SURETY BONDBonds Commercial Paper |
|
|
|
You are currently viewing: This Bonds Commercial Paper involves
HOME EQUITY LOAN TRUST 2005-HS1 | Financial Guaranty Insurance Company. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Bonds Commercial Paper by:
Financial Guaranty Insurance Company
125 Park Avenue
New York, New York 10017
(212) 312-3000 (800) 352-0001
SURETY BOND
Issuer: Home Equity Loan Trust 2005-HS1 Policy Number: 05030098
Control Number: 0010001
Insured Obligations:
$303,750,000 in principal amount of Home Equity Loan-Backed Term Notes, Series
2005-HS1, Class A-II and Variable Funding Notes with a Maximum Variable Funding
Balance of $35,441,794 (collectively, the "Class II Notes")
Indenture Trustee: JPMorgan Chase Bank, N.A.
Financial Guaranty Insurance Company ("Financial Guaranty"), a New York stock
insurance company, in consideration of the right of Financial Guaranty to
receive monthly premiums as provided in the Insurance Agreement (as defined
below), and subject to the terms of this Surety Bond, hereby unconditionally and
irrevocably agrees to pay each Group II Credit Enhancement Draw Amount (as
defined below), to the Indenture Trustee, to the extent set forth in the
Indenture (as defined below). Capitalized terms used and not otherwise defined
herein shall have the meanings assigned to such terms in Appendix A to the
Indenture as in effect and executed on the date hereof.
The following terms used herein shall have the meanings assigned to them below:
"Group II Credit Enhancement Draw Amount" shall mean an amount, if any, equal to
on any Payment Date for the Class II Notes, the sum of (a) the amount by which
the Interest Distribution Amount for the Class II Notes on such Payment Date
exceeds the amount on deposit in the Payment Account available for interest
payments on the Class II Notes on such Payment Date, (b) any Liquidation Loss
Amount (other than any Excess Loss Amount) with respect to the Group II Loans
for such Payment Date to the extent not distributed as part of the Liquidation
Loss Distribution Amount for the Class II Notes or covered by a reduction of the
Group II Overcollateralization Amount on such Payment Date, (c) any Excess Loss
Amount with respect to the Group II Loans, (d) the Guaranteed Payment Amount, if
applicable, and (e) any Preference Amount (as defined in this Surety Bond).
"Guaranteed Payment Amount" means with respect to the Class II Notes, the
aggregate outstanding Security Balance on the Class II Notes on the Payment Date
in October 2035, after giving effect to all other distributions of principal on
the Class II Notes on such Payment Date.
<PAGE>
"Deficiency Amount" for any Payment Date means the sum of the amounts set forth
in clauses (a), (b), (c) and (d) of the definition of "Group II Credit
Enhancement Draw Amount."
Financial Guaranty will pay a Group II Credit Enhancement Draw Amount with
respect to the Class II Notes by 12:00 noon (New York City time) in immediately
available funds to the Indenture Trustee on the later of (i) the second Business
Day following the day on which Financial Guaranty shall have received Notice
that a Deficiency Amount is due in respect of the Class II Notes and (ii) the
Payment Date on which the related Deficiency Amount is payable to the Holders of
the Class II Notes pursuant to the Indenture, for disbursement to the Holders of
the Class II Notes in the same manner as other payments with respect to the
Class II Notes are required to be made.
Upon such payment, Financial Guaranty shall be fully subrogated to the rights of
the Holders of the Class II Notes to receive the amount so paid. Financial
Guaranty's obligations with respect to the Class II Notes hereunder with respect
to each Payment Date shall be discharged to the extent funds consisting of the
related Deficiency Amount are received by the Indenture Trustee on behalf of the
Holders of the Class II Notes for payment to such Holders, as provided in the
Indenture and herein, whether or not such funds are properly applied by the
Indenture Trustee.
If any portion or all of any amount that is insured hereunder that was
previously distributed to a Holder of Class II Notes is recoverable and
recovered from such Holder as a voidable preference by a trustee in bankruptcy
pursuant to the U.S. Bankruptcy Code, pursuant to a final non-appealable order
of a court exercising proper jurisdiction (a "Final Order") (such recovered
amount, a "Preference Amount"), Financial Guaranty will pay on the guarantee
described in the first paragraph hereof, an amount equal to each such Preference
Amount by 12:00 noon on the next Payment Date after the second Business Day
following Receipt by Financial Guaranty of (w) a certified copy of the Final
Order, (x) an opinion of counsel satisfactory to Financial Guaranty that such
order is final and not subject to appeal, (y) an assignment, in form reasonably
satisfactory to Financial Guaranty, irrevocably assigning to Financial Guaranty
all rights and claims of the Indenture Trustee and/or such Holder of Class II
Notes relating to or arising under such Preference Amount and appointing
Financial Guaranty as the agent of the Indenture Trustee and/or such Holder in
respect of such Preference Amount, and (z) a Notice appropriately completed and
executed by the Indenture Trustee or such Holder, as the case may be. Such
payment shall be made to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the Final Order and not to the Indenture Trustee
or Holder of Class II Notes directly (unless the Holder has previously paid such
amount to such receiver, conservator, debtor-in-possession or trustee named in
such Final Order in which case payment shall be made to the Indenture Trustee
for distribution to the Holder upon proof of such payment reasonably
satisfactory to Financial Guaranty). Notwithstanding the foregoing, in no event
shall Financial Guaranty be (i) required to make any payment under this Surety
Bond in respect of any Preference Amount to the extent such Preference Amount is
comprised of amounts previously paid by Financial Guaranty hereunder, or (ii)
obligated to make any payment in respect of any Preference Amount, which payment
represents a payment of the principal amount of any Class II Notes, prior to the
time Financial Guaranty otherwise would have been required to make a payment in
respect of such principal, in which case Financial Guaranty shall pay the
balance of the Preference Amount when such amount otherwise would have been
required.
<PAGE>
All payments made by Financial Guaranty hereunder in respect of Preference
Amounts will be made with Financial Guaranty's own funds.
This Surety Bond is non-cancelable for any reason, including nonpayment of any
premium. The premium on this Surety Bond is not refundable






