Document:

ex10-1.htm

Exhibit 10.1

Saints Capital Granite, L.P.

475 Sansome Street, Suite 1850

San Francisco, CA 94111

 

December 28, 2011

 

Merisel, Inc.

127 W. 30th Street, 5th Floor

New York, NY 10001

 

Attn:  Special Committee of the Board of Directors

 

To the Special Committee:

 

Following our recent discussions, Saints Capital Granite, L.P. (Saints Capital) is pleased to confirm its proposal to acquire the outstanding shares of common stock of Merisel, Inc. not currently owned by Saints Capital at a purchase price of $1.35 per share.

 

We believe that our offer is fair to and in the best interest of Merisel and its public shareholders. Although this transaction does not represent a change of control, this offer price represents a premium in excess of 100% to the average closing price of Merisel common stock for the 20 trading days ending on December 27, 2011.

 

We anticipate that the deal would be structured as a tender offer or merger between Merisel and a direct or indirect wholly owned subsidiary Saints Capital.  Consummation of the transaction would be expressly conditioned on the proposed acquisition being supported by holders of a majority of the shares of Merisel common stock not currently owned by Saints Capital.  The definitive transaction documentation would also make clear that Saints Capital would have a termination right in the event that the transaction becomes subject to shareholder litigation.  The transaction would be financed out of our available cash and not require any third-party financing.

 

We understand that Board of Directors of Merisel has, with our support, formed a special committee of independent directors to respond to our proposal on behalf of Merisel’s public shareholders. We further understand that the special committee has retained its own legal and financial advisors to assist in its review. We confirm that we will not move forward with our proposed transaction unless it is approved by the special committee.

 

We are available to discuss this proposal with you at your convenience. Our entire team looks forward to working with the special committee and its legal and financial advisors to complete a mutually acceptable transaction.

 

As you would expect, our proposal is subject to successful negotiation of definitive transaction documentation. Of course, no contract or agreement will exist between Saints Capital and Merisel unless and until a definitive merger agreement is executed and delivered by both parties.

 

You should note that, concurrently with sending this proposal to you, we are filing an amendment to our Schedule 13D with the Securities and Exchange Commission.

 

Thank you for your consideration.

 

	 	Sincerely, 

/s/ Joseph YangUnassociated Document

 

Exhibit 10.1

 

MORTGAGE LOAN PURCHASE AGREEMENT

 

This Mortgage Loan Purchase Agreement (this “Agreement”), is dated and effective December 22, 2011 between UBS Real Estate Securities Inc., as seller (the “Seller”), and Citigroup Commercial Mortgage Securities Inc., as purchaser (the “Purchaser”).

 

The Seller desires to sell, assign, transfer and otherwise convey to the Purchaser, and the Purchaser desires to purchase, subject to the terms and conditions set forth below, the commercial, multifamily and/or manufactured housing mortgage loans (collectively, the “Mortgage Loans”) identified on the schedule annexed hereto as Exhibit A (the “Mortgage Loan Schedule”).

 

It is expected that the Mortgage Loans will be transferred, together with other commercial, multifamily and manufactured housing mortgage loans (such Mortgage Loans, the “Other Mortgage Loans”) to UBS-Citigroup Commercial Mortgage Trust 2011-C1, a trust fund (the “Trust Fund”) to be formed by the Purchaser, the beneficial ownership of which will be evidenced by a series of mortgage pass-through certificates (the “Certificates”).  The offer and sale of certain classes of the Certificates (the “Registered Certificates”) will be registered under the Securities Act of 1933, as amended (the “Securities Act”).  The Trust Fund will be created and the Certificates will be issued pursuant to a pooling and servicing agreement, to be dated as of December 1, 2011 (the “Pooling and Servicing Agreement”), among Citigroup Commercial Mortgage Securities Inc., as depositor (in such capacity, the “Depositor”), Wells Fargo Bank, National Association, as master servicer (in such capacity, the “Master Servicer”), Midland Loan Services, a Division of PNC Bank, National Association (“Midland”), as special servicer (in such capacity, the “Special Servicer”), TriMont Real Estate Advisors, Inc., as operating advisor (in such capacity, the “Operating Advisor”), and Deutsche Bank Trust Company Americas, as trustee, certificate administrator, custodian and paying agent (in its capacity as trustee, certificate administrator, custodian and paying agent, the “Trustee”).

 

The Purchaser intends to sell the Registered Certificates to UBS Securities LLC (“UBS”), Citigroup Global Markets Inc. (“Citi”), Natixis Securities Americas LLC (“Natixis”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill”), Barclays Capital Inc. (“Barclays”) and Morgan Stanley & Co. LLC (“MS” and, together with UBS, Citi, Natixis, Merrill and Barclays, in such capacity, the “Underwriters”) pursuant to an underwriting agreement, dated December 9, 2011 (the “Underwriting Agreement”).  The Purchaser intends to sell other Certificates (the “Non-Registered Certificates”) to UBS, Citi, Natixis, Merrill, Barclays and MS (together, in such capacity, the “Initial Purchasers”) pursuant to a certificate purchase agreement, dated December 22, 2011 (the “Certificate Purchase Agreement”).  Capitalized terms that are used but not defined herein have the respective meanings assigned to them in the Pooling and Servicing Agreement (in effect as of the Closing Date) or in the Indemnification Agreement, dated December 22, 2011 (the “Indemnification Agreement”), among the Seller, the Purchaser, the Underwriters and the Initial Purchasers.

 

  

  

  

 

Now, therefore, in consideration of the premises and the mutual agreements set forth herein, the parties agree as follows:

 

SECTION 1.             Agreement to Purchase.

 

Subject to the terms and conditions set forth in this Agreement, the Seller agrees to sell, assign, transfer and otherwise convey to the Purchaser upon receipt of the Mortgage Loan Purchase Price referred to in this Section 1, and the Purchaser agrees to purchase, the Mortgage Loans.  The purchase and sale of the Mortgage Loans shall take place on December 29, 2011 or such other date as shall be mutually acceptable to the parties hereto (the “Closing Date”).  As of the Cut-off Date, the Mortgage Loans will have an aggregate principal balance (the “Aggregate Cut-off Date Balance”), after application of all payments of principal due thereon on or before the Cut-off Date, whether or not received, of $549,743,803, subject to a variance of plus or minus 5.0%.  The purchase price of the Mortgage Loans (inclusive of accrued interest and exclusive of the Seller’s share of the costs set forth in Section 9(c) hereof) (the “Mortgage Loan Purchase Price”) shall be equal to the amount set forth on the cross receipt between the Seller and the Purchaser dated the date hereof.

 

SECTION 2.             Conveyance of Mortgage Loans.

 

(a)           On the Closing Date, subject only to receipt by the Seller of the Mortgage Loan Purchase Price, the satisfaction of the other closing conditions required to be satisfied on the part of Purchaser pursuant to Section 7 and the issuance of the Certificates, the Seller agrees to sell, transfer, assign, set over and otherwise convey to the Purchaser, without recourse, all the right, title and interest of the Seller in and to the Mortgage Loans identified on the Mortgage Loan Schedule, including all rights to payment in respect thereof, which includes all interest and principal received or receivable by the Seller on or with respect to the Mortgage Loans after the Cut-off Date (subject to the proviso in the next sentence), together with all of the Seller’s right, title and interest in and to the proceeds of any related title, hazard, or other insurance policies and any escrow, reserve or other comparable accounts related to the Mortgage Loans, subject to (i) that certain Agreement to Appointment of Master Servicer dated as of December 1, 2011, between the Master Servicer, the Depositor and the Seller, and (ii) with respect to each Pari Passu Loan Combination, the rights of the holder of the related Pari Passu Companion Loan under the related Co-Lender Agreement, if applicable.  The Purchaser shall be entitled to (and, to the extent received by or on behalf of the Seller, the Seller shall deliver or cause to be delivered to or at the direction of the Purchaser) all scheduled payments of principal and interest due on the Mortgage Loans after the Cut-off Date, and all other recoveries of principal and interest collected thereon after the Cut-off Date; provided, however, that all scheduled payments of principal and interest due on or before the Cut-off Date and collected after the Cut-off Date shall belong to the Seller, and the Purchaser or its successors or assigns shall promptly remit any such payments to the Seller.

 

On or prior to the Closing Date, the Seller shall retain a third party vendor (which may be the Trustee, Certificate Administrator or Custodian pursuant to the Pooling and Servicing Agreement or otherwise) to complete the assignment and recordation or filing of the related Loan Documents in the name of the Trustee on behalf of the Certificateholders and, with respect to a Pari Passu Loan Combination, the related Pari Passu Companion Loan Noteholders.  On or

 

  

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promptly following the Closing Date, the Seller shall cause such third party vendor, at the expense of the Seller, (1) to promptly prepare and to record (in favor of the Trustee, in trust for the Holders of UBS-Citigroup Commercial Mortgage Trust 2011-C1, Commercial Mortgage Pass-Through Certificates, Series 2011-C1) in the appropriate public recording office (a) in no event later than 30 Business Days following the Closing Date, each Assignment of Mortgage referred to in clause (iii) of Exhibit B which has not yet been submitted for recording and (b) in no event later than 30 Business Days following the Closing Date, each Reassignment of Assignment of Leases, Rents and Profits referred to in clause (viii)(B) of Exhibit B (if not otherwise included in the related Assignment of Mortgage) which has not yet been submitted for recordation; and (2) to promptly prepare and to file in the appropriate public filing office each UCC assignment of financing statement referred to in clause (v)(B) and (xiii) of Exhibit B which has not yet been submitted for filing or recording in no event later than 30 Business Days following the Closing Date.  In the event that any such document or instrument is lost or returned unrecorded or unfiled, as the case may be, because of a defect therein, the Seller shall promptly prepare or cause the preparation of a substitute therefor or cure or cause the curing of such defect, as the case may be, and shall thereafter deliver the substitute or corrected document to or at the direction of the Custodian for recording or filing, as appropriate, at the Seller’s expense.  The Seller shall, or shall cause a third party vendor to, promptly upon receipt of the original recorded or filed copy (and in no event later than 5 Business Days following such receipt) deliver such original to the Custodian, with evidence of filing or recording thereon.  Notwithstanding anything to the contrary contained in this Section 2, in those instances where the public recording office retains the original Mortgage, Assignment of Mortgage, Assignment of Leases, Rents and Profits or Reassignment of Assignment of Leases, Rents and Profits, if applicable, after any has been recorded, the obligations hereunder of the Seller shall be deemed to have been satisfied upon delivery to the Custodian of a copy of the recorded original of such Mortgage, Assignment of Mortgage, Assignment of Leases, Rents and Profits or Reassignment of Assignment of Leases, Rents and Profits.

 

On the Closing Date, upon (i) notification from the Seller that the Mortgage Loan Purchase Price referred to in Section 1 has been received by the Seller and (ii) the issuance of the Certificates, the Purchaser shall be authorized to release to the Trustee or its designee all of the Mortgage Files in the Purchaser’s possession relating to the Mortgage Loans.

 

(b)           In connection with the Seller’s assignment pursuant to subsection (a) above, and subject to subsections (c) and (d) below, the Seller shall deliver to and deposit with, or cause to be delivered to and deposited with, the Custodian, on or before the Closing Date, the documents and/or instruments referred to in clauses (i), (ii), (vii), (xi) and (xix) of Exhibit B for each Mortgage Loan so assigned (with originals with respect to clause (i) and copies with respect to clauses (ii), (vii), (xi) and (xix)) and, except as otherwise provided in clause (d) below, within 10 days following the Closing Date, the remaining applicable documents in Exhibit B for each such Mortgage Loan, with copies to the Master Servicer.

 

(c)           If the Seller cannot deliver, or cause to be delivered, as to any Mortgage Loan, the original Note, the Seller shall deliver a copy or duplicate original of such Note, together with an affidavit certifying that the original thereof has been lost or destroyed and an indemnification in connection therewith in favor of the Trustee.

 

  

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(d)           If the Seller cannot deliver, or cause to be delivered, as to any Mortgage Loan, the original or a copy of any of the documents and/or instruments referred to in clauses (ii), (v)(A), (viii)(A), (xiv) and (xvi) of Exhibit B and the UCC financing statements and UCC assignments of financing statements referred to in clause (xiii) of Exhibit B, with evidence of recording or filing thereon, solely because of a delay caused by the public recording or filing office where such document or instrument has been delivered for recordation or filing, or because such original recorded or filed document has been lost or returned from the recording or filing office and subsequently lost, as the case may be, the delivery requirements of Section 2(b) shall be deemed to have been satisfied as to such missing item, and such missing item shall be deemed to have been included in the related Mortgage File, provided that a copy of such document or instrument (without evidence of recording or filing thereon, but certified (which certificate may relate to multiple documents and/or instruments) by the applicable public recording or filing office, the applicable title insurance company or by the Seller to be a true and complete copy of the original thereof submitted for recording or filing, as the case may be) has been delivered to the Custodian within 45 days after the Closing Date, and either the original of such missing document or instrument, or a copy thereof, with evidence of recording or filing, as the case may be, thereon, is delivered to or at the direction of the Purchaser (or any subsequent owner of the affected Mortgage Loan, including without limitation the Trustee) within 180 days after the Closing Date (or within such longer period after the Closing Date as the Purchaser (or such subsequent owner) may consent to, which consent shall not be unreasonably withheld, conditioned or delayed so long as the Seller has provided the Purchaser (or such subsequent owner) with evidence of such recording or filing, as the case may be, or has certified to the Purchaser (or such subsequent owner) as to the occurrence of such recording or filing, as the case may be, and is, as certified to the Purchaser (or such subsequent owner) no less often than quarterly, in good faith attempting to obtain from the appropriate public recording or filing office such original or copy).

 

If the Seller cannot deliver, or cause to be delivered, as to any Mortgage Loan, the original or a copy of the related lender’s title insurance policy referred to in clause (vii) of Exhibit B solely because such policy has not yet been issued, the delivery requirements of  Section 2(b) shall be deemed to be satisfied as to such missing item, and such missing item shall be deemed to have been included in the related Mortgage File, provided that the Seller has delivered to the Custodian a binder marked as binding and countersigned by the title insurer or its authorized agent (which may be a pro forma or specimen title insurance policy which has been accepted or approved in writing as binding by the related title insurance company) or an acknowledged closing instruction or escrow letter, and the Seller shall deliver to the Custodian or at the direction of the Purchaser (or any subsequent owner of the affected Mortgage Loan, including without limitation the Trustee), promptly following the receipt thereof, the original related lender’s title insurance policy (or a copy thereof).

 

Notwithstanding anything herein to the contrary, with respect to the documents referred to in clause (xix) and clause (xx) on Exhibit B, the Seller acknowledges that the Master Servicer will hold the original of each such document in trust on behalf of the Trustee in order to draw on such letter of credit on behalf of the Trust and the Seller shall be deemed to have satisfied the delivery requirements of this Agreement by delivering the original of each such document to the Master Servicer.  The Seller shall pay any costs of assignment or amendment of such letter of credit required (which assignment or amendment shall change the beneficiary of

 

  

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the letter of credit to the Trust in care of the Master Servicer) in order for the Master Servicer to draw on such letter of credit on behalf of the Trust.  In the event that the documents specified in clause (xx) on Exhibit B are missing because the related assignment or amendment documents have not been completed, the Seller shall take all reasonably necessary steps to enable the Master Servicer to draw on the related letter of credit on behalf of the Trust including, if necessary, drawing on the letter of credit in its own name pursuant to written instructions from the Master Servicer and immediately remitting such funds (or causing such funds to be remitted) to the Master Servicer.

 

Contemporaneously with the execution of this Agreement by the Purchaser and the Seller, the Seller shall deliver a power of attorney substantially in the form of Exhibit C hereto to each of the Master Servicer and the Special Servicer, that permits such parties to take such other action as is necessary to effect the delivery, assignment and/or recordation of any documents and/or instruments relating to any Mortgage Loan which have not been delivered, assigned or recorded at the time required for enforcement by the Trust Fund.  The Seller will be required to effect at its expense the assignment and, if applicable, recordation of its Loan Documents until the assignment and recordation of all such Loan Documents has been completed.

 

(e)           Except as provided below, all documents and records in the Seller’s possession (or under its control) relating to the Mortgage Loans that are not required to be a part of a Mortgage File in accordance with Exhibit B but that are reasonably required to service the Mortgage Loans and copies of the documents in the Mortgage File (all such other documents and records, including Environmental Reports, as to any Mortgage Loan, the “Servicing File”), together with all escrow payments, reserve funds and other comparable funds in the possession of the Seller (or under its control) with respect to the Mortgage Loans, shall (unless they are held by a sub-servicer that shall, as of the Closing Date, begin acting on behalf of the Master Servicer pursuant to a written agreement between such parties) be delivered by the Seller (or its agent) to the Master Servicer (as the Purchaser’s designee) no later than the Closing Date; provided, however, the Seller shall not be required to deliver, and the Servicing File shall not be deemed to include drafts of Loan Documents, attorney-client or internal communications of the Seller or its affiliates or Seller’s credit underwriting or due diligence analyses or related data (as distinguished from Environmental Reports, financial statements, credit reports, title reports, structural and engineering reports, appraisals and other reports, analyses or data provided by the Borrowers or third parties other than the Seller’s attorneys).  If a sub-servicer shall, as of the Closing Date, begin acting on behalf of the Master Servicer with respect to any Mortgage Loan pursuant to a written agreement between such parties, the Seller or its agent shall deliver a copy of the related Servicing File to the Master Servicer.

 

In addition, the Seller shall cause the Reserve Accounts, Cash Collateral Accounts and Lock-Box Accounts relating to the Mortgage Loans to be transferred to and held in the name of the Master Servicer on behalf of the Trustee as successor to the Seller.

 

(f)           Each of the Seller and the Purchaser will treat, and their respective records will reflect, the transfer of the Mortgage Loans to the Purchaser as a sale, including for tax and accounting purposes.  Following the transfer of the Mortgage Loans to the Purchaser, the Seller

 

  

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will not take any action inconsistent with the ownership of the Mortgage Loans by the Purchaser or its assignees.

 

(g)           Furthermore, it is the express intent of the parties hereto that the conveyance of the Mortgage Loans by Seller to Purchaser as provided in this Agreement be, and be construed as, a sale of the Mortgage Loans by Seller to Purchaser and not a pledge of the Mortgage Loans by Seller to Purchaser to secure a debt or other obligation of Seller.  However, in the event that, notwithstanding the intent of the parties, the Mortgage Loans are held to be property of Seller or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans:

 

(i)    this Agreement shall hereby create a security agreement within the meaning of Articles 8 and 9 of the Uniform Commercial Code in effect in the applicable state;

 

(ii)   the conveyance provided for in this Agreement shall hereby grant from Seller to Purchaser a security interest in and to all of Seller’s right, title, and interest, whether now owned or hereafter acquired, in and to:

 

(A)           all accounts, contract rights (including any guarantees), general intangibles, chattel paper, instruments, documents, money, deposit accounts, certificates of deposit, goods, letters of credit, advices of credit and investment property consisting of, arising from or relating to any of the property described in the Mortgage Loans, including the related Notes, Mortgages and title, hazard and other insurance policies, identified on the Mortgage Loan Schedule, and all distributions with respect thereto payable after the Cut-off Date;

 

(B)           all accounts, contract rights, general intangibles, chattel paper, instruments, documents, money, deposit accounts, certificates of deposit, goods, letters of credit, advices of credit and investment property arising from or by virtue of the disposition of, or collections with respect to, or insurance proceeds payable with respect to, or claims against other Persons with respect to, all or any part of the collateral described in clause (A) above (including any accrued discount realized on liquidation of any investment purchased at a discount), in each case, payable after the Cut-off Date; and

 

(C)           all cash and non-cash proceeds of the collateral described in clauses (A) and (B) above payable after the Cut-off Date;

 

(iii)    the possession by Purchaser or its assignee of the Notes and such other goods, letters of credit, advices of credit, instruments, money, documents, chattel paper or certificated securities shall be deemed to be possession by the secured party or possession by a purchaser or a Person designated by him or her, for purposes of perfecting the security interest pursuant to the Uniform Commercial Code (including, without limitation, Sections 9-306, 9-313 and 9-314 thereof) as in force in the relevant jurisdiction; and

 

(iv)    notifications to Persons holding such property, and acknowledgments, receipts, confirmations from Persons holding such property, shall be deemed to be

 

  

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notifications to, or acknowledgments, receipts or confirmations from, securities intermediaries, bailees or agents of, or Persons holding for (as applicable), Purchaser or its assignee for the purpose of perfecting such security interest under applicable law.

 

The Seller at the direction of the Purchaser or its assignee, shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this Agreement were deemed to create a security interest in the Mortgage Loans and the proceeds thereof, such security interest would be a perfected security interest of first priority under applicable law and will be maintained as such throughout the term of this Agreement.  In connection herewith, Purchaser and its assignee shall have all of the rights and remedies of a secured party and creditor under the Uniform Commercial Code as in force in the relevant jurisdiction and may execute and file such UCC Financing Statements as may be reasonably necessary or appropriate to accomplish the foregoing.

 

(h)           It is further acknowledged and agreed by the Seller that the Purchaser intends to convey all right, title and interest of the Purchaser in and to the Mortgage Loans and all rights and remedies under this Agreement (excluding the Purchaser’s rights and remedies under Sections 4(b)(ix), 6(e)-(g), 9 and 11 of this Agreement) to the Trustee on behalf of the Certificateholders, including, without limitation, all rights and remedies as may be available under Section 6 to the Purchaser in the event of a Material Breach or a Material Defect, and the Trustee on behalf of the Certificateholders, as assignee of the Purchaser, or such other party as may be specified in the Pooling and Servicing Agreement, shall be entitled to enforce any obligations of the Seller hereunder in connection with a Material Breach or a Material Defect as if the Trustee on behalf of the Certificateholders had been an original party to this Agreement.

 

SECTION 3.             Examination of Mortgage Files and Due Diligence Review.

 

The Seller shall reasonably cooperate with any examination of the Mortgage Files and Servicing Files that may be undertaken by or on behalf of the Purchaser.  The fact that the Purchaser has conducted or has failed to conduct any partial or complete examination of the Mortgage Files and/or Servicing Files shall not affect the Purchaser’s right to pursue any remedy available in equity or at law under Section 6 for a breach of the Seller’s representations, warranties and covenants set forth in or contemplated by Section 4.

 

SECTION 4.             Representations, Warranties and Covenants of the Seller.

 

(a)           The Seller hereby makes, as of the date hereof (or as of such other date specifically provided in the particular representation or warranty), to and for the benefit of the Purchaser, each of the representations and warranties set forth in Exhibit D with respect to each Mortgage Loan, subject to the exceptions set forth in Schedule D-1 to Exhibit D.

 

(b)           In addition, the Seller, as of the date hereof, hereby represents and warrants to, and covenants with, the Purchaser that:

 

(i)           The Seller is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware and is in compliance with the laws of each State in which any Mortgaged Property is located to the extent necessary to ensure

 

  

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the enforceability of each Mortgage Loan and to perform its obligations under this Agreement.

 

(ii)     The execution and delivery of this Agreement by the Seller, and the performance of, and compliance with, the terms of this Agreement by the Seller, do not violate the Seller’s organizational documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material agreement or other instrument to which it is a party or which is applicable to it or any of its assets, in each case which materially and adversely affects the ability of the Seller to carry out the transactions contemplated by this Agreement.

 

(iii)    The Seller has the full power and authority to enter into and consummate all transactions contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed and delivered this Agreement.

 

(iv)    This Agreement, assuming due authorization, execution and delivery by the Purchaser, constitutes a valid, legal and binding obligation of the Seller, enforceable against the Seller in accordance with the terms hereof, subject to (A) applicable bankruptcy, insolvency, reorganization, receivership, conservatorship, liquidation, moratorium and other laws affecting the enforcement of creditors’ rights generally, including if the Seller is determined to be a “financial company” or an affiliate thereof under Section 201 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the powers of the Federal Deposit Insurance Corporation as receiver under Title II (Orderly Liquidation Authority) of the Dodd-Frank Act, (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law, and (C) public policy considerations underlying the securities laws, to the extent that such public policy considerations limit the enforceability of the provisions of this Agreement that purport to provide indemnification or contribution for securities laws liabilities.

 

(v)     The Seller is not in violation of, and its execution and delivery of this Agreement and its performance of, and compliance with, the terms of this Agreement do not constitute a violation of, any law, any judgment, order or decree of any court or arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, which violation, in the Seller’s good faith and reasonable judgment, is likely to affect materially and adversely either the ability of the Seller to perform its obligations under this Agreement or the financial condition of the Seller.

 

(vi)    No litigation is pending or, to the best of the Seller’s knowledge, threatened against the Seller the outcome of which, in the Seller’s good faith and reasonable judgment, is likely to materially and adversely affect the ability of the Seller to perform its obligations under this Agreement or the financial condition of the Seller.

 

(vii)   The Seller has not dealt with any broker, investment banker, agent or other Person, other than the Purchaser, the Underwriters, the Initial Purchasers, and their respective affiliates, that may be entitled to any commission or compensation in

 

  

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connection with the sale of the Mortgage Loans or the consummation of any of the other transactions contemplated hereby.

 

(viii)    No consent, approval, authorization or order of, registration or filing with, or notice to, any governmental authority or court is required, under federal or state law (including, with respect to any bulk sale laws), for the execution, delivery and performance by the Seller of, or compliance by the Seller with, this Agreement, or the consummation by the Seller of any transaction contemplated hereby, other than (1) the filing or recording of financing statements, instruments of assignment and other similar documents necessary in connection with the Seller’s sale of the Mortgage Loans to the Purchaser pursuant to this Agreement, (2) such consents, approvals, authorizations, qualifications, registrations, filings or notices as have been obtained, made or given and (3) where the lack of such consent, approval, authorization, qualification, registration, filing or notice would not have a material adverse effect on the performance by the Seller under this Agreement.

 

(ix)      The Seller has not: (A) offered to sell, or solicited an offer to buy, any Non-Registered Certificate by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act: or (B) otherwise taken any action, or done anything, with respect to any Non-Registered Certificate that would require such Certificate or any offering or sale thereof to be registered under the Securities Act or registered or qualified under the securities or “blue sky” laws of any state or other jurisdiction. The Seller has not authorized and will not authorize any other person or entity to act, and will not itself act, in any manner contemplated by the prior sentence.

 

(c)           Upon discovery by any of the Seller or the parties to the Pooling and Servicing Agreement of a breach of any of the representations and warranties made pursuant to and set forth in subsection (b) above which materially and adversely affects the interests of the Purchaser or a breach of any of the representations and warranties made pursuant to subsection (a) above and set forth in Exhibit D which materially and adversely affects the value of any Mortgage Loan, the value of the related Mortgaged Property or the interests in such Mortgage Loan of the Purchaser or the Trustee on behalf of the Certificateholders, the party discovering such breach shall (if the discovering party is the Seller), or shall be required pursuant to the Pooling and Servicing Agreement (if the discovering party is a party to the Pooling and Servicing Agreement) to, give prompt written notice of such breach to the Seller and/or the other parties, as applicable.

 

SECTION 5.             Representations, Warranties and Covenants of the Purchaser.

 

(a)           The Purchaser, as of the date hereof, hereby represents and warrants to, and covenants with, the Seller that:

 

(i)    The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of State of Delaware.

 

  

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(ii)   The execution and delivery of this Agreement by the Purchaser, and the performance of, and compliance with, the terms of this Agreement by the Purchaser, do not violate the Purchaser’s organizational documents or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or result in the breach of, any material agreement or other instrument to which it is a party or which is applicable to it or any of its assets.

 

(iii)     The Purchaser has the full power and authority to enter into and consummate all transactions contemplated by this Agreement, has duly authorized the execution, delivery and performance of this Agreement, and has duly executed and delivered this Agreement.

 

(iv)     This Agreement, assuming due authorization, execution and delivery by the Seller, constitutes a valid, legal and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with the terms hereof, subject to (A) applicable bankruptcy, insolvency, reorganization, receivership, conservatorship, liquidation, moratorium and other laws affecting the enforcement of creditors’ rights generally, including if the Purchaser is determined to be a “financial company” or an affiliate thereof under Section 201 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the powers of the Federal Deposit Insurance Corporation as receiver under Title II (Orderly Liquidation Authority) of the Dodd-Frank Act, and (B) general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law.

 

(v)      The Purchaser is not in violation of, and its execution and delivery of this Agreement and its performance of, and compliance with, the terms of this Agreement will not constitute a violation of, any law, any judgment, order or decree of any court or arbiter, or any order, regulation or demand of any federal, state or local governmental or regulatory authority, which violation, in the Purchaser’s good faith and reasonable judgment, is likely to affect materially and adversely either the ability of the Purchaser to perform its obligations under this Agreement or the financial condition of the Purchaser.

 

(vi)     No litigation is pending or, to the best of the Purchaser’s knowledge, threatened against the Purchaser which would prohibit the Purchaser from entering into this Agreement or, in the Purchaser’s good faith and reasonable judgment, is likely to materially and adversely affect either the ability of the Purchaser to perform its obligations under this Agreement or the financial condition of the Purchaser.

 

(vii)     The Purchaser has not dealt with any broker, investment banker, agent or other Person, other than the Seller, the Underwriters, the Initial Purchasers and their respective affiliates, that may be entitled to any commission or compensation in connection with the purchase of the Mortgage Loans or the consummation of any of the transactions contemplated hereby.

 

(viii)    No consent, approval, authorization or order of, registration or filing with, or notice to, any governmental authority or court is required, under federal or state law, for the Purchaser’s execution, delivery and performance of or compliance by the

 

  

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Purchaser with this Agreement, or the consummation by the Purchaser of any transaction contemplated hereby, other than (1) such consents, approvals, authorizations, qualifications, registrations, filings or notices as have been obtained, made or given and (2) where the lack of such consent, approval, authorization, qualification, registration, filing or notice would not have a material adverse effect on the performance by the Purchaser under this Agreement.

 

(b)           Upon discovery by any of the parties hereto of a breach of any of the representations and warranties set forth above which materially and adversely affects the interests of the Seller, the party discovering such breach shall give prompt written notice of such breach to the other party or parties hereto.

 

SECTION 6.             Repurchases; Substitutions.

 

(a)           If the Purchaser discovers that any document constituting a part of a Mortgage File has not been delivered within the time periods provided for herein, has not been properly executed, is missing, does not appear to be regular on its face or contains information that does not conform in any material respect with the corresponding information set forth in the Mortgage Loan Schedule (each, a “Defect”), or discovers or receives notice of a breach of any representation or warranty of the Seller made pursuant to Section 4(a) of this Agreement with respect to any Mortgage Loan (a “Breach”), and if such Defect is a Material Defect or such Breach is a Material Breach, then the Purchaser (or, following the assignment of the Mortgage Loans to the Trust Fund, the Master Servicer, the Special Servicer, the Trustee, the Certificate Administrator, the Operating Advisor or the Custodian, on behalf of the Trust Fund) shall give prompt written notice thereof to the Seller.  If any such Defect or Breach materially and adversely affects the value of any Mortgage Loan, the value of the related Mortgaged Property or the interests in such Mortgage Loan of the Purchaser, then such Defect shall constitute a “Material Defect” or such Breach shall constitute a “Material Breach,” as the case may be; provided, however, that if any of the documents specified in clauses (i), (ii), (vii), (xi) and (xix) of the definition of “Mortgage File” is (subject to Sections 2(c) and 2(d) hereof) not delivered, and is certified as missing pursuant to Section 2.02 of the Pooling and Servicing Agreement, it shall be deemed a Material Defect.  Promptly upon receiving written notice of any Material Defect or Material Breach with respect to a Mortgage Loan, accompanied by a written demand to take the actions contemplated by this sentence, the Seller shall, not later than 90 days from the Seller’s receipt from the Purchaser (or, following the assignment of the Mortgage Loans to the Trust Fund, the Depositor, the Master Servicer, the Special Servicer, the Trustee, the Certificate Administrator, the Operating Advisor or the Custodian, on behalf of the Trust Fund) of notice of, and demand to take action with respect to, such Material Defect or Material Breach, as the case may be (or, in the case of a Material Defect or Material Breach relating to a Mortgage Loan not being a “qualified mortgage” within the meaning of the REMIC Provisions, not later than 90 days after the Seller or any party to the Pooling and Servicing Agreement discovers such Material Defect or Material Breach) (any such 90-day period, the “Initial Resolution Period”), (i) cure the same in all material respects, (ii) repurchase the affected Mortgage Loan at the applicable Repurchase Price or (iii) substitute a Qualifying Substitute Mortgage Loan for such affected Mortgage Loan (provided that in no event shall such substitution occur later than the second anniversary of the Closing Date) and pay to the Master Servicer for deposit into the Collection Account any Substitution Shortfall Amount in connection therewith; provided that if

 

  

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(i) such Material Defect or Material Breach (other than one relating to the immediately preceding proviso) is capable of being cured but not within the Initial Resolution Period, (ii) such Material Defect or Material Breach is not related to any Mortgage Loan’s not being a “qualified mortgage” within the meaning of the REMIC Provisions and (iii) the Seller has commenced and is diligently proceeding with the cure of such Material Defect or Material Breach within the Initial Resolution Period, then the Seller shall have an additional period equal to the applicable Resolution Extension Period to complete such cure or, failing such cure, to repurchase the Mortgage Loan or substitute a Qualifying Substitute Mortgage Loan.

 

If the Seller is notified of a Defect in any Mortgage File that also affects information set forth in the Mortgage Loan Schedule, the Seller shall promptly correct such Defect and provide a new, corrected Mortgage Loan Schedule to the Purchaser, which corrected Mortgage Loan Schedule shall be deemed to amend and replace the existing Mortgage Loan Schedule for all purposes.  The failure of the Master Servicer, the Special Servicer, the Operating Advisor, the Certificate Administrator or the Trustee to notify the Seller of a Material Defect or Material Breach shall not constitute a waiver of any cure or repurchase obligation, provided that the Seller must receive written notice thereof as described in this Section 6(a) before commencement of the Initial Resolution Period.

 

If (x) there exists a Breach of any representation or warranty on the part of the Seller as set forth in, or made pursuant to, representation 36 or 38 of Exhibit D to this Agreement relating to fees and expenses payable by the Borrower associated with the exercise of a defeasance option, a waiver of a “due-on-sale” provision or a “due-on-encumbrance” provision or the release of any Mortgaged Property, and (y) the related Loan Documents specifically prohibit the Master Servicer or Special Servicer from requiring the related Borrower to pay such fees and expenses, then, upon notice by the Master Servicer or Special Servicer, the Seller may cure such breach by transferring to the Collection Account, within 90 days of the Seller’s receipt of such notice, the amount of any such fees and expenses borne by the Trust Fund that are the basis of such Breach. Upon its making such deposit, the Seller shall be deemed to have cured such Breach in all respects.  Provided such payment is made, this paragraph describes the sole remedy available to the Purchaser and its assignees regarding any such Breach, regardless of whether it constitutes a Material Breach, and the Seller shall not be obligated to repurchase or otherwise cure such Breach.

 

Notwithstanding the foregoing provisions of this Section 6(a), in lieu of the Seller performing its obligations with respect to any Material Breach or Material Defect provided in the three preceding paragraphs, to the extent that the Seller and the Purchaser (or, following the assignment of the Mortgage Loans to the Trust Fund, the Special Servicer on behalf of the Trust Fund, and, if no Consultation Termination Event has occurred and is continuing, with the consent of the Controlling Class Representative) are able to agree upon a cash payment payable by the Seller to the Purchaser that would be deemed sufficient to compensate the Purchaser for a Material Breach or Material Defect (a “Loss of Value Payment”), the Seller may elect, in its sole discretion, to pay such Loss of Value Payment to the Purchaser; provided that a Material Defect or a Material Breach as a result of a Mortgage Loan not constituting a “qualified mortgage”, within the meaning of Code Section 860G(a)(3), may not be cured by a Loss of Value Payment.  Upon its making such payment, the Seller shall be deemed to have cured such Material Breach or Material Defect in all respects.  Provided such payment is made, this paragraph describes the

 

  

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sole remedy available to the Purchaser and its assignees regarding any such Material Breach or Material Defect, and the Seller shall not be obligated to repurchase or otherwise cure such Material Breach or Material Defect.

 

(b)           In connection with any repurchase of, or substitution for, a Mortgage Loan contemplated by this Section 6:

 

(i)       the Trustee, the Master Servicer (with respect to any such Mortgage Loan other than a Specially Serviced Loan) and the Special Servicer (with respect to any such Mortgage Loan that is a Specially Serviced Loan), pursuant to the Pooling and Servicing Agreement, shall each be required to tender to the Seller, and the Seller shall be entitled to receive therefrom, all portions of the Mortgage File and other documents pertaining to such Mortgage Loan possessed by it, upon delivery:

 

(A)            to the Master Servicer or the Special Servicer, as applicable, of a trust receipt, and

 

(B)            to the Trustee by the Master Servicer or the Special Servicer, as applicable, of a Request for Release and an acknowledgement by the Master Servicer or Special Servicer, as applicable, of its receipt of the Repurchase Price or the Substitution Shortfall Amount from the Seller;

 

(ii)     each document that constitutes a part of the Mortgage File that was endorsed or assigned to the Trustee shall be endorsed or assigned without recourse in the form of endorsement or assignment provided to the Trustee by the Seller, as the case may be, to the Seller as shall be necessary to vest in the Seller the legal and beneficial ownership of each Removed Mortgage Loan to the extent such ownership was transferred to the Trustee; and

 

 (iii)    the Trustee, the Master Servicer and the Special Servicer shall release, or cause the release of, any escrow payments and reserve funds held by or on behalf of the Trustee, the Master Servicer or the Special Servicer, as the case may be, in respect of such Removed Mortgage Loan(s) to the Seller.

 

(c)           This Section 6 provides the sole remedies available to the Purchaser, and its successors and permitted assigns (i.e., the Trustee and the holders of the Certificates) in respect of any Defect in a Mortgage File or any Breach.  If the Seller defaults on its obligations to cure, to repurchase, or to substitute for, any Mortgage Loan in accordance with this Section 6, or disputes its obligation to cure, to repurchase, or to substitute for, any Mortgage Loan in accordance with Section 6, the Purchaser may take such action as is appropriate to enforce such payment or performance, including, without limitation, the institution and prosecution of appropriate proceedings.

 

Notwithstanding the foregoing, if there is a Material Breach or Material Defect with respect to one or more Mortgaged Properties securing a Mortgage Loan, the Seller will not be obligated to repurchase the Mortgage Loan if (i) the affected Mortgaged Property may be released pursuant to the terms of any partial release provisions in the related Loan Documents (and such Mortgaged Property is, in fact, released), (ii) the remaining Mortgaged Property(ies)

 

  

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satisfy the requirements, if any, set forth in the Loan Documents and the Seller provides an Opinion of Counsel to the effect that such release would not cause an Adverse REMIC Event to occur and (iii) each Rating Agency then rating the Certificates shall have provided a No Downgrade Confirmation with respect to such release.

 

(d)           As to any Qualifying Substitute Mortgage Loan, at the direction of the Trustee, the Seller shall deliver to the Custodian for such Qualifying Substitute Mortgage Loan (with a copy to the Master Servicer), the related Mortgage File with the related Note endorsed as required by Exhibit B hereto.  Pursuant to the Pooling and Servicing Agreement, Monthly Payments due with respect to Qualifying Substitute Mortgage Loans in or prior to the month of substitution shall not be part of the Trust Fund and, if received by the Master Servicer, shall be remitted by the Master Servicer to the related Seller on the next succeeding Distribution Date.  For the month of repurchase or substitution, distributions to Certificateholders pursuant to the Pooling and Servicing Agreement will include the Monthly Payment(s) due on the related Removed Mortgage Loan and received by the Master Servicer or the Special Servicer on behalf of the Trust on or prior to the related date of repurchase or substitution, as applicable, and the Seller shall be entitled to retain all amounts received thereafter in respect of such Removed Mortgage Loan.

 

In any month in which the Seller substitutes one or more Qualifying Substitute Mortgage Loans for one or more Removed Mortgage Loans, pursuant to this Agreement, the Master Servicer will determine the applicable Substitution Shortfall Amount.  At the direction of the Certificate Administrator, the Seller shall deposit, or deliver to the Master Servicer for deposit, into the Collection Account cash equal to such amount concurrently with the delivery of the Mortgage Files for such Qualifying Substitute Mortgage Loans, without any reimbursement thereof.  Any Mortgage Loan that is repurchased or replaced by the Seller pursuant to this Section 6 shall constitute a “Removed Mortgage Loan”.

 

(e)           If the Seller (i) receives from any Person (other than the Depositor) any Repurchase Communication of a Repurchase Request; (ii) rejects any Repurchase Request or is in dispute with any party to the Pooling and Servicing Agreement or, if different, with the Person making any Repurchase Request as to the merits of such Repurchase Request (a “Dispute”); or (iii) receives a Repurchase Communication of a Repurchase Request Withdrawal, then the Seller shall deliver notice thereof (each, a “15Ga-1 Notice”) to the Depositor within ten Business Days of the Seller’s receipt thereof (or in the case of a rejection or Dispute, the occurrence thereof).  Each 15Ga-1 Notice shall include (i) the identity of the related Mortgage Loan, (ii) the date the Repurchase Communication of the Repurchase Request or the Repurchase Request Withdrawal was received, as applicable, and (iii) in the case of a Repurchase Request, the identity of the Person making such Repurchase Request and, if known, the basis for the Repurchase Request (as asserted in the Repurchase Request).

 

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

 

(f)           The Seller shall provide to the Depositor relevant portions of any Form ABS-15G that the Seller is required to file with the Securities and Exchange Commission (only to the extent that such portions relate to any Mortgage Loan) on or before the date that is five (5)

 

  

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Business Days before the date such Form ABS-15G is required to be filed with the Securities and Exchange Commission.

 

(g)           The Seller agrees that a 15Ga-1 Notice Provider will not, in connection with providing the Seller with any 15Ga-1 Notice (for purposes of this Section 6(g) only, as defined in the Pooling and Servicing Agreement), be required to provide any information protected by the attorney-client privilege or attorney work product doctrines.  In addition, the Seller hereby acknowledges that (i) any 15Ga-1 Notice provided pursuant to Section 2.03(d) of the Pooling and Servicing Agreement is so provided only to assist the Seller, the Depositor and its Affiliates to comply with Rule 15Ga-1 under the Exchange Act, Items 1104 and 1121 of Regulation AB and any other requirement of law or regulation and (ii) (A) no action taken by, or inaction of, a 15Ga-1 Notice Provider and (B) no information provided pursuant to Section 2.03(d) of the Pooling and Servicing Agreement by a 15Ga-1 Notice Provider, shall be deemed to constitute a waiver or defense to the exercise of any legal right the 15Ga-1 Notice Provider may have with respect to this Agreement, including with respect to any Repurchase Request that is the subject of a 15Ga-1 Notice.

 

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

 

SECTION 7.             Closing.

 

The closing of the purchase and sale of the Mortgage Loans (the “Closing”) shall be held at the offices of Cadwalader, Wickersham & Taft LLP, One World Financial Center, New York, New York 10281 at 10:00 a.m., New York City time, on the Closing Date.

 

The Closing shall be subject to each of the following conditions:

 

 (i)      All of the representations and warranties of the Seller and the Purchaser specified herein shall be true and correct as of the Closing Date, and the Aggregate Cut-off Date Balance shall be within the range permitted by Section 1 of this Agreement;

 

 (ii)     All documents specified in Section 8 (the “Closing Documents”), in such forms as are agreed upon and acceptable to the Purchaser and, in the case of the Pooling and Servicing Agreement (insofar as such agreement affects the obligations of the Seller hereunder or the rights of the Seller hereunder or thereunder) and other documents to be delivered by or on behalf of the Purchaser, to the Seller, shall be duly executed and delivered by all signatories as required pursuant to the respective terms thereof;

 

 (iii)    The Seller shall have delivered and released to the Trustee, the Purchaser or the Purchaser’s designee, as the case may be, all documents and funds required to be so delivered on or before the Closing Date pursuant to Section 2;

 

 (iv)    The result of any examination of the Mortgage Files and Servicing Files performed by or on behalf of the Purchaser pursuant to Section 3 shall be satisfactory to the Purchaser in its reasonable determination;

 

  

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 (v)     All other terms and conditions of this Agreement required to be complied with on or before the Closing Date shall have been complied with, and the Seller shall have the ability to comply with all terms and conditions and perform all duties and obligations required to be complied with or performed after the Closing Date;

 

 (vi)    The Seller shall have received the Mortgage Loan Purchase Price, and the Seller shall have paid or agreed to pay all fees, costs and expenses payable by it to the Purchaser as of the Closing Date pursuant to this Agreement; and

 

 (vii)    Neither the Underwriting Agreement nor the Certificate Purchase Agreement shall have been terminated in accordance with its terms.  The Underwriters shall have purchased all the Registered Certificates, and the Initial Purchasers shall have acquired all the Non-Registered Certificates.

 

Both parties agree to use their reasonable best efforts to perform their respective obligations hereunder in a manner that will enable the Purchaser to purchase the Mortgage Loans on the Closing Date.

 

SECTION 8.             Closing Documents.

 

The Closing Documents shall consist of the following:

 

(a)      This Agreement duly executed and delivered by the Purchaser and the Seller;

 

(b)          An Officer’s Certificate substantially in the form of Exhibit E hereto, executed by the Secretary or an assistant secretary of the Seller, and dated the Closing Date, and upon which the Purchaser, the Underwriters and the Initial Purchasers may rely, attaching thereto as exhibits (1) the Certificate of Incorporation and By-Laws of the Seller; (2) certificate of good standing regarding the Seller from the Secretary of State for the State of Delaware, dated not earlier than 30 days prior to the Closing Date; and (3) resolutions adopted by the board of directors of the Seller;

 

(c)           Power of Attorney of the Seller in the form of Exhibit C hereto;

 

(d)           Each of the obligations of the Seller required to be performed by it at or prior to the Closing Date pursuant to the terms of this Agreement shall have been duly performed and complied with and all of the representations and warranties (subject to the exceptions set forth on Schedule D-1 to Exhibit D to this Agreement) of the Seller under this Agreement shall be true and correct in all material respects as of the Closing Date or as of such other date as of which such representations and warranties are made under the terms of Exhibit D to this Agreement, and no event shall have occurred as of the Closing Date which would constitute a default on the part of the Seller under this Agreement, and the Purchaser shall have received a certificate to the foregoing effect signed by an authorized officer of the Seller substantially in the form of Exhibit F to this Agreement.

 

(e)           (1) Written opinions of counsel (which may include opinions of in-house counsel, outside counsel or a combination thereof) for the Seller, in form reasonably acceptable

 

  

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to counsel for the Purchaser and subject to such reasonable assumptions and qualifications as may be requested by counsel for the Seller and acceptable to counsel for the Purchaser, dated the Closing Date and addressed to the Purchaser, the Underwriters and the Initial Purchasers, together with (2) a letter from counsel to the Seller, in form reasonably acceptable to counsel for the Purchaser, dated the Closing Date and addressed to the Purchaser and the Underwriters or Initial Purchasers, as the case may be, substantially to the effect that (a) nothing has come to such counsel’s attention that would lead such counsel to believe that the Base Prospectus, the Preliminary FWP, the Prospectus Supplement, the Preliminary Memorandum or the Memorandum (each as defined in the Indemnification Agreement), as of the date thereof (or, in the case of the Preliminary FWP and the Preliminary Memorandum, as of the applicable Time of Sale (as defined in the Indemnification Agreement)) or as of the Closing Date contain, with respect to the Seller, the Mortgage Loans or such other topics upon which counsel to the Seller and counsel to the Purchaser may reasonably agree, any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein relating to the Seller, the Mortgage Loans or such other topics upon which counsel to the Seller and counsel to the Purchaser may reasonably agree, in the light of the circumstances under which they were made, not misleading and (b) the Mortgage Loan Seller Information (as defined in the Indemnification Agreement) in the Prospectus Supplement satisfies the applicable requirements of Regulation AB;

 

(f)           Any other opinions of counsel for the Seller reasonably requested by the Rating Agencies in connection with the issuance of the Certificates, each of which shall include the Purchaser and the Underwriters or the Initial Purchasers as addressees; and

 

(g)           Such further certificates, opinions and documents as the Purchaser may reasonably request.

 

SECTION 9.             Costs.

 

The Seller shall pay (or shall reimburse the Purchaser to the extent that the Purchaser has paid) (a) the fees and expenses of counsel to the Seller, (b) the expenses of filing or recording UCC assignments of financing statements, assignments of Mortgage and Reassignments of Assignments of Leases, Rents and Profits with respect to the Mortgage Loans as set forth in this Agreement, and (c) on the Closing Date, the applicable Sponsor’s Shared Expense Percentage of all Expenses (each as defined in the Memorandum of Understanding, dated November 14, 2011 (“MOU”), among the Depositor, the Seller, Natixis Real Estate Capital LLC, UBS and Natixis) to be borne by the Sponsors in accordance with the MOU.  All other costs and expenses, if any, in connection with the transactions contemplated hereunder shall be borne by the party incurring such cost or expense.

 

SECTION 10.           Notices.

 

All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given if (a) personally delivered, (b) mailed by registered or certified mail, postage prepaid and received by the addressee, (c) sent by overnight mail or courier service and received by the addressee or (d) transmitted by facsimile (or any other type of electronic transmission agreed upon by the parties) and confirmed by a writing delivered by any

 

  

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of the means described in (a), (b) or (c), and if (i) to the Purchaser, addressed to Citigroup Commercial Mortgage Securities Inc., 390 Greenwich Street, 5th Floor, New York, New York  10013, Attention: Paul Vanderslice (facsimile no. (212) 723-8599), and 388 Greenwich Street, 19th Floor, New York, New York 10013, Attention: Richard Simpson (facsimile no. (646) 328-2943), Email: richard.simpson@citi.com, with an electronic copy to Ryan M. O’Connor, Email: ryan.m.oconnor@citi.com; and (ii) to the Seller, addressed to UBS Real Estate Securities Inc. at 1285 Avenue of the Americas, New York, New York 10019, Attention: Nicholas G. Galeone, Email: nicholas.galeone@ubs.com (facsimile no. (212) 821-2943) with a copy to Henry Chung, Email: henry.chung@ubs.com (facsimile no. (212) 821-2943), with a copy to Greg Walker, Esq., Legal Department, Email: greg.walker@ubs.com (facsimile no. (212) 882-5046).

 

SECTION 11.           Notice of Exchange Act Reportable Events.

 

The Seller hereby agrees to deliver or cause to be delivered to the Depositor, the Trustee and the Certificate Administrator any and all certifications, reports, documents and other information relating to the Seller, Midland as primary servicer of any Mortgage Loans, KeyCorp Real Estate Capital Markets, Inc. as primary servicer of any Mortgage Loans or any “significant obligor” (within the meaning of Item 1101(k) of Regulation AB) (“Disclosures”) that are required to be reported on or filed as an exhibit to (a) any Annual Report on Form 10-K (“Form 10-K”) with respect to the Trust Fund, insofar as such Disclosures are required under any of Items 1112(b), 1117, 1119, 1122 and/or 1123 of Regulation AB (by reason of General Instruction J. to Form 10-K and Item 601 of Regulation S-K (17 CFR §229.10, et seq.), (b) any Distribution Report on Form 10-D (“Form 10-D”) with respect to the Trust Fund, insofar as such Disclosures are required under any of Items 1112(b), 1117 and/or 1121(c)(2) of Regulation AB by reason of Item 1, Item 2 and/or Item 6 of Form 10-D or (c) any Current Report on Form 8-K (“Form 8-K”) with respect to the Trust Fund, insofar as such Disclosures are required under Item 1.03 and/or Item 6.02 of Form 8-K.  In each case, the Disclosure that is to be delivered by the Seller in accordance with this Section 11 is to be formatted in a manner that is reasonably appropriate for inclusion in the applicable form (that is, Form 10-K, Form 10-D and/or Form 8-K, as applicable).  If the particular Disclosure constitutes the reporting of an event, then the Seller shall deliver or cause to be delivered to the Certificate Administrator, the Trustee and the Purchaser proposed disclosure language relating to such event.  The Seller shall deliver or cause to be delivered to the Certificate Administrator, the Trustee and the Depositor Disclosures that are required to be reported on or filed as an exhibit to (a) any Form 8-K, no more than 2 Business Days following the occurrence of the applicable reportable event, (b) any Form 10-D, no later than 5 days following the related Distribution Date to which such Form 10-D relates, and (c) any Form 10-K, no later than March 1 of the calendar year immediately following the calendar year as to which such Form 10-K relates.

 

The obligation of the Seller to provide the above referenced Disclosures will terminate upon notice or other written confirmation from the Purchaser that the reporting requirements with respect to the Trust Fund under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) have been suspended.  The Seller hereby acknowledges that the information to be provided by it pursuant to this Section will be used in the preparation of reports meeting the reporting requirements of the Depositor with respect to the Trust Fund under Section 13(a) and/or Section 15(d) of the Exchange Act.

 

  

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The Seller shall reimburse the Certificate Administrator for the Seller’s Percentage Interest in any reasonable fees assessed and any expenses incurred by the Certificate Administrator in connection with including any Additional Form 10-D Disclosure pursuant to Section 10.06 of the Pooling and Servicing Agreement, Additional Form 10-K Disclosure pursuant to Section 10.06 of the Pooling and Servicing Agreement and Form 8-K Disclosure Information pursuant to Section 10.09 of the Pooling and Servicing Agreement, except (a) in the event any such Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure solely relates to the Seller and/or any Mortgage Loan, in which case the Seller shall reimburse the Certificate Administrator for 100% of any reasonable fees assessed and any expenses incurred by the Certificate Administrator in connection therewith, and (b) in the event any such Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or Form 8-K Disclosure solely relates to the seller of the Other Mortgage Loans and/or any Other Mortgage Loan, in which case the Seller shall have no such reimbursement obligation in connection therewith.

 

“Percentage Interest” shall mean 81.6%.

 

SECTION 12.           Representations, Warranties and Agreements to Survive Delivery.

 

All representations, warranties and agreements contained in this Agreement, incorporated herein by reference or contained in the certificates of officers of the Seller submitted pursuant hereto, shall remain operative and in full force and effect and shall survive delivery of the Mortgage Loans by the Seller to the Purchaser or its designee.

 

SECTION 13.           Severability of Provisions.

 

Any part, provision, representation, warranty or covenant of this Agreement that is prohibited or which is held to be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.  Any part, provision, representation, warranty or covenant of this Agreement that is prohibited or unenforceable or is held to be void or unenforceable in any particular 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 particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereto waive any provision of law which prohibits or renders void or unenforceable any provision hereof.

 

SECTION 14.           Counterparts.

 

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

 

  

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SECTION 15.          GOVERNING LAW.

 

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

 

SECTION 16.           WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION.

 

TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, EACH PARTY HERETO WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY ASSIGNMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PARTY AGAINST THE OTHER PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH PARTY HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT, ANY ASSIGNMENT OR ANY PROVISION HEREOF OR THEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY ASSIGNMENT.

 

TO THE FULLEST EXTENT PERMITTED UNDER APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY (I) SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE AND FEDERAL COURTS SITTING IN NEW YORK CITY WITH RESPECT TO MATTERS ARISING OUT OF OR RELATING TO THIS AGREEMENT; (II) AGREES THAT ALL CLAIMS WITH RESPECT TO SUCH MATTERS MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURTS; (III) WAIVES THE DEFENSE OF AN INCONVENIENT FORUM IN ANY ACTION OR PROCEEDING INVOLVING SUCH CLAIMS IN ANY SUCH COURT; AND (IV) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

  

  

20

  

 

SECTION 17.           Further Assurances.

 

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

 

SECTION 18.           Successors and Assigns.

 

The rights and obligations of the Seller under this Agreement shall not be assigned by the Seller without the prior written consent of the Purchaser, except that any Person into which the Seller may be merged or consolidated, or any corporation or other entity resulting from any merger, conversion or consolidation to which the Seller is a party, or any Person succeeding to all or substantially all of the business of the Seller, shall be the successor to the Seller hereunder.  The Purchaser has the right to assign its interest under this Agreement, in whole or in part (excluding the Purchaser’s rights and remedies under Sections 4(b)(ix), 6(e)-(g), 9 and 11 of this Agreement), to the Trustee, for the benefit of the Certificateholders, as may be required to effect the purposes of the Pooling and Servicing Agreement and, upon such assignment, the Trustee shall, to the extent of such assignment, succeed to the rights hereunder of the Purchaser, provided that the Trustee shall have no right to further assign such rights to any other Person.  Subject to the foregoing, this Agreement shall bind and inure to the benefit of and be enforceable by the Seller and the Purchaser, and their permitted successors and permitted assigns.

 

SECTION 19.           Amendments.

 

No term or provision of this Agreement may be amended, waived, modified or in any way altered, unless such amendment, waiver, modification or alteration is in writing and signed by a duly authorized officer of the party against whom such amendment, waiver, modification or alteration is sought to be enforced.

 

  

21

  

 

IN WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be signed hereto by their respective duly authorized officers as of the date first above written.

 

	 	

UBS REAL ESTATE SECURITIES INC.

	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title:
	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title:
	 	 	 
	 	
CITIGROUP COMMERCIAL MORTGAGE SECURITIES INC.

	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title:

 

  

22

  

 

EXHIBIT A

 

MORTGAGE LOAN SCHEDULE

 

The Mortgage Loan Schedule shall set forth, among other things, the following information with respect to each Mortgage Loan:

 

 (i)      the Asset Number;

 

 (ii)     the Mortgage Loan name;

 

(iii)     the street address (including city, state and zip code) of the related Mortgaged Property;

 

 (iv)    the Mortgage Rate in effect as of the Cut-off Date;

 

 (v)     the original principal balance;

 

(vi)     the Stated Principal Balance as of the Cut-off Date;

 

(vii)    the Maturity Date for each Mortgage Loan;

 

(viii)   the Due Date;

 

(ix)     the amount of the Monthly Payment due on the first Due Date following the Cut-off Date;

 

(x)      the Servicing Fee Rate;

 

(xi)     whether the Mortgage Loan is an Actual/360 Mortgage Loan; and

 

(xii)    whether any letter of credit is held by the lender as a beneficiary or is assigned as security for such Mortgage Loan.

 

Such list may be in the form of more than one list, collectively setting forth all of the information required.  Certain of the above-referenced items are described on the Mortgage Loan Schedule attached hereto.

 

  

A-1

  

 

	  	 	  	 	  	 	  	  	  	  	  	  	  	  	  	  	  	
Servicing Fees

	  	  
	
ID

	 	
Property Flag

	 	
Property Name

	 	
Address

	
City

	
State

	
Zip Code

	
Interest Rate

	
Original Balance

	
Cut-Off Balance

	
Maturity Date

	
Payment Date

	
P&I Monthly

Debt

Service ($)

	
Current Monthly

Debt

Service ($)

	
Sub Serviced  (Y/N)

	
Sub  Servicer  Name

	
Sub  Servicer  Fee Rate

	
Master  Servicer  Fee Rate

	
Primary  Servicer  Fee Rate

	
Interest Calculation (30/360/Act/360) 

	
Letter of Credit

	
1

	 	
Loan

	 	
Trinity Centre

	 	
111-115 Broadway

	
New York

	
NY

	
10006

	
5.8975%

	
   72,000,000 

	
   72,000,000 

	
 9/6/2021

	
6

	
                           438,247 

	
                           358,765 

	
No

	
NAP

	
0.0000% 

	
 0.0400% 

	
 0.0700% 

	
Actual/360

	
None

	
2

	 	
Loan

	 	
Poughkeepsie Galleria

	 	
2001 South Road

	
Poughkeepsie

	
NY

	
12601

	
6.6115%

	
   69,750,000 

	
   69,694,662 

	
 11/6/2021

	
6

	
                            439,251 

	
                            439,251 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0100%

	
Actual/360

	
None

	
4

	 	
Loan

	 	
1700 Market Street

	 	
1700-1740 Market Street

	
Philadelphia

	
PA

	
19103

	
5.1700%

	
   49,950,000 

	
   49,950,000 

	
 10/6/2016

	
6

	
                           273,356 

	
                             218,190 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
6

	 	
Loan

	 	
One Montgomery Street

	 	
One Montgomery Street

	
San Francisco

	
CA

	
94104

	
5.6695%

	
    31,550,000 

	
    31,550,000 

	
 9/6/2021

	
6

	
                            182,507 

	
                               151,131 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
7

	 	
Loan

	 	
Sun Products Distribution Center

	 	
487 Central Avenue

	
Bowling Green

	
KY

	
42101

	
6.4765%

	
   28,000,000 

	
   28,000,000 

	
 12/6/2021

	
6

	
                           208,373 

	
                             153,217 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
8

	 	
Loan

	 	
Bethesda Health Medical Office

	 	
10301 Hagen Ranch Road

	
Boynton Beach

	
FL

	
33437

	
6.4390%

	
   26,300,000 

	
   26,300,000 

	
 11/6/2021

	
6

	
                             165,180 

	
                             143,081 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
9

	 	
Loan

	 	
Marriott Buffalo Niagara

	 	
1340 Millersport Highway

	
Amherst

	
NY

	
14221

	
6.3000%

	
   25,000,000 

	
   24,933,544 

	
9/6/2021

	
6

	
                            154,743 

	
                            154,743 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
10

	 	
Loan

	 	
Doubletree Chattanooga

	 	
407 Chestnut Street

	
Chattanooga

	
TN

	
37402

	
5.6500%

	
   23,000,000 

	
   22,798,343 

	
6/6/2021

	
6

	
                            143,308 

	
                            143,308 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
11

	 	
Loan

	 	
Hospitality Specialists Portfolio - Pool 2

	 	
Various

	
Various

	
Various

	
 Various 

	
6.5000%

	
   22,000,000 

	
    21,945,077 

	
 10/6/2021

	
6

	
                            148,546 

	
                            148,546 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
11

	 	
Property

	 	
Residence Inn Moline

	 	
4600 53rd Street

	
Moline

	
IL

	
61265

	
6.5000%

	
     8,488,000 

	
      8,466,810 

	  	  	  	  	  	  	  	  	  	  	  
	
11

	 	
Property

	 	
Hampton Inn & Suites Moline

	 	
2450 69th Avenue

	
Moline

	
IL

	
61265

	
6.5000%

	
     8,084,000 

	
      8,063,818 

	  	  	  	  	  	  	  	  	  	  	  
	
11

	 	
Property

	 	
Hampton Inn Stevensville

	 	
5050 Red Arrow Highway

	
Stevensville

	
MI

	
49127

	
6.5000%

	
     5,428,000 

	
      5,414,449 

	  	  	  	  	  	  	  	  	  	  	  
	
12

	 	
Loan

	 	
Hospitality Specialists Portfolio - Pool 1

	 	
Various

	
Various

	
MI

	
Various

	
6.5000%

	
    21,000,000 

	
   20,947,573 

	
 10/6/2021

	
6

	
                             141,794 

	
                             141,794 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
12

	 	
Property

	 	
Springhill Suites Grand Rapids

	 	
5250 28th Street Southeast

	
Grand Rapids

	
MI

	
49512

	
6.5000%

	
      8,157,000 

	
      8,136,636 

	  	  	  	  	  	  	  	  	  	  	  
	
12

	 	
Property

	 	
Hampton Inn & Suites Grand Rapids

	 	
5200 28th Street Southeast

	
Grand Rapids

	
MI

	
49512

	
6.5000%

	
     7,055,000 

	
     7,037,387 

	  	  	  	  	  	  	  	  	  	  	  
	
12

	 	
Property

	 	
Residence Inn Holland

	 	
631 Southpoint Ridge Road

	
Holland

	
MI

	
49423

	
6.5000%

	
     5,788,000 

	
     5,773,550 

	  	  	  	  	  	  	  	  	  	  	  
	
13

	 	
Loan

	 	
Chicago Portfolio

	 	
Various

	
Chicago

	
IL

	
Various

	
6.1115%

	
   20,000,000 

	
    19,964,335 

	
 10/6/2021

	
6

	
                             121,348 

	
                             121,348 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
13

	 	
Property

	 	
343 West Erie Street

	 	
343 West Erie Street

	
Chicago

	
IL

	
60654

	
6.1115%

	
     9,968,254 

	
     9,950,478 

	  	  	  	  	  	  	  	  	  	  	  
	
13

	 	
Property

	 	
747 North LaSalle Street

	 	
747 North LaSalle Street

	
Chicago

	
IL

	
60654

	
6.1115%

	
      5,523,810 

	
      5,513,959 

	  	  	  	  	  	  	  	  	  	  	  
	
13

	 	
Property

	 	
600 South Clark Street

	 	
600 South Clark Street

	
Chicago

	
IL

	
60605

	
6.1115%

	
     4,507,937 

	
     4,499,898 

	  	  	  	  	  	  	  	  	  	  	  
	
14

	 	
Loan

	 	
560 Lincoln Road

	 	
560 Lincoln Road

	
Miami Beach

	
FL

	
33139

	
5.8905%

	
    18,432,500 

	
    18,432,500 

	
 9/6/2021

	
6

	
                             109,218 

	
                               91,737 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
15

	 	
Loan

	 	
Shops at Greenwood

	 	
9600-9696 East Arapahoe Road, 6806-6883 South Dallas Way, 6800-6825 South Dallas Court and 6801-6855 South Dayton Street 

	
Greenwood Village

	
CO

	
80112

	
6.1400%

	
    17,800,000 

	
    17,800,000 

	
 12/6/2021

	
6

	
                            108,327 

	
                            108,327 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
16

	 	
Loan

	 	
Tops Self Storage

	 	
3485 Old Conejo Road

	
Newbury Park

	
CA

	
91320

	
6.3940%

	
    17,200,000 

	
    17,200,000 

	
 12/6/2021

	
6

	
                             107,519 

	
                             107,519 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
17

	 	
Loan

	 	
Dawntree Apartments

	 	
1834 East Peters Colony Road

	
Carrollton

	
TX

	
75007

	
5.4840%

	
     15,182,000 

	
     15,182,000 

	
 8/6/2021

	
6

	
                              86,049 

	
                              70,345 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
18

	 	
Loan

	 	
Beta Center

	 	
5151-5171 Glenwood Avenue

	
Raleigh

	
NC

	
27612

	
6.5010%

	
    14,400,000 

	
    14,400,000 

	
 10/6/2021

	
6

	
                               91,027 

	
                              79,096 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
19

	 	
Loan

	 	
Addison Park 

	 	
2190 Northwest 4th Court

	
Boca Raton

	
FL

	
33431

	
5.9140%

	
    13,250,000 

	
      13,211,760 

	
 9/6/2021

	
6

	
                              78,709 

	
                              78,709 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
20

	 	
Loan

	 	
Plaza Mall of Georgia - Phase II

	 	
3480 Financial Center Way 

	
Buford

	
GA 

	
30519

	
5.9640%

	
     11,550,000 

	
     11,550,000 

	
 12/6/2021

	
6

	
                               68,981 

	
                               68,981 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
22

	 	
Loan

	 	
Kirkman Oaks Shopping Center

	 	
4646 South Kirkman Road

	
Orlando

	
FL

	
32811

	
6.5450%

	
     8,300,000 

	
     8,292,562 

	
 11/6/2021

	
6

	
                              52,708 

	
                              52,708 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
23

	 	
Loan

	 	
Holiday Inn Express Cooperstown

	 	
4758 State Highway 28

	
Cooperstown

	
NY

	
13326

	
6.2500%

	
     7,400,000 

	
      7,351,994 

	
 7/6/2016

	
6

	
                               48,816 

	
                               48,816 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
25

	 	
Loan

	 	
Northview Plaza

	 	
10675 East Northwest Highway

	
Dallas

	
TX

	
75238

	
5.8000%

	
     7,200,000 

	
      7,192,554 

	
 11/6/2021

	
6

	
                              42,246 

	
                              42,246 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
26

	 	
Loan

	 	
Preston Lloyd Shopping Center

	 	
19009 Preston Road

	
Dallas

	
TX

	
75252

	
5.9475%

	
     6,500,000 

	
     6,500,000 

	
 12/6/2021

	
6

	
                              38,752 

	
                              38,752 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
27

	 	
Loan

	 	
Holiday Inn Express Richmond Airport

	 	
491 International Center Drive

	
Sandston

	
VA

	
23150

	
6.1500%

	
      6,100,000 

	
       6,075,110 

	
 9/6/2021

	
6

	
                              39,864 

	
                              39,864 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
28

	 	
Loan

	 	
Westpointe Shopping Center

	 	
8603 State Highway 151 

	
San Antonio 

	
TX

	
78245

	
6.1545%

	
     6,050,000 

	
     6,050,000 

	
 12/6/2021

	
6

	
                              36,876 

	
                              36,876 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
30

	 	
Loan

	 	
StorQuest Oxnard

	 	
1781 Jones Way 

	
Oxnard

	
CA

	
93033

	
6.2045%

	
     5,300,000 

	
     5,300,000 

	
 12/6/2021

	
6

	
                              32,476 

	
                              32,476 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
31

	 	
Loan

	 	
Countryside MHC

	 	
3059 Bixler Road 

	
Newfane

	
NY

	
14108

	
6.0000%

	
     3,600,000 

	
     3,600,000 

	
 12/6/2021

	
6

	
                               21,584 

	
                               21,584 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

	
32

	 	
Loan

	 	
River View Estates

	 	
1010 South 74th Terrace

	
Kansas City

	
KS

	
66111

	
6.4610%

	
     3,525,000 

	
      3,521,789 

	
 11/6/2021

	
6

	
                               22,190 

	
                               22,190 

	
No

	
NAP

	
0.0000%

	
0.0400%

	
0.0700%

	
Actual/360

	
None

 

  

  

  

 

EXHIBIT B

 

THE MORTGAGE FILE

 

The “Mortgage File” for any Mortgage Loan shall, subject to Sections 2(b), 2(c) and 2(d) of this Agreement, collectively consist of the following documents:

 

(i)    (A) the original Note, bearing, or accompanied by, all prior or intervening endorsements, endorsed by the most recent endorsee prior to the Trustee or, if none, by the Originator, without recourse, either in blank or to the order of the Trustee in the following form: “Pay to the order of Deutsche Bank Trust Company Americas, as Trustee for the registered holders of UBS-Citigroup Commercial Mortgage Trust 2011-C1, Commercial Mortgage Pass-Through Certificates, Series 2011-C1, without recourse” and (B) in the case of a Companion Loan, a copy of the executed Note for such Companion Loan, if applicable;

 

(ii)    the original (or a copy thereof certified from the applicable recording office) of the Mortgage and, if applicable, the originals (or copies thereof certified from the applicable recording office) of any intervening assignments thereof showing a complete chain of assignment from the Originator of the Mortgage Loan or Loan Combination to the most recent assignee of record thereof prior to the Trustee, if any, in each case with evidence of recording indicated thereon;

 

(iii)   an original assignment of the Mortgage, in recordable form, executed by the most recent assignee of record thereof prior to the Trustee or, if none, by the Originator, either in blank or in favor of the Trustee (in such capacity);

 

(iv)    (A) an original or copy of any related security agreement (if such item is a document separate from the Mortgage) and, if applicable, the originals or copies of any intervening assignments thereof showing a complete chain of assignment from the Originator of the Mortgage Loan (or Loan Combination) to the most recent assignee thereof prior to the Trustee, if any; and (B) an original assignment of any related security agreement (if such item is a document separate from the related Mortgage) executed by the most recent assignee thereof prior to the Trustee or, if none, by the Originator, either in blank or in favor of the Trustee (in such capacity), which assignment may be included as part of the corresponding assignment of Mortgage referred to in clause (iii) above;

 

 (v)     (A) stamped or certified copies of any UCC financing statements and continuation statements which were filed in order to perfect (and maintain the perfection of) any security interest held by the Originator of the Mortgage Loan (and each assignee of record prior to the Trustee) in and to the personalty of the Borrower at the Mortgaged Property (in each case with evidence of filing or recording thereon) and which were in the possession of the Seller (or its agent) at the time the Mortgage Files were delivered to the Custodian, together with original UCC-2 or UCC-3 assignments of financing statements showing a complete chain of assignment from the secured party named in such UCC-1 financing statement to the most recent assignee of record thereof prior to the Trustee, if any, and (B) if any such security interest is perfected and the earlier UCC financing statements and continuation statements were in the possession of the

 

  

B-1

  

 

Seller, an assignment of UCC financing statement by the most recent assignee of record prior to the Trustee or, if none, by the Seller, evidencing the transfer of such security interest, either in blank or in favor of the Trustee; provided that other evidence of filing or recording reasonably acceptable to the Trustee may be delivered in lieu of delivering such UCC financing statements including, without limitation, evidence of such filed or recorded UCC financing statement as shown on a written UCC search report from a reputable search firm, such as CSC/LexisNexis Document Solutions, Corporation Service Company, CT Corporation System and the like or printouts of on-line confirmations from such UCC filing or recording offices or authorized agents thereof;

 

 (vi)    the original or a copy of the Loan Agreement relating to such Mortgage Loan, if any;

 

 (vii)    the original or a copy of the lender’s title insurance policy issued in connection with the origination of the Mortgage Loan, together with all endorsements or riders (or copies thereof) that were issued with or subsequent to the issuance of such policy, insuring the priority of the Mortgage as a first lien on the Mortgaged Property or, subject to Section 2(d) of this Agreement, a “marked-up” commitment to insure marked as binding and countersigned by the related insurer or its authorized agent (which may be a pro forma or specimen title insurance policy which has been accepted or approved as binding in writing by the related title insurance company), or, subject to Section 2(d) of this Agreement, an agreement to provide the same pursuant to binding escrow instructions executed by an authorized representative of the title company;

 

(viii)    (A) the original or a copy of the related Assignment of Leases, Rents and Profits (if such item is a document separate from the Mortgage) and, if applicable, the originals or copies of any intervening assignments thereof showing a complete chain of assignment from the Seller of the Mortgage Loan or Pari Passu Loan Combination to the most recent assignee of record thereof prior to the Trustee, if any, in each case with evidence of recording thereon; and (B) an original assignment of any related Assignment of Leases, Rents and Profits (a “Reassignment of Assignment of Leases, Rents and Profits”) (if such item is a document separate from the Mortgage), in recordable form, executed by the most recent assignee of record thereof prior to the Trustee or, if none, by the Seller, either in blank or in favor of the Trustee (in such capacity), which assignment may be included as part of the corresponding assignment of Mortgage referred to in clause (iii) above;

 

 (ix)      the original or a copy of any environmental indemnity agreements and copies of any environmental insurance policies pertaining to the Mortgaged Properties required in connection with origination of the Mortgage Loans (or Loan Combinations, if applicable), if any, and copies of Environmental Reports;

 

 (x)       copies of the currently effective Management Agreements, if any, for the Mortgaged Properties;

 

 (xi)      if the Borrower has a leasehold interest in the related Mortgaged Property, the original ground lease and any related lessor estoppel or similar agreements or a copy thereof;

 

  

B-2

  

 

 (xii)     if the related assignment of contracts is separate from the Mortgage, the original executed version of such assignment of contracts and the assignment thereof to the Trustee;

 

 (xiii)    if any related Lock-Box Agreement or Cash Collateral Account Agreement is separate from the Mortgage or Loan Agreement, a copy thereof; with respect to the Reserve Accounts, Cash Collateral Accounts and Lock-Box Accounts, if any, a copy of the UCC-1 financing statements, if any, submitted for filing with respect to the mortgagee’s security interest in the Reserve Accounts, Cash Collateral Accounts and Lock-Box Accounts and all funds contained therein (and UCC-3 assignments of financing statements assigning such UCC-1  financing statements to the Trustee on behalf of the Certificateholders or, with respect to any Loan Combination, on behalf of Certificateholders and the related Companion Loan Holders) and copies of any account control agreements related thereto;

 

 (xiv)    originals or copies of all assumption, modification, written assurance and substitution agreements, if any, with evidence of recording thereon if appropriate, in those instances where the terms or provisions of the Mortgage, Note or any related security document have been modified or the Mortgage Loan or Loan Combination  has been assumed;

 

(xv)    the original or a copy of any guaranty of the obligations of the Borrower under the Mortgage Loan or Loan Combination together with, as applicable, (A)  the original or copies of any intervening assignments of such guaranty showing a complete chain of assignment from the Originator of the Mortgage Loan to the most recent assignee thereof prior to the Trustee, if any, and (B) an original assignment of such guaranty executed by the most recent assignee thereof prior to the Trustee or, if none, by the Originator;

 

(xvi)   the original or a copy of the power of attorney (with evidence of recording thereon, if appropriate) granted by the related Borrower if the Mortgage, Note or other document or instrument referred to above was signed on behalf of the Borrower pursuant to such power of attorney;

 

(xvii)   with respect to each Pari Passu Loan Combination, a copy of the related Co-Lender Agreement and a copy of the Pari Passu Companion Loan Securitization Agreement, if applicable;

 

 (xviii)   with respect hospitality properties, a copy of the franchise agreement, if any, an original or copy of the comfort letter, if any, and any transfer documents with respect to any such comfort letter;

 

(xix)     the original (or copy, if the original is held by the Master Servicer pursuant to Section 2(d) of this Agreement) of any letter of credit held by the lender as beneficiary or assigned as security for such Mortgage Loan;

 

(xx)     the appropriate assignment or amendment documentation related to the assignment to the Trust of any letter of credit securing such Mortgage Loan (or copy thereof, if the original is held by the Master Servicer pursuant to Section 2(d) of this Agreement) which entitles the Master Servicer on behalf of the Trust to draw thereon; and

 

  

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(xxi)   (A) if applicable, the originals or copies of any intervening assignments of unrecorded Loan Documents showing a complete chain of assignment from the Originator of the related Mortgage Loan or Pari Passu Loan Combination to the most recent assignee thereof prior to the Trustee, if any; and (B) an original assignment of unrecorded Loan Documents executed by the most recent assignee thereof prior to the Trustee or, if none, by the Originator, either in blank or in favor of the Trustee (in such capacity), which assignment may be included as part of the corresponding assignment of Mortgage referred to in clause (iii) above.

 

provided that whenever the term “Mortgage File” is used to refer to documents actually received by the Purchaser or the Trustee, such term shall not be deemed to include such documents and instruments required to be included therein unless they are actually so received.  The original assignments referred to in clauses (iii), (iv)(B), (viii)(B) and (xv)(B), may be in the form of one or more instruments in recordable form in any applicable filing or recording offices.

  

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EXHIBIT C

 

FORM OF POWER OF ATTORNEY

 

RECORDING REQUESTED BY:

[_____]

 

AND WHEN RECORDED MAIL TO:

 

[_____]

[_____]

[_____]

Attention:  [_____]

 

 

POWER OF ATTORNEY

([_____])

 

KNOW ALL MEN BY THESE PRESENTS, that UBS REAL ESTATE SECURITIES INC., as seller under that certain Mortgage Loan Purchase Agreement, dated and effective December 22, 2011 (the “Mortgage Loan Purchase Agreement”), does hereby appoint [WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Master Servicer”)][MIDLAND LOAN SERVICES, A DIVISION OF PNC BANK, NATIONAL ASSOCIATION (the “Special Servicer”)], as [master][special] servicer under the Pooling and Servicing Agreement, dated as of December 1, 2011, by and among Citigroup Commercial Mortgage Securities Inc., as depositor, Wells Fargo Bank, National Association, as master servicer, Midland Loan Services, a Division of PNC Bank, National Association, as special servicer, TriMont Real Estate Advisors, Inc., as operating advisor, and Deutsche Bank Trust Company Americas, as trustee, certificate administrator, paying agent and custodian, and any other party thereto, as its true and lawful attorney-in-fact for it and in its name, place, stead and for its use and benefit:

 

To perform any and all acts which may be necessary or appropriate to enable the [Master][Special] Servicer to take such action as is necessary to effect the delivery, assignment and/or recordation of any documents and/or instruments relating to any Mortgage Loan (as defined in the Mortgage Loan Purchase Agreement) which has not been delivered, assigned or recorded at the time required for enforcement as provided in the Mortgage Loan Purchase Agreement, giving and granting unto the [Master][Special] Servicer full power and authority to do and perform any and every lawful act necessary, requisite, or proper in connection with the foregoing and hereby ratifying, approving or confirming all that

 

  

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the [Master][Special] Servicer shall lawfully do or cause to be done by virtue hereof.

 

  

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IN WITNESS WHEREOF, the undersigned caused this power of attorney to be executed as of December 29, 2011.

 

	 	

UBS REAL ESTATE SECURITIES INC.

	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title:
	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title: 

 

  

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EXHIBIT D

 

MORTGAGE LOAN REPRESENTATIONS AND WARRANTIES

 

REPRESENTATIONS AND WARRANTIES OF THE SELLER

REGARDING THE INDIVIDUAL MORTGAGE LOANS

 

With respect to each Mortgage Loan, the Seller hereby represents and warrants, as of the date herein specified or, if no such date is specified, as of the Closing Date, except as set forth on Schedule D-1 hereto, that:

 

1)            Payment Record.  No Mortgage Loan is 30 days or more delinquent in payment of principal and interest (without giving effect to any applicable grace period in the related Note) and no Mortgage Loan has been 30 days or more (without giving effect to any applicable grace period in the related Note) past due.

 

2)            Fixed Rate Loan.  Each Mortgage Loan (exclusive of any default interest, late charges or prepayment premiums) is a fixed rate mortgage loan with a term to maturity, at origination or as of the most recent modification, as set forth in the Mortgage Loan Schedule.

 

3)            Mortgage Loan Schedule.  The information pertaining to each Mortgage Loan set forth on the Mortgage Loan Schedule is true and correct in all material respects as of the Cut-off Date.

 

4)            Ownership of Mortgage Loan.  At the time of the assignment of the Mortgage Loans to the Purchaser, the Seller had good and marketable title to and was the sole owner and holder of, each Mortgage Loan, free and clear of any pledge, lien, encumbrance or security interest (subject to certain agreements regarding servicing as provided in the Pooling and Servicing Agreement, any subservicing agreements permitted thereunder and that certain Servicing Rights Purchase Agreement, dated as of the Closing Date between the Master Servicer and the Seller) and such assignment validly and effectively transfers and conveys all legal and beneficial ownership of the Mortgage Loans to the Purchaser free and clear of any pledge, lien, encumbrance or security interest (subject to certain agreements regarding servicing as provided in the Pooling and Servicing Agreement, any subservicing agreements permitted thereunder and that certain Servicing Rights Purchase Agreement, dated as of the Closing Date between the Master Servicer and the Seller).

 

5)            Borrower; Bankruptcy.  In respect of each Mortgage Loan (or Loan Combination, if applicable), as of the origination date and, to the Seller’s actual knowledge, as of the Closing Date, (A) in reliance on public documents or certified copies of the incorporation or partnership or other entity documents, as applicable, delivered in connection with the origination of such Mortgage Loan (or Loan Combination, if applicable), the related Borrower is an entity organized under the laws of a state of the United States of America, the District of Columbia or the Commonwealth of

 

  

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Puerto Rico and (B) the related Borrower is not a debtor in any bankruptcy, receivership, conservatorship, reorganization, insolvency, moratorium or similar proceeding.

 

6)             Mortgage Lien; Assignment of Leases.  Each Mortgage Loan (or Loan Combination, if applicable) is secured by the related Mortgage which establishes and creates a valid and subsisting first priority lien on the related Mortgaged Property, or leasehold interest therein, comprising real estate, free and clear of any liens, claims, encumbrances, participation interests, pledges, charges or security interests subject only to Permitted Encumbrances.  Such Mortgage, together with any separate security agreement, UCC Financing Statement or similar agreement, if any, establishes and creates a first priority security interest in favor of the Seller in all personal property owned by the Borrower that is used in, and is reasonably necessary to, the operation of the related Mortgaged Property and, to the extent a security interest may be created therein and perfected by the filing of a UCC Financing Statement under the Uniform Commercial Code as in effect in the relevant jurisdiction, the proceeds arising from the Mortgaged Property and other collateral securing such Mortgage Loan (or Loan Combination, if applicable), subject only to Permitted Encumbrances.  There exists with respect to such Mortgaged Property an assignment of leases and rents provision, either as part of the related Mortgage or as a separate document or instrument, which establishes and creates a first priority security interest in and to leases and rents arising in respect of the related Mortgaged Property, subject only to Permitted Encumbrances.  Except for the holder of the Companion Loan with respect to the Loan Combinations, to the Seller’s knowledge, no Person other than the related Borrower and the mortgagee own any interest in any payments due under the related leases.  The related Mortgage or such assignment of leases and rents provision provides for the appointment of a receiver for rents or allows the holder of the related Mortgage to enter into possession of the related Mortgaged Property to collect rent or provides for rents to be paid directly to the holder of the related Mortgage in the event of a default beyond applicable notice and grace periods, if any, under the related Loan Documents.  As of the origination date, there were, and, to the Seller’s knowledge as of the Closing Date, there are, no mechanics’ or other similar liens or claims which have been filed for work, labor or materials affecting the related Mortgaged Property which are or may be prior or equal to the lien of the Mortgage, except those that are bonded or escrowed for or which are insured against pursuant to the applicable Title Insurance Policy (as defined below) and except for Permitted Encumbrances.  No Mortgaged Property secures any mortgage loan not represented on the Mortgage Loan Schedule other than a Companion Loan.  No Mortgage Loan is cross-collateralized or cross-defaulted with any other mortgage loan, other than a Mortgage Loan listed on the Mortgage Loan Schedule or a Companion Loan.  No Mortgage Loan is secured by property that is not a Mortgaged Property.  Notwithstanding the foregoing, no representation is made as to the perfection of any security interest in rent, operating revenues or other personal property to the extent that possession or control of such items or actions other than the recordation of the Mortgage or the Assignment of Leases, Rents and Profits or the filing of UCC Financing Statements are required in order to effect such perfection.

 

7)             Title.  The related Borrower under each Mortgage Loan has good and indefeasible fee simple or, if representation (25) hereof is applicable to such Mortgage

 

  

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Loan, leasehold title to the related Mortgaged Property comprising real estate, subject to Permitted Encumbrances, if any.

 

8)            Title Insurance.  The Seller has received an American Land Title Association (ALTA) lender’s title insurance policy or a comparable form of lender’s title insurance policy (or escrow instructions binding on the Title Insurer (as defined below) and irrevocably obligating the Title Insurer to issue such title insurance policy or a title policy commitment or pro-forma “marked up” at the closing of the related Mortgage Loan (or Loan Combination, if applicable) and countersigned or otherwise approved by the Title Insurer or its authorized agent) as adopted in the applicable jurisdiction (the “Title Insurance Policy”), which was issued by a nationally recognized title insurance company (the “Title Insurer”) qualified to do business in the jurisdiction where the applicable Mortgaged Property is located (unless such jurisdiction is the State of Iowa), covering the portion of each Mortgaged Property comprised of real estate and insuring that the related Mortgage is a valid first lien in the original principal amount of the related Mortgage Loan (or Loan Combination, if applicable) on the Borrower’s fee simple interest (or, if applicable, leasehold interest) in such Mortgaged Property comprised of real estate, subject only to Permitted Encumbrances.  Such Title Insurance Policy was issued in connection with the origination of the related Mortgage Loan (or Loan Combination, if applicable). No claims have been made under such Title Insurance Policy.  Such Title Insurance Policy is in full force and effect and all premiums thereon have been paid and will provide that the insured includes the owner of the Mortgage Loan and its successors and/or assigns. No holder of the related Mortgage has done, by act or omission, anything that would, and the Seller has no actual knowledge of any other circumstance that would, impair the coverage under such Title Insurance Policy.  Such Title Insurance Policy contains no exception regarding the encroachment upon any material easements of any material permanent improvements located at the Mortgaged Property for which the grantee of such easement has the ability to force removal of such improvement, or such Title Insurance Policy affirmatively insures (unless the related Mortgaged Property is located in a jurisdiction where such affirmative insurance is not available) against losses caused by forced removal of any material permanent improvements on the related Mortgaged Property that encroach upon any material easements.

 

9)            Valid Assignment.  The related Assignment of Mortgage and the related assignment of the Assignment of Leases, Rents and Profits executed in connection with each Mortgage, if any, have been recorded in the applicable jurisdiction (or, if not recorded, have been submitted for recording or are in recordable form (but for the insertion of the name and address of the assignee and any related recording information which is not yet available to the Seller)) and constitute the legal, valid and binding assignment of such Mortgage and the related Assignment of Leases, Rents and Profits from the Seller to the Purchaser.  The endorsement of the related Note by the Seller constitutes the legal, valid, binding and enforceable (except as such enforcement may be limited by anti-deficiency laws or bankruptcy, receivership, conservatorship, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law)) assignment of such

 

  

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Note, and together with such Assignment of Mortgage and the related assignment of Assignment of Leases, Rents and Profits, legally and validly conveys all right, title and interest in such Mortgage Loan and Loan Documents to the Purchaser.

 

10)           Nonrecourse.  The Loan Documents for each Mortgage Loan (or Loan Combination, if applicable) provide that such Mortgage Loan (or Loan Combination, if applicable) is non-recourse to the related parties thereto except that the related Borrower and at least one individual or entity shall be fully liable for actual losses, liabilities, costs and damages arising from certain acts of the related Borrower and/or its principals specified in the related Loan Documents, which acts generally include the following: (i) acts of fraud or intentional material misrepresentation, (ii) misapplication or misappropriation of rents, insurance proceeds or condemnation awards, (iii)  material physical waste of the Mortgaged Property, and (iv) any breach of the environmental covenants contained in the related Loan Documents.

 

11)           Mortgage Provisions.  The Loan Documents for each Mortgage Loan (or Loan Combination, if applicable) contain enforceable provisions such as to render the rights and remedies of the holder thereof adequate for the practical realization against the Mortgaged Property of the principal benefits of the security intended to be provided thereby, including realization by judicial or, if applicable, non-judicial foreclosure, and there is no exemption available to the related Borrower which would interfere with such right of foreclosure except any statutory right of redemption or as may be limited by anti-deficiency or one form of action laws or by bankruptcy, receivership, conservatorship, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).

 

12)           Enforceability.  Each of the related Notes and Mortgages are the legal, valid and binding obligations of the related Borrower named on the Mortgage Loan Schedule and each of the other related Loan Documents is the legal, valid and binding obligation of the parties thereto (subject to any non-recourse provisions therein), enforceable in accordance with its terms, except as such enforcement may be limited by anti-deficiency or one form of action laws or bankruptcy, receivership, conservatorship, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law), and except that certain provisions of such Loan Documents are or may be unenforceable in whole or in part under applicable state or federal laws, but the inclusion of such provisions does not render any of the Loan Documents invalid as a whole, and such Loan Documents taken as a whole are enforceable to the extent necessary and customary for the practical realization of the principal rights and benefits afforded thereby.

 

13)           Modifications.  Neither the terms of the Mortgage Loans nor the related Loan Documents have been altered, impaired, modified or waived in any material respect, except prior to the Cut-off Date by written instrument duly submitted for recordation, to the extent required, and as specifically set forth in the related Mortgage File and posted on the website or otherwise made available to the Controlling Class

 

  

D-4

  

 

Representative, and no such alterations, impairments, modifications, or waivers have been completed or consented to after the Cut-off Date.

 

14)           Deed of Trust.  With respect to each Mortgage which is a deed of trust, a trustee, duly qualified under applicable law to serve as such, currently so serves and is named in the deed of trust or may be substituted in accordance with applicable law, and no fees or expenses are or will become payable to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the Borrower and fees paid in connection with the release of the related Mortgaged Property or related security for such Mortgage Loan (or Loan Combination, if applicable) following payment of such Mortgage Loan (or Loan Combination, if applicable) in full.

 

15)           Releases. Except by a written instrument that has been delivered to the Purchaser as a part of the related Mortgage File with respect to any immaterial releases of the Mortgaged Property, no Mortgage Loan (or Loan Combination, if applicable) has been satisfied, canceled, subordinated, released or rescinded, in whole or in part, and the related Borrower has not been released, in whole or in part, from its obligations under any related Loan Document.

 

16)           No Offset.  Except with respect to the enforceability of any provisions requiring the payment of default interest, late fees, additional interest, prepayment premiums or yield maintenance charges, neither the Mortgage Loan nor any of the related Loan Documents is subject to any right of rescission, set-off, abatement, diminution, valid counterclaim or defense, including the defense of usury, nor will the operation of any of the terms of any such Loan Documents, or the exercise (in compliance with procedures permitted under applicable law) of any right thereunder, render any Loan Documents subject to any right of rescission, set-off, abatement, diminution, valid counterclaim or defense, including the defense of usury (subject to anti-deficiency or one form of action laws and to bankruptcy, receivership, conservatorship, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditor’s rights generally and to general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law)), and no such right of rescission, set-off, abatement, diminution, valid counterclaim or defense has been asserted with respect thereto.

 

17)           No Material Default.  As of the Closing Date, there is no payment default, after giving effect to any applicable notice and/or grace period, and, to the Seller’s knowledge, as of the Closing Date, there is no other material default under any of the related Loan Documents, after giving effect to any applicable notice and/or grace period; no such material default or breach has been waived by the Seller or on its behalf or, to the Seller’s knowledge, by the Seller’s predecessors in interest with respect to the Mortgage Loans; and, to the Seller’s actual knowledge, no event has occurred which, with the passing of time or giving of notice would constitute a material default or breach; provided, however, that the representations and warranties set forth in this sentence do not cover any default, breach, violation or event of acceleration that specifically pertains to or arises out of any subject matter otherwise covered by any other representation or warranty made hereunder by the Seller.  No Mortgage Loan (or Loan Combination, if

 

  

D-5

  

 

applicable) has been accelerated and no foreclosure proceeding or power of sale proceeding has been initiated under the terms of the related Loan Documents.  The Seller has not waived any material claims against the related Borrower under any non-recourse exceptions contained in the Note.

 

18)           No Future Advances.  The principal amount of the Mortgage Loan stated on the Mortgage Loan Schedule has been fully disbursed as of the Closing Date (except for certain amounts that were fully disbursed by the mortgagee, but were escrowed pursuant to the terms of the related Loan Documents) and there are no future advances required to be made by the mortgagee under any of the related Loan Documents.  Any requirements under the related Loan Documents regarding the completion of any on-site or off-site improvements and to disbursements of any escrow funds therefor have been or are being complied with or such escrow funds are still being held.  The Seller has not, nor, to the Seller’s knowledge, have any of its agents or predecessors in interest with respect to the Mortgage Loan, in respect of payments due on the related Note or Mortgage, directly or indirectly, advanced funds or induced, solicited or knowingly received any advance of funds by a party other than the Borrower other than (a) interest accruing on such Mortgage Loan from the date of such disbursement of such Mortgage Loan to the date which preceded by thirty (30) days the first payment date under the related Note and (b) application and commitment fees, escrow funds, points and reimbursements for fees and expenses, incurred in connection with the origination and funding of the Mortgage Loan.

 

19)           No Equity Interest.  No Mortgage Loan has capitalized interest included in its principal balance, and no Mortgage Loan provides for any shared appreciation rights or other equity participation therein and no contingent or additional interest contingent on cash flow or negative amortization is due thereon.

 

20)           Compliance.  The terms of the Loan Documents evidencing such Mortgage Loan comply in all material respects with all applicable local, state and federal laws and regulations, and the Seller has complied with all material requirements pertaining to the origination of the Mortgage Loans (or Loan Combinations, if applicable), including but not limited to, usury and any and all other material requirements of any federal, state or local law to the extent non-compliance would have a material adverse effect on the Mortgage Loan.

 

21)           Licenses and Permits.  To the Seller’s knowledge and except for any legal nonconformity contemplated by representation (41) hereof, as of the date of origination of the Mortgage Loan (or Loan Combination, if applicable), the related Mortgaged Property was, and to the Seller’s actual knowledge and except for any legal nonconformity contemplated by representation (41) hereof, as of the Closing Date, the related Mortgaged Property is, in all material respects, in compliance with, and is used and occupied in accordance with, all restrictive covenants of record applicable to such Mortgaged Property and applicable zoning laws and all inspections, licenses, permits and certificates of occupancy required by law, ordinance or regulation to be made or issued with regard to the Mortgaged Property have been obtained and are in full force and effect, except to the extent (a) any material non-compliance with all restrictive covenants of

 

  

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record applicable to such Mortgaged Property or applicable zoning laws is insured by the Title Insurance Policy, or a law and ordinance insurance policy, or (b) the failure to obtain or maintain such inspections, licenses, permits or certificates of occupancy does not materially impair or materially and adversely affect the use and/or operation of the Mortgaged Property as it was used and operated as of the date of origination of the Mortgage Loan (or Loan Combination, if applicable) or the rights of a holder of the related Mortgage Loan.

 

22)           Taxes and Assessments.  All (a) taxes, water charges, sewer charges, or other similar outstanding governmental charges and assessments which became due and owing prior to the Closing Date in respect of the related Mortgaged Property (excluding any related personal property) and, if left unpaid, would be, or might become, a lien on such Mortgaged Property having priority over the related Mortgage and (b) insurance premiums or ground rents which became due and owing prior to the Closing Date in respect of the related Mortgaged Property (excluding any related personal property), have, in each case, been paid, or if disputed, or if such amounts are not delinquent prior to the Closing Date, an escrow of funds in an amount sufficient (together with escrow payments required to be made prior to delinquency) to cover such taxes, charges, and assessments and any late charges due in connection therewith has been established.  As of the date of origination, the related Mortgaged Property consisted of one or more separate and complete tax parcels.  For purposes of this representation and warranty, the items identified herein shall not be considered due and owing until the date on which interest or penalties would be first payable thereon.

 

23)           Encroachments.  To the Seller’s knowledge based on surveys or the Title Insurance Policy, (i) none of the material improvements that were included for the purpose of determining the appraised value of the related Mortgaged Property at the time of the origination of such Mortgage Loan (or Loan Combination, if applicable) lies outside the boundaries and building restriction lines of such Mortgaged Property, except to the extent they are legally nonconforming as contemplated by representation (41) below, and (ii) no improvements on adjoining properties encroach upon such Mortgaged Property, except in the case of either (i) or (ii) for (a) immaterial encroachments which do not materially adversely affect the security intended to be provided by the related Mortgage or the use, enjoyment, value or marketability of such Mortgaged Property or (b) encroachments affirmatively covered by the related Title Insurance Policy.  With respect to each Mortgage Loan, the property legally described in the survey, if any, obtained for the related Mortgaged Property for purposes of the origination thereof is the same as the property legally described in the Mortgage.

 

24)           Property Condition.

 

i)             Except with respect to repairs estimated to cost less than $10,000 in the aggregate, as of the date of the applicable engineering report (which was performed within 12 months prior to the Cut-off Date) related to the Mortgaged Property and, to Seller’s knowledge as of the Closing Date, (i) the related Mortgaged Property is in good repair, free and clear of any damage that would materially adversely affect the value of such Mortgaged Property as security for

 

  

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such Mortgage Loan or the use and operation of the Mortgaged Property as it was being used or operated as of the origination date, or (ii) an escrow (or escrows) in an amount consistent with the standard utilized by the Seller with respect to similar loans it holds for its own account have been established, which escrows will in any and all events be not less than 100% of the estimated cost of the required repairs. Since the origination date, to the Seller’s knowledge, such Mortgaged Property has not been damaged by fire, wind or other casualty or physical condition that would materially and adversely affect its value as security for the related Mortgage Loan (including, without limitation, any soil erosion or subsidence or geological condition), which damage has not been fully repaired or fully insured, or for which escrows in an amount consistent with the standard utilized by the Seller with respect to loans it holds for its own account have not been established.

 

ii)            As of the origination date of such Mortgage Loan (or Loan Combination, if applicable) and, to the Seller’s actual knowledge, as of the Closing Date, there are no proceedings pending or, to the Seller’s actual knowledge, threatened, for the partial or total condemnation of the relevant Mortgaged Property; provided, that solely for purposes of this representation (24(ii)), the Seller’s actual knowledge shall include the actual knowledge of any servicer that has serviced the Mortgage Loan (or Loan Combination, if applicable) on behalf of the Seller as derived from the servicer by the Seller based on a level of inquiry that is customary for sellers of conduit loans in the commercial real estate industry.

 

25)           Ground Leases.  For each Mortgage Loan identified on the Mortgage Loan Schedule as being secured in whole or in part by a leasehold estate (a “Ground Lease”) (except with respect to any Mortgage Loan also secured by the related fee interest in the Mortgaged Property), the related Ground Lease satisfies the following conditions:

 

i)             such Ground Lease or a memorandum thereof has been or will be duly recorded; such Ground Lease or other agreement received by the originator of the Mortgage Loan (or Loan Combination, if applicable) from the ground lessor, provides that the interest of the lessee thereunder may be encumbered by the related Mortgage and does not restrict the use of the related Mortgaged Property by such lessee, its successors or assigns, in a manner that would materially and adversely affect the security provided by the Mortgage; as of the date of origination of the Mortgage Loan (or Loan Combination, if applicable), there was no material change of record in the terms of such Ground Lease with the exception of written instruments which are part of the related Mortgage File and Seller has no knowledge of any material change in the terms of such Ground Lease since the recordation of the related Mortgage, with the exception of written instruments which are part of the related Mortgage File;

 

ii)            such Ground Lease or such other agreement received by the originator of the Mortgage Loan (or Loan Combination, if applicable) from the ground lessor is not subject to any liens or encumbrances superior to, or of equal

 

  

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priority with, the related Mortgage, other than the related fee interest and Permitted Encumbrances, and such Ground Lease or such other agreement received by the originator of the Mortgage Loan (or Loan Combination, if applicable) from the ground lessor is, and shall remain, prior to any mortgage or other lien upon the related fee interest (other than the Permitted Encumbrances) unless a nondisturbance agreement is obtained from the holder of any mortgage on the fee interest which is assignable to or for the benefit of the related lessee and the mortgagee under the Mortgage Loan (or Loan Combination, if applicable);

 

iii)           such Ground Lease or other agreement provides that upon foreclosure of the related Mortgage or assignment of the Borrower’s interest in such Ground Lease in lieu thereof, the mortgagee under such Mortgage is entitled to become the owner of such interest upon notice to, but without the consent of, the lessor thereunder and, in the event that such mortgagee (or any of its successors and assigns under the Mortgage) becomes the owner of such interest, such interest is further assignable by such mortgagee (or any of its successors and assigns under the Mortgage) upon notice to such lessor, but without a need to obtain the consent of such lessor;

 

iv)           such Ground Lease is in full force and effect and no default of tenant or ground lessor was in existence at origination, or to the Seller’s knowledge, is in existence as of the Closing Date, under such Ground Lease, nor at origination was, or to the Seller’s knowledge, is there any condition which, but for the passage of time or the giving of notice, would result in a default under the terms of such Ground Lease; either such Ground Lease or a separate agreement contains the ground lessor’s covenant that it shall not amend, modify, cancel or terminate such Ground Lease without the prior written consent of the mortgagee under such Mortgage and any amendment, modification, cancellation or termination of the Ground Lease without the prior written consent of the related mortgagee, or its successors or assigns is not binding on such mortgagee, or its successor or assigns;

 

v)           such Ground Lease or other agreement requires the lessor thereunder to give written notice of any material default by the lessee to the mortgagee under the related Mortgage, provided that such mortgagee has provided the lessor with notice of its lien in accordance with the provisions of such Ground Lease; and such Ground Lease or other agreement provides that no such notice of default and no termination of the Ground Lease in connection with such notice of default shall be effective against such mortgagee unless such notice of default has been given to such mortgagee and any related Ground Lease or other agreement contains the ground lessor’s covenant that it will give to the related mortgagee, or its successors or assigns, any notices it sends to the Borrower;

 

vi)           either (i) the related ground lessor has subordinated its interest in the related Mortgaged Property to the interest of the holder of the Mortgage Loan

 

  

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(or Loan Combination, if applicable) or (ii) such Ground Lease or other agreement provides that (A) the mortgagee under the related Mortgage is permitted a reasonable opportunity to cure any default under such Ground Lease which is curable, including reasonable time to gain possession of the interest of the lessee under the Ground Lease, after the receipt of notice of any such default before the lessor thereunder may terminate such Ground Lease; (B) in the case of any such default which is not curable by such mortgagee, or in the event of the bankruptcy or insolvency of the lessee under such Ground Lease, such mortgagee has the right, following termination of the existing Ground Lease or rejection thereof by a bankruptcy trustee or similar party, to enter into a new ground lease with the lessor on substantially the same terms as the existing Ground Lease; and (C) all rights of the Borrower under such Ground Lease (insofar as it relates to the Ground Lease) may be exercised by or on behalf of such mortgagee under the related Mortgage upon foreclosure or assignment in lieu of foreclosure;

 

vii)           such Ground Lease has an original term (or an original term plus one or more optional renewal terms that under all circumstances may be exercised, and will be enforceable, by the mortgagee or its assignee) which extends not less than 20 years beyond the stated maturity date of the related Mortgage Loan;

 

viii)           under the terms of such Ground Lease and the related Mortgage, taken together, any related insurance proceeds will be applied either to the repair or restoration of all or part of the related Mortgaged Property, with the mortgagee under such Mortgage or a financially responsible institution acting as trustee appointed by it, or consented to by it, or by the lessor having the right to hold and disburse such proceeds as the repair or restoration progresses (except in such cases where a provision entitling another party to hold and disburse such proceeds would not be viewed as commercially unreasonable by a prudent commercial mortgage lender), or to the payment in whole or in part of the outstanding principal balance of such Mortgage Loan (or Loan Combination, if applicable), together with any accrued and unpaid interest thereon; and

 

ix)           such Ground Lease does not impose any restrictions on subletting which would be viewed as commercially unreasonable by the Seller; such Ground Lease contains a covenant (or applicable laws provide) that the lessor thereunder is not permitted, in the absence of an uncured default, to disturb the possession, interest or quiet enjoyment of any lessee in the relevant portion of such Mortgaged Property subject to such Ground Lease for any reason, or in any manner, which would materially adversely affect the security provided by the related Mortgage.

 

26)           Environmental Matters.  Except for those Mortgage Loans set forth on Annex A hereto for which a lender’s environmental insurance policy was obtained in lieu of an Environmental Site Assessment, an Environmental Site Assessment relating to each Mortgaged Property prepared no earlier than 12 months prior to the Closing Date was

 

  

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obtained and reviewed by the Seller in connection with the origination of such Mortgage Loan (or Loan Combination, if applicable), and a copy is included in the Servicing File.

 

i)             Such Environmental Site Assessment does not identify, and the Seller has no actual knowledge of, any adverse circumstances or conditions with respect to or affecting the Mortgaged Property that would constitute or result in a material violation of any Environmental Laws, except for such circumstances or conditions (i) which are covered by environmental insurance policies (as set forth on Annex A hereto) maintained with respect to the Mortgaged Property, or (ii) as to which, if any expenditure greater than 5% of the outstanding principal balance of such Mortgage Loan (or Loan Combination, if applicable) is required in order to achieve or maintain compliance in all material respects with any Environmental Laws, adequate sums, equal to at least 125% of the estimate of the total amount of such expenditures as set forth in the Environmental Site Assessment, were reserved in connection with the origination of the Mortgage Loan (or Loan Combination, if applicable), and as to which the related Borrower has covenanted to perform the actions necessary to achieve or maintain compliance in all material respects with any Environmental Laws, or (iii) as to which the related Borrower or one of its affiliates is currently taking or required to take such actions (which may be the implementation of an operations and maintenance plan), if any, as recommended by the Environmental Site Assessment or required by the applicable governmental authority, or (iv) as to which a responsible party not related to the Borrower with assets reasonably estimated by the Seller at the time of origination to be sufficient to effect all necessary or required remediation identified in a notice or other action from the applicable governmental authority is currently taking or required to take such actions, if any, with respect to such regulatory authority’s order or directive, or (v) which, if recommended in the Environmental Site Assessment, were investigated further and, based upon such additional investigation, as to which an environmental consultant recommended no further investigation or remediation, or (vi) as to which a party with financial resources reasonably estimated to be adequate to cure the condition or circumstance provided a guaranty or an indemnity to the related Borrower or to the mortgagee to cover the costs of any required investigation, testing, monitoring or remediation, or (vii) as to which the related Borrower or other responsible party obtained a “No Further Action” letter or other evidence reasonably acceptable to a prudent commercial mortgage lender that applicable federal, state, or local governmental authorities had no current intention of taking any action, and are not requiring any action, in respect of such condition or circumstance, or (viii) which would not require substantial cleanup, remedial action or other extraordinary response under any Environmental Laws reasonably estimated to cost in excess of 5% of the outstanding principal balance of such Mortgage Loan (or Loan Combination, if applicable).

 

ii)            To the Seller’s actual knowledge and in reliance upon the Environmental Site Assessment, except for any Hazardous Materials being handled in accordance with applicable Environmental Laws and except for any Hazardous Materials present at such Mortgaged Property for which, to the extent

 

  

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that an Environmental Site Assessment recommends remediation or other action, (A) there is either (i) environmental insurance with respect to such Mortgaged Property (as set forth on Annex A hereto) or (ii) an amount in an escrow account pledged as security for such Mortgage Loan (or Loan Combination, if applicable) under the relevant Loan Documents equal to no less than 125% of the amount estimated in such Environmental Site Assessment as sufficient to pay the cost of such remediation or other action in accordance with such Environmental Site Assessment or (B) one of the statements set forth in representation (26)(i) above is true, (1) such Mortgaged Property is not being used for the treatment or disposal of Hazardous Materials; (2) no Hazardous Materials are being used or stored or generated for off-site disposal or otherwise present at such Mortgaged Property other than Hazardous Materials of such types and in such quantities as are customarily used or stored or generated for off-site disposal or otherwise present in or at properties of the relevant property type; and (3) such Mortgaged Property is not subject to any environmental hazard (including, without limitation, any situation involving Hazardous Materials) which under the Environmental Laws would have to be eliminated before the sale of, or which could otherwise reasonably be expected to adversely affect in more than a de minimis manner the value or marketability of, such Mortgaged Property.

 

iii)           The related Mortgage or other Loan Documents contain covenants on the part of the related Borrower requiring its compliance with any present or future federal, state and local Environmental Laws and regulations in connection with the Mortgaged Property.  The related Borrower (or an affiliate thereof) has agreed to indemnify, defend and hold the Seller, and its successors and assigns, harmless from and against any and all losses, liabilities, damages, penalties, fines, expenses and claims of whatever kind or nature (including attorneys’ fees and costs) imposed upon or incurred by or asserted against any such party resulting from a breach of the environmental representations, warranties or covenants given by the related Borrower in connection with such Mortgage Loan.

 

iv)           Each of the Mortgage Loans covered by a lender’s environmental insurance policy obtained in lieu of an Environmental Site Assessment (“In Lieu of Policy”) is identified on Annex A hereto, and each In Lieu of Policy is in an amount equal to 125% of the outstanding principal balance of the related Mortgage Loan (or Loan Combination, if applicable) and has a term ending no sooner than the date which is five years after the maturity date of the related Mortgage Loan (or Loan Combination, if applicable), is non-cancelable by the insurer during such term and the premium for such policy has been paid in full.  All environmental assessments or updates that were in the possession of the Seller and that relate to a Mortgaged Property identified on Annex A hereto as being insured by an In Lieu of Policy have been delivered to or disclosed to the In Lieu of Policy carrier issuing such policy prior to the issuance of such policy.

 

27)           Insurance.  As of the date of origination of the related Mortgage Loan (or Loan Combination, if applicable), and, as of the Closing Date, the Mortgaged Property is covered by insurance policies providing the coverage described below and the Loan

 

  

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Documents permit the mortgagee to require the coverage described below.  All premiums with respect to the insurance policies insuring each Mortgaged Property have been paid in a timely manner or escrowed to the extent required by the Loan Documents, and the Seller has not received (1) any notice of non-payment of premiums that has not been cured in a timely manner by the related Borrower or (2) any notice of cancellation or termination of such insurance policies.  The relevant Servicing File contains the insurance policy required for such Mortgage Loan or a certificate of insurance for such insurance policy.  Each Mortgage or Loan Agreement requires that the related Mortgaged Property and all improvements thereon are covered by insurance policies providing (a) coverage in an amount at least equal to the lesser of full replacement cost of such Mortgaged Property and the outstanding principal balance of the related Mortgage Loan (or Loan Combination, if applicable) (subject to customary deductibles) for losses sustained by fire and for losses or damages from other risks and hazards covered by a standard extended coverage insurance policy providing “special form” coverage in an amount sufficient to prevent the Borrower from being deemed a co-insurer and to provide coverage on a full replacement cost basis of such Mortgaged Property (in some cases, full replacement excludes excavations, underground utilities, foundations and footings) with an agreed amount endorsement to avoid application of any coinsurance provision; such policy contains a standard mortgagee clause naming the mortgagee and its successor in interest as additional insureds or loss payee, as applicable; and such policy contains no provisions for a deduction for depreciation, except that the policy may permit a deduction for depreciation in connection with a cash settlement after a casualty if the insurance proceeds are not being applied to rebuild or repair the damaged improvements; (b) business interruption or rental loss insurance in an amount at least equal to (i) 12 months of operations or (ii) in some cases all rents and other amounts customarily insured under this type of insurance of the Mortgaged Property; (c) flood insurance, if any portion of the improvements, exclusive of a parking lot, on the Mortgaged Property is located in an area identified by the Federal Emergency Management Agency, with respect to certain Mortgage Loans, or the Secretary of Housing and Urban Development, with respect to other Mortgage Loans, as having special flood hazards, to the extent flood insurance is available; (d) workers’ compensation, if required by law; and (e) comprehensive general liability insurance in an amount not less than $1 million.  All such insurance policies referred to in the prior sentence that are currently in place contain clauses providing they are not terminable and may not be terminated without thirty (30) days prior written notice to the mortgagee (except where applicable law requires a shorter period or except for nonpayment of premiums, in which case not less than ten (10) days prior written notice to the mortgagee is required).  In addition, each Mortgage and/or Loan Agreement permits the related mortgagee to make premium payments to prevent the cancellation of such insurance policies with respect to the Mortgaged Property and shall entitle such mortgagee to reimbursement therefor.  Any insurance proceeds in respect of a casualty loss or taking will be applied either to the repair or restoration of all or part of the related Mortgaged Property or the payment of the outstanding principal balance of the related Mortgage Loan (or Loan Combination, if applicable) together with any accrued interest thereon.  If the Mortgaged Property is located within 25 miles of the coast of the Gulf of Mexico or the Atlantic coast of Florida, Georgia, South Carolina or North Carolina, such Mortgaged Property is insured by windstorm insurance in an amount at least equal to the

 

  

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lesser of (i) the outstanding principal balance of such Mortgage Loan (or Loan Combination, if applicable), and (ii) 100% of the full insurable value, or 100% of the replacement cost, of the improvements located on the related Mortgaged Property.  The related Mortgaged Property is insured by an insurance policy, issued by an insurer meeting the requirements of such Mortgage Loan (or Loan Combination, if applicable) and having a claims-paying or financial strength rating of at least “A-:V” from A.M. Best Company or “A-” (or the equivalent) from Standard & Poor’s Ratings Services, Fitch, Inc. or Moody’s Investors Service, Inc.  An architectural or engineering consultant has performed an analysis of each of the Mortgaged Properties located in seismic zones 3 or 4 in order to evaluate the structural and seismic condition of such property, for the sole purpose of assessing the probable maximum loss (“PML”) for the Mortgaged Property in the event of an earthquake.  In such instance, the PML was based on a 450 or 475 year return period, an exposure period of 50 years and a 10% probability of exceedance.  If the resulting report concluded that the PML would exceed 20% of the amount of the replacement costs of the improvements, earthquake insurance for such Mortgaged Property was obtained from an insurer rated at least “A-:V” by A.M. Best Company or “A-” (or the equivalent) from Standard & Poor’s Ratings Services, Fitch, Inc. or Moody’s Investors Service, Inc.  To the Seller’s actual knowledge, the insurer issuing each of the foregoing insurance policies is qualified to write insurance in the jurisdiction where the related Mortgaged Property is located.

 

28)           Escrows.  All amounts required to be deposited by each Borrower at origination under the related Loan Documents have been deposited or have been withheld from the related Mortgage Loan proceeds at origination and there are no deficiencies with regard thereto.  All escrow deposits and payments required by the terms of each Mortgage Loan are in the possession, or under the control of the Seller (except to the extent they have been disbursed for their intended purposes), and all amounts required to be deposited by the applicable Borrower under the related Loan Documents have been deposited, and there are no deficiencies with regard thereto (subject to any applicable notice and cure period).  All of the Seller’s interest in such escrows and deposits will be conveyed by the Seller to the Purchaser hereunder.

 

29)           Litigation.  To the Seller’s knowledge, with respect to each Mortgage Loan, as of the date of origination of such Mortgage Loan (or Loan Combination, if applicable), and, to the Seller’s actual knowledge, with respect to each Mortgage Loan, as of the Closing Date, there are no actions, suits, arbitrations or governmental investigations or proceedings by or before any court or other governmental authority or agency now pending against or affecting the Borrower under any Mortgage Loan or any of the Mortgaged Properties which, if determined against such Borrower or such Mortgaged Property, would materially and adversely affect the value of such Mortgaged Property, the security intended to be provided with respect to the related Mortgage Loan, or the ability of such Borrower and/or the current use of such Mortgaged Property to generate net cash flow to pay principal, interest and other amounts due under the related Mortgage Loan; and to the Seller’s actual knowledge there are no such actions, suits or proceedings threatened against such Borrower.

 

  

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30)           Servicing.  The servicing and collection practices used by Seller in respect of each Mortgage Loan (or Loan Combination, if applicable) have been in all material respect legal, proper and prudent, in accordance with customary commercial mortgage servicing practices.

 

31)           Inspection.  The originator of the Mortgage Loan (or Loan Combination, if applicable) or the Seller has inspected or caused to be inspected each related Mortgaged Property within the 12 months prior to the Closing Date.

 

32)           Financial Reporting.  The Loan Documents require the Borrower to provide the holder of the Mortgage Loan with at least the following: annual operating statements, financial statements and, except for Mortgage Loans for which the related Mortgaged Property is leased to a single tenant or is a multifamily or similar property, rent rolls.

 

33)           Related Borrowers.  No two or more Mortgage Loans representing, in the aggregate, more than 5% of the aggregate outstanding principal amount of all the Mortgage Loans included in the Trust Fund have the same Borrower or, to the Seller’s knowledge, are to Borrowers which are entities controlled by one another or under common control.

 

34)           Single Purpose Entity.  Each Borrower with respect to a Mortgage Loan with a principal balance as of the Cut-off Date in excess of $15,000,000 included in the Trust Fund is an entity whose organizational documents or related Loan Documents provide that it is, and at least so long as the Mortgage Loan is outstanding will continue to be, a Single Purpose Entity.  For this purpose, “Single Purpose Entity” shall mean a Person, other than an individual, whose organizational documents or related Loan Documents provide that it shall engage solely in the business of owning and operating the Mortgaged Property and which does not engage in any business unrelated to such property and the financing thereof, does not have any assets other than those related to its interest in the Mortgaged Property or the financing thereof or any indebtedness other than as permitted by the related Mortgage or the other Loan Documents, and the organizational documents of which require that it have its own separate books and records and its own accounts, in each case which are separate and apart from the books and records and accounts of any other Person.

 

35)           REMIC.  The Mortgage Loan is a “qualified mortgage” within the meaning of Section 860G(a)(3) of the Code (but determined without regard to the rule in Treasury Regulations Section 1.860G-2(f)(2) that treats certain defective mortgage loans as qualified mortgages) and, accordingly, (A) the gross proceeds of the Mortgage Loan to the related Borrower at origination did not exceed the non-contingent principal amount of the Mortgage Loan and (B) either:  (a) such Mortgage Loan is secured by an interest in real property (including land, buildings and structural components thereof, but excluding personal property) having a fair market value (i) at the date the Mortgage Loan was originated at least equal to 80% of the principal balance of the Mortgage Loan on such date or (ii) at the Closing Date at least equal to 80% of the unpaid principal balance of the Mortgage Loan on such date; provided that for purposes hereof, the fair market value of

 

  

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the real property interest must first be reduced by (A) the amount of any lien on the real property interest that is senior to the Mortgage Loan and (B) a proportionate amount of any lien that is in parity with the Mortgage Loan; or (b) substantially all the proceeds of such Mortgage Loan were used to acquire, improve or protect the real property which served as the only security for such Mortgage Loan (other than a recourse feature or other third party credit enhancement within the meaning of Treasury Regulations Section 1.860G-2(a)(1)(ii)).  If the Mortgage Loan was “significantly modified” prior to the Closing Date so as to result in a taxable exchange under Section 1001 of the Code, it either (x) was modified as a result of the default or reasonably foreseeable default of such Mortgage Loan or (y) satisfies the provisions of either sub-clause (a)(i) above (substituting the date of the last such modification for the date the Mortgage Loan was originated) or sub-clause (B)(a)(ii), including the proviso thereto.  Any prepayment premium and yield maintenance charges applicable to the Mortgage Loan constitute “customary prepayment penalties” within the meaning of Treasury Regulations Section 1.860G-1(b)(2).

 

36)           Due-on-Sale or Encumbrance.  Each of the Mortgage Loans contains a “due-on-sale” clause, which provides for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan if, without the prior written consent of the holder of the Mortgage Loan, the property subject to the Mortgage, or any controlling interest therein, is directly or indirectly transferred or sold (except that it may provide for transfers by devise, descent or operation of law upon the death of a member, manager, general partner or shareholder of a Borrower and that it may provide for transfers subject to the Mortgage Loan holder’s approval of transferee, transfers of worn out or obsolete furnishings, fixtures, or equipment promptly replaced with property of equivalent value and functionality, transfers of leases entered into in accordance with the Loan Documents, transfers to affiliates, transfers to family members for estate planning purposes, transfers among existing members, partners or shareholders in Borrowers or transfers of passive interests so long as the key principals or general partner retains control).  The Loan Documents contain a “due-on-encumbrance” clause, which provides for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan if the property subject to the Mortgage or any controlling interest in the Borrower is further pledged or encumbered, unless the prior written consent of the holder of the Mortgage Loan is obtained (except that it may provide for assignments subject to the Mortgage Loan holder’s approval of transferee, transfers to affiliates or transfers of passive interests so long as the key principals or general partner retains control).  The Mortgage or Note requires the Borrower to pay all reasonable out-of-pocket fees and expenses associated with securing the consent or approval of the holder of the Mortgage for a waiver of a “due-on-sale” or “due-on-encumbrance” clause or a defeasance provision.

 

37)           Loan Combination.  Except with respect to the Mortgage Loans related to Loan Combinations, each Mortgage Loan is a whole loan and not a participation interest in a mortgage loan.

 

38)           Defeasance.  Each Mortgage Loan containing provisions for defeasance of mortgage collateral provides that defeasance may not occur any earlier than two years

 

  

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after the Closing Date, and further requires or provides that: (i) the replacement collateral consist of U.S. “government securities,” within the meaning of Treasury Regulations Section 1.860G-2(a)(8)(ii), in an amount sufficient to make all scheduled payments under the Note when due (up to the maturity date for the related Mortgage Loan or the date on which the Borrower may prepay the related Mortgage Loan without payment of any prepayment penalty); (ii) the Mortgage Loan may be assumed by a Single Purpose Entity approved by the holder of the Mortgage Loan; (iii) counsel provide an opinion that the trustee has a perfected security interest in the collateral prior to any other claim or interest; and (iv) the related Borrower must deliver, or cause delivery of, such other documents and certifications as the mortgagee may reasonably require which may include, without limitation, (A) a certification that the purpose of the defeasance is to facilitate the disposition of the mortgaged real property or any other customary commercial transaction and not to be part of an arrangement to collateralize a REMIC offering with obligations that are not real estate mortgages and (B) a certification from an independent certified public accountant that the collateral is sufficient to make all scheduled payments under the Note when due.  Each Mortgage Loan containing provisions for defeasance provides that, in addition to any cost associated with defeasance, the related Borrower shall pay, as of the date the mortgage collateral is defeased, all scheduled and accrued interest and principal due as well as an amount sufficient to defease in full the Mortgage Loan (except as contemplated in representation (39) hereof). In addition, if the related Mortgage Loan permits defeasance, then the Loan Documents provide that the related Borrower shall (x) pay all reasonable fees associated with the defeasance of the Mortgage Loan and all other reasonable expenses associated with the defeasance, or (y) provide all opinions required under the related Loan Documents, and in the case of any Mortgage Loan with an outstanding principal balance as of the Cut-off Date of $40,000,000 or greater, (a) a REMIC opinion and (b) a No Downgrade Confirmation.

 

39)           Release of Property.  The terms of the related Loan Documents do not permit the release of any portion of the Mortgaged Property from the lien of the Mortgage except in compliance with REMIC Provisions and only (i) in consideration of payment in full (or in certain cases in which partial prepayment is permitted, in an amount equal to no less than 125% of the Allocated Loan Amount) therefor, (ii) in connection with the substitution of all or a portion of the Mortgaged Property in exchange for delivery of U.S. “government securities” within the meaning of Treasury Regulations Section 1.860G-2(a)(8)(ii), in a defeasance meeting the requirements of representation (38) hereof, provided that in the case of a partial defeasance, the portion of the principal balance of the Mortgage Loan (or Loan Combination, if applicable) secured by the defeasance collateral is not less than 125% of the Allocated Loan Amount, (iii) where such portion to be released was not considered material for purposes of underwriting the Mortgage Loan (or Loan Combination, if applicable) or the appraisal obtained at origination of the Mortgage Loan (or Loan Combination, if applicable) and such release was contemplated at origination, (iv) conditioned on the satisfaction of certain underwriting and other requirements, including payment of a release price in an amount equal to not less than 125% of the Allocated Loan Amount for such Mortgaged Property or the portion thereof to be released or (v) as set forth on Schedule D-2 to this Exhibit D, in connection with the substitution of a replacement property in compliance with REMIC

 

  

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Provisions; provided that, in the case of clauses (i), (iii) and (iv), for any Mortgage Loan (or Loan Combination, if applicable) originated after December 6, 2010, if the fair market value of the real property constituting such Mortgaged Property after the release is not equal to at least 80% of the principal amount of the Mortgage Loan (or Loan Combination, if applicable) outstanding after the release, the Borrower is required to make a payment of principal in an amount not less than the amount required by the REMIC Provisions.

 

40)           Commercial Property.  Each Mortgaged Property is owned by the related Borrower, except for Mortgaged Properties which are secured in whole or in a part by a Ground Lease and for out-parcels, and is used and occupied for commercial or multifamily residential purposes in accordance with applicable law.

 

41)           Casualty.  In the event of casualty or destruction of the Mortgaged Property, any non-conformity with applicable zoning laws as of the origination date will not prohibit the Mortgaged Property from being restored or repaired in all material respects, to the use or structure at the time of such casualty, except for restrictions on its use or rebuildability for which (i) law and ordinance insurance coverage has been obtained in amounts consistent with the standards utilized by the Seller or (ii) the Title Insurance Policy insures against such non-conformity.  For purposes of the foregoing sentence, it is understood that any change to the use or structure of the Mortgaged Property which materially and adversely affects the related Borrower’s ability to timely make payments on the related Mortgage Loan shall be deemed to be a material change to such use or structure.

 

42)           Capital Contribution; Construction.  Neither the Seller nor any affiliate thereof has any obligation to make any capital contributions to the related Borrower under the Mortgage Loan (or Loan Combination, if applicable).  The Mortgage Loan (or Loan Combination, if applicable) was not originated for the sole purpose of financing the construction of incomplete improvements on the related Mortgaged Property.

 

43)           No Fraud.  No court of competent jurisdiction will determine in a final decree that fraud with respect to the Mortgage Loans (or Loan Combinations, if applicable) has taken place on the part of the Seller or, to the Seller’s actual knowledge, on the part of any originator, in connection with the origination of such Mortgage Loan (or Loan Combination, if applicable).

 

44)           Grace Periods.  If the related Mortgage or other Loan Documents provide for a grace period for delinquent Monthly Payments, such grace period is no longer than ten (10) days from the applicable payment date.

 

45)           Access.  The following statements are true with respect to the related Mortgaged Property:  (a) the Mortgaged Property is located on or adjacent to a dedicated road or has access to an irrevocable easement permitting ingress and egress and (b) the Mortgaged Property is served by public or private utilities, water and sewer (or septic facilities)  appropriate for the current use of the Mortgaged Property.

 

  

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46)           Terrorism Insurance.  None of the Loan Documents contain any provision that expressly excuses the related borrower from obtaining and maintaining insurance coverage for acts of terrorism or, in circumstances where terrorism insurance is not expressly required, the mortgagee is not prohibited from requesting that the related borrower maintain such insurance, in each case, to the extent such insurance coverage is generally available for like properties in such jurisdictions at commercially reasonable rates.  Each Mortgaged Property is insured by a “standard extended coverage” casualty insurance policy that does not contain an express exclusion for (or, alternatively, is covered by a separate policy that insures against property damage resulting from) acts of terrorism.

 

47)           Appraisal.  An appraisal of the related Mortgaged Property was conducted in connection with the origination of such Mortgage Loan (or Loan Combination, if applicable), and such appraisal contained a statement, or was accompanied by a letter from the appraiser, to the effect that the appraisal was performed in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as in effect on the date such Mortgage Loan (or Loan Combination, if applicable) was originated.

 

48)           Condemnation.  In the case of any Mortgage Loan (or Loan Combination, if applicable) originated after December 6, 2010, in the event of a taking of any portion of a Mortgaged Property by the United States, a State or any political subdivision or authority thereof, whether by legal proceeding or by agreement, the Borrower is required to pay down the principal balance of the Mortgage Loan (or Loan Combination, if applicable) in an amount required by the REMIC Provisions, and such amount may not be required to be applied to the restoration of the Mortgaged Property or released to the Borrower, if, immediately after the release of such portion of the Mortgaged Property from the lien of the Mortgage (but taking into account the planned restoration), the fair market value of the real property constituting the remaining Mortgaged Property is not equal to at least 80% of the remaining principal balance of the Mortgage Loan (or Loan Combination, if applicable).

 

49)           Release of Cross-Collateralization.  In the case of any Mortgage Loan (or Loan Combination, if applicable) originated after December 6, 2010, no such Mortgage Loan (or Loan Combination, if applicable) that is secured by more than one Mortgaged Property or that is cross-collateralized with another Mortgage Loan (or Loan Combination, if applicable) permits the release of cross-collateralization of the related Mortgaged Properties, other than in compliance with the REMIC Provisions.

 

Defined Terms:

 

The term “Allocated Loan Amount” shall mean, for each Mortgaged Property, the portion of principal of the related Mortgage Loan (or Loan Combination, if applicable) allocated to such Mortgaged Property for certain purposes (including determining the release prices of properties, if permitted) under such Mortgage Loan (or Loan Combination, if applicable) as set forth in the related Loan Documents.  There can be no assurance, and it is unlikely, that the Allocated Loan Amounts represent the current values of individual Mortgaged Properties, the

 

  

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price at which an individual Mortgaged Property could be sold in the future to a willing buyer or the replacement cost of the Mortgaged Properties.

 

The term “Environmental Site Assessment” shall mean a Phase I environmental report meeting the requirements of the American Society for Testing and Materials, and, if in accordance with customary industry standards a reasonable lender would require it, a Phase II environmental report, each prepared by a licensed third party professional experienced in environmental matters.

 

The term “in reliance on” shall mean that:

 

(i)            the Seller has examined and relied in whole or in part upon one or more of the specified documents or other information in connection with a given representation or warranty;

 

(ii)           that the information contained in such document or otherwise obtained by the Seller appears on its face to be consistent in all material respects with the substance of such representation or warranty;

 

(iii)           the Seller’s reliance on such document or other information is consistent with the standard of care exercised by prudent lending institutions originating commercial mortgage loans; and

 

(iv)           although the Seller is under no obligation to verify independently the information contained in any document specified as being relied upon by it, the Seller believes the information contained therein to be true, accurate and complete in all material respects and has no actual knowledge of any facts or circumstances which would render reliance thereon unjustified without further inquiry.

 

The term “Mortgage Interest Rate” shall mean the fixed rate of interest per annum that each Mortgage Loan bears as of the Cut-off Date.

 

The term “Permitted Encumbrances” shall mean:

 

(i)            the lien of current real property taxes, ground rents, water charges, sewer rents and assessments not yet delinquent or accruing interest or penalties;

 

(ii)           covenants, conditions and restrictions, rights of way, easements and other matters of public record acceptable to mortgage lending institutions generally and exceptions and exclusions referred to in the related mortgagee’s title insurance policy;

 

(iii)           other matters to which like properties are commonly subject;

 

(iv)           the rights of tenants, as tenants only, whether under ground leases or space leases at the Mortgaged Property; and

 

  

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(v)           with respect to any Mortgage Loan that is part of a Loan Combination, the related Companion Loan;

 

which together do not materially and adversely affect the related Borrower’s ability to timely make payments on the related Mortgage Loan, which do not materially interfere with the benefits of the security intended to be provided by the related Mortgage or the use, for the use currently being made, the operation as currently being operated, enjoyment, value or marketability of such Mortgaged Property, provided, however, that, for the avoidance of doubt, Permitted Encumbrances shall exclude all pari passu, second, junior and subordinated mortgages.

 

The term “UCC Financing Statement” shall mean a financing statement prepared and filed pursuant to the Uniform Commercial Code, as in effect in the relevant jurisdiction.

 

Other.  For purposes of these representations and warranties, the term “to the Seller’s knowledge” shall mean that no officer, employee or agent of the Seller responsible for the underwriting, origination or sale of the Mortgage Loans (or Loan Combinations, if applicable) or of any servicer responsible for servicing the Mortgage Loan (or Loan Combination, if applicable) on behalf of the Seller, believes that a given representation or warranty is not true or is inaccurate based upon the Seller’s reasonable inquiry, and that during the course of such inquiry, no such officer, employee or agent of the Seller has obtained any actual knowledge of any facts or circumstances that would cause such Person to believe that such representation or warranty was inaccurate.  Furthermore, all information contained in documents which are part of or required to be part of a Mortgage File shall be deemed to be within the Seller’s knowledge.  For purposes of these representations and warranties, the term “to the Seller’s actual knowledge” shall mean that an officer, employee or agent of the Seller responsible for the underwriting, origination and sale of the Mortgage Loans (or Loan Combinations, if applicable) does not actually know of any facts or circumstances that would cause such Person to believe that such representation or warranty was inaccurate.

 

It is understood and agreed that the representations and warranties set forth in this Exhibit D shall survive delivery of the respective Mortgage Files to the Purchaser and/or the Trustee and shall inure to the benefit of the Purchaser and its successors and assigns (including without limitation the Trustee and the holders of the Certificates), notwithstanding any restrictive or qualified endorsement or assignment.

  

D-21

  

 

SCHEDULE D-1 TO EXHIBIT D

 

EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES

 

Representation numbers referred to below relate to the corresponding Mortgage Loan representations and warranties set forth in Exhibit D to the Mortgage Loan Purchase Agreement for UBS Real Estate Securities Inc.

 

	
Representation

	  	
Annex

A-1 Loan

Number

	  	
Loan/Property

	  	
Exception

	 	 	 	 	 	 	 
	
6. Mortgage Lien;

Assignment of Leases

	  	
8

	  	
Bethesda Health

Medical Office

	  	
The Mortgage Loan is structured with a master lease to accommodate Shari’ah laws.  The assignment of leases and rents creates a first priority security interest in and to the rents due under the master lease only and not to the rents from the underlying space leases.  However, the master lease is subordinate to the Mortgaged Property and will terminate upon foreclosure at which time all space leases will become direct leases with the Borrower.

	  	  	  	  	  	  	  
	
8.  Title Insurance

	  	
6

	  	
One Montgomery

Street

	  	
A part of the basement space (4,643 sf) encroaches on city owned property and a license has been granted to the property via a Minor Sidewalk Encroachment Permit (#11MSE-0033) that is revocable by the city at any time.  The Title Policy does not cover this encroachment.

 

The Mortgage Loan is recourse to the Guarantors for any losses occurring as a result of the loss of this encroachment space.

	  	  	  	  	  	  	  
	
10.  Nonrecourse

	  	
1

	  	
Trinity Centre

	  	
Recourse regarding rents is limited to misappropriation or conversion by the borrower of any rents collected more than 1 month in advance, to the extent not applied to the payment of taxes, insurance premiums, debt service and other amounts due under the Loan Documents.  Recourse regarding material physical waste is limited to the  extent caused by gross negligence or willful acts of the borrower, any guarantor or any of their principals, officers, agents or employees.

 

Following a foreclosure of the mortgage securing the Mortgaged Property or acceptance of a deed-in-lieu of foreclosure, the obligations the borrower and the guarantor under the related environmental indemnity expire two

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
years after the satisfaction of certain conditions, including the delivery to the Lender of a Phase I environmental report disclosing no environmental issues at the Mortgaged Property. 

	  	  	  	  	  	  	  
	
10. Nonrecourse

	  	
2

	  	
Poughkeepsie

Galleria

	  	
Recourse for material physical waste is limited to the extent actually caused by acts or omissions of Borrower or any Affiliate of Borrower or any of their respective agents or representatives.

 

Following repayment in full of the Mortgage Loan, the obligations the borrower and the guarantor under the related environmental indemnity expire two years after the satisfaction of certain conditions, including the delivery to the Lender of a Phase I environmental report disclosing no environmental issues at the Mortgaged Property.

	  	  	  	  	  	  	  
	
10. Nonrecourse

	  	
4

	  	
1700 Market Street

	  	
Recourse for misapplication or misappropriation of rents is limited to the misapplication or conversion of rents during the continuation of an Event of Default (as such term is defined in the related Mortgage Loan Agreement) and rents collected more than one (1) month in advance. Recourse for material physical waste of the Mortgaged Property is limited to “intentional physical waste” caused by the “willful acts of Borrower, Guarantor, or any of their principals, officers, agents or employees.”

 

The indemnification obligations under the related Environmental Indemnity Agreement may terminate two years after the delivery by Indemnitor of a Clean Phase I (as such term is defined in the Environmental Indemnity Agreement), which Phase I may be delivered at any time on or after any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument.

 

The Indemnitor’s obligations under the Environmental Indemnity do not apply to the extent that Indemnitor can prove that such liabilities and obligations arose solely from Hazardous Substances that: (a) were not

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
present on or a threat to the Mortgaged Property prior to the date that Indemnitee or its nominee acquired title to the Mortgaged Property, whether by foreclosure, exercise of power of sale or otherwise and (b) were not the result of any act or negligence of Indemnitor or any of Indemnitor’s affiliates, agents or contractors.

 

	
10.  Nonrecourse

	  	
6

	  	
One Montgomery

Street

	  	
Recourse for misapplication of rents is limited to misapplication by the Borrower of any rents following an Event of Default (as such term is defined in the related Mortgage Loan Agreement).  Recourse for material physical waste of the Mortgaged Property is limited to any material physical waste at the Property other than caused by a tenant at the Mortgaged Property.

	  	  	  	  	  	  	  
	
10.  Nonrecourse

	  	
8

	  	
Bethesda Health

Medical Office

	  	
Recourse for misapplication of rents is limited to during the continuation of an Event of Default (as such term is defined in the related Mortgage Loan Agreement) and recourse for material physical waste is limited to the extent caused by intentional acts or intentional omissions of or at the direction of Borrower, Affiliated Manager, Guarantor or any of their principals, officers or employees.

 

The environmental indemnity contains a sunset provision whereby the indemnitor and the Borrower may be released from their obligations under the environmental indemnity three years after the full repayment of the Mortgage Loan if the indemnitor delivers, a Phase I environmental assessment with respect to the Mortgaged Property in form and substance, and proposed by an environmental consultant, reasonably acceptable to Lender which does not indicate that the Property contains any environmental conditions relating to Hazardous Substances on the Property which was not previously disclosed in writing to Lender or in any previous Environmental Report obtained by, or delivered to, Lender.

 

In addition, with respect to the Guaranty, in the event, prior to the full repayment of the Mortgage Loan, Lender assumes control and/or

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
management of the Mortgaged Property through foreclosure, deed in lieu of foreclosure, the appointment of a receiver or the exercise of any other remedies available to Lender under the Mortgage after the occurrence of an Event of Default (as such term is defined in the related Mortgage Loan Agreement),  then the Guarantor entity is required to maintain the financial net worth and liquidity covenants contained in the Guaranty for a period of three (3) years after the date on which the Mortgage Loan is paid in full.

 

	
10.  Nonrecourse

	  	
9

	  	
Marriott Buffalo

Niagara

	  	
The Loan Documents provide for recourse liability for material physical waste of the Mortgaged Property but only to the extent Gross Income From Operations (as defined in the Loan Documents) is sufficient to adequately maintain the Mortgaged Property.

	 	 	 	 	 	 	 
	
10. Nonrecourse

	  	
17

	  	
Dawntree

Apartments

	  	
If, following the full repayment of the Mortgage Loan obligations or defeasance of the Mortgage Loan, the obligor delivers a Phase I environmental assessment in form, and from a consultant, reasonably acceptable to Lender and any applicable Ratings Agencies, which does not indicate any environmental conditions relating to Hazardous Substances at the Property in violation of any Environmental Law, then  obligations and liabilities under the related environmental indemnification agreement will terminate two years following the full repayment or defeasance of the Mortgage Loan.

	 	 	 	 	 	 	 
	
10.  Nonrecourse

	  	
20

	  	
Plaza Mall of

Georgia- Phase II

	  	
Only Borrower is liable for loss related to environmental issues.

 

Recourse for a breach of the environmental covenants contained in the Loan Documents will terminate on the fourth anniversary of the date on which items (i)-(v) below are satisfied: (i) the Mortgage Loan is paid in full, (ii) Borrower delivers to the Lender, among other things, a current Phase I environmental site assessment with respect to the Property (and a follow up Phase II environmental assessment report if required by the Phase I) from a consultant acceptable to Lender in its reasonable discretion, which concludes that there is no evidence that the Property contains

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
any Hazardous Substances and the Property is not subject to any significant risk of contamination from any off site Hazardous Substances in violation of the representations, warranties, and covenants set forth in the Loan Documents as determined by Lender in its reasonable discretion,  (iii) no Default exists and is continuing under the Loan Documents, (iv) Lender has not exercised any of its remedies under the Security Deed to obtain an entry of a judgment of foreclosure, exercise any power of sale, or delivery of a deed in lieu of foreclosure of the Security Deed, and (v) as of the date of determination, all of the representations and warranties contained under this Agreement and in any of the other Loan Documents (to the extent related to environmental conditions) are true and correct in all material respects, as reasonably determined by Lender.

 

	
10.  Nonrecourse

	  	
25

	  	
Northview Plaza

	  	
There is a sunset provision in the Environmental Indemnity Agreement that provides that the obligations and liabilities of Indemnitor under the Environmental Indemnity Agreement do not apply to the introduction or initial release of Hazardous Substances on the Property from and after the date that Lender has acquired title and assumed possession and control of the Property through power of sale, foreclosure or deed in lieu of foreclosure (the “Transfer Date”). Indemnitor bears the burden of proof that the introduction and initial release of such Hazardous Substances (i) occurred after the Transfer Date, (ii) did not occur as a result of any action or omission of the Indemnitor, its agents or Affiliates in, on, under or near the Property, and (iii) did not occur as a result of a breach of any Environmental Laws which occurred prior to the Transfer Date.

 

	
10.  Nonrecourse

	  	
26

	  	
Preston Lloyd

Shopping Center

	  	
There is recourse for Borrower’s misapplication or misappropriation of (A) rents received by Borrower after the occurrence of an Event of Default (as such term is defined in the related Loan Documents), (B) tenant security deposits or rents collected more than one (1) month in advance, or (C) insurance proceeds or condemnation awards. There is recourse for any material physical waste of the Mortgaged Property by Borrower or Guarantor or any of

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
their agents, principals or representatives, in each case to the extent that Borrower is in receipt of sufficient gross revenues from the Mortgaged Property to prevent same.

 

	
10.  Nonrecourse

	  	
27

	  	
Holiday Inn

Express Richmond

Airport

	  	
The indemnification obligations under the Environmental Indemnity Agreement terminate five years after the “Trigger Date”, which is (x) the date on which either (A) Mortgage Loan has been paid in full, whether at maturity, as a result of acceleration, in connection with any prepayment or otherwise or (B) the Mortgage Loan has been fully defeased, or (y) the Mortgaged Property has been conveyed pursuant to a foreclosure of the Deed of Trust, exercise of power of sale under the Deed of Trust or deed in lieu thereof; provided (a) there has been no change, between the Mortgage Loan closing date and the Trigger Date in any Environmental Requirements (as defined in the Environmental Indemnity Agreement), the effect of which change may be to make a lender or mortgagee liable in respect to any matter for which Lender entitled to indemnification pursuant to the Environmental Indemnity Agreement, notwithstanding the fact that the Trigger Date has occurred; (b) Lender has received, at Indemnitor’s expense, an environmental report, in form and from a consultant reasonably acceptable to Lender and any applicable Ratings Agencies, dated on or after the Trigger Date showing, to the reasonable satisfaction of Lender, that there exists no matter for which the Lender entitled to indemnification pursuant to the terms of the Environmental Indemnity Agreement.

 

	
10.  Nonrecourse

	  	
28

	  	
Westpointe

Shopping Center

	  	
Recourse for a breach of the environmental covenants contained in the Loan  Documents will terminate on the third anniversary of the date on which items (i)-(v) below are satisfied: (i) the Mortgage Loan is paid in full, (ii) Borrower delivers to the Lender, among other things, a current Phase I environmental site assessment with respect to the Property (and a follow up Phase II environmental assessment report if required by the Phase I) from a consultant acceptable to Lender in its reasonable discretion, which concludes that there is no evidence that the Property contains any Hazardous Substances and the Property is

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
not subject to any significant risk of contamination from any off site Hazardous Substances in violation of the representations, warranties, and covenants set forth in the Loan Documents as determined by Lender in its reasonable discretion,  (iii) no Default exists and is continuing under the Loan Agreement, (iv) Lender has not exercised any of its remedies under the Security Deed to obtain an entry of a judgment of foreclosure, exercise any power of sale, or delivery of a deed in lieu of foreclosure of the Security Deed, and (v) as of the date of determination, all of the representations and warranties contained under this Agreement and in any of the other Loan Documents (to the extent related to environmental conditions) are true and correct in all material respects, as reasonably determined by Lender.

 

	
10. Nonrecourse

	  	
32

	  	
River View Estates

	  	
Recourse for misapplication or misappropriation of rents is limited to following an Event of Default (as such term is defined in the related Loan Documents).

 

The obligations and liabilities of the Indemnitor under the environmental indemnity do not apply to the introduction and initial release of Hazardous Substances on the Mortgaged Property from and after the date that the Lender acquires title and has assumed possession and control of the Mortgaged Property through power of sale, foreclosure or a deed in lieu of foreclosure and Indemnitor bears the burden of proof that the introduction and initial release of such Hazardous Substances (i) occurred subsequent to such transfer date, (ii) did not occur as a result of any action or omission of the Indemnitor, its agents or Affiliates  in, on, under or near the Property, and (iii) did not occur as a result of a breach of any Environmental Laws which occurred prior to such transfer date.

 

	
21. Licenses and Permits

	  	
1

	  	
Trinity Centre

	  	
As of the Mortgage Loan closing date, there were violations noted by the New York Department of Buildings with respect to a restaurant at the Mortgaged Property failing to obtain a Place of Assembly filing and a certificate of occupancy.  Pursuant to the Loan Documents, the borrower is required to use

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
commercially reasonable efforts to promptly cause these violations to be removed of record.

 

	
21. Licenses and

Permits

	  	
13

	  	
Chicago Portfolio-

343 West Erie

Street

	  	
The City of Chicago has sued the Borrower related to certain building code violations. Borrower represented and warranted that all work necessary to remedy such building  code violations has been completed but that the violations have not been removed from the records of the applicable governmental agency.

 

	
23. Encroachment

	  	
6

	  	
One Montgomery

Street

	  	
A part of the basement space (4,643 sf) encroaches on city owned property and a license has been granted to the Mortgaged Property via a Minor Sidewalk Encroachment Permit (#11MSE-0033) that is revocable by the city at any time.  The Title Policy does not cover this encroachment.

 

The Mortgage Loan is recourse to the Guarantors for any losses occurring as a result of the loss of this encroachment space.

 

	
24. Property

Condition

	  	
2

	  	
Poughkeepsie

Galleria

	  	
Lender waived escrows for certain recommended repairs estimated to cost $11,520 in the aggregate.  The Loan Documents require the Borrower to complete these recommended repairs within 90 days of the closing date of the Mortgage Loan.

 

	
24. Property

Condition

	  	
30

	  	
StorQuest Oxnard

	  	
A document entitled “Merged Downtown Renewal (R-108) and Central City Revitalization Project Statement” is recorded on the title to the Mortgaged Property. This document provides that all areas within the defined “Project Area” (which includes the Mortgaged Property) are subject to condemnation by the Community Development Commission of the City of Oxnard for the purposes of redevelopment under the “Redevelopment Plan.” This plan was adopted on July 18, 2000, and the condemnation power expires on August 17, 2012. The Mortgaged Property was developed for its current use in 2003.

	  	  	  	  	  	  	  
	
26. Environmental Matters

	  	
7

	  	
Sun Products

Distribution Center

	  	
With regard to (iii), if the Borrower delivers a clean Phase I environmental report at any time on or after the payment in full of the Mortgage Loan, the obligations and liabilities of the indemnitor under the Environmental Indemnity Agreement may terminate three years following

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
such payment in full of the Mortgage Loan.  The indemnity is required to continue in perpetuity after Lender (or its transferee) acquires title or control of the Mortgaged Property unless a release or introduction of hazardous substances occurs during or after Lender’s (or its transferee’s) period of ownership and provided that the indemnitor is required to bear the burden of proving that such specified event or condition is a result of an indemnified party’s gross negligence or willful misconduct or first occurred during or after Lender’s (or its transferee’s) period of ownership.

 

	
27. Insurance

	  	
23

	  	
Holiday Inn Express Cooperstown

	  	
Vermont Mutual Insurance Co. rated ‘A VIII’ with AM Best and not rated with S&P is accepted as Property and General Liability carrier; provided their rating is not downgraded.

	  	  	  	  	  	  	  
	
33. Related

Borrowers

	  	
11

 

 

 

12

	  	
Hospitality

Specialists

Portfolio Pool 2

 

Hospitality

Specialists

Portfolio Pool 1

	  	
These Mortgage Loans, with an aggregate original principal balance of $43,000,000 have affiliated borrowers and the same sponsor (Hospitality Specialists, Inc.).

	  	  	  	  	  	  	  
	
36. Due-on-Sale or

Encumbrance

	  	
1

	  	
Trinity Centre

	  	
The Loan Documents permit transfers of equity interests that result in a change in control of the borrower as long as “Qualified Transferees” satisfying certain requirements set forth in the Loan Documents control the borrower following such transfer.

 

In addition, the direct or indirect owners of the borrower pledged its interest in the borrower in connection with an $18,000,000 senior mezzanine loan currently held by Crexcus Investment Corp. and a $7,000,000 junior mezzanine loan currently held by a Brickman entity.  In the event of a foreclosure of the mezzanine loan, there will be a transfer of control of the borrower.

	  	  	  	  	  	  	  
	
36. Due-on-Sale or

Encumbrance

	  	
2

	  	
Poughkeepsie

Galleria

	  	
The Loan Documents permit transfers of the Mortgaged Property to “Qualified Real Estate Investors” (or to their controlled affiliates) satisfying certain requirements set forth in the Loan Documents as long as certain conditions

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
set forth in the Loan Documents are satisfied.

 

In addition, the direct or indirect owners of the borrower pledged its interest in the borrower in connection with a $21,000,000 mezzanine loan.  In the event of a foreclosure of the mezzanine loan, there will be a transfer of control of the borrower.

	 	 	 	 	 	 	 
	
36. Due-on-Sale or

Encumbrance

	  	
4

	  	
1700 Market Street

	  	
Lender’s consent to a transfer shall not be unreasonably withheld; provided certain conditions in the Loan Documents are satisfied.  The conditions are deemed to have been satisfied if, with respect to any transfer, one (1) or more “Qualified Transferees” (as such term is defined in the Loan Documents), directly or indirectly, (i) own fifty-one percent (51%) or more of the legal, beneficial and economic interests in the transferee and (ii) are in control of the transferee: (1) transferee and transferee’s sponsors have aggregate net worth reasonably satisfactory to Lender; and (2) transferee and transferee’s sponsors (together with transferee’s proposed property manager) are experienced owners and operators of properties similar in location, size, class, use, operation and value as the Mortgaged Property, as evidenced by financial statements and other information reasonably satisfactory to Lender (it being understood and agreed that Lender reserves the right to approve transferee without approving its proposed property manager).

 

In addition, the direct or indirect owners of the borrower pledged its interest in the borrower in connection with a $12,200,000 mezzanine loan currently held by  Pearlmark Mezzanine Realty Partners III, L.L.C. and TMRP III Co-Investment, L.L.C., jointly and severally.  In the event there is a foreclosure of the mezzanine loan, there will be a transfer of control of the borrower.

	  	  	  	  	  	  	  
	
36. Due-on-Sale or

Encumbrance

	  	
17

	  	
Dawntree

Apartments

	  	
The Loan Documents permit the direct or indirect owners of the Borrower to pledge its ownership interest in the borrower as security for a mezzanine loan, without consent of the lender, subject to the satisfaction of certain conditions, including (i) the lender’s reasonable approval of the terms of the mezzanine loan, (ii) the mezzanine lender being  a “Qualified

 

  

Schedule D-1 to Exhibit D

  

 

	  	  	  	  	  	  	
Lender” (as such term is defined in the Mortgage Loan documents), (iii) the aggregate LTV must be 75% or below and (iv) the DSCR based on the aggregate balance is at least 1.25x.

	  	  	  	  	  	  	  
	
45.  Access

	  	
1

	  	
Trinity Centre

	  	
The Mortgaged Property currently has access to certain utilities through a revocable license with the New York City Department of Transportation that expires on June 30, 2016.  Pursuant to the Loan Documents, the borrower is required to cause this license to be renewed or to provide for alternate means of transmission of the applicable utilities.

 

  

Schedule D-1 to Exhibit D

  

 

ANNEX A TO EXHIBIT D

 

MORTGAGE LOANS WITH ENVIRONMENTAL INSURANCE COVERAGE

 

NONE.

 

  

Annex A to Exhibit D

  

 

EXHIBIT E

 

FORM OF CERTIFICATE OF AN OFFICER OF THE SELLER

 

Certificate of Officer of UBS Real Estate Securities Inc.

 

I, [_____], a [_____] of UBS Real Estate Securities Inc. (the “Seller”), hereby certify as follows:

 

1.            The Seller is a corporation duly organized and validly existing under the laws of the State of Delaware.

 

2.            Attached hereto as Exhibit A are true and correct copies of the Certificate of Incorporation and By-Laws, which Certificate of Incorporation and By-Laws are on the date hereof in full force and effect.

 

3.            Attached hereto as Exhibit B is a certificate of the Secretary of State of the State of Delaware with respect to the good standing of the Seller.

 

4.            Attached hereto as Exhibit C are true and correct copies of resolutions that were adopted by the board of directors of the Seller.

 

5.            To the best of my knowledge, no proceedings looking toward liquidation or dissolution of the Seller are pending or contemplated.

 

6.            Each person listed below is and has been a duly elected and qualified officer or authorized signatory of the Seller and his or her genuine signature is set forth opposite his or her name:

	

 

Name

	 	

 

Office

	 	

 

Signature

	  	 	  	 	  
	  	 	  	 	  

 

7.           Each person listed above who signed, either manually or by facsimile signature, the Mortgage Loan Purchase Agreement, dated December 22, 2011 (the “Purchase Agreement”), between the Seller and Citigroup Commercial Mortgage Securities Inc. (the “Purchaser”) and providing for the purchase of the Mortgage Loans by Citigroup Commercial Mortgage Securities Inc. from the Seller, and/or the Indemnification Agreement, dated December 22, 2011, among the Seller, the Purchaser, the Underwriters and the Initial Purchasers, was, at the respective times of such signing and delivery, duly authorized or appointed to execute such documents in such capacity, and the signatures of such persons or facsimiles thereof appearing on such documents are their genuine signatures.

 

Capitalized terms not otherwise defined herein have the meanings assigned to them in the Purchase Agreement.

 

  

E-1

  

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of [_____], 2011.

 

	 	
By:

	 
	 	 	 Name:
	 	 	 Title:

 

I, [name], [title], hereby certify that [_____] is a duly elected or appointed, as the case may be, qualified and acting [_____] of the Seller and that the signature appearing above is his or her genuine signature.

 

IN WITNESS WHEREOF, the undersigned has executed this certificate as of [_____], 2011.

 

	 	
By:

	 
	 	 	 Name:
	 	 	 Title:

 

  

E-2

  

 

EXHIBIT F

 

FORM OF OFFICER’S CERTIFICATE

 

UBS Real Estate Securities Inc. (“Seller”) hereby certifies as follows:

 

(i)      All of the representations and warranties (except as set forth on Schedule D to Exhibit D-1) of the Seller under the Mortgage Loan Purchase Agreement, dated as of December 22, 2011 (the “Agreement”), between Citigroup Commercial Mortgage Securities Inc. and Seller, are true and correct in all material respects on and as of the date hereof (or as of such other date as of which such representation is made under the terms of Exhibit D to the Agreement) with the same force and effect as if made on and as of the date hereof (or as of such other date as of which such representation is made under the terms of Exhibit D to the Agreement).

 

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

 

(iii)         Neither the Prospectus Supplement, dated December 9, 2011 (the “Prospectus Supplement”), relating to the offering of the Class A-1, Class A-2, Class A-3 and Class A-AB Certificates, nor the Private Placement Memorandum, dated December 9, 2011 (the “Memorandum”), relating to the offering of the Class X-A, Class X-B, Class A-S, Class B, Class C, Class D, Class E, Class F, Class G, Class H, Class R and Class LR Certificates, in the case of the Prospectus Supplement, as of the date of thereof or as of the date hereof, or in the case of the Memorandum, as of the date thereof or as of the date hereof, included or includes any untrue statement of a material fact relating to the Seller, the Mortgage Loans, the Mortgaged Properties, the Borrowers, affiliates of the Seller and the Borrowers, the Pari Passu Companion Loans and/or the Mortgage Loan Seller Sub-Servicers, or omitted or omits to state therein a material fact required to be stated therein or necessary in order to make the statements therein relating to the Seller, the Mortgage Loans, the Mortgaged Properties, the Borrowers, affiliates of the Seller and the Borrowers, the Pari Passu Companion Loans and/or the Mortgage Loan Seller Sub-Servicers, in light of the circumstances under which they were made, not misleading.

 

Capitalized terms used herein without definition have the meanings given them in the Agreement.

 

[SIGNATURE APPEARS ON THE FOLLOWING PAGE]

 

  

F-1

  

 

Certified this 29th day of December, 2011.

 

	 	

UBS REAL ESTATE SECURITIES INC.

	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title:
	 	 	 
	 	
By:

	 
	 	 	 Name:
	 	 	 Title: 

 

 

F-2

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