Document:

emergingex.htm

  

  

EXHIBIT 10.1

AMENDMENT TO THE MANAGEMENT AGREEMENT

 

This AMENDMENT dated as of the 1st day of January, 2013, to the AMENDED AND RESTATED MANAGEMENT AGREEMENT made as of the 1st day of March, 2012, (the “Management Agreement”) among CERES MANAGED FUTURES LLC, a Delaware limited liability company (“CMF”), EMERGING CTA PORTFOLIO L.P., a New York limited partnership (the “Partnership”) and WILLOWBRIDGE ASSOCIATES INC., a Delaware corporation (the “Advisor” or “Willowbridge”, all parties together, the “Parties”).  Capitalized terms not defined herein have the meaning ascribed to those terms in the Management Agreement.

 

W I T N E S S E T H:

 

WHEREAS, effective January 1, 2013, the Partnership’s assets allocated to the Advisor will be traded pursuant to the Advisors wPraxis Futures Trading Approach through an investment in CMF Willowbridge Master Fund, L.P., a New York limited partnership of which CMF is the general partner and Willowbridge is the advisor; and

 

WHEREAS, effective January 1, 2013, the leverage with which the Partnership’s assets are being traded is being changed from two times the leverage normally applied to the wPraxis Futures Trading Approach to three times the leverage normally applied to the wPraxis Futures Trading Approach; and

 

WHEREAS, effective January 1, 2013, the Advisor’s monthly fee for professional management services is being increased to 1/8 of 1% (1.5% per year); and

 

WHEREAS, the Parties wish to amend that Management Agreement to reflect these changes.

 

NOW, therefore, the Parties agree as follows:

 

1.  All references to “2 times leverage” in Sections 1(a) and 1(c) of the Management Agreement shall be deleted and replaced by “3 times leverage”.

 

2. The second sentence of Section 1(b) of the Management Agreement shall be amended to add “, whether directly or indirectly through the Master Fund,” after “All trades made by the Advisor for the account of the Partnership”.

 

3. Section 3(a), clause (ii) shall be deleted and replaced by the following:

 

“A monthly fee for professional management services equal to 1/8 of 1% (1.5% per year) of the month-end Net Assets of the Partnership allocated to the Advisor (computed monthly by multiplying the adjusted net assets of the Partnership allocated to the Advisor as of the last business day of each month by 1.5% and dividing the result thereof by 12).”

 

4. In all other respects the Management Agreement remains unchanged and of full force and effect

 

  

  

  

IN WITNESS WHEREOF, this Amendment has been executed for and on behalf of the undersigned as of the day and year first above written.

 

CERES MANAGED FUTURES LLC

By           /s/  Walter Davis                                                              

Walter Davis

President and Director

EMERGING CTA PORTFOLIO L.P.

By:  Ceres Managed Futures LLC

(General Partner)

By           /s/  Walter Davis                                                              

Walter Davis

President and Director

WILLOWBRIDGE ASSOCIATES INC.

By           /s/  Steven R. Crane                                                                

     Name:  Steven R. Crane

     Title:    Senior Vice Presidentomacs320130104x41.htm

EXHIBIT 4.1

  

OPTEUM MORTGAGE ACCEPTANCE CORPORATION

 

Depositor,

 

[NAME OF MASTER SERVICER]

 

Master Servicer,

 

and

 

[NAME OF TRUSTEE],

 

Trustee

 

POOLING AND SERVICING AGREEMENT

Dated as of _____________1, 20__

 

Mortgage Pass-Through Certificates

Series 20__-__

 

  

  

  

TABLE OF CONTENTS

 

ARTICLE I DEFINITIONS

 

SECTION 1.01.         Defined Terms...................................

 

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

 

SECTION 2.02.         Acceptance of the Trust Fund by the Trustee..............

SECTION 2.03.         Representations, Warranties and Covenants of the Master  Servicer and the Depositor....

SECTION 2.04.         Representations and Warranties of the Seller; Repurchase  and Substitution.............

SECTION 2.05.         Issuance of Certificates Evidencing Interests in the Trust  Fund.........

SECTION 2.06.         Purposes and Powers of the Trust................

 

ARTICLE III ADMINISTRATION AND SERVICING OF THE TRUST FUND

 

SECTION 3.01.         Master Servicer to Act as Master Servicer...........

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

SECTION 3.03.         Successor Sub-Servicers.......

SECTION 3.04.         Liability of the Master Servicer.............

SECTION 3.05.         No Contractual Relationship Between Sub-Servicers and  Trustee or Certificateholders...

SECTION 3.06.         Assumption or Termination of Sub-Servicing Agreements by  Trustee......................

SECTION 3.07.         Collection of Certain Mortgage Loan Payments..........

SECTION 3.08.         Sub-Servicing Accounts.............

SECTION 3.09.         Collection of Taxes, Assessments and Similar Items;  Servicing Accounts....

SECTION 3.10.         Custodial Account.............

SECTION 3.11.         Permitted Withdrawals From the Custodial Account.......

SECTION 3.12.         Permitted Instruments..............

SECTION 3.13.         Maintenance of Primary Mortgage Insurance and Primary Hazard Insurance.......

SECTION 3.14.         Enforcement of Due-on-Sale Clauses; Assumption Agreements.......

SECTION 3.15.         Realization Upon Defaulted Mortgage Loans...........

SECTION 3.16.         Trustee to Cooperate; Release of Mortgage Files..........

SECTION 3.17.         Servicing Compensation...................

SECTION 3.18.         Maintenance of Certain Servicing Policies..........

SECTION 3.19.         Annual Statement as to Compliance........

SECTION 3.20.         Assessments of Compliance and Attestation Reports.........

SECTION 3.21.         Access to Certain Documentation.......

SECTION 3.22.         Title, Conservation and Disposition of REO Property.......

SECTION 3.23.         Additional Obligations of the Master Servicer........

SECTION 3.24.         Additional Obligations of the Depositor.........

SECTION 3.25.         Intention of the Parties and Interpretation........

 

ARTICLE IV PAYMENTS TO CERTIFICATEHOLDERS

 

SECTION 4.01.         Certificate Account; Distributions....

SECTION 4.02.         Statements to Certificateholders.........

SECTION 4.03.         Remittance Reports; Advances by the Master Servicer.....

SECTION 4.04.         Allocation of Realized Losses.....

SECTION 4.05.         Information Reports to be Filed by the Master Servicer...

SECTION 4.06.         Compliance with Withholding Requirements.....

 

ARTICLE V THE CERTIFICATES

 

SECTION 5.01.         The Certificates........

SECTION 5.02.         Registration of Transfer and Exchange of Certificates.....

SECTION 5.03.         Mutilated, Destroyed, Lost or Stolen Certificates.....

SECTION 5.04.         Persons Deemed Owners.......

 

ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER

 

SECTION 6.01.         Liability of the Depositor and the Master Servicer.....

SECTION 6.02.         Merger, Consolidation or Conversion of the Depositor or the Master Servicer.....

SECTION 6.03.         Limitation on Liability of the Depositor, the Master Servicer and Others.......

SECTION 6.04.         Limitation on Resignation of the Master Servicer.....

 

ARTICLE VII DEFAULT

 

SECTION 7.01.         Events of Default.......

SECTION 7.02.         Trustee to Act; Appointment of Successor.......

SECTION 7.03.         Notification to Certificateholders.....

SECTION 7.04.         Waiver of Events of Default.......

 

ARTICLE VIII CONCERNING THE TRUSTEE

 

SECTION 8.01.         Duties of Trustee........

SECTION 8.02.         Certain Matters Affecting the Trustee........

SECTION 8.03.         Trustee Not Liable for Certificates or Mortgage Loans.....

SECTION 8.04.         Trustee May Own Certificates......

SECTION 8.05.         Payment of Trustee's Fees.......

SECTION 8.06.         Eligibility Requirements for Trustee.......

SECTION 8.07.         Resignation and Removal of the Trustee......

SECTION 8.08.         Successor Trustee.....

SECTION 8.09.         Merger or Consolidation of Trustee........

SECTION 8.10.         Appointment of Co-Trustee or Separate Trustee.......

SECTION 8.11.         Commission Reporting......

 

ARTICLE IX TERMINATION

 

SECTION 9.01.         Termination Upon Repurchase or Liquidation of All Mortgage Loans....

SECTION 9.02.         Additional Termination Requirements..

 

ARTICLE X REMIC PROVISIONS

 

SECTION 10.01.        REMIC Administration.....

SECTION 10.02.        Prohibited Transactions and Activities.....

SECTION 10.03.        Master Servicer and Trustee Indemnification.....

 

ARTICLE XI MISCELLANEOUS PROVISIONS

 

SECTION 11.01.        Amendment.....

SECTION 11.02.        Recordation of Agreement; Counterparts...

SECTION 11.03.        Limitation on Rights of Certificateholders.....

SECTION 11.04.        Governing Law........

SECTION 11.05.        Notices......

SECTION 11.06.        Severability of Provisions......

SECTION 11.07.        Successors and Assigns; Third Party Beneficiary.....

SECTION 11.08.        Article and Section Headings....

SECTION 11.09.        Notice to Rating Agencies and Certificateholder......

 

Exhibit A-1       Form of Class A Certificate

Exhibit A-2       Form of Class B Certificate

Exhibit B         Form of Class R Certificate

Exhibit C         Form of Trustee Initial Certification

Exhibit D         Form of Trustee Final Certification

Exhibit E         Form of Remittance Report

Exhibit F-1       Request for Release

Exhibit F-2       Request for Release for Mortgage Loans Paid in Full

Exhibit G-1       Form of Investor Representation Letter

Exhibit G-2       Form of Transferor Representation Letter

Exhibit G-3       Transferor Affidavit and Agreement in connection with transfer of Residual Certificates

Exhibit G-4       Form of Transferor Certificate

Exhibit G-5       Form of Investor Representation Letter for Insurance Companies

Exhibit H         Mortgage Loan Schedule

Exhibit I         Seller's Warranty Certificate

Exhibit J         Form of Notice Under Section 3.24

Exhibit K         Form of Depositor Certification

Exhibit L         Form of Trustee Certification

Exhibit M         Form of Servicer Certification

Exhibit N         Servicing Criteria to Be Addressed in Assessment of Compliance

Exhibit O         Form of Section 404 Notice

Exhibit P         Form of Certification for NRSROs and Depositor

         This Pooling and Servicing Agreement, effective as of _______________

1, 20__ (this “Agreement”), among OPTEUM MORTGAGE ACCEPTANCE CORPORATION, as the depositor (together with its permitted successors and assigns, the "Depositor"), [NAME OF MASTER

SERVICER], as master servicer (together with its permitted successors and

assigns, the "Master Servicer"), and [NAME OF TRUSTEE], as trustee (together

with its permitted successors and assigns, the "Trustee"),

 

                             PRELIMINARY STATEMENT:

 

         The Depositor intends to sell mortgage pass-through certificates

(collectively, the "Certificates"), to be issued hereunder in multiple classes

(each, a "Class"), which in the aggregate will evidence the entire beneficial

ownership interest in the Mortgage Loans (as defined herein). As provided

herein, the Master Servicer will make an election to treat the segregated pool

of assets described in the definition of Trust Fund (as defined herein), and

subject to this Agreement (including the Mortgage Loans but excluding the

Initial Monthly Payment Deposit), as a real estate mortgage investment conduit

(a "REMIC") for federal income tax purposes, and such segregated pool of assets

will be designated as the "Trust Fund." The Class A-1, Class A-2, Class A-3,

Class A-4, Class A-5, Class A-6, Class A-7 and Class B Certificates will

represent ownership of "regular interests" in the Trust Fund, and the Class R

Certificates will be the sole class of "residual interests" therein, for

purposes of the REMIC Provisions (as defined herein) under federal income tax

law.

 

         The following table sets forth the designation, type, Pass-Through

Rate, aggregate Initial Certificate Principal Balance, initial ratings and

certain features for each Class of Certificates comprising the interests in the

Trust Fund created hereunder.

 

AGGREGATE INITIAL PASS-CERTIFICATE

INITIAL RATINGS THROUGH PRINCIPAL DESCRIPTION TYPE

RATE BALANCE FEATURES

 

[INSERT TABLE HERE]

 

         The Mortgage Loans have an aggregate Stated Principal Balance as of the

Cut-off Date equal to $___________. The Mortgage Loans are fixed rate mortgage

loans having terms to maturity at origination or modification of not more than

30 years.

 

         In consideration of the mutual agreements herein contained, the

Depositor, the Master Servicer and the Trustee agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

         SECTION 1.01 Defined Terms.

 

         Whenever used in this Agreement, the following words and phrases,

unless the context otherwise requires, shall have the meanings specified in this

Article.

 

         "Accrued Certificate Interest": With respect to each Distribution Date,

as to any Class A Certificate (other than the Class A-5 Certificates and Class

A-7 Certificates) or any Class B Certificate, one month's interest accrued at

the then applicable Pass-Through Rate on the Certificate Principal Balance

thereof immediately prior to such Distribution Date. With respect to each

Distribution Date, as to the Class A-5 Certificates and Class A-7 Certificates,

one month's interest accrued at the then applicable Pass-Through Rate on the

Notional Amount thereof immediately prior to such Distribution Date. Accrued

Certificate Interest will be calculated on the basis of a 360-day year

consisting of twelve 30-day months. In each case Accrued Certificate Interest on

any Class of Certificates will be reduced by the amount of (i) Prepayment

Interest Shortfalls, if any, which are not covered by payments by the Master

Servicer pursuant to Section 3.23 with respect to such Distribution Date, (ii)

the interest portion (adjusted to the related Net Mortgage Rate) of any of

Realized Losses (including Excess Special Hazard Losses, Excess Fraud Losses,

Excess Bankruptcy Losses and Extraordinary Losses) not allocated solely to one

or more specific Classes of Certificates pursuant to Section 4.04 (which, with

respect to the pro rata portion thereof allocated to the Class A-1, Class A-5

and Class A-6 Certificates will be allocated first to the Class A-6 Certificates

and second to the Class A-1 and Class A-5 Certificates on a pro rata basis to

the extent such Realized Losses are Default Losses), (iii) the interest portion

of Advances previously made with respect to a Mortgage Loan or REO Property

which remained unreimbursed following the Cash Liquidation or REO Disposition of

such Mortgage Loan or REO Property that was made with respect to delinquencies

that were ultimately determined to be Excess Special Hazard Losses, Excess Fraud

Losses, Excess Bankruptcy Losses or Extraordinary Losses, and (iv) any other

interest shortfalls not covered by the subordination provided by the Class B

Certificates pursuant to Section 4.04, including interest that is not

collectible from the Mortgagor pursuant to the Relief Act or similar legislation

or regulations as in effect from time to time; with all such reductions

allocated among the Classes of Certificates, in proportion to their respective

amounts of Accrued Certificate Interest which would have resulted absent such

reductions. In addition to that portion of the reductions described in the

preceding sentence, Accrued Certificate Interest on the Class B Certificates

will be reduced by the interest portion (adjusted to the related Net Mortgage

Rate) of Realized Losses that are allocated solely to the Class B Certificates

pursuant to Section 4.04.

 

         "Advance": As to any Mortgage Loan, any advance made by the Master

Servicer on any Distribution Date pursuant to Section 4.03.

 

         "Agreement": This Pooling and Servicing Agreement and all amendments

hereof.

 

         "Anniversary": Each anniversary of _____________ 1, 20__.

 

         "Assessment of Compliance": As defined in Section 3.20.

 

         "Attestation Report": As defined in Section 3.20.

 

         "Assignment": An assignment of Mortgage, notice of transfer or

equivalent instrument, in recordable form, which is sufficient under the laws of

the jurisdiction wherein the related Mortgaged Property is located to reflect of

record the sale of the Mortgage, which assignment, notice of transfer or

equivalent instrument may be in the form of one or more blanket assignments

covering Mortgages secured by Mortgaged Properties located in the same county,

if permitted by law.

 

         "Assignment Agreement": The Assignment and Assumption Agreement, dated

as of ____________, 20__, between [Name of Seller] and the Depositor relating to

the transfer and assignment of the Mortgage Loans.

 

         "Available Distribution Amount": With respect to each Distribution

Date, the Available Distribution Amount will be an amount equal to (a) the sum

of (i) the balance on deposit in the Custodial Account as of the close of

business on the related Determination Date and (ii) the aggregate amount of any

Advances made, all required amounts pursuant to Section 3.22 and all amounts

required to be paid by the Master Servicer pursuant to Sections 3.13 and 3.23 by

deposits into the Certificate Account on the immediately preceding Certificate

Account Deposit Date, reduced by (b) the sum, as of the close of business on the

related Determination Date of (i) Monthly Payments collected but due during a

Due Period subsequent to the Due Period ending on the first day of the month of

the related Distribution Date, (ii) all interest or other income earned on

deposits in the Custodial Account, (iii) any other amounts reimbursable or

payable to the Master Servicer or any other Person pursuant to Section 3.11,

(iv) Insurance Proceeds, Liquidation Proceeds, Principal Prepayments, REO

Proceeds and the proceeds of Mortgage Loan purchases (or amounts received in

connection with substitutions) made pursuant to Section 2.02 and 2.04, in each

case received or made in the month of such Distribution Date and (v) the

Trustee's Fee.

 

         "Bankruptcy Amount": As of any date of determination, an amount, equal

to the excess, if any, of (A) $_______, over (B) the aggregate amount of

Bankruptcy Losses allocated solely to one or more specific Classes of

Certificates in accordance with Section 4.04.

 

         The Bankruptcy Amount may be further reduced by the Master Servicer

(including accelerating the manner in which such coverage is reduced) provided

that prior to any such reduction, the Master Servicer shall (i) obtain written

confirmation from each Rating Agency that such reduction shall not reduce the

rating assigned to any Class of Certificates by such Rating Agency below the

lower of the then-current rating or the rating assigned to such Certificates as

of the Closing Date by such Rating Agency and (ii) provide a copy of such

written confirmation to the Trustee.

 

         "Bankruptcy Code": The United States Bankruptcy Code of 1978, as

amended.

 

         "Bankruptcy Loss": With respect to any Mortgage Loan, a Deficient

Valuation or Debt Service Reduction; provided, however, that a Deficient

Valuation or a Debt Service Reduction shall not be deemed a Bankruptcy Loss

hereunder so long as the Master Servicer has notified the Trustee in writing

that the Master Servicer is diligently pursuing any remedies that may exist in

connection with the related Mortgage Loan and either (A) the related Mortgage

Loan is not in default with regard to payments due thereunder or (B) delinquent

payments of principal and interest under the related Mortgage Loan and any

related escrow payments in respect of such Mortgage Loan are being advanced on a

current basis by the Master Servicer, in either case without giving effect to

any Deficient Valuation or Debt Service Reduction.

 

         "Business Day": Any day other than (i) a Saturday or a Sunday or (ii) a

day on which banking institutions in the State of ______________ or the State of

______________ (and such other state or states in which the Custodial Account or

the Certificate Account are at the time located) are required or authorized by

law or executive order to be closed.

 

         "Cash Liquidation": As to any defaulted Mortgage Loan other than a

Mortgage Loan as to which an REO Acquisition occurred, the final receipt by or

on behalf of the Master Servicer of all Insurance Proceeds, Liquidation Proceeds

and other payments or cash recoveries which the Master Servicer reasonably and

in good faith expects to be finally recoverable with respect to such Mortgage

Loan.

 

         "Certificate": Any Class A, Class B or Class R Certificate.

 

         "Certificate Account": The account or accounts created and maintained

pursuant to Section 4.01, which shall be entitled "___________________________________, as trustee, in trust for the registered holders of Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through Certificates,Series 20__-__" and which must be an Eligible Account.

         "Certificate Account Deposit Date": The 20th day (or if such 20th day

is not a Business Day, the Business Day immediately preceding such 20th day) of

the month.

 

         "Certificateholder" or "Holder": The Person in whose name a Certificate

is registered in the Certificate Register, except that, neither a Disqualified

Organization nor a Non-United States Person shall be a Holder of a Class R

Certificate for any purposes hereof and, solely for the purposes of giving any

consent pursuant to this Agreement, any Certificate registered in the name of

the Depositor or the Master Servicer or any affiliate thereof shall be deemed

not to be outstanding and the Voting Rights to which it is entitled shall not be

taken into account in determining whether the requisite percentage of Voting

Rights necessary to effect any such consent has been obtained, except as

otherwise provided in Section 11.01. The Trustee shall be entitled to rely upon

a certification of the Depositor or the Master Servicer in determining if any

Certificates are registered in the name of a respective affiliate.

 

         "Certificate Owner": With respect to a Book-Entry Certificate, the

Person who is the beneficial owner of such Certificate, as reflected on the

books of an indirect participating brokerage firm for which a Depositor

Participant acts as agent, if any, and otherwise on the books of a Depositor

Participant, if any, and otherwise on the books of the Depositor.

 

         "Certificate Principal Balance": With respect to each Class A

Certificate (other than a Class A-5 Certificate or Class A-7 Certificate), on

any date of determination, an amount equal to (i) the Initial Certificate

Principal Balance of such Certificate as specified on the face thereof, minus

(ii) the sum of (x) the aggregate of all amounts previously distributed with

respect to such Certificate (or any predecessor Certificate) and applied to

reduce the Certificate Principal Balance thereof pursuant to Section 4.02(b) and

(y) the aggregate of all reductions in Certificate Principal Balance deemed to

have occurred in connection with Realized Losses which were previously allocated

to such Certificate (or any predecessor Certificate) pursuant to Section 4.04.

With respect to the Class B Certificates, on any date of determination, an

amount equal to the Percentage Interest evidenced by such Certificate times the

excess, if any, of (A) the then aggregate Stated Principal Balance of the

Mortgage Loans over (B) the then aggregate Certificate Principal Balance of all

other Classes of Certificates then outstanding. The Class A-5 Certificates,

Class A-7 Certificates and Class R Certificates have no Certificate Principal

Balance.

 

         "Certificate Register": The register maintained pursuant to Section

5.02.

 

         "Class": Collectively, all of the Certificates bearing the same

designation.

 

         "Class A Certificate": Any one of the Class A-1, Class A-2, Class A-3,

Class A-4, Class A-5, Class A-6 or Class A-7 Certificates, executed by the

Trustee and authenticated by the Certificate Registrar substantially in the form

annexed hereto as Exhibit A-1, each such Certificate evidencing an interest

designated as a "regular interest" in the Trust Fund for purposes of the REMIC

Provisions.

 

         "Class B Certificate": The Class B Certificates executed by the Trustee

and authenticated by the Certificate Registrar substantially in the form annexed

hereto as Exhibit A-2 and evidencing an interest designated as a "regular

interest" in the Trust Fund for purposes of the REMIC Provisions.

 

         "Class B Percentage": With respect to any Distribution Date, the lesser

of (i) 100% minus the Senior Percentage and (ii) a fraction, expressed as a

percentage, the numerator of which is the aggregate Certificate Principal

Balance of the Class B Certificates immediately prior to such date and the

denominator of which is the aggregate Stated Principal Balance of all of the

Mortgage Loans (or related REO Properties) immediately prior to such

Distribution Date.

 

         "Class R Certificate": Any one of the Class R Certificates executed and

delivered by the Trustee substantially in the form annexed hereto as Exhibit B

and evidencing an interest designated as a "residual interest" in the REMIC for

purposes of the REMIC Provisions.

 

         "Closing Date" : _______________ ___, 20__.

 

         "Code": The Internal Revenue Code of 1986.

 

         "Collateral Value": The appraised value of a Mortgaged Property based

upon the lesser of (i) the appraisal made at the time of the origination of the

related Mortgage Loan, or (ii) the sales price of such Mortgaged Property at

such time of origination. With respect to a Mortgage Loan the proceeds of which

were used to refinance an existing mortgage loan, the appraised value of the

Mortgaged Property based upon the appraisal (as reviewed and approved by the

Seller) obtained at the time of refinancing.

 

         "Corporate Trust Office": The principal office of the Trustee at which at any particular time its corporate trust business with respect to this Agreement shall be administered, which office at the date of the execution of this instrument is located at _____________________, Attention:

 

__________________ Series 20__-__.

 

         "Credit Support Depletion Date": The first Distribution Date on which

the Senior Percentage equals 100%.

 

         "Custodial Account": The custodial account or accounts created and

maintained pursuant to Section 3.10 in a depository institution, as custodian

for the holders of the Certificates, for the holders of certain other interests

in mortgage loans serviced or sold by the Master Servicer and for the Master

Servicer, into which the amounts set forth in Section 3.10 shall be deposited

directly. Any such account or accounts shall be an Eligible Account.

 

         "Cut-off Date": _____________ 1, 20__.

 

         "Debt Service Reduction": With respect to any Mortgage Loan, a

reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of

competent jurisdiction in a proceeding under the Bankruptcy Code, except such a

reduction constituting a Deficient Valuation or any reduction that results in a

permanent forgiveness of principal.

 

         "Default Loss": Any Realized Loss that is attributable to the related

Mortgagor's failure to make any payment of principal or interest as required

under the Mortgage Note, excluding Special Hazard Losses (or any other loss

resulting from damage to a Mortgaged Property), Bankruptcy Losses, Fraud Losses,

or other losses of a type not covered by the subordination provided by the Class

B Certificates pursuant to Section 4.04.

 

         "Deficient Valuation": With respect to any Mortgage Loan, a valuation

by a court of competent jurisdiction of the Mortgaged Property in an amount less

than the then outstanding indebtedness under the Mortgage Loan, which valuation

results from a proceeding initiated by the Mortgagor under the Bankruptcy Code.

 

         "Definitive Certificate": Any definitive, fully registered Certificate.

 

         "Deleted Mortgage Loan": A Mortgage Loan replaced or to be replaced

with a Qualified Substitute Mortgage Loan.

 

         "Demand":  As defined in Section 4.08(a).

 

         "Depositor": Opteum Mortgage Acceptance Corporation, or its successor in

 

interest.

 

         "Determination Date": The 15th day (or if such 15th day is not a

Business Day, the Business Day immediately preceding such 15th day) of the month

of the related Distribution Date.

 

         "Disqualified Organization": Any of the following: (i) the United

States, any State or any political subdivision thereof, any possession of the

United States or any agency or instrumentality of any of the foregoing (other

than an instrumentality which is a corporation, if all of its activities are

subject to tax and, except for the FHLMC, a majority of its board of directors

is not selected by any such governmental unit), (ii) a foreign government,

international organization or any agency or instrumentality of either the

foregoing, (iii) an organization (except certain farmers' cooperatives described

in Section 521 of the Code) which is exempt from tax imposed by Chapter 1 of the

Code (unless such organization is subject to the tax imposed by Section 511 of

the Code on unrelated business taxable income), (iv) rural electric and

telephone cooperatives described in Section 1381 of the Code or (v) any other

Person so designated by the Trustee based on an Opinion of Counsel obtained by

the Trustee, at the expense of the Trust Fund, (which opinion shall be sought

only if the Trustee has actual knowledge that the holding of an Ownership

Interest in a Class R Certificate by such Person may cause the Trust Fund or any

Person having an Ownership Interest in any Class of Certificates, other than

such Person, to incur a liability for any federal tax imposed under the Code

that would not otherwise be imposed but for the Transfer of an Ownership

Interest in a Class R Certificate to such Person). The terms "United States,"

"State" and "international organization" shall have the meanings set forth in

Section 7701 of the Code or successor provisions.

 

         "Distribution Date": The 25th day of any month, or if such 25th day is

not a Business Day, the Business Day immediately following such 25th day

commencing on _______ 25, 20__.

 

         "Due Date": The first day of the month of the related Distribution

Date.

 

         "Due Period": With respect to any Distribution Date, the period

commencing on the second day of the month preceding the month of such

Distribution Date (or, with respect to the first Due Period, the day following

the Cut-off Date) and ending on the related Due Date.

 

         ["Duff & Phelps": Duff & Phelps Credit Rating Company or its successor

in interest.]

 

         "Eligible Account": An account maintained with a federal or state

chartered depository institution (i) the short-term obligations of which are

rated by each of the Rating Agencies in its highest rating at the time of any

deposit therein, or (ii) insured by the FDIC (to the limits established by such

Corporation), the uninsured deposits in which account are otherwise secured such

that, as evidenced by an Opinion of Counsel (obtained by and at the expense of

the Person requesting that the account be held pursuant to this clause (ii))

delivered to the Trustee prior to the establishment of such account, the

Certificateholders will have a claim with respect to the funds in such account

and a perfected first priority security interest against any collateral (which

shall be limited to Permitted Instruments, each of which shall mature not later

than the Business Day immediately preceding the Distribution Date next following

the date of investment in such collateral or the Distribution Date if such

Permitted Instrument is an obligation of the institution that maintains the

Certificate Account or Custodial Account) securing such funds that is superior

to claims of any other depositors or general creditors of the depository

institution with which such account is maintained or (iii) a trust account or

accounts maintained with a federal or state chartered depository institution or

trust company with trust powers acting in its fiduciary capacity or (iv) an

account or accounts of a depository institution acceptable to the Rating

Agencies (as evidenced in writing by the Rating Agencies that use of any such

account as the Custodial Account or the Certificate Account will not have an

adverse effect on the then-current ratings assigned to the Classes of the

Certificates then rated by the Rating Agencies). Eligible Accounts may bear

interest.

 

         "Event of Default": One or more of the events described in Section

7.01.

 

         "Excess Bankruptcy Loss": Any Bankruptcy Loss, or portion thereof,

which exceeds the then applicable Bankruptcy Amount.

 

         "Excess Fraud Loss": Any Fraud Loss, or portion thereof, which exceeds

the then applicable Fraud Loss Amount.

 

         "Excess Special Hazard Loss": Any Special Hazard Loss, or portion

thereof, that exceeds the then applicable Special Hazard Amount.

 

         "Exchange Act": The Securities Exchange Act of 1934, as amended.

         "Extraordinary Events": Any of the following conditions with respect to

a Mortgaged Property or Mortgage Loan causing or resulting in a loss which

causes the liquidation of such Mortgage Loan:

 

         (a) losses that are of a type that would be covered by the fidelity

bond and the errors and omissions insurance policy required to be maintained

pursuant to Section 3.18 but are in excess of the coverage maintained

thereunder;

 

         (b) nuclear reaction or nuclear radiation or radioactive contamination,

all whether controlled or uncontrolled, and whether such loss be direct or

indirect, proximate or remote or be in whole or in part caused by, contributed

to or aggravated by a peril covered by the definition of the term "Special

Hazard Loss";

 

         (c) hostile or warlike action in time of peace or war, including action

in hindering, combatting or defending against an actual, impending or expected

attack:

 

                  1. by any government or sovereign power, de jure or de facto,

         or by any authority maintaining or using military, naval or air forces;

         or

 

                  2. by military, naval or air forces; or

 

                  3. by an agent of any such government, power, authority or

         forces;

 

         (d) any weapon of war employing atomic fission or radioactive force

whether in time of peace or war; or

 

         (e) insurrection, rebellion, revolution, civil war, usurped power or

action taken by governmental authority in hindering, combatting or defending

against such an occurrence, seizure or destruction under quarantine or customs

regulations, confiscation by order of any government or public authority; or

risks of contraband or illegal transportation or trade.

 

         "Extraordinary Losses": Any loss incurred on a Mortgage Loan caused by

or resulting from an Extraordinary Event.

 

         "FDIC": Federal Deposit Insurance Corporation or any successor.

 

         "FHLMC": Federal Home Loan Mortgage Corporation or any successor.

 

         ["Fitch": Fitch Investors Service, Inc., or its successor in interest.]

 

         "FNMA": Federal National Mortgage Association or any successor.

 

         "Fraud Losses": Any Realized Loss sustained by reason of a default

arising from fraud, dishonesty or misrepresentation in connection with the

related Mortgage Loan.

 

         "Fraud Loss Amount": As of any date of determination after the Cut-off

Date, an amount equal to: (X) up to and including the [first] anniversary of the

Cut-off Date an amount equal to ______% of the aggregate outstanding principal

balance of all of the Mortgage Loans as of the Cut-off Date minus the aggregate

amount of Fraud Losses allocated to the Class B Certificates in accordance with

Section 4.04 since the Cut-off Date up to such date of determination, (Y) from

the [first] to the fifth anniversary of the Cut-off Date, an amount equal to (1)

the lesser of (a) the Fraud Loss Amount as of the most recent anniversary of the

Cut-off Date and (b) ______% of the aggregate outstanding principal balance of

all of the Mortgage Loans as of the most recent anniversary of the Cut-off Date

minus (2) the Fraud Losses allocated solely to the Class B Certificates in

accordance with Section 4.04 since the most recent anniversary of the Cut-off

Date up to such date of determination. On and after the fifth anniversary of the

Cutoff Date the Fraud Loss Amount shall be zero.

 

         The Fraud Loss Amount may be further reduced by the Master Servicer

(including accelerating the manner in which such coverage is reduced) provided

that prior to any such reduction, the Master Servicer shall (i) obtain written

confirmation from each Rating Agency that such reduction shall not reduce the

rating assigned to any Class of Certificates by such Rating Agency below the

lower of the then-current rating or the rating assigned to such Certificates as

of the Closing Date by such Rating Agency and (ii) provide a copy of such

written confirmation to the Trustee.

 

         "Funding Date": With respect to each Mortgage Loan, the date on which

funds were advanced by or on behalf of the Seller and interest began to accrue

thereunder.

 

         "Homes Act":  The Helping Families Save Their Homes Act of 2009, as it may be amended from time to time.

 

         "Initial Certificate Principal Balance": With respect to each Class of

Certificates, the Certificate Principal Balance of such Class of Certificates as

of the Cut-off Date as set forth in the Preliminary Statement hereto.

 

         "Insurance Policy": With respect to any Mortgage Loan, any insurance

policy which is required to be maintained from time to time under this Agreement

in respect of such Mortgage Loan.

 

         "Insurance Proceeds": Proceeds paid by any insurer pursuant to the

Primary Mortgage Insurance Policy and any other insurance policy covering a

Mortgage Loan to the extent such proceeds are not applied to the restoration of

the related Mortgaged Property or released to the Mortgagor in accordance with

the procedures that the Master Servicer would follow in servicing mortgage loans

held for its own account.

 

         "Late Collections": With respect to any Mortgage Loan, all amounts

received during any Due Period, whether as late payments of Monthly Payments or

as Insurance Proceeds, Liquidation Proceeds or otherwise, which represent late

payments or collections of Monthly Payments due but delinquent for a previous

Due Period and not previously recovered.

 

         "Liquidation Proceeds": Amounts (other than Insurance Proceeds)

received by the Master Servicer in connection with the taking of an entire

Mortgaged Property by exercise of the power of eminent domain or condemnation or

in connection with the liquidation of a defaulted Mortgage Loan through

trustee's sale, foreclosure sale or otherwise, other than amounts received in

respect of REO Property.

 

         "Loan-to-Value Ratio": As of any date, the fraction, expressed as a

percentage, the numerator of which is the current principal balance of the

related Mortgage Loan at the date of determination and the denominator of which

is the Collateral Value of the related Mortgaged Property.

 

         "Master Servicer": [Name of Master Servicer], or any successor master

servicer appointed as herein provided.

 

         "Monthly Payment": With respect to any Mortgage Loan, the scheduled

monthly payment of principal and interest on such Mortgage Loan which is payable

by a Mortgagor from time to time under the related Mortgage Note as originally

executed (after adjustment, if any, for Principal Prepayments and for Deficient

Valuations occurring prior to such Due Date, and after any adjustment by reason

of any bankruptcy or similar proceeding or any moratorium or similar waiver or

grace period).

 

         ["Moody's": Moody's Investors Service, Inc. or its successor in

interest.]

 

         "Mortgage": The mortgage, deed of trust or any other instrument

securing the Mortgage Loan.

 

         "Mortgage File": The mortgage documents listed in Section 2.01

pertaining to a particular Mortgage Loan and any additional documents required

to be added to the Mortgage File pursuant to this Agreement; provided, that

whenever the term "Mortgage File" is used to refer to documents actually

received by the Trustee, such term shall not be deemed to include such

additional documents required to be added unless they are actually so added.

 

         "Mortgage Loan": Each of the mortgage loans, transferred and assigned

to the Trustee pursuant to Section 2.01 or Section 2.03 and from time to time

held in the Trust Fund, the Mortgage Loans originally so transferred, assigned

and held being identified in the Mortgage Loan Schedule attached hereto as

Exhibit H (and any Qualified Substitute Mortgage Loans). As used herein, the

term "Mortgage Loan" includes the related Mortgage Note and Mortgage.

 

         "Mortgage Loan Schedule": As of any date of determination, the schedule

of Mortgage Loans included in the Trust Fund. The initial schedule of Mortgage

Loans with accompanying information transferred on the Closing Date to the

Trustee as part of the Trust Fund for the Certificates, attached hereto as

Exhibit H (as amended from time to time to reflect the addition of Qualified

Substitute Mortgage Loans) (and, for purposes of the Trustee's review of the

Mortgage Files pursuant to Section 2.02, in computer-readable form as delivered

to the Trustee), which list shall set forth the following information, if

applicable, with respect to each Mortgage Loan:

 

                  (i) the loan number and name of the Mortgagor;

 

                  (ii) the city, state and zip code of the

         Mortgaged Property;

 

                  (iii) the Mortgage Rate;

 

                  (iv) the maturity date;

 

                  (v) the original principal balance;

 

                  (vi) the first payment date;

 

                  (vii) the type of Mortgaged Property;

 

                  (viii) the Monthly Payment in effect as of the Cut-off Date;

 

                  (ix) the principal balance as of the Cut-off Date;

 

                  (x) the occupancy status;

 

                  (xi) the purpose of the Mortgage Loan;

 

                  (xii) the Collateral Value of the Mortgaged Property;

 

                  (xiii) the original term to maturity;

 

                  (xiv) the paid-through date of the Mortgage Loan;

 

                  (xv) the Loan-to-Value Ratio; and

 

                  (xvi) whether or not the Mortgage Loan was underwritten

         pursuant to a limited documentation program.

 

         The Mortgage Loan Schedule shall also set forth the total of the

amounts described under (ix) above for all of the Mortgage Loans. The Mortgage

Loan Schedule may be in the form of more than one schedule, collectively setting

forth all of the information required. With respect to any Qualified Substitute

Mortgage Loan, the item described in clauses (viii) shall be set forth as the

date of substitution.

 

         "Mortgage Note": The note or other evidence of the indebtedness of a

Mortgagor under a Mortgage Loan.

 

         "Mortgage Rate": With respect to any Mortgage Loan, the annual rate at

which interest accrues on such Mortgage Loan.

 

         "Mortgaged Property": The underlying property securing a Mortgage Loan.

 

         "Mortgagor": The obligor or obligors on a Mortgage Note.

 

         "Net Mortgage Rate": As to each Mortgage Loan, a per annum rate of

interest equal to the related Mortgage Rate as in effect from time to time minus

the sum of the Servicing Fee Rate and the rate at which the Trustee's Fee

accrues.

 

         "Nonrecoverable Advance": Any Advance previously made or proposed to be

made in respect of a Mortgage Loan which, in the good faith judgment of the

Master Servicer, will not or, in the case of a proposed Advance, would not be

ultimately recoverable from related Late Collections, Insurance Proceeds,

Liquidation Proceeds, REO Proceeds or amounts reimbursable to the Master

Servicer pursuant to Section 4.01(b). The determination by the Master Servicer

that it has made a Nonrecoverable Advance or that any proposed Advance would

constitute a Nonrecoverable Advance, shall be evidenced by an Officers'

Certificate delivered to the Depositor and the Trustee.

 

         "Non-United States Person": Any Person other than a United States

Person.

 

         "Notional Amount": As of any Distribution Date, with respect to the

Class A-5 Certificates and the Class A-7 Certificates, an amount equal to the

aggregate Certificate Principal Balance of all Classes of Certificates

immediately prior to such date.

 

         "NRSRO":  Any nationally recognized statistical rating organization for purposes of Rule 17g-5 under the Exchange Act.

 

         "NRSRO Certification":  A certification in the form of Exhibit P hereto.

 

         "Officers' Certificate": A certificate signed by the Chairman of the

Board, the Vice Chairman of the Board, the President or a vice president and by

the Treasurer, the Secretary, or one of the assistant treasurers or assistant

secretaries of the Master Servicer or of the Sub-Servicer and delivered to the

Depositor and Trustee.

 

         "Opinion of Counsel": A written opinion of counsel, who may be counsel

for the Depositor or the Master Servicer, reasonably acceptable to the Trustee;

except that any opinion of counsel relating to (a) the qualification of any

account required to be maintained pursuant to this Agreement as an Eligible

Account, (b) qualification of the Trust Fund as a REMIC, (c) compliance with the

REMIC Provisions or (d) resignation of the Master Servicer pursuant to Section

6.04 must be an opinion of counsel who (i) is in fact independent of the

Depositor and the Master Servicer, (ii) does not have any direct financial

interest or any material indirect financial interest in the Depositor or the

Master Servicer or in an affiliate of either and (iii) is not connected with the

Depositor or the Master Servicer as an officer, employee, director or person

performing similar functions.

 

         "Optimal Percentage": A fraction, expressed as a percentage, the

numerator of which is the Certificate Principal Balance of the Class A-1

Certificates immediately prior to the applicable Distribution Date and the

denominator of which is the aggregate Certificate Principal Balance of all of

the Class A Certificates immediately prior to such Distribution Date.

 

         "Optimal Principal Distribution Amount": An amount equal to the product

of (i) the then applicable Optimal Percentage and (ii) the Senior Principal

Distribution Amount.

 

         "Original Senior Percentage": _______%, which is the fraction,

expressed as a percentage, the numerator of which is the aggregate Initial

Certificate Principal Balance of the Class A Certificates and the denominator of

which is the aggregate Stated Principal Balance of the Mortgage Loans.

 

         "Originator":  Each of [_________], as applicable, and any successor thereto.

 

         "OTS": Office of Thrift Supervision or any successor thereto.

 

         "Outstanding Mortgage Loan": As to any Due Date, a Mortgage Loan

(including an REO Property) which was not the subject of a Principal Prepayment

in full, Cash Liquidation or REO Disposition and which was not purchased or

substituted for prior to such Due Date pursuant to Sections 2.02 or 2.04.

 

         "Ownership Interest": As to any Certificate, any ownership or security

interest in such Certificate, including any interest in such Certificate as the

Holder thereof and any other interest therein, whether direct or indirect, legal

or beneficial, as owner or as pledgee.

 

         "Pass-Through Rate": With respect to the Class A Certificates (other

than the Class A-7 Certificates) and Class B Certificates and any Distribution

Date, the per annum rate set forth in the Preliminary Statement hereto. With

respect to the Class A-7 Certificates and any Distribution Date, a rate equal to

the weighted average, expressed as a percentage, of the Pool Strip Rates of all

Mortgage Loans in the Trust Fund as of the Due Date in the month immediately

preceding the month in which such Distribution Date occurs, weighted on the

basis of the respective Stated Principal Balances of such Mortgage Loans, which

Stated Principal Balances shall be the Stated Principal Balances of such

Mortgage Loans at the close of business on the immediately preceding

Distribution Date after giving effect to the distributions thereon allocable to

principal (or, in the case of the initial Distribution Date, at the close of

business on the Cut-off Date). With respect to the Class A-7 Certificates and

the initial Distribution Date, the Pass-Through Rate is equal to ______% per

annum.

 

         "Percentage Interest": With respect to any Certificate (other than a

Class A-5, Class A-7 or Class R Certificate), the undivided percentage ownership

interest in the related Class evidenced by such Certificate, which percentage

ownership interest shall be equal to the initial Certificate Principal Balance

thereof divided by the aggregate Initial Certificate Principal Balance of all of

the Certificates of the same Class. With respect to a Class A-5 or Class A-7

Certificate, the undivided percentage ownership interest in the related Class

evidenced by such Certificate, which percentage ownership interest shall be

equal to the initial Notional Amount thereof divided by the aggregate initial

Notional Amount of all of the Certificates of the same Class. With respect to a

Class R Certificate, the interest in distributions to be made with respect to

such Class evidenced thereby, expressed as a percentage, as stated on the face

of each such Certificate.

 

         "Permitted Instruments": Any one or more of the following:

 

                  (i) (a) direct obligations of, or obligations fully guaranteed

         as to principal and interest by, the United States or any agency or

         instrumentality thereof, provided such obligations are backed by the

         full faith and credit of the United States and (b) direct obligations

         of, and obligations guaranteed as to timely payment by FHLMC or FNMA

         if, at the time of investment, they are assigned the highest credit

         rating by the Rating Agencies;

 

                  (ii) repurchase obligations (the collateral for which is held

         by a third party or the Trustee) with respect to any security described

         in clause (i) above, provided that the short-term unsecured obligations

         of the party agreeing to repurchase such obligations are at the time

         rated by each Rating Agency in one of its two highest long-term rating

         categories;

 

                  (iii) certificates of deposit, time deposits, demand deposits

         and bankers' acceptances of any bank or trust company incorporated

         under the laws of the United States or any state thereof or the

         District of Columbia, provided that the short-term commercial paper of

         such bank or trust company (or, in the case of the principal depository

         institution in a depository institution holding company, the long-term

         unsecured debt obligations of the depository institution holding

         company) at the date of acquisition thereof has been rated by each

         Rating Agency in its highest short-term rating;

 

                  (iv) commercial paper (having original maturities of not more

         than nine months) of any corporation incorporated under the laws of the

         United States or any state thereof or the District of Columbia which on

         the date of acquisition has been rated by each Rating Agency in its

         highest short- term rating;

 

                  (v) a money market fund or a qualified investment fund rated

         by each Rating Agency in its highest rating available; and

 

                  (vi) if previously confirmed in writing to the Trustee, any

         other obligation or security acceptable to each Rating Agency in

         respect of mortgage pass-through certificates rated in each Rating

         Agency's highest rating category;

 

provided, that no such instrument shall be a Permitted Instrument if such

instrument evidences either (a) the right to receive interest only payments with

respect to the obligations underlying such instrument or (b) both principal and

interest payments derived from obligations underlying such instrument where the

principal and interest payments with respect to such instrument provide a yield

to maturity exceeding 120% of the yield to maturity at par of such underlying

obligation.

 

         "Permitted Transferee": Any transferee of a Class R Certificate other

than a Disqualified Organization or a Non-United States Person.

 

         "Person": Any individual, corporation, partnership, joint venture,

association, joint-stock company, trust, unincorporated organization or

government or any agency or political subdivision thereof.

 

         "Pool Strip Rate": With respect to each Mortgage Loan, the rate per

annum equal to the Net Mortgage Rate thereon minus _____% per annum.

 

         "Prepayment Assumption": A prepayment assumption of _____% of the

standard prepayment assumption, used for determining the accrual of original

issue discount and market discount and premium on the Certificates for federal

income tax purposes. The standard prepayment assumption assumes a constant rate

of prepayment of mortgage loans of 0.2% per annum of the then outstanding

principal balance of such mortgage loans in the first month of the life of the

mortgage loans, increasing by an additional 0.2% per annum in each succeeding

month until the thirtieth month, and a constant 6% per annum rate of prepayment

thereafter for the life of such mortgage loans.

 

         "Prepayment Interest Shortfall": With respect to any Distribution Date,

for each Mortgage Loan that was the subject of a partial Principal Prepayment, a

Principal Prepayment in full, or of a Cash Liquidation or an REO Disposition

during the related Prepayment Period, an amount equal to the amount of interest

that would have accrued at the applicable Net Mortgage Rate (i) in the case of a

Principal Prepayment in full, Cash Liquidation or REO Disposition on the

principal balance of such Mortgage Loan immediately prior to such prepayment (or

liquidation), commencing on the date of prepayment (or liquidation) and ending

on the last day of the month of prepayment or liquidation or (ii) in the case of

a partial Principal Prepayment, on the amount of such prepayment, commencing on

the date as of which the prepayment is applied and ending on the last day of the

month of prepayment.

 

         "Prepayment Period": As to any Distribution Date, the calendar month

preceding the month in which such Distribution Date occurs.

 

         "Primary Hazard Insurance Policy": Each primary hazard insurance policy

required to be maintained pursuant to Section 3.13.

 

         "Primary Mortgage Insurance Policy": Each primary mortgage insurance

policy required to be maintained pursuant to Section 3.13.

 

         "Principal Prepayment": Any payment of principal made by the Mortgagor

on a Mortgage Loan which is received in advance of its scheduled Due Date and

which is not accompanied by an amount of interest representing scheduled

interest due on any date or dates in any month or months subsequent to the month

of prepayment.

 

         "Purchase Price": With respect to any Mortgage Loan (or REO Property)

required to be purchased pursuant to Section 2.02 or 2.04, an amount equal to

the sum of (i) 100% of the Stated Principal Balance thereof, (ii) unpaid accrued

interest (or REO Imputed Interest) at the sum of the applicable Net Mortgage

Rate, the rate at which the Trustee's Fee accrues on the Stated Principal

Balance thereof outstanding during each Due Period that such interest was not

paid or advanced, from the date through which interest was last paid by the

Mortgagor or advanced and distributed to Certificateholders together with unpaid

related Servicing Fees from the date through which interest was last paid by the

Mortgagor, in each case to the first day of the month in which such Purchase

Price is to be distributed, plus (iii) the aggregate of all Advances made in

respect thereof that were not previously reimbursed.

 

         "Qualified Insurer": An insurance company duly qualified as such under

the laws of the state of its principal place of business and each state having

jurisdiction over such insurer in connection with the insurance policy issued by

such insurer, duly authorized and licensed in such states to transact business

in such states and to write the insurance provided by the insurance policy

issued by it, approved as an insurer by the Master Servicer, as a FNMA approved

mortgage insurer and having a claims paying ability rating of at least "AA" by

________________ and which is acceptable to _______________. Any replacement

insurer with respect to a Mortgage Loan must have at least as high a claims

paying ability rating by ______________ and _______________ as the insurer it

replaces had on the Closing Date.

 

         "Qualified Substitute Mortgage Loan": A Mortgage Loan substituted by

the Depositor for a Deleted Mortgage Loan which must, on the date of such

substitution, as confirmed in an Officers' Certificate delivered to the Trustee,

(i) have an outstanding principal balance, after deduction of the principal

portion of the monthly payment due in the month of substitution (or in the case

of a substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an

aggregate outstanding principal balance, after such deduction), not in excess of

the Stated Principal Balance of the Deleted Mortgage Loan (the amount of any

shortfall to be deposited by the Master Servicer, in the Custodial Account in

the month of substitution); (ii) have a Mortgage Rate and a Net Mortgage Rate no

lower than and not more than 1% per annum higher than the Mortgage Rate and Net

Mortgage Rate, respectively, of the Deleted Mortgage Loan as of the date of

substitution; (iii) have a remaining term to stated maturity not greater than

(and not more than one year less than) that of the Deleted Mortgage Loan; (iv)

comply with each representation and warranty set forth in Section 2 of the

Seller's Warranty Certificate; (v) have a Loan-to-Value Ratio as of the date of

substitution equal to or lower than the Loan-to-Value Ratio of the Deleted

Mortgage Loan as of such date; and (vi) be covered under a Primary Insurance

Policy if such Qualified Substitute Mortgage Loan has a Loan-to-Value Ratio in

excess of 80%. In the event that one or more mortgage loans are substituted for

one or more Deleted Mortgage Loans, the amounts described in clause (i) hereof

shall be determined on the basis of aggregate principal balances, the Mortgage

Rates described in clause (ii) hereof shall be determined on the basis of

weighted average Mortgage Rates, the Net Mortgage Rates described in clause (ii)

hereof shall be satisfied as to each such mortgage loan, the terms described in

clause (iii) shall be determined on the basis of weighted average remaining

terms to maturity, the Loan-to-Value Ratios described in clause (v) hereof shall

be satisfied as to each such mortgage loan and, except to the extent otherwise

provided in this sentence, the representations and warranties described in

clause (iv) hereof must be satisfied as to each Qualified Substitute Mortgage

Loan or in the aggregate, as the case may be.

 

         "Rating Agency": [Standard & Poor's] [Moody's] [Fitch] [Duff & Phelps].

If either agency or a successor is no longer in existence, "Rating Agency" shall

be such statistical credit rating agency, or other comparable Person, designated

by the Depositor, notice of which designation shall be given to the Trustee and

the Master Servicer. References herein to the two highest long term debt rating

categories of a Rating Agency shall mean "AA" or better in the case of [Standard

& Poor's] [Fitch] [Duff & Phelps] and "Aa2" or better in the case of Moody's and

references herein to the highest short-term debt rating of a Rating Agency shall

mean "D-1" or better in the case of [Duff & Phelps] and "A-1" in the case of

[Standard & Poor's,] and in the case of any other Rating Agency such references

shall mean such rating categories without regard to any plus or minus.

 

         "Rating Agency Information":  The notices, information, reports, certifications and oral and written statements required to be provided to a Rating Agency pursuant to this Agreement or Rule 17g-5 under the Exchange Act.

 

         "Realized Loss": With respect to any Mortgage Loan or related REO

Property as to which a Cash Liquidation or REO Disposition has occurred, an

amount (not less than zero) equal to (i) the Stated Principal Balance of the

Mortgage Loan as of the date of Cash Liquidation or REO Disposition, plus (ii)

interest (and REO Imputed Interest, if any) at the related Net Mortgage Rate

from the Due Date as to which interest was last paid or advanced to

Certificateholders up to the date of the Cash Liquidation or REO Disposition on

the Stated Principal Balance of such Mortgage Loan outstanding during each Due

Period that such interest was not paid or advanced, minus (iii) the proceeds, if

any, received during the month in which such Cash Liquidation or REO Disposition

occurred, to the extent applied as recoveries of interest at the related Net

Mortgage Rate and to principal of the Mortgage Loan, net of the portion thereof

reimbursable to the Master Servicer or any Sub-Servicer with respect to related

Advances not previously reimbursed. With respect to each Mortgage Loan which has

become the subject of a Deficient Valuation, the difference between the

principal balance of the Mortgage Loan outstanding immediately prior to such

Deficient Valuation and the principal balance of the Mortgage Loan as reduced by

the Deficient Valuation. With respect to each Mortgage Loan which has become the

subject of a Debt Service Reduction, the amount of such Debt Service Reduction.

 

         "Record Date": The last Business Day of the month immediately preceding

the month of the related Distribution Date.

 

         "Regular Certificate": Any of the Certificates other than the Class R

Certificates.

 

         "Relief Act": The Servicemembers Civil Relief Act, as amended.

         "Relief Act Interest Shortfall": With respect to any Distribution Date

and any Mortgage Loan, any reduction in the amount of interest collectible on

such Mortgage Loan for the most recently ended calendar month as a result of the

application of the Relief Act.

 

         "REMIC": A "real estate mortgage investment conduit" within the meaning

of Section 860D of the Code.

 

         "REMIC Provisions": Provisions of the federal income tax law relating

to real estate mortgage investment conduits, which appear at Sections 860A

through 86OG of Subchapter M of Chapter 1 of the Code, and related provisions,

and proposed, temporary and final regulations and published rulings, notices and

announcements promulgated thereunder, as the foregoing may be in effect from

time to time.

 

         "Remittance Report": A report prepared by the Master Servicer providing

the information set forth in Exhibit E attached hereto.

 

         "REO Acquisition": The acquisition by the Master Servicer on behalf of

the Trustee for the benefit of the Certificateholders of any REO Property

pursuant to Section 3.15.

 

         "REO Disposition": The receipt by the Master Servicer of Insurance

Proceeds, Liquidation Proceeds and other payments and recoveries (including

proceeds of a final sale) which the Master Servicer expects to be finally

recoverable from the sale or other disposition of the REO Property.

 

         "REO Imputed Interest": As to any REO Property, for any period, an

amount equivalent to interest (at the Mortgage Rate that would have been

applicable to the related Mortgage Loan had it been outstanding) on the unpaid

principal balance of the Mortgage Loan as of the date of acquisition thereof (as

such balance is reduced by any income from the REO Property treated as a

recovery of principal pursuant to Section 3.15).

 

         "REO Proceeds": Proceeds, net of directly related expenses, received in

respect of any REO Property (including, without limitation, proceeds from the

rental of the related Mortgaged Property and of any REO Disposition), which

proceeds are required to be deposited into the Custodial Account as and when

received.

 

         "REO Property": A Mortgaged Property acquired by the Master Servicer

through foreclosure or deed-in-lieu of foreclosure in connection with a

defaulted Mortgage Loan.

 

         "Request for Release": A release signed by a Servicing Officer, in the

form of Exhibits F-1 or F-2 attached hereto.

 

         "Required Insurance Policy": With respect to any Mortgage Loan, any

Insurance Policy or any other insurance policy that is required to be maintained

from time to time under this Agreement or pursuant to the provisions of a

Mortgage Loan.

 

         "Residual Certificate": Any of the Class R Certificates.

 

         "Responsible Officer": When used with respect to the Trustee, the

Chairman or Vice Chairman of the Board of Directors or Trustees, the Chairman or

Vice Chairman of the Executive or Standing Committee of the Board of Directors

or Trustees, the President, the Chairman of the Committee on Trust Matters, any

vice president, any assistant vice president, the Secretary, any assistant

secretary, the Treasurer, any assistant treasurer, the Cashier, any assistant

cashier, any trust officer or assistant trust officer, the Controller and any

assistant controller or any other officer of the Trustee customarily performing

functions similar to those performed by any of the above designated officers and

also, with respect to a particular matter, any other officer to whom such matter

is referred because of such officer's knowledge of and familiarity with the

particular subject.

 

         "Rule 15Ga-1 Information":  As defined in Section 4.08(a).

 

         "Rule 17g-5 Information Provider":  The [_______].

 

         "Rule 17g-5 Website":  The website maintained by the [________] pursuant to Section 4.07.

 

         "Section 404 Notice":  The notice required under Section 404 of the Homes Act.

 

         "Seller": [Name of Seller] and its successors and assigns.

 

         "Seller's Warranty Certificate": The Seller's Warranty Certificate of

the Seller, dated ______ __, 20__, in the form of Exhibit I attached hereto.

 

         "Senior Accelerated Distribution Percentage": With respect to any

Distribution Date, the percentage indicated below:

 

DISTRIBUTION DATE SENIOR ACCELERATED DISTRIBUTION PERCENTAGE

 

[TABLE]

 

provided, however, (i) that any scheduled reduction to the Senior Accelerated

Distribution Percentage described above shall not occur as of any Distribution

Date unless either (a)(1) the outstanding principal balance of Mortgage Loans

delinquent [60] days or more averaged over the last six months, as a percentage

of the aggregate outstanding principal balance of all Mortgage Loans averaged

over the last [six] months, does not exceed [2%] and (2) Realized Losses on the

Mortgage Loans to date for such Distribution Date if occurring during the sixth,

seventh, eighth, ninth or tenth year (or any year thereafter) after the Closing

Date are less than [30%, 35%, 40%, 45% or 50%], respectively, of the Initial

Certificate Principal Balance of the Class B Certificates or (b)(1) the

outstanding principal balance of the Mortgage Loans delinquent [60] days or more

averaged over the last six months, as a percentage of the aggregate outstanding

principal balance of all Mortgage Loans averaged over the last [six] months,

does not exceed [4%] and (2) Realized Losses on the Mortgage Loans to date for

such Distribution Date are less than [10%] of the Initial Certificate Principal

Balance of the Class B Certificates and (ii) that for any Distribution Date on

which the Senior Percentage is greater than the Original Senior Percentage, the

Senior Accelerated Distribution Percentage for such Distribution Date shall be

100%. Notwithstanding the foregoing, upon the reduction of the aggregate

Certificate Principal Balance of the Class A Certificates to zero, the Senior

Accelerated Distribution Percentage shall thereafter be 0%.

 

         "Senior Percentage": As of any Distribution Date, the lesser of 100%

and a fraction, expressed as a percentage, the numerator of which is the

aggregate Certificate Principal Balance of the Class A Certificates immediately

prior to such Distribution Date and the denominator of which is the aggregate

Stated Principal Balance of all of the Mortgage Loans (or related REO

Properties) immediately prior to such Distribution Date.

 

         "Senior Principal Distribution Amount": As to any Distribution Date,

the lesser of (a) the balance of the Available Distribution Amount remaining

after the distribution of all amounts required to be distributed pursuant to

Section 4.02(b)(i) and (b) the sum of the amounts required to be distributed to

the Class A Certificateholders on such Distribution Date pursuant to Section

4.02(b)(ii) and (vi).

 

         "Servicing Account": The account or accounts created and maintained

pursuant to Section 3.09.

 

         "Servicing Advances": All customary, reasonable and necessary "out of

pocket" costs and expenses incurred in connection with a default, delinquency or

other unanticipated event by the Master Servicer in the performance of its

servicing obligations, including, but not limited to, the cost of (i) the

preservation, restoration and protection of a Mortgaged Property, (ii) any

enforcement or judicial proceedings, including foreclosures, (iii) the

management and liquidation of any REO Property and (iv) compliance with the

obligations under the second paragraph of Section 3.01 and Section 3.09.

 

         "Servicing Fee": As to each Mortgage Loan, an amount, payable out of

any payment of interest on the Mortgage Loan, equal to interest at the related

Servicing Fee Rate on the Stated Principal Balance of such Mortgage Loan for the

calendar month preceding the month in which the payment is due (alternatively,

in the event such payment of interest accompanies a Principal Prepayment in full

made by the Mortgagor, interest for the number of days covered by such payment

of interest).

 

         "Servicing Fee Rate": With respect to each Mortgage Loan, the per annum

rate of ______%.

 

         "Servicing Officer": Any officer of the Master Servicer involved in, or

responsible for, the administration and servicing of the Mortgage Loans, whose

name appears on a list of servicing officers furnished to the Trustee by the

Master Servicer, as such list may from time to time be amended.

 

         "Single Certificate": A Certificate of any Class evidencing the minimum

denomination for Certificates of such Class as set forth in Section 5.01.

 

         "Special Hazard Amount": As of any Distribution Date, an amount equal

to $___________ (the initial "Special Hazard Amount") minus the sum of (i) the

aggregate amount of Special Hazard Losses allocated solely to the Class B

Certificates pursuant to Section 4.04 and (ii) the Adjustment Amount (as defined

below) as most recently calculated. For each anniversary of the Cut-off Date,

the Adjustment Amount shall be calculated and shall be equal to the amount, if

any, by which the amount calculated in accordance with the preceding sentence

(without giving effect to the deduction of the Adjustment Amount for such

anniversary) exceeds the greater of (A) the product of the Special Hazard

Percentage for such anniversary multiplied by the outstanding principal balance

of all of the Mortgage Loans on such anniversary and (B) twice the outstanding

principal balance of the Mortgage Loan which has the largest outstanding

principal balance on such Anniversary.

 

         "Special Hazard Percentage": As of each anniversary of the Cut-off

Date, the greater of (i) 1% and (ii) the largest percentage obtained by dividing

the aggregate outstanding principal balance on such anniversary of the Mortgage

Loans secured by Mortgaged Properties located in a single, five-digit zip code

area in the State of California by the outstanding principal balance of all the

Mortgage Loans on such anniversary.

 

         "[Standard & Poor's": Ratings Services, a division of The McGraw-Hill Companies, Inc. or its successor in interest.]

 

         "Startup Day": The day designated as such pursuant to Article X hereof.

 

         "Stated Principal Balance": With respect to any Mortgage Loan or

related REO Property at any given time, (i) the principal balance of the

Mortgage Loan outstanding as of the Cut-off Date, after application of principal

payments due on or before such date, whether or not received, minus (ii) the sum

of (a) the principal portion of the Monthly Payments due with respect to such

Mortgage Loan or REO Property during each Due Period ending prior to the most

recent Distribution Date which were received or with respect to which an Advance

was made, (b) all Principal Prepayments with respect to such Mortgage Loan or

REO Property, and all Insurance Proceeds, Liquidation Proceeds and net income

from a REO Property to the extent applied by the Master Servicer as recoveries

of principal in accordance with Section 3.15 with respect to such Mortgage Loan

or REO Property, which were distributed pursuant to Section 4.01 on any previous

Distribution Date and (c) any Realized Loss with respect thereto allocated

pursuant to Section 4.04 for any previous Distribution Date.

 

         "Subordinate Principal Distribution Amount": With respect to any

Distribution Date and the Class B Certificates, (a) the sum of (i) the product

of (x) the Class B Percentage and (y) the aggregate of the amounts calculated

for such Distribution Date under clauses (1), (2) and (3) of Section 4. 01

(b)(ii)(A); (ii) the principal collections described in Section 4. 01 (b)(ii)(B)

to the extent such collections are not otherwise distributed to the Senior

Certificates; and (iii) the product of (x) 100% minus the Senior Accelerated

Distribution Percentage and (z) the aggregate of all Principal Prepayments in

Full and Curtailments received in the related Prepayment Period; provided,

however, that such amount shall in no event exceed the outstanding Certificate

Principal Balance of the Class B Certificates immediately prior to such date.

 

         "Sub-Servicer": Any Person with which the Master Servicer has entered

into a Sub-Servicing Agreement and which meets the qualifications of a

Sub-Servicer pursuant to Section 3.02.

 

         "Sub-Servicer Remittance Date": The 18th day of each month, or if such

day is not a Business Day, the immediately preceding Business Day.

 

         "Sub-Servicing Account": An account established by a Sub-Servicer which

meets the requirements set forth in Section 3.08 and is otherwise acceptable to

the Master Servicer.

 

         "Sub-Servicing Agreement": The written contract between the Master

Servicer and a Sub-Servicer and any successor Sub-Servicer relating to servicing

and administration of certain Mortgage Loans as provided in Section 3.02.

 

         "Swap Provider": The swap provider under a swap agreement either (a)

entitled to receive payments from an administrator from amounts payable by the

Trust Fund under this Agreement or (b) required to make payments to an

administrator for payment to the Trust Fund, in either case pursuant to the

terms of a swap agreement, and any successor in interest or assign.

 

         "Tax Returns": The federal income tax return on Internal Revenue

Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax

Return, including Schedule Q thereto, Quarterly Notice to Residual Interest

Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms,

to be filed on behalf of the Trust Fund due to its classification as a REMIC

under the REMIC Provisions, together with any and all other information, reports

or returns that may be required to be furnished to the Certificateholders or

filed with the Internal Revenue Service or any other governmental taxing

authority under any applicable provisions of federal, state or local tax laws.

 

         "Transfer": Any direct or indirect transfer, sale, pledge,

hypothecation or other form of assignment of any Ownership Interest in a

Certificate.

 

         "Transferor": Any Person who is disposing by Transfer of any Ownership

Interest in a Certificate.

 

         "Trust Fund": The segregated pool of assets subject hereto,

constituting the primary trust created hereby and to be administered hereunder,

with respect to which a REMIC election is to be made, consisting of: (i) the

Mortgage Loans (exclusive of payments of principal and interest due on or before

the Cut-off Date, if any) as from time to time are subject to this Agreement and

all payments under and proceeds of the Mortgage Loans, together with all

documents included in the related Mortgage File, subject to Section 2.01; (ii)

such funds or assets as from time to time are deposited in the Custodial Account

and the Certificate Account; (iii) any REO Property; (iv) the Primary Mortgage

Insurance Policies, if any, Primary Hazard Insurance Policies and all other

Insurance Policies with respect to the Mortgage Loans; and (v) the Depositor's

interest in respect of the representations and warranties made by the Seller in

the Seller's Warranty Certificate as assigned to the Trustee pursuant to Section

2.04 hereof.

 

         "Trustee": [Name of Trustee], or its successor in interest, or any

successor trustee appointed as herein provided.

 

         "Trustee's Fee": As to each Mortgage Loan and as the Distribution Date,

an amount, payable out of any payment of interest on the Mortgage Loan, equal to

interest at ______% per annum on the Stated Principal Balance of such Mortgage

Loan as of the Due Date immediately preceding the month in which such

Distribution Date occurs.

 

         "Uninsured Cause": Any cause of damage to property subject to a

Mortgage such that the complete restoration of such property is not fully

reimbursable by the hazard insurance policies or flood insurance policies

required to be maintained pursuant to Section 3.13.

 

         "United States Person": A citizen or resident of the United States, a

corporation, partnership or other entity created or organized in, or under the

laws of, the United States or any political subdivision thereof, or an estate or

trust whose income from sources without the United States is includable in gross

income for United States federal income tax purposes regardless of its

connection with the conduct of a trade or business within the United States. The

term "United States" shall have the meaning set forth in Section 7701 of the

Code or successor provisions.

 

         "Voting Rights": The portion of the voting rights of all of the

Certificates which is allocated to any Certificate. ______% of all of the Voting

Rights shall be allocated among Holders of the Certificates, respectively, other

than the Class A-5, Class A-7 and Class R Certificates, in proportion to the

outstanding Certificate Principal Balances of their respective Certificates; and

the Holders of the Class A-5, Class A-7 and Class R Certificates shall be

entitled to ___%, ___% and ___% of all of the Voting Rights, respectively,

allocated among the Certificates of each such Class in accordance with their

respective Percentage Interests.

 

ARTICLE II

 

CONVEYANCE OF MORTGAGE LOANS;

ORIGINAL ISSUANCE OF CERTIFICATES

 

         SECTION 2.01 Conveyance of Mortgage Loans.

 

         The Depositor, as of the Closing Date, and concurrently with the

execution and delivery hereof, does hereby assign, transfer, sell, set over and

otherwise convey to the Trustee without recourse all the right, title and

interest of the Depositor in and to the Mortgage Loans identified on the

Mortgage Loan Schedule and all other assets included or to be included in the

Trust Fund for the benefit of the Certificateholders. Such assignment includes

all principal and interest received by the Master Servicer on or with respect to

the Mortgage Loans (other than payment of principal and interest due on or

before the Cut-off Date).

 

         In connection with such transfer and assignment, the Depositor has

requested the Seller to deliver to, and deposit with the Trustee, the following

documents or instruments:

 

                  (i) the original Mortgage Note, endorsed by the Seller "Pay to

         the order of [Name of Trustee], as trustee without recourse" or to "Pay

         to the order of [Name of Trustee], as trustee for holders of Opteum

         Mortgage Acceptance Corporation, Mortgage Pass-Through Certificates, Series

         20__-_, without recourse" with all intervening endorsements showing a

         complete chain of endorsements from the originator to the Person

         endorsing it to the Trustee;

 

                  (ii) the original recorded Mortgage or, if the original

         Mortgage has not been returned from the applicable public recording

         office, a copy of the Mortgage certified by the Seller to be a true and

         complete copy of the original Mortgage submitted to the title insurance

         company for recording;

 

                  (iii) a duly executed original Assignment of the Mortgage

         endorsed by the Seller, without recourse, to "[Name of Trustee], as

         trustee" or to "[Name of Trustee], as trustee for holders of Opteum

         Mortgage Acceptance Corporation, Mortgage Pass-Through Certificates, Series

         20__-_", with evidence of recording thereon;

 

                  (iv) the original recorded Assignment or Assignments of the

         Mortgage showing a complete chain of assignment from the originator

         thereof to the Person assigning it to the Trustee or, if any such

         Assignment has not been returned from the applicable public recording

         office, a copy of such Assignment certified by the Seller to be a true

         and complete copy of the original Assignment submitted to the title

         insurance company for recording;

 

                  (v) the original lender's title insurance policy, or, if such

         policy has not been issued, any one of an original or a copy of the

         preliminary title report, title binder or title commitment on the

         Mortgaged Property with the original policy of the insurance to be

         delivered promptly following the receipt thereof;

 

                  (vi) the original of any assumption, modification, extension

         or guaranty agreement;

 

                  (vii) the original or a copy of the private mortgage insurance

         policy or original certificate of private mortgage insurance, if

         applicable; and

 

                  (viii) if any of the documents or instruments referred to

         above were executed on behalf of the Mortgagor by another Person, the

         original power of attorney or other instrument that authorized and

         empowered such Person to sign, or a copy thereof certified by the

         Seller (or by an officer of the applicable title insurance or escrow

         company) to be a true and correct copy of the original.

 

         The Seller is obligated pursuant to the Seller's Warranty Certificate

to deliver to the Trustee: (a) either the original recorded Mortgage, or in the

event such original cannot be delivered by the Seller, a copy of such Mortgage

certified as true and complete by the appropriate recording office, in those

instances where a copy thereof certified by the Seller was delivered to the

Trustee pursuant to clause (ii) above; and (b) either the original Assignment or

Assignments of the Mortgage, with evidence of recording thereon, showing a

complete chain of assignment from the originator to the Seller, or in the event

such original cannot be delivered by the Seller, a copy of such Assignment or

Assignments certified as true and complete by the appropriate recording office,

in those instances where copies thereof certified by the Seller were delivered

to the Trustee pursuant to clause (iv) above. Notwithstanding anything to the

contrary contained in this Section 2.01, in those instances where the public

recording office retains the original Mortgage after it has been recorded, the

Seller shall be deemed to have satisfied its obligations hereunder upon delivery

to the Trustee of a copy of such Mortgage certified by the public recording

office to be a true and complete copy of the recorded original thereof.

 

         If any Assignment is lost or returned unrecorded to the Trustee because

of any defect therein, the Seller is required to prepare a substitute Assignment

or cure such defect, as the case may be, and the Trustee shall cause such

Assignment to be recorded in accordance with this paragraph.

 

         The Seller is required, as described in the Seller's Warranty

Certificate, to deliver to the Trustee the original of any documents assigned to

the Trustee pursuant to this Section 2.01 not later than 120 days after the

Closing Date.

 

         All original documents relating to the Mortgage Loans which are not

delivered to the Trustee, to the extent delivered by the Seller to the Master

Servicer, are and shall be held by the Master Servicer in trust for the benefit

of the Trustee on behalf of the Certificateholders.

 

         Except as may otherwise expressly be provided herein, neither the

Depositor, the Master Servicer nor the Trustee shall (and the Master Servicer

shall ensure that no Sub-Servicer shall) assign, sell, dispose of or transfer

any interest in the Trust Fund or any portion thereof, or permit the Trust Fund

or any portion thereof to be subject to any lien, claim, mortgage, security

interest, pledge or other encumbrance of, any other Person.

 

         It is intended that the conveyance of the Mortgage Loans by the

Depositor to the Trustee as provided in this Section be, and be construed as, a

sale of the Mortgage Loans by the Depositor to the Trustee for the benefit of

the Certificateholders. It is, further, not intended that such conveyance be

deemed a pledge of the Mortgage Loans by the Depositor to the Trustee to secure

a debt or other obligation of the Depositor. However, in the event that the

Mortgage Loans are held to be property of the Depositor, or if for any reason

this Agreement is held or deemed to create a security interest in the Mortgage

Loans, then it is intended that, (a) this Agreement shall also be deemed to be a

security agreement within the meaning of Articles 8 and 9 of the New York

Uniform Commercial Code and the Uniform Commercial Code of any other applicable

jurisdiction; (b) the conveyance provided for in this Section shall be deemed to

be (1) a grant by the Depositor to the Trustee of a security interest in all of

the Depositor's right (including the power to convey title thereto), title and

interest, whether now owned or hereafter acquired, in and to (A) the Mortgage

Loans, including the Mortgage Notes, the Mortgages, any related insurance

policies and all other documents in the related Mortgage Files, (B) all amounts

payable to the holders of the Mortgage Loans in accordance with the terms

thereof and (C) all proceeds of the conversion, voluntary or involuntary, of the

foregoing into cash, instruments, securities or other property, including

without limitation all amounts from time to time held or invested in the

Certificate Account or the Custodial Account, whether in the form of cash,

instruments, securities or other property and (2) an assignment by the Depositor

to the Trustee of any security interest in any and all of the Seller's right

(including the power to convey title thereto), title and interest, whether now

owned or hereafter acquired, in and to the property described in the foregoing

clauses (1)(A) through (C) granted by [Name of Seller] to the Depositor pursuant

to the Assignment Agreement; (c) the possession by the Trustee or its agent of

Mortgage Notes and such other items of property as constitute instruments,

money, negotiable documents or chattel paper shall be deemed to be "possession

by the secured party" or possession by a purchaser or a person designated by

such secured party, for purposes of perfecting the security interest pursuant to

the New York Uniform Commercial Code and the Uniform Commercial Code of any

other applicable jurisdiction (including, without limitation, Sections 9-305,

8-313 or 8-321 thereof); and (d) notifications to persons holding such property,

and acknowledgments, receipts or confirmations from persons holding such

property, shall be deemed notifications to, or acknowledgments, receipts or

confirmations from, financial intermediaries, bailees or agents (as applicable)

of the Trustee for the purpose of perfecting such security interest under

applicable law. The Depositor and the Trustee shall, to the extent consistent

with this Agreement, take such actions as may be necessary to ensure that, if

this Agreement were deemed to create a security interest in the Mortgage Loans,

such security interest would be deemed to be a perfected security interest of

first priority under applicable law and will be maintained as such throughout

the term of the Agreement.

 

         SECTION 2.02 Acceptance of the Trust Fund by the Trustee.

 

         The Trustee acknowledges receipt (subject to any exceptions noted in

the Initial Certification described below) of the documents referred to in

Section 2.01 above and all other assets included in the Trust Fund and declares

that it holds and will hold such documents and the other documents delivered to

it constituting the Mortgage Files, and that it holds or will hold such other

assets included in the Trust Fund (to the extent delivered or assigned to the

Trustee), in trust for the exclusive use and benefit of all present and future

Certificateholders.

 

         The Trustee agrees, for the benefit of the Certificateholders, to

review each Mortgage File on or before the Closing Date to ascertain that all

documents required to be delivered to it are in its possession, and the Trustee

agrees to execute and deliver to the Depositor and the Master Servicer on the

Closing Date an Initial Certification in the form annexed hereto as Exhibit C to

the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule

(other than any Mortgage Loan paid in full or any Mortgage Loan specifically

identified in such certification as not covered by such certification), (i) all

documents required to be delivered to it pursuant to this Agreement with respect

to such Mortgage Loan are in its possession, (ii) such documents have been

reviewed by it and appear regular on their face and relate to such Mortgage Loan

and (iii) based on its examination and only as to the foregoing documents, the

information set forth in items (i) - (vi) and (xiii) of the definition of the

"Mortgage Loan Schedule" accurately reflects information set forth in the

Mortgage File. Neither the Trustee nor the Master Servicer shall be under any

duty to determine whether any Mortgage File should include any of the documents

specified in clause (vi) of Section 2.01. Neither the Trustee nor the Master

Servicer shall be under any duty or obligation to inspect, review or examine

said documents, instruments, certificates or other papers to determine that the

same are genuine, enforceable or appropriate for the represented purpose or that

they have actually been recorded or that they are other than what they purport

to be on their face.

 

         Within 90 days of the Closing Date the Trustee shall deliver to the

Depositor and the Master Servicer a Final Certification in the form annexed

hereto as Exhibit D evidencing the completeness of the Mortgage Files, with any

applicable exceptions noted thereon.

 

         If in the process of reviewing the Mortgage Files and preparing the

certifications referred to above the Trustee finds any document or documents

constituting a part of a Mortgage File to be missing or defective in any

material respect, the Trustee shall promptly notify the Seller, the Master

Servicer and the Depositor. The Trustee shall promptly notify the Seller of such

defect and request that the Seller cure any such defect within 60 days from the

date on which the Seller was notified of such defect, and if the Seller does not

cure such defect in all material respects during such period, request that the

Seller purchase such Mortgage Loan from the Trust Fund on behalf of the

Certificateholders at the Purchase Price within 90 days after the date on which

the Seller was notified of such defect. It is understood and agreed that the

obligation of the Seller to cure a material defect in, or purchase any Mortgage

Loan as to which a material defect in a constituent document exists shall

constitute the sole remedy respecting such defect available to

Certificateholders or the Trustee on behalf of Certificateholders. The Purchase

Price for the purchased Mortgage Loan shall be deposited or caused to be

deposited upon receipt by the Master Servicer in the Custodial Account and, upon

receipt by the Trustee of written notification of such deposit signed by a

Servicing Officer, the Trustee shall release or cause to be released to the

Seller the related Mortgage File and shall execute and deliver such instruments

of transfer or assignment, in each case without recourse, as the Seller shall

require as necessary to vest in the Seller ownership of any Mortgage Loan

released pursuant hereto and at such time the Trustee shall have no further

responsibility with respect to the related Mortgage File.

 

         SECTION 2.03 Representations, Warranties and Covenants of the Master

Servicer and the Depositor.

 

         (a) The Master Servicer hereby represents and warrants to and covenants

with the Depositor and the Trustee for the benefit of Certificateholders that:

 

                  (i) The Master Servicer is, and throughout the term hereof

         shall remain, a duly organized, validly existing and in good standing

         under the laws of the State of (except as otherwise permitted pursuant

         to Section 6.02), the Master Servicer is, and shall remain, 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, and the Master Servicer is, and shall remain, approved

         to sell mortgage loans to and service mortgage loans for FNMA and

         FHLMC;

 

                  (ii) The execution and delivery of this Agreement by the

         Master Servicer, and the performance and compliance with the terms of

         this Agreement by the Master Servicer, will not violate the Master

         Servicer's articles of incorporation or bylaws or constitute a default

         (or an event which, with notice or lapse of time, or both, would

         constitute a default) under, or result in the breach of, any material

         agreement or other instrument to which it is a party or which is

         applicable to it or any of its assets;

 

                  (iii) The Master Servicer has the full power and authority to

         enter into and consummate all transactions contemplated by this

         Agreement, has duly authorized the execution, delivery and performance

         of this Agreement, and has duly executed and delivered this Agreement;

 

                  (iv) This Agreement, assuming due authorization, execution and

         delivery by the Depositor and the Trustee, constitutes a valid, legal

         and binding obligation of the Master Servicer, enforceable against the

         Master Servicer in accordance with the terms hereof, subject to (A)

         applicable bankruptcy, insolvency, reorganization, moratorium and other

         laws affecting the enforcement of creditors' rights generally, and (B)

         general principles of equity, regardless of whether such enforcement is

         considered in a proceeding in equity or at law;

 

                  (v) The Master Servicer is not in violation of, and its

         execution and delivery of this Agreement and its performance and

         compliance with the terms of this Agreement will not constitute a

         violation of, any law, any order or decree of any court or arbiter, or

         any order, regulation or demand of any federal, state or local

         governmental or regulatory authority, which violation is likely to

         affect materially and adversely either the ability of the Master

         Servicer to perform its obligations under this Agreement or the

         financial condition of the Master Servicer;

 

                  (vi) No litigation is pending or, to the best of the Master

         Servicer's knowledge, threatened against the Master Servicer which

         would prohibit its entering into this Agreement or performing its

         obligations under this Agreement or is likely to affect materially and

         adversely either the ability of the Master Servicer to perform its

         obligations under this Agreement or the financial condition of the

         Master Servicer;

 

                  (vii) The Master Servicer will comply in all material respects

         in the performance of this Agreement and with all reasonable rules and

         requirements of each insurer under each Insurance Instrument;

 

                  (viii) The execution of this Agreement and the performance of

         the Master Servicer's obligations hereunder do not require any license,

         consent or approval of any state or federal court, agency, regulatory

         authority or other governmental body having jurisdiction over the

         Master Servicer, other than such as have been obtained; and (ix) no

         information, certificate of an officer, statement furnished in writing

         or report delivered to the Depositor, any affiliate of the Depositor or

         the Trustee by the Master Servicer will, to the knowledge of the Master

         Servicer, contain any untrue statement of a material fact or omit a

         material fact necessary to make the information, certificate, statement

         or report not misleading; and

 

         It is understood and agreed that the representations, warranties and

covenants set forth in this Section 2.03(a) shall survive the execution and

delivery of this Agreement, and shall inure to the benefit of the Depositor, the

Trustee and the Certificateholders. Upon discovery by the Depositor, the Trustee

or the Master Servicer of a breach of any of the foregoing representations,

warranties and covenants that materially and adversely affects the interests of

the Depositor or the Trustee, the party discovering such breach shall give

prompt written notice to the other parties.

 

         (b) The Depositor hereby represents and warrants to the Master Servicer

and the Trustee for the benefit of Certificateholders that as of the Closing

Date (or, if otherwise specified below, as of the date so specified):

 

                  (i) Immediately prior to the assignment of the Mortgage Loans

         to the Trustee, the Depositor had good title to, and was the sole owner

         of, each Mortgage Loan free and clear of any pledge, lien, encumbrance

         or security interest (other than rights to servicing and related

         compensation) and such assignment validly transfers ownership of the

         Mortgage Loans to the Trustee free and clear of any pledge, lien,

         encumbrance or security interest;

 

                  (ii) No Mortgage Loan is one month or more delinquent in

         payment of principal and interest as of the Cut-off Date and no

         Mortgage Loan has been so delinquent more than once in the 12-month

         period prior to the Cut-off Date;

 

                  (iii) The information set forth in the Mortgage Loan Schedule

         with respect to each Mortgage Loan or the Mortgage Loans, as the case

         may be, is true and correct in all material respects at the date or

         dates respecting which such information is furnished;

 

                  (iv) The Mortgage Loans are fully-amortizing, fixed-rate

         mortgage loans with level Monthly Payments due on the first day of each

         month and terms to maturity at origination or modification of not more

         than 30 years;

 

                  (v) Each Mortgage Loan secured by a Mortgaged Property with a

         Loan-to-Value Ratio at origination in excess of 80% is the subject of a

         Primary Mortgage Insurance Policy that insures that portion of the

         principal balance thereof that exceeds the amount equal to 75% of the

         appraised value of the related Mortgaged Property. Each such Primary

         Mortgage Insurance Policy is in full force and effect and the Trustee

         is entitled to the benefits thereunder; and

 

                  (vi) The representations and warranties of the Seller with

         respect to the Mortgage Loans and the remedies therefor are as set

         forth in the Seller's Warranty Certificate.

 

         [Other representations and warranties as applicable.]

 

         It is understood and agreed that the representations and warranties set

forth in this Section 2.03(b) shall survive delivery of the respective Mortgage

Files to the Trustee.

 

         Upon discovery by either the Depositor, the Master Servicer or the

Trustee of a breach of any representation or warranty set forth in this Section

2.03 which materially and adversely affects the interests of the

Certificateholders in any Mortgage Loan, the party discovering such breach shall

give prompt written notice to the other parties.

 

         SECTION 2.04 Representations and Warranties of the Seller; Repurchase

and Substitution.

 

         The Depositor hereby assigns to the Trustee for the benefit of

Certificateholders its interest in respect of the representations and warranties

made by the Seller in the Seller's Warranty Certificate or the exhibits thereto.

Insofar as the Seller's Warranty Certificate relates to such representations and

warranties and any remedies provided thereunder for any breach of such

representations and warranties, such right, title and interest may be enforced

by the Trustee on behalf of the Certificateholders. Upon the discovery by the

Depositor, the Master Servicer or the Trustee of a breach of any of the

representations and warranties made in the Seller's Warranty Certificate in

respect of any Mortgage Loan which materially and adversely affects the

interests of the Certificateholders in such Mortgage Loan, the party discovering

such breach shall give prompt written notice to the other parties. The Trustee

shall promptly notify the Seller of such breach and request that such Seller

shall, within 90 days from the date that the Depositor, the Seller or the

Trustee was notified of such breach, either (i) cure such breach in all material

respects or (ii) purchase such Mortgage Loan from the Trust Fund at the Purchase

Price and in the manner set forth in Section 2.02; provided that in the case of

such breach, the Seller shall have the option to substitute a Qualified

Substitute Mortgage Loan or Loans for such Mortgage Loan if such substitution

occurs within two years following the Closing Date. Any such substitution must

occur within 90 days from the date the Seller was notified of the breach if such

90 day period expires before two years following the Closing Date. In the event

that the Seller elects to substitute a Qualified Substitute Mortgage Loan or

Loans for a Deleted Mortgage Loan pursuant to this Section 2.04, the Seller

shall deliver to the Trustee for the benefit of the Certificateholders with

respect to such Qualified Substitute Mortgage Loan or Loans, the original

Mortgage Note, the Mortgage, an Assignment of the Mortgage in recordable form,

and such other documents and agreements as are required by Section 2.01, with

the Mortgage Note endorsed as required by Section 2.01. No substitution will be

made in any calendar month after the Determination Date for such month. Monthly

Payments due with respect to Qualified Substitute Mortgage Loans in the month of

substitution shall not be part of the Trust Fund and will be retained by the

Master Servicer and remitted by the Master Servicer to the Seller on the next

succeeding Distribution Date.

 

         For the month of substitution, distributions to Certificateholders will

include the Monthly Payment due on a Deleted Mortgage Loan for such month and

thereafter the Seller shall be entitled to retain all amounts received in

respect of such Deleted Mortgage Loan. The Depositor shall amend or cause to be

amended the Mortgage Loan Schedule for the benefit of the Certificateholders to

reflect the removal of such Deleted Mortgage Loan and the substitution of the

Qualified Substitute Mortgage Loan or Loans and the Depositor shall deliver the

amended Mortgage Loan Schedule, to the Trustee. Upon such substitution, the

Qualified Substitute Mortgage Loan or Loans shall be subject to the terms of

this Agreement in all respects, the Seller shall be deemed to have made the

representations and warranties with respect to the Qualified Substitute Mortgage

Loan contained in the Seller's Warranty Certificate as of the date of

substitution, and the Depositor shall be deemed to have made with respect to any

Qualified Substitute Mortgage Loan or Loans, as of the date of substitution, the

representations and warranties set forth in Section 2.03 hereof, and the Seller

shall be obligated to repurchase or substitute for any Qualified Substitute

Mortgage Loan as to which a repurchase or substitution obligation has occurred

pursuant to Section 3 of the Seller's Warranty Certificate.

 

         In connection with the substitution of one or more Qualified Substitute

Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will

determine the amount (if any) by which the aggregate principal balance of all

such Qualified Substitute Mortgage Loans as of the date of substitution is less

than the aggregate Stated Principal Balance of all such Deleted Mortgage Loans

(in each case after application of the principal portion of the Monthly Payments

due in the month of substitution that are to be distributed to

Certificateholders in the month of substitution). The Seller shall provide the

Master Servicer on the day of substitution for immediate deposit in to the

Custodial Account the amount of such shortfall, without any reimbursement

therefor. The Seller shall give notice in writing to the Trustee of such event,

which notice shall be accompanied by an Officers' Certificate as to the

calculation of such shortfall and by an Opinion of Counsel to the effect that

such substitution will not cause (a) any federal tax to be imposed on the Trust

Fund, including without limitation, any federal tax imposed on "prohibited

transactions" under Section 86OF(a)(1) of the Code or on "contributions after

the startup date" under Section 86OG(d)(1) of the Code or (b) any portion of the

Trust Fund to fail to qualify as a REMIC at any time that any Certificate is

outstanding. The costs of any substitution as described above, including any

related assignments, opinions or other documentation in connection therewith

shall be borne by the Seller.

 

         Except as expressly set forth herein neither the Trustee nor the Master

Servicer is under any obligation to discover any breach of the above mentioned

representations and warranties. It is understood and agreed that the obligation

of the Seller to cure such breach or to so purchase or substitute for any

Mortgage Loan as to which such a breach has occurred and is continuing shall

constitute the sole remedy respecting such breach available to

Certificateholders or the Trustee on behalf of Certificateholders. In addition,

if the first scheduled Monthly Payment is due during the first month after its

closing date (as such term is used in the Seller's Warranties Certificate) and

such Monthly Payment is not received by the Master Servicer within 30 days of

the due date in accordance with the terms of the related Mortgage Note, the

Master Servicer shall promptly notify the Seller and the Trustee and the Seller

shall purchase such Mortgage Loan from the Trust Fund at the Purchase Price or

substitute a Qualified Substitute Mortgage Loan therefor within 15 days from the

date that the Seller was notified.

 

         SECTION 2.05 Issuance of Certificates Evidencing Interests in the Trust

Fund.

 

         The Trustee acknowledges the assignment to it of the Mortgage Loans and

the delivery of the Mortgage Files to it together with the assignment to it of

all other assets included in the Trust Fund, receipt of which is hereby

acknowledged. Concurrently with such delivery and in exchange therefor, the

Trustee, pursuant to the written request of the Depositor executed by an officer

of the Depositor, has executed and caused to be authenticated, and delivered to

or upon the order of the Depositor, the Certificates in authorized denominations

which evidence ownership of the entire Trust Fund.

 

         SECTION 2.06 Purposes and Powers of the Trust.

 

         The purpose of the common law trust, as created hereunder, is to engage

in the following activities: (a) acquire and hold the Mortgage Loans and the

other assets of the Trust Fund and the proceeds therefrom;

 

         (b) to issue the Certificates sold to the Depositor in exchange for the

Mortgage Loans; to make payments on the Certificates;

 

         (c) to engage in those activities that are necessary, suitable or

convenient to accomplish the foregoing or are incidental thereto or connected

therewith; and

 

         (d) subject to compliance with this Agreement, to engage in such other

activities as may be required in connection with conservation of the Trust Fund

and the making of distributions to the Certificateholders.

 

         (e) The trust is hereby authorized to engage in the foregoing

activities. The Trustee shall not cause the trust to engage in any activity

other than in connection with the foregoing or other than as required or

authorized by the terms of this Agreement while any Certificate is outstanding,

and this Section 2.06 may not be amended, without the consent of the

Certificateholders evidencing 51% or more of the aggregate Voting Rights of the

Certificates.

 

ARTICLE III

 

ADMINISTRATION AND SERVICING OF THE TRUST FUND

 

         SECTION 3.01 Master Servicer to Act as Master Servicer.

 

         The Master Servicer shall service and administer the Mortgage Loans for

the benefit of the Certificateholders, in accordance with this Agreement and the

customary and usual standards of practice of prudent institutional mortgage

lenders servicing comparable mortgage loans for their own account in the

respective states in which the Mortgaged Properties are located. Subject to the

foregoing, the Master Servicer shall have full power and authority, acting alone

and/or through Sub-Servicers as provided in Section 3.02, to do or cause to be

done any and all things in connection with such servicing and administration

that it may deem necessary or desirable. Without limiting the generality of the

foregoing, the Master Servicer in its own name or in the name of a Sub-Servicer

is hereby authorized and empowered by the Trustee when the Master Servicer

believes it appropriate in its best judgment, to (i) execute and deliver, on

behalf of the Certificateholders and the Trustee or any of them, any and all

instruments of satisfaction or cancellation, or of partial or full release or

discharge, and all other comparable instruments, with respect to the Mortgage

Loans and the Mortgaged Properties, (ii) institute foreclosure proceedings or

obtain a deed-in-lieu of foreclosure so as to convert the ownership of such

properties, and (iii) hold or cause to be held title to such properties, on

behalf of the Trustee and Certificateholders. The Master Servicer shall service

and administer the Mortgage Loans in accordance with applicable state and

federal law and shall provide to the Mortgagors any reports required to be

provided to them thereby. Subject to Section 3.16, the Trustee shall furnish to

the Master Servicer and any Sub-Servicer any powers of attorney and other

documents necessary or appropriate to enable the Master Servicer and any Sub-

Servicer to carry out their servicing and administrative duties hereunder. The

Trustee shall not be responsible for any action taken by the Master Servicer or

any Sub-Servicer pursuant to the application of such powers of attorney. In

accordance with the standards of the preceding paragraph, the Master Servicer

shall advance or cause to be advanced funds as necessary for the purpose of

effecting the payment of taxes and assessments on the Mortgaged Properties,

which advances shall be reimbursable in the first instance from related

collections from the Mortgagors pursuant to Section 3.09, and further as

provided in Section 3.11. No costs incurred by the Master Servicer or by Sub-

Servicers in effecting the payment of taxes and assessments on the Mortgaged

Properties shall, for the purpose of calculating distributions to

Certificateholders, be added to the amount owing under the related Mortgage

Loans, notwithstanding that the terms of such Mortgage Loans so permit.

 

         The Master Servicer shall not (unless the Mortgagor is in default with

respect to the Mortgage Loan or such default is, in the judgment of the Master

Servicer, reasonably foreseeable) make or permit any modification, waiver or

amendment of any term of any Mortgage Loan that would both (i) effect an

exchange or reissuance of such Mortgage Loan under Section 1001 of the Code (or

final, temporary or proposed Treasury regulations promulgated thereunder) and

(ii) cause the Trust Fund to fail to qualify as a REMIC under the Code or the

imposition of any tax on "prohibited transactions" or "contributions" after the

startup date under the REMIC Provisions.

 

         The Master Servicer may approve a request for a partial release of the

Mortgaged Property, easement, consent to alteration or demolition and other

similar matters if it has determined, exercising its good faith business

judgement in the same manner as it would if it were the owner of the related

Mortgage Loan, that such approval will not adversely affect the security for, or

the timely and full collectability of, the related Mortgage Loan. Any fee

collected by the Master Servicer for processing such request will be retained by

the Master Servicer as additional servicing compensation.

 

         The relationship of the Master Servicer (and of any successor to the

Master Servicer under this Agreement) to the Trustee under this Agreement is

intended by the parties to be that of an independent contractor and not that of

a joint venturer, partner or agent.

 

         SECTION 3.02 Sub-Servicing Agreements Between Master Servicer and

Sub-Servicers.

 

         (a) The Master Servicer may enter into Sub-Servicing Agreements with

Sub-Servicers for the servicing and administration of the Mortgage Loans and for

the performance of any and all other activities of the Master Servicer

hereunder. Each Sub-Servicer shall be either (i) an institution the accounts of

which are insured by the FDIC or (ii) another entity that engages in the

business of originating or servicing mortgage loans, and in either case shall be

authorized to transact business in the state or states in which the related

Mortgaged Properties it is to service are situated, if and to the extent

required by applicable law to enable the Sub-Servicer to perform its obligations

hereunder and under the Sub-Servicing Agreement, and in either case shall be a

FHLMC or FNMA approved mortgage servicer. Each Sub-Servicing Agreement must

impose on the Sub-Servicer requirements conforming to the provisions set forth

in Section 3.08 and provide for servicing of the Mortgage Loans consistent with

the terms of this Agreement. With the consent of the Trustee, which consent

shall not be unreasonably withheld, the Master Servicer and the Sub-Servicers

may enter into Sub-Servicing Agreements and make amendments to the Sub-Servicing

Agreements or enter into different forms of Sub-Servicing Agreements; provided,

however, that any such amendments or different forms shall be consistent with

and not violate the provisions of this Agreement.

 

         (b) As part of its servicing activities hereunder, the Master Servicer,

for the benefit of the Trustee and the Certificateholders, shall enforce the

obligations of each Sub-Servicer under the related Sub-Servicing Agreement,

including, without limitation, any obligation to make advances in respect of

delinquent payments as required by a Sub-Servicing Agreement, or to purchase a

Mortgage Loan on account of defective documentation or on account of a breach of

a representation or warranty, as described in Section 2.02. Such enforcement,

including, without limitation, the legal prosecution of claims, termination of

Sub-Servicing Agreements and the pursuit of other appropriate remedies, shall be

in such form and carried out to such an extent and at such time as the Master

Servicer, in its good faith business judgment, would require were it the owner

of the related Mortgage Loans. The Master Servicer shall pay the costs of such

enforcement at its own expense, but shall be reimbursed therefor only (i) from a

general recovery resulting from such enforcement only to the extent, if any,

that such recovery exceeds all amounts due in respect of the related Mortgage

Loans or (ii) from a specific recovery of costs, expenses or attorneys' fees

against the party against whom such enforcement is directed.

 

         SECTION 3.03 Successor Sub-Servicers.

 

         The Master Servicer shall be entitled to terminate any Sub-Servicing

Agreement and the rights and obligations of any Sub-Servicer pursuant to any

Sub-Servicing Agreement in accordance with the terms and conditions of such

Sub-Servicing Agreement. In the event of termination of any Sub-Servicer, all

servicing obligations of such Sub-Servicer shall be assumed simultaneously by

the Master Servicer without any act or deed on the part of such Sub-Servicer or

the Master Servicer, and the Master Servicer either shall service directly the

related Mortgage Loans or shall enter into a Sub-Servicing Agreement with a

successor Sub-Servicer which qualifies under Section 3.02.

 

         [Upon any termination of the rights and powers of any Sub-Servicer pursuant to any Sub-Servicing Agreement, the Master Servicer shall promptly notify the Trustee and the Rating Agencies through the Rule 17g-5 Information Provider, specifying in such notice that the Master Servicer or any successor Sub-Servicer, as the case may be, has succeeded the Sub-Servicer under the related Sub-Servicing Agreement, which notice shall also specify the name and address of any such successor Sub-Servicer.]

 

         SECTION 3.04 Liability of the Master Servicer.

 

         Notwithstanding any Sub-Servicing Agreement, any of the provisions of

this Agreement relating to agreements or arrangements between the Master

Servicer and a Sub-Servicer or reference to actions taken through a Sub-Servicer

or otherwise, the Master Servicer shall remain obligated and primarily liable to

the Trustee and Certificateholders for the servicing and administering of the

Mortgage Loans in accordance with the provisions of Section 3.01 without

diminution of such obligation or liability by virtue of such Sub-Servicing

Agreements or arrangements or by virtue of indemnification from the Sub-Servicer

and to the same extent and under the same terms and conditions as if the Master

Servicer alone were servicing and administering the Mortgage Loans. For purposes

of this Agreement, the Master Servicer shall be deemed to have received payments

on Mortgage Loans when the Sub-Servicer has received such payments. The Master

Servicer shall be entitled to enter into any agreement with a Sub-Servicer for

indemnification of the Master Servicer by such Sub-Servicer and nothing

contained in this Agreement shall be deemed to limit or modify such

indemnification.

 

         SECTION 3.05 No Contractual Relationship Between Sub-Servicers and

Trustee or Certificateholders.

 

         Any Sub-Servicing Agreement that may be entered into and any

transactions or services relating to the Mortgage Loans involving a Sub-Servicer

in its capacity as such and not as an originator shall be deemed to be between

the Sub-Servicer and the Master Servicer alone, and the Trustee and

Certificateholders shall not be deemed parties thereto and shall have no claims,

rights, obligations, duties or liabilities with respect to the Sub-Servicer

except as set forth in Section 3.06.

 

         SECTION 3.06 Assumption or Termination of Sub-Servicing Agreements by

Trustee.

 

         In the event the Master Servicer shall for any reason no longer be the

master servicer (including by reason of an Event of Default), the Trustee or its

designee shall thereupon assume all of the rights and obligations of the Master

Servicer under each Sub-Servicing Agreement that the Master Servicer may have

entered into, unless the Trustee is then permitted and elects to terminate any

Sub-Servicing Agreement in accordance with its terms. The Trustee, its designee

or the successor servicer for the Trustee shall be deemed to have assumed all of

the Master Servicer's interest therein and to have replaced the Master Servicer

as a party to each Sub-Servicing Agreement to the same extent as if the

Sub-Servicing Agreements had been assigned to the assuming party, except that

the Master Servicer shall not thereby be relieved of any liability or

obligations under the Sub-Servicing Agreements, and the Master Servicer shall

continue to be entitled to any rights or benefits which arose prior to its

termination as master servicer.

 

         The Master Servicer at its expense shall, upon request of the Trustee,

deliver to the assuming party all documents and records relating to each

Sub-Servicing Agreement and the Mortgage Loans then being serviced and an

accounting of amounts collected and held by it and otherwise use its best

efforts to effect the orderly and efficient transfer of the Sub-Servicing

Agreements to the assuming party.

 

         SECTION 3.07 Collection of Certain Mortgage Loan Payments.

 

         The Master Servicer shall make reasonable efforts to collect all

payments called for under the terms and provisions of the Mortgage Loans, and

shall, to the extent such procedures shall be consistent with this Agreement and

the terms and provisions of any related Insurance Policy, follow such collection

procedures as it would follow with respect to mortgage loans comparable to the

Mortgage Loans and held for its own account. The Master Servicer shall not be

required to institute or join in litigation with respect to collection of any

payment (whether under a Mortgage, Mortgage Note, Primary Hazard Insurance

Policy, Primary Mortgage Insurance Policy or otherwise or against any public or

governmental authority with respect to a taking or condemnation) if it

reasonably believes that it is prohibited by applicable law from enforcing the

provision of the Mortgage or other instrument pursuant to which such payment is

required. Consistent with the foregoing, the Master Servicer may in its

discretion waive any prepayment fees, late payment charge or other charge,

except as otherwise required under applicable law. The Master Servicer shall be

responsible for preparing and distributing all information statements relating

to payments on the Mortgage Loans, in accordance with all applicable federal and

state tax laws and regulations.

 

         SECTION 3.08 Sub-Servicing Accounts.

 

         In those cases where a Sub-Servicer is servicing a Mortgage Loan

pursuant to a Sub-Servicing Agreement, the Sub-Servicer will be required to

establish and maintain one or more accounts (collectively, the "Sub-Servicing

Account"). The Sub-Servicing Account shall be an Eligible Account and shall

otherwise be acceptable to the Master Servicer. All amounts held in a

Sub-Servicing Account shall be held in trust for the Trustee for the benefit of

the Certificateholders. The Sub-Servicer will be required to deposit into the

Sub-Servicing Account no later than the first Business Day after receipt all

proceeds of Mortgage Loans received by the Sub-Servicer, less its servicing

compensation and any unreimbursed expenses and advances, to the extent permitted

by the Sub-Servicing Agreement. On each Sub-Servicer Remittance Date the

Sub-Servicer will be required to remit to the Master Servicer for deposit into

the Custodial Account all funds held in the Sub-Servicing Account with respect

to any Mortgage Loan as of the Sub-Servicer Remittance Date, after deducting

from such remittance an amount equal to the servicing compensation and

unreimbursed expenses and advances to which it is then entitled pursuant to the

related Sub-Servicing Agreement, to the extent not previously paid to or

retained by it. In addition, on each Sub-Servicer Remittance Date the

Sub-Servicer will be required to remit to the Master Servicer any amounts

required to be advanced pursuant to the related Sub-Servicing Agreement. The

Sub-Servicer will also be required to remit to the Master Servicer, within one

Business Day of receipt, the proceeds of any Principal Prepayment made by the

Mortgagor and any Insurance Proceeds or Liquidation Proceeds.

 

         SECTION 3.09 Collection of Taxes, Assessments and Similar Items;

Servicing Accounts.

 

         The Master Servicer and the Sub-Servicers shall establish and maintain

one or more accounts (the "Servicing Accounts"), and shall deposit and retain

therein all collections from the Mortgagors (or related advances from

Sub-Servicers) for the payment of taxes, assessments, Primary Hazard Insurance

Policy premiums, and comparable items for the account of the Mortgagors, to the

extent that the Master Servicer customarily escrows for such amounts.

Withdrawals of amounts so collected from a Servicing Account may be made only to

(i) effect payment of taxes, assessments, Primary Hazard Insurance Policy

premiums and comparable items; (ii) reimburse the Master Servicer (or a

Sub-Servicer to the extent provided in the related Sub-Servicing Agreement) out

of related collections for any payments made pursuant to Sections 3.01 (with

respect to taxes and assessments) and 3.13 (with respect to Primary Hazard

Insurance Policies); (iii) refund to Mortgagors any sums as may be determined to

be overages; or (iv) clear and terminate the Servicing Account at the

termination of this Agreement pursuant to Section 9.01. As part of its servicing

duties, the Master Servicer or Sub-Servicers shall, if and to the extent

required by law, pay to the Mortgagors interest on funds in Servicing Accounts

from its or their own funds, without any reimbursement therefor.

 

         SECTION 3.10 Custodial Account.

 

         (a) The Master Servicer shall establish and maintain one or more

accounts (collectively, the "Custodial Account") in which the Master Servicer

shall deposit or cause to be deposited no later than the first Business Day

after receipt or as and when received from the Sub-Servicers, the following

payments and collections received or made by or on behalf of it subsequent to

the Cut-off Date, or received by it prior to the Cut-off Date but allocable to a

period subsequent thereto (other than in respect of principal and interest on

the Mortgage Loans due on or before the Cut-off Date):

 

                  (i) all payments on account of principal, including Principal

         Prepayments, on the Mortgage Loans;

 

                  (ii) all payments on account of interest on the Mortgage

         Loans, not including any portion thereof representing interest on

         account of the related Servicing Fee Rate;

 

                  (iii) all Insurance Proceeds, other than proceeds that

         represent reimbursement of costs and expenses incurred by the Master

         Servicer in connection with presenting claims under the related

         Insurance Policies, Liquidation Proceeds and REO Proceeds; (iv) all

         proceeds of any Mortgage Loan or REO Property repurchased or purchased

         in accordance with Sections 2.02, 2.04 or 9.01 and all amounts required

         to be deposited in connection with the substitution of a Qualified

         Substitute Mortgage Loan pursuant to Section 2.04;

 

                  (v) any amounts required to be deposited in the Custodial

         Account pursuant to Section 3.12, 3.13 or 3.22; and

 

                  (vi) all amounts transferred from the Certificate Account to

         the Custodial Account in accordance with Sections 4.01(b).

 

         For purposes of the immediately preceding sentence, the Cut-off Date

with respect to any Qualified Substitute Mortgage Loan shall be deemed to be the

date of substitution.

 

The foregoing requirements for deposit in the Custodial Account shall be

exclusive. In the event the Master Servicer shall deposit in the Custodial

Account any amount not required to be deposited therein, it may withdraw such

amount from the Custodial Account, any provision herein to the contrary

notwithstanding. The Custodial Account shall be maintained as a segregated

account, separate and apart from trust funds created for mortgage pass-through

certificates of other series, and the other accounts of the Master Servicer.

 

         (b) Funds in the Custodial Account may be invested in Permitted

Instruments in accordance with the provisions set forth in Section 3.12. The

Master Servicer shall give notice to the Trustee and the Depositor of the

location of the Custodial Account after any change thereof.

 

         (c) Payments in the nature of late payment charges, prepayment fees,

assumption fees and reconveyance fees received on the Mortgage Loans shall not

be deposited in the Custodial Account, but rather shall be received and held by

the Master Servicer as additional servicing compensation.

 

         SECTION 3.11 Permitted Withdrawals From the Custodial Account.

 

         The Master Servicer may, from time to time as provided herein, make

withdrawals from the Custodial Account of amounts on deposit therein pursuant to

Section 3.10 that are attributable to the Mortgage Loans for the following

purposes:

 

                  (i) to make deposits into the Certificate Account in the

         amounts and in the manner provided for in Section 4.01, such deposit to

         include interest collections on the Mortgage Loans at the Net Mortgage

         Rate [and net of amounts reimbursed therefrom];

 

                  (ii) to pay to itself, the Depositor, the Seller or any other

         appropriate person, as the case may be, with respect to each Mortgage

         Loan that has previously been purchased, repurchased or replaced

         pursuant to Sections 2.02, 2.04 or 9.01 all amounts received thereon

         and not yet distributed as of the date of purchase, repurchase or

         substitution;

 

                  (iii) to reimburse itself or any Sub-Servicer for Advances not

         previously reimbursed, the Master Servicer's or any Sub-Servicer's

         right to reimbursement pursuant to this clause (iii) being limited to

         amounts received which represent Late Collections (net of the related

         Servicing Fees) of Monthly Payments on Mortgage Loans with respect to

         which such Advances were made and as further provided in Section 3.15;

 

                  (iv) to reimburse or pay itself, the Trustee or the Depositor

         for expenses incurred by or reimbursable to the Master Servicer, the

         Trustee or the Depositor pursuant to Sections 3.22, 6.03, 8.05,

         10.01(c) or 10.01(g), except as otherwise provided in such Sections;

 

                  (v) to reimburse itself or any Sub-Servicer for costs and

         expenses incurred by or reimbursable to it relating to the prosecution

         of any claims pursuant to Section 3.13 that are in excess of the

         amounts so recovered;

 

                  (vi) to reimburse itself or any Sub-Servicer for unpaid

         Servicing Fees and unreimbursed Servicing Advances, the Master

         Servicer's or any Sub-Servicer's right to reimbursement pursuant to

         this clause (vi) with respect to any Mortgage Loan being limited to

         late recoveries of the payments for which such advances were made

         pursuant to Section 3.01 or Section 3.09 and any other related Late

         Collections;

 

                  (vii) to pay itself as servicing compensation (in addition to

         the Servicing Fee), on or after each Distribution Date, any interest or

         investment income earned on funds deposited in the Custodial Account

         for the period ending on such Distribution Date, subject to Section

         8.05;

 

                  (viii) to reimburse itself or any Sub-Servicer for any Advance

         previously made which itself has determined to be a Nonrecoverable

         Advance, provided that either (a) such Advance was made with respect to

         a delinquency that ultimately constituted an Excess Special Hazard

         Loss, Excess Fraud Loss, Excess Bankruptcy Loss or Extraordinary Loss,

         or (b) the Certificate Principal Balances of the Class B Certificates

         have been reduced to zero; and

 

                  (ix) to clear and terminate the Custodial Account at the

         termination of this Agreement pursuant to Section 9.01.

 

         The Master Servicer shall keep and maintain separate accounting records

on a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any

withdrawal from the Custodial Account pursuant to such clauses (ii), (iii),

(iv), (v), (vi), (vii) and (viii). Reconciliations will be prepared by the

Master Servicer for the related Collection Account within 30 calendar days after

the bank statement cut-off date. All items requiring reconciliation will be

resolved within 90 calendar days of their original identification.

 

         In connection with clause (viii) above, the Trustee shall notify the

Master Servicer if and when the Certificate Principal Balances of the Class B

Certificates have been reduced to zero.

 

         SECTION 3.12 Permitted Instruments.

 

         Any institution maintaining the Custodial Account shall at the

direction of the Master Servicer invest the funds in such account in Permitted

Instruments, each of which shall mature not later than the Business Day

immediately preceding the Distribution Date next following the date of such

investment (except that if such Permitted Instrument is an obligation of the

institution that maintains such account, then such Permitted Instrument shall

mature not later than such Distribution Date) and shall not be sold or disposed

of prior to its maturity. All income and gain realized from any such investment

as well as any interest earned on deposits in the Custodial Account shall be for

the benefit of the Master Servicer. The Master Servicer shall deposit in the

Custodial Account (with respect to investments made hereunder of funds held

therein) an amount equal to the amount of any loss incurred in respect of any

such investment immediately upon realization of such loss without right of

reimbursement.

 

         SECTION 3.13 Maintenance of Primary Mortgage Insurance and Primary

Hazard Insurance.

 

         (a) The Master Servicer shall not take, or permit any Sub-Servicer to

take, any action which would result in non-coverage under any applicable Primary

Mortgage Insurance Policy of any loss which, but for the actions of the Master

Servicer or Sub-Servicer, would have been covered thereunder. To the extent

coverage is available, the Master Servicer shall keep or cause to be kept in

full force and effect each such Primary Mortgage Insurance Policy until the

principal balance of the related Mortgage Loan secured by a Mortgaged Property

is reduced to 75% or less of the Collateral Value in the case of such a Mortgage

Loan having a Loan-to-Value Ratio at origination in excess of 80%. The Master

Servicer shall not cancel or refuse to renew any such Primary Mortgage Insurance

Policy, or consent to any Sub-Servicer canceling or refusing to renew any such

Primary Mortgage Insurance Policy applicable to a Mortgage Loan subserviced by

it, that is in effect at the date of the initial issuance of the Certificates

and is required to be kept in force hereunder unless the replacement Primary

Mortgage Insurance Policy for such canceled or non-renewed policy is maintained

with a Qualified Insurer.

 

         (b) In connection with its activities as administrator and servicer of

the Mortgage Loans, the Master Servicer agrees to present or to cause the

related Sub-Servicer to present, on behalf of the Master Servicer, the

Sub-Servicer, if any, the Trustee and Certificateholders, claims to the insurer

under any Primary Mortgage Insurance Policies, in a timely manner in accordance

with such policies, and, in this regard, to take or cause to be taken such

reasonable action as shall be necessary to permit recovery under any Primary

Mortgage Insurance Policies respecting defaulted Mortgage Loans. Pursuant to

Section 3. 10, any Insurance Proceeds collected by or remitted to the Master

Servicer under any Primary Mortgage Insurance Policies shall be deposited in the

Custodial Account, subject to withdrawal pursuant to Section 3.11.

 

         (c) The Master Servicer shall cause to be maintained for each Mortgage

Loan primary hazard insurance with extended coverage on the related Mortgaged

Property in an amount equal to the lesser of 100% of the replacement value of

the improvements, as determined by the insurance company, on such Mortgaged

Property or the unpaid principal balance of the Mortgage Loan. The Master

Servicer shall also cause to be maintained on property acquired upon

foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan, fire

insurance with extended coverage in an amount equal to the replacement value of

the improvements thereon. Pursuant to Section 3.10, any amounts collected by the

Master Servicer under any such policies (other than amounts to be applied to the

restoration or repair of the related Mortgaged Property or property thus

acquired or amounts released to the Mortgagor in accordance with the Master

Servicer's normal servicing procedures) shall be deposited in the Custodial

Account, subject to withdrawal pursuant to Section 3.11. Any cost incurred by

the Master Servicer in maintaining any such insurance shall not, for the purpose

of calculating monthly distributions to Certificateholders, be added to the

amount owing under the Mortgage Loan, notwithstanding that the terms of the

Mortgage Loan so permit. It is understood and agreed that no earthquake or other

additional insurance is to be required of any Mortgagor or maintained on

property acquired in respect of a Mortgage Loan other than pursuant to such

applicable laws and regulations as shall at any time be in force and as shall

require such additional insurance. When the improvements securing a Mortgage

Loan are located at the time of origination of such Mortgage Loan in a federally

designated special flood hazard area, the Master Servicer shall cause flood

insurance (to the extent available) to be maintained in respect thereof. Such

flood insurance shall be in an amount equal to the lesser of (i) the replacement

value of the improvements, which are part of such Mortgaged Property on a

replacement cost basis and (ii) the maximum amount of such insurance available

for the related Mortgaged Property under the national flood insurance program

(assuming that the area in which such Mortgaged Property is located is

participating in such program).

 

         In the event that the Master Servicer shall obtain and maintain a

blanket fire insurance policy with extended coverage insuring against hazard

losses on all of the Mortgage Loans, it shall conclusively be deemed to have

satisfied its obligations as set forth in the first two sentences of this

Section 3.13, it being understood and agreed that such policy may contain a

deductible clause, in which case the Master Servicer shall, in the event that

there shall not have been maintained on the related Mortgaged Property a policy

complying with the first two sentences of this Section 3.13 and there shall have

been a loss which would have been covered by such policy, deposit in the

Certificate Account the amount not otherwise payable under the blanket policy

because of such deductible clause. Any such deposit by the Master Servicer shall

be made on the Certificate Account Deposit Date next preceding the Distribution

Date which occurs in the month following the month in which payments under any

such policy would have been deposited in the Custodial Account. In connection

with its activities as administrator and servicer of the Mortgage Loans, the

Master Servicer agrees to present, on behalf of itself, the Trustee and

Certificateholders, claims under any such blanket policy.

 

         SECTION 3.14 Enforcement of Due-on-Sale Clauses; Assumption Agreements.

 

         The Master Servicer will, to the extent it has knowledge of any

conveyance or prospective conveyance by any Mortgagor of the Mortgaged Property

(whether by absolute conveyance or by contract of sale, and whether or not the

Mortgagor remains or is to remain liable under the Mortgage Note or the

Mortgage), exercise or cause to be exercised its rights to accelerate the

maturity of such Mortgage Loan under any "due-on-sale" clause applicable

thereto; provided, however, that the Master Servicer shall not exercise any such

rights if it reasonably believes that it is prohibited by law from doing so or

if such enforcement will adversely affect or jeopardize required coverage under

the Insurance Instruments. If the Master Servicer is unable to enforce such

"due- on-sale" clause (as provided in the previous sentence) or if no

"due-on-sale" clause is applicable, the Master Servicer or the Sub-Servicer will

enter into an assumption and modification agreement with the Person to whom such

property has been conveyed or is proposed to be conveyed, pursuant to which such

Person becomes liable under the Mortgage Note and, to the extent permitted by

applicable state law, the Mortgagor remains liable thereon; provided, however,

that the Master Servicer shall not enter into any assumption and modification

agreement if the coverage provided under the Primary Insurance Policy, if any,

would be impaired by doing so. The Master Servicer is also authorized to enter

into a substitution of liability agreement with such Person, pursuant to which

the original Mortgagor is released from liability and such Person is substituted

as the Mortgagor and becomes liable under the Mortgage Note, if the Master

Servicer shall have determined in good faith that such substitution will not

adversely affect the collectability of the Mortgage Loan. Any fee collected by

or on behalf of the Master Servicer for entering into an assumption or

substitution of liability agreement will be retained by or on behalf of the

Master Servicer as additional servicing compensation. In connection with any

such assumption, no material term of the Mortgage Note (including but not

limited to the Mortgage Rate, the amount of the Monthly Payment and any other

term affecting the amount or timing of payment on the Mortgage Loan) may be

changed. The Master Servicer shall not enter into any substitution or assumption

if such substitution or assumption would constitute a "significant modification"

effecting an exchange or reissuance of such Mortgage Loan under the Code (or

final, temporary or proposed Treasury regulations promulgated thereunder) and

cause the Trust Fund to fail to qualify as a REMIC under the Code or the

imposition of any tax on "prohibited transactions" or "contributions" after the

Startup Day under the REMIC Provisions. The Master Servicer shall notify the

Trustee that any such substitution or assumption agreement has been completed by

forwarding to the Trustee the original copy of such substitution or assumption

agreement, which copy shall be added to the related Mortgage File and shall, for

all purposes, be considered a part of such Mortgage File to the same extent as

all other documents and instruments constituting a part thereof.

 

         Notwithstanding the foregoing paragraph or any other provision of this

Agreement, the Master Servicer shall not be deemed to be in default, breach or

any other violation of its obligations hereunder by reason of any assumption of

a Mortgage Loan by operation of law or any assumption that the Master Servicer

may be restricted by law from preventing, for any reason whatsoever. For

purposes of this Section 3.14, the term "assumption" is deemed to also include a

sale of a Mortgaged Property that is not accompanied by an assumption or

substitution of liability agreement.

 

         SECTION 3.15 Realization Upon Defaulted Mortgage Loans.

 

         The Master Servicer shall exercise reasonable efforts, consistent with

the procedures that the Master Servicer would use in servicing loans for its own

account, to foreclose upon or otherwise comparably convert (which may include an

REO Acquisition) the ownership of properties securing such of the Mortgage Loans

as come into and continue in default and as to which no satisfactory

arrangements can be made for collection of delinquent payments pursuant to

Section 3.07, and which are not released from the Trust Fund pursuant to any

other provision hereof. The Master Servicer shall use reasonable efforts to

realize upon such defaulted Mortgage Loans in such manner as will maximize the

receipt of principal and interest by Certificateholders, taking into account,

among other things, the timing of foreclosure proceedings. The foregoing is

subject to the provisions that, in any case in which Mortgaged Property shall

have suffered damage from an Uninsured Cause, the Master Servicer shall not be

required to expend its own funds toward the restoration of such property unless

it shall determine in (i) that such restoration will increase the net proceeds

of liquidation of the related Mortgage Loan to Certificateholders after

reimbursement to itself for such expenses, and (ii) that such expenses will be

recoverable by the Master Servicer through Insurance Proceeds or Liquidation

Proceeds from the related Mortgaged Property, as contemplated in Section 3.11.

The Master Servicer shall be responsible for all other costs and expenses

incurred by it in any such proceedings; provided, however, that it shall be

entitled to reimbursement thereof from the related Mortgaged Property, as

contemplated in Section 3.11.

 

         The proceeds of any Cash Liquidation or REO Disposition, as well as any

recovery resulting from a partial collection of Insurance Proceeds or

Liquidation Proceeds or any income from an REO Property, will be applied in the

following order of priority: first, to reimburse the Master Servicer or any

Sub-Servicer for any related unreimbursed Servicing Advances, pursuant to

Section 3.11 (vi) or 3.22; second, to accrued and unpaid interest on the

Mortgage Loan or REO Imputed Interest, at the Mortgage Rate, to the date of the

Cash Liquidation or REO Disposition, or to the Due Date prior to the

Distribution Date on which such amounts are to be distributed if not in

connection with a Cash Liquidation or REO Disposition; and third, as a recovery

of principal of the Mortgage Loan. If the amount of the recovery so allocated to

interest is less than a full recovery thereof, that amount will be allocated as

follows: first, on a pro rata basis, to unpaid Servicing Fees; and second, to

interest at the related Net Mortgage Rate. The portion of the recovery so

allocated to unpaid Servicing Fees shall be reimbursed to the Master Servicer or

any Sub-Servicer pursuant to Section 3.11(vi). The portions of the recovery so

allocated to interest at the related Net Mortgage Rate and to principal of the

Mortgage Loan shall be applied as follows: first, to reimburse the Trustee for

any unpaid Trustee's Fees, second, to reimburse the Master Servicer or any

Sub-Servicer for any related unreimbursed Advances in accordance with Section 3.

1 31 (iii) or 3.22, and third, for distribution in accordance with the

provisions of Section 4.01(b) and 4.01(c).

 

         SECTION 3.16 Trustee to Cooperate; Release of Mortgage Files.

 

         Upon the payment in full of any Mortgage Loan, or the receipt by the

Master Servicer of a notification that payment in full shall be escrowed in a

manner customary for such purposes, the Master Servicer will immediately notify

the Trustee by a certification (which certification shall include a statement to

the effect that all amounts received or to be received in connection with such

payment which are required to be deposited in the Custodial Account pursuant to

Section 3.10 have been or will be so deposited) of a Servicing Officer and shall

request delivery to it of the Mortgage File in the form of the Request for

Release attached hereto as Exhibit F-2. Upon receipt of such certification and

request, the Trustee shall promptly release the related Mortgage File to the

Master Servicer. Subject to the receipt by the Master Servicer of the proceeds

of such payment in full and the payment of all related fees and expenses, the

Master Servicer shall arrange for the release to the Mortgagor of the original

cancelled Mortgage Note. The Master Servicer shall provide for preparation of

the appropriate instrument of satisfaction covering any Mortgage Loan which pays

in full and the Trustee shall cooperate in the execution and return of such

instrument to provide for its delivery or recording as may be required. All

other documents in the Mortgage File shall be retained by the Master Servicer to

the extent required by applicable law. No expenses incurred in connection with

any instrument of satisfaction or deed of reconveyance shall be chargeable to

the Custodial Account or the Certificate Account.

 

         From time to time and as appropriate for the servicing or foreclosure

of any Mortgage Loan, including, for this purpose, collection under the

Insurance Instruments or any other insurance policy relating to the Mortgage

Loan, the Trustee shall, upon request of the Master Servicer and delivery to the

Trustee of a Request for Release in the form attached hereto as Exhibit F-1,

release the related Mortgage File to the Master Servicer, and the Trustee shall

execute such documents as the Master Servicer shall prepare and request as being

necessary to the prosecution of any such proceedings. Such Request for Release

shall obligate the Master Servicer to return each document previously requested

from the Mortgage File to the Trustee when the need therefor by the Master

Servicer no longer exists, unless the Mortgage Loan has been liquidated and the

Liquidation Proceeds relating to the Mortgage Loan have been deposited in the

Custodial Account or the Mortgage File or such document has been delivered to an

attorney, or to a public trustee or other public official as required by law,

for purposes of initiating or pursuing legal action or other proceedings for the

foreclosure of the Mortgaged Property either judicially or non-judicially, and

the Master Servicer has delivered to the Trustee a certificate of a Servicing

Officer certifying as to the name and address of the Person to which such

Mortgage File or such document was delivered and the purpose or purposes of such

delivery. Upon receipt of a certificate of a Servicing Officer stating that such

Mortgage Loan was liquidated and that all amounts received or to be received in

connection with such liquidation which are required to be deposited into the

Custodial Account have been or will be so deposited, or that such Mortgage Loan

has become an REO Property, the servicing receipt shall be released by the

Trustee to the Master Servicer.

 

         Upon written request of a Servicing Officer, the Trustee shall execute

and deliver to the Master Servicer any court pleadings, requests for trustee's

sale or other documents prepared by the Master Servicer that are necessary to

the foreclosure or trustee's sale in respect of a Mortgaged Property or to any

legal action brought to obtain judgment against any Mortgagor on the Mortgage

Note or Mortgage or to obtain a deficiency judgment, or to enforce any other

remedies or rights provided by the Mortgage Note or Mortgage or otherwise

available at law or in equity. Each such request that such pleadings or

documents be executed by the Trustee shall include a certification as to the

reason such documents or pleadings are required and that the execution and

delivery thereof by the Trustee will not invalidate or otherwise affect the lien

of the Mortgage, except for the termination of such a lien upon completion of

the foreclosure or trustee's sale.

 

         SECTION 3.17 Servicing Compensation.

 

         As compensation for its activities hereunder, the Master Servicer shall

be entitled to retain, from deposits to the Custodial Account of amounts

representing payments or recoveries of interest, the Servicing Fees with respect

to each Mortgage Loan (less any portion of such amounts retained by any

Sub-Servicer). In addition, the Master Servicer shall be entitled to recover

unpaid Servicing Fees out of related Late Collections to the extent permitted in

Section 3.11.

 

         The Master Servicer also shall be entitled pursuant to Section 3.11 to

receive from the Custodial Account, as additional servicing compensation

interest or other income earned on deposits therein, as well as any prepayment

fees, assumption fees, late payment fees and reconveyance fees. The Master

Servicer shall be required to pay all expenses incurred by it in connection with

its servicing activities hereunder (including payment of the premiums for any

Primary Mortgage Insurance Policy or blanket policy insuring against hazard

losses pursuant to Section 3.13, payment of the servicing compensation of the

Sub-Servicer to the extent not retained by it), and shall not be entitled to

reimbursement therefor except as specifically pro vided in Section 3.11. The

Servicing Fee may not be transferred in whole or in part except in connection

with the transfer of all of the Master Servicer's responsibilities and

obligations under this Agreement.

 

         SECTION 3.18 Maintenance of Certain Servicing Policies.

 

         During the term of its service as Master Servicer, the Master Servicer

shall maintain in force (i) a policy or policies of insurance covering errors

and omissions in the performance of its obligations as servicer hereunder and

(ii) a fidelity bond in respect of its officers, employees or agents. Each such

policy or policies and bond shall, together, comply with the requirements from

time to time of FNMA or FHLMC for persons performing servicing for mortgage

loans purchased by such corporation. The Master Servicer shall prepare and

present, on behalf of itself, the Trustee and Certificateholders, claims under

any such errors and omissions policy or policies or fidelity bond in a timely

fashion in accordance with the terms of such policy or bond, and upon the filing

of any claim on any policy or bond described in this Section, the Master

Servicer shall promptly notify the Trustee of any such claims and the Trustee

shall notify the Rating Agency of such claim.

 

         SECTION 3.19 Annual Statement as to Compliance.

 

         Not later than February 28 of each calendar year beginning in 2007, the

Master Servicer shall deliver to the Depositor and the Trustee an Officer's

Certificate (an "Annual Statement of Compliance") stating, as to the signer

thereof, that (i) a review of the activities of such Servicer during the

preceding calendar year and of the performance of the Master Servicer under this

Agreement or other applicable servicing agreement has been made under such

officer's supervision, and (ii) to the best of such officer's knowledge, based

on such review, the Master Servicer has fulfilled all its obligations under this

Agreement or other applicable servicing agreement in all material respects

throughout such year, 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 of cure provisions thereof. Such Annual

Statement of Compliance shall contain no restrictions or limitations on its use.

In the event that the Master Servicer has delegated any servicing

responsibilities with respect to the Mortgage Loans serviced by it to a

Subservicer, the Master Servicer shall deliver an officer's certificate of the

Subservicer as described above as to each Subservicer as and when required with

respect to the Master Servicer.

 

         If the Master Servicer cannot deliver the related Annual Statement of

Compliance by February 28th of such year, the Trustee, at its sole option, may

permit a cure period for the Master Servicer to deliver such Annual Statement of

Compliance, but in no event later than March 10th of such year.

 

         Failure of the Master Servicer to timely comply with this Section 3.19

shall be deemed an Event of Default, automatically, without notice and without

any cure period, and the Trustee may, in addition to whatever rights the Trustee

may have under this Agreement and at law or equity or to damages, including

injunctive relief and specific performance, terminate all the rights and

obligations of the Master Servicer under this Agreement and in and to the

Mortgage Loans serviced by it and the proceeds thereof without compensating the

Master Servicer for the same. This paragraph shall supercede any other provision

in this Agreement or any other agreement to the contrary.

 

         SECTION 3.20 Assessments of Compliance and Attestation Reports.

 

         On and after January 1, 2006, the Master Servicer shall service and

administer the related Mortgage Loans in accordance with all applicable

requirements of the Servicing Criteria. The Master Servicer shall deliver to the

Trustee and the Depositor on or before February 28 of each calendar year

beginning in 2007, a report (an "Assessment of Compliance") reasonably

satisfactory to the Trustee regarding the Master Servicer's assessment of

compliance with the Servicing Criteria during the preceding calendar year as

required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of

Regulation AB, which as of the date hereof, require a report by an authorized

officer of the related Servicer that contains the following:

 

         (a) A statement by such officer of its responsibility for assessing

compliance with the Servicing Criteria applicable to the Master Servicer;

 

         (b) A statement by such officer that such officer used the Servicing

Criteria to assess compliance with the Servicing Criteria applicable to the

Master Servicer;

 

         (c) An assessment by such officer of the Master Servicer's compliance

with the applicable Servicing Criteria for the period consisting of the

preceding calendar year, including disclosure of any material instance of

noncompliance with respect thereto during such period, which assessment shall be

based on the activities it performs with respect to asset-backed securities

transactions taken as a whole involving the Master Servicer, that are backed by

the same asset type as the Mortgage Loans;

 

         (d) A statement that a registered public accounting firm has issued an

attestation report on the Master Servicer's Assessment of Compliance for the

period consisting of the preceding calendar year; and

 

         (e) A statement as to which of the Servicing Criteria, if any, are not

applicable to the Master Servicer, which statement shall be based on the

activities it performs with respect to asset-backed securities transactions

taken as a whole involving the Master Servicer, that are backed by the same

asset type as the Mortgage Loans.

 

         Such report at a minimum shall address each of the Servicing Criteria

specified on a certification substantially in the form of Exhibit CC hereto

delivered to the Trustee and the Depositor concurrently with the execution of

this Agreement.

 

         On or before February 28 of each calendar year beginning in 2007, the

Master Servicer shall furnish to the Trustee and the Depositor a report (an

"Attestation Report") by a registered public accounting firm that attests to,

and reports on, the Assessment of Compliance made by the Master Servicer, as

required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of

Regulation AB, which Attestation Report must be made in accordance with

standards for attestation reports issued or adopted by the Public Company

Accounting Oversight Board.

 

         The Master Servicer shall cause any subservicer, and each subcontractor

determined by the Master Servicer to be "participating in the servicing

function" within the meaning of Item 1122 of Regulation AB, to deliver to the

Trustee and the Depositor an assessment of compliance and accountants'

attestation.

 

         If the Master Servicer cannot deliver the related Assessment of

Compliance or Attestation Report by February 28th of such year, the Trustee, at

its sole option, may permit a cure period for the Master Servicer to deliver

such Assessment of Compliance or Attestation Report, but in no event later than

March 10th of such year.

 

         The Trustee shall also provide an Assessment of Compliance and

Attestation Report, as and when provided above, which shall at a minimum address

each of the Servicing Criteria specified on Exhibit N hereto which are indicated

as applicable to the "trustee" or "securities administrator." In addition, the

Trustee shall cause the Custodian to deliver to the Trustee and the Depositor an

Assessment of Compliance and Attestation Report, as and when provided above,

which shall at a minimum address each of the Servicing Criteria specified on

Exhibit N hereto which are indicated as applicable to a "custodian."

Notwithstanding the foregoing, as to any Custodian, an Assessment of Compliance

is not required to be delivered unless it is required as part of a Form 10-K

with respect to the Trust Fund.

 

         Failure of the Master Servicer to timely comply with this Section 3.20

shall be deemed an Event of Default, automatically, without notice and without

any cure period, and the Trustee may, in addition to whatever rights the Trustee

may have under this Agreement and at law or equity or to damages, including

injunctive relief and specific performance, terminate all the rights and

obligations of the Master Servicer under this Agreement and in and to the

Mortgage Loans serviced by it and the proceeds thereof without compensating the

Master Servicer for the same. This paragraph shall supercede any other provision

in this Agreement or any other agreement to the contrary.

 

         SECTION 3.21 Access to Certain Documentation. (a) The Master Servicer

shall provide to the OTS, the FDIC and other federal banking regulatory

agencies, and their respective examiners, access to the documentation regarding

the Mortgage Loans required by applicable regulations of the OTS, the FDIC and

such other agencies. Such access shall be afforded without charge, but only upon

reasonable and prior written request and during normal business hours at the

offices of the Master Servicer designated by it. Nothing in this Section shall

derogate from the obligation of the Master Servicer to observe any applicable

law prohibiting disclosure of information regarding the Mortgagors and the

failure of the Master Servicer to provide access as provided in this Section as

a result of such obligation shall not constitute a breach of this section.

 

         (b) The Master Servicer shall afford the Depositor and the Trustee,

upon reasonable notice, during normal business hours access to all records

maintained by the Master Servicer in respect of its rights and obligations

hereunder and access to officers of the Master Servicer responsible for such

obligations. Upon request, the Master Servicer shall furnish the Depositor and

the Trustee with its most recent financial statements and such other information

as the Master Servicer possesses regarding its business, affairs, property and

condition, financial or otherwise to the extent related to the servicing of the

Mortgage Loans. Payments on the Mortgage Loans, including any Payoffs, made in

accordance with the related Mortgage File will be entered into the Master

Servicer's set of records no more than two Business Days after receipt, and

allocated to principal or interest as specified in the related Mortgage File.

The Depositor may, but is not obligated to, enforce the obligations of the

Master Servicer hereunder and may, but is not obligated to, perform, or cause a

designee to perform, any defaulted obligation of the Master Servicer hereunder

or exercise the rights of the Master Servicer hereunder; provided that the

Master Servicer shall not be relieved of any of its obligations hereunder by

virtue of such performance by the Depositor or its designee. The Depositor shall

not have any responsibility or liability for any action or failure to act by the

Master Servicer and is not obligated to supervise the performance of the Master

Servicer under this Agreement or otherwise.

 

         SECTION 3.22 Title, Conservation and Disposition of REO Property.

 

         This Section shall apply only to REO Properties acquired for the

account of the Trust Fund, and shall not apply to any REO Property relating to a

Mortgage Loan which was purchased or repurchased from the Trust Fund pursuant to

any provision hereof. In the event that title to any such REO Property is

acquired, the deed or certificate of sale shall be issued to the Trustee, or to

its nominee, on behalf of the Certificateholders. The Master Servicer, on behalf

of the Trust Fund, shall either sell any REO Property within two years after the

Trust Fund acquires ownership of such REO Property for purposes of Section

86OG(a)(8) of the Code or, at the expense of the Trust Fund, request an

extension of the two-year grace period, more than 60 days before the day on

which the two-year grace period would otherwise expire, unless the Master

Servicer has delivered to the Trustee an Opinion of Counsel, addressed to the

Trustee and the Master Servicer, to the effect that the holding by the Trust

Fund of such REO Property subsequent to two years after its acquisition will not

result in the imposition on the Trust Fund of taxes on "prohibited transactions"

thereof, as defined in Section 86OF of the Code, or cause the Trust Fund to fail

to qualify as a REMIC under federal law at any time that any Certificates are

outstanding. The Master Servicer shall manage, conserve, protect and operate

each REO Property for the Certificateholders solely for the purpose of its

prompt disposition and sale in a manner which does not cause such REO Property

to fail to qualify as "foreclosure property" within the meaning of Section

86OG(a)(8) or result in the receipt by the Trust Fund of any "income from

non-permitted assets" within the meaning of Section 86OF(a)(2)(B) of the Code or

any "net income from foreclosure property" which is subject to taxation under

the REMIC Provisions. Pursuant to its efforts to sell such REO Property, the

Master Servicer shall either itself or through an agent selected by the Master

Servicer protect and conserve such REO Property in the same manner and to such

extent as is customary in the locality where such REO Property is located and

may, incident to its conservation and protection of the interests of the

Certificateholders, rent the same, or any part thereof, as the Master Servicer

deems to be in the best interest of the Certificateholders for the period prior

to the sale of such REO Property.

 

         The Master Servicer shall segregate and hold all funds collected and

received in connection with the operation of any REO Property separate and apart

from its own funds and general assets. The Master Servicer shall deposit, or

cause to be deposited, on a daily basis in the Custodial Account all revenues

received with respect to the REO Properties, net of any directly related

expenses incurred or withdraw therefrom funds necessary for the proper

operation, management and maintenance of the REO Property.

 

         If as of the date of acquisition of title to any REO Property there

remain outstanding unreimbursed Servicing Advances with respect to such REO

Property or any outstanding Advances allocated thereto the Master Servicer, upon

an REO Disposition, shall be entitled to reimbursement for any related

unreimbursed Servicing Advances and any unreimbursed related Advances as well as

any unpaid Servicing Fees from proceeds received in connection with the REO

Disposition, as further provided in Section 3.15.

 

         Subject to the first paragraph of this Section 3.22, the REO

Disposition shall be carried out by the Master Servicer at such price and upon

such terms and conditions as the Master Servicer shall determine to be in the

best economic interest of the Trust Fund.

 

         Any REO Disposition shall be for cash only (unless changes in the REMIC

Provisions made subsequent to the Startup Day allow a sale for other

consideration).

 

         The Master Servicer shall deposit the proceeds from the REO

Disposition, net of any payment to the Master Servicer as provided above, in the

Custodial Account upon receipt thereof for distribution in accordance with

Section 4.01, including any such net proceeds which are in excess of the

applicable Stated Principal Balance plus all unpaid REO Imputed Interest thereon

through the date of the REO Disposition.

 

         Notwithstanding the foregoing provisions of this Section 3.22, with

respect to any Mortgage Loan as to which the Master Servicer has received notice

of, or has actual knowledge of, the presence of any toxic or hazardous substance

on the Mortgaged Property, the Master Servicer shall promptly request the

Trustee and the Depositor to provide directions and instructions with respect to

such Mortgage Loan and shall act in accordance with any such directions and

instructions jointly provided by the Trustee and the Depositor. Notwithstanding

the preceding sentence of this Section 3.22, with respect to any Mortgage Loan

described by such sentence, the Master Servicer shall not, on behalf of the

Trustee, either (i) obtain title to the related Mortgaged Property as a result

of or in lieu of foreclosure or otherwise, or (ii) otherwise acquire possession

of, the related Mortgaged Property, unless (i) the Depositor and the Trustee

jointly direct the Master Servicer to take such action and (ii) either (A) the

Master Servicer has, at least 30 days prior to taking such action, obtained and

delivered to the Depositor an environmental audit report prepared by a Person

who regularly conducts environmental audits using customary industry standards

or (B) the Depositor has directed the Master Servicer not to obtain an

environmental audit report. If the Trustee and the Depositor have not jointly

provided directions and instructions to the Master Servicer in connection with

any such Mortgage Loan within 30 days of a request by the Master Servicer for

such directions and instructions, then the Master Servicer shall take such

action as it deems to be in the best economic interest of the Trust Fund (other

than proceeding against the Mortgaged Property) and is hereby authorized at such

time as it deems appropriate to release such Mortgaged Property from the lien of

the related Mortgage.

 

         The cost of the environmental audit report contemplated by this Section

3.22 shall be advanced by the Master Servicer as an expense of the Trust Fund,

and the Master Servicer shall be reimbursed therefor from the Custodial Account

as provided in Section 3.11, any such right of reimbursement being prior to the

rights of the Certificateholders to receive any amount in the Custodial Account.

 

         If the Master Servicer determines, as described above, that it is in

the best economic interest of the Trust Fund to take such actions as are

necessary to bring any such Mortgaged Property in compliance with applicable

environmental laws, or to take such action with respect to the containment,

clean-up or remediation of hazardous substances, hazardous materials, hazardous

wastes, or petroleum-based materials affecting any such Mortgaged Property, then

the Master Servicer shall take such action as it deems to be in the best

economic interest of the Trust Fund. The cost of any such compliance,

containment, clean-up or remediation shall be advanced by the Master Servicer as

an expense of the Trust Fund, and the Master Servicer shall be entitled to be

reimbursed therefor from the Custodial Account as provided in Section 3.11, any

such right of reimbursement being prior to the rights of the Certificateholders

to receive any amount in the Custodial Account.

 

         SECTION 3.23 Additional Obligations of the Master Servicer.

 

         On each Certificate Account Deposit Date, the Master Servicer shall

deliver to the Trustee for deposit in the Certificate Account from its own funds

and without any right of reimbursement therefor, a total amount equal to the

aggregate of the Prepayment Interest Shortfalls for such Distribution Date;

provided that the Master Servicer's obligations under this subsection on any

Distribution Date shall not be more than the total amount of its master

servicing compensation payable in such month.

 

         SECTION 3.24 Additional Obligations of the Depositor.

 

         The Depositor agrees that on or prior to the tenth day after the

Closing Date, the Depositor shall provide the Trustee with a written

notification, substantially in the form of Exhibit J attached hereto, relating

to each Class of Certificates, setting forth (i) in the case of each Class of

such Certificates, (a) if less than 10% of the aggregate Certificate Principal

Balance of such Class of Certificates has been sold as of such date, the value

calculated pursuant to clause (b)(iii) of Exhibit J hereto, or, (b) if 10% or

more of such Class of Certificates has been sold as of such date but no single

price is paid for at least 10% of the aggregate Certificate Principal Balance of

such Class of Certificates, then the weighted average price at which the

Certificates of such Class were sold and the aggregate percentage of

Certificates of such Class sold, (c) the first single price at which at least

10% of the aggregate Certificate Principal Balance of such class of Certificates

was sold or, (d) if any Certificates of each Class of Certificates are retained

by the Depositor or an affiliated corporation, or are delivered to the Seller,

the fair market value of such Certificates as of the Closing Date, (ii) the

prepayment assumption used in pricing the Certificates, and (iii) such other

information as to matters of fact as the Trustee may reasonably request to

enable it to comply with its reporting requirements with respect to each Class

of such Certificates to the extent such information can in the good faith

judgment of the Depositor be determined by it.

 

         SECTION 3.25 Intention of the Parties and Interpretation.

 

         Each of the parties acknowledges and agrees that the purpose of

Sections 3.19, 3.20, Section 8.11 and this Section 3.25 of this Agreement is to

facilitate compliance by the Seller and the Depositor with the provisions of

Regulation AB promulgated by the Commission under the 1934 Act (17 C.F.R. ss.ss.

229.1100 - 229.1123), as such may be amended from time to time and subject to

clarification and interpretive advice as may be issued by the staff of the

Commission from time to time. Therefore, each of the parties agrees that (a) the

obligations of the parties hereunder shall be interpreted in such a manner as to

accomplish that purpose, (b) the parties' obligations hereunder will be

supplemented and modified as necessary to be consistent with any such

amendments, interpretive advice or guidance, convention or consensus among

active participants in the asset-backed securities markets, advice of counsel,

or otherwise in respect of the requirements of Regulation AB, (c) the parties

shall comply with requests made by the Seller or the Depositor for delivery of

additional or different information as the Seller or the Depositor may determine

in good faith is necessary to comply with the provisions of Regulation AB, and

(d) no amendment of this Agreement shall be required to effect any such changes

in the parties' obligations as are necessary to accommodate evolving

interpretations of the provisions of Regulation AB.

 

         SECTION 3.26 Compliance with the Homes Act.

 

         The Master Servicer, on behalf of the Certificateholders, shall cause, or shall cause each Sub-Servicer to, prepare and distribute a Section 404 Notice to each Mortgagor within thirty (30) days of the Closing Date in connection with the sale of the Mortgage Loans from the Seller to the Depositor.  Each such Section 404 Notice shall conform to the form of notice attached hereto as Exhibit O or in another form reasonably acceptable to the Master Servicer, subject to any changes necessitated by regulatory guidance.  The Master Servicer shall pay all costs associated with the distribution of such Section 404 Notice, and [__________] shall reimburse the Master Servicer for such costs.  The Master Servicer shall promptly send written confirmation to the Trustee upon the completion of the distribution of such Section 404 Notices.

 

 

ARTICLE IV

 

PAYMENTS TO CERTIFICATEHOLDERS

 

         SECTION 4.01 Certificate Account; Distributions.

 

         (a) The Trustee shall establish and maintain a Certificate Account, in

which the Master Servicer shall cause to be deposited on behalf of the Trustee

on or before 3:00 P.M. New York time on each Certificate Account Deposit Date by

wire transfer of immediately available funds an amount equal to the sum of (i)

any Advance for the immediately succeeding Distribution Date, (ii) any amount

required to be deposited in the Certificate Account pursuant to Sections 3.11,

3.13, 3.23 or 4.03(b) and (iii) all other amounts constituting or, if not

otherwise applicable to the payment of the Trustee's Fee, that would constitute

the Available Distribution Amount for the immediately succeeding Distribution

Date. The Trustee shall transfer from the Certificate Account to itself, the

Trustee's Fee on each Certificate Account Deposit Date. Such amounts do not

constitute part of the Available Distribution Amount.

 

         (b) On each Distribution Date the Trustee shall, distribute to the

Master Servicer, in the case of a distribution pursuant to Section 4.01(b)(iii),

and to each Certificateholder of record on the next preceding Record Date (other

than as provided in Section 9.01 respecting the final distribution) either in

immediately available funds (by wire transfer or otherwise) to the account of

such Certificateholder at a bank or other entity having appropriate facilities

therefor, if such Certificateholder has so notified the Trustee at least 5

Business Days prior to the related Record Date and such Certificateholder is the

registered owner of Certificates the aggregate Initial Certificate Principal

Balance of which is not less than $2,500,000 (or, with respect to the Class A-5

and Class A-7 Certificates, is the registered owner of an initial Notional

Amount of not less than $10,000,000 of each such class), or otherwise by check

mailed to such Certificateholder at the address of such Holder appearing in the

Certificate Register, such Certificateholder's share (based on the aggregate of

the Percentage Interests represented by Certificates of the applicable Class

held by such Holder) of the following amounts, in the following order of

priority, in each case to the extent of the Available Distribution Amount:

 

                  (i) to the Class A Certificateholders on a pro rata basis

         based on Accrued Certificate Interest payable thereon, Accrued

         Certificate Interest on such Classes of Certificates for such

         Distribution Date and to the extent not previously paid, for all prior

         Distribution Dates;

 

                  (ii) to the Class A Certificateholders (other than the Class

         A-5 Certificateholders and the Class A-7 Certificateholders), in the

         priorities and amounts set forth in Sections 4.01(c) and (d), the sum

         of the following (applied to reduce the Certificate Principal Balances

         of such Class A Certificates, as applicable):

 

         (A) the Senior Percentage for such Distribution Date times the sum of

the following:

 

                           (1) the principal portion of each Monthly Payment due

                  during the related Due Period on each Outstanding Mortgage

                  Loan, whether or not received on or prior to the related

                  Determination Date, minus the principal portion of any Debt

                  Service Reduction which together with other Bankruptcy Losses

                  exceeds the Bankruptcy Amount;

 

                           (2) the Stated Principal Balance of any Mortgage Loan

                  purchased during the related Prepayment Period and the amount

                  of any shortfall deposited in the Custodial Account in

                  connection with the substitution of a Deleted Mortgage Loan

                  pursuant to Section 2.04 during the related Prepayment Period;

                  and

 

                           (3) the principal portion of all other unscheduled

                  collections (other than Principal Prepayments and amounts

                  received in connection with a Cash Liquidation or REO

                  Disposition) received during the related Prepayment Period,

                  including, without limitation, Insurance Proceeds, Liquidation

                  Proceeds and REO Proceeds, to the extent applied by the Master

                  Servicer as recoveries of principal of the related Mortgage

                  Loan pursuant to Section 3.15;

 

         (B) with respect to each Mortgage Loan for which a Cash Liquidation or

a REO Disposition occurred during the related Prepayment Period and did not

result in any Excess Special Hazard Losses, Excess Fraud Losses, Excess

Bankruptcy Losses or Extraordinary Losses, an amount equal to the lesser of (a)

the Senior Percentage for such Distribution Date times the Stated Principal

Balance of such Mortgage Loan and (b) the Senior Accelerated Distribution

Percentage for such Distribution Date times the related unscheduled collections

(including without limitation Insurance Proceeds, Liquidation Proceeds and REO

Proceeds) to the extent applied by the Master Servicer as recoveries of

principal of the related Mortgage Loan pursuant to Section 3.15;

 

         (C) the Senior Accelerated Distribution Percentage for such

Distribution Date times the aggregate of all Principal Prepayments in Full and

Curtailments received in the related Prepayment Period; and

 

         (D) any amounts described in clauses (A), (B) and (C) of this Section

4.01 (b)(ii), as determined for any previous Distribution Date, which remain

unpaid after application of amounts previously distributed pursuant to this

clause (D) to the extent that such amounts are not attributable to Realized

Losses which have been allocated to the Class B Certificates;

 

                           (iii) if the Certificate Principal Balances of the

                  Class B Certificates have not been reduced to zero, to the

                  Master Servicer or a Sub-Servicer, to the extent of and in

                  reimbursement for any Advances previously made with respect to

                  any Mortgage Loan or REO Property which remain unreimbursed in

                  whole or in part following the Cash Liquidation or REO

                  Disposition of such Mortgage Loan or REO Property, minus any

                  such Advances that were made with respect to delinquencies

                  that ultimately constituted Excess Special Hazard Losses,

                  Excess Fraud Losses, Excess Bankruptcy Losses or Extraordinary

                  Losses;

 

                           (iv) to the Holders of the Class B Certificates, the

                  Accrued Certificate Interest thereon for such Distribution

                  Date, plus any Accrued Certificate Interest thereon remaining

                  unpaid from any previous Distribution Date, except as provided

                  below;

 

                           (v) to the Holders of the Class B Certificates, an

                  amount equal to the Subordinate Principal Distribution Amount

                  for such Class of Certificates for such Distribution Date,

                  applied in reduction of the Certificate Principal Balance of

                  the Class B Certificates;

 

                           (vi) to the Class A Certificateholders (other than

                  the Class A-5 and Class A-7 Certificateholders) in the

                  priority set forth in Section 4.01(c), the portion, if any, of

                  the Available Distribution Amount remaining after the

                  foregoing distributions, applied to reduce the Certificate

                  Principal Balances of such Class A Certificates, but in no

                  event more than the sum of the outstanding Certificate

                  Principal Balances of the Class A Certificates (other than the

                  Class A-5 and Class A-7 Certificates) and thereafter applied

                  to reduce the Certificate Principal Balance of the Class B

                  Certificates, but in no event more than the outstanding

                  Certificate Principal Balance of the Class B Certificates; and

 

                           (vii) to the Class R Certificateholders, the balance,

                  if any, of the Available Distribution Amount.

 

         (c) Distributions of principal on the Class A Certificates (other than

the Class A-5 and Class A-7 Certificates) on each Distribution Date occurring

prior to the occurrence of the Credit Support Depletion Date will be made as

follows:

 

                  (i) first, to the Class A-1 Certificates and Class A-6

         Certificates, with the amount to be distributed allocated as between

         such classes on a pro rata basis, until the Certificate Principal

         Balance of each such Class has been reduced to zero;

 

                  (ii) second, to the Class A-2 Certificates, until the

         Certificate Principal Balance thereof has been reduced to zero;

 

                  (iii) third, to the Class A-3 Certificates, until the

         Certificate Principal Balance thereof has been reduced to zero; and

 

                  (iv) fourth, to the Class A-4 Certificates, until the

         Certificate Principal Balance thereof has been reduced to zero.

 

         (d) On each Distribution Date occurring on or after the Credit Support

Depletion Date, all priorities relating to sequential distributions in respect

of principal among the various classes of Senior Certificates will be

disregarded, and the Senior Principal Distribution Amount will be distributed to

all classes of Senior Certificates pro rata in accordance with their respective

outstanding Certificate Principal Balances; provided, that the aggregate amount

distributable to the Class A-1, Class A-5 and Class A-6 Certificates (the

"Tiered Certificates") in respect of Accrued Certificate Interest thereon and in

respect of their pro rata portion of the Senior Principal Distribution Amount

shall be distributed among the Tiered Certificates in the amounts and priority

as follows: first, to the Class A-1 Certificates and the Class A-5 Certificates,

up to an amount equal to, and pro rata based on, the Accrued Certificate

Interest thereon; second to the Class A-1 Certificates, up to an amount equal to

the Optimal Principal Distribution Amount thereof, in reduction of the

Certificate Principal Balances thereof; third to the Class A-6 Certificates, up

to an amount equal to the Accrued Certificate Interest thereon; and fourth to

the Class A-6 Certificates the remainder of the amount so distributable among

the Tiered Certificates.

 

         (e) The Trustee shall, upon written request from the Master Servicer,

invest or cause the institution maintaining the Certificate Account to invest

the funds in the Certificate Account in Permitted Instruments designated in the

name of the Trustee for the benefit of the Certificateholders, which shall

mature not later than the Business Day next preceding the Distribution Date next

following the date of such investment (except that (i) any investment in

obligations of the institution with which the Certificate Account is maintained

may mature on such Distribution Date and (ii) any other investment may mature on

such Distribution Date if the Trustee shall agree to advance funds on such

Distribution Date to the Certificate Account in the amount payable on such

investment on such Distribution Date, pending receipt thereof to the extent

necessary to make distributions on the Certificates) and shall not be sold or

disposed of prior to maturity. All income and gain realized from any such

investment shall be for the benefit of the Master Servicer and shall be subject

to its withdrawal or order from time to time. The amount of any losses incurred

in respect of any such investments shall be deposited in the Certificate Account

by the Master Servicer out of its own funds immediately as realized without

right of reimbursement.

 

         SECTION 4.02 Statements to Certificateholders.

 

         On each Distribution Date the Trustee shall forward or cause to be

forwarded by mail to each Holder of a Certificate and to the Depositor and the

Master Servicer a statement as to such distribution setting forth the following

information as to each Class of Certificates to the extent applicable:

 

                  (i) (a) the amount of such distribution to the

         Certificateholders of such Class applied to reduce the Certificate

         Principal Balance thereof, and (b) the aggregate amount included

         therein representing Principal Prepayments;

 

                  (ii) the total cash flows received and the general sources

         thereof;

 

                  (iii) the applicable record dates, accrual periods,

         determination dates for calculating distributions and general

         distribution dates;

 

                  (iv) the amount of such distribution to the Holders of such

         Class allocable to interest

 

                  (v) [the amount of any net swap payment payable to the

         Derivative Administrator, any Net Swap Payment payable to the Swap

         Provider, any swap termination payment payable to the derivative

         administrator and any Swap Termination Payment payable to the Swap

         Provider;]

 

                  (vi) if the distribution to the Certificateholders of such

         Class is less than the full amount that would be distributable to such

         Certificateholders if there were sufficient funds available therefor,

         the amount of the shortfall;

 

                  (vii) the amount of any Advance by the Master Servicer

         pursuant to Section 4.04 (including the general purpose of such

         Advance), the aggregate amount of unreimbursed Advances at the close of

         business on the Distribution Date, and the general source of funds for

         reimbursement;

 

                  (viii) the number and aggregate Stated Principal Balance of

         the Mortgage Loans after giving effect to the distribution of principal

         on such Distribution Date;

 

                  (ix) the aggregate Certificate Principal Balance of each Class

         of Certificates, after giving effect to the amounts distributed on such

         Distribution Date, separately identifying any reduction thereof due to

         Realized Losses other than pursuant to an actual distribution of

         principal;

 

                  (x) the related Subordinate Principal Distribution Amount;

 

                  (xi) the related amount of Servicing Fees paid to or retained

         by the Master Servicer;

 

                  (xii) on the basis of the most recent reports furnished to it

         by Sub-Servicers, the number and aggregate principal balances of

         Mortgage Loans that are delinquent (A) one month, (B) two months and

         (C) three months, and the number and aggregate principal balance of

         Mortgage Loans that are in foreclosure;

 

                  (xiii) the number, aggregate principal balance and book value

         of any REO Properties;

 

                  (xiv) the aggregate Accrued Certificate Interest remaining

         unpaid, if any, for each Class of Certificates, after giving effect to

         the distribution made on such Distribution Date;

 

                  (xv) the Special Hazard Amount, Fraud Loss Amount and

         Bankruptcy Amount as of the close of business on such Distribution Date

         and a description of any change in the calculation of such amounts;

 

                  (xvi) the Pass-Through Rate on the Class A-7 Certificates for

         such Distribution Date;

 

                  (xvii) the occurrence of the Credit Support Depletion Date;

 

                  (xviii) the Senior Accelerated Distribution Percentage

         applicable to such distribution;

 

                  (xix) the Senior and Class B Percentages for such Distribution

         Date;

 

                  (xx) the aggregate amount of Realized Losses allocated to the

         Certificates on such Distribution Date;

 

                  (xxi) the aggregate amount of any recoveries on previously

         foreclosed loans from the Seller due to a breach of representation or

         warranty;

 

                  (xxii) if applicable, material modifications, extensions or

         waivers to Mortgage Loan terms, fees, penalties or payments during the

         preceding calendar month or that have become material over time;

 

                  (xxiii) updated pool composition data including the following

         with respect to each Loan Group: average loan balance, weighted average

         mortgage rate, weighted average loan-to-value ratio at origination,

         weighted average FICO at origination weighted average remaining term;

         and [NOTE - Item 1121(a)(8) requires updated pool composition

         information, the foregoing is a suggestion of what to provide];

 

                  (xxiv) information about any additions of, substitutions for

         or removal of any Mortgage Loans from the Trust Fund, and any changes

         in the underwriting, acquisition or selection criteria as to any

         Mortgage Loans added to the Trust Fund;

 

                  (xxv) the weighted average remaining term to maturity of the

         Mortgage Loans after giving effect to the amounts distributed on such

         Distribution Date; and

 

                  (xxvi) the weighted average Mortgage Rates of the Mortgage

         Loans after giving effect to the amounts distributed on such

         Distribution Date.

 

         In the case of information furnished pursuant to subclauses (i) and

(ii) above, the amounts shall also be expressed as a dollar amount per Single

Certificate. Within a reasonable period of time after the end of each calendar

year, the Trustee shall prepare and forward to each Person who at any time

during the calendar year was a Holder of a Certificate, a statement containing

the information set forth in subclauses (i) and (ii) above, aggregated for such

calendar year or applicable portion thereof during which such Person was a

Certificateholder. Such obligation of the Trustee shall be deemed to have been

satisfied to the extent that substantially comparable information shall be

provided by the Trustee pursuant to any requirements of the Code and regulations

thereunder as from time to time are in force.

 

         SECTION 4.03 Remittance Reports; Advances by the Master Servicer.

 

         (a) By 11:00 A.M. New York time the Business Day following each

Determination Date, the Master Servicer shall deliver to the Trustee a report,

prepared as of the close of business on the Determination Date (the

"Determination Date Report"), by telecopy or in a mutually agreeable electronic

format. The Determination Date Report and any written information supplemental

thereto shall include such information with respect to the Mortgage Loans that

is reasonably available to the Master Servicer and that is required by the

Trustee for purposes of making the calculations referred to in the following

paragraph, as set forth in written specifications or guidelines issued by the

Trustee from time to time. Not later than 2:00 P.M. New York time on the

Certificate Account Deposit Date, the Trustee shall furnish by telecopy to the

Master Servicer a statement (the information in such statement to be made

available to Certificateholders or the Depositor by the Master Servicer on

request) setting forth (i) the Available Distribution Amount, (ii) the amounts

required to be withdrawn from the Custodial Account and deposited into the

Certificate Account on the immediately succeeding Certificate Account Deposit

Date pursuant to clause (iii) of Section 4.01 (a); and (iii) such other

information with respect to the Mortgage Loans as the Trustee may reasonably

require to perform the calculations necessary to make the distributions

contemplated by Section 4.01 and to prepare the statements to Certificateholders

contemplated by Section 4.02. The determination by the Trustee of such amounts

shall, in the absence of obvious error, be presumptively deemed to be correct

for all purposes hereunder.

 

         (b) Not later than 2:00 P.M. New York time on the Certificate Account

Deposit Date, the Trustee shall notify the Master Servicer of the aggregate

amount of Advances required to be made for the related Distribution Date, which

shall be the aggregate amount of Monthly Payments (with each interest portion

thereof adjusted to be net of the related Servicing Fee Rate), less the amount

of any related Debt Service Reductions or reductions in the amount of interest

collectable from the Mortgagor pursuant to the Relief Act, on the Outstanding

Mortgage Loans as of the related Due Date, which Monthly Payments were

delinquent as of the close of business as of the related Determination Date,

provided that following the reduction of the Certificate Principal Balances of

the Class B Certificates to zero no Advance shall be made if it would be a

Nonrecoverable Advance. On or before 3:00 P.M. New York time on each Certificate

Account Deposit Date, the Master Servicer shall either (i) deposit in the

Certificate Account from its own funds, or funds received therefor from the

Sub-Servicers, an amount equal to the Advances to be made by the Master Servicer

in respect of the related Distribution Date, (ii) withdraw from amounts on

deposit in the Custodial Account and deposit in the Certificate Account all or a

portion of the amounts held for future distribution in discharge of any such

Advance, or (iii) make advances in the form of any combination of (i) and (ii)

aggregating the amount of such Advance. Any portion of the amounts held for

future distribution so used shall be replaced by the Master Servicer by deposit

in the Custodial Account on or before 12: 00 P.M. New York time on any future

Certificate Account Deposit Date to the extent that funds attributable to the

Mortgage Loans that are available in the Custodial Account for deposit in the

Certificate Account on such Certificate Account Deposit Date shall be less than

payments to Certificateholders required to be made on the following Distribution

Date. The amount of any reimbursement pursuant to Section 4.01(b)(iii) in

respect of outstanding Advances on any Distribution Date shall be allocated to

specific Monthly Payments due but delinquent for previous Due Periods, which

allocation shall be made, to the extent practicable, to Monthly Payments which

have been delinquent for the longest period of time. Such allocations shall be

conclusive for purposes of reimbursement to the Master Servicer from recoveries

on the Mortgage Loans pursuant to Section 3.11. The determination by the Master

Servicer that it has made a Nonrecoverable Advance or that any proposed Advance,

if made, would constitute a Nonrecoverable Advance, shall be evidenced by a

certificate of a Servicing Officer delivered to the Seller and the Trustee. The

Trustee shall deposit all funds it receives pursuant to this Section 4.03 into

the Certificate Account.

 

         (c) In the event that the Master Servicer determines on the Certificate

Account Deposit Date that it will be unable to deposit in the Certificate

Account an amount equal to the Advance required to be made for the immediately

succeeding Distribution Date in the amount determined by the Trustee pursuant to

paragraph (b) above, it shall give notice to the Trustee of its inability to

advance (such notice may be given by telecopy), not later than 3:00 P.M., New

York time, on such Business Day, specifying the portion of such amount that it

will be unable to deposit. If the Master Servicer shall have determined that it

is not obligated to make the entire Advance because all or a lesser portion of

such Advance would not be recoverable from Insurance Proceeds, Liquidation

Proceeds or otherwise, the Master Servicer shall promptly deliver to the Trustee

for the benefit of the Certificateholders an Officer's Certificate setting forth

the reasons for the Master Servicer's determination. Not later than 5:00 P.M.,

New York time, on the Certificate Account Deposit Date, unless by such time the

Master Servicer shall have directly or indirectly deposited in the Certificate

Account the entire amount of the Advances required to be made for the related

Distribution Date, pursuant to Section 7.01, the Trustee shall (a) terminate all

of the rights and obligations of the Master Servicer under this Agreement in

accordance with Section 7.01 and (b) assume the rights and obligations of the

Master Servicer hereunder, including the obligation to deposit in the

Certificate Account an amount equal to the Advance for the immediately

succeeding Distribution Date.

 

         SECTION 4.04 Allocation of Realized Losses.

 

         Prior to each Distribution Date, the Master Servicer shall determine

the total amount of Realized Losses, if any, that resulted from any Cash

Liquidation, Debt Service Reduction, Deficient Valuation or REO Disposition that

occurred during the related Prepayment Period. The amount of each Realized Loss

shall be evidenced by an Officers' Certificate by the Master Servicer. Realized

Losses shall be allocated among the various Classes of Certificates as

determined by the Trustee in accordance with the following provisions. All

Realized Losses, other than Excess Special Hazard Losses, Excess Bankruptcy

Losses, Excess Fraud Losses or Extraordinary Losses shall be allocated as

follows: first, to the Class B Certificates until the Certificate Principal

Balance thereof has been reduced to zero; and second, among all the Class A

Certificates as described below. Any Excess Special Hazard Losses, Excess

Bankruptcy Losses, Excess Fraud Losses and Extraordinary Losses on Mortgage

Loans will be allocated among the Class A and Class B Certificates on a pro rata

basis, as described below. As used herein, an allocation of a Realized Loss on a

"pro rata basis" among two or more specified Classes of Certificates means an

allocation on a pro rata basis, without priority among the various Classes so

specified, to each such Class of Certificates on the basis of the then

outstanding Certificate Principal Balances thereof in the case of the principal

portion of a Realized Loss or based on the Accrued Certificate Interest thereon

in the case of an interest portion of a Realized Loss. Allocations of Realized

Losses which are Default Losses to the Class A Certificates will be made on a

pro rata basis, based on their then outstanding Certificate Principal Balances,

or the Accrued Certificate Interest thereon, as applicable, between the Class

A-1, Class A-5 and Class A-6 Certificates, on the one hand, and the Class A-2,

Class A-3, Class A-4 and Variable Strip Certificates, on the other. Any such

Realized Losses so allocated to the Class A-1, Class A-5 and Class A-6

Certificates will be allocated first to the Class A-6 Certificates until the

Certificate Principal Balance thereof or the Accrued Certificate Interest

thereon, as appropriate, is reduced to zero and then to the Class A-1 and Class

A-5 Certificates on a pro rata basis. Any allocation of the principal portion of

Realized Losses (other than Debt Service Reductions) to a Class A Certificate

shall be made by reducing the Certificate Principal Balance thereof by the

amount so allocated, which allocation shall be deemed to have occurred at the

close of business on such Distribution Date. Any allocation of the principal

portion of Realized Losses (other than Debt Service Reductions) to the Class B

Certificates, shall be made by operation of the definition of "Certificate

Principal Balance" and by operation of the provisions of Section 4.01(b).

Allocations of the interest portions of Realized Losses shall be made by

operation of the definition of "Accrued Certificate Interest" and by operation

of the provisions of Section 4.01(b) or 4.01(d), as applicable. Allocations of

the principal portion of Debt Service Reductions shall be made by operation of

the provisions of Section 4.01(b) or 4.01(d), as applicable. All Realized Losses

and all other losses allocated to a Class of Certificates under this Section

4.04 will be allocated among the Certificates of such Class in proportion to the

Percentage Interests evidenced thereby.

 

         SECTION 4.05 Information Reports to be Filed by the Master Servicer.

 

         The Master Servicer or the Sub-Servicers shall file the information

returns with respect to the receipt of mortgage interest received in a trade or

business, reports of foreclosures and abandonments of any Mortgaged Property and

the information returns relating to cancellation of indebtedness income with

respect to any Mortgaged Property required by Sections 6050H, 6050J and 6050P of

the Code, respectively, and deliver to the Trustee an Officers' Certificate

stating that such reports have been filed. Such reports shall be in form and

substance sufficient to meet the reporting requirements imposed by such Sections

6050H, 6050J and 6050P of the Code.

 

         SECTION 4.06 Compliance with Withholding Requirements.

 

         Notwithstanding any other provision of this Agreement, the Trustee

shall comply with all federal withholding requirements respecting payments to

Certificateholders of interest or original issue discount on the Mortgage Loans,

and payments of interest or discount on amounts invested by the Trustee as agent

for Certificateholders pursuant to an election made under Section 4.01 hereof,

that the Trustee reasonably believes are applicable under the Code. The consent

of Certificateholders shall not be required for such withholding. In the event

the Trustee withholds any amount from interest or original issue discount

payments or advances thereof to any Certificateholder pursuant to federal

withholding requirements, the Trustee shall, together with its monthly report to

such Certificateholders pursuant to Section 4.02 hereof, indicate such amount

withheld.

 

         SECTION 4.07 Rule 17g-5 Compliance.

 

        (a)                                The Rule 17g-5 Information Provider shall, upon receipt of an NRSRO Certification in the form of Exhibit P, make available on its Rule 17g-5 Website solely to the Depositor, the Rating Agencies and to any NRSRO the following items, but only to the extent such items are delivered to it by electronic mail to [__________], specifically with a subject reference of “[_______]” and an identification of the type of information being provided in the body of such notice, or any other delivery method established or approved by the Rule 17g-5 Information Provider if or as may be necessary or beneficial;

 

(i)           any Rating Agency Information provided to the Rule 17g-5 Information Provider in accordance with Sections [____] of this Agreement, as well as reports prepared in accordance with Sections [3.19, 3.20 and [___]] (provided that the Rule 17g-5 Information Provider shall not be required to post to its Rule 17g-5 Website any such information previously posted to and available on the [_________]’s website);

 

(ii)           any notice of any amendment that modifies the procedures herein relating to Exchange Act Rule 17g-5 pursuant to this Agreement; and

 

(iii)                      a summary of any oral conversation with a Rating Agency regarding any Mortgage Loan, any Mortgaged Property or any REO Property, to the extent required to be provided pursuant to Rule 17g-5.

 

The foregoing information shall be made available by the Rule 17g-5 Information Provider on its Rule 17g-5 Website.  Such information shall be posted to the Rule 17g-5 Website on the same Business Day as it is received, provided that such information is received by 12:00 p.m. (eastern time) or, if received after 12:00 p.m., on the next Business Day.  The Rule 17g-5 Information Provider shall have no obligation or duty to verify, confirm or otherwise determine whether the information being delivered is accurate, complete, conforms to the requirements of this Agreement, or otherwise is or is not anything other than what it purports to be.  The Rule 17g-5 Information Provider shall not be deemed to have obtained actual knowledge of any information by virtue of the receipt and posting of such information to the Rule 17g-5 Website.  Further, notwithstanding anything to the contrary herein, in the event the Depositor determines that any information previously posted to the Rule 17g-5 Website should not have been posted thereto pursuant to the terms of this Agreement, the Depositor shall direct the Rule 17g-5 Information Provider in writing to remove such information from the Rule 17g-5 Website, such written notice to specify the information to be so removed.  The Rule 17g-5 Information Provider (i) shall have no obligation or duty to verify, confirm or otherwise determine the accuracy of the information contained in such written direction, (ii) shall be entitled to rely fully upon such written direction and (iii) shall not be held liable in connection with removing any such information from the Rule 17g-5 Website upon the receipt of such written direction.

 

The Rule 17g-5 Information Provider shall provide a mechanism to notify any party that has submitted an NRSRO Certification each time the Rule 17g-5 Information Provider posts an additional document to the Rule 17g-5 Website.

 

In connection with providing access to the Rule 17g-5 Website, the Rule 17g-5 Information Provider may require registration and the acceptance of a disclaimer.  The Rule 17g-5 Information Provider shall not be liable for the dissemination of information in accordance with the terms of this Agreement, makes no representations or warranties as to the accuracy or completeness of such information being made available, has no obligation to review such information, and assumes no responsibility for such information.  The Rule 17g-5 Information Provider shall not be liable for its failure to make any information available to the Rating Agencies or NRSROs unless such information was delivered to the Rule 17g-5 Information Provider at the email address specified in writing to the Depositor, with a subject heading of “[_________]” and sufficient detail to indicate that such information is required to be posted on the Rule 17g-5 Website.

 

If any NRSRO that has previously submitted an NRSRO Certification and whose NRSRO Certification has been accepted, notifies the Rule 17g-5 Information Provider that it is unable to access information posted to the Rule 17g-5 Website and such access issue is determined to be the result of a problem with the Rule 17g-5 Website, if such access issue is not resolved within one Business Day of such determination, the Rule 17g-5 Information Provider shall so notify the Depositor.

 

(b)           Each of the Master Servicer and the Trustee hereby agrees that, except as otherwise expressly permitted herein, it shall not communicate with (including verbally) or provide information to a Rating Agency without the prior consent of and consultation with the Depositor, and that any permitted communication by it to a Rating Agency will be made by it only in the manner prescribed by the procedures established by the Depositor to ensure compliance with Rule 17g-5 under the Exchange Act, including to the extent set forth herein, providing any such communications to the Depositor for posting on the Rule 17g-5 Website pursuant to this Section 4.03 prior to communicating with such Rating Agency.

 

         SECTION 4.08 Rule 15Ga-1 Compliance.

 

         (a)                                To the extent a Responsible Officer of the Master Servicer receives a demand for the repurchase or substitution of a Mortgage Loan based on a breach of a representation or warranty made by the Seller or the Originator of such Mortgage Loan (each, a “Demand”), the Master Servicer agrees (i) if such Demand is in writing, promptly to forward such Demand to the Trustee, and (ii) if such Demand is oral, to instruct the requesting party to submit such Demand in writing to the Trustee.  To the extent a Responsible Officer of the Trustee receives a Demand, it shall provide the Depositor with prompt written notice of such Demand.

 

          (b)                                In connection with the repurchase or substitution of a Mortgage Loan pursuant to a Demand, any dispute with respect to a Demand, or the withdrawal or final rejection of a Demand (i) the Master Servicer agrees, to the extent a Responsible Officer of the Master Servicer has actual knowledge thereof, promptly to notify the Trustee in writing, and (ii) the Trustee agrees, to the extent a Responsible Officer of the Trustee has actual knowledge thereof, promptly to notify the Depositor in writing.

 

          (c)                                To the extent in its possession, the Trustee shall provide the Depositor with any applicable information required under Rule 15Ga-1 of the Exchange Act (the “Rule 15Ga-1 Information”) with respect to a Demand in a timely manner so as to enable the Depositor to meet its reporting obligations under Rule 15Ga-1.  The Depositor shall be entitled conclusively to rely on the Rule 15Ga-1 Information provided to it by the Trustee in connection with the compilation by the Depositor of the Rule 15Ga-1 Information required to be reported on Form ABS-15G.  For the avoidance of doubt, the Depositor shall have sole responsibility for compiling the Rule 15Ga-1 Information required to be reported on Form ABS-15G. Other than with respect to the obligations of the Trustee in this Section 4.08, the Trustee shall have no responsibility or liability in connection with any filing required to be made by the Depositor pursuant to Rule 15Ga-1 of the Exchange Act.

 

ARTICLE V

 

THE CERTIFICATES

 

         SECTION 5.01 The Certificates.

 

         The Certificates will be substantially in the respective forms annexed

hereto as Exhibits A-1, A-2 and B. The Certificates will be issuable in

registered form only. The Class A Certificates, other than the Class A-5 and

Class A-7 Certificates, shall be issuable in minimum dollar denominations of

$1,000 and integral multiples of $1 in excess thereof, except that one

Certificate of each Class of Class A Certificates may be issued in an amount

such that the denomination of such Certificate and the aggregate denomination of

all other outstanding Certificates of such Class together equal the aggregate

Certificate Principal Balance of such Class. The Class B Certificates shall be

issuable in minimum dollar denominations of $25,000 and integral multiples of $1

in excess thereof, except that one Certificate of such Class may be issued in an

amount such that the denomination of such Certificate and the aggregate

denomination of all other outstanding Certificates of such Class together equal

the aggregate Certificate Principal Balance of such Class. The Class A-5 and

Class A-7 Certificates shall be issuable in minimum Notional Amounts of $1,000

and integral multiples of $1 in excess thereof, except that one Certificate of

each such Class may be issued in an amount such that the denomination of such

Certificate and the aggregate denomination of all other outstanding Certificates

of such Class together equal the aggregate Notional Amount of such Class. The

Class R Certificates will each be issuable in minimum denominations of any

Percentage Interest representing 20% and integral multiples of 0.01% in excess

thereof, provided, however, that one Class R Certificate may be issued to the

"tax matters person" pursuant to Article X, in a minimum denomination

representing a Percentage Interest of not less than 0.01%.

 

         Upon original issue, the Certificates shall, upon the written request

of the Depositor executed by an officer of the Depositor, be executed and

delivered by the Trustee, authenticated by the Trustee and delivered to or upon

the order of the Depositor upon receipt by the Trustee of the documents

specified in Section 2.01. The Certificates shall be executed by manual or

facsimile signature on behalf of the Trustee in its capacity as trustee

hereunder by a Responsible Officer. Certificates bearing the manual or facsimile

signatures of individuals who were at any time the proper officers of the

Trustee shall bind the Trustee, notwithstanding that such individuals or any of

them have ceased to hold such offices prior to the authentication and delivery

of such Certificates or did not hold such offices at the date of such

Certificates. No Certificate shall be entitled to any benefit under this

Agreement, or be valid for any purpose, unless there appears on such Certificate

a certificate of authentication substantially in the form provided for herein

executed by the Trustee by manual signature, and such certificate upon any

Certificate shall be conclusive evidence, and the only evidence, that such

Certificate has been duly authenticated and delivered hereunder. All

Certificates issued on the Closing Date shall be dated the Closing Date and any

Certificates delivered thereafter shall be dated the date of their

authentication.

 

         SECTION 5.02 Registration of Transfer and Exchange of Certificates.

 

         The Trustee shall maintain a Certificate Register in which, subject to

such reasonable regulations as it may prescribe, the Trustee shall provide for

the registration of Certificates and of transfers and exchanges of Certificates

as herein provided.

 

         No transfer, sale, pledge or other disposition of a Class B or a Class

R Certificate shall be made unless such transfer, sale, pledge or other

disposition is exempt from the registration requirements of the Securities Act

of 1933, as amended (the "Act"), and any applicable state securities laws or is

made in accordance with said Act and laws. In the event that a transfer of a

Class B or Class R Certificate is to be made (i) the Depositor may direct the

Trustee to require a written Opinion of Counsel acceptable to and in form and

substance satisfactory to the Trustee and the Depositor that such transfer shall

be made pursuant to an exemption, describing the applicable exemption and the

basis therefor, from said Act and laws or is being made pursuant to said Act and

laws, which Opinion of Counsel shall not be an expense of the Trustee, the

Depositor or the Master Servicer, provided that such Opinion of Counsel will not

be required in connection with the initial transfer of any such Certificate by

the Depositor or any affiliate thereof, to a non-affiliate of the Depositor and

(ii) the Trustee shall require the transferee to execute a representation

letter, substantially in the form of Exhibit G-1 hereto, and the Trustee shall

require the transferor to execute a representation letter, substantially in the

form of Exhibit G-2 hereto, each acceptable to and in form and substance

satisfactory to the Depositor and the Trustee certifying to the Depositor and

the Trustee the facts surrounding such transfer, which representation letters

shall not be an expense of the Trustee, the Depositor or the Master Servicer.

Any such Certificateholder desiring to effect such transfer shall, and does

hereby agree to, indemnify the Trustee, the Depositor and the Master Servicer

against any liability that may result if the transfer is not so exempt or is not

made in accordance with such applicable federal and state laws.

 

         The Trustee shall require a written Opinion of Counsel from a

prospective transferee prior to the transfer of any Class B or Class R

Certificate to any employee benefit plan or other retirement arrangement,

including individual retirement accounts and Keogh plans, that is subject to

Section 406 of the Employee Retirement Income Security Act of 1974, as amended

("ERISA") or Section 4975 of the Code (any of the foregoing, a "Plan"), to a

trustee or other Person acting on behalf of any Plan, or to any other person who

is using "plan assets" of any Plan to effect such acquisition (including any

insurance company using funds in its general or separate accounts that may

constitute "plan assets"). Such Opinion of Counsel must establish to the

satisfaction of the Depositor and the Trustee or the Certificate Registrar that

such disposition will not violate the prohibited transaction provisions of

Section 406 of ERISA and Section 4975 of the Code. Neither the Depositor, the

Master Servicer nor the Trustee will be required to obtain such Opinion of

Counsel on behalf of any prospective transferee. In the case of any transfer of

the foregoing Certificates to an insurance company, in lieu of such Opinion of

Counsel, the Trustee shall require a certification in the form of Exhibit G-5

hereto substantially to the effect that all funds used by such transferee to

purchase such Certificates will be funds held by it in its general account which

it reasonably believes do not constitute "plan assets" of any Plan (as defined

above). The permission of any transfer in violation of the restriction on

transfer set forth in this paragraph shall not constitute a default or an Event

of Default.

 

                  (i) Each Person who has or who acquires any Ownership Interest

         in a Class R Certificate shall be deemed by the acceptance or

         acquisition of such Ownership Interest to have agreed to be bound by

         the following provisions and to have irrevocably authorized the Trustee

         or its designee under clause (iii)(A) below to deliver payments to a

         Person other than such Person and to negotiate the terms of any

         mandatory sale under clause (iii)(B) below and to execute all

         instruments of transfer and to do all other things necessary in

         connection with any such sale. The rights of each Person acquiring any

         Ownership Interest in a Class R Certificate are expressly subject to

         the following provisions:

 

         (A) Each Person holding or acquiring any Ownership Interest in a Class

R Certificate shall be a Permitted Transferee and shall promptly notify the

Trustee of any change or impending change in its status as a Permitted

Transferee.

 

         (B) In connection with any proposed transfer of any Ownership Interest

in a Class R Certificate, the Trustee shall require delivery to it, and shall

not register the transfer of any Class R Certificate until its receipt of (1) an

affidavit and agreement (a "Transfer Affidavit and Agreement" in the form

attached hereto as Exhibit G-3) from the proposed Transferee, in form and

substance satisfactory to the Master Servicer and the Trustee representing and

warranting, among other things, that it is a Permitted Transferee, that it is

not acquiring its Ownership Interest in the Class R Certificate that is the

subject of the proposed Transfer as a nominee, trustee or agent for any Person

who is not a Permitted Transferee, that for so long as it retains its Ownership

Interest in a Class R Certificate, it will endeavor to remain a Permitted

Transferee, and that it has reviewed the provisions of this Section 5.02 and

agrees to be bound by them, and (11) a certificate, in the form attached hereto

as Exhibit G-4, from the Holder wishing to transfer the Class R Certificate, in

form and substance satisfactory to the Master Servicer and the Trustee

representing and warranting, among other things, that no purpose of the proposed

Transfer is to impede the assessment or collection of tax.

 

         (C) Notwithstanding the delivery of a Transfer Affidavit and Agreement

by a proposed Transferee under clause (B) above, if a Responsible Officer of the

Trustee assigned to this transaction has actual knowledge that the proposed

Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest

in a Class R Certificate to such proposed Transferee shall be effected.

 

         (D) Each Person holding or acquiring any Ownership Interest in a Class

R Certificate shall agree (x) to require a Transfer Affidavit and Agreement from

any other Person to whom such Person attempts to transfer its Ownership Interest

in a Class R Certificate and (y) not to transfer its Ownership Interest unless

it provides a certificate to the Trustee in the form attached hereto as Exhibit

G-4.

 

         (E) Each Person holding or acquiring an Ownership Interest in a Class R

Certificate, by purchasing an Ownership Interest in such Certificate, agrees to

give the Trustee written notice that it is a "pass- through interest holder"

within the meaning of Temporary Treasury Regulations Section 1.67-3T(a)(2)(i)(A)

immediately upon acquiring an Ownership Interest in a Class R Certificate, if it

is "a pass-through interest holder", or is holding an Ownership Interest in a

Class R Certificate on behalf of a "pass-through interest holder."

 

                  (ii) The Trustee will register the Transfer of any Class R

         Certificate only if it shall have received the Transfer Affidavit and

         Agreement in the form attached hereto as Exhibit G-3, a certificate of

         the holder requesting such transfer in the form attached hereto as

         Exhibit G-4 and all of such other documents as shall have been

         reasonably required by the Trustee as a condition to such registration.

         Transfers of the Class R Certificates to Non-United States Persons and

         Disqualified Organizations are prohibited.

 

                  (iii) (a) if any Disqualified Organization shall become a

         holder of a Class R Certificate, then the last preceding Permitted

         Transferee shall be restored, to the extent permitted by law, to all

         rights and obligations as holder thereof retroactive to the date of

         registration of such Transfer of such Class R Certificate. If a

         Non-United States Person shall become a holder of a Class R

         Certificate, then the last preceding United States Person shall be

         restored, to the extent permitted by law, to all rights and obligations

         as holder thereof retroactive to the date of registration of such

         Transfer of such Class R Certificate. If a transfer of a Class R

         Certificate is disregarded pursuant to the provisions of Treasury

         Regulations Section 1.860E-1 or Section 1.86OG-3, then the last

         preceding Permitted Transferee shall be restored, to the extent

         permitted by law, to all rights and obligations as holder thereof

         retroactive to the date of registration of such Transfer of such Class

         R Certificate. The Trustee shall be under no liability to any Person

         for any registration of Transfer of a Class R Certificate that is in

         fact not permitted by this Section 5.02 or for making any payments due

         on such Certificate to the holder thereof or for taking any other

         action with respect to such holder under the provisions of this

         Agreement.

 

                  (b) If any purported Transferee shall become a holder of a

         Class R Certificate in violation of the restrictions in this Section

         5.02 and to the extent that the retroactive restoration of the rights

         of the holder of such Class R Certificate as described in clause

         (iii)(a) above shall be invalid, illegal or unenforceable, then the

         Trustee shall have the right, without notice to the holder or any prior

         holder of such Class R Certificate, to sell such Class R Certificate to

         a purchaser selected by the Trustee on such terms as the Trustee may

         choose. Such purported Transferee shall promptly endorse and deliver

         each Class R Certificate in accordance with the instructions of the

         Trustee. Such purchaser may be the Trustee itself. The proceeds of such

         sale, net of the commissions (which may include commissions payable to

         the Trustee), expenses and taxes due, if any, will be remitted by the

         Trustee to such purported Transferee. The terms and conditions of any

         sale under this clause (iii)(b) shall be determined in the sole

         discretion of the Trustee, and the Trustee shall not be liable to any

         Person having an Ownership Interest in a Class R Certificate as a

         result of its exercise of such discretion.

 

                  (iv) The Trustee shall make available to the Internal Revenue

         Service and those Persons specified by the REMIC Provisions, all

         information necessary to compute any tax imposed (A) as a result of the

         transfer of an ownership interest in a Class R Certificate to any

         Person who is a Disqualified Organization, including the information

         regarding "excess inclusions" of such Class R Certificates required to

         be provided to the Internal Revenue Service and certain Persons as

         described in Treasury Regulations Sections 1.86OD-l(b)(5) and 1.860E

         2(a)(5), and (B) as a result of any regulated investment company, real

         estate investment trust, common trust fund, partnership, trust, estate

         or organization described in Section 1381 of the Code that holds an

         Ownership Interest in a Class R Certificate having as among its record

         holders at any time any Person who is a Disqualified Organization. The

         Trustee may charge and shall be entitled to reasonable compensation for

         providing such information as may be required from those Persons which

         may have had a tax imposed upon them as specified in clauses (A) and

         (B) of this paragraph for providing such information.

 

         Subject to the preceding paragraphs, upon surrender for registration of

transfer of any Certificate at the office of the Trustee maintained for such

purpose, the Trustee shall execute and the Trustee or the Authenticating Agent

shall authenticate and deliver, in the name of the designated transferee or

transferees, one or more new Certificates of the same Class of a like aggregate

initial Certificate Principal Balance. Every Certificate surrendered for

transfer shall be accompanied by notification of the account of the designated

transferee or transferees for the purpose of receiving distributions pursuant to

Section 4.01 by wire transfer, if any such transferee desires and is eligible

for distribution by wire transfer.

 

         At the option of the Certificateholders, Certificates may be exchanged

for other Certificates of authorized denominations of the same Class of a like

aggregate initial Certificate Principal Balance, upon surrender of the

Certificates to be exchanged at the office of the Certificate Registrar.

Whenever any Certificates are so surrendered for exchange the Trustee shall

execute, authenticate and deliver the Certificates which the Certificateholder

making the exchange is entitled to receive. Every Certificate presented or

surrendered for transfer or exchange shall (if so required by the Trustee or the

Certificate Registrar) be duly endorsed by, or be accompanied by a written

instrument of transfer in the form satisfactory to the Trustee or the

Certificate Registrar duly executed by, the Holder thereof or his attorney duly

authorized in writing.

 

         No service charge shall be made to the Certificateholders for any

transfer or exchange of Certificates, but the Trustee may require payment of a

sum sufficient to cover any tax or governmental charge that may be imposed in

connection with any transfer or exchange of Certificates.

 

         All Certificates surrendered for transfer and exchange shall be

canceled and retained by the Trustee in accordance with the Trustee's standard

procedures.

 

         SECTION 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

 

         If (i) any mutilated Certificate is surrendered to the Trustee and the

Trustee receives evidence to its satisfaction of the destruction, loss or theft

of any Certificate, and (ii) there is delivered to the Trustee such security or

indemnity as may be required by it to save it harmless, then, in the absence of

notice to the Trustee that such Certificate has been acquired by a bona fide

purchaser, the Trustee shall execute, authenticate and deliver, in exchange for

or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new

Certificate of the same Class and initial Certificate Principal Balance. Upon

the issuance of any new Certificate under this Section, the Trustee may require

the payment of a sum sufficient to cover any tax or other governmental charge

that may be imposed in relation thereto and any other expenses (including the

fees and expenses of the Trustee) connected therewith. Any replacement

Certificate issued pursuant to this Section shall constitute complete and

indefeasible evidence of ownership in the Trust Fund, as if originally issued,

whether or not the lost, stolen or destroyed Certificate shall be found at any

time.

 

         SECTION 5.04 Persons Deemed Owners.

 

         The Depositor, the Master Servicer, the Trustee and any agent of any of

them may treat the person in whose name any Certificate is registered as the

owner of such Certificate for the purpose of receiving distributions pursuant to

Section 4.01 and for all other purposes whatsoever, and neither the Depositor,

the Master Servicer, the Trustee nor any agent of any of them shall be affected

by notice to the contrary.

 

ARTICLE VI

 

THE DEPOSITOR AND THE MASTER SERVICER

 

         SECTION 6.01 Liability of the Depositor and the Master Servicer.

 

         The Depositor and the Master Servicer each shall be liable in

accordance herewith only to the extent of the obligations specifically imposed

upon and undertaken by the Depositor and the Master Servicer herein.

 

         SECTION 6.02 Merger, Consolidation or Conversion of the Depositor or

the Master Servicer.

 

         The Depositor and the Master Servicer each will keep in full effect its

existence, rights and franchises as a corporation under the laws of the state of

its incorporation, and each will obtain and preserve its qualification to do

business as a foreign corporation in each jurisdiction in which such

qualification is or shall be necessary to protect the validity and

enforceability of this Agreement, the Certificates or any of the Mortgage Loans

and to perform its respective duties under this Agreement; and provided further

that the Rating Agencies' ratings of the Class A Certificates immediately prior

to such merger or consolidation will not be qualified, reduced or withdrawn as a

result thereof (as evidenced by a letter to such effect from the Rating

Agencies).

 

         Any Person into which the Depositor or the Master Servicer may be

merged, consolidated or converted, or any corporation resulting from any merger

or consolidation to which the Depositor or the Master Servicer shall be a party,

or any Person succeeding to the business of the Depositor or the Master

Servicer, shall be the successor of the Depositor or the Master Servicer, as the

case may be, hereunder, without the execution or filing of any paper or any

further act on the part of any of the parties hereto, anything herein to the

contrary notwithstanding; provided, however, that the successor or surviving

Person to the Master Servicer shall be qualified to sell mortgage loans to and

service mortgage loans for FNMA or FHLMC.

 

         SECTION 6.03 Limitation on Liability of the Depositor, the Master

Servicer and Others.

 

         Neither the Depositor, the Master Servicer nor any of the directors,

officers, employees or agents of the Depositor or the Master Servicer shall be

under any liability to the Trust Fund or the Certificateholders for any action

taken or for refraining from the taking of any action in good faith pursuant to

this Agreement, or for errors in judgment; provided, however, that this

provision shall not protect the Depositor or the Master Servicer (but this

provision shall protect the above described persons) against any breach of

warranties or representations made herein, or against any specific liability

imposed on the Master Servicer pursuant to Section 3.01 or any other Section

hereof; and provided further that this provision shall not protect the

Depositor, the Master Servicer or any such person, against any liability which

would otherwise be imposed by reason of willful misfeasance, bad faith or gross

negligence in the performance of duties or by reason of reckless disregard of

obligations and duties hereunder. The Depositor, the Master Servicer and any

director, officer, employee or agent of the Depositor or the Master Servicer may

rely in good faith on any document of any kind prima facie properly executed and

submitted by any Person respecting any matters arising hereunder. The Depositor,

the Master Servicer and any director, officer, employee or agent of the

Depositor or the Master Servicer shall be indemnified and held harmless by the

Trust Fund against any loss, liability or expense incurred in connection with

any legal action relating to this Agreement or the Certificates, other than any

loss, liability or expense related to Master Servicer's servicing obligations

with respect to any specific Mortgage Loan or Mortgage Loans (except as any such

loss, liability or expense shall be otherwise reimbursable pursuant to this

Agreement) or related to the Master Servicer's obligations under Section 3.01,

or any loss, liability or expense incurred by reason of willful misfeasance, bad

faith or gross negligence in the performance of duties hereunder or by reason of

reckless disregard of obligations and duties hereunder.

 

         Neither the Depositor nor the Master Servicer shall be under any

obligation to appear in, prosecute or defend any legal action which is not

incidental to its respective duties under this Agreement and which in its

opinion may involve it in any expense or liability; provided, however, that the

Depositor or the Master Servicer may in its sole discretion undertake any such

action which it may deem necessary or desirable with respect to this Agreement

and the rights and duties of the parties hereto and the interests of the

Certificateholders hereunder. In such event, the legal expenses and costs of

such action and any liability resulting therefrom (except any action or

liability related to the Master Servicer's obligations under Section 3.01) shall

be expenses, costs and liabilities of the Trust Fund, and the Depositor and the

Master Servicer shall be entitled to be reimbursed therefor from the Certificate

Account as provided in Section 3.11, any such right of reimbursement being prior

to the rights of Certificateholders to receive any amount in the Certificate

Account.

 

         SECTION 6.04 Limitation on Resignation of the Master Servicer.

 

         The Master Servicer shall not resign from the obligations and duties

hereby imposed on it except (a) upon appointment of a successor servicer

reasonably acceptable to the Trustee and upon receipt by the Trustee of a letter

from each Rating Agency that such a resignation and appointment will not, in and

of itself, result in a downgrading of the Certificates or (b) upon determination

that its duties hereunder are no longer permissible under applicable law (any

such determination permitting the resignation of the Master Servicer to be

evidenced by an Opinion of Counsel (at the expense of the resigning Master

Servicer) to such effect delivered to the Trustee). No such resignation shall

become effective until the Trustee or a successor servicer shall have assumed

the Master Servicer's responsibilities, duties, liabilities and obligations

hereunder.

 

ARTICLE VII

 

DEFAULT

 

         SECTION 7.01 Events of Default.

 

         "Event of Default", wherever used herein, means any one of the

following events:

 

                  (i) any failure by the Master Servicer to remit to the Trustee

         for distribution to the Certificateholders any payment (other than an

         Advance) required to be made under the terms of the Certificates or

         this Agreement which continues unremedied for a period of one day after

         the date upon which written notice of such failure, requiring the same

         to be remedied, shall have been given to the Master Servicer by the

         Depositor (with a copy to the Trustee) or the Trustee, or to the Master

         Servicer, the Depositor and the Trustee by the Holders of Certificates

         entitled to at least 25% of the Voting Rights; or

 

                  (ii) any failure on the part of the Master Servicer duly to

         observe or perform in any material respect any other of the covenants

         or agreements on the part of the Master Servicer contained in the

         Certificates or in this Agreement (including any breach of the Master

         Servicer's representations and warranties pursuant to Section 2.03(a)

         which materially and adversely affects the interests of the

         Certificateholders) which continues unremedied for a period of 30 days

         after the date on which written notice of such failure, requiring the

         same to be remedied, shall have been given to the Master Servicer by

         the Depositor (with a copy to the Trustee) or the Trustee, or to the

         Master Servicer, the Depositor and the Trustee by the Holders of

         Certificates entitled to at least 25% of the Voting Rights; or

 

                  (iii) a decree or order of a court or agency or supervisory

         authority having jurisdiction in an involuntary case under any present

         or future federal or state bankruptcy, insolvency or similar law or the

         appointment of a conservator or receiver or liquidator in any

         insolvency, readjustment of debt, marshalling of assets and liabilities

         or similar proceedings, or for the winding-up or liquidation of its

         affairs, shall have been entered against the Master Servicer and such

         decree or order shall have remained in force undischarged or unstayed

         for a period of 60 consecutive days; or

 

                  (iv) the Master Servicer shall consent to the appointment of a

         conservator or receiver or liquidator in any insolvency, readjustment

         of debt, marshalling of assets and liabilities or similar proceedings

         of or relating to the Master Servicer or of or relating to all or

         substantially all of its property; or

 

                  (v) the Master Servicer shall admit in writing its inability

         to pay its debts generally as they become due, file a petition to take

         advantage of or otherwise voluntarily commence a case or proceeding

         under any applicable bankruptcy, insolvency, reorganization or other

         similar statute, make an assignment for the benefit of its creditors,

         or voluntarily suspend payment of its obligations; or

 

                  (vi) the Master Servicer shall fail to deposit in the

         Certificate Account on any Certificate Account Deposit Date an amount

         equal to any required Advance.

 

         If the Master Servicer shall fail to make any deposit in the

Certificate Account as required by Section 4.01, the Trustee shall give the

Master Servicer notice pursuant to clause (i) not later than the Business Day

following the Certificate Account Deposit Date. If an Event of Default described

in clauses (i) - (v) of this Section shall occur, then, and in each and every

such case, so long as such Event of Default shall not have been remedied, the

Depositor or the Trustee may, and at the direction of the Holders of

Certificates entitled to at least 51% of the Voting Rights, the Trustee shall,

by notice to the Master Servicer (and to the Depositor if given by the Trustee

or to the Trustee if given by the Depositor) terminate all of the rights and

obligations of the Master Servicer under this Agreement and in and to the Trust

Fund, other than its rights as a Certificateholder hereunder and the Depositor,

terminate all of the rights and obligations of the Master Servicer under this

Agreement and in and to the Trust Fund, other than its rights as a

Certificateholder hereunder. If an Event of Default described in clause (vi)

hereof shall occur, the Trustee shall, by notice to the Master Servicer and the

Depositor, terminate all of the rights and obligations of the Master Servicer

under this Agreement and in and to the Trust Fund, other than its rights as a

Certificateholder hereunder. On or after the receipt by the Master Servicer of

such notice, all authority and power of the Master Servicer under this

Agreement, whether with respect to the Certificates (other than as a holder

thereof) or the Mortgage Loans or other wise, shall pass to and be vested in the

Trustee pursuant to and under this Section, and, without limitation, the Trustee

is hereby authorized and empowered to execute and deliver, on behalf of the

Master Servicer, as attorney-in-fact or otherwise, any and all documents and

other instru ments, and to do or accomplish all other acts or things necessary

or appropriate to effect the purposes of such notice of termination, whether to

complete the transfer and endorsement or assignment of the Mortgage Loans and

related documents, or otherwise. The Master Servicer agrees to cooperate with

the Trustee in effecting the termination of the Master Servicer's

responsibilities and rights hereunder, including, without limitation, the

transfer to the Trustee or its appointed agent for administration by it of all

cash amounts which shall at the time be deposited by the Master Servicer or

should have been deposited to the Custodial or the Certificate Account or

thereafter be received with respect to the Mortgage Loans. The Trustee shall not

be deemed to have breached any obligation hereunder as a result of a failure to

make or delay in making any distribution as and when required hereunder caused

by the failure of the Master Servicer to remit any amounts received on it or to

deliver any documents held by it with respect to the Mortgage Loans. For

purposes of this Section 7.01, the Trustee shall not be deemed to have knowledge

of an Event of Default unless a Responsible Officer of the Trustee assigned to

and working in the Trustee's Corporate Trust Division has actual knowledge

thereof or unless notice of any event which is in fact such an Event of Default

is received by the Trustee and such notice references the Certificates, the

Trust Fund or this Agreement.

 

         [Notwithstanding any termination of the activities of [Name of Master

Servicer] in its capacity as Master Servicer hereunder, [Name of Master

Servicer] shall be entitled to receive, out of any Late Collection of a Monthly

Payment on a Mortgage Loan which was due prior to the notice terminating [Name

of Master Servicer]'s rights and obligations as Master Servicer hereunder and

received after such notice, that portion to which [Name of Master Servicer]

would have been entitled pursuant to Sections 3.11 (ii), (iii), (iv), (v) and

(viii) and Section 4. 01 (b)(iii) as well as the portion of its related

Servicing Fee in respect thereof, and any other amounts payable to [Name of

Master Servicer] hereunder the entitlement to which arose prior to the

termination of its activities hereunder.]

 

         When a Responsible Officer of the Trustee has actual knowledge of the occurrence of an Event of Default, the Trustee shall promptly notify the Rating Agencies through the Rule 17g-5 Information Provider of the nature and extent of such Event of Default.

 

         SECTION 7.02 Trustee to Act; Appointment of Successor.

 

         On and after the time the Master Servicer receives a notice of

termination pursuant to Section 7.01, the Trustee or its appointed agent shall

be the successor in all respects to the Master Servicer in its capacity as

Master Servicer under this Agreement and the transactions set forth or provided

for herein and shall be subject thereafter to all the responsibilities, duties

and liabilities relating thereto placed on the Master Servicer including the

obligation to make Advances which have been or will be required to be made

(except for the responsibilities, duties and liabilities contained in Section

2.03 and its obligations to deposit amounts in respect of losses incurred prior

to the date of succession pursuant to Section 3.12 and 4.01(e)) by the terms and

provisions hereof; and provided further, that any failure to perform such duties

or responsibilities caused by the Master Servicer's failure to provide

information required by Section 4.03 shall not be considered a default by the

Trustee hereunder. As compensation therefor, the Trustee shall be entitled to

all funds relating to the Mortgage Loans which the Master Servicer would have

been entitled to charge to the Custodial Account and the Certificate Account if

the Master Servicer had continued to act hereunder. Notwithstanding the above,

the Trustee may, if it shall be unwilling to so act, or shall, if it is unable

to so act or if the Holders of Certificates entitled to at least 51% of the

Voting Rights so request in writing to the Trustee, appoint, or petition a court

of competent jurisdiction to appoint, any FNMA-or FHLMC approved mortgage

servicing institution having a net worth of not less than $10,000,000 as the

successor to the Master Servicer hereunder in the assumption of all or any part

of the responsibilities, duties or liabilities of the Master Servicer hereunder.

Pending appointment of a successor to the Master Servicer hereunder, the Trustee

shall act in such capacity as hereinabove provided. In connection with such

appointment and assumption, the Trustee may make such arrangements for the

compensation of such successor out of payments on Mortgage Loans as it and such

successor shall agree; provided, however, that no such compensation shall be in

excess of that permitted the Master Servicer hereunder. The Trustee and such

successor shall take such action, consistent with this Agreement, as shall be

necessary to effectuate any such succession; provided, however, that such

succession shall not reduce the ratings of the Certificates below the original

ratings thereof.

 

         Any successor, including the Trustee, to the Master Servicer shall

maintain in force during its term as master servicer hereunder the Insurance

Policies and fidelity bonds to the same extent as the Master Servicer is so

required pursuant to Sections 3.13 and 3.18.

 

         SECTION 7.03 Notification to Certificateholders.

 

         (a) Upon any such termination or appointment of a successor to the

Master Servicer, the Trustee shall give prompt notice thereof to

Certificateholders.

 

         (b) Within 60 days after the occurrence of any Event of Default, the

Trustee shall transmit by mail to all Holders of Certificates notice of each

such Event of Default hereunder known to the Trustee, unless such Event of

Default shall have been cured or waived.

 

         SECTION 7.04 Waiver of Events of Default.

 

         The Holders representing at least 66% of the Voting Rights of

Certificates affected by a default or Event of Default hereunder, may waive such

default or Event of Default (other than an Event of Default set forth in Section

7.01(vi); provided, however, that (a) a default or Event of Default under clause

(i) of Section 7.01 may be waived only by all of the Holders of Certificates

affected by such default or Event of Default and (b) no waiver pursuant to this

Section 7.04 shall affect the Holders of Certificates in the manner set forth in

the second paragraph of Section 11.01 or materially adversely affect any

non-consenting Certificateholder. Upon any such waiver of a default or Event of

Default by the Holders representing the requisite percentage of Voting Rights of

Certificates affected by such default or Event of Default, such default or Event

of Default shall cease to exist and shall be deemed to have been remedied for

every purpose hereunder. No such waiver shall extend to any subsequent or other

default or Event of Default or impair any right consequent thereon except to the

extent expressly so waived.

 

ARTICLE VIII

 

CONCERNING THE TRUSTEE

 

         SECTION 8.01 Duties of Trustee.

 

         The Trustee, prior to the occurrence of an Event of Default and after

the curing of all Events of Default which may have occurred, undertakes to

perform such duties and only such duties as are specifically set forth in this

Agreement. If an Event of Default occurs and is continuing, the Trustee shall

exercise such of the rights and powers vested in it by this Agreement, and use

the same degree of care and skill in their exercise as a prudent man would

exercise or use under the circumstances in the conduct of his own affairs. Any

permissive right of the Trustee enumerated in this Agreement shall not be

construed as a duty.

 

         The Trustee, upon receipt of all resolutions, certificates, statements,

opinions, reports, documents, orders or other instruments furnished to the

Trustee which are specifically required to be furnished pursuant to any

provision of this Agreement, shall examine them to determine whether they

conform to the requirements of this Agreement. If any such instrument is found

not to conform to the requirements of this Agreement in a material manner, the

Trustee shall take action as it deems appropriate to have the instrument

corrected.

 

         The Trustee shall sign on behalf of the Trust Fund any tax return that

the Trustee is required to sign pursuant to applicable federal, state or local

tax laws.

 

         The Trustee covenants and agrees that it shall perform its obligations

hereunder in a manner so as to maintain the status of the Trust Fund as a REMIC

under the REMIC Provisions and to prevent the imposition of any federal, state

or local income, prohibited transaction, contribution or other tax on the Trust

Fund to the extent that maintaining such status and avoiding such taxes are

reasonably within the control of the Trustee and are reasonably within the scope

of its duties under this Agreement.

 

         No provision of this Agreement shall be construed to relieve the

Trustee from liability for its own negligent action, its own negligent failure

to act or its own misconduct; provided, however, that:

 

                  (i) Prior to the occurrence of an Event of Default, and after

         the curing of all such Events of Default which may have occurred, the

         duties and obligations of the Trustee shall be determined solely by the

         express provisions of this Agreement, the Trustee shall not be liable

         except for the performance of such duties and obligations as are

         specifically set forth in this Agreement, no implied covenants or

         obligations shall be read into this Agreement against the Trustee and,

         in the absence of bad faith on the part of the Trustee, the Trustee may

         conclusively rely, as to the truth of the statements and the

         correctness of the opinions expressed therein, upon any certificates or

         opinions furnished to the Trustee and conforming to the requirements of

         this Agreement;

 

                  (ii) The Trustee shall not be personally liable for an error

         of judgment made in good faith by a Responsible Officer or Responsible

         Officers of the Trustee, unless it shall be proved that the Trustee was

         negligent in ascertaining the pertinent facts;

 

                  (iii) The Trustee shall not be personally liable with respect

         to any action taken, suffered or omitted to be taken by it in good

         faith in accordance with the direction of Holders of Certificates

         entitled to at least 25% of the Voting Rights relating to the time,

         method and place of conducting any proceeding for any remedy available

         to the Trustee, or exercising any trust or power conferred upon the

         Trustee, under this Agreement.

 

         SECTION 8.02 Certain Matters Affecting the Trustee.

 

         Except as otherwise provided in Section 8.01:

 

         (a) The Trustee may request and rely upon and shall be protected in

acting or refraining from acting upon any resolution, Officers' Certificate,

certificate of auditors or any other certificate, statement, instrument,

opinion, report, notice, request, consent, order, appraisal, bond or other paper

or document reasonably believed by it to be genuine and to have been signed or

presented by the proper party or parties;

 

         (b) The Trustee may consult with counsel and any Opinion of Counsel

shall be full and complete authorization and protection in respect of any action

taken or suffered or omitted by it hereunder in good faith and in accordance

therewith;

 

         (c) The Trustee shall be under no obligation to exercise any of the

trusts or powers vested in it by this Agreement or to make any investigation of

matters arising hereunder or to institute, conduct or defend any litigation

hereunder or in relation hereto at the request, order or direction of any of the

Certificateholders, pursuant to the provisions of this Agreement, unless such

Certificateholders shall have offered to the Trustee reasonable security or

indemnity against the costs, expenses and liabilities which may be incurred

therein or thereby; nothing contained herein shall, however, relieve the Trustee

of the obligation, upon the occurrence of an Event of Default (which has not

been cured), to exercise such of the rights and powers vested in it by this

Agreement, and to use the same degree of care and skill in their exercise as a

prudent man would exercise or use under the circumstances in the conduct of his

own affairs;

 

         (d) The Trustee shall not be personally liable for any action taken,

suffered or omitted by it in good faith and believed by it to be authorized or

within the discretion or rights or powers conferred upon it by this Agreement;

 

         (e) Prior to the occurrence of an Event of Default hereunder and after

the curing of all Events of Default which may have occurred, the Trustee shall

not be bound to make any investigation into the facts or matters stated in any

resolution, certificate, statement, instrument, opinion, report, notice,

request, consent, order, approval, bond or other paper or document, unless

requested in writing to do so by Holders of Certificates entitled to at least

25% of the Voting Rights; provided, however, that if the payment within a

reasonable time to the Trustee of the costs, expenses or liabilities likely to

be incurred by it in the making of such investigation is, in the opinion of the

Trustee, not reasonably assured to the Trustee by the security afforded to it by

the terms of this Agreement, the Trustee may require reasonable indemnity

against such expense or liability as a condition to taking any such action. The

reasonable expense of every such reasonable examination shall be paid by the

Master Servicer or, if paid by the Trustee, shall be repaid by the Master

Servicer upon demand; and

 

         (f) The Trustee may execute any of the trusts or powers hereunder or

perform any duties hereunder either directly or by or through agents or

attorneys.

 

         SECTION 8.03 Trustee Not Liable for Certificates or Mortgage Loans.

 

         The recitals contained herein and in the Certificates, other than the

signature of the Trustee on the Certificates and the certificate of

authentication, shall be taken as the state ments of the Depositor or the Master

Servicer, as the case may be, and the Trustee assumes no responsibility for

their correctness. The Trustee makes no representations or warranties as to the

validity or sufficiency of this Agreement or of the Certificates or of any

Mortgage Loan or related document, other than the signature of the Trustee on

the Certificates and the Certificate of Authentication. The Trustee shall not be

accountable for the use or application by the Depositor or the Master Servicer

of any of the Certificates or of the proceeds of such Certificates, or for the

use or application of any funds paid to the Seller in respect of the Mortgage

Loans or deposited in or withdrawn from the Custodial Account or the Certificate

Account or any other account by or on behalf of the Depositor or the Master

Servicer, other than any funds held by or on behalf of the Trustee in accordance

with Section 4.01.

 

         SECTION 8.04 Trustee May Own Certificates.

 

         The Trustee in its individual or any other capacity may become the

owner or pledgee of Certificates with the same rights it would have if it were

not Trustee.

 

         SECTION 8.05 Payment of Trustee's Fees.

 

         The Trustee shall withdraw from the Certificate Account on each

Distribution Date and pay to itself the Trustee's Fee. Except as otherwise

provided in this Agreement, the Trustee and any director, officer, employee or

agent of the Trustee shall be indemnified by the Trust Fund and held harmless

against any loss, liability or "unanticipated out-of-pocket" expense incurred or

paid to third parties (which expenses shall not include salaries paid to

employees, or allocable overhead, of the Trustee) in connection with the

acceptance or administration of its trusts hereunder or the Certificates, other

than any loss, liability or expense incurred by reason of willful misfeasance,

bad faith or negligence in the performance of duties hereunder or by reason of

reckless disregard of obligations and duties hereunder all such amounts shall be

payable from funds in the Custodial Account as provided in Section 3.11. The

provisions of this Section 8.05 shall survive the termination of this Agreement.

 

         The Master Servicer shall indemnify the Trustee and any director,

officer, employee or agent of the Trustee against any loss, liability or expense

that may be sustained in connection with this Agreement related to the willful

misfeasance, bad faith or negligence in the performance of its duties hereunder.

 

         SECTION 8.06 Eligibility Requirements for Trustee.

 

         The Trustee hereunder shall at all times be a corporation or a national

banking association organized and doing business under the laws of any state or

the United States of America or the District of Columbia, authorized under such

laws to exercise corporate trust powers, having a combined capital and surplus

of at least $50,000,000 and subject to supervision or examination by federal or

state authority. In addition, the Trustee shall at all times be acceptable to

the Rating Agency rating the Certificates. If such corporation publishes reports

of condition at least annually, pursuant to law or to the requirements of the

aforesaid supervising or examining authority, then for the purposes of this

Section the combined capital and surplus of such corporation shall be deemed to

be its combined capital and surplus as set forth in its most recent report of

condition so published. In case at any time the Trustee shall cease to be

eligible in accordance with the provisions of this Section, the Trustee shall

resign immediately in the manner and with the effect specified in Section 8.07.

The corporation or national banking association serving as Trustee may have

normal banking and trust relationships with the Seller and its affiliates or the

Master Servicer and its affiliates; provided, however, that such corporation

cannot be an affiliate of the Master Servicer other than the Trustee in its role

as successor to the Master Servicer.

 

         SECTION 8.07 Resignation and Removal of the Trustee.

 

         The Trustee may at any time resign and be discharged from the trusts

hereby created by giving notice thereof to the Depositor, the Master Servicer

and to all Certificateholders; provided, that such resignation shall not be

effective until a successor trustee is appointed and accepts appointment in

accordance with the following provisions. Upon receiving such notice of

resignation, the Depositor shall promptly appoint a successor trustee who meets

the eligibility requirements of Section 8.06 by written instrument, in

duplicate, which instrument shall be delivered to the resigning Trustee and to

the successor trustee. A copy of such instrument shall be delivered to the

Certificateholders and the Master Servicer by the Depositor. If no successor

trustee shall have been so appointed and have accepted appointment within 60

days after the giving of such notice of resignation, the resigning Trustee may

petition any court of competent jurisdiction for the appointment of a successor

trustee; provided, however, that the resigning Trustee shall not resign and be

discharged from the trusts hereby created until such time as the Rating Agency

rating the Certificates approves the successor trustee.

 

         If at any time the Trustee shall cease to be eligible in accordance

with the provisions of Section 8.06 and shall fail to resign after written

request therefor by the Depositor or the Master Servicer, or if at any time the

Trustee shall become incapable of acting, or shall be adjudged bankrupt or

insolvent, or a receiver of the Trustee or of its property shall be appointed,

or any public officer shall take charge or control of the Trustee or of its

property or affairs for the purpose of rehabilitation, conservation or

liquidation, or if the rating of the long-term debt obligations of the Trustee

is not acceptable to the Rating Agency in respect of mortgage pass-through

certificates having a rating equal to the then current rating on the

Certificates, then the Depositor may remove the Trustee and appoint a successor

trustee who meets the eligibility requirements of Section 8.06 by written

instrument, in duplicate, which instrument shall be delivered to the Trustee so

removed and to the successor trustee. A copy of such instrument shall be

delivered to the Certificateholders and the Master Servicer by the Depositor.

 

         The Holders of Certificates entitled to at least 51% of the Voting

Rights may at any time remove the Trustee and appoint a successor trustee by

written instrument or instruments, in triplicate, signed by such Holders or

their attorneys-in-fact duly authorized, one complete set of which instruments

shall be delivered to the Master Servicer, one complete set to the Trustee so

removed and one complete set to the successor so appointed. A copy of such

instrument shall be delivered to the Certificateholders and the Master Servicer

by the Depositor.

 

         Any resignation or removal of the Trustee and appointment of a

successor trustee pursuant to any of the provisions of this Section shall not

become effective until acceptance of appointment by the successor trustee as

provided in Section 8.08.

 

         SECTION 8.08 Successor Trustee.

 

         Any successor trustee appointed as provided in Section 8.07 shall

execute, acknowledge and deliver to the Master Servicer and to its predecessor

trustee an instrument accepting such appointment hereunder, and thereupon the

resignation or removal of the prede cessor trustee shall become effective and

such successor trustee, without any further act, deed or conveyance, shall

become fully vested with all the rights, powers, duties and obligations of its

predecessor hereunder, with the like effect as if originally named as trustee

herein. The predecessor trustee shall deliver to the successor trustee all

Mortgage Files and related documents and statements held by it hereunder, and

the Master Servicer and the predecessor trustee shall execute and deliver such

instruments and do such other things as may reasonably be required for more

fully and certainly vesting and confirming in the successor trustee all such

rights, powers, duties and obligations.

 

         No successor trustee shall accept appointment as provided in this

Section unless at the time of such acceptance such successor trustee shall be

eligible under the provisions of Section 8.06.

 

         Upon acceptance of appointment by a successor trustee as provided in

this Section, the Master Servicer shall mail notice of the succession of such

trustee hereunder to all Holders of Certificates at their addresses as shown in

the Certificate Register. If the Master Servicer fails to mail such notice

within ten days after acceptance of appointment by the successor trustee, the

successor trustee shall cause such notice to be mailed at the expense of the

Master Servicer.  The successor trustee shall notify the Rating Agencies through the Rule 17g-5 Information Provider and the Master Servicer of any change of Trustee.

 

         SECTION 8.09 Merger or Consolidation of Trustee.

 

         Any corporation into which the Trustee may be merged or converted or

with which it may be consolidated or any corporation resulting from any merger,

conversion or consolidation to which the Trustee shall be a party, or any

corporation succeeding to the business of the Trustee, shall be the successor of

the Trustee hereunder, provided such corporation shall be eligible under the

provisions of Section 8.06, without the execution or filing of any paper or any

further act on the part of any of the parties hereto, anything herein to the

contrary notwithstanding.

 

         SECTION 8.10 Appointment of Co-Trustee or Separate Trustee.

 

         Notwithstanding any other provisions hereof, at any time, for the

purpose of meeting any legal requirements of any jurisdiction in which any part

of the Trust Fund or property securing the same may at the time be located, the

Depositor and the Trustee acting jointly shall have the power and shall execute

and deliver all instruments to appoint one or more Persons approved by the

Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or

separate trustee or separate trustees, of all or any part of the Trust Fund, and

to vest in such Person or Persons, in such capacity, such title to the Trust

Fund, or any part thereof, and, subject to the other provisions of this Section

8. 10, such powers, duties, obligations, rights and trusts as the Depositor and

the Trustee may consider necessary or desirable. If the Depositor shall not have

joined in such appointment within 15 days after the receipt by it of a request

so to do, or in case an Event of Default shall have occurred and be continuing,

the Trustee alone shall have the power to make such appointment. No co-trustee

or separate trustee hereunder shall be required to meet the terms of eligibility

as a successor trustee under Section 8.06 hereunder and no notice to Holders of

Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be

required under Section 8.08 hereof.

 

         In the case of any appointment of a co-trustee or separate trustee

pursuant to this Section 8. 10 all rights, powers, duties and obligations

conferred or imposed upon the Trustee shall be conferred or imposed upon and

exercised or performed by the Trustee and such separate trustee or co-trustee

jointly, except to the extent that under any law of any jurisdiction in which

any particular act or acts are to be performed (whether as Trustee hereunder or

as successor to the Master Servicer hereunder), the Trustee shall be incompetent

or unqualified to perform such act or acts, in which event such rights, powers,

duties and obligations (including the holding of title to the Trust Fund or any

portion thereof in any such jurisdiction) shall be exercised and performed by

such separate trustee or co-trustee at the direction of the Trustee.

 

         Any notice, request or other writing given to the Trustee shall be

deemed to have been given to each of the then separate trustees and co-trustees,

as effectively as if given to each of them. Every instrument appointing any

separate trustee or co-trustee shall refer to this Agreement and the conditions

of this Article VIII.. Each separate trustee and co-trustee, upon its acceptance

of the trusts conferred, shall be vested with the estates or property specified

in its instrument of appointment, either jointly with the Trustee or separately,

as may be provided therein, subject to all the provisions of this Agreement,

specifically including every provision of this Agreement relating to the conduct

of, affecting the liability of, or affording protection to, the Trustee. Every

such instrument shall be filed with the Trustee.

 

         Any separate trustee or co-trustee may, at any time, constitute the

Trustee, its agent or attorney-in-fact, with full power and authority, to the

extent not prohibited by law, to do any lawful act under or in respect of this

Agreement on its behalf and in its name. If any separate trustee or co-trustee

shall die, become incapable of acting, resign or be removed, all of its estates,

properties, rights, remedies and trusts shall vest in and be exercised by the

Trustee, to the extent permitted by law, without the appointment of a new or

successor trustee.

 

         SECTION 8.11 Commission Reporting.

 

         (a) (i) Within 15 days after each Distribution Date, the Trustee shall,

in accordance with industry standards, file with the Commission via the

Electronic Data Gathering and Retrieval System ("EDGAR"), a Distribution Report

on Form 10-D, signed by the Master Servicer, with a copy of the monthly

statement to be furnished by the Trustee to the Certificateholders for such

Distribution Date and detailing all data elements specified in Item 1121(a) of

Regulation AB as part of the monthly statement; provided that the Trustee shall

have received no later than 2 days prior to the date such Distribution Report on

Form 10-D is required to be provided to the Trustee as described in clause

(a)(iv) below, the following information:

 

         (A) Notice of any material modifications, extensions or waivers to

Mortgage Loan terms, fees, penalties or payments during the distribution period

or that have cumulatively become material over time from the Master Servicer;

 

         (B) Notice of any new issuance of asset-backed securities backed by the

same asset pool, any pool asset changes, such as Mortgage Loan substitutions and

repurchases, and cash flows available for future purchases, if applicable from

the Seller;

 

         (C) A brief description of any legal proceedings pending, including

proceedings known to be contemplated by governmental authorities, against the

Depositor, Seller and the Master Servicer or of which any property of the

foregoing is the subject, that is material to Certificateholders from each of

the Depositor, Seller and the Master Servicer if applicable;

 

         (D) The information required by Item 2 of Part II of Form 10-Q

regarding any sale of securities that are either backed by the same asset pool

or are otherwise issued by the issuer, regardless of whether the transaction was

registered under the Securities Act of 1933 during the period covered by the

report, from the Seller;

 

         (E) The information required by Item 3 of Part II of Form 10-Q with

respect to defaults upon the senior securities during the period covered by the

report, from the Seller;

 

         (F) Any information required to be disclosed in a report on Form 8-K

during the period covered by the report on the Form 10-D, but not reported,

whether or not otherwise required by the Form 10-D from the Seller and the

Master Servicer; and

 

         (G) Any exhibits to the Form 10-D from the Seller.

 

         (ii) The Trustee will prepare and file Current Reports on Form 8-K in

respect of the Trust, signed by the Master Servicer, at the direction and

expense of the Depositor, provided, that, the Depositor, the Seller or the

Master Servicer shall have timely notified the Trustee of an item reportable on

a Current Report on Form 8-K and shall have delivered to the Trustee no later

than one Business Days prior to the filing deadline for such Current Report, all

information, data, and exhibits required to be provided to the Trustee as

described in clause (a)(iv) below or filed with such Current Report with respect

to:

 

         (A) Any entry into a material definitive agreement, any termination of

a material definitive agreement and any bankruptcy or receivership of the

Depositor, the Seller or the Master Servicer (including any servicer that does

not sign the pooling and servicing agreement and any subservicer that signs a

subservicing agreement) from the Depositor, the Seller or the Master Servicer as

applicable;

 

         (B) Any material modification to the rights of Certificateholders,

amendments of the articles of incorporation or bylaws or a change of the fiscal

year of any transaction party from each of the Depositor, the Seller or the

Master Servicer as applicable; and

 

         (C) Any Securities Act update provided by the Seller.

 

         (iii) Prior to January 30 in each year commencing in 2007, the Trustee

shall, in accordance with industry standards, file a Form 15 Suspension Notice

with respect to the Trust Fund, if applicable. Prior to (x) March 15, 2007 and

(y) unless and until a Form 15 Suspension Notice shall have been filed, prior to

March 15 of each year thereafter, the Master Servicer shall provide the Trustee

with an Annual Compliance Statement, together with a copy of the Assessment of

Compliance and Attestation Report to be delivered by the Master Servicer

pursuant to Sections 3.13 and 3.14. Prior to (x) March 31, 2007 and (y) unless

and until a Form 15 Suspension Notice shall have been filed, March 31 of each

year thereafter, the Trustee shall, subject to subsection (d) below, file a Form

10-K, in substance conforming to industry standards, with respect to the Trust

Fund. Such Form 10-K shall include the Assessment of Compliance, Attestation

Report, Annual Compliance Statements and other documentation provided by the

Master Servicer pursuant to Sections 3.16 and 3.17 and a certification in the

form attached hereto as Exhibit K (the "Depositor Certification"), which shall

be signed by the senior officer of the Depositor in charge of securitization.

The Depositor, Seller and the Master Servicer shall provide the Trustee with the

following information, as applicable, no later than March 1 of each calendar

year prior to the filing deadline for the Form 10-K and required to be provided

to the Trustee as described in clause (a)(iv) below:

 

         (A) Any exhibits or financial statement schedules required by Item 15

of Form 10-K from each of the Depositor, Seller and the Master Servicer;

 

         (B) A description of any legal proceedings pending, including

proceedings known to be contemplated by governmental authorities, against the

Depositor, Seller and the Master Servicer or of which any property of the

foregoing is the subject, that is material to Certificateholders from each of

the Depositor, Seller and the Master Servicer if applicable;

 

         (D) A description of any affiliations between the transaction parties

pursuant to Item 1119 of Regulation AB from the Seller; and

 

         (E) The Assessment of Compliance, Attestation Report, Annual Compliance

Statements and other documentation provided by the Master Servicer pursuant to

Sections 3.19 and 3.20. (iv) As to each item of information required to be

included in any Form 10-D, Form 8-K or Form 10-K, the Trustee's obligation to

include the information in the applicable report is subject to receipt from the

entity that is indicated in Exhibit __ as the responsible party for providing

that information, if other than the Trustee, as and when required as described

above. Each of the Master Servicer, Seller and Depositor hereby agree to notify

and provide to the Trustee all information that is required to be included in

any Form 10-D, Form 8-K or Form 10-K, with respect to which that entity is

indicated in Exhibit __ as the responsible party for providing that information.

[The Swap Provider will be obligated pursuant to the Swap Agreement to provide

to the Trustee any information that may be required to be included in any Form

10-D, Form 8-K or Form 10-K. The Trustee shall be responsible for determining

the significance percentage (as defined in Item 1115 of Regulation AB) of the

Swap Provider at any time. The Master Servicer shall be responsible for

determining the pool concentration applicable to any subservicer or originator

at any time, for purposes of disclosure as required by Items 1117 and 1119 of

Regulation AB.]

 

         (v) The Depositor hereby grants to the Master Servicer a limited power

of attorney to sign each Form 10-D, Form 8-K and Form 10-K on behalf of the

Depositor. Such power of attorney shall continue until either the earlier of (x)

receipt by the Master Servicer from the Depositor of written termination of such

power of attorney and (y) the termination of the Trust Fund. The Depositor

agrees to promptly furnish to the Trustee, from time to time upon request, such

further information, reports and financial statements within its control related

to this Agreement, the Mortgage Loans as the Trustee reasonably deems

appropriate to prepare and file all necessary reports with the Commission. The

Trustee shall have no responsibility to file any items other than those

specified in this Section 8.11; provided, however, the Trustee will cooperate

with the Depositor in connection with any additional filings with respect to the

Trust Fund as the Depositor deems necessary under the Exchange Act. Copies of all reports filed by the

Trustee under the Exchange Act shall be sent to: the Depositor c/o

[_____________________________]. Fees and expenses incurred by the Trustee in

connection with this Section 8.11 shall not be reimbursable from the Trust Fund.

 

         (b) Not later than 15 calendar days before the date on which the

Depositor's annual report on Form 10-K is required to be filed in accordance

with the Exchange Act and the rules and regulations of the Commission (or, if

such day is not a Business Day, the immediately preceding Business Day), the

Trustee shall sign a certification in the form attached hereto as Exhibit L (the

"Trustee Certification") for the benefit of the Depositor and its officers,

directors and affiliates regarding certain aspects of items 1 through 3 of the

Depositor Certification. In addition, the Trustee shall, subject to the

provisions of Section 8.01 and 8.02 hereof, indemnify and hold harmless the

Depositor and each Person, if any, who "controls" the Depositor within the

meaning of the Securities Act and its officers, directors and affiliates from

and against any losses, damages, penalties, fines, forfeitures, reasonable and

necessary legal fees and related costs, judgments and other costs and expenses

arising out of or based upon a breach of the Trustee's obligations under this

Section 8.11 or any inaccuracy made in the Trustee Certification. If the

indemnification provided for in this Section 8.11(b) is unavailable or

insufficient to hold harmless such Persons, then the Trustee shall contribute to

the amount paid or payable by such Persons as a result of the losses, claims,

damages or liabilities of such Persons in such proportion as is appropriate to

reflect the relative fault of the Depositor on the one hand and the Trustee on

the other. The Trustee acknowledges that the Depositor is relying on the

Trustee's performance of its obligations under this Section 8.11 in order to

perform its obligations under Section 8.11(a) above.

 

         (c) Not later than 15 calendar days before the date on which the

Depositor's annual report on Form 10-K is required to be filed in accordance

with the Exchange Act and the rules and regulations of the Commission (or, if

such day is not a Business Day, the immediately preceding Business Day), the

Master Servicer will deliver to the Depositor and the Trustee an Officer's

Certificate for the prior calendar year in substantially the form of Exhibit M

to this Agreement. The Master Servicer agrees to indemnify and hold harmless the

Depositor, the Trustee and each Person, if any, who "controls" the Depositor or

the Trustee within the meaning of the Securities Act and their respective

officers, directors and affiliates from and against any losses, damages,

penalties, fines, forfeitures, reasonable and necessary legal fees and related

costs, judgments and other costs, fees and expenses that such Person may sustain

arising out of third party claims based on (i) the failure of the Master

Servicer to deliver or caused to be delivered when required any Officer's

Certificate pursuant to this Section 8.11(c), or (ii) any material misstatement

or omission contained in any Officer's Certificate provided pursuant to this

Section 8.11(c). If an event occurs that would otherwise result in an

indemnification obligation under clauses (i) or (ii) above, but the

indemnification provided for in this Section 8.11(c) by such Servicer is

unavailable or insufficient to hold harmless such Persons, then such Servicer

shall contribute to the amount paid or payable by such Persons as a result of

the losses, claims, damages or liabilities of such Persons in such proportion as

is appropriate to reflect the relative fault of the Depositor or Trustee on the

one hand and such Servicer on the other. Each Servicer acknowledges that the

Depositor and the Trustee are relying on the Master Servicer's performance of

its obligations under this Agreement in order to perform their respective

obligations under this Section 8.11. (d) .....Nothing shall be construed from

the foregoing subsections (a), (b) and (c) to require the Trustee or any

officer, director or Affiliate thereof to sign any Form 10-K or any

certification contained therein. Furthermore, the inability of the Trustee to

file a Form 10-K as a result of the lack of required information as set forth in

Section 8.11(a) or required signatures on such Form 10-K or any certification

contained therein shall not be regarded as a breach by the Trustee of any

obligation under this Agreement.

 

         (e) Notwithstanding the provisions of Section 10.01, this Section 8.12

may be amended without the consent of the Certificateholders.

 

         (f) Upon any filing with the Commission, the Trustee shall promptly

deliver to the Depositor a copy of any executed report, statement or

information.

 

ARTICLE IX

 

TERMINATION

 

         SECTION 9.01 Termination Upon Repurchase or Liquidation of All Mortgage

Loans.

 

         Subject to Section 9.02, the respective obligations and

responsibilities of the Depositor, the Master Servicer and the Trustee created

hereby (other than the obligations of the Master Servicer to provide for and the

Trustee to make payments to Certificateholders as hereafter set forth) shall

terminate upon payment to the Certificateholders of all amounts held by or on

behalf of the Trustee and required to be paid to them hereunder following the

earlier to occur of (i) the repurchase by the Master Servicer of all Mortgage

Loans and each REO Property in respect thereof remaining in the Trust Fund at a

price equal to (a) 100% of the unpaid principal balance of each Mortgage Loan

(other than one as to which a REO Property was acquired) on the day of

repurchase together with accrued interest on such unpaid principal balance at

the related Net Mortgage Rate to the first day of the month in which the

proceeds of such repurchase are to be distributed, plus (b) the appraised value

of any REO Property less the good faith estimate of the Master Servicer of

liquidation expenses to be incurred in connection with its disposal thereof,

such appraisal to be conducted by an appraiser mutually agreed upon by the

Master Servicer and the Trustee at the expense of the Master Servicer, (but not

more than the unpaid principal balance of the related Mortgage Loan, together

with accrued interest on that balance at the Net Mortgage Rate to the first day

of the month of repurchase), and (ii) the final payment or other liquidation (or

any Advance with respect thereto) of the last Mortgage Loan remaining in the

Trust Fund (or the disposition of all REO Property in respect thereof);

provided, however, that in no event shall the trust created hereby continue

beyond expiration of 21 years from the death of the last survivor of the

descendants of Joseph P. Kennedy, the late ambassador of the United States to

the Court of St. James, living on the date hereof. In the case of any repurchase

by the Master Servicer pursuant to clause (i), the Master Servicer shall include

in such repurchase price the amount of any Advances that will be reimbursed to

the Master Servicer pursuant to Section 3.11 (iii) and the Master Servicer shall

exercise reasonable efforts to cooperate fully with the Trustee in effecting

such repurchase and the transfer of the Mortgage Loans and related Mortgage

Files and related records to the Master Servicer.

 

         The right of the Master Servicer to repurchase all Mortgage Loans

pursuant to (i) above shall be conditioned upon the aggregate Stated Principal

Balance of such Mortgage Loans at the time of any such repurchase aggregating an

amount equal to or less than ___% of the aggregate Stated Principal Balance of

the Mortgage Loans at the Cut-off Date. If such right is exercised, the Master

Servicer upon such repurchase shall provide to the Trustee, the certification

required by Section 3.16.

 

         Notice of any termination, specifying the Distribution Date upon which

the Certificateholders may surrender their Certificates to the Trustee for

payment of the final distri bution and cancellation, shall be given promptly by

the Master Servicer by letter to the Trustee and shall be given promptly by the

Trustee to the Certificateholders mailed (a) in the event such notice is given

in connection with the Master Servicer's election to repurchase, not earlier

than the 15th day and not later than the 25th day of the month next preceding

the month of such final distribution or (b) otherwise during the month of such

final distribution on or before the Determination Date in such month, in each

case specifying (i) the Distribution Date upon which final payment of the

Certificates will be made upon presentation and surrender of Certificates at the

office of the Certificate Registrar therein designated, (ii) the amount of any

such final payment and (iii) that the Record Date otherwise applicable to such

Distribution Date is not applicable, payments being made only upon presentation

and surrender of the Certificates at the office of the Certificate Registrar

therein specified. In the event such notice is given in connection with the

Master Servicer's election to repurchase, the Master Servicer shall deposit in

the Custodial Account pursuant to Section 3. 10 on the last day of the related

Prepayment Period an amount equal to the above-described repurchase price

payable out of its own funds. Upon presentation and surrender of the

Certificates by the Certificateholders, the Trustee shall distribute to the

Certificateholders (i) the amount otherwise distributable on such Distribution

Date, if not in connection with the Master Servicer's election to repurchase, or

(ii) if the Master Servicer elected to so repurchase, an amount determined as

follows: with respect to each Class A and Class B Certificate, the outstanding

Certificate Principal Balance thereof, plus one month's interest thereon at the

applicable Pass-Through Rate and any previously unpaid Accrued Certificate

Interest, subject to the priority set forth in Section 4.01(b); and with respect

to each Class R Certificate, the Percentage Interest evidenced thereby

multiplied by the difference, if any, between the above described repurchase

price and the aggregate amount to be distributed to the Class A and Class B

Certificateholders. Upon certification to the Trustee by a Servicing Officer,

following such final deposit, the Trustee shall promptly release the Mortgage

Files as directed by the Master Servicer for the remaining Mortgage Loans, and

the Trustee shall execute all assignments, endorsements and other instruments

required by the Master Servicer as being necessary to effectuate such transfer.

 

         In the event that all of the Certificateholders shall not surrender

their Certificates for cancellation within six months after the time specified

in the above-mentioned notice, the Trustee shall give a second notice to the

remaining Certificateholders to surrender their Certificates for cancellation

and receive the final distribution with respect thereto. If within six months

after the second notice all of the Certificates shall not have been surrendered

for cancellation, the Trustee shall take reasonable steps as directed by the

Depositor, or appoint an agent to take reasonable steps, to contact the

remaining Certificateholders concerning surrender of their Certificates, and the

cost thereof shall be paid out of the funds and other assets which remain

subject hereto. If, within nine months after the second notice, all of the

Certificates shall not have been surrendered for cancellation, the Class R

Certificateholders shall be entitled to all unclaimed funds and other assets

which remain subject hereto.

 

         SECTION 9.02 Additional Termination Requirements.

 

         (a) In the event the Master Servicer repurchases the Mortgage Loans as

provided in Section 9.01, the Trust Fund shall be terminated in accordance with

the following additional requirements, unless the Master Servicer obtains for

the Trustee an Opinion of Counsel to the effect that the failure of the Trust

Fund to comply with the requirements of this Section 9.02 will not (i) result in

the imposition of taxes on the net income derived from "prohibited transactions"

of the Trust Fund as defined in Section 86OF of the Code or (ii) cause the Trust

Fund to fail to qualify as a REMIC at any time that any Certificates are

outstanding:

 

                  (i) The Trustee shall establish a 90-day liquidation period

         and specify the first day of such period in a statement attached to the

         Trust Fund's final Tax Return pursuant to Treasury Regulation

         (S)1.86OF-1. The Trustee shall satisfy all the requirements of a

         qualified liquidation under 86OF of the Code and any regulations

         thereunder, as evidenced by an Opinion of Counsel obtained at the

         expense of the Master Servicer;

 

                  (ii) During such 90-day liquidation period, and at or prior to

         the time of making of the final payment on the Certificates, the Master

         Servicer shall sell all of the assets of the Trust Fund for cash; and

 

                  (iii) At the time of the making of the final payment on the

         Certificates, the Trustee shall distribute or credit, or cause to be

         distributed or credited, to the Holders of the Class R Certificates all

         remaining cash on hand (other than cash retained to meet claims), and

         the Trust Fund shall terminate at that time.

 

         (b) By their acceptance of the Class R Certificates, the Holders

thereof hereby agree to authorize the Trustee to specify the 90-day liquidation

period for the Trust Fund, which authorization shall be binding upon all

successor Class R Certificateholders.

 

ARTICLE X

 

REMIC PROVISIONS

 

         SECTION 10.01 REMIC Administration.

 

         (a) The Trustee shall make an election to treat the Trust Fund as a

REMIC under the Code and, if necessary, under applicable state law. Such

election will be made on Form 1066 or other appropriate federal tax or

information return or any appropriate state return for the taxable year ending

on the last day of the calendar year in which the Certificates are issued. For

the purposes of the REMIC election in respect of the Trust Fund, the Class A and

Class B Certificates shall be designated as the "regular interests" and the

Class R Certificates shall be designated as the sole class of "residual

interest" in the Trust Fund. The Trustee shall not permit the creation of any

"interests" in the Trust Fund (within the meaning of Section 86OG of the Code)

other than the Regular Certificates and the Residual Certificates.

 

         (b) The Closing Date is hereby designated as the "startup day" of the

Trust Fund within the meaning of Section 86OG(a)(9) of the Code.

 

         (c) The Trustee shall hold a Class R Certificate representing a 0.01 %

Percentage interest of all Class R Certificates and shall be designated as the

tax matters person of the Trust Fund in the manner provided under Treasury

regulations section 1.86OF-4(d) and temporary Treasury regulations section

301.6231(a)(7)-1T. The Trustee, as tax matters person, shall (i) act on behalf

of the Trust Fund in relation to any tax matter or controversy involving the

Trust Fund and (ii) represent the Trust Fund in any administrative or judicial

proceeding relating to an examination or audit by any governmental taxing

authority with respect thereto. To the extent authorized under the Code and the

regulations promulgated thereunder, each Holder of a Class R Certificate, hereby

irrevocably appoints and authorizes the Trustee to be its attorney-in-fact for

purposes of signing any Tax Returns required to be filed on behalf of the Trust

Fund. The legal expenses and costs of any such action described in this

subsection and any liability resulting therefrom shall constitute expenses of

the Trust Fund and the Trustee shall be entitled to reimbursement therefor

unless such legal expenses and costs are incurred by reason of the Trustee's

willful misfeasance, bad faith or negligence.

 

         (d) Except as provided in Section 4.05, the Trustee shall prepare or

cause to be prepared, sign and file all of the Tax Returns in respect of the

Trust Fund created hereunder. The expenses of preparing and filing such returns

shall be borne by the Trustee without any right of reimbursement therefor.

 

         (e) The Trustee shall perform on behalf of the Trust Fund all reporting

and other tax compliance duties that are the responsibility of the Trust Fund

under the Code, REMIC Provisions or other compliance guidance issued by the

Internal Revenue Service or any state or local taxing authority. Among its other

duties, as required by the Code, the REMIC Provisions or other such compliance

guidance, the Trustee shall provide (i) to any Transferor of a Class R

Certificate such information as is necessary for the application of any tax

relating to the transfer of a Class R Certificate to any Person who is not a

Permitted Transferee, (ii) Certificateholders such information or reports as are

required by the Code or the REMIC Provisions including reports relating to

interest, original issue discount and market discount or premium (using the

Prepayment Assumption) and (iii) to the Internal Revenue Service the name,

title, address and telephone number of the person who will serve as the

representative of the Trust Fund. In addition, the Depositor shall provide or

cause to be provided to the Trustee, within ten (10) days after the Closing

Date, all information or data that the Trustee reasonably determines to be

relevant for tax purposes as to the valuations and issue prices of the

Certificates, including, without limitation, the price, yield, prepayment

assumption and projected cash flow of the Certificates.

 

         (f) The Trustee shall take such action and shall cause the Trust Fund

created hereunder to take such action as shall be necessary to create or

maintain the status thereof as a REMIC under the REMIC Provisions (and the

Master Servicer shall assist it, to the extent reasonably requested by it). The

Trustee shall not take any action, cause the Trust Fund to take any action or

fail to take (or fail to cause to be taken) any action that, under the REMIC

Provisions, if taken or not taken, as the case may be, could (i) endanger the

status of the Trust Fund as a REMIC or (ii) result in the imposition of a tax

upon the Trust Fund (including but not limited to the tax on prohibited

transactions as defined in Section 86OF(a)(2) of the Code and the tax on

contributions to a REMIC set forth in Section 86OG(d) of the Code) (either such

event, an "Adverse REMIC Event") unless the Trustee received an Opinion of

Counsel (at the expense of the party seeking to take such action but in no event

shall such Opinion of Counsel be an expense of the Trustee) to the effect that

the contemplated action will not, with respect to the Trust Fund created

hereunder, endanger such status or result in the imposition of such a tax. The

Master Servicer shall not take or fail to take any action (whether or not

authorized hereunder) as to which the Trustee has advised it in writing that it

has received an Opinion of Counsel to the effect that an Adverse REMIC Event

could occur with respect to such action. In addition, prior to taking any action

with respect to the Trust Fund or its assets, or causing the Trust Fund to take

any action, which is not expressly permitted under the terms of this Agreement,

the Master Servicer will consult with the Trustee or its designee, in writing,

with respect to whether such action could cause an Adverse REMIC Event to occur

with respect to the Trust Fund, and the Master Servicer shall not take any such

action or cause the Trust Fund to take any such action as to which the Trustee

has advised it in writing that an Adverse REMIC Event could occur. The Trustee

may consult with counsel to make such written advice, and the cost of same shall

be borne by the party seeking to take the action not permitted by this Agreement

(but in no event shall such cost be an expense of the Trustee). At all times as

may be required by the Code, the Trustee will ensure that substantially all of

the assets of the Trust Fund will consist of "qualified mortgages" as defined in

Section 86OG(a)(3) of the Code and "permitted investments" as defined in Section

86OG(a)(5) of the Code.

 

         (g) In the event that any tax is imposed on "prohibited transactions"

of the Trust Fund created hereunder as defined in Section 86OF(a)(2) of the

Code, on "net income from foreclosure property" of the Trust Fund as defined in

Section 86OG(c) of the Code, on any contributions to the Trust Fund after the

Startup Day therefor pursuant to Section 86OG(d) of the Code, or any other tax

is imposed by the Code or any applicable provisions of state or local tax laws,

such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,

if such tax arises out of or results from the willful misfeasance, bad faith or

negligence in performance by the Trustee of any of its obligations under this

Article X, (ii) to the Master Servicer pursuant to Section 10.03 hereof, if such

tax arises out of or results from a breach by the Master Servicer of any of its

obligations under Article III or this Article X, or otherwise (iii) against

amounts on deposit in the Custodial Account and shall be paid by withdrawal

therefrom.

 

         (h) On or before April 15 of each calendar year, commencing April 15,

20_, the Trustee shall deliver to the Master Servicer and each Rating Agency a

Certificate from a Responsible Officer of the Trustee stating the Trustee's

compliance with this Article X.

 

         (i) The Master Servicer and the Trustee shall, for federal income tax

purposes, maintain books and records with respect to the Trust Fund on a

calendar year and on an accrual basis.

 

         (j) Following the Startup Day, the Trustee shall not accept any

contributions of assets to the Trust Fund other than in connection with any

Qualified Substitute Mortgage Loan delivered in accordance with Section 2.04

unless it shall have received an Opinion of Counsel (which such Opinion of

Counsel shall not be an expense of the Trustee) to the effect that the inclusion

of such assets in the Trust Fund will not cause the Trust Fund to fail to

qualify as a REMIC at any time that any Certificates are outstanding or subject

the Trust Fund to any tax under the REMIC Provisions or other applicable

provisions of federal, state and local law or ordinances.

 

         (k) Neither the Trustee nor the Master Servicer shall enter into any

arrangement by which the Trust Fund will receive a fee or other compensation for

services nor permit either such REMIC to receive any income from assets other

than "qualified mortgages" as defined in Section 86OG(a)(3) of the Code or

"permitted investments" as defined in Section 86OG(a)(5) of the Code.

 

         (l) Solely for purposes of satisfying Section 1.86OG-1(a)(4)(iii) of

the Treasury regulations, and based on certain assumptions described below, the

"latest possible maturity date" by which the Certificate Principal Balances of

the Certificates representing a regular interest in the Trust Fund would be

reduced to zero is __________ 25, 20__, which is the Distribution Date

immediately following the latest scheduled maturity of any Mortgage Loan as

determined assuming that (i) scheduled interest and principal payments on the

Mortgage Loans are received in a timely manner, with no delinquencies or losses,

(ii) there are no principal prepayments, and (iii) neither the Seller nor the

Master Servicer will repurchase any Mortgage Loans.

 

         SECTION 10.02 Prohibited Transactions and Activities.

 

         Neither the Depositor, the Master Servicer nor the Trustee shall sell,

dispose of or substitute for any of the Mortgage Loans (except in connection

with (i) the foreclosure of a Mortgage Loan, including but not limited to, the

acquisition or sale of a Mortgaged Property acquired by deed in lieu of

foreclosure, (ii) the bankruptcy of the Trust Fund, (iii) the termination of the

Trust Fund pursuant to Article IX of this Agreement or (iv) a purchase of

Mortgage Loans pursuant to Article II or III of this Agreement) nor acquire any

assets for the Trust Fund, nor sell or dispose of any investments in the

Custodial Account or the Certificate Account for gain, nor accept any

contributions to the Trust Fund after the Closing Date unless it has received an

Opinion of Counsel (at the expense of the party seeking to cause such sale,

disposition, substitution or acquisition but in no event shall such Opinion of

Counsel be an expense of the Trustee) that such sale, disposition, substitution

or acquisition will not (a) affect adversely the status of the Trust Fund as a

REMIC or (b) cause the Trust Fund to be subject to a tax on "prohibited

transactions" or "contributions" pursuant to the REMIC Provisions.

 

         SECTION 10.03 Master Servicer and Trustee Indemnification.

 

         (a) The Trustee agrees to indemnify the Trust Fund, the Depositor and

the Master Servicer for any taxes and costs including, without limitation, any

reasonable attorneys fees imposed on or incurred by the Trust Fund, the

Depositor or the Master Servicer, as a result of the willful misfeasance, bad

faith or negligence by the Trustee with respect to the Trustee's covenants set

forth in this Article X.

 

         (b) The Master Servicer agrees to indemnify the Trust Fund, the

Depositor and the Trustee for any taxes and costs (including, without

limitation, any reasonable attorneys' fees) imposed on or incurred by the Trust

Fund, the Depositor or the Trustee, as a result of a breach of the Master

Servicer's covenants set forth in this Article X or in Article III with respect

to compliance with the REMIC Provisions, including without limitation, any

penalties arising from the Trustee's execution of Tax Returns prepared by the

Master Servicer that contain errors or omissions.

 

ARTICLE XI

 

MISCELLANEOUS PROVISIONS

 

         SECTION 11.01 Amendment.

 

         This Agreement may be amended from time to time by the Depositor, the

Master Servicer and the Trustee without the consent of any of the

Certificateholders, (i) to cure any ambiguity, (ii) to correct or supplement any

provisions herein which may be defective or inconsistent with any other

provisions herein or to correct any error, (iii) to change the timing and/or

nature of deposits in the Certificate Account, provided that (a) such change

would not adversely affect in any material respect the interests of any

Certificateholder, as evidenced by an Opinion of Counsel, and (b) such change

would not adversely affect the then-current rating of any rated class of

Certificates, as evidenced by a letter from each applicable Rating Agency, (iv)

to modify, eliminate or add to any of the provisions of the Trust Fund (a) to

such extent as shall be necessary to maintain the qualification of the Trust

Fund as a REMIC or to avoid or minimize the risk of imposition of any tax on the

Trust Fund, provided that the Trustee has received an Opinion of Counsel to the

effect that (1) such action is necessary or desirable to maintain such

qualification or to avoid or minimize such risk, and (2) such action will not

adversely affect in any material respect the interests of any Certificateholder,

or (b) to restrict the transfer of the Class R Certificates, provided that the

Depositor has determined that the then- current ratings of the Class A

Certificates will not be adversely affected, as evidenced by a letter from each

Rating Agency, and that any such amendment will not give rise to any tax with

respect to the transfer of the Class R Certificates to a non-Permitted

Transferee, (v) to make any other provisions with respect to matters or

questions arising this Agreement which are not materially inconsistent with the

provisions thereof, provided that such action will not adversely affect in any

material respect the interests of any Certificateholder, or (vi) to amend

specified provisions that are not material to holders of any class of

Certificates offered hereunder.

 

         This Agreement may also be amended from time to time by the Depositor,

the Master Servicer and the Trustee with the consent of the Holders of

Certificates entitled to at least 66-2/3% of the Voting Rights allocated to each

Class affected thereby for the purpose of adding any provisions to or changing

in any manner or eliminating any of the provisions of this Agreement or of

modifying in any manner the rights of the Holders of Certificates; provided,

however, that no such amendment shall (i) reduce in any manner the amount of, or

delay the timing of, payments received on Mortgage Loans which are required to

be distributed on any Certificate without the consent of the Holder of such

Certificate, or (ii) reduce the aforesaid percentage of Certificates the Holders

of which are required to consent to any such amendment, without the consent of

the Holders of all Certificates then outstanding. Notwithstanding any other

provision of this Agreement, for purposes of the giving or withholding of

consents pursuant to this Section 11.01, Certificates registered in the name of

the Seller or the Master Servicer or any affiliate thereof shall be entitled to

Voting Rights with respect to matters described in clauses (i) and (ii) of this

paragraph.

 

         Notwithstanding any contrary provision of this Agreement, the Trustee

shall not consent to any amendment to this Agreement unless it shall have first

received an Opinion of Counsel (provided by the Person requesting such

amendment) to the effect that such amendment will not result in the imposition

of any tax on the Trust Fund pursuant to the REMIC Provisions or cause the Trust

Fund to fail to qualify as a REMIC at any time that any of the Certificates are

outstanding. Promptly after the execution of any such amendment the Trustee

shall furnish a statement describing the amendment to each Certificateholder.

 

         It shall not be necessary for the consent of Certificateholders under

this Section 11.01 to approve the particular form of any proposed amendment, but

it shall be sufficient if such consent shall approve the substance thereof. The

manner of obtaining such consents and of evidencing the authorization of the

execution thereof by Certificateholders shall be subject to such reasonable

regulations as the Trustee may prescribe.

 

         Prior to executing any amendment pursuant to this Section, the Trustee

shall be entitled to receive an Opinion of Counsel (provided by the Person

requesting such amendment) to the effect that such amendment is authorized or

permitted by this Agreement. The cost of an Opinion of Counsel delivered

pursuant to this Section 11.01 shall be an expense of the party requesting such

amendment, but in any case shall not be an expense of the Trustee.

 

         Promptly after the execution of any amendment pursuant to this Section 11.01, the Trustee shall furnish written notification of the substance of such amendment to each Certificateholder, the Depositor and the Rating Agencies through the Rule 17g-5 Information Provider.  The Certificate Registrar shall cooperate with the Trustee in connection with the Trustee's obligations under this Section 11.01.

 

         The Trustee may, but shall not be obligated to enter into any amendment

pursuant to this Section that affects its rights, duties and immunities under

this Agreement or otherwise.

 

         SECTION 11.02 Recordation of Agreement; Counterparts.

 

         To the extent permitted by applicable law, this Agreement is subject to

recordation in all appropriate public offices for real property records in all

the counties or other comparable jurisdictions in which any or all of the

properties subject to the Mortgages are situated, and in any other appropriate

public recording office or elsewhere, such recordation to be effected by the

Master Servicer and at the expense of the Depositor on direction by the Trustee,

but only upon direction accompanied by an Opinion of Counsel to the effect that

such recordation materially and beneficially affects the interests of the

Certificateholders.

 

         For the purpose of facilitating the recordation of this Agreement as

herein provided and for other purposes, this Agreement may be executed

simultaneously in any number of counterparts, each of which counterparts shall

be deemed to be an original, and such counterparts shall constitute but one and

the same instrument.

 

         SECTION 11.03 Limitation on Rights of Certificateholders.

 

         The death or incapacity of any Certificateholder shall not operate to

terminate this Agreement or the Trust Fund, nor entitle such Certificateholder's

legal representatives or heirs to claim an accounting or to take any action or

proceeding in any court for a partition or winding up of the Trust Fund, nor

otherwise affect the rights, obligations and liabilities of the parties hereto

or any of them.

 

         No Certificateholder shall have any right to vote (except as expressly

provided for herein) or in any manner otherwise control the operation and

management of the Trust Fund, or the obligations of the parties hereto, nor

shall anything herein set forth, or contained in the terms of the Certificates,

be construed so as to constitute the Certificateholders from time to time as

partners or members of an association; nor shall any Certificateholder be under

any liability to any third party by reason of any action taken by the parties to

this Agreement pursuant to any provision hereof.

 

         No Certificateholder shall have any right by virtue of any provision of

this Agreement to institute any suit, action or proceeding in equity or at law

upon or under or with respect to this Agreement, unless such Holder previously

shall have given to the Trustee a notice of an Event of Default, or of a default

by the Seller or the Trustee in the performance of any obligation hereunder, and

of the continuance thereof, as hereinbefore provided, and unless also the

Holders of Certificates entitled to at least 25% of the Voting Rights shall have

made written request upon the Trustee to institute such action, suit or

proceeding in its own name as Trustee hereunder and shall have offered to the

Trustee such reasonable indemnity as it may require against the costs, expenses

and liabilities to be incurred therein or thereby, and the Trustee, for 60 days

after its receipt of such notice, request and offer of indemnity, shall have

neglected or refused to institute any such action, suit or proceeding. It is

understood and intended, and expressly covenanted by each Certificateholder with

every other Certificateholder and the Trustee, that no one or more Holders of

Certificates shall have any right in any manner whatever by virtue of any

provision of this Agreement to affect, disturb or prejudice the rights of the

Holders of any other of such Certificates, or to obtain or seek to obtain

priority over or preference to any other such Holder, or to enforce any right

under this Agreement, except in the manner herein provided and for the equal,

ratable and common benefit of all Certificateholders. For the protection and

enforcement of the provisions of this Section, each and every Certificateholder

and the Trustee shall be entitled to such relief as can be given either at law

or in equity.

 

         SECTION 11.04 Governing Law.

 

         This Agreement and the Certificates shall be construed in accordance

with the laws of the State of New York and the obligations, rights and remedies

of the parties hereunder shall be determined in accordance with such laws.

 

         SECTION 11.05 Notices.

 

         All demands, notices and direction hereunder shall be in writing and

shall be deemed effective upon receipt when delivered to (a) in the case of the

Depositor, ________________________, ____________________________________,

Attention: ____________________, or such other address as may hereafter be

furnished to the Trustee and the Master Servicer in writing by the Depositor,

(b) in the case of the Trustee _____________________, Attention:

_______________________________, or such other address as may hereafter be

furnished to the Master Servicer and the Depositor in writing by the Trustee and

(c) in the case of the Master Servicer, [Name of Master Servicer]

________________________, ____________________________________, Attention:

__________________________, (d) For posting by the Rule 17g-5 Information Provider:

__________________________, or such other address as may hereafter be furnished to the Depositor and the Trustee in writing. Any notice required or permitted to

be mailed to a Certificateholder shall be given by first class mail, postage

prepaid, at the address of such Holder as shown in the Certificate Register. Any

notice so mailed within the time prescribed in this Agreement shall be

conclusively presumed to have been duly given, whether or not the

Certificateholder receives such notice.

 

         SECTION 11.06 Severability of Provisions.

 

         If any one or more of the covenants, agreements, provisions or terms of

this Agreement shall be for any reason whatsoever held invalid, then such

covenants, agreements, provisions or terms shall be deemed severable from the

remaining covenants, agreements, provisions or terms of this Agreement and shall

in no way affect the validity or enforceability of the other provisions of this

Agreement or of the Certificates or the rights of the Holders thereof.

 

         SECTION 11.07 Successors and Assigns; Third Party Beneficiary.

 

         The provisions of this Agreement shall be binding upon and inure to the

benefit of the respective successors and assigns of the parties hereto, and all

such provisions shall inure to the benefit of the Trustee and the

Certificateholders. The parties hereto agree that the Seller is the intended

third party beneficiary of Sections 3.07, 3.10 and 3.22 hereof, and that the

Seller may enforce such provisions to the same extent as if the Seller were a

party to this Agreement.

 

         SECTION 11.08 Article and Section Headings.

 

         The article and section headings herein are for convenience of

reference only, and shall not limit or otherwise affect the meaning hereof.

 

         SECTION 11.09 Notice to Rating Agencies and Certificateholder.

 

         The Trustee shall use its best efforts to promptly provide notice to

the Rating Agency referred to below through the Rule 17g-5 Information Provider with respect to each of the following of which it has actual knowledge:

         1. Any material change or amendment to this Agreement;

 

         2. The occurrence of any Event of Default that has not been cured;

 

         3. The resignation or termination of the Master Servicer or the

Trustee;

 

         4. The repurchase or substitution of Mortgage Loans pursuant to Section

2.04;

 

         5. The final payment to Certificateholders; and

 

         6. Any change in the location of the Custodial Account or the

Certificate Account.

 

         In addition, the Trustee shall promptly provide or make available to the Rating Agency through the Rule 17g-5 Information Provider copies of the following:

         1. Each report to Certificateholders described in Section 4.02;

 

         2. Each annual independent public accountants' servicing report

received as described in Section 3.20; and

 

         3. Each Master Servicer compliance report received as described in

Section 3.19.

 

         In addition, the Trustee shall, at the expense of the Trust Fund, make available to the Rating Agency through the Rule 17g-5 Information Provider such information as a Rating Agency may reasonably request regarding the Certificates or the Trust Fund, to the extent that such information is reasonably available to the Trustee; provided, the Trustee  shall not be required to post to the Rule 17g-5 Website any information previously posted to and available on the Trustee’s website.

 

 

         Any such notice pursuant to this Section 11.09 shall be in writing and sent first to the Rule 17g-5 Information Provider and then shall be deemed to have been duly given if personally delivered or mailed by first class mail, postage prepaid, or by express delivery service to (i) in the case of [_________________________] Attention: ______________ the case of [____________________________________________________] or, in each case, such other address as such Rating Agency may designate in writing to the parties thereto.

 

 

  

  

  

 

 

 IN WITNESS WHEREOF, the Depositor, the Master Servicer and the Trustee

have caused their names to be signed hereto by their respective officers

thereunto duly authorized all as of the day and year first above written.

 

         OPTEUM MORTGAGE ACCPETANCE CORP.,

 

         Depositor

 

         By:

            --------------------------------------

 

         [NAME OF MASTER SERVICER],

         Master Servicer

 

         By:

            --------------------------------------

 

         [NAME OF TRUSTEE],

         Trustee

 

         By:

            --------------------------------------

 

 

 

 

  

  

  

EXHIBIT A-1

 

FORM OF CLASS [A-_] CERTIFICATE

 

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A

"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE

TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL

REVENUE CODE OF 1986 (THE "CODE").

 

 

	
Certificate No.__

	  	
_____% Pass-Through Rate

	
Class A-____

	  	  
	
Date of Pooling and Servicing

	  	
Percentage Interest:____%

	
Agreement and Cut-off Date:

 

	  	  
	
_____________ 1, 20__

 

	  	  
	
First Distribution Date:

	  	
Aggregate Initial [Certificate Principal Balance]

	
_____________, 20__

	  	
[Notional Amount] of the Class A-__ Certificates:

	
Master Servicer:

	  	
$______________

	
[Name of Master Servicer]

	  	
Initial [Certificate Principal Balance] [Notional Amount] of this Certificate:

	
Assumed Final

	  	
$______________

	
Distribution Date:

 

	  	
CUSIP:__________

	
__________ 25, 20__

	  	  
	  	  	  

 

                        MORTGAGE PASS-THROUGH CERTIFICATE

    SERIES 20__-_

 

         evidencing a percentage interest in the distributions allocable to the

         Class A- ___ Certificates with respect to a Trust Fund consisting

         primarily of a pool of conforming one- to four-family fixed-rate first

         lien mortgage loans formed and sold by OPTEUM MORTGAGE ACCEPTANCE CORPORATION

 

         This Certificate is payable solely from the assets of the Trust Fund,

and does not represent an obligation of or interest in Opteum Mortgage

Acceptance Corp, the Master Servicer, the Trustee referred to below or any of

their affiliates. Neither this Certificate nor the underlying Mortgage Loans are

guaranteed or insured by any governmental agency or instrumentality or by [Name

of Master Servicer], the Master Servicer, the Trustee or any of their

affiliates. None of the Depositor, the Master Servicer or any of their

affiliates will have any obligation with respect to any certificate or other

obligation secured by or payable from payments on the Certificates.

 

         This certifies that [Cede & Co.] is the registered owner of the

Percentage Interest evidenced by this Certificate (obtained by dividing the

Initial [Certificate Principal Balance] [Notional Amount] of this Certificate by

the aggregate Initial [Certificate Principal Balance] [Notional Amount] of all

Class A-____ Certificates, both as specified above) in certain distributions

with respect to the Trust Fund consisting primarily of an interest in a pool of

conventional one- to four-family fixed-rate first lien mortgage loans (the

"Mortgage Loans"), formed and sold by Opteum Mortgage Acceptance Corporation

(hereinafter called the "Depositor," which term includes any successor entity

under the Agreement referred to below). The Trust Fund was created pursuant to a

Pooling and Servicing Agreement dated as specified above (the "Agreement") among

the Depositor, the Master Servicer and [Name of Trustee], as trustee (the

"Trustee"), a summary of certain of the pertinent provisions of which is set

forth hereafter. To the extent not defined herein, the capitalized terms used

herein have the meanings assigned in the Agreement. This Certificate is issued

under and is subject to the terms, provisions and conditions of the Agreement,

to which Agreement the Holder of this Certificate by virtue of the acceptance

hereof assents and by which such Holder is bound.

 

         Pursuant to the terms of the Agreement, a distribution will be made on

the 25th day of each month or, if such 25th day is not a Business Day, the

Business Day immediately following (the "Distribution Date"), commencing as

described in the Agreement, to the Person in whose name this Certificate is

registered at the close of business on the last Business Day of the month

immediately preceding the month of such Distribution Date (the "Record Date"),

from the Available Distribution Amount in an amount equal to the product of the

Percentage Interest evidenced by this Certificate and the amount of [interest

and] [principal], if any, required to be distributed to Holders of Class

A-____Certificates on such Distribution Date.

 

         Distributions on this Certificate will be made either by the Trustee or

by a Paying Agent appointed by the Trustee either in immediately available funds

(by wire transfer or otherwise) for the account of the Person entitled thereto

if such Person shall have so notified the Trustee or such Paying Agent at least

5 Business Days prior to the related Record Date, or by check mailed to the

address of the Person entitled thereto, as such name and address shall appear on

the Certificate Register.

 

         Notwithstanding the above, the final distribution on this Certificate

will be made after due notice of the pendency of such distribution and only upon

presentation and surrender of this Certificate at the office or agency appointed

by the Trustee for that purpose in the City and State of New York. The Initial

[Certificate Principal Balance] [Notional Amount] of this Certificate is set

forth above. The [Certificate Principal Balance] [Notional Amount] hereof will

be reduced to the extent of [distributions allocable to principal and] any

Realized Losses allocable hereto.

 

         This Certificate is one of a duly authorized issue of Certificates

issued in several Classes designated as Mortgage Pass-Through Certificates of

the Series specified hereon (herein collectively called the "Certificates").

 

         The Certificates are limited in right of payment to certain collections

and recoveries respecting the Mortgage Loans, all as more specifically set forth

herein and in the Agreement. In the event Master Servicer funds are advanced

with respect to any Mortgage Loan, such advance is reimbursable to the Master

Servicer, to the extent provided in the Agreement, from related recoveries on

such Mortgage Loan or from other cash that would have been distributable to

Certificateholders.

 

         As provided in the Agreement, withdrawals from the Custodial Account

and/or the Certificate Account created for the benefit of Certificateholders may

be made by the Master Servicer from time to time for purposes other than

distributions to Certificateholders, such purposes including without limitation

reimbursement to the Trustee, the Depositor and the Master Servicer of advances

made, or certain expenses incurred, by either of them.

 

         The Agreement permits, with certain exceptions therein provided, the

amendment of the Agreement and the modification of the rights and obligations of

the Depositor, the Master Servicer and the Trustee and the rights of the

Certificateholders under the Agreement at any time by the Depositor, the Master

Servicer and the Trustee with the consent of the Holders of Certificates

evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of

each Class of Certificates affected thereby. Any such consent by the Holder of

this Certificate shall be conclusive and binding on such Holder and upon all

future holders of this Certificate and of any Certificate issued upon the

transfer hereof or in exchange herefor or in lieu hereof whether or not notation

of such consent is made upon the Certificate. The Agreement also permits the

amendment thereof in certain circumstances without the consent of the Holders of

any of the Certificates and, in certain additional circumstances, without the

consent of the Holders of certain Classes of Certificates.

 

         As provided in the Agreement and subject to certain limitations therein

set forth, the transfer of this Certificate is registrable in the Certificate

Register upon surrender of this Certificate for registration of transfer at the

offices or agencies appointed by the Trustee, duly endorsed by, or accompanied

by an assignment in the form below or other written instrument of transfer in

form satisfactory to the Trustee and the Certificate Registrar duly executed by

the Holder hereof or such Holder's attorney duly authorized in writing, and

thereupon one or more new Certificates of authorized denominations evidencing

the same Class and aggregate Percentage Interest will be issued to the

designated transferee or transferees.

 

         The Certificates are issuable only as registered Certificates without

coupons in Classes and in denominations specified in the Agreement. As provided

in the Agreement and subject to certain limitations therein set forth,

Certificates are exchangeable for new Certificates of authorized denominations

evidencing the same Class and aggregate Percentage Interest, as requested by the

Holder surrendering the same.

 

         No service charge will be made for any such registration of transfer or

exchange, but the Trustee may require payment of a sum sufficient to cover any

tax or other governmental charge payable in connection therewith.

 

         The Depositor, the Master Servicer, the Trustee and the Certificate

Registrar and any agent of the Depositor, the Master Servicer, the Trustee or

the Certificate Registrar may treat the Person in whose name this Certificate is

registered as the owner hereof for all purposes, and neither the Depositor, the

Master Servicer, the Trustee nor any such agent shall be affected by notice to

the contrary.

 

         This Certificate shall be governed by and construed in accordance with

the laws of the State of New York.

 

         The obligations created by the Agreement in respect of the Certificates

and the Trust Fund created thereby shall terminate upon the payment to

Certificateholders of all amounts held by or on behalf of the Trustee and

required to be paid to them pursuant to the Agreement following the earlier of

(i) the maturity or other liquidation of the last Mortgage Loan subject thereto

or the disposition of all property acquired upon foreclosure or deed in lieu of

foreclosure of any Mortgage Loan and (ii) the purchase by the Class R

Certificateholder from the Trust Fund of all remaining Mortgage Loans and all

property acquired in respect of such Mortgage Loans, thereby effecting early

retirement of the Certificates. The Agreement permits, but does not require, the

Class R Certificateholder to (i) purchase at a price determined as provided in

the Agreement all remaining Mortgage Loans and all property acquired in respect

of any Mortgage Loan or (ii) purchase in whole, but not in part, all of the

Certificates from the Holders thereof; provided, that any such option may only

be exercised if the Aggregate [Stated Principal Balance] [Notional Amount] of

the Mortgage Loans as of the Distribution Date upon which the proceeds of any

such purchase are distributed is less than one percent of the Aggregate [Stated

Principal Balance] [Notional Amount] of the Mortgage Loans at the Cut-off Date.

 

         Reference is hereby made to the further provisions of this Certificate

set forth on the reverse hereof, which further provisions shall for all purposes

have the same effect as if set forth at this place.

 

         Unless the certificate of authentication hereon has been executed by

the Trustee, by manual signature, this Certificate shall not be entitled to any

benefit under the Agreement or be valid for any purpose.

 

 

 

IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly

executed.

 

Dated:   __________ __, 20__            [NAME OF TRUSTEE],

             as Trustee

 

          By: ____________________________________

          Authorized Signatory

 

                          CERTIFICATE OF AUTHENTICATION

 

         This is one of the Class A-____ Certificates referred to in the

within-mentioned Agreement.

 

          [NAME OF TRUSTEE],

             as Trustee

 

          By: ____________________________________

          Authorized Signatory

 

ASSIGNMENT

 

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and

transfer(s) unto _____________________________________ (Please print or

typewrite name and address including postal zip code of assignee) a Percentage

Interest evidenced by the within Mortgage Pass-Through Certificate and hereby

authorizes the transfer of registration of such interest to assignee on the

Certificate Register of the Trust Fund.

 

         I (We) further direct the Certificate Registrar to issue a new

Certificate of a like denomination and Class, to the above named assignee and

deliver such Certificate to the following address:______________________________

________________________________________________________________________________

 

Dated:                                                                ________________________________________

           Signature by or on behalf of assignor

 

                 _________________________________

                       Signature Guaranteed

 

 

 

 

  

  

  

DISTRIBUTION INSTRUCTIONS

 

         The assignee should include the following for purposes of distribution:

 

         Distributions shall be made, by wire transfer or otherwise, in

immediately available funds to ___________________________________for the

account of __________________ account number _______________, or, if mailed by

check, to ________________________. Applicable statements should be mailed

to____________________________________________.

 

         This information is provided by __________________, the assignee named

above, or ________________, as its agent.

 

  

  

  

EXHIBIT A-2

FORM OF CLASS B-_ CERTIFICATES

 

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR

CERTIFICATES AND THE [CLASS M CERTIFICATES] [THE CLASS B-1 CERTIFICATES] [AND

THE CLASS B-2 CERTIFICATES], AS DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

 

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A

"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE TERMS

ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE

CODE OF 1986 (THE "CODE").

 

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE

SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY

NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND

LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM

REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN

ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT.

 

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE

TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.02(D) OF THE

AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE THAT THE PURCHASE

OF THIS CERTIFICATE WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED

TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF

1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE

MASTER SERVICER, THE DEPOSITOR OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN

ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

 

 

	
Certificate No. 1

	  	
_____% Pass-Through Rate

	
Class [B-_]

	  	
Aggregate Initial [Certificate Principal Balance]

	
Date of Pooling and Servicing

	  	
[Notional Amount] of the Class B-__ Certificates:

	
Agreement and Cut-off Date:

 

	  	
$______________

	
_____________ 1, 20__

 

	  	
Initial [Certificate Principal Balance] [Notional Amount] of this Certificate ("Denomination"):

	
First Distribution Date:

	  	
$______________

	
_____________, 20__

	  	
CUSIP:__________

	
Master Servicer:

	  	  
	
[Name of Master Servicer]

	  	
Percentage Interest of this Certificate:

	
Assumed Final

	  	
100.00%

	
Distribution Date:

 

	  	  
	
__________ 25, 20__

	  	  
	  	  	  

 

MORTGAGE PASS-THROUGH CERTIFICATE

SERIES 20__-_

 

         evidencing percentage interest in the distributions allocable to the

         Class [B-_] Certificates with respect to a Trust Fund consisting

         primarily of a pool of conforming one- to four- family fixed-rate first

         lien mortgage loans formed and sold by OPTEUM MORTGAGE ACCEPTANCE CORPORATION

 

         This Certificate is payable solely from the assets of the Trust Fund,

and does not represent an obligation of or interest in Opteum Mortgage

Acceptance Corp, the Master Servicer, the Trustee referred to below or any of

their affiliates. Neither this Certificate nor the underlying Mortgage Loans are

guaranteed or insured by any governmental agency or instrumentality or by [Name

of Master Servicer], the Master Servicer, the Trustee or any of their

affiliates. None of the Depositor, the Master Servicer or any of their

affiliates will have any obligation with respect to any certificate or other or

obligation secured by or payable from payments on the Certificates.

 

         This certifies that ___________ is the registered owner of the

Percentage Interest evidenced by this Certificate (obtained by dividing the

Initial [Certificate Principal Balance] [Notional Amount] of this Certificate by

the aggregate Initial [Certificate Principal Balance] [Notional Amount] of all

Class [B-_] Certificates, both as specified above), in certain distributions

with respect to a Trust Fund consisting primarily of a pool of one- to

four-family fixed-rate first lien mortgage loans (the "Mortgage Loans"), formed

and sold by Opteum Mortgage Acceptance Corp (hereinafter called the "Depositor,"

which term includes any successor entity under the Agreement referred to below).

The Trust Fund was created pursuant to a Pooling and Servicing Agreement dated

as specified above (the "Agreement") among the Depositor, the Master Servicer

and [Name of Trustee], as trustee (the "Trustee"), a summary of certain of the

pertinent provisions of which is set forth hereafter. To the extent not defined

herein, the capitalized terms used herein have the meanings assigned the

Agreement. This Certificate is issued under and is subject to the terms,

provisions and conditions of the Agreement, to which Agreement the Holder of

this Certificate by virtue of the acceptance hereof assents and by which such

Holder is bound.

 

         Pursuant to the terms of the Agreement, a distribution will be made on

the 25th day of each month or, if such 25th day is not a Business Day, the

Business Day immediately following (the "Distribution Date"), commencing as

described in the Agreement, to the Person in whose name this Certificate is

registered at the close of business on the last Business Day of the month

immediately preceding the month of such Distribution Date (the "Record Date"),

from the Available Distribution Amount in an amount equal to the product of the

Percentage Interest evidenced by this Certificate and the amount (of interest

and principal, if any) required to be distributed to Holders of Class [B-_]

Certificates on such Distribution Date.

 

         Distributions on this Certificate will be made either by the Trustee or

by a Paying Agent appointed by the Trustee either in immediately available funds

(by wire transfer or otherwise) for the account of the Person entitled thereto

if such Person shall have so notified the Trustee or such Paying Agent at least

5 Business Days prior to the related Record Date, or by check mailed to the

address of the Person entitled thereto, as such name and address shall appear on

the Certificate Register.

 

         Notwithstanding the above, the final distribution on this Certificate

will be made after due notice of the pendency of such distribution and only upon

presentation and surrender of this Certificate at the office or agency appointed

by the Trustee for that purpose in the City and State of New York. The Initial

[Certificate Principal Balance] [Notional Amount] of this Certificate is set

forth above. The [Certificate Principal Balance] [Notional Amount] hereof will

be reduced to the extent of [the distributions allocable to principal and] any

Realized Losses allocable hereto.

 

         No transfer of this Class [B-_] Certificate will be made unless such

transfer is exempt from the registration requirements of the Securities Act of

1933, as amended, and any applicable state securities laws or is made in

accordance with said Act and laws. In the event that such a transfer is to be

made, (i) the Trustee shall require an opinion of counsel acceptable to and in

form and substance satisfactory to the Trustee that such transfer is exempt

(describing the applicable exemption and the basis therefor) from or is being

made pursuant to the registration requirements of the Securities Act of 1933, as

amended, and of any applicable statute of any state and (ii) the transferee and

transferor shall execute a representation letter in the form described by the

Agreement. The Holder hereof desiring to effect such transfer shall, and does

hereby agree to, indemnify the Trustee, the Depositor, the Master Servicer and

the Certificate Registrar acting on behalf of the Trustee against any liability

that may result if the transfer is not so exempt or is not made in accordance

with such Federal and state laws. In connection with any such transfer, the

Trustee will also require either (i) an opinion of counsel acceptable to and in

form and substance satisfactory to the Trustee with respect to the

permissibility of such transfer under the Employee Retirement Income Security

Act of 1974, as amended ("ERISA") and Section 4975 of the Internal Revenue Code

(the "Code") and stating, among other things, that the transferee's acquisition

of a Class [B-_] Certificate will not constitute or result in a non-exempt

prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or

(ii) a representation letter, in the form as described by the Agreement, either

stating that the transferee is not an employee benefit or other plan subject to

the prohibited transaction provisions of ERISA or Section 4975 of the Code (a

"Plan"), or any other person (including an investment manager, a named fiduciary

or a trustee of any Plan) acting, directly or indirectly, on behalf of or

purchasing any Certificate with "plan assets" of any Plan, or stating that the

transferee is an insurance company, the source of funds to be used by it to

purchase the Certificate is an "insurance company general account" (within the

meaning of Department of Labor Prohibited Transaction Class Exemption ("PTCE")

95-60), and the purchase is being made in reliance upon the availability of the

exemptive relief afforded under Sections I and III of PTCE 95-60.

 

         This Certificate is one of a duly authorized issue of Certificates

issued in several Classes designated as Mortgage Pass-Through Certificates of

the Series specified hereon (herein collectively called the "Certificates").

 

         The Certificates are limited in right of payment to certain collections

and recoveries respecting the Mortgage Loans, all as more specifically set forth

herein and in the Agreement. In the event Master Servicer funds are advanced

with respect to any Mortgage Loan, such advance is reimbursable to the Master

Servicer, to the extent provided in the Agreement, from related recoveries on

such Mortgage Loan or from other cash that would have been distributable to

Certificateholders.

 

         As provided in the Agreement, withdrawals from the Custodial Account

and/or the Certificate Account created for the benefit of Certificateholders may

be made by the Master Servicer from time to time for purposes other than

distributions to Certificateholders, such purposes including without limitation

reimbursement to the Trustee, the Depositor and the Master Servicer of advances

made, or certain expenses incurred, by either of them.

 

         The Agreement permits, with certain exceptions therein provided, the

amendment of the Agreement and the modification of the rights and obligations of

the Depositor, the Master Servicer and the Trustee and the rights of the

Certificateholders under the Agreement at any time by the Depositor, the Master

Servicer and the Trustee with the consent of the Holders of Certificates

evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of

each Class of Certificates affected thereby. Any such consent by the Holder of

this Certificate shall be conclusive and binding on such Holder and upon all

future holders of this Certificate and of any Certificate issued upon the

transfer hereof or in exchange herefor or in lieu hereof whether or not notation

of such consent is made upon the Certificate. The Agreement also permits the

amendment thereof in certain circumstances without the consent of the Holders of

any of the Certificates and, in certain additional circumstances, without the

consent of the Holders of certain Classes of Certificates.

 

         As provided in the Agreement and subject to certain limitations therein

set forth, the transfer of this Certificate is registrable in the Certificate

Register upon surrender of this Certificate for registration of transfer at the

offices or agencies appointed by the Trustee, duly endorsed by, or accompanied

by an assignment in the form below or other written instrument of transfer in

form satisfactory to the Trustee and the Certificate Registrar duly executed by

the Holder hereof or such Holder's attorney duly authorized in writing, and

thereupon one or more new Certificates of authorized denominations evidencing

the same Class and aggregate Percentage Interest will be issued to the

designated transferee or transferees.

 

         The Certificates are issuable only as registered Certificates without

coupons in Classes and in denominations specified in the Agreement. As provided

in the Agreement and subject to certain limitations therein set forth,

Certificates are exchangeable for new Certificates of authorized denominations

evidencing the same Class and aggregate Percentage Interest, as requested by the

Holder surrendering the same.

 

         No service charge will be made for any such registration of transfer or

exchange, but the Trustee may require payment of a sum sufficient to cover any

tax or other governmental charge payable in connection therewith.

 

         The Depositor, the Master Servicer, the Trustee and the Certificate

Registrar and any agent of the Depositor, the Master Servicer, the Trustee or

the Certificate Registrar may treat the Person in whose name this Certificate is

registered as the owner hereof for all purposes, and neither the Depositor, the

Master Servicer, the Trustee nor any such agent shall be affected by notice to

the contrary.

 

         This Certificate shall be governed by and construed in accordance with

the laws of the State of New York.

 

         The obligations created by the Agreement in respect of the Certificates

and the Trust Fund created thereby shall terminate upon the payment to

Certificateholders of all amounts held by or on behalf of the Trustee and

required to be paid to them pursuant to the Agreement following the earlier of

(i) the maturity or other liquidation of the last Mortgage Loan subject thereto

or the disposition of all property acquired upon foreclosure or deed in lieu of

foreclosure of any Mortgage Loan and (ii) the purchase by the Class R

Certificateholder from the Trust Fund of all remaining Mortgage Loans and all

property acquired in respect of such Mortgage Loans, thereby effecting early

retirement of the Certificates. The Agreement permits, but does not require, the

Class R Certificateholder to (i) purchase at a price determined as provided in

the Agreement all remaining Mortgage Loans and all property acquired in respect

of any Mortgage Loan or (ii) purchase in whole, but not in part, all of the

Certificates from the Holders thereof; provided, that any such option may only

be exercised if the Aggregate [Stated Principal Balance] [Notional Amount] of

the Mortgage Loans as of the Distribution Date upon which the proceeds of any

such purchase are distributed is less than one percent of the Aggregate [Stated

Principal Balance] [Notional Amount] of the Mortgage Loans at the Cut-off Date.

 

         Unless the certificate of authentication hereon has been executed by

the Trustee, by manual signature, this Certificate shall not be entitled to any

benefit under the Agreement or be valid for any purpose.

 

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly

executed.

 

Dated:   ___________ __, 20__           [NAME OF TRUSTEE],

             as Trustee

 

          By: ____________________________________

          Authorized Signatory

 

                          CERTIFICATE OF AUTHENTICATION

 

         This is one of the Class [B-_] Certificates referred to in the

within-mentioned Agreement.

 

          [NAME OF TRUSTEE],

             as Trustee

 

          By: ____________________________________

          Authorized Signatory

 

  

  

  

ASSIGNMENT

 

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and

transfer(s) unto _____________________________________ (Please print or

typewrite name and address including postal zip code of assignee) a Percentage

Interest evidenced by the within Mortgage Pass-Through Certificate and hereby

authorizes the transfer of registration of such interest to assignee on the

Certificate Register of the Trust Fund.

 

         I (We) further direct the Certificate Registrar to issue a new

Certificate of a like denomination and Class, to the above named assignee and

deliver such Certificate to the following address:______________________________

________________________________________________________________________________

 

Dated:__________________________________________________________________________

 

    Signature by or on behalf of assignor

 

 

 

 

  

  

  

DISTRIBUTION INSTRUCTIONS

 

         The assignee should include the following for purposes of distribution:

 

         Distributions shall be made, by wire transfer or otherwise, in

immediately available funds to ________________________________________________

for the account of _________________________________________ account number

__________________, or, if mailed by check, to ________________________________.

Applicable statements should be mailed to _____________________________________

_______________________________________________________________________________.

 

This information is provided by _______________________________________________,

the assignee named above, or __________________________________________________,

as its agent.

 

  

  

  

EXHIBIT B

FORM OF CLASS R CERTIFICATE

 

         THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED

STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

 

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE

REPRESENTS A "RESIDUAL INTEREST" IN ONE OR MORE "REAL ESTATE MORTGAGE INVESTMENT

CONDUITS" AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF

THE INTERNAL REVENUE CODE OF 1986 (THE "CODE").

 

         NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE

TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.02(E) OF THE

AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE

DEPOSITOR AND THE TRUSTEE THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE

UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED

TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF

1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE

MASTER SERVICER, THE DEPOSITOR OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN

ADDITION TO THOSE UNDERTAKEN IN THE POOLING AND SERVICING AGREEMENT (THE

"AGREEMENT").

 

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE

MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER

SERVICER AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES,

ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY

INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE

FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION

521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE

UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE

CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE, (ANY

SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C) BEING HEREIN

REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (D) AN AGENT OF A DISQUALIFIED

ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR

COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL

CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.

NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER,

SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR

AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE

OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE

A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO,

THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE, EACH HOLDER OF THIS

CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED

TO THE PROVISIONS OF THIS PARAGRAPH.

 

  

  

  

 

 

 

Certificate No. 1                          _______% Pass-Through Rate

 

Class R Senior

 

Date of Pooling and, Servicing             Percentage Interest:  100.00%

Agreement and Cut-off Date:

______________ 1, 20__

 

First Distribution Date:                   Aggregate  Initial   [Certificate   Principal Balance]

______________, 20__                       Notional Amount] of the Class R Certificates:

                                                                            $_________________

 

Master Servicer:                           Initial   [Certificate   Principal  Balance] [Notional

[Name of Master Servicer]                  Amount] of this

             Class R Certificates:

                                                                            $_________________

 

Assumed Final Distribution Date:           CUSIP:

______________, 20__

 

MORTGAGE PASS-THROUGH CERTIFICATE

SERIES 20_-_

 

         evidencing a percentage interest in any distributions allocable to the

         Class R Certificates with respect to a Trust Fund consisting primarily

         of a pool of one- to four-family fixed-rate first lien mortgage loans

         formed and sold by OPTEUM MORTGAGE ACCEPTANCE CORPORATION

 

         This Certificate is payable solely from the assets of the Trust Fund,

and does not represent an obligation of or interest in Opteum Mortgage

Acceptance Corp, the Master Servicer, the Trustee referred to below or any of

their affiliates. Neither this Certificate nor the underlying Mortgage Loans are

guaranteed or insured by any governmental agency or instrumentality or by [Name

of Master Servicer], the Master Servicer, the Trustee or any of their

affiliates. None of the Depositor, the Master Servicer or any of their

affiliates will have any obligation with respect to any certificate or other

obligation secured by or payable from payments on the Certificates.

 

         This certifies that ________________ is the registered owner of the

Percentage Interest evidenced by this Certificate stated above in certain

distributions with respect to a Trust Fund, consisting primarily of a pool of

one- to four-family fixed-rate first lien mortgage loans (the "Mortgage Loans"),

formed and sold by Opteum Mortgage Acceptance Corp (hereinafter called the

"Depositor," which term includes any successor entity under the Agreement

referred to below). The Trust Fund was created pursuant to a Pooling and

Servicing Agreement dated as specified above (the "Agreement") among the

Depositor, the Master Servicer and [Name of Trustee], as trustee (the

"Trustee"), a summary of certain of the pertinent provisions of which is set

forth hereafter. To the extent not defined herein, the capitalized terms used

herein have the meanings assigned in the Agreement. This Certificate is issued

under and is subject to the terms, provisions and conditions of the Agreement,

to which Agreement the Holder of this Certificate by virtue of the acceptance

hereof assents and by which such Holder is bound.

 

         Pursuant to the terms of the Agreement, a distribution will be made on

the 25th day of each month or, if such 25th day is not a Business Day, the

Business Day immediately following (the Distribution Date"), commencing as

described in the Agreement, to the Person in whose name this Certificate is

registered at the close of business on the last Business Day of the month

immediately preceding the month of such Distribution Date (the "Record Date"),

from the Available Distribution Amount in an amount equal to the product of the

Percentage Interest evidenced by this Certificate and the amount of interest and

principal, if any , required to be distributed to Holders of Class R

Certificates on such Distribution Date.

 

         Each Holder of this Certificate will be deemed to have agreed to be

bound by the restrictions set forth in the Agreement to the effect that (i) each

person holding or acquiring any Ownership Interest in this Certificate must be a

United States Person and a Permitted Transferee, (ii) the transfer of any

Ownership Interest in this Certificate will be conditioned upon the delivery to

the Trustee of, among other things, an affidavit to the effect that it is a

United States Person and Permitted Transferee, (iii) any attempted or purported

transfer of any Ownership Interest in this Certificate in violation of such

restrictions will be absolutely null and void and will vest no rights in the

purported transferee, and (iv) if any person other than a United States Person

and a Permitted Transferee acquires any Ownership Interest in this Certificate

in violation of such restrictions, then the Depositor will have the right, in

its sole discretion and without notice to the Holder of this Certificate, to

sell this Certificate to a purchaser selected by the Depositor, which purchaser

may be the Depositor, or any affiliate of the Depositor, on such terms and

conditions as the Depositor may choose.

 

         Notwithstanding the above, the final distribution on this Certificate

will be made after due notice of the pendency of such distribution and only upon

presentation and surrender of this Certificate at the office or agency appointed

by the Trustee for that purpose in the City and State of New York. The Initial

[Certificate Principal Balance] [Notional Amount] of this Certificate is set

forth above. The [Certificate Principal Balance] [Notional Amount] hereof will

be reduced to the extent of [distributions allocable to principal] and any

Realized Losses allocable hereto. Notwithstanding the reduction of the

[Certificate Principal Balance] [Notional Amount] hereof to zero, this

Certificate will remain outstanding under the Agreement and the Holder hereof

may have additional obligations with respect to this Certificate, including tax

liabilities, and may be entitled to certain additional distributions hereon, in

accordance with the terms and provisions of the Agreement.

 

         In connection with any transfer of this Certificate, the Trustee will

also require either (i) an opinion of counsel acceptable to and in form and

substance satisfactory to the Trustee with respect to the permissibility of such

transfer under the Employee Retirement Income Security Act of 1974, as amended

("ERISA") and Section 4975 of the Internal Revenue Code (the "Code") and

stating, among other things, that the transferee's acquisition of a Class R

Certificate will not constitute or result in a non-exempt prohibited transaction

under Section 406 of ERISA or Section 4975 of the Code or (ii) a representation

letter, in the form as described by the Agreement, stating that the transferee

is not an employee benefit or other plan subject to the prohibited transaction

provisions of ERISA or Section 4975 of the Code (a "Plan"), or any other person

(including an investment manager, a named fiduciary or a trustee of any Plan)

acting, directly or indirectly, on behalf of or purchasing any Certificate with

"plan assets" of any Plan.

 

         This Certificate is one of a duly authorized issue of Certificates

issued in several Classes designated as Mortgage Pass-Through Certificates of

the Series specified hereon (herein collectively called the "Certificates").

 

         The Certificates are limited in right of payment to certain collections

and recoveries respecting the Mortgage Loans, all as more specifically set forth

herein and in the Agreement. In the event Master Servicer funds are advanced

with respect to any Mortgage Loan, such advance is reimbursable to the Master

Servicer, to the extent provided in the Agreement, from related recoveries on

such Mortgage Loan or from other cash that would have been distributable to

Certificateholders.

 

         As provided in the Agreement, withdrawals from the Custodial Account

and/or the Certificate Account created for the benefit of Certificateholders may

be made by the Master Servicer from time to time for purposes other than

distributions to Certificateholders, such purposes including without limitation

reimbursement to the Trustee, the Depositor and the Master Servicer of advances

made, or certain expenses incurred, by either of them.

 

         The Agreement permits, with certain exceptions therein provided, the

amendment of the Agreement and the modification of the rights and obligations of

the Depositor, the Master Servicer and the Trustee and the rights of the

Certificateholders under the Agreement at any time by the Depositor, the Master

Servicer and the Trustee with the consent of the Holders of Certificates

evidencing in the aggregate not less than 66-2/3% of the Percentage Interests of

each Class of Certificates affected thereby. Any such consent by the Holder of

this Certificate shall be conclusive and binding on such Holder and upon all

future holders of this Certificate and of any Certificate issued upon the

transfer hereof or in exchange herefor or in lieu hereof whether or not notation

of such consent is made upon the Certificate. The Agreement also permits the

amendment thereof in certain circumstances without the consent of the Holders of

any of the Certificates and, in certain additional circumstances, without the

consent of the Holders of certain Classes of Certificates.

 

         As provided in the Agreement and subject to certain limitations therein

set forth, the transfer of this Certificate is registrable in the Certificate

Register upon surrender of this Certificate for registration of transfer at the

offices or agencies appointed by the Trustee, duly endorsed by, or accompanied

by an, assignment in the form below or other written instrument of transfer in

form satisfactory to the Trustee and the Certificate Registrar duly executed by

the Holder hereof or such Holder's attorney duly authorized in writing, and

thereupon one or more new Certificates of authorized denominations evidencing

the same Class and aggregate Percentage Interest will be issued to the

designated transferee or transferees.

 

         The Certificates are issuable only as registered Certificates without

coupons in Classes and in denominations specified in the Agreement. As provided

in the Agreement and subject to certain limitations therein, set forth,

Certificates are exchangeable for new Certificates of authorized denominations

evidencing the same Class and aggregate Percentage Interest, as requested by the

Holder surrendering the same.

 

         No service charge will be made for any such registration of transfer or

exchange, but the Trustee may require payment of a sum sufficient to cover any

tax or other governmental charge payable in connection therewith.

 

         The Depositor, the Master Servicer, the Trustee and the Certificate

Registrar and any agent of the Depositor, the Master Servicer, the Trustee or

the Certificate Registrar may treat the Person in whose name this Certificate is

registered as the owner hereof for all purposes, and neither the Depositor, the

Master Servicer, the Trustee nor any such agent shall be affected by notice to

the contrary.

 

         This Certificate shall be governed by and construed in accordance with

the laws of the State of New York.

 

         The obligations created by the Agreement in respect of the Certificates

and the Trust Fund created thereby shall terminate upon the payment to

Certificateholders of all amounts held by or on behalf of the Trustee and

required to be paid to them pursuant to the Agreement following the earlier of

(i) the maturity or other liquidation of the last Mortgage Loan subject thereto

or the disposition of all property acquired upon foreclosure or deed in lieu of

foreclosure of any Mortgage Loan and (ii) the purchase by the Class R

Certificateholder from the Trust Fund of all remaining Mortgage Loans and all

property acquired in respect of such Mortgage Loans, thereby effecting early

retirement of the Certificates. The Agreement permits, but does not require, the

Class R Certificateholder to (i) purchase at a price determined as provided in

the Agreement all remaining Mortgage Loans and all property acquired in respect

of any Mortgage Loan or (ii) purchase in whole, but not in part, all of the

Certificates from the Holders thereof; provided, that any such option may only

be exercised if the Aggregate [Stated Principal Balance] [Notional Amount] of

the Mortgage Loans as of the Distribution Date upon which the proceeds of any

such purchase are distributed is less than one percent of the Aggregate [Stated

Principal Balance] [Notional Amount] of the Mortgage Loans at the Cut-off Date.

 

         Reference is hereby made to the further provisions of this Certificate

set forth on the reverse hereof, which further provisions shall for all purpose

have the same effect as if set forth at this place.

 

         Unless the certificate of authentication hereon has been executed by

the Trustee, by manual signature, this Certificate shall not be entitled to any

benefit under the Agreement or be valid for any purpose.

 

 

 

  

  

  

 IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly

executed.

 

Dated:   _________ __, 20__             [NAME OF TRUSTEE],

          as Trustee

 

          By:_____________________________________

          Authorized Signatory

 

                          CERTIFICATE OF AUTHENTICATION

 

         This is one of the Class R Certificates referred to in the

within-mentioned Agreement.

 

          [NAME OF TRUSTEE],

          as Trustee

 

          By:_____________________________________

          Authorized Signatory

 

 

 

 

  

  

  

ASSIGNMENT

 

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and

transfer(s) unto ______________________________________________________________

_______________________________________________________________________________

    (Please print or typewrite name and address including postal zip code of

     assignee)

 

the Percentage Interest evidenced by the within Certificate and hereby

authorizes the transfer of registration of such Percentage Interest to assignee

on the Certificate Register of the Trust.

 

         I (We) further direct the Trustee to issue a new Certificate of a like

denomination and Class, to the above named assignee and deliver such Certificate

to the following address:______________________________________________________

_______________________________________________________________________________

 

Dated: _________________

 

          ________________________________________

            Signature by or on behalf of assignor

 

 

 

 

  

  

  

DISTRIBUTION INSTRUCTIONS

 

         The assignee should include the following for purposes of distribution:

 

Distributions shall be made, by wire transfer or otherwise, in immediately

available funds to ____________________________________________________________

_______________________________________________________________________________

for the account of ____________________________________________________________,

account number ________________, or, if mailed by check, to ___________________

_______________________________________________________________________________

 

Applicable statements should be mailed to _____________________________________

_______________________________________________________________________________.

 

         This information is provided by the assignee named above, or as its

agent.

 

  

  

  

EXHIBIT C

 

FORM OF TRUSTEE'S INITIAL CERTIFICATION

 

                    __________ __, 20__

 

[Name of Master Servicer]

___________________________

___________________________

 

         Re:      Pooling and Servicing Agreement, dated as of __________ 1,

                  20__among Opteum Mortgage Acceptance Corporation, [Name of Master

                  Servicer], and [Name of Trustee], Mortgage Pass-Through

                  Certificates Series 20__-

 

Ladies and Gentlemen:

 

         In accordance with Section 2.02 of the above-captioned Pooling and

Servicing Agreement, the undersigned, as Trustee, hereby certifies that as to

each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage

Loan paid in full or listed on the attachment hereto) it has reviewed the

Mortgage File and the Mortgage Loan Schedule and has determined that: (i) all

documents required to be included in the Mortgage File are in its possession;

(ii) such documents have reviewed by it and appear regular on their face and

relate to such Mortgage Loan; and (iii) base on examination by it, and only as

to such documents, the information set forth in items (i), (ii), (iii) (iv) of

the definition or description of "Mortgage Loan Schedule" is correct.

 

         The trustee has made no independent examination of any documents

contained in each Mortgage File beyond the review specifically required in the

above-referenced Pooling and Servicing Agreement. The Trustee makes no

representation that any documents specified in clause (vi) of Section 2.01

should be included in any Mortgage File. The Trustee makes no representations as

to and shall not be responsible to verify: (i) the validity, legality,

sufficiency, enforceability, due authorization, recordability or genuineness of

any of the documents contained in each Mortgage File of any of the Mortgage

Loans identified on the Mortgage Loan Schedule, (ii) the collectability,

insurability, effectiveness or suitability of any such Mortgage Loan, or (iii)

the existence of any assumption, modification, written assurance or substitution

agreement with respect to any Mortgage File if no such documents appear in the

Mortgage File delivered to the Trustee.

 

 

 

  

  

  

    Capitalized words and phrases used herein shall have the respective

meanings assigned to them in the above-captioned Pooling and Servicing

Agreement.

 

          [NAME OF TRUSTEE]

 

          By:

             --------------------------------

          Name:

          Title:

 

  

  

  

EXHIBIT D

 

FORM OF TRUSTEE FINAL CERTIFICATION

 

                      __________ __, 20__

 

[Name of Master Servicer]

________________________

________________________

 

         Re:      Pooling and Servicing Agreement, dated as of __________ 1,

                  20__ among Opteum Mortgage Acceptance Corp, [Name of Master

                  Servicer], and [Name of Trustee], Mortgage Pass-Through

                  Certificates Series 20__-

 

Ladies and Gentlemen:

 

         In accordance with Section 2.02 of the above-captioned Pooling and

Servicing Agreement, the undersigned, as Trustee, hereby certifies that as to

each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage

Loan paid in full or listed on the attachment hereto) it has received the

documents set forth in Section 2.01.

 

         The Trustee has made no independent examination of any documents

contained in each Mortgage File beyond the review specifically required in the

above-referenced Pooling and Servicing Agreement. The Trustee makes no

representation that any documents specified in clause (vi) of Section 2.01

should be included in any Mortgage File. The Trustee makes no representations as

to and shall not be responsible to verify: (i) the validity, legality,

sufficiency, enforceability, due authorization, recordability or genuineness of

any of the documents contained in each Mortgage File of any of the Mortgage

Loans identified on the Mortgage Loan Schedule, (ii) the collectability,

insurability, effectiveness or suitability of any such Mortgage Loan or (iii)

the existence of any assumption, modification, written assurance or substitution

agreement with respect to any Mortgage File if no such documents appear in the

Mortgage File delivered to the Trustee.

 

         Capitalized words and phrases used herein shall have the respective

meanings assigned to them in, the above-captioned Pooling and Servicing

Agreement.

 

          [NAME OF TRUSTEE]

 

          By:

             --------------------------------

          Name:

          Title:

 

  

  

  

EXHIBIT E

 

FORM OF REMITTANCE REPORT

 

(PROVIDED UPON REQUEST)

 

  

  

  

EXHIBIT F-1

 

REQUEST FOR RELEASE

(for trustee)

 

Loan Information

                     Name of Mortgagor:     ____________________________________

 

                     Master Servicer

                     Loan No.:              ____________________________________

Trustee

                     Name:                  ____________________________________

 

                     Address:               ____________________________________

 

                     Trustee

                     Mortgage File No.:     ____________________________________

 

REQUEST FOR REQUESTING DOCUMENTS (check one):

 

1.       Mortgage Loan Liquidated.

                  (The Master Servicer hereby certifies that all proceeds of

                  foreclosure, insurance or other liquidation have been finally

                  received and deposited into the Custodial Account to the

                  extent required pursuant to the Pooling and Servicing

                  Agreement.)

 

2.       Mortgage Loan in Foreclosure.

 

3.       Mortgage Loan Repurchased Pursuant to Section 9.01 of the Pooling and

         Servicing Agreement.

 

4.       Mortgage Loan Repurchased Pursuant to Article II of the Pooling and

         Servicing Agreement.

                  (The Master Servicer hereby certifies that the repurchase

                  price has been deposited into the Custodial Account pursuant

                  to the Pooling and Servicing Agreement.)

 

5.       Other (explain).

 

         _______________________________________________________________________

         _______________________________________________________________________

         _______________________________________________________________________

         _______________________________________________________________________

         _______________________________________________________________________

 

         The undersigned Master Servicer hereby acknowledges that it has

received from the Trustee for the Holders of Mortgage Pass-Through Certificates,

Series 20__-_, the documents referred to below (the "Documents"). All

capitalized terms not otherwise defined in this Request for Release shall have

the meanings given them in the Pooling and Servicing Agreement, dated as of

__________ 1, 20__ (the "Pooling and Servicing Agreement"), among Opteum

Mortgage Acceptance Corp, [Name of Master Servicer] and the Trustee.

 

(_)      Promissory Note dated _________________, 20__, in the original

         principal sum of $__________, made by __________________, payable to,

         or endorsed to the order of, the Trustee.

 

(_)      Mortgage recorded on _________________________ as instrument no.

         ___________ in the County Recorders Office of the County of

         ______________________, State of _____________________ in

         book/reel/docket of official records at page/image _______________.

 

(_)      Deed of Trust recorded on ____________________ as instrument

         no._____________ in the County Recorder's Office of the County of

         ______________________, State of _____________________in

         book/reel/docket __________________ of official records at page/image

         ________________.

 

(_)      Assignment of Mortgage or Deed of Trust to the Trustee, recorded on

         _______________ as instrument no. ______________ in the County

         Recorder's Office of the County of ________________, State of

         ___________________ in book/reel/docket ____________ of official

         records at page/image -----------.

 

(_)      Other documents, including any amendments, assignments or other

         assumptions of the Mortgage Note or Mortgage.

 

         (_)      _____________________________

 

         (_)      _____________________________

 

         (_)      _____________________________

 

         (_)      _____________________________

 

         The undersigned Master Servicer hereby acknowledges and agrees as

follows:

 

                           (1) The Master Servicer shall hold and retain

                  possession of the Documents in trust for the benefit of the

                  Trustee, solely for the purposes provided in the Agreement.

 

                           (2) The Master Servicer shall not cause or knowingly

                  permit the Documents to become subject to, or encumbered by,

                  any claim, liens, security interest, charges, writs of

                  attachment or other impositions nor shall the Master Servicer

                  assert or seek to assert any claims or rights of setoff to or

                  against the Documents or any proceeds thereof.

 

                           (3) The Master Servicer shall return each and every

                  Document previously requested from the Mortgage File to the

                  Custodian when the need therefor no longer exists, unless the

                  Mortgage Loan relating to the Documents has been liquidated

                  and the proceeds thereof have been remitted to the Custodial

                  Account and except as expressly provided in the Agreement.

 

                           (4) The Documents and any proceeds thereof, including

                  any proceeds of proceeds, coming into the possession or

                  control of the Master Servicer shall at all times be earmarked

                  for the account of the Trustee, and the Master Servicer shall

                  keep the Documents and any proceeds separate and distinct from

                  all other property in the Master Servicer's possession,

                  custody or control.

 

          [NAME OF MASTER SERVICER]

 

          By:

             -------------------------------------

 

          Title:

                ----------------------------------

 

Date: _________________, 20__

 

  

  

  

EXHIBIT F-2

 

REQUEST FOR RELEASE

[Mortgage Loans Paid in Full]

 

OFFICER'S CERTIFICATE AND TRUST RECEIPT

MORTGAGE PASS-THROUGH CERTIFICATES

SERIES 20__-_

 

_____________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN OFFICER

OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER SIGNATURE,

AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

 

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND

SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

 

ALL PAYMENTS OF PRINCIPAL, PREMIUM (IF ANY), AND INTEREST HAVE BEEN MADE.

 

LOAN NUMBER:                  BORROWER'S NAME:

             -----------------------------------------

COUNTY:

        ----------------------------------------------

 

WE HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,

WHICH ARE REQUIRED TO BE DEPOSITED IN THE CUSTODIAL ACCOUNT PURSUANT TO SECTION

3.10 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE CREDITED.

 

_________ ____________                  DATED:__________________________

 

//       VICE PRESIDENT

 

//       ASSISTANT VICE PRESIDENT

 

  

  

  

EXHIBIT G-1

 

FORM OF INVESTOR REPRESENTATION LETTER

 

___________,20___

 

Opteum Mortgage Acceptance Corporation

[*Address]

 

[Name of Trustee]

__________________________

__________________________

 

Attention: Opteum Mortgage Acceptance Corp, Series 20__-_

 

         Re:      Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_, Class __

 

Ladies and Gentlemen:

 

         ______________ (the "Purchaser") intends to purchase from

______________ (the "Seller") $_________ Initial Certificate Principal Balance

of Mortgage Pass-Through Certificates, Series 20__-_, Class _____ (the

"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the

"Pooling and Servicing Agreement"), dated as of _________ 1, 20__ among Opteum

Mortgage Acceptance Corp, as depositor (the "Depositor"), [Name of Master

Servicer], as master servicer and [Name of Trustee], as trustee (the "Trustee").

All terms used herein and not otherwise defined shall have the meanings set

forth in the Pooling and Servicing Agreement. The Purchaser hereby certifies,

represents and warrants to, and covenants with, the Depositor and the Trustee

that:

 

                  1. The Purchaser understands that (a) the Certificates have

         not been and will not be registered or qualified under the Securities

         Act of 1933, as amended (the "Act") or any state securities law, (b)

         the Depositor is not required to so register or qualify the

         Certificates, (c) the Certificates may be resold only if registered and

         qualified pursuant to the provisions of the Act or any state securities

         law, or if an exemption from such registration and qualification is

         available, (d) the Pooling and Servicing Agreement contains

         restrictions regarding the transfer of the Certificates and (e) the

         Certificates will bear a legend to the foregoing effect.

 

                  2. The Purchaser is acquiring the Certificates for its own

         account for investment only and not with a view to or for sale in

         connection with any distribution thereof in any manner that would

         violate the Act or any applicable state securities laws.

 

                  3. The Purchaser is (a) a substantial, sophisticated

         institutional investor having such knowledge and experience in

         financial and business matters, and, in particular, in such matters

         related to securities similar to the Certificates, such that it is

         capable of evaluating the merits and risks of investment in the

         Certificates, (b) able to bear the economic risks of such an investment

         and (c) an "accredited investor" within the meaning of Rule 501 (a)

         promulgated pursuant to the Act.

 

                  4. The Purchaser has been furnished with, and has had an

         opportunity to review (a) [a copy of the Private Placement Memorandum,

         dated _________ __, 20__, relating to the Certificates (b)] a copy of

         the Pooling and Servicing Agreement and [(b)] [(c)] such other

         information concerning the Certificates, the Mortgage Loans and the

         Depositor as has been requested by the Purchaser from the Depositor or

         the Seller and is relevant to the Purchaser's decision to purchase the

         Certificates. The Purchaser has had any questions arising from such

         review answered by the Depositor or the Seller to the satisfaction of

         the Purchaser. [If the Purchaser did not purchase the Certificates from

         the Seller in connection with the initial distribution of the

         Certificates and was provided with a copy of the Private Placement

         Memorandum (the "Memorandum") relating to the original sale (the

         "Original Sale") of the Certificates by the Depositor, the Purchaser

         acknowledges that such Memorandum was provided to it by the Seller,

         that the Memorandum was prepared by the Depositor solely for use in

         connection with the Original Sale and the Depositor did not participate

         in or facilitate in any way the purchase of the Certificates by the

         Purchaser from the Seller, and the Purchaser agrees that it will look

         solely to the Seller and not to the Depositor with respect to any

         damage, liability, claim or expense arising out of, resulting from or

         in connection with (a) error or omission, or alleged error or omission,

         contained in the Memorandum, or (b) any information, development or

         event arising after the date of the Memorandum.]

 

                  5. The Purchaser has not and will not nor has it authorized or

         will it authorize any person to (a) offer, pledge, sell, dispose of or

         otherwise transfer any Certificate, any interest in any Certificate or

         any other similar security to any person in any manner, (b) solicit any

         offer to buy or to accept a pledge, disposition of other transfer of

         any Certificate, any interest in any Certificate or any other similar

         security from any person in any manner, (c) otherwise approach or

         negotiate with respect to any Certificate, any interest in any

         Certificate or any other similar security with any person in any

         manner, (d) make any general solicitation by means of general

         advertising or in any other manner or (e) take any other action, that

         (as to any of (a) through (e) above) would constitute a distribution of

         any Certificate under the Act, that would render the disposition of any

         Certificate a violation of Section 5 of the Act or any state securities

         law, or that would require registration or qualification pursuant

         thereto. The Purchaser will not sell or otherwise transfer any of the

         Certificates, except in compliance with the provisions of the Pooling

         and Servicing Agreement.

 

             Very truly yours,

 

             -------------------------------------

             (Purchaser)

 

             By:

                ----------------------------------

             Name:

                  --------------------------------

             Title:

                   -------------------------------

 

  

  

  

EXHIBIT G-2

 

FORM OF TRANSFEROR REPRESENTATION LETTER

 

______________,20____

 

Opteum Mortgage Acceptance Corporation

[*Address]

 

[Name of Trustee]

__________________________

__________________________

 

Attention: Opteum Mortgage Acceptance Corporation, Series 20__-_

 

         Re:      Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_, Class __

 

Ladies and Gentlemen:

 

         In connection with the sale by ___________ (the "Seller") to ________

(the "Purchaser") of $_________ Initial Certificate Principal Balance of

Mortgage Pass-Through Certificates, Series 20__-_, Class _____ (the

"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the

"Pooling and Servicing Agreement"), dated as of __________ 1, 20__ among Opteum

Mortgage Acceptance Corporation, as depositor (the "Depositor"), [Name of Master

Servicer], as master servicer and [Name of Trustee], as trustee (the "Trustee").

The Seller hereby certifies, represents and warrants to, a covenants with, the

Depositor and the Trustee that:

 

         Neither the Seller nor anyone acting on its behalf has (a) offered,

pledged, sold, disposed of or otherwise transferred any Certificate, any

interest in any Certificate or any other similar security to any person in any

manner, (b) has solicited any offer to buy or to accept a pledge, disposition or

other transfer of any Certificate, any interest in any Certificate or any other

similar security from any person in any manner, (c) has otherwise approached or

negotiated with respect to any Certificate, any interest in any Certificate or

any other similar security with any person in any manner, (d) has made any

general solicitation by means of general advertising or in any other manner, or

(e) has taken any other action, that (as to any of (a) through (e) above) would

constitute a distribution of the Certificates under the Securities Act of 1933

(the "Act"), that would render the disposition of any Certificate a violation of

Section 5 of the Act or any state securities law, or that would require

registration or qualification pursuant thereto. The Seller will not act in any

manner set forth in the foregoing sentence with respect to any Certificate. The

Seller has not and will not sell or otherwise transfer any of the Certificates,

except in compliance with the provisions of the Pooling and Servicing Agreement.

 

          Very truly yours,

 

          ----------------------------------------

          (Seller)

 

          By:

             -------------------------------------

          Name:

               -----------------------------------

          Title:

                ----------------------------------

 

  

  

  

EXHIBIT G-3

FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

 

STATE OF                   )

                           :ss.:

COUNTY OF                  )

 

         ___________________, being first duly sworn, deposes, represents and

warrants:

 

         1. That he/she is [Title of Officer] of [Name of Owner], a [savings

institution] [corporation] duly organized and existing under the laws of [the

State of __________] [the United States], (the "Owner"), (record or beneficial

owner of the Class R Certificates (the "Class R Certificates") on behalf of

which he/she makes this affidavit and agreement). This Class R Certificates were

issued pursuant to the Pooling and Servicing Agreement (the "Pooling and

Servicing Agreement") dated as of _________ 1, 20__ among Opteum Mortgage

Acceptance Corporation, as depositor, [Name of Master Servicer], as master servicer

(the "Master Servicer"), and [Name of Trustee], as trustee (the "Trustee").

 

         2. That the Owner (i) is not and will not be a "disqualified

organization" as of _____________ [date of transfer] within the meaning of

Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended (the

"Code"), (ii) will endeavor to remain other than a disqualified organization for

so long as it retains its ownership interest in the Class R Certificates, and

(iii) is acquiring the Class R Certificates for its own account or for the

account of another Owner from which it has received an affidavit and agreement

in substantially the same form as this affidavit and agreement. (For this

purpose, a "disqualified organization" means the United States, any state or

political subdivision thereof, any agency or instrumentality of any of the

foregoing (other than an instrumentality all of the activities of which are

subject to tax and, except for Freddie Mac, a majority of whose board of

directors is not selected by any such governmental entity) or any foreign

government, international organization or any agency or instrumentality of such

foreign government or organization, any rural electric or telephone cooperative,

or any organization (other than certain farmers' cooperatives) that is generally

exempt from federal income tax unless such organization is subject to the tax on

unrelated business taxable income).

 

         3. That the Owner is aware (i) of the tax that would be imposed on

transfers of Class R Certificates to disqualified organizations under the Code,

that applies to all transfers of Class R Certificates after March 31, 1988; (ii)

that such tax would be on the transferor, or, if such transfer is through an

agent (which person includes a broker, nominee or middleman) for a disqualified

organization, on the agent; (iii) that the person otherwise liable for the tax

shall be relieved of liability for the tax if the transferee furnishes to such

person an affidavit that the transferee is not a disqualified organization and,

at the time of transfer, such person does not have actual knowledge that the

affidavit is false; and (iv) that the Class R Certificates may be "noneconomic

residual interests" within the meaning of Treasury regulations promulgated

pursuant to the Code and that the transferor of a noneconomic residual interest

will remain liable for any taxes due with respect to the income on such residual

interest, unless no significant purpose of the transfer was to impede the

assessment or collection of tax.

 

         4. That the Owner is aware of the tax imposed on a "pass-through

entity" holding Class R Certificates if at any time during the taxable year of

the pass-through entity a disqualified organization is the record holder of an

interest in such entity. (For this purpose, a "pass through entity" includes a

regulated investment company, a real estate investment trust or common trust

fund, a partnership, trust or estate, and certain cooperatives.)

 

         5. That the Owner is aware that the Trustee will not register the

transfer of any Class R Certificates unless the transferee, or the transferee's

agent, delivers to it an affidavit and agreement, among other things, in

substantially the same form as this affidavit and agreement. The Owner expressly

agrees that it will not consummate any such transfer if it knows or believes

that any of the representations contained in such affidavit and agreement are

false.

 

         6. That the Owner has reviewed the restrictions set forth on the face

of the Class R Certificates and the provisions of Section 5.02(f) of the Pooling

and Servicing Agreement under which the Class R Certificates were issued (in

particular, clause (iii)(A) and (iii)(B) of Section 5.02(f) which authorize the

Trustee to deliver payments to a person other than the Owner and negotiate a

mandatory sale by the Trustee in the event the Owner holds such Certificates in

violation of Section 5.02(f)). The Owner expressly agrees to be bound by and to

comply with such restrictions and provisions.

 

         7. That the Owner consents to any additional restrictions or

arrangements that shall be deemed necessary upon advice of counsel to constitute

a reasonable arrangement to ensure that the Class R Certificates will only be

owned, directly or indirectly, by an Owner that is not a disqualified

organization.

 

         8. The Owner's Taxpayer Identification Number is _____________________.

 

         9. This affidavit and agreement relates only to the Class R

Certificates held by the owner and not to any other holder of the Class R

Certificates. The Owner understands that the liabilities described herein relate

only to the Class R Certificates.

 

         10. That no purpose of the Owner relating to the transfer of any of the

Class R Certificates by the Owner is or will be to impede the assessment or

collection of any tax.

 

         11. That the Owner has no present knowledge or expectation that it will

be unable to pay any United States taxes owed by it so long as any of the

Certificates remain outstanding. In this regard, the Owner hereby represents to

and for the benefit of the person from whom it acquired the Class R Certificate

that the Owner intends to pay taxes associated with holding such Class R

Certificate as they become due, fully understanding that it may incur tax

liabilities in excess of any cash flows generated by the Class R Certificate.

 

         12. That the Owner has no present knowledge or expectation that it will

become insolvent or subject to a bankruptcy proceeding for so long as any of the

Class R Certificates remain outstanding.

 

         13. The Owner is a citizen or resident of the United States, a

corporation, partnership or other entity created or organized in, or under the

laws of, the United States or any political subdivision thereof, provided that

with respect to any partnership or other entity treated as a partnership for

United States federal income tax purposes, all persons that own an interest in

such partnership either directly or through any entity that is not a corporation

for United States federal income tax purposes are required by the applicable

operative agreement to be United States Persons, or an estate or trust whose

income from sources without the United States is includible in gross income for

United States federal income tax purposes regardless of its connection with the

conduct of a trade or business within the United States.

 

         14. (a) The Certificates (i) are not being acquired by, and will not be

transferred to, any employee benefit plan within the meaning of section 3(3) of

the Employee Retirement Income Security Act of 1974, as amended ("ERISA") or

other retirement arrangement, including individual retirement accounts and

annuities, Keogh plans and bank collective investment funds and insurance

company general or separate accounts in which such plans, accounts or

arrangements are invested, that is subject to Section 406 of ERISA or Section

4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a

"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the

meaning of the Department of Labor ("DOL") regulation, 29 C.F.R. ss. 2510.3-101

or otherwise under ERISA, and (iii) will not be transferred to any entity that

is deemed to be investing in plan assets within the meaning of the DOL

regulation, 29 C.F.R. ss. 2510.3-101 or otherwise under ERISA; or

 

         (b) The Owner will provide the Trustee, the Depositor and the Master

Servicer with an opinion of counsel acceptable to and in form and substance

satisfactory to the Trustee, the Depositor and the Master Servicer to the effect

that the purchase of Certificates is permissible under applicable law, will not

constitute or result in any non-exempt prohibited transaction under ERISA or

Section 4975 of the Code and will not subject the Trustee, the Depositor or the

Master Servicer to any obligation or liability (including obligations or

liabilities under ERISA or Section 4975 of the Code) in addition to those

undertaken in the Pooling and Servicing Agreement.

 

         In addition, the Owner hereby certifies, represents and warrants to,

and covenants with, the Depositor, the Trustee and the Master Servicer that the

Owner will not transfer such Certificates to any Plan or person unless either

such Plan or person meets the requirements set forth in either (a) or (b) above.

 

         Capitalized terms used but not defined herein shall have the meanings

assigned in the Pooling and Servicing Agreement.

 

  

  

  

 

         IN WITNESS WHEREOF, the Owner has caused this instrument to be executed

on its behalf, by its [Title of Officer] and its corporate seal to be hereunto

attached, attested by its [Assistant] Secretary, this ______ day of

_____________, _____.

 

                      [NAME OF OWNER]

 

          By:

             -------------------------------------

                       [Name of Officer]

                       [Title of Officer]

 

[Corporate Seal]

 

ATTEST:

 

- -------------------------------

[Assistant] Secretary

 

         Personally appeared before me the above-named [Name of Officer], known

or proved to me to be the same person who executed the foregoing instrument and

to be the [Title of Officer] of the Owner, and acknowledged to me that such

person executed the same as such person's free act and deed and the free act and

deed of the Owner.

 

         Subscribed and sworn before me this ____ day of ___________, 20___.

 

                          NOTARY PUBLIC

 

          COUNTY OF

                    ------------------------------

          STATE OF

                   -------------------------------

          My Commission expires the ____ day of

          __________ ,20___.

 

  

  

  

EXHIBIT G-4

 

FORM OF TRANSFEROR CERTIFICATE

 

______________, 20___

 

Opteum Mortgage Acceptance Corporation

[*Address]

 

[Name of Trustee]

_______________________________

_______________________________

 

Attention: Opteum Mortgage Acceptance Corporation, Series 20__-_

 

                  Re:      Opteum Mortgage Acceptance Corporation,

                           Mortgage Pass-Through Certificates,

                           Series 20__-_, Class R

 

Ladies and Gentlemen:

 

         This letter is delivered to you in connection with the sale by

________________________ (the "Seller") to

__________________________________________ (the "Purchaser") of a ____%

Percentage Interest in the Mortgage Pass-Through Certificates, Series 20__-_,

Class R (the "Certificates"), issued pursuant to Section 5.02 of the Pooling and

Servicing Agreement (the "Pooling and Servicing Agreement"), dated as of

_________ 1, 20__, among Opteum Mortgage Acceptance Corporation, as depositor (the

"Depositor"), [Name of Master Servicer], as master servicer and [Name of

Trustee], as trustee (the "Trustee"). All terms used herein and not otherwise

defined shall have the meaning set forth in the Pooling and Servicing Agreement.

The Seller hereby certifies, represents and warrants to, and covenants with, the

Depositor and the Trustee that:

 

         1. No purpose of the Seller relating to the sale of the Certificates by

the Seller to the Purchaser is or will be to impede the assessment or collection

of any tax.

 

         2. The Seller understands that the Purchaser has delivered to the

Trustee and the Master Servicer a transfer affidavit and agreement in the form

attached to the Pooling and Servicing Agreement as Exhibit G-3. The Seller does

not know or believe that any representation contained therein is false.

 

         3. The Seller has at the time of the transfer conducted a reasonable

investigation of the financial condition of the Purchaser as contemplated by

Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result of that

investigation, the Seller has determined that the Purchaser has historically

paid its debts as they have become due and has found no significant evidence to

indicate that the Purchaser will not continue to pay its debts as they become

due in the future. The Seller understands that the transfer of the Certificates

may not be respected for United States income tax purposes (and the Seller may

continue to be liable for United States income taxes associated therewith)

unless the Seller has conducted such an investigation.

 

         4. The Seller has no actual knowledge that the proposed Transferee is a

Disqualified Organization, an agent of a Disqualified Organization or a

Non-United States Person.

 

          Very truly yours,

 

          -----------------------------------

          (Seller)

 

          By:

             --------------------------------

          Name:

               ------------------------------

          Title:

                -----------------------------

 

  

  

  

EXHIBIT G-5

FORM OF INVESTOR REPRESENTATION LETTER

FOR INSURANCE COMPANIES

 

  

  

  

EXHIBIT H

 

MORTGAGE LOAN SCHEDULE

 

(PROVIDED UPON REQUEST)

 

  

  

  

EXHIBIT I

 

SELLER'S WARRANTY CERTIFICATE

 

  

  

  

EXHIBIT J

 

FORM OF NOTICE UNDER SECTION 3.24 OF POOLING AND SERVICING AGREEMENT

 

___________ __, 20__

 

[NAME OF TRUSTEE]

___________________________

___________________________

 

                  Re:      Opteum Mortgage Acceptance Corporation,

                           Mortgage Pass-Through Certificates,

                           Series 20__-_

 

         Pursuant to Section 3.25 of the Pooling and Servicing Agreement, dated

as of _________ 1, 20__, relating to the Certificates referenced above, the

undersigned does hereby notify you that:

 

         (a) The prepayment assumption used in pricing the Certificates with

respect to the Mortgage Loans in Series 20__-_ consisted of a Prepayment

Assumption (the "Prepayment Assumption") of ___% per annum.

 

         (b) With respect to each Class of Certificates comprising the captioned

series, set forth below is (i), the first price, as a percentage of the

Certificate Principal Balance or Notional Amount of each Class of Certificates,

at which 10% of the aggregate Certificate Principal Balance or Notional Amount

of each such Class of Certificates was first sold at a single price, if

applicable, or (ii) if more than 10% of a Class of Certificates have been sold

but no single price is paid for at least 10% of the aggregate Certificate

Principal Balance or Notional Amount of such Class of Certificates, then the

weighted average price at which the Certificates of such Class were sold

expressed as a percentage of the Certificate Principal Balance or Notional

Amount of such Class of Certificates, (iii) if less than 10% of the aggregate

Certificate Principal Balance or Notional Amount of a Class of Certificates has

been sold, the purchase price for each such Class of Certificates paid by [Name

of Underwriter] (the "Underwriter"), expressed as a percentage of the

Certificate Principal Balance or Notional Amount of such Class of Certificates

calculated by: (1) estimating the fair market value of each such Class of

Certificates as of March, 2002; (2) adding such estimated fair market value to

the aggregate purchase prices of each Class of Certificates described in clause

(i) or (ii) above; (3) dividing each of the fair market values determined in

clause (1) by the sum obtained in clause (2); (4) multiplying the quotient

obtained for each Class of Certificates in clause (3) by the purchase price paid

by the Underwriter for all the Certificates purchased by it; and (5) for each

Class of Certificates, dividing the product obtained from such Class of

Certificates in clause (4) by the initial Certificate Principal Balance or

Notional Amount of such Class of Certificates or (iv) the fair market value (but

not less than zero) as of the Closing Date of each Certificate of each Class of

Certificates retained by the Depositor or an affiliate corporation, or delivered

to the seller:

 

SERIES 20__-_

 

Class A: ____%

 

Class B: ____%

 

Class R: ____%

 

         The prices and values set forth above do not include accrued interest

with respect to periods before the closing.

 

          OPTEUM MORTGAGE ACCEPTANCE CORPORATION

 

          By:

             --------------------------------

          Name:

          Title:

 

  

  

  

EXHIBIT K

FORM OF DEPOSITOR CERTIFICATION

 

         Re:      Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_

 

         I, __________________________, certify that:

 

1.       I have reviewed this annual report on Form 10-K, and all reports on

         Form 8-K containing distribution and servicing reports filed in respect

         of periods included in the year covered by this annual report, of

         Opteum Mortgage Investment Mortgage Trust [________] (the "Trust");

 

2.       Based on my knowledge, the information in these reports, taken as a

         whole, does not contain any untrue statement of a material fact or omit

         to state a material fact necessary to make the statements made, in

         light of the circumstances under which such statements were made, not

         misleading as of the last day of the period covered by this annual

         report;

 

3.       Based on my knowledge, the distribution information required to be

         prepared by the Trustee based upon the servicing information required

         to be provided by each Servicer under the Pooling and Servicing

         Agreement is included in these reports;

 

4.       Based on my knowledge and upon the annual compliance statements

         included in the report and required to be delivered to the Trustee in

         accordance with the terms of the Pooling and Servicing Agreement and

         based upon the review required under the Pooling and Servicing

         Agreement, and except as disclosed in the report, each Servicer has

         fulfilled its obligations under the Pooling and Servicing Agreement;

         and

 

5.       The reports disclose all significant deficiencies relating to each

         Servicer's compliance with the minimum servicing standards based, in

         each case, upon the report provided by an independent public

         accountant, after conducting a review in compliance with the Uniform

         Single Attestation Program for Mortgage Bankers or similar standard as

         set forth in the Pooling and Servicing Agreement, that is included in

         these reports.

 

         In giving the certifications above, I have reasonably relied on the

information provided to me by the following unaffiliated parties: each Servicer

and the Trustee.

 

         Capitalized terms used but not defined herein have the meanings

ascribed to them in the Pooling and Servicing Agreement, dated [___________]

(the "Pooling and Servicing Agreement"), among Opteum Mortgage Acceptance Corporation,

as depositor (the "Depositor"), [__________], as a servicer

("[__________]"),[__________], as master servicer and [__________], as trustee

(the "Trustee").

 

           ------------------------------------

           [Name] [Title]

           [Date]

 

  

  

  

EXHIBIT L

 

FORM OF TRUSTEE CERTIFICATION

 

         Re:      Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_

 

         [__________] (the "Trustee") hereby certifies to Opteum Mortgage

Acceptance Corporation (the "Depositor"), and each Person, if any, who "controls" the

Depositor within the meaning of the Securities Act of 1933, as amended, and its

officers, directors and affiliates, and with the knowledge and intent that they

will rely upon this certification, that:

 

(a) The Trustee has reviewed the annual report on Form 10-K for the fiscal year

[___], and all reports on Form 8-K containing distribution reports filed in

respect of periods included in the year covered by that annual report, of the

Depositor relating to the above-referenced trust;

 

(b) Based on the Trustee's knowledge, and assuming the accuracy and completeness

of the information supplied to the Trustee by each Servicer, the distribution

information in the distribution reports contained in all reports on Form 8-K

included in the year covered by the annual report on Form 10-K for fiscal year

[_____], prepared by the Trustee, taken as a whole, does not contain any untrue

statement of a material fact or omit to state a material fact required by the

Pooling and Servicing Agreement to be included therein and necessary to make the

statements made, in light of the circumstances under which such statements were

made, not misleading as of the last day of the period covered by that annual

report; and

 

(c) Based on the Trustee's knowledge, the distribution information required to

be provided by the Trustee under the Pooling and Servicing Agreement is included

in these reports.

 

         Capitalized terms used but not defined herein have the meanings

ascribed to them in the Pooling and Servicing Agreement, dated [__________] (the

"Pooling and Servicing Agreement"), among Opteum Mortgage Acceptance Corporation, as

depositor (the "Depositor"), [__________], as a servicer

("[__________]"),[__________], as master servicer and [__________], as trustee

(the "Trustee").

 

          [__________]

          as Trustee

 

          By:

             -------------------------------------

          [Name]

          [Title] [Date]

 

  

  

  

EXHIBIT M

 

FORM SERVICER CERTIFICATION

 

         Re:      Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_

 

         I, ___________________________, a duly elected and acting officer of

[__________________] (the "Master Servicer"), certify pursuant to Section

8.11(d) of the Pooling and Servicing Agreement to the Depositor, the Trustee and

each Person, if any, who "controls" the Depositor or the Trustee within the

meaning of the Securities Act of 1933, as amended, and their respective officers

and directors, with respect to the calendar year immediately preceding the date

of this Certificate (the "Relevant Year"), as follows":

 

(a) For purposes of this Certificate, "Relevant Information" means the

information in the certificate provided pursuant to Section 3.19 of the Pooling

and Servicing Agreement (the "Annual Compliance Certificate") for the Relevant

Year and the information in all servicing reports required pursuant to the

Pooling and Servicing Agreement to be provided by the Servicer to the Trustee

during the Relevant Year (as such information is amended or corrected in writing

and delivered to the Trustee). Based on my knowledge, the Relevant Information,

taken as a whole, does not contain any untrue statement of a material fact or

omit to state a material fact required to be stated therein which is necessary

to make the statements made therein, in light of the circumstances under which

such statements were made, not misleading as of the last day of the Relevant

Year;

 

(b) The Relevant Information required to be provided to the Trustee under the

Pooling and Servicing Agreement has been provided to the Trustee;

 

(c) I am responsible for reviewing the activities performed by the Servicer

under the Pooling and Servicing Agreement during the Relevant Year. Based upon

the review required under the Pooling and Servicing Agreement and except as

disclosed in the Annual Compliance Certificate or the accountants' statement

provided pursuant to Section 3.20 of the Pooling and Servicing Agreement, to the

best of my knowledge, the Servicer has fulfilled its obligations under the

Pooling and Servicing Agreement throughout the Relevant Year.

 

         Capitalized terms used but not defined herein have the meanings

ascribed to them in the Pooling and Servicing Agreement, dated [___________]

(the "Pooling and Servicing Agreement"), among Opteum Mortgage Acceptance Corporation,

as depositor (the "Depositor"), [__________], as a servicer

("[__________]"),[__________], as master servicer and [__________], as trustee

(the "Trustee").

 

          [____________________________________],

          as Master Servicer

 

          By: __________________________________

          [Name]

          [Title]

 

  

  

  

EXHIBIT N

 

FORM 10-D, FORM 8-K AND FORM 10-K

REPORTING RESPONSIBILITY

 

         As to each item described below, the entity indicated as the

Responsible Party shall be responsible for reporting the information to the

Trustee pursuant to Section 3.20(e):

 

	
Form

	
Item

	
Description

	
Responsible Party

	  	  	  	  
	
10-D

	
1

	
Distribution and Pool Performance Information

	  
	  	  	
ITEM 1121 - DISTRIBUTION AND POOL PERFORMANCE INFORMATION

	  
	  	  	
(1) Any applicable record dates, accrual dates, determination dates for calculating distributions and actual distribution dates for the distribution period.

	
Master Servicer, Servicer

	  	  	
(2) Cash flows received and the sources thereof for distributions, fees and expenses (including portfolio yield, if applicable).

	
Master Servicer, Servicer

	  	  	
(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:

	
Trustee

	  	  	
(i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party receiving such fees or expenses.

	
Trustee

	  	  	
(ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of Regulation AB (such as insurance premiums or other enhancement maintenance fees), with an identification of the general purpose of such payments and the party receiving such payments.

	
Trustee

	  	  	
(iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by class or series and any principal or interest shortfalls or carryovers.

	
Trustee

	  	  	
(iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.

	
Trustee

	  	  	
(4) Beginning and ending principal balances of the asset-backed securities.

	
Trustee

	  	  	
(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups or incremental ranges.

	
Master Servicer, Servicer

	  	  	
(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.

	
Master Servicer, Servicer, Trustee

	  	  	
(7) Any amounts drawn on any credit enhancement Trustee or other support identified in Item 1114 of Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if known and applicable.

	
Trustee

	  	  	
(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average life, weighted average remaining term, pool factors and prepayment amounts. For asset-backed securities backed by leases where a portion of the securitized pool balance is attributable to residual values of the physical property underlying the leases, this information also would include turn-in rates and residual value realization rates.

	
Trustee

	  	  	
(9) Delinquency and loss information for the period. In addition, describe any material changes to the information specified in Item 1100(b)(5) of Regulation AB regarding the pool assets.

	
Master Servicer, Servicer

	  	  	
(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for reimbursements.

	
Master Servicer, Servicer

	  	  	
(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over time.

	
Master Servicer, Servicer

	  	  	
(12) Material breaches of pool asset representations or warranties or transaction covenants.

	
Master Servicer, Servicer

	  	  	
(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.

	
Master Servicer, Servicer

	  	  	
(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool, any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a prefunding or revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable. Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or select the new pool assets.

	
Depositor, Trustee

	  	
2

	
Legal Proceedings

	  
	  	  	
ITEM 1117 - LEGAL PROCEEDINGS

	
Sponsor, Depositor, Trustee, Issuing Entity, Servicer, Originator

	  	
3

	
Sales of Securities and Use of Proceeds

	  
	  	  	
INFORMATION FROM ITEM 2(A) OF PART II OF FORM 10-Q

	
Trustee

	  	  	
DESCRIPTION OF THE RELATIVE PRIORITY OF SUCH ADDITIONAL SECURITIES TO THE SECURITIES BEING OFFERED AND RIGHTS TO THE UNDERLYING POOL ASSETS AND THEIR CASH FLOWS.

	
Issuing Entity

	  	  	
DESCRIPTION OF THE ALLOCATION OF CASH FLOW FROM THE ASSET POOL AND ANY EXPENSES OR LOSSES AMONG THE VARIOUS SERIES OR CLASSES.

	
Issuing Entity

	  	  	
DESCRIPTION OF THE TERMS UNDER WHICH SUCH ADDITIONAL SERIES OR CLASSES MAY BE ISSUED AND POOL ASSETS INCREASED OR CHANGED.

	
Issuing Entity

	  	  	
DESCRIPTION OF THE TERMS OF ANY SECURITY HOLDER APPROVAL OR NOTIFICATION OF SUCH ADDITIONAL SECURITIES.

	
Issuing Entity

	  	  	
STATE WHICH PARTY HAS THE AUTHORITY TO DETERMINE WHETHER SUCH ADDITIONAL SECURITIES MAY BE ISSUED. IN ADDITION, IF THERE ARE CONDITIONS TO SUCH ADDITIONAL ISSUANCE, DISCLOSE WHETHER OR NOT THERE WILL BE AN INDEPENDENT VERIFICATION OF SUCH PERSON'S EXERCISE OF AUTHORITY OR DETERMINATIONS.

	
Issuing Entity

	  	
4

	
Defaults Upon Senior Securities

	  
	  	  	
INFORMATION FROM ITEM 3 OF PART II OF FORM 10-Q

	
Master Servicer

	  	
5

	
Submission of Matters to a Vote of Security Holders

	  
	  	  	
INFORMATION FROM ITEM 4 OF PART II OF FORM 10-Q

	
Trustee

	  	
6

	
Significant Obligors of Pool Assets

	  
	  	  	
ITEM 1112(B) - SIGNIFICANT OBLIGOR FINANCIAL INFORMATION*

	
Depositor

	  	  	
*THIS INFORMATION NEED ONLY BE REPORTED ON THE FORM 10-D FOR THE DISTRIBUTION PERIOD IN WHICH UPDATED INFORMATION IS REQUIRED PURSUANT TO THE ITEM.

	  
	  	
7

	
Significant Enhancement Provider Information

	  
	  	  	
ITEM 1114(B)(2) - CREDIT ENHANCEMENT PROVIDER FINANCIAL

	
Trustee

	  	  	
ITEM 1115(B) - DERIVATIVE COUNTERPARTY FINANCIAL INFORMATION*

	
Trustee

	  	  	
*THIS INFORMATION NEED ONLY BE REPORTED ON THE FORM 10-D FOR THE DISTRIBUTION PERIOD IN WHICH UPDATED INFORMATION IS REQUIRED PURSUANT TO THE ITEMS.

	  
	  	
8

	
Other Information

	  
	  	  	
DISCLOSE ANY INFORMATION REQUIRED TO BE REPORTED ON FORM 8-K DURING THE PERIOD COVERED BY THE FORM 10-D BUT NOT REPORTED

	
The Responsible Party for the applicable Form 8-K item as indicated below

	  	
9

	
Exhibits

	  
	  	  	
DISTRIBUTION REPORT

	
Master Servicer

	  	  	
EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K, SUCH AS MATERIAL AGREEMENTS

	
Trustee

	
8-K

	
1.01

	
Entry into a Material Definitive Agreement

	  
	  	  	
EXAMPLES: SERVICING AGREEMENTS, SWAP AGREEMENTS, CUSTODIAL AGREEMENTS

	
The Party that enters into the agreement

	  	
1.02

	
Termination of a Material Definitive Agreement

	
The Party to the agreement that is terminated

	  	
1.03

	
Bankruptcy or Receivership

	
Sponsor, Depositor, Master Servicer, Servicer, Trustee

	  	
2.04

	
Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

	  
	  	  	
INCLUDES AN EARLY AMORTIZATION, PERFORMANCE TRIGGER OR OTHER EVENT, INCLUDING EVENT OF DEFAULT, THAT WOULD MATERIALLY ALTER THE PAYMENT PRIORITY/DISTRIBUTION OF CASH FLOWS/AMORTIZATION SCHEDULE.

	
Servicer, Trustee

	  	
3.03

	
Material Modification to Rights of Security Holders

	
Trustee

	  	
5.03

	
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

	
Depositor

	  	
5.06

	
Change in Shell Company Status

 

	
Depositor

	  	
6.01

	
ABS Informational and Computational Material

	
Depositor

	  	
6.02

	
Change of Servicer or Trustee

	
Master Servicer, Servicer, Trustee

	  	
6.03

	
Change in Credit Enhancement or Other External Support

	  
	  	  	
COVERS TERMINATION OF AN ENHANCEMENT IN MANNER OTHER THAN BY ITS TERMS, THE ADDITION OF AN ENHANCEMENT, OR A MATERIAL CHANGE IN THE ENHANCEMENT PROVIDED, SUCH AS THE REPLACEMENT OF A SWAP PROVIDER.

	
Trustee

	  	
6.04

	
Failure to Make a Required Distribution

	
Trustee

	  	
6.05

	
Securities Act Updating Disclosure

	  
	  	  	
IF ANY MATERIAL POOL CHARACTERISTIC DIFFERS BY 5% OR MORE AT THE TIME OF ISSUANCE OF THE SECURITIES FROM THE DESCRIPTION IN THE PROSPECTUS, PROVIDE UPDATED INFORMATION.

	
Depositor

	  	  	
IF THERE ARE ANY NEW SERVICERS OR ORIGINATORS REQUIRED TO BE DISCLOSED UNDER REGULATION AB, PROVIDE THE INFORMATION CALLED FOR IN ITEMS 1108 AND 1110 RESPECTIVELY.

	
Master Servicer, Depositor

	  	
7.01

	
Regulation FD Disclosure

	
Depositor

	  	
8.01

	
Other Events

	  
	  	  	
ANY EVENT, WITH RESPECT TO WHICH INFORMATION IS NOT OTHERWISE CALL FOR IN FORM 8-K, THAT THE RESPONSIBLE Master Servicer, PARTY DEEMS OF IMPORTANCE TO SECURITY HOLDERS.

	
Sponsor, Depositor, Master Servicer, Servicer, Trustee

	  	
9.01

	
Financial Statements and Exhibits

	  
	  	  	
ITEM 1112(B) - SIGNIFICANT OBLIGOR FINANCIAL INFORMATION

	
Depositor

	  	  	
ITEM 1114(B)(2) - CREDIT ENHANCEMENT PROVIDER FINANCIAL INFORMATION

	
Trustee

	  	  	
ITEM 1115(B) - DERIVATIVE COUNTERPARTY FINANCIAL INFORMATION

	
Trustee

	  	  	
ITEM 1117 - LEGAL PROCEEDINGS

	
Sponsor, Depositor, Master Servicer, Servicer, Trustee

	  	  	
ITEM 1119 - AFFILIATIONS

	
Master Servicer, Servicer, Trustee, Originator, Significant Obligor, enhancement or support provider

	  	  	
TRANSACTION DOCUMENTS, SUCH AS THE POOLING AND SERVICING AGREEMENT OR INDENTURE.

	
Issuing Entity

	
10-K

	
1B

	
Unresolved Staff Comments

	
Depositor

	  	
9B

	
Other Information

	  
	  	  	
DISCLOSE ANY INFORMATION REQUIRED TO BE REPORTED ON FORM 8-K DURING THE FOURTH QUARTER COVERED BY THE FORM 10-K BUT NOT REPORTED

	
The Responsible Party for the applicable Form 8-K item as indicated above

	  	
15

	
Exhibits and Financial Statement Schedules

	  
	  	  	
ITEM 1112(B) - SIGNIFICANT OBLIGOR FINANCIAL INFORMATION

	
Depositor

	  	  	
ITEM 1114(B)(2) - CREDIT ENHANCEMENT PROVIDER FINANCIAL INFORMATION

	
Trustee

	  	  	
ITEM 1115(B) - DERIVATIVE COUNTERPARTY FINANCIAL INFORMATION

	
Trustee

	  	  	
ITEM 1122 - ASSESSMENT OF COMPLIANCE WITH SERVICING CRITERIA

	
Each Party participating in the servicing function

	  	  	
ITEM 1123 - SERVICER COMPLIANCE STATEMENT

	
Master Servicer, Servicer

  

  

  

EXHIBIT O

Form of Section 404 Notice

NOTICE OF SALE OF OWNERSHIP OF MORTGAGE LOAN

Under federal law, borrowers are required to be notified in writing whenever ownership of a mortgage loan secured by their principal dwelling is sold, transferred or assigned (collectively, “sold”) to a new owner.  This Notice is to inform you that the prior owner of your loan has sold your loan (described below) to the new owner identified below on _________, 20__.

**NOTE: The new owner identified below is not the servicer of your loan.  The servicer (identified below) acts on behalf of the new owner to handle the ongoing administration of your loan, including the collection of mortgage payments.  Please continue to send your mortgage payments as directed by the servicer, and NOT to the new owner.  Payments sent to the new owner instead of the servicer may result in late charges on your loan and your account becoming past due.  Neither the new owner nor the servicer is responsible for late charges or other consequences of any misdirected payment.

SHOULD YOU HAVE ANY QUESTIONS REGARDING YOUR LOAN, PLEASE CONTACT THE SERVICER USING THE CONTACT INFORMATION SET FORTH BELOW.  The servicer is authorized to handle routine inquiries and requests regarding your loan and, if necessary, to inform the new owner of your request and communicate to you any decision with respect to such request. **

Please note that the sale of your loan to the new owner may also result in a change of servicer.  If this occurs, you will receive a separate notice, required under federal law, providing information regarding the new servicer.

LOAN INFORMATION

Date of Loan:

Original Amount of Loan:

Date Your Loan was Transferred to the New Owner:

Address of Mortgaged Property:

SERVICER INFORMATION

Name:                                                      [_______]

Mailing Address:                                                                [_______]

Telephone Number (Toll free): [_______]

Website:                                                                [_______]

Scope of responsibilities: The servicer is responsible for ongoing administration of your loan, including receipt of legal notices, receipt and processing of payments, resolution of payment-related issues, and response to any other inquiries you may have regarding your loan.

NEW OWNER INFORMATION

Please be advised that all questions involving the administration of your loan (including questions related to payments, deferrals, modifications or foreclosures) should be directed to the servicer at the number above and not to the new owner.  The new owner does not have access to information relating to the administration of your loan, and will not be able to most answer loan-related questions.

Name:                                                      [_______]

Mailing Address:                                                                [_______]

Telephone Number (Toll free): [_______]

Scope of responsibilities: As new owner, the above-named trust holds legal title to your loan.  The above-named trustee, on behalf of the new owner, is authorized to receive legal notices and to exercise (or cause an agent on its behalf to exercise) certain rights of ownership with respect to your loan.

The transfer of the lien associated with your loan is currently recorded, or in the future may be recorded, in the public records of the local County Recorder’s office for the county where your property is located.  If checked •, ownership of your loan is also recorded on the registry of the Mortgage Electronic Registrations System at [_________].

The rights and obligations of the new owner, and consequently its authority to respond favorably to your requests or inquiries, may be limited by the terms of one or more contracts related to the securitization of your loan.

  

  

  

EXHIBIT P

FORM OF CERTIFICATION FOR NRSROs AND DEPOSITOR

[Date]

[Rule 17g-5 Information Provider]

[Address]

Attention:  Opteum Mortgage Acceptance Corporation, Mortgage Pass-Through

                  Certificates, Series 20__-_, Class __

In accordance with the requirements for obtaining certain information pursuant to the Pooling and Servicing Agreement, dated as of ___________ 1, 20__ (the “Pooling and Servicing Agreement”), by and among Opteum Mortgage Acceptance Corporation, as Depositor, [Master Servicer], as Master Servicer, and [Trustee], as Trustee with respect to the above-referenced certificates (the “Certificates”), the undersigned hereby certifies and agrees as follows:

With respect to any Nationally Recognized Statistical Rating Organization (“NRSRO”):

1.           The undersigned, an NRSRO, has provided the Depositor with the appropriate certifications under Exchange Act Rule 17g-5(e).

2.           The undersigned has access to the Depositor's 17g-5 website, and any confidentiality agreement applicable to the undersigned with respect to information obtained from the Depositor's 17g-5 website shall also be applicable to information obtained from the Rule 17g-5 Website.

3.           The undersigned shall be deemed to have recertified to the provisions herein each time it accesses any information on the Rule 17g-5 Website maintained by the [________].

With respect to the Depositor:

1.           The undersigned is the Depositor under the Pooling and Servicing Agreement.

Capitalized terms used but not defined herein shall have the respective meanings assigned thereto in the Pooling and Servicing Agreement.

BY ITS CERTIFICATION HEREOF, the undersigned has made the representations above and shall be deemed to have caused its name to be signed hereto by its duly authorized signatory, as of the date certified.

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