Mortgaged Property or the need for further investigation, or (ii) if the existence of an Environmental Condition or need for further investigation was indicated in any such ESA, then at least one of the following statements is true: (A) an amount reasonably estimated by a reputable environmental consultant to be sufficient to cover the estimated cost to cure any material noncompliance with applicable Environmental Laws or the Environmental Condition has been escrowed by the related Mortgagor and is held or controlled by the related Mortgagee; (B) if the only Environmental Condition relates to the presence of asbestos-containing materials, radon in indoor air, lead based paint or lead in drinking water, the only recommended action in the ESA is the institution of such a plan, an operations or maintenance plan has been required to be instituted by the related Mortgagor that, based on the ESA, can reasonably be expected to mitigate the identified risk; (C) the Environmental Condition identified in the related environmental report was remediated or abated in all material respects prior to the date hereof, and, if and as appropriate, a no further action or closure letter was obtained from the applicable governmental regulatory authority (or the environmental issue affecting the related Mortgaged Property was otherwise listed by such governmental authority as “closed” or a reputable environmental consultant has concluded that no further action is required); (D) an environmental policy or a lender’s pollution legal liability insurance policy meeting the requirements set forth below that covers liability for the identified circumstance or condition was obtained from an insurer rated no less than A- (or the equivalent) by Moody’s Investors Service, Inc., Standard & Poor’s Ratings Services and/or Fitch Ratings, Inc.; (E) a party not related to the Mortgagor was identified as the responsible party for such condition or circumstance and such responsible party has financial resources reasonably estimated to be adequate to 

 

  

B-17

  

 

address the situation; or (F) a party related to the Mortgagor having financial resources reasonably estimated to be adequate to address the situation is required to take action. To Seller’s knowledge, except as set forth in the ESA, there is no Environmental Condition (as such term is defined in ASTM E1527-05 or its successor) at the related Mortgaged Property.

 

	
(41)

	
Appraisal. The Mortgage File contains an appraisal of the related Mortgaged Property with an appraisal date within 6 months of the Mortgage Loan origination date, and within 12 months of the Closing Date. The appraisal is signed by an appraiser who is a Member of the Appraisal Institute (“MAI”) and, to the Seller’s knowledge, had no interest, direct or indirect, in the Mortgaged Property or the Mortgagor or in any loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan. Each appraiser has represented in such appraisal or in a supplemental letter that the appraisal satisfies the requirements of the “Uniform Standards of Professional Appraisal Practice” as adopted by the Appraisal Standards Board of the Appraisal Foundation. Each appraisal contains a statement, or is accompanied by a letter from the appraiser, to the effect that the appraisal was performed in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as in effect on the date such Mortgage Loan was originated.

 

	
(42)

	
Mortgage Loan Schedule. The information pertaining to each Mortgage Loan which is set forth in the Mortgage Loan Schedule attached as an exhibit to this Mortgage Loan Purchase Agreement is true and correct in all material respects as of the Cut-Off Date and contains all information required by the Pooling and Servicing Agreement to be contained therein.

 

	
(43)

	
Cross-Collateralization. No Mortgage Loan is cross-collateralized or cross-defaulted with any other Mortgage Loan that is outside the Mortgage Pool, except as set forth on Exhibit B-30-3.

 

	
(44)

	
Advance of Funds by the Seller. After origination, no advance of funds has been made by Seller to the related Mortgagor other than in accordance with the Loan Documents, and, to Seller’s knowledge, no funds have been received from any person other than the related Mortgagor or an affiliate for, or on account of, payments due on the Mortgage Loan (other than as contemplated by the Loan Documents, such as, by way of example and not in limitation of the foregoing, amounts paid by the tenant(s) into a Mortgagee-controlled lockbox if required or contemplated under the related lease or Loan Documents). Neither Seller nor any affiliate thereof has any obligation to make any capital contribution to any Mortgagor under a Mortgage Loan, other than contributions made on or prior to the date hereof.

 

	
(45)

	
Compliance with Anti-Money Laundering Laws. Seller has complied in all material respects with all applicable anti-money laundering laws and regulations, including without limitation the USA Patriot Act of 2001 with respect to the origination of the Mortgage Loan.

 

  

B-18

  

 

For purposes of these representations and warranties, “Mortgagee” shall mean the mortgagee, grantee or beneficiary under any Mortgage, any holder of legal title to any portion of any Mortgage Loan or, if applicable, any agent or servicer on behalf of such party.

 

For purposes of these representations and warranties, the phrases “the Seller’s knowledge” or “the Seller’s belief” and other words and phrases of like import shall mean, except where otherwise expressly set forth herein, the actual state of knowledge or belief of the Seller, its officers and employees directly responsible for the underwriting, origination, servicing or sale of the Mortgage Loans regarding the matters expressly set forth herein.

 

  

B-19

  

 

Exhibit B-30-1

 

List of Mortgage Loans with Current Mezzanine Debt

 

	
Loan #

	
 

Mortgage Loan

	
16

	
West Run Apartments

  

B-30-1-1

  

 

Exhibit B-30-2

 

List of Mortgage Loans with Permitted Mezzanine Debt

 

None.

 

  

B-30-2-1    

  

 

Exhibit B-30-3

 

List of Cross-Collateralized and Cross-Defaulted Mortgage Loans

 

None.

 

  

B-30-3-1

  

EXHIBIT C

EXCEPTIONS TO MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES

	 	
 

Representation

	 	
Mortgage Loan

	 	
Description of Exception

	 
	 	 	 	 	 	 	 	 
	 	(13) 	
Actions Concerning Mortgage Loan

	 	
River Oaks (No. 10)

	 	
The Mortgagor and Mortgaged Property are subject to pending litigation related to a construction lien claim in the alleged amount of approximately $1,009,850. The Mortgagor acquired the Mortgaged Property through foreclosure of a defaulted mortgage loan, and a construction lien claimant subsequently sought to vacate the foreclosure and the related discharge of its lien claim. Following an appeal by the claimant, the discharge of the construction lien claim was affirmed by an appellate court; however, the claimant may seek further appeals in order to reinstate the lien claim. In connection with origination, the sponsor provided a guaranty in connection with any losses to the lender as a result of the litigation related to the lien claim, and a reserve in the amount of $50,000 was funded at closing in connection certain costs related to the litigation. In addition, upon closing of the Mortgage Loan the Seller obtained a lender’s policy of title insurance that insures the valid first lien of the Mortgage Loan without any exceptions related to the pending litigation or discharged lien claim.

	 
	 	
 

(34)

	
 

Ground Leases

	 	
 

River Oaks (No. 10)

	 	
 

The Mortgage Loan is secured, in part, by Mortgagor’s fee simple interest in a portion of the Mortgaged Property and the Mortgagor’s interest as a lessee under a certain sovereignty submerged lands ground lease agreement with the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida. The leasehold interest of the Mortgagor described in the immediately preceding sentence relates to approximately 6,540 square feet of the Mortgaged Property and limits such portion of the Mortgaged Property to use as 10-slip docking facility. The ground lease expires in January 1, 2018 and does not contain the terms of provisions described in subsections (a) thru (e) or (g) thru (l) of Representation Number 34. No value was attributed to the leasehold portion of the Mortgaged Property in connection with the underwriting of the Mortgage Loan.

	 

  

C-1

  

 

EXHIBIT D

 

FORM OF OFFICER’S CERTIFICATE

 

Redwood Commercial Mortgage Corporation (“Seller”) hereby certifies as follows:

 

	
  

	
1.

	
All of the representations and warranties (except as set forth on Exhibit C) of the Seller under the Mortgage Loan Purchase Agreement, dated as of April 1, 2014 (the “Agreement”), between GS Mortgage Securities Corporation II, Seller and Redwood Trust, Inc., are true and correct in all material respects on and as of the date hereof (or as of such other date as of which such representation is made under the terms of Exhibit B to the Agreement) with the same force and effect as if made on and as of the date hereof (or as of such other date as of which such representation is made under the terms of Exhibit B to the Agreement).

 

	
  

	
2.

	
The Seller has complied in all material respects with all the covenants and satisfied all the conditions on its part to be performed or satisfied under the Agreement on or prior to the date hereof, and no event has occurred which would constitute a default on the part of the Seller under the Agreement.

 

	
  

	
3.

	
Neither the Prospectus, dated March 21, 2014 (the “Base Prospectus”), as supplemented by the Prospectus Supplement, dated March 31, 2014 (the “Prospectus Supplement” and, together with the Base Prospectus, the “Prospectus”), relating to the offering of the Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-AB, Class X-A, Class X-B, Class A-S, Class B, Class PEZ and Class C Certificates, nor the Offering Circular, dated March 28, 2014 (the “Offering Circular”), relating to the offering of the Class X-C, Class X-D, Class D, Class E, Class F, Class G, Class H and Class R Certificates, in the case of the Prospectus, as of the date of the Prospectus Supplement or as of the date hereof, or the Offering Circular, as of the date thereof or as of the date hereof, included or includes any untrue statement of a material fact relating to the Mortgage Loans, the related Mortgaged Properties and/or the Seller or omitted or omits to state therein a material fact relating to the Mortgage Loans, the related Mortgaged Properties and/or the Seller required to be stated therein or necessary in order to make the statements therein relating to the Mortgage Loans, the related Mortgaged Properties and/or the Seller, in the light of the circumstances under which they were made, not misleading.

 

Capitalized terms used herein without definition have the meanings given them in the Agreement or, if not defined therein, in the Indemnification Agreement.

 

  

D-1

  

 

[SIGNATURE APPEARS ON THE FOLLOWING PAGE]

 

  

D-2

  

 

Certified this __ day of April, 2014.

	 	 
	 	
REDWOOD COMMERCIAL MORTGAGE CORPORATION

	 	 	 
	
 

	
By: 

	 
	 	 	Name: 
	 	 	Title:
	 	 	 

	 	
REDWOOD TRUST, INC.

	 	 	 
	
 

	
By: 

	 
	 	 	Name: 
	 	 	Title:

 

  

D-3Unassociated Document

Exhibit 10.6

 

 

EXECUTION VERSION

 

 

 

 

 

AMENDED AND RESTATED

 

SUBSERVICING AGREEMENT

 

between

 

KEYCORP REAL ESTATE CAPITAL MARKETS, INC.

 

and

 

BERKADIA COMMERCIAL MORTGAGE LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

Amended & Restated Master Subservicing Agreement

 

  

  

  

 

EXECUTION VERSION

 

TABLE OF CONTENTS

	  	  	  	  
	
ARTICLE I. DEFINITIONS

	  	
2

	 	 	 	 
	
Section 1.01.

	
Defined Terms

	  	
2

	  	  	  	  
	
Section 1.02.

	
Interpretative Matters

	  	
7

	  	  	  	  
	
ARTICLE II. RETENTION AND AUTHORITY OF SUBSERVICER

	  	
7

	  	  	  
	
Section 2.01.

	
Servicing Standard; Commencement of Servicing Responsibilities

	  	
7

	  	  	  	  
	
Section 2.02.

	
Subcontractors and Vendors

	  	
7

	  	  	  	  
	
Section 2.03.

	
Authority of Subservicer

	  	
8

	  	  	  	  
	
ARTICLE III. SERVICES TO BE PERFORMED

	  	
9

	  	  	  
	
Section 3.01.

	
Services as Subservicer

	  	
9

	  	  	  	  
	
Section 3.02.

	
Portfolio Manager

	  	
15

	  	  	  	  
	
Section 3.03.

	
Maintenance of Errors and Omissions and Fidelity Coverage

	  	
15

	  	  	  	  
	
Section 3.04.

	
Delivery and Possession of Servicing Files

	  	
16

	  	  	  	  
	
Section 3.05.

	
Financial Statements of the Subservicer

	  	
16

	  	  	  	  
	
Section 3.06.

	
Exchange Act Reporting and Regulation AB Compliance

	  	
16

	  	  	  	  
	
Section 3.07.

	
Regulatory Oversight, Compliance and Privacy

	  	
21

	  	  	  	  
	
ARTICLE IV. SUBSERVICER’S COMPENSATION AND EXPENSES

	  	
24

	  	  	  
	
Section 4.01.

	
Subservicing Compensation

	  	
24

	  	  	  	  
	
Section 4.02.

	
Inflation Adjustment

	  	
25

	  	  	  	  
	
Section 4.03.

	
Annual True-up of Floor Component Amount

	  	
25

	  	  	  	  
	
ARTICLE V. KRECM AND THE SUBSERVICER

	  	
25

	  	  	  
	
Section 5.01.

	
Subservicer Not to Assign; Merger or Consolidation of the Subservicer

	  	
25

	  	  	  	  
	
Section 5.02.

	
Liability and Indemnification of the Subservicer and KRECM

	  	
26

	  	  	  	  
	
Section 5.03.

	
Representations and Warranties

	  	
28

	  	  	  	  
	
ARTICLE VI. EVENTS OF DEFAULT; TERMINATION

	  	
31

	  	  	  
	
Section 6.01.

	
Events of Default

	  	
31

 

Amended & Restated Master Subservicing Agreement

 

  

i

  

 

EXECUTION VERSION

	  	  	  	  
	
Section 6.02.

	
Termination of Agreement

	  	
34

	  	  	  	  
	
ARTICLE VII. MISCELLANEOUS PROVISIONS

	  	
35

	  	  	  
	
Section 7.01.

	
Amendment; Amendment to any PSA

	  	
35

	  	  	  	  
	
Section 7.02.

	
Governing Law

	  	
35

	  	  	  	  
	
Section 7.03.

	
Notices

	  	
36

	  	  	  	  
	
Section 7.04.

	
Consistency with PSAs; Severability of Provisions

	  	
37

	  	  	  	  
	
Section 7.05.

	
Inspection and Audit Rights

	  	
37

	  	  	  	  
	
Section 7.06.

	
Binding Effect; No Partnership; Counterparts

	  	
38

	  	  	  	  
	
Section 7.07.

	
Protection of Confidential Information

	  	
38

	  	  	  	  
	
Section 7.08.

	
Construction

	  	
38

	  	  	  	  
	
Section 7.09.

	
Sole and Absolute Discretion of KRECM

	  	
39

	  	  	  	  
	
Section 7.10.

	
Exchange Act Rule 17g-5 Procedures

	  	
39

 

LIST OF EXHIBITS

	 	 
	Exhibit A	CMBS Transactions
	Exhibit B	Remittance Report
	Exhibit C	Property Inspection Report
	Exhibit D	Tax, Insurance, UCC and Letter of Credit Certification
	Exhibit E	Account Certification
	Exhibit F	Sarbanes-Oxley Performance Certification
	Exhibit G	Task List
	Exhibit H	Acknowledgment Agreement
	Exhibit I	Transfer Instructions
	Exhibit J	Officer’s Certificate

 

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AMENDED AND RESTATED

 

SUBSERVICING AGREEMENT

 

THIS AMENDED AND RESTATED SUBSERVICING AGREEMENT (as it may be further amended, supplemented or modified, this “Agreement”), dated and effective as of January 18, 2013 by and between KEYCORP REAL ESTATE CAPITAL MARKETS, INC., an Ohio corporation (together with its successors and assigns permitted under this Agreement, “KRECM”), and BERKADIA COMMERCIAL MORTGAGE LLC, a Delaware limited liability company (together with its successors and assigns permitted under this Agreement, the “Subservicer”).

 

RECITALS

 

The following Recitals are a material part of this Agreement:

 

A.           Pursuant to each Pooling and Servicing Agreement (each a “PSA”) for the applicable commercial mortgage-backed securitization transaction listed on Exhibit A, KRECM services and administers the Mortgage Loans (as defined below) on behalf of the Trust (as defined in each PSA).

 

B.           KRECM and the Subservicer entered into a Subservicing Agreement on March 30, 2012 (the “Original Agreement”), whereby the Subservicer was engaged to perform certain of KRECM’s servicing responsibilities under each PSA with respect to the Mortgage Loans as more specifically set forth in this Agreement.

 

C.           KRECM engaged the Subservicer pursuant to the  Original Agreement because the Subservicer is the third largest servicer of commercial mortgage-backed securitization transactions in the United States and is uniquely suited with respect to its staff, facilities, and expertise to provide the services required by KRECM of a subservicer to service the large volume of commercial mortgage loans on the scale and in the context and under the circumstances contemplated by this Agreement.

 

D.           Subsequently, KRECM and Subservicer entered into an Interim Agreed Upon Procedures Memorandum (the “Memorandum”) dated as of June 22, 2012, to provide for modifications to the Original Agreement through the execution of the Memorandum and one or more Services Confirmations.

 

E.           On July 17, 2012, KRECM and Subservicer entered into a Services Confirmation (the “Confirmation”) which served to clarify certain processes and procedures with respect to the duties set forth in the Original Agreement;

 

F.           Whereas, in order to consolidate the Original Agreement and the Confirmation into a singular document and to effectuate certain further amendments to the Original Agreement, KRECM and Subservicer desire to restate and replace the Original Agreement and Confirmation entirely pursuant to this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, KRECM and the Subservicer hereby agree as follows:

 

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ARTICLE I.

 

DEFINITIONS

 

Section 1.01.     Defined Terms.

 

All capitalized terms not otherwise defined in this Agreement have the meanings set forth in the applicable PSA, or the respective meaning ascribed to equivalent terms utilized in such PSA, and the following capitalized terms have the respective meanings set forth below:

 

“Accepted Subservicing Practices”: As defined in Section 2.01.

 

“Accounts”: The applicable Subservicer Collection Account and Servicing Accounts maintained by the Subservicer under this Agreement, each of which shall be held in the name of “Berkadia Commercial Mortgage LLC on behalf of KeyCorp Real Estate Capital Markets, Inc., as Master Servicer, in trust for the Trustee, as trustee for the registered holders of the applicable Trust [securitization name], together with the Servicing Fee Account and the Ancillary Fee Account.”

 

“Acknowledgment Agreement”: The agreement in the form attached hereto as Exhibit H acknowledging commencement of servicing with respect to those Legacy Mortgage Loans and Future Mortgage Loans listed on the Schedule attached thereto.

 

“Additional Form 10-D Disclosure”: To the extent such is required in the applicable transaction, any disclosure in addition to the Distribution Date statement that is required to be included on any Form 10-D filed with the Commission in respect of the Trust.

 

“Additional Form 10-K Disclosure”: To the extent such is required in the applicable transaction, any disclosure or information that is required to be included on any Form 10-K filed with the Commission in respect of the Trust and required to be disclosed by Subservicer pursuant to the applicable PSA.

 

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

 

“Agreement”: This Subservicing Agreement, as amended, modified, supplemented or restated by the parties from time to time.

 

“AML/BSA”:  The Anti-Money Laundering and Bank Secrecy Act.

 

“Ancillary Fee Account”: An account established by Subservicer into which all Borrower Paid Fees payable to KRECM pursuant to the PSA with respect to the Mortgage Loans are deposited as set forth in Section 3.01(r).

 

“Ancillary Fee Compensation”: As additional servicing compensation, Subservicer shall receive an amount equal to the greater of (1) the Floor Component Amount or (2) 33.3% of all annual Borrower Paid Fees earned and collected on all of the Mortgage Loans, but only to the extent that KRECM is entitled to receive such amounts pursuant to the applicable PSA.  Ancillary Fee Compensation shall be subject to adjustment pursuant to Section 4.03.

 

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“Ancillary True-Up Payment”: The payment calculated and due to Subservicer as provided in Section 4.03.

 

“Annual True-up Deficiency”: As defined in Section 4.03.

 

“Applicable Requirements”:  As of the time of reference, with respect to the subject matter of this Agreement, all of the following: (i) any federal, state or local constitution, statute, rule, regulation or similar legal requirement applicable to the subservicing of commercial mortgage loans or any related activity; and (ii) Accepted Subservicing Practices.

 

“Base CPI Amount”:  The Base Legacy Servicing Compensation, the Base Future Servicing Compensation or Floor Component Amount in effect on March 31, 2013 and March 31 of each calendar year thereafter.

 

“Base Future Servicing Compensation”:  For each Future Mortgage Loan, a servicing fee equal to $1,190 per annum, as provided in Section 4.01 and subject to annual increase as provided in Section 4.02.  Base Future Servicing Compensation will be payable monthly in an amount equal to one twelfth of the applicable per annum rate described above multiplied by the number of applicable Mortgage Loans being serviced pursuant to this Agreement at the end of each calendar month.

 

“Base Legacy Servicing Compensation”:  For each Legacy Mortgage Loan, a servicing fee equal to $1,290 per annum, as provided in Section 4.01 and subject to annual increase as provided in Section 4.02.  Base Legacy Servicing Compensation will be payable monthly in an amount equal to one twelfth of the applicable per annum rate described above multiplied by the number of applicable Mortgage Loans being serviced pursuant to this Agreement at the end of each calendar month.

 

“Borrower”:  The borrower, mortgagor or obligor on the related Mortgage Loan note.

 

“Borrower Paid Fees”:  Any amount collected from a borrower including but not limited to late payment charges, assumption fees, assumption application fees, modification fees, extension fees, fees charged for prepayment, defeasance, lease reviews and any other application fees.

 

“Calculation Notice”:  As defined in Section 4.03.

 

“Commission”: The Securities and Exchange Commission or any successor thereto.

 

“CPI Adjustment”: An adjustment of the Base Legacy Servicing Compensation, Base Future Servicing Compensation and the Floor Component Amount commencing on April 1, 2013 and continuing on April 1 of each calendar year thereafter in an amount equal to the sum of (I) the Base CPI Amount and (II) an amount equal to the product of (A) the Base CPI Amount, multiplied by (B) a fraction (x) the numerator of which is the Consumer Price Index for the month of March in the calendar year in which such adjustment is being made, and (y) the denominator of which is the Consumer Price Index for the month of March in the calendar year prior to the calendar year in which such adjustment is being made.

 

“Consumer Price Index”: The Consumer Price Index for all Urban Consumers published by the Bureau of Labor Statistics of the United States Department of Labor, All Items, US City Average, all urban consumers (presently denominated as “CPI-U”, or a successor index, appropriately adjusted; provided, however, that (i) if there shall be no successor index, a substitute index shall be reasonably selected by Subservicer, and (ii) if the Consumer Price Index ceases to use 1982-84=100 as the basis of calculation, or if a substantial change is made in the terms or the number of items contained in the Consumer Price Index, then, in either case, the Consumer Price Index will be reasonably adjusted to the

 

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figure that would have been arrived at had the manner of computing the Consumer Price Index as of the date of this Agreement not been altered.

 

“Customer Information”:  Nonpublic personally identifiable information with respect to any Mortgage Loan, including but not limited to the borrower under such Mortgage Loan and any principle of such borrower or any guarantor of such Mortgage Loan.

 

“Defect”: As set forth in the applicable PSA, shall include any document defect, breach of representation or warranty by any seller of a Mortgage Loan, Repurchase Request or Repurchase Request Withdrawal.

 

“EDGAR”: The Electronic Data Gathering, Analysis, and Retrieval System of the Commission, which is the computer system for the receipt, acceptance, review and dissemination of documents submitted to the Commission in electronic format.

 

 “Effective Date”: With respect to the Legacy Mortgage Loans and Future Mortgage Loans, the date of the execution of the Acknowledgment Agreement in the form attached hereto as Exhibit H with respect to such Mortgage Loans.

 

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

 

“Floor Component Amount”: An amount equal to $300 per annum per Mortgage Loan, payable monthly based on the number of Mortgage Loans serviced as of the last day of such applicable month as provided in Section 4.01(b) and subject to increase pursuant to Section 4.02

 

“Form 8-K Disclosure Information”: To the extent such is required in any PSA, any disclosure or information related to a Reportable Event or that is otherwise required to be included on any Form 8-K filed with the Commission in respect of the Trust.

 

“Future CMBS Transactions”: Moody’s rated commercial mortgage-backed securities transactions which become subject to this Agreement after the date hereof.

 

“Future Mortgage Loan”: Each Mortgage Loan in a Future CMBS Transaction.

 

“Legacy CMBS Transactions”: The Moody’s rated commercial mortgage-backed securities transactions listed on Exhibit A.

 

“Legacy Mortgage Loan”: Each Mortgage Loan in a Legacy CMBS Transaction.

 

“Mortgage Loan”: Each of the mortgage loans that are the subject of this Agreement pursuant to an Acknowledgment Agreement and that are subject to a Legacy CMBS Transaction or Future CMBS Transaction.

 

“OCC”: The Office of the Comptroller of the Currency.

 

“OFAC”:  The Office of Foreign Assets Control.

 

“OFAC Program”: As defined in Section 3.06(d) of this Agreement.

 

“Officer’s Certificate”: A certificate signed by a Servicing Officer of the Subservicer

 

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

 

“Property Inspection Report”: A written report of each inspection of a Mortgaged Property performed by the Subservicer, which shall be delivered electronically pursuant to this Agreement substantially in the form attached hereto as Exhibit C (or in such other form as may be reasonably acceptable to KRECM and the Subservicer) and, in any event, shall set forth in detail the condition of the subject Mortgaged Property and specify the occurrence or existence of any sale, transfer or abandonment of, any change in the condition, occupancy or value of, or any waste committed on, the subject Mortgaged Property of which the Subservicer is aware.

 

“PSA”: As defined in the Recitals to this Agreement.

 

“Qualified Auditor”: All state and federal governmental entities, or an independent third party professional who is not a competitor of Subservicer and who is trained, experienced and qualified to conduct an audit of Subservicer’s OFAC Program and/or AML/BSA Services.

 

“Regulation AB”: Subpart 229.1100 – Asset-Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506-1,631 (Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time.

 

“Relevant Servicing Criteria”: The Servicing Criteria applicable to the Subservicer, which are those Servicing Criteria applicable to KRECM as set forth as an Exhibit to the applicable PSA that the Subservicer has agreed to undertake pursuant to this Agreement as set forth on the Task List.  With respect to any Servicing Function Participant or other subservicer engaged by the Subservicer, the term “Relevant Servicing Criteria” refers to the items of the Relevant Servicing Criteria applicable to the Subservicer that engaged such Servicing Function Participant or other subservicer that are applicable to such Servicing Function Participant or other subservicer based on the functions it has been engaged to perform.

 

“Remittance Report”: A written report regarding any remittance made pursuant to the terms and provisions of this Agreement, which report shall be delivered electronically pursuant to this Agreement substantially in the form attached hereto as Exhibit B (or in such other form as may be reasonably acceptable to KRECM and the Subservicer).

 

“Reportable Event”: The occurrence of an event requiring disclosure under Form 8-K.

 

“Responsible Officer”: Any officer or employee of the Subservicer or KRECM, as the case may be, involved in or responsible for the administration, supervision or management of this Agreement and whose name and specimen signature appear on a list prepared by each party and delivered to the other party, as such list may be amended from time to time by either party.

 

“Restricted Servicing Action”: As defined in Section 2.02(a).

 

“Sarbanes-Oxley Certification”: To the extent such is required pursuant to the applicable PSA as defined in the applicable PSA.

 

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“Securitization Servicing Agreements”: With respect to each Mortgage Loan, the related PSA, primary servicing agreement, sub-servicing agreement or other similar agreement pursuant to which such Mortgage Loan is serviced by KRECM.

 

“Security Breach”:  Any intrusion, security breach, or unauthorized access to or use of any personally identifiable information, including, but not limited to, Customer Information in the possession of Subservicer or that of its service providers.

 

“Servicing Advance”:  Any “servicing advance,” “property advance” or other similar term as defined in the applicable PSA, excluding any T&I Advances.

 

“Servicing Accounts”: The account or accounts maintained by the Subservicer, other than the Subservicer Collection Account, Servicing Fee Account and Ancillary Fee Account, pursuant to the applicable PSA, which may include any escrow accounts, reserve accounts, lock-box accounts and/or cash collateral accounts.

 

“Servicing Criteria”: The criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such may be amended from time to time.

 

“Servicing Fee”: Any amounts payable on the Mortgage Loans pursuant to the related PSA as the monthly fee payable to KRECM.

 

“Servicing Fee Account”: An account established by Subservicer into which all Servicing Fees payable to KRECM pursuant to each PSA are deposited as set forth in Section 3.01(k).

 

“Servicing Officer”: Any officer and/or employee of the Subservicer involved in, or responsible for, the administration and servicing of the Mortgage Loans, whose name and specimen signature appear on a list of servicing officers furnished by the Subservicer to KRECM on the Effective Date, as such list may be amended from time to time thereafter.

 

“SSAE 16”:  The Statements on Standards for Attest Engagements written by the American Institute of Certified Public Accountants, Service Organization Control (SOC) level 1 report.

 

“Subservicer Event of Default”: As defined in Section 6.01.

 

“Subservicer”: As defined in the first paragraph of this Agreement.

 

“Subservicer Collection Account”: As defined in Section 3.01(a)(v).

 

“Subservicer Remittance Date”:  The Business Day immediately preceding the applicable master servicer’s remittance date under the applicable PSA.

 

“Subservicing File”: With respect to each Mortgage Loan, all documents, information and records relating to such Mortgage Loan that are necessary or appropriate to enable the Subservicer to perform its obligations under this Agreement and any additional documents or information related thereto maintained or created in any form by the Subservicer, including all analysis, working papers, inspections reports, written communications with any Borrower or other Person, and all other information collected from or concerning any Borrower or the related Mortgaged Property in the Subservicer’s possession.

 

“T&I Advances”:  any advances representing real estate taxes or insurance premiums (to the extent required in the SSA, including renewal payments).

 

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 “Task List”:  The list of Subservicer responsibilities set forth on Exhibit G.

 

“Tax, Insurance, UCC and Letter of Credit Certification”: A written report certifying for the applicable quarterly period that all property taxes and hazard insurance premiums that are due have been paid in full, that all UCC liens, assignments or continuations are current and that all letters of credit are current, which report shall be delivered electronically pursuant to this Agreement substantially in the form attached hereto as Exhibit D (or in such other form as may be reasonably acceptable to KRECM and the Subservicer).

 

“Transfer Instructions”:  The instructions and process for transferring certain of the servicing responsibilities to the Subservicer, as set forth on Exhibit I.

 

“Trust”:  The trust created by each PSA.

 

Section 1.02.     Interpretative Matters.

 

For purposes of this Agreement, and except as otherwise expressly provided in this Agreement, all references in this Agreement to “KRECM” and all references to any compensation, fees, or other amounts payable to or by KRECM, any rights, duties or obligations of KRECM, or otherwise, shall be references to KRECM solely in its capacity as master servicer under the related PSA.  Notwithstanding anything to the contrary in this agreement, the Subservicer shall not be entitled to receive any portion of any compensation, fee or other amount that is payable to the Special Servicer under any Securitization Servicing Agreement or otherwise.  Subservicer’s servicing duties and obligations with respect to a specific Mortgage Loan shall be performed in accordance with the related PSA unless otherwise set forth in this Agreement.

 

ARTICLE II.

 

RETENTION AND AUTHORITY OF SUBSERVICER

 

Section 2.01.     Servicing Standard; Commencement of Servicing Responsibilities.

 

KRECM hereby engages the Subservicer to perform, and the Subservicer hereby agrees to perform, the servicing duties and obligations of the master servicer under each PSA with respect to the Mortgage Loans, beginning on each applicable Effective Date and continuing throughout the term of, subject to the Relevant Servicing Criteria, and otherwise upon and subject to the terms, covenants and provisions of, this Agreement.  Pools of mortgage loans will become “Mortgage Loans” and serviced pursuant to this Agreement from time to time pursuant to each Acknowledgement Agreement as of each applicable Effective Date.  The Subservicer shall service and administer each Mortgage Loan in accordance with the applicable “Servicing Standard” or “Accepted Servicing Practices” as set forth in each applicable PSA.  The above-described servicing standards are collectively referred to in this Agreement as “Accepted Subservicing Practices.”

 

Section 2.02.     Subcontractors and Vendors.

 

The Subservicer shall have full power and authority to enter into one or more agreements with Affiliates, subcontractors, vendors or other third parties for the performance of inspections, monitoring insurance and/or taxes, financial statement collection calls, UCC Financing Statements, appraisals, flood certifications, imaging, defeasance, satisfactions and legal; provided that the Subservicer may engage third parties for the underwriting of assumptions and modifications on a case-by-case basis, upon approval of KRECM.  Subservicer shall remain obligated and liable to KRECM for performing all such

 

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delegated duties in accordance with this Agreement without diminution of such obligation or liability by virtue of such delegation. The Subservicer shall be obligated to pay all fees and expenses of any Affiliates, subcontractors, vendors or other third parties out of its subservicing fee amounts.

 

Section 2.03.     Authority of Subservicer.

 

(a)           Except as otherwise provided in this Agreement and subject to the terms of this Agreement and KRECM’s limitations of authority as master servicer under the applicable PSA, in performing its obligations under this Agreement, the Subservicer shall have full power and authority to take any and all actions in connection with such obligations that it deems necessary or appropriate; provided, however, that the Subservicer shall not take any of the following actions (each, a “Restricted Servicing Action”) with respect to any Mortgage Loan without receiving the prior written consent of KRECM:

 

(i)           granting or withholding consent to, or the performance of, any defeasance of a Mortgage Loan in accordance with the applicable PSA;

 

(ii)           any consent, modification, waiver, amendment of, or with respect to, any Mortgage Loan, whether or not material, including but not limited to any forgiveness of principal, any change in the amount or timing of any payment of principal or interest, maturity, extension rights or prepayment provisions or the substitution, full or partial release or addition of any collateral for any Mortgage Loan or the waiver of any late fees to the extent permitted in the applicable PSA, provided, however, that Subservicer may waive late fees without the prior written consent of KRECM based on the Memorandum of Understanding Regarding Late Fees between KRECM and Subservicer dated October 25, 2012, which may be revised from time to time;

 

(iii)         granting or withholding consent to any transfer of ownership of a Mortgaged Property or any transfer of any interest in any Borrower or any owner of a Mortgaged Property (including entering into any assumption agreement in connection therewith);

 

(iv)         granting or withholding consent to any request for approval to encumber a Borrower or Mortgaged Property with subordinate or other financing or to encumber any interest in any Borrower or any owner of a Mortgaged Property with mezzanine financing;

 

(v)          any action to initiate, prosecute and manage foreclosure proceedings or other legal proceedings related thereto in connection with any Mortgage Loan;

 

(vi)         with respect to any Mortgage Loan that is an ARD Mortgage Loan, after its Anticipated Repayment Date, taking any enforcement action (other than requests for collection) for the payment of, or the waiver of all or any portion of, the accrued Excess Interest;

 

(vii)        any termination or replacement, or consent to the termination or replacement, of a property manager with respect to any Mortgaged Property, or any termination or change, or consent to the termination or change, of the franchise affiliation with respect to any hospitality property that in whole or in part constitutes any Mortgaged Property;

 

(viii)       approving or granting any consent to leasing activity (including any subordination, non-disturbance and attornment agreement) with respect to any Mortgaged Property (but not including confirmations that a lease does not require consent), provided, however, if the consent of any third party other than the Master Servicer, KRECM, is not required under the PSA, then Subservicer may approve or consent, without KRECM’s prior written consent, to a borrower’s

 

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requested leasing activity (including but not limited to approving the execution, termination or renewal of the applicable lease, subordination, non-disturbance and attornment agreement and/or other related documents);

 

(ix)          granting any consent to any request by a Borrower for approval to modify its organizational documents, excluding any amendments by the Borrower to modify its organizational documents in connection with any permitted transfers not requiring Lender’s consent, as determined in consultation with counsel; or

 

(x)           any determination with respect to a Mortgage Loan as to whether a default has occurred under the related Mortgage Loan Documents by reason of any failure on the part of the related Borrower to maintain insurance policies in accordance with the loan documents or Subservicer’s standard requirements.

 

With respect to any Restricted Servicing Action which under the applicable PSA is to be performed exclusively by the Special Servicer, the Subservicer shall deliver to KRECM the related Borrower’s request therefor and any other documents or information related thereto in its possession or otherwise reasonably requested by KRECM and the Subservicer shall not have any obligation to process such request or to obtain any consent or approval from the Special Servicer.  With respect to any Restricted Servicing Action which under the applicable PSA is to be performed by KRECM, the Subservicer shall not perform such action without obtaining the prior written consent of KRECM (which consent (x) may be in the form of an asset business plan approved in writing by KRECM and (y) shall be subject to the prior approval of the Special Servicer, any required Certificateholder, the Rating Agencies and any other Person if so required under the applicable PSA, which approvals shall be requested by KRECM).

 

(b)           Regardless of whether the consent or approval of KRECM is required pursuant to this Agreement, the Subservicer shall take or refrain from taking any action that KRECM directs in writing and relates to the Subservicer’s obligations under this Agreement; provided, however, that the Subservicer shall not be obligated to take or refrain from taking any such action to the extent that the Subservicer determines in its reasonable discretion that taking or refraining from taking such action may cause (i) a violation of applicable laws, court orders or restrictive covenants with respect to any Mortgage Loan or Mortgaged Property or (ii) a violation of any term or provision of the related Mortgage Loan documents.

 

ARTICLE III.

 

SERVICES TO BE PERFORMED

 

Section 3.01.     Services as Subservicer.

 

With respect to each Mortgage Loan, the Subservicer shall, in accordance with Accepted Subservicing Practices and subject to supervision by KRECM as set forth in this Agreement, perform the following servicing activities on behalf of KRECM as primary servicer, as follows:

 

(a)           The Subservicer shall, subject to the limitations and restrictions on its authority otherwise set forth in this Agreement and the PSAs, perform the duties and obligations with respect to the Mortgage Loans that KRECM is required to perform under the PSAs as modified, clarified or more specifically stated as follows:

 

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(i)           the Subservicer shall file a Uniform Commercial Code Financing Statement amendment continuing the effectiveness of each UCC Financing Statement filed with respect to each Mortgage Loan within six (6) months before (and not later than three (3) months before) the expiration of the five year period of effectiveness of such UCC Financing Statement, and shall deliver monthly reports of such UCC Financing Statement amendments to KRECM;

 

(ii)          the Subservicer shall provide KRECM with notice of any communication by the Borrower with respect to any related letter of credit provided by such Borrower;

 

(iii)         the Subservicer shall have no obligation to make principal and interest advances or Servicing Advances; provided that to the extent that KRECM retained the responsibility to make T&I Advances under the respective PSA, KRECM hereby delegates this responsibility to Subservicer.  In the event that Subservicer determines that such T&I Advance is necessary, the Subservicer shall make the T&I Advance as and when required.  For each T&I Advance made by Subservicer, Subservicer shall have the right to reimburse itself from funds collected from the applicable borrower, as permitted under the applicable PSA and the Subservicer shall be entitled to interest on any T&I Advance made with respect to a Mortgage Loan.  Such interest (“Advance Interest”) shall accrue at the “prime rate” published in the “Money Rates” section of The Wall Street Journal, as such “prime rate” may change from time to time, commencing from the date on which such T&I Advance was made to the Business Day on which the Subservicer is reimbursed for such T&I Advance pursuant to this Agreement.  In the event that Subservicer is unable to reimburse itself for a T&I Advance with Advance Interest by the fifth (5th) business day of the following month, Subservicer will send invoice for advances and Advance Interest to KRECM for reimbursement.  Within two (2) business days after KRECM’s receipt of a written request from Subservicer, KRECM will remit advance funds and Advance Interest to Subservicer.  As Subservicer receives funds from the borrower to repay the advance, Subservicer will, upon monthly investor reporting remittance, remit collected advance funds to KRECM.    All T&I Advance reimbursement notices delivered by Subservicer to KRECM or delivered by KRECM to Subservicer shall state the applicable loan servicing number, applicable escrow bucket, T&I Advance amounts due and owing;

 

(iv)        with respect to each Mortgage Loan, the Subservicer shall, consistent with Accepted Subservicing Practices and the Task List, monitor the related Borrower’s insurance obligations in accordance with PSA and the related Mortgage Loan documents, and in the event a Borrower fails to maintain such insurance, the Subservicer shall promptly (A) notify KRECM in writing of such Borrower’s failure to maintain such insurance and whether or not such insurance is required by the terms of the related Mortgage Loan documents, and (B) deliver to KRECM all documents and other information in Subservicer’s possession, and any additional information reasonably requested by KRECM, to assist KRECM in determining, among other things, whether or not such insurance is available at commercially reasonable rates; provided that the Subservicer shall not be required to maintain insurance coverage on any Mortgaged Property and KRECM shall notify the Subservicer of such determination within ten (10) Business Days after KRECM’s receipt of such request, notice or other requested information or KRECM shall be deemed to have approved force placed insurance coverage unless such action requires third party approval, in which case, the consent of KRECM and the third party is required; and (C) with the consent (or deemed consent) of KRECM and consistent with the Task List administer for forced place insurance as required by the applicable PSA;

 

(v)          the Subservicer shall establish a collection account (the “Subservicer Collection Account”) meeting all of the requirements of the collection account or certificate account (or such other similar term) maintained by KRECM under the applicable PSA for each Trust and shall deposit into the related Subservicer Collection Account, payments received from a Borrower or any

 

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other source as required pursuant to the applicable PSA; provided that any withdrawals from the Subservicer Collection Account shall be made only as specifically authorized under this Agreement; 

 

(vi)         the creation of any Account shall be evidenced by a certification substantially in the form attached hereto as Exhibit E, and a copy of any such certification shall be delivered to KRECM on or prior to the Effective Date and thereafter upon any transfer of such Account;

 

(vii)        the Subservicer may invest the funds in each Subservicer Collection Account and the Servicing Accounts in one or more Permitted Investments on the same terms as KRECM may invest funds in the collection account or certificate account and the related servicing accounts under the applicable PSA, and subject to the same restrictions and obligations regarding maturity dates, gains, losses, possession of Permitted Investments and Permitted Investments payable on demand; provided, however, that funds deposited in the Servicing Fee Account and Ancillary Fee Account must be deposited in an Eligible Account and may be invested in Permitted Investments.

 

(viii)       Section 3.03 of this Agreement shall control with respect to the Subservicer’s obligation to maintain a fidelity bond and errors and omissions insurance policy that satisfies the requirements of PSA;

 

(ix)         Section 4.01 of this Agreement shall control with respect to the servicing fees and additional servicing compensation the Subservicer may retain;

 

(x)          KRECM shall, within forty (40) days after the Effective Date with respect to any Legacy CMBS Transaction, deliver to Subservicer written evidence of each notification to any related ground lessor that such Mortgage Loan has been transferred into the Trust (provided that any applicable items contained in the Subservicing Files or other correspondence or documents delivered by KRECM to the Subservicer, including by electronic delivery, in connection with this Agreement shall satisfy KRECM’s obligation to deliver such evidence).   The Subservicer shall, within forty (40) days after the Effective Date with respect to any Future CMBS Transaction, deliver to KRECM written evidence of each notification to any related ground lessor that such Mortgage Loan has been transferred into the Trust.  KRECM and the Subservicer, as applicable, shall deliver to the other party within two (2) Business Days after receipt any notices of default under any ground lease that KRECM or the Subservicer, as applicable, receives;

 

(xi)         except as otherwise set forth in this Agreement, all notices, information, reports, certifications, consents, and other documentation that are required under any PSA to be provided by KRECM to, or obtained by KRECM from, the Trustee, custodian, the Depositor, the certificate administrator, any mortgage loan seller, the initial purchasers, the guarantor, the 17g-5 Information Provider if applicable, any Rating Agency, the applicable Certificateholders, the Special Servicer, any other party to the applicable PSA or any other Person shall be provided by the Subservicer to KRECM only (or as otherwise directed by KRECM) within the time set forth in this Agreement (or if no such time is set forth, within one (1) Business Day prior to the date on which KRECM is required to deliver such item to the applicable Person); provided, however, to the extent the Subservicer is required to provide any of the foregoing directly to any such third party, including the document custodian, pursuant to this Agreement, the Subservicer shall forward original documents/closing binders to the document custodian and electronic copies to any other third party.  Additionally, Subservicer shall provide KRECM with electronic copies through the web services feed.  KRECM and Subservicer hereby agree that Subservicer may directly request, and receive, from the document custodian electronic copies of any pertinent loan or transaction level documents.

 

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(b)           The Subservicer shall promptly notify KRECM in writing of all material collection and customer service issues and furnish KRECM with copies of all written communications regarding such issues between the Subservicer and any Borrower or any third party in connection with the Subservicer’s obligations under this Agreement.

 

(c)           The Subservicer shall perform principal prepayments in accordance with the Task List. The Subservicer shall, (i) not later than five (5) Business Days after its receipt of any such request or notice, deliver to KRECM a payoff statement calculated by the Subservicer with respect to such principal prepayment setting forth the amount of the principal prepayment, the aggregate interest accrued thereon, the rates used, the date of such rates, and the other fees or expenses to be paid by the Borrower; and (ii) deliver to KRECM and a copy to AMS Real Estate Services for any loan with a calculated yield maintenance charge, all documents and other information in Subservicer’s possession, and any other information reasonably requested by KRECM, or AMS Real Estate Services, to verify the Subservicer’s calculations. KRECM shall respond within five (5) Business Days after receipt of such requests, notices or other requested information or KRECM shall be deemed to have approved the Subservicer’s calculations unless such action requires third party approval, in which case, the consent of KRECM and the third party is required. If the Subservicer accepts any principal prepayment, then it shall (pursuant to wiring instructions from KRECM) remit such principal prepayment to KRECM on the Subservicer Remittance Date.

 

(d)           If the Subservicer causes any voluntary prepayment interest shortfall with respect to any principal prepayment resulting in an obligation by KRECM to make a payment in respect of any prepayment interest shortfall under the applicable PSA, then the Subservicer shall, on the Subservicer Remittance Date following such breach, remit to the Trust the amount of such prepayment interest shortfall required to be paid by KRECM under the applicable PSA.  Any payment by the Subservicer of such prepayment interest shortfall shall not be construed to constitute a waiver or cure of a Subservicer Event of Default.

 

(e)           The Subservicer shall promptly notify KRECM in writing upon obtaining actual knowledge or receipt of notice from a Borrower of the occurrence of any event that the Subservicer has determined may cause a Mortgage Loan to become a specially serviced Mortgage Loan pursuant to the requirements in the applicable PSA. The final determination as to whether a Mortgage Loan has become a specially serviced loan shall be made by KRECM and KRECM shall promptly notify the Subservicer of its determination.

 

(f)           With respect to all servicing responsibilities of KRECM under the applicable PSA that are not being performed by the Subservicer under this Agreement, the Subservicer shall promptly notify KRECM in writing of (and in any event, within one (1) Business Day after) its receipt of notice thereof or a request therefor and shall reasonably cooperate with KRECM to facilitate the timely performance of such servicing responsibilities, including the REMIC provisions of the applicable PSA.

 

(g)           No later than the last day of each calendar month, the Subservicer shall deliver to KRECM a statement prepared by the Subservicer setting forth the status of the Subservicer Collection Account as of the close of business on the Determination Date in such month (together with a copy of the most recent monthly bank reconciliation statement received by the Subservicer with respect to the Subservicer Collection Account) and showing the aggregate amount of deposits into and withdrawals from the Subservicer Collection Account since the preceding Determination Date for each category of deposit specified in the applicable PSA Section and each category of withdrawal specified in the applicable PSA.

 

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(h)           Not later than 2:00 p.m. (New York City time) one (1) Business Day after each Determination Date, beginning in the month following the Effective Date, the Subservicer shall prepare and deliver or cause to be delivered to KRECM, in an electronic form, (i) the CREFC Loan Periodic Update File, the CREFC Property File, the CREFC Financial File, the CREFC Delinquent Loan Status Report, the CREFC Historical Loan Modification and Corrected Mortgage Loan Report, the CREFC Loan Level Reserve/LOC Report, the CREFC Comparative Financial Status Report, the CREFC Servicer Watch List and, (ii) to the extent required to be delivered by KRECM under the PSA, any other file or report that may from time to time be recommended by the CREFC for commercial mortgage-backed securities transactions generally (substantially in the form of, and containing the information called for in, the downloadable form of such file or report then-available on the CREFC Website) and requested in writing by KRECM, in each case providing the most recent information with respect to the Mortgage Loans as of the close of business on the related Determination Date (and which, in each case, if applicable, will identify each Mortgage Loan by loan number and property name).  Delivery of any of the foregoing shall be deemed satisfied at the time such file or report is posted to Subservicer’s website InvestorView, or such other website as the Subservicer may notify KRECM in writing; provided that the Subservicer shall notify KRECM in writing or electronically immediately upon the posting of any such file or report to the Subservicer’s website.

 

(i)           Commencing with the calendar quarter following the Effective Date, the Subservicer shall use its reasonable efforts to obtain quarterly and annual operating statements, budgets and rent rolls with respect to each of the Mortgage Loans, and quarterly and annual financial statements of each related Borrower, which efforts shall include sending a letter to such Borrower each quarter (followed up with telephone calls) requesting such quarterly and annual operating statements, budgets, rent rolls and financial statements by no later than the timeframe set forth in the applicable PSA for KRECM to deliver such information, whether or not delivery of such items is required pursuant to the terms of the related Mortgage Loan documents, but to the extent such action is consistent with applicable law, the terms of such Mortgage Loans and Accepted Subservicing Practices. Upon KRECM’s written request, the Subservicer shall deliver copies of all of the foregoing items so collected in an imaged PDF format, Excel format, or such other format reasonably acceptable to KRECM and the Subservicer within twenty-five (25) days after the Subservicer’s receipt of such items together with the CREFC Operating Statement Analysis Report and CREFC NOI Adjustment Worksheet.

 

(j)           After the Effective Date, the Subservicer shall maintain a CREFC Operating Statement Analysis Report and CREFC NOI Adjustment Worksheet with respect to each Mortgaged Property.  The Subservicer shall deliver electronically to the requisite parties designated to receive the information from KRECM under the applicable PSA and KRECM the CREFC Operating Statement Analysis Report and CREFC NOI Adjustment Worksheet, as required by and in the timeframes set forth in the PSA.

 

(k)           The Subservicer shall determine and analyze financial ratios and perform other financial analysis required under the CREFC reporting guidelines (including the preparation of related comments under such guidelines) and deliver to KRECM all reports summarizing such analysis based upon the property operating statements with respect to the related Mortgaged Property and the financial statements of the related Borrower and each related guarantor collected by the Subservicer pursuant to PSA, which reports shall be in the forms required under this Agreement.

 

(l)           Each month by 2:00 p.m. (New York City time) on the Subservicer Remittance Date, the Subservicer shall remit to KRECM, pursuant to wiring instructions from KRECM, all amounts received for such collection or due period by the Subservicer with respect to the Mortgage Loans on or before the close of business on the Business Day immediately preceding such Subservicer Remittance Date less (i) all amounts constituting the Servicing Fee pursuant to the related PSA and (ii) all Borrower Paid Fees payable to KRECM pursuant to the related PSA.  In addition, the Subservicer shall remit to KRECM

 

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within one (1) Business Day after receipt any delinquent payments on the Mortgage Loans received by the Subservicer and any related Penalty Charges.  Each of the foregoing remittances of funds shall be accompanied by a Remittance Report.  Each month by 2:00 p.m. (New York City time) on the Subservicer Remittance Date, the Subservicer shall deposit into the Servicing Fee Account all amounts constituting Servicing Fees due to KRECM with respect to the related PSA.

 

(m)           On the Subservicer Remittance Date, the Subservicer shall remit to KRECM (pursuant to wiring instructions from KRECM) any whole or partial balloon payments, principal prepayments, prepayment premiums, yield maintenance charges, liquidation proceeds, insurance proceeds and condemnation proceeds, and any interest thereon, together with a Remittance Report, provided however, that upon request from KRECM, if Subservicer receives liquidation proceeds for a specially serviced Mortgage Loan or any whole or partial balloon payments, principal prepayments, prepayment premiums, yield maintenance charges and any interest thereon received in the prior Due Period and remitted to the Trust by KRECM in that Due Period, Subservicer shall remit the liquidation proceeds or such other funds previously remitted within one (1) Business Day after funds are posted to the borrower record.

 

(n)           After the Effective Date, the Subservicer shall prepare or have prepared, and deliver electronically to the requisite parties designated to receive the information from KRECM under the applicable PSA and KRECM a Property Inspection Report for each inspection performed by it or on its behalf by a third party, in each case as required by and in the timeframes set forth in the applicable PSA.

 

(o)           The Subservicer shall provide KRECM with such reports and other information (in the Subservicer’s possession or to the extent readily obtainable and as reasonably requested by KRECM and in an electronic format reasonably acceptable to KRECM) with respect to the servicing of the Mortgage Loans by the Subservicer under this Agreement in order for KRECM to perform its duties under the PSA.

 

(p)           Within fifteen (15) days following the end of each calendar quarter, the Subservicer shall prepare and deliver to KRECM the Tax, Insurance, UCC and Letter of Credit Certification in the form attached hereto as Exhibit D.

 

(q)           Following its receipt from the Depositor, KRECM shall provide a copy of any loan purchase agreements to the Subservicer.  The Subservicer shall notify KRECM in writing within five (5) Business Days after the Subservicer discovers or receives notice alleging a Defect.  The Subservicer shall promptly provide to KRECM a copy of any written repurchase request received by the Subservicer and such other information in the possession of the Subservicer reasonably requested by KRECM to fulfill its obligations under the applicable PSA.

 

(r)           Following receipt of any Borrower Paid Fees due to KRECM, the Subservicer shall deposit such amounts into the Ancillary Fee Account within two (2) Business Days of receipt.

 

(s)           The Subservicer shall promptly notify KRECM if the Subservicer becomes an Affiliate of the related Trustee.

 

(t)           Without limiting, and where applicable in addition to, the duties and obligations with respect to the Mortgage Loans otherwise described in this Agreement, the Subservicer shall perform the servicing actions described on the Task List.

 

(u)           If a Mortgage Loan becomes a specially serviced Mortgage Loan pursuant to the related PSA and the related PSA does not require that servicing under this Agreement be terminated with respect to such Mortgage Loan upon such Mortgage Loan becoming a specially serviced Mortgage Loan, the Subservicer shall continue to receive payments (and apply such funds as directed by KRECM or the

 

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related special servicer), update payment records, file UCC Financing Statements, monitor tax amounts due, and monitor insurance coverage with respect to each such specially serviced Mortgage Loan and shall provide KRECM or the special servicer with any information reasonably required by KRECM or the special servicer to perform its duties under the related PSA, but the Subservicer shall take no other actions with respect to such specially serviced Mortgage Loan unless expressly directed in writing by KRECM or the special servicer.  Berkadia will be responsible for all communications with any special servicer under the related PSA.  If an inquiry on a specially serviced Mortgage Loan requires the review or consent of KRECM, Subservicer shall forward such request to KRECM for review/consent/denial/modification and will coordinate the delivery of such consent/denial/modification to the special servicer, if applicable.  If permitted or not prohibited by the related PSA, upon a specially serviced Mortgage Loan becoming a “corrected” or “performing” Mortgage Loan, KRECM shall promptly notify the Subservicer of such change and the Subservicer shall resume its servicing obligations and duties required pursuant to this Agreement.  Notwithstanding any provision to the contrary in this Agreement, the Subservicer shall be entitled to receive any and all fees, compensation and other amounts as provided for in this Agreement during any time that any Mortgage Loan is a specially serviced Mortgage Loan and all such amounts shall be payable to Subservicer if and to the extent (i) sufficient payments or other amounts are received that are allocable to such Mortgage Loan, and (ii) the related PSA permits the payment of such fees, compensation or other amounts during any time that such Mortgage Loan is a specially serviced Mortgage Loan.  If any amounts payable to the Subservicer are not paid because there are not sufficient amounts received with respect to such Mortgage Loan at any time, all such amounts shall accrue and remain payable to the Subservicer from any amounts, if any, that are subsequently received with respect to such Mortgage Loan.

 

Section 3.02.     Portfolio Manager.

 

(a)           The Subservicer shall designate a portfolio manager and other appropriate personnel to receive documents and communications from KRECM and to provide assistance to KRECM consistent with KRECM’s supervisory authority over the Subservicer under this Agreement.

 

(b)           KRECM shall designate a portfolio manager and other appropriate personnel to receive documents and communications from the Subservicer and to provide to the Subservicer information, materials and correspondence relating to the Mortgage Loans and the related Borrowers which may be necessary or appropriate to enable the Subservicer to perform its obligations under this Agreement.

 

Section 3.03.     Maintenance of Errors and Omissions and Fidelity Coverage.

 

The Subservicer shall obtain and maintain with Qualified Insurers, at its own expense, and keep in full force and effect throughout the term of this Agreement, a blanket fidelity bond and an errors and omissions insurance policy covering all of the Subservicer’s officers, employees and agents acting on behalf of the Subservicer in connection with its activities under this Agreement and that satisfies the fidelity bond and errors and omissions insurance policy requirements under the PSAs.  The Subservicer shall deliver or cause to be delivered to KRECM a certificate of insurance or other evidence of such fidelity bond and insurance within thirty (30) days of the Effective Date and thereafter (i) within ten (10) Business Days after each renewal thereof, (ii) if not delivered in any calendar year pursuant to clause (i), then upon each anniversary of the Effective Date, and (iii) from time to time upon KRECM’s reasonable request.  Such fidelity bond and errors and omissions policy shall provide that it may not be canceled without twenty (20) days’ prior written notice to the KRECM.  The Subservicer shall (i) furnish to KRECM copies of all binders and policies or certificates evidencing that such fidelity bond and errors and omissions insurance policy are each in full force and effect, and (ii) promptly report or cause its insurer(s) to report in writing to KRECM any termination of or any material changes to the Subservicer’s fidelity bond or errors and omissions insurance policy.

 

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Section 3.04.     Delivery and Possession of Servicing Files.

 

The parties acknowledge that KRECM did previously have possession of or control over, the Subservicing Files.  KRECM shall on the Effective Date, transfer to the Subservicer electronically each of the servicing files relating to the Mortgage Loans in accordance with the Transfer Instructions.  Upon receipt, the Subservicer shall acknowledge possession of the Subservicing Files.  The contents of each Subservicing File are and shall be held in trust by the Subservicer for the benefit of the Trust as the owner thereof; the Subservicer’s possession of the contents of each Subservicing File is for the sole purpose of servicing the related Mortgage Loan; and such possession by the Subservicer shall be in a custodial capacity only. The Subservicer shall release its custody of the contents of any Subservicing File only in accordance with written instructions from KRECM, and upon request of KRECM, the Subservicer shall deliver to KRECM the requested Subservicing File or an electronic copy (in a format reasonably acceptable to KRECM) of any document contained therein.  In addition, KRECM shall also complete the Subservicer’s standard electronic data transfer template for each Mortgage Loan and provide such electronic data transfer template to Subservicer on the Effective Date to enable the Subservicer to board the Mortgage Loans to its servicing system.

 

Section 3.05.     Financial Statements of the Subservicer.

 

The Subservicer shall deliver to KRECM quarterly and annual financial statements of the Subservicer and its subsidiaries for its last complete fiscal quarter or year, as applicable. All such financial statements shall be prepared in accordance with Generally Accepted Accounting Principles consistently applied, and shall fairly present the pertinent results of (i) operations for such quarter or year, as applicable, (ii) the financial position at the end of such quarter or year, as applicable, and (iii) changes in financial position with respect to the Subservicer’s last complete fiscal quarter or year, as applicable.  KRECM shall enter into a confidentiality agreement with the Subservicer to keep any nonpublic information that is provided by the Subservicer to KRECM pursuant to this Section 3.05 confidential.

 

Section 3.06.     Exchange Act Reporting and Regulation AB Compliance.

 

(a)           Intent of the Parties.  The parties hereto acknowledge and agree that the purpose of this Section 3.06 is, among other things, to facilitate compliance with the provisions of Regulation AB and related rules and regulations of the Commission and the applicable PSA requirements related thereto. The Subservicer acknowledges that interpretations of the requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to comply with requests made by KRECM for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB.  In connection with the Trust, the Subservicer shall cooperate fully with KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator) to deliver or make available to them (and any of their respective assignees or designees) any and all statements, reports, certifications, records and any other information in its possession and (as determined by KRECM, the Depositor or the party designated in the applicable PSA to file the Commission’s reports, as applicable) necessary to permit KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports to comply with the provisions of Regulation AB and the applicable PSA, together with such disclosures relating to the Subservicer or the servicing of the Mortgage Loans reasonably believed by KRECM or the Depositor, as applicable, to be necessary in order to effect such compliance.  On or after the Effective date, but no longer than thirty (30) days after the Effective Date, KRECM shall provide all notices and documentation required under the related PSA to inform the PSA parties that the Subservicer has been appointed and shall provide Regulation AB reports, as provided herein.  KRECM

 

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shall inform the Subservicer as to whether the Trust has filed the requisite documentation to suspend its reporting obligations under the Exchange Act.

 

(b)           Information to be Provided by the Subservicer.

(i)           The Subservicer shall, for so long as the applicable Trust is subject to the reporting requirements of the Exchange Act, promptly following written notice to or discovery by the Subservicer, (A) notify KRECM in writing of (I) any material litigation or governmental proceedings pending against the Subservicer that, in each such case, would be material to the Certificateholders and (II) any affiliations or relationships that develop following the Effective Date between the Subservicer and any other Person with respect to the applicable Trust, and (B) provide to KRECM or the Depositor a description of such proceedings, affiliations or relationships.

 

(ii)          For so long as the applicable Trust is subject to the reporting requirements of the Exchange Act, in connection with the succession to the Subservicer as subservicer under this Agreement by any Person, the Subservicer shall provide to KRECM, at least 30 days prior to the effective date of such succession, (x) written notice to KRECM of such succession and (y) in writing and in form and substance reasonably satisfactory to KRECM, all information reasonably requested by KRECM or the Depositor in order to comply with its reporting obligations under the applicable PSA (including any report under Item 6.02 of Form 8-K).

 

(iii)         If, during any year the applicable Trust is subject to the reporting requirements of the Exchange Act, the Subservicer appoints a servicer that constitutes a “servicer” contemplated by Item 1108(a)(2) of Regulation AB, then the Subservicer shall cause such servicer, in connection with its acceptance of such appointment, to provide KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator) with such information regarding itself, its business and operations and its servicing experience and practices, as is required to be reported by the Depositor pursuant to Item 6.02 of Form 8-K.

 

(iv)         The Subservicer acknowledges and agrees that the information to be provided by it (or by any Servicing Function Participant acting on its behalf hereunder) pursuant to or as contemplated by this Section 3.06 is intended to be used in connection with the preparation of any reports required by the Exchange Act with respect to the applicable Trust.

 

(c)           Additional Obligations.  Without limiting any other provision of this Section 3.06, the Subservicer shall (i) observe and perform any obligation applicable to a “Servicing Function Participant” set forth in the applicable PSA, (ii) reasonably cooperate with KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator) in connection with the such party’s efforts to satisfy the applicable Trust’s reporting requirements under the Exchange Act, and (iii) if the Subservicer is terminated or resigns pursuant to the terms of this Agreement, provide the reports (annual or otherwise) and other information required by this Section 3.06 with respect to the period of time that the Subservicer was subject to this Agreement.

 

(d)           Additional Filing Disclosures.

 

(i)           Additional Form 10-D Disclosures.  For so long as the applicable Trust is subject to the reporting requirements of the Exchange Act, the Subservicer shall, within one (1) day after the related Distribution Date, provide to KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator), to the extent known by the Subservicer or a Servicing Officer thereof (other than

 

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information contemplated by Item 1117 or Item 1119 of Regulation AB, which shall be reported if known by any Servicing Officer, any lawyer in the in-house legal department or any senior manager of the Subservicer), in EDGAR-compatible form (or in such other format as otherwise agreed upon by the Subservicer and KRECM, the Depositor or the party designated in the applicable PSA to file the Commission’s reports), any additional Form 10-D disclosure required under the applicable PSA, as applicable to KRECM, together with an additional disclosure notification as required under the applicable PSA.

 

(ii)          Additional Form 10-K Disclosures.  For so long as the applicable Trust is subject to the reporting requirements of the Exchange Act, the Subservicer shall, no later than March 1 (with no grace period) of each year (commencing in 2013), provide to KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator), to the extent known by the Subservicer or a Servicing Officer thereof (other than information contemplated by Items 1117 and 1119 of Regulation AB, which shall be reported if known by any Servicing Officer, any lawyer in the in-house legal department or any senior manager of the Subservicer), in EDGAR-compatible format (or in such other format as otherwise agreed upon by the Subservicer and KRECM, the Depositor or the party designated in the applicable PSA to file the Commission’s reports), any additional Form 10-K disclosure required under the applicable PSA, as applicable to KRECM, together with an additional disclosure notification as required under the applicable PSA.

 

(iii)         Form 8-K Disclosure Information.  For so long as any Trust is subject to the reporting requirements of the Exchange Act, the Subservicer shall, no later than noon (New York City time) on the first (1st) Business Day after the occurrence of a Reportable Event requiring disclosure under Form 8-K, provide to KRECM, the Depositor and the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator), to the extent known by the Subservicer or a Servicing Officer thereof (other than information contemplated by Item 1117 of Regulation AB, which shall be reported if known by any officer of the Subservicer), in EDGAR-compatible format (or in such other format as otherwise agreed upon by the Subservicer and KRECM, the Depositor or the party designated in the applicable PSA to file the Commission’s reports), any Form 8-K disclosure information as required under the applicable PSA, as applicable to KRECM, together with an additional disclosure notification as required under the applicable PSA. Without limiting the foregoing, the Subservicer shall promptly notify KRECM, but in no event later than noon on the first (1st) Business Day after its occurrence, of any Reportable Event (or such similar term used under the applicable PSA) of which it has knowledge.

 

(iv)        Upon the request of KRECM, the Depositor or the party designated in the applicable PSA to file the Commission’s reports (which may be the Trustee or the Certificate Administrator), the Subservicer shall promptly provide to the requesting party any information in its possession as is necessary or appropriate for such party to prepare fully and properly any report required under the Exchange Act with respect to the Trust in accordance with the Securities Act, the Exchange Act and the rules and regulations promulgated thereunder.

 

(v)         The Subservicer shall promptly provide to KRECM a written description (in form and substance satisfactory to KRECM) of the role and function of each subcontractor that is a Servicing Function Participant (pursuant to Item 1108(a)(2) of Regulation AB) utilized by the Subservicer, specifying (A) the identity of such subcontractor, and (B) which elements of the Servicing Criteria will be addressed in assessments of compliance provided by each such subcontractor.  The Subservicer shall cause any subcontractor determined to be a Servicing Function Participant to comply with the provisions of this Section 3.06 to the same extent as if such

 

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subcontractor were the Subservicer.  The Subservicer shall obtain from each such subcontractor and deliver to KRECM any assessment of compliance report and related accountant’s attestation required to be delivered by such subcontractor under this Section 3.06, in each case, as and when required to be delivered.

 

(e)           Sarbanes-Oxley Certification.  The Subservicer shall deliver to KRECM, no later than March 5 (or if such day is not a Business Day, then the immediately succeeding Business Day, with no cure period) of each year (commencing in 2013) in which any Trust is subject to the reporting requirements of the Exchange Act for the preceding fiscal year (and otherwise within a reasonable period of time upon request), a certification in the form attached hereto as Exhibit F (a “Performance Certification”), on which KRECM and KRECM’s officers, directors, members, managers, employees, agents and Affiliates (collectively, the “Certification Parties”) can reasonably rely.  The Subservicer shall, if it is terminated or resigns pursuant to the terms of this Agreement, provide a Performance Certification to KRECM with respect to the period of time it was subject to this Agreement.  Pursuant to the provisions in the applicable PSA, each Performance Certification shall include (x) a reasonable reliance statement by the Subservicer enabling the Certification Parties to rely upon each (i) annual compliance statement, (ii) annual report on assessment of compliance with the Servicing Criteria and (iii) registered public accounting firm attestation report  and (y) a certification that each such annual report on assessment of compliance discloses any material instances of noncompliance described to the Subservicer’s registered public accounting firm to enable such accountants to render the attestation.

 

(f)           Annual Compliance Statements.  The Subservicer shall deliver to KRECM no later than March 5 (or if such day is not a Business Day, then the immediately succeeding Business Day, with no cure period) of each year (commencing in 2013), an Officer’s Certificate (in Microsoft Word, Microsoft Excel or in such other reasonably requested format) stating, as to the signer thereof, that (i) a review of the Subservicer’s activities during the preceding annual year or portion thereof and of the Subservicer’s performance under this Agreement, has been made under such officer’s supervision and (ii) to the best of such officer’s knowledge, based on such review, the Subservicer has fulfilled all its obligations under this Agreement, in all material respects throughout such year or portion thereof, or, if there has been a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature and status thereof.  KRECM and the Depositor shall have the right to review the Officer’s Certificate and consult with the Subservicer as to the nature of any failures by the Subservicer.

 

(g)           Annual Reports on Assessment of Compliance with Servicing Criteria.

 

(i)           The Subservicer shall deliver to KRECM no later than March 5 (or if such day is not a Business Day, then the immediately succeeding Business Day, with no cure period) of each year (commencing in 2013), a report (in Microsoft Word, Microsoft Excel or in such other reasonably requested format) on an assessment of compliance with the Relevant Servicing Criteria for the Trust’s preceding fiscal year that contains (A) a statement by the Subservicer of its responsibility for assessing compliance with the Relevant Servicing Criteria, (B) a statement that the Subservicer used the Servicing Criteria to assess its compliance with the Relevant Servicing Criteria, (C) the Subservicer’s assessment of compliance with the Relevant Servicing Criteria as of and for the period ending the end of the fiscal year of the Trust covered by the Form 10-K required to be filed pursuant to the applicable PSA (including, if there has been any material instance of noncompliance with the Relevant Servicing Criteria, a discussion of each such failure and the nature and status thereof), and (D) a statement that a registered public accounting firm has issued an attestation report on the Subservicer’s assessment of compliance with the Relevant Servicing Criteria as of and for such period. Each Regulation AB assessment of compliance and related attestation contemplated by Section 3.06(h) must be available for general use and may not contain restricted use language.  KRECM and the Depositor shall have the right to review the report and consult with the Subservicer

 

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as to the nature of any material instance of noncompliance by the Subservicer with the relevant Servicing Criteria in the fulfillment of any of the Subservicer’s obligations under this Agreement.

 

(ii)           Within three (3) Business Days prior to the end of each year for which any Trust is subject to the reporting requirements of the Exchange Act, commencing in December 2012, the Subservicer shall deliver to KRECM the name and address of each Servicing Function Participant and subservicer engaged by it and what Relevant Servicing Criteria will be addressed in the report on assessment of compliance prepared by such Servicing Function Participant or subservicer.  The Subservicer shall, when it delivers its report on assessment under Section 3.06(g)(i), to the extent received, deliver each report on assessment (and the related accountants’ attestation) of each Servicing Function Participant and subservicer engaged by it.

 

(h)           Annual Independent Public Accountants’ Attestation.  The Subservicer shall cause a registered public accounting firm that is a member of the American Institute of Certified Public Accountant to, no later than March 5 (or if such day is not a Business Day, then the immediately succeeding Business Day, with no cure period) of each year (commencing in 2013), furnish a report to KRECM for the preceding fiscal year to the effect that (i) it has obtained a representation regarding certain matters from the management of the Subservicer that includes an assessment from the Subservicer of its compliance with the Relevant Servicing Criteria and (ii) on the basis of an examination conducted by such firm in accordance with standards for attestation engagements issued or adopted by the Public Company Accounting Oversight Board, it is expressing an opinion as to whether the Subservicer’s compliance with the Relevant Servicing Criteria was fairly stated in all material respects, or it cannot express an overall opinion regarding the Subservicer’s assessment of compliance with the Relevant Servicing Criteria.  If an overall opinion cannot be expressed, such registered public accounting firm shall state in such report why it was unable to express such an opinion.  Such Regulation AB report must (i) be available for general use and not contain restricted use language and (ii) if required to be filed with the Commission under applicable law, include the consent and authorization of such accounting firm for the filing of such report with the Commission.  KRECM and the Depositor shall have the right to review the report and consult with the Subservicer as to the nature of any material instance of noncompliance by the Subservicer with the Relevant Servicing Criteria in the fulfillment of any of the Subservicer’s obligations under this Agreement.

 

To the extent the PSA expressly permits the master servicer to deliver a Uniform Single Attestation Program for Mortgage Bankers (“USAP”), the Subservicer may elect, in its sole discretion, to provide a USAP report in lieu of a Regulation AB attestation.  The Subservicer shall cause, a registered public accounting firm and that is a member of the American Institute of Certified Public Accountants to, no later than March 5 (or if such day is not a Business Day, then the immediately succeeding Business Day, with no cure period) of each year (commencing in 2013), furnish a certificate to KRECM, to the effect that such firm has examined the servicing operations of the Subservicer for the previous calendar year and that, on the basis of such examination conducted substantially in compliance with the USAP, such firm confirms that the Subservicer complied with the minimum servicing standards identified in USAP, in all material respects, except for such exceptions or errors in records that, in the opinion of such firm, the USAP does not require it to report.

 

(i)           Exchange Act Reporting Indemnification.

 

(i)           The Subservicer shall indemnify and hold harmless each Certification Party, the Depositor and the party designated in the PSA to file the Commission’s reports (which may be the applicable Trustee or the Certificate Administrator) and their respective directors, officers, members, managers, employees, agents and Affiliates and each other Person that controls any such entity within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act

 

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(collectively, the “Indemnified Parties”) from and against any liabilities, losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs, judgments and other costs and expenses incurred by such Indemnified Party arising out of (i) any breach of its obligations under this Section 3.06 or (ii) negligence, bad faith or willful misconduct on its part in the performance of such obligations.

 

(ii)           If the indemnification provided for in this Section 3.06(i) is unavailable or insufficient to hold harmless any Indemnified Party, then the Subservicer shall contribute to the amount paid or payable to such Indemnified Party in such proportion as is appropriate to reflect the relative fault of the Subservicer on the one hand and the Indemnified Party on the other in connection with a breach of the Subservicer’s obligations under this Section 3.06 or the Subservicer’s negligence, bad faith or willful misconduct in connection therewith.

 

(j)           Amendments; Expenses; Subservicers.  This Section 3.06 may be amended in writing, executed by the parties hereto for purposes of complying with or to conform to standards developed within the commercial mortgage-backed securities market, notwithstanding anything to the contrary contained in this Agreement.  The Subservicer’s obligations under this Section 3.06 shall be performed by it in all cases at its own expense.

 

Section 3.07.     Regulatory Oversight, Compliance and Privacy.

 

Any regulatory oversight or compliance request by KRECM shall not materially increase the obligations or materially impact the cost of servicing by  the Subservicer beyond the duties and obligations of the Subservicer (without regard to the provisions in this Section 3.07) that are otherwise set forth in or required by this Agreement, the applicable PSAs, the Accepted Subservicing Practices, and laws and regulations applicable to the Subservicer; provided, however, that the Subservicer shall comply with all of its obligations in this Section 3.07, even if such compliance materially increases the Subservicer’s cost of servicing beyond the standard set forth in the preceding sentence, if KRECM agrees that it will reimburse the Subservicer for the Subservicer’s actual increased costs of servicing caused directly by having to so comply.

 

(a)           The Subservicer understands and acknowledges that KRECM is subject to examination by certain regulatory agencies as may have regulatory authority over KRECM, including the OCC, Federal Deposit Insurance Corporation, the Federal Reserve, and the Securities and Exchange Commission.  The Subservicer further understands and acknowledges that KRECM has informed Subservicer that pursuant to OCC Bulletin 2001-47 (November 1, 2001), KRECM is required to and will engage in ongoing oversight of its relationship with Subservicer, including reviewing Subservicer’s financial condition, compliance with privacy and laws and regulations, insurance coverage, and performance under this Agreement.  Accordingly, the Subservicer agrees to permit, participate in, submit to, and reasonably cooperate with any examination or inquiry of the Subservicer or KRECM by KRECM or any such regulatory body or agency of KRECM and the Subservicer as KRECM’s subservicer under this Agreement.  Subject to the introductory paragraph to this Section 3.07, in connection with any examination or audit performed pursuant to this Section 3.07(a), Subservicer shall reasonably cooperate with KRECM to fix, mitigate or otherwise address any problems, findings, or concerns raised in any such examination or audit.

 

(b)           The Subservicer and KRECM agree to cooperate and share information, as permitted by Applicable Requirements, with regard to the subservicing as set forth in this Agreement in order to comply with the laws regarding money laundering and terrorist financing applicable to each.  Subservicer acknowledges that KRECM may perform certain of its anti-money laundering and Bank Secrecy Act (“AML/BSA”) due diligence procedures during the term of this Agreement.  The Subservicer agrees to

 

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provide data and information to KRECM, based on the services provided by Subservicer under this Agreement, on a periodic basis with reasonable advance notice to Subservicer, in writing, as stated by the KRECM to enable KRECM to perform its AML/BSA related activities.

 

(c)           In the event that, in performing the subservicing under this Agreement, the Subservicer identifies unusual and suspicious activity, the Subservicer agrees to promptly deliver to KRECM all relevant information through the methods developed for reporting possible fraud. KRECM shall determine in its sole discretion whether further action is required by law and shall notify Subservicer in writing of such determination.   KRECM shall, at its sole cost and expense, take any such further action.

 

(d)           The Subservicer shall at all times have policies, procedures and internal controls that materially comply with the regulations administered by OFAC and shall provide KRECM with documentation of such policies, procedures and controls (“OFAC Program”).  Upon KRECM’s written request, Subservicer agrees to provide KRECM with periodic updates regarding the functionality and effectiveness of the OFAC Program, including but not limited to the most current OFAC testing results, regarding Subservicer’s OFAC Program. Subservicer shall not knowingly perform any subservicing in material violation of the OFAC regulations.  Subject to the introductory paragraph to this Section 3.07, in the event that the Subservicer’s OFAC Program are deemed by KRECM to be insufficient or not in compliance with the minimum standards established by KRECM’s AML Compliance Program, the Subservicer shall promptly adopt any changes, enhancements, or modifications to its OFAC Program that KRECM deems necessary.

 

The Subservicer, all of Subservicer’s employees and any subcontractor performing servicing or supporting Subservicer activities under this Agreement, regardless of their location, shall be validated when hired by Subservicer to not be: (a) a Person that is listed in the annex to, or is otherwise subject to the prohibitions contained in, Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”) or OFAC regulations; and (b) on any list published and maintained by the government of the United States of America of Persons with whom any U.S. Person is prohibited from conducting business.  Currently, the lists of such Persons or entities can be found on the following web site: The Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control – Department of Treasury at http://www.ustreas.gov/offices/enforcement/ofac/sdn/.   Subservicer shall conduct a review at least semi-annually of the lists mentioned above.  Subservicer shall report to KRECM immediately if the name of any Subservicer employee or sub-contracting entity matches the name of any person listed on any such lists and Subservicer does not otherwise reasonably determine that such employee or sub-contracting entity is not the same Person listed on any such list and shall take direction from KRECM with respect to the appropriate steps regarding blocking or freezing of funds and reporting to OFAC.

 

(e)           Without limiting the obligations of the parties as set forth herein, each of Subservicer and KRECM acknowledges that each party retains responsibility to fulfill any and all compliance requirements and/or obligations that each party may have under the Bank Secrecy Act, the USA PATRIOT Act, OFAC regulations, and other regulations implementing such Acts, as amended from time to time, with regard to the subservicing under this Agreement.

 

(f)           The Subservicer will have implemented and will maintain a business continuity plan and shall provide KRECM with a copy of the current Subservicer’s “Business Continuity Plan - Executive Summary and Plan Excerpt” (or similar document) Excerpt upon KRECM’s written request.  Should Subservicer’s business operations become disrupted or inoperative, Subservicer shall put into effect the Business Continuity Plan.  The business continuity plan shall include provisions for off-site backup of critical data files, software, documentation, forms and supplies as well as alternative means of transmitting and processing information. The business continuity plan will include the annual testing of

 

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such plan, to recover and provide for the recovery of critical services provided under this Agreement within twenty four (24) hours of Subservicer’s declaration of a disaster or business interruption event. Such testing plans will be formulated by the Subservicer business continuity team annually based on risk, application or function criticality and coverage, and shall be communicated to KRECM on a requested basis. Subservicer will provide to KRECM (so that KRECM may provide to any regulatory agencies), upon written request, a written test summary report of the test results. Subservicer will report to KRECM within a reasonable period of time after a disaster or business interruption event and related implementation of Subservicer’s recovery plan, where such event may reasonably be expected to materially impact Subservicer’s performance of its obligations under this Agreement.

 

(g)           The Subservicer warrants and covenant that is has implemented policies and procedures to protect personally identifiable information. The policies and procedures established shall allow Subservicer to: (i) detect circumstances that indicate a risk of identity theft in accounts related to KRECM; (ii) report circumstances of potential or actual identity theft of accounts related to KRECM; (iii) take measures to contain and control an identity theft incident and prevent the circumstances from repeatedly occurring; and (iv) work with KRECM to mitigate any damages that may have resulted from an identity theft incident.  The Subservicer shall notify KRECM within twenty-four (24) hours after the occurrence of any event described in sub-clauses (i)-(iv) above.

 

(h)           The Subservicer shall not (i) transmit personally identifiable information, including Customer Information via any wireless technology, e-mail or the internet unless the connection is secure or the information is encrypted or (ii) store unencrypted personally identifiable information, including Customer Information on any electronic device that is portable, and Subservicer will remove all personally identifiable information, including Customer Information from a device before redeploying or disposing of that device. Such electronic devices shall include, but not be limited to, a PDA, laptop or desktop computers. The Subservicer shall notify KRECM within twenty-four (24) hours after the occurrence of any event described in sub-clauses (i) or (ii) above.

 

(i)           The Subservicer shall maintain and store all Subservicing Files, any data tapes, records, electronic or imaged information and other similar information or data related to the Mortgage Loans within the United States.  Any services performed by the Subservicer, or any third party on the Subservicers behalf, outside of the United States shall be performed on or using a computer, terminal, software, or program commonly referred to as a “thin-client” or one that relies on a server or other computer maintained by Subservicer within the United States.

 

(j)           Each party shall comply with all federal and state laws, and rules and regulations of regulatory agencies, protecting the confidential information and privacy rights of KRECM, its customers and consumers, including, without limitation, Title V of the federal Gramm-Leach-Bliley Act and the federal Economic Espionage Act (18 U.S.C. Section 1831 et seq). The Subservicer will not directly or indirectly reuse or redisclose to any affiliate, or any unaffiliated entity or person, any confidential information, including but not limited to, any personally identifiable consumer information, provided by KRECM under this Agreement for any purpose other than to perform the activities contemplated by this Agreement.  The obligations of this Section relative to maintaining the confidentiality and privacy of KRECM’s customers’ confidential information shall survive indefinitely the termination of this Agreement.

 

(k)           The Subservicer may receive or otherwise have access to “customer information” (as defined in Appendix B to 12 CFR §30), in connection with providing services to KRECM pursuant to the terms of the Agreement.  The Subservicer shall implement and maintain an appropriate security program for customer information designed to meet the following Objectives (as defined below) of the Interagency Guidelines Establishing Standards for Safeguarding Customer Information pursuant to the authority of

 

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Section 501(b) of the Gramm-Leach-Bliley Act of 1999. “Objectives” means a program designed to (i) ensure the security and confidentiality of customer information; (ii) protect against any anticipated threats or hazards to the security or integrity to customer information, and (iii) protect against unauthorized access to or use of customer information that could result in substantial harm or inconvenience to any “customer” (as defined in 12 CFR § 40.3 (h)).   The Subservicer shall provide KRECM, upon request, a copy of its data security program and any updates or amendments thereto.

 

ARTICLE IV.

 

SUBSERVICER’S COMPENSATION AND EXPENSES

 

Section 4.01.     Subservicing Compensation.

 

(a)           As compensation for its activities under this Agreement, for each calendar month, the Subservicer shall be entitled to withdraw from the Servicing Fee Account the Base Legacy Servicing Compensation and the Base Future Servicing Compensation, as applicable on the 2nd Business Day of the immediately succeeding calendar month (and if such day is not a Business Day, the next succeeding Business Day).  In the event that there are insufficient funds in the Servicing Fee Account to pay the Base Legacy Servicing Compensation and Base Future Servicing Compensation, as applicable for any month, the Subservicer shall be entitled to withdraw the amount of any deficiency from the Ancillary Fee Account provided there are excess funds in such account after payment of the Floor Component Amount in any month.  In the event funds in the Base Servicing Compensation Account and any remaining funds in the Ancillary Fee Account are insufficient to pay the Base Legacy Servicing Compensation and Base Future Servicing Compensation, as applicable in any month, the Subservicer shall send an invoice via email to KRECM’s portfolio manager for the balance of the Base Legacy Servicing Compensation and Base Future Servicing Compensation, as applicable and KRECM shall pay such invoice within ten (10) Business Days of receipt of such invoice by wire transfer of funds pursuant to the wire transfer instructions provided by Subservicer to KRECM from time to time.

 

(b)           In addition to the compensation payable pursuant to Section 4.01(a), for each calendar month, the Subservicer shall be entitled to withdraw from the Ancillary Fee Account, one-twelfth of the Floor Component Amount on the 2nd Business Day of the immediately succeeding calendar month (or if such day is not a Business Day, the next succeeding Business Day).  In the event there are insufficient funds to pay the Floor Component Amount for any month, the Subservicer shall be entitled to withdraw the amount of any deficiency from the Servicing Fee Account to the extent of any excess funds are remaining in such account after payment of the Base Legacy Servicing Compensation and Base Future Servicing Compensation, as applicable.  If the funds in the Ancillary Fee Account and any remaining funds in the Servicing Fee Account are insufficient to pay the Floor Component Amount in any month, the Subservicer shall send an invoice via email to KRECM portfolio manager for the balance to KRECM and KRECM shall pay such invoice within ten (10) Business Days of receipt of such invoice by wire transfer of funds pursuant to the wire transfer instructions provided by Subservicer to KRECM from time to time.  The Subservicer shall be entitled to withdraw 100% of Borrower Paid Fees that constitute returned check charges for checks returned for insufficient funds at any time.  The Subservicer shall be entitled to retain  interest or other investment earnings on the deposit amounts in the Accounts (but only to the extent of net investment earnings and to the extent not required to be paid to the Borrower under applicable law or the related loan documents).

 

(c)           On the fifth (5th) Business Day of each calendar month, the Subservicer shall send to KRECM the remaining balance of the Servicing Fee Account and Ancillary Fee Account after reconciliation of the Base Servicing Compensation and Floor Component Amount, if any, by wire transfer pursuant to the wire transfer instructions provided by KRECM to Subservicer from time to time

 

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along with a reconciliation in form and substance agreed to by KRECM and Subservicer showing the calculation of the Base Legacy Servicing Compensation and Base Future Servicing Compensation, as applicable, and Floor Component Amount for the prior calendar month. 

 

Section 4.02.     Inflation Adjustment.

 

Beginning with the Base Servicing Compensation and Floor Component Amounts payable in the month of April, 2013, and on an annual basis thereafter, the Legacy Base Servicing Compensation, the Future Base Servicing Compensation and the Floor Component Fee shall increase by the CPI Adjustment.

 

Section 4.03.     Annual True-up of Floor Component Amount.

 

By no later than January 31st of each calendar year, Subservicer shall calculate and deliver to KRECM a calculation (a “Calculation Notice”) of any Ancillary True-Up Payments due and payable by KRECM pursuant to this Section 4.03.  As of December 31 of each calendar year, if (x) the aggregate Floor Component Amount paid to Subservicer during such calendar year under all Sub-Servicing Agreements is less than (y) 33.3% of the aggregate Borrower Paid Fees actually collected, received and delivered by Subservicer to KRECM during such calendar year under all Securitization Servicing Agreements (such difference, the “Annual True-up Deficiency”), then KRECM shall, within fifteen (15) Business Days after receiving the Calculation Notice, pay to Subservicer an amount equal to such Annual True-up Deficiency.  Calculations in accordance with the preceding sentence shall be prorated during the first year of this Agreement.  Subservicer’s calculation of the Annual True-up Deficiency shall be subject to KRECM’s review and written approval (which shall not be unreasonably withheld, conditioned, or delayed), which approval shall be deemed granted if not denied within ten (10) Business Days of its receipt of the Subservicer’s calculation.

 

ARTICLE V.

 

KRECM AND THE SUBSERVICER

 

Section 5.01.     Subservicer Not to Assign; Merger or Consolidation of the Subservicer.

 

(a)           The Subservicer may be merged or consolidated with or into any Person if the merger or consolidation does not results in a Change of Control of the Subservicer and no further consents or documentation shall be required by the Subservicer.  Without the prior written consent of the KRECM, which consent may be withheld or conditioned (but shall not be unreasonably delayed) in KRECM’s sole and absolute discretion, the Subservicer shall not (i) assign this Agreement for any reason or the servicing under this Agreement or delegate its rights or duties under this Agreement, or any portion thereof, (ii) transfer all or substantially all of its assets to any Person, or (iii) be merged or consolidated with or into any Person if the merger or consolidation results in a Change of Control of the Subservicer.  For the purposes of this Section 5.01, “Change of Control” means a merger or consolidation in which Subservicer is a constituent entity, the result of which is that Berkshire Hathaway Inc. and/or Leucadia National Corporation ultimately no longer directly or indirectly own greater than 50% of the voting and other equity interests of Subservicer or no longer has the right to control the day-to-day management, or appoint the manager, of Subservicer.  In connection with any assignment, merger or consolidation to which KRECM consents, the assignee, the Person into which the Subservicer is merged or consolidated, or the entity resulting from the merger or consolidation, as applicable, shall be the successor of the Subservicer under this Agreement and shall be deemed to have assumed all of the liabilities of the Subservicer under this Agreement.  In addition, in connection with any proposed transaction under this Section 5.01(a) to which KRECM is willing to provide its consent, KRECM may condition its consent on: (i) KRECM’s receipt of written confirmation that such assignee, successor or surviving Person is

 

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rated by at least one rating agency; (ii) KRECM’s receipt of an agreement executed by such assignee, successor or surviving Person pursuant to which, among other things, it makes the applicable representations and warranties set forth in Section 5.03 and assumes the due and punctual performance and observance of each covenant and condition to be performed and observed by the Subservicer under this Agreement from and after the date of such agreement; (iii) KRECM’s receipt of all information and reports (in writing and in form and substance reasonably satisfactory to KRECM, the Trustee and the Depositor) deemed necessary in order to comply with the reporting obligations under the PSAs; and (iv) the satisfaction of all other requirements pursuant to the PSAs.

 

(b)           The Subservicer shall not resign from this Agreement unless the Subservicer has requested KRECM’s consent to a merger, consolidation, or assignment pursuant to Section 5.01(a) and KRECM is not willing to consent to the proposed transaction.

 

(c)           The Subservicer shall:  (i) maintain in full effect its existence, rights and good standing under the laws of the State of its incorporation, organization or formation, as applicable; (ii) maintain its authorization to transact business in the state or states in which the related Mortgaged Properties are situated if and to the extent required by applicable law to ensure the enforceability of the Mortgage Loans; and (iii) not jeopardize its ability to (A) do business in each jurisdiction in which one or more of the Mortgaged Properties are located, (B) protect the validity and enforceability of this Agreement, the PSA, the Certificates or any of the Mortgage Loans, or (C) perform its respective duties and obligations under this Agreement.

 

Section 5.02.     Liability and Indemnification of the Subservicer and KRECM.

 

(a)           Neither the Subservicer nor any of its directors, officers, agents or employees (the “Subservicer Parties”) shall (subject to Section 6.01(a)) be under any liability to KRECM for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Subservicer or any such Person against any breach of a representation or warranty made in this Agreement, or against any expense or liability specifically required to be borne thereby without right of reimbursement pursuant to the terms of this Agreement or imposed on the Subservicer pursuant to Section 2.01 for a breach of the Accepted Subservicing Practices, or against any liability which would otherwise be imposed by Section 5.02(c), including by reason of misfeasance, bad faith, fraud, negligence or willful violation of applicable law in the performance of its obligations or duties under this Agreement or by reason of the negligent disregard of its obligations or duties under this Agreement.  The Subservicer and any director, officer, agent or employee of the Subservicer may rely in good faith on any document of any kind that, prima facie, is properly executed and submitted by any appropriate Person respecting any matters arising under this Agreement.

 

(b)           KRECM shall indemnify and hold harmless the Subservicer Parties from and against any loss, liability, cost or expense (including reasonable legal fees and expenses) incurred in connection with any legal action or claim incurred (i) related to any servicing of any Mortgage Loan by any Person other than the Subservicer prior to the Effective Date of this Agreement, (ii) by reason of KRECM’s (A) willful misfeasance, bad faith or negligence in the performance of any of its obligations or duties under this Agreement, (B) material breach of any of its covenants, obligations or duties under this Agreement, (C) willful violation of applicable law in the performance of any of its obligations or duties under this Agreement, or (D) breach of a representation or warranty made by KRECM in this Agreement, or (iii) by reason of the taking, or the refraining from the taking, of any action, by the Subservicer, pursuant to the express written direction of KRECM (knowledge or approval by KRECM not being “direction” for this purpose).  Subservicer shall not have any direct rights of indemnification that may be satisfied out of assets of the related Trust Fund.  KRECM agrees to use reasonable efforts to pursue the Trust for

 

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indemnification against any loss, liability or expense incurred by the Subservicer in connection with the performance of the Subservicer’s duties and obligations under this Agreement as to which the PSA grants to KRECM’s agents a right to indemnification from the Trust Fund.

 

(c)           The Subservicer shall cooperate with KRECM and its agents in connection with any effort by KRECM to pursue the Trust for indemnification at any time, including by providing copies or originals from any applicable Subservicing Files and making employees and agents with knowledge related to the applicable matter available to KRECM, including by providing affidavits and testimony in connection with any litigation or similar proceeding. To the extent allowed by the related PSA, KRECM agrees to use reasonable efforts to pursue the Trust for any indemnification costs due to the Subservicer. KRECM shall cooperate with the Subservicer and its agents in connection with any effort by Subservicer to pursue the Trust for indemnification (if and only to the extent permitted to pursue the Trust pursuant to the related PSA) at any time.  KRECM shall also assist Subservicer with respect to any indemnification at any time, including by providing copies or originals from any applicable KRECM Files and making employees and agents with knowledge related to the applicable matter available to Subservicer, including by providing affidavits and testimony in connection with any litigation or similar proceeding.

 

(d)           The Subservicer shall indemnify and hold harmless KRECM and any directors, officers, agents or employees of KRECM (the “KRECM Parties”) from and against any loss, damage, liability, penalty, fine, forfeiture, cost or expense (including reasonable legal fees and expenses) incurred in connection with any claim or legal action incurred by reason of the Subservicer’s (i) breach of any representation or warranty made by it in this Agreement, (ii) breach of its obligations under Section 3.06, (iii) certification required under Section 3.06 containing any material inaccuracy, (iv) willful misconduct, misfeasance, bad faith, or negligence in the performance of any of its obligations or duties under this Agreement, (v) material breach of any of its covenants, obligations or duties under this Agreement, (vi) willful violation of applicable law in the performance of any of its obligations or duties under this Agreement; provided that the Subservicer shall not be required to indemnify or hold harmless KRECM for taking any action or refraining from taking any action at the express direction of KRECM or with the specific consent of KRECM, or (vii) breach of Accepted Subservicing Practices.

 

(e)           As promptly as reasonably practicable after receipt by any Subservicer Party or KRECM Party, as applicable, seeking indemnification under this Agreement (each an “Indemnified Party”), of notice of the commencement of any action, such Indemnified Party will notify KRECM or the Subservicer, as applicable (the “Indemnifying Party”), in writing of the commencement thereof; but the omission to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability that it may have to any Indemnified Party under this Section 5.02, except to the extent that such omission has prejudiced the Indemnifying Party in any material respect, or from any other liability the Indemnifying Party  may otherwise have under this Agreement.  In case any such action is brought against any Indemnified Party and it notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party will be entitled to participate therein, and to the extent that it may elect by written notice delivered to the Indemnified Party promptly after receiving the aforesaid notice from such Indemnified Party, to assume the defense thereof, with counsel selected by the Indemnifying Party and reasonably satisfactory to such Indemnified Party; provided, however, if the defendants in any such action include both the Indemnified Party and the Indemnifying Party, and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it or them or other Indemnified Parties that are different from or additional to those available to the Indemnifying Party, the Indemnified Party shall have the right to select separate counsel reasonably satisfactory to the Indemnifying Party to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Party.

 

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Upon receipt of notice from the Indemnifying Party to such Indemnified Party of its election to so assume the defense of such action and approval of counsel by the Indemnified Party (which approval may not be unreasonably withheld, conditioned or delayed), the Indemnifying Party will not be liable for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, unless (i) the Indemnified Party shall have employed separate counsel reasonably satisfactory to the Indemnifying Party in connection with the assertion of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) representing all the Indemnified Parties under this Section 5.02 who are parties to such action), (ii) the Indemnifying Party shall not have employed counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party within a reasonable time after notice of commencement of the action, or (iii) the Indemnifying Party has authorized the employment of counsel for the Indemnified Party reasonably acceptable to the Indemnifying Party and at the expense of the Indemnifying Party; and except that, if clause (i) or (iii) is applicable, such liability shall only be in respect of the counsel referred to in such clause (i) or (iii).

 

The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent (which consent may not be unreasonably withheld, conditioned or delayed) but, if settled with such consent or if there is a final judgment for the plaintiff, the Indemnifying Party shall indemnify the Indemnified Party from and against any loss or liability by reason of such settlement or judgment to the extent required by this Section 5.02.  Notwithstanding the foregoing sentence, if at any time an Indemnified Party shall have requested the Indemnifying Party, in writing, to reimburse the Indemnified Party for reasonable fees and expenses of counsel incurred in good faith or any other reasonable expenses incurred in good faith for which the Indemnifying Party is obligated hereunder, the Indemnifying Party shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than sixty (60) days after receipt by the Indemnifying Party of the aforesaid request, (ii) the Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement, and (iii) such settlement or compromise or consent does not include an express statement as to, or an express admission of, fault, culpability, negligence or a failure to act by or on behalf of the Indemnifying Party or an agent thereof.  If the Indemnifying Party assumes the defense of any proceeding, it shall be entitled to settle such proceeding (x) with the consent of the Indemnified Party or (y) if such settlement provides for an unconditional release of the Indemnified Party in connection with all matters relating to the proceeding that have been asserted against the Indemnified Party in such proceeding by the other parties to such settlement, which release does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Party, without the consent of the Indemnified Party.

 

(f)           This Section 5.02 shall survive the termination of this Agreement and the termination or resignation of KRECM or the Subservicer.

 

Section 5.03.     Representations and Warranties.

 

(a)           The Subservicer hereby represents, warrants and covenants to KRECM that as of the date of this Agreement:

 

(i)           The Subservicer is duly incorporated or organized, as applicable, validly existing and in good standing under the laws of the State of its incorporation or organization, has all licenses necessary to carry on its business as now being conducted and is authorized to transact business in the state or states in which any Mortgaged Property securing the Mortgage Loans is situated, to the extent necessary to comply with applicable law, to ensure the enforceability of each Mortgage Loan, to perform its obligations under this Agreement;

 

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(ii)          The execution and delivery of this Agreement by the Subservicer and its performance under and compliance with the terms of this Agreement will not (A) violate the Subservicer’s organizational documents, (B) constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in a breach of, any material contract, agreement or other instrument to which the Subservicer is a party or by which it is bound or which may be applicable to it or any of its assets, or (C) result in the violation of any law, rule, regulation, order, judgment or decree binding on the Subservicer, which, in the case of (B) or (C), would likely affect materially and adversely (x) the financial condition or operation of the Subservicer or its properties taken as a whole, (y) the ability of the Subservicer to perform its obligations under this Agreement, or (z) the ability of the related Trust to realize on the Mortgage Loans;

 

(iii)         The Subservicer has the full power, authority and legal right to execute and deliver, and to perform all obligations and consummate all transactions involving the Subservicer contemplated by, this Agreement, and has duly and validly authorized the execution, delivery and performance of this Agreement, and has duly executed and delivered this Agreement;

 

(iv)         This Agreement, assuming due authorization, execution and delivery by KRECM, constitutes a legal, valid and binding obligation of the Subservicer, enforceable against it in accordance with its terms, except as such enforcement may be limited by (A) bankruptcy, insolvency, reorganization, liquidation, receivership, moratorium or other laws relating to or affecting creditors’ rights generally, or (B) general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law;

 

(v)          The execution and delivery of this Agreement by the Subservicer and its performance and compliance with the terms of this Agreement will not (A) constitute a violation with respect to (and the Subservicer is not in violation of) any law, any order or decree of any court or arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, (B) result in the creation or imposition of any lien, charge or encumbrance or (C) result in any other event that, in any such case, is reasonably likely to have consequences that would materially and adversely affect (x) the financial condition or operation of the Subservicer or its properties taken as a whole, (y) the ability of the Subservicer to perform its obligations under this Agreement, or (z) the ability of the related Trust to realize on the Mortgage Loans;

 

(vi)         No action, proceeding or litigation is pending or, to the best knowledge of the Subservicer, threatened against the Subservicer, the outcome of which, either in any one instance or in the aggregate, could (A) prohibit the Subservicer from entering into this Agreement, (B) result in any material adverse change in the business, operations, or financial condition of the Subservicer, (C) materially and adversely affect the ability of the Subservicer to perform its obligations under this Agreement, or (D) draw into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be taken in connection with the obligations of the Subservicer contemplated in this Agreement;

 

(vii)        No consent, approval, authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body, is required for the execution, delivery and performance by the Subservicer of or compliance by the Subservicer with this Agreement, or the consummation of the Subservicer’s transactions contemplated by this Agreement, except for those consents, approvals, authorizations or orders obtained, or those registrations or filings made or notices given, prior to the date of this Agreement, and except to the extent that the failure of the Subservicer to be qualified as a foreign entity or licensed in one or more jurisdictions is not necessary for the enforcement of the Mortgage Loans;

 

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(viii)   Each officer, employee and agent of the Subservicer that has responsibilities concerning the servicing and administration of Mortgage Loans is covered by errors and omissions insurance and a fidelity bond in the amounts and with the coverage required by each PSA;

 

(ix)      The Subservicer (A) has not failed to comply with any obligations under Regulation AB with respect to any other securitization and has not failed to comply with any Regulation AB reporting requirements under any pooling and servicing agreement relating to any other series of certificates offered by the Depositor and (B) to its knowledge, has not been listed on any ‘do not hire list’ by the Depositor; and

 

(viii)       The Subservicer is not an Affiliate of the related Trustee.

 

(b)           KRECM hereby represents and warrants to the Subservicer that, as of the date of this Agreement:

 

(i)           KRECM is a corporation, duly organized, validly existing and in good standing under the laws of Ohio, and KRECM is in compliance with the laws of each State in which any Mortgaged Property is located to the extent necessary to perform its obligations under this Agreement, except where the failure to so qualify or comply would not have a material adverse effect on the ability of KRECM to perform its obligations hereunder;

 

(ii)          The execution and delivery of this Agreement by KRECM, and the performance and compliance with the terms of this Agreement by KRECM, will not (A) violate KRECM’s certificate of incorporation and by laws or (B) constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material agreement or other instrument to which it is a party or by which it is bound, or (C) result in the violation of any law, rule, regulation, order, judgment or decree binding on KRECM which, in any case, is likely to materially and adversely affect KRECM’s ability to perform hereunder;

 

(iii)         This Agreement, assuming due authorization, execution and delivery by the Subservicer, constitutes a valid, legal and binding obligation of KRECM, enforceable against KRECM in accordance with the terms hereof, except as such enforcement may be limited by (A) applicable bankruptcy, insolvency, reorganization, liquidation, receivership, moratorium and other laws relating to or affecting creditors’ rights generally, and (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law;

 

(iv)         KRECM is not in violation with respect to any law, any order or decree of any court, or any order, regulation or demand of any federal, state, municipal or governmental agency, which violations are reasonably likely to have consequences that would materially and adversely affect either the financial condition or operations of KRECM or its properties taken as a whole or its ability to perform its duties and obligations hereunder;

 

(v)          No litigation is pending or, to the best of KRECM’s knowledge, threatened against KRECM which, if determined adversely to KRECM, would prohibit KRECM from entering into this Agreement or, in KRECM’s good faith and reasonable judgment, is likely to materially and adversely affect the ability of KRECM to perform its obligations under this Agreement;

 

(vi)         KRECM has full corporate power and authority to enter into and perform in accordance with this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed and delivered this Agreement; and

 

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(vii)        The information provided by KRECM in the Officer’s Certificate attached hereto as Exhibit J is true and correct in all material respects as of the date provided.

 

(c)           Upon discovery by either KRECM or the Subservicer of a breach of any of the foregoing representations and warranties, the party discovering such breach shall give prompt written notice thereof to the other party.

 

(d)           The representations and warranties of the Subservicer and KRECM set forth in the provisions in this Section 5.03 shall survive the execution and delivery of this Agreement and shall inure to the benefit of the Persons for whose benefit they were made for so long as the Trust remains in existence.

 

ARTICLE VI.

 

EVENTS OF DEFAULT; TERMINATION

 

Section 6.01.     Events of Default.

 

(a)           “Subservicer Event of Default”, wherever used in this Agreement, means any one of the following events:

 

(i)           any act, omission, or failure to act by the Subservicer that results in a written notice of an Event of Default, or a written notice of a default that after the expiration of an applicable notice or cure period will become an Event of Default, under the related PSA being delivered to KRECM or to the Subservicer by a party to such PSA and,

 

(A)           in the case of a default for which the master servicer has a cure period under the applicable PSA that is at least ten (10) days long, the Subservicer fails to cure such default within a time period that is five (5) days less than the cure period provided to the master servicer in the applicable PSA and after receiving written notice of the default from KRECM at least two (2) Business Days prior to the expiration of the cure period provided to the Subservicer hereunder; or

 

(B)           in the case of a default for which the master servicer has a cure period under the applicable PSA that is less than ten (10) days long, the Subservicer fails to cure such default within a time period that is one (1) Business Day less than the cure period provided to the master servicer in the applicable PSA and after receiving prompt notice of the default from KRECM prior to the expiration of the cure period provided to the Subservicer hereunder; or

 

(ii)           any act, omission, or failure to act by the Subservicer that constitutes, causes, or results in an Event of Default of KRECM under any PSA, which Event of Default is not cured within the time period for cure set forth in the applicable PSA and which provides any party to the PSA with the right to terminate KRECM or cause KRECM to be terminated as the master servicer under the applicable PSA; or

 

(iii)           any act, omission, or failure to act by the Subservicer that causes KRECM to be terminated or results in KRECM being terminated as the master servicer under the applicable PSA; or

 

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(iv)           any failure by the Subservicer to remit to KRECM any amount required to be so remitted by the Subservicer pursuant to and in accordance with this Agreement, which failure continues unremedied until 6:00 p.m. (New York City time) on the date such remittance is due; provided that to the extent the Subservicer does not timely make remittances, the Subservicer shall pay to KRECM interest on any amount not timely remitted at the prime rate from and including the applicable required remittance date to but not including the date such remittance is actually made; or

 

(v)           any failure by the Subservicer to timely deliver to KRECM or any other Person any report or information required to be delivered pursuant to this Agreement, which failure continues unremedied for one (1) Business Day after the Subservicer’s receipt of notice from KRECM of such failure; or

 

(vi)           except as otherwise permitted pursuant to this Agreement, the Subservicer’s (A) assignment of this Agreement, (B) assignment or delegation of all or any portion of its servicing duties or obligations under this Agreement, or (C) assignment of all or any portion of its rights to servicing compensation under this Agreement, which assignment would have a material adverse effect on the performance by Subservicer of its duties pursuant to this Agreement; or

 

(vii)           any failure by the Subservicer to deposit into the Accounts any amount required to be so deposited under this Agreement, which failure continues unremedied for one (1) Business Day following the date on which such deposit was first required to be made; or

 

(viii)           except for the events listed in Sections 6.01(a) (ii), (iii), or (vi), any failure on the part of the Subservicer to observe or perform in any material respect any other of the covenants or agreements on the part of the Subservicer contained in this Agreement, which failure continues unremedied for a period of twenty-five (25) days (or ten (10) days in the case of a failure to pay the premium for any insurance policy required to be maintained) after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Subservicer; provided, however, that, with respect to any such failure (other than a failure to pay insurance policy premiums) that is not curable within such twenty-five (25) day period, the Subservicer shall have an additional cure period of thirty (30) days to effect such cure so long as the Subservicer has commenced to cure such failure within the initial twenty-five (25) day period and has provided KRECM with an Officer’s Certificate certifying that it has diligently pursued, and is continuing to pursue, a full cure and such delay does not materially or adversely affect KRECM or the Certificateholders

 

(xi)           any failure by the Subservicer to (A) comply with any of the requirements under Section 3.06 of this Agreement or under the PSA that are applicable to the Subservicer, including the failure to deliver any reports or certificates at the time such report or certification is required under this Agreement or the PSA or (B) deliver any performance certification or any items required by Items 1122 and 1123 of Regulation AB that it is required to deliver under any other pooling and servicing agreement relating to any other series of certificates offered by the Depositor; or

 

(x)           a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law for the appointment of a conservator, receiver, liquidator, trustee or similar official in any bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Subservicer and such decree or order shall have remained in force undischarged, undismissed or unstayed for a period of fifty (50) days; or

 

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(xi)           the Subservicer shall consent to the appointment of a conservator, receiver, liquidator, trustee or similar official in any bankruptcy, insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to it or of or relating to all or substantially all of its property; or

 

(xii)           the Subservicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable bankruptcy, insolvency or reorganization statute, make an assignment for the benefit of its creditors, voluntarily suspend payment of its obligations, take any corporate action in furtherance of the foregoing, or take any other actions indicating its insolvency or inability to pay its obligations; or

 

(xiii)           KRECM receives notice that if the Subservicer continues to act in such capacity, the rating or ratings on one or more classes of Certificates will be downgraded or withdrawn, and the related rating agency is citing servicing concerns relating to the Subservicer as the sole or material factor in such action; or

 

(xiv)           failure by the Subservicer to maintain the ratings required of a subservicer under the related PSA; or

 

(xv)           a rating agency has (i) qualified, downgraded or withdrawn its rating or ratings of one or more classes of Certificates, or (ii) placed one or more classes of Certificates on “watch status” in contemplation of rating downgrade or withdrawal and, in the case of either of clauses (i) or (ii), citing servicing concerns with the Subservicer as a material factor in such rating action (and such qualification, downgrade, withdrawal or “watch status” placement has not been withdrawn by such rating agency within twenty (20) days of such event).

 

(b)           Upon any Subservicer Event of Default, KRECM (or the Depositor, if expressly stated in the applicable PSA) may, by notice in writing to the Subservicer, in addition to whatever rights KRECM may have at law or in equity, including injunctive relief and specific performance, may immediately terminate all of the rights and obligations of the Subservicer under the related PSA and in and to the related Mortgage Loans and the proceeds thereof, without KRECM (or the Depositor, if applicable) incurring any penalty or fee of any kind whatsoever in connection therewith.  All accrued and unpaid Subservicing Fees as of the date of termination shall be paid to the Subservicer and the Subservicer Parties shall continue to be entitled to the benefits of Section 5.02 of this Agreement notwithstanding any such termination (provided, however, that nothing herein shall constitute or be deemed to constitute a waiver of any rights of offset or other remedies, claims, or defenses KRECM may have to withhold any payments to be made to the Subservicer hereunder).

 

(c)           [Intentionally Omitted].

 

(d)           Except as otherwise expressly provided in this Agreement, no remedy provided for by this Agreement shall be exclusive of any other remedy, and each and every remedy shall be cumulative and in addition to any other remedy and no delay or omission to exercise any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Subservicer Event of Default.  On or after the receipt by the Subservicer of such written notice of termination from KRECM (or the Depositor, if applicable), all authority and power of the Subservicer in this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be vested in KRECM, and the Subservicer agrees to cooperate with KRECM in effecting the termination of the Subservicer’s responsibilities and rights under this Agreement, including the remittance of funds and the transfers of the Subservicing Files as set forth in Section 6.02.

 

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(e)           Upon discovery by the Subservicer of any Subservicer Event of Default (regardless of whether any notice has been given as provided in this Agreement or any cure period provided in this Agreement has expired), the Subservicer shall give prompt written notice thereof to KRECM.

 

(f)           KRECM may waive in writing any default by the Subservicer in the performance of its obligations under this Agreement and its consequences.  Upon any such waiver of a past default, such default shall cease to exist, and any Subservicer Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement.  No such waiver shall extend to any subsequent or other default or impair any right consequent thereon except to the extent expressly so waived.

 

Section 6.02.     Termination of Agreement.

 

(a)           This Agreement shall be terminated:

 

(i)           with respect to any Mortgage Loan, upon the purchase, repurchase or replacement of such Mortgage Loan pursuant to the applicable PSA; or

 

(ii)           with respect only to the applicable Mortgage Loans serviced pursuant to the applicable PSA, if KRECM’s responsibilities and duties as master servicer under the related PSA have been assumed by the Trustee, its designee or any other successor to KRECM, and the Trustee, its designee or any other successor to KRECM has elected to terminate this Agreement; or

 

(iii)           with respect only to the applicable Mortgage Loans serviced pursuant to the applicable PSA, pursuant to Section 6.01, if KRECM (or the Depositor, if applicable) elects to terminate the Subservicer following a Subservicer Event of Default; or

 

(iv)           if required by the applicable PSA, with respect to any Mortgage Loan, upon such Mortgage Loan becoming a Specially Serviced Loan or REO Loan pursuant to the PSA; or

 

(v)           pursuant to any other agreement between KRECM and the Subservicer in accordance with any provision therein that expressly provides for the termination of this Agreement.

 

(b)           If KRECM’s responsibilities and duties as master servicer under the applicable PSA have been assumed by the Trustee, and in connection therewith the Trustee has not requested the termination of this Agreement as permissible in the applicable PSA, the Trustee may, without act or deed on the part of the Trustee, succeed to all of the rights and, except to the extent they arose prior to the date of such succession, obligations of KRECM under this Agreement as provided in applicable PSA, and the Subservicer shall be bound to the Trustee under all of the terms, covenants and conditions of this Agreement with the same force and effect as if the Trustee was originally KRECM under this Agreement; and the Subservicer does hereby attorn to the Trustee, as KRECM under this Agreement, said attornment to be effective and self-operative without the execution of any further instruments on the part of any of the parties hereto immediately upon the Trustee succeeding to the interest of KRECM under this Agreement.  The Subservicer agrees, however, upon written demand by the Trustee to promptly execute and deliver to the Trustee an instrument in confirmation of the foregoing provisions, satisfactory to the Trustee, in which the Subservicer shall acknowledge such attornment and shall confirm to the Trustee its agreement to the terms and conditions of this Agreement.  References to the Trustee under this Section 6.02 shall include any designee of the Trustee or any successor master servicer under the applicable PSA.

 

(c)           In connection with any termination under Section 6.02, the Subservicer shall: (i) within five (5) Business Days after the Subservicer’s receipt of the notice of termination, remit all funds in the related Accounts to KRECM or such other Person designated by KRECM, net of accrued Subservicing

 

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Fees and Additional Subservicing Compensation through the termination date that are due and payable to the Subservicer  (provided, however, that nothing herein shall constitute or be deemed to constitute a waiver of any rights of offset or other remedies, claims, or defenses KRECM may have to withhold any payments to be made to the Subservicer hereunder); (ii) promptly (and in no event later than ten (10) Business Days after the Subservicer’s receipt of the notice of termination) deliver all related Subservicing Files to KRECM or its designee; and (iii) fully cooperate with KRECM to effectuate an orderly transition of the servicing of the related Mortgage Loans.  All rights of the Subservicer relating to the payment of its Subservicing Fees and Additional Subservicing Compensation and all liabilities of the Subservicer, which in any such case accrued under the terms of this Agreement on or before the date of such termination, shall continue in full force and effect until payment or other satisfaction in accordance with this Agreement, and nothing herein shall constitute or be deemed to constitute a waiver of any rights of offset or other remedies, claims, or defenses KRECM may have to withhold any payments to be made to the Subservicer hereunder.

 

(d)           In addition to Section 6.02(a), with respect to certain PSAs where Freddie Mac is the guarantor, Freddie Mac may have the right under the related PSA to (i) direct KRECM to terminate this Agreement with respect to the applicable Mortgage Loans if Freddie Mac determines (in accordance with the provisions of the Guide) that the Subservicer should not subservice the applicable Mortgage Loans, (ii) direct KRECM to terminate this Agreement if a Ratings Trigger Event occurs with respect to the Subservicer, and (iii) direct KRECM to terminate this Agreement if the Subservicer becomes an Affiliate of the related Trustee.  Any termination in connection with clause (i), (ii) or (iii) shall be at the expense of Freddie Mac.  If the Subservicer is terminated pursuant to clause (i), (ii) or (iii), then for sixty (60) days after such termination, the Subservicer shall have the right to sell its subservicing to either KRECM or another subservicer acceptable to Freddie Mac.

 

ARTICLE VII.

 

MISCELLANEOUS PROVISIONS

 

Section 7.01.     Amendment; Amendment to any PSA.

 

(a)           This Agreement, including the provisions of this Section 7.01, may not be modified except by written amendment to this Agreement signed by the party or parties affected by such modification, and the parties hereby: (a) expressly agree that it shall not be reasonable for either of them to rely on any alleged, non-written amendment to this Agreement; (b) irrevocably waive any and all right to enforce any alleged, non-written amendment to this Agreement; and (c) expressly agree that it shall be beyond the scope of authority (apparent or otherwise) for any of their respective agents to agree to any non-written modification of this Agreement.

 

(b)           Notwithstanding Section 7.01(a), in the event KRECM is no longer the master servicer with respect to any Legacy CMBS transactions or Future CMBS transactions, Exhibit A to this Agreement shall be amended to reflect the same and in connection with any transfer of its master servicing rights KRECM shall use commercially reasonable efforts to cause any successor master servicer to execute a subservicing agreement substantially similar to this Agreement, which will not materially alter the obligations, rights and remedies, nor the Subservicer’s compensation, as set forth in this Agreement.

 

Section 7.02.     Governing Law.

 

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This Agreement shall be construed in accordance with the laws of the State of New York, and the obligations, rights and remedies of the parties under this Agreement shall be determined in accordance with such laws.

 

Section 7.03.     Notices.

 

(a)           All demands, notices and communications under this Agreement shall be in writing and addressed in each case as follows:

 

(i)           if to the Subservicer, at:

 

Berkadia Commercial Mortgage LLC

118 Welsh Road

Horsham, Pennsylvania 19044

Attn:  Mark E. McCool

Fax:  215-328-3478

 

With a copy to:

 

Berkadia Commercial Mortgage LLC

118 Welsh Road

Horsham Pennsylvania 19044

Attn:  General Counsel

Fax:  215-682-0766

 

(ii)           if to KRECM, at:

 

KeyCorp Real Estate Capital Markets, Inc.

11501 Outlook Street, Suite 300

Overland Park, Kansas 66211

Attn:  Bryan Nitcher

Fax:  877-379-1625

 

with a copy to:

 

KeyBank National Association

127 Public Square

Cleveland, Ohio  44114

Attn:  Robert C. Bowes, Esq.

Fax:  216-689-5681

 

and with a copy to:

 

Polsinelli Shughart PC

700 West 47th Street, Suite 1000

Kansas City, Missouri  64112

Attn:  Kraig Kohring

Fax:  816-753-1536

 

Notwithstanding the foregoing, solely with respect to any Event of Default set forth in Section 6.01(a)(i)(B), because of the very short time periods involved notice provided by a telephone call from KRECM to the Subservicer’s Responsible Officer or Mark McCool shall be sufficient notice.

 

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(b)           Any of the above-referenced Persons may change its address for notices under this Agreement by giving notice of such change to the other Persons.  All notices and demands shall be deemed to have been given at the time of the delivery at the address of such Person for notices under this Agreement if personally delivered, mailed by certified or registered mail, postage prepaid, return receipt requested, or sent by overnight courier or telecopy.

 

(c)           To the extent that any demand, notice or communication under this Agreement is given to the Subservicer by a Responsible Officer of KRECM, such Responsible Officer shall be deemed to have the requisite power and authority to bind KRECM with respect to such communication, and the Subservicer may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication.  To the extent that any demand, notice or communication under this Agreement is given to KRECM by a Responsible Officer of the Subservicer, such Responsible Officer shall be deemed to have the requisite power and authority to bind the Subservicer with respect to such communication, and KRECM may conclusively rely upon and shall be protected in acting or refraining from acting upon any such communication.

 

Section 7.04.     Consistency with PSAs; Severability of Provisions.

 

This Agreement shall be subject to the provisions of the applicable PSAs, which provisions shall be paramount and controlling and shall supersede the provisions of this Agreement to the extent of any conflicts or inconsistencies.  If one or more of the provisions of this Agreement shall be for any reason whatever held invalid or unenforceable or shall be determined to be inconsistent with the applicable PSAs, such provisions shall be deemed severable from the remaining covenants, agreements and provisions of this Agreement and such invalidity or unenforceability shall in no way affect the validity or enforceability of such remaining provisions or the rights of any parties hereto.  To the extent permitted by law, the parties hereto hereby waive any provision of law that renders any provision of this Agreement invalid or unenforceable in any respect.

 

Section 7.05.     Inspection and Audit Rights.

 

Any inspection or audit request by KRECM shall not materially increase the obligations or materially impact the cost of servicing by the Subservicer.

 

(a)           The Subservicer agrees that, on reasonable prior notice, it will permit any representative of KRECM or its designee, during the Subservicer’s normal business hours, reasonable access to examine all books of account, records, certifications, reports, statements, and other documents of the Subservicer relating to the Mortgage Loans, to make copies and extracts therefrom, to cause such books to be audited by accountants selected by KRECM, and to discuss matters relating to the Mortgage Loans with the Subservicer’s officers and employees.  The Subservicer further agrees to complete and deliver to KRECM any written survey or questionnaire reasonably requested by KRECM in connection with any audit of the Mortgage Loans or the Subservicer’s performance of its duties and obligations under this Agreement.

 

(b)           To the extent required under applicable law and after reasonable prior written notice to Subservicer (to the extent practicable under the circumstances and to the extent KRECM is legally permitted to provide such notice), Subservicer agrees to allow a Qualified Auditor or KRECM to conduct an audit of Subservicer’s facilities and books related to Subservicer’s OFAC Program and/or AML/BSA Services, and limited to KRECM’s business and the services provided by Subservicer under this Agreement. Any such audit, by a Qualified Auditor, shall be conducted in a manner that does not compromise the privacy or security of data relating to other Subservicer clients or systems not related to the Servicing provided to KRECM by Subservicer and with a minimum disruption to Subservicer’s operations. All Qualified Auditors shall comply with all reasonable confidentiality, non-solicitation and

 

Amended & Restated Master Subservicing Agreement

 

  

37

  

 

EXECUTION VERSION

 

security requirements that Subservicer may reasonably impose, but any such Qualified Auditor may nonetheless request and examine (but not copy) any books or records which KRECM itself could request and/or examine under this Agreement.  Before scheduling such audit, KRECM agrees to first utilize any third-party assessments, reports and materials, such as the Subservicer’s most current annual SSAE 16 engagement report, which will be made available to KRECM annually or upon written request by KRECM; however, KRECM’s review of these materials will not take the place of its audit rights under this Section.

 

(c)           In connection with any examination or audit performed pursuant to Section 7.05(a) or (b), Subservicer shall reasonably cooperate with KRECM to fix, mitigate or otherwise address any problems, findings, or concerns raised in any such examination or audit.

 

(d)           Subservicer shall permit KRECM to audit Subservicer’s compliance with the privacy provisions in Section 3.06(g) and (h) of this Agreement at any time during Subservicer’s regular business hours at KRECM’s expense and with thirty (30) days advance written notice to Subservicer, unless a shorter time period is necessary due to a Security Breach and where the audit is pursuant to OCC compliance or other regulatory or governmental order or for the privacy provisions in Section 3.06(g) and (h) of this Agreement.

 

Section 7.06.     Binding Effect; No Partnership; Counterparts.

 

Subject to Section 5.01 with respect to the Subservicer, the provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto.  The parties hereby acknowledge and agree that the Trustee, for the benefit of the Certificateholders, shall be a third party beneficiary under this Agreement; but (except to the extent that the Trustee or its designee or a successor master servicer assumes the obligations of KRECM under this Agreement pursuant to Section 6.02 of this Agreement) none of the Trust Fund, the Trustee, any successor master servicer, the Special Servicer or any Certificateholder shall have any duties under or any liabilities arising from this Agreement.  Nothing contained in this Agreement shall be deemed or construed to create a partnership or joint venture between the parties hereto and the services of the Subservicer shall be rendered as an independent contractor for KRECM.  For the purpose of facilitating the execution of this Agreement as provided in this Agreement and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute but one and the same instrument.  A signature of a party by facsimile, e-mail or other electronic transmission shall be deemed to constitute an original and fully effective signature of such party.

 

Section 7.07.     Protection of Confidential Information.

 

The Subservicer shall keep confidential and shall not divulge to any party, without KRECM’s prior written consent (which shall not be unreasonably withheld or delayed), any information pertaining to the Mortgage Loans, the Mortgaged Properties or the Borrowers except to the extent that the Subservicer provides prior written notice to KRECM and (a) it is appropriate for the Subservicer to do so (i) in working with its legal counsel, auditors, other advisors or taxing authorities or other governmental agencies, (ii) in accordance with Accepted Subservicing Practices, or (iii) when required by any law, regulation, ordinance, court order or subpoena, or (b) the Subservicer is disseminating general statistical information relating to the mortgage loans being serviced by the Subservicer (including the Mortgage Loans) so long as the Subservicer does not identify the owner of the Mortgage Loans or the Borrowers.

 

Section 7.08.     Construction.

 

Amended & Restated Master Subservicing Agreement

 

  

38

  

 

EXECUTION VERSION

 

The article and section headings in this Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning thereof.  This Agreement shall be construed without regard to any presumption or rule requiring construction against the party causing such instrument or any portion thereof to be drafted.  Any pronoun used in this Agreement shall be deemed to cover all genders.  The terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without being limited to.” The term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision or section of this Agreement.  Words importing the singular number shall mean and include the plural number, and vice versa.

 

Section 7.09.     Sole and Absolute Discretion of KRECM.

 

Whenever pursuant to this Agreement (a) KRECM exercises any right given to it to approve or disapprove, (b) any arrangement or term is to be satisfactory to KRECM, or (c) any other decision or determination is to be made by KRECM, the decision of KRECM to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory and all other decisions and determinations made by KRECM, shall be in the sole and absolute discretion of KRECM and shall be final and conclusive, except as may be otherwise expressly and specifically provided in this Agreement.  Whenever pursuant to this Agreement KRECM may not unreasonably withhold, condition or delay its consent, approval or other right, the Subservicer shall have the burden of proving that KRECM has unreasonably withheld, delayed or conditioned such consent, approval or other right.

 

Section 7.10.     Exchange Act Rule 17g-5 Procedures.

 

(a)           Notwithstanding any provision herein to the contrary but subject to Section 7.10(c) of this Agreement and except as required by law, the Subservicer shall not provide any information directly to, or communicate with, either orally or in writing, any Rating Agency or any NRSRO regarding the Certificates or the Mortgage Loans relevant to such Rating Agency’s or such NRSRO’s surveillance of the Certificates or Mortgage Loans, including, but not limited to, providing responses to inquiries from a Rating Agency or a NRSRO regarding the Certificates or the Mortgage Loans relevant to such Rating Agency’s or such NRSRO’s surveillance of the Certificates and requests for Rating Agency Confirmation with respect to any PSA subject to the provisions of Exchange Act Rule 17g-5.  All such information will be provided by, and all such communications, responses and requests will be made by, KRECM in accordance with the procedures required by the applicable PSA.  To the extent that KRECM is required to provide any information to, or communicate with, a Rating Agency or a NRSRO in accordance with its obligations under the applicable PSA and such information or communication is regarding the Mortgage Loans or the subservicing by the Subservicer under this Agreement and is in the possession of (or can be reasonably obtained by) the Subservicer, the Subservicer shall provide the information to KRECM necessary for KRECM to fulfill such obligations.  The Subservicer shall have no liability with regard to KRECM’s failure to provide to the Depositor or any other party (including any Rating Agency) any information that the Subservicer timely delivered to KRECM in accordance with this Agreement.

 

(b)           With respect to any PSA subject to the provisions of Exchange Act Rule 17g-5, the Subservicer hereby expressly agrees to indemnify and hold harmless KRECM and its respective officers, directors, shareholders, members, managers, employees, agents, Affiliates and controlling persons, and the Trust Fund (each, an “Indemnified Party”), from and against any and all losses, liabilities, damages, claims, judgments, costs, fees, penalties, fines, forfeitures or other expenses (including reasonable legal fees and expenses), joint or several, to which any such Indemnified Party may become subject, under the Act, the Exchange Act or otherwise, pursuant to a third-party claim, insofar as such losses, liabilities, damages, claims, judgments, costs, fees, penalties, fines, forfeitures or other expenses (including

 

Amended & Restated Master Subservicing Agreement

 

  

39

  

 

EXECUTION VERSION

 

reasonable legal fees and expenses) arise out of or are based upon the Subservicer’s breach of this Section 7.10, including, without limitation, to the extent caused by any breach referred to in this Section 7.10(b) by the Subservicer, a determination by a Rating Agency that it cannot reasonably rely on representations made by the Depositor or any Affiliate thereof pursuant to Exchange Act Rule 17g-5(a)(3), and will reimburse such Indemnified Party for any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim, as such expenses are incurred.

 

(c)           None of the foregoing restrictions in this Section 7.10 prohibit or restrict oral or written communications, or providing information, between the Subservicer and a Rating Agency or NRSRO with regard to (i) such Rating Agency’s or NRSRO’s review of the ratings it assigns to the Subservicer, (ii) such Rating Agency’s or NRSRO’s approval of the Subservicer as a commercial mortgage master, special or primary servicer or (iii) such Rating Agency’s or NRSRO’s evaluation of the Subservicer’s servicing operations in general; provided, however, that the Subservicer shall not provide any information relating to the Certificates or the Mortgage Loans to a Rating Agency or a NRSRO in connection with such review and evaluation by such Rating Agency or NRSRO unless (x) borrower, property or deal specific identifiers are redacted; or (y) KRECM confirms to the Subservicer in writing that such information has already been provided to the Depositor and has been uploaded on to the 17g-5 Information Provider’s Website.

 

[Remainder of Page Intentionally Blank; Signature Page Follows]

 

Amended & Restated Master Subservicing Agreement

 

  

40

  

 

EXECUTION VERSION

 

IN WITNESS WHEREOF, KRECM and the Subservicer have caused this Agreement to be duly executed as of the date first above written.

 

	 	
SUBSERVICER:

	 	 	 
	 	
BERKADIA COMMERCIAL MORTGAGE LLC,

a Delaware limited liability company

	 	 	 
	 	By:	 /s/ Mark E. McCool
	 	
Name:  Mark E. McCool

	 	
Title:  Executive Vice President

	 	 	 
	 	
KRECM:

	 	 	 
	 	
KEYCORP REAL ESTATE CAPITAL MARKETS, INC.,

an Ohio corporation

	 	 	 
	 	By:	 /s/ Edward J. Burke
	 	
Name:  Edward J. Burke

	 	
Title: President

 

Amended & Restated Master Subservicing Agreement

KRECM & Berkadia

 

  

  

  

 

EXECUTION VERSION

 

EXHIBIT A

 

CMBS TRANSACTION

 

	
Securitization

	
Pooling and Servicing Agreement

 

	
GSMSC 2014-GC20

 

	
Pooling and Servicing Agreement dated April 1, 2014 

 

 

Amended & Restated Master Subservicing Agreement

 

  

A-1

  

 

EXECUTION VERSION

 

EXHIBIT B

 

REMITTANCE REPORT

 

	
 Subservicer Name:

	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  
	
 Securitization Name:

	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  
	
 Scheduled Remittance Report

	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  
	
 Date:

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  
	
Master 

Servicer 

Loan #

	 	
Subservicer 

Loan 

Number

	 	
Beginning 

Principal 

Balance

	 	
P & I Due

	 	
Principal Due

	 	
Principal Received

	 	
Interest Due

	 	
Interest Received

	 	
 Unscheduled

Principal Collections

	 	
 Ending Balance 

	
 Scheduled  P & I

	
Less:  Delinquent 

Amount

	
Less:  Servicing  Fee

	
 Net Pass 

Thru

	
Late Charges

	
 Default

 Interest 

	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
-   

	  	  	  	
-   

	  	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	
-   

	  	  	  	
-   

	  	  
	
Total all Loans:

	 	 	
-   

	 	
-   

	 	
-   

	 	
-   

	 	
-   

	 	
-   

	 	
-   

	 	
-   

	
-   

	
-   

	
-   

	
-   

	
-   

	
-   

	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	 	  
	
 Scheduled P&I

	 	  	 	  	 	  	 	-   	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	   
	
 Service Fee

	 	  	 	  	 	  	 	-   	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	  
	
Net P&I scheduled to Master Servicer

	 	  	 	
$0.00

	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	  
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	  
	
Actual Net P&I sent to Master Servicer

	 	  	 	-   	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	   
	
 DIFFERENCE

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	  	  	  	  	  	  	  	 	  

 

Amended & Restated Master Subservicing Agreement

 

  

B-1

  

 

EXHIBIT C 

 

INSPECTION REPORT

 

(See Attached)

 

Amended & Restated Master Subservicing Agreement

 

  

C-1

  

 

	  	  	  	  	  	  	  	  	  	  
	
I. Physical Inspection of the Property and its Neighborhood

	  	
A.

	
 PRE-INSPECTION RESPONSIBILITIES

	  	  	  	
1

	
The inspection is to be performed within 45 days before the inspection due date. If that is not feasible, please contact Key as soon as possible so that an alternative inspection date may be arranged.

	  	  	  	
2

	
The borrower is to be contacted at least two weeks prior to the inspection

	  	  	  	
3

	
If the borrower is not responsive then notify the property contact.

	  	  	  	
4

	
If the borrower is not cooperative let Key know as soon as possible.

	
   B. DRIVE THE NEIGHBORHOOD (1-MILE RADIUS OF PROPERTY).

	  	  	  	
1

	
Note vacant land, new construction, proximity to major thoroughfares and amenities (grocery/drug, hard and soft goods), schools & churches, hotels and transportation).

	  	  	  	
2

	
Note environmentally sensitive properties in close proximity to the property.

	
   C. MEET WITH THE PROPERTY MANAGER BEFORE INSPECTING THE PROPERTY.

	  	  	 	
1

	
Do not inspect the property without a representative of the Mortgagor to escort you.

	  	  	 	
2

	
Provide written correspondence from Key and a representative’s business card to the property contact.

	
   D. PERFORM EXTERIOR PROPERTY INSPECTION.

	  	  	  	
1

	
Walk the entire property line and look for potential easements and encroachments.

	  	  	  	
2

	
Look for staining/spills on grass areas, pavement areas, dumping (garbage, oils, etc.). Environmentally sensitive tenants include:

	  	  	  	  	  	
*

	
Dry Cleaners.

	  	  	  	  	  	
*

	
Paint Stores.

	  	  	  	  	  	
*

	
Restaurants.

	  	  	  	  	  	
*

	
Gas Stations.

	  	  	  	
3

	
Inspect all exterior roof lines - note sagging, swaying, etc. Inspect all roofs (if access is readily available). Note roof construction type (pitched, flat, hip roof, etc.). Problems to note:

	  	  	  	  	  	
*

	
Bubbling or collection of water.

	  	  	  	  	  	
*

	
Absence of rock or gravel.

	  	  	  	  	  	
*

	
Cracking or splitting of seams.

	  	  	  	  	  	
*

	
Flashing around side and check for separation from parapet wall.

	  	  	  	  	  	
*

	
Equipment on roof - most common roof leak caused by improper compressor mounting.

	  	  	  	
4

	
Inspect for trees or vines growing over roof and out of gutters, soffits underneath eaves, window frames, exterior wood trim (buckling, need for paint), brick work and mortar, sidewalks, landscaping and vegetation.

	  	  	  	
5

	
Inspect exterior stairs (concrete treads, hand rails, balconies (susceptible to rot), swimming pool (check plaster, deck, equipment, jacuzzi), carports, and garages.

	  	  	  	
6

	
Parking lot curbs – general pavement condition (sealed, patched or striped).

	
   E. PERFORM INTERIOR INSPECTION OF PROPERTY.

	  	  	  	
1

	
Multifamily: Inspect 5% of the occupied units (maximum of 7), 20% of vacant units (maximum of 5) and all down units (note unit numbers of down units and reason for being down).

	 	 	 	 	
Note general condition of fixtures and appliances (obsolete, functioning properly, fairly new, etc). Things to look for:

	  	  	  	  	  	
*

	
Refrigerators, disposal, gas or electric range, dishwasher, microwave.

	  	  	  	  	  	
*

	
Hot water heaters capacity and age, boilers.

	  	  	  	  	  	
*

	
Condition of carpet, draperies and window coverings, ceilings, etc.

	  	  	  	  	
For any deferred maintenance note exact location (building number and/or address and unit number and/or location on exterior of building).

	  	  	  	
2

	
Retail: Inspect 20% of the occupied units (maximum of 5), 20% of vacant units (maximuim of 5) and all down units. Susceptible to environmental problems. Provide comments concerning their observations and reasons for concern. Interview shop owners. Note deferred maintenance (i.e., stained ceiling tiles, worn carpet, etc.). Determine who is responsible for tenant improvements.

	  	  	  	
3

	
Industrial: Inspect 20% of the occupied units (maximum of 5), 20% of vacant units (maximuim of 5) and all down units. Susceptible to environmental problems. Provide comments concerning their observations and reasons for concern. Note office/warehouse split (if applicable). Inspect roofs if access is readily available.

	  	  	  	
4

	
Office: Inspect 20% of the occupied units (maximum of 5), 20% of vacant units (maximuim of 5) and all down units. Discuss leasing plan (including any tenant build outs) with property manager. Note condition of mechanical/boiler room and roof (if access is readily available).

	  	  	  	
5

	
Hotel: Inspect 5% of all units with a minimum of two units and a maximum of ten.

	
II. The Property Inspection Package

	  	
A. COMPLETE THE PROPERTY INSPECTION PACKAGE.

	  	  	  	  	
It should consist of the following:

	  	  	  	
1

	
MBA (or other specified) property inspection form.

	  	  	  	

2

	
Rent Roll - Please collect a rent roll and verify that it is accurate. (If the contact is not willing to provide a rent roll, then make a notation of that on the inspection.)

	  	  	  	
 

	               Note: The rent roll needs to be submitted in an electronic format, and stored in the Rent Roll worksheet.
	  	  	  	
3

	
Color Photographs (A minimum of 10 photos - no panoramic).

	  	  	  	
 

	
The following are required photos:

	  	  	  	  	  	
*

	
Exterior.

	  	  	  	  	  	
*

	
Roof (if accessible, if not make a comment on the inspection form).

	  	  	  	  	  	
*

	
Parking area (covered and open).

	  	  	  	  	  	
*

	
Deferred maintenance (interior and exterior).

	  	  	  	  	  	
*

	
Points of ingress-egress for the property.

	  	  	  	  	  	
*

	
Directional photos of major streets providing access to property.

	  	  	  	  	  	
*

	
Vacant units (minimum of two and maximum of five).

	  	  	  	  	  	
*

	
Occupied units (minimum of two and maximum of five).

	  	  	  	  	  	
*

	
All down units.

	  	  	  	  	  	
*

	
Signage (Clearly show current name of property).

	  	  	  	  	  	
*

	
New development in surrounding neighborhood.

	  	  	  	  	  	
 

	
Note: Photographs need to be submitted in an electronic format, and stored in the Photos worksheet.

	  	  	  	4 	
A copy of the annual franchise report on hotels or a copy of the annual government survey on health care facilities.

	  	  	  	
5

	
Confirm the name of the property is the same as on the Lender’s Request form.

	  	  	  	
 

	 	 	(Note, in bold type, on the inspection form if the property has changed names. For hotels, note if the franchise flag has changed. Specify in General Comments box.)
	  	  	  	6	
Inspections are to be submitted to Key within the time frame described in Section 3.01(n) of the Subservicing Agreement.

	  	  	  	
7

	
Inspections are to be submitted on a CD in excel format, with one electronic file per property to include the MBA inspection form, photos and rent roll. 

Image any franchise reports or annual government surveys into the workbook labeled “Additional Reports”.

	  	  	  	
8

	
Inspection files are not to exceed 50 meg in size.

	  	  	  	  	 	 	Note: You can minimize the size of the files by reducing the resolution of the photos, by inserting the photos into the file instead of using the cut and paste feature and saving as an Excel “workbook”.
	  	  	  	
9

	
The CD or Excel spreadsheet needs to contain a file reflecting the date of inspection of each property with the coinciding Key loan number.

	  	  	  	
 

	  	  	  	
Key Loan #

	
Property Name

	
Inspection Date

	  	  	  	  	  	  	  	
        10001001

	
Royal Orleans

	
093003

	  	  	  	  	             Example:    10001001 Royal Orleans 093003.xls without any (.),(,),(-),(/,\),etc.

  

  

  

 

 

	  	

Mortgage Bankers Association

	
 

	  	

Property Inspection Workbook Tools

	  	  
	  	  	  	  
	  	
 General Purpose Tools 

	  	  	  
	  	  	  	  
	 	 	 	 
	  	

Select Check Spelling to run Excel’s spell checker

on all property inspection worksheets.

		  
	  	  	  	  
	  	  	  	  
	 	
Select Print to display the MBA Property Inspection

worksheet selection form where you can select the

	

	 
	  	
worksheet(s) to print.

 

	  	  

 

	  	
 Company Logo 

	  	  	  
	  	  	  	  

	     	  	
	  	 	  
	 	þ Size to fit	 
	

 See separate Instructions Page to insert logo

 

  

 

  

 

 

MBA INSPECTION FORM KEY

 

	
Mortgage Bankers Association

	
Standard Property Inspection Form Definitions

	
For additional information, please refer to the MBA Inspections White Paper

	
Ratings Definitions

	
1

	
New or like new condition

All major building components are new or like new

All vacant units/space are rent ready & reflect the highest current market standards

No deferred maintenance items (only routine maintenance)

No life safety or code violations exist

Positive impact to marketability

Deferred Maintenance and Life Safety – No actions are required

	
2

	
Above average condition for the property’s age and market, minimal wear and tear

All major building components in functional condition

All vacant units/space are rent ready or in the process of being made rent ready

No deferred maintenance items (only routine maintenance)

No life safety or code violations exist

No impact to marketability

Deferred Maintenance and Life Safety – No actions are required

	
3

	

Normal condition for the property’s age and market, general wear and tear.

All major building components in functional condition

Most vacant units or space are rent ready or in the process of being made rent ready

Minimal deferred maintenance and routine maintenance items with costs that can be funded by normal operations

No/minor life safety or code violations exist

No impact to marketability

Deferred Maintenance and Life Safety - Appropriate actions are planned or in progress

	
4

	

Deteriorating condition for the property’s age and market

A building component is not in fully functional condition

Few rent-ready units or space

Limited major deferred maintenance &/or numerous minor deferred maintenance items

Some life safety or code violations exist

Negative impact to marketability

Deferred Maintenance and Life Safety - Actions are not addressed as quickly as required and/or further action is necessary, additional monitoring may be appropriate 

	
5

	
Inferior conditions

Multiple building components non-functional

Vacant units or space are in poor to down condition

Severe deferred maintenance items

Multiple life safety or code violations exist

Negative impact to marketability

Deferred Maintenance and Life Safety – No Action taken and/or further action is necessary – additional monitoring is appropriate

	
 Not

 Applicable

	
No components exists (therefore, no rating is possible)

	
 Not 

 Accessible

	
No component was visible due to inability to view the condition based on access, life safety, weather conditions or other blockages.

Deferred maintenance items can not be determined based on lack of access

Further action or review may be required

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	Page 1

 

  

 

  

 

Inspection - General Info

	 	 	 	 	 	 	 	 	 
		  	  	  	  	  	  
	 	 	 	Standard Inspection Form
	 	 	 
	
 Inspection Date

	  	  	
Time   

	  	  	
Property City

	  	  
	
 Loan Number

	  	  	  	  	  	
Property State/Country

	  	
/    ##### 

	
 Property Name

	  	  	  	  	  	
Overall Property Rating

	  	  
	  	  	  	  	  	  	  	  	  
	
 Servicer, Loan and Contact Information

	
 Servicer Name

	  	  	  	  	  	
Contact Company

	  	  
	
 Owner of Loan

	  	  	  	  	  	
Contact Name

	  	
                /

	
 Investor Number

	  	     	  	  	  	
Contact Phone

	  	  
	
 Investor Loan #

	  	  	  	  	  	
Contact Email

	  	  
	
 Property ID

	  	  	  	  	  	
Addt’l ID #1 (editable)

	  	  
	
 Original Loan Amount

	  	  	  	  	  	
Addt’l ID #2 (editable)

	  	  
	
 Loan Balance (UPB)

	  	  	  	  	  	
O&M Plan(1)

	  	  
	
 Loan Balance as of Date

	  	  	  	  	  	
Report Reviewed By

	  	
                    /

	
 (1) Includes ALL Plans (such as, but not limited to, Operations & Maintenance, Moisture Management and Environmental Remediation)

	
 Property and Inspector Information

	
 Property Name

	  	  	  	
Primary Property Type

	  	  
	
 Property Address

	  	  	  	
Secondary Property Type

	  	  
	
 Property City

	  	  	  	
Inspection Company

	  	  
	
 Property State

	  	  	  	
Inspection Co. Phone

	  	  
	
 Property Zip

	  	  	  	
Inspector’s Name

	  	
                    /

	  	  	  	  	  	  	
Inspector’s ID

	  	  

 

	
 Lender’s or Servicer’s General Comments or Instructions to Inspector for Subject Property:

	  
	  
	  
	  
	 
	  

 

	
 Property Inspector’s General Comments or Suggestions to Lender or Servicer on the Subject Property:

	  
	  
	  
	 
	  
	  

	  	  	  	  	  	  	  
	
 Overview of Property Information

	
 Number of Buildings

	  	  	
Year Built

	  
	
 Number of Floors

	  	  	  	  	
Total Square Feet (Gross)

	  
	
 Number of Elevators

	  	  	  	  	
Total Sq. Feet (Net / Rentable)

	  
	
 Number of Parking Spaces

	  	  	  	  	
Occupied Space

	  
	
 Number of Units / Rooms / Beds

	  	  	  	  	
Vacant Space

	 
	
 Rent Roll obtained at Inspection

	  	  	  	  	
Total Percent Occupied

	 
	
 Total Number of Down Units / Rooms / Beds

	  	  	  	
Annual Occupancy

	  
	
 Unit of Measurement Used

	  	  	  	  	
Annual Turn Over

	  
	  	  	  	  	  	  
	
 Property Offers Rental Concessions

	  	  	  	
If yes, please describe concessions:

	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  

 

	
  Franchise Name

	 	 	
Franchise change since last inspection

	 

	
Copywrite 2008 Mortgage Bankers Association, Washington, DC

	  	  	
1  

 

  

  

  

 

Inspection - General Info

	  	  	  	  	  	  	  	  	  
	
 Number of Occupied Units Inspected

	  	  	  	  	
Number of Vacant Units Inspected

	  	  
	  	  	  	  	  	  	  	  	  
	
 Is there any dark space?

	  	  	  Describe:	 	 
	
 Is there any down space?

	  	  	  Describe:	 	 

	  	  	  	  
	
 Capital Expenditures

	  	  	  
	
 Describe in detail Repairs, Replacements or Capital Improvements

	
Identified Cost

	
Status

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

	  	  	  	  	  	  	  	  
	
 Neighborhood and Site Comparison Data

	
 Is the area declining or distressed

	  	  	  	
Percent Use -%

	
 Is there any new construction in the area

	  	  	
Single Family

	  
	
 Top 2 Major

	
1.

	
Name or Type

	  	  	  	
Multifamily

	  
	
 Competitors:

	  	
  Distance

	  	  	  	
Commercial

	  
	  	
2.

	
Name or Type

	  	  	  	
Industrial

	  
	  	  	
  Distance

	  	  	  	
Undeveloped

	 

 

	
 Describe area, surrounding land use & overall trends (include location in relation to subject property - N, S, E, W):

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	  	  	  	  	  	  	  	  
	
 Management Company Information

	  	  	  
	
 Management Company Name

	  	  	
Phone Number

	  
	
 On Site Contact

	
                              /

	  	
Mgmt Interview

	  
	
 Role or Title of Contact

	  	  	
Length of time at property

	  
	
 Management Affiliation

	  	  	
Change since last inspection

	  	  
	  	  	  	  	  	  	  
	
 Other Information

	
 Additional Collateral Description Information

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
 

Copywrite 2008 Mortgage Bankers Association, Washington, DC

	  	  	
2

 

  

  

  

 

 

	  	 	 	  	  	  	  	  	  	  	  
	  	  	  	

Inspection - Physical Condition     

	 	 	 	 
	
Standard Inspection Form

 

	  	  
	
Inspection Date

	 	
Time    

	 	  	
Property City

	 
	
Loan Number

	 	  	
Property State/Country

	 	
/

	#####  
	
Property Name

	 	  	
Overall Property Rating

	 

 

	
Physical Condition Assessment and Deferred Maintenance

	 

 

	
 Property Assessment

 

	
Physical

Condition

	
Overall

Rating

	
Trend

	
Representative Components

(Not all-inclusive)

	
Inspector Comments

	  	  	  	  	  
	
Curb Appeal

	  	  	

Comparison to Neighborhood; First Impression / Appearance

	  
	  	  	  	  	  
	  	  	  	  	  
	
Site

	  	  	

Subject Property Appearance; Signage; Ingress/Egress; Landscaping; Site Lighting; Parking Lot; Striping; Garage/Carports; Irrigation System; Drainage; Retaining Walls; Walkways, Fencing; Refuse Containment & Cleanliness, Hazardous Material Storage

	  
	  	  	  	  	  
	  	  	  	  	  
	
Building /

Mechanical

systems

	  	  	

HVAC; Electrical; Boilers; Water Heaters; Fire Protection; Sprinklers, Plumbing; Sewer; Solar Systems; Elevators/Escalators; Chiller Plant, Cooling Towers; Building Oxygen Systems; Intercom System; PA System; Security Systems

	  
	  	  	  	  	  
	 	 	 	 	 
	
Building

Exteriors

	  	  	

Siding; Trim; Paint; Windows: Exterior Entry Ways; Stairs; Railings; Balconies; Patios; Gutters; Downspouts; Foundations; Doors; Façade; Structure (Beam/Joist)

	  
	 	 	 	 	 
	  	  	  	  	  
	
Building Roofs

	  	  	

Roof Condition; Roof Access; Top Floor Ceilings; Shingles/ Membrane; Skylights; Flashing; Parapet walls; Mansard roofs.

	  
	  	  	  	  	  
	 	 	 	 	 
	
Occupied

Units / Space

	  	  	

HVAC; Ceiling; Floors; Walls; Painting; Wallcover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical; Bathroom accessories; Plumbing Fixtures; Storage; Basements/Attics

	  
	 	 	 	 	 
	 	 	 	 	 
	
Vacant Units /

Space /

Hotel Rooms

	  	  	

HVAC; Ceiling; Floors; Walls; Painting; Wallcover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical; Bathroom accessories; Plumbing Fixtures; Storage; Basements/Attics

	  
	 	 	 	 	 

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	 1

 

  

  

  

 

Inspection - Physical Condition     

 

	 	 	 	 	 
	
Down Units /

Space /

Hotel Rooms

	 	 	
HVAC; Ceiling; Floors; Walls; Painting; Wallcover; Floor Cover; Tiles; Windows; Countertop; Cabinets; Appliances; Lighting; Electrical; Bathroom accessories; Plumbing Fixtures; Storage; Basements/Attics

	 
	 	 	 	 	 
	 	 	 	 	 
	
Interior

Common

Areas

	 	 	
Mailboxes; Reception Area; Lobby; Food Courts; Dinning Areas; Kitchen; Halls; Stairways; Meeting Rooms; Public Restrooms; Storage; Basement; Healthcare Assistance Rooms; Pharmacy / Medication Storage; Nurses Station

	 
	 	 	 	 	 
	 	 	 	 	 
	

Amenities

	  	  	

Pool; Clubhouse; Gym; Laundry Area / Rooms; Playground; Wireless Access; Restaurant/Bar; Business Center; Sport Courts; Spa; Store; Media Center

	  
	 	 	 	 	 
	 	 	 	 	 
	
Management

Competence

	  	  	
Professionalism; Ability to respond to questions; knowledge of property; knowledge of neighborhood/ market; preparedness for inspection; had all requested paperwork; tenants notified

	  
	 	 	 	 	 

 

	
Exterior - Additional description of the property conditions:

	
  

 

 

	  
	
Interior - Additional description of the property conditions:

	
  

 

 

 

	
 Deferred Maintenance Items

 

	
Identify Item and Describe Condition (including location)

	
Rating

	
Photo

#

	
Life

Safety

	
Est. Cost

	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  
	
  

	  	  	  	  

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	 2

 

  

  

  

 

 

	  	 	 	  	  	  	  	  	  	  	  
	
Standard Inspection Form

 

	  	  
	
Inspection Date

	  	
Time    

	
  

	  	
Property City

	 
	
Loan Number

	
 

	  	
Property State/Country

	
 

	
/

	#####  
	
Property Name

	
 

	  	
Overall Property Rating

	
 

 

	

Photos

 

 

  

1

  

 

Inspection - Mgmt Interview

	  	  	  	  	  	  	  	  	  	  	  
		 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Standard Inspection Form
	 	 	 	 	 	 	 	 	 	 	 
	
Inspection Date

	 	
Time   

	 	  	
Property City

	 	  
	
Loan Number

	 	  	  	  	
Property State/Country

	 	
/

	  ##### 
	
Property Name

	 	  	  	  	
Overall Property Rating

	  	 
	  	  	  	  	  	  	  	  	  	  
	
Management Information & Interview

 

	  	  	  	  	  	  	  
	
Management Company Name

	 	  	
Phone Number

	  	  
	
Name of Information Source

	
                                     /

	  	
Email Address

	  	  
	
Role or Title of Information Source

	  	  	
Length of time at property

	  
	
Management Affiliation

	 	  	
Mgmt change from last inspection

	##### 

	  	  	  
	
In your opinion, how does the property perform compared to similar properties in the area?

	  	  
	
In your opinion, what is the average percentage of vacancy in similar properties in the area?

	  	  
	
Based on market survey, what is the current average rents paid in the area ($ per square foot/units/beds)?

	  	  
	
In your opinion, explain the reason for any variance on vacancy & rents between the market and the subject property:

	  	  
	  	  	  
	  	  	  
	
In the past 12 months, have there been any fires, significant water intrusions or other property damage?

	  	  
	
If yes, explain the location on the property, costs associated, any insurance claims submitted, resolution & leaseability:

	  	  
	  	  	  
	  	  	  
	
In the past 12 months, to the best of your knowledge, have any code violations been received?

	  	  
	
If yes, please describe the violation, the costs associated and any resolution or outstanding issues:

	  	  
	  	  	  
	  	  	  
	
Is the property undergoing any significant rehab/construction?

	  	  
	
If yes, explain the location, size and estimated costs:

	  	  
	  	  	  
	  	  	  
	
Is the property in compliance with ALL O&M Plan(s)?

	  	  
	
(Plans such as, but not limited to, Operations and Maintenance, Moisture Management and Environmental Remediation.)

	  	  
	
If no, please explain which plan(s), the requirements, noncompliance items and estimated costs:

	  	  
	  	  	  
	  	  	  
	
Any change or violations of a Franchise Agreement or License(s) at the property?

	  	  
	
If yes, please explain any change or violation, costs & any resolution or outstanding issues:

	  	  
	  	  	  
	  	  	  
	
To the best of your knowledge, are there any lawsuits pending that may negatively impact the property?

	  	  
	
If yes, please explain:

	  	  
	  	  	  
	  	  	  
	
Other Information or Comments:

	  	  
	  	  	  
	  	  	  

 

	
Copyright 2008 Mortgage Bankers Association, Washington, DC

	
1

  

  

  

 

Inspection - Multifamily

	
Standard Inspection Form

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Inspection Date

	 	  	
Time

	 	  	  	
Property City

	 
	
Loan Number

	 	  	  	
Property State/Country

	 	
 /

	##### 
	
Property Name

	 	  	  	
Overall Property Rating

	 
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Multifamily, Mobile Homes, Cooperative Housing, Student Housing

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Property Information

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Heat at the Property

	  	  	  	
Gas at the Property

	  
	
Water at the Property

	  	  	  	
Trash at the Property

	  
	
Electric at the Property

	  	  	  	
Cable at the Property

	  
	
Change to Major Employer

	  	  	  	
If yes, describe:

	  
	
Change to Commercial/Retail

	  	  	  	
If yes, describe:

	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
 Unit Breakdown

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
# of Bedrms

	
# of Bath

	
# of Units

	
Avg Ft2 / Unit

	
Monthly Rent

	
# Occupied

	
# Vacant

	
# Down

	
# Inspected

	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Totals

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Tenant Profile

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
   Corporate

	  	  	
Military

	  	  	
Seasonal

	  	  	
Seniors

	  	  	
Students

	  	
Other

	
#####

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Property Condition

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Detailed Report of Units Inspected

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Unit #

	
# of Bedrms

	
# of Bath

	
Square Feet

	
Asking Rent

	
Current Use

	
 Overall Condition

	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  

 

	
Copyright 2008 Mortgage Bankers Association, Washington, DC

	
1

 

  

  

  

 

 

	  	 	 	  	  	  	  	  	  	  	  
	  	  	  	

Inspection - Healthcare

	 	 	 	 
	
Standard Inspection Form

 

	  	  
	
Inspection Date

	 	
Time    

	
 

	  	
Property City

	 
	
Loan Number

	
 

	  	
Property State/Country

	
 

	
/

	#####  
	
Property Name

	
 

	  	
Overall Property Rating

	
 

 

	

Healthcare, Nursing Home, Hospitals

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
  Property Information

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
General Information

	
 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Total Number of Beds

	 	  	  	
Number of Beds Occupied

	 
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
% Occupied

	 
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
New Patients Currently being Accepted

	  	  	  	  	  	
Admission Waiting Period

	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	
Proximity to a Hospital

	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Level of Care Breakdown

	
 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Unit Type

	
Total #

Beds

	
Total # Beds Occupied

	
Total # 

Units

	
Total # Units

Occupied

	

Avg. S.F. / 

Unit

	
Monthly

Rent

	
# Beds

Vacant

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Totals	 	 	 	 	 	 	 
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	
Administrator’s Name

	 	 	 	
/

	 	 	 	 	 	 	 	 	
Length of Time at Property

	 	 	 	 	 	 
	 	
Director of Nursing’s Name

	 	 	 	
/

	 	 	 	 	 	 	 	 	
Length of Time at Property

	 	 	 	 	 	 
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Direct Care Staff Numbers

	  	
Day

	
Evening

	
Night

	
Comments

	  	  	  	  	
Nurses -

	
RNs

	  	  	  	  	  
	  	  	  	  	
Nurses -

	
LPNs

	  	  	  	  	  
	  	  	  	  	
Other Direct Care

	  	  	  	  
	  	
Non Direct Care Personnel

	  	  	  	  
	  	
Total Staff

	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Regulatory / Licensing Agency Information

	
 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	
Name of the Agency

	  	  	  	
Contact Person

	
                  /

	
 

	  
	  	
Expiration Date of Operating License

	  	  	
All Licenses Current

	  	  	  
	  	
Date of last Medicare inspection

	  	  	
Property Medicare Certified

	
 

	  
	  	
Date of last Medicaid inspection

	  	  	
Property Medicaid Certified

	
 

	  
	  	
Please describe any violations, costs associated, resolution or outstanding issues:

	  	  	  
	  	  
	  
	  
	  
	  

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	1

 

  

  

  

 

Inspection - Healthcare

	  Property Condition	  	  	  	  	  	  	  	  	  	  	  	  
	 	
Handrails in the halls

	  	  	
Exits clearly marked

	  
	 	
Grab bars present in rest rooms

	  	  	
Intercom System

	  
	 	
Staff interacts well with residents

	  	  	
Generator Function

	  
	 	
Facility looks and smells clean

	  	  	  	  	  	  
	 	
Additional description of any safety or deficiency issues observed:

	  	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	
Units or Beds Inspected

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	Down Units (List the unit #)	 	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	
Detailed Report of Units Inspected

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	 	
Unit #

	
# of Bedrms

	
# of Bath

	
Square Feet

	
Asking Rent

	
Current Use

	
Overall Condition

	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  
	 	  	  	  	  	  	  	  

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	2

 

  

  

  

 

 

	  	 	 	  	  	  	  	  	  	  	  
	
Standard Inspection Form

 

	  	  
	
Inspection Date

	  	
Time    

	
  

	  	
Property City

	  
	
Loan Number

	
  

	  	
Property State/Country

	
 

	
/

	#####  
	
Property Name

	
  

	  	
Overall Property Rating

	
 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Rent Roll

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Rent Roll Attached

	  	  	  	
(Select One)

	  	  
	
Rent Roll Summary Attached

	  	  	  	  	  	  	  
	
Single Tenant Property

	  	  	  	
Lease expires:

	  	  
	
Hospitality Property

	  	  	  	
YTD ADR:

	  	  	
RevPAR: 

	
 

	  	
ADO: 

	  
	  	  	  	  	  	  	  	  	  	  	  
	
Insert Rent Rolls in the space below using Excel commands or via Copy and Paste

 

	Copyright 2008 Mortgage Bankers Association, Washington, DC	1

 

  

  

  

 

Standard Inspection Form

	  	  	  	  	  	  	  	  	  	  	  
	
Inspection Date 

	  	
Time   

	  	  	
Property City   

	 
	
Loan Number 

	  	  	
Property State/Country   

	 
	
Property Name 

	  	  	
Overall Property Rating   

	 	 	 

 

	
Maps

	  

 

	  	
Regional Map

	
	  	  
	  	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	  	  
	  	
Neighborhood Map

	
	  	  
	  	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
Copyright 2008 Mortgage Bankers Association, Washington, DC

	1

 

  

  

  

 

Comprehensive Assessment Addendum

	 	 	 	 	 	 	 	 	 	 	 
		 	 	
 

Standard Inspection Form

	 	 
	
Inspection Date

	  	
Time   

	 	  	
Property City

	  
	
Loan Number

	  	  	
Property State/Country

	  	
  /

	    ##### 
	
Property Name

	    	  	
Overall Property Rating

	  

 

	  	  	  	  	  
	
Limitations of Field Assessment

	  
	
Did you experience any of the following limitations to performing this field assessment: (Choose Yes/No)

	  
	  	
Management unavailable for interview or management experience on the property is less than six months

	  
	  	
Occupied units were unavailable for assessment, or the total number of units available (occupied or unoccupied) was insufficient

	  
	  	
Significant portions of the common areas, amenities or basements, etc. were unavailable for assessment

	  
	  	
Snow was covering most exterior areas (parking lots, roofs, landscape areas)

	  
	  	
Other

	  	  	  
	  	
None

	  	  	  
	  	
Comment:

	  	  	  

	  	  	  
	
Comprehensive Property Assessment Ratings

	  	  	  
	
1.

	
Life Safety (Choose the one that applies from the drop down menu):

	  	  
	  	
Comment:

	  
	  	  	  
	
2.

	
Deferred Maintenance (Choose the one that applies from the drop down menu):

	  	  
	  	
Comment:

	  
	  	  	  
	
3.

	
Routine Maintenance (Choose the one that applies from the drop down menu):

	  	  
	  	
Comment:

	  
	  	  	  
	
4.

	
Capital Needs (Choose the one that applies from the drop down menu):

	  	  
	  	
Comment:

	  
	  	  	  
	
5.

	
Level/Volume of issues noted and appropriate follow-up recommendations (Choose the one that applies from the drop down menu):

	  	  
	  	
Comment:

	  

	  	  	  	  	  	  
	
Overall Rating and Additional Comments

	  
	
Overall Rating Scale:

	
 

 

	  
	  	  	
1 = No substantial concerns observed. No further action required.

	  	  	
2 = Some minor issues noted. Limited follow-up required.

	  	  	
3 = Substantial and/or critical issues noted. Documented follow-up required.

	  	  	
4 = Overall condition showing signs of deterioration. Documented follow-up with possible action plan required.

	  	  	
5 = Severe deferred maintenance observed. Follow-up and substantial action plan required.

	  	  	  	  	  
	  	
Comment:

	
  

	  	  	  	  	  
	
Inspector Information

	  	  	  	  	  
	
Seller/Servicer Certification

	
Date:

	  	  
	  	  	  	  	  
	
First Name:

	  	  	  	  
	
Last name:

	  	  	  	  
	
Title:

	  	  	  	  
	
Phone Number:

	  	  	  	
	Email Address:	 	 	 

 

	Copywrite 2008 Mortgage Bankers Association, Washington, DC	1

 

  

  

  

 

EXHIBIT D

 

TAX, INSURANCE, UCC, AND LETTER OF CREDIT CERTIFICATION

 

Amended & Restated Master Subservicing Agreement

 

  

D-1

  

 

 

KEYCORP REAL ESTATE CAPITAL MARKETS

 

QUARTERLY SERVICING CERTIFICATION

 

RE: Deals: NL 1999-1, FULBBA 1998-C2, GFT 1998-1, DMARC 1998-C1, COMM 1999-1, DLJ 1997-CF2, DLJ 1998-CF1, DLJ 1998-CF2, CHASE 1998-1, ASC 1997-D5, BS 1998-C1, BS 1999-C1, JPM 2000-C9, MCFI 1998-MC2, SBMS 2000-C2, BACM 2000-2, LBUBS 2000-C4, CSFB 1998-C1, KEY 2007-SL1, MLFT 2006-1, CSMC 2006-TFL2, CSMC 2007-TFL1, UBS 2012-C1, CGCMT 2007-FL3, GECMC 2007-C1, CSMC 2007-TFL2, Lehman LLF 2007-C5, LBCMT 2007-C3, CSMC 2007-C4, GS 2012-GC6, BACM 2008-1, JPMCC 2005-LDP4, MLMT 2005-CKI1, CSFBMSC 2005-C6, MLCFC 2006-2, CSMC 2006-C5, MLCFC 2007-5, CSMC 2007-C2, CSMC 2007-C3, COMM 2007-C9, JPM 2011-C5, UBS-CCMT 2011-C1, JPM 2010-CNTR, WMCMT 2003-C1, WMCMT 2007-SL2, WMCMT 2007-SL3, GCCFC 2004-GG1, GMACCMSI 2002-C3, GMACCMSI 2003-C1, GMSCSII 2004-GG2, MSMCII 2003-IQ6, PSSFC 1998-C1, GSMS 2012-GCJ7, PSSFC 1999-NRF1, PSSFC 1999-C2, BACM 2005-3, KEY 2000-C1, BACM 2005-5, BACM 2006-1, DLJ 2000-CKP1, CSFB 2001-CK1, CSFB 2001-CK3, CSFB 2001-CKN5, CSFB 2001-CK6, CSFB 2002-CKP1, CSFB 2002-CKN2, SBMS 2002-KEY2, CSFB 2002-CKS4, CSFB 2003-CK2, CSFB 2003-C3, CSFB 2003-C4, CSFBCM 2004-C1, MLMT 2004-MKB1, MLMT 2004-KEY2, CSFBMSC 2004-C4, CSFBMSC 2004-C5, MLMT 2005-MKB2, CSFBMSC 2005-C2, CSFBMSC 2005-C4, BAML 2012-CRLN, LBCMT 1998-C1, BOA 2001-PB1, BOA 2002-PB2, GECMC 2003-C1, GECMC 2003-C2, MSCI 1999-WF1, AMRS-RM1, Highland Park CDO I, HMI l-CRE CDO 2007-1.

 

Pursuant to the Servicing Agreement(s) between KeyCorp Real Estate Capital Markets and Berkadia Commercial Mortgage LLC, I certify with respect to each mortgage loan serviced by us, as noted above, for KeyCorp Real Estate Capital Markets of the quarter ending September 30, 2012 except as otherwise noted below:

 

All taxes, assessments and other governmental charges levied against the mortgaged premises, ground rents payable with respect to the mortgaged premises, if any, which would be delinquent if not paid, have been paid.

 

All required insurance policies are in full force and effect on the mortgaged premises in the form and amount and with the coverage required by the loan documents.

 

On all required insurance policies, the loss payee is in the name of the Trust.

 

All UCC Financing Statements have been renewed prior to expiration.

 

All reserves are maintained and disbursed in accordance with the loan documents and no expired reserves exist.

 

	  	  	  	  
	
118 WELSH ROAD

	
HORSHAM, PA 19044

	
215.328.3200

	
BERKADIA.COM

 

Amended & Restated Master Subservicing Agreement

 

  

D-2

  

 

All letters of credit are transferred to the Trust as beneficiary and are properly renewed.

 

Lockboxes are being serviced in accordance with the loan documents.

 

All required loan documents, third party reports and underwriting files are complete and all applicable loan documents have been properly assigned to the Trust.

 

Exceptions: none to report

 

Berkadia Commercial Mortgage

 

 

William Doherty 

Vice President 

October 2, 2012

 

Amended & Restated Master Subservicing Agreement

 

  

D-3

  

 

EXHIBIT E

 

ACCOUNT CERTIFICATION

 

	Securitization:	 	 
	 	 	 
	Subservicer:	 	 
	 	 	 
	 	 	  New Account     	 	  Change of Account Information	 
	 	 	 

 

	
Indicate purpose of account (check all that apply):

	 
	 	 	 
	 	 	 Principal & Interest	 	Deposit Clearing	 
	 	 	 	 
	 	 	 Taxes & Insurance	 	Disbursement Clearing	 
	 	 	 	 
	 	 	 Reserves (non-interest bearing)	 	Suspense	 
	 	 	 	 
	 	 	 Reserves (interest bearing)	 

 

	Account Number: 	 
	 
	Account Name:	 
	 	 	 	 
	Depository Institution (and Branch):	 

 

	 	Name:	 

 

	 	Street:	 

 

	 	City, State, Zip: 	 

 

	 	Rating Agency:	 	Rating:	 	 

 

Please note that the name of the account must follow the guideline specifications detailed in the applicable agreement.

 

	Prepared by:	 

 

	Signature:	 

 

	Title:	 

 

	Date:	 

 

	Telephone: 	 	Fax: 	 

 

Amended & Restated Master Subservicing Agreement

 

  

E-1

  

 

EXHIBIT F

 

FORM OF SUBSERVICER PERFORMANCE CERTIFICATION

 

Re:           [TRUST]

 

The undersigned a [title/officer] of Berkadia Commercial Mortgage, LLC, a Delaware limited liability company, as subservicer (the “Subservicer”) under that certain subservicing agreement dated and effective as of [_____________, 2012] (the “Subservicing Agreement”) between Subservicer and KeyCorp Real Estate Capital Markets, Inc. (“KRECM”) whereby the Subservicer agreed to perform certain of KRECM’s servicing responsibilities under that certain pooling and servicing agreement dated as of [_____________] (the “Pooling and Servicing Agreement”) among [LIST THE PARTIES TO THE PSA], on behalf of Subservicer, certify to [Name of Certifying Person(s) for Sarbanes-Oxley Certification], KRECM, the Trustee, the Depositor and their respective officers, directors and affiliates, and with the knowledge and intent that they will rely upon this certification, that:

 

1.           I have reviewed the servicing reports relating to the Mortgage Loans delivered by the Subservicer to KRECM pursuant to the Subservicing Agreement, including all information, disclosures and reports required under Section 3.06 (collectively, the “Subservicer Reports”), during the year 20__ (the “Relevant Period”);

 

2.           Based on my knowledge, with respect to the Relevant Period, all servicing information, disclosures and reports required to be submitted by the Subservicer to KRECM pursuant to the Subservicing Agreement, including all information, disclosures and reports required under Section 3.06 for the Relevant Period, have been submitted by the Subservicer to KRECM;

 

3.           Based on my knowledge, the information contained in the Subservicer Reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the Relevant Period;

 

4.           I am responsible for reviewing the activities performed by the Subservicer and, based on my knowledge and the compliance review conducted in preparing the annual compliance statement required under Section 3.06(f) of the Subservicing Agreement, during the Relevant Period, and except as disclosed in the annual officer’s certificate required under such Section 3.06(f), the Subservicer has fulfilled its obligations under the Subservicing Agreement; and

 

5.           The Subservicer’s report on assessment of compliance with servicing criteria and the related attestation report on assessment of compliance with servicing criteria required to be delivered in accordance with the Subservicing Agreement discloses all material instances of noncompliance by the Subservicer with the Relevant Servicing Criteria.

 

SUBSERVICER:

BERKADIA COMMERCIAL MORTGAGE LLC,

a Delaware limited liability company

 

	By: 	 	Date: 	 
	Name:	 	 	 
	Title: 	 	 	 	 

 

Amended & Restated Master Subservicing Agreement

 

  

F-1

  

 

EXHIBIT G

 

TASK LIST

 

(See Attached)

 

Amended & Restated Master Subservicing Agreement

 

  

G-1

  

TASK LIST

 

Scope of Sub-Servicing Responsibilities

 

	  	
Function

	
Berkadia

	
KRECM

	
1

	
Loan Set-Up

	  	  
	  	
External Conversion

	  	  
	
(a)

	
Develop initial conversion plan/contacts

	
X

	

X

	
(b)

	
Determine data/file conversion process (manual, electronic or combination)

	

X

	

X

	
(c)

	
Reconcile new loan set-up Information

	

X

	

X

	
(d)

	
Approval of conversion trial balance

	

X

	

X

	
(e)

	
Set-up new loan in loan servicing system

	

X

	  
	
(f)

	
Transfer imaged loan files

	  	

X

	
(g)

	
Identify and Index the loan documents post transfer

	

X

	  
	
(h)

	
Apply closing funds to loan servicing system (as directed) or extract information into a spreadsheet to direction application of funds

	

X

	  
	
(i)

	
Follow-up on document exceptions, post-closing items, missing documents, insurance information, escrows... (i.e. certificate of occupancy, side letter agreement requirements)

	

X

	

X

	
(j)

	
Notice to borrowers (Welcome Letter/Good-bye Letter)

	

X

	

X

	
2

	
 Investor Reporting

	  	  
	
(a)

	
Prepare investor reporting package in accordance with servicing agreement for delivery to KRECM

	

X

	  
	
(b)

	
Prepare and execute remittances and distribute remittance reports for delivery to KRECM

	

X

	  
	
(c)

	
Provide access to monthly cash account reconciliations, including copies of monthly bank statements for all deposit, escrow and reserve accounts.

	

X

	  
	
(d)

	
Provide InvestorView access to KRECM

	

X

	  
	
3

	
General Servicing

	  	  
	
(a)

	
Administer borrower customer service and correspondence

	

X

	  
	
(b)

	
Provide [ILLEGIBLE] reports as may be reasonably requested by KRECM

	

X

	  
	
(c)

	
Monitor all payments due and contact borrowers if not received by end of grace period and maintain log

	

X

	  
	
(d)

	
Prepare demand letters and mall to borrower.

	

X

	  
	
(e)

	
Provide access to monthly billing statements to borrowers via LoanView

	

X

	  
	
(f)

	
Provide LoanView access to borrower

	

X

	  
	
(g)

	
Monitor maturity dates and send written notice to borrowers

	

X

	  
	
(h)

	
Monitor date-driven trigger events

	

X

	  
	
(i)

	
Review and assess late charges and default interest

	

X

	  

 

Amended & Restated Master Subservicing Agreement

 

  

G-2

  

 

	  	
Function

	
Berkadia

	
KRECM

	
(j)

	
Negotiate and approve late charge waivers conditional upon PSA authority

	
X

	  
	
4

	
Insurance Administration

	  	  
	
(a)

	
Analyze insurance coverage, ensure minimum carrier requirements meet underlying loan documents and KRECMPSA/Subservicing agreement requirements

	

X

	  
	
(b)

	
Verify mortgagee clause on Insurance policies complies with loan documents and KRECM requirements

	

X

	  
	
(c)

	
Monitor policy expiration; run expiration report and review documents to update the Information

	

X

	  
	
(d)

	
Send expiration notices to borrower and obtain renewal evidence of coverage

	

X

	  
	
(e)

	
Contact Insurance agents and/or borrowers, as necessary

	

X

	  
	
(f)

	
Insurance coverage [ILLEGIBLE] approval; if required under the PSA

	X	

X

	
(g)

	
Provide Insurance Certification in accordance with the Subservicing Agreement

	

X

	  
	
(h)

	
Disburse Insurance premiums from escrow accounts

	

X

	  
	
(i)

	
Administer forced place Insurance

	

X

	  
	
(j)

	
Approval to Berkadia for forced place Insurance premiums; if required under PSA

	

X

	

X

	
(k)

	
Prepare monthly Insurance status reports

	
X

	  
	
(l)

	
Maintain original Insurance policies or certificates in the imaged file

	
X

	  
	
5

	
Property Tax Administration & Escrow Analysis

	  	  
	
(a)

	
Take assignment of a tax contract from the prior servicer (or establish for additional/new loans) all escrowed and non-escrowed loans with tax service

	

X

	  
	
(b)

	
Monitor tax status on non-escrowed loans and obtain verification of paid taxes

	

X

	  
	
(c)

	
Contact borrowers regarding property tax issues, as necessary

	

X

	  
	
(d)

	
Contact taxing authorities, as necessary

	

X

	  
	
(e)

	
Provide KRECM with a report setting forth upcoming tax payments due

	

X

	  
	
(f)

	
Disburse tax payments on escrowed loans

	

X

	  
	
(g)

	
Preparation of delinquent tax status reports

	

X

	  
	
(h)

	
Prepare escrow analysis annually at a minimum or as required to meet payment needs

	

X

	  
	
6

	
Reserve Administration

	  	  
	  	
Collection/Deposit/Disbursement of Reserves

	

 

	  
	
(a)

	
Collect and deposit reserves from borrower in accordance with loan documents

	

X

	  

 

Amended & Restated Master Subservicing Agreement

 

  

G-3

  

	  	  	
Function

	  	
Berkadia

	
KRECM

	
(b)

	  	
Compile reserve draw package/analysis, to include list of deficiencies, current reserve balances, relevant release provisions from loan documents and any additional information necessary for determining release

	  	
X

	  
	
(c)

	  	
Review, approve and disburse reserve draw package/analysis

	  	
X

	  
	
(d)

	  	
Advise borrower of release decisions (i.e. full or partial denials)

	  	
X

	  
	
(e)

	  	
Maintain electronic copies of documentation regarding approved and disbursed reserve draws

	  	
X

	  
	  	  	
Holdback/Earn out Reserve Administration

	  	  	  
	
(f)

	  	
Account set-up and maintenance/funds management

	  	
X

	  
	
(g)

	  	
Request release on behalf of borrowers

	  	
X

	  
	
(h)

	  	
Analyze and [ILLEGIBLE] release package and make recommondation

	  	
X

	  
	
(i)

	  	
Issue disbursement approval, if required

	  	
X

	  
	
(j)

	  	
Construction loans to be agreed upon separately

	  	  	
N/A

	
7

	  	
ARM Administration

	  	  	  
	
(a)

	  	
Perform ARM payment adjustments & coordinate borrower notices

	  	
X

	  
	
(b)

	  	
Tracking Indexes

	  	
X

	  
	
8

	  	
Collateral Services

	  	  	  
	  	  	
UCC’s

	  	  	  
	
(a)

	  	
Maintain [ILLEGIBLE] system for UCC filing due dates

	  	
X

	  
	
(b)

	  	
Prepare and file UCC continuations and terminations, coordinate KRECM execution, if necessary

	  	
X

	  
	
(c)

	  	
Payment of recording fees for UCC renewal filings reimbursement to be paid by Borrower

	  	
X

	  
	
(d)

	  	
Preparation of UCC status reports

	  	
X

	  
	  	  	
Letters of Credit

	  	  	  
	
(e)

	  	
Retain original letter of credit and provide a copy to Berkadia

	  	  	
X-Trustee

	
(f)

	  	
Review terms of letter of credit to ensure compliance with loan documents

	  	
X

	  
	
(g)

	  	
Letter of credit administration, including setting up in loan servicing system and monitoring

	  	
X

	  
	
(h)

	  	
Notify KRECM borrower of expiring letter of credit

	  	
X

	  
	
(i)

	  	
Coordinate letter of credit draw, release and renewals and coordinate with borrower, KRECM and issuer, as necessary, in accordance with loan documents and the Subservicing Agreement

	  	
X

	  
	
(j)

	  	
Provide quarterly letter of credit status report

	  	  	  
	
9

	  	
Treasury Management

	  	  	  
	
(a)

	  	
Establish and maintain custodial and escrow /reserve accounts

	  	
X

	  
	
(b)

	  	
Reconcile custodial/escrow and reserve accounts

	  	
X

	  
	
(c)

	  	
Manage special borrower investments, if applicable

	  	
X

	  

Amended & Restated Master Subservicing Agreement

 

  

G-4

  

	  	
Function

	
Berkadia

	
KRECM

	
(d)

	
Track Indexes for monthly posting of Interest on escrow/reserve accounts

	
X

	  
	
(e)

	
Pay borrower Investment Income as required for escrow/reserve accounts

	
X

	  
	
10

	
Lockbox Administration1

	  	  
	
(a)

	
Upon a trigger event, Initiate set-up of lockbox account and administration/funds management and disbursement authority

	
X

	  
	
(b)

	
Application of payments; remittance of operating expenses; delivery of  excess funds back to borrowers, as applicable

	
X

	  
	
(c)

	
Termination of lockbox accounts for defeased and paid-off loans

	
X

	  
	
11

	
Payment Processing

	  	  
	
(a)

	
Prepare and make available billing statements on-line via LoanView

	
X

	  
	
(b)

	
Offer Automated Clearing House(ACH)/Pre-Authorized Payment(PAT)/lockbox or wire payment options to borrowers. Confirm to borrower ACH/PAT activation.

	
X

	  
	
(c)

	
Collect all regular principal and Interest, escrow and reserve payments In accordance with loan documents

	X	 
	
(d)

	
Process returned Items(ACH or NSF checks)

	X	 
	
12

	
Borrower/Loan Inquiries

	
 

	  
	  	
Borrower Initiated Special Requests1

	  	  
	
(a)

	
Borrower contact and gathering of required documents/data

	
X

	  
	
(b)

	
Underwriting and preparation of case memorandum

	
X

	  
	
(c)

	
Approval of transaction; if required under PSA and pursuant to the subservicing agreement

	
X

	
X

	
(d)

	
Closing document preparation/ finalization/ recording

	
X

	  
	
(e)

	
Image closing documents and updates loan sevicing system

	
X

	  
	  	
Other Special Requests

	  	  
	
(f)

	
Response to bankruptcles, requests for discounted payoffs, workouts, restructures, forbearances, etc...per subservicing agreement

	
X

	  
	
(g)

	
Response to casualty and condemnation Issues per subservicing ageement

	
X

	  
	
13

	
Collateral Survelliance

	 	  
	  	
Financial Statements and Rent Rolls

	  	  
	
(a)

	
Maintain monitoring systems for financial statements CREFC requirements

	X	 
	
(b)

	
Contact borrower requesting financial Information, rent rolls and Argus runs as required under laon documents

	X	 
	
(c)

	
Review and spread financial statements (in accordance with CREFC requirements)

	X	 
	
(d)

	
Monitor financial analysis driven trigger events

	X	 

 

1 Borrower initiated Requests include the following types of transactions: (i) Assumption; (ii) Due on sale/Transfer of Ownership; (iii) Modification; (iv) Extension; (v) Waiver; (vi) Consent; (vii) Lease / SNDA approval; (viii) Property Management Change; (ix) Release of collateral; [ILLEGIBLE].

 

Amended & Restated Master Subservicing Agreement

 

  

G-5

  

 

	  	
Function

	
Berkadia

	
KRECM

	
(e)

	
Complete annual rent roll analysis, In accordance with CREFC requirements.

	
X

	  
	
(f)

	
Load rent roll data, as per sub-servicing agreement.

	
X

	  
	
(g)

	
Image financial statements and rent rolls

	
X

	  
	
(h)

	
Obtain annual budgets from borrowers and analyze for approval /rejection, If required

	
X

	  
	  	
Property Inspections

	  	  
	
(i)

	
Maintain monitoring system for inspection due dates

	
X

	  
	
(j)

	
Perform Inspections

	
X

	  
	
(k)

	
Review and approve inspections reports

	
X

	  
	
(l)

	
Update system with inspection results

	
X

	  
	
(m)

	
Image inspection reports

	
X

	  
	
(n)

	
Follow-up on deffered maintanance items

	
X

	  
	
14

	
Loan Payoffs

	  	  
	
(a)

	
Prepare payoff calculations including prepayments and prepayment fee in accordance with loan documents and deliver to KRECM for  review/approval in accordance with the Subservicing Agreement, if required

	
X

	X
	
(b)

	
Prepare prepayment penalty waivers; and / or obtain approval if required under PSA

	
X

	X
	
(c)

	
Upon approval in accordance with the Subservicing Agreement, forward approved payoff quote to borrower

	
X

	  
	
15

	
IRS Reporting

	  	  
	
(a)

	
Preparation of IRS reporting (1098’s and 1099’s or other tax reporting requirements)

	
X

	  
	
(b)

	
Delivery of IRS reporting to borrowers and IRS

	
X

	  
	
16

	
Records Management/ Releases - Asset files

	  	  
	
(a)

	
Original credit/collateral file management (*note if third party custodian)

	
N/A

	
X -Custodian

	
(b)

	
Maintain imaged servicing file

	
X

	  
	
(c)

	
Determination regarding release of loan collateral pursuant to loan documents or borrower request per subservicing agreement

	
X

	  
	
(d)

	
Prepare and forward release documents for execution in accordance with the subservicing agreement

	
X

	  
	
17

	
Annual Subservicer Requirements

	  	  
	
(a)

	
Provide annual Independent accountants servicing report (USAP)

	
X

	  
	
(b)

	
Provide annual officer’s certificate as to compliance

	
X

	  
	
(c)

	
Provide annual errors and omissions update

	
X

	  
	
(d)

	
Cooperate with compliance audit requests of KRECM

	
X

	  
	
18

	
Information Technology

	  	  
	
(a)

	
If requested, provide financial reporting transmissions once mutually agreed upon

	
X

	  

 

Amended & Restated Master Subservicing Agreement

 

  

G-6

  

EXHIBIT H

 

ACKNOWLEDGMENT AGREEMENT

 

MORTGAGE LOAN ACKNOWLEDGEMENT AGREEMENT

 

By execution and delivery of this Mortgage Loan Acknowledgement Agreement (the “Acknowledgement Agreement”), KEYCORP REAL ESTATE CAPITAL MARKETS, INC. (“KRECM”) and BERKADIA COMMERCIAL MORTGAGE LLC (“Subservicer”) hereby agree that Subservicer shall service the mortgage loan(s) set forth on the attached Schedule A (the “Mortgage Loan(s)”) in accordance with pursuant to that certain Subservicing Agreement (the “Subservicing Agreement”) dated as of March [30], 2012, between KRECM and Subservicer.

 

Pursuant to the Subservicing Agreement, the effective date of the commencement of services with respect to the Mortgage Loan(s) shall be [INSERT SERVICING DATE].  [The Master Servicer appointed under the related PSA for the Mortgage Loans shall be [INSERT NAME OF MASTER SERVICER]]. Subservicer hereby accepts and assumes the servicing responsibilities with respect to the Mortgage Loan(s), all in accordance with the terms and provisions of the Subservicing Agreement.

 

All terms and conditions of this transaction shall be governed by the Subservicing Agreement.  Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Subservicing Agreement.

 

This Acknowledgement Agreement may be executed simultaneously in any number of counterparts.  Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, KRECM and Subservicer have caused their names to be signed hereto by duly authorized officers.

 

Dated as of [INSERT DATE OF DOCUMENT].

 

	 	KEYCORP REAL ESTATE	 	BERKADIA COMMERCIAL
	 	CAPITAL MARKETS, INC.	 	MORTGAGE LLC
	 	 	 	 
	 	By:	 	 	By:	 	 

 

	 	Name:	 	 	Name:	 	 

 

	 	Title:	 	 	Title:	 	 

 

Amended & Restated Master Subservicing Agreement

 

  

H-1

  

EXHIBIT I

 

TRANSFER INSTRUCTIONS

 

(See Attached)

 

Amended & Restated Master Subservicing Agreement

 

  

I-1

  

	

COMMERCIAL/MULTIFAMILY MORTGAGE LOAN SERVICING

TRANSFER INSTRUCTIONS –(Insert Deal Name)

 

CONTACTS

 

	
Conversions - Servicing:

Emma Robinson

Phone: (215) 328-1765

Email: Emma.Robinson@berkadia.com

 

Email:

 

Acquisition.Conversions@berkadia.com

 

 

DELIVERY INSTRUCTIONS

 

	
Mortgage File Shipment and Related Correspondence:

 

Berkadia Commercial Mortgage LLC

118 Welsh Road

Horsham, PA 19044

ATTN: Emma Robinson

 

 

	
Wire Instructions:

 

Wells Fargo Bank NA

San Francisco, CA

ABA # 121-000-248

ACCT # 4946503687

Account Name: Berkadia Commercial

Mortgage LLC

Ref:

 

Amended & Restated Master Subservicing Agreement

 

  

I-2

  

A.       LOAN SET-UP INFORMATION REQUIRED FROM SELLER OR SELLER’S SERVICER:

 

Seller or Seller’s SERVICER shall cause the prior servicer or subservicer, as applicable, to provide Purchaser with loan information electronically by the transfer date. Should data not be available electronically due to system restrictions or incompatibility, detailed printouts should be forwarded immediately. Please email the requested data to the department email account of Acquisition.Conversions@Berkadia.com

 

B.       REQUIRED REPORTS

 

General:

                                                                                        

	Due:  Report Type:	                 Description:
	 	 
	
 Transfer Date

	
 Trial Balance

	
In Seller/Servicer number order, to include but not limited to; all payment constants account balances and next payment due date

	
 Transfer Date

	
 Loan History

	
From inception of loan servicing through Transfer Date

	
 Transfer Date

	
 Remittance Instructions

	
A list of all investors and broker strips including contact names, addresses and wire instructions.

	
 Transfer Date

	
 Hard Lockbox

	
Any loans with hard lockboxes along with bank name, contact information and copies of the agreements.

	
 Transfer Date

	
 Auto-Debit

	
Any loans that pay through ACH or auto-debit.

	
 Transfer Date

	
 Non-Cash Investments

	
To include Treasuries, Cert of Deposit or other vehicle of Investments. Please information necessary to properly identify securities or investments.

	
 Transfer Date

	
 Letters of Credit

	
To include, the Bank name, amount of credit, expiration date and name of loan affected.

	
 Transfer Date

	
 Inspection

	
To include: Date of Last Inspection, Next Inspection Date, Last Quality Rating, Delinquent Inspections & any deficiencies that require immediate attention.

	
 Transfer Date

	
 UCC

	
To include: Jurisdiction, Filing Number(s), Original Filing Dates and Next Filing Dates.

	
 Transfer Date

	
 Payoffs

	
Listing of all loans with payoff statements issued 30 days prior to Transfer Date.

	
 Transfer Date

	
 Advances

	
Reconciliation and Officers’ Certificate relating to recoverability of advances.

	
 Transfer Date

	
 Suspense Balance

	
Description of all funds that are in suspense.

 

Amended & Restated Master Subservicing Agreement

 

  

I-3

  

 

Tax & Insurance:                                                                                                     

 

	Due:  Report Type:	   Description:
	 	 	 
	
 Transfer date

	
 60 Day Report

	
Listing of any tax payments or insurance premiums due within 60 days of Transfer Date.

	
 Transfer date

	
 Special Issues

	
To include tax abatements, partial payments, taxes paid under protest, etc. Listing should contain the related tax parcel #, amount abated, tax authority and expiration date.

	
 Transfer date

	
 Insurance Cancellations

	
Listing of pending insurance cancellations.

	
 Transfer date

	
 Pending Loss Draft

	
Provide date, cause, amount of loss, proceeds received to date and current status.

	
 Transfer date

	
 Tax Delinquencies

	
Report should contain the related tax parcel #’s, delinquent tax amount, penalty amount, taxing authority and due dates.

 

Ground Leases/Rents, Reserves & Pending Special Requests:                                                                                                       

 

	Due: Report Type:	   Description:
	 	 	 
	
 Transfer date

	
 Ground Leases

	
Listing of all loans with Ground Leases and report of any rents due within 60 days of transfer. 

	
 Transfer date

	
 Reserves

	
Listing of all reserves for each loan including the type, monthly constants, and if reserves are held in an interest or non interest bearing account.

	
 Transfer date

	
 Special Requests

	
Listing of any loans with pending modifications, assumptions, partial releases or any type of transaction that may change the current status or terms of the loan.

 

Special Loan Covenants:

                                                                                                        

	Due: Report Type:	   Description:
	 	 	 
	
 Transfer date

	
 Trigger Events

	
Listing of any Borrower covenants or changes to loan terms that are required to be tracked and acted upon; i.e. DSCR limits, payment increases or reserve start-ups.

	
 Transfer date

	
 Financial Reporting

	
Listing of Borrower reporting requirements and due dates for each loan.

 

C.        TRANSFER OF FUNDS

 

1.           On the Transfer Date, all cash and money market escrow funds are to be wired via federal funds via the instructions provided. A Trial Balance showing how to 

 

Amended & Restated Master Subservicing Agreement

 

  

I-4

  

 

breakdown the incoming funds on a loan to loan basis should be supplied as of the Transfer Cut-off Date.

 

D.        MORTGAGE LOAN FILES

 

1.           Seller shall cause the prior servicer or subservicer, as applicable, to deliver to Purchaser all mortgage loan files, working files and origination files 2 days prior to the Transfer Date. Berkadia encourages the transfer of loan documents in electronic format. If loan documents are to be sent electronically, please see Section G of these Transfer

 

Instructions. If electronic format is not possible, file shipments are to be accompanied with an inventory listing itemizing the loan numbers and type of file contained in each box. Files will contain but not be limited copies of the following:

 

	
  

	
●

	
Mortgage Note

	
  

	
●

	
Loan Agreement (if applicable)

	
  

	
●

	
Recorded Mortgage/Deed of Trust with Legal Description

	
  

	
●

	
Mortgage Assignments

	
  

	
●

	
Title Insurance Policy

	
  

	
●

	
Any Modifications

	
  

	
●

	
All related UCC filings, continuations, amendments and assignments

	
  

	
●

	
Cash Management/Lockbox Agreements

	
  

	
●

	
Reserve/Escrow Agreements

	
  

	
●

	
Any correspondence or notices regarding ARM loans

	
  

	
●

	
Financial Statements

	
  

	
●

	
Property Inspections

	
  

	
●

	
Original Appraisal

	
  

	
●

	
Phase I environmental report

	
  

	
●

	
Paid real estate tax receipts

	
  

	
●

	
Current hazard insurance policies

	
  

	
●

	
Letters of Credit

	
  

	
●

	
Copies of any Lease

	
  

	
●

	
Copies of all current CREFC Operating Statement Analysis Reports and CREFC NOI Adjustment Worksheet

 

E.     NOTIFICATIONS

 

	
  

	
1.

	
Goodbye/Hello Letters - Seller or Seller’s Servicer shall prepare and provide copies of the “goodbye/hello” letter to Purchaser five business days prior to transfer date.

	
  

	
2.

	
Letters of Credit – Seller or Seller’s Servicer shall prepare and send to Purchaser copies of letters to Bank with proof of assignment to current Lender/Trustee as Beneficiary named on Letters of Credit. Seller or Seller’s Servicer shall also forward copies of letters to Bank notifying the change of Servicer five business days prior to transfer date.

	
  

	
3.

	
Lock Box Notification Letters – Seller of Seller’s Servicer shall prepare and provide copies to Berkadia a listing of all Hard Lock Box accounts along with copies of notification letters forwarded to Institutions regarding existing hard lockboxes five  business days prior to transfer date.

	
  

	
4.

	
Non Cash Investments – Seller of Seller’s Servicer shall prepare and provide copies to Berkadia a listing of all Non Cash Investments and notification letters forwarded to

 

Amended & Restated Master Subservicing Agreement

 

  

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Institutions holding existing non-cash investments five business days prior to transfer date.

 

	
  

	
5.

	
Ground Leases – Seller of Seller’s Servicer shall prepare and provide copies to Berkadia of letters informing Ground Lessor of transfer five business days prior to transfer date. Example attached.

 

	
  

	
6.

	
Tax & Insurance Letters – Seller or Seller’s Servicer shall prepare and provide copies to Berkadia of letters forwarded to tax authorities and insurance agents regarding the change of servicer five business days prior to transfer date. Examples attached.

 

F.         CONTINUED SERVICING RESPONSIBILITIES OF SELLER OR SELLER’S SERVICER:

 

Among other things, it is also the responsibility of the Seller/SERVICER to perform the following:

 

	
  

	
●

	

Pay real estate tax, hazard insurance that are due within 30 days of the Transfer Date (i.e. Transfer Date of July 15, 2011 R/E Tax bill due July 30, 2011 - to the extent Seller/Servicer has received a bill, this bill would be paid by Seller/Servicer prior to the Transfer Date). If a bill has not been received, a listing of such Loans must be provided to Purchaser including the due date, payment amount, and payee information.

	
  

	
●

	

Perform and submit required property inspections on any Mortgage Loan that has an inspection due to the Investor within 30 days of the Transfer Date (i.e. Transfer Date July 15, 2011, property inspection due to Investor on July 30, 2011 - this inspection would be performed by Seller/Servicer and submitted to Investor by July 15, 2011).

	
  

	
●

	
Collect applicable financial statements from the mortgagors and perform the appropriate operating statement analysis on each Mortgage Loan.

	
  

	
●

	
File UCC-3 Continuations in the appropriate jurisdictions.

	
  

	
●

	

Immediately notify and forward all funds or correspondence received by Seller/Servicer on the related Loans after the Transfer Date to Purchaser via recognizable overnight courier or fed funds wire transfer within 1 business day of receipt.

	
  

	
●

	
Prepare and report all tax information to the Internal Revenue Service and provide Borrowers with any and all tax information (i.e. Forms 1098 & 1099) through to the date of Transfer.

 

G.        Electronic Document Formatting Requirements

 

	
  

	
1.

	
Each loan should be saved into individual folders with the images (documents) for each loan supplied within the folder.

 

	
  

	
2.

	
Each image (document) should be saved in a pdf file format or CCITT Group 4 multi-page tif.

 

	
  

	
3.

	
Each image (document) should be named by its existing loan or document type. (e.g. 12345.pdf or Promnote.pdf ) No Special Characters.

 

	
  

	
4.

	
No DVD’s

 

Amended & Restated Master Subservicing Agreement

 

  

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Attachment 1 - Revised

Goodbye-Hello Letter

 

(Transfer Date)

 

[Mortgagor]

 

c/o [Management Company]

 

[Address]

 

[City, State, Zip]

 

RE:    [Seller/Servicer] Account #

 

Berkadia Commercial Mortgage LLC Loan # [ ]

 

   [Project Name]

 

Dear: [Contact Name]:

 

The servicing of your loan has been transferred from          to Berkadia

 

Commercial Mortgage LLC effective Transfer Date. The transfer of servicing of your

 

mortgage loan does not affect any term or condition of your mortgage instruments or lease.

 

We appreciate the opportunity to have serviced your loan.

 

Berkadia Commercial Mortgage LLC is pleased to announce Loan View, our exclusive Berkadia Mortgage Site for borrowers.

 

Effective with the payment due ______, your monthly billing statement will be available on

 

our website. We have eliminated the mailing of monthly billing statements. The monthly statements are available on our Loan View website 10 days prior to the subsequent month’s payment due date. If you are unable to view your monthly billing statement, please contact your Client Relations Manager. If you need to access/print the billing statement for your records, just access the billing statements through the Loan View website via the directions below.

 

You will be able to view, print or download scheduled billing statements via our website – https://loanview.Berkadia.com- 24 hours a day, 7 days a week. Berkadia Commercial Mortgage LLC is a paperless corporation, as such the billing statements are sent out via fax or email each month, they are not mailed. To have this information sent out automatically, please register on our website by following the steps below:

 

1- Go to https://loanview.Berkadia.com

2- Click on “Please register with us”

 

Amended & Restated Master Subservicing Agreement

 

 

I-7

 

 

3- Accept the Terms of Use Agreement

4- Follow the prompts for information

 

You can also set up for Auto Debit on this website to ensure your payments are received promptly.

 

Amended & Restated Master Subservicing Agreement

 

 

I-8

 

 

Please forward your______ payment to the following address (To ensure proper credit

 

please note the new Berkadia loan number on your check):

 

Berkadia A

Lockbox #9067

P.O. Box 8500

Philadelphia, PA 19178-9067

REF: Berkadia ln #

 

In the event any such payments are being made or will be made via wire transfer, please direct all such payments to:

 

Wells Fargo Bank, NA

For wire – ABA #121-000-248

For ACH – ABA #031-000-503

Credit To: Berkadia Commercial Mortgage

420 Montgomery Street

San Francisco, CA 94104

Account #2100012537715

 

Berkadia Finance Inc is available to assist you with questions regarding the transfer of servicing. You may contact Client Relations Department at 1-888-334-4622, from 8:00 a.m. to 5:00 p.m. EST, Monday through Friday. Please forward all written correspondence to 118 Welsh Road, Horsham, PA 19044.

 

In compliance with federal regulations, we ask that you please provide us, within 30 days of the date of this letter, a completed W-9 form, listing the appropriate tax identification number for the borrowing entity. The information from this form will be utilized during annual interest reporting.

 

Berkadia Commercial Mortgage LLC looks forward to servicing your mortgage loan and is committed to providing you quality, personal service and Total Customer Satisfaction.

 

                                    Sincerely,

 

Amended & Restated Master Subservicing Agreement

 

 

I-9

 

Attachment 2

 

Form Tax Notification

 

[CLOSING DATE]

 

City of

 

County Tax Collector

 

RE: Loan #

 

Berkadia Loan #

Name of Project

Parcel

 

LEGAL DESCRIPTION ATTACHED

 

Dear: Sir/Madam:

 

Please take notice that effective this date; the referenced mortgage loan was transferred for servicing to Berkadia Commercial Mortgage LLC

 

Accordingly, please annotate your file regarding the above project to reflect the new servicer on all-relevant tax bills, assessments and correspondence effective immediately and forward such items to the address shown below:

 

	 	 	Berkadia Commercial Mortgage LLC
	 	 	 
	 	 	118 Welsh Road
	 	 	 
	 	 	Horsham, PA
	 	 19044-6657 Attention: Tax
	 	 Department Telephone:
	 	 (888) 334-4622 Facsimile:
	 	 (215) 328-0101

 

Amended & Restated Master Subservicing Agreement

 

 

I-10

 

 

Thank you for your cooperation in this matter.

 

	 	Sincerely,
	 	 
	 	Sellers/Servicer Name
	 	 
	 	
Title

	 	 
	 	
Phone

 

Amended & Restated Master Subservicing Agreement

 

  

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Attachment 3

 

Form of Hazard Insurance Notification

 

[CLOSING DATE]

 

[Name], Insurance Agency

[Address]

 

[City, State, Zip]

 

RE: [Seller/Servicer] Loan Number:

 

Berkadia Loan # 

Project Name:

Property Location:

 

Policy Number:

 

Policy Effective Period:

Insurance Carrier:

 

Dear: Sir/Madam:

 

Please take note that effective as of the date of this letter, the referenced mortgage loan was transferred for servicing to Berkadia Commercial Mortgage LLC

 

Accordingly, please update your file regarding the above project to reflect the new servicer on all relevant insurance renewal notices, policies, and correspondence effective immediately and forward such items to the address shown below. In addition, please forward an endorsement naming “Berkadia Commercial Mortgage LLC, as Master/Primary Servicer to the address below.

 

Berkadia Commercial Mortgage LLC

118 Welsh Road

Horsham, PA 19044-6657

Attention: Insurance Department

Telephone: (888) 334-4622

Facsimile: (215) 328-3850

 

Thank you for your cooperation in this matter.

 

	 	Sincerely,
	 	 
	 	[Author]
	 	[Title]
	 	[Phone]

 

Amended & Restated Master Subservicing Agreement

 

  

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Attachment 4

 

Form of Ground Lessor Notification

 

[CLOSING DATE]

[Name], Ground Lessor Name [Address]

[City, State, Zip]

 

RE: [Seller/Servicer] Loan Number:

 

Berkadia Loan #

Project Name:

Property Location:

 

Dear: Sir/Madam:

 

Please take note, effective as of the date of this letter; the referenced mortgage loan was transferred for servicing to Berkadia Commercial Mortgage LLC

 

Accordingly, please update your file regarding the above project to reflect the new Servicer on all relevant ground rent/lease notices, correspondence effective immediately and forward such items to the address shown below.

 

	 	Berkadia Commercial Mortgage LLC
	 	118 Welsh Road
	 	Horsham, PA 19044-6657
	 	Attention: Client Relations Group
	 	Telephone: (888) 334-4622

 

Thank you for your cooperation in this matter.

 

	 	Sincerely,
	 	 
	 	[Author]
	 	[Title] [Phone]

 

Amended & Restated Master Subservicing Agreement

 

  

I-13

  

EXHIBIT J

 

OFFICER’S CERTIFICATE

 

The undersigned, [Craig N. Younggren], hereby certifies that he is a [Senior Vice President] of KeyCorp Real Estate Capital Markets, Inc., an Ohio corporation (“KRECM”), and further certifies to Berkadia Commercial Mortgage, LLC, a Delaware limited liability company (the “Subservicer”), pursuant to Section 5.03 of that certain Subservicing Agreement dated and effective as of [_____________, 2012] (the “Subservicing Agreement”) between Subservicer and KRECM, as of [______________, 2012] that (i) the unpaid principal balance of the Mortgage Loans is $[______], (ii) [_________] Mortgage Loans are subject to this agreement, and (iii) the balance of the escrows, reserves and other servicing actions related to the Mortgage Loans is $[__________].

 

Capitalized terms used but not defined herein have the meanings assigned to such terms in the Subservicing Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of  [___________], 2012.

 

KEYCORP REAL ESTATE CAPITAL MARKETS, INC.,

an Ohio corporation

 

By:

Name:

Title:

 

Amended & Restated Master Subservicing Agreement

 

  

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