Exhibit 99.2
PCFII Mortgage Loan Purchase Agreement
<PAGE>
MORTGAGE LOAN PURCHASE AGREEMENT
(PCFII LOANS)
Mortgage Loan Purchase Agreement (this "Agreement"), dated as
of
November 1, 2007, between Principal Commercial Funding II, LLC (the
"Seller"),
and Morgan Stanley Capital I Inc. (the "Purchaser").
The Seller agrees to sell, and the Purchaser agrees to
purchase,
certain mortgage loans listed on Exhibit 1 hereto (the "Mortgage
Loans") as
described herein. The Purchaser will convey the Mortgage Loans to a
trust (the
"Trust") created pursuant to a Pooling and Servicing Agreement (the
"Pooling and
Servicing Agreement"), dated as of November 1, 2007, between the
Purchaser, as
depositor, Capmark Finance Inc., as Capmark Master Servicer, Wells
Fargo Bank,
National Association, as Wells Fargo Master Servicer, NCB, FSB, as
NCB Master
Servicer, Centerline Servicing Inc., as General Special Servicer,
National
Consumer Cooperative Bank, as Co-op Special Servicer, LaSalle Bank
National
Association, as Trustee and Custodian, and Wells Fargo Bank,
National
Association, as Paying Agent, Certificate Registrar and
Authenticating Agent. In
exchange for the Mortgage Loans and certain other mortgage loans
(the "Other
Mortgage Loans") to be purchased by the Purchaser, the Trust will
issue to the
Depositor pass-through certificates to be known as Morgan Stanley
Capital I
Inc., Commercial Mortgage Pass-Through Certificates, Series
2007-IQ16 (the
"Certificates"). The Certificates will be issued pursuant to the
Pooling and
Servicing Agreement.
Capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing
Agreement.
The Class A-1, Class A-1A, Class A-2, Class A-3, Class A-4,
Class
A-M, Class A-MFL, Class A-MA, Class A-J, Class A-JFL and Class A-JA
Certificates
(the "Public Certificates") will be sold by the Purchaser to Morgan
Stanley &
Co. Incorporated, Greenwich Capital Markets, Inc., Merrill Lynch,
Pierce, Fenner
& Smith (except with respect to the Class A-4 Certificates) and
RBC Capital
Markets Corporation (collectively, the "Underwriters"), pursuant to
an
Underwriting Agreement, between the Purchaser and the Underwriters,
dated
November 15, 2007 (the "Underwriting Agreement"), and the Class
X-1, Class X-2,
Class B, Class C, Class D, Class E, Class F, Class G, Class H,
Class J, Class K,
Class L, Class M, Class N, Class O, Class P, Class Q, Class S,
Class EI, Class
R-I, Class R-II and Class R-III Certificates (collectively, the
"Private
Certificates") will be sold by the Purchaser to Morgan Stanley
& Co.
Incorporated (in such capacity, the "Initial Purchaser") pursuant
to a
Certificate Purchase Agreement, between the Purchaser and the
Initial Purchaser,
dated November 15, 2007 (the "Certificate Purchase Agreement"). The
Underwriters
will offer the Public Certificates for sale publicly pursuant to a
Prospectus
dated June 22, 2007, as supplemented by a Prospectus Supplement
dated November
15, 2007 (together, the "Prospectus Supplement"), and the Initial
Purchaser will
offer the Private Certificates (other than the Class EI, Class R-I,
Class R-II
and Class R-III Certificates) for sale in transactions exempt from
the
registration requirements of the Securities Act of 1933 pursuant to
a Private
Placement Memorandum, dated as of November 15, 2007 (the
"Memorandum").
In consideration of the mutual agreements contained herein, the
Seller and the Purchaser hereby agree as follows:
Section 1. Agreement to Purchase. The Seller agrees to sell,
and
the Purchaser agrees to purchase, on a servicing released basis,
the Mortgage
Loans identified on the schedule (the "Mortgage Loan Schedule")
annexed hereto
as Exhibit 1, as such schedule may be amended to reflect the actual
Mortgage
Loans accepted by the Purchaser pursuant to the terms hereof. The
Cut-Off Date
with respect to each Mortgage Loan is such Mortgage Loan's Due Date
in the month
of November 2007. The Mortgage Loans and the Other Mortgage Loans
will have an
aggregate principal balance as of the close of business on the
Cut-Off Date,
after giving effect to any payments due on or before such date,
whether or not
received, of $256,993,544. The sale of the Mortgage Loans shall
take place on
November 29, 2007 or such other date as shall be mutually
acceptable to the
parties hereto (the "Closing Date"). The purchase price to be paid
by the
Purchaser for the Mortgage Loans shall equal the amount set forth
as such
purchase price in the Bill of Sale. The purchase price shall be
paid to the
Seller by wire transfer in immediately available funds on the
Closing Date.
On the Closing Date, the Purchaser will assign to the Trustee
pursuant to the Pooling and Servicing Agreement all of its right,
title and
interest in and to the Mortgage Loans and its rights under this
Agreement (to
the extent set forth in Section 15), and the Trustee shall succeed
to such
right, title and interest in and to the Mortgage Loans and the
Purchaser's
rights under this Agreement (to the extent set forth in Section
15).
Section 2. Conveyance of Mortgage Loans. Effective as of the
Closing Date, subject only to receipt of the consideration referred
to in
Section 1 hereof and the satisfaction of the conditions specified
in Sections 6
and 7 hereof, the Seller does hereby transfer, assign, set over and
otherwise
convey to the Purchaser, without recourse, all the right, title and
interest of
the Seller, with the understanding that a Servicing Rights Purchase
Agreement,
dated November 29, 2007, will be executed by the Seller and the
Capmark Master
Servicer, in and to the Mortgage Loans identified on the Mortgage
Loan Schedule
as of the Closing Date. The Mortgage Loan Schedule, as it may be
amended from
time to time on or prior to the Closing Date, shall conform to the
requirements
of this Agreement and the Pooling and Servicing Agreement. In
connection with
such transfer and assignment, the Seller shall deliver to the
Custodian on
behalf of the Trustee, on behalf of the Purchaser, on or prior to
the Closing
Date, the Mortgage Note (as described in clause (a) below) for each
Mortgage
Loan and on or prior to the fifth Business Day after the Closing
Date, five
limited powers of attorney substantially in the form attached
hereto as Exhibit
4 in favor of the Trustee, the applicable Master Servicer and the
applicable
Special Servicer to empower the Trustee, the applicable Master
Servicer and, in
the event of the failure or incapacity of the Trustee and the
applicable Master
Servicer, the applicable Special Servicer, to submit for recording,
at the
expense of the Seller, any mortgage loan documents required to be
recorded as
described in the Pooling and Servicing Agreement and any
intervening assignments
with evidence of recording thereon that are required to be included
in the
Mortgage Files (so long as original counterparts have previously
been delivered
to the Trustee). The Seller agrees to reasonably cooperate with the
Trustee, the
applicable Master Servicer and the applicable Special Servicer in
connection
with any additional powers of attorney or revisions thereto that
are requested
by such parties for purposes of such recordation. The parties
hereto agree that
no such power of attorney shall be used with respect to any
Mortgage Loan by or
under authorization by any party hereto except to the extent that
the absence of
a document described in the second preceding sentence with respect
to such
Mortgage Loan remains unremedied as of the earlier of (i) the date
that is 180
days following the delivery of notice of such absence to the
Seller, but in no
event earlier than 18 months from the Closing Date, and (ii) the
date (if any)
on which such Mortgage Loan becomes a Specially Serviced Mortgage
Loan. The
Trustee shall submit such documents for recording, at the Seller's
expense,
after the periods set forth above; provided, however, the Trustee
shall not
submit such assignments for recording if the Seller produces
evidence that it
has sent any such assignment for recording and certifies that the
Seller is
awaiting its return from the applicable recording office. In
addition, not later
than the 30th day following the Closing Date, the Seller shall
deliver to the
Custodian on behalf of the Trustee each of the remaining documents
or
instruments specified below (with such exceptions and additional
time periods as
are permitted by this Section) with respect to each Mortgage Loan
(each, a
"Mortgage File"). (The Seller acknowledges that the term "without
recourse" does
not modify the duties of the Seller under Section 5 hereof.)
All Mortgage Files, or portions thereof, delivered prior to the
Closing Date are to be held by the Custodian on behalf of the
Trustee in escrow
on behalf of the Seller at all times prior to the Closing Date. The
Mortgage
Files shall be released from escrow upon closing of the sale of the
Mortgage
Loans and payments of the purchase price therefor as contemplated
hereby. The
Mortgage File for each Mortgage Loan shall contain the following
documents:
(a) The original Mortgage Note bearing all intervening
endorsements, endorsed in blank or endorsed "Pay to the order of
LaSalle Bank
National Association, as Trustee for Morgan Stanley Capital I Inc.,
Commercial
Mortgage Pass-Through Certificates, Series 2007-IQ16, without
recourse,
representation or warranty" or if the original Mortgage Note is not
included
therein, then a lost note affidavit and indemnity, with a copy of
the Mortgage
Note attached thereto;
(b) The original Mortgage, with evidence of recording thereon,
and, if the Mortgage was executed pursuant to a power of attorney,
a certified
true copy of the power of attorney certified by the public
recorder's office,
with evidence of recording thereon (if recording is customary in
the
jurisdiction in which such power of attorney was executed), or
certified by a
title insurance company or escrow company to be a true copy
thereof; provided
that if such original Mortgage cannot be delivered with evidence of
recording
thereon on or prior to the 90th day following the Closing Date
because of a
delay caused by the public recording office where such original
Mortgage has
been delivered for recordation or because such original Mortgage
has been lost,
the Seller shall deliver or cause to be delivered to the Trustee a
true and
correct copy of such Mortgage, together with (i) in the case of a
delay caused
by the public recording office, an Officer's Certificate (as
defined below) of
the Seller stating that such original Mortgage has been sent to the
appropriate
public recording official for recordation or (ii) in the case of an
original
Mortgage that has been lost after recordation, a certification by
the
appropriate county recording office where such Mortgage is recorded
that such
copy is a true and complete copy of the original recorded
Mortgage;
(c) The originals of all agreements modifying a Money Term or
other material modification, consolidation and extension
agreements, if any,
with evidence of recording thereon (if applicable) or if any such
original
modification, consolidation or extension agreement has been
delivered to the
appropriate recording office for recordation and either has not yet
been
returned on or prior to the 90th day following the Closing Date
with evidence of
recordation thereon or has been lost after recordation, a true copy
of such
modification, consolidation or extension certified by the Seller
together with
(i) in the case of a delay caused by the public recording office,
an Officer's
Certificate of the Seller stating that such original modification,
consolidation
or extension agreement has been dispatched or sent to the
appropriate public
recording official for recordation or (ii) in the case of an
original
modification, consolidation or extension agreement that has been
lost after
recordation, a certification by the appropriate county recording
office where
such document is recorded that such copy is a true and complete
copy of the
original recorded modification, consolidation or extension
agreement, and the
originals of all assumption agreements, if any;
(d) An original Assignment of Mortgage for each Mortgage Loan,
in
form and substance acceptable for recording (except for recording
information
not yet available if the instrument being recorded has not been
returned from
the applicable recording office), signed by the holder of record in
blank or in
favor of "LaSalle Bank National Association, as Trustee for Morgan
Stanley
Capital I Inc., Commercial Mortgage Pass-Through Certificates,
Series
2007-IQ16";
(e) Originals of all intervening assignments of Mortgage, if
any,
with evidence of recording thereon or, if such original assignments
of Mortgage
have been delivered to the appropriate recorder's office for
recordation,
certified true copies of such assignments of Mortgage certified by
the Seller,
or in the case of an original blanket intervening assignment of
Mortgage
retained by the Seller, a copy thereof certified by the Seller or,
if any
original intervening assignment of Mortgage has not yet been
returned on or
prior to the 90th day following the Closing Date from the
applicable recording
office or has been lost, a true and correct copy thereof, together
with (i) in
the case of a delay caused by the public recording office, an
Officer's
Certificate of the Seller stating that such original intervening
assignment of
Mortgage has been sent to the appropriate public recording official
for
recordation or (ii) in the case of an original intervening
assignment of
Mortgage that has been lost after recordation, a certification by
the
appropriate county recording office where such assignment is
recorded that such
copy is a true and complete copy of the original recorded
intervening assignment
of Mortgage;
(f) If the related Assignment of Leases is separate from the
Mortgage, the original of such Assignment of Leases with evidence
of recording
thereon or certified by a title insurance company or escrow company
to be a true
copy thereof; provided that if such Assignment of Leases has not
been returned
on or prior to the 90th day following the Closing Date because of a
delay caused
by the applicable public recording office where such Assignment of
Leases has
been delivered for recordation or because such original Assignment
of Leases has
been lost, the Seller shall deliver or cause to be delivered to the
Trustee a
true and correct copy of such Assignment of Leases submitted for
recording,
together with, (i) in the case of a delay caused by the public
recording office,
an Officer's Certificate (as defined below) of the Seller stating
that such
Assignment of Leases has been sent to the appropriate public
recording official
for recordation or (ii) in the case of an original Assignment of
Leases that has
been lost after recordation, a certification by the appropriate
county recording
office where such Assignment of Leases is recorded that such copy
is a true and
complete copy of the original recorded Assignment of Leases, in
each case
together with an original assignment of such Assignment of Leases,
in recordable
form (except for recording information not yet available if the
instrument being
recorded has not been returned from the applicable recording
office), signed by
the holder of record in favor of "LaSalle Bank National
Association, as Trustee
for Morgan Stanley Capital I Inc., Commercial Mortgage
Pass-Through
Certificates, Series 2007-IQ16," which assignment may be effected
in the related
Assignment of Mortgage;
(g) The original or a copy of each guaranty, if any,
constituting
additional security for the repayment of such Mortgage Loan;
(h) The original Title Insurance Policy, or in the event such
original Title Insurance Policy has not been issued, a binder,
actual
"marked-up" title commitment, pro forma policy, or an agreement to
provide any
of the foregoing pursuant to binding escrow instructions executed
by the title
company or its authorized agent with the original Title Insurance
Policy to
follow within 180 days of the Closing Date, or a copy of any of the
foregoing
certified by the title company with the original Title Insurance
Policy to
follow within 180 days of the Closing Date, or a preliminary title
report with
the original Title Insurance Policy to follow within 180 days of
the Closing
Date;
(i) (A) Copies of UCC financing statements (together with all
assignments thereof) filed in connection with a Mortgage Loan and
(B) UCC-2 or
UCC-3 financing statements assigning such UCC financing statements
to the
Trustee delivered in connection with the Mortgage Loan;
(j) Copies of the related ground lease(s), if any, to any
Mortgage Loan where the Mortgagor is the lessee under such ground
lease and
there is a lien in favor of the mortgagee in such lease.
(k) Copies of any loan agreements, lock-box agreements and
intercreditor agreements, if any, related to any Mortgage Loan;
(l) Either (A) the original of each letter of credit, if any,
constituting additional collateral for such Mortgage Loan (other
than letters of
credit representing tenant security deposits which have been
collaterally
assigned to the lender), which shall be assigned and delivered to
the Trustee
(or delivered to the Custodian on the Trustee's behalf) on behalf
of the Trust
with a copy to be held by the applicable Primary Servicer (or
Master Servicer),
and applied, drawn, reduced or released in accordance with
documents evidencing
or securing the applicable Mortgage Loan, the Pooling and Servicing
Agreement
and the Primary Servicing Agreement or (B) the original of each
letter of
credit, if any, constituting additional collateral for such
Mortgage Loan (other
than letters of credit representing tenant security deposits which
have been
collaterally assigned to the lender), which shall be held by the
applicable
Primary Servicer (or Master Servicer) on behalf of the Trustee,
with a copy to
be held by the Custodian on behalf of the Trustee, and applied,
drawn, reduced
or released in accordance with documents evidencing or securing the
applicable
Mortgage Loan, the Pooling and Servicing Agreement and the Primary
Servicing
Agreement (it being understood that the Seller has agreed (a) that
the proceeds
of such letter of credit belong to the Trust, (b) to notify, on or
before the
Closing Date, the bank issuing the letter of credit that the letter
of credit
and the proceeds thereof belong to the Trust, and to use reasonable
efforts to
obtain within 30 days (but in any event to obtain within 90 days)
following the
Closing Date, an acknowledgement thereof by the bank (with a copy
of such
acknowledgement to be sent to the Custodian on behalf of the
Trustee) or a
reissued letter of credit and (c) to indemnify the Trust for any
liabilities,
charges, costs, fees or other expenses accruing from the failure of
the Seller
to assign the letter of credit hereunder). In the case of clause
(B) above, any
letter of credit held by the applicable Primary Servicer (or Master
Servicer)
shall be held in its capacity as agent of the Trust, and if the
applicable
Primary Servicer (or Master Servicer) sells its rights to service
the applicable
Mortgage Loan, the applicable Primary Servicer (or Master Servicer)
has agreed
to assign the applicable letter of credit to the Trust or at the
direction of
the applicable Special Servicer to such party as such Special
Servicer may
instruct, in each case, at the expense of the applicable Primary
Servicer (or
Master Servicer). The applicable Primary Servicer (or Master
Servicer) has
agreed to indemnify the Trust for any loss caused by the
ineffectiveness of such
assignment;
(m) The original or a copy of the environmental indemnity
agreement, if any, related to any Mortgage Loan;
(n) Copies of third-party management agreements, if any, for
all
hotels and for such other Mortgaged Properties securing Mortgage
Loans with a
Cut-Off Date principal balance equal to or greater than
$20,000,000;
(o) The original of any Environmental Insurance Policy or, if
the
original is held by the related Mortgagor, a copy thereof;
(p) A copy of any affidavit and indemnification agreement in
favor of the lender;
(q) With respect to hospitality properties, a copy of any
franchise agreement, franchise comfort letter and applicable
assignment or
transfer documents;
"Officer's Certificate" shall mean a certificate signed by one
or
more of the Chairman of the Board, any Vice Chairman, the
President, any Senior
Vice President, any Vice President, any Assistant Vice President,
any Treasurer
or any Assistant Treasurer.
The Assignment of Mortgage, intervening assignments of Mortgage
and assignment of Assignment of Leases referred to in clauses (d),
(e) and (f)
may be in the form of a single instrument assigning the Mortgage
and the
Assignment of Leases to the extent permitted by applicable law. To
avoid the
unnecessary expense and administrative inconvenience associated
with the
execution and recording or filing of multiple assignments of
mortgages,
assignments of leases (to the extent separate from the mortgages)
and
assignments of UCC financing statements, the Seller shall execute,
in accordance
with the third succeeding paragraph, the assignments of mortgages,
the
assignments of leases (to the extent separate from the mortgages)
and the
assignments of UCC financing statements relating to the Mortgage
Loans naming
the Trustee on behalf of the Certificateholders as assignee.
Notwithstanding the
fact that such assignments of mortgages, assignments of leases (to
the extent
separate from the assignments of mortgages) and assignments of UCC
financing
statements shall name the Trustee on behalf of the
Certificateholders as the
assignee, the parties hereto acknowledge and agree that the
Mortgage Loans shall
for all purposes be deemed to have been transferred from the Seller
to the
Purchaser and from the Purchaser to the Trustee on behalf of
the
Certificateholders.
If the Seller cannot deliver, or cause to be delivered, as to
any
Mortgage Loan, any of the documents and/or instruments referred to
in clauses
(b), (c), (e) or (f), with evidence of recording thereon, because
of a delay
caused by the public recording office where such document or
instrument has been
delivered for recordation within such 90-day period, but the Seller
delivers a
photocopy thereof (to the extent available, certified by the
appropriate county
recorder's office to be a true and complete copy of the original
thereof
submitted for recording or, if such certification is not available,
together
with an Officer's Certificate of the Seller stating that such
document has been
sent to the appropriate public recording official for recordation),
to the
Custodian on behalf of the Trustee within such 90-day period, the
Seller shall
then deliver within 180 days after the Closing Date the recorded
document (or
within such longer period after the Closing Date as the Custodian
on behalf of
the Trustee may consent to, which consent shall not be withheld so
long as the
Seller is, as certified in writing to the Custodian on behalf of
the Trustee no
less often than monthly, in good faith attempting to obtain from
the appropriate
county recorder's office such original or photocopy).
The Trustee, as assignee or transferee of the Purchaser, shall
be
entitled to all scheduled payments of principal due thereon after
the Cut-Off
Date, all other payments of principal collected after the Cut-Off
Date (other
than scheduled payments of principal due on or before the Cut-Off
Date), and all
payments of interest on the Mortgage Loans allocable to the period
commencing on
the Cut-Off Date. 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.
Within 45 days following the Closing Date, the Seller shall
deliver and the Purchaser, the Custodian on behalf of the Trustee
or the agents
of either may submit or cause to be submitted for recordation at
the expense of
the Seller, in the appropriate public office for real property
records, each
assignment referred to in clauses (d) and (f)(ii) above (with
recording
information in blank if such information is not yet available).
Within 15 days
following the Closing Date, the Seller shall deliver and the
Purchaser, the
Custodian on behalf of the Trustee or the agents of either may
submit or cause
to be submitted for filing, at the expense of the Seller, in the
appropriate
public office for Uniform Commercial Code financing statements, the
assignment
referred to in clause (i) above. If 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 prepare a substitute therefor or cure such defect,
and the
Seller shall, at its own expense (except in the case of a document
or instrument
that is lost by the Trustee), record or file, as the case may be,
and deliver
such document or instrument in accordance with this Section 2.
As to each Mortgage Loan secured by a Mortgaged Property with
respect to which the related Mortgagor has entered into a franchise
agreement,
the Seller shall provide a notice on or prior to the date that is
thirty (30)
days after the Closing Date to the franchisor of the transfer of
such Mortgage
Loan to the Trust pursuant to the Pooling and Servicing Agreement,
and inform
the franchisor that any notices to the Mortgagor's lender pursuant
to such
franchise agreement should thereafter be forwarded to the
applicable Master
Servicer and provide a franchise comfort letter from the franchisor
on or prior
to the date that is thirty (30) days after the Closing Date. As to
each Mortgage
Loan secured by a Mortgaged Property with respect to which a letter
of credit is
in place, the Seller shall notify, on or before the Closing Date,
the bank
issuing the letter of credit that such Mortgage Loan will be
transferred to the
Trust pursuant to the Pooling and Servicing Agreement and such
letter of credit
and the proceeds thereof belong to the Trust or the applicable
Primary Servicer
(on behalf of the Trustee), as applicable, after such transfer, and
inform such
issuing bank that any notices to the Mortgagor's lender pursuant to
such letter
of credit should thereafter be forwarded to the Master Servicer or
the
applicable Primary Servicer, as the case may be, and use reasonable
efforts to
obtain within 30 days (but in any event to obtain within 90 days)
following the
Closing Date, an acknowledgement of the above notice by the bank
(with a copy of
such acknowledgement to be sent to the Custodian on behalf of the
Trustee) or a
reissued letter of credit. After the Closing Date, with respect to
any letter of
credit that has not yet been assigned to the Trust (or whose
beneficiary has not
yet been changed to the Trust), upon the written request of the
applicable
Master Servicer or the applicable Primary Servicer, the Seller will
draw on such
letter of credit as directed by such Master Servicer or such
Primary Servicer in
such notice to the extent the Seller has the right to do so.
Documents that are in the possession of the Seller, its agents
or
its subcontractors that relate to the servicing of any Mortgage
Loans and that
are not required to be a part of the Mortgage File and are
reasonably necessary
for the ongoing administration and/or servicing of the applicable
Mortgage Loan
(the "Servicing File") shall be delivered by the Seller to or at
the direction
of the applicable Master Servicer, on behalf of the Purchaser, on
or prior to
the 75th day after the Closing Date, in accordance with the Primary
Servicing
Agreement, if applicable.
The Servicing File shall include, to the extent required to be
(and actually) delivered to the Seller pursuant to the applicable
Mortgage Loan
documents, copies of the following items: the Mortgage Note, any
Mortgage, the
Assignment of Leases and the Assignment of Mortgage, any
guaranty/indemnity
agreement, any loan agreement, the insurance policies or
certificates, as
applicable, the property inspection reports, any financial
statements on the
property, any escrow analysis, the tax bills, the Appraisal, the
environmental
report, the engineering report, the asset summary, financial
information on the
Mortgagor/sponsor and any guarantors, any letters of credit, any
intercreditor
agreements and any Environmental Insurance Policies; provided,
however, the
Seller shall not be required to deliver any draft documents,
attorney-client
privileged communications, internal correspondence or credit
analysis. Delivery
of any of the foregoing documents to the applicable Primary
Servicer shall be
deemed a delivery to the applicable Master Servicer and satisfy
Seller's
obligations under this sub-paragraph. Each of the foregoing items
shall be
delivered by the Seller in electronic form, to the extent such
document is
available in such form and such form is reasonably acceptable to
the applicable
Master Servicer.
Upon the sale of the Mortgage Loans by the Seller to the
Purchaser pursuant to this Agreement, the ownership of each
Mortgage Note,
Mortgage and the other contents of the related Mortgage File shall
be vested in
the Purchaser and its assigns, and the ownership of all records and
documents
with respect to the related Mortgage Loan prepared by or that come
into the
possession of the Seller shall immediately vest in the Purchaser
and its
assigns, and shall be delivered promptly by the Seller to or on
behalf of either
the Custodian (on behalf of the Trustee) or the applicable Master
Servicer as
set forth herein, subject to the requirements of the Primary
Servicing
Agreement. The Seller's and Purchaser's records shall reflect the
transfer of
each Mortgage Loan from the Seller to the Purchaser and its assigns
as a sale.
It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans and related property to the
Purchaser by the
Seller as provided in this Section 2 be, and be construed as, an
absolute sale
of the Mortgage Loans and related property. It is, further, not the
intention of
the parties that such conveyance be deemed a pledge of the Mortgage
Loans and
related property by the Seller to the Purchaser to secure a debt or
other
obligation of the Seller. However, in the event that,
notwithstanding the intent
of the parties, the Mortgage Loans or any related property are held
to be the
property of the Seller, or if for any other reason this Agreement
is held or
deemed to create a security interest in the Mortgage Loans or any
related
property, then:
(i) this Agreement shall be deemed to be a security agreement;
and
(ii) the conveyance provided for in this Section 2 shall be
deemed to be a grant by the Seller to the Purchaser of a
security
interest in all of the Seller's right, title, and interest,
whether
now owned or hereafter acquired, in and to:
(A) All accounts, 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 following property: the Mortgage Loans identified on
the Mortgage Loan Schedule, including the related Mortgage
Notes,
Mortgages, security agreements, and title, hazard and other
insurance policies, all distributions with respect thereto
payable after the Cut-Off Date, all substitute or replacement
Mortgage Loans and all distributions with respect thereto, and
the Mortgage Files;
(B) All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates
of
deposit, goods, letters of credit, advices of credit,
investment
property and other rights 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); and
(C) All cash and non-cash proceeds of the collateral
described in clauses (A) and (B) above.
The possession by the Purchaser or its designee of the Mortgage
Notes, the Mortgages, 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 for purposes of perfecting the security interest pursuant
to the
Uniform Commercial Code (including, without limitation, Sections
9-305 and 9-115
thereof) as in force in the relevant jurisdiction. Notwithstanding
the
foregoing, the Seller makes no representation or warranty as to the
perfection
of any such security interest.
Notifications to Persons holding such property, and
acknowledgments, receipts, or confirmations from persons holding
such property,
shall be deemed to be notifications to, or acknowledgments,
receipts or
confirmations from, securities intermediaries, bailees or agents
of, or Persons
holding for, the Purchaser or its designee, as applicable, for the
purpose of
perfecting such security interest under applicable law.
The Seller shall, to the extent consistent with this Agreement,
take such reasonable actions as may be necessary to ensure that, if
this
Agreement were deemed to create a security interest in the property
described
above, such security interest would be deemed to be a perfected
security
interest of first priority under applicable law and will be
maintained as such
throughout the term of the Agreement. In such case, the Seller
shall file all
filings necessary to maintain the effectiveness of any original
filings
necessary under the Uniform Commercial Code as in effect in any
jurisdiction to
perfect such security interest in such property. In connection
herewith, the
Purchaser 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.
Notwithstanding anything to the contrary contained herein, and
subject to Section 2(a), the Purchaser shall not be required to
purchase any
Mortgage Loan as to which any Mortgage Note (endorsed as described
in clause (a)
above) or lost note affidavit and indemnity required to be
delivered to or on
behalf of the Trustee or the applicable Master Servicer pursuant to
this Section
2 on or before the Closing Date is not so delivered, or is not
properly executed
or is defective on its face, and the Purchaser's acceptance of the
related
Mortgage Loan on the Closing Date shall in no way constitute a
waiver of such
omission or defect or of the Purchaser's or its successors' and
assigns' rights
in respect thereof pursuant to Section 5.
Section 3. Examination of Mortgage Files and Due Diligence
Review. The Seller shall (i) deliver to the Purchaser on or before
the Closing
Date a diskette acceptable to the Purchaser that contains such
information about
the Mortgage Loans as may be reasonably requested by the Purchaser,
(ii) deliver
to the Purchaser investor files (collectively the "Collateral
Information") with
respect to the assets proposed to be included in the Mortgage Pool
and made
available at the Purchaser's headquarters in New York, and (iii)
otherwise
cooperate fully with the Purchaser in its examination of the credit
files,
underwriting documentation and Mortgage Files for the Mortgage
Loans and its due
diligence review of the Mortgage Loans. The fact that the Purchaser
has
conducted or has failed to conduct any partial or complete
examination of the
credit files, underwriting documentation or Mortgage Files for the
Mortgage
Loans shall not affect the right of the Purchaser or the Trustee to
cause the
Seller to cure any Material Document Defect or Material Breach
(each as defined
below), or to repurchase or replace the defective Mortgage Loans
pursuant to
Section 5 of this Agreement.
On or prior to the Closing Date, the Seller shall allow
representatives of any of the Purchaser, each Underwriter, the
Initial
Purchaser, the Trustee, the Custodian, the applicable Special
Servicer and each
Rating Agency to examine and audit all books, records and files
pertaining to
the Mortgage Loans, the Seller's underwriting procedures and the
Seller's
ability to perform or observe all of the terms, covenants and
conditions of this
Agreement. Such examinations and audits shall take place at one or
more offices
of the Seller during normal business hours and shall not be
conducted in a
manner that is disruptive to the Seller's normal business
operations upon
reasonable prior advance notice. In the course of such examinations
and audits,
the Seller will make available to such representatives of any of
the Purchaser,
each Underwriter, the Initial Purchaser, the Trustee, the
Custodian, the
applicable Special Servicer and each Rating Agency reasonably
adequate
facilities, as well as the assistance of a sufficient number of
knowledgeable
and responsible individuals who are familiar with the Mortgage
Loans and the
terms of this Agreement, and the Seller shall cooperate fully with
any such
examination and audit in all material respects. On or prior to the
Closing Date,
the Seller shall provide the Purchaser with all material
information regarding
the Seller's financial condition and access to knowledgeable
financial or
accounting officers for the purpose of answering questions with
respect to the
Seller's financial condition, financial statements as provided to
the Purchaser
or other developments affecting the Seller's ability to consummate
the
transactions contemplated hereby or otherwise affecting the Seller
in any
material respect. Within 45 days after the Closing Date, the Seller
shall
provide the applicable Master Servicer or Primary Servicer, if
applicable, with
any additional information identified by such Master Servicer or
Primary
Servicer, if applicable, as necessary to complete the CMSA Property
File, to the
extent that such information is available.
The Purchaser may exercise any of its rights hereunder through
one or more designees or agents; provided the Purchaser has
provided the Seller
with prior notice of the identity of such designee or agent.
The Purchaser shall keep confidential any information regarding
the Seller and the Mortgage Loans that has been delivered into the
Purchaser's
possession and that is not otherwise publicly available; provided,
however, that
such information shall not be kept confidential (and the right to
require
confidentiality under any confidentiality agreement is hereby
waived) to the
extent such information is required to be included in the
Memorandum or the
Prospectus Supplement or the Purchaser is required by law or court
order to
disclose such information. If the Purchaser is required to disclose
in the
Memorandum or the Prospectus Supplement confidential information
regarding the
Seller as described in the preceding sentence, the Purchaser shall
provide to
the Seller a copy of the proposed form of such disclosure prior to
making such
disclosure and the Seller shall promptly, and in any event within
two Business
Days, notify the Purchaser of any inaccuracies therein, in which
case the
Purchaser shall modify such form in a manner that corrects such
inaccuracies. If
the Purchaser is required by law or court order to disclose
confidential
information regarding the Seller as described in the second
preceding sentence,
the Purchaser shall notify the Seller and cooperate in the Seller's
efforts to
obtain a protective order or other reasonable assurance that
confidential
treatment will be accorded such information and, if in the absence
of a
protective order or such assurance, the Purchaser is compelled as a
matter of
law to disclose such information, the Purchaser shall, prior to
making such
disclosure, advise and consult with the Seller and its counsel as
to such
disclosure and the nature and wording of such disclosure and the
Purchaser shall
use reasonable efforts to obtain confidential treatment
therefor.
Notwithstanding the foregoing, if reasonably advised by counsel
that the
Purchaser is required by a regulatory agency or court order to make
such
disclosure immediately, then the Purchaser shall be permitted to
make such
disclosure without prior review by the Seller.
Section 4. Representations and Warranties of the Seller and the
Purchaser.
(a) To induce the Purchaser to enter into this Agreement, the
Seller hereby makes for the benefit of the Purchaser and its
assigns with
respect to each Mortgage Loan as of the date hereof (or as of such
other date
specifically set forth in the particular representation and
warranty) each of
the representations and warranties set forth on Exhibit 2 hereto,
except as
otherwise set forth on Schedule A attached hereto, and hereby
further represents
and warrants to the Purchaser as of the date hereof that:
(i) The Seller is duly organized and is validly existing as a
limited liability company in good standing under the laws of the
State
of Delaware. The Seller has the requisite power and authority
and
legal right to own the Mortgage Loans and to transfer and convey
the
Mortgage Loans to the Purchaser and has the requisite power and
authority to execute and deliver, engage in the transactions
contemplated by, and perform and observe the terms and conditions
of,
this Agreement.
(ii) This Agreement has been duly and validly authorized,
executed and delivered by the Seller, and assuming the due
authorization, execution and delivery hereof by the Purchaser,
this
Agreement constitutes the valid, legal and binding agreement of
the
Seller, enforceable in accordance with its terms, except as
such
enforcement may be limited by (A) laws relating to bankruptcy,
insolvency, reorganization, receivership or moratorium, (B) other
laws
relating to or affecting the rights of creditors generally, (C)
general equity principles (regardless of whether such enforcement
is
considered in a proceeding in equity or at law) or (D) 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
from liabilities under applicable securities laws.
(iii) 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
execution,
delivery and performance of or compliance by the Seller with
this
Agreement, or the consummation by the Seller of any transaction
contemplated hereby, other than (1) such qualifications as may
be
required under state securities or blue sky laws, (2) 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, (3) such consents,
approvals,
authorizations, qualifications, registrations, filings or notices
as
have been obtained and (4) 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.
(iv) Neither the transfer of the Mortgage Loans to the
Purchaser,
nor the execution, delivery or performance of this Agreement by
the
Seller, conflicts or will conflict with, results or will result in
a
breach of, or constitutes or will constitute a default under (A)
any
term or provision of the Seller's articles of organization,
limited
liability company operating agreement or by-laws, (B) any term
or
provision of any material agreement, contract, instrument or
indenture
to which the Seller is a party or by which it or any of its assets
is
bound or results in the creation or imposition of any lien, charge
or
encumbrance upon any of its property pursuant to the terms of any
such
indenture, mortgage, contract or other instrument, other than
pursuant
to this Agreement, or (C) after giving effect to the consents
or
taking of the actions contemplated in subsection (iii), any law,
rule,
regulation, order, judgment, writ, injunction or decree of any
court
or governmental authority having jurisdiction over the Seller or
its
assets, except where in any of the instances contemplated by
clauses
(B) or (C) above, any conflict, breach or default, or creation
or
imposition of any lien, charge or encumbrance, will not have a
material adverse effect on the consummation of the transactions
contemplated hereby by the Seller or materially and adversely
affect
its ability to perform its obligations and duties hereunder or
result
in any material adverse change in the business, operations,
financial
condition, properties or assets of the Seller, or in any
material
impairment of the right or ability of the Seller to carry on
its
business substantially as now conducted.
(v) There are no actions or proceedings against, or
investigations of, the Seller pending or, to the Seller's
knowledge,
threatened in writing against the Seller before any court,
administrative agency or other tribunal, the outcome of which
could
reasonably be expected to materially and adversely affect the
transfer
of the Mortgage Loans to the Purchaser or the execution or
delivery
by, or enforceability against, the Seller of this Agreement or have
an
effect on the financial condition of the Seller that would
materially
and adversely affect the ability of the Seller to perform its
obligations under this Agreement.
(vi) On the Closing Date, the sale of the Mortgage Loans
pursuant
to this Agreement will effect a transfer by the Seller of all of
its
right, title and interest in and to the Mortgage Loans to the
Purchaser.
(vii) To the Seller's knowledge, the Loan Seller Information
(as
defined in that certain indemnification agreement, dated as of
November 15, 2007, between the Seller, the Purchaser, the
Underwriters
and the Initial Purchaser (the "Indemnification Agreement"))
contained
in the Disclosure Information (as defined in the
Indemnification
Agreement), the Memorandum and the Prospectus Supplement as of
the
Time of
Sale (as defined in the Indemnification Agreement) (i) does
not contain any untrue statement of a material fact or omit to
state a
material fact necessary to make the statements therein, in the
light
of the circumstances under which they were made, not misleading
and
(ii) (other than the Memorandum) complies with the requirements of
and
contains all of the applicable information required by Regulation
AB
(as defined in the Indemnification Agreement).
To induce the Purchaser to enter into this Agreement, the
Seller
hereby covenants that the foregoing representations and warranties
and those set
forth on Exhibit 2 hereto will be true and correct in all material
respects on
and as of the Closing Date with the same effect as if made on the
Closing Date,
provided that any representations and warranties made as of a
specified date
shall be true and correct in all material respects as of such
specified date.
Each of the representations, warranties and covenants made by
the
Seller pursuant to this Section 4(a) shall survive the sale of the
Mortgage
Loans and shall continue in full force and effect notwithstanding
any
restrictive or qualified endorsement on the Mortgage Notes.
(viii) To induce the Seller to enter into this Agreement, the
Purchaser hereby represents and warrants to the Seller as of the
date
hereof:
(ix) The Purchaser is a corporation duly organized, validly
existing, and in good standing under the laws of the State of
Delaware
with full power and authority to carry on its business as
presently
conducted by it.
(x) The Purchaser has full power and authority to acquire the
Mortgage Loans, to execute and deliver this Agreement and to
enter
into and consummate all transactions contemplated by this
Agreement.
The Purchaser has duly and validly authorized the execution,
delivery
and
performance of this Agreement and has duly and validly executed
and delivered this Agreement. This Agreement, assuming due
authorization, execution and delivery by the Seller, constitutes
the
valid and binding obligation of the Purchaser, enforceable against
it
in accordance with its terms, except as such enforceability may
be
limited by bankruptcy, insolvency, reorganization, moratorium
and
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.
(xi) 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
execution,
delivery and performance of or compliance by the Purchaser with
this
Agreement, or the consummation by the Purchaser of any
transaction
contemplated hereby that has not been obtained or made by the
Purchaser.
(xii) Neither the purchase of the Mortgage Loans nor the
execution, delivery and performance of this Agreement by the
Purchaser
will violate the Purchaser's certificate of incorporation or
by-laws
or constitute a default (or an event that, with notice or lapse
of
time or both, would constitute a default) under, or result in a
breach
of, any material agreement, contract, instrument or indenture to
which
the Purchaser is a party or that may be applicable to the Purchaser
or
its assets.
(xiii) The Purchaser's execution and delivery of this Agreement
and its performance and compliance with the terms of this
Agreement
will not constitute a violation of, any law, rule, writ,
injunction,
order or decree of any court, or order or regulation of any
federal,
state or municipal government agency having jurisdiction over
the
Purchaser or its assets, which violation could materially and
adversely affect the condition (financial or otherwise) or the
operation of the Purchaser or its assets or could materially
and
adversely affect its ability to perform its obligations and
duties
hereunder.
(xiv) There are no actions or proceedings against, or
investigations of, the Purchaser pending or, to the Purchaser's
knowledge, threatened against the Purchaser before any court,
administrative agency or other tribunal, the outcome of which
could
reasonably be expected to adversely affect the transfer of the
Mortgage Loans, the issuance of the Certificates, the
execution,
delivery or enforceability of this Agreement or have an effect on
the
financial condition of the Purchaser that would materially and
adversely affect the ability of the Purchaser to perform its
obligation under this Agreement.
(xv) The Purchaser has not dealt with any broker, investment
banker, agent or other person, other than the Seller, the
Underwriters, the Initial Purchaser and their respective
affiliates,
that may be entitled to any commission or compensation in
connection
with the sale of the Mortgage Loans or consummation of any of
the
transactions contemplated hereby.
To induce the Seller to enter into this Agreement, the
Purchaser
hereby covenants that the foregoing representations and warranties
will be true
and correct in all material respects on and as of the Closing Date
with the same
effect as if made on the Closing Date.
Each of the representations and warranties made by the
Purchaser
pursuant to this Section 4(b) shall survive the purchase of the
Mortgage Loans.
Section 5. Remedies Upon Breach of Representations and
Warranties
Made by the Seller.
(a) It is hereby acknowledged that the Seller shall make for
the
benefit of the Trustee on behalf of the holders of the
Certificates, whether
directly or by way of the Purchaser's assignment of its rights
hereunder to the
Trustee, the representations and warranties set forth on Exhibit 2
hereto (each
as of the date hereof unless otherwise specified).
(b) It is hereby further acknowledged that if any document
required to be delivered to the Custodian on behalf of the Trustee
pursuant to
Section 2 is not delivered as and when required (and including the
expiration of
any grace or cure period), is not properly executed or is defective
on its face,
or if there is a breach of any of the representations and
warranties required to
be made by the Seller regarding the characteristics of the Mortgage
Loans and/or
the related Mortgaged Properties as set forth in Exhibit 2 hereto,
and in either
case such defect or breach, either (i) materially and adversely
affects the
interests of the holders of the Certificates in the related
Mortgage Loan, or
(ii) both (A) the document defect or breach materially and
adversely affects the
value of the Mortgage Loan and (B) the Mortgage Loan is a Specially
Serviced
Mortgage Loan or Rehabilitated Mortgage Loan (such a document
defect described
in the preceding clause (i) or (ii), a "Material Document Defect"
and such a
breach described in the preceding clause (i) or (ii) a "Material
Breach"), the
party discovering such Material Document Defect or Material Breach
shall
promptly notify, in writing, the other party; provided that any
breach of the
representation and warranty contained in paragraph (38) of such
Exhibit 2 shall
constitute a Material Breach only if such prepayment premium or
yield
maintenance charge is not deemed "customary" for commercial
mortgage loans as
evidenced by (i) an opinion of tax counsel to such effect or (ii)
a
determination by the Internal Revenue Service that such provision
is not
customary. Promptly (but in any event within three Business Days)
upon becoming
aware of any such Material Document Defect or Material Breach, the
applicable
Master Servicer shall, and the applicable Special Servicer may,
request that the
Seller, not later than 90 days from the Seller's receipt of the
notice of such
Material Document Defect or Material Breach, cure such Material
Document Defect
or Material Breach, as the case may be, in all material respects;
provided,
however, that if such Material Document Defect or Material Breach,
as the case
may be, cannot be corrected or cured in all material respects
within such 90-day
period, and such Material Document Defect or Material Breach would
not cause the
Mortgage Loan to be other than a "qualified mortgage" (as defined
in the Code),
but the Seller is diligently attempting to effect such correction
or cure, as
certified by the Seller in an Officer's Certificate delivered to
the Trustee,
then the cure period will be extended for an additional 90 days
unless, solely
in the case of a Material Document Defect, (x) the Mortgage Loan
is, at the end
of the initial 90-day period, a Specially Serviced Mortgage Loan
and a Servicing
Transfer Event has occurred as a result of a monetary default or as
described in
clause (ii) or clause (v) of the definition of "Servicing Transfer
Event" in the
Pooling and Servicing Agreement and (y) the Material Document
Defect was
identified in a certification delivered to the Seller by the
Trustee pursuant to
Section 2.2 of the Pooling and Servicing Agreement not less than 90
days prior
to the delivery of the notice of such Material Document Defect. The
parties
acknowledge that neither delivery of a certification or schedule of
exceptions
to the Seller pursuant to Section 2.2 of the Pooling and Servicing
Agreement or
otherwise nor possession of such certification or schedule by the
Seller shall,
in and of itself, constitute delivery of notice of any Material
Document Defect
or knowledge or awareness by the Seller of any Material Document
Defect listed
therein.
The Seller hereby covenants and agrees that, if any such
Material
Document Defect or Material Breach cannot be corrected or cured in
all material
aspects within the above cure periods, the Seller shall, on or
before the
termination of such cure periods, either (i) repurchase the
affected Mortgage
Loan or REO Mortgage Loan from the Purchaser or its assignee at the
Purchase
Price as defined in the Pooling and Servicing Agreement, or (ii) if
within the
two-year period commencing on the Closing Date, at its option
replace, without
recourse, any Mortgage Loan or REO Mortgage Loan to which such
defect relates
with a Qualifying Substitute Mortgage Loan. If such Material
Document Defect or
Material Breach would cause the Mortgage Loan to be other than a
"qualified
mortgage" (as defined in the Code), then notwithstanding the
previous sentence,
such repurchase or substitution must occur within 90 days from the
earlier of
the date the Seller discovered or was notified of the breach or
defect. The
Seller agrees that any substitution shall be completed in
accordance with the
terms and conditions of the Pooling and Servicing Agreement.
If (i) a Mortgage Loan is to be repurchased or replaced in
connection with a Material Document Defect or Material Breach as
contemplated
above, (ii) such Mortgage Loan is cross-collateralized and
cross-defaulted with
one or more other Mortgage Loans in the Trust and (iii) the
applicable document
defect or breach does not constitute a Material Document Defect or
Material
Breach, as the case may be, as to such other Mortgage Loans
(without regard to
this paragraph), then the applicable document defect or breach (as
the case may
be) shall be deemed to constitute a Material Document Defect or
Material Breach,
as the case may be, as to each such other Mortgage Loan for
purposes of the
above provisions, and the Seller shall be obligated to repurchase
or replace
each such other Mortgage Loan in accordance with the provisions
above, unless,
in the case of such breach or document defect, both of the
following conditions
would be satisfied if the Seller were to repurchase or replace only
those
Mortgage Loans as to which a Material Document Defect or Material
Breach had
occurred without regard to this paragraph (the "Affected Loan(s)"):
(1) the debt
service coverage ratio for all such other Mortgage Loans (excluding
the Affected
Loan(s)) for the four calendar quarters immediately preceding the
repurchase or
replacement (determined as provided in the definition of Debt
Service Coverage
Ratio in the Pooling and Servicing Agreement, except that net cash
flow for such
four calendar quarters, rather than year-end, shall be used) is
equal to the
greater of (x) the debt service coverage ratio for all such
Mortgage Loans
(including the Affected Loan(s)) set forth under the heading "NCF
DSCR" in
Appendix II to the Final Prospectus Supplement and (y) 1.25x, and
(2) the
Loan-to-Value Ratio for all such other Mortgage Loans (excluding
the Affected
Loan(s)) is not greater than the lesser of (x) the current
loan-to-value ratio
for all such Mortgage Loans (including the Affected Loan(s)) set
forth under the
heading "Cut-Off Date LTV" in Appendix II to the Final Prospectus
Supplement and
(y) 75%. The determination of the applicable Master Servicer as to
whether
either of the conditions set forth above has been satisfied shall
be conclusive
and binding in the absence of manifest error. The applicable Master
Servicer
will be entitled to cause, or direct the Seller to cause, to be
delivered to
such Master Servicer at the Seller's expense (i) an Appraisal of
any or all of
the related Mortgaged Properties for purposes of determining
whether the
condition set forth in clause (2) above has been satisfied, in each
case at the
expense of the Seller if the scope and cost of the Appraisal is
approved by the
Seller (such approval not to be unreasonably withheld) and (ii) an
Opinion of
Counsel that not requiring the repurchase of each such
Cross-Collateralized Loan
will not result in an Adverse REMIC Event.
With respect to any Mortgage Loan that is cross-defaulted
and/or
cross-collateralized with any other Mortgage Loan conveyed
hereunder, to the
extent that the Seller is required to repurchase or substitute for
such Mortgage
Loan (each, a "Repurchased Loan") in the manner prescribed above
while the
Trustee (as assignee of
