<PAGE>
---------------
|EXECUTION COPY |
---------------
================================================================================
BANC OF AMERICA FUNDING CORPORATION,
as Depositor,
WELLS FARGO BANK, N.A.,
as Master
Servicer and Securities Administrator,
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
POOLING AND SERVICING AGREEMENT
Dated January 30, 2007
-------------------------------
Mortgage Pass-Through Certificates
Series 2007-1
================================================================================
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
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<S> <C>
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<C>
<C>
<C>
<C>
ARTICLE I
DEFINITIONS
Section 1.01
Defined
Terms..............................................................................19
Section 1.02
Interest
Calculations......................................................................86
ARTICLE
II
CONVEYANCE OF MORTGAGE LOANS ORIGINAL ISSUANCE OF CERTIFICATES
Section 2.01
Conveyance of Mortgage
Loans...............................................................86
Section 2.02
Acceptance by the Trustee or Custodian of the Mortgage
Loans...............................91
Section 2.03
Representations, Warranties and Covenants of the Master
Servicer...........................96
Section 2.04
Representations and Warranties of the Depositor as to the
Mortgage
Loans......................................................................................97
Section 2.05
Designation of Interests in the
REMICs.....................................................98
Section 2.06
Designation of Start-up
Day................................................................99
Section 2.07
REMIC Certificate Maturity
Date............................................................99
Section 2.08
Execution and Delivery of
Certificates.....................................................99
Section 2.09
Establishment of the
Trust................................................................100
Section 2.10
Purpose and Powers of the
Trust...........................................................100
Section 2.11
Rights of the NIMS
Insurer................................................................100
ARTICLE III
ADMINISTRATION AND MASTER SERVICING OF MORTGAGE LOANS
Section 3.01
Master Servicing of the Mortgage
Loans....................................................101
Section 3.02
Monitoring of
Servicers...................................................................101
Section 3.03
Fidelity Bond; Errors and Omissions
Insurance.............................................103
Section 3.04
Access to Certain
Documentation...........................................................104
Section 3.05
Maintenance of Primary Mortgage Insurance Policy;
Claims..................................104
Section 3.06
Rights of the Depositor, the Securities Administrator and the
Trustee in
Respect of the Master
Servicer............................................................105
Section 3.07
Trustee to Act as Master
Servicer.........................................................105
Section 3.08
Servicer Custodial Accounts and Escrow
Accounts...........................................105
Section 3.09
Collection of Mortgage Loan Payments; Master Servicer Custodial
Account, Certificate Account, Cap Carryover Reserve Account, Class
1-
A-1 Reserve Fund and Interest Rate Cap
Agreement..........................................106
Section 3.10
Access to Certain Documentation and Information Regarding the
Mortgage
Loans............................................................................111
-i-
<PAGE>
Section 3.11
Permitted Withdrawals from the Certificate Account and the
Master
Servicer Custodial
Account................................................................111
Section 3.12
Maintenance of Hazard Insurance and Other
Insurance.......................................112
Section 3.13
Presentment of Claims and Collection of
Proceeds..........................................113
Section 3.14
Enforcement of Due-On-Sale Clauses; Assumption
Agreements.................................113
Section 3.15
Realization Upon Defaulted Mortgage Loans; REO
Property...................................113
Section 3.16
Trustee to Cooperate; Release of Mortgage
Files...........................................115
Section 3.17
Documents, Records and Funds in Possession of the Master Servicer
to
be Held for the
Trustee...................................................................116
Section 3.18
Master Servicer
Compensation..............................................................117
Section 3.19
Advances..................................................................................117
Section 3.20
Annual Statement as to
Compliance.........................................................117
Section 3.21
Assessments of Compliance and Attestation
Reports.........................................118
Section 3.22
Reports to the
Commission.................................................................120
ARTICLE IV
MASTER SERVICER'S CERTIFICATE
Section 4.01
Master Servicer's
Certificate.............................................................127
ARTICLE V
PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS;REMIC
ADMINISTRATION
Section 5.01
Distributions.............................................................................127
Section 5.02
Priorities of Distributions on the Shifting Interest
Certificates.........................128
Section 5.03
Priorities of Distributions on the Overcollateralized
Certificates........................135
Section 5.04
Allocation of
Losses......................................................................147
Section 5.05
Statements to
Certificateholders..........................................................151
Section 5.06
REMIC Tax Returns and Reports to
Certificateholders.......................................157
Section 5.07
Tax
Matters
Person........................................................................158
Section 5.08
Rights of the Tax
Matters Person in Respect of the Securities
Administrator.............................................................................159
Section 5.09
REMIC and Grantor Trust Related
Covenants.................................................159
Section 5.10
Determination of One-Month
LIBOR..........................................................160
Section 5.11
Master Servicer, Securities Administrator and Trustee
Indemnification.....................161
Section 5.12
Grantor Trust
Administration..............................................................162
Section 5.13
Distributions on the Exchangeable
Certificates............................................163
Section 5.14
Supplemental Interest
Trust...............................................................163
Section 5.15
Tax
Treatment of Swap Payments and Swap Termination
Payments..............................165
ARTICLE
VI
THE CERTIFICATES
-ii-
<PAGE>
Section 6.01
The
Certificates..........................................................................166
Section 6.02
Registration of Transfer and Exchange of
Certificates.....................................166
Section 6.03
Mutilated, Destroyed, Lost or Stolen
Certificates.........................................171
Section 6.04
Persons Deemed
Owners.....................................................................172
Section 6.05
Transfer of Exchangeable REMIC and Exchangeable
Certificates..............................172
Section 6.06
Exchanges of Exchangeable REMIC and Exchangeable
Certificates.............................172
ARTICLE VII
THE DEPOSITOR AND THE MASTER SERVICER
Section 7.01
Respective Liabilities of the Depositor and the Master
Servicer...........................174
Section 7.02
Merger or Consolidation of the Depositor or the Master
Servicer...........................174
Section 7.03
Limitation on Liability of the Depositor, the Master Servicer and
Others..................175
Section 7.04
Depositor and Master Servicer Not to
Resign...............................................175
ARTICLE VIII
DEFAULT
Section 8.01
Events of
Default.........................................................................176
Section 8.02
Remedies of
Trustee.......................................................................177
Section 8.03
Directions by Certificateholders and Duties of Trustee During Event
of Default............178
Section 8.04
Action upon Certain Failures of the Master Servicer and upon Event
of Default.............178
Section 8.05
Trustee to Act; Appointment of
Successor..................................................178
Section 8.06
Notification to
Certificateholders........................................................180
ARTICLE IX
THE TRUSTEE AND THE SECURITIES ADMINISTRATOR
Section 9.01
Duties of Trustee and Securities
Administrator............................................180
Section 9.02
Certain Matters Affecting the Trustee and the Securities
Administrator....................185
Section 9.03
Neither Trustee nor Securities Administrator Liable for
Certificates or
Mortgage
Loans............................................................................186
Section 9.04
Trustee and Securities Administrator May Own
Certificates.................................187
Section 9.05
Eligibility Requirements for Trustee and the Securities
Administrator.....................187
Section 9.06
Resignation and Removal of Trustee and the Securities
Administrator.......................188
Section 9.07
Successor Trustee or Securities
Administrator.............................................189
Section 9.08
Merger or Consolidation of Trustee or Securities
Administrator............................190
Section 9.09
Appointment of
Co-Trustee or Separate
Trustee.............................................190
Section 9.10
Authenticating
Agents.....................................................................191
Section 9.11
Securities Administrator's Fees and Expenses and Trustee's Fees and
Expenses..............192
Section 9.12
Appointment of
Custodian..................................................................193
-iii-
<PAGE>
Section 9.13
Paying
Agents.............................................................................193
Section 9.14
Limitation of
Liability...................................................................194
Section 9.15
Trustee or Securities Administrator May Enforce Claims Without
Possession of
Certificates................................................................195
Section 9.16
Suits for
Enforcement.....................................................................195
Section 9.17
Waiver of Bond
Requirement................................................................195
Section 9.18
Waiver of Inventory, Accounting and Appraisal
Requirement.................................195
ARTICLE X
TERMINATION
Section 10.01
Termination upon Purchase or Liquidation of All Mortgage
Loans............................195
Section 10.02
Additional
Termination
Requirements.......................................................198
ARTICLE XI
MISCELLANEOUS PROVISIONS
Section 11.01
Amendment.................................................................................199
Section 11.02
Recordation of Agreement;
Counterparts....................................................201
Section 11.03
Limitation
on Rights of
Certificateholders................................................201
Section 11.04
Governing
Law.............................................................................202
Section 11.05
Notices...................................................................................202
Section 11.06
Severability of
Provisions................................................................203
Section 11.07
Certificates Nonassessable and Fully
Paid.................................................203
Section 11.08
Access to
List of
Certificateholders......................................................203
Section 11.09
Recharacterization........................................................................204
Section 11.10
Regulation
AB Compliance; Intent of the Parties;
Reasonableness...........................204
Section 11.11
Third
Party
Beneficiary...................................................................204
-iv-
<PAGE>
EXHIBITS
Exhibit A-1AR
Form of Face of Class 1-A-R Certificate
Exhibit A-1A1
Form of Face of Class 1-A-1 Certificate
Exhibit A-1A2
Form of Face of Class 1-A-2 Certificate
Exhibit A-1A3
Form of Face of
Class 1-A-3 Certificate
Exhibit A-1A4
Form of Face of Class 1-A-4 Certificate
Exhibit A-1A5
Form of Face of Class 1-A-5 Certificate
Exhibit A-1A6
Form of Face of Class 1-A-6 Certificate
Exhibit A-1A7
Form of Face of Class 1-A-7 Certificate
Exhibit A-1A8
Form of Face of Class 1-A-8 Certificate
Exhibit A-1A9
Form of Face of Class 1-A-9 Certificate
Exhibit A-1A10
Form of Face of Class 1-A-10 Certificate
Exhibit A-1A11
Form of Face of Class 1-A-11 Certificate
Exhibit A-1A12
Form of Face of Class 1-A-12 Certificate
Exhibit A-1A13
Form of Face of Class 1-A-13 Certificate
Exhibit A-1A14
Form of Face of Class 1-A-14 Certificate
Exhibit A-1A15
Form of Face of Class 1-A-15 Certificate
Exhibit A-1A16
Form of Face of Class 1-A-16 Certificate
Exhibit A-1A17
Form of Face of Class 1-A-17 Certificate
Exhibit A-1A18
Form of Face of Class 1-A-18 Certificate
Exhibit A-1A19
Form of Face of Class 1-A-19 Certificate
Exhibit A-1A20
Form of Face of Class 1-A-20 Certificate
Exhibit A-1A21
Form of Face of Class 1-A-21 Certificate
Exhibit A-1A22
Form of Face of Class 1-A-22 Certificate
Exhibit A-1A23
Form of Face of Class 1-A-23 Certificate
Exhibit A-1A24
Form of Face of Class 1-A-24 Certificate
Exhibit A-1A25
Form of Face of Class 1-A-25 Certificate
Exhibit A-1A26
Form of Face of Class 1-A-26 Certificate
Exhibit A-1A27
Form of Face of Class 1-A-27 Certificate
Exhibit A-1A28
Form of Face of Class 1-A-28 Certificate
Exhibit A-1A29
Form of Face of Class 1-A-29 Certificate
Exhibit A-30IO
Form of Face of Class 30-IO Certificate
Exhibit A-30PO
Form of Face of Class 30-PO Certificate
Exhibit A-TA1A
Form of Face of Class T-A-1A Certificate
Exhibit A-TA1B
Form of Face of Class T-A-1B Certificate
Exhibit A-TA2
Form of Face of Class T-A-2 Certificate
Exhibit A-TA3A
Form of Face of Class T-A-3A Certificate
Exhibit A-TA3B
Form of Face of Class T-A-3B Certificate
Exhibit A-TA4
Form of Face of Class T-A-4 Certificate
Exhibit A-TA5
Form of Face of Class T-A-5 Certificate
Exhibit A-TA6
Form of Face of Class T-A-6 Certificate
Exhibit A-TA7
Form of Face of Class T-A-7 Certificate
Exhibit A-TA8
Form of Face of Class T-A-8 Certificate
Exhibit A-TA9
Form of Face of Class T-A-9 Certificate
Exhibit A-TA10
Form of Face of Class T-A-10 Certificate
-v-
<PAGE>
Exhibit A-TA11
Form of Face of Class T-A-11 Certificate
Exhibit B-1B1
Form of Face of Class 1-B-1 Certificate
Exhibit B-1B2
Form of Face of Class 1-B-2 Certificate
Exhibit B-1B3
Form of Face of Class 1-B-3 Certificate
Exhibit B-1B4
Form of Face of Class 1-B-4 Certificate
Exhibit B-1B5
Form of Face of Class 1-B-5 Certificate
Exhibit B-1B6
Form of Face of Class 1-B-6 Certificate
Exhibit B-TM1
Form of Face of Class T-M-1 Certificate
Exhibit B-TM2
Form of Face of Class T-M-2 Certificate
Exhibit B-TM3
Form of Face of Class T-M-3 Certificate
Exhibit B-TM4
Form of Face of Class T-M-4 Certificate
Exhibit B-TM5
Form of Face of Class T-M-5 Certificate
Exhibit B-TB1
Form of Face of Class T-B-1 Certificate
Exhibit B-CE
Form of Face of Class CE Certificate
Exhibit B-P
Form of Face of Class P Certificate
Exhibit C
Form of Reverse of all Certificates
Exhibit D-1
Loan Group 1 Mortgage Loan Schedule
Exhibit D-T2
Loan Group T2 Mortgage Loan Schedule
Exhibit E
Request for Release of Documents
Exhibit F
Form of Certification of Establishment of Account
Exhibit G-1
Form of Transferor's Certificate
Exhibit G-2A
Form 1 of Transferee's Certificate
Exhibit G-2B
Form 2 of Transferee's Certificate
Exhibit H
Form of Transferee Representation Letter for ERISA
Restricted Certificates
Exhibit I
Form of Affidavit Regarding Transfer of Residual Certificate
Exhibit J
List of Recordation States
Exhibit K
Form of Initial Certification
Exhibit L
Form of Final Certification
Exhibit M
Form of Sarbanes-Oxley Certification
Exhibit N
Relevant Servicing Criteria
Exhibit O
Additional Form 10-D Disclosure
Exhibit P
Additional Form 10-K Disclosure
Exhibit Q
Form 8-K Disclosure Information
Exhibit R
Form of Back-up Certification
Exhibit S
Form of Additional Disclosure Notification
Exhibit T
Interest Rate Cap Agreement
Exhibit U-1
Interest Rate Swap Agreement A
Exhibit U-2
Interest Rate Swap Agreement B
Exhibit U-3
Interest Rate Swap Agreement C
Exhibit V
Principal Balance Schedules
Exhibit W
Available Combinations
Exhibit X
Form of Request for Exchange of Exchangeable REMIC or Exchangeable
Certificates
Exhibit Y
Form of Transferor Certificate Regarding Transfer of Residual
Certificate
</TABLE>
-vi-
<PAGE>
POOLING AND SERVICING AGREEMENT
THIS
POOLING AND SERVICING
AGREEMENT,
dated January 30, 2007, is hereby
executed by and
among BANC OF AMERICA FUNDING CORPORATION, as depositor
(together with its permitted successors and assigns,
the "Depositor"), WELLS
FARGO BANK, N.A., as master servicer (together with its permitted
successors and
assigns, in
such capacity, the "Master Servicer") and as securities
administrator
(together with its
permitted successors and assigns, in such
capacity, the "Securities Administrator"), and U.S. BANK NATIONAL
ASSOCIATION,
as trustee (together with its permitted successors and assigns, the
"Trustee").
W I T N E S S E T H T H A T:
- - - - - - - - - - - - - -
In
consideration of the mutual agreements herein contained,
the Depositor,
the Master Servicer,
the Securities Administrator and the Trustee agree as
follows:
PRELIMINARY STATEMENT
The
Depositor intends to sell pass-through certificates (collectively,
the
"Certificates"), to be
issued hereunder in multiple Classes, which in the
aggregate,
together with
the Uncertificated Class Swap-IOA Interest,
Uncertificated
Class Swap-IOB
Interest and Uncertificated Class Swap-IOC
Interest issued by the Upper-Tier II REMIC, will evidence the entire
beneficial
ownership interest in the Trust Estate created hereunder.
The Certificates
will
consist of fifty-nine
Classes of Certificates, designated as (i) the Class
1-A-1, Class 1-A-2,
Class 1-A-3,
Class 1-A-4, Class
1-A-5, Class 1-A-6, Class
1-A-7, Class 1-A-8, Class 1-A-9, Class 1-A-10, Class 1-A-11, Class
1-A-12, Class
1-A-13, Class 1-A-14,
Class 1-A-15,
Class 1-A-16, Class
1-A-17, Class 1-A-18,
Class 1-A-19, Class
1-A-20, Class 1-A-21,
Class 1-A-22,
Class 1-A-23,
Class
1-A-24, Class 1-A-25,
Class 1-A-26,
Class 1-A-27, Class
1-A-28, Class 1-A-29,
Class 30-IO, Class 30-PO, Class T-A-1A, Class T-A-1B, Class T-A-2,
Class T-A-3A,
Class T-A-3B, Class
T-A-4, Class T-A-5,
Class T-A-6, Class T-A-7, Class T-A-8,
Class T-A-9, Class T-A-10 and Class T-A-11 Certificates, (ii) Class
1-B-1, Class
1-B-2, Class 1-B-3,
Class 1-B-4,
Class 1-B-5, Class
1-B-6, Class T-M-1, Class
T-M-2, Class T-M-3, Class T-M-4, Class T-M-5 and Class T-B-1
Certificates, (iii)
the Class CE Certificates, (iv) the Class P Certificates and (v)
the Class 1-A-R
Certificate. The
descriptions of the Shifting Interest Lower-Tier REMIC, the
Shifting Interest Middle-Tier REMIC, the Shifting Interest
Upper-Tier REMIC, the
Lower-Tier II REMIC,
the Middle-Tier II
REMIC and the Upper-Tier II REMIC that
follow are part of the Preliminary Statement. Any inconsistencies
or ambiguities
in this Agreement or in the administration of this Agreement shall be
resolved
pursuant to the terms of Section 11.01 hereof in a manner that
preserves the
validity of such REMIC elections described below.
<PAGE>
Shifting Interest Lower-Tier REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated pool of assets consisting of the Group 1
Mortgage Loans and
certain other related
assets subject to this
Agreement (but exclusive of the
Interest Rate Cap
Agreement and the
Class 1-A-1 Reserve Fund) as a real estate
mortgage investment conduit ("REMIC") for federal income tax
purposes, and such
segregated pool
of assets will be designated as the "Shifting Interest
Lower-Tier REMIC." The
Class SI-LR Interest
will represent the sole class of
"residual interests"
in the Shifting Interest Lower-Tier REMIC for purposes
of
the REMIC Provisions. The following table irrevocably sets forth the
designation, the
Uncertificated Shifting Interest Lower-Tier REMIC Pass-Through
Rate, the initial Uncertificated Balance, and solely for purposes
of satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the Uncertificated Shifting Interest Lower-Tier Regular
Interests. None of the
Uncertificated
Shifting Interest
Lower-Tier
Interests
will be certificated.
<TABLE>
<CAPTION>
------------------------ -----------------------------
-------------------------------- --------------------------
Uncertificated Shifting
Initial Uncertificated
Interest Lower-Tier REMIC Latest Possible
Maturity
Designation
Balance
Pass-Through Rate
Date(1)
------------------------ -----------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
1-L
$397,085,771.09
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-LIO
$19,809,177.00(2)
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-LPO
$1,626,501.00
(3)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for
the Group 1
Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each
Uncertificated
Shifting Interest Lower-Tier Regular Interest.
(2) Calculated in
accordance with the definition of "Notional Amount" herein.
(3) The Class 1-LPO
Interest will not bear interest.
-2-
<PAGE>
Shifting Interest Middle-Tier REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated pool of assets consisting of the Uncertificated Shifting
Interest Lower-Tier
Regular Interests as a REMIC for federal income tax
purposes, and such segregated pool of assets will be designated as
the "Shifting
Interest Middle-Tier
REMIC." The Class
SI-MR Interest will
represent the sole
class of "residual
interests" in the Shifting Interest Middle-Tier REMIC for
purposes of the REMIC Provisions. The following table irrevocably
sets forth the
designation, the Uncertificated Shifting Interest Middle-Tier REMIC
Pass-Through
Rate, the initial Uncertificated Balance, and solely for purposes
of satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the
Uncertificated
Shifting Interest Middle-Tier Regular
Interests. None of the
Uncertificated
Shifting Interest Middle-Tier Interests
will be certificated.
<TABLE>
<CAPTION>
------------------------ -----------------------------
-------------------------------- --------------------------
Designations
Initial Uncertificated
Uncertificated Shifting Latest
Possible Maturity
Interest Middle-Tier REMIC
Balance
Pass-Through Rate
Date(1)
------------------------ -----------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
MRI-1-A-1
$125,000,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-R
$100.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-2
$17,677,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-3
$33,726,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-4
$174,826,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-5
$26,074,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-A-6
$2,638,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-IO
$19,809,177.00(2)
(3)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-PO
$1,626,501.00
0.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-1
$9,170,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-2
$2,990,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-3
$1,794,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-4
$1,197,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-5
$996,000.00
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRI-1-B-6
$997,671.09
6.00%
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for the Group 1 Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each
Uncertificated
Shifting Interest Middle-Tier Regular Interest.
(2) Calculated in
accordance with the definition of "Notional Amount" herein.
(3) For federal income
tax purposes, the Class MRI-IO Interest will be entitled
to
100% of the amounts distributed on the Uncertificated Shifting Interest
Lower-Tier Class 1-LIO Interest.
The
foregoing Shifting
Interest Lower-Tier REMIC and Shifting Interest
Middle-Tier REMIC
structure is intended
to cause all the cash from the Group 1
Mortgage Loans to flow through the Shifting Interest Upper-Tier REMIC as cash
flow on a Shifting Interest Upper-Tier Regular Interest, without creating any
shortfall, actual or potential (other than for losses), to any
Shifting Interest
Upper-Tier Regular
Interest. To the extent that the
structure is believed
to
diverge from such intention, the party identifying such ambiguity or drafting
error shall
notify the other
parties hereto, and the parties hereto shall
-3-
<PAGE>
attempt to resolve such ambiguity or drafting error in accordance with Section
11.01 hereto.
-4-
<PAGE>
Shifting Interest Upper-Tier REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated pool of assets consisting of the Uncertificated Shifting
Interest Middle-Tier
Regular Interests as a REMIC for federal income tax
purposes, and such segregated pool of assets will be designated as
the "Shifting
Interest Upper-Tier
REMIC." The Class
SI-UR Interest will
represent the sole
class of "residual
interests" in the
Shifting Interest
Upper-Tier
REMIC for
purposes of the REMIC Provisions. The following table irrevocably
sets forth (or
describes) the
designation,
the Interest Rate, and Initial Uncertificated
Balance or
Notional Amount for each Shifting Interest Upper-Tier Regular
Interest comprising
the "regular interests" in the Shifting Interest Upper-Tier
REMIC for purposes of the REMIC Provisions and solely for purposes
of Satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each class of Shifting Interest Upper-Tier Regular
Interests.
<TABLE>
<CAPTION>
------------------------ -----------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated
Interest Rate
Latest Possible Maturity
Balance or Notional Amount
Date(1)
------------------------ -----------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
1-A-R
$100.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-1
$125,000,000.00
(4)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-5
$6,145,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-6
$33,726,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-7
$1,405,250.00(3)
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-8
$11,512,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-9
$125,000,000.00(3)
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-10
$10,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-11
$10,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-12
$14,568,833.00(3)
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-15
$167,308,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-16
$7,518,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-21
$2,172,833.00(3)
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-22
$26,074,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-24
$109,916.00(3)
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-A-25
$2,638,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
30-IO
$19,809,177.00(3)
(5)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
30-PO
$1,626,501.00
(6)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-1
$9,170,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-2
$2,990,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-3
$1,794,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-4
$1,197,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-5
$996,000.00
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
1-B-6
$997,671.09
(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for
the Group 1
Mortgage Loan with the latest maturity date has been
designated as the
"latest possible maturity date" for each Shifting
Interest Upper-Tier Regular Interest.
(2) Interest
will accrue on these Shifting Interest Upper-Tier Regular
Interests at a rate
equal to the
Pass-Through Rate of
the Corresponding
Class of Shifting Interest Certificates.
-5-
<PAGE>
(3) Calculated in
accordance with the definition of "Notional Amount" herein.
(4) Interest
will accrue on the Shifting Interest Upper-Tier Class 1-A-1
Regular Interest
at a rate equal to the Pass-Through Rate of the
Corresponding Class
of Shifting Interest Certificates. The Shifting
Interest Upper-Tier
Class 1-A-1 Regular
Interest will not be
entitled to
any
amounts in respect of the Interest Rate Cap Agreement.
(5) The Class 30-IO Interest will be entitled to 100% of the amounts
distributed on the
Uncertificated
Shifting Interest Middle-Tier Class
MRI-IO Regular Interest.
(6) The Class 30-PO
Interest will not bear interest.
-6-
<PAGE>
Lower-Tier II REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated
pool of assets
consisting of the
Group T2 Mortgage Loans
and certain other related assets subject to this Agreement (but
exclusive of the
Supplemental Interest
Trust, the Interest Rate Swap Agreements, the Swap
Account, and the Cap
Carryover Reserve Account) as a real estate mortgage
investment conduit
("REMIC") for federal income tax purposes, and such
segregated pool of
assets will be designated as the "Lower-Tier II REMIC." The
Class II-LR Interest
will represent the
sole class of "residual interests" in
the Lower-Tier
II REMIC for purposes
of the REMIC
Provisions. The
following
table irrevocably sets forth the designation, the Uncertificated Lower-Tier II
REMIC Pass-Through
Rate, the initial
Uncertificated
Balance, and solely for
purposes of satisfying
Treasury Regulations
Section
1.860G-1(a)(4)(iii),
the
"latest possible
maturity date" for
each of the
Uncertificated
Lower-Tier II
Regular Interests.
None of the
Uncertificated
Lower-Tier II Interests will be
certificated.
<TABLE>
<CAPTION>
----------------------------- ------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated Uncertificated
Lower-Tier II Latest Possible
Maturity
Balance
REMIC Pass-Through Rate
Date(1)
----------------------------- ------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
LRII-I
$237,637,267.19
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-1-A
$2,211,768.79
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-1-B
$2,211,768.79
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-2-A
$2,458,318.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-2-B
$2,458,318.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-3-A
$2,697,373.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-3-B
$2,697,373.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-4-A
$2,927,515.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-4-B
$2,927,515.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-5-A
$3,147,351.16
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-5-B
$3,147,351.16
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-6-A
$3,355,526.96
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-6-B
$3,355,526.96
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-7-A
$3,550,740.14
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-7-B
$3,550,740.14
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-8-A
$3,731,473.11
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-8-B
$3,731,473.11
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-9-A
$3,895,845.68
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-9-B
$3,895,845.68
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-10-A
$4,040,573.99
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-10-B
$4,040,573.99
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-11-A
$4,165,084.17
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-11-B
$4,165,084.17
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-12-A
$4,018,348.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-12-B
$4,018,348.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-13-A
$3,862,669.55
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-13-B
$3,862,669.55
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
</TABLE>
-7-
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated Uncertificated
Lower-Tier II Latest Possible
Maturity
Balance
REMIC Pass-Through Rate
Date(1)
----------------------------- ------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
LRIIA-14-A
$3,713,013.91
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-14-B
$3,713,013.91
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-15-A
$3,569,148.73
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-15-B
$3,569,148.73
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-16-A
$3,430,850.20
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-16-B
$3,430,850.20
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-17-A
$5,248,310.54
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-17-B
$5,248,310.54
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-18-A
$5,181,807.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-18-B
$5,181,807.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-19-A
$4,980,987.39
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-19-B
$4,980,987.39
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-20-A
$4,787,939.51
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-20-B
$4,787,939.51
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-21-A
$4,602,363.08
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-21-B
$4,602,363.08
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-22-A
$4,423,969.26
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-22-B
$4,423,969.26
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-23-A
$4,252,480.40
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-23-B
$4,252,480.40
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-24-A
$3,472,660.68
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-24-B
$3,472,660.68
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-25-A
$1,269,129.31
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-25-B
$1,269,129.31
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-26-A
$1,219,924.74
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-26-B
$1,219,924.74
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-27-A
$1,172,625.06
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-27-B
$1,172,625.06
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-28-A
$1,044,912.64
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIA-28-B
$1,044,912.64
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-37-A
$655,238.25
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-37-B
$655,238.25
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-38-A
$1,213,198.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-38-B
$1,213,198.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-39-A
$71,722.88
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-39-B
$71,722.88
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-40-A
$68,939.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-40-B
$68,939.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-41-A
$66,263.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-41-B
$66,263.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-42-A
$63,691.99
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-42-B
$63,691.99
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
</TABLE>
-8-
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated Uncertificated
Lower-Tier II Latest Possible
Maturity
Balance
REMIC Pass-Through Rate
Date(1)
----------------------------- ------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
LRIIB-43-A
$61,219.75
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-43-B
$61,219.75
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-44-A
$58,843.31
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-44-B
$58,843.31
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-45-A
$56,558.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-45-B
$56,558.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-46-A
$54,363.16
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-46-B
$54,363.16
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-47-A
$52,252.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-47-B
$52,252.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-48-A
$50,223.56
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-48-B
$50,223.56
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-49-A
$48,273.32
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-49-B
$48,273.32
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-50-A
$46,398.67
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-50-B
$46,398.67
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-51-A
$44,596.70
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-51-B
$44,596.70
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-52-A
$42,864.59
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-52-B
$42,864.59
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-53-A
$41,199.63
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-53-B
$41,199.63
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-54-A
$39,599.24
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-54-B
$39,599.24
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-55-A
$38,060.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-55-B
$38,060.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-56-A
$36,582.21
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-56-B
$36,582.21
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-57-A
$35,160.86
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-57-B
$35,160.86
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-58-A
$38,022.90
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-58-B
$38,022.90
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-59-A
$62,491.91
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-59-B
$62,491.91
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-60-A
$60,063.27
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-60-B
$60,063.27
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-61-A
$707,170.03
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIB-61-B
$707,170.03
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-37-A
$534,549.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-37-B
$534,549.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-38-A
$659,593.01
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-38-B
$659,593.01
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
</TABLE>
-9-
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated Uncertificated
Lower-Tier II Latest Possible
Maturity
Balance
REMIC
Pass-Through Rate
Date(1)
----------------------------- ------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
LRIIC-39-A
$45,837.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-39-B
$45,837.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-40-A
$44,059.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-40-B
$44,059.10
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-41-A
$42,349.14
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-41-B
$42,349.14
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-42-A
$40,705.44
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-42-B
$40,705.44
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-43-A
$39,125.44
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-43-B
$39,125.44
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-44-A
$37,606.67
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-44-B
$37,606.67
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-45-A
$36,146.75
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-45-B
$36,146.75
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-46-A
$34,743.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-46-B
$34,743.41
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-47-A
$33,394.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-47-B
$33,394.46
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-48-A
$32,097.79
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-48-B
$32,097.79
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-49-A
$59,401.76
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-49-B
$59,401.76
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-50-A
$58,691.35
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-50-B
$58,691.35
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-51-A
$56,411.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-51-B
$56,411.97
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-52-A
$54,220.96
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-52-B
$54,220.96
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-53-A
$52,114.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-53-B
$52,114.89
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-54-A
$50,090.50
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-54-B
$50,090.50
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-55-A
$48,144.59
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-55-B
$48,144.59
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-56-A
$46,274.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-56-B
$46,274.15
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-57-A
$44,476.24
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-57-B
$44,476.24
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-58-A
$38,519.80
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-58-B
$38,519.80
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-59-A
$11,079.20
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-59-B
$11,079.20
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
</TABLE>
-10-
<PAGE>
<TABLE>
<CAPTION>
----------------------------- ------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated Uncertificated
Lower-Tier II Latest Possible
Maturity
Balance
REMIC
Pass-Through Rate
Date(1)
----------------------------- ------------------------
-------------------------------- --------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
LRIIC-60-A
$10,648.62
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-60-B
$10,648.62
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-61-A
$262,717.43
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
LRIIC-61-B
$262,717.43
Variable(2)
January 25, 2037
----------------------------- ------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for the Group T2
Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each
Uncertificated
Lower-Tier II Regular Interest.
(2) Calculated in
accordance with the definition of "Uncertificated Lower-Tier
II
REMIC Pass-Through Rate" herein.
-11-
<PAGE>
Middle-Tier II REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated pool of assets consisting of the
Uncertificated
Lower-Tier
II Regular
Interests as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as the "Middle-Tier II REMIC." The
Class II-MR Interest
will represent the
sole class of "residual interests" in
the Middle-Tier REMIC for purposes of the REMIC Provisions.
The following
table
irrevocably sets forth the designation, the Uncertificated Middle-Tier II
REMIC
Pass-Through Rate, the initial Uncertificated Balance, and solely for
purposes
of satisfying Treasury
Regulations
Section 1.860G-1(a)(4)(iii), the "latest
possible maturity date" for each of the Middle-Tier Regular Interests. None of
the Uncertificated Middle-Tier II Regular Interests will be
certificated.
<TABLE>
<CAPTION>
------------------------ -----------------------------
-------------------------------- --------------------------
Designations
Initial Uncertificated
Uncertificated Middle-Tier II Latest Possible Maturity
Balance
REMIC Pass-Through Rate
Date(1)
------------------------ -----------------------------
-------------------------------- --------------------------
<S>
<C>
<C>
<C> <C>
MRII-AA
$433,821,097.09
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A1A
$1,100,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A1B
$717,620.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A2
$484,490.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A3A
$100,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A3B
$240,800.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A4
$300,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A5
$282,490.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A6
$17,510.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A7
$115,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A8
$190,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A9
$400,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A10
$120,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-A11
$84,300.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-M1
$101,820.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-M2
$55,330.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-M3
$22,130.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-M4
$22,130.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-M5
$22,130.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-B1
$33,210.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-ZZ
$4,444,451.78
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-P
$100.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-IOA
(3)
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-IOB
(3)
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
MRII-IOC
(3)
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for
the Group T2 Mortgage
Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each
Uncertificated
Middle-Tier II Regular Interest.
(2) Calculated in
accordance with the definition of "Uncertificated Middle-Tier
II
REMIC Pass-Through Rate" herein.
-12-
<PAGE>
(3) The Class MRII-IOA
Interest, the Class MRII-IOB Interest, and the Class
MRII-IOC Interest
will have Uncertificated Balances calculated in
accordance with the definition of "Uncertificated Balance"
herein.
The
foregoing Lower-Tier
II REMIC and
Middle-Tier II REMIC
structure is
intended to cause all the cash from the Group T2 Mortgage
Loans to flow
through
the Upper-Tier
II REMIC as cash flow
on an Upper-Tier
II Regular Interest,
without creating any shortfall, actual or potential (other than
for losses), to
any Upper-Tier II Regular Interest. To the extent that the
structure is believed
to diverge from such intention, the party identifying such
ambiguity or drafting
error shall
notify the other
parties hereto, and the parties hereto shall
attempt to resolve such ambiguity or drafting error in accordance with Section
11.01 hereto.
-13-
<PAGE>
Upper-Tier II REMIC
As
provided herein, the
Securities
Administrator will make an election to
treat the segregated pool of assets consisting of the
Uncertificated Middle-Tier
II Regular
Interests as a REMIC for federal income tax purposes, and such
segregated pool of
assets will be designated as the "Upper-Tier II REMIC." The
Class II-UR Interest
will represent the
sole class of "residual interests" in
the Upper-Tier II REMIC for purposes of the REMIC Provisions.
The
following table irrevocably sets forth (or describes) the
Upper-Tier II
Regular Interest
designation,
the Initial Uncertificated Balance and the
Uncertificated
Upper-Tier II REMIC
Pass-Through
Rate for each
Upper-Tier II
Regular Interest
comprising the "regular interests" in the Upper-Tier II
REMIC
for purposes of the REMIC Provisions and, solely for purposes of satisfying
Treasury Regulations Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each Upper-Tier II Regular Interest.
<TABLE>
<CAPTION>
------------------------ -----------------------------
-------------------------------- --------------------------
Designation
Initial Uncertificated
Uncertificated Upper- Tier II Latest Possible Maturity
Balance
REMIC Pass-Through Rate
Date(1)
------------------------ -----------------------------
-------------------------------- --------------------------
<S>
<C>
<C>
<C>
<C> <C>
T-A-1A
$110,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-1B
$71,762,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-2
$48,449,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-3A
$10,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-3B
$24,088,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-4
$30,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-5
$28,249,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-6
$1,751,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-7
$11,500,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-8
$19,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-9
$40,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-10
$12,000,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-A-11
$8,430,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-M-1
$10,182,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-M-2
$5,533,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-M-3
$2,213,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-M-4
$2,213,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-M-5
$2,213,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
T-B-1
$3,321,000.00
Variable(2)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
CE
(3)
(3)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
P
$100.00
(4)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
Swap-IOA
(5)
(5)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
Swap-IOB
(5)
(5)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
Swap-IOC
(5)
(5)
January 25, 2037
------------------------ -----------------------------
-------------------------------- --------------------------
</TABLE>
(1) Solely
for purposes of Section 1.860G-1(a)(4)(iii)
of the Treasury
regulations, the
Distribution Date immediately following the maturity date
for
the Group T2 Mortgage
Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each
Upper-Tier II
Regular Interest.
-14-
<PAGE>
(2) Interest
will accrue on these
Upper-Tier
II Regular
Interests at a per
annum rate equal to
the lesser of (i) the
related Pass-Through
Rate and
(ii)
the Upper-Tier II REMIC Net WAC Cap.
On
any Distribution
Date on which the
Certificate
Interest Rate for
the
Corresponding Class of Certificates exceeds the Upper-Tier II REMIC
Net WAC
Cap,
interest accruals based on such excess shall be treated as having
been
paid
from Cap Carryover Reserve Account or the Supplemental Interest
Trust,
as
applicable. On any
Distribution Date on which the Certificate Interest
Rate
on a Class of
Certificates is based
on the applicable Pool
Cap, the
excess of the amount of interest that would have accrued on such Class of
Certificates if the
Upper-Tier II REMIC Net WAC Cap were substituted for
the
applicable Pool Cap over the interest accruals based on the
applicable
Pool
Cap shall be treated
as having been paid by the related Class of
Certificates to the
Supplemental Interest
Trust, all pursuant to and as
further provided in Sections 5.14 and 5.15 herein.
(3) Solely for REMIC
purposes, the Class CE
Upper-Tier II Regular Interest (i)
will
have an initial Uncertificated Balance equal to the Initial
Overcollateralization Amount and (ii) will bear interest at its
Pass-Through Rate on its Notional Amount.
(4) The Class P
Upper-Tier II Regular Interest will not bear interest.
(5) Solely for federal
income tax purposes,
the Class Swap IOA
Upper-Tier II
Regular Interest, the
Class Swap IOB Upper-Tier II Regular Interest, and
the
Class Swap IOC Upper-Tier II Regular Interest will not have
Uncertificated Balances or Uncertificated Upper-Tier II REMIC
Pass-Through
Rates, but will be entitled to 100% of the amounts distributed on
the Class
MRII-IOA Middle-Tier II Regular Interest, the Class MRII-IOB
Middle-Tier II
Regular Interest, and
the Class MRII-IOC
Middle-Tier II Regular Interest,
respectively.
-15-
<PAGE>
SUMMARY OF CERTIFICATES
The
following table sets forth characteristics of the Certificates,
together with the minimum denominations and integral multiples in
excess thereof
in which the Classes of Certificates shall be issuable:
<TABLE>
<CAPTION>
Initial Class Certificate
Balance, Initial Notional
Amount, Maximum Initial
Pass-Through
Integral
Class Certificate Balance
Rate or
Multiples in
or Maximum Initial Notional
Certificate
Minimum
Excess of
Classes
Amount
Interest Rate
Denomination
Minimum
<S> <C>
<C>
<C>
<C> <C> <C>
Class 1-A-R
$100
6.0000%
$100
N/A
Class 1-A-1
$125,000,000
(1)
$1,000
$1
Class 1-A-2
$174,826,000
6.0000%
$1,000
$1
Class 1-A-3
$26,074,000
6.0000%
$1,000,000
$1
Class 1-A-4
$2,638,000
6.0000%
$1,000
$1
Class 1-A-5
$6,145,000
6.0000%
$1,000
$1
Class 1-A-6
$33,726,000
5.7500%
$1,000
$1
Class 1-A-7
$1,405,250
6.0000%
$1,000
$1
Class 1-A-8
$11,512,000
6.0000%
$1,000
$1
Class 1-A-9
$125,000,000
(2)
$1,000,000
$1
Class 1-A-10
$10,000
6.0000%
$1,000
$1
Class 1-A-11
$10,000
6.0000%
$1,000
$1
Class 1-A-12
$14,568,833
6.0000%
$1,000,000
$1
Class 1-A-13
$174,826,000
5.5000%
$1,000
$1
Class 1-A-14
$174,826,000
5.7500%
$1,000
$1
Class 1-A-15
$167,308,000
5.5000%
$1,000
$1
Class 1-A-16
$7,518,000
5.5000%
$1,000
$1
Class 1-A-17
$167,308,000
5.7500%
$1,000
$1
Class 1-A-18
$7,518,000
5.7500%
$1,000
$1
Class 1-A-19
$167,308,000
6.0000%
$1,000
$1
Class 1-A-20
$7,518,000
6.0000%
$1,000
$1
Class 1-A-21
$2,172,833
6.0000%
$1,000,000
$1
Class 1-A-22
$26,074,000
5.5000%
$1,000
$1
Class 1-A-23
$26,074,000
5.7500%
$1,000
$1
Class 1-A-24
$109,916
6.0000%
$109,916
N/A
Class 1-A-25
$2,638,000
5.7500%
$1,000
$1
Class 1-A-26
$16,961,500
6.0000%
$1,000,000
$1
Class 1-A-27
$203,538,000
5.5000%
$1,000
$1
Class 1-A-28
$203,538,000
5.7500%
$1,000
$1
Class 1-A-29
$203,538,000
6.0000%
$1,000
$1
Class 30-IO
$19,809,177
6.0000%
$1,000,000
$1
Class 30-PO
$1,626,501
(3)
$25,000
$1
Class 1-B-1
$9,170,000
6.0000%
$25,000
$1
</TABLE>
-16-
<PAGE>
<TABLE>
<CAPTION>
Initial
Class Certificate
Balance, Initial Notional
Amount, Maximum Initial
Pass-Through
Integral
Class Certificate Balance
Rate or
Multiples in
or Maximum Initial Notional
Certificate
Minimum
Excess of
Classes
Amount
Interest Rate
Denomination
Minimum
<S> <C>
<C>
<C>
<C>
<C>
<C>
Class 1-B-2
$2,990,000
6.0000%
$25,000
$1
Class 1-B-3
$1,794,000
6.0000%
$25,000
$1
Class 1-B-4
$1,197,000
6.0000%
$25,000
$1
Class 1-B-5
$996,000
6.0000%
$25,000
$1
Class 1-B-6
$997,671
6.0000%
$25,000
$1
Class T-A-1A
$110,000,000
(4)
$1,000
$1
Class T-A-1B
$71,762,000
5.8456%(5)
$1,000
$1
Class T-A-2
$48,449,000
(4)
$1,000
$1
Class T-A-3A
$10,000,000
(4)
$1,000
$1
Class T-A-3B
$24,088,000
5.9426%(6)
$1,000
$1
Class T-A-4
$30,000,000
6.0896%(6)
$1,000
$1
Class T-A-5
$28,249,000
6.0896%(6)
$1,000
$1
Class T-A-6
$1,751,000
6.1889%(6)
$1,000
$1
Class T-A-7
$11,500,000
6.1890%(6)
$1,000
$1
Class T-A-8
$19,000,000
5.8467%(6)
$1,000
$1
Class T-A-9
$40,000,000
5.8368%(6)
$1,000
$1
Class T-A-10
$12,000,000
5.8368%(6)
$1,000
$1
Class T-A-11
$8,430,000
5.9990%(6)
$1,000
$1
Class T-M-1
$10,182,000
6.1404%(6)
$25,000
$1
Class T-M-2
$5,533,000
(4)
$25,000
$1
Class T-M-3
$2,213,000
(4)
$25,000
$1
Class T-M-4
$2,213,000
(4)
$25,000
$1
Class T-M-5
$2,213,000
(4)
$25,000
$1
Class T-B-1
$3,321,000
6.7000%(6)
$25,000
$1
Class CE
(7)
(7)
N/A
N/A
Class P
$100
(8)
N/A
N/A
</TABLE>
(1) During the initial
Interest Accrual Period, interest will accrue on the
Class 1-A-1
Certificates
at the rate of 5.9700%
per annum.
During each
Interest Accrual Period thereafter, interest will accrue on the
Class 1-A-1
Certificates at a per
annum rate equal to (i) 0.6500% plus (ii) One-Month
LIBOR, subject to a minimum rate of 0.6500% and a maximum rate of
6.0000%.
(2) During the initial
Interest Accrual Period, interest will accrue on the
Class 1-A-9
Certificates
at the rate of 0.0300%
per annum.
During each
Interest Accrual Period thereafter, interest will accrue on the
Class 1-A-9
Certificates at a per
annum rate equal to (i) 5.3500% minus (ii) One-Month
LIBOR, subject to a minimum rate of 0.0000% and a maximum rate of
5.3500%.
(3) The Class 30-PO
Certificates are
Principal Only
Certificates and will not
be
entitled to distributions in respect of interest.
(4) The Certificate
Interest Rate for
these Certificates
will be a per
annum
rate
equal to the lesser of (i) the sum of Certificate One-Month LIBOR
plus
the
applicable Certificate
Margin (the
"Pass-Through Rate")
and (ii) the
Pool
Cap.
(5) The Certificate
Interest Rate for
these Certificates
will be a per
annum
rate
equal to the lesser of (i) the fixed interest rate specified in this
table (the "Pass-Through Rate") and (ii) the Pool Cap.
(6) The Certificate
Interest Rate for
these Certificates
will be a per
annum
rate
equal to the lesser of (i) the fixed interest rate specified in this
table (the
"Pass-Through Rate")
and (ii) the Pool Cap.
The Pass-Through
Rate
for these Certificates
will increase by 0.50% per annum following the
Group T2 Optional Termination Date.
-17-
<PAGE>
(7) Solely for federal
income tax purposes,
the Class CE Certificates will (i)
have
an initial Class Certificate Balance equal to the Initial
Overcollateralization
Amount and (ii) be
entitled to 100% of the amount
distributed on the Class CE Upper-Tier II Regular Interest.
(8) The Class P
Certificates will not bear interest.
-18-
<PAGE>
ARTICLE I
DEFINITIONS
Section 1.01 Defined Terms.
Whenever used in this Agreement, the following words and phrases, unless
the context
otherwise requires, shall have the meanings specified in this
Article:
10-K
Filing Deadline: As defined in Section 3.22(c).
1933
Act: The Securities Act of 1933, as amended.
60+
Day Delinquent Loan: For each Distribution Date, each Group T2
Mortgage
Loan (including
each Group T2 Mortgage
Loan in foreclosure
and each Group T2
Mortgage Loan for which the Mortgagor has filed for bankruptcy
after the Closing
Date) with respect to
which any portion of a Monthly Payment is, as of the Due
Date in the prior calendar month, two months or more past due and
each Group T2
Mortgage Loan relating to an REO Property.
Accretion Termination
Date: For (i) the Class 1-A-10
Certificates,
the
earlier to occur of (1) the Distribution Date following the
Distribution Date on
which the Class
Certificate Balance of
the Class 1-A-1
Certificates has
been
reduced to zero and (2) the Senior Credit Support Depletion Date and (ii) the
Class 1-A-11
Certificates, the
earlier to occur of (1) the Distribution Date
following the Distribution Date on which the aggregate Class
Certificate Balance
of the Class 1-A-1 and Class 1-A-10 Certificates has been reduced to zero and
(2) the Senior Credit Support Depletion Date.
Additional Disclosure Notification: The form of notification to be
included
with any Additional
Form 10-D Disclosure,
Additional
Form 10-K Disclosure
or
Form 8-K Disclosure Information which is attached hereto as Exhibit
S.
Additional Form 10-D Disclosure: As defined in Section 3.22(b).
Additional Form 10-K Disclosure: As defined in Section 3.22(c).
Additional Servicer: A Subcontractor engaged by the Master Servicer or
the
Securities Administrator that is a "servicer" within the meaning of
Item 1101 of
Regulation AB and meets any of the criteria in Item 1108(a)(2)(i)
through (iii)
of Regulation AB.
Adjusted Pool Amount:
With respect to any
Distribution Date, the
Cut-off
Date Pool Principal
Balance of the Group 1
Mortgage Loans minus the sum of (i)
all amounts in respect of principal received in respect of the Group 1
Mortgage
Loans (including,
without limitation, amounts received as Monthly
Payments,
Periodic Advances, Principal Prepayments, Liquidation Proceeds and
Substitution
Adjustment Amounts)
and distributed to Holders of the Shifting Interest
Certificates on such Distribution Date and all prior Distribution
Dates and (ii)
the principal
portion
of all Realized Losses (other than Debt Service
Reductions) incurred on the Group 1 Mortgage Loans from the Cut-off
Date through
the end of the month preceding such Distribution Date.
-19-
<PAGE>
Adjusted Pool Amount
(Non-PO Portion):
With respect to any
Distribution
Date, the difference between the Adjusted Pool Amount and the Adjusted
Pool
Amount (PO Portion).
Adjusted Pool Amount (PO Portion): With respect to any Distribution
Date,
the sum of the amount,
calculated as follows,
with respect to each Outstanding
Mortgage Loan in Loan
Group 1: the product
of (i) the PO
Percentage for
such
Group 1 Mortgage Loan and (ii) the remainder of (A) the Cut-off Date
Principal
Balance of such Group 1 Mortgage Loan minus (B) the sum of (x) all
amounts in
respect of
principal received in respect of such Group 1 Mortgage Loan
(including, without
limitation, amounts
received as Monthly Payments, Periodic
Advances,
Principal
Prepayments,
Liquidation
Proceeds and
Substitution
Adjustment Amounts)
and distributed to Holders of the Shifting Interest
Certificates on such Distribution Date and all prior Distribution Dates and (y)
the principal portion of any Realized Loss (other than a Debt
Service Reduction)
incurred on such Group 1 Mortgage Loan from the Cut-off Date through
the end of
the month preceding such Distribution Date.
Advance: A Periodic Advance or a Servicing Advance.
Administrative Fee
Rate: With respect to
each Mortgage
Loan, an amount
equal to the sum of the related Servicing Fee Rate and the related
LPMI Premium
Rate, if any.
Administrative Fees:
With respect to any Loan Group,
the sum of (a) the
related Servicing
Fee and (b) with
respect to any Mortgage Loan covered by an
LPMI Policy, a fee based on the LPMI Premium Rate.
Aggregate
Denomination: As
to any Class of Exchangeable REMIC or
Exchangeable
Certificates and any date of determination, the aggregate of the
Denominations of the Outstanding Certificates of such Class on such
date.
Agreement: This
Pooling and Servicing Agreement together with all
amendments hereof and supplements hereto.
Applied Realized Loss Amount: Any of a Senior Applied Realized
Loss Amount
or a Subordinated Applied Realized Loss Amount.
Appraised Value:
With respect to any
Mortgaged Property,
either (i) the
lesser of (a) the appraised value determined in an appraisal obtained by the
originator generally
no more than four months prior to origination (or, with
respect to newly
constructed
properties, no more
than twelve months
prior to
origination) of such Mortgage Loan or, in certain cases, an
automated
valuation
model (if applicable)
or tax assessed value and (b) the sales price for
such
property, except that,
in the case of Mortgage Loans the proceeds of which were
used to refinance an existing mortgage loan, the Appraised Value
of the related
Mortgaged Property is
the appraised value
thereof determined in an appraisal
obtained at the time of refinancing or, in certain cases, an
automated valuation
model (if applicable) or tax assessed value, or (ii) the appraised value
determined in an
appraisal made at the request of a Mortgagor
subsequent
to
origination in order to eliminate the Mortgagor's obligation to keep a Primary
Mortgage Insurance Policy in force.
Assessment of Compliance: As defined in Section 3.21(a).
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Assignment of Mortgage: An individual assignment of the Mortgage,
notice of
transfer or equivalent
instrument in recordable form, sufficient under the laws
of the jurisdiction
wherein the related
Mortgaged Property is
located to give
record notice of the sale of the Mortgage.
Attestation Report: As defined in Section 3.21(b).
Authenticating Agents: As defined in Section 9.10.
Back-up Certification: As defined in Section 3.22(e).
BAFC: Banc of America Funding Corporation.
BAMCC: Banc of America Mortgage Capital Corporation.
BANA: Bank
of America, National Association, a national banking
association, or its successor in interest.
BANA
Servicing Agreement: The Servicing Agreement, dated January 30, 2007,
by and between BAFC, as depositor, and BANA, as servicer.
BBA:
As defined in Section 5.10.
Book-Entry Certificate: All Classes of Certificates other than the
Physical
Certificates.
BPP
Mortgage Loan: Any Mortgage Loan which includes a Borrowers
Protection
Plan(R) addendum to
the related Mortgage Note whereby BANA agrees to cancel (i)
certain payments of
principal and interest on such Mortgage Loan for up to
twelve months upon the disability or involuntary unemployment of the Mortgagor
or (ii) the
outstanding
principal balance of the Mortgage Loan upon the
accidental death of
the Mortgagor;
provided that such Borrowers Protection
Plan(R) has not been terminated in accordance with its terms.
BPP
Mortgage Loan
Payment: With respect to any BPP
Mortgage Loan, the
Monthly Covered Amount or Total Covered Amount, if any, payable by
BANA pursuant
to Section 7(b) of the Mortgage Loan Purchase Agreement.
Business Day:
Any day other than (i)
a Saturday or a Sunday or (ii) a day
on which banking
institutions in the State of North Carolina, the State of New
York, the states in which the servicing offices of any Servicer are
located, the
state or states in which the master servicing offices of the Master
Servicer are
located or the
state or states in
which the Corporate
Trust Offices of the
Trustee and the Securities Administrator are located are
required or authorized
by law or executive order to be closed.
Buy-Down Account:
The separate
Eligible Account or Accounts created
and
maintained by a Servicer as set forth in Section 3.08.
Buy-Down Agreement:
An agreement
governing the
application
of Buy-Down
Funds with respect to a Buy-Down Mortgage Loan.
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Buy-Down Funds: Money advanced by a builder, seller or other
interested
party to reduce a Mortgagor's monthly payment during the initial
years of a
Buy-Down Mortgage Loan.
Buy-Down Mortgage Loan: Any Mortgage Loan in respect of which,
pursuant to
a Buy-Down
Agreement,
the monthly interest payments made by the related
Mortgagor will be less
than the scheduled
monthly interest payments on such
Mortgage Loan, with the resulting difference in interest payments
being provided
from related Buy-Down Funds.
Calculated Principal Distribution: As defined in Section
5.04(b)(iii).
Calculation Balance:
With respect to each class of Exchangeable REMIC
Certificates and
as of any date of determination, an amount equal the
then-current Class
Certificate Balance of
such Exchangeable REMIC Certificates
if such Class
Certificate Balance
had been calculated under the condition that
no Exchangeable
REMIC Certificates of such Class are ever exchanged for
Exchangeable Certificates.
Cap
Carryover Amount: If on any Distribution Date, the Overcollateralized
Accrued Certificate Interest for any Offered Overcollateralized Certificate or
the Class T-B-1
Certificates
is based on the Pool
Cap, the excess of (i)
the
amount of interest
such Class would have been entitled to receive on such
Distribution Date
based on its Pass-Through Rate without regard to the Pool Cap
over (ii) the amount of interest such Class received on such
Distribution
Date
based on the Pool Cap,
together with the unpaid portion of any such excess from
prior Distribution
Dates (and interest
accrued thereon at the
then-applicable
Pass-Through Rate on
such Class without
regard to the Pool
Cap). For federal
income tax purposes, each application of the Pool Cap shall be an
application of
the Upper-Tier
II REMIC Net WAC Cap for purposes of calculating the Cap
Carryover Amount.
Cap
Carryover Reserve Account: The Eligible Account created and
maintained
by the Securities
Administrator pursuant
to Section 3.09(i) in the name of the
Securities
Administrator, on
behalf of the Trustee,
for the benefit of the
Holders of the
Offered Overcollateralized Certificates and the Class T-B-1
Certificates and designated "Wells Fargo Bank, N.A., as Securities
Administrator
for U.S. Bank National Association, as Trustee, in trust for
registered holders
of Banc of America
Funding Corporation Mortgage Pass-Through Certificates,
Series 2007-1."
Funds in the Cap
Carryover Reserve Account shall be held in
trust for the Holders of the Offered Overcollateralized Certificates and the
Class T-B-1
Certificates for the uses and purposes set forth in this
Agreement.
Funds in the Cap Carryover Reserve Account shall be held uninvested. The Cap
Carryover Reserve
Account shall not be
an asset of any REMIC formed under this
Agreement.
Cap
Provider: Bank of America, National Association.
Certificate: Any of
the Banc of America Funding Corporation Mortgage
Pass-Through
Certificates, Series
2007-1 that are issued pursuant to this
Agreement.
Certificate Account:
The Eligible
Account created and maintained by the
Securities
Administrator pursuant
to Section 3.09(b) in the name of the
Securities
Administrator, on
behalf of the Trustee,
for the benefit of the
Certificateholders and
designated
"Wells Fargo Bank, N.A., as Securities
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<PAGE>
Administrator for U.S.
Bank National Association, as Trustee, in trust for
registered holders of Banc of America Funding Corporation Mortgage
Pass-Through
Certificates, Series 2007-1." The Certificate Account shall be
deemed to consist
of nine sub-accounts;
one for each of the Loan Groups (the "Loan Group 1
Sub-Account" and
"Loan Group T2 Sub-Account"), and one for each of the
Exchangeable
Certificates Grantor
Trust Account, the Lower-Tier II Certificate
Sub-Account, the
Middle-Tier
II Certificate Sub-Account, the Upper-Tier II
Certificate
Sub-Account, the
Shifting Interest Lower-Tier Certificate
Sub-Account, the
Shifting Interest Middle-Tier Certificate Sub-Account and
the
Shifting Interest Upper-Tier Certificate Sub-Account. Funds in the Certificate
Account shall be held in trust for the Holders of the Certificates for the uses
and purposes set forth in this Agreement.
Certificate Balance:
With respect to any
Certificate
at any date (other
than a Class CE
Certificate), the
maximum dollar amount
of principal to which
the Holder thereof is
then entitled
hereunder, such amount
being equal to the
product of the Percentage Interest of such Certificate and the
Class Certificate
Balance of the Class of Certificates of which such Certificate is a
part.
Certificate Custodian:
Initially,
Wells Fargo Bank,
N.A.; thereafter any
other Certificate
Custodian acceptable to the Depository and selected by the
Securities Administrator.
Certificate Interest Rate: With respect to each Class of
Certificates, the
per annum rate set forth or calculated in the table under the caption
"Summary
of Certificates" in the Preliminary Statement.
Certificate Margin:
With respect to each class of Overcollateralized
Certificates that are LIBOR Certificates, the following
percentages:
On or Prior to Group
After the
T2 Optional Termination Group T2
Optional
Date
Termination Date
-----------------------
-----------------
Class T-A-1A Certificates
0.060%
0.060%
Class T-A-2 Certificates
0.130%
0.130%
Class T-A-3A Certificates
0.160%
0.320%
Class M-2 Certificates
0.670%
1.005%
Class M-3 Certificates
0.850%
1.275%
Class M-4 Certificates
1.050%
1.575%
Class M-5 Certificates
1.200%
1.800%
Certificate Owner: With respect to a Book-Entry Certificate, the
Person who
is the beneficial
owner of a Book-Entry Certificate. With respect to any
Definitive Certificate, the Certificateholder of such
Certificate.
Certificate Register: The register maintained pursuant to Section
6.02.
Certificate Registrar: The registrar appointed pursuant to Section
6.02.
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<PAGE>
Certificateholder: The
Person in whose name a Certificate is registered in
the Certificate
Register, except that, solely for the purpose of giving
any
consent pursuant to
this Agreement, any
Certificate registered
in the name of
the Depositor, the
Master Servicer or any affiliate thereof shall be deemed not
to be outstanding
and the Percentage Interest and Voting Rights evidenced
thereby shall not be
taken into account in
determining whether
the requisite
amount of Percentage
Interests or Voting Rights, as the case may be, necessary
to effect any such consent has been obtained, unless such entity is the
registered owner of the entire Class of Certificates, provided that neither the
Securities
Administrator nor the
Trustee shall be responsible for knowing that
any Certificate
is registered in the name of an
affiliate of the Depositor or
the Master Servicer unless one of its Responsible Officers has actual knowledge
thereof.
Certification Parties: As defined in Section 3.22(e).
Certifying Person: As defined in Section 3.22(e).
Chase: JPMorgan
Chase Bank,
National Association, in its capacity as a
Servicer under the Chase Servicing Agreement.
Chase Servicing
Agreement:
Collectively, (i) that
certain Mortgage
Loan
Purchase, Warranties
and Servicing Agreement, dated as of May 1, 2005, as
amended by Amendment No. 1, dated as of January 1, 2006, and as
further amended
by the Regulation AB Compliance Addendum, dated as of January 1, 2006, each
by
and among BANA,
Chase and Chase Home
Finance LLC, and (ii) the Assignment,
Assumption and Recognition Agreement, dated January 30, 2007, by
and among BANA,
the Depositor, the
Trustee, Chase and
Chase Home Finance LLC. For the purposes
of Section 2.02, the Chase Servicing Agreement shall refer to the
Mortgage Loan
Purchase, Warranties and Servicing Agreement, dated as of August 1,
2004, by and
between Chase Home
Finance LLC (as
successor in interest to Chase Manhattan
Mortgage Corporation) and BANA.
CHL:
Countrywide Home Loans, Inc.
Class: As to the
Certificates, the
Class 1-A-R, Class
1-A-1, Class 1-A-2,
Class 1-A-3, Class
1-A-4, Class 1-A-5,
Class 1-A-6, Class
1-A-7, Class 1-A-8,
Class 1-A-9, Class
1-A-10, Class 1-A-11,
Class 1-A-12, Class 1-A-13, Class
1-A-14, Class 1-A-15,
Class 1-A-16,
Class 1-A-17, Class
1-A-18, Class 1-A-19,
Class 1-A-20, Class
1-A-21, Class 1-A-22,
Class 1-A-23,
Class 1-A-24,
Class
1-A-25, Class 1-A-26,
Class 1-A-27,
Class 1-A-28,
Class 1-A-29, Class
30-IO,
Class 30-PO, Class
T-A-1A, Class
T-A-1B, Class T-A-2, Class T-A-3A, Class
T-A-3B, Class T-A-4,
Class T-A-5, Class
T-A-6, Class T-A-7, Class T-A-8, Class
T-A-9, Class T-A-10,
Class T-A-11, Class 1-B-1, Class 1-B-2, Class 1-B-3, Class
1-B-4, Class 1-B-5,
Class 1-B-6,
Class T-M-1, Class
T-M-2, Class T-M-3, Class
T-M-4, Class T-M-5, Class T-B-1, Class CE and Class P Certificates,
as the case
may be.
Class 1-A-1 Loss Amount: With respect to any Distribution Date after the
Senior Credit Support
Depletion Date,
the amount,
if any, by which the
Class
Certificate Balance of the Class 1-A-1 Certificates would be
reduced as a result
of the allocation of any reduction pursuant to Section 5.04(b)(i)
to such Class,
without regard to the operation of Section 5.04(b)(iv).
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<PAGE>
Class 1-A-1 Reserve Fund: The Eligible Account created and maintained by
the Securities
Administrator
pursuant to Section 3.09(j) in the name of the
Securities
Administrator, on
behalf of the Trustee,
for the benefit of the
Holders of the Class 1-A-1 Certificates and designated "Class 1-A-1 Reserve
Fund, Wells Fargo Bank, N.A., as Securities Administrator for U.S.
Bank National
Association, as
Trustee, in trust for registered holders of Banc of America
Funding Corporation Mortgage Pass-Through Certificates,
Series 2007-1."
Amounts
on deposit in the Class 1-A-1 Reserve Fund shall not be invested. The Class
1-A-1 Reserve
Fund shall not be an asset of any REMIC formed under this
Agreement.
Class 1-A-5 Loss Allocation Amount: With respect to any Distribution
Date
after the Senior
Credit Support
Depletion Date, the lesser of (a) the Class
Certificate Balance
of the Class 1-A-5 Certificates with respect to such
Distribution Date
prior to any reduction
for the Class 1-A-5
Loss Allocation
Amount and (b) the Class 1-A-1 Loss Amount with respect to such Distribution
Date.
Class 1-A-7 Notional
Amount: With respect
to each Distribution
Date, an
amount equal to
4.1666666667%
of the Class
Certificate
Balance of the
Class
1-A-6 Certificates.
Class 1-A-9 Notional
Amount: With respect
to each Distribution
Date, an
amount equal to the Class Certificate Balance of the Class 1-A-1
Certificates.
Class 1-A-10 Accrual Distribution Amount: For any Distribution Date
and the
Class 1-A-10
Certificates prior to
the related Accretion
Termination Date, an
amount with respect to
such Class equal to the sum of (i) the amount allocated
but not currently
distributable as
interest to such Class
pursuant to Section
5.02(a)(i) that is
attributable
to clause (i) of the
definition of
"Interest
Distribution
Amount," and
(ii) the amount allocated but not currently
distributable as
interest to such Class pursuant to Section 5.02(a)(i) that is
attributable to clause (ii) of the definition of "Interest
Distribution Amount."
Class 1-A-11 Accrual Distribution Amount: For any Distribution Date
and the
Class 1-A-11
Certificates prior to
the related Accretion
Termination Date, an
amount with respect to
such Class equal to the sum of (i) the amount allocated
but not currently
distributable as
interest to such Class
pursuant to Section
5.02(a)(i) that is
attributable
to clause (i) of the
definition of
"Interest
Distribution
Amount," and
(ii) the amount allocated but not currently
distributable as
interest to such Class pursuant to Section 5.02(a)(i) that is
attributable to clause (ii) of the definition of "Interest
Distribution Amount."
Class 1-A-12 Notional Amount: With respect to each Distribution Date, an
amount equal to
8.3333333314% of the sum of the Class Certificate Balances of
the Class 1-A-15 and Class 1-A-16 Certificates.
Class 1-A-15 Loss Amount: With respect to any Distribution
Date after the
Senior Credit Support
Depletion Date,
the amount,
if any, by which the
Class
Certificate Balance
of the Class
1-A-15 Certificates would be reduced as a
result of the allocation of any reduction pursuant to Section
5.04(b)(i) to such
Class, without regard to the operation of Section 5.04(b)(iv).
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<PAGE>
Class 1-A-16 Loss Allocation Amount: With respect to any Distribution
Date
after the Senior
Credit Support
Depletion Date, the lesser of (a) the Class
Certificate Balance
of the Class
1-A-16 Certificates with respect to such
Distribution Date
prior to any reduction
for the Class 1-A-16 Loss Allocation
Amount and (b) the Class 1-A-15 Loss Amount with
respect to such
Distribution
Date.
Class 1-A-17 Loss Amount: With respect to any Distribution
Date after the
Senior Credit Support
Depletion Date,
the amount,
if any, by which the
Class
Certificate Balance
of the Class
1-A-17 Certificates would be reduced as a
result of the allocation of any reduction pursuant to Section
5.04(b)(i) to such
Class, without regard to the operation of Section 5.04(b)(iv).
Class 1-A-18 Loss Allocation Amount: With respect to any Distribution
Date
after the Senior
Credit Support
Depletion Date, the lesser of (a) the Class
Certificate Balance
of the Class
1-A-18 Certificates with respect to such
Distribution Date
prior to any reduction
for the Class 1-A-18 Loss Allocation
Amount and (b) the Class 1-A-17 Loss Amount with
respect to such
Distribution
Date.
Class 1-A-19 Loss Amount: With respect to any Distribution
Date after the
Senior Credit Support
Depletion Date,
the amount,
if any, by which the
Class
Certificate Balance
of the Class
1-A-19 Certificates would be reduced as a
result of the allocation of any reduction pursuant to Section
5.04(b)(i) to such
Class, without regard to the operation of Section 5.04(b)(iv).
Class 1-A-20 Loss Allocation Amount: With respect to any Distribution
Date
after the Senior
Credit Support
Depletion Date, the lesser of (a) the Class
Certificate Balance
of the Class
1-A-20 Certificates with respect to such
Distribution Date
prior to any reduction
for the Class 1-A-20 Loss Allocation
Amount and (b) the Class 1-A-19 Loss Amount with
respect to such
Distribution
Date.
Class 1-A-21 Notional Amount: With respect to each Distribution Date, an
amount equal to
8.3333333205%
of the Class
Certificate
Balance of the
Class
1-A-22 Certificates.
Class 1-A-24 Notional Amount: With respect to each Distribution Date, an
amount equal to
4.1666664139%
of the Class
Certificate
Balance of the
Class
1-A-25 Certificates.
Class 1-A-26 Notional Amount: With respect to each Distribution Date, an
amount equal to
8.3333333333%
of the Class
Certificate
Balance of the
Class
1-A-27 Certificates.
Class 1-A-R Certificate: The Class 1-A-R Certificate, which represents the
ownership of the Class II-UR Interest, the Class II-MR Interest,
the Class II-LR
Interest, the Class SI-UR Interest, the Class SI-MR Interest and
the Class SI-LR
Interest.
Class 1-B Certificates: Class 1-B-1, Class 1-B-2, Class 1-B-3,
Class 1-B-4,
Class 1-B-5 and Class 1-B-6 Certificates.
Class 30-IO Notional
Amount: With respect
to each Distribution
Date, an
amount equal
to the product of (i) the aggregate of the Stated Principal
Balances of the Premium Mortgage Loans as of the Due Date in the
month preceding
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<PAGE>
the month of such
Distribution Date and
(ii) a fraction, (a)
the numerator of
which is equal to the weighted average of the Net Mortgage Interest
Rates of the
Premium Mortgage Loans
(based on the Stated
Principal Balances of
the Premium
Mortgage Loans
as of the Due Date in
the month preceding the month of such
Distribution Date)
minus 6.00% and (b) the denominator of which is equal to
6.00%.
Class CE Certificates:
The Class CE Certificates, which represent (i) the
corresponding
Upper-Tier II
Regular Interest for purposes of the REMIC
Provisions, (ii) the
obligation to pay Cap Carryover Amounts, Swap Termination
Payments and the Class IO Distribution Amount and (iii) the right
to receive the
Class IO Distribution
Amount and amounts from the Cap Carryover Reserve Account
and the Swap Account.
Class CE Distributable
Amount: With respect
to any Distribution Date, the
sum of (i) the interest accrued on the Class CE Upper-Tier II
Regular Interests
at their Pass-Through
Rate calculated on
their Notional Amount less the amount
(without duplication)
of Cap Carryover Amounts paid pursuant to Section
5.03(c)(i) and any Defaulted Swap Termination Payments paid pursuant to
Section
5.03(d), (ii) any remaining Overcollateralization Release
Amounts and (iii) the
amounts
remaining in
(A) the Cap Carryover Reserve Account after the
distributions in
Section 3.09(i) and
(B) the Supplemental
Interest Trust in
respect of the Swap Account after distributions in Section 5.03(d),
priorities
first through ninth.
Class CE Grantor Trust: The grantor trust created pursuant
to Section 5.12
consisting of
any interests in the Cap Carryover Reserve Account and
Supplemental Interest
Trust beneficially
owned by the holders
of the Class CE
Certificates and
rights and obligations
with respect thereto. The Class CE
Grantor Trust shall not be an asset of any REMIC formed
hereunder.
Class Certificate
Balance: With respect
to any Class of Shifting Interest
Certificates (other
than the Interest Only Certificates) and any date of
determination, and
subject to Section
5.04(b)(vi), an amount
equal to (a) the
Initial Class
Certificate
Balance or, in the
case of a Class of
Exchangeable
REMIC or Exchangeable
Certificates,
the Aggregate
Denomination of such
Class
(plus, in the case of the Class 1-A-10 and Class 1-A-11
Certificates, any
Class
1-A-10 Accrual
Distribution
Amounts and Class 1-A-11 Accrual Distribution
Amounts, respectively,
previously
added thereto) minus the sum of (i) all
distributions of principal made with respect thereto (including in
the case of a
Class of Class 1-B Certificates, any principal otherwise payable to such
Class
of Subordinate
Certificates
used to pay any PO
Deferred Amounts), (ii) all
reductions in Class Certificate Balance previously allocated
thereto pursuant to
Section 5.04(b)(i) and (iii) in the case of the Class 1-A-5, Class
1-A-16, Class
1-A-18 and Class 1-A-20 Certificates, any reduction allocated thereto
pursuant
to Section
5.04(b)(iv)
plus (b) the sum of (i) all increases in Class
Certificate Balance previously allocated thereto pursuant to
Section 5.04(b)(i)
and (ii) in the case of the Class 1-A-5, Class 1-A-16, Class 1-A-18 and Class
1-A-20 Certificates,
any increases allocated thereto pursuant to Section
5.04(b)(iv). The Class
1-A-7, Class 1-A-9,
Class 1-A-12, Class
1-A-21, Class
1-A-24, Class 1-A-26 and Class 30-IO Certificates are Interest Only
Certificates
and have no Class Certificate Balance.
With
respect to any Class of Overcollateralized Certificates (other than
the Class CE
Certificates) and any
date of determination,
and subject to the
last paragraph of Section 5.04(c), the Initial Class Certificate
Balance of such
Class (a) reduced by the sum of (i) all amounts actually
distributed in
respect
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<PAGE>
of principal
of such Class on all
prior Distribution
Dates and (ii)
Applied
Realized Loss Amounts allocated thereto for previous Distribution Dates and (b)
increased by any
Recoveries allocated
to such Class for previous Distribution
Dates.
With
respect to the Class CE Certificates and any date of determination,
and solely for federal
income tax purposes,
the excess, if any, of the then
aggregate Uncertificated Balances of the Uncertificated Middle-Tier
II Interests
(other than the Class MRII-IOA Interest, the Class MRII-IOB Interest and the
Class MRII-IOC
Interest) over the aggregate Class Certificate Balance of the
Offered
Overcollateralized
Certificates and
the Class T-B-1 and Class P
Certificates then outstanding.
Class Distribution Amount: As to any Distribution Date and
each Class of
Exchangeable
Certificates, an
amount equal to the sum of (i) the Interest
Distribution Amount
for such Class and
(ii) the Class
Principal
Distribution
Amount for such Class.
Class Interest
Shortfall:
For any Distribution Date and each Class of
interest-bearing
Shifting Interest
Certificates, the
amount by which Shifting
Interest Accrued
Certificate
Interest for such
Class (as reduced
pursuant to
Section 5.02(c))
exceeds the amount of
interest actually
distributed on
such
Class (or, in the case of the Class 1-A-10 and Class 1-A-11
Certificates
prior
to the applicable
Accretion Termination
Date, the amount included in the Class
1-A-10 Accrual
Distribution Amount or Class 1-A-11 Accrual Distribution
Amount,
as applicable,
pursuant to clause (i) of the definition thereof, but not
distributed pursuant
to the proviso in Section 5.02(a)(i)) on such Distribution
Date pursuant to clause (i) of the definition of "Interest
Distribution Amount."
Class IO Distribution Amount: As defined in Section 5.14(e) hereof.
For the
purpose of clarity,
the Class IO Distribution Amount for any Distribution
Date
shall equal the
amount payable to the Supplemental Interest Trust on such
Distribution Date
in excess of the amount payable on the Class Swap-IOA
Interest, the Class
Swap-IOB Interest and
the Class Swap-IOC
Interest on such
Distribution Date, all as further provided in Section 5.14(e)
hereof.
Class P Certificates: The Class P Certificates, which represent the
corresponding
Upper-Tier II
Regular Interest for purposes of the REMIC
Provisions and
are entitled to distributions in respect of their Class
Certificate Balance and certain Prepayment Charges as set forth
herein.
Class Principal
Distribution Amount:
As to any Distribution Date and each
Class of Exchangeable
Certificates, an
amount as to principal equal to (i) the
distributions of
principal made in
respect of the Related
Class or Classes of
Exchangeable REMIC Certificates pursuant to Section 5.02(b)
multiplied by (ii) a
fraction, the
numerator of which is the Aggregate Denomination of such Class
of
Exchangeable
Certificates and the denominator of which is the aggregate
Maximum
Initial Class Certificate Balance of all Classes of Exchangeable
Certificates in
the Exchangeable Combination.
Class Swap-IOA Interest: An uncertificated interest representing the
right
to distributions
as set forth herein
and evidencing
an Upper-Tier II
Regular
Interest for purposes of the REMIC Provisions.
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Class Swap-IOB Interest: An uncertificated interest representing the
right
to distributions
as set forth herein
and evidencing
an Upper-Tier II
Regular
Interest for purposes of the REMIC Provisions.
Class Swap-IOC Interest: An uncertificated interest representing the
right
to distributions
as set forth herein
and evidencing
an Upper-Tier II
Regular
Interest for purposes of the REMIC Provisions.
Class T-B-1 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date), (ii) the Class Certificate Balance of the Class T-M-1
Certificates (after
taking into account the payment of the Class T-M-1 Principal
Distribution Amount
on such Distribution
Date), (iii) the Class
Certificate
Balance of the
Class
T-M-2 Certificates
(after taking into account the payment of the Class
T-M-2
Principal Distribution
Amount on such Distribution Date), (iv) the Class
Certificate Balance of
the Class T-M-3 Certificates (after taking into account
the payment
of the Class T-M-3 Principal Distribution Amount on such
Distribution Date),
(v) the Class Certificate Balance of the Class T-M-4
Certificates (after taking into account the payment of the Class
T-M-4 Principal
Distribution Amount on
such Distribution
Date), (vi) the Class Certificate
Balance of the Class T-M-5 Certificates (after taking into account the
payment
of the Class T-M-5 Principal Distribution Amount on such
Distribution Date) and
(vii) the Class Certificate Balance of the Class T-B-1 Certificates
immediately
prior to such
Distribution Date over
(y) the lesser of (a) the product of (i)
99.20% and (ii) the aggregate Stated Principal Balance of the Group T2
Mortgage
Loans as of the last day of the related Collection Period and (b) the
amount by
which the aggregate Stated Principal Balance of the Group T2 Mortgage
Loans as
of the last day of the
related Collection
Period exceeds the product of (i)
0.35% and (ii) the aggregate Stated Principal Balance of the Group T2
Mortgage
Loans as of the Cut-off Date.
Class T-M-1 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date) and (ii) the Class Certificate Balance of the Class T-M-1 Certificates
immediately prior to
such Distribution
Date over (y) the lesser of (a) the
product of (i) 92.20% and (ii) the aggregate Stated Principal Balance of the
Group T2 Mortgage Loans as of the last day of the related
Collection Period
and
(b) the amount by which the aggregate Stated Principal Balance of the Group T2
Mortgage Loans as of the last day of the related Collection Period exceeds the
product of (i) 0.35%
and (ii) the aggregate
Stated Principal Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.
Class T-M-2 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date), (ii) the Class Certificate Balance of the Class T-M-1
Certificates (after
taking into account the payment of the Class T-M-1 Principal
Distribution Amount
on such Distribution Date) and (iii) the Class Certificate
Balance of the
Class
T-M-2 Certificates
immediately
prior to such
Distribution
Date over (y) the
-29-
<PAGE>
lesser of (a) the product of (i) 94.70% and (ii) the aggregate
Stated Principal
Balance of the
Group T2 Mortgage Loans as of the last day of the related
Collection Period and
(b) the amount by which the aggregate Stated Principal
Balance of the
Group T2 Mortgage Loans as of the last day of the related
Collection Period exceeds the product of (i) 0.35% and (ii) the
aggregate Stated
Principal Balance of the Group T2 Mortgage Loans as of the Cut-off
Date.
Class T-M-3 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date), (ii) the Class Certificate Balance of the Class T-M-1
Certificates (after
taking into account the payment of the Class T-M-1 Principal
Distribution Amount
on such Distribution
Date), (iii) the Class
Certificate
Balance of the
Class
T-M-2 Certificates
(after taking into account the payment of the Class
T-M-2
Principal Distribution
Amount on such Distribution Date) and (iv) the Class
Certificate Balance of
the Class T-M-3
Certificates
immediately prior to such
Distribution Date over
(y) the lesser of (a) the product of (i) 95.70% and (ii)
the aggregate Stated Principal Balance of the Group T2 Mortgage
Loans as of the
last day of the
related Collection
Period and (b) the amount by which the
aggregate Stated Principal Balance of the Group T2 Mortgage Loans
as of the last
day of the related
Collection Period
exceeds the product of (i) 0.35% and (ii)
the aggregate Stated Principal Balance of the Group T2 Mortgage
Loans as of the
Cut-off Date.
Class T-M-4 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date), (ii) the Class Certificate Balance of the Class T-M-1
Certificates (after
taking into account the payment of the Class T-M-1 Principal
Distribution Amount
on such Distribution
Date), (iii) the Class
Certificate
Balance of the
Class
T-M-2 Certificates
(after taking into account the payment of the Class
T-M-2
Principal Distribution
Amount on such Distribution Date), (iv) the Class
Certificate Balance of
the Class T-M-3 Certificates (after taking into account
the payment
of the Class T-M-3 Principal Distribution Amount on such
Distribution Date) and
(v) the Class
Certificate Balance
of the Class
T-M-4
Certificates
immediately prior to such Distribution Date over (y) the lesser
of
(a) the product of (i) 96.70% and (ii) the aggregate Stated
Principal Balance of
the Group T2 Mortgage Loans as of the last day of the related
Collection Period
and (b) the amount by which the aggregate Stated Principal
Balance of the
Group
T2 Mortgage Loans as
of the last day of the related Collection Period exceeds
the product of (i) 0.35% and (ii) the aggregate Stated Principal
Balance of the
Group T2 Mortgage Loans as of the Cut-off Date.
Class T-M-5 Principal Distribution Amount: As of any Distribution
Date, the
excess of (x) the sum of (i) the aggregate Class Certificate Balance of the
Senior Overcollateralized Certificates (after taking into account
the payment of
the Overcollateralized Senior Principal Distribution Amount on such
Distribution
Date), (ii) the Class Certificate Balance of the Class T-M-1
Certificates (after
taking into account the payment of the Class T-M-1 Principal
Distribution Amount
on such Distribution
Date), (iii) the Class
Certificate
Balance of the
Class
T-M-2 Certificates
(after taking into account the payment of the Class
T-M-2
Principal Distribution
Amount on such Distribution Date), (iv) the Class
Certificate Balance of
the Class T-M-3 Certificates (after taking into account
the payment
of the Class T-M-3 Principal Distribution Amount on such
-30-
<PAGE>
Distribution Date),
(v) the Class Certificate Balance of the Class T-M-4
Certificates (after taking into account the payment of the Class
T-M-4 Principal
Distribution Amount on
such Distribution
Date) and (vi) the
Class Certificate
Balance of the Class T-M-5 Certificates immediately prior to such
Distribution
Date over (y) the lesser of (a) the product of (i) 97.70% and (ii)
the aggregate
Stated Principal
Balance of the Group
T2 Mortgage Loans as
of the last day of
the related Collection
Period and (b) the
amount by which the aggregate Stated
Principal Balance
of the Group T2 Mortgage Loans as of the last day of
the
related Collection
Period exceeds the product of (i) 0.35% and (ii) the
aggregate Stated
Principal Balance of the Group T2
Mortgage Loans as of the
Cut-off Date.
Class Unpaid Interest Shortfall: As to any Distribution Date and
each Class
of interest-bearing
Shifting Interest Certificates, the amount by which the
aggregate Class Interest Shortfalls for such Class on prior
Distribution Dates
exceeds the amount of interest actually distributed on such Class (or, in the
case of the Class 1-A-10 and Class 1-A-11 Certificates prior to the applicable
Accretion Termination
Date, the amount included in the Class 1-A-10
Accrual
Distribution Amount or Class 1-A-11 Accrual Distribution Amount, as
applicable,
pursuant to clause (ii) of the definition thereof, but not distributed pursuant
to the proviso in Section 5.02(a)(i)) on such prior
Distribution Dates pursuant
to clause (ii) of the definition of "Interest Distribution
Amount."
Closing Date: January 30, 2007.
Code: The Internal Revenue Code of 1986, as amended.
Collection Period:
With respect to any
Distribution Date, the period from
the second
day of the
calendar month preceding the month in which such
Distribution Date
occurs through the first day of the month in which such
Distribution Date occurs.
Combination: Any
Exchangeable
Combination
or Exchangeable REMIC
Combination.
Commission: The U.S. Securities and Exchange Commission.
Compensating Interest:
With respect to any
Distribution Date and Servicer
other than National
City, an amount equal to the lesser of
(a) the aggregate
Servicing Fee payable to such Servicer for the Mortgage
Loans serviced by such
Servicer as of
the Due Date of the month preceding the month of such
Distribution Date and (b) the aggregate of the Prepayment Interest
Shortfalls on
the Mortgage
Loans serviced by such Servicer resulting from Principal
Prepayments on such
Mortgage Loans during the related Prepayment Period;
provided, however,
Compensating Interest
payable for any month by BANA will be
limited to one-twelfth of 0.2500% of the aggregate Stated
Principal Balance of
the Mortgage Loans serviced by BANA, calculated as of the Due Date of
the month
preceding the month of such Distribution Date. With respect to any
Distribution
Date and National
City, an amount equal to the
aggregate of the Prepayment
Interest Shortfalls on
the Mortgage Loans
serviced by National
City resulting
from Principal
Prepayments on such Mortgage Loans during the related
Prepayment
Period.
Compliance Statement: As defined in Section 3.20.
-31-
<PAGE>
Cooperative: A
private, cooperative housing corporation which owns or
leases land and all or part of a building or buildings, including apartments,
spaces used for commercial purposes and common areas therein
and whose board of
directors authorizes, among other things, the sale of Cooperative
Stock.
Cooperative Apartment:
A dwelling unit in a multi-dwelling building owned
or leased by a Cooperative, which unit the Mortgagor has an
exclusive right to
occupy pursuant to the terms of a proprietary lease or occupancy
agreement.
Cooperative Lease:
With respect to a
Cooperative Loan,
the proprietary
lease or occupancy agreement with respect to the Cooperative
Apartment occupied
by the Mortgagor and relating to the related Cooperative Stock, which lease or
agreement confers an
exclusive right to the holder of such Cooperative Stock to
occupy such apartment.
Cooperative Loans:
Any of the Mortgage Loans made in respect of a
Cooperative Apartment,
evidenced by a Mortgage Note and secured by (i) a
Security Agreement,
(ii) the related
Cooperative Stock
Certificate, (iii)
an
assignment or mortgage of the Cooperative Lease, (iv) financing statements and
(v) a stock power (or
other similar
instrument),
and ancillary thereto, a
Recognition Agreement,
each of which was
transferred and assigned to the Trust
pursuant to Section 2.01.
Cooperative
Stock: With
respect to a Cooperative Loan, the single
outstanding class of stock, partnership interest or other ownership
instrument
in the related Cooperative.
Cooperative Stock
Certificate:
With respect to a
Cooperative Loan,
the
stock certificate or other instrument evidencing the related
Cooperative Stock.
Corporate Trust
Office: With respect to the Trustee, the office of the
Trustee, which office at the date of the execution of this
instrument is located
at 209 South LaSalle Street, Suite 300, Chicago, Illinois 60604, Attention:
Corporate Trust Services, BAFC, Series 2007-1, or at such other
address as the
Trustee may designate from time to time by notice to the
Certificateholders, the
Depositor, the Securities Administrator and the Master Servicer.
With respect to
the Securities
Administrator,
the principal corporate trust office of the
Securities
Administrator at which
at any particular time
its corporate
trust
business with respect to this Agreement is conducted,
which office at the
date
of the execution
of this instrument is located at 9062 Old
Annapolis Road,
Columbia, Maryland
21045-1951,
Attention:
Corporate Trust Services - BAFC
2007-1, and for
certificate
transfer purposes is located at Sixth
Street and
Marquette Avenue,
Minneapolis,
Minnesota 55479, Attention: Corporate Trust
Services - BAFC 2007-1, or at such other address as the Securities
Administrator
may designate
from time to time by notice to the Certificateholders, the
Depositor, the Trustee and the Master Servicer.
Corresponding Class or Classes: The Class of interests in one REMIC
created
under this Agreement that corresponds to the Class of interests in
another REMIC
or to a Class of Certificates in the manner set out below:
-32-
<PAGE>
<TABLE>
<CAPTION>
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Uncertificated Shifting Interest
Corresponding Shifting Interest
Corresponding Class of Certificates
Middle-Tier Regular
Interest
Upper-Tier Regular Interest
----------------------------------
----------------------------------------
------------------------------------------
<S> <C>
<C>
<C>
<C>
<C>
<C>
MRI-1-A-1
Class 1-A-1 and Class 1-A-9 Interests Class 1-A-1 and Class 1-A-9
Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-R
N/A
Class 1-A-R Certificate
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-2
Class 1-A-5, Class 1-A-8, Class
Class 1-A-5, Class 1-A-8, Class 1-A-10
1-A-10, and Class 1-A-11 Interests
and Class 1-A-11 Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-3
Class 1-A-6 and Class 1-A-7 Interests Class 1-A-6 and Class 1-A-7
Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-4
Class 1-A-12, Class 1-A-15 and Class Class
1-A-12, Class 1-A-15 and Class
1-A-16 Interests
1-A-16 Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-5
Class 1-A-21 and Class 1-A-22 Interests
Class 1-A-21 and Class 1-A-22
Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-1-A-6
Class 1-A-24 and Class 1-A-25 Interests
Class 1-A-24 and Class 1-A-25
Certificates
----------------------------------
----------------------------------------
------------------------------------------
MRI-IO
Class 30-IO Interest
Class 30-IO Certificates
----------------------------------
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MRI-PO
Class 30-PO Interest
Class 30-PO Certificates
----------------------------------
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MRI-1-B-1 &nb
