Document:

WILSHIRE CREDIT CORPORATION,

as Servicer

OCWEN LOAN SERVICING, LLC,

as Servicer

PNC BANK, N.A.,

as Servicer

SELECT PORTFOLIO SERVICING, INC.,

as Servicer and as Special Servicer

JPMORGAN CHASE BANK, N.A.,

as Master Servicer and Trust Administrator

HOME EQUITY MORTGAGE TRUST 2005-HF1,

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION,

as Indenture Trustee

	
             
 	
             
 	
             
 

 

SERVICING AGREEMENT

 

Dated as of November 4, 2005

	
             
 	
             
 	
             
 

 

 

 

ARTICLE I

 

DEFINITIONS

	
            Section 1.01
 	
            Definitions
 
	
            Section 1.02
 	
            Other Definitional Provisions
 
	
            Section 1.03
 	
            Interest Calculations
 

ARTICLE II

 

Representations and Warranties

	
            Section 2.01
 	
            Representations and Warranties Regarding the Servicers, the Special Servicer and the Master Servicer
 
	
            Section 2.02
 	
            Representations and Warranties of the Issuer
 
	
            Section 2.03
 	
            Breaches of Representations and Warranties; Notice
 

ARTICLE III

 

Administration and Servicing of Loans

	
            Section 3.01
 	
            The Servicers
 
	
            Section 3.02
 	
            Collection of Certain Loan Payments
 
	
            Section 3.03
 	
            Withdrawals from the Custodial Accounts
 
	
            Section 3.04
 	
            Maintenance of Hazard Insurance; Property Protection Expenses. 
 
	
            Section 3.05
 	
            Modification Agreements
 
	
            Section 3.06
 	
            Trust Estate; Loan Files
 
	
            Section 3.07
 	
            Realization Upon Defaulted Loans; Loss Mitigation
 
	
            Section 3.08
 	
            Issuer, Trust Administrator and Indenture Trustee to Cooperate
 
	
            Section 3.09
 	
            Servicing Compensation and Master Servicing Compensation; Payment of Certain Expenses by Servicers. 
 
	
            Section 3.10
 	
            Annual Statement as to Compliance
 
	
            Section 3.11
 	
            Annual Servicing Report
 
	
            Section 3.12
 	
            Access to Certain Documentation and Information Regarding the Loans
 
	
            Section 3.13
 	
            Maintenance of Certain Servicing Insurance Policies
 
	
            Section 3.14
 	
            Information Required by the Internal Revenue Service and Reports of Foreclosures and Abandonments of Mortgaged Property
 
	
            Section 3.15
 	
            Periodic Filings
 
	
            Section 3.16
 	
            HELOC Draws; Excluded Amounts
 
	
            Section 3.17
 	
            Duties of the Credit Risk Manager
 
	
            Section 3.18
 	
            Limitation Upon Liability of the Credit Risk Manager
 
	
            Section 3.19
 	
            Advances by the Master Servicer and the Servicers
 
	
            Section 3.20
 	
            Master Servicing by Master Servicer; Master Servicer Account
 

	
            Section 3.21
 	
            Indenture Trustee to Act as Master Servicer or Servicer
 
	
            Section 3.22
 	
            Special Serviced Loans
 
	
            Section 3.23
 	
            Advance Facility
 

 

 

 

 

ARTICLE IV

 

Servicing Certificates

	
            Section 4.01
 	
            Statements to Securityholders
 

ARTICLE V

 

Payment Account

	
            Section 5.01
 	
            Payment Account
 

ARTICLE VI

 

The Servicers, THE SPECIAL SERVICER and the master servicer

	
            Section 6.01
 	
            Liability of the Servicers, the Special Servicer and the Master Servicer
 
	
            Section 6.02
 	
            Merger or Consolidation of, or Assumption of the Obligations of, the Master Servicer, the Special Servicer or a Servicer
 
	
            Section 6.03
 	
            Limitation on Liability of the Master Servicer, the Servicers, the Special Servicer and Others
 
	
            Section 6.04
 	
            Master Servicer, Special Servicer and Servicers Not to Resign
 
	
            Section 6.05
 	
            Delegation of Duties
 

ARTICLE VII

 

Default

	
            Section 7.01
 	
            Servicing Default
 
	
            Section 7.02
 	
            Master Servicer or Indenture Trustee to Act; Appointment of Successor
 
	
            Section 7.03
 	
            Notification to Securityholders
 

ARTICLE VIII

 

Miscellaneous Provisions

	
            Section 8.01
 	
            Amendment
 
	
            Section 8.02
 	
            GOVERNING LAW
 
	
            Section 8.03
 	
            Notices
 
	
            Section 8.04
 	
            Severability of Provisions
 
	
            Section 8.05
 	
            Third-Party Beneficiaries
 
	
            Section 8.06
 	
            Counterparts
 

 

 

 

 

	
            Section 8.07
 	
            Effect of Headings and Table of Contents
 
	
            Section 8.08
 	
            Termination
 
	
            Section 8.09
 	
            Certain Matters Affecting the Indenture Trustee and the Trust Administrator
 
	
            Section 8.10
 	
            Owner Trustee Not Liable for Loan Files
 
	
            Section 8.11
 	
            Entire Agreement
 

ARTICLE IX

 

SPS AND THE MASTER SERVICER

	
            Section 9.01
 	
            Reports and Notices
 
	
            Section 9.02
 	
            Master Servicer’s Oversight With Respect to the SPS Serviced Loans
 
	
            Section 9.03
 	
            Termination. 
 
	
            Section 9.04
 	
            Liability and Indemnification
 
	
            Section 9.05
 	
            Confidentiality
 

 

 

	
            EXHIBIT A
 	
            LOAN SCHEDULE
 
	
            EXHIBIT B
 	
            LIMITED POWER OF ATTORNEY
 
	
            EXHIBIT C
 	
            FORM OF REQUEST FOR RELEASE
 
	
            EXHIBIT D-1
 	
            FORM OF MASTER SERVICER CERTIFICATION
 
	
            EXHIBIT D-2
 	
            FORM OF SERVICER CERTIFICATION
 
	
            EXHIBIT E
 	
            CHARGED OFF LOAN DATA REPORT
 
	
            EXHIBIT F
 	
            FORM OF INDEPENDENT ACCOUNTANT’S REPORT
 
	
            EXHIBIT G
 	
            FORM OF PNC REPORT TO CREDIT RISK MANAGER
 
	
            EXHIBIT H
 	
            FORM OF SPS SERVICED LOANS REPORT
 
	
            SCHEDULE I
 	
            REPRESENTATIONS AND WARRANTIES OF WILSHIRE
 
	
            SCHEDULE II
 	
            REPRESENTATIONS AND WARRANTIES OF OCWEN
 
	
            SCHEDULE III
 	
            REPRESENTATIONS AND WARRANTIES OF PNC
 
	
            SCHEDULE IV
 	
            REPRESENTATIONS AND WARRANTIES OF SPS
 
	
            SCHEDULE V
 	
            REPRESENTATIONS AND WARRANTIES OF THE MASTER SERVICER
 

 

 

 

This is a Servicing Agreement, dated as of November 4, 2005, among Wilshire Credit Corporation as a servicer (“Wilshire”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”), Select Portfolio Servicing, Inc. as a servicer and as special servicer (“SPS”), PNC Bank, N.A. as a servicer (“PNC” and together with Wilshire, Ocwen and SPS, the “Servicers”), JPMorgan Chase Bank, N.A. as master servicer (the “Master Servicer”) and as trust adminstrator (the “Trust Administrator”), Home Equity Mortgage Trust 2005-HF1 (the “Issuer”) and U.S. Bank National Association as indenture trustee (in such capacity, the “Indenture Trustee”).

W I T N E S S E T H   T H A T:

 

WHEREAS, pursuant to the terms of the Loan Purchase Agreement, DLJ Mortgage Capital, Inc. (in such capacity, the “Seller”) will sell to Credit Suisse First Boston Mortgage Acceptance Corp. (in such capacity, the “Depositor”) the Loans together with the Loan Files on the Closing Date and thereafter all Additional Balances created on or after the Cut-off Date;

WHEREAS, the Depositor will sell the Loans and all of its rights under the Loan Purchase Agreement to the Issuer, together with the Loan Files on the Closing Date and thereafter all Additional Balances relating thereto created on or after the Cut-off Date;

WHEREAS, pursuant to the terms of the Trust Agreement, the Issuer will issue and transfer the Certificates to the Depositor;

WHEREAS, pursuant to the terms of the Indenture, the Issuer will issue and transfer the Notes to the Depositor; and

WHEREAS, pursuant to the terms of this Servicing Agreement, each Servicer will service the related Loans directly or through one or more Subservicers;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows:

ARTICLE I

 

DEFINITIONS

Section 1.01     Definitions.  For all purposes of this Servicing Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Definitions contained in Appendix A to the Indenture dated as of November 4, 2005 (the “Indenture”), among the Issuer, the Indenture Trustee and the Trust Administrator, which is incorporated by reference herein.  All other capitalized terms used herein shall have the meanings specified herein.

Section 1.02     Other Definitional Provisions.  (a)  All terms defined in this Servicing Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

 

 

(b)        As used in this Servicing Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Servicing Agreement or in any such certificate or other document, and accounting terms partly defined in this Servicing Agreement or in any such certificate or other document, to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles.  To the extent that the definitions of accounting terms in this Servicing Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Servicing Agreement or in any such certificate or other document shall control.

(c)        The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Servicing Agreement shall refer to this Servicing Agreement as a whole and not to any particular provision of this Servicing Agreement; Section and Exhibit references contained in this Servicing Agreement are references to Sections and Exhibits in or to this Servicing Agreement unless otherwise specified; and the term “including” shall mean “including without limitation;” “or” shall include “and/or;” and the term “proceeds” shall have the meaning ascribed thereto in the UCC.

(d)        The definitions contained in this Servicing Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as the feminine and neuter genders of such terms.

(e)        Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns.

Section 1.03     Interest Calculations.  All calculations of interest hereunder that are made in respect of the Principal Balance of a Loan shall be made in accordance with the Mortgage Note.  The calculation of the Servicing Fee payable to each Servicer and the Master Servicing Fee and the Credit Risk Manager Fee shall be made on the basis of a 30-day month and a year assumed to consist of 360 days.

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

Section 2.01     Representations and Warranties Regarding the Servicers, the Special Servicer and the Master Servicer.  Each of Wilshire, Ocwen, PNC, SPS and the Master Servicer makes the representations and warranties set forth in Schedule I, II, III, IV and V, respectively, to the other parties hereto (other than the other Servicers), as of the Closing Date.

Section 2.02     Representations and Warranties of the Issuer.  The Issuer hereby represents and warrants to each Servicer, the Special Servicer and the Master Servicer and for the benefit of the Trust Administrator and the Indenture Trustee, as of the Closing  Date:

 

 

(i)         The Issuer is a statutory trust duly formed and in good standing under the laws of the State of Delaware and has full power, authority and legal right to execute and deliver this Servicing Agreement and to perform its obligations under this Servicing Agreement, and has taken all necessary action to authorize the execution, delivery and performance by it of this Servicing Agreement; and

(ii)         The execution and delivery by the Issuer of this Servicing Agreement and the performance by the Issuer of its obligations under this Servicing Agreement will not violate any provision of any law or regulation governing the Issuer or any order, writ, judgment or decree of any court, arbitrator or governmental authority or agency applicable to the Issuer or any of its assets.  Such execution, delivery, authentication and performance will not conflict with, or result in a breach or violation of, any mortgage, deed of trust, lease or other agreement or instrument to which the Issuer is bound.

Section 2.03     Breaches of Representations and Warranties; Notice.  Upon the discovery by a Servicer, the Master Servicer, the Indenture Trustee, the Trust Administrator or the Issuer of a breach of any of the representations and warranties made in the Loan Purchase Agreement, in respect of any Loan which materially and adversely affects the interests of the Securityholders, the party discovering such breach or existence shall give prompt written notice to the other parties hereto, the Seller, the Depositor and the Custodian.  The related Servicer, upon its discovery of such a breach or after notification of such a breach by another party, pursuant to the Loan Purchase Agreement, Custodial Agreement or otherwise, shall promptly notify the Seller of such breach and request that, pursuant to the terms of the Loan
Purchase Agreement, the Seller either (i) cure such breach, or in the case of a breach which has the effect of making a Loan fail to be a “qualified mortgage” within the meaning of Section 860G of the Internal Revenue Code, in all material respects within 120 days from the date the Seller was notified of such breach or (ii) repurchase such Loan from the Issuer at the price and in the manner set forth in Section 1 or Section 3 of the Loan Purchase Agreement; provided that the Seller shall, subject to compliance with all the conditions set forth in the Loan Purchase Agreement, have the option to substitute an Eligible Substitute Loan or Loans for such Loan, provided that such substitution occurs within two years following the Closing Date.  Payments due with respect to Eligible Substitute Loans in the month of substitution shall not be transferred to the Issuer and will be retained by the related Servicer and remitted by the related Servicer to the Seller on the
next succeeding Payment Date provided a payment at least equal to the applicable Monthly Payment has been received by the Issuer for such month in respect of the Loan to be removed.  The related Servicer shall notify the Master Servicer, and the Master Servicer shall amend or cause to be amended the Loan Schedule to reflect the removal of such Loan and the substitution of the Eligible Substitute Loans and the Master Servicer shall promptly deliver the amended Loan Schedule to the Owner Trustee and the Indenture Trustee.

Upon receipt of the Repurchase Price, or upon completion of such substitution, the related Servicer shall notify the Custodian and then the Custodian shall, pursuant to the terms of the Custodial Agreement, deliver the Loan Files to such Servicer, together with all relevant endorsements and assignments prepared by such Servicer which the Indenture Trustee shall execute.

 

 

In connection with the substitution of one or more Eligible Substitute Loans for one or more Deleted Loans, the related Servicer shall determine the Substitution Amount therefor (after application of the principal portion of the Monthly Payments due in the month of substitution that are to be distributed to the Custodial Account in the month of substitution) and notify the Seller of such amount to be deposited into the Custodial Account pursuant to the Loan Purchase Agreement.

ARTICLE III

 

ADMINISTRATION AND SERVICING OF LOANS

Section 3.01     The Servicers.  (a)  Each Servicer, severally and not jointly, either itself or through a subservicer, shall service and administer the related Loans in accordance with this Servicing Agreement and Accepted Servicing Practices, and shall have full power and authority, acting alone, to do or cause to be done any and all things in connection with such servicing and administration which the related Servicer may deem necessary or desirable and consistent with the terms of this Servicing Agreement and with Accepted Servicing Practices.  The Master Servicer shall, in accordance with Section 3.20 of this Agreement, master service and administer the Loans by overseeing and enforcing the servicing of the Loans by the related Servicer according to the terms of this Agreement.  Each Servicer shall service and
administer the related Loans through the exercise of the same care that it customarily employs for its own account.  The Loans “related” to a Servicer and for which such Servicer will be obligated to service hereunder are those Loans for which the Loan Schedule identifies being serviced by such Servicer.  In no event shall any Servicer have any responsibility or liability with respect to any of the Loans serviced by the other Servicers.  Notwithstanding anything in this Agreement, any Subservicing Agreement or Credit Risk Management Agreement to the contrary, none of Wilshire, Ocwen, PNC nor SPS shall have any duty or obligation to enforce any Credit Risk Management Agreement to which it is not a party or to supervise, monitor or oversee the activities of the Credit Risk Manager under its Credit Risk Management Agreement (if applicable) with respect to any action taken or not taken by any other Servicer, pursuant to a recommendation of the Credit Risk Manager.  Consistent
with the terms of this Servicing Agreement and subject to the final sentence of this Section 3.01(a), each Servicer may waive, modify or vary any term of any Loan or consent to the postponement of any such term or in any manner grant indulgence to any Mortgagor if in the related Servicer’s reasonable and prudent determination such waiver, modification, postponement or indulgence is not materially adverse to the Indenture Trustee or the Securityholders.  Without limiting the generality of the foregoing, each Servicer shall continue, and is hereby authorized and empowered, to prepare, execute and deliver, all instruments of satisfaction or cancellation, or of partial or full release, discharge and all other comparable instruments, with respect to the related Loans and with respect to the Mortgaged Properties.  Notwithstanding the foregoing, no Servicer may modify or permit any Subservicer to modify any Loan (including without limitation any modification that would change the
Mortgage Interest Rate, forgive the payment of any principal or interest (unless in connection with the liquidation of the related Loan) or extend the final maturity date of such Loan) unless such Loan is in default or, in the judgment of the related Servicer, such default is reasonably foreseeable.

In accordance with the standards of the preceding paragraph, each Servicer shall advance or cause to be advanced funds as necessary for the purpose of effecting the payment of taxes and 

 

assessments on any Mortgaged Property (to the extent such Servicer has been notified that such taxes or assessments have not paid by the related Mortgagor or the owner or the servicer of the related first lien), which advances shall be reimbursable as provided in Section 3.03; provided, however, that each Servicer shall be required to advance only to the extent that such advances, in the good faith judgment of such Servicer, will be recoverable by such Servicer out of Insurance Proceeds, Liquidation Proceeds, or otherwise out of the proceeds of the related Loan; and provided, further, that such payments shall be advanced within such time period required to avoid the loss of the Mortgaged Property by foreclosure of a tax or other lien.  The costs incurred by a Servicer, if any, in effecting the timely payments of taxes and assessments on the Mortgaged Properties and related insurance premiums shall not, for
the purpose of calculating monthly distributions to the Securityholders, be added to the Principal Balances of the related Loans, notwithstanding that the terms of such Loans so permit.

Each Servicer is authorized and empowered by the Indenture Trustee, in its own name, when the related Servicer believes it appropriate in its reasonable judgment to register any Loan on the MERS® System, or cause the removal from the registration of any Loan on the MERS® System, to execute and deliver, on behalf of the Indenture Trustee, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS.  MERS will be named as holder of the loan solely as nominee for the Indenture Trustee and its successors and assigns.

The Indenture Trustee will provide limited powers of attorney, substantially in the form of Exhibit B hereto, to each Servicer, prepared by each Servicer, to permit each Servicer to act on behalf of the Indenture Trustee under this Agreement.  Each Servicer hereby indemnifies the Indenture Trustee for all costs and expenses incurred by the Indenture Trustee in connection with the negligent or willful misuse of such power of attorney.

Each Servicer shall fully report its borrower credit files related to the related Loans to Equifax Credit Information Services, Inc., TransUnion LLC and Experian in a timely manner.  When required by law or it is otherwise prudent to do so, a Servicer may suspend credit reporting for any Loan.

If the Mortgage relating to a Loan did not have a lien senior to the Loan on the related Mortgaged Property as of the Cut-off Date, then the related Servicer, in such capacity, may not consent to the placing of a lien senior to that of the Mortgage on the related Mortgaged Property.  If the Mortgage relating to a Loan had a lien senior to the Loan on the related Mortgaged Property as of the Cut-off Date, then the related Servicer, in such capacity, may consent to the refinancing of the prior senior lien, provided, that such refinancing conforms to the related Servicer’s standard subordination underwriting guidelines which shall at all times conform with Accepted Servicing Practices and the provisions of this Servicing Agreement.

The relationship of each Servicer (and of any successor to each Servicer as servicer under this Servicing Agreement) to the Issuer under this Servicing Agreement is intended by the parties to be that of an independent contractor and not that of a joint venturer, partner or agent.

(b)        Each Servicer may enter into Subservicing Agreements with Subservicers for the servicing and administration of certain of the related Loans.  Each Subservicer of a Loan shall be 

 

entitled to receive and retain, as provided in the related Subservicing Agreement and in Section 3.02, the related Subservicing Fee from payments of interest received on such Loan after payment of all amounts required to be remitted to the related Servicer in respect of such Loan.  References in this Servicing Agreement to actions taken or to be taken by a Servicer in servicing the Loans include actions taken or to be taken by a Subservicer on behalf of such Servicer.  Each Subservicing Agreement will be upon such terms and conditions as are not inconsistent with this Servicing Agreement and as the related Servicer and the Subservicer have agreed.  With the approval of the related Servicer, a Subservicer may delegate its servicing obligations to third-party servicers, but such Subservicers will remain obligated under the related Subservicing Agreements.  Each Servicer and the related Subservicer may
enter into amendments to the related Subservicing Agreements; provided, however, that any such amendments shall not cause the related Loans to be serviced in a manner that would be materially inconsistent with the standards set forth in this Servicing Agreement.  Each Servicer shall be entitled to terminate any Subservicing Agreement in accordance with the terms and conditions thereof and without any limitation by virtue of this Servicing Agreement; provided, however, that in the event of termination of any Subservicing Agreement by a Servicer or the related Subservicer, such Servicer shall either act as servicer of the related Loan or enter into a Subservicing Agreement with a successor Subservicer which will be bound by the terms of the related Subservicing Agreement.  Notwithstanding any
Subservicing Agreement, any of the provisions of this Servicing Agreement relating to agreements or arrangements between a Servicer or a Subservicer or reference to actions taken through a Subservicer or otherwise, each Servicer shall remain obligated and liable to the Indenture Trustee and the Issuer for the servicing and administering of the related Loans in accordance with the provisions of this Section 3.01 without diminution of such obligation or liability by virtue of such Subservicing Agreements or arrangements or by virtue of indemnification from the Subservicer and to the same extent and under the same terms and conditions as if such Servicer alone were servicing and administering the related Loans.  Each Servicer shall be entitled to enter into any agreement with a Subservicer for indemnification of such Servicer and nothing contained in this Servicing Agreement shall be deemed to limit or modify such indemnification.

From and after the Closing Date, each Servicer agrees that it will not take any action or permit or cause any action to be taken by any of its agents or affiliates, or by any independent contractors on such Servicer’s behalf, to personally, by telephone, by mail, or electronically by e-mail or through the internet or otherwise, solicit the borrower or obligor under any related Loan to refinance the Loan, in whole or in part, without the prior written consent of the Issuer.  It is understood and agreed that all rights and benefits relating to the solicitation of any Mortgagors to refinance any Loans and the attendant rights, title and interest in and to the list of such Mortgagors and data relating to their Mortgages (including insurance renewal dates) shall be transferred to the Issuer on the Closing Date and no Servicer shall take any action to undermine these rights and benefits.
Notwithstanding the foregoing, it is understood and agreed that the following shall not constitute solicitation under this Section 3.01: (i) promotions undertaken by a Servicer or any affiliate of a Servicer which are directed to the general public at large, or segments thereof, provided that no segment shall consist primarily of the borrowers or obligors under the related Loans, including, without limitation, mass mailing based on commercially acquired mailing lists, newspaper, radio and television advertisements, (ii) promotions undertaken by a Servicer based on such Servicer’s own independent customer databases and (iii) responding to a request unsolicited by such Servicer and initiated by a Mortgagor or obligor 

 

under any Loan relating to refinancing.  This Section 3.01 shall not be deemed to preclude a Servicer or any of its affiliates from soliciting any Mortgagor for any other financial products or services.  Each Servicer shall use its efforts required by applicable law to prevent the sale of the name of any Mortgagor to any Person who is not an affiliate of such Servicer.

In the event that the rights, duties and obligations of a Servicer are terminated hereunder, any successor to the related Servicer in its sole discretion may, to the extent permitted by applicable law, terminate the existing Subservicing Agreement with any Subservicer in accordance with the terms of the applicable Subservicing Agreement or assume the terminated Servicer’s rights and obligations under such subservicing arrangements which termination or assumption will not violate the terms of such arrangements.

As part of its servicing activities hereunder, each Servicer, for the benefit of the Securityholders, shall use reasonable efforts to enforce the obligations of each Subservicer under the related Subservicing Agreement, to the extent that the non-performance of any such obligation would have a material adverse effect on a Loan.  Such enforcement, including, without limitation, the legal prosecution of claims, termination of Subservicing 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 related Servicer would employ in its good faith business judgment and require were it the owner of the related Loans and which are normal and usual in its general mortgage servicing activities.  Each Servicer shall pay the costs of such enforcement at its own expense, and shall be reimbursed therefor only (i) from a
general recovery resulting from such enforcement to the extent, if any, that such recovery exceeds all amounts due in respect of the related Loan or (ii) from a specific recovery of costs, expenses or attorneys fees against the party against whom such enforcement is directed.

Each Servicer shall comply with the obligations set forth in Section 11.01 of the Indenture, subject to Section 6.03 hereof. 

	
            Section 3.02
 	
            Collection of Certain Loan Payments.
 

(a)        Each Servicer shall make reasonable efforts to collect all payments called for under the terms and provisions of the related Loans, and shall, to the extent such procedures are consistent with this Servicing Agreement, Accepted Servicing Practices and any related insurance policy, follow such collection procedures as it would employ in its good faith business judgment and which are normal and usual in its general mortgage servicing activities and consistent with the procedures that such Servicer employs in servicing all other Loans in its servicing portfolio with characteristics similar to these of the related Loans.  Consistent with the foregoing, and without limiting the generality of the foregoing, each Servicer may in its discretion waive any late payment charge, prepayment charge or penalty interest or other fees which may be
collected in the ordinary course of servicing such Loan.  Subject to the final sentence of Section 3.01(a), each Servicer may also extend the Due Date for payment due on a Loan, provided, however, that a Servicer shall first determine that any such waiver or extension will not impair the coverage of any related insurance policy or materially adversely affect the lien of the related Mortgage (except as described below) or the interests of the Securityholders.  Consistent with the terms of this Servicing Agreement (including the final sentence of Section 3.01(a)) and without limiting the generality of the foregoing, each Servicer may also:

 

 

	
            (i)
 	
            waive, modify or vary any term of any Loan;
 

(ii)         consent to the postponement of strict compliance with any such term or in any manner grant indulgence to any Mortgagor;

(iii)        arrange with a Mortgagor a schedule for the payment of principal and interest due and unpaid;

	
            (iv)
 	
            forgive any portion of the amounts contractually owed under the Loan;
 
	
            (v)
 	
            reset the Due Date for the Loan; or
 	
             

	
            (vi)
 	
            any combination of the foregoing;
 	
             

				

if in the related Servicer’s determination such waiver, modification, postponement or indulgence, arrangement or other action referred to above is not materially adverse to the interests of the Securityholders and is generally consistent with such Servicer’s policies with respect to mortgage loans similar to the related Loans.  Such Loans will not be considered “delinquent” for the purposes of the Basic Documents so long as the Mortgagor complies with the terms of such waiver, modification, postponement or indulgence.

(b)        Each Servicer shall establish a Custodial Account, which shall be an Eligible Account, titled “[Servicer’s name], in trust for the Holders of Credit Suisse First Boston Mortgage Acceptance Corp., Home Equity Loan-Backed Notes, Series 2005-HF1” or, if established and maintained by a Subservicer on behalf of the related Servicer, “[Subservicer’s name], in trust for [Servicer’s name]” or “[Subservicer’s name], as agent, trustee and/or bailee of principal and interest custodial account for [Servicer’s name], its successors and assigns, for various owners of interest in [Servicer’s name] mortgage-backed pools,” in which the related Servicer shall deposit or cause to be deposited any amounts representing payments and collections in respect of the Loans received by it subsequent to the
Cut-off Date (other than in respect of the payments referred to in the following paragraph) within two Business Days following receipt thereof (or otherwise on or prior to the Closing Date), including the following payments and collections received or made by it (without duplication):

(i)         all payments of principal or interest on the related Loans received by such Servicer or by any Subservicer, net of any late fees or other amounts to be retained by the Servicer under this Servicing Agreement;

(ii)         Net Liquidation Proceeds including any related Foreclosure Profit, net of any late fees or other amounts to be retained by such Servicer under this Servicing Agreement;

(iii)        any amounts deposited by such Servicer in connection with any REO pursuant to the Loan Purchase Agreement;

(iv)        insurance proceeds, other than Net Liquidation Proceeds, resulting from any insurance policy maintained on a Mortgaged Property, except for insurance proceeds for the repair or restoration of the related Mortgaged Property or released to the related 

 

Mortgagor in accordance with Accepted Servicing Practices, the related Loan File or applicable law;

(v)        all Condemnation Proceeds affecting any Mortgaged Property which are not released to the Mortgagor in accordance with the Seller’s normal servicing procedures, the documents in the Mortgage File or applicable law.

(vi)        all proceeds (including the Repurchase Price) of any Loans repurchased by the Seller pursuant to the Loan Purchase Agreement, and all Substitution Adjustment Amounts required to be deposited by the Seller in connection with the substitution of an Eligible Substitute Loan pursuant to the Loan Purchase Agreement;

(vii)       any amounts required to be deposited in the Custodial Account pursuant to Section 3.08;

(viii)      amounts required to be paid by the related Servicer pursuant to Section 3.04;

	
            (ix)
 	
            all Advances made by such Servicer pursuant to Section 3.19;
 

(x)        with respect to each Principal Prepayment on the Loans (other than the HELOCs), the Compensating Interest Payment, if any, for the related Prepayment Period; and

	
            (xi)
 	
            all Prepayment Charges.
 

provided, however, that with respect to each Collection Period, each Servicer shall be permitted to retain from payments in respect of interest on the related Loans, the related Servicing Fee for such Collection Period.  The foregoing requirements respecting deposits to the related Custodial Account are exclusive, it being understood that, without limiting the generality of the foregoing, a Servicer need not deposit in the Custodial Account amounts representing fees (including annual fees) or late charge penalties payable by Mortgagors (such amounts to be retained as additional servicing compensation in accordance with Section 3.09 hereof), or amounts received by the related Servicer for the accounts of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items.  In the event any
amount not required to be deposited in the Custodial Account is so deposited, the related Servicer may at any time withdraw such amount from the Custodial Account, any provision herein to the contrary notwithstanding.

Each Servicer may cause the institution maintaining the related Custodial Account to invest any funds in such Custodial Account in Permitted Investments, which shall mature not later than the next Servicer Remittance Date and which shall not be sold or disposed of prior to its maturity.  Except as provided above, all income and gain realized from any such investment shall inure to the benefit of the related Servicer and shall be subject to its withdrawal or order from time to time.  The amount of any losses incurred in respect of the principal amount of any such investments shall be deposited in the Custodial Account by the related Servicer out of its own funds immediately as realized.

 

 

(c)        Each Servicer will require each related Subservicer to hold all funds constituting collections on the related Loans, pending remittance thereof to such Servicer, in one or more accounts meeting the requirements of an Eligible Account, and, if applicable, invested in Permitted Investments.

(d)        Each Servicer may, with the prior written consent of the Trust Administrator, transfer a Custodial Account to a different Eligible Account from time to time.

Section 3.03     Withdrawals from the Custodial Accounts.  Each Servicer shall, from time to time as provided herein, make withdrawals from the related Custodial Account for the following purposes:

(i)         in the case of PNC, from collections on the PNC Serviced Loans, (a) on a daily basis, from Principal Collections, to pay to PNC the amount of any Additional Balances as and when created during the related Collection Period and (b) to pay to PNC any Reimbursable Excluded Amounts (as defined in Section 3.16(b) hereof) received during the related Collection Period;

(ii)         on each Servicer Remittance Date preceding a Payment Date, the related Servicer shall withdraw from the related Custodial Account the portion of the Interest Remittance Amount and Principal Remittance Amount for such Payment Date applicable to the Loans being serviced by such Servicer and, prior to the close of business on such Servicer Remittance Date, deposit such amounts into the Master Servicer Account (in the case of Wilshire, Ocwen and SPS) or the Payment Account (in the case of PNC), to be distributed by the Trust Administrator pursuant to Section 3.16(c) hereof and by the Paying Agent in accordance with and in the order or priority set forth in Section 3.05(a) of the Indenture for such Payment Date, in accordance with the Servicing Certificate;

(iii)        to the extent deposited to the related Custodial Account, to reimburse itself or the related Subservicer for previously unreimbursed expenses incurred in maintaining individual insurance policies pursuant to Section 3.04, or Liquidation Expenses paid pursuant to Section 3.07 or otherwise reimbursable pursuant to the terms of this Servicing Agreement (to the extent not payable pursuant to Section 3.09), such withdrawal right being limited to amounts received on particular Loans which represent late recoveries of the payments for which such advances were made, or from related Liquidation Proceeds or the proceeds of the purchase of such Loan;

(iv)        to pay to itself out of each payment received on account of interest on a related Loan as contemplated by Section 3.09, an amount equal to the related Servicing Fee (to the extent not retained pursuant to Section 3.02), and to pay to any Subservicer any Subservicing Fees not previously withheld by the Subservicer;

(v)        to pay to itself as additional servicing compensation any interest or investment income earned on funds deposited in the Custodial Account that it is entitled to withdraw pursuant to Section 3.02(b);

(vi)        to pay to the Seller, with respect to any Loan or property acquired in respect thereof that has been repurchased by or otherwise transferred to the Seller, all 

 

amounts received thereon and not required to be distributed to Securityholders as of the date on which the related Repurchase Price is determined;

(vii)       in the event that Liquidation Proceeds, if applicable, received in respect of a Loan are not sufficient to cover all unreimbursed expenses for which the related Servicer is entitled to reimbursement hereunder, such Servicer may reimburse itself for such expenses out of funds held in the related Custodial Account;

(viii)      to transfer funds to another Eligible Account in accordance with Section 3.02(d) hereof;

(ix)        to withdraw any other amount deposited in the Custodial Account that was not required to be deposited therein pursuant to Section 3.02;

(x)        to clear and terminate the Custodial Account upon the termination of this Servicing Agreement;

(xi)        to reimburse such Servicer for any unpaid Servicing Fees to which such Servicer is entitled under this Agreement, including (A) in connection with the termination of the obligations of such Servicer, (B) any accrued and unpaid Servicing Fees at the time a Loan becomes a Liquidated Loan or Charged Off Loan and (C) any unpaid Servicing Fees not otherwise collected from Liquidation Proceeds;

(xii)       to reimburse such Servicer for (A) unreimbursed Servicing Advances, such Servicer’s right to reimbursement pursuant to this clause (A) with respect to any Loan being limited to amounts received on such Loan which represent late payments of principal and/or interest (including, without limitation, Liquidation Proceeds and Insurance Proceeds, amounts representing proceeds of other insurance policies, if any, covering the related Mortgaged Property, rental and other income from REO and proceeds of any purchase or repurchase of the related Loan with respect to such Mortgage Loan) respecting which any such advance was made and late recoveries of the payments for which such Servicing Advance was made and (B) for unpaid Servicing Fees as provided in Section 3.07 hereof;

(xiii)      to reimburse such Servicer for unreimbursed Advances made by it, such right of reimbursement pursuant to this subclause (xiii) being limited to amounts received on the Loan(s) in respect of which any such Advance was made (including without limitation, late recoveries of payments, Liquidation Proceeds and Insurance Proceeds, amounts representing proceeds of other insurance policies, if any, covering the related Mortgaged Property, rental and other income from REO and proceeds of any purchase or repurchase of the related Loan to the extent deposited in the Custodial Account);

(xiv)      to reimburse such Servicer for any Nonrecoverable Advance previously made from collections or proceeds of any of the Loans serviced by such Servicer; 

(xv)       to pay itself any Prepayment Interest Excess; provided that in accordance with the definition of “Prepayment Interest Excess,” the applicable Servicer shall only be entitled to Prepayment Interest Excess with respect to any Loan and any Payment Date if 

 

the related Principal Prepayment in full is deposited to the related Custodial Account pursuant to Section 3.02(b)(i) hereof in the same month as such Principal Prepayment in full is made, to be included with distributions on such Payment Date;

(xvi)      to reimburse such Servicer for any Advances or Servicing Advances made with respect to a delinquent Loan, which Loan has been modified by such Servicer in accordance with the terms of this Agreement, such right of reimbursement being limited to amounts received on the Loan so modified; and

(xvii)     to reimburse such Servicer for expenses incurred and reimbursable pursuant to Section 6.03 hereof.

Since, in connection with withdrawals pursuant to clauses (i), (iii) and (iv), each Servicer’s entitlement thereto is limited to collections or other recoveries on the related Loan, such Servicer shall keep and maintain separate accounting, on a Loan by Loan basis, for the purpose of justifying any withdrawal from the related Custodial Account pursuant to such clauses.  Notwithstanding any other provision of this Servicing Agreement, each Servicer shall be entitled to reimburse itself for any previously unreimbursed expenses incurred pursuant to Section 3.07 or otherwise reimbursable pursuant to the terms of this Servicing Agreement that such Servicer determines to be otherwise nonrecoverable, by withdrawal from the related Custodial Account of amounts on deposit therein attributable to the related Loans on any Business Day prior to the Payment Date succeeding the date of such determination.

	
            Section 3.04
 	
            Maintenance of Hazard Insurance; Property Protection Expenses.
 

(a)        Each Servicer shall obtain and maintain a blanket policy insuring against losses arising from fire and hazards covered under extended coverage on all of the related Loans, which policy shall provide coverage in an amount equal to the amount at least equal to the least of (i) the amount of the actual direct physical damage to the Mortgaged Property, (ii) the amount of the outstanding balance on the Loan or (iii) the actual market value of the structures built on the Mortgaged Property at the time of the loss.  Each Servicer shall use its best efforts to monitor that hazard insurance is maintained as described in the previous sentence in the same manner as it would for mortgage loans in its own portfolio.  Any amounts collected by the related Servicer under any such policy relating to a Loan shall be deposited in the related Custodial
Account subject to withdrawal pursuant to Section 3.03.  Such policy may contain a deductible clause, in which case, in the event that there shall not have been maintained on the related Mortgaged Property a standard hazard insurance policy, and there shall have been a loss which would have been covered by such policy, the related Servicer shall deposit in the related Custodial Account at the time of such loss the amount not otherwise payable under the blanket policy because of such deductible clause, such amount to be deposited from the related Servicer’s own funds, without reimbursement therefor.  Upon request of the Master Servicer or the Trust Administrator, the related Servicer shall cause to be delivered to the Master Servicer or the Trust Administrator, as applicable, a certified true copy of such policy and a statement that such policy shall in no event be terminated or materially modified without 30 days’ prior written notice to the Master Servicer or the Trust
Administrator, as applicable.  In connection with its activities as servicer of such Loans, the related Servicer agrees to present, on behalf of itself and the Securityholders, claims under any such blanket policy.

 

 

(b)        If, upon the origination of a Loan, the related Mortgaged Property was in an area identified in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, and flood insurance has been made available, the related Servicer shall cause to be maintained, to the extent required by the related Loan File, a flood insurance policy meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable insurance carrier, in an amount representing coverage at least equal to the lesser of (i) the unpaid Principal Balance of such Loan, (ii) the full insurable value of such Mortgaged Property or (iii) the maximum amount of insurance available under the Flood Disaster Protection Act of 1973, as amended.  With respect to any REO, the related Servicer shall also
maintain, if applicable, flood insurance in an amount at least equal to the lesser of (i) the maximum insurable value of the improvements that are a part of such property and (ii) the Principal Balance owing on the related Loan at the time of foreclosure or grant of deed in lieu of foreclosure plus accrued interest and related Liquidation Expenses.

(c)        Pursuant to Section 3.02, any amounts collected by a Servicer under any insurance policy maintained pursuant to this Section, other than amounts to be applied to the restoration or repair of Mortgaged Property or released to a Mortgagor in accordance with such Servicer’s normal servicing practices, shall be deposited into the related Custodial Account, subject to withdrawal pursuant to Section 3.03.  Any cost incurred by a Servicer in maintaining any such insurance shall be added to the amount owing under the related Loan where the terms of the related Loan File so permit; provided, that the addition of any such cost shall not be taken into account for purposes of calculating the Principal Balance of such Loan.  Such costs shall be recoverable by the related Servicer pursuant to Section 3.03.

(d)        No Servicer shall be under any obligation to maintain or require any Mortgagor to maintain earthquake, title or other additional insurance, and shall be under no obligation itself to maintain any such additional insurance on property acquired in respect of any Loan, other than pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance.

Section 3.05     Modification Agreements.  Each Servicer or the related Subservicer, as the case may be, shall be entitled to (A) execute assumption agreements, modification agreements, substitution agreements, and instruments of satisfaction or cancellation or of partial or full release or discharge, or any other document contemplated by this Servicing Agreement and other comparable instruments with respect to the Loans and with respect to the Mortgaged Properties subject to the Mortgages (and the Issuer, the Trust Administrator and the Indenture Trustee each shall promptly execute any such documents on request of a Servicer) and (B) approve the granting of an easement thereon in favor of another Person, any alteration or demolition of the related Mortgaged Property or other similar matters, in each case if it has
determined, exercising its good faith business judgment in the same manner as it would if it were the owner of the related Loan, that the security for, and the timely and full collectability of, such Loan would not be adversely affected thereby, and provided further that, the related Servicer shall have received an Opinion of Counsel to the effect that such partial release will not result in an Adverse REMIC Event.  Any fee collected by a Servicer or the related Subservicer for processing such request will be retained by such Servicer or such Subservicer as additional servicing compensation.

 

 

Section 3.06     Trust Estate; Loan Files.  (a)  When required by the provisions of this Servicing Agreement, the Issuer, the Trust Administrator or the Indenture Trustee shall execute instruments to release property from the terms of the Trust Agreement, Indenture or Custodial Agreement, as applicable, or convey the Issuer’s or the Indenture Trustee’s interest in the same, in a manner and under circumstances which are not inconsistent with the provisions of this Servicing Agreement.  No party relying upon an instrument executed by the Issuer or the Indenture Trustee as provided in this Section 3.06 shall be bound to ascertain the Issuer’s or the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies.

(b)        If from time to time a Servicer shall deliver to the Custodian copies of any written assurance, assumption agreement or substitution agreement or other similar agreement pursuant to Section 3.05, such Servicer may in accordance with the terms of the Custodial Agreement, cause the Custodian to determine if each of such documents purports to be an original executed copy (or a copy of the original executed document if the original executed copy has been submitted for recording and has not yet been returned) and, if so, shall file such documents, and upon receipt of the original executed copy from the applicable recording office or receipt of a copy thereof certified by the applicable recording office shall file such originals or certified copies with the Loan Files.  If any such documents submitted by a Servicer do not meet the above
qualifications, (i) the related Servicer may, in accordance with the terms of the Custodial Agreement, cause the Custodian to promptly return such documents to the related Servicer and (ii) the related Servicer shall forward the correct documentation to the Custodian.

(c)        Upon receipt of a request for release delivered via e-mail, substantially in the form attached hereto as Exhibit C, from a Servicer (each a “Request for Release”), that indicates that a Loan has been the subject of a final payment or a prepayment in full and the related Loan has been terminated or that substantially all Liquidation Proceeds which have been determined by the related Servicer in its reasonable judgment to be finally recoverable have been recovered, and upon deposit to the related Custodial Account of such final monthly payment, prepayment in full together with accrued and unpaid interest to the date of such payment with respect to such Loan or, if applicable, Liquidation Proceeds, the Custodian shall promptly release and deliver by overnight delivery the Loan Files to such Servicer pursuant to the terms of the
Custodial Agreement, no later than three (3) Business Days after such Servicer’s request, along with such documents as such Servicer or the Mortgagor may request to evidence satisfaction and discharge of such Loan, and the Trust Administrator and the Indenture Trustee shall execute any documents delivered to it and reasonably requested in connection therewith, without recourse, representation or warranty.  If from time to time and as appropriate for the servicing or foreclosure of any Loan, a Servicer requests the Custodian to release the Loan Files and delivers to the Custodian a Request for Release to the Custodian, pursuant to the terms of the Custodial Agreement the Custodian will release and deliver by overnight delivery the Loan Files to the related Servicer.  The related Servicer shall return promptly to the Custodian the Loan Files when such Servicer’s need therefor no longer exists, unless the related Loan has been liquidated (provided, however, that the related Servicer shall indicate that such Loan has been or is to be liquidated in the related Request for Release).

Section 3.07     Realization Upon Defaulted Loans; Loss Mitigation.  (a)  With respect to the Loans that come into and continue in default, the related Servicer shall decide whether to 

 

(i) foreclose upon the Mortgaged Properties securing such Loans, (ii) write off the unpaid principal balance of the Loans as bad debt, (iii) take a deed in lieu of foreclosure, (iv) accept a short sale (a payoff of the Loan for an amount less than the total amount contractually owed in order to facilitate a sale of the Mortgaged Property by the Mortgagor) or permit a short refinancing (a payoff of the Loan for an amount less than the total amount contractually owed in order to facilitate refinancing transactions by the Mortgagor not involving a sale of the Mortgaged Property), (v) arrange for a repayment plan, or (vi) agree to a modification in accordance with this Servicing Agreement; in each case subject to the rights of any related first lien holder; provided that in connection with the foregoing if the related Servicer has actual knowledge that any
Mortgaged Property is affected by hazardous or toxic wastes or substances and that the acquisition of such Mortgaged Property would not be commercially reasonable, then the related Servicer will not cause the Issuer or the Indenture Trustee to acquire title to such Mortgaged Property in a foreclosure or similar proceeding.  In connection with such decision, the related Servicer shall follow such practices (including, in the case of any default on a related senior mortgage loan, the advancing of funds to correct such default if deemed to be appropriate by the related Servicer) and procedures as it shall deem necessary or advisable and as shall be normal and usual in its general mortgage servicing activities; provided that the related Servicer shall not be liable in any respect hereunder if such Servicer is acting in connection with any such foreclosure or attempted foreclosure which is not completed or other conversion in a manner that is consistent with the provisions of this
Servicing Agreement.  In the event the related Servicer has reasonable cause to believe that a Mortgaged Property is contaminated by hazardous or toxic substances or wastes, or if the Indenture Trustee otherwise requests, an environmental inspection or review of such Mortgaged Property conducted by a qualified inspector shall be arranged for by such Servicer. Upon completion of the inspection, the related Servicer shall promptly provide the Indenture Trustee with a written report of environmental inspection.  The foregoing is subject to the proviso that the related Servicer shall not be required to expend its own funds in connection with any foreclosure or attempted foreclosure or towards the correction of any default on a related senior mortgage loan or restoration of any property unless it shall determine that (i) such expenditure will increase the related Net Liquidation Proceeds and (ii) such expenses will be recoverable by the related Servicer through Insurance Proceeds or
Liquidation Proceeds from the related Mortgaged Property.  In the event of a determination by a Servicer that any such expenditure previously made pursuant to this Section 3.07 will not be reimbursable from Liquidation Proceeds, such Servicer shall be entitled to reimbursement of its funds so expended pursuant to Section 3.03.

	
            (b)
 	
            [RESERVED]
 

(c)        In the event that title to any Mortgaged Property is acquired in foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale shall be issued in the name of the Indenture Trustee, on behalf of the Securityholders of the Home Equity Mortgage Trust, 2005-HF1, or its designee.  The Indenture Trustee’s name shall be placed on the title to such REO solely as the Indenture Trustee hereunder and not in its individual capacity.  Each Servicer shall ensure that the title to such REO references this Agreement and the Indenture Trustee’s capacity hereunder.  Notwithstanding any such acquisition of title and cancellation of the related Loan, such Mortgaged Property shall (except as otherwise expressly provided herein) be considered to be an outstanding Loan held as an asset of the Issuer until such time as such property shall be sold.

 

 

(d)        Notwithstanding anything to the contrary contained in this Agreement, with respect to any Loan (other than a HELOC) that is one hundred twenty (120) days delinquent (or in the case of a HELOC, that is ninety (90) days delinquent), the related Servicer shall have obtained or shall obtain a broker’s price opinion with respect to the related Mortgaged Property and shall use all reasonable efforts to obtain a total indebtedness balance (including, but not limited to, unpaid principal, interest, escrows, taxes and expenses) for any related senior lien. The cost of obtaining any such broker’s price opinion shall be reimbursable to the related Servicer pursuant to Section 3.03(xii). After obtaining the related broker’s price opinion, the related Servicer will determine whether any Significant Net Recovery is possible through
foreclosure proceedings or other liquidation of the related Mortgaged Property.  If the related Servicer determines that (x) no Significant Net Recovery is possible or (y) the potential Net Recoveries are anticipated to be an amount, determined by the related Servicer in its good faith judgment and in light of other mitigating circumstances, that is insufficient to warrant proceeding through foreclosure or other liquidation of the related Mortgaged Property, it may, at its discretion, charge off such delinquent Loan in accordance with paragraph (e) and (f) below.

(e)        With respect to any Loan, if the related Servicer determines based on the broker’s price opinion obtained under paragraph (d) above and other relevant considerations that (x) no Significant Net Recovery is possible through foreclosure proceedings or other liquidation of the related Mortgaged Property or (y) the potential Net Recoveries are anticipated to be an amount, determined by the related Servicer in its good faith judgment and in light of other mitigating circumstances, that is insufficient to warrant proceeding through foreclosure or other liquidation of the related Mortgaged Property, it will be obligated to charge off the related Loan at the time such Loan becomes 180 days delinquent.  Once a Loan has been charged off, (under this Section or otherwise) the related Servicer will discontinue making Advances, the related
Servicer will not be entitled to any additional servicing compensation (except as described in paragraph (f) of this Section 3.07), the Charged Off Loan will give rise to a Realized Loss, and the related Servicer will follow the procedures described in paragraph (f) below.  If the related Servicer determines that (x) a Significant Net Recovery is possible through foreclosure proceedings or other liquidation of the Mortgaged Property and (y) the potential Net Recoveries are anticipated to be an amount, determined by the related Servicer in its good faith judgment and in light of other mitigating circumstances, that is sufficient to warrant proceeding through foreclosure or other liquidation of the related Mortgaged Property, such Servicer may continue to make Advances on the related Loan that has become 180 days delinquent and, will notify the Credit Risk Manager of that decision.

(f)         Any Loan that becomes a Charged Off Loan may continue to be serviced by the related Servicer for the Securityholders using Special Servicing. The related Servicer will accrue, but not be entitled to, any Servicing Fees and reimbursement of expenses in connection with such Charged Off Loans, except to the extent of funds available from the aggregate amount of recoveries on all Loans serviced by that Servicer that are Charged Off Loans. Such aggregate recovery amounts on Loans serviced by that Servicer that are Charged Off Loans shall be paid to the related Servicer first, as reimbursement of any outstanding and unpaid expenses, and second, as any accrued and unpaid Servicing Fees.  The related Servicer will only be entitled to previously accrued Servicing Fees and expenses on any such Charged Off Loans.  The related Servicer will
not be entitled to receive any future unaccrued Servicing Fees or expenses from collections on such Charged Off Loans.  Any Charged Off Loan serviced by a Servicer using 

 

Special Servicing shall be so serviced until the Release Date described below. Any Net Recoveries on such Charged Off Loans received prior to the Release Date will be included in the Principal Remittance Amount and Interest Remittance Amount.

On the date (the “Release Date”) which is no more than six months after the date on which a Servicer begins servicing any Charged Off Loans using Special Servicing, unless specific Net Recoveries are anticipated by the related Servicer on a particular Charged Off Loan (in which case the Release Date will be delayed until all such specific anticipated Net Recoveries are received or no longer anticipated), such Charged Off Loan will be released from the Trust, will no longer be an asset of any REMIC, and will be transferred to the Class X-2 Certificateholders, without recourse, and thereafter (i) those Holders, as identified with contact information in writing to the related Servicer by the Depositor, will be entitled to any amounts subsequently received in respect of any such Released Loans, subject to the related Servicer’s fees described below, (ii) the majority in
interest Class X-2 Certificateholder may designate any servicer to service any such Released Loan, (iii) the majority in interest Class X-2 Certificateholder may sell any such Released Loan to a third party and (iv) to the extent the servicing of such Charged Off Loans is not transferred from the related Servicer, the servicing of such Charged Off Loans and the fees therefor shall be governed by the most current servicing agreement between the related Servicer and the Seller.  Notwithstanding the previous sentence, if at any time after a Loan has been Charged Off and prior to six months after the date on which the related Servicer begins servicing such Charged Off Loan using Special Servicing, the related Servicer determines that there will not be any Net Recoveries on such Charged Off Loan under any circumstances, such Servicer may release such Charged Off Loan to the majority in interest Class X-2 Certificateholder in accordance with the provisions set forth in the previous
sentence.

Notwithstanding the foregoing, the procedures described above in the first paragraph of this subsection 3.07(f) relating to the treatment of Charged Off Loans may be modified at any time at the discretion of the majority in interest Class X-1 Certificateholder, with the consent of the applicable Servicers, which consents shall not be unreasonably withheld; provided, however, that in no event shall the majority in interest Class X-1 Certificateholder change the fee structure relating to Charged Off Loans in a manner that would cause fees to be paid to the Servicers other than from recoveries on Charged Off Loans.

The Trust Administrator shall track collections received by each Servicer on any Charged Off Loans based upon loan level data provided to the Trust Administrator by the related Servicer on each Data Remittance Date in a report in the form of Exhibit E hereto, identifying the Charged Off Loans as of the related Collection Period that such Servicer will continue to service until the related Release Date using Special Servicing.  On each Payment Date, the Trust Administrator shall verify, based on the recovery and expense information provided by the related Servicer, on the related Data Remittance Date, (i) the aggregate amount of accrued and unpaid Servicing Fees to be paid to each Servicer, and expenses to be reimbursed to each Servicer, on such Charged Off Loans as of the related Collection Period and (ii) the amount of Net Recoveries on such Charged Off Loans for such Payment Date. The
Trust Administrator shall be entitled to rely, without independent verification, on the loan level data provided by the Servicers that identifies the recovery amounts and the outstanding and unpaid expenses on any Charged Off Loan in order to verify the amount in clause (ii) of the previous sentence.  The Trust Administrator will be responsible for independently verifying the aggregate amount of accrued 

 

and unpaid Servicing Fees described in clause (i) of the second preceding sentence to be paid to the related Servicer.

(g)        The majority Class X-2 Certificateholder, at its option, may (but is not obligated to) repurchase from the Trust Fund, (a) any Loan that is delinquent in payment by three or more Scheduled Payments or (b) any Loan with respect to which there has been initiated legal action or other proceedings for the foreclosure of the related Mortgaged Property either judicially or non-judicially. If it elects to make any such repurchase, the majority Class X-2 Certificateholder shall repurchase such Loan with its own funds at a price equal to the Repurchase Price for such Loan.  The majority Class X-2 Certificateholder may designate any servicer to service any such Loan purchased from the Trust.

Section 3.08     Issuer, Trust Administrator and Indenture Trustee to Cooperate.  On or before each Payment Date, each Servicer will notify the Master Servicer, the Trust Administrator, the Indenture Trustee or the Custodian, with a copy to the Issuer, of the termination of or the payment in full and the termination of any Loan during the preceding Collection Period.  Upon receipt of payment in full, the related Servicer is authorized to execute, pursuant to the authorization contained in Section 3.01, if the assignments of Mortgage have been recorded if required under the Loan Purchase Agreement, an instrument of satisfaction regarding the related Mortgage, which instrument of satisfaction shall be recorded by the related Servicer if required by applicable law and be delivered to the Person entitled thereto
and, if applicable, to cause the removal from the registration on the MERS® System of such Mortgage.  It is understood and agreed that any expenses incurred in connection with such instrument of satisfaction or transfer shall be reimbursed from amounts deposited in the related Custodial Account.  From time to time and as appropriate for the servicing or foreclosure of any Loan, the Custodian shall, pursuant to the terms of the Custodial Agreement, upon request of the related Servicer and delivery to the Custodian, with a copy to the Issuer, of a Request for Release, signed by a Servicing Officer, release or cause to be released the related Loan File to the related Servicer and the Issuer or Indenture Trustee shall promptly execute such documents, in the forms provided by the related Servicer, as shall be necessary for the prosecution of any such proceedings or the taking of other servicing actions.  Such trust receipt shall obligate the related Servicer to return the Loan File to
the Custodian (as specified in such receipt) when the need therefor by the related Servicer no longer exists unless the Loan shall be liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that hereinabove specified, the trust receipt shall be released to the related Servicer.

In order to facilitate the foreclosure of the Mortgage securing any Loan that is in default following recordation of the assignments of Mortgage in accordance with the provisions of the Loan Purchase Agreement, the Indenture Trustee or the Issuer shall, if so requested in writing by the related Servicer, promptly execute an appropriate assignment in the form provided by the related Servicer to assign such Loan for the purpose of collection to the related Servicer (any such assignment shall unambiguously indicate that the assignment is for the purpose of collection only), and, upon such assignment, such assignee for collection will thereupon bring all required actions in its own name and otherwise enforce the terms of the Loan and deposit or credit the Net Liquidation Proceeds, inclusive of Foreclosure Profits, received with respect thereto in the related Custodial Account.

 

 

In the event that all delinquent payments due under any such Loan are paid by the Mortgagor and any other defaults are cured, then the assignee for collection shall promptly reassign such Loan to the Indenture Trustee and return all Loan Files to the place where the related Loan File was being maintained.

In connection with the Issuer’s obligation to cooperate as provided in this Section 3.08 and all other provisions of this Servicing Agreement requiring the Issuer to authorize or permit any actions to be taken with respect to the Loans, the Indenture Trustee, expressly agrees, on behalf of the Issuer, to take all such actions on behalf of the Issuer and to promptly execute and return all instruments reasonably required by the Servicers in connection therewith.

Section 3.09     Servicing Compensation and Master Servicing Compensation; Payment of Certain Expenses by Servicers.

Each Servicer shall be entitled to receive the related Servicing Fee in accordance with Sections 3.02 and 3.03 as compensation for its services in connection with servicing the Loans.  Moreover, additional servicing compensation in the form of late payment charges, Prepayment Interest Excess, investment income on amounts in the related Custodial Account or the Payment Account and other receipts not required to be deposited in the related Custodial Account as specified in Section 3.02 shall be retained by the related Servicer.  Each Servicer shall be required to pay all expenses incurred by it in connection with its normal and customary activities hereunder and shall not be entitled to reimbursement therefor.

As compensation for its services hereunder, the Master Servicer shall be entitled to receive the Master Servicing Fee with respect to each Loan in accordance with Section 3.05(a) of the Indenture. 

Section 3.10     Annual Statement as to Compliance.  Each Servicer will deliver to the Master Servicer no later than March 15 of each year, beginning with 2006, an Officers’ Certificate stating, as to each signatory thereof, that (i) a review of the activities of such Servicer during the preceding calendar year and of its performance under this Servicing Agreement has been made under such officers’ supervision, and (ii) to the best of such officers’ knowledge, based on such review, such Servicer has materially fulfilled all of its obligations under this Servicing Agreement throughout such year, or, if there has been a material default in the fulfillment of any such obligation, specifying each such default known to such officers and the nature and status thereof and the action being taken by such
Servicer to cure such default.  Upon each receipt of such Officer’s Certificate from any Servicer, the Master Servicer shall promptly deliver a copy of such Officer’s Certificate to the Issuer, the Underwriter, the Trust Administrator and the Indenture Trustee.

The Master Servicer will deliver to the Issuer, the Underwriter, the Trust Administrator and the Indenture Trustee as of March 15 of each year, beginning with 2006, an Officers’ Certificate stating, as to each signatory thereof, that (i) a review of the activities of the Master Servicer during the preceding calendar year and of performance under this Servicing Agreement has been made under such officers’ supervision, and (ii) to the best of such officers’ knowledge, based on such review, the Master Servicer has fulfilled all of its obligations under this Servicing Agreement throughout such year, or, if there has been a default in the fulfillment of any such 

 

obligation, specifying each such default known to such officers and the nature and status thereof and the action being taken by the Master Servicer to cure such default.

Section 3.11     Annual Servicing Report.  On or before March 15 of each year, beginning in 2006, the Master Servicer at its expense shall cause a firm of independent public accountants which is a member of the American Institute of Certified Public Accountants to furnish a statement to the Trust Administrator, in the form of Exhibit F hereto.  Upon the Trust Administrator’s receipt of such statement, the Trust Administrator shall send a copy of such statement to the Depositor.

On or before March 15 each year, beginning in 2006, each Servicer at its expense shall cause a firm of independent public accountants which is a member of the American Institute of Certified Public Accountants to furnish a statement to the Issuer, the Indenture Trustee, the Trust Administrator, the Master Servicer, the Depositor, the Underwriter and each Rating Agency to the effect that such firm has examined certain documents and records relating to such Servicer’s servicing of mortgage loans of the same type as the Loans pursuant to servicing agreements substantially similar to this Servicing Agreement, which servicing agreements may include this Servicing Agreement, and that, on the basis of such an examination, conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers or the Audit Guide for HUD Approved Title II Approved Mortgagees
and Loan Correspondent Programs, nothing has come to their attention which would indicate that such servicing has not been conducted in compliance with Accepted Servicing Practices, except for (i) such exceptions as such firm shall believe to be immaterial, and (ii) such other exceptions as shall be set forth in such statement.  In addition, each Servicer shall disclose to such firm all significant deficiencies relating to such Servicer’s compliance with the minimum servicing standards set forth in this Agreement.  In rendering such statement, such firm may rely, as to matters relating to the direct servicing of such Loans by Subservicers, upon comparable statements for examinations conducted by independent public accountants substantially in accordance with standards established by the American Institute of Certified Public Accountants (rendered within one year of such statement) with respect to such Subservicers.

Section 3.12     Access to Certain Documentation and Information Regarding the Loans.  Whenever required by statute or regulation, the Master Servicer and each Servicer shall provide to any Securityholder upon reasonable request (or a regulator for a Securityholder) or the Master Servicer, the Trust Administrator or the Indenture Trustee, reasonable access to the documentation regarding the related Loans in its possession, such access being afforded without charge but only upon reasonable request and during normal business hours at the offices of the related Servicer or the Master Servicer.  In addition, each Servicer shall provide to the Special Servicer reasonable access to all records and documentation regarding the Loans serviced by it that become Special Serviced Loans.  Each Servicer may, from time to time,
provide the Depositor, the Master Servicer, the Trust Administrator, the Indenture Trustee and any Person designated by the Depositor, the Master Servicer, the Trust Administrator or the Indenture Trustee, with reports and information regarding the Loans, including without limitation, information requested by the Depositor or an originator of the Loans for required institutional risk control.  Nothing in this Section 3.12 shall derogate from the obligation of each Servicer and the Master Servicer to observe any applicable law prohibiting disclosure of information regarding the Mortgagors and the failure of a Servicer or the Master Servicer to provide access as 

 

provided in this Section 3.12 as a result of such obligation shall not constitute a breach of this Section 3.12.

	
            Section 3.13
 	
            Maintenance of Certain Servicing Insurance Policies.
 

(a)        Each Servicer shall maintain with a responsible company, and at its own expense, a banker's blanket fidelity bond (a “Fidelity Bond”) and a mortgage errors and omissions insurance policy (an “Errors and Omissions Policy”), in amounts as required by Fannie Mae and Freddie Mac and as are commercially available and at costs that are not generally regarded as excessive by industry standards.  Any fidelity bond shall protect against dishonest act of officers and employees.  Any such Fidelity Bond or Errors and Omissions Policy shall not be canceled without the prior written consent of the Indenture Trustee and the Trust Administrator.  The Master Servicer shall maintain a Fidelity Bond and an Errors and Omissions Policy in such amounts generally acceptable for entities serving as master servicer.

(b)        Each Servicer shall be deemed to have complied with this provision if any of its Affiliates has such a Fidelity Bond and Errors and Omissions Policy and, by the terms of such policy, the coverage afforded thereunder extends to the related Servicer.  Each Servicer shall cause each Subservicer to maintain an Errors and Omissions Policy and a Fidelity Bond meeting the requirements of this Section.

Section 3.14     Information Required by the Internal Revenue Service and Reports of Foreclosures and Abandonments of Mortgaged Property.  Each Servicer shall prepare and deliver all federal and state information reports when and as required by all applicable state and federal income tax laws.  In particular, with respect to the requirement under Section 6050J of the Code to the effect that a Servicer or Subservicer shall make reports of foreclosures and abandonments of any mortgaged property for each year beginning in 2005, each Servicer or Subservicer shall file reports relating to each instance occurring during the previous calendar year in which the related Servicer (i) on behalf of the Issuer, acquires an interest in any Mortgaged Property through foreclosure or other comparable conversion in full or
partial satisfaction of a Loan, or (ii) knows or has reason to know that any Mortgaged Property has been abandoned.  The reports from the related Servicer or Subservicer shall be in form and substance sufficient to meet the reporting requirements imposed by Section 6050J and Section 6050H (reports relating to mortgage interest received) of the Code.

	
            Section 3.15
 	
            Periodic Filings.
 

(a)        Each Servicer and the Master Servicer shall reasonably cooperate with the Depositor and the Trust Administrator in connection with the Trust’s satisfying the reporting requirements under the Exchange Act.

(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 Master Servicer will deliver to the Depositor and the Trust Administrator an Officer’s Certificate for the prior calendar year in substantially the form of Exhibit D-1 to this Agreement. The Master Servicer agrees to indemnify and hold harmless the 

 

Depositor, the Trust Administrator and each Person, if any, who “controls” the Depositor or the Trust Administrator 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 Master Servicer to deliver or cause to be delivered when required any Officer’s Certificate pursuant to this Section 3.15(b), or (ii) any material misstatement or omission contained in any Officer’s Certificate provided pursuant to this Section 3.15(b).  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
3.15(b) by the Master Servicer is unavailable or insufficient to hold harmless such Persons, then the Master 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 the Trust Administrator on the one hand and the Master Servicer on the other.  The Master Servicer acknowledges that the Depositor and the Trust Administrator are relying on such Servicer’s performance of its obligations under this Agreement in order to perform their respective obligations under Section 6.16 of the Indenture.

(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), each Servicer, with respect to the Loans serviced by such Servicer, will deliver to the Trust Administrator, and the Trust Administrator shall forward to the Depositor and the Master Servicer, an Officer’s Certificate for the prior calendar year in substantially the form of Exhibit D-2 to this Agreement. Each Servicer agrees to indemnify and hold harmless the Depositor, the Trust Administrator, the Master Servicer and each Person, if any, who “controls” the Depositor, the Trust Administrator or the Master Servicer 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 such Servicer to deliver or cause to be delivered when required any Officer’s Certificate pursuant to this Section 3.15(c), or (ii) any material misstatement or omission contained in any Officer’s Certificate provided by such Servicer pursuant to this Section 3.15(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 3.15(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, the Trust Administrator or the Master Servicer on the one hand and such Servicer on the other.  Each Servicer acknowledges that the Depositor, the Trust Administrator and the Master Servicer are relying on such Servicer’s performance of its obligations under this Agreement in order to perform their respective obligations under this Section 3.15 (in the case of the Master Servicer) and Section 6.16 of the Indenture (in the case of the Depositor and the Trust Administrator).

(d)        If the Commission issues additional interpretative guidance or promulgates additional rules or regulations, or if other changes in applicable law occur, that would require the 

 

reporting arrangements, or the allocation of responsibilities with respect thereto, described in this Section 3.15, to be conducted differently than as described, the parties hereto will reasonably cooperate to amend the provisions of this Section 3.15 in order to comply with such amended reporting requirements and such amendment of this Section 3.15.  Any such amendment shall be made in accordance with Section 8.01 without the consent of the Securityholders, and may result in a change in the reports filed by the Trust Administrator on behalf of the Trust under the Exchange Act.  Notwithstanding the foregoing, the Depositor, Servicers, the Master Servicer and the Trust Administrator shall not be obligated to enter into any amendment pursuant to this Section 3.15 that adversely affects its obligations and immunities under this Agreement.

	
            Section 3.16
 	
            HELOC Draws; Excluded Amounts.
 

(a)        PNC shall be obligated to fund any Draws with respect to any HELOC in accordance with the terms of the of the related Loan.  Unless such Additional Balance constitutes an Excluded Amount, it shall automatically be sold and transferred to the Issuer.  With respect to each Additional Balance transferred to the Issuer, the Issuer shall pay or cause to be paid to PNC or its designee the purchase price for such Additional Balance equal to the amount of the related Draw in one of the following ways, as applicable, (i) a cash payment pursuant to paragraph (c) below in an amount or (ii) so long as no Amortization Event is in effect, by an increase to the Additional Balance Advance Amount with such Additional Balance Advance Amount reimbursed to PNC pursuant to Section 5.01(a) of the Trust Agreement.  PNC hereby acknowledges that the Additional
Balance Advance Amount is only reimbursable pursuant to the terms of the Indenture and the Trust Agreement and that such amounts shall constitute an advance on behalf of the Issuer and that PNC does not own any interest in the related Loan.  Additional Balances comprising the Additional Balance Advance Amount shall be an asset of the Trust Estate but not be an asset of REMIC I or REMIC II.

(b)        PNC hereby acknowledges that if an Amortization Event is in effect, it shall be responsible to fund all Draws and that such Draws shall be Excluded Amounts and shall not constitute a part of the Additional Balance Advance Amount but shall be the property of PNC.  Principal and interest payments made by the related Mortgagor or other collections in respect of a HELOC and the related Excluded Amount received during any Collection Period shall be allocated between such HELOC and the related Excluded Amount on a pro rata basis and shall only be reimbursed to PNC (the “Reimbursable Excluded Amount”) based on a pro rata allocation between the related Excluded Amount and the Principal Balance of the related HELOC in proportion to the respective amounts outstanding as of the end of the calendar month preceding such Collection Period.
Any such Reimbursable Excluded Amount may be withdrawn by PNC from the related Custodial Account pursuant to Section 3.03(i) hereof.

(c)        On each Payment Date, prior to any distributions to Securityholders, the Trust Administrator shall remit to PNC, if then available from Principal Collections during the related Collection Period, from funds on deposit in the Payment Account, an amount equal to any Additional Balances created during the related Collection Period and not previously reimbursed to PNC pursuant to Section 3.03(i)(a).

 

	
            Section 3.17
 	
            Duties of the Credit Risk Manager.
 

The Depositor appoints Clayton Fixed Income Services Inc. (formerly known as The Murrayhill Company) as Credit Risk Manager. For and on behalf of the Depositor, and the Indenture Trustee, the Credit Risk Manager will provide the Depositor with reports and recommendations concerning Loans that are past due, as to which there has been commencement of foreclosure, as to which there has been forbearance in exercise of remedies which are in default, as to which obligor is the subject of bankruptcy, receivership, or an arrangement of creditors, or as to which have become REO. Such reports and recommendations will be based upon information provided to the Credit Risk Manager pursuant to the Credit Risk Management Agreements or in the case of PNC, pursuant to this Agreement, and the Credit Risk Manager shall look solely to the related Servicer for all information and data (including loss and
delinquency information and data) and loan level information and data relating to the servicing of the Loans. If the Credit Risk Manager is no longer able to perform its duties hereunder, the Depositor shall terminate the Credit Risk Manager and cause the appointment of a successor Credit Risk Manager. Upon any termination of the Credit Risk Manager or the appointment of a successor Credit Risk Manager, the Depositor shall give written notice thereof to the Seller, the Servicers, the Master Servicer, the Trust Administrator, the Indenture Trustee and each Rating Agency. Notwithstanding the foregoing, the termination of the Credit Risk Manager pursuant to this Section 3.17 shall not become effective until the appointment of a successor Credit Risk Manager.

In connection with those Loans serviced by PNC pursuant to this Agreement, PNC agrees to provide the Credit Risk Manager with all information on such Loans that is reasonably requested by the Credit Risk Manager, which information shall include, but not be limited to, monthly performance data on each such Loan containing the information specified in Exhibit G to this Agreement, information on delinquent and defaulted PNC Serviced Loans, information on prepayment charges with respect to the PNC Serviced Loans, and copies of realized loss certificates or any itemization regarding each Liquidated Loan serviced by PNC for the applicable Collection Period.

PNC shall permit the Credit Risk Manager to conduct an on-site review and evaluation of its operations, as they relate to the PNC Serviced Loans, no more than annually, unless circumstances warrant special review.  Circumstances warranting special review shall include, but not be limited to, a request by the Depositor that a review be conducted.  The review and evaluation will be conducted upon at least thirty (30) days prior written notice to PNC by the Credit Risk Manager, and shall be conducted at the Credit Risk Manager’s expense.

The Credit Risk Manager may provide the Servicers with advice regarding the management of specific Loans.  The Credit Risk Manager’s advice is made in the form of recommendations only, and the Credit Risk Manager does not have the right to direct the Servicers in performing their duties under the this Agreement.  The Credit Risk Manager acknowledges that any Servicer may, after review and analysis of the Credit Risk Manager’s recommendation, accept or reject such advice, in such Servicer’s sole discretion, subject to the duties of the Servicer set forth in this Agreement.

 

	
            Section 3.18
 	
            Limitation Upon Liability of the Credit Risk Manager.
 

Neither the Credit Risk Manager, nor any of the directors, officers, employees or agents of the Credit Risk Manager, shall be under any liability to the Indenture Trustee, the Securityholders or the Depositor for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement, in reliance upon information provided by a Servicer under the Credit Risk Management Agreements or in the case of PNC, under this Agreement, or for errors in judgment; provided, however, that this provision shall not protect the Credit Risk Manager or any such person against liability that would otherwise be imposed by reason of willful malfeasance, bad faith or gross negligence in its performance of its duties under this Agreement or the Credit Risk Management Agreements. The Credit Risk Manager and any director, officer, employee or agent of the Credit Risk Manager 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, and may rely in good faith upon the accuracy of information furnished by any Servicer pursuant to the Credit Risk Management Agreements or in the case of PNC, pursuant to this Agreement, in the performance of its duties thereunder and hereunder.

	
            Section 3.19
 	
            Advances by the Master Servicer and the Servicers.
 

With respect to each Loan (other than the HELOCs), the related Servicer shall deposit in the related Custodial Account an amount equal to all Scheduled Payments (with interest at the Mortgage Interest Rate less the Servicing Fee Rate) which were due but not received on the related Loans during the applicable Collection Period; provided however, that with respect to any Balloon Loan that is delinquent on its maturity date, the related Servicer will not be required to advance the related balloon payment but will be required to continue to make Advances in accordance with this Section 3.19 with respect to such Balloon Loan in an amount equal to an assumed scheduled payment that would otherwise be due based on the original amortization schedule for that Loan (with interest at the Mortgage Rate less the Servicing Fee Rate). Each Servicer’s obligation to make such Advances as to any
related Loan will continue through the last Scheduled Payment due prior to the payment in full of such Mortgage Loan, or through the date that the related Mortgaged Property has, in the judgment of such Servicer, been completely liquidated; provided however, that such obligation with respect to any related Loan shall cease if such Servicer determines, in its reasonable opinion, that Advances with respect to such Loan are Nonrecoverable Advances; provided that the related Servicer will be required to make Advances until the earlier of (i) through the time at which the related Loan becomes 120 days delinquent or (ii) the time at which the related Servicer determines that such Advances with respect to such Loan are Nonrecoverable Advances. In the event that such Servicer determines that any such Advances are Nonrecoverable Advances, such Servicer shall provide the Master Servicer and the Trust Administrator with a certificate signed by a Servicing Officer evidencing such
determination.

If an Advance is required to be made hereunder, the related Servicer shall on the related Servicer Remittance Date either (i) deposit in the Custodial Account from its own funds an amount equal to such Advance, (ii) cause to be made an appropriate entry in the records of the Custodial Account that funds in such account being held for future distribution or withdrawal have been, as permitted by this Section 3.19, used by the related Servicer to make such Advance or (iii) make Advances in the form of any combination of clauses (i) and (ii) aggregating the amount of such Advance. Any such funds being held in a Custodial Account for future distribution and so used shall be replaced by the related Servicer from its own funds by deposit 

 

in such Custodial Account on or before any future Payment Date in which such funds would be due.  The related Servicer shall be entitled to be reimbursed from the Custodial Account for all Advances of its own funds made pursuant to this Section as provided in Section 3.03.

If the amount of Advances received from a Servicer is less than the amount required to be advanced by such Servicer, the Master Servicer shall be obligated to make a payment in an amount equal to such deficiency, subject to any determination by the Master Servicer that any portion of the amount required to be advanced is a Nonrecoverable Advance.

	
            Section 3.20
 	
            Master Servicing by Master Servicer; Master Servicer Account .
 

For and on behalf of the Securityholders, the Master Servicer shall oversee and enforce the obligation of each Servicer (other than PNC) to service and administer their related Loans in accordance with the terms of this Agreement and shall have full power and authority to do any and all things which it may deem necessary or desirable in connection with such master servicing and administration.  In performing its obligations hereunder, the Master Servicer shall act in a manner consistent with this Agreement and with customary and usual standards of practice of prudent mortgage loan master servicers.  Furthermore, the Master Servicer shall oversee and consult with the related Servicer (other than PNC) as necessary from time-to-time to carry out the Master Servicer’s obligations hereunder, shall receive, review and evaluate all reports, information and other data provided to the Master
Servicer by each Servicer (other than PNC) and shall cause each Servicer (other than PNC)to perform and observe the covenants, obligations and conditions to be performed or observed by such Servicer under this Agreement.

With respect to any Payment Date, no later than the related Servicer Remittance Date, the Master Servicer shall remit to the Trust Administrator for deposit in the Payment Account the amount of the Compensating Interest Payment for the Master Servicer for the related Prepayment Period to the extent the related Servicers default in their obligation to make such Compensating Interest Payment pursuant to Section 3.02.  The aggregate of such deposits shall be made from the Master Servicer’s own funds, without reimbursement therefor.

The Master Servicer shall establish a Master Servicer Account, which shall be an Eligible Account, titled “[Master Servicer’s name], in trust for the Holders of Credit Suisse First Boston Mortgage Acceptance Corp., Home Equity Loan-Backed Notes, Series 2005-HF1” in which the Master Servicer shall deposit any amounts received from the Servicers (other than PNC) pursuant to Section 3.03(ii).

The Master Servicer shall, from time to time as provided herein, make withdrawals from the Master Servicer Account for the following purposes:

(i)           on each Servicer Remittance Date preceding a Payment Date, the Master Servicer shall withdraw from the Master Servicer Account and remit to the Trust Administrator for deposit in the Payment Account any amounts received by the Master Servicer from the Servicers with respect to such Servicer Remittance Date;

(ii)          to reimburse the Master Servicer for unreimbursed Advances made by it, such right of reimbursement pursuant to this subclause (ii) being limited to amounts received on the Loan(s) in respect of which any such Advance was made (including without limitation, late recoveries of payments, Liquidation Proceeds and Insurance Proceeds, amounts representing proceeds of other insurance policies, if any, covering the related Mortgaged Property, rental and other income from REO and proceeds of any purchase or repurchase of the related Loan to the extent deposited in the Master Servicer Account); and

(iii)        to reimburse the Master Servicer for any Nonrecoverable Advance previously made from collections or proceeds of any of the Loans master serviced by the Master Servicer.

	
            Section 3.21
 	
            Indenture Trustee to Act as Master Servicer or Servicer.
 

In the event that (A) the Master Servicer shall for any reason no longer be Master Servicer hereunder or (B) any Servicer shall for any reason no longer be a Servicer hereunder and the Master Servicer shall for any reason no longer be Master Servicer hereunder (including, in each case, by reason of a Servicing Default), the Indenture Trustee or its successor shall thereupon assume all of the rights and obligations of the Master Servicer or such Servicer hereunder arising thereafter (except that the Indenture Trustee shall not be (i) obligated to make Advances if it is prohibited from doing so by applicable law, (ii) deemed to have made any representations and warranties of the Master Servicer or such Servicer hereunder), (iii) liable for any losses of the Master Servicer or such Servicer pursuant to this Agreement or any acts or omissions of the related predecessor of the Master Servicer
or such Servicer hereunder, or (iv) obligated to effectuate repurchases or substitutions of Loans hereunder including, but not limited to, repurchases or substitutions of Loans pursuant to Section 2.03 hereof.  Any such assumption shall be subject to Section 7.02 hereof.

 

 

Each Servicer shall, upon request of the Indenture Trustee, but at the expense of such Servicer, if such Servicer is terminated pursuant to Section 7.01 hereof, deliver to the assuming party all documents and records relating to each Subservicing Agreement or substitute Subservicing Agreement and the Loans then being serviced thereunder and hereunder by such Servicer and an accounting of amounts collected or held by it and otherwise use commercially reasonable efforts to effect the orderly and efficient transfer of the Subservicing Agreement or substitute Subservicing Agreement to the assuming party.

	
            Section 3.22
 	
            Special Serviced Loans.
 

If directed by the Special Servicer and solely at the Special Servicer’s option, each Servicer (a “Transferring Servicer”), shall transfer the servicing of any Loan 180 days or more delinquent to the Special Servicer.  The Special Servicer shall thereupon assume all of the rights and obligations of the Transferring Servicer, as Servicer, hereunder arising thereafter and the Transferring Servicer shall have no further rights or obligations, as Servicer, hereunder with respect to such Mortgage Loan (except that the Special Servicer shall not be (i) liable for any acts or omissions of the Transferring Servicer hereunder prior to the servicing transfer date or (iii) deemed to have made any representations and warranties of the Transferring Servicer hereunder).  Upon the transfer of the servicing of any such Loan to the Special Servicer, the Special Servicer shall be entitled
to the Servicing Fee and other compensation accruing after the servicing transfer date with respect to such Mortgage Loans pursuant to Section 3.09.

In connection with the transfer of the servicing of any Loan to the Special Servicer, the Transferring Servicer, at the Special Servicer’s expense, shall deliver to the Special Servicer all documents and records relating to such Loans and an accounting of amounts collected or held by it and otherwise use its commercially reasonable efforts to effect the orderly and efficient transfer of the servicing to the Special Servicer.  On the servicing transfer date, the Special Servicer shall reimburse the Transferring Servicer for all unreimbursed Advances, Servicing Advances and Servicing Fees relating to the Loans for which the servicing is being transferred.  The Special Servicer shall be entitled to be reimbursed pursuant to Section 3.03 or otherwise pursuant to this Agreement for all such Advances, Servicing Advances and Servicing Fees paid by the Transferring Servicer pursuant to this
Section 3.22.  In addition, the Special Servicer shall notify the Issuer, the Master Servicer, the Trust Administrator and the Indenture Trustee of such transfer and the effective date of such transfer, and the Trust Administrator shall update its records to reflect that such Loans are Special Serviced Loans.

	
            Section 3.23
 	
            Advance Facility.
 

(a)        Each Servicer (other than PNC) is hereby authorized to enter into a financing or other facility (any such arrangement, an “Advance Facility”) under which (1) such Servicer assigns or pledges to another Person (an “Advancing Person”) such Servicer’s rights under this Agreement to be reimbursed for any Advances or Servicing Advances and/or (2) an Advancing Person agrees to fund some or all Advances and/or Servicing Advances required to be made by such Servicer pursuant to this Agreement.  No consent of the Master Servicer, Trust Administrator, Indenture Trustee, Noteholders or Certificateholders or any other party is required before a Servicer may enter into an Advance Facility; provided, however, that the consent of the Trust Administrator (which consent shall not be
unreasonably withheld) shall be required before 

 

a Servicer may cause to be outstanding at one time more than one Advance Facility with respect to Advances or more than one Advance Facility with respect to Servicing Advances. Notwithstanding the existence of any Advance Facility under which an Advancing Person agrees to fund Advances and/or Servicing Advances on a Servicer’s behalf, such Servicer shall remain obligated pursuant to this Agreement to make Advances and Servicing Advances pursuant to and as required by this Agreement, and shall not be relieved of such obligations by virtue of such Advance Facility.  If a Servicer enters into an Advance Facility, and for so long as an Advancing Person remains entitled to receive reimbursement for any Advances or Servicing Advances outstanding and previously unreimbursed pursuant to this Agreement, then such Servicer may elect by providing written notice to the Trust Administrator not to be permitted to
reimburse itself for Advances and/or Servicing Advances, as applicable, pursuant to Section 3.03 of this Agreement, but following any such election such Servicer shall be required to include amounts collected that would otherwise be retained by such Servicer to reimburse it for previously unreimbursed Advances (“Advance Reimbursement Amounts”) and/or previously unreimbursed Servicing Advances (“Servicing Advance Reimbursement Amounts” and together with Advance Reimbursement Amounts, “Reimbursement Amounts”) (in each case to the extent such type of Reimbursement Amount is included in the Advance Facility) in the remittance to the Trust Administrator made pursuant to this Agreement to the extent of amounts on deposit in the related Custodial Account on the related Servicer Remittance Date.  Notwithstanding anything to the contrary herein, in no event shall Advance Reimbursement Amounts or Servicing Advance Reimbursement Amounts be included in Interest
Remittance Amounts or Principal Remittance Amounts or distributed to Noteholders.  Any Servicer, if making the election set forth herein, shall report to the Trust Administrator the portions of the Reimbursement Amounts that consist of Advance Reimbursement Amounts and Servicing Advance Reimbursement Amounts, respectively.

(b)        If a Servicer enters into an Advance Facility and makes the election set forth in Section 3.23(a), such Servicer and the related Advancing Person shall deliver to the Trust Administrator a written notice and payment instruction (an “Advance Facility Notice”), providing the Trust Administrator with written payment instructions as to where to remit Advance Reimbursement Amounts and/or Servicing Advance Reimbursement Amounts (each to the extent such type of Reimbursement Amount is included within the Advance Facility) on subsequent Payment Dates.  The payment instruction shall require the applicable Reimbursement Amounts to be distributed to the Advancing Person or to a trustee or custodian (an “Advance Facility Trustee”) designated in the Advance Facility Notice.  An Advance Facility Notice may only be terminated by the
joint written direction of the related Servicer and the related Advancing Person (and any related Advance Facility Trustee); provided, however, that the provisions of this Section 3.23 shall cease to be applicable when all Advances and Servicing Advances funded by an Advancing Person, and when all Advances and Servicing Advances (the rights to be reimbursed for which have been assigned or pledged to an Advancing Person), have been repaid to the related Advancing Person in full.

(c)        Reimbursement Amounts shall consist solely of amounts in respect of Advances and/or Servicing Advances made with respect to the Loans for which the related Servicer would be permitted to reimburse itself in accordance with Section 3.03(xii), (xiii), (xiv) and (xvi) hereof, assuming such Servicer had made the related Advance(s) and/or Servicing Advance(s).  Notwithstanding the foregoing, no Person shall be entitled to reimbursement from 

 

funds held in the related Custodial Account for future distribution to Noteholders pursuant to the provisions of Section 3.19.  The Trust Administrator shall not have any duty or liability with respect to the calculation of any Reimbursement Amount and shall be entitled to rely without independent investigation on the Advance Facility Notice and on the applicable Servicer’s report of the amount of Advance Reimbursement Amounts and Servicing Advance Reimbursement Amounts that were included in the remittance from the related Servicer to the Trustee pursuant to Section 3.03(ii).  Each Servicer (other than PNC) shall maintain and provide to any successor Servicer a detailed accounting on a loan-by-loan basis as to amounts advanced by, pledged or assigned to, and reimbursed to any Advancing Person.  The successor Servicer shall be entitled to rely on any such information provided by the related Servicer
and the successor Servicer shall not be liable for any errors in such information.

(d)        With respect to any Advance Facility pursuant to which a Servicer has made the election set forth in Section 3.23(a), the documentation establishing any Advance Facility shall require that Reimbursement Amounts distributed with respect to each Loan be allocated to outstanding unreimbursed Advances or Servicing Advances (as the case may be) made with respect to that Loan on a “first-in, first-out” (FIFO) basis.  Such documentation shall also require the related Servicer to provide to the related Advancing Person or Advance Facility Trustee loan-by-loan information with respect to each Reimbursement Amount distributed by the Trust Administrator to such Advancing Person or Advance Facility Trustee on each Payment Date, to enable the Advancing Person or Advance Facility Trustee to make the FIFO allocation of each Reimbursement Amount
with respect to each Loan.  The related Servicer shall remain entitled to be reimbursed by the Advancing Person or Advance Facility Trustee for all Advances and Servicing Advances funded by such Servicer to the extent the related rights to be reimbursed therefor have not been assigned or pledged to an Advancing Person.

If a Servicer enters into an Advance Facility, such Servicer shall indemnify the Trust Administrator and the Trust and any successor Servicer, as applicable, from and against any claims, losses, liabilities or damages resulting from the establishment of such Advance Facility and any claim by the related Advancing Person or any other Person, except to the extent that such claim, loss, liability or damage resulted from or arose out of negligence, recklessness or willful misconduct on the part of the successor Servicer or the Trust Administrator, or failure by the successor Servicer or the Trust Administrator to remit funds as required by Section 3.23(b).  Any amendment to this Section 3.23 or to any other provision of this Agreement that may be necessary or appropriate to effect the terms of an Advance Facility as described generally in this Section 3.23, including amendments to add
provisions relating to a successor Servicer, may be entered into by the parties hereto without the consent of any Noteholder notwithstanding anything to the contrary in Section 8.01 of or elsewhere in this Agreement or the Indenture.

ARTICLE IV

 

SERVICING CERTIFICATES

Section 4.01    Statements to Securityholders.  Each Servicer (other than PNC) shall  provide to  the Master Servicer, and PNC shall provide to the Trust Administrator, the information (the “Servicing Certificate”) necessary to calculate the information set forth below, and any other information the Trust Administrator reasonably requires, in such form as the Trust Administrator shall reasonably request, or in such 

 

form as may be mutually agreed upon between such Servicer and the Trust Administrator, with respect to each  Loan serviced by such Servicer no later than 4:00 PM New York City time on the Data Remittance Date to enable the Trust Administrator to calculate the amounts to be distributed to each Class of Notes and Certificates and otherwise perform its distribution, accounting and reporting requirements hereunder and under the Indenture.  On or prior to the 18th calendar day of each month, the Master Servicer shall provide to the Trust Administrator a report incorporating the information in each Servicing Certificate received by it from the related Servicers (other than PNC).

Based solely on the information provided by the Servicers, upon which information it may conclusively rely without verification, the Trust Administrator pursuant to Section 3.25 of the Indenture shall make available on its website initially located at “www.jpmorgan.com/sfr” to each Securityholder, the Depositor, the Owner Trustee, the Certificate Paying Agent and each Rating Agency, each Servicing Certificate setting forth the following information, together with the other information set forth in the monthly statement prepared by the Trust Administrator pursuant to Section 3.25 of the Indenture, as to the Notes and Certificates, to the extent applicable:

(i)         the aggregate amount of (a) the Interest Remittance Amount, (b) the Principal Remittance Amount, (c) the Additional Balance Advance Interest Distribution Amount and (d) Substitution Amounts;

(ii)         amounts paid in respect of the Additional Balances from the Payment Account;

(iii)        the number and Aggregate Loan Balance of the Loans as of the end of the related Collection Period;

(iv)        the number and aggregate Principal Balances of Loans (a) as to which the Monthly Payment is delinquent for 30-59 days, 60-89 days and 90 or more days, respectively, (b) that are foreclosed, (c) that have become REO, and (d) that have been finally liquidated due to being 180 days or more delinquent, in each case as of the end of the related Collection Period assuming twelve, thirty day months; provided, however, that such information will not be provided on the statements relating to the first Payment Date;

(v)        the weighted average Mortgage Interest Rate for the related Collection Period;

(vi)        whether or not as an Amortization Event is in effect for the related Payment Date;

(vii)       the Excluded Amounts, if any, received for the applicable Collection Period;

	
            (viii)
 	
            the aggregate Servicing Fees for the related Collection Period; and
 

(ix)        the aggregate amount recovered during the related Collection Period consisting of all Net Recoveries on any Loan that was 180 days or more delinquent.

 

 

Prior to the close of business on the Business Day next succeeding each Servicer Remittance Date, each Servicer shall furnish a written statement to the Certificate Paying Agent and the Trust Administrator setting forth the aggregate amounts required to be withdrawn from the related Custodial Account and deposited into the Master Servicer Account or Payment Account, as applicable, prior to the related Servicer Remittance Date pursuant to Section 3.03.  The determination by a Servicer of such amounts shall, in the absence of obvious error, be presumptively deemed to be correct for all purposes hereunder and the Owner Trustee and Trust Administrator shall be protected in relying upon the same without any independent check or verification.  In addition, upon the Issuer’s written request, each Servicer shall promptly furnish information reasonably requested by the Issuer that is reasonably available to such Servicer to
enable the Issuer to perform its federal and state income tax reporting obligations.

ARTICLE V

 

PAYMENT ACCOUNT

Section 5.01     Payment Account.  The Trust Administrator shall establish and maintain a Payment Account titled “JPMorgan Chase Bank N.A., as Trust Administrator, for the benefit of the Securityholders and the Certificate Paying Agent pursuant to the Indenture, dated as of the Closing Date, between Home Equity Mortgage Trust 2005-HF1, JPMorgan Chase Bank, N.A. and U.S. Bank National Association.”  The Payment Account shall be an Eligible Account.  On each Payment Date, amounts on deposit in the Payment Account will be distributed by the Trust Administrator in accordance with Section 3.05 of the Indenture.

ARTICLE VI

 

THE SERVICERS, THE SPECIAL SERVICER AND THE MASTER SERVICER

Section 6.01     Liability of the Servicers, the Special Servicer and the Master Servicer.  The Master Servicer, the Special Servicer and each Servicer shall be liable in accordance herewith only to the extent of the obligations specifically imposed upon and undertaken by the Master Servicer, the Special Servicer or such Servicer herein.  

Section 6.02     Merger or Consolidation of, or Assumption of the Obligations of, the Master Servicer, the Special Servicer or a Servicer.  Any corporation or other entity into which the Master Servicer, the Special Servicer or a Servicer may be merged or converted or with which it may be consolidated, or any corporation or other entity resulting from any merger, conversion or consolidation to which the Master Servicer, the Special Servicer or a Servicer shall be a party, or any corporation or other entity succeeding to the business of the Master Servicer, the Special Servicer or a Servicer, shall be the successor of the Master Servicer, the Special Servicer or such Servicer, 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.

Each Servicer, the Special Servicer or the Master Servicer may assign its rights and delegate its duties and obligations under this Servicing Agreement (including in connection with the sale or transfer of substantially all of its assets); provided that the Person accepting such assignment or delegation shall be a Person which is qualified to service mortgage loans similar to 

 

those in the Trust Estate, is reasonably satisfactory to the Indenture Trustee, the Trust Administrator and the Issuer, is willing to service the related Loans and executes and delivers to the Indenture Trustee, the Trust Administrator and the Issuer an agreement, in form and substance reasonably satisfactory to the Indenture Trustee, the Trust Administrator and the Issuer, which contains an assumption by such Person of the due and punctual performance and observance of each covenant and condition to be performed or observed by the related Servicer, the Special Servicer or the Master Servicer, as applicable, under this Servicing Agreement; provided further that each Rating Agency’s rating of the Securities in effect immediately prior to such assignment and delegation will not be qualified, reduced, or withdrawn as a result of such assignment and
delegation (as evidenced by a letter to such effect from each Rating Agency); and provided further that the Owner Trustee receives an Opinion of Counsel to the effect that such assignment or delegation shall not cause the Issuer to be treated as a corporation for federal or state income tax purposes.  Any Person accepting such assignment or delegation as a Servicer or as Special Servicer shall be considered “reasonably satisfactory” to the Trust Administrator and the Issuer if the Trust Administrator or the Issuer, as applicable, does not object to such assignment within 30 days after notification from the related Servicer or the Special Servicer of such proposed assignment to such Person.  Any Person accepting such assignment or delegation as Master Servicer shall be considered “reasonably satisfactory” to the Indenture Trustee if the Indenture Trustee does not object to such assignment within 30 days after notification from the Master Servicer of such proposed
assignment to such Person.

Section 6.03     Limitation on Liability of the Master Servicer, the Servicers, the Special Servicer and Others.  None of the Master Servicer, the Special Servicer nor a Servicer nor any of the directors or officers or employees or agents of the Master Servicer, the Special Servicer or a Servicer shall be under any liability to the Issuer, the Owner Trustee, the Indenture Trustee, the Master Servicer, the Trust Administrator or the Securityholders for any action taken or for refraining from the taking of any action in good faith pursuant to this Servicing Agreement, provided, however, that this provision shall not protect the Master Servicer, the Special Servicer or a Servicer or any such Person against any liability which would otherwise be imposed by reason of its willful misfeasance, bad faith or gross negligence
in the performance of its duties hereunder or by reason of its reckless disregard of its obligations and duties hereunder.  The Master Servicer, the Special Servicer and each Servicer and any director or officer or employee or agent of the Master Servicer, the Special Servicer and each 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 Master Servicer, the Special Servicer and each Servicer and any director or officer or employee or agent of the Master Servicer, the Special Servicer or a Servicer shall be indemnified by the Issuer and held harmless against any loss, liability or expense incurred in connection with any legal action relating to this Servicing Agreement or the Securities, other than any loss, liability or expense incurred by reason of its willful misfeasance, bad
faith or gross negligence in the performance of its duties hereunder or by reason of its reckless disregard of its obligations and duties hereunder.  None of the Master Servicer, the Special Servicer nor any Servicer shall be under any obligation to appear in, prosecute or defend any legal action which is not incidental to its duties to service or master service the related Loans in accordance with this Servicing Agreement, and which in its opinion may involve it in any expense or liability; provided, however, that the Master Servicer, the Special Servicer and each Servicer may in its sole discretion undertake any such action which it may deem necessary or desirable in respect of this Servicing Agreement, and the rights and duties of the parties hereto 

 

and the interests of the Securityholders.  In such event, the reasonable legal expenses and costs of such action and any liability resulting therefrom shall be expenses, costs and liabilities of the Issuer, and the Master Servicer, the Special Servicer or the related Servicer shall be entitled to be reimbursed therefor.  The Master Servicer’s, the Special Servicer’s and each Servicer’s right to indemnity or reimbursement pursuant to this Section 6.03 shall survive any resignation or termination of the Master Servicer, the Special Servicer or such Servicer pursuant to Section 6.04 or 7.01 with respect to any losses, expenses, costs or liabilities arising prior to such resignation or termination (or arising from events that occurred prior to such resignation or termination).

Section 6.04     Master Servicer, Special Servicer and Servicers Not to Resign.  Subject to the provisions of Section 6.02, none of the Master Servicer, the Special Servicer nor any Servicer shall resign from the obligations and duties hereby imposed on it except (i) upon determination that the performance of its obligations or duties hereunder are no longer permissible under applicable law or are in material conflict by reason of applicable law with any other activities carried on by it or its subsidiaries or Affiliates, the other activities of the Master Servicer, the Special Servicer or such Servicer so causing such a conflict being of a type and nature carried on by the Master Servicer, the Special Servicer or such Servicer or its subsidiaries or Affiliates at the date of this Servicing Agreement or (ii)
upon satisfaction of the following conditions:  (a) the Master Servicer, the Special Servicer or such Servicer has proposed a successor master servicer, special servicer or servicer to the Issuer, the Trust Administrator and the Indenture Trustee in writing and such proposed successor master servicer, special servicer or servicer is reasonably acceptable to the Issuer, the Trust Administrator and the Indenture Trustee; and (b) each Rating Agency shall have delivered a letter to the Issuer, the Trust Administrator and the Indenture Trustee prior to the appointment of the successor master servicer, successor special servicer or successor servicer stating that the proposed appointment of such successor master servicer as Master Servicer, such successor special servicer as Special Servicer or such successor servicer as Servicer hereunder will not result in the reduction or withdrawal of the then current rating of the Securities; provided, however, that no such resignation by the Master
Servicer, the Special Servicer or a Servicer shall become effective until such successor master servicer, special servicer or servicer shall have assumed such Master Servicer’s, Servicer’s or Special Servicer’s responsibilities and obligations hereunder or the Indenture Trustee or Master Servicer, as applicable, shall have designated a successor master servicer, special servicer or servicer in accordance with Section 7.02.  Any such resignation shall not relieve the Master Servicer, the Special Servicer or a Servicer of responsibility for any of the obligations specified in Sections 7.01 and 7.02 as obligations that survive the resignation or termination of the Master Servicer, Special Servicer or a Servicer.  Any such determination permitting the resignation of the Master Servicer, Special Servicer or a Servicer as contemplated by clause (i) above shall be evidenced by an Opinion of Counsel to such effect delivered to the Indenture Trustee.

Notwithstanding the foregoing, at the Seller’s request, so long as it is the owner of the servicing rights, the Master Servicer, PNC, Wilshire, Ocwen, SPS or the Special Servicer shall resign upon the Seller’s selection and appointment of a successor master servicer or servicer; provided that the conditions described in clause (ii) of the above paragraph are satisfied.

Any resignation or removal of the Master Servicer hereunder shall also constitute a resignation or removal of the Trust Administrator.

 

 

Section 6.05     Delegation of Duties.  In the ordinary course of business, the Master Servicer and each Servicer at any time may delegate any of its duties hereunder to any Person, including any of its Affiliates, who agrees to conduct such duties in accordance with standards comparable to those with which the Master Servicer or such Servicer complies pursuant to Section 3.01.  Such delegation shall not relieve the Master Servicer or the related Servicer of its liabilities and responsibilities with respect to such duties and shall not constitute a resignation within the meaning of Section 6.04.

ARTICLE VII

 

DEFAULT

Section 7.01     Servicing Default.  If any one of the following events (“Servicing Default”) shall occur and be continuing:

(i)         Any failure by the Master Servicer or a Servicer to deposit in the related Custodial Account or Payment Account any deposit required to be made under the terms of this Servicing Agreement which continues unremedied for a period of three Business Days after the date upon which written notice of such failure shall have been given to the Master Servicer or such Servicer by the Issuer, the Master Servicer, the Trust Administrator or the Indenture Trustee; or

(ii)         Failure on the part of the Master Servicer or a Servicer duly to observe or perform in any material respect any other covenants or agreements of the Master Servicer or such Servicer set forth in this Servicing Agreement, which failure, in each case, materially and adversely affects the interests of Securityholders and which continues unremedied for a period of 45 days after the date on which written notice of such failure, requiring the same to be remedied, and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Master Servicer or such Servicer by the Issuer, the Master Servicer, the Trust Administrator or the Indenture Trustee; or

(iii)        The entry against the Master Servicer or a Servicer of a decree or order by a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a trustee, conservator, receiver or liquidator in any insolvency, conservatorship, receivership, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding up or liquidation of its affairs, and the continuance of any such decree or order undischarged or unstayed and in effect for a period of 60 consecutive days; or

(iv)        The Master Servicer or a Servicer shall voluntarily go into liquidation, consent to the appointment of a conservator, receiver, liquidator or similar person in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Master Servicer or such Servicer or of or relating to all or substantially all of its property, or a decree or order of a court, agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver, liquidator or similar person 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 or such Servicer and such decree or order shall have remained in force undischarged, unbonded or unstayed for a period of 60 days; or the Master Servicer or such Servicer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations; or

(v)        any failure of the Master Servicer or a Servicer to make any Advance, to the extent required under Section 3.19 in the manner and at the time required to be made from its own funds pursuant to this Agreement and after receipt of notice from the Trust Administrator, which failure continues unremedied after the close of business on the Business Day immediately preceding the related Payment Date; or

(vi)        notwithstanding anything to the contrary in Section 7.01(ii) and with respect to SPS, (i) (A) any failure by SPS to comply with Section 9.01(a), which failure shall continue unremedied for a period of 30 days after the date on which written notice of such failure shall have been given to SPS by the Master Servicer and (B) the Master Servicer shall have delivered written notice to the Trust Administrator and Depositor that such failure has not been remedied after such 30 day period, or (ii) the Master Servicer has concluded in a written report to the Trust Administrator, based solely on the reports required to be delivered to the Master Servicer by SPS pursuant to Section 9.01(a), either (1) that SPS is not servicing the SPS Serviced Loans in accordance with Accepted Servicing Practices or (2) that SPS has failed the
Loss and Delinquency Test; or

(vii)       (i)         with respect to SPS and after the Closing Date, (1) any reduction or withdrawal of the ratings of SPS as a servicer of subprime mortgage loans by one or more of the Rating Agencies that maintains a servicer rating system and a Rating on the Notes to “below average” or below or (2) any reduction or withdrawal of the ratings of any Class of Notes attributable solely to SPS or the servicing of the SPS Serviced Loans by SPS or (3) any placement by a Rating Agency of any Class of Notes on credit watch with negative implications attributable solely to SPS or the servicing of the SPS Serviced Loans by SPS; 

then, and in every such case, so long as a Servicing Default shall not have been remedied by the Master Servicer or the related Servicer, either the Issuer, the Trust Administrator or, with respect to the Master Servicer, the Indenture Trustee, by notice then given in writing to the Master Servicer or the related Servicer shall terminate all of the rights and obligations of the Master Servicer or the related Servicer as master servicer or servicer under this Servicing Agreement other than its right to receive servicing compensation and expenses for servicing the Loans hereunder and the rights to reimburse itself for Advances and Servicing Advances made during any period prior to the date of such termination and the Issuer, the Trust Administrator or the Indenture Trustee may exercise any and all other remedies available at law or equity.  Any such notice to the Master Servicer or a Servicer shall also be
given to each Rating Agency and the Issuer.  On or after the receipt by the Master Servicer or a Servicer of such written notice, all authority and power of the Master Servicer or such Servicer under this Servicing Agreement, whether with respect to the Securities or the Loans or otherwise, shall, subject to Section 7.02 of this Servicing Agreement, pass to and be vested in the Indenture Trustee (in the case of the 

 

termination of the Master Servicer), in the Master Servicer (in the case of the termination of a Servicer (other than PNC)) or in the Trust Administrator (in the case of the termination of PNC), pursuant to and under this Section 7.01; and, without limitation, the Indenture Trustee, the Master Servicer or the Trust Administrator, as applicable, is hereby authorized and empowered to execute and deliver, on behalf of the Master Servicer or such Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement of each related Loan and related documents, or otherwise.  The Master Servicer and each Servicer agrees to cooperate with the Indenture Trustee, the Master Servicer or the Trust Administrator, as
applicable, in effecting the termination of the responsibilities and rights of the Master Servicer or such Servicer hereunder, including, without limitation, the transfer to the Indenture Trustee, the Master Servicer or the Trust Administrator for the administration by it of all cash amounts relating to the related Loans that shall at the time be held by such Servicer and to be deposited by it in the related Custodial Account, or that have been deposited by such Servicer in the related Custodial Account or thereafter received by such Servicer with respect to the related Loans.  All reasonable costs and expenses (including, but not limited to, attorneys’ fees) incurred in connection with amending this Servicing Agreement to reflect such succession as the Master Servicer or a Servicer pursuant to this Section 7.01 shall be paid by the predecessor Master Servicer or Servicer (or if the predecessor Servicer is the Master Servicer, the initial Servicer) upon presentation of
reasonable documentation of such costs and expenses.

In the case of a Servicing Default pursuant to Section 7.01(v) resulting from (i) the failure of the Master Servicer to make a required Advance, the Indenture Trustee and (ii) the failure of a Servicer to make a required Advance, the Master Servicer shall prior to the next Payment Date, immediately make such Advance, unless such Advance would, in its judgment, be a Nonrecoverable Advance, and immediately terminate all of the rights and obligations of the Master Servicer or such Servicer under this Agreement and in and to the related Loans and the proceeds thereof, other than its rights as a Securityholder hereunder and the rights to reimburse itself for Advances and Servicing Advances previously made pursuant to this Agreement and the right to accrued and unpaid Servicing Fees.

If a Servicing Default set forth in clause (vi)(ii) above shall occur, the Trust Administrator shall furnish the Securityholders the Master Servicer’s written report as to SPS’s servicing performance in the next monthly statement to Securityholders distributed pursuant to Section 3.25 of the Indenture.  If a Servicing Default set forth in clause (vi) or (vii) shall occur, the Issuer, the Trust Administrator or the Depositor (after consulting with the Trust Administrator), may, by written notice to SPS (with a copy to each Rating Agency), terminate all of the rights and obligations of SPS as Servicer under this Agreement.  With respect to a Servicing Default set forth in clauses (vi) or (vii) above and upon any termination of SPS as Servicer pursuant to this paragraph, the Seller, in accordance with Section 6.04, shall appoint a successor servicer, irrespective of the
Seller’s ownership of the related servicing rights.  Any such servicing transfer as a result of a Servicing Default set forth in clause (vi) or (vii) shall be accomplished in 60 days from the date the Trust Administrator delivers the Master Servicer’s report to Securityholders or from the date SPS received such notice of termination.

 

 

If a Servicing Default described in clause (vi) or (vii)(3) occurs, the Seller shall reimburse SPS for all unreimbursed Advances and Servicing Advances made by SPS on the date the servicing is transferred to the successor servicer hereunder and the Seller shall be entitled to reimbursement by the successor servicer of any such amounts as and to the extent such amounts are received by the successor servicer under the terms of this Agreement.

If a Servicing Default described in clause (vii) occurs, the Master Servicer shall at the direction of the Seller, by notice in writing to SPS, terminate all of the rights and obligations of SPS under this Agreement (other than rights to reimbursement for Advances and Servicing Advances previously made, as provided in Section 3.03) and shall appoint as successor Servicer the entity selected by the Seller in accordance with Section 7.02; provided that the Seller shall first furnish to the Master Servicer a letter from each Rating Agency that the appointment of such successor will not result in a downgrading of the rating of any of the Notes.

Notwithstanding any termination of the activities of the Master Servicer or a Servicer hereunder, the Master Servicer or such Servicer shall be entitled to receive, out of any late collection of a payment on a Loan which was due prior to the notice terminating the Master Servicer or such Servicer’s rights and obligations hereunder and received after such notice, that portion to which the Master Servicer or the related Servicer would have been entitled pursuant to Sections 3.03 and 3.09 as well as its Master Servicing Fee or Servicing Fee in respect thereof, and any other Advances or other amounts payable to the Master Servicer or such Servicer hereunder the entitlement to which arose prior to the termination of its activities hereunder.

Notwithstanding the foregoing, a delay in or failure of performance under Section 7.01(i) or under Section 7.01(ii) after the applicable grace periods specified in such Sections, shall not constitute a Servicing Default if such delay or failure could not be prevented by the exercise of reasonable diligence by the Master Servicer or the related Servicer and such delay or failure was caused by an act of God or the public enemy, acts of declared or undeclared war, public disorder, rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes, earthquakes, floods or similar causes.  The preceding sentence shall not relieve the Master Servicer or a Servicer from using reasonable efforts to perform its respective obligations in a timely manner in accordance with the terms of this Servicing Agreement and the Master Servicer or the related Servicer shall provide the
Indenture Trustee, the Trust Administrator and the Securityholders with notice of such failure or delay by it, together with a description of its efforts to so perform its obligations.  The Master Servicer and each Servicer shall immediately notify the Trust Administrator, the Master Servicer (in the case of a Servicer), the Indenture Trustee and the Owner Trustee in writing of any Servicing Default.

Section 7.02     Master Servicer or Indenture Trustee to Act; Appointment of Successor.  (a)  On and after the time the Master Servicer or a Servicer receives a notice of termination pursuant to Section 7.01 or sends a notice pursuant to Section 6.04, the Indenture Trustee (in the case of the Master Servicer), the Master Servicer (in the case of a Servicer (other than PNC) and only if such Servicer has not appointed a successor servicer as contemplated by Section 6.04) or the Trust Administrator (in the case of PNC and only if PNC has not appointed a successor servicer as contemplated by Section 6.04) shall be the successor in all respects to the Master Servicer or that Servicer in its capacity as master servicer or a servicer under this Servicing Agreement and the transactions set forth or provided for
herein and shall be subject to all the 

 

responsibilities, duties and liabilities relating thereto placed on the Master Servicer or such Servicer by the terms and provisions hereof.  Nothing in this Servicing Agreement shall be construed to permit or require the Indenture Trustee, the Master Servicer or the Trust Administrator to (i) be responsible or accountable for any act or omission of the Master Servicer or a Servicer prior to the issuance of a notice of termination hereunder, (ii) require or obligate the Indenture Trustee, the Master Servicer or the Trust Administrator, in its capacity as successor Master Servicer or successor Servicer, to purchase, repurchase or substitute any Loan, (iii) fund any Additional Balances with respect to any Loan, (iv) pay any deductible under an insurance policy pursuant to Section 3.04, (v) fund any losses on any Permitted Investment directed by any other Servicer, (vi) make Advances if it is prohibited
from doing so by applicable law or (vii) be responsible for the representations and warranties of the Master Servicer or a Servicer.  As compensation therefor, the Indenture Trustee shall be entitled to such compensation as the Master Servicer would have been entitled to hereunder and the Master Servicer or Trust Administrator, as applicable, shall be entitled to such compensation as the related Servicer would have been entitled to hereunder, in each case if no such notice of termination had been given.  Notwithstanding the above, (i) if the Indenture Trustee, the Master Servicer or the Trust Administrator is unwilling to act as successor Master Servicer or Servicer, or (ii) if the Indenture Trustee, the Master Servicer or the Trust Administrator is legally unable so to act, the Indenture Trustee, the Master Servicer or the Trust Administrator may (in the situation described in clause (i)) or shall (in the situation described in clause (ii)) appoint or petition a court of competent
jurisdiction to appoint any established housing and home finance institution, bank or other mortgage loan or home equity loan servicer having a net worth of not less than $10,000,000 as the successor to the Master Servicer or the related Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Master Servicer or such Servicer hereunder; provided that the appointment of any such successor Master Servicer or Servicer will not result in the qualification, reduction or withdrawal of the ratings assigned to the Securities by the Rating Agencies.  Pending appointment of a successor to the Master Servicer or a Servicer hereunder, unless the Indenture Trustee, the Master Servicer or the Trust Administrator is prohibited by law from so acting, the Indenture Trustee, the Master Servicer or the Trust Administrator shall act in such capacity as hereinabove provided.  In connection with such
appointment and assumption, the successor shall be entitled to receive compensation out of payments on related Loans in an amount equal to the compensation which the Master Servicer or the related Servicer would otherwise have received pursuant to Section 3.09 (or such lesser compensation as the Indenture Trustee, the Master Servicer or the Trust Administrator and such successor shall agree). The appointment of a successor Master Servicer or Servicer shall not affect any liability of the predecessor Master Servicer or Servicer which may have arisen under this Servicing Agreement prior to its termination as the Master Servicer or as a Servicer (including, without limitation, the obligation to pay any deductible under an insurance policy pursuant to Section 3.04), nor shall any successor Master Servicer or Servicer be liable for any acts or omissions of the predecessor Master Servicer or Servicer or for any breach by the Master Servicer or such Servicer of any of its
representations or warranties contained herein or in any related document or agreement.  The Indenture Trustee, the Master Servicer or the Trust Administrato and such successor shall take such action, consistent with this Servicing Agreement, as shall be necessary to effectuate any such succession.

(b)        Any successor, including the Indenture Trustee, the Master Servicer and the Trust Administrator, to the Master Servicer as master servicer or the related Servicer as servicer shall 

 

during the term of its service as master servicer or servicer (i) continue to master service or service and administer the related Loans for the benefit of the Securityholders and (ii) maintain in force a policy or policies of insurance covering errors and omissions in the performance of its obligations as Master Servicer or Servicer hereunder and a fidelity bond in respect of its officers, employees and agents to the same extent as the Master Servicer or such Servicer is so required pursuant to Section 3.13.

(c)        Any successor Master Servicer or Servicer, including the Indenture Trustee, the Master Servicer and the Trust Administrator, shall not be deemed in default or to have breached its duties hereunder if the predecessor Master Servicer or Servicer shall fail to deliver any required deposit to the related Custodial Account or otherwise cooperate with any required servicing transfer or succession hereunder.

(d)        In connection with the termination or resignation of a Servicer hereunder, either (i) the successor Servicer (including the Master Servicer as a successor Servicer), shall represent and warrant that it is a member of MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Loans that are registered with MERS, in which case the predecessor Servicer shall cooperate with the successor Servicer (including the Master Servicer, if applicable) in causing MERS to revise its records to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations, or (ii) the predecessor Servicer shall cooperate with the successor Servicer in causing MERS to execute and deliver an assignment of Mortgage in recordable
form to transfer the Mortgage from MERS to the Indenture Trustee and to execute and deliver such other notices, documents and other instruments as may be necessary or desirable to effect a transfer of such Loan or servicing of such Loan on the MERS® System to the successor Servicer.  The predecessor Servicer shall file or cause to be filed any such assignment in the appropriate recording office.  In connection with the termination or resignation (other than a resignation pursuant to the second paragraph of Section 6.04) of a Servicer, the predecessor Servicer shall bear any and all fees of MERS, costs of preparing any assignments of Mortgage, and fees and costs of filing any assignments of Mortgage that may be required under this subsection (d).  The successor Servicer (including the Master Servicer, if applicable) shall cause such assignment to be delivered to the Indenture Trustee or the Custodian promptly upon receipt of the original with evidence of recording thereon or a
copy certified by the public recording office in which such assignment was recorded.

Section 7.03     Notification to Securityholders.  Upon any termination of or appointment of a successor to the Master Servicer or a Servicer pursuant to this Article VII or Section 6.04, the Trust Administrator shall give prompt written notice thereof to the Securityholders, the Issuer and each Rating Agency or, as applicable, the Master Servicer shall give prompt written notice thereof to the Trust Administrator.

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

Section 8.01     Amendment.  This Servicing Agreement may be amended from time to time by the parties hereto, provided that any amendment be accompanied by a letter from the 

 

Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to the Securities and a tax opinion to the effect that neither such amendment nor any action permitted by such amendment and not otherwise permitted by this Agreement will cause either REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or give rise to the imposition of a tax on “prohibited transactions” of a REMIC on either REMIC I, REMIC II or REMIC III.  Promptly after the execution by the Servicers, the Issuer, the Master Servicer, the Special Servicer, the Trust Administrator and the Indenture Trustee of any amendment of this Servicing Agreement pursuant to this Section 8.01, the Trust Administrator shall provide the Custodian with written copies thereof.  Any failure of the Trust Administrator to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amendment.

Section 8.02     GOVERNING LAW.  THIS SERVICING AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 8.03     Notices.  All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by certified mail, return receipt requested, to (a) in the case of Wilshire, Wilshire Credit Corporation, 14523 SW Millikan Way, Suite 200, Beaverton, Oregon 97005 Attention: Jay Memmott, with a copy to Stoel Rives LLP, 900 SW Fifth, Portland, Oregon 97204 Attention: Gary Barnum, (b) in the case of Ocwen, Ocwen Loan Servicing, LLC, 1675 Palm Beach Lakes Blvd., West Palm Beach, FL 33401, Attention: Secretary, (c) in the case of PNC, PNC Bank, N.A., 2730 Liberty Avenue, Pittsburgh, Pennsylvania 15222, Attention: PNCCS Manager, with a copy to One PNC Plaza – 21st Floor, 249 Fifth Avenue, Pittsburgh, Pennsylvania 15222, Attention:  Chief
Counsel, Consumer Bank Group, (d) in the case of SPS, Select Portfolio Servicing, Inc., 3815 South West Temple, Salt Lake City, Utah, Attention: General Counsel, (e) in the case of Moody’s, Home Loan Monitoring Group, 99 Church Street, 4th Floor, New York, New York 10007, (f) in the case of Standard & Poor’s, 55 Water Street – 41st Floor, New York, New York 10041, Attention:  Residential Mortgage Surveillance Group, (g) in the case of the Owner Trustee, Wilmington Trust Company, as set forth in the Trust Agreement, (h) in the case of the Trust Administrator or the Master Servicer, JPMorgan Chase Bank, N.A., 4 New York Plaza, 6th Floor, New York, New York 10004-2477, Attention: Worldwide Securities Services/Structured Finance Services: Home Equity Mortgage Trust-2005-HF1, (i) in the case of the Indenture Trustee, U.S. Bank National Association, Corporate Trust Services, 60 Livingston Avenue, Mailcode: EP-MN-WS3D, St. Paul, Minnesota 55107-2232, Attention:
Structured Finance – CSFB HEMT 2005-HF1 and (j) in the case of the Underwriter, at Credit Suisse First Boston, 11 Madison Avenue, 4th Floor, New York, New York 10010, Attention: Home Equity Mortgage Trust 2005-HF1; or, as to each party, at such other address as shall be designated by such party in a written notice to each other party.  Any notice required or permitted to be mailed to a Securityholder shall be given by first class mail, postage prepaid, at the address of such Securityholder as shown in the Register.  Any notice so mailed within the time prescribed in this Servicing Agreement shall be conclusively presumed to have been duly given, whether or not the Securityholder receives such notice.  Any notice or other document required to be delivered or mailed by the Trust Administrator to any Rating Agency shall be given on a reasonable efforts 

 

basis and only as a matter of courtesy and accommodation and the Trust Administrator shall have no liability for failure to delivery such notice or document to any Rating Agency.

Section 8.04     Severability of Provisions.  If any one or more of the covenants, agreements, provisions or terms of this Servicing 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 Servicing Agreement and shall in no way affect the validity or enforceability of the other provisions of this Servicing Agreement or of the Securities or the rights of the Securityholders thereof.

Section 8.05     Third-Party Beneficiaries.  This Servicing Agreement will inure to the benefit of and be binding upon the parties hereto, the Securityholders, the Owner Trustee and their respective successors and permitted assigns.  Except as otherwise provided in this Servicing Agreement, no other Person will have any right or obligation hereunder.

Section 8.06     Counterparts.  This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

Section 8.07     Effect of Headings and Table of Contents.  The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

Section 8.08    Termination.  The respective obligations and responsibilities of the Servicers, the Special Servicer, the Master Servicer, the Trust Administrator, the Issuer and the Indenture Trustee created hereby shall terminate upon the last action required to be taken by the Issuer pursuant to the Trust Agreement and by the Trust Administrator pursuant to the Indenture following the later of the date on or before which the Indenture or Trust Agreement is terminated.

Section 8.09    Certain Matters Affecting the Indenture Trustee and the Trust Administrator.  For all purposes of this Servicing Agreement, in the performance of any of its duties or in the exercise of any of its powers hereunder, the Indenture Trustee and the Trust Administrator shall be subject to and entitled to the benefits of Article VI of the Indenture.

Section 8.10     Owner Trustee Not Liable for Loan Files.  The recitals contained herein shall not be taken as the statements of the Owner Trustee, and the Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as to the validity or sufficiency of this Servicing Agreement, of any Basic Document or of the Certificates (other than the signatures of the Owner Trustee on the Certificates) or the Notes, or of any Loan Files.  The Owner Trustee shall at no time have any responsibility or liability with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to Certificateholders under the Trust Agreement or the Noteholders under the Indenture, including, the compliance by the Depositor or the Seller with any
warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation, or any action of the Certificate Paying Agent, the Certificate Registrar or the Trust Administrator taken in the name of the Owner Trustee.

 

 

It is expressly understood and agreed by the parties hereto that with respect to the execution of this Servicing Agreement by Wilmington Trust Company (the “Trust Company”) for the Issuer (a) this Servicing Agreement is executed and delivered by the Trust Company, not individually or personally, but solely as Owner Trustee, in the exercise of the powers and authority conferred and vested in it, pursuant to the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by the Trust Company but is made and intended for the purpose for binding only the Issuer, (c) nothing herein contained shall be construed as creating any liability on the Trust Company, individually or personally, to perform any covenant either expressed or implied contained
herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto, and (d) under no circumstances shall the Trust Company be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Servicing Agreement or any other related documents.

	
            Section 8.11
 	
            Entire Agreement.
 

(a)        This Servicing Agreement shall constitute the entire agreement between the parties with respect to the matters contained herein and shall supercede any prior written or oral agreements relating thereto.

 

ARTICLE IX

 

SPS AND THE MASTER SERVICER

	
            Section 9.01
 	
            Reports and Notices.
 

 

(a)        SPS shall provide the Master Servicer the following notices and reports in a timely manner and such notices and reports shall be prepared using the same methodology and calculations used in its standard servicing reports to the Master Servicer.  SPS shall send all such notices and reports to the Master Servicer in a format used for its standard servicing reports.  SPS agrees to provide the Master Servicer with read only access to those portions of its default management and servicing platform that relate to the SPS Mortgage Loans.

(i)         All SPS Serviced Loans – On each Data Remittance Date, commencing in November 2005, SPS shall provide the Master Servicer a report of each SPS Serviced Loan indicating the information contained in Exhibit H for the period relating to the related Payment Date.

(ii)         Liquidated Loans – On each Data Remittance Date SPS shall provide the Master Servicer with a report listing each SPS Serviced Loan that has liquidated or been satisfied in full indicating the information, or information substantially similar to the information, contained in Exhibit H together with all supporting documentation for the prior calendar month.

(iii)         Loss and Delinquency Test – SPS shall provide the Master Servicer with all information required for calculating the Loss and Delinquency Test, including but not limited to:

(A)              Loan level and aggregate Principal Balance of all SPS Serviced Loans 61 to 90 days delinquent including any loan(s) delinquent on a bankruptcy plan;

(B)              Loan level and aggregate Principal Balance of all SPS Serviced Loans 91 days and greater (that are not in foreclosure) including any loan(s) delinquent on a bankruptcy plan;

(C)              Loan level and aggregate Principal Balance of all SPS Serviced Loans that are active foreclosures;

(D)              Loan level and aggregate Principal Balance of all SPS Serviced Loans that are active REOs; and

(E)              Due dates for all SPS Serviced Loans reported under the categories listed above in (A) through (D).

(b)        SPS shall make its servicing personnel available during normal business hours to respond, either orally or in writing by facsimile transmission, express mail, or electronic mail, to 

 

reasonable inquiries transmitted by the Master Servicer with respect to any SPS Serviced Loan, provided that SPS shall only be required to provide information that is readily accessible and available to its servicing personnel.

	
            Section 9.02
 	
            Master Servicer’s Oversight With Respect to the SPS Serviced Loans.
 

(a)        The Master Servicer shall be permitted to provide SPS with advice, reports and recommendations regarding SPS’s collection efforts and the management of specific SPS Serviced Loans, which advice may be made in writing, in the form of electronic mail or verbally.  Such advice shall be based on an evaluation of the information provided pursuant to Section 9.01(a).  The advice may include comparable analysis of the performance of the SPS Serviced Loans with similar mortgage loans serviced by other mortgage loan servicers.  Such advice may also take the form of benchmark comparisons that identify and interpret SPS’s strengths and weaknesses relative to similar, unidentified servicers in the industry.

(b)        Each party to the Agreement acknowledges that the Master Servicer’s advice is made in the form of recommendations, and that the Master Servicer does not have the right to direct SPS in performing its duties under this Agreement.  SPS may, after review and analysis of any recommendation of the Master Servicer accept or reject such advice, in SPS’s sole discretion, subject to the duties and obligations of SPS set forth in this Agreement.

	
            Section 9.03
 	
            Termination.
 

The rights  of the Master Servicer under Sections 9.01 and 9.02 of this Agreement shall terminate upon the earlier of (i) the appointment of a successor Servicer to SPS hereunder for all the SPS Serviced Loans or (ii) the receipt by SPS of a rating of “above average” (or its equivalent) or better as a servicer of subprime mortgage loans by each Rating Agency that maintains a servicer rating system and a rating on the Notes.

	
            Section 9.04
 	
            Liability and Indemnification.
 

Neither the Master Servicer, nor any of its respective directors, officers, employees, or agents shall be under any liability for any action taken or for refraining from the taking of any action in good faith pursuant to Sections 9.01 and 9.02 of this Agreement or for errors in judgment; provided, however, that this provision shall not protect the Master Servicer or any such other 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 disregard of obligations and duties hereunder.  The Master Servicer and any director, officer, employee, or agent thereof shall be entitled to rely in good faith on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising hereunder. Notwithstanding anything herein to the contrary, the Master Servicer shall have no obligation to make any recommendations, take any action, make any calculation or otherwise do anything with the notices, reports and any other information it receives or is permitted to receive under this Article IX. 

	
            Section 9.05
 	
            Confidentiality.
 

The Master Servicer agrees that all material, nonpublic information supplied to it by or on behalf of SPS relating to the SPS Serviced Loans or details of SPS’s operations or SPS’s proprietary systems shall be treated confidentially except as otherwise provided by the terms of this Agreement or as required by law; it being understood that the provision of any such information by the Master Servicer to any party shall not cause such information to be 

 

considered public for purposes of this Section 9.05.  Notwithstanding the foregoing, the Master Servicer’s obligation of confidentiality under this Section 9.05 shall not related to information which (a) at the time of disclosure to the Master Servicer was in the public domain, (b) after such disclosure, becomes generally available to the public other than through any act or omission of the Master Servicer, (c) was lawfully in the possession of the Master Servicer prior to such disclosure, (d) is disclosed to the Master Servicer from a third party that did not acquire such information under any obligation of confidence or (e) is required to be disclosed by any court of competent jurisdiction.  The Master Servicer shall indemnify SPS against any loss, liability, claims, charges, damages, fines, penalties, judgments, actions, suits, costs and such other expenses incurred by SPS as a direct result of a
breach by the Master Servicer of its obligations under this Section 13.05.

 

 

IN WITNESS WHEREOF, the Servicers, the Special Servicer, the Master Servicer, the Trust Administrator, the Indenture Trustee and the Issuer have caused this Servicing Agreement to be duly executed by their respective officers or representatives all as of the day and year first above written.

 

	
            WILSHIRE CREDIT CORPORATION, as a Servicer
 
	
             
 	
             
 
	
            By:
 	
            /s/ Ken Frye
 
	
            Name:
 	
            Ken Frye
 
	
            Title:
 	
            Senior Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
            OCWEN LOAN SERVICING, LLC, as a Servicer
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Richard Delgado
 
	
            Name:
 	
            Richard Delgado
 
	
            Title:
 	
            Authorized Representative
 
	
             
 	
             
 
	
             
 	
             
 
	
            PNC BANK, N.A., as a Servicer
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ James DeFoggia
 
	
            Name:
 	
            James DeFoggia
 
	
            Title:
 	
            Senior Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
            SELECT PORTFOLIO SERVICING, INC., as a Servicer and as Special Servicer
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Timothy J. O’Brien
 
	
            Name:
 	
            Timothy J. O’Brien
 
	
            Title:
 	
            Executive Vice President of Operations
 
	
             
 	
             
 
	
             
 	
             
 
	
            JPMORGAN CHASE BANK, N.A., as Master Servicer and as Trust Administrator
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Annette Marsula
 

	
            Name:
 	
            Annette Marsula
 
	
            Title:
 	
            Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
            HOME EQUITY MORTGAGE TRUST 2005-HF1

 

By:        WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Anita E. Dallago
 
	
            Name:
 	
            Anita E. Dallago
 
	
            Title:
 	
            Senior Financial Services Officer
 
	
             
 	
             
 
	
             
 	
             
 
	
            U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity but solely as Indenture Trustee
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Becky Warren
 
	
            Name:
 	
            Becky Warren
 
	
            Title:
 	
            Assistant Vice President
 

 

	
            CLAYTON FIXED INCOME SERVICES INC.

hereby acknowledges Section 3.17 and Section

3.18 of this Agreement
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Tim Kulick
 
	
            Name:
 	
            Tim Kulick
 
	
            Title:
 	
  Vice President
 

 

 

 

 

EXHIBIT A

 

LOAN SCHEDULE

 

[TO BE PROVIDED UPON REQUEST]

 

 

EXHIBIT B

 

LIMITED POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE PREMISES:

In connection with the servicing of the Loans (each a “Loan” and collectively, the “Loans”) under the Servicing Agreement, dated as of November 4, 2005, among Wilshire Credit Corporation (“Wilshire”), Ocwen Loan Servicing, LLC (“Ocwen”), PNC Bank, N.A. (“PNC”), Select Portfolio Servicing, Inc. (“SPS”), JPMorgan Chase Bank, N.A. (the “Master Servicer” and the “Trust Administrator”), Home Equity Mortgage Trust 2005-HF1 (“Issuer”) and U.S. Bank National Association ( “Indenture Trustee”), Indenture Trustee does hereby constitute and appoint [______________] (the “Servicer”) as true and lawful attorneys for Indenture Trustee (but only for the purposes set forth herein) and pursuant to Section 3.01 of the Servicing Agreement hereby authorizes and empowers each such attorney, for
and in the name and stead of Indenture Trustee to endorse, execute or deliver any and all documents or instruments of satisfaction or cancellations or of partial or full release or discharge, and all other comparable instruments, with respect to the related Loans, all in accordance with the terms of the Servicing Agreement, including, without limitation, the recording or filing with the appropriate public officials of such documents or instruments and the endorsement and deposit of any such instrument in connection with the foreclosure of any such Loan or bankruptcy or receivership of the Mortgagor of any such Loan.  Capitalized terms used and not otherwise defined herein shall have the respective meaning ascribed to such term in the Serving Agreement.

Indenture Trustee covenants and agrees that it shall, from time to time after the date hereof, at the request of Servicer, execute instruments confirming all of the foregoing authority of any of the attorneys or substitute attorneys.  The foregoing shall not be deemed to be a breach by reason of any action or omission of any of the attorneys or such substitute attorneys as may be appointed hereunder.

This power of attorney is revocable by the Indenture Trustee.

IN WITNESS WHEREOF, the Indenture Trustee has caused this instrument to be signed by its duly authorized officer on this ____ of ________-, 200_.

	
            U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture Trustee under the Indenture
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 

 

 

 

 

	
            STATE OF 
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF___________
 	
            )
 	
             
 

 

On this __ day of ____________, 2005, before me the undersigned, Notary Public of said State, personally appeared _______________________________ and _____________________ personally known to me to be duly authorized officers of U.S. Bank National Association that executed the within instrument and personally known to me to be the persons who executed the within instrument on behalf of U.S. Bank National Association therein named, and acknowledged to me such U.S. Bank National Association executed the within instrument pursuant to its by-laws.

 

	
            WITNESS my hand and official seal.

             

             

 
 
	
             

Notary Public in and for the
 
	
            State of
 	
             
 

 

After recording, please mail to:  

 

	
             
 	
             
 
	
             
 	
             
 
	
            Attn:.  
 	
             
 

 

 

EXHIBIT C

 

FORM OF REQUEST FOR RELEASE

 

MBMS Standard Collateral Release File Layout

This format is used for RELEASING COLLATERAL RECORDS.

 

	
            Data
 	
            Type
 	
            Length
 	
            Dec
 	
            Definition / Comments
 
	
            Customer Code
 	
            C
 	
            4
 	
            0
 	
            Assigned by custodian
 
	
            Pool Number
 	
            C
 	
            10
 	
            0
 	
            Pool number
 
	
            Loan Number
 	
            C
 	
            13
 	
            0
 	
            Loan number of collateral
 
	
            Estimated Return Date
 	
            C
 	
            8
 	
            0
 	
            Date loan is expected to be returned (optional) YYYYMMDD
 
	
            Ship Destination
 	
            C
 	
            6
 	
            0
 	
            Location Code
 
	
            Release Code
 	
            C
 	
            2
 	
            0
 	
            Release Code Value (Ex. 1 - Payoff, 2- Foreclosure)
 
	
            Document List
 	
            C
 	
            30
 	
            0
 	
            Free-form list of documents to be released with collateral file (optional)
 
	
            Description
 	
            C
 	
            30
 	
            0
 	
            Notations (optional)
 
	
            Requestor
 	
            C
 	
            20
 	
            0
 	
            Name of party requesting release of documents
 
	
            Signator
 	
            C
 	
            4
 	
            0
 	
            Signator ID for electronic signator must be assigned by LaSalle
 
	
            Amend
 	
            C
 	
            1
 	
            0
 	
            Signifies if the release is amended:

0 - Do not amend

1 - Amend Existing Release
 

 

NOTES:

	
            1.)
 	
            File is 128 characters in length.
 	
             

	
            2.)
 	
            Dates should be YYYYMMDD.
 

Customer Code = 1007

Pool Number = CSFB-BULK or the private security deal itself

Loan Number = CSFB Loan #

EST Return is blank

	
            Ship Destination =  
 	
            PDPO
 	
            = PAID IN FULL
 	
             

	
             
	
            SALE   
 	
            = SOLD TO ANOTHER INVESTOR OR CUSTODIAN
 
	
             
	
            FORC
 	
            = FORECLOSURE
 	
             

	
             
	
            NLIQ
 	
            = NON LIQUIDATION
 	
             

	
             
	
            OLIQ
 	
            = OTHER LIQUIDATION – REPURCHASE
 	
             

								

Release Codes =

	1 –
	 PAID IN FULL

	2 -	FORECLOSURE
			

	
             
	
            4-
 	
            OTHER LIQUIDATION
 
	
             
	
            5-
 	
            NON-LIQUIDATION
 	
             

	
            8-
 	
            SALE
 	
             

						

Document List = blank

Description = blank

Requestor = who is requesting file

Signator = who’s electronic signature to use – once we set this up

Amend =  0 = do not amend

1 = Amend    - this is used when you have a file out for foreclosure and you pay it off – never intending to return the file to LaSalle

 

 

EXHIBIT D-1

 

FORM OF MASTER SERVICER CERTIFICATION

 

	
            Re:  
 	
            Credit Suisse First Boston Mortgage Acceptance Corp.
 

Home Equity Mortgage Trust 2005-HF1

Home Equity Loan-Backed Notes, Series 2005-HF1

I, ___________________________, a duly elected and acting officer of JPMorgan Chase Bank, N.A. (the “Master Servicer”), certify pursuant to Section 3.15(c) of the Servicing Agreement to the Depositor, the Trust Administrator and each Person, if any, who “controls” the Depositor or the Trust Administrator 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:

1.          For purposes of this Certificate, “Relevant Information” means the information in the certificate provided pursuant to Section 3.10 of the Servicing Agreement (the “Annual Compliance Certificate”) for the Relevant Year and the information in all servicing reports required pursuant to the Servicing Agreement to be provided by the Master Servicer to the Trust Administrator during the Relevant Year (as such information is amended or corrected in writing and delivered to the Trust Administrator).  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;

2.          Based on my knowledge, the Relevant Information required to be provided to the Trust Administrator under the Servicing Agreement has been provided to the Trust Administrator;

3.          I am responsible for reviewing the activities performed by the Master Servicer under the Servicing Agreement during the Relevant Year.  Based upon the review required under the Servicing Agreement and except as disclosed in the Annual Compliance Certificate or the accountants’ statement provided pursuant to Section 3.11 of the Servicing Agreement, to the best of my knowledge, the Master Servicer has fulfilled its obligations under the Servicing Agreement throughout the Relevant Year.

4.          The Master Servicer has disclosed to its independent auditor, who issues the independent auditor’s report on the Uniform Single Attestation Program for Mortgage Bankers for the Master Servicer, any significant deficiencies relating to the Master Servicer’s compliance with minimum master servicing standards.

5.          In compiling the information and making the foregoing certifications, the Master Servicer has relied upon information furnished to it by the servicers under the Servicing Agreement.  The Master Servicer shall have no responsibility or liability for any inaccuracy in such reports resulting from information so provided by the servicers.

 

 

Capitalized terms used but not defined herein have the meanings ascribed to them in the Servicing Agreement, dated November 4, 2005 (the “Servicing Agreement”), among Wilshire Credit Corporation, Ocwen Loan Servicing, LLC, PNC Bank, N.A., Select Portfolio Servicing, Inc., JPMorgan Chase Bank, N.A. as master servicer and trust administrator, U.S. Bank National Association and the Home Equity Mortgage Trust 2005-HF1.

[_________________],

as Master Servicer

By: 

Name:

Title:

Date:

 

 

EXHIBIT D-2

 

FORM OF SERVICER CERTIFICATION

 

	
            Re:  
 	
            Credit Suisse First Boston Mortgage Acceptance Corp.
 

Home Equity Mortgage Trust 2005-HF1

Home Equity Loan-Backed Notes, Series 2005-HF1

I, ___________________________, a duly elected and acting officer of [__________________] (the “Servicer”), certify pursuant to Section 3.15(c) of the Servicing Agreement to the Depositor, the Trust Administrator and each Person, if any, who “controls” the Depositor or the Trust Administrator 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:

1.          For purposes of this Certificate, “Relevant Information” means the information in the certificate provided pursuant to Section 3.10 of the Servicing Agreement (the “Annual Compliance Certificate”) for the Relevant Year and the information in all servicing reports required pursuant to the Servicing Agreement to be provided by the Servicer to the Trust Administrator during the Relevant Year (as such information is amended or corrected in writing and delivered to the Trust Administrator).  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;

2.          The Relevant Information required to be provided to the Trust Administrator under the Servicing Agreement has been provided to the Trust Administrator;

3.          I am responsible for reviewing the activities performed by the Servicer under the Servicing Agreement during the Relevant Year.  Based upon the review required under the Servicing Agreement and except as disclosed in the Annual Compliance Certificate or the accountants’ statement provided pursuant to Section 3.11 of the Servicing Agreement, to the best of my knowledge, the Servicer has fulfilled its obligations under the Servicing Agreement throughout the Relevant Year.

Capitalized terms used but not defined herein have the meanings ascribed to them in the Servicing Agreement, dated November 4, 2005 (the “Servicing Agreement”), among Wilshire Credit Corporation, Ocwen Loan Servicing, LLC, PNC Bank, N.A., Select Portfolio Servicing, Inc., JPMorgan Chase Bank, N.A. as master servicer and trust administrator, U.S. Bank National Association and the Home Equity Mortgage Trust 2005-HF1.

[_________________],

as Servicer

By: 

Name:

Title:

Date:

 

 

EXHIBIT E

 

CHARGED OFF LOAN DATA REPORT

 

 

EXHIBIT F

 

FORM OF INDEPENDENT ACCOUNTANT’S REPORT

 

We have examined management’s assertion, included in the accompanying Management’s Assertion Concerning Compliance with JPMorgan Chase Bank, N.A.’s (“JPMorgan”) Minimum Master Servicing Standards, that JPMorgan has complied with the minimum master servicing standards in their role as Master Servicer as of and for the year ended December 31, 20[___].  Such assertions were examined relating to those series of notes included in the attached Exhibit I.  Management is responsible for JPMorgan’s compliance with those minimum master servicing standards.  Our responsibility is to express an opinion on management’s assertion about JPMorgan’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about JPMorgan’s compliance with their minimum master servicing standards and performing such other procedures as we considered necessary in the circumstances.  Series of certificates subject to such procedures were selected using sampling methods, and, accordingly, we make no representations that our examination procedures were performed on a specific series of notes as listed in the attached Exhibit I.  We believe that our examination provides a reasonable basis for our opinion.  Our examination does not provide a legal determination on JPMorgan’s compliance with their minimum master servicing standards.

In our opinion, management’s assertion that JPMorgan complied with the aforementioned minimum master servicing standards as of and for the year ended December 31, 20[___], is fairly stated, in all material respects.

 

Report Date, 20[_____]

 

 

EXHIBIT G

 

FORM OF PNC REPORT TO CREDIT RISK MANAGER

 

	
            Name*
 	
            Text
 
	
            Loan Number
 	
            Number
 
	
            Deal Identifier by Loan
 	
            Text
 
	
            Original FICO Score*
 	
            Number
 
	
            Original Occupancy*
 	
            Text
 
	
            Documentation (full, limited, stated, etc.)*
 	
            Text
 
	
            Purpose (home improvement, debt consolidation, purchase)*
 	
            Text
 
	
            Original Maximum Credit Line*
 	
            Number
 
	
            Original Balance or Initial Draw*
 	
            Number
 
	
            Original Appraisal Value*
 	
            Number
 
	
            Original Maximum LTV*
 	
            Number
 
	
            Original Senior Lien LTV*
 	
            Number
 
	
            Original Senior Lien Balance*
 	
            Number
 
	
            Original Interest Rate*
 	
            Number
 
	
            First Payment Date*
 	
            MM/DD/YY
 
	
            Origination Date*
 	
            MM/DD/YY
 
	
            Originator*
 	
            Text
 
	
            Loan Term*
 	
            Number
 
	
            Product Type (adjustable rate or fixed rate)*
 	
            Text
 
	
            Property Type (single family residence, condo, etc)*
 	
            Text
 
	
            Street Address*
 	
            Text
 
	
            City*
 	
            Text
 

 

 

 

 

	
            Zip Code*
 	
            Text
 
	
            State*
 	
            Text
 
	
            Lien Position*
 	
            Text/Number
 
	
            Date Loan Transferred (if applicable)
 	
            MM/DD/YY
 
	
            Current Senior Lien Balance
 	
            Number
 
	
            Current Senior Lien Holder
 	
            Text
 
	
            Senior Lien in Foreclosure Flag
 	
            Text (Y or N)
 
	
            Estimated or Actual Senior Lien Foreclosure Sale Date
 	
            MM/DD/YY
 
	
            Current FICO
 	
            Number
 
	
            Current Outstanding Balance
 	
            Number
 
	
            Current LTV
 	
            Number
 
	
            Current Interest Rate
 	
            Number
 
	
            Current Monthly Payment Amount
 	
            Number
 
	
            Number of Advances     (number of advances per loan per month)
 	
            Number
 
	
            Monthly Advances ($ amount of each loan’s advances for the month)
 	
            Number
 
	
            Last Interest Payment Date (date of last due date advancing payment)
 	
            MM/DD/YY
 
	
            Last Interest Payment Amount
 	
            Number
 
	
            Frozen Account Flag
 	
            Text (Y or N)
 
	
            Force-Placed Insurance Flag
 	
            Text (Y or N)
 
	
            Force-Placed Flood Insurance Flag
 	
            Text (Y or N)
 
	
            Re-aged Account Flag
 	
            Text (Y or N)
 
	
            Last Principal Payment Amount
 	
            Number
 
	
            Last Principal Payment Date
 	
            MM/DD/YY
 
	
            Paid Off Code (write off, charge off, borrower payoff)
 	
            Text
 

 

 

 

 

	
            Payoff Date
 	
            MM/DD/YY
 
	
            Delinquency Status (30-days, 60-days, etc.)
 	
            Text
 
	
            Current Market Value 
 	
            Number 
 
	
            Date of Market Value
 	
            M/DD/YY
 
	
            As-is Value
 	
            Number
 
	
            Repaired Value
 	
            Number
 
	
            Type of Valuation
 	
            Text
 
	
            Foreclosure Flag
 	
            Text (Y or N)
 
	
            Bankruptcy Flag
 	
            Text (Y or N)
 
	
            REO Flag
 	
            Text (Y or N)
 
	
            Foreclosure Start Date (Referral Date)
 	
            MM/DD/YY
 
	
            Scheduled Foreclosure Sale Date
 	
            MM/DD/YY
 
	
            Foreclosure Actual Sale Date
 	
            MM/DD/YY
 
	
            Actual Notice of Intent Date
 	
            MM/DD/YY
 
	
            Actual First Legal Date
 	
            MM/DD/YY
 
	
            Bankruptcy Chapter
 	
            Number
 
	
            Actual Bankruptcy Start Date
 	
            MM/DD/YY
 
	
            Actual Bankruptcy End Date
 	
            MM/DD/YY
 
	
            Actual Payment Plan Start Date
 	
            MM/DD/YY
 
	
            Actual Payment Plan End Date
 	
            MM/DD/YY
 
	
            Payment Plan Term
 	
            Number
 
	
            Actual REO Start Date
 	
            MM/DD/YY
 
	
            REO List Date
 	
            MM/DD/YY
 
	
            REO List Price
 	
            Number
 
	
            Vacancy/Occupancy Status
 	
            Text
 

 

 

 

 

	
            Actual Eviction Start Date
 	
            MM/DD/YY
 
	
            Actual Eviction Completion Date
 	
            MM/DD/YY
 
	
            Sales Price
 	
            Number
 
	
            Actual Closing Date
 	
            MM/DD/YY
 
	
            Net Sales Proceeds
 	
            Number
 
	
            Current Max Line Amount
 	
            Number
 
	
            Number of times 30-59 (Lifetime to date)
 	
            Number
 
	
            Number of times 60-89 (Lifetime to date)
 	
            Number
 
	
            Number of times 90-119 (Lifetime to date)
 	
            Number
 
	
            Number of times 120-149 (Lifetime to date)
 	
            Number
 
	
            Number of times 150-179 (Lifetime to date)
 	
            Number
 
	
            Initial Debt-to-Income Ratio
 	
            Number
 
	
            Initial Monthly Income
 	
            Number
 
	
            Initial Time at Employer
 	
            Number
 
	
            Initial Time at Residence
 	
            Number
 
	
            Employer
 	
            Text
 
	
            Charge off Date
 	
            MM/DD/YY
 
	
            Charge off Amount
 	
            Number
 
	
            Current Past Due Amount
 	
            Number
 
	
            Number of Advances (Year to Date)
 	
            Number
 
	
            Dollar Amount Advanced (Year to Date)
 	
            Number
 
	
            Next Payment Due Date
 	
            MM/DD/YY
 
	
            Self Employed Flag
 	
            Y/N
 
	
            Fraud Account Flag
 	
            Y/N
 

 

 

 

 

	
            Type of Fraud
 	
            Text
 
	
            Date of Fraud Identification
 	
            MM/DD/YY
 
	
            Date of Last Re-Age
 	
            MM/DD/YY
 
	
            Number of Re-Ages
 	
            Number
 
	
            Number of Months Re-Aged
 	
            Number
 
	
            Last Contact Date by Collections
 	
            MM/DD/YY
 
	
            Teaser Rate
 	
            Number
 
	
            Teaser Rate Period
 	
            Number
 
	
            Reset Frequency
 	
            Text
 
	
            Initial Appraisal Type
 	
            Text
 
	
            Percentage of Credit Line Used
 	
            Number
 
	
            Credit Line Closed Flag
 	
            Text
 

 

 

EXHIBIT H

 

FORM OF SPS SERVICED LOANS REPORT

DATA AND FORMAT TO BE PROVIDED BY SPS TO THE MASTER SERVICER

(in Excel format)

	
            FIELD FORMAT
 	
            FIELD
 
	
            Name*
 	
            Text
 
	
            Lien Position *
 	
            Text/Number
 
	
            FICO Score* 
 	
            Number
 
	
            Original Occupancy* 
 	
            Text
 
	
            Documentation* 
 	
            Text
 
	
            Purpose* 
 	
            Text
 
	
            Original Loan Amount* 
 	
            Number
 
	
            Original Appraisal Value* 
 	
            Number
 
	
            Original LTV* 
 	
            Number
 
	
            Original P&I* 
 	
            Number
 
	
            Original Interest Rate* 
 	
            Number
 
	
            First Payment Date* 
 	
            MM/DD/YY
 
	
            Origination Date* 
 	
            MM/DD/YY
 
	
            Originator* 
 	
            Text
 
	
            Loan Term* 
 	
            Number
 
	
            Product Type (adjustable rate or fixed rate)* 
 	
            Text
 
	
            Property Type* 
 	
            Text
 
	
            Street Address* 
 	
            Text
 
	
            City* 
 	
            Text
 
	
            Zip Code* 
 	
            Text
 
	
            State* 
 	
            Text
 
	
            MI Certificate Number* 
 	
            Number
 
	
            Prepayment Flag 
 	
            Text
 
	
            Prepayment Expiration Date 
 	
            MM/DD/YY
 
	
            Loan Number 
 	
            Text
 
	
            Deal Identifier by Loan 
 	
            Text
 
	
            Current Loan Amount 
 	
            Number
 
	
            Current LTV 
 	
            Number
 
	
            Current Interest Rate 
 	
            Number
 
	
            Last Interest Payment Date 
 	
            MM/DD/YY
 
	
            Current P&I Payment Amount 
 	
            Number
 
	
            Paid Off Code 
 	
            Text
 
	
            Scheduled Balance 
 	
            Number
 
	
            Calculation of Retained Yield by Loan Number (if applicable to the transaction) 
 	
            Number
 
	
            Reporting of Delinquency Status on Defaulted Mortgage Loans 
 	
            Text
 
	
            Current Market Value 
 	
            Number
 
	
            Date of Market Value 
 	
            MM/DD/YY
 
	
            As-is Value 
 	
            Number
 
	
            Repaired Value 
 	
            Number
 
	
            Type of Valuation 
 	
            Text
 
	
            Foreclosure Flag 
 	
            Text
 
	
            Bankruptcy Flag 
 	
            Text
 
	
            Date NOD sent to MI company 
 	
            MM/DD/YY
 

 

 

 

 

	
            Foreclosure Start Date (Referral Date) 
 	
            MM/DD/YY
 
	
            Scheduled Foreclosure Sale Date 
 	
            MM/DD/YY
 
	
            Foreclosure Actual Sale Date 
 	
            MM/DD/YY
 
	
            Actual Notice of Intent Date 
 	
            MM/DD/YY
 
	
            Actual First Legal Date 
 	
            MM/DD/YY
 
	
            Bankruptcy Chapter 
 	
            Number
 
	
            Actual Bankruptcy Start Date 
 	
            MM/DD/YY
 
	
            Actual Payment Plan Start and End Dates 
 	
            MM/DD/YY
 
	
            List Date 
 	
            MM/DD/YY
 
	
            List Price 
 	
            Number
 
	
            Vacancy/Occupancy Status 
 	
            Text
 
	
            Actual Eviction Start Date 
 	
            MM/DD/YY
 
	
            Actual Eviction Completion Date 
 	
            MM/DD/YY
 
	
            Actual REO Start Date 
 	
            MM/DD/YY
 
	
            Sales Price 
 	
            Number
 
	
            Actual Closing Date 
 	
            MM/DD/YY
 
	
            Net Sales Proceeds 
 	
            Number
 
	
            Mortgage Insurance Claim Filing Date 
 	
            MM/DD/YY
 
	
            Mortgage Insurance Proceeds Received 
 	
            Number
 
	
            Date Mortgage Insurance Proceeds Received 
 	
            MM/DD/YY
 
	
            Collection History
 	
             
 

 

 

SCHEDULE I

 

REPRESENTATIONS AND WARRANTIES OF WILSHIRE

 

(i)         Wilshire is a corporation duly organized and validly existing under the laws of the State of Nevada and has full power and authority to own its assets and to transact the business in which it is currently engaged.  Wilshire (including, where appropriate, through its Affiliates and subsidiaries) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of Wilshire;

(ii)         Wilshire has full power and authority to make, execute, deliver and perform this Servicing Agreement and all of the transactions contemplated under this Servicing Agreement (including, where appropriate, through its subsidiaries), and has taken all necessary corporate action to authorize the execution, delivery and performance of this Servicing Agreement.  When executed and delivered, this Servicing Agreement will constitute the legal, valid and binding obligation of Wilshire enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

(iii)        Wilshire is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Servicing Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be;

(iv)        The execution and delivery of this Servicing Agreement and the performance of the transactions contemplated hereby by Wilshire will not violate any material provision of any existing law or regulation or any order or decree of any court applicable to Wilshire or any provision of the articles or bylaws of Wilshire, or constitute a material breach of any mortgage, indenture, contract or other agreement to which Wilshire is a party or by which Wilshire may be bound;

(v)        No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of Wilshire threatened, against Wilshire or any of its properties or with respect to this Servicing Agreement or the Securities which in the opinion of Wilshire has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Servicing Agreement; and

(vi)        Wilshire is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Loans that are registered with MERS.

 

 

SCHEDULE II

 

REPRESENTATIONS AND WARRANTIES OF OCWEN

 

(i)         Ocwen is a limited liability company duly organized and validly existing under the laws of the State of Delaware and has full power and authority to own its assets and to transact the business in which it is currently engaged.  Ocwen (including, where appropriate, through its Affiliates and subsidiaries) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of Ocwen;

(ii)         Ocwen has full power and authority to make, execute, deliver and perform this Servicing Agreement and all of the transactions contemplated under this Servicing Agreement (including, where appropriate, through its subsidiaries), and has taken all necessary corporate action to authorize the execution, delivery and performance of this Servicing Agreement.  When executed and delivered, this Servicing Agreement will constitute the legal, valid and binding obligation of Ocwen enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

(iii)        Ocwen is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Servicing Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be;

(iv)        The execution and delivery of this Servicing Agreement and the performance of the transactions contemplated hereby by Ocwen will not violate any material provision of any existing law or regulation or any order or decree of any court applicable to Ocwen or any provision of the articles or bylaws of Ocwen, or constitute a material breach of any mortgage, indenture, contract or other agreement to which Ocwen is a party or by which Ocwen may be bound;

(v)        No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of Ocwen threatened, against Ocwen or any of its properties or with respect to this Servicing Agreement or the Securities which in the opinion of Ocwen has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Servicing Agreement; and

(vi)        Ocwen is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Loans that are registered with MERS.

 

 

SCHEDULE III

 

REPRESENTATIONS AND WARRANTIES OF PNC

 

(i)         PNC is a bank duly organized and validly existing under the laws of the State of Pennsylvania and has full power and authority to own its assets and to transact the business in which it is currently engaged.  PNC (including, where appropriate, through its Affiliates and subsidiaries) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of PNC;

(ii)         PNC has full power and authority to make, execute, deliver and perform this Servicing Agreement and all of the transactions contemplated under this Servicing Agreement (including, where appropriate, through its subsidiaries), and has taken all necessary corporate action to authorize the execution, delivery and performance of this Servicing Agreement.  When executed and delivered, this Servicing Agreement will constitute the legal, valid and binding obligation of PNC enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

(iii)        PNC is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Servicing Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be;

(iv)        The execution and delivery of this Servicing Agreement and the performance of the transactions contemplated hereby by PNC will not violate any material provision of any existing law or regulation or any order or decree of any court applicable to PNC or any provision of the articles or bylaws of PNC, or constitute a material breach of any material mortgage, indenture, contract or other agreement to which PNC is a party or by which PNC may be bound;

(v)        No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of PNC threatened, against PNC or any of its properties which in the opinion of PNC has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Servicing Agreement; and

(vi)        PNC is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Loans that are registered with MERS.

 

 

SCHEDULE IV

 

REPRESENTATIONS AND WARRANTIES OF SPS

 

(i)         SPS is a corporation duly organized and validly existing under the laws of the State of Utah and has full power and authority to own its assets and to transact the business in which it is currently engaged.  SPS (including, where appropriate, through its Affiliates and subsidiaries) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of SPS;

(ii)         SPS has full power and authority to make, execute, deliver and perform this Servicing Agreement and all of the transactions contemplated under this Servicing Agreement (including, where appropriate, through its subsidiaries), and has taken all necessary corporate action to authorize the execution, delivery and performance of this Servicing Agreement.  When executed and delivered, this Servicing Agreement will constitute the legal, valid and binding obligation of SPS enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

(iii)        SPS is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Servicing Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be;

(iv)        The execution and delivery of this Servicing Agreement and the performance of the transactions contemplated hereby by SPS will not violate any material provision of any existing law or regulation or any order or decree of any court applicable to SPS or any provision of the articles or bylaws of SPS, or constitute a material breach of any mortgage, indenture, contract or other agreement to which SPS is a party or by which SPS may be bound;

(v)        No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of SPS threatened, against SPS or any of its properties or with respect to this Servicing Agreement or the Securities which in the opinion of SPS has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Servicing Agreement; and

(vi)        SPS is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Loans that are registered with MERS.

 

 

SCHEDULE V

 

REPRESENTATIONS AND WARRANTIES OF THE MASTER SERVICER

 

(i)         The Master Servicer is a duly organized and validly existing national banking association and has full power and authority to own its assets and to transact the business in which it is currently engaged.  The Master Servicer (including, where appropriate, through its Affiliates and subsidiaries) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the failure to so qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of the Master Servicer;

(ii)         The Master Servicer has full power and authority to make, execute, deliver and perform this Servicing Agreement and all of the transactions contemplated under this Servicing Agreement (including, where appropriate, through its subsidiaries), and has taken all necessary corporate action to authorize the execution, delivery and performance of this Servicing Agreement.  When executed and delivered, this Servicing Agreement will constitute the legal, valid and binding obligation of the Master Servicer enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by the availability of equitable remedies;

(iii)        The Master Servicer is not required to obtain the consent of any other Person or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Servicing Agreement, except for such consent, license, approval or authorization, or registration or declaration, as shall have been obtained or filed, as the case may be;

(iv)        The execution and delivery of this Servicing Agreement and the performance of the transactions contemplated hereby by the Master Servicer will not violate any material provision of any existing law or regulation or any order or decree of any court applicable to the Master Servicer or any provision of the articles or bylaws of the Master Servicer, or constitute a material breach of any mortgage, indenture, contract or other agreement to which the Master Servicer is a party or by which the Master Servicer may be bound;

(v)        No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to the knowledge of the Master Servicer threatened, against the Master Servicer or any of its properties or with respect to this Servicing Agreement or the Securities which in the opinion of the Master Servicer has a reasonable likelihood of resulting in a material adverse effect on the transactions contemplated by this Servicing Agreement; and

(vi)       The Master Servicer is a member of MERS in good standing.CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP.

as Depositor

and

WILMINGTON TRUST COMPANY

as Owner Trustee

	 
	 
	 

 

TRUST AGREEMENT

Dated as of November 4, 2005

	
             
 	
             
 	
             
 

Home Equity Mortgage Trust 2005-HF1

 

 

ARTICLE I

 

Definitions

	
            Section 1.01
 	
            Definitions
 
	
            Section 1.02
 	
            Other Definitional Provisions. 
 

ARTICLE II

 

Organization

	
            Section 2.01
 	
            Name
 
	
            Section 2.02
 	
            Office
 
	
            Section 2.03
 	
            Purposes and Powers
 
	
            Section 2.04
 	
            Appointment of Owner Trustee
 
	
            Section 2.05
 	
            Initial Capital Contribution
 
	
            Section 2.06
 	
            Declaration of Trust
 
	
            Section 2.07
 	
            Title to Trust Property
 
	
            Section 2.08
 	
            Situs of Trust
 
	
            Section 2.09
 	
            Representations and Warranties of the Depositor
 

ARTICLE III

 

Conveyance of the Owner Trust Estate; The Certificates

	
            Section 3.01
 	
            Conveyance of the Owner Trust Estate
 
	
            Section 3.02
 	
            Initial Ownership
 
	
            Section 3.03
 	
            The Certificates
 
	
            Section 3.04
 	
            Authentication of Certificate
 
	
            Section 3.05
 	
            Registration of and Limitations on Transfer and Exchange of Certificate
 
	
            Section 3.06
 	
            Mutilated, Destroyed, Lost or Stolen Certificates
 
	
            Section 3.07
 	
            Persons Deemed Certificateholders
 
	
            Section 3.08
 	
            Access to Certificateholders’ Name and Addresses
 
	
            Section 3.09
 	
            Maintenance of Office or Agency
 
	
            Section 3.10
 	
            Certificate Paying Agent
 
	
            Section 3.11
 	
            Subordination
 

ARTICLE IV

 

Authority and Duties of Owner Trustee

	
            Section 4.01
 	
            General Authority
 
	
            Section 4.02
 	
            General Duties
 
	
            Section 4.03
 	
            Action upon Instruction. 
 
	
            Section 4.04
 	
            No Duties Except as Specified under Specified Documents or in Instructions
 
	
            Section 4.05
 	
            Restrictions. 
 
	
            Section 4.06
 	
            Prior Notice to the Certificateholders with Respect to Certain Matters
 
	
            Section 4.07
 	
            Action by Certificateholders with Respect to Certain Matters
 
	
            Section 4.08
 	
            Action by Certificateholder with Respect to Bankruptcy
 

 

 

 

 

	
            Section 4.09
 	
            Restrictions on Certificateholders’ Power
 
	
            Section 4.10
 	
            Doing Business in Other Jurisdictions
 

ARTICLE V

 

Application of Trust Funds

	
            Section 5.01
 	
            Distributions. 
 
	
            Section 5.02
 	
            Method of Payment
 
	
            Section 5.03
 	
            Signature on Returns
 
	
            Section 5.04
 	
            Statements to Certificateholders
 
	
            Section 5.05
 	
            Tax Elections
 

ARTICLE VI

 

Concerning the Owner Trustee

	
            Section 6.01
 	
            Acceptance of Trusts and Duties
 
	
            Section 6.02
 	
            Furnishing of Documents
 
	
            Section 6.03
 	
            Representations and Warranties
 
	
            Section 6.04
 	
            Reliance; Advice of Counsel. 
 
	
            Section 6.05
 	
            Not Acting in Individual Capacity
 
	
            Section 6.06
 	
            Owner Trustee Not Liable for Certificates or Related Documents
 
	
            Section 6.07
 	
            Owner Trustee May Own the Certificates and the Notes
 

ARTICLE VII

 

Compensation of Owner Trustee

	
            Section 7.01
 	
            Owner Trustee’s Fees and Expenses
 
	
            Section 7.02
 	
            Indemnification
 

ARTICLE VIII

 

Termination of Trust Agreement

	
            Section 8.01
 	
            Termination of Trust Agreement. 
 
	
            Section 8.02
 	
            Additional Termination Requirements. 
 

ARTICLE IX

 

Successor Owner Trustees and Additional Owner Trustees

	
            Section 9.01
 	
            Eligibility Requirements for Owner Trustee
 
	
            Section 9.02
 	
            Replacement of Owner Trustee
 
	
            Section 9.03
 	
            Successor Owner Trustee
 
	
            Section 9.04
 	
            Merger or Consolidation of Owner Trustee
 
	
            Section 9.05
 	
            Appointment of Co-Trustee or Separate Trustee
 

 

 

 

ARTICLE X

 

Miscellaneous

	
            Section 10.01
 	
            Amendments. 
 
	
            Section 10.02
 	
            No Legal Title to Owner Trust Estate
 
	
            Section 10.03
 	
            Limitations on Rights of Others
 
	
            Section 10.04
 	
            Notices. 
 
	
            Section 10.05
 	
            Severability
 
	
            Section 10.06
 	
            Separate Counterparts
 
	
            Section 10.07
 	
            Successors and Assigns
 
	
            Section 10.08
 	
            No Petition
 
	
            Section 10.09
 	
            No Recourse
 
	
            Section 10.10
 	
            Headings
 
	
            Section 10.11
 	
            GOVERNING LAW
 
	
            Section 10.12
 	
            Integration
 
	
            Section 10.13
 	
            Intention of the Parties
 

 

 

	
            EXHIBIT A 
 	
            FORM OF CLASS X-[1][2][S] CERTIFICATES
 
	
            EXHIBIT B 
 	
            FORM OF CERTIFICATE OF TRUST  OF
 
	
            EXHIBIT C 
 	
            FORM OF RULE 144A INVESTMENT REPRESENTATION
 
	
            EXHIBIT D 
 	
            FORM OF INVESTOR REPRESENTATION LETTER
 
	
            EXHIBIT E 
 	
            FORM OF TRANSFEROR REPRESENTATION LETTER
 
	
            EXHIBIT F 
 	
            FORM OF ERISA REPRESENTATION LETTER
 
	
            EXHIBIT G 
 	
            FORM OF CERTIFICATE OF NON-FOREIGN STATUS
 
	
            EXHIBIT H 
 	
            [RESERVED]
 
	
            EXHIBIT I 
 	
            FORM OF CLASS [A-R][A-RL] CERTIFICATES
 
	
            EXHIBIT J-1 
 	
            FORM OF TRANSFER AFFIDAVIT AND AGREEMENT
 
	
            EXHIBIT J-2 
 	
            FORM OF TRANSFEROR CERTIFICATE
 
	
            EXHIBIT K 
 	
            FORM OF CLASS G CERTIFICATES
 
	
            EXHIBIT L 
 	
            FORM OF CLASS P CERTIFICATES
 

 

 

 

This Trust Agreement, dated as of November 4, 2005 (as may be amended, modified or supplemented and in effect from time to time, this “Trust Agreement”), between CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP., a Delaware corporation, as depositor (the “Depositor”) and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as owner trustee (the “Owner Trustee”),

WITNESSETH THAT:

WHEREAS, pursuant to the terms of the Loan Purchase Agreement, DLJ Mortgage Capital, Inc. (in such capacity, the “Seller”) will sell to the Depositor the Loans together with the Related Documents on the Closing Date;

WHEREAS, pursuant to the terms if this Trust Agreement, the Depositor desires to convey the Loans to the Trust;

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the Depositor and the Owner Trustee agree as follows:

ARTICLE I

 

DEFINITIONS

Section 1.01     Definitions.  For all purposes of this Trust Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in Appendix A to the Indenture, dated November 4, 2005 (the “Indenture”), among Home Equity Mortgage Trust 2005-HF1, as issuer, U.S. Bank National Association, as indenture trustee and JPMorgan Chase Bank, N.A., as trust administrator, as in effect on the date hereof.  All other capitalized terms used herein shall have the meanings specified herein.

	
            Section 1.02
 	
            Other Definitional Provisions.
 

(a)        All terms defined in this Trust Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein.  

(b)        As used in this Trust Agreement and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Trust Agreement or in any such certificate or other document, and accounting terms partly defined in this Trust Agreement or in any such certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles.  To the extent that the definitions of accounting terms in this Trust Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Trust Agreement or in any such certificate or other document shall control.

(c)        The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Trust Agreement shall refer to this Trust Agreement as a whole and not to any 

 

particular provision of this Trust Agreement; Article, Section and Exhibit references contained in this Trust Agreement are references to Articles, Sections and Exhibits in or to this Trust Agreement unless otherwise specified; the term “including” shall mean “including without limitation;” the term “or” shall include “and/or” and the term “proceeds” shall have the meaning ascribed thereto in the UCC.

(d)        The definitions contained in this Trust Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.

(e)        Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns.

 

 

ARTICLE II

 

ORGANIZATION

Section 2.01     Name.   The trust shall be known as “Home Equity Mortgage Trust 2005-HF1” (the “Trust” or the “Owner Trust”), in which name the Owner Trustee may engage in the transactions contemplated hereby, make and execute contracts and other instruments on behalf of the Trust and sue and be sued.

Section 2.02     Office.  The office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address in Delaware as the Owner Trustee may designate by written notice to the Certificateholders and the Depositor.

Section 2.03     Purposes and Powers.  The purpose of the Trust is to engage in the following activities:

(i)         to issue the Notes pursuant to the Indenture and the Certificates pursuant to this Trust Agreement and to sell the Notes and the Certificates;

(ii)         to purchase the Loans and to pay organizational, start-up and transactional expenses of the Trust;

(iii)        to assign, grant, transfer, pledge and convey the Loans pursuant to the Indenture and to hold, manage and distribute to the Certificateholders pursuant to Section 5.01 any portion of the Loans released from the Lien of, and remitted to the Trust pursuant to the Indenture;

(iv)        to assign, grant, transfer, own, pledge and convey the Loans in connection with any such termination;

(v)        to enter into and perform its obligations under the Basic Documents to which it is to be a party;

(vi)        to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith, including, without limitation, to accept additional contributions of equity that are not subject to the Lien of the Indenture; and

(vii)       subject to compliance with the Basic Documents, to engage in such other activities as may be required in connection with conservation of the Owner Trust Estate and the making of distributions to the Securityholders.

The Trust is hereby authorized to engage in the foregoing activities.  The Trust shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Trust Agreement or the Basic Documents while any Note is outstanding without the consent of the Certificateholders and the Trust Administrator.

 

 

Section 2.04     Appointment of Owner Trustee.  The Depositor hereby appoints the Owner Trustee as trustee of the Trust effective as of the date hereof, to have all the rights, powers and duties set forth herein.

Section 2.05     Initial Capital Contribution.  The Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust, as of the date hereof, the sum of $1.  The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the date hereof, of the foregoing contribution, which shall constitute the initial corpus of the Trust and shall be deposited in the Certificate Distribution Account.  The Owner Trustee also acknowledges, on behalf of the Trust, the receipt in trust of the property assigned to the Trust pursuant to Section 3.01.

The Trust acknowledges the conveyance to the Trust by the Depositor, as of the Closing Date, of the Owner Trust Estate, including all right, title and interest of the Depositor in and to the Owner Trust Estate.  Concurrently with such conveyance, the Trust has pledged the Trust Estate to the Indenture Trustee and has executed the Certificates and the Notes and caused them to be duly authenticated and delivered.

Section 2.06     Declaration of Trust.  The Owner Trustee hereby declares that it shall hold the Owner Trust Estate in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, subject to the obligations of the Owner Trust under the Basic Documents.  It is the intention of the parties hereto that the Owner Trust constitute a statutory trust under the Statutory Trust Statute and that this Trust Agreement constitute the governing instrument of such statutory trust.  It is the intention of the parties hereto that, solely for federal, state and local income and franchise tax purposes, the Owner Trust shall be treated as a domestic eligible entity with a single owner electing to be disregarded as a separate entity.  It is the intention of the parties hereto that, an
election to be treated as a REMIC (“REMIC”) for federal income tax purposes be made with respect to the Loans together with the proceeds of the Loans and the proceeds on deposit in the Custodial Accounts and the Payment Account.  It is also the intention of the parties hereto that a second election to be treated as a REMIC be made with respect to the REMIC I Regular Interests (“REMIC II”). It is also the intention of the parties hereto that a third election to be treated as a REMIC be made with respect to the REMIC II Regular Interests (“REMIC III”). Notwithstanding the foregoing, Additional Balances comprising the Additional Balance Advance Amount shall not be an asset of REMIC I, REMIC II or REMIC III but shall be an asset of the Trust Fund.  The Issuer will provide for the administration of REMIC I, REMIC II and REMIC III pursuant to Article XI of the Indenture.  Pursuant to Section 11.01(d) of the Indenture, the
REMIC Administrator will prepare, sign and file certain tax returns on behalf of the REMICs.  The parties agree that, unless otherwise required by appropriate tax authorities, the Owner Trust will not file or cause to be filed annual or other returns, reports or other forms.  Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set forth herein and in the Statutory Trust Statute with respect to accomplishing the purposes of the Owner Trust.

Section 2.07     Title to Trust Property.  Legal title to the Owner Trust Estate shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case may be.

 

 

Section 2.08     Situs of Trust.  The Trust will be located and administered in the State of Delaware or Minnesota.  All bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the State of Delaware or the State of Minnesota.  The Trust shall not have any employees in any state other than Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware or taking actions outside the State of Delaware in order to comply with Section 2.03.  Payments will be received by the Trust only in Delaware or Minnesota, and payments will be made by the Trust only from Delaware or Minnesota.  The only office of the Trust will be at the Corporate Trust Office in Delaware.

Section 2.09     Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Owner Trustee that:

(i)         The Depositor is duly organized and validly existing as a corporation in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted.

(ii)         The Depositor is duly qualified to do business as a foreign corporation in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its property or the conduct of its business shall require such qualifications and in which the failure to so qualify would have a material adverse effect on the business, properties, assets or condition (financial or other) of the Depositor and the ability of the Depositor to perform under this Trust Agreement.

(iii)        The Depositor has the power and authority to execute and deliver this Trust Agreement and to carry out its terms; the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with the Trust as part of the Trust and the Depositor has duly authorized such sale and assignment and deposit to the Trust by all necessary corporate action; and the execution, delivery and performance of this Trust Agreement have been duly authorized by the Depositor by all necessary corporate action.

(iv)        The consummation of the transactions contemplated by this Trust Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the articles of incorporation or bylaws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any federal or state regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Depositor or its properties.

 

 

ARTICLE III

 

CONVEYANCE OF THE OWNER TRUST ESTATE; THE CERTIFICATES

Section 3.01     Conveyance of the Owner Trust Estate.  In consideration of the delivery to the Depositor of the Securities, the Depositor, concurrently with the execution and delivery hereof, does hereby transfer, convey, sell and assign to the Trust, on behalf of the Securityholders, without recourse, all of its right, title and interest, whether now owned or hereafter acquired, in and to (A) the Initial Loans and all Additional Balances (other than Excluded Amounts) thereafter arising, including the Mortgage Notes, the Mortgages, any related insurance policies and all other documents in the related Loan Files and including any Eligible Substitute Loans; (B) the Certificate Distribution Account; (C) pool insurance policies, hazard insurance policies and any bankruptcy bond relating to the foregoing, if applicable;
(D) all amounts payable after the Cut-off Date to the holders of the Initial Loans in accordance with the terms thereof; (E) all income, payments, proceeds and products 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 Distribution Account, whether in the form of cash, instruments, securities or other property; (F) all accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and (G) all proceeds of any of the foregoing.(collectively, the “Owner Trust Estate”).

The Depositor and the Owner Trustee agree that it is not intended that any Loan be included in the Owner Trust Estate that is a “High-Cost Home Loan” as defined in (i) the New Jersey Home Ownership Security Act effective November 27, 2003, (ii) the New Mexico Home Loan Protection Act effective January 1, 2004, (ii) the Massachusetts Predatory Home Loan Practices Act effective November 7, 2004, (iv) the Indiana High Cost Home Loan Law Act effective January, 2005 or (v) the Kentucky Revised Statutes §360.100, in each case as amended from time to time.

Section 3.02     Initial Ownership.  Upon the formation of the Trust by the contribution by the Depositor pursuant to Section 2.05 and until the conveyance of the Loans pursuant to Section 3.01 and the issuance of the Certificates, the Depositor shall be the sole Certificateholder.

Section 3.03     The Certificates.  Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class X-1 Certificates.  The Class X-1 Certificates shall represent a 100% beneficial interest in the portion of the Trust relating to the Loans.  Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class X-2 Certificates.  The Class X-2 Certificates shall represent a 100% beneficial interest in recoveries on Charged Off Loans that become Released Loans.  Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class X-S Certificates.  The Class X-S Certificates shall represent a 100% beneficial interest in the portion of the Trust relating to the Excess Servicing Fee.
Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class P Certificates.  The Class P Certificates shall represent a 100% beneficial interest in the portion of the Trust relating to Prepayment Charges on the Loans. Initially, the Trust shall issue a single denomination of a 100.00% Certificate 

 

Percentage Interest of each of the Class G Certificates.  The Class G Certificates shall represent the residual interest in REMIC I.  Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class A-RL Certificates.  The Class A-RL Certificates shall represent the residual interest in REMIC II. Initially, the Trust shall issue a single denomination of a 100.00% Certificate Percentage Interest of the Class A-R Certificates.  The Class A-R Certificates shall represent the residual interest in REMIC III.  The Certificates of each Class shall be shall be transferable in minimum denominations of 20% Certificate Percentage Interest.

The Certificates shall be executed on behalf of the Trust by manual or facsimile signature of an authorized officer of the Owner Trustee and authenticated in the manner provided in Section 3.04.  If the Certificates bear the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Trust, it shall be validly issued and entitled to the benefit of this Trust Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of the Certificates or did not hold such offices at the date of authentication and delivery of the Certificates.  A Person shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of the Certificateholders hereunder upon such Person’s acceptance of the
Certificates duly registered in such Person’s name, pursuant to Section 3.05.

A transferee of a Certificate shall become a Certificateholder and shall be entitled to the rights and subject to the obligations of the Certificateholders hereunder upon such transferee’s acceptance of such Certificate duly registered in such transferee’s name pursuant to and upon satisfaction of the conditions set forth in Section 3.05.

Section 3.04     Authentication of Certificate.  Concurrently with the acquisition of the Loans by the Trust, the Owner Trustee or the Certificate Paying Agent shall cause each Class of Certificates to be issued in a Certificate Percentage Interest of 100.00%, to be executed on behalf of the Trust, authenticated and delivered to or upon the written order of the Depositor, signed by its chairman of the board, its president or any vice president, without further corporate action by the Depositor, in the authorized denomination.  A Certificate shall not entitle its holder to any benefit under this Trust Agreement or be valid for any purpose unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, Exhibit I or Exhibit K executed by the Owner Trustee
or the Certificate Paying Agent, by manual signature; such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder.  Each Certificate shall be dated the date of its authentication.

Section 3.05     Registration of and Limitations on Transfer and Exchange of Certificate.  The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.09, a Certificate Register in which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall provide for the registration of the Certificates and of transfers and exchanges of the Certificates as herein provided.  The Trust Administrator shall be the initial Certificate Registrar.  If the Certificate Registrar resigns or is removed, the Owner Trustee shall appoint a successor Certificate Registrar.

 

 

Upon surrender for registration or transfer of a Certificate at the office or agency maintained pursuant to Section 3.09, the Owner Trustee shall execute, authenticate and deliver (or shall cause the Certificate Registrar as its authenticating agent to authenticate and deliver) in the name of the designated transferee or transferees, a new Certificate in authorized denominations of a like aggregate amount dated the date of authentication by the Owner Trustee or any authenticating agent.  At the option of a Certificateholder, such Certificateholder’s Certificate may be exchanged for another Certificate of authorized denominations of a like aggregate amount upon surrender of the Certificate to be exchanged at the office or agency maintained pursuant to Section 3.09.

Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the registered holder of such Certificate or such holder’s attorney duly authorized in writing.  When a Certificate is surrendered for registration of transfer or exchange it shall be canceled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice.

No service charge shall be made for any registration of transfer or exchange of any Certificate, but the Owner Trustee or the Certificate Registrar 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 any Certificate.

Except as described below, no transfer of any Class G, Class A-R and Class A-RL Certificate or interest therein shall be made to any Person that is not a United States Person.  Each Class G, Class A-R and Class A-RL Certificateholder shall establish its non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9 and the Certificate of Non-Foreign Status set forth in Exhibit G hereto, which certificate shall not be an expense of the Trust, the Owner Trustee, the Certificate Registrar or the Depositor.  If a Class G, Class A-R or Class A-RL Certificateholder is unable to provide a Certificate of Non-Foreign Status, such Certificateholder must provide an Opinion of Counsel as described in the preceding paragraph..

A Certificate may be transferred to a Class G, Class A-R or Class A-RL Certificateholder unable to establish its non-foreign status as described in the preceding paragraph only if such Certificateholder provides an Opinion of Counsel, which Opinion of Counsel shall not be an expense of the Trust, the Owner Trustee, the Certificate Registrar or the Depositor, satisfactory to the Depositor, that such transfer (1) will not affect the tax status of the Owner Trust and (2) will not adversely affect the interests of the Certificateholders or any Noteholder, including, without limitation, as a result of the imposition of any United States federal withholding taxes on the Trust (except to the extent that such withholding taxes would be payable solely from amounts otherwise distributable to the Certificate of the prospective transferee).  If such transfer occurs and such foreign Certificateholder
becomes subject to such United States federal withholding taxes, any such taxes will be withheld by the Trust Administrator.  Each Certificateholder unable to establish its non-foreign status shall submit to the Certificate Paying Agent a copy of its Form W-8BEN and shall resubmit such Form W-8BEN every three years.

No transfer, sale, pledge or other disposition of the Class G, Class P, Class X-1, Class X-2 or Class X-S Certificates shall be made unless such transfer, sale, pledge or other disposition is 

 

exempt from the registration requirements of the Securities Act and any applicable state securities laws or is made in accordance with said Act and laws.  In the event of any such transfer, the Certificate Registrar or the Depositor shall prior to such transfer require the transferee to execute either (i) an investment letter in substantially the form attached hereto as Exhibit C (or in such form and substance reasonably satisfactory to the Certificate Registrar and the Depositor) which investment letters shall not be an expense of the Trust, the Owner Trustee, the Certificate Registrar, the Master Servicer, the Servicers or the Depositor and which investment letter states that, among other things, such transferee (a) is a “qualified institutional buyer” as defined under Rule 144A, acting for its own account or the accounts of other “qualified institutional buyers” as defined under Rule
144A, and (b) is aware that the proposed transferor intends to rely on the exemption from registration requirements under the Securities Act of 1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel acceptable to and in form and substance satisfactory to the Certificate Registrar and the Depositor that such transfer may 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 Trust, the Owner Trustee, the Certificate Registrar, the Master Servicer, the Servicers or the Depositor and (b) the transferee executes a representation letter, substantially in the form of Exhibit D hereto, and the transferor executes a representation letter, substantially in the form of Exhibit E hereto, each acceptable to and in form and substance satisfactory to the Certificate Registrar and the Depositor certifying
the facts surrounding such transfer, which representation letters shall not be an expense of the Trust, the Owner Trustee, the Certificate Registrar, the Servicer or the Depositor.  The Certificateholder desiring to effect such transfer shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the Certificate Registrar, the Master Servicer, the Servicers, and the Depositor against any liability that may result if the transfer is not so exempt or is not made in accordance with such federal and state laws.

No transfer of a Certificate or any interest therein shall be made to any Person using Plan Assets unless the Depositor, the Owner Trustee, the Certificate Registrar, the Master Servicer and the Servicers are provided with an Opinion of Counsel which establishes to the satisfaction of the Depositor, the Owner Trustee, the Certificate Registrar, the Master Servicer and the Servicers that the purchase of such Certificate is permissible under applicable law, will not constitute or result in any prohibited transaction under ERISA or Section 4975 of the Code and will not subject the Depositor, the Owner Trustee, the Trust, the Certificate Registrar, the Master Servicer or the Servicers to any obligation or liability (including obligations or liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in this Trust Agreement, which Opinion of Counsel shall
not be an expense of the Depositor, the Owner Trustee, the Certificate Registrar, the Master Servicer or the Servicers.  In lieu of such Opinion of Counsel, a Plan, any Person acting, directly or indirectly, on behalf of any such Plan or any Person acquiring a Certificate with Plan Assets of a Plan may provide a certification in the form of Exhibit F to this Trust Agreement, which the Depositor, the Owner Trustee, the Certificate Registrar, the Master Servicer and the Servicers may rely upon without further inquiry or investigation.  Neither an Opinion of Counsel nor a certification will be required in connection with the initial transfer of the Certificates by the Depositor to the Underwriter and the Depositor shall be deemed to have represented that the Underwriter is not a Plan or a Person investing Plan Assets of any Plan) and the Owner Trustee and the Certificate Registrar shall be entitled to conclusively rely upon a representation (which, upon the request of the Owner Trustee,
shall be a 

 

written representation) from the Depositor of the status of such transferee as an affiliate of the Depositor.

In addition, no transfer of a Certificate shall be permitted, and no such transfer shall be registered by the Certificate Registrar or be effective hereunder, if such transfer or the registration of such transfer would cause the Trust to be classified as a publicly traded partnership, taxable as a corporation for federal income tax purposes by causing the Trust to have more than 100 Certificateholders at any time during the taxable year of the Trust, an association taxable as a corporation, a corporation or a taxable mortgage pool for federal and relevant state income tax purposes.

In addition, with respect to each Class G, Class A-R or Class A-RL Certificate, (i) each Person who has or who acquires any Ownership Interest in a Class G, Class A-R or Class A-RL 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 Certificate Paying Agent 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 G, Class A-R or Class A-RL Certificate are expressly subject to the following provisions:

(A)       Each Person holding or acquiring any Ownership Interest in a Class G, Class A-R or Class A-RL Certificate shall be a Permitted Transferee and shall promptly notify the Owner 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 G, Class A-R or Class A-RL Certificate, the Certificate Registrar shall require delivery to it, and shall not register the Transfer of any Class G, Class A-R or Class A-RL Certificate until its receipt of, (I) an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the form attached hereto as Exhibit J-1) from the proposed Transferee, in form and substance satisfactory to the Certificate Registrar, representing and warranting, among other things, that it is a Permitted Transferee, that it is not acquiring its Ownership Interest in the Class G, Class A-R or Class A-RL 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 G, Class A-R or Class A-RL Certificate, it will endeavor to remain a Permitted Transferee, and that it has reviewed the provisions of this Section 3.05 and agrees to be bound by them, and (II) a certificate, in the form attached hereto as Exhibit J-2, from the Certificateholder of a Class G, Class A-R or Class A-RL Certificate wishing to transfer the Class G, Class A-R or Class A-RL Certificate, in form and substance satisfactory to the Certificate Registrar, 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 Certificate Registrar who is assigned to this Agreement has actual knowledge that the proposed Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest in a Class G, Class A-R or Class A-RL Certificate to such proposed Transferee shall be effected.

(D)       Each Person holding or acquiring any Ownership Interest in a Class G, Class A-R or Class A-RL 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 G, Class A-R or Class A-RL Certificate and (y) not to transfer its Ownership Interest unless it provides a certificate to the Certificate Registrar in the form attached hereto as Exhibit J-2.

(E)        Each Person holding or acquiring an Ownership Interest in a Class G, Class A-R or Class A-RL Certificate, by purchasing an Ownership Interest in such Certificate, agrees to give the Certificate Registrar 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 A-R Certificate, if it is, or is holding an Ownership Interest in a Class A-R Certificate on behalf of, a “pass-through interest holder.”

(ii)         The Certificate Registrar will register the Transfer of any Class G, Class A-R or Class A-RL Certificate only if it shall have received the Transfer Affidavit and Agreement, a certificate of the Certificateholder of a Class G, Class A-R or Class A-RL Certificate requesting such transfer in the form attached hereto as Exhibit J-2 and all of such other documents as shall have been reasonably required by the Certificate Registrar as a condition to such registration.  Transfers of the Class A-R Certificates to Non-United States Persons and Disqualified Organizations (as defined in Section 860E(e)(5) of the Code) are prohibited.

(iii)        (A)       If any Disqualified Organization shall become a holder of a Class A-R Certificate, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Certificateholder of a Class G, Class A-R or Class A-RL Certificate thereof retroactive to the date of registration of such Transfer of such Class A-R Certificate.  If a Non-United States Person shall become a holder of a Class G, Class A-R or Class A-RL Certificate, then the last preceding United States Person shall be restored, to the extent permitted by law, to all rights and obligations as Certificateholder of a Class G, Class A-R or Class A-RL Certificate thereof retroactive to the date of registration of such Transfer of such Class G, Class A-R or Class A-RL
Certificate.  If a transfer of a Class G, Class A-R or Class A-RL Certificate is disregarded pursuant to the provisions of Treasury Regulations Section 1.860E-1 or Section 1.860G-3, then the last preceding Permitted Transferee shall be restored, to the extent permitted by law, to all rights and obligations as Certificateholder of a Class G, Class A-R or Class A-RL Certificate thereof retroactive to the date of registration of such Transfer of such Class G, Class A-R or Class A-RL Certificate. The Certificate Registrar shall be under no liability to any Person for any registration of Transfer of a Class G, Class A-R or Class A-RL Certificate that is in fact not permitted by this Section 3.05 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 Certificateholder of a Class G, Class A-R or Class A-RL Certificate in violation of the restrictions in this Section 3.05 and to the extent that the retroactive restoration of the rights of the Certificateholder of such Class G, Class A-R or Class A-RL Certificate as described in clause (iii)(A) above shall be invalid, illegal or unenforceable, then the Certificate Registrar shall have the right, without notice to the holder or any prior holder of such Class G, Class A-R or Class A-RL Certificate, to sell such Class G, Class A-R or Class A-RL Certificate to a purchaser selected by the Certificate Registrar on such terms as the Certificate Registrar may choose.  Such purported Transferee shall promptly endorse and deliver each Class G, Class A-R or Class A-RL Certificate in
accordance with the instructions of the Certificate Registrar.  Such purchaser may be the Servicer itself or any Affiliate of the Servicer.  The proceeds of such sale, net of the commissions (which may include commissions payable to the Servicer or its Affiliates), expenses and taxes due, if any, will be remitted by the Certificate Registrar 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 Certificate Registrar, and the Certificate Registrar shall not be liable to any Person having an Ownership Interest in a Class G, Class A-R or Class A-RL Certificate as a result of its exercise of such discretion.

(iv)        The Certificate Paying Agent shall make available, upon written request from the Internal Revenue Service and any potentially affected Person, all information necessary to compute any tax imposed (A) as a result of the Transfer of an Ownership Interest in a Class G, Class A-R or Class A-RL Certificate to any Person who is a Disqualified Organization, including the information regarding “excess inclusions” of such Class A-R Certificates required to be provided to the Internal Revenue Service and certain Persons as described in Treasury Regulations Sections 1.860D-1(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 G,
Class A-R or Class A-RL Certificate having as among its record holders at any time any Person who is a Disqualified Organization.  Reasonable compensation for providing such information may be required by the REMIC Administrator before it will provide such information to any such potentially affected Person.

(v)        The provisions of this Section 3.05 set forth prior to this clause (v) may be modified, added to or eliminated, provided that there shall have been delivered to the Owner Trustee the following:

(A)       written notification from each Rating Agency to the effect that the modification, addition to or elimination of such provisions will not cause such Rating Agency to downgrade its then-current ratings, if any, if determined without regard to the Policy, of any Class of the Notes below the lower of the then-current rating or the rating assigned to such Notes as of the Closing Date by such Rating Agency, if determined without regard to the Policy; and

 

 

(B)        subject to Section 10.01(f), an Officers’ Certificate of the Trust Administrator stating that the Trust Administrator has received an Opinion of Counsel, in form and substance satisfactory to the Trust Administrator, to the effect that such modification, addition to or absence of such provisions will not cause any portion of either of the REMICs to cease to qualify as a REMIC and will not cause (x) any portion of either of the REMICs to be subject to an entity-level tax caused by the Transfer of any Class A-R Certificate to a Person that is a Disqualified Organization or (y) a Certificateholder or another Person to be subject to a REMIC-related tax caused by the Transfer of a Class A-R Certificate to a Person that is not a Permitted Transferee.

Section 3.06     Mutilated, Destroyed, Lost or Stolen Certificates.  If (a) any mutilated Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and (b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them and the Trust from harm, then in the absence of notice to the Certificate Registrar or the Owner Trustee that such Certificate has been acquired by a protected purchaser, the Owner Trustee shall execute on behalf of the Trust and the Owner Trustee or the Certificate Paying Agent, as the Trust’s authenticating agent, shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like tenor and denomination.  In connection with the issuance of any new Certificate under this Section 3.06, the Owner Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.  Any duplicate Certificate issued pursuant to this Section 3.06 shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

Section 3.07     Persons Deemed Certificateholders.  Prior to due presentation of the Certificates for registration of transfer, the Owner Trustee, the Certificate Registrar or any Certificate Paying Agent may treat the Person in whose name any Certificate is registered in the Certificate Register as the owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.02 and for all other purposes whatsoever, and none of the Trust, the Owner Trustee, the Certificate Registrar or any Certificate Paying Agent shall be bound by any notice to the contrary.

Section 3.08     Access to Certificateholders’ Name and Addresses.  The Certificate Registrar shall furnish or cause to be furnished to the Depositor or the Owner Trustee, within 15 days after receipt by the Certificate Registrar of a written request therefor from the Depositor or the Owner Trustee, a list, in such form as the Depositor or the Owner Trustee, as the case may be, may reasonably require, of the names and addresses of the Certificateholders as of the most recent Record Date.  Each Certificateholder, by receiving and holding the Certificates, shall be deemed to have agreed not to hold any of the Trust, the Depositor, the Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived.

Section 3.09     Maintenance of Office or Agency.  The Certificate Registrar shall maintain in the City of New York an office or offices or agency or agencies where the Certificates 

 

may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Trust in respect of the Certificates and the Basic Documents may be served.  The Certificate Registrar initially designates the Corporate Trust Office of the Trust Administrator as its office for such purposes.  The Trust Administrator shall give prompt written notice to the Depositor and the Certificateholders of any change in the location of the Certificate Register or any such office or agency.

Section 3.10     Certificate Paying Agent.  (a) The Certificate Paying Agent shall make distributions to the Certificateholders from the Certificate Distribution Account on behalf of the Trust in accordance with the provisions of the Certificates and Section 5.01 hereof from payments remitted to the Certificate Paying Agent by the Trust Administrator pursuant to Section 3.05 of the Indenture.  The Trust hereby appoints the Trust Administrator as Certificate Paying Agent.  The Certificate Paying Agent shall:

(i)         hold all sums held by it for the payment of amounts due with respect to the Certificates in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

(ii)         give the Owner Trustee notice of any default by the Trust of which it has actual knowledge in the making of any payment required to be made with respect to the Certificates;

(iii)        at any time during the continuance of any such default by the Trust, upon the written request of the Owner Trustee forthwith pay to the Owner Trustee on behalf of the Trust all sums held in trust by the Certificate Paying Agent pursuant to clause (i) above;

(iv)        immediately resign as Certificate Paying Agent and forthwith pay to the Owner Trustee on behalf of the Trust all sums held by it in trust for the payment of the Certificates if at any time it ceases to meet the standards required to be met by the Certificate Paying Agent at the time of its appointment;

(v)        comply with all requirements of the Code with respect to the withholding from any payments made by it on the Certificates of any applicable withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith; and

(vi)        deliver to the Owner Trustee a copy of the report to Certificateholders prepared with respect to each Payment Date by the Trust Administrator.

(b)        The Trust may revoke such power and remove the Certificate Paying Agent if the Owner Trustee determines in its sole discretion that the Certificate Paying Agent shall have failed to perform its obligations under this Trust Agreement in any material respect.  Any removal of JPMorgan Chase Bank, N.A. as Certificate Paying Agent shall result in the removal of JPMorgan Chase Bank as Trust Administrator, Administrator and Master Servicer under the Basic Documents.  The Trust Administrator shall be permitted to resign as Certificate Paying Agent upon 30 days written notice to the Owner Trustee; provided the Trust Administrator is also resigning as Paying Agent and Trust Administrator under the Indenture at such time as well as Master Servicer under the Servicing Agreement and as Administrator under the Administration Agreement.  In the event
that the Trust Administrator shall no longer be the 

 

Certificate Paying Agent under this Trust Agreement and Paying Agent under the Indenture, the Owner Trustee shall appoint a successor to act as Certificate Paying Agent (which shall be a bank or trust company) and which shall also be the successor Paying Agent under the Indenture.  The Owner Trustee shall cause such successor Certificate Paying Agent or any additional Certificate Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument to the effect set forth in this Section 3.10 as it relates to the Certificate Paying Agent.  The Certificate Paying Agent shall return all unclaimed funds to the Trust and upon removal of a Certificate Paying Agent such Certificate Paying Agent shall also return all funds in its possession to the Trust.  The provisions of Sections 6.01, 6.04, 6.05, 6.06, 6.07, 7.01 and 7.02 shall apply to the Certificate Paying Agent to the
extent applicable.  Any reference in this Trust Agreement to the Certificate Paying Agent shall include any co-paying agent unless the context requires otherwise.

(c)        The Certificate Paying Agent shall establish and maintain with itself the Certificate Distribution Account in which the Certificate Paying Agent shall deposit, on the same day as it is received from the Trust Administrator, each remittance received by the Certificate Paying Agent with respect to payments made pursuant to the Indenture.  The Certificate Paying Agent shall make all distributions on the Certificates from moneys on deposit in the Certificate Distribution Account.

Section 3.11    Subordination.  Except as otherwise provided in the Basic Documents, for so long as any Notes are outstanding or unpaid, the Certificateholders will generally be subordinated in right of payment, under the Certificates or otherwise, to payments to the Noteholders under, or otherwise related to, the Indenture.  If an Event of Default has occurred and is continuing under the Indenture, the Certificates will be fully subordinated to obligations owing by the Trust to the Noteholders under, or otherwise related to, the Indenture, and no distributions will be made on the Certificates until the Noteholders, the Master Servicer, the Administrator and the Trust Administrator have been irrevocably paid in full.

ARTICLE IV

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 4.01     General Authority.  The Owner Trustee is authorized and directed to execute and deliver the Basic Documents to which the Trust is to be a party and each certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to be a party and any amendment or other agreement or instrument described herein, in each case, in such form as the Owner Trustee shall approve, as evidenced conclusively by the Owner Trustee’s execution thereof.

Section 4.02     General Duties.  The Owner Trustee shall be responsible to administer the Trust pursuant to the terms of this Trust Agreement and in the interest of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Trust Agreement.  Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties under this Trust Agreement and the other Basic Documents to the extent that the Seller or the Administrator shall have agreed in the Administration Agreement to perform the duties of the Owner Trustee or the Trust, and the Owner Trustee shall not be responsible for monitoring the 

 

performance of such duties by the Seller or the Administrator nor shall the Owner Trustee be liable for the acts or omissions of the Seller or the Administrator.  In no event shall the Owner Trustee be obligated to assume the duties of the Seller or Administrator in the event of the Seller’s or Administrator’s resignation, removal, insolvency or other incapacity.

	
            Section 4.03
 	
            Action upon Instruction.
 

(a)        Subject to this Article IV and in accordance with the terms of the Basic Documents, holders of a majority of the Certificate Percentage Interest or each class of Certificates may by written instruction direct the Owner Trustee in the management of the Trust.  Such direction may be exercised at any time by written instruction of a majority of the Certificate Percentage Interest or each class of Certificates pursuant to this Article IV.

(b)        Notwithstanding the foregoing, the Owner Trustee shall not be required to take any action hereunder or under any Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the Owner Trustee or is contrary to the terms hereof or of any Basic Document or is otherwise contrary to law.

(c)        Whenever the Owner Trustee is required to decide or is unable to decide between alternative courses of action permitted or required by the terms of this Trust Agreement or under any Basic Document, or in the event that the Owner Trustee is unsure as to the application of any provision of this Trust Agreement or any Basic Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Trust Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting
direction as to the course of action to be adopted and to the extent the Owner Trustee acts in good faith in accordance with any written instructions received from such Certificateholders pursuant to Section 4.03(a) above, the Owner Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received appropriate instruction within 10 days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action not inconsistent with this Trust Agreement or the Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and the Owner Trustee shall have no liability to any Person for such action or inaction.

Section 4.04     No Duties Except as Specified under Specified Documents or in Instructions.  The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Owner Trustee is a party, except as expressly required by this Trust Agreement; and no implied duties or obligations shall be read into this Trust Agreement or any Basic Document against the Owner Trustee.  The Owner Trustee shall have no responsibility to prepare or file any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security
interest or lien granted to it 

 

hereunder or to prepare or file any Securities and Exchange Commission filing for the Trust or to record this Trust Agreement or any Basic Document.  The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Owner Trust Estate that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the ownership or the administration of the Owner Trust Estate.

	
            Section 4.05
 	
            Restrictions.
 

(a)        The Owner Trustee shall not take any action (x) that is inconsistent with the purposes of the Trust set forth in Section 2.03 or (y) that, to the actual knowledge of the Owner Trustee, would result in the Trust becoming taxable as a corporation for federal income tax purposes.  The Certificateholders shall not direct the Owner Trustee to take action that would violate the provisions of this Section 4.05.

(b)        The Owner Trustee shall not convey or transfer any of the Trust’s properties or assets, including those included in the Owner Trust Estate, to any person unless (a) it shall have received an Opinion of Counsel to the effect that such transaction will not have any material adverse tax consequence to the Trust or any Certificateholder and (b) such conveyance or transfer shall not violate the provisions of Section 3.15(b) of the Indenture.

Section 4.06     Prior Notice to the Certificateholders with Respect to Certain Matters.  With respect to the following matters, the Owner Trustee shall not take action unless at least 30 days before the taking of such action, the Owner Trustee shall have notified the Certificateholders of the proposed action and the holders of a majority of the Certificate Percentage Interest shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such holders have withheld consent or provided alternative direction:

(a)        the initiation of any claim or lawsuit by the Trust and the compromise of any action, claim or lawsuit brought by or against the Trust;

(b)        the election by the Trust to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Statutory Trust Statute);

(c)        the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is required;

(d)        the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interest of the Certificateholders; and

(e)        the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Trust Administrator or pursuant to this Trust Agreement of a successor Certificate Registrar or Certificate Paying Agent or the consent to the assignment by the Note Registrar, Paying Agent, Trust Administrator, Certificate Registrar or Certificate Paying Agent of its obligations under the Indenture or this Trust Agreement, as applicable.

 

 

Section 4.07     Action by Certificateholders with Respect to Certain Matters.  The Owner Trustee shall not have the power, except upon the direction of the Certificateholders, to (a) remove the Servicers under the Servicing Agreement pursuant to Sections 7.01 and 8.05 thereof or (b) except as expressly provided in the Basic Documents, sell the Loans after the termination of the Indenture.  The Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by the Certificateholders.

Section 4.08     Action by Certificateholder with Respect to Bankruptcy.  The Owner Trustee shall not have the power to commence a voluntary proceeding in bankruptcy relating to the Trust without the prior approval of the Certificateholders and the delivery to the Owner Trustee by each Certificateholder of a certificate certifying that such Certificateholder reasonably believes that the Trust is insolvent.

Section 4.09     Restrictions on Certificateholders’ Power.  The Certificateholders shall not direct the Owner Trustee to take or to refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic Documents or would be contrary to Section 2.03, nor shall the Owner Trustee be obligated to follow any such direction, if given.

Section 4.10     Doing Business in Other Jurisdictions.  Notwithstanding anything contained herein to the contrary, neither Wilmington Trust Company nor the Owner Trustee shall be required to take any action in any jurisdiction other than in the State of Delaware if the taking of such action will, even after the appointment of a co-trustee or separate trustee in accordance with Section 9.05 hereof, (i) require the consent or approval or authorization or order of or the giving of notice to, or the registration with or the taking of any other action in respect of, any state or other governmental authority or agency of any jurisdiction other than the State of Delaware; (ii) result in any fee, tax or other governmental charge under the laws of the State of Delaware becoming payable by Wilmington Trust Company, or
(iii) subject Wilmington Trust Company to personal jurisdiction in any jurisdiction other than the State of Delaware for causes of action arising from acts unrelated to the consummation of the transactions by Wilmington Trust Company or the Owner Trustee, as the case may be, contemplated hereby.

ARTICLE V

 

APPLICATION OF TRUST FUNDS

	
            Section 5.01
 	
            Distributions.
 

(a)        On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class G Certificate Distribution Amount with respect to such Payment Date to the holders of the Class G Certificates.  On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class A-R Certificate Distribution Amount with respect to such Payment Date to the holders of the Class A-R Certificates.  On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class A-RL Certificate Distribution Amount with respect to such Payment Date to the holders of the Class A-R Certificates. On each Payment Date, the Certificate Paying Agent 

 

shall distribute from amounts on deposit in the Certificate Distribution Account, the Class P Certificate Distribution Amount with respect to such Payment Date to the holders of the Class P Certificates. On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class A-RL Certificate Distribution Amount with respect to such Payment Date to the holders of the Class A-R Certificates.  On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class X-1 Distribution Amount with respect to such Payment Date to the holders of the Class X-1 Certificates.  On each Payment Date, the Certificate Paying Agent shall distribute from amounts on deposit in the Certificate Distribution Account, the Class X-S Certificate Distribution
Amount with respect to such Payment Date to the holders of the Class X-S Certificates.  In the event that there are any funds remaining in the Certificate Distribution Account on any Payment Date after the distribution of the Class G Certificate Distribution Amount, the Class A-R Certificate Distribution Amount, the Class A-RL Certificate Distribution Amount, the Class P Certificate Distribution Amount, the Class X-1 Distribution Amount and the Class X-S Certificate Distribution Amount, such amounts shall be distributed to the holders of  the Class A-R Certificates.  

(b)        In the event that any withholding tax is imposed on the distributions (or allocations of income) to the Certificateholders, such tax shall reduce the amount otherwise distributable to the Certificateholders in accordance with this Section 5.01.  The Certificate Paying Agent is hereby authorized and directed to retain or cause to be retained from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any tax that is legally owed by the Trust (but such authorization shall not prevent the Owner Trustee from contesting any such tax in appropriate proceedings, and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings).  The amount of any withholding tax imposed with respect to any Certificateholder shall be treated as cash distributed to such Certificateholder
at the time it is withheld by the Certificate Paying Agent.  The amount of any such withholding tax shall be remitted by the Certificate Paying Agent, as required, to the appropriate taxing authority.  If there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a non-U.S. Certificateholder), the Certificate Paying Agent may in its sole discretion withhold such amounts in accordance with this paragraph (b).

(c)        Distributions to the Certificateholders shall be subordinated to the creditors of the Trust, including the Noteholders.

(d)        Allocations of profits, income and losses, as determined for federal income tax purposes, shall be made among the Classes R Certificates in accordance with the REMIC provisions and within each Class of Certificates to the Certificateholders on a pro rata basis based on the Certificate Percentage Interests thereof.

(e)        For federal income tax purposes, distributions on the REMIC I Regular Interests and REMIC II Regular Interests shall be in the same priority and for the same amounts as that provided in Section 11.02 of the Indenture.

Section 5.02     Method of Payment.  Subject to Section 8.01(c), distributions required to be made to the Certificateholders on any Payment Date as provided in Section 5.01 shall be made to the Certificateholders of record on the preceding Record Date by wire transfer, in immediately 

 

available funds, to the account of each Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholders shall have provided to the Certificate Registrar appropriate written instructions at least five Business Days prior to such Payment Date or, if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register.

Section 5.03     Signature on Returns.  The REMIC Administrator, as agent for the Owner Trustee, shall sign on behalf of the Trust the tax returns of REMIC I, REMIC II and REMIC III.  The Owner Trustee shall give the REMIC Administrator all such powers of attorney as are needed to enable the REMIC Administrator to prepare and sign such tax returns. 

Section 5.04     Statements to Certificateholders.  On each Payment Date, the Certificate Paying Agent shall make available on its website the statement or statements provided to the Owner Trustee and the Certificate Paying Agent by the Trust Administrator.

Section 5.05     Tax Elections.  Each Certificateholder agrees by its purchase of a Certificate to treat the Trust, other than the portion of the Trust Estate constituting the REMICs, as a domestic eligible entity with a single owner electing to be disregarded as a separate entity for purposes of federal and state income tax, franchise tax and any other tax measured in whole or in part by income, with the Notes being debt of the Trust, as further set forth in Section 2.06.  For income tax purposes the parties hereto intend that the transaction set forth herein shall not be a taxable event.

ARTICLE VI

 

CONCERNING THE OWNER TRUSTEE

Section 6.01     Acceptance of Trusts and Duties.  The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon the terms of this Trust Agreement.  The Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys actually received by it constituting part of the Owner Trust Estate upon the terms of the Basic Documents and this Trust Agreement.  The Owner Trustee shall not be answerable or accountable hereunder or under any Basic Document under any circumstances, except (i) for its own willful misconduct, gross negligence or bad faith or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 6.03 expressly made by the Owner Trustee.  In particular, but not by way of limitation
(and subject to the exceptions set forth in the preceding sentence):

(a)        No provision of this Trust Agreement or any Basic Document shall require the Owner Trustee to expend or risk funds or otherwise incur any financial liability in the performance of any of its rights, duties or powers hereunder or under any Basic Document if the 

 

Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;

(b)        Under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any of the Basic Documents, including the principal of and interest on the Notes;

(c)        The Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Trust Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate, or for or in respect of the validity or sufficiency of the Basic Documents, the Notes, or the Certificates, other than the certificate of authentication on the Certificates, if executed by the Owner Trustee and the Owner Trustee shall in no event assume or incur any liability, duty, or obligation to any Noteholder or to any Certificateholder, other than as expressly provided for herein or expressly agreed to in the Basic Documents;

(d)        The execution, delivery, authentication and performance by it of this Trust Agreement will not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action with respect to, any governmental authority or agency;

(e)        The Owner Trustee shall not be liable for the default or misconduct of the Depositor, Trust Administrator, Indenture Trustee or the Servicers under any of the Basic Documents or otherwise and the Owner Trustee shall have no obligation or liability to perform the obligations of the Trust under this Trust Agreement or the Basic Documents that are required to be performed by the Indenture Trustee or Trust Administrator under the Indenture, the Master Servicer under the Servicing Agreement or the Seller or the Administrator under the Administration Agreement; and

(f)         The Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it or duties imposed by this Trust Agreement, or to institute, conduct or defend any litigation under this Trust Agreement or otherwise or in relation to this Trust Agreement or any Basic Document, at the request, order or direction of the Certificateholders, unless the Certificateholders have offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby.  The right of the Owner Trustee to perform any discretionary act enumerated in this Trust Agreement or in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable for other than its gross negligence, bad faith or willful misconduct
in the performance of any such act.

Section 6.02     Furnishing of Documents.  The Owner Trustee shall furnish to the Securityholders promptly upon receipt of a written reasonable request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Trust under the Basic Documents.

Section 6.03    Representations and Warranties.  The Owner Trustee hereby represents and warrants to the Depositor, for the benefit of the Certificateholders, that:

 

 

(a)        It is a banking corporation duly organized and validly existing in good standing under the laws of the State of Delaware.  It has all requisite corporate power and authority to execute, deliver and perform its obligations under this Trust Agreement;

(b)        It has taken all corporate action necessary to authorize the execution and delivery by it of this Trust Agreement, and this Trust Agreement will be executed and delivered by one of its officers who is duly authorized to execute and deliver this Trust Agreement on its behalf;

(c)        Neither the execution nor the delivery by it of this Trust Agreement, nor the consummation by it of the transactions contemplated hereby nor compliance by it with any of the terms or provisions hereof will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute any default under its charter documents or bylaws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound;

(d)        This Trust Agreement, assuming due authorization, execution and delivery by the Depositor, constitutes a valid, legal and binding obligation of the Owner Trustee, enforceable against it in accordance with the terms hereof subject to applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law;

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

(f)         No litigation is pending or, to the best of the Owner Trustee’s knowledge, threatened against the Owner Trustee which would prohibit its entering into this Trust Agreement or performing its obligations under this Trust Agreement.

	
            Section 6.04
 	
            Reliance; Advice of Counsel.
 

(a)        The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect.  As to any fact or matter the method of determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers of the relevant party, as
to such fact or matter and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

 

(b)        In the exercise or administration of the Trust hereunder and in the performance of its duties and obligations under this Trust Agreement or the Basic Documents, the Owner Trustee (i) may act directly or through its agents, attorneys, custodians or nominees (including persons acting under a power of attorney) pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents, attorneys, custodians or nominees (including persons acting under a power of attorney) if such persons have been selected by the Owner Trustee with reasonable care, and (ii) may consult with counsel, accountants and other skilled persons to be selected with reasonable care and employed by it at the expense of the Trust.  The Owner Trustee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the opinion or advice of any such counsel, accountants or other such Persons.

Section 6.05     Not Acting in Individual Capacity.  Except as provided in this Article VI, in accepting the trusts hereby created Wilmington Trust Company acts solely as Owner Trustee hereunder and not in its individual capacity, and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by this Trust Agreement or any Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof.

Section 6.06     Owner Trustee Not Liable for Certificates or Related Documents.  The recitals contained herein and in the Certificates (other than the signatures of the Owner Trustee on the Certificates) shall not be taken as the statements of the Owner Trustee, and the Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as to the validity or sufficiency of this Trust Agreement, of any Basic Document or of the Certificates (other than the signatures of the Owner Trustee on the Certificates) or the Notes, or of any Related Documents.  The Owner Trustee shall at no time have any responsibility or liability with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to the Certificateholders under this
Trust Agreement or the Noteholders under the Indenture, including, the compliance by the Depositor or the Seller with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation, or any action of the Certificate Paying Agent, the Certificate Registrar, the Trust Administrator or the Indenture Trustee taken in the name of the Owner Trustee.

Section 6.07     Owner Trustee May Own the Certificates and the Notes.  The Owner Trustee in its individual or any other capacity may become the owner or pledgee of the Certificates or the Notes and may deal with the Depositor, the Seller, the Certificate Paying Agent, the Certificate Registrar, the Trust Administrator and the Indenture Trustee in transactions with the same rights as it would have if it were not Owner Trustee.

ARTICLE VII

 

COMPENSATION OF OWNER TRUSTEE

Section 7.01     Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof (the “Owner Trustee Fee”) from the Seller, and the Owner Trustee shall be reimbursed for its reasonable expenses hereunder and under the Basic Documents, including the reasonable 

 

compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may reasonably employ in connection with the exercise and performance of its rights and its duties hereunder and under the Basic Documents which shall be payable by the Seller.

Section 7.02     Indemnification.  The Seller, the Depositor and the Trust (on a joint and several basis) shall indemnify, defend and hold harmless the Owner Trustee, both as Owner Trustee and in its individual capacity, and its successors, assigns, agents and servants (collectively, the “Indemnified Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses) of any kind and nature whatsoever (collectively, “Expenses”) which may at any time be imposed on, incurred by, or asserted against the Owner Trustee or any Indemnified Party in any way relating to or arising out of this Trust Agreement, the Basic Documents, the Owner Trust Estate,
the administration of the Owner Trust Estate or the action or inaction of the Owner Trustee hereunder, provided, that:

(i)         the Seller, the Depositor, and the Trust shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from the Owner Trustee’s willful misconduct, gross negligence or bad faith or as a result of any inaccuracy of a representation or warranty contained in Section 6.03 expressly made by the Owner Trustee;

(ii)         with respect to any such claim, the Indemnified Party shall have given the Seller, the Depositor, and the Trust written notice thereof promptly after the Indemnified Party shall have actual knowledge thereof;

(iii)        while maintaining control over its own defense, the Seller shall consult with the Indemnified Party in preparing such defense; and

(iv)        notwithstanding anything in this Trust Agreement to the contrary, the Seller, the Depositor, and the Trust shall not be liable for settlement of any claim by an Indemnified Party entered into without the prior consent of the Seller, the Depositor, or the Trust, as applicable, which consent shall not be unreasonably withheld.

The indemnities contained in this Section shall survive the resignation or removal of the Owner Trustee or the termination of this Trust Agreement.  In the event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section 7.02, the Owner Trustee’s choice of legal counsel, if other than the legal counsel retained by the Owner Trustee in connection with the execution and delivery of this Trust Agreement, shall be subject to the approval of the Seller, which approval shall not be unreasonably withheld.  In addition, upon written notice to the Owner Trustee and with the consent of the Owner Trustee which consent shall not be unreasonably withheld, the Seller has the right to assume the defense of any claim, action or proceeding against the Owner Trustee.

 

 

ARTICLE VIII

 

TERMINATION OF TRUST AGREEMENT

	
            Section 8.01
 	
            Termination of Trust Agreement.
 

 

(a)        The Trust shall dissolve upon the earlier of (i) the final distribution of all moneys or other property or proceeds of the Owner Trust Estate in accordance with the terms of the Indenture and this Trust Agreement or (ii) the Final Maturity Date.  The bankruptcy, liquidation, dissolution, death or incapacity of a Certificateholder shall not (x) operate to terminate this Trust Agreement or the Trust or (y) 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 all or any part of the Trust or the Owner Trust Estate or (z) otherwise affect the rights, obligations and liabilities of the parties hereto.

(b)        Neither the Depositor nor any Certificateholder shall be entitled to revoke or terminate the Trust.

(c)        Notice of any dissolution of the Trust, specifying the Payment Date upon which the Certificateholders shall surrender its Certificate to the Certificate Paying Agent for payment of the final distribution and cancellation, shall be given by the Certificate Paying Agent by letter to the Certificateholders mailed within five Business Days of receipt of notice of such dissolution from the Owner Trustee, stating (i) the Payment Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the Certificate Paying Agent therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the Certificates at the
office of the Certificate Payment Agent therein specified.  The Certificate Paying Agent shall give such notice to the Owner Trustee and the Certificate Registrar at the time such notice is given to the Certificateholders.  Upon presentation and surrender of the Certificates, the Certificate Paying Agent shall cause to be distributed to the Certificateholders amounts distributable on such Payment Date pursuant to Section 5.01.

In the event that a Certificateholder shall not surrender its Certificate for cancellation within six months after the date specified in the above mentioned written notice, the Certificate Paying Agent shall give a second written notice to such Certificateholder to surrender the Certificate for cancellation and receive the final distribution with respect thereto.  Subject to applicable laws with respect to escheat of funds, if within one year following the Payment Date on which final payment of such Certificate was to have been made pursuant to Section 5.01, such Certificate shall not have been surrendered for cancellation, the Certificate Paying Agent may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of such Certificate, and the cost thereof shall be paid out of the funds and other assets
that shall remain subject to this Trust Agreement.  Any funds remaining in the Certificate Distribution Account after exhaustion of such remedies shall be distributed by the Certificate Paying Agent to the Class G Certificateholder.

(d)        Upon the completion of the winding up of the Trust and notification to the Owner Trustee from the Servicer, who shall be responsible for liquidating the Trust, as to the satisfaction of the obligations of the Trust, the Owner Trustee shall cause the Certificates of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810(c) of the Statutory Trust Statute, upon which filing the Trust shall terminate.

 

 

	
            Section 8.02
 	
            Additional Termination Requirements.
 

(a)        REMIC I, REMIC II and REMIC III shall be terminated in accordance with the additional requirements set forth in Section 10.22 of the Indenture.

(b)        Each Holder of a Security and the Owner Trustee hereby irrevocably approves and appoints the Trust Administrator as its attorney-in-fact to adopt a plan of complete liquidation prepared by the Depositor for each REMIC at the expense of the Trust Estate in accordance with the terms and conditions of this Agreement.

ARTICLE IX

 

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 9.01    Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be a corporation satisfying the provisions of Section 3807(a) of the Statutory Trust Statute; authorized 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 authorities; and having (or having a parent that has) long term debt obligations with a rating of at least A (or the equivalent) by Standard & Poor’s, Fitch and/or Moody’s.  If such corporation shall publish reports of condition at least annually pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose 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 Owner Trustee shall cease to be eligible in accordance with the provisions of this Section 9.01, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 9.02.

Section 9.02     Replacement of Owner Trustee.  The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving 30 days prior written notice thereof to the Depositor and the Trust Administrator.  Upon receiving such notice of resignation, the Trust Administrator shall promptly appoint a successor Owner Trustee, by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and to the successor Owner Trustee.  If no successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee or any Certificateholder may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.

If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 9.01 and shall fail to resign after written request therefor by the Trust Administrator, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Depositor shall remove the Owner Trustee.  If the Depositor shall remove the Owner Trustee under the authority of the immediately preceding sentence, the Depositor shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of which instrument 

 

shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee, and shall pay all fees owed to the outgoing Owner Trustee.

Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to the outgoing Owner Trustee.

Section 9.03     Successor Owner Trustee.  Any successor Owner Trustee appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the Depositor and to its predecessor Owner Trustee an instrument accepting such appointment under this Trust Agreement, and thereupon the resignation or removal of the predecessor Owner Trustee shall become effective, and such successor Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Trust Agreement, with like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall deliver to the successor Owner Trustee all documents and statements and monies held by it under this Trust Agreement; and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and obligations.

No successor Owner Trustee shall accept appointment as provided in this Section 9.03 unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 9.01.

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section 9.03, the successor Owner Trustee shall mail notice thereof to all Certificateholders, the Trust Administrator, the Noteholders and the Rating Agencies.

Section 9.04     Merger or Consolidation of Owner Trustee.  Any Person into which the Owner Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, without the execution or filing of any instrument or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, that such Person shall be eligible pursuant to Section 9.01 and, provided, further, that the Owner Trustee shall mail notice of such merger or consolidation to the Rating Agencies.

Section 9.05     Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provisions of this Trust Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate may at the time be located, the Owner Trustee shall have the power and shall execute and deliver all instruments to appoint one or more Persons to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or trustees, of all or any part of the Owner Trust Estate, and to vest in such Person, in such capacity, such title to the Owner Trust Estate or any part thereof and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Owner Trustee 

 

may consider necessary or desirable.  No co-trustee or separate trustee under this Trust Agreement shall be required to meet the terms of eligibility as a successor Owner Trustee pursuant to Section 9.01 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 9.03.

Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions:

(a)        All rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and exercised or performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed, the Owner 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 Owner Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee;

(b)        No trustee under this Trust Agreement shall be personally liable by reason of any act or omission of any other trustee under this Trust Agreement; and

(c)        The Owner Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

Any notice, request or other writing given to the Owner 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 Trust Agreement and the conditions of this Article.  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 Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Trust Agreement, specifically including every provision of this Trust Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the Owner Trustee.

Any separate trustee or co-trustee may at any time appoint the Owner Trustee as 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 Trust 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 Owner Trustee, to the extent permitted by law, without the appointment of a new or successor co-trustee or separate trustee.

 

 

ARTICLE X

 

MISCELLANEOUS

	
            Section 10.01
 	
            Amendments.
 

(a)        This Trust Agreement may be amended from time to time by the parties hereto as specified in this Section 10.01, provided that any amendment, except as provided in subparagraph (e) below, be accompanied by an Opinion of Counsel, to the Owner Trustee to the effect that such amendment (i) complies with the provisions of this Section or (ii) will not cause the Trust to be subject to an entity level tax or cause any of REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC for federal income tax purposes.

(b)        If the purpose of the amendment (as detailed therein) is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered (i.e. to give effect to the intent of the parties), it shall not be necessary to obtain the consent of the Certificateholders, but the Owner Trustee shall be furnished with (A) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes and (B) an Opinion of Counsel to the effect that such action will not adversely affect in any material respect the interests of any Certificateholder shall be obtained.

(c)        If the purpose of the amendment is to prevent the imposition of any federal or state taxes at any time that any Security is outstanding (i.e. technical in nature), it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with an Opinion of Counsel that such amendment is necessary or helpful to prevent the imposition of such taxes and is not materially adverse to any Securityholder.

(d)        If the purpose of the amendment is to add or eliminate or change any provision of the Trust Agreement other than as contemplated in (b) and (c) above, the amendment shall require (A) an Opinion of Counsel to the effect that such action will not adversely affect in any material respect the interests of any Securityholder and (B) either (a) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes or (b) the consent of the Certificateholders and the Trust Administrator; provided, however, that no such amendment shall reduce in any manner the amount of, or delay the timing of, payments received that are required to be distributed on the Certificates without the consent of the Certificateholders.

(e)        If the purpose of the amendment is to provide for the holding of the Certificates in book-entry form, it shall require the consent of the Certificateholders; provided, that the Opinion of Counsel specified in subparagraph (a) above shall not be required.

(f)         If the purpose of the amendment is to provide for the issuance of additional certificates representing an interest in the Trust, it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with (A) an Opinion of Counsel to the effect that such action will not adversely affect in any material respect the interests of any Securityholder and (B) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to of the Notes.

 

 

(g)        Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to the Certificateholders, the Trust Administrator and each of the Rating Agencies.  It shall not be necessary for the consent of the Certificateholders or the Trust Administrator pursuant to this Section 10.01 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.  The manner of obtaining such consents (and any other consent of the Certificateholders provided for in this Trust Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by the Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.

(h)        In connection with the execution of any amendment to any agreement to which the Trust is a party, other than this Trust Agreement, the Owner Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel to the effect that such amendment is authorized or permitted by the documents subject to such amendment and that all conditions precedent in the Basic Documents for the execution and delivery thereof by the Trust or the Owner Trustee, as the case may be, have been satisfied.

Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary of State of the State of Delaware.

Section 10.02   No Legal Title to Owner Trust Estate.  The Certificateholders shall not have legal title to any part of the Owner Trust Estate.  The Certificateholders shall be entitled to receive distributions with respect to their undivided beneficial interest therein only in accordance with Articles V and VIII.  No transfer, by operation of law or otherwise, of any right, title or interest of the Certificateholders to and in their beneficial interest in the Owner Trust Estate shall operate to terminate this Trust Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Owner Trust Estate.

Section 10.03   Limitations on Rights of Others.  The provisions of this Trust Agreement are solely for the benefit of the Owner Trustee, the Depositor, the Certificateholders, and, to the extent expressly provided herein, the Seller, the Indenture Trustee, the Trust Administrator and the Noteholders, and nothing in this Trust Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this Trust Agreement or any covenants, conditions or provisions contained herein.

	
            Section 10.04
 	
            Notices.
 

(a)        Unless otherwise expressly specified or permitted by the terms hereof, all notices shall be in writing and shall be deemed given upon receipt, if to the Owner Trustee, addressed to Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, with a copy to U.S. Bank National Association, Structured Finance, 60 Livingston Avenue, EP-MN-WS3D, St. Paul, Minnesota 55107, Attn:  Structured Finance-Home Equity Mortgage Trust 2005-HF1; if to the Trust Administrator, addressed to, JPMorgan Chase Bank, N.A., 4 New York Plaza, 6th Floor, New York, New York 10004-2477, Attention: 

 

Worldwide Securities Services/Structured Finance Services: Home Equity Mortgage Trust-2005-HF1, if to the Depositor, addressed to Credit Suisse First Boston Mortgage Acceptance Corp., 11 Madison Avenue, 4th Floor, New York, New York 10010-3629; if to the Rating Agencies, addressed to Moody’s Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007 and to Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., 55 Water Street, New York, NY 10041; or, as to each party, at such other address as shall be designated by such party in a written notice to each other party.

(b)        Any notice required or permitted to be given to a Certificateholder shall be given by first-class mail, postage prepaid, at the address of such Certificateholder as shown in the Certificate Register.  Any notice so mailed within the time prescribed in this Trust Agreement shall be conclusively presumed to have been duly given, whether or not such Certificateholder receives such notice.

(c)        A copy of any notice delivered to the Owner Trustee or the Trust shall also be delivered to the Depositor.

Section 10.05   Severability.  Any provision of this Trust Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 10.06   Separate Counterparts.  This Trust Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

Section 10.07   Successors and Assigns.  All representations, warranties, covenants and agreements contained herein shall be binding upon, and inure to the benefit of, each of the Depositor, the Owner Trustee and its successors and the Certificateholders and their respective successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind the successors and assigns of such Certificateholder.

Section 10.08   No Petition.  The Owner Trustee, by entering into this Trust Agreement and each Certificateholder, by accepting a Certificate, hereby covenants and agrees that they will not, prior to the day that is one year and one day after the date this Trust Agreement terminates, institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations under the Certificates, the Notes, this Trust Agreement or any of the Basic Documents.

Section 10.09   No Recourse.  Each Certificateholder by accepting a Certificate acknowledges that the Certificates represent beneficial interests in the Trust only and do not represent interests in or obligations of the Depositor, the Seller, the Owner Trustee, the Trust Administrator, the Indenture Trustee or any Affiliate thereof and no recourse may be had against 

 

such parties or their assets, except as may be expressly set forth or contemplated in this Trust Agreement, the Certificates or the Basic Documents.

Section 10.10   Headings.  The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

Section 10.11   GOVERNING LAW.  THIS TRUST AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 10.12   Integration.  This Trust Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understanding pertaining thereto.

Section 10.13   Intention of the Parties.  (a)  It is the express intent of the parties hereto that the conveyance by the Depositor to the Trust pursuant to this Trust Agreement of the Owner Trust Estate be, and be construed as, an absolute sale and assignment by the Depositor to the Trust.  Further, it is not intended that the conveyance be deemed to be the grant of a security interest in the Loans by the Depositor to the Trust to secure a debt or other obligation.  However, in the event that the Loans are held to be property of the Depositor, or if for any reason this Trust Agreement is held or deemed to create a security interest in the Loans, then (i) this Trust Agreement shall be a security agreement within the meaning of Article 9 of the UCC; (ii) the conveyances provided for in Section 3.01 shall be deemed to be a
grant by the Depositor to the Trust of, and the Depositor hereby grants to the Trust, a security interest in all of the Depositor’s right, title and interest, whether now owned or hereafter acquired, in and to (A) the Owner Trust Estate; (B) all accounts, chattel paper, deposit accounts, documents, general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals, consisting of, arising from, or relating to, any of the foregoing; and (C) all proceeds of any of the foregoing; (iii) the possession or control by the Trust or any other agent of the Trust of any of the foregoing property shall be deemed to be possession or control by the secured party, or possession or control by a purchaser, for purposes of perfecting the security interest pursuant to the UCC (including, without limitation, Sections 9-104, 9-106, 9-313 or 9-314 thereof); and (iv) 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, securities intermediaries, bailees or agents of, or persons holding for, the Trust, as applicable, for the purpose of perfecting such security interest under applicable law.

(b)        The parties hereto, shall, to the extent consistent with this Trust Agreement, take such reasonable actions as may be necessary to ensure that, if this Trust Agreement were deemed to create a security interest in the Loans, such security interest would be deemed to be a perfected security interest of first priority.

 

 

 

IN WITNESS WHEREOF, the Depositor and the Owner 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.

	
            CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP., as Depositor
 
	
             
 	
             
 
	
            By:
 	
            /s/ Kevin Steele
 
	
            Name:
 	
            Kevin Steele
 
	
            Title:
 	
            Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
            WILMINGTON TRUST COMPANY, 
 as Owner Trustee
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Patricia Evans
 
	
            Name:
 	
            Patricia Evans
 
	
            Title:
 	
            Vice President
 

 

Acknowledged and Agreed:

	
            JPMORGAN CHASE BANK, N.A.,
 as Certificate Registrar, REMIC Administrator,

Certificate Paying Agent and Trust Administrator
 
	
             
 	
             
 
	
            By:
 	
            /s/ Annette Marsula
 
	
            Name:
 	
            Annette Marsula
 
	
            Title:
 	
            Vice President
 
	
             
 	
             
 
	
             
 	
             
 
	
            DLJ MORTGAGE CAPITAL INC.,
 as Seller
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
            /s/ Tim Kuo
 
	
            Name:
 	
            Tim Kuo
 
	
            Title:
 	
            Vice President
 

 

 

 

EXHIBIT A

 

FORM OF CLASS X-[1][2][S] CERTIFICATES

[THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE NOTES AS DESCRIBED IN THE TRUST AGREEMENT DATED AS OF NOVEMBER 4, 2005, BETWEEN CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP. AND WILMINGTON TRUST COMPANY (THE “AGREEMENT”).][THIS CERTIFICATE HAS NO PRINCIPAL BALANCE AND IS NOT ENTITLED TO ANY PAYMENTS IN RESPECT OF PRINCIPAL.]

THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT UPON SATISFACTION OF THE CONDITIONS IN SECTION 3.05 OF THE AGREEMENT.

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 STATE LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER SUCH STATE LAWS AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED EITHER (i) A REPRESENTATION LETTER IN THE FORM OF EXHIBIT F TO THE AGREEMENT FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION RESTRICTIONS AND THE FIDUCIARY RESPONSIBILITY REQUIREMENTS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON USING “PLAN ASSETS,” WITHIN THE MEANING OF THE DEPARTMENT OF LABOR REGULATIONS SECTION 2510.3-101, TO ACQUIRE THIS CERTIFICATE (COLLECTIVELY A “PLAN INVESTOR”), OR (ii) IF THIS CERTIFICATE IS PRESENTED FOR REGISTRATION IN THE NAME
OF A PLAN INVESTOR, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE DEPOSITOR, THE OWNER TRUSTEE, THE MASTER SERVICER AND THE CERTIFICATE REGISTRAR, OR A CERTIFICATION IN THE FORM OF EXHIBIT F TO THE AGREEMENT, TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) AND WILL NOT SUBJECT THE DEPOSITOR, THE OWNER TRUSTEE, THE MASTER SERVICER OR THE CERTIFICATE REGISTRAR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE SELLER, THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR OR ANY OF THEIR RESPECTIVE AFFILIATES.

 

 

 

	
 
 

            Certificate No. 1
 	
            Interest Rate: [Variable][0.00%]
 
	
            Cut-off Date:
 	
            [Initial Notional Amount: $[_________]]

Initial Class Principal Balance: $0.00
 
	
            October 1, 2005
 	
            Assumed Final Payment Date: February 2036
 
	
            First Payment Date:
 	
            Certificate Percentage Interest of this Certificate: 100%
 
	
            November 25, 2005
 	
            CUSIP:  
 

 

Home Equity Mortgage Trust 2005-HF1, 

Home Equity Loan-Backed Certificate, Series 2005-HF1, Class X-[1][2][S]

 

evidencing a percentage interest in [the distribution allocable to the certificates of the above-referenced Class with respect to a Trust Estate evidenced by the loans created by CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP. (hereinafter called the “Depositor” which term includes any successor entity under the Agreement referred to below)][the distribution allocable to the Certificates of the above-referenced Class with respect to certain Loans (the “Loans”)].

This Certificate is payable solely from [certain Loans that are initially][the] assets of the Trust Estate, and does not represent an obligation of or interest in the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  Neither this Certificate nor any of the Loans is guaranteed or insured by any governmental agency or instrumentality or by the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  None of the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee, 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 Certificate Percentage Interest evidenced by this Certificate (as set forth on the face hereof) in certain distributions with respect to the Trust Estate, consisting primarily of the Loans conveyed by the Depositor.  The Trust Estate (as defined herein) was created pursuant to a Trust Agreement dated November 4, 2005 (as amended and supplemented from time to time, the “Agreement”) between the Depositor and Wilmington Trust Company, as owner trustee (the “Owner Trustee,” which term includes any successor entity under the Agreement), 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 the 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 “Payment Date”), commencing on the first Payment Date specified above, to the Person in whose name this Certificate is registered at the close of business on the last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the month immediately preceding the month of such distribution (the “Record Date”)[, in an amount equal to the pro rata portion evidenced by this Certificate (based on the Certificate Percentage Interest stated on the face hereof) of the Class X-[1][S] Certificate Distribution Amount required to be distributed to the registered holder of this Certificate on such Payment Date].  Distributions on this Certificate will be
made as provided in the Agreement by the Certificate Paying Agent by wire transfer or check mailed to the Certificateholders of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.

Except as otherwise provided in the Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Certificate Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency maintained by the Certificate Registrar for that purpose in the City and State of New York.

No transfer of this 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 Certificate Registrar or the Depositor may require an opinion of counsel acceptable to and in form and substance satisfactory to the Certificate Registrar and the Depositor 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 shall execute an investment letter in the form described in the Agreement and (iii) the Certificate Registrar shall require the transferee to execute an investment
letter in the form described by the Agreement, which investment letter shall not be at the expense of the Trust, the Owner Trustee, the Certificate Registrar or the Depositor.  If a Certificateholder desires to effect such transfer, it shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the Depositor, the Servicers, the Master Servicer, the Trust Administrator and the Certificate Registrar 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 transfer of this Certificate, the Certificate Registrar (unless otherwise directed by the Depositor) will require either (i) a representation letter, in the form of Exhibit F to the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction restrictions or the fiduciary responsibility requirements of ERISA or Section 4975 of the Code (“Plan”), any person
acting, directly or indirectly, on behalf of any such plan or any person using the “plan assets,” within the meaning of the Department of Labor regulations at 29 C.F.R. §2510.3-101, to effect such acquisition (collectively, a “Plan Investor”) or (ii) if such transferee is a Plan Investor, an opinion of counsel acceptable to and in form and substance satisfactory to the Depositor, the Owner Trustee, the Master Servicer and the Certificate Registrar to the effect that the purchase or holding of this Certificate is permissible under applicable law, will not constitute or result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable 

 

provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate Registrar to any obligation or liability in addition to those undertaken in the Agreement.

This Certificate is one of a duly authorized Certificate designated as Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Class X-[1][2][S], of the Series specified hereon.  All terms used in this Certificate which are defined in the Agreement shall have the meanings assigned to them in the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the [funds on deposit in the Certificate Distribution Account that have been released from the Lien of the Indenture][Loans] for payment hereunder and that neither the Owner Trustee in its individual capacity nor the Depositor is personally liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

[The Certificateholder acknowledges and agrees that its rights to receive distributions in respect of this Certificate are subordinated to the rights of the Noteholders as described in the Indenture, dated as of November 4, 2005, between Home Equity Mortgage Trust 2005-HF1 (the “Trust”), JPMorgan Chase Bank, as Trust Administrator (the “Trust Administrator”) and U.S. Bank National Association, as Indenture Trustee (the “Indenture”).]

The Certificateholder, by its acceptance of this Certificate, covenants and agrees that such Certificateholder will not, prior to the day one year and one day after the date the Trust Agreement terminates, institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Certificates, the Notes, the Agreement or any of the Basic Documents.

The Agreement permits the amendment thereof as specified below, provided that any amendment be accompanied by an Opinion of Counsel to the Owner Trustee to the effect that such amendment complies with the provisions of the Agreement and will not cause the Trust to be subject to an entity level tax.  If the purpose of the amendment is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered, it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes.  If the purpose of the amendment is to prevent the imposition of any federal or state taxes at any time that any Security is outstanding, it shall not be necessary to obtain the consent of
any Securityholder, but the Owner Trustee shall be furnished with an Opinion of Counsel that such amendment is necessary or helpful to prevent the imposition of such taxes and is not materially adverse to any Securityholder.  If the purpose of the amendment is to add or eliminate or change any provision of the Agreement, other than as specified in the preceding two sentences, the amendment shall require either (a) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes or (b) the consent of the Certificateholders and the Trust Administrator; provided, however, that no such amendment 

 

shall (i) reduce in any manner the amount of, or delay the time of, payments received that are required to be distributed on the Certificates without the consent of the Certificateholders, or (ii) reduce the aforesaid Certificate Percentage Interest required to consent to any such amendment without the consent of 100% of the Certificate Percentage Interest.

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 of the Certificate Registrar maintained in the City of and State of New York, accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the registered holder of this Certificate or the such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate Certificate Percentage Interest will be issued to the designated transferee.  The initial Certificate Registrar appointed under the Agreement is the Trust Administrator.

No service charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or the Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Paying Agent, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

This Certificate shall be governed by and construed in accordance with the laws of the State of Delaware.

The obligations created by the Agreement in respect of the Certificates and the Trust created thereby shall terminate upon the earlier of (i) the final distribution of all moneys or other property or proceeds of the Trust Estate in accordance with the terms of the Indenture and the Agreement or (ii) the Final Maturity Date.

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, or an authenticating agent 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 Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Certificate to be duly executed.

	
            Home Equity Mortgage Trust 2005-HF1

 

 

By         WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

Dated: November 4, 2005

CERTIFICATE OF AUTHENTICATION

This is one of the Class X-[1][2][S] Certificates referred to in the within mentioned Agreement.

	
            WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

 

 

 

ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
             
 

(Please print or type name and address, including postal zip code, of assignee)

	
             
 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	
             
 

to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

	
            Dated:
 	
            */
 
	
             
 	
            Signature Guaranteed
 
	
             
 	
             
 
	
             
 	
             
 	
            */
 

 

___________

*/  NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for the information of the Certificate Paying Agent:

	
            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
 	
             
 
						

 

________________________________________

Signature of assignee or agent

(for authorization of wire

transfer only)

 

 

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRUST 

OF

[____________________________________]

THIS Certificate of Trust of [______________] (the “Trust”), is being duly executed and filed by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”).

	
            1.
 	
            Name.  The name of the statutory trust formed hereby is [____________________].
 

2.          Delaware Trustee.  The name and business address of the trustee of the Trust in the State of Delaware is [____________________], Attention:  [________________________].

	
            3.
 	
            Effective Date.  This Certificate of Trust shall be effective [__________________].
 

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance with Section 3811(a) of the Act.

[________________________________],

as trustee

 

By:_______________________________

Name:

Title:

 

 

 

EXHIBIT C

 

FORM OF RULE 144A INVESTMENT REPRESENTATION

DESCRIPTION OF RULE 144A SECURITIES, INCLUDING NUMBERS:

	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 

The undersigned seller, as registered holder (the “Seller”), intends to transfer the Rule 144A Securities described above to the undersigned buyer (the “Buyer”).

1.  In connection with such transfer and in accordance with the agreements pursuant to which the Rule 144A Securities were issued, the Seller hereby certifies the following facts: Neither the Seller nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from, or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would
constitute a distribution of the Rule 144A Securities under the Securities Act of 1933, as amended (the “1933 Act”), or that would render the disposition of the Rule 144A Securities a violation of Section 5 of the 1933 Act or require registration pursuant thereto, and that the Seller has not offered the Rule 144A Securities to any person other than the Buyer or another “qualified institutional buyer” as defined in Rule 144A under the 1933 Act.

2.  The Buyer, pursuant to Section 3.05 of the Agreement, warrants and represents to, and covenants with the Owner Trustee, the Depositor, the Trust Administrator and the Indenture Trustee (as such terms are defined in the Trust Agreement (the “Agreement”), dated as of November 4, 2005 between Credit Suisse First Boston Mortgage Acceptance Corp., as Depositor, and Wilmington Trust Company, as Owner Trustee) as follows:

a.    The Buyer understands that the Rule 144A Securities have not been registered under the 1933 Act or the securities laws of any state.

b.    The Buyer considers itself a substantial, sophisticated institutional investor having such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in the Rule 144A Securities.

c.    The Buyer has been furnished with all information regarding the Rule 144A Securities that it has requested from the Seller, the Trust Administrator, the Indenture Trustee, the Owner Trustee, the Servicers or the Master Servicer.

 

 

d.    Neither the Buyer nor anyone acting on its behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security to, or solicited any offer to buy or accept a transfer, pledge or other disposition of the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security from, or otherwise approached or negotiated with respect to the Rule 144A Securities, any interest in the Rule 144A Securities or any other similar security with, any person in any manner, or made any general solicitation by means of general advertising or in any other manner, or taken any other action, that would constitute a distribution of the Rule 144A Securities under the 1933 Act or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto, nor will it act, nor has it authorized or will it authorize any person to act, in such manner with respect to the Rule 144A Securities.

e.    The Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the 1933 Act and has completed either of the forms of certification to that effect attached hereto as Annex 1 or Annex 2.  The Buyer is aware that the sale to it is being made in reliance on Rule 144A.  The Buyer is acquiring the Rule 144A Securities for its own account or the accounts of other qualified institutional buyers, understands that such Rule 144A Securities may be resold, pledged or transferred only (i) to a person reasonably believed to be a qualified institutional buyer that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from registration under the 1933 Act.

3.  The Buyer represents that:

	
            (i)
 	
            either (a) or (b) is satisfied, as marked below:
 

____                 a.         The Buyer is not any employee benefit or other plan subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), a Person acting, directly or indirectly, on behalf of any such plan or any Person acquiring such Certificates with “plan assets” of a Plan within the meaning of the Department of Labor regulation promulgated at 29 C.F.R. §2510.3-101; or

____                 b.         The Buyer has provided the Depositor, the Owner Trustee, the Certificate Registrar and the Master Servicer with an opinion of counsel, satisfactory to the Depositor, the Owner Trustee, the Certificate Registrar and the Servicer, to the effect that the purchase and holding of a Certificate by or on behalf of the Buyer is permissible under applicable law, will not constitute or result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Certificate Registrar or the Master Servicer to any obligation or liability (including liabilities under ERISA or
Section 4975 of the Code) in addition to those undertaken in the Trust Agreement, which opinion of counsel shall not be an expense of the Depositor, the Owner Trustee, the Certificate Registrar or the Master Servicer; and

 

 

(ii)         the Buyer is familiar with the prohibited transaction restrictions and fiduciary responsibility requirements of Sections 406 and 407 of ERISA and Section 4975 of the Code and understands that each of the parties to which this certification is made is relying and will continue to rely on the statements made in this paragraph 3.

4.  This document may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the same document.

IN WITNESS WHEREOF, each of the parties has executed this document as of the date set forth below.

 

	_________________________	___________________________	 
	
            Print Name of Seller
 	
            Print Name of Buyer
 	
             

	
            By:___________________________
 	
      By:____________________________
 	
             

	
            Name:
 	
            Name
 	
             

	
            Title:
 	
            Title:
 	
             

	
            Taxpayer Identification:
 	
            Taxpayer Identification:
 
	
            No.____________________________
 	
      No.____________________________
 	
             

	
            Date:__________________________
 	
      Date:___________________________
 	
             

					

 

 

ANNEX 1 TO EXHIBIT C

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[For Buyers Other Than Registered Investment Companies]

The undersigned hereby certifies as follows in connection with the Rule 144A Investment Representation to which this Certification is attached:

1.  As indicated below, the undersigned is the President, Chief Financial Officer, Senior Vice President or other executive officer of the Buyer.

2.  In connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because (i) the Buyer owned and/or invested on a discretionary basis $             1 in securities (except for the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Buyer satisfies the criteria in the category marked below.

	
            ____
 	
            Corporation, etc.  The Buyer is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or charitable organization described in Section 501(c)(3) of the Internal Revenue Code.
 
	
            ____
 	
            Bank.  The Buyer (a) is a national bank or banking institution organized under the laws of any state, territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the state or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto.
 
	
            ____
 	
            QIB.  An entity, all of the equity owners of which are “qualified institutional buyers.”
 
	
            ____
 	
            Savings and Loan.  The Buyer (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a state or federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements.
 
	
            ____
 	
            Broker-Dealer.  The Buyer is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.
 

 

_________________________

1               Buyer must own and/or invest on a discretionary basis at least $100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or invest on a discretionary basis at least $10,000,000 in securities.

 

 

 

	
            ____
 	
            Insurance Company.  The Buyer is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a state or territory or the District of Columbia.
 
	
            ____
 	
            State or Local Plan.  The Buyer is a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of the state or its political subdivisions, for the benefit of its employees.
 
	
            ____
 	
            ERISA Plan.  The Buyer is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.
 
	
            ____
 	
            Investment Adviser.  The Buyer is an investment adviser registered under the Investment Advisers Act of 1940.
 
	
            ____
 	
            SBIC.  The Buyer is a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the Small Business Investment Act of 1958.
 
	
            ____
 	
            Business Development Company.  The Buyer is a business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.
 
	
            ____
 	
            Trust Fund.  The Buyer is a trust fund whose trustee is a bank or trust company and whose participants are exclusively (a) plans established and maintained by a state, its political subdivisions, or any agency or instrumentality of the state or its political subdivisions, for the benefit of its employees, or (b) employee benefit plans within the meaning of Title I of the Employee Retirement Income Security Act of 1974, but is not a trust fund that includes as participants individual retirement accounts or H.R. 10 plans.
 

3.  The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer, (ii) securities that are part of an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.

4.  For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Buyer, the Buyer used the cost of such securities to the Buyer and did not include any of the securities referred to in the preceding paragraph.  Further, in determining such aggregate amount, the Buyer may have included securities owned by subsidiaries of the Buyer, but only if such subsidiaries are consolidated with the Buyer in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Buyer’s direction.  However, such securities were not included if the Buyer is a majority-owned, consolidated subsidiary of another enterprise and the Buyer is not itself a reporting company under the Securities Exchange Act of 1934.

 

 

5.  The Buyer acknowledges that it is familiar with Rule 144A and understands that the seller to it and other parties related to the Rule 144A Securities are relying and will continue to rely on the statements made herein because one or more sales to the Buyer may be in reliance on Rule 144A.

	
            ____
 	
            ____
 	
            Will the Buyer be purchasing the Rule 144A
 
	
            Yes
 	
            No 
 	
            Securities only for the Buyer’s own account?
 

6.  If the answer to the foregoing question is “no”, the Buyer agrees that, in connection with any purchase of securities sold to the Buyer for the account of a third party (including any separate account) in reliance on Rule 144A, the Buyer will only purchase for the account of a third party that at the time is a “qualified institutional buyer” within the meaning of Rule 144A.  In addition, the Buyer agrees that the Buyer will not purchase securities for a third party unless the Buyer has obtained a current representation letter from such third party or taken other appropriate steps contemplated by Rule 144A to conclude that such third party independently meets the definition of “qualified institutional buyer” set forth in Rule 144A.

7.  The Buyer will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Buyer’s purchase of Rule 144A Securities will constitute a reaffirmation of this certification as of the date of such purchase.

 

	
            Print Name of Buyer 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 
	
             
 	
             
 
	
            Date:
 	
             
 

 

 

 

ANNEX 2 TO EXHIBIT C

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

[FOR BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

The undersigned hereby certifies as follows in connection with the Rule 144A Investment Representation to which this Certification is attached:

1.  As indicated below, the undersigned is the President, Chief Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”) because Buyer is part of a Family of Investment Companies (as defined below), is such an officer of the Adviser.

2.  In connection with purchases by Buyer, the Buyer is a “qualified institutional buyer” as defined in SEC Rule 144A because (i) the Buyer is an investment company registered under the Investment Company Act of 1940, and (ii) as marked below, the Buyer alone, or the Buyer’s Family of Investment Companies, owned at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Buyer or the Buyer’s Family of Investment Companies, the cost of such securities was used.

	
            ____
 	
            The Buyer owned $        in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).
 
	
            ____
 	
            The Buyer is part of a Family of Investment Companies which owned in the aggregate $_________ in securities (other than the excluded securities referred to below) as of the end of the Buyer’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).
 

3.  The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).

4.  The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Buyer or are part of the Buyer’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.

5.          The Buyer is familiar with Rule 144A and understands that each of the parties to which this certification is made are relying and will continue to rely on the statements made herein because one or more sales to the Buyer will be in reliance on Rule 144A.  In addition, the Buyer will only purchase for the Buyer’s own account.

 

 

6.  The undersigned will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice, the Buyer’s purchase of Rule 144A Securities will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.

 

	
            Print Name of Buyer

 

 

 
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            IF AN ADVISER:
 
	
             
 	
             
 
	
             
 
	
            Print Name of Buyer
 
	
             
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            Date:
 	
             
 

 

 

 

 

EXHIBIT D

 

FORM OF INVESTOR REPRESENTATION LETTER

________, 20_

Credit Suisse First Boston 

  Mortgage Acceptance Corp.

11 Madison Avenue, 4th Floor

New York, New York 10010-3629

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

JPMorgan Chase Bank, N.A.

4 New York Plaza

New York, New York 10004

Attention:  Worldwide Securities Services/Structured Finance Services-Home Equity Mortgage Trust 2005-HF1

	
            Re:
 	
            Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed
 

Certificates, Series 2005-HF1, Class [X-1][X-2][X-S][P][G]

Ladies and Gentlemen:

_____________ (the “Purchaser”) intends to purchase from_________(the “Seller”) _____% Certificate Percentage Interest of the Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [X-1][X-2][X-S][P][G] (the “Certificate”), issued pursuant to the Trust Agreement (the “Trust Agreement”), dated as of November 4, 2005 between Credit Suisse First Boston Mortgage Acceptance Corp. (the “Depositor”) and Wilmington Trust Company, as owner trustee (the “Owner Trustee”), as acknowledged and agreed by JPMorgan Chase Bank, N.A., as Certificate Registrar.  All terms used herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.  The Purchaser hereby certifies, represents and
warrants to, and covenants with, the Depositor and the Certificate Registrar that:

1.  The Purchaser understands that (a) the Certificate has 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 Certificate, (c) the Certificate 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 Trust 

 

Agreement contains restrictions regarding the transfer of the Certificate and (e) the Certificate will bear a legend to the foregoing effect.

2.  The Purchaser is acquiring the Certificate 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 Certificate, such that it is capable of evaluating the merits and risks of investment in the Certificate, (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 Trust Agreement and (b) such other information concerning the Certificate, the 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 Certificate.  The Purchaser has had any questions arising from such review answered by the Depositor or the Seller to the satisfaction of the Purchaser.

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 the Certificates 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 the Certificates, any interest in the Certificates 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 the Certificates under the Act, that would render the disposition
of the Certificates 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 the Certificates, except in compliance with the provisions of the Trust Agreement.

6.  The Purchaser represents:

	
            (iii)
 	
            that either (a) or (b) is satisfied, as marked below:
 

____           a.  The Purchaser is not any employee benefit or other plan subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), a Person acting, directly or indirectly, on behalf of any such plan or any Person acquiring the 

 

Certificate with “plan assets” of a Plan within the meaning of the Department of Labor regulation promulgated at 29 C.F.R. §2510.3-101; or

____           b.  The Purchaser has provided the Depositor, the Owner Trustee, the Certificate Registrar and the Master Servicer with an opinion of counsel, satisfactory to the Depositor, the Owner Trustee, the Certificate Registrar and the Master Servicer, to the effect that the purchase and holding of the Certificate by or on behalf of the Purchaser is permissible under applicable law, will not constitute or result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Certificate Registrar or the Servicer to any obligation or liability (including liabilities under ERISA or Section 4975 of the Code) in addition to those undertaken in the Trust Agreement,
which opinion of counsel shall not be an expense of the Depositor, the Owner Trustee, the Certificate Registrar or the Master Servicer; and

(iv)        the Purchaser is familiar with the prohibited transaction restrictions and fiduciary responsibility requirements of Sections 406 and 407 of ERISA and Section 4975 of the Code and understands that each of the parties to which this certification is made is relying and will continue to rely on the statements made in this paragraph 6.

7.  The Purchaser is not a non-United States person.

	
            Very truly yours,

 

 
 
	
             
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 

 

 

 

 

EXHIBIT E

 

FORM OF TRANSFEROR REPRESENTATION LETTER

_________, 20__

Credit Suisse First Boston 

  Mortgage Acceptance Corp.

11 Madison Avenue

4th Floor

New York, New York 10010-3629

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

JPMorgan Chase Bank, N.A.

4 New York Plaza

New York, New York 10004

Attention: Worldwide Securities Services/Structured Finance Services-Home Equity Mortgage Trust 2005-HF1

	
            Re:
 	
            Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [X-1][X-2][X-S][P][G]
 

 

Ladies and Gentlemen:

______________ (the “Purchaser”) intends to purchase from ________ (the “Seller”) _____% Certificate Percentage Interest of the Home Equity Mortgage Trust 2005-HF1, Home-Equity Loan-Backed Certificates, Series 2005-HF1 Class [X-1][X-2][X-S][P][G] (the “Certificate”), issued pursuant to the Trust Agreement (the “Trust Agreement”), dated as of November 4, 2005 between Credit Suisse First Boston Mortgage Acceptance Corp., as depositor (the “Depositor”) and Wilmington Trust Company, as owner trustee (the “Owner Trustee”), as acknowledged and agreed by JPMorgan Chase Bank, N.A., as certificate registrar (the “Certificate Registrar”).  All terms used herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.  The Seller hereby certifies, represents and warrants to, and covenants with, the
Depositor and the Certificate Registrar that:

Neither the Seller nor anyone acting on its behalf has (a) offered, pledged, sold, disposed of or otherwise transferred the Certificate, any interest in the 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 the Certificate or any other 

 

similar security from any person in any manner, (c) has otherwise approached or negotiated with respect to the Certificate, any interest in the 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 Certificate under the Securities Act of 1933 (the “Act”), that would render the disposition of the 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 the Certificate.  The Seller has not and will not sell or otherwise transfer any of the Certificate, except in compliance with the
provisions of the Trust Agreement.

	
            Very truly yours,

 

 
 
	
             
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 

 

 

EXHIBIT F

 

FORM OF ERISA REPRESENTATION LETTER

____________, 20__

Credit Suisse First Boston

  Mortgage Acceptance Corp.

11 Madison Avenue, 4th Floor

New York, New York 10010-3629

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

JPMorgan Chase Bank, N.A.

as Certificate Registrar

4 New York Plaza

New York, New York 10004

Attention: Worldwide Securities Services/Structured Finance Services-Home Equity Mortgage Trust 2005-HF1

	
            Re:
 	
  Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [X-1][X-2][X-S][P][G] 
 

Dear Sirs:

____________________________ (the “Transferee”) intends to acquire from ______________(the “Transferor”) $_______ of Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [X-1][X-2][X-S][P][G] (the “Certificates”), issued pursuant to a Trust Agreement (the “Trust Agreement”) dated November 4, 2005 among Credit Suisse First Boston Mortgage Acceptance Corp., as depositor (the “Depositor”) and Wilmington Trust Company, as trustee (the “Owner Trustee”).  Capitalized terms used herein and not otherwise defined shall have the meanings assigned thereto in the Trust Agreement.

The Transferee hereby certifies, represents and warrants to, and covenants with, the Depositor, the Owner Trustee, the Certificate Registrar and the Master Servicer that the Certificate (i) is 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. § 2510.3-101, 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. § 2510.3-101; and

(2)        The Transferee is familiar with the prohibited transaction restrictions and fiduciary responsibility requirements of Sections 406 and 407 of ERISA and Section 4975 of the Code and understands that each of the parties to which this certification is made is relying and will continue to rely on the statements made herein.

	
            Very truly yours,

 

 
 
	
             
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 

 

 

 

EXHIBIT G

 

FORM OF CERTIFICATE OF NON-FOREIGN STATUS

This Certificate of Non-Foreign Status is delivered pursuant to Section 3.05 of the Trust Agreement dated as of November 4, 2005 (the “Trust Agreement”), between Credit Suisse First Boston Mortgage Acceptance Corp., as depositor (the “Depositor”), and Wilmington Trust Company, as owner trustee, in connection with the acquisition of, transfer to or possession by the undersigned, whether as beneficial owner (the “Beneficial Owner”), or nominee on behalf of the Beneficial Owner of Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [G][A-R][A-RL]] (the “Certificates”).  Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in the Trust Agreement.

Each holder must complete Part I, Part II (if the holder is a nominee), and in all cases sign and otherwise complete Part III.

In addition, each holder shall submit with the Certificate an IRS Form W-9 relating to such holder.

To confirm to the Trust that the provisions of Sections 871, 881 or 1446 of the Internal Revenue Code (relating to withholding tax on foreign partners) do not apply in respect of the Certificates held by the undersigned, the undersigned hereby certifies:

	
            Part I -
 	
            Complete Either A or B
 	
             

	
             
	
            A.
 	
            Individual as Beneficial Owner
 
				

	
            1.
 	
  I am (the Beneficial Owner is ) not a non-resident alien for purposes of U.S. income taxation;
 

	
             
	
            2.
 	
            My (the Beneficial Owner’s) name and home address are:
 	
             

	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
            ; and
 
					

	
            3.
 	
            My (the Beneficial Owner’s) U.S. taxpayer identification number (Social Security Number) is _______________________.
 

	
            B.
 	
            Corporate, Partnership or Other Entity as Beneficial Owner
 

	
            1.
 	
                                         (Name of the Beneficial Owner) is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Treasury Regulations;
 
	
            2..
 	
  The Beneficial Owner’s office address and place of incorporation (if applicable) is
 

 

 

 

 

	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
            ; and
 

	
            3.
 	
            The Beneficial Owner’s U.S. employer identification number is _______________________ .
 

	
            Part II -
 	
            Nominees
 

If the undersigned is the nominee for the Beneficial Owner, the undersigned certifies that this Certificate has been made in reliance upon information contained in:

	
            ______    an IRS Form W-9
 
	
            ______    a form such as this or substantially similar
 

provided to the undersigned by an appropriate person and (i) the undersigned agrees to notify the Trust at least thirty (30) days prior to the date that the form relied upon becomes obsolete, and (ii) in connection with change in Beneficial Owners, the undersigned agrees to submit a new Certificate of Non-Foreign Status to the Trust promptly after such change.

	
            Part III -
 	
            Declaration
 

The undersigned, as the Beneficial Owner or a nominee thereof, agrees to notify the Trust within sixty (60) days of the date that the Beneficial Owner becomes a foreign person.  The undersigned understands that this certificate may be disclosed to the Internal Revenue Service by the Trust and any false statement contained therein could be punishable by fines, imprisonment or both.

Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief it is true, correct and complete and will further declare that I will inform the Trust of any change in the information provided above, and, if applicable, I further declare that I have the authority* to sign this document.

 

	
            Name

 
 	
             
 
	
            Title (if applicable)

 
 	
             
 
	
            Signature and Date

 
 	
             
 

*NOTE:  If signed pursuant to a power of attorney, the power of attorney must accompany this certificate.

 

 

EXHIBIT H

 

RESERVED

 

 

EXHIBIT I

 

FORM OF CLASS [A-R][A-RL] CERTIFICATES

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 3.05 OF THE TRUST AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE DEPOSITOR AND THE TRUST ADMINISTRATOR 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 SERVICER, THE COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE MASTER SERVICER AND THE TRUST ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR THE FHLMC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS
SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO 

 

IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE.  EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

 

 

 

	
 
 

            Certificate No. 1
 	
            Interest Rate: Variable
 
	
            Cut-off Date:
 	
            Class Certificate Balance: $100
 
	
            October 1, 2005
 	
            Assumed Final Payment Date: February 2036
 
	
            First Payment Date:
 	
            Certificate Percentage Interest of this Certificate: 100%
 
	
            November 25, 2005
 	
            CUSIP:  
 

 

Home Equity Mortgage Trust 2005-HF1, 

Home Equity Loan-Backed Certificate, Series 2005-HF1, Class [A-R][A-RL] 

 

evidencing percentage interest in the distribution allocable to the certificates of the above-referenced Class with respect to a Trust Estate evidenced by the loans created by CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP. (hereinafter called the “Depositor” which term includes any successor entity under the Agreement referred to below).

This Certificate is payable solely from the assets of the Trust Estate, and does not represent an obligation of or interest in the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  Neither this Certificate nor any of the Loans is guaranteed or insured by any governmental agency or instrumentality or by the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  None of the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee, 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 Certificate Percentage Interest evidenced by this Certificate (as set forth on the face hereof) in certain distributions with respect to the Trust Estate, consisting primarily of the Loans conveyed by the Depositor.  The Trust Estate (as defined herein) was created pursuant to a Trust Agreement dated November 4, 2005 (as amended and supplemented from time to time, the “Agreement”) between the Depositor and Wilmington Trust Company, as owner trustee (the “Owner Trustee,” which term includes any successor entity under the Agreement), 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 the 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 “Payment Date”), commencing on the first Payment Date specified above, to the 

 

Person in whose name this Certificate is registered at the close of business on the last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the month immediately preceding the month of such distribution (the “Record Date”), in an amount equal to the pro rata portion evidenced by this Certificate (based on the Certificate Percentage Interest stated on the face hereof) of the Class [A-R][A-RL] Certificate Distribution Amount required to be distributed to the registered holder of this Certificate on such Payment Date.  Distributions on this Certificate will be made as provided in the Agreement by the Certificate Paying Agent by wire transfer or check mailed to the Certificateholders of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.

Except as otherwise provided in the Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Certificate Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency maintained by the Certificate Registrar for that purpose in the City and State of New York.

Each Certificateholder 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 Trust Administrator 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 Certificateholder 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.

In connection with any transfer of this Certificate, the Certificate Registrar (unless otherwise directed by the Depositor) will require either (i) a representation letter, in the form of Exhibit J-1 to the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction restrictions or the fiduciary responsibility requirements of ERISA or Section 4975 of the Code (“Plan”), any person acting, directly or indirectly, on behalf of any such plan or any person using the “plan assets,” within the meaning of the Department of Labor regulations at 29 C.F.R. §2510.3-101, to effect such acquisition (collectively, a “Plan Investor”) or (ii) if such transferee is a Plan Investor, an opinion of counsel acceptable to and in form and substance satisfactory to the Depositor, the Owner Trustee, the Master Servicer
and the Certificate Registrar to the effect that the purchase or holding of this Certificate is permissible under applicable law, will not constitute or result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate Registrar to any obligation or liability in addition to those undertaken in the Agreement.

 

 

This Certificate is one of a duly authorized Certificate designated as Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Class [A-R][A-RL], of the Series specified hereon.  All terms used in this Certificate which are defined in the Agreement shall have the meanings assigned to them in the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the funds on deposit in the Certificate Distribution Account that have been released from the Lien of the Indenture for payment hereunder and that neither the Owner Trustee in its individual capacity nor the Depositor is personally liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

The Certificateholder, by its acceptance of this Certificate, covenants and agrees that such Certificateholder will not, prior to the day one year and one day after the date this Trust Agreement terminates, institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Certificates, the Notes, the Agreement or any of the Basic Documents.

The Agreement permits the amendment thereof as specified below, provided that any amendment be accompanied by an Opinion of Counsel to the Owner Trustee to the effect that such amendment complies with the provisions of the Agreement and will not cause the Trust to be subject to an entity level tax.  If the purpose of the amendment is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered, it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes.  If the purpose of the amendment is to prevent the imposition of any federal or state taxes at any time that any Security is outstanding, it shall not be necessary to obtain the consent of
any Securityholder, but the Owner Trustee shall be furnished with an Opinion of Counsel that such amendment is necessary or helpful to prevent the imposition of such taxes and is not materially adverse to any Securityholder.  If the purpose of the amendment is to add or eliminate or change any provision of the Agreement, other than as specified in the preceding two sentences, the amendment shall require either (a) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes or (b) the consent of the Certificateholders and the Trust Administrator; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the time of, payments received that are required to be distributed on the Certificates without the consent of the Certificateholders, or (ii) reduce the aforesaid Certificate Percentage Interest required to consent to any such amendment without the
consent of 100% of the Certificate Percentage Interest.

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 of the Certificate Registrar maintained in the City of and State of New York, accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the registered holder of 

 

this Certificate or the such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate Certificate Percentage Interest will be issued to the designated transferee.  The initial Certificate Registrar appointed under the Agreement is the Trust Administrator.

No service charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or the Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Paying Agent, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

This Certificate shall be governed by and construed in accordance with the laws of the State of Delaware.

The obligations created by the Agreement in respect of the Certificates and the Trust created thereby shall terminate upon the earlier of (i) the final distribution of all moneys or other property or proceeds of the Trust Estate in accordance with the terms of the Indenture and the Agreement or (ii) the Final Maturity Date.

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, or an authenticating agent 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 Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Certificate to be duly executed.

	
            Home Equity Mortgage TRUST 2005-HF1

 

By          WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee

 
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

Dated: November 4, 2005

CERTIFICATE OF AUTHENTICATION

This is one of the Class [A-R][A-RL] Certificates referred to in the within mentioned Agreement.

	
            WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

 

 

 

ASSIGNMENT

FOR VALUE RECEIVED THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
             
 

 (PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

	
             
 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	
             
 

to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

 

	
            Dated:
 	
            */
 
	
             
 	
            Signature Guaranteed
 
	
             
 	
             
 
	
             
 	
             
 	
            */
 

*/  NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for the information of the Certificate Paying Agent:

	
            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
 	
             
 
						

 

 

______________________________________________________

Signature of assignee or agent

(for authorization of wire

transfer only)

 

 

EXHIBIT J-1

 

FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

	
            STATE OF 
 	
            )
 	
             
 
	
             
 	
            )
 	
            ss.:
 
	
            COUNTY OF 
 	
            )
 	
             
 

[NAME OF OFFICER], being first duly sworn, deposes and says:

1.          That he is [Title of Officer] of [Name of Owner] (record or beneficial owner of the Home Equity Mortgage Trust 2005-HF1,

2.          Home Equity Loan-Backed Certificate, Series 2005-HF1, Class [G][A-R][A-RL] (the “Owner”)), a [savings institution] [corporation] duly organized and existing under the laws of [the State of                                     ] [the United States], on behalf of which he makes this affidavit and agreement.

3.          That the Owner (i) is not and will not be a “disqualified organization” or an electing large partnership as of [date of transfer] within the meaning of Sections 860E(e)(5) and 775, respectively, of the Internal Revenue Code of 1986, as amended (the “Code”) or an electing large partnership under Section 775(a) of the Code, (ii) will endeavor to remain other than a disqualified organization for so long as it retains its ownership interest in the Class [G][A-R][A-RL] Certificates, and (iii) is acquiring the Class [G][A-R][A-RL] 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 an electing large
partnership under Section 775 of the Code, the United States, any state or political subdivision thereof, any agency or instrumentality of any of the foregoing (other than an instrumentality all of the activities of which are subject to tax and, except for the Federal Home Loan Mortgage Corporation, a majority of whose board of directors is not selected by any such governmental entity) or any foreign government, international organization or any agency or instrumentality of such foreign government or organization, any 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).

4.          That the Owner is aware (i) of the tax that would be imposed on transfers of Class [G][A-R][A-RL] Certificates to disqualified organizations or electing large partnerships, under the Code, that applies to all transfers of Class [G][A-R][A-RL] Certificates after March 31, 1988; (ii) that such tax would be on the transferor (or, with respect to transfers to electing large partnerships, on each such partnership), 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 (other than with respect to transfers to electing large partnerships) 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 [G][A-R][A-RL] 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.

5.          That the Owner is aware of the tax imposed on a “pass-through entity” holding Class [G][A-R][A-RL] Certificates if either the pass-through entity is an electing large partnership under Section 775 of the Code 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.)

6.          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 (except in the case of a partnership, to the extent provided in Treasury regulations), or an estate that is described in Section 7701(a)(30)(D) of the Code, or a trust that is described in Section 7701(a)(30)(E) of the Code.

7.          That the Owner is aware that the Certificate Registrar will not register the transfer of any Class [G][A-R][A-RL] 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.

8.          That the Owner has reviewed the restrictions set forth on the face of the Class [G][A-R][A-RL] Certificates and the provisions of Section 3.05 of the Trust Agreement under which the Class [G][A-R][A-RL] Certificates were issued (in particular, clause (i)(A) and (i)(B) of Section 3.05 which authorize the Certificate Registrar to deliver payments to a person other than the Owner and negotiate a mandatory sale by the Trust Administrator in the event the Owner holds such Certificates in violation of Section 3.05).  The Owner expressly agrees to be bound by and to comply with such restrictions and provisions.

9.          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 [G][A-R][A-RL] Certificates will only be owned, directly or indirectly, by an Owner that is not a disqualified organization.

	
            10.
 	
            The Owner’s Taxpayer Identification Number is ________________________ 
 	
            .
 

11.        This affidavit and agreement relates only to the Class [G][A-R][A-RL] Certificates held by the Owner and not to any other holder of the Class [G][A-R][A-RL] Certificates.  The Owner understands that the liabilities described herein relate only to the Class [G][A-R][A-RL] Certificates.

12.        That no purpose of the Owner relating to the transfer of any of the Class [G][A-R][A-RL] Certificates by the Owner is or will be to impede the assessment or collection of any tax.

 

 

13.        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 [G][A-R][A-RL] Certificate that the Owner intends to pay taxes associated with holding such Class [G][A-R][A-RL] Certificate as they become due, fully understanding that it may incur tax liabilities in excess of any cash flows generated by the Class [G][A-R][A-RL] Certificate.

14.        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 [G][A-R][A-RL] Certificates remain outstanding.

15.        The Purchaser is not an employee benefit plan or other plan subject to the prohibited transaction provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), or an investment manager, named fiduciary or a trustee of any such plan, or any other Person acting, directly or indirectly, on behalf of or purchasing any Certificate with “plan assets” of any such plan.

IN WITNESS WHEREOF, the Owner has caused this instrument to be executed on its behalf, pursuant to the authority of its Board of Directors, by its [Title of Officer] and its corporate seal to be hereunto attached, attested by its [Assistant] Secretary, this ____ day of __________, ____________.

	
            [NAME OF OWNER]
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 	
             
 
	
            By:
 	
            
 
 
 
	
            Name:
 	
            [Name of Officer]
 
	
            Title:
 	
            [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 he executed the same as his free act and deed and the free act and deed of the Owner.

Subscribed and sworn before me this ____ day of __________, ____________.

 

 

 

	
             
 	
             
 
	
             
 	
            NOTARY PUBLIC
 
	
             
 	
             
 
	
             
 	
            COUNTY OF ___________________________
 STATE OF_________________________________________ 

My Commission expires the        day of                           , 20    .

 
 

 

 

 

EXHIBIT J-2

 

FORM OF TRANSFEROR CERTIFICATE

	
            , 20  
 

Credit Suisse First Boston 

  Mortgage Acceptance Corp.

11 Madison Avenue, 4th Floor

New York, New York 10010-3629

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

JPMorgan Chase Bank, N.A.

4 New York Plaza

New York, New York 10004

Attention:  Worldwide Securities Services/Structured Finance Services-Home Equity Mortgage Trust 2005-HF1

	
            Re:
 	
            Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificate, Series 2005-HF1, Class [G][A-R][A-RL]
 

Ladies and Gentlemen:

This letter is delivered to you in connection with the transfer by                  (the “Seller”) to                              (the “Purchaser”) of a [__]% Percentage Interest in the Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Series 2005-HF1, Class [G][A-R][A-RL] (the “Certificates”), pursuant to Section 3.05 of the Trust Agreement (the “Trust Agreement”), dated as of November 4, 2005,  between Credit Suisse First Boston  Mortgage Acceptance Corp., as seller (the “Company”), and
Wilmington Trust Company, as owner trustee (the “Trustee”).  All terms used herein and not otherwise defined shall have the meanings set forth in the Trust Agreement.  The Seller hereby certifies, represents and warrants to, and covenants with, the Company and the Trustee that:

1.          No purpose of the Seller relating to the transfer of the Certificate 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 Trust Administrator and the Master Servicer a transfer affidavit and agreement in the form attached to the Trust Agreement as Exhibit J-1.  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 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 a Class [G][A-R][A-RL] Certificate 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 not both a United States Person and a Permitted Transferee.

	
            Very truly yours,

 

 
 
	
            (Seller)

 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 

 

 

 

 

EXHIBIT K

 

FORM OF CLASS G CERTIFICATES

THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST” IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986 (THE “CODE”).

NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 3.05 OF THE TRUST AGREEMENT OR AN OPINION OF COUNSEL SATISFACTORY TO THE MASTER SERVICER, THE DEPOSITOR AND THE TRUST ADMINISTRATOR 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 SERVICER, THE COMPANY OR THE TRUSTEE TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

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 STATE LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER SUCH STATE LAWS AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF 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 TRUST ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT FOR THE FHLMC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY SUCH GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH 

 

ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION 775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.  NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED
ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE.  EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

 

 

 

	
 
 

            Certificate No. 1
 	
            Interest Rate: Adjustable
 
	
            Cut-off Date:
 	
            Class Certificate Balance: $0.00
 
	
            October 1, 2005
 	
            Assumed Final Payment Date: February 2036
 
	
            First Payment Date:
 	
            Certificate Percentage Interest of this Certificate: 100%
 
	
            November 25, 2005
 	
            CUSIP:  
 

 

Home Equity Mortgage Trust 2005-HF1, 

Home Equity Loan-Backed Certificate, Series 2005-HF1, Class G 

 

evidencing percentage interest in the distribution allocable to the certificates of the above-referenced Class with respect to a Trust Estate evidenced by the loans created by CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP. (hereinafter called the “Depositor” which term includes any successor entity under the Agreement referred to below).

This Certificate is payable solely from the assets of the Trust Estate, and does not represent an obligation of or interest in the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  Neither this Certificate nor any of the Loans is guaranteed or insured by any governmental agency or instrumentality or by the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  None of the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee, 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 Certificate Percentage Interest evidenced by this Certificate (as set forth on the face hereof) in certain distributions with respect to the Trust Estate, consisting primarily of the Loans conveyed by the Depositor.  The Trust Estate (as defined herein) was created pursuant to a Trust Agreement dated November 4, 2005 (as amended and supplemented from time to time, the “Agreement”) between the Depositor and Wilmington Trust Company, as owner trustee (the “Owner Trustee,” which term includes any successor entity under the Agreement), 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 the 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 “Payment Date”), commencing on the first Payment Date specified above, to the 

 

Person in whose name this Certificate is registered at the close of business on the last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of the related Accrual Period (the “Record Date”), in an amount equal to the pro rata portion evidenced by this Certificate (based on the Certificate Percentage Interest stated on the face hereof) of the Class G Certificate Distribution Amount required to be distributed to the registered holder of this Certificate on such Payment Date.  Distributions on this Certificate will be made as provided in the Agreement by the Certificate Paying Agent by wire transfer or check mailed to the Certificateholders of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.

Except as otherwise provided in the Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Certificate Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency maintained by the Certificate Registrar for that purpose in the City and State of New York.

Each Certificateholder 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 Trust Administrato 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 Certificateholder 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.

No transfer of this 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 Certificate Registrar or the Depositor may require an opinion of counsel acceptable to and in form and substance satisfactory to the Certificate Registrar and the Depositor 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 shall execute an investment letter in the form described in the Agreement and (iii) the Certificate Registrar shall require the transferee to execute an investment
letter in the form described by the Agreement, which investment letter shall not be at the expense of the Trust, the Owner Trustee, the Certificate Registrar or the Depositor.  If a Certificateholder desires to effect such transfer, it shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the Depositor, the Servicers, the Master Servicer, the Trust Administrator and the Certificate Registrar 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 transfer of this Certificate, the Certificate Registrar (unless otherwise directed by the Depositor) will require either (i) a representation 

 

letter, in the form of Exhibit J-1 to the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction restrictions or the fiduciary responsibility requirements of ERISA or Section 4975 of the Code (“Plan”), any person acting, directly or indirectly, on behalf of any such plan or any person using the “plan assets,” within the meaning of the Department of Labor regulations at 29 C.F.R. §2510.3-101, to effect such acquisition (collectively, a “Plan Investor”) or (ii) if such transferee is a Plan Investor, an opinion of counsel acceptable to and in form and substance satisfactory to the Depositor, the Owner Trustee, the Master Servicer and the Certificate Registrar to the effect that the purchase or holding of this Certificate is permissible under applicable law, will not constitute or result in a prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate Registrar to any obligation or liability in addition to those undertaken in the Agreement.

This Certificate is one of a duly authorized Certificate designated as Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Class G, of the Series specified hereon.  All terms used in this Certificate which are defined in the Agreement shall have the meanings assigned to them in the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the funds on deposit in the Certificate Distribution Account that have been released from the Lien of the Indenture for payment hereunder and that neither the Owner Trustee in its individual capacity nor the Depositor is personally liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

The Certificateholder, by its acceptance of this Certificate, covenants and agrees that such Certificateholder will not, prior to the day one year and one day after the date this Trust Agreement terminates, institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Certificates, the Notes, the Agreement or any of the Basic Documents.

The Agreement permits the amendment thereof as specified below, provided that any amendment be accompanied by an Opinion of Counsel to the Owner Trustee to the effect that such amendment complies with the provisions of the Agreement and will not cause the Trust to be subject to an entity level tax.  If the purpose of the amendment is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered, it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes.  If the purpose of the amendment is to prevent the imposition of any federal or state taxes at any time that any Security is outstanding, it shall not be necessary to obtain the consent of
any Securityholder, but the Owner Trustee shall be furnished with an Opinion of Counsel that such amendment is necessary or helpful to prevent the imposition of such taxes and is not materially adverse to any Securityholder.  If the purpose of the amendment is to add or eliminate or change any provision 

 

of the Agreement, other than as specified in the preceding two sentences, the amendment shall require either (a) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes or (b) the consent of the Certificateholders and the Trust Administrator; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the time of, payments received that are required to be distributed on the Certificates without the consent of the Certificateholders, or (ii) reduce the aforesaid Certificate Percentage Interest required to consent to any such amendment without the consent of 100% of the Certificate Percentage Interest.

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 of the Certificate Registrar maintained in the City of and State of New York, accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the registered holder of this Certificate or the such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate Certificate Percentage Interest will be issued to the designated transferee.  The initial Certificate Registrar appointed under the Agreement is the Trust Administrator.

No service charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or the Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Paying Agent, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

This Certificate shall be governed by and construed in accordance with the laws of the State of Delaware.

The obligations created by the Agreement in respect of the Certificates and the Trust created thereby shall terminate upon the earlier of (i) the final distribution of all moneys or other property or proceeds of the Trust Estate in accordance with the terms of the Indenture and the Agreement or (ii) the Final Maturity Date.

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, or an authenticating agent 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 Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Certificate to be duly executed.

	
            HOME EQUITY MORTGAGE TRUST 2005-HF1

 

By          WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

Dated: November 4, 2005

CERTIFICATE OF AUTHENTICATION

This is one of the Class G Certificates referred to in the within mentioned Agreement.

	
            WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

 

 

ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
             
 

 (Please print or type name and address, including postal zip code, of assignee)

	
             
 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	
             
 

to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

	
            Dated:
 	
            */
 
	
             
 	
            Signature Guaranteed
 
	
             
 	
             
 
	
             
 	
             
 	
            */
 

 

________________

*/  NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for the information of the Certificate Paying Agent:

	
            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
 	
             
 
						

 

 

 

_____________________________________________

Signature of assignee or agent

(for authorization of wire

transfer only)

 

 

EXHIBIT L

 

FORM OF CLASS P CERTIFICATES

THIS CERTIFICATE IS NOT TRANSFERABLE EXCEPT UPON SATISFACTION OF THE CONDITIONS IN SECTION 3.05 OF THE AGREEMENT.

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 STATE LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER SUCH STATE LAWS AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE REGISTRAR SHALL HAVE RECEIVED EITHER (i) A REPRESENTATION LETTER IN THE FORM OF EXHIBIT F TO THE AGREEMENT FROM THE TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION RESTRICTIONS AND THE FIDUCIARY RESPONSIBILITY REQUIREMENTS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), ANY PERSON ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF OF ANY SUCH PLAN OR ANY PERSON USING “PLAN ASSETS,” WITHIN THE MEANING OF THE DEPARTMENT OF LABOR REGULATIONS SECTION 2510.3-101, TO ACQUIRE THIS CERTIFICATE (COLLECTIVELY A “PLAN INVESTOR”), OR (ii) IF THIS CERTIFICATE IS PRESENTED FOR REGISTRATION IN THE NAME
OF A PLAN INVESTOR, AN OPINION OF COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE DEPOSITOR, THE OWNER TRUSTEE, THE MASTER SERVICER AND THE CERTIFICATE REGISTRAR, OR A CERTIFICATION IN THE FORM OF EXHIBIT F TO THE AGREEMENT, TO THE EFFECT THAT THE PURCHASE OR HOLDING OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS) AND WILL NOT SUBJECT THE DEPOSITOR, THE OWNER TRUSTEE, THE MASTER SERVICER OR THE CERTIFICATE REGISTRAR TO ANY OBLIGATION OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE SELLER, THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE, THE TRUST ADMINISTRATOR OR ANY OF THEIR RESPECTIVE AFFILIATES.

 

 

 

	
 
 

            Certificate No. 1
 	
            Interest Rate: Variable
 
	
            Cut-off Date:
 	
            Class Certificate Balance: $100
 
	
            October 1, 2005
 	
            Assumed Final Payment Date: February 2036
 
	
            First Payment Date:
 	
            Certificate Percentage Interest of this Certificate: 100%
 
	
            November 25, 2005
 	
            CUSIP:  
 

 

Home Equity Mortgage Trust 2005-HF1, 

Home Equity Loan-Backed Certificate, Series 2005-HF1, Class P

evidencing percentage interest in the distribution allocable to the certificates of the above-referenced Class with respect to a Trust Estate evidenced by the loans created by CREDIT SUISSE FIRST BOSTON MORTGAGE ACCEPTANCE CORP. (hereinafter called the “Depositor” which term includes any successor entity under the Agreement referred to below).

This Certificate is payable solely from the assets of the Trust Estate, and does not represent an obligation of or interest in the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  Neither this Certificate nor any of the Loans is guaranteed or insured by any governmental agency or instrumentality or by the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee or any of their affiliates.  None of the Depositor, the Seller, the Servicers, the Master Servicer, the Indenture Trustee, the Trust Administrator, the Owner Trustee, 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 Certificate Percentage Interest evidenced by this Certificate (as set forth on the face hereof) in certain distributions with respect to the Trust Estate, consisting primarily of the Loans conveyed by the Depositor.  The Trust Estate (as defined herein) was created pursuant to a Trust Agreement dated November 4, 2005 (as amended and supplemented from time to time, the “Agreement”) between the Depositor and Wilmington Trust Company, as owner trustee (the “Owner Trustee,” which term includes any successor entity under the Agreement), 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 the 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 “Payment Date”), commencing on the first Payment Date specified above, to the Person in whose name this Certificate is registered at the close of business on the last day (or if such last day is not a Business Day, the Business Day immediately preceding such last day) of 

 

the month immediately preceding the month of such distribution (the “Record Date”), in an amount equal to the pro rata portion evidenced by this Certificate (based on the Certificate Percentage Interest stated on the face hereof) of the Class P Certificate Distribution Amount required to be distributed to the registered holder of this Certificate on such Payment Date.  Distributions on this Certificate will be made as provided in the Agreement by the Certificate Paying Agent by wire transfer or check mailed to the Certificateholders of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.

Except as otherwise provided in the Agreement and notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Certificate Paying Agent of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency maintained by the Certificate Registrar for that purpose in the City and State of New York.

No transfer of this 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 Certificate Registrar or the Depositor may require an opinion of counsel acceptable to and in form and substance satisfactory to the Certificate Registrar and the Depositor 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 shall execute an investment letter in the form described in the Agreement and (iii) the Certificate Registrar shall require the transferee to execute an investment
letter in the form described by the Agreement, which investment letter shall not be at the expense of the Trust, the Owner Trustee, the Certificate Registrar or the Depositor.  If a Certificateholder desires to effect such transfer, it shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the Depositor, the Servicers, the Master Servicer, the Trust Administrator and the Certificate Registrar 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 transfer of this Certificate, the Certificate Registrar (unless otherwise directed by the Depositor) will require either (i) a representation letter, in the form of Exhibit F to the Agreement, stating that the transferee is not an employee benefit or other plan subject to the prohibited transaction restrictions or the fiduciary responsibility requirements of ERISA or Section 4975 of the Code (“Plan”), any person
acting, directly or indirectly, on behalf of any such plan or any person using the “plan assets,” within the meaning of the Department of Labor regulations at 29 C.F.R. §2510.3-101, to effect such acquisition (collectively, a “Plan Investor”) or (ii) if such transferee is a Plan Investor, an opinion of counsel acceptable to and in form and substance satisfactory to the Depositor, the Owner Trustee, the Master Servicer and the Certificate Registrar to the effect that the purchase or holding of this Certificate is permissible under applicable law, will not constitute or result in a prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or comparable provisions of any subsequent enactments) and will not subject the Depositor, the Owner Trustee, the Master Servicer or the Certificate Registrar to any obligation or liability in addition to those undertaken in the Agreement.

 

 

This Certificate is one of a duly authorized Certificate designated as Home Equity Mortgage Trust 2005-HF1, Home Equity Loan-Backed Certificates, Class P, of the Series specified hereon.  All terms used in this Certificate which are defined in the Agreement shall have the meanings assigned to them in the Agreement.

The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely to the funds on deposit in the Certificate Distribution Account that have been released from the Lien of the Indenture for payment hereunder and that neither the Owner Trustee in its individual capacity nor the Depositor is personally liable to the Certificateholders for any amount payable under this Certificate or the Agreement or, except as expressly provided in the Agreement, subject to any liability under the Agreement.

The Certificateholder, by its acceptance of this Certificate, covenants and agrees that such Certificateholder will not, prior to the day one year and one day after the date the Trust Agreement terminates, institute against the Depositor or the Trust, or join in any institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the Certificates, the Notes, the Agreement or any of the Basic Documents.

The Agreement permits the amendment thereof as specified below, provided that any amendment be accompanied by an Opinion of Counsel to the Owner Trustee to the effect that such amendment complies with the provisions of the Agreement and will not cause the Trust to be subject to an entity level tax.  If the purpose of the amendment is to correct any mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter not covered, it shall not be necessary to obtain the consent of any Securityholder, but the Owner Trustee shall be furnished with a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes.  If the purpose of the amendment is to prevent the imposition of any federal or state taxes at any time that any Security is outstanding, it shall not be necessary to obtain the consent of
any Securityholder, but the Owner Trustee shall be furnished with an Opinion of Counsel that such amendment is necessary or helpful to prevent the imposition of such taxes and is not materially adverse to any Securityholder.  If the purpose of the amendment is to add or eliminate or change any provision of the Agreement, other than as specified in the preceding two sentences, the amendment shall require either (a) a letter from the Rating Agencies that the amendment will not result in the downgrading or withdrawal of the rating then assigned to any of the Notes or (b) the consent of the Certificateholders and the Trust Administrator; provided, however, that no such amendment shall (i) reduce in any manner the amount of, or delay the time of, payments received that are required to be distributed on the Certificates without the consent of the Certificateholders, or (ii) reduce the aforesaid Certificate Percentage Interest required to consent to any such amendment without the
consent of 100% of the Certificate Percentage Interest.

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 of the Certificate Registrar maintained in the City of and State of New York, accompanied by a written instrument of transfer in form satisfactory to the Certificate Registrar duly executed by the registered holder of 

 

this Certificate or the such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of authorized denominations evidencing the same class and aggregate Certificate Percentage Interest will be issued to the designated transferee.  The initial Certificate Registrar appointed under the Agreement is the Trust Administrator.

No service charge will be made for any such registration of transfer or exchange, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or the Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Paying Agent, the Certificate Registrar or any such agent shall be affected by any notice to the contrary.

This Certificate shall be governed by and construed in accordance with the laws of the State of Delaware.

The obligations created by the Agreement in respect of the Certificates and the Trust created thereby shall terminate upon the earlier of (i) the final distribution of all moneys or other property or proceeds of the Trust Estate in accordance with the terms of the Indenture and the Agreement or (ii) the Final Maturity Date.

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the Owner Trustee, or an authenticating agent 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 Owner Trustee, on behalf of the Trust and not in its individual capacity, has caused this Certificate to be duly executed.

	
            HOME EQUITY MORTGAGE TRUST 2005-HF1

 

 

By         WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

Dated: November 4, 2005

CERTIFICATE OF AUTHENTICATION

This is one of the Class P Certificates referred to in the within mentioned Agreement.

	
            WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner Trustee

 
 
	
             
 	
             
 
	
            By:
 	
             
 
	
             
 	
            Authorized Signatory
 

 

 

ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

	
             
 

 (Please print or type name and address, including postal zip code, of assignee)

	
             
 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	
             
 

to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

 

	
            Dated:
 	
            */
 
	
             
 	
            Signature Guaranteed
 
	
             
 	
             
 
	
             
 	
             
 	
            */
 

______________________________

*/  NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar, which requirements include membership or participation in STAMP or such other “signature guarantee program” as may be determined by the Certificate Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

DISTRIBUTION INSTRUCTIONS

The assignee should include the following for the information of the Certificate Paying Agent:

	
            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
 	
             
 
						

 

 

 

_____________________________________________

Signature of assignee or agent

(for authorization of wire

transfer only)

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