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Exhibit 99.5
NatCity Mortgage Loan Purchase Agreement
<PAGE>
MORTGAGE LOAN PURCHASE AGREEMENT
(NATIONAL CITY BANK LOANS)
Mortgage Loan Purchase Agreement (this "Agreement"), dated as
of
August 1, 2007, between National City Bank (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 August 1, 2007, between the
Purchaser, as
depositor, Capmark Finance Inc., as Capmark Master Servicer,
Prudential Asset
Resources, Inc., as Prudential Master Servicer and DC Hilton
Special Servicer,
Centerline Servicing, Inc. (formerly ARCap Servicing, Inc.), as
General Special
Servicer, Wells Fargo Bank, National Association, as Trustee and
Custodian, and
U.S. Bank National Association, 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-IQ15 (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
and Class A-J Certificates (the "Public Certificates") will be
sold by the
Purchaser to Morgan Stanley & Co. Incorporated, Bear,
Stearns & Co. Inc., RBC
Capital Markets Corporation and Greenwich Capital Markets, Inc.
(collectively,
the "Underwriters"), pursuant to an Underwriting Agreement,
between the
Purchaser and the Underwriters, dated August 9, 2007 (the
"Underwriting
Agreement"), and the Class X, 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
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 August 9, 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 August 9,
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 August 9, 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
August 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 $95,046,642. The sale of the Mortgage Loans shall
take place on
August 23, 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
as of August 23, 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 Wells Fargo
Bank, National
Association, as Trustee for Morgan Stanley Capital I Inc.,
Commercial Mortgage
Pass-Through Certificates, Series 2007-IQ15, 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 "Wells Fargo Bank, National Association, as Trustee for
Morgan Stanley
Capital I Inc., Commercial Mortgage Pass-Through Certificates,
Series
2007-IQ15";
(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 after recordation, 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 "Wells
Fargo Bank, National Association, as Trustee for Morgan Stanley
Capital I Inc.,
Commercial Mortgage Pass-Through Certificates, Series
2007-IQ15," 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) 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, assignment of 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 office 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, 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
and each Mortgage Loan secured by a Mortgaged Property with
respect to which a
letter of credit is in place, the Seller shall provide a notice
on or prior to
the date that is thirty (30) days after the Closing Date to the
franchisor or
the issuing financial institution, as applicable, of the
transfer of such
Mortgage Loan to the Trust pursuant to the Pooling and Servicing
Agreement, and
inform such parties that any notices to the Mortgagor's lender
pursuant to such
franchise agreement or letter of credit should thereafter be
forwarded to the
applicable Master Servicer and, with respect to each franchise
agreement,
provide a franchise comfort letter to the franchisor on or prior
to the date
that is thirty (30) days after the Closing Date. After the
Closing Date, with
respect to any letter of credit that has not yet been assigned
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, any
attorney-client
communications that are privileged communications or constitute
legal or other
due diligence analyses, or internal communications of Seller or
its affiliates,
or credit underwriting or other analyses, worksheets, memoranda,
communications,
evaluations or data. 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
constituting the
Servicing File 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 hereby agrees to provide the Purchaser with prompt
notice
of any information it receives which indicates that the transfer
of each
Mortgage Loan from the Seller to the Purchaser may not be
treated as a sale. 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 hereby authorizes the
applicable Master
Servicer, the Trustee and the Custodian to 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 the applicable 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
national banking association in good standing under the laws of
the United
States. 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, fraudulent
transfer,
reorganization, conservatorship, 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 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
August 9,
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, subject to the exceptions set forth
in Schedule A to
Exhibit 2, 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
respects 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 Breach or Material
Document Defect 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 is not less than (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)
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 (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 the Purchaser) continues to hold any
other Mortgage Loan
that is cross-collateralized and/or cross-defaulted (each, a
"Cross-Collateralized Loan") with such Repurchased Loan, the
Seller and the
Purchaser hereby agree to modify, prior to such repurchase or
substitution, the
related Mortgage Loan documents in a manner such that such
affected Repurchased
Loan, on the one hand, and any related Crossed-Collateralized
Loans held by the
Trustee, on the other, would no longer be cross-defaulted or
cross-collateralized with one another; provided that the Seller
shall have
furnished the Trustee, at the expense of the Seller, a
nondisqualification
opinion that such modification shall not cause an Adverse REMIC
Event; provided,
further, that if such nondisqualification opinion cannot be
furnished, the
Seller and the Purchaser agree that such repurchase or
substitution of only the
Repurchased Loan, notwithstanding anything to the contrary
herein, shall not be
permitted and the Seller shall repurchase or substitute for the
Repurchased Loan
and all related Crossed-Collateralized Loans. Any reserve or
other cash
collateral or letters of credit securing the
Cross-Collateralized Loans shall be
allocated between such Mortgage Loans in accordance with the
Mortgage Loan
documents, or otherwise on a pro rata basis based upon their
outstanding
principal balances. All other terms of the Mortgage Loans shall
remain in full
force and effect, without any modification thereof. The
Mortgagors set forth on
Schedule B hereto are intended third-party beneficiaries of the
provisions set
forth in this paragraph and the preceding paragraph. The
provisions of this
paragraph and the preced
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