Insurance Agreement

 

Financial Guaranty Insurance Company

125 Park Avenue

New York, New York 10017

(212) 312-3000 (800) 352-0001

 

SURETY BOND

 

Form 9140

Page 1 of 4

 

Financial Guaranty Insurance Company

125 Park Avenue

New York, New York 10017

(212) 312-3000 (800) 352-0001

 

 

SURETY BOND

 

 

 

Issuer: RAMP Series 2004-RZ2                      Policy Number:  04030013

                                                  Control Number:  0010001

 

 

Insured Obligations:

$175,000,000  in  principal   amount  of  Mortgage   Asset-Backed   Pass-Through

Certificates,  Series  2004-RZ2,  Class  A-II  (collectively,  the  "Class  A-II

Certificates")

 

Trustee:  JPMorgan Chase Bank

 

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  Insured  Payment  (as  defined  below),  to the

Trustee named above or its  successor,  as trustee for Holders of the Class A-II

Certificates, to the extent set forth in the Pooling and Servicing Agreement (as

defined below).  Capitalized  terms used and not otherwise  defined herein shall

have the meanings assigned to such terms in the Pooling and Servicing  Agreement

as in effect and executed on the date hereof.

 

The following terms used herein shall have the meanings assigned to them below:

 

"Class A-II Overcollateralization  Deficiency Amount" shall mean with respect to

any  Distribution  Date,  after  giving  effect  to all  distributions  on  that

Distribution Date (without regard to any principal payments to be made under the

Policies),  the aggregate of the Certificate  Principal  Balances of the Class A

Certificates  exceeds the Stated Principal Balance of the Mortgage Loans on that

Distribution  Date,  an  amount  equal  to  the  excess  of  (a)  the  aggregate

Certificate Principal Balance of the Class A-II Certificates after giving effect

to all distributions to be made on that Distribution Date (without regard to any

principal payments to be made under the Group II Policy) over (ii) the aggregate

Stated Principal Balance of the Group II Loans plus the plus the excess, if any,

of (x) the aggregate of the Stated Principal Balances of the Group I Loans as of

that Distribution  Date over (y) the Certificate  Principal Balance of the Class

A-I Certificates, in each case, after giving effect to all distributions on that

Distribution Date.

 

"Deficiency  Amount"  shall mean with respect to any  Distribution  Date and the

Class A-II Certificates,  an amount, if any, equal to the sum of (1) the excess,

if any, of the Accrued  Certificate  Interest on the Class A-II Certificates for

that Distribution Date over the Group II Available  Distribution  Amount on that

Distribution Date, (2) (i) with respect to any Distribution Date that is not the

Distribution Date in July 2034, the Class A-II Overcollateralization  Deficiency

 

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Amount,  if any, for that Distribution Date and (ii) on the Distribution Date in

July  2034,  the  aggregate  Certificate  Principal  Balance  of the Class  A-II

Certificates  (after  giving effect to all  distributions  to be made thereon on

that Distribution  Date other than any portion thereof  consisting of an Insured

Payment payable as principal on the Class A-II Certificates).

 

 "Insured  Payment"  shall mean with respect to any  Distribution  Date, (i) any

Deficiency  Amount and (ii) any  Preference  Amount (as  defined in this  Surety

Bond).

 

Financial  Guaranty will pay a Deficiency  Amount with respect to the Class A-II

Certificates  by 12:00 noon (New York City time) in immediately  available funds

to the 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 A-II  Certificates and (ii) the Distribution Date on

which the related  Deficiency Amount is payable to the Holders of the Class A-II

Certificates  pursuant to the Pooling and Servicing Agreement,  for disbursement

to the  Holders  of the  Class  A-II  Certificates  in the same  manner as other

payments with respect to the Class A-II Certificates are required to be made.

 

Upon such payment, Financial Guaranty shall be fully subrogated to the rights of

the  Holders  of the Class  A-II  Certificates  to  receive  the amount so paid.

Financial  Guaranty's  obligations  with respect to the Class A-II  Certificates

hereunder  with respect to each  Distribution  Date shall be  discharged  to the

extent funds  consisting  of the related  Deficiency  Amount are received by the

Trustee on behalf of the Holders of the Class A-II  Certificates  for payment to

such  Holders,  as provided in the Pooling and  Servicing  Agreement and herein,

whether or not such funds are properly applied by the Trustee.

 

If any  portion  or all of  any  amount  that  is  insured  hereunder  that  was

previously  distributed  to a Holder of A-II  Certificates  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 Distribution 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  Trustee  and/or  such  Holder  of  Class  A-II

Certificates  relating to or arising under such Preference Amount and appointing

Financial  Guaranty as the agent of the Trustee and/or such Holder in respect of

such Preference Amount, and (z) a Notice appropriately completed and executed by

the 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  Trustee or Holder of Class A-II  Certificates

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 Trustee for  distribution  to the Holder upon

proof  of  such  payment   reasonably   satisfactory  to