EDGAR 10-K Filing

Company CIK: 1872347
Filing Year: 2023
Filename: 1872347_10-K_2023_0001888524-23-004054.json

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ITEM 1. BUSINESS
Item 1.
Business.
Omitted.

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ITEM 1A. RISK FACTORS
Item 1A.
Risk Factors.
Omitted.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B.
Unresolved Staff Comments.
None.

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ITEM 2. PROPERTIES
Item 2.
Properties.
Omitted.

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ITEM 3. LEGAL PROCEEDINGS
Item 3.
Legal Proceedings.
Omitted.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4.
Mine Safety Disclosures.
Omitted.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5.
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Omitted.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6.
[Reserved]

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations.
Omitted.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk.
Omitted.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8.
Financial Statements and Supplementary Data.
Omitted.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
Omitted.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A.
Controls and Procedures.
Omitted.

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ITEM 9B. OTHER INFORMATION
Item 9B.
Other Information.
None.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10.
Directors, Executive Officers and Corporate Governance.
Omitted.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11.
Executive Compensation.
Omitted.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Omitted.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13.
Certain Relationships and Related Transactions, and Director Independence.
Omitted.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14.
Principal Accountant Fees and Services.
Omitted.
ADDITIONAL DISCLOSURE ITEMS FOR REGULATION AB
Item 1112(b) of Regulation AB, Significant Obligor Financial Information.
Not applicable.
Item 1114(b)(2) of Regulation AB, Significant Enhancement Provider Financial Information.
No entity or group of affiliated entities provides any enhancement or other support for the certificates as described under Item 1114 (a) of Regulation AB.
Item 1115(b) of Regulation AB, Certain Derivatives Instruments (Financial Information).
No entity or group of affiliated entities provides any derivative instruments for the certificates as described under Item 1115 of Regulation AB.
Item 1117 of Regulation AB, Legal Proceedings.
The registrant knows of no legal proceeding pending against the sponsors, depositor, trustee, issuing entity, servicer contemplated by Item 1108(a)(3) of Regulation AB, originator contemplated by Item 1110(b) of Regulation AB, or other party contemplated by Item 1100(d)(1) of Regulation AB, or of which any property of the foregoing is the subject, that is material to security holders, other than as follows:
In December 2014, Phoenix Light SF Limited (Phoenix Light) and certain related entities filed a complaint in the United States District Court for the Southern District of New York alleging claims against Wells Fargo Bank, N.A., in its capacity as trustee for a number of residential mortgage-backed securities (RMBS) trusts. Complaints raising similar allegations have been filed by Commerzbank AG in the Southern District of New York and by IKB International and IKB Deutsche Industriebank in New York state court. In each case, the plaintiffs allege that Wells Fargo Bank, N.A., as trustee, caused losses to investors, and plaintiffs assert causes of action based upon, among other things, the trustee’s alleged failure to notify and enforce repurchase obligations of mortgage loan sellers for purported breaches of representations and warranties, notify investors of alleged events of default, and abide by appropriate standards of care following alleged events of default. In July 2022, the district court dismissed Phoenix Light’s claims and certain of the claims asserted by Commerzbank AG, and subsequently entered judgment in each case in favor of Wells Fargo Bank, N.A. In August 2022, Phoenix Light and Commerzbank AG appealed the district court’s decision to the United States Court of Appeals for the Second Circuit. Wells Fargo Bank, N.A. previously settled two class actions filed by institutional investors and an action filed by the National Credit Union Administration with similar allegations. In addition, Park Royal I LLC and Park Royal II LLC have filed substantially similar lawsuits in New York state court alleging Wells Fargo Bank, N.A., as trustee, failed to take appropriate actions upon learning of defective mortgage loan documentation.
Item 1119 of Regulation AB, Affiliations and Certain Relationships and Related Transactions.
The information regarding this Item has been provided previously in an annual report on Form 10-K of the issuing entity or in the prospectus of the issuing entity filed in a 424(b)(2) filing dated August 11, 2021.
Item 1122 of Regulation AB, Compliance with Applicable Servicing Criteria.
The reports on assessment of compliance with the servicing criteria for asset-backed securities and the related attestation reports on such assessments of compliance are attached hereto under Item 15.
The report on assessment of compliance with applicable servicing criteria furnished pursuant to Item 1122 of Regulation AB by KeyBank National Association discloses that a material instance of noncompliance occurred, as described below:
KeyBank National Association (KeyBank) has identified the following material instance of noncompliance with servicing criteria 1122(d)(4)(ix) during the calendar year ended December 31, 2022, with respect to the Platform. The material instance of noncompliance does not relate to KeyBank’s performance under any pooling and servicing agreement applicable to the securitization transaction that is the subject of this Form 10-K.
1) Servicing Criteria impacted
1122(d)(4)(ix) -Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.
2) Material Instance of Noncompliance with Servicing Criteria
During compliance testing, it was discovered, that not all FlexARM loan mortgagors were offered loan rates within 45-60 days before the rate change date, as required per the related pool asset documents. Per the Note, if the holder fails to offer a loan rate within 45-60 days of any change date a margin of 2.25% is to be used. Given the notification was not made to the borrowers, a 3% margin was incorrectly applied. The noncompliance in Item 1122 (d)(4)(ix) is related to a servicing portfolio which is wholly owned by the investor and is not held in a publicly traded security.
3) Remediation
The following remediation procedures have been initiated by KeyBank: (i) the impacted mortgage loans are currently in the process of being identified, (ii) investor contact has been initiated, (iii) corrective actions are being considered and will be tracked and monitored by senior management, (iv) procedures will be reviewed and revised, if necessary, to include new tracking and action steps to prevent this situation from recurring in the future, and (v) training will be provided to the relevant staff members to prevent a recurrence.
Item 1123 of Regulation AB, Servicer Compliance Statement.
The servicer compliance statements are attached hereto under Item 15.
Each of the servicer compliance statements furnished pursuant to Item 1123 of Regulation AB by Wells Fargo Bank, National Association and Computershare Trust Company National Association discloses that a material instance of noncompliance occurred, as described below:
Computershare Trust Company, N.A. made the April 18, 2022 distribution (the "April Distribution") due to certificate holders of the BANK 2021-BNK35 Commercial Mortgage Pass Through Certificates, Series 2021-BNK35 transaction one business day late on April 19, 2022. The inadvertent delay in the required distribution, consisting of approximately $4.15 million, was caused by an administrative error relating to the calculation of the payment date in an internal system due to Good Friday. The error resulted in a delay in the release of the payment information to the payment processing system, which in turned caused the late distribution. The impact of this error was limited to the April Distribution. In an effort to prevent similar errors from occurring, Computershare Trust Company, N.A. has updated the payment date calculation process in its systems.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules.
(a) Exhibits.
(4.1) Pooling and Servicing Agreement, dated as of August 1, 2021, between Morgan Stanley Capital I Inc., as depositor, Wells Fargo Bank, National Association, as general master servicer, KeyBank National Association, as general special servicer, National Cooperative Bank, N.A., as NCB master servicer and as NCB special servicer, Wells Fargo Bank, National Association, as certificate administrator, Wilmington Trust, National Association, as trustee, and Park Bridge Lender Services LLC, as operating advisor and as asset representations reviewer (filed as Exhibit 4.1 to the registrant's Current Report on Form 8-K/A filed on February 4, 2022 under SEC File No. 333-227446-16 and incorporated by reference herein).
(4.2) Pooling and Servicing Agreement, dated and effective as of June 1, 2021, between Wells Fargo Commercial Mortgage Securities, Inc., as depositor, Wells Fargo Bank, National Association, as general master servicer, Greystone Servicing Company LLC, as general special servicer, National Cooperative Bank, N.A., as NCB master servicer and as NCB special servicer, Wells Fargo Bank, National Association, as certificate administrator, Wilmington Trust, National Association, as trustee, and Pentalpha Surveillance LLC, as operating advisor and as asset representations reviewer, relating to the BANK 2021-BNK34 securitization transaction, pursuant to which the Four Constitution Square, 375 Pearl Street, Three Constitution Square, U.S. Steel Tower and Fortune 7 Leased Campus Mortgage Loans are serviced (filed as Exhibit 4.2 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(31) Rule 13a-14(d)/15d-14(d) Certification.
(33) Reports on assessment of compliance with servicing criteria for asset-backed securities.
33.1 Wells Fargo Bank, National Association, as Certificate Administrator
33.2 Computershare Trust Company, National Association, as Servicing Function Participant for the Certificate Administrator
33.3 Wells Fargo Bank, National Association, as Custodian
33.4 Computershare Trust Company, National Association, as Servicing Function Participant for the Custodian
33.5 Wells Fargo Bank, National Association, as Master Servicer
33.6 National Cooperative Bank, N.A., as NCB Master Servicer
33.7 KeyBank National Association, as Special Servicer
33.8 National Cooperative Bank, N.A., as NCB Special Servicer (see Exhibit 33.6)
33.9 Park Bridge Lender Services LLC, as Operating Advisor
33.10 CoreLogic Solutions, LLC, as Servicing Function Participant
33.11 Wells Fargo Bank, National Association, as Master Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 33.5)
33.12 CoreLogic Solutions, LLC, as Servicing Function Participant under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 33.10)
33.13 Greystone Servicing Company LLC, as Special Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22)
33.14 Wells Fargo Bank, National Association, as Custodian under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 33.3)
33.15 Computershare Trust Company, National Association, as Servicing Function Participant under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 33.4)
(34). Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.
34.1 Wells Fargo Bank, National Association, as Certificate Administrator
34.2 Computershare Trust Company, National Association, as Servicing Function Participant for the Certificate Administrator
34.3 Wells Fargo Bank, National Association, as Custodian
34.4 Computershare Trust Company, National Association, as Servicing Function Participant for the Custodian
34.5 Wells Fargo Bank, National Association, as Master Servicer
34.6 National Cooperative Bank, N.A., as NCB Master Servicer
34.7 KeyBank National Association, as Special Servicer
34.8 National Cooperative Bank, N.A., as NCB Special Servicer (see Exhibit 34.6)
34.9 Park Bridge Lender Services LLC, as Operating Advisor
34.10 CoreLogic Solutions, LLC, as Servicing Function Participant
34.11 Wells Fargo Bank, National Association, as Master Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 34.5)
34.12 CoreLogic Solutions, LLC, as Servicing Function Participant under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 34.10)
34.13 Greystone Servicing Company LLC, as Special Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22)
34.14 Wells Fargo Bank, National Association, as Custodian under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 34.3)
34.15 Computershare Trust Company, National Association, as Servicing Function Participant under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 34.4)
(35). Servicer compliance statement.
35.1 Wells Fargo Bank, National Association, as Certificate Administrator
35.2 Computershare Trust Company, National Association, as Servicing Function Participant for the Certificate Administrator
35.3 Wells Fargo Bank, National Association, as Custodian
35.4 Computershare Trust Company, National Association, as Servicing Function Participant for the Custodian
35.5 Wells Fargo Bank, National Association, as Master Servicer
35.6 National Cooperative Bank, N.A., as NCB Master Servicer
35.7 KeyBank National Association, as Special Servicer
35.8 National Cooperative Bank, N.A., as NCB Special Servicer (see Exhibit 35.6)
35.9 Wells Fargo Bank, National Association, as Master Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 35.5)
35.10 Greystone Servicing Company LLC, as Special Servicer under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22)
35.11 Wells Fargo Bank, National Association, as Custodian under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 35.3)
35.12 Computershare Trust Company, National Association, as Servicing Function Participant under the BANK 2021-BNK34 securitization, pursuant to which the following mortgage loans were serviced by such party: Four Constitution Square (from 1/1/22 to 12/31/22), 375 Pearl Street (from 1/1/22 to 12/31/22), Three Constitution Square (from 1/1/22 to 12/31/22), U.S. Steel Tower (from 1/1/22 to 12/31/22), Fortune 7 Leased Campus (from 1/1/22 to 12/31/22) (see Exhibit 35.4)
(99.1) Mortgage Loan Purchase Agreement, dated as of July 28, 2021, between Morgan Stanley Capital I Inc. and Morgan Stanley Mortgage Capital Holdings LLC (filed as Exhibit 99.1 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.2) Mortgage Loan Purchase Agreement, dated as of July 28, 2021, Morgan Stanley Capital I Inc. and Bank of America, National Association (filed as Exhibit 99.2 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.3) Mortgage Loan Purchase Agreement, dated as of July 28, 2021, between Morgan Stanley Capital I Inc. and Wells Fargo Bank, National Association (filed as Exhibit 99.3 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.4) Mortgage Loan Purchase Agreement, dated as of July 28, 2021, between Morgan Stanley Capital I Inc. and National Cooperative Bank, N.A. (filed as Exhibit 99.4 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.5) Agreement Between Note Holders, dated as of July 13, 2021, by and between Bank of America, N.A., as initial note A-1 holder, initial note A-2-1 holder and initial note A-2-2 holder, and Goldman Sachs Bank USA, as initial note A-3 holder, relating to The Domain loan combination (filed as Exhibit 99.5 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.6) Agreement Between Note Holders, dated as of May 14, 2021, by and between Bank of America, N.A., as initial note A-1 holder, and Bank of America, N.A., initial note A-2 holder, relating to the Four Constitution Square loan combination (filed as Exhibit 99.6 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.7) Agreement Between Note Holders, dated as of June 24, 2021, by and among Wells Fargo Bank, National Association, as initial note A-1 holder, JPMorgan Chase Bank, National Association, as initial note A-2 holder, Wells Fargo Bank, National Association, as initial note A-3 holder, and Wells Fargo Bank, National Association, as initial note A-4 holder, relating to the 375 Pearl Street loan combination (filed as Exhibit 99.7 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.8) Agreement Between Note Holders, dated as of May 14, 2021, by and between Bank of America, N.A., as initial note A-1 holder, and Bank of America, N.A., initial note A-2 holder, relating to the Three Constitution Square loan combination (filed as Exhibit 99.8 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.9) Amended and Restated Co-Lender Agreement, dated as of June 4, 2021, by and among Morgan Stanley Bank, N.A., as note A-1 holder, note A-2 holder, note A-3-1 holder, note A-3-2 holder and note A-4 holder, Liberty Mutual Insurance Company, as note B-1 holder, Peerless Insurance Company, as note B-2 holder, Employers Insurance Company of Wausau, as note B-3 holder, Liberty Mutual Fire Insurance Company, as note B-4 holder, The Ohio Casualty Insurance Company, as note B-5 holder, and Safeco Insurance Company of America, as note B-6 holder, relating to the U.S. Steel Tower loan combination (filed as Exhibit 99.9 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.10) Agreement Between Noteholders, dated as of August 11, 2021, by and between Morgan Stanley Bank, N.A., as initial note A-1 holder, and Morgan Stanley Bank, N.A., as initial note A-2 holder, relating to the Newport Pavilion loan combination (filed as Exhibit 99.10 to the registrant's Current Report on Form 8-K/A filed on February 4, 2022 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.11) Agreement Between Noteholders, dated as of May 28, 2021, by and between Morgan Stanley Bank, N.A., as initial note A-1 holder, and Morgan Stanley Bank, N.A., as initial note A-2 holder, relating to the Fortune 7 Leased Campus loan combination (filed as Exhibit 99.11 to the registrant's Current Report on Form 8-K filed on August 11, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(99.12) Second Amended and Restated Servicing Agreement, effective as of October 31, 2021, between Wells Fargo Bank, N.A., Wells Fargo Delaware Trust Company, N.A., Computershare Trust Company, N.A., Computershare Delaware Trust Company and Computershare Limited (filed as Exhibit 99.1 to the registrant's Current Report on Form 8-K filed on November 5, 2021 under SEC File No. 333-227446-16 and incorporated by reference herein).
(b) See (a) above.
(c) Not Applicable.