EXHIBIT 10.10 EXECUTION COPY CASH COLLATERAL AGREEMENT

 

                                                                   EXHIBIT 10.10

 

                                                                  EXECUTION COPY

 

                            CASH COLLATERAL AGREEMENT

 

                            Dated as of June 28, 2005

 

                                      Among

 

                           OCWEN FINANCIAL CORPORATION

 

                                   as Grantor,

 

                    THE BANK OF NEW YORK TRUST COMPANY, N.A.,

 

                             as Collateral Trustee,

 

                                       and

 

                    THE BANK OF NEW YORK TRUST COMPANY, N.A.,

 

                                 as Account Bank

 

<PAGE>

 

                                TABLE OF CONTENTS

 

<TABLE>

<CAPTION>

SECTION                                                                                   PAGE

---------------------------------------------------------------------------------------   ----

<S>                                                                                          <C>

SECTION 1.    Grant of Security........................................................      1

 

SECTION 2.    Security for Obligations.................................................      1

 

SECTION 3.    Delivery of Cash Collateral..............................................      1

 

SECTION 4.    The Cash Collateral Account..............................................      1

 

SECTION 5.    Control by Collateral Trustee............................................      2

 

SECTION 6.    Grantor's Rights in Cash Collateral Account..............................      2

 

SECTION 7.    Priority of Security Interest............................................      2

 

SECTION 8.    Statements, Confirmations, and Notices of Adverse Claims.................      2

 

SECTION 9.    Maintaining the Cash Collateral Account; Minimum Cash Collateral Amount..      3

 

SECTION 10.   Investing of Amounts in the Cash Collateral Account......................      3

 

SECTION 11.   Release of Amounts.......................................................      3

 

SECTION 12.   Representations and Warranties...........................................      3

 

SECTION 13.   Further Assurances.......................................................      3

 

SECTION 14.   Transfers and Other Liens................................................      4

 

SECTION 15.   Collateral Trustee Appointed Attorney-in-Fact............................      4

 

SECTION 16.   Collateral Trustee May Perform...........................................      4

 

SECTION 17.   Account Bank's and Collateral Trustee's Duties...........................      4

 

SECTION 18.   The Account Bank's Responsibility........................................      4

 

SECTION 19.   Remedies upon Event of Default...........................................      4

 

SECTION 20.   Expenses.................................................................      5

 

SECTION 21.   Indemnity................................................................      5

 

SECTION 22.   Continuing Security Interest.............................................      5

 

SECTION 23.   Termination; Survival....................................................      5

 

SECTION 24.   Entire Agreement.........................................................      5

 

SECTION 25.   Amendments...............................................................      6

 

SECTION 26.   Financial Assets.........................................................      6

</TABLE>

 

<PAGE>

 

<TABLE>

<S>                                                                                          <C>

SECTION 27.   Notices..................................................................      6

 

SECTION 28.   Binding Effect...........................................................      6

 

SECTION 29.   Execution in Counterparts................................................      6

 

SECTION 30.   Governing Law; Terms.....................................................      6

 

SECTION 31.   Counterparts.............................................................      6

</TABLE>

 

<PAGE>

 

                            CASH COLLATERAL AGREEMENT

 

        CASH COLLATERAL AGREEMENT, dated as of June 28, 2005, among OCWEN

FINANCIAL CORPORATION (the "Grantor"), THE BANK OF NEW YORK TRUST COMPANY, N.A.

("BONY"), a national banking association (together with any successor trustee

appointed pursuant to Article 6 of the Collateral Trust Agreement, as defined

below, the "Collateral Trustee"), as trustee for the Guaranteed Parties (as

defined below), and BONY, as securities intermediary and depository bank (the

"Account Bank").

 

        PRELIMINARY STATEMENTS:

 

        (1) The Grantor has executed and delivered to the Office of Thrift

Supervision, for the benefit of the Guaranteed Parties, a Guaranty dated as of

the date hereof in respect of the Guaranteed Obligations (as defined therein).

Capitalized terms used but not defined herein are used herein as defined in the

Guaranty.

 

        (2) In order to secure the Guaranteed Obligations, the Grantor has

deposited the Minimum Cash Collateral Amount in a non-interest bearing cash

collateral account (the "Cash Collateral Account") with the Account Bank at its

office at 10161 Centurion Parkway, Jacksonville, FL 32256, Account No. 174351,

in the name of the Grantor but under the sole control and dominion of the

Collateral Trustee and subject to the terms of this Agreement and the Collateral

Trust Agreement dated June 28, 2005 between the Grantor and the Collateral

Trustee (the "Collateral Trust Agreement").

 

        (3) Terms defined in Article 8 or 9 of the Uniform Commercial Code in

effect in the State of New York (the "Code") are used in this Agreement as such

terms are defined in such Article 8 or 9.

 

        NOW THEREFORE, in consideration of the premises, the Grantor, the

Collateral Trustee and the Account Bank hereby agree as follows:

 

        SECTION 1.  Grant of Security. The Grantor hereby pledges, assigns

and grants to the Collateral Trustee, for the benefit of the Guaranteed Parties,

a security interest (collectively, the "Security Interest") in the Grantor's

right, title and interest to the following, whether now or hereafter existing or

arising (the "Cash Collateral"):

 

        (a) the Cash Collateral Account and all funds and financial assets from

    time to time credited thereto (including, without limitation, all

    Investments and Cash Equivalents, as defined herein, and all investment

    property), and all certificates and instruments, if any, from time to time

    representing or evidencing the Cash Collateral Account;

 

        (b) all promissory notes, certificates of deposit, deposit accounts,

    checks and other instruments from time to time delivered to or otherwise

    possessed by the Collateral Trustee or the Account Bank for or on behalf of

    the Grantor in substitution for or in addition to any or all of the then

    existing Cash Collateral;

 

        (c) all interest, dividends, distributions, cash, instruments and other

    property from time to time received, receivable or otherwise distributed in

    respect of or in exchange for any or all of the then existing Cash

    Collateral; and

 

        (d) all proceeds of any and all of the foregoing Cash Collateral.

 

        SECTION 2.  Security for Obligations. This Agreement secures the

payment of all amounts, now or hereafter existing, consisting of any of the

following: (i) the Guaranteed Obligations, (ii) all other amounts payable under

or in respect of the Guaranty and (iii) all amounts payable under or in respect

of this Agreement or the Collateral Trust Agreement.

 

        SECTION 3.  Delivery of Cash Collateral. All certificates or

instruments, if any, representing or evidencing the Cash Collateral shall be

delivered to and held by or on behalf of the Collateral Trustee pursuant hereto

and shall be in suitable form for transfer by delivery, or shall be accompanied

by duly executed instruments of transfer or assignment in blank, all in form and

substance satisfactory to the Collateral Trustee. In addition, the Collateral

Trustee shall have the right at any time to exchange certificates or instruments

representing or evidencing Cash Collateral for certificates or instruments of

smaller or larger denominations.

 

        SECTION 4.  The Cash Collateral Account. The Grantor and the Account

Bank represent and warrant to, and agree with, the Collateral Trustee that:

 

                                        1

<PAGE>

 

        (a) The Account Bank maintains the Cash Collateral Account for the

    Grantor, and all property (including, without limitation, all funds and

    financial assets) held by the Account Bank for the account of the Grantor

    are, and will continue to be, credited to the Cash Collateral Account in

    accordance with instructions given by the Grantor (unless otherwise provided

    herein).

 

        (b) To the extent that funds are credited to the Cash Collateral

    Account, the Cash Collateral Account is a deposit account; and to the extent

    that financial assets are credited to the Cash Collateral Account, the Cash

    Collateral Account is a securities account. The Account Bank is (i) the bank

    with which the Cash Collateral Account is maintained and (ii) the securities

    intermediary with respect to financial assets held in the Cash Collateral

    Account. The Grantor is (x) the Account Bank's customer with respect to the

    Cash Collateral Account and (y) the entitlement holder with respect to all

    financial assets credited from time to time to the Cash Collateral Account.

 

        (c) Notwithstanding any other agreement to the contrary, the Account

    Bank's jurisdiction with respect to the Cash Collateral Account for purposes

    of the Code is, and will continue to be for so long as the Security Interest

    shall be in effect, the State of New York.

 

        (d) The Grantor and the Account Bank do not know of any claim to or

    interest in the Cash Collateral Account or any property (including, without

    limitation, funds and financial assets) credited to the Cash Collateral

    Account, except for claims and interests of the parties referred to in this

    Agreement.

 

        SECTION 5.  Control by Collateral Trustee. The Account Bank will

comply with (i) all instructions directing disposition of the funds in the Cash

Collateral Account, (ii) all notifications and entitlement orders that the

Account Bank receives directing it to transfer or redeem any financial asset in

the Cash Collateral Account and (iii) all other directions concerning the Cash

Collateral Account, including, without limitation, directions to distribute to

the Collateral Trustee proceeds of any such transfer or redemption or interest

or dividends on financial assets in the Cash Collateral Account (any such

instruction, notification or direction referred to in clause (i), (ii) or (iii)

above being an "Account Direction"), in each case of clauses (i), (ii) and (iii)

above originated by the Collateral Trustee without further consent by the

Grantor.

 

        SECTION 6.  Grantor's Rights in Cash Collateral Account. (a)

The Account Bank will not comply with instructions or directions from the

Grantor with respect to Account Directions or any other instructions or

directions whatsoever concerning the Cash Collateral Account except as provided

below in Section 6(b).

 

        (b) Until the Account Bank receives a notice from the Collateral Trustee

    that the Collateral Trustee will exercise exclusive control over the Cash

    Collateral Account (a "Notice of Exclusive Control"), the Account Bank may

    at the direction of the Grantor distribute to the Grantor all interest and

    regular cash dividends on property (including, without