___________________________________________________________________
WELLS FARGO ASSET SECURITIES CORPORATION
(Seller)
and
WELLS FARGO BANK, N.A.
(Master Servicer)
and
WACHOVIA BANK, NATIONAL ASSOCIATION
(Trustee)
POOLING AND
SERVICING AGREEMENT
Dated as of December 23, 2004
$1,583,069,043.96
Mortgage Pass-Through Certificates
Series 2004-EE
_________________________________________________________________
<PAGE>
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
Section 1.01
Definitions................................................
Section 1.02 Acts of
Holders............................................
Section 1.03 Effect of
Headings and Table of Contents...................
Section 1.04 Benefits
of Agreement......................................
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF THE CERTIFICATES
Section 2.01
Conveyance of Mortgage Loans...............................
Section 2.02
Acceptance by Custodian....................................
Section 2.03
Representations and Warranties of the Master Servicer and
the Seller................................................
Section 2.04 Execution
and Delivery of Certificates.....................
Section 2.05
Designation of Certificates; Designation of Startup Day
and Latest Possible Maturity Date.........................
Section 2.06 Optional
Substitution of Mortgage Loans....................
ARTICLE III
ADMINISTRATION OF THE TRUST ESTATE; SERVICING
OF THE MORTGAGE LOANS
Section 3.01
Certificate Account........................................
Section 3.02 Permitted
Withdrawals from the Certificate Account.........
Section 3.03 Advances
by Master Servicer and Trustee....................
Section 3.04 Custodian
to Cooperate; Release of Owner Mortgage Loan
Files and Retained Mortgage Loan Files....................
Section 3.05 Reports
to the Trustee; Annual Compliance Statements.......
Section 3.06 Title,
Management and Disposition of Any REO Mortgage
Loan......................................................
Section 3.07
Amendments to Servicing Agreements,
Modification of Standard Provisions.......................
Section 3.08 Oversight
of Servicing.....................................
Section 3.09
Termination and Substitution of Servicing Agreements.......
Section 3.10
Application of Net Liquidation Proceeds....................
Section 3.11 Exchange
Act Reports.......................................
ARTICLE IV
DISTRIBUTIONS IN RESPECT OF CERTIFICATES;
PAYMENTS TO CERTIFICATEHOLDERS;
STATEMENTS AND REPORTS
Section 4.01
Distributions..............................................
Section 4.02
Allocation of Realized Losses..............................
Section 4.03 Paying
Agent...............................................
Section 4.04
Statements to Certificateholders;
Reports to the Trustee and the Seller.....................
Section 4.05 Reports
to Mortgagors and the Internal Revenue Service.....
Section 4.06
Calculation of Amounts; Binding Effect of Interpretations
and Actions of Master Servicer............................
ARTICLE V
THE CERTIFICATES
Section 5.01 The
Certificates...........................................
Section 5.02
Registration of Certificates...............................
Section 5.03
Mutilated, Destroyed, Lost or Stolen Certificates..........
Section 5.04 Persons
Deemed Owners......................................
Section 5.05 Access to
List of Certificateholders' Names and Addresses..
Section 5.06
Maintenance of Office or Agency............................
Section 5.07
Definitive Certificates....................................
Section 5.08 Notices
to Clearing Agency.................................
ARTICLE VI
THE SELLER AND THE MASTER SERVICER
Section 6.01 Liability
of the Seller and the Master Servicer............
Section 6.02 Merger or
Consolidation of the Seller or the Master
Servicer..................................................
Section 6.03
Limitation on Liability of the Seller, the Master
Servicer and Others.......................................
Section 6.04
Resignation of the Master Servicer.........................
Section 6.05
Compensation to the Master Servicer........................
Section 6.06
Assignment or Delegation of Duties by Master Servicer......
Section 6.07
Indemnification of Trustee and Seller by Master Servicer...
ARTICLE VII
DEFAULT
Section 7.01 Events of
Default..........................................
Section 7.02 Other
Remedies of Trustee..................................
Section 7.03
Directions by Certificateholders and
Duties of Trustee During Event of Default.................
Section 7.04 Action
upon Certain Failures of the
Master Servicer and upon Event of Default.................
Section 7.05 Trustee
to Act; Appointment of Successor...................
Section 7.06
Notification to Certificateholders.........................
ARTICLE VIII
CONCERNING THE TRUSTEE
Section 8.01 Duties of
Trustee..........................................
Section 8.02 Certain
Matters Affecting the Trustee......................
Section 8.03 Trustee
Not Required to Make Investigation.................
Section 8.04 Trustee
Not Liable for Certificates or Mortgage Loans......
Section 8.05 Trustee
May Own Certificates...............................
Section 8.06 The
Master Servicer to Pay Fees and Expenses...............
Section 8.07
Eligibility Requirements...................................
Section 8.08
Resignation and Removal....................................
Section 8.09
Successor..................................................
Section 8.10 Merger or
Consolidation....................................
Section 8.11
Authenticating Agent.......................................
Section 8.12 Separate
Trustees and Co-Trustees..........................
Section 8.13 Tax
Matters; Compliance with REMIC Provisions..............
Section 8.14 Monthly
Advances...........................................
ARTICLE IX
TERMINATION
Section 9.01
Termination upon Purchase by the
Seller or Liquidation of All Mortgage Loans...............
Section 9.02
Additional Termination Requirements........................
ARTICLE X
MISCELLANEOUS PROVISIONS
Section 10.01
Amendment.................................................
Section 10.02
Recordation of Agreement..................................
Section 10.03
Limitation on Rights of Certificateholders................
Section 10.04
Governing Law; Jurisdiction...............................
Section 10.05
Notices...................................................
Section 10.06
Severability of Provisions................................
Section 10.07 Special
Notices to Rating Agencies........................
Section 10.08 Covenant
of Seller........................................
Section 10.09
Recharacterization........................................
ARTICLE XI
TERMS FOR CERTIFICATES
Section 11.01 Cut-Off
Date..............................................
Section 11.02 Cut-Off Date Aggregate
Principal Balance..................
Section 11.03 Original Group
Percentage.................................
Section 11.03(a) Original Group I-A
Percentage.............................
Section 11.03(b) Original Group II-A
Percentage............................
Section 11.03(b) Original Group II-A
Percentage............................
Section 11.04 Original Principal
Balances of the Classes of Class A
Certificates.............................................
Section 11.05
Reserved..................................................
Section 11.06
Reserved..................................................
Section 11.07
Reserved..................................................
Section 11.08 Original Aggregate
Subordinated Percentage................
Section 11.09 Original Class B
Principal Balance........................
Section 11.10
Reserved..................................................
Section 11.11 Original Principal
Balances of the Classes of Class B
Certificates.............................................
Section 11.12 Original Class B-1
Fractional Interest....................
Section 11.13 Original Class B-2
Fractional Interest....................
Section 11.14 Original Class B-3
Fractional Interest....................
Section 11.15 Original Class B-4
Fractional Interest....................
Section 11.16 Original Class B-5
Fractional Interest....................
Section 11.17 Closing
Date..............................................
Section 11.18 Right to
Purchase.........................................
Section 11.19 Wire Transfer
Eligibility.................................
Section 11.20 Single
Certificate........................................
Section 11.21 Servicing Fee
Rate........................................
Section 11.22 Master Servicing Fee
Rate.................................
<PAGE>
EXHIBITS
--------
EXHIBIT A-I-A-1 -
Form
of Face of Class I-A-1 Certificate
EXHIBIT A-II-A-1 - Form of Face of
Class II-A-1 Certificate
EXHIBIT A-II-A-2 - Form of Face of
Class II-A-2 Certificate
EXHIBIT A-II-A-3 - Form of Face of
Class II-A-3 Certificate
EXHIBIT A-II-A-R - Form of Face of
Class II-A-R Certificate
EXHIBIT A-II-A-LR - Form of Face of
Class II-A-LR Certificate
EXHIBIT A-III-A-1 - Form of Face of
Class III-A-1 Certificate
EXHIBIT A-III-A-2 - Form of Face of
Class III-A-2 Certificate
EXHIBIT A-III-A-3 - Form of Face of
Class III-A-3 Certificate
EXHIBIT B-1
-
Form of Face of Class B-1 Certificate
EXHIBIT B-2
-
Form of Face of Class B-2 Certificate
EXHIBIT B-3
-
Form of Face of Class B-3 Certificate
EXHIBIT B-4
-
Form of Face of Class B-4 Certificate
EXHIBIT B-5
-
Form of Face of Class B-5 Certificate
EXHIBIT B-6
-
Form of Face of Class B-6 Certificate
EXHIBIT C
-
Form of Reverse of Series 2004-EE Certificates
EXHIBIT D
-
Reserved
EXHIBIT E
-
Custodial Agreement
EXHIBIT F-1A
-
Schedule of Mortgage Loans in Loan Group I
EXHIBIT F-1B -
Schedule of Mortgage Loans in Loan Group II
EXHIBIT F-1C
-
Schedule of Mortgage Loans in Loan Group III
EXHIBIT F-2
-
Schedule of Other Servicer Mortgage Loans
EXHIBIT G
-
Request for Release
EXHIBIT H
-
Affidavit Pursuant to Section 860E(e)(4) of the
Internal Revenue Code of 1986, as amended, and
for Non-ERISA Investors
EXHIBIT I
-
Letter from Transferor of Residual Certificates
EXHIBIT J
-
Transferee's Letter (Class [B-4] [B-5] [B-6]
Certificates)
EXHIBIT K
-
List of Recordation States
EXHIBIT L
-
Servicing Agreements
EXHIBIT M
-
Form of Special Servicing Agreement
EXHIBIT N
-
Form of Initial Certification of the Custodian
EXHIBIT O
-
Form of Final Certification of the Custodian
EXHIBIT P
-
Form of Sarbanes-Oxley Certification
EXHIBIT Q
-
Schedule of Pledged Asset Mortgage Loans
SCHEDULE I
-
Applicable Unscheduled Principal Receipt Period
<PAGE>
This Pooling and Servicing Agreement, dated as of December 23,
2004
executed by WELLS FARGO ASSET SECURITIES CORPORATION, as Seller,
WELLS FARGO
BANK, N.A., as Master Servicer, and WACHOVIA BANK, NATIONAL
ASSOCIATION, as
Trustee.
W I T N E S S E T H T
H A T:
- - - - - - - - - - -
- - -
In consideration of the mutual agreements herein contained, the
Seller, the Master Servicer and the Trustee agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01 Definitions.
Whenever used herein, the following words and phrases, unless
the
context otherwise requires, shall have the meanings specified in
this Article.
Accepted Master Servicing Practices: Accepted Master Servicing
Practices shall consist of the customary and usual master servicing
practices of
prudent master servicing institutions which master service mortgage
loans of the
same type as the Mortgage Loans in the jurisdictions in which the
related
Mortgaged Properties are located, regardless of the date upon which
the related
Mortgage Loans were originated.
Adjusted Principal Balance: As to any Distribution Date and any
Class of Class B Certificates, the greater of (A) zero and (B) (i)
the Principal
Balance of such Class with respect to such Distribution Date minus
(ii) the
Adjustment Amount for such Distribution Date less the Principal
Balances for any
Classes of Class B Certificates with higher numerical
designations.
Adjustment Amount: For any Distribution Date, the difference
between
(A) the sum of the Aggregate Class A Principal Balance and the
Class B Principal
Balance as of the related Determination Date and (B) the sum of (i)
the sum of
the Aggregate Class A Principal Balance and the Class B Principal
Balance as of
the Determination Date succeeding such Distribution Date and (ii)
the aggregate
amount that would have been distributed to all Classes as principal
in
accordance with Section 4.01(a)(i) for such Distribution Date
without regard to
the provisos in the definitions of Class B-1 Optimal Principal
Amount, Class B-2
Optimal Principal Amount, Class B-3 Optimal Principal Amount, Class
B-4 Optimal
Principal Amount, Class B-5 Optimal Principal Amount and Class B-6
Optimal
Principal Amount.
Adjustment Date: As to each Mortgage Loan, the Due Date on
which
date an adjustment to the Mortgage Interest Rate of such Mortgage
Loan becomes
effective under the related Mortgage Note, which Due Date is the
date set forth
in the Mortgage Loan Schedule as the first Adjustment Date and each
subsequent
anniversary thereof.
Aggregate Adjusted Pool Amount: With respect to any
Distribution
Date, the sum of the Group I Adjusted Pool Amount, Group II
Adjusted Pool Amount
and Group III Adjusted Pool Amount.
Aggregate Class A Principal Balance: With respect to any
Determination Date, the sum of the Group I-A Principal Balance,
Group II-A
Principal Balance and Group III-A Principal Balance.
Aggregate Class A Percentage: With respect to any Distribution
Date,
the percentage, the numerator of which is the Aggregate Class A
Principal
Balance prior to giving effect to any distributions on such
Distribution Date,
and the denominator of which is the sum of the Pool Balances for
each Loan Group
on the first day of the month preceding the month of such
Distribution Date.
Aggregate Group I-A Unpaid Interest Shortfall: As to any
Distribution Date, an amount equal to the sum of the Class A Unpaid
Interest
Shortfalls for the Group I-A Certificates.
Aggregate Group II-A Unpaid Interest Shortfall: As to any
Distribution Date, an amount equal to the sum of the Class A Unpaid
Interest
Shortfalls for the Group II-A Certificates.
Aggregate Group III-A Unpaid Interest Shortfall: As to any
Distribution Date, an amount equal to the sum of the Class A Unpaid
Interest
Shortfalls for the Group III-A Certificates.
Aggregate Principal Balance: As of any Determination Date, the
sum
of the Group I-A Principal Balance, the Group II-A Principal
Balance, the Group
III-A Principal Balance and the Class B Principal Balance as of
such date.
Aggregate Subordinated Percentage: As to any Determination Date,
the
difference between 100% and the Aggregate Class A Percentage.
Agreement: This Pooling and Servicing Agreement and all
amendments
and supplements hereto.
Applicable Unscheduled Principal Receipt Period: With respect to
the
Mortgage Loans serviced by each Servicer and each of the Full
Unscheduled
Principal Receipts and Partial Unscheduled Principal Receipts, the
Unscheduled
Principal Receipt Period specified on Schedule I hereto.
Apportioned Class B Principal Distribution Amount: As to any
Distribution Date and any Class of Class B Certificates, the
product of (i) the
applicable Class B Principal Distribution Amount and (ii) the
Apportionment
Fraction for such Class.
Apportionment Fraction: As to any Class of Class B Certificates
and
any Distribution Date occurring prior to the Subordination
Depletion Date and on
or after the Distribution Date on which the Principal Balance of
each Class of
one Group has been reduced to zero, a fraction, the numerator of
which is the
portion of the Class B Loan Group Optimal Principal Amounts
represented by
clauses (ii) and (iii) of the definition thereof (other than
Liquidation
Proceeds that are not partial Liquidation Proceeds) for which the
corresponding
Class A Certificates are no longer outstanding and the denominator
of which is
the applicable Class B Optimal Principal Amount without regard to
the proviso
thereto.
Authenticating Agent: Any authenticating agent appointed by the
Trustee pursuant to Section 8.11. There shall initially be no
Authenticating
Agent for the Certificates.
Available Master Servicer Compensation: With respect to any
Distribution Date, the sum of (a) the Master Servicing Fee for such
Distribution
Date, (b) interest earned through the business day preceding the
applicable
Distribution Date on any Prepayments in Full remitted to the Master
Servicer and
(c) the aggregate amount of Month End Interest remitted by the
Servicers to the
Master Servicer pursuant to the related Servicing Agreements.
Bankruptcy Code: The Bankruptcy Code of 1978, as amended.
Bankruptcy Loss: With respect to any Mortgage Loan, a Deficient
Valuation or Debt Service Reduction; provided, however, that a
Bankruptcy Loss
shall not be deemed a Bankruptcy Loss hereunder so long as the
applicable
Servicer has notified the Master Servicer and the Trustee in
writing that such
Servicer is diligently pursuing any remedies that may exist in
connection with
the representations and warranties made regarding the related
Mortgage Loan and
either (A) the related Mortgage Loan is not in default with regard
to payments
due thereunder or (B) delinquent payments of principal and interest
under the
related Mortgage Loan and any premiums on any applicable primary
hazard
insurance policy and any related escrow payments in respect of such
Mortgage
Loan are being advanced on a current basis by such Servicer without
giving
effect to any Debt Service Reduction.
Beneficial Owner: With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Book-Entry Certificate,
as reflected
on the books of the Clearing Agency, or on the books of a Person
maintaining an
account with such Clearing Agency (directly or as an indirect
participant, in
accordance with the rules of such Clearing Agency), as the case may
be.
Book-Entry Certificate: Any one of the Class I-A-1
Certificates,
Class II-A-1 Certificates, Class II-A-2 Certificates, Class II-A-3
Certificates,
Class III-A-1 Certificates, Class III-A-2 Certificates, Class
III-A-3
Certificates, Class B-1 Certificates, Class B-2 Certificates and
Class B-3
Certificates, beneficial ownership and transfers of which shall be
evidenced by,
and made through, book entries by the Clearing Agency as described
in Section
5.01(b).
Business Day: Any day other than (i) a Saturday or a Sunday, or
(ii)
a legal holiday in the City of New York, State of Iowa, State of
Maryland, State
of Minnesota or State of North Carolina or (iii) a day on which
banking
institutions in the City of New York, or the State of Iowa, State
of Maryland,
State of Minnesota or State of North Carolina are authorized or
obligated by law
or executive order to be closed.
Certificate: Any one of the Class A Certificates or Class B
Certificates.
Certificate Account: The separate trust account established and
maintained by the Master Servicer in the name of the Master
Servicer on behalf
of the Trustee pursuant to Section 3.01. The Certificate Account
shall be an
Eligible Account.
Certificate Custodian: Initially, Wachovia Bank, National
Association; thereafter any other Certificate Custodian acceptable
to The
Depository Trust Company and selected by the Trustee.
Certificate Register and Certificate Registrar: Respectively,
the
register maintained pursuant to and the registrar provided for in
Section 5.02.
The initial Certificate Registrar is the Trustee.
Certificateholder or Holder: The Person in whose name a
Certificate
is registered in the Certificate Register, except that, solely for
the purposes
of the taking of any action under Articles VII or VIII, any
Certificate
registered in the name of the Master Servicer, a Servicer or any
affiliate
thereof shall be deemed not to be outstanding and the Voting
Interest evidenced
thereby shall not be taken into account in determining whether the
requisite
percentage of Certificates necessary to effect any such action has
been
obtained.
Class: All certificates whose form is identical except for
variations in the Percentage Interest evidenced thereby.
Class I-A-1 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-I-A-1 and Exhibit C
hereto.
Class I-A-1 Certificateholder: The registered holder of a Class
I-A-1 Certificate.
Class I-L Interest: A regular interest in the Lower-Tier REMIC
which
is held as an asset of the Upper-Tier REMIC and is entitled to
monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class I-LS Interest: A regular interest in the Lower-Tier REMIC
which is held as an asset of the Upper-Tier REMIC and is entitled
to monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class II-A-1 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-II-A-1 and Exhibit C
hereto.
Class
II-A-1 Certificateholder: The registered holder of a Class
II-A-1 Certificate.
Class II-A-2 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-II-A-2 and Exhibit C
hereto.
Class II-A-2 Certificateholder: The registered holder of a
Class
II-A-2 Certificate.
Class II-A-2 Loss Amount: With respect to any Determination
Date
after the Subordination Depletion Date, the amount, if any, by
which the
Principal Balance of the Class II-A-2 Certificates would be reduced
as a result
of the application of the third sentence of the definition of
Principal Balance.
Class II-A-3 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-II-A-3 and Exhibit C
hereto.
Class II-A-3 Certificateholder: The registered holder of a
Class
II-A-3 Certificate.
Class II-A-3 Loss Allocation Amount: With respect to any
Determination Date after the Subordination Depletion Date the
lesser of (a) the
Principal Balance of the Class II-A-3 Certificates with respect to
such
Determination Date prior to any reduction for the Class II-A-3 Loss
Allocation
Amount and (b) the Class II-A-2 Loss Amount.
Class II-A-LR Certificate: The Certificate executed by the
Trustee
and authenticated by the Trustee or the Authenticating Agent in
substantially
the form set forth in Exhibit A-II-A-LR and Exhibit C hereto.
Class II-A-LR Certificateholder: The registered holder of the
Class
II-A-LR Certificate.
Class II-A-R Certificate: The Certificate executed by the
Trustee
and authenticated by the Trustee or the Authenticating Agent in
substantially
the form set forth in Exhibit A-II-A-R and Exhibit C hereto.
Class II-A-R Certificateholder: The registered holder of the
Class
II-A-R Certificate.
Class II-L Interest: A regular interest in the Lower-Tier REMIC
which is held as an asset of the Upper-Tier REMIC and is entitled
to monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class II-LS Interest: A regular interest in the Lower-Tier
REMIC
which is held as an asset of the Upper-Tier REMIC and is entitled
to monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class III-A-1 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-III-A-1 and Exhibit C
hereto.
Class III-A-1 Certificateholder: The registered holder of a
Class
III-A-1 Certificate.
Class III-A-2 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-III-A-2 and Exhibit C
hereto.
Class III-A-2 Certificateholder: The registered holder of a
Class
III-A-2 Certificate.
Class III-A-2 Loss Amount: With respect to any Determination
Date
after the Subordination Depletion Date, the amount, if any, by
which the
Principal Balance of the Class III-A-2 Certificates would be
reduced as a result
of the application of the third sentence of the definition of
Principal Balance.
Class III-A-3 Certificate: Any one of the Certificates executed
by
the Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit A-III-A-3 and Exhibit C
hereto.
Class III-A-3 Certificateholder: The registered holder of a
Class
III-A-3 Certificate.
Class III-A-3 Loss Allocation Amount: With respect to any
Determination Date after the Subordination Depletion Date the
lesser of (a) the
Principal Balance of the Class III-A-3 Certificates with respect to
such
Determination Date prior to any reduction for the Class III-A-3
Loss Allocation
Amount and (b) the Class III-A-2 Loss Amount.
Class III-L Interest: A regular interest in the Lower-Tier
REMIC
which is held as an asset of the Upper-Tier REMIC and is entitled
to monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class III-LS Interest:
A regular interest in the Lower-Tier REMIC
which is held as an asset of the Upper-Tier REMIC and is entitled
to monthly
distributions as provided in Section 4.01(a)(iii) hereof.
Class A Certificate: Either of the Group I-A Certificates,
Group
II-A Certificates or Group III-A Certificates.
Class A Certificateholder: The registered holder of a Class A
Certificate.
Class A Interest Percentage: As to any Distribution Date and
any
Class of Class A Certificates, the percentage calculated by
dividing the
Interest Accrual Amount of such Class (determined without regard to
clause (ii)
of the definition thereof) by the sum of (a) the Group I-A Interest
Accrual
Amount, (b) the Group II-A Interest Accrual Amount and (c) the
Group III-A
Interest Accrual Amount.
Class A Pass-Through Rate: For each Distribution Date and the
Class
I-A Certificates, the Class A Pass-Through Rate will be a per annum
rate equal
to Net WAC of the Group I Mortgage Loans. For each Distribution
Date and any of
the Group II-A Certificates, the Class A Pass-Through Rate will be
a per annum
rate equal to Net WAC of the Group II Mortgage Loans. For each
Distribution Date
and any of the Group III-A Certificates, the Class A Pass-Through
Rate will be a
per annum rate equal to Net WAC of the Group III Mortgage
Loans.
Class A Unpaid Interest Shortfall: As to any Distribution Date
and
Class of Class A Certificates, the amount, if any, by which the
aggregate of the
Group I-A Interest Shortfall Amounts, Group II-A Interest Shortfall
Amounts and
Group III-A Interest Shortfall Amounts for such Class for prior
Distribution
Dates is in excess of the amounts distributed in respect of such
Class on prior
Distribution Dates pursuant to Paragraph second of Section
4.01(a)(i).
Class B Certificate: Any one of the Class B-1 Certificates,
Class
B-2 Certificates, Class B-3 Certificates, Class B-4 Certificates,
Class B-5
Certificates or Class B-6 Certificates.
Class B Certificateholder: The registered holder of a Class B
Certificate.
Class B Distribution Amount: Any of the Class B-1 Distribution
Amount, Class B-2 Distribution Amount, Class B-3 Distribution
Amount, Class B-4
Distribution Amount, Class B-5 Distribution Amount or Class B-6
Distribution
Amount.
Class B Interest Accrual Amount: With respect to any
Distribution
Date, the sum of the Interest Accrual Amounts for the Classes of
Class B
Certificates with respect to such Distribution Date.
Class B Interest Percentage: With respect to any Distribution
Date
and any Class of Class B Certificates, the percentage calculated by
dividing the
Interest Accrual Amount of such Class (determined without regard to
clause (ii)
of the definition thereof) by the Class B Interest Accrual Amount
(determined
without regard to clause (ii) of the definition of each Interest
Accrual
Amount).
Class B Interest Shortfall Amount: Any of the Class B-1
Interest
Shortfall Amount, Class B-2 Interest Shortfall Amount, Class B-3
Interest
Shortfall Amount, Class B-4 Interest Shortfall Amount, Class B-5
Interest
Shortfall Amount or Class B-6 Interest Shortfall Amount.
Class B Loan Group I Optimal Principal Amount: Any of the Class
B-1,
Class B-2, Class B-3, Class B-4, Class B-5 or Class B-6 Loan Group
I Optimal
Principal Amounts.
Class B Loan Group II Optimal Principal Amount: Any of the
Class
B-1, Class B-2, Class B-3, Class B-4, Class B-5 or Class B-6 Loan
Group II
Optimal Principal Amounts.
Class B Loan Group III Optimal Principal Amount: Any of the
Class
B-1, Class B-2, Class B-3, Class B-4, Class B-5 or Class B-6 Loan
Group III
Optimal Principal Amounts.
Class B Loan Group Optimal Principal Amount: Any of the Class B
Loan
Group I Optimal Principal Amount, Class B Loan Group II Optimal
Principal Amount
and Class B Loan Group III Optimal Principal Amount.
Class B Loss Percentage: With respect to any Determination Date
and
any Class of Class B Certificates then outstanding, the percentage
calculated by
dividing the Principal Balance of such Class by the Class B
Principal Balance
(determined without regard to any Principal Balance of any Class of
Class B
Certificates not then outstanding), in each case determined as of
the preceding
Determination Date.
Class B Optimal Principal Amount: Any of the Class B-1 Optimal
Principal Amount, Class B-2 Optimal Principal Amount, Class B-3
Optimal
Principal Amount, Class B-4 Optimal Principal Amount, Class B-5
Optimal
Principal Amount or Class B-6 Optimal Principal Amount.
Class B Pass-Through Rate: As to any Distribution Date, the Class
B
Pass-Through Rate will be a per annum rate equal to the weighted
average (based
on the Group Subordinate Amount for each Loan Group) of the Net
WACs of the Loan
Groups.
Class B Principal Balance: As of any date, an amount equal to
the
sum of the Class B-1 Principal Balance, Class B-2 Principal
Balance, Class B-3
Principal Balance, Class B-4 Principal Balance, Class B-5 Principal
Balance and
Class B-6 Principal Balance.
Class B Principal Distribution Amount: Any of the Class B-1
Principal Distribution Amount, Class B-2 Principal Distribution
Amount, Class
B-3 Principal Distribution Amount, Class B-4 Principal Distribution
Amount,
Class B-5 Principal Distribution Amount or Class B-6 Principal
Distribution
Amounts.
Class B Unpaid Interest Shortfall: Any of the Class B-1 Unpaid
Interest Shortfall, Class B-2 Unpaid Interest Shortfall, Class B-3
Unpaid
Interest Shortfall, Class B-4 Unpaid Interest Shortfall, Class B-5
Unpaid
Interest Shortfall or Class B-6 Unpaid Interest Shortfall.
Class B-1 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-1 and Exhibit C
hereto.
Class B-1 Certificateholder: The registered holder of a Class
B-1
Certificate.
Class B-1 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-1 Certificates
pursuant to
Paragraphs first, second and third of Section 4.01(a)(ii).
Class B-1 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-1
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-1 Certificates on such Distribution Date pursuant to
Paragraph
first of Section 4.01(a)(ii).
Class B-1 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-1 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-1 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-1 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-1 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-1 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-1 Optimal Principal Amount: As to any Distribution Date
and
each Outstanding Mortgage Loan, an amount equal to the sum of
(I) the sum of:
(i) the Group I Class B-1 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-1 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-1 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-1 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-1 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-1
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all
Unscheduled Principal Receipts (other than Recoveries) that
were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable Unscheduled
Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-1 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-1 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-1
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-1 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-1 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-1 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-1 Prepayment Percentage, Group II Class
B-1 Prepayment
Percentage or Group III Class B-1 Prepayment Percentage, as
applicable, of the
Recovery for each Loan Group for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-1 Optimal
Principal Amount
will equal the lesser of (A) the Class B-1 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-1 Certificates.
Class B-1 Principal Balance: As to the first Determination Date,
the
Original Class B-1 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-1 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-1 Certificates on prior
Distribution Dates
(A) pursuant to Paragraph third of Section 4.01(a)(ii) and (B) as a
result of a
Principal Adjustment; provided, however, if the Class B-1
Certificates are the
most subordinate Certificates outstanding, the Class B-1 Principal
Balance will
equal the difference, if any, between the Aggregate Adjusted Pool
Amount as of
the preceding Distribution Date less the Aggregate Class A
Principal Balance as
of such Determination Date.
Class B-1 Principal Distribution Amount: As to any Distribution
Date, any amount distributable to the Holders of the Class B-1
Certificates
pursuant to Paragraph third of Section 4.01(a)(ii).
Class B-1 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-1
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-1 Certificates on prior Distribution Dates
pursuant to
Paragraph second of Section 4.01(a)(ii).
Class B-2 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-2 and Exhibit C
hereto.
Class B-2 Certificateholder: The registered holder of a Class
B-2
Certificate.
Class B-2 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-2 Certificates
pursuant to
Paragraphs fourth, fifth and sixth of Section 4.01(a)(ii).
Class B-2 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-2
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-2 Certificates on such Distribution Date pursuant to
Paragraph
fourth of Section 4.01(a)(ii).
Class B-2 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-2 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-2 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-2 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-2 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-2 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-2 Optimal Principal Amount: As to any Distribution Date
and
each Outstanding Mortgage Loan, an amount equal to the sum of
(I) the sum of:
(i) the Group I Class B-2 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-2 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-2 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-2 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-2 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-2
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all
Unscheduled Principal Receipts (other than Recoveries) that
were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable
Unscheduled Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-2 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-2 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-2
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-2 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-2 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-2 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed
Periodic Advances previously made by the applicable Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-2 Prepayment Percentage, Group II Class
B-2 Prepayment
Percentage or Group III Class B-2 Prepayment Percentage, as
applicable, of the
Recovery for each Loan Group for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-2 Optimal
Principal Amount
will equal the lesser of (A) the Class B-2 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-2 Certificates.
Class B-2 Principal Balance: As to the first Determination Date,
the
Original Class B-2 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-2 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-2 Certificates on prior
Distribution Dates
(A) pursuant to Paragraph sixth of Section 4.01(a)(ii) and (B) as a
result of a
Principal Adjustment; provided, however, if the Class B-2
Certificates are the
most subordinate Certificates outstanding, the Class B-2 Principal
Balance will
equal the difference, if any, between the Aggregate Adjusted Pool
Amount as of
the preceding Distribution Date less the sum of the Aggregate Class
A Principal
Balance and the Class B-1 Principal Balance as of such
Determination Date.
Class B-2 Principal Distribution Amount: As to any Distribution
Date, any amount distributable to the Holders of the Class B-2
Certificates
pursuant to Paragraph sixth of Section 4.01(a)(ii).
Class B-2 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-2
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-2 Certificates on prior Distribution Dates
pursuant to
Paragraph fifth of Section 4.01(a)(ii).
Class B-3 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-3 and Exhibit C
hereto.
Class B-3 Certificateholder: The registered holder of a Class
B-3
Certificate.
Class B-3 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-3 Certificates
pursuant to
Paragraphs seventh, eighth and ninth of Section 4.01(a)(ii).
Class B-3 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-3
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-3 Certificates on such Distribution Date pursuant to
Paragraph
seventh of Section 4.01(a)(ii).
Class B-3 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-3 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-3 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-3 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-3 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-3 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-3 Optimal
Principal Amount: As to any Distribution
Date
and each Outstanding Mortgage Loan, an amount equal to the sum
of
(I) the sum of:
(i) the Group I Class B-3 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-3 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-3 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-3 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-3 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-3
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all
Unscheduled Principal Receipts (other than Recoveries) that
were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable
Unscheduled Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-3 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-3 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-3
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-3 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-3 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-3 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-3 Prepayment Percentage, Group II Class
B-3 Prepayment
Percentage or Group III Class B-3 Prepayment Percentage, as
applicable, of the
Recovery for each Loan Group for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-3 Optimal
Principal Amount
will equal the lesser of (A) the Class B-3 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-3 Certificates.
Class B-3 Principal Balance: As to the first Determination Date,
the
Original Class B-3 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-3 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-3 Certificates on prior
Distribution Dates
(A) pursuant to Paragraph ninth of Section 4.01(a)(ii) and (B) as a
result of a
Principal Adjustment; provided, however, if the Class B-3
Certificates are the
most subordinate Certificates outstanding, the Class B-3 Principal
Balance will
equal the difference, if any, between the Aggregate Adjusted Pool
Amount as of
the preceding Distribution Date less the sum of the Aggregate Class
A Principal
Balance, the Class B-1 Principal Balance and the Class B-2
Principal Balance as
of such Determination Date.
Class B-3 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-3
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-3 Certificates on prior Distribution Dates
pursuant to
Paragraph eighth of Section 4.01(a)(ii).
Class B-4 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-4 and Exhibit C
hereto.
Class B-4 Certificateholder: The registered holder of a Class
B-4
Certificate.
Class B-4 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-4 Certificates
pursuant to
Paragraphs tenth, eleventh and twelfth of Section 4.01(a)(ii).
Class B-4 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-4
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-4 Certificates on such Distribution Date pursuant to
Paragraph
tenth of Section 4.01(a)(ii).
Class B-4 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-4 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-4 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-4 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-4 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-4 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-4 Optimal Principal Amount: As to any Distribution Date
and
each Outstanding Mortgage Loan, an amount equal to the sum of
(I) the sum of:
(i) the Group I Class B-4 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-4 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-4 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-4 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-4 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-4
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all Unscheduled
Principal Receipts (other than Recoveries) that were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable
Unscheduled Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-4 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-4 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-4
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-4 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-4 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-4 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-4 Prepayment Percentage, Group II Class
B-4 Prepayment
Percentage or Group III Class B-4 Prepayment Percentage, as
applicable, of the
Recovery for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-4 Optimal
Principal Amount
will equal the lesser of (A) the Class B-4 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-4 Certificates.
Class B-4 Principal Balance: As to the first Determination Date,
the
Original Class B-4 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-4 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-4 Certificates on prior
Distribution Dates
(A) pursuant to Paragraph twelfth of Section 4.01(a)(ii) and (B) as
a result of
a Principal Adjustment; provided, however, if the Class B-4
Certificates are the
most subordinate Certificates outstanding, the Class B-4 Principal
Balance will
equal the difference, if any, between the Aggregate Adjusted Pool
Amount as of
the preceding Distribution Date less the sum of the Aggregate Class
A Principal
Balance, the Class B-1 Principal Balance, the Class B-2 Principal
Balance and
the Class B-3 Principal Balance as of such Determination Date.
Class B-4 Principal Distribution Amount: As to any Distribution
Date, any amount distributable to the Holders of the Class B-4
Certificates
pursuant to Paragraph twelfth of Section 4.01(a)(ii).
Class B-4 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-4
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-4 Certificates on prior Distribution Dates
pursuant to
Paragraph eleventh of Section 4.01(a)(ii).
Class B-5 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-5 and Exhibit C
hereto.
Class B-5 Certificateholder: The registered holder of a Class
B-5
Certificate.
Class B-5 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-5 Certificates
pursuant to
Paragraphs thirteenth, fourteenth and fifteenth of Section
4.01(a)(ii).
Class B-5 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-5
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-5 Certificates on such Distribution Date pursuant to
Paragraph
thirteenth of Section 4.01(a)(ii).
Class B-5 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-5 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-5 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-5 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-5 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-5 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-5 Optimal Principal Amount: As to any Distribution Date
and
each Outstanding Mortgage Loan, an amount equal to the sum of
(I) the sum of:
(i) the Group I Class B-5 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-5 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-5 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-5 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-5 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-5
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all
Unscheduled Principal Receipts (other than Recoveries) that
were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable
Unscheduled Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-5 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-5 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-5
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-5 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-5 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-5 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-5 Prepayment Percentage, Group II Class
B-5 Prepayment
Percentage or Group III Class B-5 Prepayment Percentage, as
applicable, of the
Recovery for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-5 Optimal
Principal Amount
will equal the lesser of (A) the Class B-5 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-5 Certificates.
Class B-5 Principal Balance: As to the first Determination Date,
the
Original Class B-5 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-5 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-5 Certificates on prior
Distribution Dates
(A) pursuant to Paragraph fifteenth of Section 4.01(a)(ii) and (B)
as a result
of a Principal Adjustment; provided, however, if the Class B-5
Certificates are
the most subordinate Certificates outstanding, the Class B-5
Principal Balance
will equal the difference, if any, between the Aggregate Adjusted
Pool Amount as
of the preceding Distribution Date less the sum of the Aggregate
Class A
Principal Balance, the Class B-1 Principal Balance, the Class B-2
Principal
Balance, the Class B-3 Principal Balance and the Class B-4
Principal Balance as
of such Determination Date.
Class B-5 Principal Distribution Amount: As to any Distribution
Date, any amount distributable to the Holders of the Class B-5
Certificates
pursuant to Paragraph fifteenth of Section 4.01(a)(ii).
Class B-5 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-5
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-5 Certificates on prior Distribution Dates
pursuant to
Paragraph fourteenth of Section 4.01(a)(ii).
Class B-6 Certificate: Any one of the Certificates executed by
the
Trustee and authenticated by the Trustee or the Authenticating
Agent in
substantially the form set forth in Exhibit B-6 and Exhibit C
hereto.
Class B-6 Certificateholder: The registered holder of a Class
B-6
Certificate.
Class B-6 Distribution Amount: As to any Distribution Date, any
amount distributable to the Holders of the Class B-6 Certificates
pursuant to
Paragraphs sixteenth, seventeenth and eighteenth of Section
4.01(a)(ii).
Class B-6 Interest Shortfall Amount: As to any Distribution
Date,
any amount by which the Interest Accrual Amount of the Class B-6
Certificates
with respect to such Distribution Date exceeds the amount
distributed in respect
of the Class B-6 Certificates on such Distribution Date pursuant to
Paragraph
sixteenth of Section 4.01(a)(ii).
Class B-6 Loan Group I Optimal Principal Amount: As to any
Distribution Date, the Class B-6 Optimal Principal Amount
calculated only with
respect to Group I Mortgage Loans and without regard to the proviso
thereto.
Class B-6 Loan Group II Optimal Principal Amount: As to any
Distribution Date, the Class B-6 Optimal Principal Amount
calculated only with
respect to Group II Mortgage Loans and without regard to the
proviso thereto.
Class B-6 Loan Group III Optimal Principal Amount: As to any
Distribution Date, the Class B-6 Optimal Principal Amount
calculated only with
respect to Group III Mortgage Loans and without regard to the
proviso thereto.
Class B-6 Optimal Principal Amount: As to any Distribution Date
and
each Outstanding Mortgage Loan, an amount equal to the sum of
(I) the sum of:
(i) the Group I Class B-6 Percentage (with respect to each such
Group I
Mortgage Loan), Group II Class B-6 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-6 Percentage (with
respect to
each such Group III Mortgage Loan) of the principal portion of
the
Monthly Payment due on the Due Date occurring in the month of
such
Distribution Date on such Mortgage Loan;
(ii) the Group I Class B-6 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-6 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-6
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of all
Unscheduled Principal Receipts (other than Recoveries) that
were
received
by a Servicer with respect to such Mortgage Loan during the
Applicable
Unscheduled Principal Receipt Period relating to such
Distribution Date for each applicable type of Unscheduled
Principal
Receipt;
(iii) the Group I Class B-6 Prepayment Percentage (with respect
to
each such
Group I Mortgage Loan), Group II Class B-6 Prepayment
Percentage
(with
respect to each such Group II Mortgage Loan) or Group III Class
B-6
Prepayment
Percentage (with respect to each such Group III Mortgage Loan)
of the
Scheduled Principal Balance of such Mortgage Loan which, during
the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date, was repurchased by the Seller pursuant to
Section
2.02 or
2.03; and
(iv) the Group I Class B-6 Percentage (with respect to each
such
Group I
Mortgage Loan), Group II Class B-6 Percentage (with respect to
each such
Group II Mortgage Loan) or Group III Class B-6 Percentage (with
respect to
each such Group III Mortgage Loan) of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the Group I Class B-6 Prepayment Percentage, Group II Class
B-6 Prepayment
Percentage or Group III Class B-6 Prepayment Percentage, as
applicable, of the
Recovery for such Distribution Date;
provided, however, that if an Optimal Adjustment Event occurs with
respect to
such Class and such Distribution Date, the Class B-6 Optimal
Principal Amount
will equal the lesser of (A) the Class B-6 Optimal Principal Amount
calculated
as described in the preceding provisions and (B) the Adjusted
Principal Balance
for the Class B-6 Certificates.
Class B-6 Principal Balance: As to the first Determination Date,
the
Original Class B-6 Principal Balance. As of any subsequent
Determination Date,
the Original Class B-6 Principal Balance less the sum of all
amounts previously
distributed in respect of the Class B-6 Certificates on prior
Distribution Dates
pursuant to Paragraph eighteenth of Section 4.01(a)(ii); provided,
however, if
the Class B-6 Certificates are outstanding, the Class B-6 Principal
Balance will
equal the difference, if any, between the Aggregate Adjusted Pool
Amount as of
the preceding Distribution Date less the sum of the Aggregate Class
A Principal
Balance, the Class B-1 Principal Balance, the Class B-2 Principal
Balance, the
Class B-3 Principal Balance, the Class B-4 Principal Balance and
the Class B-5
Principal Balance as of such Determination Date.
Class B-6 Principal Distribution Amount: As to any Distribution
Date, any amount distributable to the Holders of the Class B-6
Certificates
pursuant to Paragraph eighteenth of Section 4.01(a)(ii).
Class B-6 Unpaid Interest Shortfall: As to any Distribution
Date,
the amount, if any, by which the aggregate of the Class B-6
Interest Shortfall
Amounts for prior Distribution Dates is in excess of the amounts
distributed in
respect of the Class B-6 Certificates on prior Distribution Dates
pursuant to
Paragraph seventeenth of Section 4.01(a)(ii).
Clearing Agency: An organization registered as a "clearing
agency"
pursuant to Section 17A of the Exchange Act. The initial Clearing
Agency shall
be The Depository Trust Company.
Clearing Agency Participant: A broker, dealer, bank, financial
institution or other Person for whom a Clearing Agency effects
book-entry
transfers of securities deposited with the Clearing Agency.
Closing Date: The date of initial issuance of the Certificates,
as
set forth in Section 11.17.
Code: The Internal Revenue Code of 1986, as it may be amended
from
time to time, any successor statutes thereto, and applicable U.S.
Department of
the Treasury temporary or final regulations promulgated
thereunder.
Compensating Interest: With respect to any Distribution Date,
the
least of (a) the aggregate Prepayment Interest Shortfall on the
Mortgage Loans
for such Distribution Date, (b) the product of (i) 1/12th of 0.20%
and (ii) the
Pool Scheduled Principal Balance for such Distribution Date and (c)
the
Available Master Servicing Compensation for such Distribution
Date.
Co-op Shares: Shares issued by private non-profit housing
corporations.
Corporate Trust Office: The principal office of the Trustee at
which
at any particular time its corporate trust business shall be
administered, which
office, at the date of the execution of this instrument, is located
at 401 South
Tryon Street, Charlotte, North Carolina 28288.
Current Group I-A Interest Distribution Amount: As to any
Distribution Date, the amount distributed in respect of the Classes
of Group I-A
Certificates pursuant to Paragraph first clause (A) of Section
4.01(a)(i) on
such Distribution Date.
Current Group II-A Interest Distribution Amount: As to any
Distribution Date, the amount distributed in respect of the Classes
of Group
II-A Certificates pursuant to Paragraph first clause (B) of Section
4.01(a)(i)
on such Distribution Date.
Current Group III-A Interest Distribution Amount: As to any
Distribution Date, the amount distributed in respect of the Classes
of Group
III-A Certificates pursuant to Paragraph first clause (C) of
Section 4.01(a)(i)
on such Distribution Date.
Current Class B Interest Distribution Amount: As to any
Distribution
Date, the amount distributed in respect of the Classes of Class B
Certificates
pursuant to Paragraphs first, fourth, seventh, tenth, thirteenth
and sixteenth
of Section 4.01(a)(ii) on such Distribution Date.
Current Class B-1 Fractional Interest: As to any Distribution
Date
subsequent to the first Distribution Date, the percentage obtained
by dividing
the sum of the Principal Balances of the Class B-2, Class B-3,
Class B-4, Class
B-5 and Class B-6 Certificates by the Aggregate Principal Balance.
As to the
first Distribution Date, the Original Class B-1 Fractional
Interest.
Current Class B-2 Fractional Interest: As to any Distribution
Date
subsequent to the first Distribution Date, the percentage obtained
by dividing
the sum of the Principal Balances of the Class B-3, Class B-4,
Class B-5 and
Class B-6 Certificates by the Aggregate Principal Balance. As to
the first
Distribution Date, the Original Class B-2 Fractional Interest.
Current Class B-3 Fractional Interest: As to any Distribution
Date
subsequent to the first Distribution Date, the percentage obtained
by dividing
the sum of the Principal Balances of the Class B-4, Class B-5 and
Class B-6
Certificates by the by the Aggregate Principal Balance. As to the
first
Distribution Date, the Original Class B-3 Fractional Interest.
Current Class B-4 Fractional Interest: As to any Distribution
Date
subsequent to the first Distribution Date, the percentage obtained
by dividing
the sum of the Principal Balances of the Class B-5 and Class B-6
Certificates by
the Aggregate Principal Balance. As to the first Distribution Date,
the Original
Class B-4 Fractional Interest.
Current Class B-5 Fractional Interest: As to any Distribution
Date
subsequent to the first Distribution Date, the percentage obtained
by dividing
the Principal Balance of the Class B-6 Certificates by the
Aggregate Principal
Balance. As to the first Distribution Date, the Original Class B-5
Fractional
Interest.
Curtailment: Any Principal Prepayment made by a Mortgagor which
is
not a Prepayment in Full.
Curtailment Interest Shortfall: On any Distribution Date with
respect to a Mortgage Loan which was the subject of a
Curtailment:
(A) in the case
where the Applicable Unscheduled Principal Receipt
Period is the Mid-Month Receipt Period and such Curtailment is
received by the Servicer on or after the Determination Date in
the month preceding the month of such Distribution Date but
prior to the first day of the month of such Distribution Date,
the amount of interest that would have accrued at the Net
Mortgage Interest Rate on the amount of such Curtailment from
the day of its receipt or, if earlier, its application by the
Servicer through the last day of the month preceding the month
of such Distribution Date; and
(B) in the case
where the Applicable Unscheduled Principal Receipt
Period is the Prior Month Receipt Period and such Curtailment
is received by the Servicer during the month preceding the
month of such Distribution Date, the amount of interest that
would have accrued at the Net Mortgage Interest Rate on the
amount of such Curtailment from the day of its receipt or, if
earlier, its application by the Servicer through the last day
of the month in which such Curtailment is received.
Custodial Agreement: The Custodial Agreement, dated as of
December
23, 2004, among the Custodian, the Seller, the Master Servicer and
the Trustee,
which agreement is attached hereto as Exhibit E, as the same may be
amended or
modified from time to time in accordance with the terms
thereof.
Custodial P&I Account: The Custodial P&I Account, as
defined in each
of the Servicing Agreements, with respect to the Mortgage Loans. In
determining
whether the Custodial P&I Account under any Servicing Agreement
is "acceptable"
to the Master Servicer (as may be required by the definition of
"Eligible
Account" contained in the Servicing Agreements), the Master
Servicer shall
require that any such account shall be acceptable to each of the
Rating
Agencies.
Custodian: Wells Fargo Bank, or its successor in interest under
the
Custodial Agreement. Initially, the custodial functions shall be
performed by
the Corporate Trust Services division of Wells Fargo Bank.
Cut-Off Date: The first day of the month of initial issuance of
the
Certificates as set forth in Section 11.01.
Cut-Off Date Aggregate Principal Balance: The aggregate of the
Cut-Off Date Principal Balances of the Mortgage Loans is as set
forth in Section
11.02.
Cut-Off Date Principal Balance: As to each Mortgage Loan, its
unpaid
principal balance as of the close of business on the Cut-Off Date
(but without
giving effect to any Unscheduled Principal Receipts received or
applied on the
Cut-Off Date), reduced by all payments of principal due on or
before the Cut-Off
Date and not paid, and increased by scheduled monthly payments of
principal due
after the Cut-Off Date but received by the related Servicer on or
before the
Cut-Off Date.
Debt Service Reduction: With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan
by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code,
except such a
reduction constituting a Deficient Valuation.
Deficient Valuation: With respect to any Mortgage Loan, a
valuation
by a court of competent jurisdiction of the Mortgaged Property in
an amount less
than the then-outstanding indebtedness under the Mortgage Loan, or
any reduction
in the amount of principal to be paid in connection with any
scheduled Monthly
Payment that results in a permanent forgiveness of principal, which
valuation or
reduction results from a proceeding under the Bankruptcy Code.
Definitive Certificates: As defined in Section 5.01(b).
Denomination: The amount, if any, specified on the face of each
Certificate representing the principal portion of the Cut-Off Date
Aggregate
Principal Balance evidenced by such Certificate.
Determination Date: The 17th day of the month in which the
related
Distribution Date occurs, or if such 17th day is not a Business
Day, the
Business Day preceding such 17th day.
Distribution Date: The 25th day of any month, beginning in the
month
following the month of initial issuance of the Certificates, or if
such 25th day
is not a Business Day, the Business Day following such 25th
day.
Distribution Date Statement: As defined in Section 4.03(a).
Document Transfer Event: The 60th day following the day on
which
either (i) Wells Fargo Bank is no longer the Servicer of any of the
Mortgage
Loans or (ii) the senior, unsecured long-term debt rating of Wells
Fargo &
Company is less than "BBB-" by Fitch.
Due Date: With respect to any Mortgage Loan, the day of the month
in
which the Monthly Payment on such Mortgage Loan is scheduled to be
paid.
Eligible Account: One or more accounts (i) that are maintained
with
a depository institution (which may be the Master Servicer) whose
long-term debt
obligations (or, in the case of a depository institution which is
part of a
holding company structure, the long-term debt obligations of such
parent holding
company) at the time of deposit therein are rated at least "AA" (or
the
equivalent) by each Rating Agency, (ii) the deposits in which are
fully insured
by the FDIC through either the Bank Insurance Fund or the Savings
Association
Insurance Fund, (iii) the deposits in which are insured by the FDIC
through
either the Bank Insurance Fund or the Savings Association Insurance
Fund (to the
limit established by the FDIC) and the uninsured deposits in which
accounts are
otherwise secured, as evidenced by an Opinion of Counsel delivered
to the
Trustee, such that the Trustee, on behalf of the Certificateholders
has a claim
with respect to the funds in such accounts or a perfected first
security
interest against any collateral securing such funds that is
superior to claims
of any other depositors or creditors of the depository institution
with which
such accounts are maintained, (iv) that are trust accounts
maintained with the
trust department of a federal or state chartered depository
institution or trust
company acting in its fiduciary capacity or (v) such other account
that is
acceptable to each of the Rating Agencies and would not cause the
Trust Estate
to fail to qualify as two separate REMICs or result in the
imposition of any
federal tax on either of the Upper-Tier REMIC or the Lower-Tier
REMIC.
Eligible Investments: At any time, any one or more of the
following
obligations and securities which shall mature not later than the
Business Day
preceding the Distribution Date next succeeding the date of such
investment,
provided that such investments continue to qualify as "cash flow
investments" as
defined in Code Section 860G(a)(6):
(i) obligations of the United States of America or any agency
thereof,
provided such obligations are backed by the full faith and
credit
of the
United States of America;
(ii) general obligations of or obligations guaranteed by any
state
of the
United States of America or the District of Columbia receiving
the
highest
short-term or highest long-term rating of each Rating Agency,
or
such lower
rating as would not result in the downgrading or withdrawal of
the rating
then assigned to any of the Certificates by either Rating
Agency or
result in any of such rated Certificates being placed on credit
review
status (other than for possible upgrading) by either Rating
Agency;
(iii) commercial or finance company paper which is then rated in
the
highest
long-term commercial or finance company paper rating category
of
each
Rating Agency or the highest short-term rating category of each
Rating
Agency, or such lower rating category as would not result in
the
downgrading or withdrawal of the rating then assigned to any of
the
Certificates by either Rating Agency or result in any of such
rated
Certificates being placed on credit review status (other than for
possible
upgrading)
by either Rating Agency;
(iv) certificates of deposit, demand or time deposits, federal
funds
or
banker's acceptances issued by any depository institution or
trust
company
incorporated under the laws of the United States or of any
state
thereof
and subject to supervision and examination by federal and/or
state
banking
authorities, provided that the commercial paper and/or debt
obligations of such depository institution or trust company (or in
the
case of
the principal depository institution in a holding company
system,
the
commercial paper or debt obligations of such holding company) are
then
rated in
the highest short-term or the highest long-term rating category
for such
securities of each of the Rating Agencies, or such lower rating
categories
as would not result in the downgrading or withdrawal of the
rating
then assigned to any of the Certificates by either Rating Agency
or
result in
any of such rated Certificates being placed on credit review
status
(other than for possible upgrading) by either Rating Agency;
(v) guaranteed reinvestment agreements issued by any bank,
insurance
company or
other corporation acceptable to each Rating Agency at the time
of the
issuance of such agreements;
(vi) repurchase agreements on obligations with respect to any
security
described in clauses (i) or (ii) above or any other security
issued or
guaranteed by an agency or instrumentality of the United States
of
America, in either case entered into with a depository institution
or
trust
company (acting as principal) described in (iv) above;
(vii) securities (other than stripped bonds or stripped coupon
securities) bearing interest or sold at a discount issued by
any
corporation incorporated under the laws of the United States of
America or
any state
thereof which, at the time of such investment or contractual
commitment
providing for such investment, are then rated in the highest
short-term
or the highest long-term rating category by each Rating Agency,
or in such
lower rating category as would not result in the downgrading or
withdrawal
of the rating then assigned to any of the Certificates by
either
Rating Agency or result in any of such rated Certificates being
placed on
credit review status (other than for possible upgrading) by
either
Rating Agency;
(viii) such other investments acceptable to each Rating Agency
as
would not
result in the downgrading of the rating then assigned to the
Certificates by either Rating Agency or result in any of such
rated
Certificates being placed on credit review status (other than for
possible
upgrading)
by either Rating Agency; and
(ix) any mutual fund, money market fund, common trust fund or
other
pooled
investment vehicle, the assets of which are limited to
instruments
that
otherwise would constitute Eligible Investments hereunder,
including
any such
fund that is managed by the Trustee or Master Servicer or any
affiliate
of the Trustee or Master Servicer or for which the Trustee or
Master
Servicer or any of its affiliates acts as an adviser as long as
such fund
is rated in at least the highest rating category by each Rating
Agency.
In no event shall an instrument be an Eligible Investment if
such
instrument evidences either (i) a right to receive only interest
payments with
respect to the obligations underlying such instrument, or (ii) both
principal
and interest payments derived from obligations underlying such
instrument and
the interest and principal payments with respect to such instrument
provide a
yield to maturity at the date of investment of greater than 120% of
the yield to
maturity at par of such underlying obligations.
ERISA: The Employee Retirement Income Security Act of 1974, as
amended.
ERISA Prohibited Holder: As defined in Section 5.02(d).
Errors and Omissions Policy: As defined in each of the
Servicing
Agreements.
Event of Default: Any of the events specified in Section 7.01.
Exchange Act: The Securities Exchange Act of 1934, as amended.
FDIC: The Federal Deposit Insurance Corporation or any
successor
thereto.
Fidelity Bond: As defined in each of the Servicing Agreements.
Final
Distribution Date: The Distribution Date on which the final
distribution in respect of the Certificates is made pursuant to
Section 9.01.
Final Scheduled Maturity Date: The Final Scheduled Maturity Date
for
each Class of Certificates is January 25, 2035, which corresponds
to the "latest
possible maturity date" for purposes of Section 860G(a)(1) of the
Internal
Revenue Code of 1986, as amended.
Fitch: Fitch Ratings, or its successor in interest.
Full Unscheduled Principal Receipt: Any Unscheduled Principal
Receipt with respect to a Mortgage Loan (i) in the amount of the
outstanding
principal balance of such Mortgage Loan and resulting in the full
satisfaction
of such Mortgage Loan or (ii) representing Liquidation Proceeds
other than
Partial Liquidation Proceeds.
Gross Margin: As to each Mortgage Loan, the fixed percentage
set
forth in the related Mortgage Note and indicated in the Mortgage
Loan Schedule
as the "Gross Margin," which percentage is added to the Index on
each Adjustment
Date to determine (subject to rounding, the Periodic Cap and the
Rate Ceiling)
the Mortgage Interest Rate on such Mortgage Loan until the next
Adjustment Date.
Group: The Group I-A Certificates, the Group II-A Certificates
or
the Group III-A Certificates.
Group Subordinate Amount: Any of the Group I Subordinate
Amount,
Group II Subordinate Amount or Group III Subordinate Amount.
Group A Principal Balance: Any of the Group I-A Principal
Balance,
Group II-A Principal Balance or Group III-A Principal Balance.
Group I Adjusted Pool Amount: With respect to any Distribution
Date,
the aggregate of the Cut-Off Date Principal Balances of the Group I
Mortgage
Loans minus the sum of (i) all amounts in respect of principal
received in
respect of the Group I Mortgage Loans (including, without
limitation, amounts
received as Monthly Payments, Periodic Advances, Unscheduled
Principal Receipts
and Substitution Principal Amounts) and distributed to Holders of
the
Certificates on such Distribution Date and all prior Distribution
Dates, (ii)
the principal portion of all Liquidated Loan Losses incurred on
such Group I
Mortgage Loans for which the Liquidation Proceeds were received
from the Cut-Off
Date through the end of the Applicable Unscheduled Principal
Receipt Period with
respect to Full Unscheduled Principal Receipts for such
Distribution Date and
(iii) the principal portion of all Bankruptcy Losses (other than
Debt Service
Reductions) incurred on the Group I Mortgage Loans from the Cut-Off
Date through
the end of the period corresponding to the Applicable Unscheduled
Principal
Receipt Period with respect to Full Unscheduled Principal Receipts
for such
Distribution Date.
Group I Apportioned Principal Balance: As to any Distribution
Date
and any Class of Class B Certificates, an amount equal to the
product of (i) the
Principal Balance of the Class of Class B Certificates and (ii) a
fraction, the
numerator of which is the Group I Subordinate Amount and the
denominator of
which is the sum of the Group I Subordinate Amount, the Group II
Subordinate
Amount and the Group III Subordinate Amount.
Group I Class B Percentage: Any one of the Group I Class B-1
Percentage, Group I Class B-2 Percentage, Group I Class B-3
Percentage, Group I
Class B-4 Percentage, Group I Class B-5 Percentage or Group I Class
B-6
Percentage.
Group I Class B Prepayment Percentage: Any of the Group I Class
B-1
Prepayment Percentage, Group I Class B-2 Prepayment Percentage,
Group I Class
B-3 Prepayment Percentage, Group I Class B-4 Prepayment Percentage,
Group I
Class B-5 Prepayment Percentage or Group I Class B-6 Prepayment
Percentage.
Group I Class B-1 Percentage: As to any Distribution Date, the
percentage calculated by multiplying the Group I Subordinated
Percentage by a
fraction, the numerator of which is the Class B-1 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is the Class B Principal Balance.
Group I Class B-1 Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-1 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-1 Certificates
are the only
Class B Certificates eligible to receive such unscheduled
principal
distributions in accordance with Section 4.01(d)(i), the Group I
Class B-1
Prepayment Percentage for such unscheduled principal distributions
for such
Distribution Date will be one.
Group I Class B-2 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group I Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-2 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group I Class B-2 Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-2 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-2 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group I Class B-2 Prepayment Percentage for
such
unscheduled principal distributions for such Distribution Date will
be zero.
Group I Class B-3 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group I Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-3 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group I Class B-3 Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-3 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-3 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group I Class B-3 Prepayment Percentage for
such
unscheduled principal distributions for such Distribution Date will
be zero.
Group I Class B-4 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group I Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-4 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group I Class B-4 Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-4 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-4 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group I Class B-4 Prepayment Percentage for
such
unscheduled principal distributions for such Distribution Date will
be zero.
Group I Class B-5 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group I Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-5 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group I Class B-5
Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-5 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-5 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group I Class B-5 Prepayment Percentage for
such
unscheduled principal distributions for such Distribution Date will
be zero.
Group I Class B-6 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group I Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-6 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group I Class B-6 Prepayment Percentage: As to any Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group I Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-6 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-6 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group I Class B-6 Prepayment Percentage for
such
unscheduled principal distributions for such Distribution Date will
be zero.
Group I Mortgage Loans: Those Mortgage Loans listed on Exhibit
F-1A
attached hereto.
Group I Pool Balance: As to any Distribution Date, the
aggregate
Scheduled Principal Balances of all Group I Mortgage Loans that
were Outstanding
Mortgage Loans on the Due Date in the month preceding the month of
such
Distribution Date.
Group I Pool Distribution Amount: As of any Distribution Date,
the
funds eligible for distribution to the Group I-A Certificates and
Class B
Certificates on such Distribution Date, which shall be the sum of
(i) all
previously undistributed payments or other receipts on account of
principal and
interest on or in respect of the Group I Mortgage Loans (including,
without
limitation, the proceeds of any repurchase of a Group I Mortgage
Loan by the
Seller and any Substitution Principal Amount) received by the
Master Servicer
with respect to the applicable Remittance Date in the month of such
Distribution
Date and any Unscheduled Principal Receipts received by the Master
Servicer on
or prior to the Business Day preceding such Distribution Date, (ii)
all Periodic
Advances made with respect to Group I Mortgage Loans by a Servicer
pursuant to
the related Servicing Agreement or Periodic Advances with respect
to Group I
Mortgage Loans made by the Master Servicer or the Trustee pursuant
to Section
3.03, (iii) any remaining Reimbursement Amount as provided in
Section 4.01(a)
and (iv) all other amounts (including any Insurance Proceeds and
Compensating
Interest) with respect to a Group I Mortgage Loan required to be
placed in the
Certificate Account by the Servicer on or before the applicable
Remittance Date
or by the Master Servicer or the Trustee on or prior to the
Distribution Date,
but excluding the following:
(a) amounts received as late payments of principal or interest
with
respect to
a Group I Mortgage Loan and respecting which the Master
Servicer
or the Trustee has made one or more unreimbursed Periodic
Advances;
(b) the portion of Liquidation Proceeds used to reimburse any
unreimbursed Periodic Advances with respect to a Group I Mortgage
Loan by
the Master
Servicer or the Trustee;
(c) that portion of each payment of interest on a particular Group
I
Mortgage
Loan which represent (i) the applicable Servicing Fee and (ii)
the Master
Servicing Fee;
(d) all amounts representing scheduled payments of principal
and
interest
on Group I Mortgage Loans due after the Due Date occurring in
the
month in
which such Distribution Date occurs;
(e) all Unscheduled Principal Receipts received by the
Servicers
with
respect to Group I Mortgage Loans after the Applicable
Unscheduled
Principal
Receipt Period relating to the Distribution Date for the
applicable
type of Unscheduled Principal Receipt, and all related payments
of
interest on such amounts;
(f) all
repurchase proceeds with respect to Group I Mortgage Loans
repurchased by the Seller pursuant to Section 2.02, 2.03 or 3.08 on
or
following
the Determination Date in the month in which such Distribution
Date
occurs and the difference between the unpaid principal balance of
a
Group I
Mortgage Loan substituted for a Group I Mortgage Loan pursuant
to
Section
2.02, 2.03 or 2.06 on or following the Determination Date in
the
month in
which such Distribution Date occurs and the unpaid principal
balance of
such Group I Mortgage Loan;
(g) that portion of Liquidation Proceeds and REO Proceeds with
respect to
any Group I Mortgage Loan which represents any unpaid Servicing
Fee or
Master Servicing Fee;
(h) all income from Eligible Investments that is held in the
Certificate Account for the account of the Master Servicer;
(i) Liquidation Profits in respect of Group I Mortgage Loans;
(j) Month End Interest in respect of Group I Mortgage Loans;
(k) all amounts reimbursable to a Servicer for PMI Advances in
respect of
Group I Mortgage Loans; and
(l) all other amounts permitted to be withdrawn from the
Certificate
Account,
to the extent not covered by clauses (a) through (k) above, or
not
required to be deposited in the Certificate Account under this
Agreement.
Group I Subordinate Amount: As to any Distribution Date, the
excess
of (i) the Group I Pool Balance over (ii) the Group I-A Principal
Balance.
Group I Subordinated Percentage: As to any Distribution Date,
the
percentage which is the difference between 100% and the Group I-A
Percentage for
such date.
Group I Subordinated Prepayment Percentage: As to any
Distribution
Date, the percentage which is the difference between 100% and the
Group I-A
Prepayment Percentage for such date.
Group II Adjusted Pool Amount: With respect to any Distribution
Date, the aggregate of the Cut-Off Date Principal Balances of the
Group II
Mortgage Loans minus the sum of (i) all amounts in respect of
principal received
in respect of the Group II Mortgage Loans (including, without
limitation,
amounts received as Monthly Payments, Periodic Advances,
Unscheduled Principal
Receipts and Substitution Principal Amounts) and distributed to
Holders of the
Certificates on such Distribution Date and all prior Distribution
Dates, (ii)
the principal portion of all Liquidated Loan Losses incurred on
such Group II
Mortgage Loans for which the Liquidation Proceeds were received
from the Cut-Off
Date through the end of Applicable Unscheduled Principal Receipt
Period with
respect to Full Unscheduled Principal Receipts for such
Distribution Date and
(iii) the principal portion of all Bankruptcy Losses (other than
Debt Service
Reductions) incurred on the Group II Mortgage Loans from the
Cut-Off Date
through the end of the period corresponding to the Applicable
Unscheduled
Principal Receipt Period with respect to Full Unscheduled Principal
Receipts for
such Distribution Date.
Group II Apportioned Principal Balance: As to any Distribution
Date
and any Class of Class B Certificates, an amount equal to the
product of (i) the
Principal Balance of the Class of Class B Certificates and (ii) a
fraction, the
numerator of which is the Group II Subordinate Amount and the
denominator of
which is the sum of the Group I Subordinate Amount, Group II
Subordinate Amount
and Group III Subordinate Amount.
Group II Class B Percentage: Any one of the Group II Class B-1
Percentage, Group II Class B-2 Percentage, Group II Class B-3
Percentage, Group
II Class B-4 Percentage, Group II Class B-5 Percentage or Group II
Class B-6
Percentage.
Group II Class B Prepayment Percentage: Any of the Group II
Class
B-1 Prepayment Percentage, Group II Class B-2 Prepayment
Percentage, Group II
Class B-3 Prepayment Percentage, Group II Class B-4 Prepayment
Percentage, Group
II Class B-5 Prepayment Percentage or Group II Class B-6 Prepayment
Percentage.
Group II Class B-1 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-1 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-1 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-1 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-1 Certificates
are the only
Class B Certificates eligible to receive such unscheduled
principal
distributions in accordance with Section 4.01(d)(i), the Group II
Class B-1
Prepayment Percentage for such unscheduled principal distributions
for such
Distribution Date will be one.
Group II Class B-2 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-2 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-2 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-2 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-2 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group II Class B-2 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group II Class B-3 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-3 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-3 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-3 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-3 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group II Class B-3 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group II Class B-4 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-4 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-4 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-4 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-4 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group II Class B-4 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group II Class B-5 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-5 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-5 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-5 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-5 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group II Class B-5 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group II
Class B-6 Percentage: As to any Distribution Date, the
percentage calculated by multiplying (i) the Group II Subordinated
Percentage by
(ii) a fraction, the numerator of which is the Class B-6 Principal
Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group II Class B-6 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group II Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-6 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-6 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group II Class B-6 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group II Mortgage Loans: Those Mortgage Loans listed on Exhibit
F-1B
attached hereto.
Group II Pool Balance: As to any Distribution Date, the
aggregate
Scheduled Principal Balances of all Group II Mortgage Loans that
were
Outstanding Mortgage Loans on the Due Date in the month preceding
the month of
such Distribution Date.
Group II Pool Distribution Amount: As of any Distribution Date,
the
funds eligible for distribution to the Group II-A Certificates and
Class B
Certificates on such Distribution Date, which shall be the sum of
(i) all
previously undistributed payments or other receipts on account of
principal and
interest on or in respect of the Group II Mortgage Loans
(including, without
limitation, the proceeds of any repurchase of a Group II Mortgage
Loan by the
Seller and any Substitution Principal Amount) received by the
Master Servicer
with respect to the applicable Remittance Date in the month of such
Distribution
Date and any Unscheduled Principal Receipts received by the Master
Servicer on
or prior to the Business Day preceding such Distribution Date, (ii)
all Periodic
Advances made with respect to Group II Mortgage Loans by a Servicer
pursuant to
the related Servicing Agreement or Periodic Advances with respect
to Group II
Mortgage Loans made by the Master Servicer or the Trustee pursuant
to Section
3.03, (iii) any remaining Reimbursement Amount as provided in
Section 4.01(a)
and (iv) all other amounts (including any Insurance Proceeds and
Compensating
Interest) with respect to a Group II Mortgage Loan required to be
placed in the
Certificate Account by the Servicer on or before the applicable
Remittance Date
or by the Master Servicer or the Trustee on or prior to the
Distribution Date,
but excluding the following:
(a) amounts received as late payments of principal or interest
with
respect to
a Group II Mortgage Loan and respecting which the Master
Servicer
or the Trustee has made one or more unreimbursed Periodic
Advances;
(b) the portion of Liquidation Proceeds used to reimburse any
unreimbursed Periodic Advances with respect to a Group II Mortgage
Loan by
the Master
Servicer or the Trustee;
(c) that portion of each payment of interest on a particular
Group
II
Mortgage Loan which represents (i) the applicable Servicing Fee
and
(ii) the
Master Servicing Fee;
(d) all amounts representing scheduled payments of principal
and
interest
on Group II Mortgage Loans due after the Due Date occurring in
the month
in which such Distribution Date occurs;
(e) all Unscheduled Principal Receipts received by the
Servicers
with
respect to Group II Mortgage Loans after the Applicable
Unscheduled
Principal
Receipt Period relating to the Distribution Date for the
applicable
type of Unscheduled Principal Receipt, and all related payments
of
interest on such amounts;
(f) all repurchase proceeds with respect to Group II Mortgage
Loans
repurchased by the Seller pursuant to Section 2.02, 2.03 or 3.08 on
or
following
the Determination Date in the month in which such Distribution
Date
occurs and the difference between the unpaid principal balance of
a
Group II
Mortgage Loan substituted for a Group II Mortgage Loan pursuant
to Section
2.02, 2.03 or 2.06 on or following the Determination Date in
the month
in which such Distribution Date occurs and the unpaid principal
balance of
such Group II Mortgage Loan;
(g) that portion of Liquidation Proceeds and REO Proceeds with
respect to
any Group II Mortgage Loan which represents any unpaid
Servicing
Fee or Master Servicing Fee;
(h) all income from Eligible Investments that is held in the
Certificate Account for the account of the Master Servicer;
(i) Liquidation Profits in respect of Group II Mortgage Loans;
(j) Month End Interest in respect of Group II Mortgage Loans;
(k) all amounts reimbursable to a Servicer for PMI Advances in
respect of
Group II Mortgage Loans; and
(l) all other amounts permitted to be withdrawn from the
Certificate
Account,
to the extent not covered by clauses (a) through (k) above, or
not
required to be deposited in the Certificate Account under this
Agreement.
Group II Subordinate Amount: As to any Distribution Date, the
excess
of (i) the Group II Pool Balance over (ii) the Group II-A Principal
Balance.
Group II Subordinated Percentage: As to any Distribution Date,
the
percentage which is the difference between 100% and the Group II-A
Percentage
for such date.
Group II Subordinated Prepayment Percentage: As to any
Distribution
Date, the percentage which is the difference between 100% and the
Group II-A
Prepayment Percentage for such date.
Group III Adjusted Pool Amount: With respect to any
Distribution
Date, the aggregate of the Cut-Off Date Principal Balances of the
Group III
Mortgage Loans minus the sum of (i) all amounts in respect of
principal received
in respect of the Group III Mortgage Loans (including, without
limitation,
amounts received as Monthly Payments, Periodic Advances,
Unscheduled Principal
Receipts and Substitution Principal Amounts) and distributed to
Holders of the
Certificates on such Distribution Date and all prior Distribution
Dates, (ii)
the principal portion of all Liquidated Loan Losses incurred on
such Group III
Mortgage Loans for which the Liquidation Proceeds were received
from the Cut-Off
Date through the end of Applicable Unscheduled Principal Receipt
Period with
respect to Full Unscheduled Principal Receipts for such
Distribution Date and
(iii) the principal portion of all Bankruptcy Losses (other than
Debt Service
Reductions) incurred on the Group III Mortgage Loans from the
Cut-Off Date
through the end of the period corresponding to the Applicable
Unscheduled
Principal Receipt Period with respect to Full Unscheduled Principal
Receipts for
such Distribution Date.
Group III Apportioned Principal Balance: As to any Distribution
Date
and any Class of Class B Certificates, an amount equal to the
product of (i) the
Principal Balance of the Class of Class B Certificates and (ii) a
fraction, the
numerator of which is the Group III Subordinate Amount and the
denominator of
which is the sum of the Group I Subordinate Amount, Group II
Subordinate Amount
and Group III Subordinate Amount.
Group III Class B Percentage: Any one of the Group III Class
B-1
Percentage, Group III Class B-2 Percentage, Group III Class B-3
Percentage,
Group III Class B-4 Percentage, Group III Class B-5 Percentage or
Group III
Class B-6 Percentage.
Group III Class B Prepayment Percentage: Any of the Group III
Class
B-1 Prepayment Percentage, Group III Class B-2 Prepayment
Percentage, Group III
Class B-3 Prepayment Percentage, Group III Class B-4 Prepayment
Percentage,
Group III Class B-5 Prepayment Percentage or Group III Class B-6
Prepayment
Percentage.
Group III Class B-1 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-1
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-1 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-1 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-1 Certificates
are the only
Class B Certificates eligible to receive such unscheduled
principal
distributions in accordance with Section 4.01(d)(i), the Group III
Class B-1
Prepayment Percentage for such unscheduled principal distributions
for such
Distribution Date will be one.
Group III Class B-2 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-2
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-2 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-2 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-2 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group III Class B-2 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group III Class B-3 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-3
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-3 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-3 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-3 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group III Class B-3 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group III Class B-4 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-4
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-4 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-4 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-4 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group III Class B-4 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group III Class B-5 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-5
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-5 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-5 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-5 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group III Class B-5 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group III Class B-6 Percentage: As to any Distribution Date,
the
percentage calculated by multiplying (i) the Group III Subordinated
Percentage
by (ii) a fraction, the numerator of which is the Class B-6
Principal Balance
(determined as of the Determination Date preceding such
Distribution Date) and
the denominator of which is the Class B Principal Balance.
Group III Class B-6 Prepayment Percentage: As to any
Distribution
Date, except as set forth in the next sentence, the percentage
calculated by
multiplying (i) the Group III Subordinated Prepayment Percentage by
(ii) a
fraction, the numerator of which is the Class B-6 Principal Balance
(determined
as of the Determination Date preceding such Distribution Date) and
the
denominator of which is (a) for the purpose of allocating
Liquidation Proceeds
(other than Partial Liquidation Proceeds), the Class B Principal
Balance and (b)
for the purpose of allocating all other unscheduled principal
distributions, the
Principal Balances of the Classes of Class B Certificates eligible
to receive
such unscheduled principal distributions for such Distribution Date
in
accordance with the provisions of Section 4.01(d). Except as set
forth in
Section 4.01(d)(ii), in the event that the Class B-6 Certificates
are not
eligible to receive such unscheduled principal distributions in
accordance with
Section 4.01(d)(i), the Group III Class B-6 Prepayment Percentage
for such
unscheduled principal distributions for such Distribution Date will
be zero.
Group III Mortgage Loans: Those Mortgage Loans listed on
Exhibit
F-1C attached hereto.
Group III Pool Balance: As to any Distribution Date, the
aggregate
Scheduled Principal Balances of all Group III Mortgage Loans that
were
Outstanding Mortgage Loans on the Due Date in the month preceding
the month of
such Distribution Date.
Group III Pool Distribution Amount: As of any Distribution Date,
the
funds eligible for distribution to the Group III-A Certificates and
Class B
Certificates on such Distribution Date, which shall be the sum of
(i) all
previously undistributed payments or other receipts on account of
principal and
interest on or in respect of the Group III Mortgage Loans
(including, without
limitation, the proceeds of any repurchase of a Group III Mortgage
Loan by the
Seller and any Substitution Principal Amount) received by the
Master Servicer
with respect to the applicable Remittance Date in the month of such
Distribution
Date and any Unscheduled Principal Receipts received by the Master
Servicer on
or prior to the Business Day preceding such Distribution Date, (ii)
all Periodic
Advances made with respect to Group III Mortgage Loans by a
Servicer pursuant to
the related Servicing Agreement or Periodic Advances with respect
to Group III
Mortgage Loans made by the Master Servicer or the Trustee pursuant
to Section
3.03, (iii) any remaining Reimbursement Amount as provided in
Section 4.01(a)
and (iv) all other amounts (including any Insurance Proceeds and
Compensating
Interest) with respect to a Group III Mortgage Loan required to be
placed in the
Certificate Account by the Servicer on or before the applicable
Remittance Date
or by the Master Servicer or the Trustee on or prior to the
Distribution Date,
but excluding the following:
(a) amounts received as late payments of principal or interest
with
respect to
a Group III Mortgage Loan and respecting which the Master
Servicer
or the Trustee has made one or more unreimbursed Periodic
Advances;
(b) the portion of Liquidation Proceeds used to reimburse any
unreimbursed Periodic Advances with respect to a Group III Mortgage
Loan
by the
Master Servicer or the Trustee;
(c) that portion of each payment of interest on a particular
Group
III
Mortgage Loan which represents (i) the applicable Servicing Fee
and
(ii) the
Master Servicing Fee;
(d) all amounts representing scheduled payments of principal
and
interest
on Group III Mortgage Loans due after the Due Date occurring in
the month
in which such Distribution Date occurs;
(e) all Unscheduled Principal Receipts received by the
Servicers
with
respect to Group III Mortgage Loans after the Applicable
Unscheduled
Principal
Receipt Period relating to the Distribution Date for the
applicable
type of Unscheduled Principal Receipt, and all related payments
of
interest on such amounts;
(f) all repurchase proceeds with respect to Group III Mortgage
Loans
repurchased by the Seller pursuant to Section 2.02, 2.03 or 3.08 on
or
following
the Determination Date in the month in which such Distribution
Date
occurs and the difference between the unpaid principal balance of
a
Group III
Mortgage Loan substituted for a Group III Mortgage Loan
pursuant
to Section
2.02, 2.03 or 2.06 on or following the Determination Date in
the month
in which such Distribution Date occurs and the unpaid principal
balance of
such Group III Mortgage Loan;
(g) that portion of Liquidation Proceeds and REO Proceeds with
respect to
any Group III Mortgage Loan which represents any unpaid
Servicing
Fee or Master Servicing Fee;
(h) all income from Eligible Investments that is held in the
Certificate Account for the account of the Master Servicer;
(i) Liquidation Profits in respect of Group III Mortgage Loans;
(j) Month End Interest in respect of Group III Mortgage Loans;
(k) all amounts reimbursable to a Servicer for PMI Advances in
respect of
Group III Mortgage Loans; and
(l) all other amounts permitted to be withdrawn from the
Certificate
Account,
to the extent not covered by clauses (a) through (k) above, or
not
required to be deposited in the Certificate Account under this
Agreement.
Group III Subordinate Amount: As to any Distribution Date, the
excess of (i) the Group III Pool Balance over (ii) the Group III-A
Principal
Balance.
Group III Subordinated Percentage: As to any Distribution Date,
the
percentage which is the difference between 100% and the Group III-A
Percentage
for such date.
Group III Subordinated Prepayment Percentage: As to any
Distribution
Date, the percentage which is the difference between 100% and the
Group III-A
Prepayment Percentage for such date.
Group I-A Certificate: Any Class I-A-1 Certificate.
Group I-A Distribution Amount: As to any Distribution Date and
any
Class of Group I-A Certificates, the amount distributable to such
Class of Group
I-A Certificates pursuant to Paragraphs first clause (A), second
clause (A) and
third clause (A) of Section 4.01(a)(i).
Group I-A Interest Accrual Amount: As to any Distribution Date,
the
sum of the Interest Accrual Amounts for the Group I-A Certificates
with respect
to such Distribution Date.
Group I-A Interest Percentage: As to any Distribution Date and
any
Class of Group I-A Certificates, the percentage calculated by
dividing the
Interest Accrual Amount of such Class (determined without regard to
clause (ii)
of the definition thereof) by the Group I-A Interest Accrual Amount
(determined
without regard to clause (ii) of the definition of each Interest
Accrual
Amount).
Group I-A Interest Shortfall Amount: As to any Distribution Date
and
any Class of Group I-A Certificates, any amount by which the
Interest Accrual
Amount of such Class with respect to such Distribution Date exceeds
the amount
distributed in respect of such Class on such Distribution Date
pursuant to
Paragraph first clause (A) of Section 4.01(a)(i).
Group I-A Loss Denominator: As to any Determination Date, an
amount
equal to the Group I-A Principal Balance.
Group I-A Loss Percentage: As to any Determination Date and any
Class of Group I-A Certificates, the percentage calculated by
dividing the
Principal Balance of such Class by the Group I-A Loss Denominator
(determined
without regard to any such Principal Balance of any Class of Group
I-A
Certificates not then outstanding), in each case determined as of
the preceding
Determination Date.
Group I-A Optimal Amount: As to any Distribution Date, the sum
for
such Distribution Date of (i) the Group I-A Interest Accrual
Amount, (ii) the
Aggregate Group I-A Unpaid Interest Shortfall and (iii) the Group
I-A Optimal
Principal Amount.
Group I-A Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as to each Group I Mortgage
Loan that is
an Outstanding Mortgage Loan, of:
(i) the Group I-A Percentage of the principal portion of the
Monthly
Payment
due on the Due Date occurring in the month of such Distribution
Date on
such Mortgage Loan;
(ii) the Group I-A Prepayment Percentage of all Unscheduled
Principal
Receipts (other than Recoveries) that were received by a
Servicer
with respect to such Mortgage Loan during the Applicable
Unscheduled Principal Receipt Period relating to such Distribution
Date
for each
applicable type of Unscheduled Principal Receipt;
(iii) the Group I-A Prepayment Percentage of the Scheduled
Principal
Balance of
such Mortgage Loan which, during the one month period ending on
the day
preceding the Determination Date such Distribution Date, was
repurchased by the Seller pursuant to Section 2.02 or 2.03; and
(iv) the Group I-A Percentage of the excess of the unpaid
principal
balance of
such Mortgage Loan substituted for a Mortgage Loan during the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date over the unpaid principal balance of such
Mortgage
Loan, less
the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the
Group I-A Prepayment Percentage of the Recovery for Loan Group
I
for such
Distribution Date.
Group I-A Percentage: As to any Distribution Date occurring on
or
prior to the Subordination Depletion Date, the lesser of (i) 100%
and (ii) the
percentage obtained by dividing the Group I-A Principal Balance
(determined as
of the Determination Date preceding such Distribution Date) by the
Group I Pool
Balance. As to any Distribution Date occurring subsequent to the
Subordination
Depletion Date, 100% or such lesser percentage which will cause the
Group I-A
Principal Balance to decline to zero following the distribution
made on such
Distribution Date.
Group I-A Prepayment Percentage: As to any Distribution Date to
and
including the Distribution Date in December 2009, 100%. As to any
Distribution
Date subsequent to December 2009 to and including the Distribution
Date in
December 2010, the Group I-A Percentage as of such Distribution
Date plus 70% of
the Group I Subordinated Percentage as of such Distribution Date.
As to any
Distribution Date subsequent to December 2010 to and including the
Distribution
Date in December 2011, the Group I-A Percentage as of such
Distribution Date
plus 60% of the Group I Subordinated Percentage as of such
Distribution Date. As
to any Distribution Date subsequent to December 2011 to and
including the
Distribution Date in December 2012, the Group I-A Percentage as of
such
Distribution Date plus 40% of the Group I Subordinated Percentage
as of such
Distribution Date. As to any Distribution Date subsequent to
December 2012 to
and including the Distribution Date in December 2013, the Group I-A
Percentage
as of such Distribution Date plus 20% of the Group I Subordinated
Percentage as
of such Distribution Date. As to any Distribution Date subsequent
to December
2013, the Group I-A Percentage as of such Distribution Date.
No reduction of the level of the Group I-A Prepayment
Percentage
shall occur on any Distribution Date unless, as of such
Distribution Date, (A)
the average outstanding principal balance on such Distribution Date
and for the
preceding five Distribution Dates of the Mortgage Loans in all Loan
Groups that
were delinquent 60 days or more (including for this purpose any
Mortgage Loans
in foreclosure and Mortgage Loans with respect to which the related
Mortgaged
Property has been acquired by the Trust Estate) does not exceed 50%
of the Class
B Principal Balance; and (B) cumulative Realized Losses on the
Mortgage Loans in
all Loan Groups do not exceed the following percentages of the
Original
Subordinated Principal Amount: (1) 30%, if such Distribution Date
occurs between
and including January 2010 and December 2010 (2) 35%, if such
Distribution Date
occurs between and including January 2011 and December 2011, (3)
40%, if such
Distribution Date occurs between and including January 2012 and
December 2012,
(4) 45%, if such Distribution Date occurs between and including
January 2013 and
December 2013, and (5) 50%, if such Distribution Date occurs during
or after
January 2014.
Notwithstanding the foregoing, with respect to any Distribution
Date
on which the preceding criteria are not met, the reduction of the
Group I-A
Prepayment Percentage described in the second through sixth
sentences of this
definition of Group I-A Prepayment Percentage shall not be
applicable with
respect to such Distribution Date. In such event, the Group I-A
Prepayment
Percentage for such Distribution Date will be determined in
accordance with the
applicable provision, as set forth in the first through fifth
sentences of this
definition, which was actually used to determine the Group I-A
Prepayment
Percentage for the Distribution Date occurring in the December
preceding such
Distribution Date (it being understood that for the purposes of
the
determination of the Group I-A Prepayment Percentage for the
current
Distribution Date, the current Group I-A Percentage and Group I
Subordinated
Percentage shall be utilized).
In addition, if on any Distribution Date, prior to giving effect
to
any distributions on such Distribution Date, (i) the Aggregate
Subordinated
Percentage is equal to or greater than twice the Aggregate
Subordinated
Percentage as of the Cut-Off Date, (ii) the average outstanding
principal
balance on such Distribution Date and for the preceding five
Distribution Dates
of the Mortgage Loans in all Loan Groups that were delinquent 60
days or more
(including for this purpose any Mortgage Loans in foreclosure and
Mortgage Loans
with respect to which the related Mortgaged Property has been
acquired by the
Trust Estate) does not exceed 50% of the Class B Principal Balance
and (iii)(A)
prior to the Distribution Date in January 2008, cumulative Realized
Losses on
the Mortgage Loans in all Loan Groups do not exceed 20% of the
Original
Subordinated Principal Amount, then the Group I-A Prepayment
Percentage for such
Distribution Date will equal the Group I-A Percentage for such
Distribution Date
plus 50% of the Group I Subordinated Percentage for such
Distribution Date or
(B) on or after the Distribution Date in January 2008, cumulative
Realized
Losses on the Mortgage Loans in all Loan Groups do not exceed 30%
of the
Original Subordinated Principal Amount, then the Group I-A
Prepayment Percentage
for such Distribution Date will equal the Group I-A Percentage for
such
Distribution Date.
Notwithstanding the foregoing, if on any Distribution Date, the
Aggregate Class A Percentage exceeds such percentage as of the
Cut-Off Date,
then the Group I-A Prepayment Percentage will equal 100%.
If on any Distribution Date the allocation to the Group I-A
Certificates of Unscheduled Principal Receipts and other amounts in
the
percentage required above would reduce the Group I-A Principal
Balance below
zero, the Group I-A Prepayment Percentage for such Distribution
Date will be
limited to the percentage necessary to reduce the Group I-A
Principal Balance to
zero. In addition, once the Group I-A Principal Balance has been
reduced to
zero, the Group I-A Prepayment Percentage will be 0%.
With respect to any Distribution Date on which the Group I-A
Prepayment Percentage is reduced below the Group I-A Prepayment
Percentage for
the prior Distribution Date, the Master Servicer shall certify to
the Trustee,
based upon information provided by each Servicer as to the Mortgage
Loans
serviced by it that the criteria set forth in this definition are
met.
Group I-A Principal Balance: As of any date, an amount equal to
the
sum of the Principal Balances for the Group I-A Certificates.
Group I-A Principal Distribution Amount: As to any Distribution
Date, the aggregate amount distributed in respect of the Classes of
Group I-A
Certificates pursuant to Paragraph third clause (A) of Section
4.01(a)(i).
Group I-A Shortfall Percentage: As to any Distribution Date and
any
Class of Group I-A Certificates, the percentage calculated by
dividing the Class
A Unpaid Interest Shortfall for such Class by the Aggregate Group
I-A Unpaid
Interest Shortfall, in each case determined as of the day preceding
the
applicable Distribution Date.
Group II-A Certificate: Any Class II-A-1, Class II-A-2, Class
II-A-3, Class II-A-R or Class II-A-LR Certificate.
Group II-A Distribution Amount: As to any Distribution Date and
any
Class of Group II-A Certificates, the amount distributable to such
Class of
Group II-A Certificates pursuant to Paragraphs first clause (B),
second clause
(B) and third clause (B) of Section 4.01(a)(i).
Group II-A Interest Accrual Amount: As to any Distribution Date,
the
sum of the Interest Accrual Amounts for the Classes of Group II-A
Certificates
with respect to such Distribution Date.
Group II-A Interest Percentage: As to any Distribution Date and
any
Class of Group II-A Certificates, the percentage calculated by
dividing the
Interest Accrual Amount of such Class (determined without regard to
clause (ii)
of the definition thereof) by the Group II-A Interest Accrual
Amount (determined
without regard to clause (ii) of the definition of each Interest
Accrual
Amount).
Group II-A Interest Shortfall Amount: As to any Distribution
Date
and any Class of Group II-A Certificates, any amount by which the
Interest
Accrual Amount of such Class with respect to such Distribution Date
exceeds the
amount distributed in respect of such Class on such Distribution
Date pursuant
to Paragraph first clause (B) of Section 4.01(a)(i).
Group II-A Loss Denominator: As to any Determination Date, an
amount
equal to the Group II-A Principal Balance.
Group II-A Loss Percentage: As to any Determination Date and
any
Class of Group II-A Certificates, the percentage calculated by
dividing the
Principal Balance of such Class by the Group II-A Loss Denominator
(determined
without regard to any such Principal Balance of any Class of Group
II-A
Certificates not then outstanding), in each case determined as of
the preceding
Determination Date.
Group II-A Optimal Amount: As to any Distribution Date, the sum
for
such Distribution Date of (i) the Group II-A Interest Accrual
Amount, (ii) the
Aggregate Group II-A Unpaid Interest Shortfall and (iii) the Group
II-A Optimal
Principal Amount.
Group II-A Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as to each Group II
Mortgage Loan that
is an Outstanding Mortgage Loan, of:
(i) the Group II-A Percentage of the principal portion of the
Monthly
Payment due on the Due Date occurring in the month of such
Distribution Date on such Mortgage Loan;
(ii) the Group II-A Prepayment Percentage of all Unscheduled
Principal
Receipts (other than Recoveries) that were received by a
Servicer
with respect to such Mortgage Loan during the Applicable
Unscheduled Principal Receipt Period relating to such Distribution
Date
for each
applicable type of Unscheduled Principal Receipt;
(iii) the Group II-A Prepayment Percentage of the Scheduled
Principal
Balance of such Mortgage Loan which, during the one month
period
ending on
the day preceding the Determination Date for such Distribution
Date, was
repurchased by the Seller pursuant to Section 2.02 or 2.03; and
(iv) the Group II-A Percentage of the excess of the unpaid
principal
balance of
such Mortgage Loan substituted for a Mortgage Loan during the
one month
period ending on the day preceding the Determination Date for
such
Distribution Date over the unpaid principal balance of such
Mortgage
Loan, less the
amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the
Group II-A Prepayment Percentage of the Recovery for Loan Group
II for
such Distribution Date.
Group II-A Percentage: As to any Distribution Date occurring on
or
prior to the Subordination Depletion Date, the lesser of (i) 100%
and (ii) the
percentage obtained by dividing the Group II-A Principal Balance
(determined as
of the Determination Date preceding such Distribution Date) by the
Group II Pool
Balance. As to any Distribution Date occurring subsequent to the
Subordination
Depletion Date, 100% or such lesser percentage which will cause the
Group II-A
Principal Balance to decline to zero following the distribution
made on such
Distribution Date.
Group II-A Prepayment Percentage: As to any Distribution Date to
and
including the Distribution Date in December 2009, 100%. As to any
Distribution
Date subsequent to December 2009 to and including the Distribution
Date in
December 2010, the Group II-A Percentage as of such Distribution
Date plus 70%
of the Group II Subordinated Percentage as of such Distribution
Date. As to any
Distribution Date subsequent to December 2010 to and including the
Distribution
Date in December 2011, the Group II-A Percentage as of such
Distribution Date
plus 60% of the Group II Subordinated Percentage as of such
Distribution Date.
As to any Distribution Date subsequent to December 2011 to and
including the
Distribution Date in December 2012, the Group II-A Percentage as of
such
Distribution Date plus 40% of the Group II Subordinated Percentage
as of such
Distribution Date. As to any Distribution Date subsequent to
December 2012 to
and including the Distribution Date in December 2013, the Group
II-A Percentage
as of such Distribution Date plus 20% of the Group II Subordinated
Percentage as
of such Distribution Date. As to any Distribution Date subsequent
to December
2013, the Group II-A Percentage as of such Distribution Date.
No reduction of the level of the Group II-A Prepayment
Percentage
shall occur on any Distribution Date unless, as of such
Distribution Date, (A)
the average outstanding principal balance on such Distribution Date
and for the
preceding five Distribution Dates of the Mortgage Loans in all Loan
Groups that
were delinquent 60 days or more (including for this purpose any
Mortgage Loans
in foreclosure and Mortgage Loans with respect to which the related
Mortgaged
Property has been acquired by the Trust Estate) does not exceed 50%
of the Class
B Principal Balance; and (B) cumulative Realized Losses on the
Mortgage Loans in
all Loan Groups do not exceed the following percentages of the
Original
Subordinated Principal Amount: (1) 30%, if such Distribution Date
occurs between
and including January 2010 and December 2010 (2) 35%, if such
Distribution Date
occurs between and including January 2011 and December 2011, (3)
40%, if such
Distribution Date occurs between and including January 2012 and
December 2012,
(4) 45%, if such Distribution Date occurs between and including
January 2013 and
December 2013, and (5) 50%, if such Distribution Date occurs during
or after
January 2014.
Notwithstanding the foregoing, with respect to any Distribution
Date
on which the preceding criteria are not met, the reduction of the
Group II-A
Prepayment Percentage described in the second through sixth
sentences of this
definition of Group II-A Prepayment Percentage shall not be
applicable with
respect to such Distribution Date. In such event, the Group II-A
Prepayment
Percentage for such Distribution Date will be determined in
accordance with the
applicable provision, as set forth in the first through fifth
sentences of this
definition, which was actually used to determine the Group II-A
Prepayment
Percentage for the Distribution Date occurring in the December
preceding such
Distribution Date (it being understood that for the purposes of
the
determination of the Group II-A Prepayment Percentage for the
current
Distribution Date, the current Group II-A Percentage and Group II
Subordinated
Percentage shall be utilized).
In addition, if on any Distribution Date, prior to giving effect
to
any distributions on such Distribution Date, (i) the Aggregate
Subordinated
Percentage is equal to or greater than twice the Aggregate
Subordinated
Percentage as of the Cut-Off Date, (ii) the average outstanding
principal
balance on such Distribution Date and for the preceding five
Distribution Dates
of the Mortgage Loans in all Loan Groups that were delinquent 60
days or more
(including for this purpose any Mortgage Loans in foreclosure and
Mortgage Loans
with respect to which the related Mortgaged Property has been
acquired by the
Trust Estate) does not exceed 50% of the Class B Principal Balance
and (iii)(A)
prior to the Distribution Date in January 2008, cumulative Realized
Losses on
the Mortgage Loans in all Loan Groups do not exceed 20% of the
Original
Subordinated Principal Amount, then the Group II-A Prepayment
Percentage for
such Distribution Date will equal the Group II-A Percentage for
such
Distribution Date plus 50% of the Group II Subordinated Percentage
for such
Distribution Date or (B) on or after the Distribution Date in
January 2008,
cumulative Realized Losses on the Mortgage Loans in all Loan Groups
do not
exceed 30% of the Original Subordinated Principal Amount, then the
Group II-A
Prepayment Percentage for such Distribution Date will equal the
Group II-A
Percentage for such Distribution Date.
Notwithstanding the foregoing, if on any Distribution Date, the
Aggregate Class A Percentage exceeds such percentage as of the
Cut-Off Date,
then the Group II-A Prepayment Percentage will equal 100%.
If on any Distribution Date the allocation to the Group II-A
Certificates of Unscheduled Principal Receipts and other amounts in
the
percentage required above would reduce the Group II-A Principal
Balance below
zero, the Group II-A Prepayment Percentage for such Distribution
Date will be
limited to the percentage necessary to reduce the Group II-A
Principal Balance
to zero. In addition, once the Group II-A Principal Balance has
been reduced to
zero, the Group II-A Prepayment Percentage will be 0%.
With respect to any Distribution Date on which the Group II-A
Prepayment Percentage is reduced below the Group II-A Prepayment
Percentage for
the prior Distribution Date, the Master Servicer shall certify to
the Trustee,
based upon information provided by each Servicer as to the Mortgage
Loans
serviced by it that the criteria set forth in this definition are
met.
Group II-A Principal Balance: As of any date, an amount equal to
the
sum of the Principal Balances for the Group II-A Certificates.
Group II-A Principal Distribution Amount: As to any
Distribution
Date, the aggregate amount distributed in respect of the Classes of
Group II-A
Certificates pursuant to Paragraph third clause (B) of Section
4.01(a)(i).
Group II-A Shortfall Percentage: As to any Distribution Date and
any
Class of Group II-A Certificates, the percentage calculated by
dividing the
Class A Unpaid Interest Shortfall for such Class by the Aggregate
Group II-A
Unpaid Interest Shortfall, in each case determined as of the day
preceding the
applicable Distribution Date.
Group III-A Certificate: Any Class III-A-1, Class III-A-2 or
Class
III-A-3 Certificate.
Group III-A Distribution Amount: As to any Distribution Date and
any
Class of Group III-A Certificates, the amount distributable to such
Class of
Group III-A Certificates pursuant to Paragraphs first clause (C),
second clause
(C) and third clause (C) of Section 4.01(a)(i).
Group III-A Interest Accrual Amount: As to any Distribution
Date,
the sum of the Interest Accrual Amounts for the Classes of Group
III-A
Certificates with respect to such Distribution Date.
Group III-A Interest Percentage: As to any Distribution Date and
any
Class of Group III-A Certificates, the percentage calculated by
dividing the
Interest Accrual Amount of such Class (determined without regard to
clause (ii)
of the definition thereof) by the Group III-A Interest Accrual
Amount
(determined without regard to clause (ii) of the definition of each
Interest
Accrual Amount).
Group III-A Interest Shortfall Amount: As to any Distribution
Date
and any Class of Group III-A Certificates, any amount by which the
Interest
Accrual Amount of such Class with respect to such Distribution Date
exceeds the
amount distributed in respect of such Class on such Distribution
Date pursuant
to Paragraph first clause (C) of Section 4.01(a)(i).
Group III-A Loss Denominator: As to any Determination Date, an
amount equal to the Group III-A Principal Balance.
Group III-A Loss Percentage: As to any Determination Date and
any
Class of Group III-A Certificates, the percentage calculated by
dividing the
Principal Balance of such Class by the Group III-A Loss Denominator
(determined
without regard to any such Principal Balance of any Class of Group
III-A
Certificates not then outstanding), in each case determined as of
the preceding
Determination Date.
Group III-A Optimal Amount: As to any Distribution Date, the sum
for
such Distribution Date of (i) the Group III-A Interest Accrual
Amount, (ii) the
Aggregate Group III-A Unpaid Interest Shortfall and (iii) the Group
III-A
Optimal Principal Amount.
Group III-A Optimal Principal Amount: As to any Distribution
Date,
an amount equal to the sum of (I) the sum, as to each Group III
Mortgage Loan
that is an Outstanding Mortgage Loan, of:
(i) the Group III-A Percentage of the principal portion of the
Monthly
Payment due on the Due Date occurring in the month of such
Distribution Date on such Mortgage Loan;
(ii) the Group III-A Prepayment Percentage of all Unscheduled
Principal
Receipts (other than Recoveries) that were received by a
Servicer
with respect to such Mortgage Loan during the Applicable
Unscheduled Principal Receipt Period relating to such Distribution
Date
for each
applicable type of Unscheduled Principal Receipt;
(iii) the Group III-A Prepayment Percentage of the Scheduled
Principal
Balance of such Mortgage Loan which, during the one month
period
ending on
the day preceding the Determination Date for such Distribution
Date, was
repurchased by the Seller pursuant to Section 2.02 or 2.03; and
(iv) the Group III-A Percentage of the excess of the unpaid
principal
balance of such Mortgage Loan substituted for a Mortgage Loan
during the
one month period ending on the day preceding the Determination
Date for
such Distribution Date over the unpaid principal balance of
such
Mortgage
Loan, less the amount allocable to the principal portion of any
unreimbursed Periodic Advances previously made by the applicable
Servicer,
the Master
Servicer or the Trustee in respect of such Mortgage Loan; and
(II) the
Group III-A Prepayment Percentage of the Recovery for Loan
Group
III for
such Distribution Date.
Group III-A Percentage: As to any Distribution Date occurring on
or
prior to the Subordination Depletion Date, the lesser of (i) 100%
and (ii) the
percentage obtained by dividing the Group III-A Principal Balance
(determined as
of the Determination Date preceding such Distribution Date) by the
Group III
Pool Balance. As to any Distribution Date occurring subsequent to
the
Subordination Depletion Date, 100% or such lesser percentage which
will cause
the Group III-A Principal Balance to decline to zero following the
distribution
made on such Distribution Date.
Group III-A Prepayment Percentage: As to any Distribution Date
to
and including the Distribution Date in December 2009, 100%. As to
any
Distribution Date subsequent to December 2009 to and including the
Distribution
Date in December 2010, the Group III-A Percentage as of such
Distribution Date
plus 70% of the Group III Subordinated Percentage as of such
Distribution Date.
As to any Distribution Date subsequent to December 2010 to and
including the
Distribution Date in December 2011, the Group III-A Percentage as
of such
Distribution Date plus 60% of the Group III Subordinated Percentage
as of such
Distribution Date. As to any Distribution Date subsequent to
December 2011 to
and including the Distribution Date in December 2012, the Group
III-A Percentage
as of such Distribution Date plus 40% of the Group III Subordinated
Percentage
as of such Distribution Date. As to any Distribution Date
subsequent to December
2012 to and including the Distribution Date in December 2013, the
Group III-A
Percentage as of such Distribution Date plus 20% of the Group III
Subordinated
Percentage as of such Distribution Date. As to any Distribution
Date subsequent
to December 2013, the Group III-A Percentage as of such
Distribution Date.
No reduction of the level of the Group III-A Prepayment
Percentage
shall occur on any Distribution Date unless, as of such
Distribution Date, (A)
the average outstanding principal balance on such Distribution Date
and for the
preceding five Distribution Dates of the Mortgage Loans in all Loan
Groups that
were delinquent 60 days or more (including for this purpose any
Mortgage Loans
in foreclosure and Mortgage Loans with respect to which the related
Mortgaged
Property has been acquired by the Trust Estate) does not exceed 50%
of the Class
B Principal Balance; and (B) cumulative Realized Losses on the
Mortgage Loans in
all Loan Groups do not exceed the following percentages of the
Original
Subordinated Principal Amount: (1) 30%, if such Distribution Date
occurs between
and including January 2010 and December 2010 (2) 35%, if such
Distribution Date
occurs between and including January 2011 and December 2011, (3)
40%, if such
Distribution Date occurs between and including January 2012 and
December 2012,
(4) 45%, if such Distribution Date occurs between and including
January 2013 and
December 2013, and (5) 50%, if such Distribution Date occurs during
or after
January 2014.
Notwithstanding the foregoing, with respect to any Distribution
Date
on which the preceding criteria are not met, the reduction of the
Group III-A
Prepayment Percentage described in the second through sixth
sentences of this
definition of Group III-A Prepayment Percentage shall not be
applicable with
respect to such Distribution Date. In such event, the Group III-A
Prepayment
Percentage for such Distribution Date will be determined in
accordance with the
applicable provision, as set forth in the first through fifth
sentences of this
definition, which was actually used to determine the Group III-A
Prepayment
Percentage for the Distribution Date occurring in the December
preceding such
Distribution Date (it being understood that for the purposes of
the
determination of the Group III-A Prepayment Percentage for the
current
Distribution Date, the current Group III-A Percentage and Group III
Subordinated
Percentage shall be utilized).
In addition, if on any Distribution Date, prior to giving effect
to
any distributions on such Distribution Date, (i) the Aggregate
Subordinated
Percentage is equal to or greater than twice the Aggregate
Subordinated
Percentage as of the Cut-Off Date, (ii) the average outstanding
principal
balance on such Distribution Date and for the preceding five
Distribution Dates
of the Mortgage Loans in all Loan Groups that were delinquent 60
days or more
(including for this purpose any Mortgage Loans in foreclosure and
Mortgage Loans
with respect to which the related Mortgaged Property has been
acquired by the
Trust Estate) does not exceed 50% of the Class B Principal Balance
and (iii)(A)
prior to the Distribution Date in January 2008, cumulative Realized
Losses on
the Mortgage Loans in all Loan Groups do not exceed 20% of the
Original
Subordinated Principal Amount, then the Group III-A Prepayment
Percentage for
such Distribution Date will equal the Group III-A Percentage for
such
Distribution Date plus 50% of the Group III Subordinated Percentage
for such
Distribution Date or (B) on or after the Distribution Date in
January 2008,
cumulative Realized Losses on the Mortgage Loans in all Loan Groups
do not
exceed 30% of the Original Subordinated Principal Amount, then the
Group III-A
Prepayment Percentage for such Distribution Date will equal the
Group III-A
Percentage for such Distribution Date.
Notwithstanding the foregoing, if on any Distribution Date, the
Aggregate Class A Percentage exceeds such percentage as of the
Cut-Off Date,
then the Group III-A Prepayment Percentage will equal 100%.
If on any Distribution Date the allocation to the Group III-A
Certificates of Unscheduled Principal Receipts and other amounts in
the
percentage required above would reduce the Group III-A Principal
Balance below
zero, the Group III-A Prepayment Percentage for such Distribution
Date will be
limited to the percentage necessary to reduce the Group III-A
Principal Balance
to zero. In addition, once the Group III-A Principal Balance has
been reduced to
zero, the Group III-A Prepayment Percentage will be 0%.
With respect to any Distribution Date on which the Group III-A
Prepayment Percentage is reduced below the Group III-A Prepayment
Percentage for
the prior Distribution Date, the Master Servicer shall certify to
the Trustee,
based upon information provided by each Servicer as to the Mortgage
Loans
serviced by it that the criteria set forth in this definition are
met.
Group III-A Principal Balance: As of any date, an amount equal
to
the sum of the Principal Balances for the Group III-A
Certificates.
Group III-A Principal Distribution Amount: As to any
Distribution
Date, the aggregate amount distributed in respect of the Classes of
Group III-A
Certificates pursuant to Paragraph third clause (C) of Section
4.01(a)(i).
Group III-A Shortfall Percentage: As to any Distribution Date
and
any Class of Group III-A Certificates, the percentage calculated by
dividing the
Class A Unpaid Interest Shortfall for such Class by the Aggregate
Group III-A
Unpaid Interest Shortfall, in each case determined as of the day
preceding the
applicable Distribution Date.
Holder: See "Certificateholder."
Independent: When used with respect to any specified Person,
such
Person who (i) is in fact independent of the Seller, the Master
Servicer and any
Servicer, (ii) does not have any direct financial interest or any
material
indirect financial interest in the Seller or the Master Servicer or
any Servicer
or in an affiliate of either, and (iii) is not connected with the
Seller, the
Master Servicer or any Servicer as an officer, employee, promoter,
underwriter,
trustee, partner, director or person performing similar
functions.
Index: Either the One-Year CMT Index or the One-Year LIBOR Index.
In
the event that either such Index is no longer available, the
applicable Servicer
will select a substitute Index in accordance with the terms of the
related
Mortgage Note and in compliance with federal and state law.
Insurance Policy: Any insurance or performance bond relating to
a
Mortgage Loan or the Mortgage Loans, including any hazard
insurance, special
hazard insurance, flood insurance, primary mortgage insurance,
mortgagor
bankruptcy bond or title insurance.
Insurance Proceeds: Proceeds paid by any insurer pursuant to
any
Insurance Policy covering a Mortgage Loan.
Insured Expenses: Expenses covered by any Insurance Policy
covering
a Mortgage Loan.
Interest Accrual Amount: As to any Distribution Date and any
Class
of Class A Certificates, (i) the product of (a) 1/12th of the Class
A
Pass-Through Rate for such Class and (b) the Principal Balance of
such Class as
of the Determination Date immediately preceding such Distribution
Date minus
(ii) the sum of (A) the Group I-A Interest Percentage, Group II-A
Interest
Percentage or Group III-A Interest Percentage, as applicable, of
such Class of
the interest portion of any Realized Losses allocated to the Group
I-A
Certificates, to the Group II-A Certificates or to the Group III-A
Certificates,
as applicable, on or after the Subordination Depletion Date
pursuant to Section
4.02(c) and (B) the Class A Interest Percentage of such Class of
any
Non-Supported Interest Shortfall or Relief Act Shortfall allocated
to the Class
A Certificates with respect to such Distribution Date.
As to any Distribution Date and any Class of Class B
Certificates,
an amount equal to (i) the product of 1/12th of the Class B
Pass-Through Rate
and the Principal Balance of such Class as of the Determination
Date preceding
such Distribution Date minus (ii) the Class B Interest Percentage
of such Class
of the sum of any Non-Supported Interest Shortfall and any Relief
Act Shortfall
allocated to the Class B Certificates with respect to such
Distribution Date.
Letter of Credit: As
defined in the Wells
Fargo Bank
Servicing
Agreement.
Liquidated Loan: A Mortgage Loan with respect to which the
related
Mortgaged Property has been acquired, liquidated or foreclosed and
with respect
to which the applicable Servicer determines that all Liquidation
Proceeds which
it expects to recover have been recovered.
Liquidated Loan Loss: With respect to any Distribution Date,
the
aggregate of the amount of losses with respect to each Mortgage
Loan which
became a Liquidated Loan during the Applicable Unscheduled
Principal Receipt
Period with respect to Full Unscheduled Principal Receipts for such
Distribution
Date, equal to the excess of (i) the unpaid principal balance of
each such
Liquidated Loan, plus accrued interest thereon in accordance with
the
amortization schedule at the time applicable thereto at the
applicable Net
Mortgage Interest Rate from the Due Date as to which interest was
last paid with
respect thereto through the last day of the month preceding the
month in which
such Distribution Date occurs, over (ii) Net Liquidation Proceeds
with respect
to such Liquidated Loan.
Liquidation Expenses: Expenses incurred by a Servicer in
connection
with the liquidation of any defaulted Mortgage Loan or property
acquired in
respect thereof (including, without limitation, legal fees and
expenses,
committee or referee fees, and, if applicable, brokerage
commissions and
conveyance taxes), any unreimbursed advances expended by such
Servicer pursuant
to its Servicing Agreement or the Master Servicer or Trustee
pursuant hereto
respecting the related Mortgage Loan, including any unreimbursed
advances for
real property taxes or for property restoration or preservation of
the related
Mortgaged Property. Liquidation Expenses shall not include any
previously
incurred expenses in respect of an REO Mortgage Loan which have
been netted
against related REO Proceeds.
Liquidation Proceeds: Amounts received by a Servicer (including
Insurance Proceeds) or PMI Advances made by a Servicer in
connection with the
liquidation of defaulted Mortgage Loans or property acquired in
respect thereof,
whether through foreclosure, sale or otherwise, including payments
in connection
with such Mortgage Loans received from the Mortgagor, other than
amounts
required to be paid to the Mortgagor pursuant to the terms of the
applicable
Mortgage or to be applied otherwise pursuant to law.
Liquidation Profits: As to any Distribution Date and any
Mortgage
Loan that became a Liquidated Loan during the Applicable
Unscheduled Principal
Receipt Period with respect to Full Unscheduled Principal Receipts
for such
Distribution Date, the excess, if any, of (i) Net Liquidation
Proceeds in
respect of such Liquidated Loan over (ii) the unpaid principal
balance of such
Liquidated Loan plus accrued interest thereon in accordance with
the
amortization schedule at the time applicable thereto at the
applicable Net
Mortgage Interest Rate from the Due Date to which interest was last
paid with
respect thereto through the last day of the month preceding the
month in which
such Distribution Date occurs.
Loan Group I: The Group I Mortgage Loans.
Loan Group II: The Group II Mortgage Loans.
Loan Group III: The Group III Mortgage Loans.
Loan Group: Any of Loan Group I, Loan Group II or Loan Group
III.
Loan-to-Value Ratio: The ratio, expressed as a percentage, the
numerator of which is the principal balance of a particular
Mortgage Loan at
origination and the denominator of which is the lesser of (x) the
appraised
value of the related Mortgaged Property determined in the appraisal
used by the
originator at the time of origination of such Mortgage Loan, and
(y) if the
Mortgage is originated in connection with a sale of the Mortgaged
Property, the
sale price for such Mortgaged Property.
Lower-Tier Distribution Amount: As defined in Section
4.01(a)(iii).
Lower-Tier REMIC: One of two separate REMICs comprising the
Trust
Estate, the assets of which consist of the Mortgage Loans, such
amounts as shall
from time to time be held in the Certificate Account, the insurance
policies, if
any, relating to a Mortgage Loan and property which secured a
Mortgage Loan and
which has been acquired by foreclosure or deed in lieu of
foreclosure.
Master Servicer: Wells Fargo Bank, or its successor in
interest.
Initially, the Master Servicer functions shall be performed by the
Corporate
Trust Services division of Wells Fargo Bank.
Master Servicing Fee: With respect to any Mortgage Loan and any
Distribution Date, the fee payable monthly to the Master Servicer
pursuant to
Section 6.05 equal to a fixed percentage (expressed as a per annum
rate) of the
unpaid principal balance of such Mortgage Loan.
Master
Servicing Fee Rate: As set forth in Section 11.22.
Master Servicing Officer: Any officer of the Master Servicer
involved in, or responsible for, the administration and master
servicing of the
Mortgage Loans.
MERS: The Mortgage Electronic Registration Systems, Inc.
MERS Mortgage Loan: Any MOM Mortgage Loan or any other Mortgage
Loan
as to which MERS is (or is intended to be) the mortgagee of record
and as to
which a MIN has been assigned.
Mid-Month Receipt Period: With respect to each Distribution
Date,
the one month period beginning on the Determination Date (or, in
the case of the
first Distribution Date, from and including the Cut-Off Date)
occurring in the
calendar month preceding the month in which such Distribution Date
occurs and
ending on the day preceding the Determination Date immediately
preceding such
Distribution Date.
MIN: A MERS Mortgage Identification Number assigned to a
Mortgage
Loan registered under MERS.
MOM: A Mortgage Loan
where the related Mortgage names MERS as the
original mortgagee thereof, as to which a MIN has been assigned,
and which
Mortgage has not been assigned to any other person.
Month End Interest: As defined in each Servicing Agreement.
Monthly Payment: As to any Mortgage Loan (including any REO
Mortgage
Loan) and any Due Date, the payment of principal and interest due
thereon in
accordance with the amortization schedule at the time applicable
thereto (after
adjustment for any Curtailments and Deficient Valuations occurring
prior to such
Due Date but before any adjustment to such amortization schedule,
other than for
Deficient Valuations, by reason of any bankruptcy or similar
proceeding or any
moratorium or similar waiver or grace period).
Moody's: Moody's Investors Service, Inc. or its successor in
interest.
Mortgage: The mortgage, deed of trust or other instrument creating
a
first lien on Mortgaged Property securing a Mortgage Note together
with any
Mortgage Loan Rider, if applicable.
Mortgage Interest Rate: As to any Mortgage Loan, the per annum
rate
at which interest accrues on the unpaid principal balance thereof
as set forth
in the related Mortgage Note, which rate is as indicated on the
Mortgage Loan
Schedule.
Mortgage Loan Purchase Agreement: The mortgage loan purchase
agreement dated as of December 23, 2004 between Wells Fargo Bank,
as seller, and
the Seller, as purchaser.
Mortgage Loan Rider: The standard Fannie Mae/Freddie Mac riders
to
the Mortgage Note and/or Mortgage riders required when the
Mortgaged Property is
a condominium unit or a unit in a planned unit development.
Mortgage Loan Schedule: The list of the Mortgage Loans
transferred
to the Trustee on the Closing Date as part of the Trust Estate and
attached
hereto as Exhibit F-1A, Exhibit F-1B and Exhibit F-1C, which list
may be amended
following the Closing Date upon conveyance of a Substitute Mortgage
Loan
pursuant to Section 2.02, 2.03 or 2.06 and which list shall set
forth at a
minimum the following information as of the close of business on
the Cut-Off
Date (or, with respect to Substitute Mortgage Loans, as of the
close of business
on the day of substitution) as to each Mortgage Loan:
(i) the Mortgage Loan identifying number;
(ii) the city, state and zip code of the Mortgaged Property;
(iii) the type of property;
(iv) the Mortgage Interest Rate;
(v) the Net Mortgage Interest Rate;
(vi) the Monthly Payment;
(vii) the original number of months to maturity;
(viii) the scheduled maturity date;
(ix) the Cut-Off Date Principal Balance;
(x) the Loan-to-Value Ratio at origination;
(xi) whether such Mortgage Loan is covered by primary mortgage
insurance;
(xii) the applicable Servicing Fee Rate;
(xiii) the Master Servicing Fee Rate;
(xiv) the Index;
(xv) the Gross Margin;
(xvi) the Periodic Cap;
(xvii) the first Adjustment Date;
(xviii) the Rate Ceiling; and
(xix) for each Other Servicer Mortgage Loan, the name of the
Servicer
with respect thereto.
Such schedule may consist of multiple reports that collectively
set
forth all of the information required.
Mortgage Loans: Each of the mortgage loans transferred and
assigned
to the Trustee on the Closing Date pursuant to Section 2.01(a) and
any mortgage
loans substituted therefor pursuant to Section 2.02, 2.03 or 2.06,
in each case
as from time to time are included in the Trust Estate as identified
in the
Mortgage Loan Schedule.
Mortgage Note: The note or other evidence of indebtedness
evidencing
the indebtedness of a Mortgagor under a Mortgage Loan together with
any related
Mortgage Loan Riders, if applicable.
Mortgaged Property: The property subject to a Mortgage, which
may
include Co-op Shares or residential long-term leases.
Mortgagor: The obligor on a Mortgage Note.
Net Liquidation Proceeds: As to any defaulted Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses.
Net Mortgage Interest Rate: With respect to each Mortgage Loan,
a
rate equal to (i) the Mortgage Interest Rate on such Mortgage Loan
minus (ii)
the sum of (a) the applicable Servicing Fee Rate, as set forth in
Section 11.21
with respect to such Mortgage Loan and (b) the Master Servicing Fee
Rate, as set
forth in Section 11.22 with respect to such Mortgage Loan. Any
regular monthly
computation of interest at such rate shall be based upon annual
interest at such
rate on the applicable amount divided by twelve.
Net REO Proceeds: As to any REO Mortgage Loan, REO Proceeds net
of
any related expenses of the Servicer.
Net WAC: As to any Loan Group and any Distribution Date, a per
annum
rate equal to the weighted average of the Net Mortgage Interest
Rates of the
Mortgage Loans in such Loan Group (based on the Scheduled Principal
Balances of
the Mortgage Loans in such Loan Group on the first day of the month
preceding
the month in which such Distribution Date occurs).
Non-permitted Foreign Holder: As defined in Section 5.02(d).
Nonrecoverable Advance: Any portion of a Periodic Advance
previously
made or proposed to be made in respect of a Mortgage Loan which has
not been
previously reimbursed to the Servicer, the Master Servicer or the
Trustee, as
the case may be, and which the Servicer, the Master Servicer or the
Trustee
determines will not, or in the case of a proposed Periodic Advance
would not, be
ultimately recoverable from Liquidation Proceeds or other
recoveries in respect
of the related Mortgage Loan. The determination by the Servicer,
the Master
Servicer or the Trustee (i) that it has made a Nonrecoverable
Advance or (ii)
that any proposed Periodic Advance, if made, would constitute a
Nonrecoverable
Advance, shall be evidenced by an Officer's Certificate of the
Servicer
delivered to the Master Servicer for redelivery to the Trustee or,
in the case
of a Master Servicer determination, an Officer's Certificate of the
Master
Servicer delivered to the Trustee, in each case detailing the
reasons for such
determination.
Non-Supported Interest Shortfall: With respect to any
Distribution
Date, the sum of (i) the excess, if any, of the aggregate
Prepayment Interest
Shortfall on the Mortgage Loans over the aggregate Compensating
Interest with
respect to such Distribution Date and (ii) Curtailment Interest
Shortfalls with
respect to such Distribution Date. With respect to each
Distribution Date
occurring on or after the Subordination Depletion Date, the
Non-Supported
Interest Shortfall determined pursuant to the preceding sentence
will be
increased by the amount of any Subordination Depletion Date
Interest Shortfall
for such Distribution Date. Any Non-Supported Interest Shortfall
will be
allocated to (a) the Class A Certificates according to the
percentage obtained
by dividing the Aggregate Class A Principal Balance by the
Aggregate Principal
Balance and (b) the Class B Certificates according to the
percentage obtained by
dividing the Class B Principal Balance by the Aggregate Principal
Balance.
Non-U.S. Person: As defined in Section 4.01(g).
NYCEMA: A New York Consolidation, Extension and Modification
Agreement.
Officers' Certificate: With respect to any Person, a
certificate
signed by the Chairman of the Board, the President or a Vice
President, and by
the Treasurer, the Secretary or one of the Assistant Treasurers or
Assistant
Secretaries of such Person (or, in the case of a Person which is
not a
corporation, signed by the person or persons having like
responsibilities), and
delivered to the Trustee.
One-Year CMT Index: As to any Mortgage Loan and Adjustment Date,
a
rate per annum that is defined to be the weekly average yield on
United States
Treasury Securities adjusted to a constant maturity of one year, as
made
available by the Federal Reserve Board, published in Federal
Reserve Statistical
Release H.15 (519) and most recently available as of the date 45
days before the
applicable Adjustment Date.
One-Year LIBOR Index: As to any Mortgage Loan and Adjustment Date,
a
rate per annum that is defined to be the average of interbank
offered rates for
one-year U.S. dollar-denominated deposits in the London market, as
published in
The Wall Street Journal and most recently available as of the date
45 days
before the applicable Adjustment Date.
Opinion of Counsel: A written opinion of counsel, who may be
outside
or salaried counsel for the Seller, a Servicer or the Master
Servicer, or any
affiliate of the Seller, a Servicer or the Master Servicer,
acceptable to the
Trustee if such opinion is to be delivered to the Trustee;
provided, however,
that with respect to REMIC matters, matters relating to the
determination of
Eligible Accounts or matters relating to transfers of Certificates,
such counsel
shall be Independent.
Optimal Adjustment Event: With respect to any Class of Class B
Certificates and any Distribution Date, an Optimal Adjustment Event
will occur
with respect to such Class if: (i) the Principal Balance of such
Class on the
Determination Date succeeding such Distribution Date would have
been reduced to
zero (regardless of whether such Principal Balance was reduced to
zero as a
result of principal distribution or the allocation of Realized
Losses) and (ii)
(a) the Principal Balance of any Class of Class A Certificates
would be subject
to further reduction as a result of the third sentence of the
definition of
Principal Balance or (b) the Principal Balance of a Class of Class
B
Certificates with a lower numerical designation would be reduced
with respect to
such Distribution Date as a result of the application of the
proviso in the
definition of Class B-1 Principal Balance, Class B-2 Principal
Balance, Class
B-3 Principal Balance, Class B-4 Principal Balance, Class B-5
Principal Balance
or Class B-6 Principal Balance.
Original Aggregate Subordinated Percentage: The Aggregate
Subordinated Percentage as of the Cut-Off Date, as set forth in
Section 11.08.
Original Group I-A Percentage: The Group I-A Percentage as of
the
Cut-Off Date, as set forth in Section 11.03(a).
Original Group II-A Percentage: The Group II-A Percentage as of
the
Cut-Off Date, as set forth in Section 11.03(b).
Original Group III-A Percentage: The Group III-A Percentage as
of
the Cut-Off Date, as set forth in Section 11.03(c).
Original Class B Principal Balance: The sum of the Original
Class
B-1 Principal Balance, Original Class B-2 Principal Balance,
Original Class B-3
Principal Balance, Original Class B-4 Principal Balance, Original
Class B-5
Principal Balance and Original Class B-6 Principal Balance, as set
forth in
Section 11.09.
Original Class B-1 Fractional Interest: As to the first
Distribution
Date, the percentage obtained by dividing the sum of the Original
Class B-2
Principal Balance, the Original Class B-3 Principal Balance, the
Original Class
B-4 Principal Balance, the Original Class B-5 Principal Balance and
the Original
Class B-6 Principal Balance by the Cut-Off Date Aggregate Principal
Balance. The
Original Class B-1 Fractional Interest is specified in Section
11.12.
Original Class B-2 Fractional Interest: As to the first
Distribution
Date, the percentage obtained by dividing the sum of the Original
Class B-3
Principal Balance, the Original Class B-4 Principal Balance, the
Original Class
B-5 Principal Balance and the Original Class B-6 Principal Balance
by the
Cut-Off Date Aggregate Principal Balance. The Original Class B-2
Fractional
Interest is specified in Section 11.13.
Original Class B-3 Fractional Interest: As to the first
Distribution
Date, the percentage obtained by dividing the sum of the Original
Class B-4
Principal Balance, the Original Class B-5 Principal Balance and the
Original
Class B-6 Principal Balance by the Cut-Off Date Aggregate Principal
Balance. The
Original Class B-3 Fractional Interest is specified in Section
11.14.
Original Class B-4 Fractional Interest: As to the first
Distribution
Date, the percentage obtained by dividing the sum of the Original
Class B-5
Principal Balance and the Original Class B-6 Principal Balance by
the Cut-Off
Date Aggregate Principal Balance. The Original Class B-4 Fractional
Interest is
specified in Section 11.15.
Original Class B-5 Fractional Interest: As to the first
Distribution
Date, the percentage obtained by dividing the Original Class B-6
Principal
Balance by the Cut-Off Date Aggregate Principal Balance. The
Original Class B-5
Fractional Interest is specified in Section 11.16.
Original Class B-1 Principal Balance: The Class B-1 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Class B-2 Principal Balance: The Class B-2 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Class B-3 Principal Balance: The Class B-3 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Class B-4 Principal Balance: The Class B-4 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Class B-5 Principal Balance: The Class B-5 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Class B-6 Principal Balance: The Class B-6 Principal
Balance as of the Cut-Off Date, as set forth in Section 11.11.
Original Principal Balance: Any of the Original Principal
Balances
of the Classes of Class A Certificates as set forth in Section
11.04; the
Original Class B-1 Principal Balance, Original Class B-2 Principal
Balance,
Original Class B-3 Principal Balance, Original Class B-4 Principal
Balance,
Original Class B-5 Principal Balance or Original Class B-6
Principal Balance as
set forth in Section 11.11.
Original Subordinated Principal Amount: The Class B Principal
Balance as of the Cut-Off Date.
Other Servicer: Any of the Servicers other than Wells Fargo
Bank.
Other Servicer Mortgage Loan: Any of the Mortgage Loans, if
any,
identified in Exhibit F-2 hereto, as such Exhibit may be amended
from time to
time in connection with a substitution pursuant to Section 2.02 or
2.06, which
Mortgage Loan is serviced under an Other Servicing Agreement.
Other Servicing Agreements: The Servicing Agreements other than
the
Wells Fargo Bank Servicing Agreement.
Outstanding Mortgage Loan: As to any Due Date, a Mortgage Loan
(including an REO Mortgage Loan) which was not the subject of a
Full Unscheduled
Principal Receipt prior to such Due Date and which was not
repurchased by the
Seller prior to such Due Date pursuant to Section 2.02 or 2.03.
Owner Mortgage Loan File: A file maintained by the Custodian
for
each Mortgage Loan that contains the documents specified in Section
2.01(a) and
any additional documents required to be added to the Owner Mortgage
Loan File
pursuant to this Agreement.
Partial Liquidation Proceeds: Liquidation Proceeds received by
a
Servicer prior to the Unscheduled Principal Receipt Period in which
the related
Mortgage Loan became a Liquidated Loan.
Partial Unscheduled Principal Receipt: An Unscheduled Principal
Receipt which is not a Full Unscheduled Principal Receipt.
Paying Agent: The Person authorized on behalf of the Trustee to
make
distributions to Certificateholders with respect to the
Certificates and to
forward to Certificateholders the periodic and annual statements
required by
Section 4.04. The Paying Agent may be the Trustee. The initial
Paying Agent is
appointed in Section 4.03(a).
Payment Account: The account maintained pursuant to Section
4.03(a).
Percentage Interest: With respect to a Class A Certificate of a
Class, the undivided percentage interest obtained by dividing the
original
principal balance of such Certificate by the Original Principal
Balance of such
Class of Class A Certificates. With respect to a Class B
Certificate of a Class,
the undivided percentage interest obtained by dividing the original
principal
balance of such Certificate by the Original Principal Balance of
such Class of
Class B Certificates.
Periodic Advance: The aggregate of the advances required to be
made
by a Servicer on any Distribution Date pursuant to its Servicing
Agreement or by
the Master Servicer or the Trustee hereunder, the amount of any
such advances
being equal to the total of all Monthly Payments (adjusted, in each
case (i) in
respect of interest, to the applicable Mortgage Interest Rate less
the Servicing
Fee in the case of Periodic Advances made by a Servicer and to the
applicable
Net Mortgage Interest Rate in the case of Periodic Advances made by
the Master
Servicer or Trustee and (ii) by the amount of any related Debt
Service
Reductions or reductions in the amount of interest collectable from
the
Mortgagor pursuant to the Servicemembers Civil Relief Act, as it
may be amended
from time to time, or similar legislation or regulations then in
effect) on the
Mortgage Loans, that (x) were delinquent as of the close of
business on the
related Determination Date, (y) were not the subject of a previous
Periodic
Advance by such Servicer or of a Periodic Advance by the Master
Servicer or the
Trustee, as the case may be and (z) have not been determined by the
Master
Servicer, such Servicer or Trustee to be Nonrecoverable
Advances.
Periodic Cap: For each Mortgage Loan, the applicable limit on
adjustment of the Mortgage Interest Rate for each Adjustment Date
specified in
the applicable Mortgage Note and designated as such in the Mortgage
Loan
Schedule.
Person: Any individual, corporation, partnership, joint
venture,
association, joint-stock company, trust, unincorporated
organization or
government or any agency or political subdivision thereof.
Plan: As defined in Section 5.02(c).
Pledge Holder: As defined in the Wells Fargo Bank Servicing
Agreement.
Pledged Asset Mortgage Loans: The Mortgage Loans listed on Exhibit
P
for which Letters of Credit have been issued.
PMI Advance: As defined in the related Servicing Agreement, if
applicable.
Pool Balance: Any of the Group I Pool Balance, Group II Pool
Balance
or Group III Pool Balance.
Pool Scheduled Principal Balance: The sum of the Group I Pool
Balance, Group II Pool Balance and Group III Pool Balance.
Prepayment In Full: With respect to any Mortgage Loan, a
Mortgagor
payment consisting of a Principal Prepayment in the amount of the
outstanding
principal balance of such loan and resulting in the full
satisfaction of such
obligation.
Prepayment Interest Shortfall: On any Distribution Date, the
amount
of interest, if any, that would have accrued on any Mortgage Loan
which was the
subject of a Prepayment in Full at the Net Mortgage Interest Rate
for such
Mortgage Loan from the date of its Prepayment in Full (but in the
case of a
Prepayment in Full where the Applicable Unscheduled Principal
Receipt Period is
the Mid-Month Receipt Period, only if the date of the Prepayment in
Full is on
or after the Determination Date in the month prior to the month of
such
Distribution Date and prior to the first day of the month of such
Distribution
Date) through the last day of the month prior to the month of such
Distribution
Date.
Principal Adjustment: In the event that the Class B-1 Optimal
Principal Amount, Class B-2 Optimal Principal Amount, Class B-3
Optimal
Principal Amount, Class B-4 Optimal Principal Amount, Class B-5
Optimal
Principal Amount or Class B-6 Optimal Principal Amount is
calculated in
accordance with the proviso in such definition with respect to any
Distribution
Date, the Principal Adjustment for such Class of Class B
Certificates shall
equal the difference between (i) the amount that would have been
distributed to
such Class as principal in accordance with Section 4.01(a)(ii) for
such
Distribution Date, calculated without regard to such proviso and
assuming there
are no Principal Adjustments for such Distribution Date and (ii)
the Adjusted
Principal Balance for such Class.
Principal Balance: As of the first Determination Date and as to
any
Class of Class A Certificates, the Original Principal Balance of
such Class. As
of any subsequent Determination Date prior to the Subordination
Depletion Date
and as to any Class of Class A Certificates, the Original Principal
Balance of
such Class less the sum of all amounts previously distributed in
respect of such
Class on prior Distribution Dates (i) pursuant to Paragraph third
of Section
4.01(a)(i) and (ii) as a result of a Principal Adjustment. After
the
Subordination Depletion Date, each such Principal Balance of a
Class of Class A
Certificates will also be reduced (if clause (i) is greater than
clause (ii)) or
increased (if clause (i) is less than clause (ii)) on each
Determination Date by
an amount equal to the product of the Group I-A Loss Percentage,
Group II-A Loss
Percentage or Group III-A Loss Percentage, as applicable, of such
Class and the
difference, if any, between (i) the Group I-A Principal Balance,
Group II-A
Principal Balance or Group III-A Principal Balance, as applicable,
as of such
Determination Date without regard to this sentence and (ii) Group I
Adjusted
Pool Amount, Group II Adjusted Pool Amount or Group III Adjusted
Pool Amount, as
applicable, for the preceding Distribution Date; provided, however,
that the
amount of any such reduction for the Class II-A-2 Certificates will
be decreased
by the Class II-A-3 Loss Allocation Amount and the amount of any
such reduction
for the Class III-A-2 Certificates will be decreased by the Class
III-A-3 Loss
Allocation Amount. After the Subordination Depletion Date, the
Principal
Balances of the Class II-A-3 Certificates and the Class III-A-3
Certificates
will additionally be reduced by the Class II-A-3 Loss Allocation
Amount and the
Class III-A-3 Loss Allocation Amount, respectively. In addition,
any increase
allocated to the Class II-A-2 Certificates pursuant to the third
sentence above
will instead increase the Principal Balance of the Class II-A-3
Certificates and
any increase allotted to the Class III-A-2 Certificates pursuant to
the third
sentence above will instead increase the Principal Balance of the
Class III-A-3
Certificates. Notwithstanding the foregoing, on any Distribution
Date in which
the Class II-A-2 Loss Amount exceeds the Principal Balance of the
Class II-A-3
Certificates prior to any reduction for the Class II-A-3 Loss
Allocation Amount,
such excess will be allocated in reduction of the Principal Balance
of the Class
II-A-2 Certificates, and on any Distribution Date in which the
Class III-A-2
Loss Amount exceeds the Principal Balance of the Class III-A-3
Certificates
prior to any reduction for the Class III-A-3 Loss Allocation
Amount, such excess
will be allocated in reduction of the Principal Balance of the
Class III-A-2
Certificates.
As to the Class B Certificates, the Class B-1 Principal
Balance,
Class B-2 Principal Balance, Class B-3 Principal Balance, Class B-4
Principal
Balance, Class B-5 Principal Balance and Class B-6 Principal
Balance,
respectively.
Notwithstanding the foregoing, no Principal Balance of a Class
will
be increased on any Determination Date such that the Principal
Balance of such
Class exceeds its Original Principal Balance less all amounts
previously
distributed in respect of such Class on prior Distribution Dates
pursuant to
Paragraph third clauses (A) or (B) of Section 4.01(a)(i) or
Paragraphs third,
sixth, ninth, twelfth, fifteenth or eighteenth of Section
4.01(a)(ii).
Principal Prepayment: Any Mortgagor payment on a Mortgage Loan
which
is received in advance of its Due Date and is not accompanied by an
amount
representing scheduled interest for any period subsequent to the
date of
prepayment.
Prior Month Receipt Period: With respect to each Distribution
Date,
the calendar month preceding the month in which such Distribution
Date occurs.
Prohibited Transaction Tax: Any tax imposed under Section 860F
of
the Code.
Prospectus: The prospectus dated November 16, 2004 as
supplemented
by the prospectus supplement dated December 21, 2004, relating to
the Class A,
Class B-1, Class B-2 and Class B-3 Certificates.
Prudent Servicing Practices: The standard of care set forth in
each
Servicing Agreement.
Rate Ceiling: The maximum per annum Mortgage Interest Rate
permitted
under the related Mortgage Note.
Rating Agency: Any nationally recognized statistical credit
rating
agency, or its successor, that rated one or more Classes of the
Certificates at
the request of the Seller at the time of the initial issuance of
the
Certificates. The Rating Agencies for the Class A, Class B-1, Class
B-2 and
Class B-3 Certificates are S&P and Moody's. The Rating Agency
for the Class B-4
and Class B-5 Certificates is S&P. If any such agency or a
successor is no
longer in existence, "Rating Agency" shall be such statistical
credit rating
agency, or other comparable Person, designated by the Seller,
notice of which
designation shall be given to the Trustee and the Master Servicer.
References
herein to the highest short-term rating category of a Rating Agency
shall mean
A-1 in the case of S&P, P-1 in the case of Moody's, and in the
case of any other
Rating Agency shall mean its equivalent of such ratings. References
herein to
the highest long-term rating categories of a Rating Agency shall
mean AAA in the
case of S&P and Aaa in the case of Moody's, and in the case of
any other Rating
Agency shall mean its equivalent of such ratings without any plus
or minus.
Realized Losses: With respect to any Distribution Date, (i)
Liquidated Loan Losses incurred on Liquidated Loans for which the
Liquidation
Proceeds were received during the Applicable Unscheduled Principal
Receipt
Period with respect to Full Unscheduled Principal Receipts with
respect to such
Distribution Date and (ii) Bankruptcy Losses incurred during the
period
corresponding to the Applicable Unscheduled Principal Receipt
Period with
respect to Full Unscheduled Principal Receipts for such
Distribution Date.
Record Date: The last Business Day of the month preceding the
month
of the related Distribution Date.
Recovery: As to any Distribution Date and each Loan Group, the
sum
of all amounts received (net of any reimbursable expenses) for
Group I Mortgage
Loans, Group II Mortgage Loans or Group III Mortgage Loans, as
applicable,
subsequent to any such Mortgage Loan being determined to be a
Liquidated Loan.
Reimbursement Amount: As defined in Section 2.03(c).
Relief Act Shortfall: Any interest shortfalls arising as a result
of
the reduction in the amount of monthly interest payments on any
Mortgage Loans
as a result of the application of the Servicemembers Civil Relief
Act, as it may
be amended from time to time, or comparable state legislation. Any
Relief Act
Shortfall will be allocated to (a) the Class A Certificates
according to the
percentage obtained by dividing the Class A Principal Balance by
the sum of the
Class A Principal Balance and the Class B Principal Balance and (b)
the Class B
Certificates according to the percentage obtained by dividing the
Class B
Principal Balance by the sum of the Class A Principal Balance and
the Class B
Principal Balance.
REMIC: A "real
estate mortgage investment conduit" as defined in
Code Section 860D.
REMIC Provisions: Provisions of the federal income tax law
relating
to REMICs, which appear at Sections 860A through 860G of Part IV of
Subchapter M
of Chapter 1 of Subtitle A of the Code, and related provisions, and
U.S.
Department of the Treasury temporary, proposed or final regulations
promulgated
thereunder, as the foregoing are in effect (or with respect to
proposed
regulations, are proposed to be in effect) from time to time.
Remittance Date: As defined in each of the Servicing
Agreements.
REO Mortgage Loan: Any Mortgage Loan which is not a Liquidated
Loan
and as to which the indebtedness evidenced by the related Mortgage
Note is
discharged and the related Mortgaged Property is held as part of
the Trust
Estate.
REO Proceeds: Proceeds received in respect of any REO Mortgage
Loan
(including, without limitation, proceeds from the rental of the
related
Mortgaged Property).
Request for Release: A request for release (which may be in
electronic form) in substantially the form attached as Exhibit G
hereto.
Responsible Officer: When used with respect to the Trustee, the
Chairman or Vice-Chairman of the Board of Directors or Trustees,
the Chairman or
Vice-Chairman of the Executive or Standing Committee of the Board
of Directors
or Trustees, the President, the Chairman of the Committee on Trust
Matters, any
Vice President, the Secretary, any Assistant Secretary, the
Treasurer, any
Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust
Officer or
Assistant Trust Officer, the Controller and any Assistant
Controller or any
other officer of the Trustee customarily performing functions
similar to those
performed by any of the above-designated officers and also, with
respect to a
particular matter, any other officer to whom such matter is
referred because of
such officer's knowledge of and familiarity with the particular
subject.
Retained Mortgage Loan File: A file maintained by Wells Fargo
Bank
prior to any Document Transfer Event for each Mortgage Loan that
contains the
documents specified in Section 2.01(b) and any additional documents
required to
be added to the Retained Mortgage Loan File pursuant to this
Agreement.
Rule 144A: Rule 144A promulgated under the Securities Act of
1933,
as amended.
S&P: Standard & Poor's, a division of The McGraw-Hill
Companies,
Inc., or its successor in interest.
Scheduled Principal Balance: As to any Mortgage Loan and
Distribution Date, the principal balance of such Mortgage Loan as
of the Due
Date in the month preceding the month of such Distribution Date as
specified in
the amortization schedule at the time relating thereto (before any
adjustment to
such amortization schedule by reason of any bankruptcy (other than
Deficient
Valuations) or similar proceeding or any moratorium or similar
waiver or grace
period) after giving effect to (A) Unscheduled Principal Receipts
received or
applied by the applicable Servicer during the related Unscheduled
Principal
Receipt Period for each applicable type of Unscheduled Principal
Receipt related
to the Distribution Date occurring in the month preceding such
Distribution
Date, (B) Deficient Valuations incurred prior to such Due Date and
(C) the
payment of principal due on such Due Date and irrespective of any
delinquency in
payment by the related Mortgagor. Accordingly, the Scheduled
Principal Balance
of a Mortgage Loan which becomes a Liquidated Loan at any time
through the last
day of such related Unscheduled Principal Receipt Period shall be
zero.
Seller: Wells Fargo Asset Securities Corporation, or its
successor
in interest.
Servicer Mortgage Loan File: As defined in each of the
Servicing
Agreements.
Servicers: Wells Fargo Bank, as a Servicer under the related
Servicing Agreement. Initially the servicing functions performed by
Wells Fargo
Bank shall be performed by the Wells Fargo Home Mortgage division
of Wells Fargo
Bank.
Servicing Agreements: Each of the Servicing Agreements executed
with
respect to a portion of the Mortgage Loans by one of the Servicers,
which
agreements are attached hereto, collectively, as Exhibit L.
Servicing Fee: With respect to any Servicer, as defined in its
Servicing Agreement.
Servicing Fee Rate: With respect to a Mortgage Loan, as set forth
in
Section 11.21.
Servicing Officer: Any officer of a Servicer involved in, or
responsible for, the administration and servicing of the Mortgage
Loans.
Similar Law: As defined in Section 5.02(c).
Single Certificate: A Certificate of any Class that evidences
the
smallest permissible Denomination for such Class, as set forth in
Section 11.20.
Startup Day: As defined in Section 2.05.
Subordinate Balance Ratio: The ratio between the Group I
Subordinate
Amount, the Group II Subordinate Amount and the Group III
Subordinate Amount.
Subordination Depletion Date: The Distribution Date preceding
the
first Distribution Date on which each of the Group I-A Percentage,
Group II-A
Percentage and Group III-A Percentage (in each case, determined
pursuant to
clause (ii) of the definition thereof) equals or exceeds 100%.
Subordination Depletion Date Interest Shortfall: With respect to
any
Distribution Date that occurs on or after the Subordination
Depletion Date with
respect to any Unscheduled Principal Receipt (other than a
Prepayment in Full or
Curtailment):
(A) in the case
where the Applicable Unscheduled Principal Receipt
Period is the Mid-Month Receipt Period and such Unscheduled
Principal Receipt is received by the Servicer on or after the
Determination Date in the month preceding the month of such
Distribution Date but prior to the first day of the month of
such Distribution Date, the amount of interest that would have
accrued at the Net Mortgage Interest Rate on the amount of
such Unscheduled Principal Receipt from the day of its receipt
or, if earlier, its application by the Servicer through the
last day
of the month preceding the month of such Distribution
Date; and
(B) in the case
where the Applicable Unscheduled Principal Receipt
Period is the Prior Month Receipt Period and such Unscheduled
Principal Receipt is received by the Servicer during the month
preceding the month of such Distribution Date, the amount of
interest that would have accrued at the Net Mortgage Interest
Rate on the
amount of such Unscheduled Principal Receipt from
the day of its receipt or, if earlier, its application by the
Servicer through the last day of the month in which such
Unscheduled Principal Receipt is received.
Subsidy Account: If the Trust Estate contains any Subsidy Loans,
the
deposit account or accounts created and maintained by the Servicer
for deposit
of Subsidy Funds and amounts payable under interest subsidy
agreements relating
to mortgage loans other than the Mortgage Loans.
Subsidy Funds: If the Trust Estate contains any Subsidy Loans,
funds
contributed by the employer of a Mortgagor in order to reduce the
payments
required from the Mortgagor for a specified period in specified
amounts.
Subsidy Loan: Any Mortgage Loan subject to a temporary interest
subsidy agreement pursuant to which 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 by the employer of the Mortgagor.
Substitute Mortgage Loan: As defined in Section 2.02.
Substitution Principal Amount: With respect to any Mortgage
Loan
substituted in accordance with Section 2.02 or pursuant to Section
2.03 or 2.06,
the excess of (x) the unpaid principal balance of the Mortgage Loan
which is
substituted for over (y) the unpaid principal balance of the
Substitute Mortgage
Loan, each balance being determined as of the date of
substitution.
Trust: The trust created by this Agreement.
Trust Estate: The corpus of the Trust, consisting of the
Mortgage
Loans, such amounts as may be held from time to time in the
Certificate Account,
the rights of the Trustee to receive the proceeds of all insurance
policies and
performance bonds, if any, required to be maintained hereunder or
under the
related Servicing Agreement, property which secured a Mortgage Loan
and which
has been acquired by foreclosure or deed in lieu of foreclosure and
all other
property and rights described in the first paragraph of Section
2.01(a).
Trustee: Wachovia Bank, National Association, a national
banking
association with its principal office located in Charlotte, North
Carolina, or
any successor trustee appointed as herein provided.
Type 1 Mortgage Loan: Any of the Mortgage Loans identified in
Exhibit F-1A, Exhibit F-1B and Exhibit F-1C hereto, as such Exhibit
may be
amended from time to time in connection with a substitution
pursuant to Section
2.02 or 2.06, serviced under the Wells Fargo Bank Servicing
Agreement and having
a Mid-Month Receipt Period with respect to all types of Unscheduled
Principal
Receipts.
Uncertificated Lower-Tier Interest: Any of the Class I-L
Interest,
the Class I-LS Interest, the Class II-L Interest, the Class II-LS
Interest, the
Class III-L Interest and the Class III-LS Interest.
Undercollateralized Group: As defined in Section 4.01(b)(iv).
Undercollateralized Amount: As defined in Section 4.01(b)(iv).
Unpaid Interest Shortfalls: Each of the Class A Unpaid Interest
Shortfalls, the Class B-1 Unpaid Interest Shortfall, the Class B-2
Unpaid
Interest Shortfall, the Class B-3 Unpaid Interest Shortfall, the
Class B-4
Unpaid Interest Shortfall, the Class B-5 Unpaid Interest Shortfall
and the Class
B-6 Unpaid Interest Shortfall.
Unscheduled Principal Receipt: Any Principal Prepayment or
other
recovery of principal on a Mortgage Loan, including, without
limitation,
Liquidation Proceeds, Net REO Proceeds, Recoveries and proceeds
received from
any condemnation award or proceeds in lieu of condemnation other
than that
portion of such proceeds released to the Mortgagor in accordance
with the terms
of the Mortgage or Prudent Servicing Practices, but excluding any
Liquidation
Profits and proceeds of a repurchase of a Mortgage Loan by the
Seller and any
Substitution Principal Amounts.
Unscheduled Principal Receipt Period: Either a Mid-Month
Receipt
Period or a Prior Month Receipt Period.
Upper-Tier Certificate: Any one of the Class A Certificates
(other
than the Class II-A-LR Certificate) and the Class B
Certificates.
Upper-Tier Certificate Account: The trust account established
and
maintained pursuant to Section 4.01(e).
Upper-Tier REMIC: One of the two separate REMICs comprising the
Trust Estate, the assets of which consist of the Uncertificated
Lower-Tier
Interests and such amounts as shall from time to time be held in
the Upper-Tier
Certificate Account.
U.S. Person: As defined in Section 4.01(g).
Voting Interest: With respect to any provisions hereof providing
for
the action, consent or approval of the Holders of all Certificates
evidencing
specified Voting Interests in the Trust Estate, the Holders of each
Class of
Certificates will collectively be entitled to the then applicable
percentage of
the aggregate Voting Interest represented by all Certificates equal
to the ratio
obtained by dividing the Principal Balance of such Class by the sum
of the Group
I-A Principal Balance, Group II-A Principal Balance, Group III-A
Principal
Balance and the Class B Principal Balance. Each Certificateholder
of a Class
will have a Voting Interest equal to the product of the Voting
Interest to which
such Class is collectively entitled and the Percentage Interest in
such Class
represented by such Holder's Certificates. With respect to any
provisions hereof
providing for action, consent or approval of each Class of
Certificates or
specified Classes of Certificates, each Certificateholder of a
Class will have a
Voting Interest in such Class equal to such Holder's Percentage
Interest in such
Class.
Wells Fargo Bank: Wells Fargo Bank, N.A., or its successor in
interest.
Wells Fargo Bank Correspondents: The entities identified on a
list
provided by Wells Fargo Bank to the Master Servicer, from which
Wells Fargo Bank
purchased the Mortgage Loans.
Wells Fargo Bank Servicing Agreement: The Servicing Agreement
providing for the servicing of the Type 1 Mortgage Loans initially
by Wells
Fargo Bank.
Section 1.02 Acts of Holders.
(a) Any request, demand, authorization, direction, notice,
consent,
waiver or other action provided by this Agreement to be given or
taken by
Holders may be embodied in and evidenced by one or more instruments
of
substantially similar tenor signed by such Holders in person or by
an agent duly
appointed in writing. Except as herein otherwise expressly
provided, such action
shall become effective when such instrument or instruments are
delivered to the
Trustee. Proof of execution of any such instrument or of a writing
appointing
any such agent shall be sufficient for any purpose of this
Agreement and
conclusive in favor of the Trustee, if made in the manner provided
in this
Section 1.02. The Trustee shall promptly notify the Master Servicer
in writing
of the receipt of any such instrument or writing.
(b) The fact and date of the execution by any Person of any
such
instrument or writing may be proved by the affidavit of a witness
of such
execution or by a certificate of a notary public or other officer
authorized by
law to take acknowledgments of deeds, certifying that the
individual signing
such instrument or writing acknowledged to him the execution
thereof. When such
execution is by a signer acting in a capacity other than his or her
individual
capacity, such certificate or affidavit shall also constitute
sufficient proof
of his or her authority. The fact and date of the execution of any
such
instrument or writing, or the authority of the individual executing
the same,
may also be proved in any other manner which the Trustee deems
sufficient.
(c) The ownership of Certificates (whether or not such
Certificates
shall be overdue and notwithstanding any notation of ownership or
other writing
thereon made by anyone other than the Trustee and the
Authenticating Agent)
shall be proved by the Certificate Register, and neither the
Trustee, the Seller
nor the Master Servicer shall be affected by any notice to the
contrary.
(d) Any request, demand, authorization, direction, notice,
consent,
waiver or other action of the Holder of any Certificate shall bind
every future
Holder of the same Certificate and the Holder of every Certificate
issued upon
the registration of transfer thereof or in exchange therefor or in
lieu thereof
in respect of anything done, omitted or suffered to be done by the
Trustee, the
Seller or the Master Servicer in reliance thereon, whether or not
notation of
such action is made upon such Certificate.
Section 1.03 Effect of Headings and Table of Contents.
The Article and Section headings in this Agreement and the Table
of
Contents are for convenience of reference only and shall not affect
the
interpretation or construction of this Agreement.
Section 1.04 Benefits of Agreement.
Nothing in this Agreement or in the Certificates, express or
implied, shall give to any Person, other than the parties to this
Agreement and
their successors hereunder and the Holders of the Certificates any
benefit or
any legal or equitable right, power, remedy or claim under this
Agreement.
<PAGE>
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF THE CERTIFICATES
Section 2.01 Conveyance of Mortgage Loans.
(a) The Seller, concurrently with the execution and delivery
hereof,
does hereby assign to the Trustee, without recourse all the right,
title and
interest of the Seller in and to (a) the Trust Estate, including
all interest
and principal received by the Seller on or with respect to the
Mortgage Loans
after the Cut-Off Date (and including scheduled payments of
principal and
interest due after the Cut-Off Date but received by the Seller on
or before the
Cut-Off Date and Unscheduled Principal Receipts received or applied
on the
Cut-Off Date, but not including payments of principal and interest
due on the
Mortgage Loans on or before the Cut-Off Date), (b) the Insurance
Policies, (c)
the obligations of the Servicers under the Servicing Agreements
with respect to
the Mortgage Loans, (d) the right to receive amounts, if any,
payable on behalf
of any Mortgagor from the Subsidy Account relating to any Subsidy
Loan, (e) all
of the Seller's right, title and interest in and to the proceeds of
the Letters
of Credit and (f) proceeds of all the foregoing. It is agreed and
understood by
the Seller and the Trustee that it is not intended that any
mortgage loan be
included in the Trust Estate that is a "High-Cost Home Loan" as
defined in
either (i) the New Jersey Home Ownership Act effective November 27,
2003, (ii)
the New Mexico Home Loan Protection Act effective January 1, 2004
or (iii) the
Massachusetts Predatory Home Loan Practices Act effective November
7, 2004.
In connection with such assignment, the Seller shall, with
respect
to each Mortgage Loan, deliver, or cause to be delivered, to the
Custodian, on
or before the Closing Date the following documents or instruments
with respect
to each Mortgage Loan:
(i) The original Mortgage Note either (A) endorsed in blank or
(B)
endorsed
as provided in Section 2.01(d), with all prior and intervening
endorsements as may be necessary to show a complete chain of
endorsements
or with
respect to any Mortgage Loan as to which the original Mortgage
Note has
been permanently lost or destroyed and has not been replaced, a
lost note
affidavit with a copy of the Mortgage Note and, in the case of
any
Mortgage Loan originated in the State of New York documented by
a
NYCEMA,
the NYCEMA, the new Mortgage Note, if applicable, the
consolidated
Mortgage
Note and the consolidated Mortgage;
(ii) A recorded original assignment of the related Mortgage
from
Wells
Fargo Bank assigning the related Mortgage to the Trustee (which
may
be
assigned in blank), certified by the recording office, or, if
such
assignment
is in the process of being recorded, a copy of the related
Mortgage
transmitted for recordation certified by an officer of Wells
Fargo Bank
or applicable Wells Fargo Bank Correspondent to be a true and
correct
copy of such assignment submitted for recordation; provided,
however,
if recordation is not required as described below, an
assignment
in
recordable form (which may be assigned in blank) with respect to
the
related
Mortgage;
(iii) The original of each assumption agreement, modification,
written
assurance or substitution agreement pertaining to such Mortgage
Note, if
any;
(iv) For each Mortgage
Loan secured by Co-op Shares, the originals
of the
following documents or instruments:
(a) The loan
security agreement;
(b) The stock
certificate;
(c)
The stock power,
executed in blank;
(d) The executed
proprietary lease;
(e) The executed
recognition agreement;
(f) The executed
UCC-1 financing statement with evidence of
recording thereon; and
(g) The executed
UCC-3 financing statements or other
appropriate UCC financing statements required by state
law, evidencing a complete and unbroken chain from the
mortgagee to the Trustee with evidence of recording
thereon (or in a form suitable for recordation); and
(v) For each Letter of
Credit, the original advice of such Letter
of Credit
endorsed by the Pledge Holder and Wells Fargo Bank's notice of
transfer
(Exhibit A to the Letter of Credit) of beneficiary of such
Letter
of Credit
to the Trustee.
(b) Following a Document Transfer Event, the Seller shall, with
respect to each Mortgage Loan, deliver, or cause to be delivered,
to the
Custodian, within 60 days copies (which may be in electronic form
mutually
agreed upon by the Seller and the Custodian) of the following
additional
documents or instruments with respect to each Mortgage Loan;
provided, however,
that originals of such documents or instruments shall be delivered
to the
Custodian if originals are required under the law in which the
related Mortgaged
Property is located in order to exercise all remedies available to
the Trust
under applicable law following default by the related
Mortgagor:
(i) The original recorded Mortgage with evidence of recordation
noted
thereon or attached thereto, together with any addenda or
riders
thereto,
or a copy of such recorded Mortgage with such evidence of
recordation certified to be true and correct by the appropriate
governmental recording office; or a copy of such recorded Mortgage
with
such
evidence of recordation, or if the original Mortgage has been
submitted
for recordation but has not been returned from the applicable
public
recording office, a copy of the Mortgage certified by an officer
of
Wells
Fargo Bank or the applicable Wells Fargo Bank Correspondent to be
a
true and
correct copy of the original Mortgage submitted for
recordation;
(ii) The original of each assumption agreement, modification,
written
assurance or substitution agreement pertaining to such
Mortgage,
if any,
or, if such document is in the process of being recorded, a
copy
of such
document, certified by an officer of Wells Fargo Bank or the
applicable
Wells Fargo Bank Correspondent of such Mortgage Loan or by the
applicable
title insurance company, closing agent, settlement agent,
escrow
agent or closing attorney to be a true and correct copy of such
document
transmitted for recordation, if any;
(iii) For each MERS Mortgage Loan that is not a MOM Mortgage
Loan,
the
original assignment showing MERS as the assignee of the Mortgage,
with
evidence
of recording thereon or copies thereof certified by an officer
of
Wells
Fargo Bank or the applicable Wells Fargo Bank Correspondent to
have
been
submitted for recordation;
(iv) Each original recorded intervening assignment of the
Mortgage
as may be
necessary to show a complete chain of title from the Mortgage
Loan
originator to Wells Fargo Bank or Wells Fargo Home Mortgage,
Inc.,
with evidence of
recordation noted thereon or attached thereto, or a copy
of such
assignment with such evidence of recordation to be true and
correct by
the appropriate governmental recording office, or, if any such
assignment
has been submitted for recordation but has not been returned
from the
applicable public recording office or is not otherwise
available,
a copy of
such assignment certified by an officer of Wells Fargo Bank or
the
applicable Wells Fargo Bank Correspondent to be a true and
correct
copy of
the recorded assignment submitted for recordation; and
(v) The original policy of the title insurance or certificate
of
title
insurance or a written commitment to issue such a title
insurance
policy or
certificate of title insurance, or a copy of such title
insurance
certified as true and correct by the applicable insurer or any
attorney's
certificate of title with an Officer's Certificate of Wells
Fargo Bank
or the applicable Wells Fargo Bank Correspondent that such
attorney's
certificate of title is customarily used in lieu of a title
insurance
policy in the jurisdiction in which the related mortgage
property
is located.
(c) If any assignment of a Mortgage to the Trustee is in the
process
of being recorded on the Closing Date, the Seller shall use its
best efforts to
cause each such original recorded document or certified copy
thereof to be
delivered to the Custodian promptly following its recordation, but
in no event
later than one (1) year following the Closing Date. If any Mortgage
has been
recorded in the name of MERS or its designee, no assignment of
Mortgage in favor
of the Trustee will be required to be prepared or delivered and
instead, the
Master Servicer shall take all actions as are necessary to cause
the Trust
Estate to be shown as the owner of the related Mortgage Loan on the
records of
MERS for the purpose of the system of recording transfers of
beneficial
ownership of mortgages maintained by MERS. The Seller shall also
cause to be
delivered to the Custodian any other original mortgage loan
document included in
the Owner Mortgage Loan File if a copy thereof has been delivered.
The Seller
shall pay from its own funds, without any right of reimbursement
therefor, the
amount of any costs, liabilities and expenses incurred by the Trust
Estate by
reason of the failure of the Seller to cause to be delivered to the
Custodian
within one (1) year following the Closing Date any assignment of a
Mortgage
(except with respect to any Mortgage recorded in the name of MERS)
not delivered
to the Custodian on the Closing Date.
In lieu of recording an assignment of any Mortgage the Seller
may,
deliver or cause to be delivered to the Custodian the assignment of
the Mortgage
Loan to the Trustee in a form suitable for recordation, if (i) with
respect to a
particular state the Trustee has received an Opinion of Counsel
acceptable to it
that such recording is not required to make the assignment
effective against the
parties to the Mortgage or subsequent purchasers or encumbrances of
the
Mortgaged Property or (ii) the Seller has been advised by each
Rating Agency
that non-recordation in a state will not result in a reduction of
the rating
assigned by that Rating Agency at the time of initial issuance of
the
Certificates. Set forth on Exhibit K attached hereto is a list of
all states
where recordation is required by either Rating Agency to obtain the
initial
ratings of the Certificates. The Custodian may rely and shall be
protected in
relying upon the information contained in such Exhibit K. In the
event that the
Custodian receives notice that recording is required to protect the
right, title
and interest of the Trustee in and to any such Mortgage Loan for
which
recordation of an assignment has not previously been required, the
Custodian
shall promptly notify the Trustee and the Custodian shall within
five Business
Days (or such other reasonable period of time mutually agreed upon
by the
Custodian and the Trustee) of its receipt of such notice deliver
each previously
unrecorded assignment to the related Servicer for recordation.
(d) Except for Mortgage Notes endorsed in blank, endorsements
shall
comply with the following format:
WITHOUT RECOURSE
PAY TO THE ORDER OF:
WACHOVIA BANK, NATIONAL ASSOCIATION, AS
TRUSTEE under the pooling and servicing
agreement dated as of [date];
and its successors and assigns,
[Wells Fargo Bank, N.A.] or [Wells Fargo Home Mortgage, Inc.]
[Signature of Officer]
[Officer's Name and Title]
Except where assignments in blank are authorized or in the case
of
any Mortgage registered in the name of MERS, assignments of any
Mortgage shall
comply with the following:
WACHOVIA BANK, NATIONAL ASSOCIATION, AS
TRUSTEE
and its successors and assigns
Section 2.02 Acceptance by Custodian.
Subject to the provisions of the following paragraph, pursuant
to
the Custodial Agreement, the Custodian, on behalf of the Trustee,
will declare
that it holds and will hold the documents delivered to it pursuant
to Section
2.01 above and the other documents constituting a part of the Owner
Mortgage
Loan Files or Retained Mortgage Loan Files (after the occurrence of
a Document
Transfer Event) delivered to it in trust, upon the trusts herein
set forth, for
the use and benefit of all present and future Certificateholders.
Upon execution
of this Agreement, the Custodian will deliver to the Seller and the
Trustee an
initial certification in the form of Exhibit N hereto, to the
effect that,
except as may be specified in a list of exceptions attached
thereto, it has
received the original Mortgage Notes relating to each Mortgage Loan
on the
Mortgage Loan Schedule.
The Custodian will review each Owner Mortgage Loan File within
45
days after execution of this Agreement. The Custodian will deliver
no later than
30 days after completion of such review to the Seller and the
Trustee a final
certification in the form of Exhibit O hereto to the effect that,
except as may
be specified in a list of exceptions attached thereto, all required
documents
set forth in Section 2.01(a) have been executed and received and
appear regular
on their face, and that such documents relate to the Mortgage Loans
identified
in the Mortgage Loan Schedule based on a comparison of the Mortgage
Loan
identifying number, Mortgagor name and street address, and in so
doing the
Custodian may rely on the purported due execution and genuineness
of any such
document and on the purported genuineness of any signature
thereon.
If within such 45 day period the Custodian finds any document
constituting a part of an Owner Mortgage Loan File not to have been
executed or
received or to be unrelated to the Mortgage Loans identified in the
Mortgage
Loan Schedule or not to appear regular on its face, the Custodian
shall promptly
(and in no event more than 30 days after completion of the review)
notify the
Trustee and the Trustee shall notify the Seller. The Seller shall
have a period
of 60 days after the date of such notice within which to correct or
cure any
such defect. The Seller hereby covenants and agrees that, if any
material defect
is not so corrected or cured, the Seller will, not later than 60
days after the
Trustee's notice to it referred to above respecting such defect,
either (i)
repurchase the related Mortgage Loan or any property acquired in
respect thereof
from the Trust Estate at a price equal to (a) 100% of the unpaid
principal
balance of such Mortgage Loan plus (b) accrued interest at the
Mortgage Interest
Rate through the last day of the month in which such repurchase
takes place or
(ii) if within two years of the Startup Day, or such other period
permitted by
the REMIC Provisions, substitute for any Mortgage Loan to which
such material
defect relates, a new mortgage loan (a "Substitute Mortgage Loan")
having such
characteristics so that the representations and warranties of the
Seller set
forth in Section 2.03(b) hereof (other than Section 2.03(b)(i))
would not have
been incorrect had such Substitute Mortgage Loan originally been a
Mortgage
Loan. In no event shall any Substitute Mortgage Loan have an unpaid
principal
balance, as of the date of substitution, greater than the Scheduled
Principal
Balance (reduced by the scheduled payment of principal due on the
Due Date in
the month of substitution) of the Mortgage Loan for which it is
substituted. In
addition, such Substitute Mortgage Loan (i) shall have a
Loan-to-Value Ratio
less than or equal to and a Net Mortgage Interest Rate equal to
that of the
Mortgage Loan for which it is substituted, (ii) shall have the same
Gross Margin
and Index as that of the Mortgage Loan for which it is substituted
and (iii)
shall have the same frequency of mortgage rate adjustment as that
of the
Mortgage Loan for which it is substituted.
In the case of a repurchased Mortgage Loan or property, the
purchase
price shall be deposited by the Seller in the Certificate Account
maintained by
the Master Servicer pursuant to Section 3.01. In the case of a
Substitute
Mortgage Loan, the Owner Mortgage Loan File (and Retained Mortgage
Loan File, if
required pursuant to Section 2.01(b) hereof) relating thereto shall
be delivered
to the Custodian and the Substitution Principal Amount, together
with (i)
interest on such Substitution Principal Amount at the applicable
Net Mortgage
Interest Rate to the following Due Date of such Mortgage Loan which
is being
substituted for and (ii) an amount equal to the aggregate amount of
unreimbursed
Periodic Advances in respect of interest previously made by the
Servicer, the
Master Servicer or the Trustee with respect to such Mortgage Loan,
shall be
deposited in the Certificate Account. The Monthly Payment on the
Substitute
Mortgage Loan for the Due Date in the month of substitution shall
not be part of
the Trust Estate. Upon receipt by the Custodian of a Request for
Release signed
by an officer of the Seller, the Custodian shall release to the
Seller the
related Owner Mortgage Loan File (and Retained Mortgage Loan File,
if
applicable). The Trustee shall execute and deliver such instrument
of transfer
or assignment (or, in the case of a Mortgage Loan registered in the
name of MERS
or its designee, the Master Servicer shall cause the applicable
Servicer to take
all necessary action to reflect such assignment on the records of
MERS), in each
case without recourse, as shall be necessary to vest in the Seller
legal and
beneficial ownership of such substituted or repurchased Mortgage
Loan or
property. It is understood and agreed that the obligation of the
Seller to
substitute a new Mortgage Loan for or repurchase any Mortgage Loan
or property
as to which such a material defect in a constituent document exists
shall
constitute the sole remedy respecting such defect available to
the
Certificateholders or the Trustee on behalf of the
Certificateholders. The
failure of the Custodian to give the final certification or the
Trustee to give
any notice within the required time periods shall not affect or
relieve the
Seller's obligation to repurchase any Mortgage Loan pursuant to
this Section
2.02.
Section 2.03
Representations and Warranties of the Master Servicer
and the Seller.
(a) The Master Servicer hereby represents and warrants to the
Trustee for the benefit of Certificateholders that, as of the date
of execution
of this Agreement:
(i) The Master Servicer is a national banking association duly
chartered
and validly existing in good standing under the laws of the
United
States;
(ii) The execution and delivery of this Agreement by the Master
Servicer
and its performance and compliance with the terms of this
Agreement
will not violate the Master Servicer's corporate charter or
by-laws or
constitute a default (or an event which, with notice or lapse
of time,
or both, would constitute a default) under, or result in the
breach of,
any material contract, agreement or other instrument to which
the Master
Servicer is a party or which may be applicable to the Master
Servicer
or any of its assets;
(iii) This Agreement, assuming due authorization, execution and
delivery
by the Trustee and the Seller, constitutes a valid, legal and
binding
obligation of the Master Servicer, enforceable against it in
accordance
with the terms hereof subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting
the
enforcement of creditors' rights generally and to general
principles of
equity,
regardless of whether such enforcement is considered in a
proceeding
in equity or at law;
(iv) The Master Servicer is not in default with respect to any
order
or decree
of any court or any order, regulation or demand of any federal,
state,
municipal or governmental agency, which default might have
consequences that would materially and adversely affect the
condition
(financial
or other) or operations of the Master Servicer or its
properties
or might have consequences that would affect its performance
hereunder;
and
(v) No litigation is pending or, to the best of the Master
Servicer's
knowledge, threatened against the Master Servicer which would
prohibit
its entering into this Agreement or performing its obligations
under this
Agreement.
It is understood and agreed that the representations and
warranties
set forth in this Section 2.03(a) shall survive delivery of the
respective Owner
Mortgage Loan Files to the Trustee or the Custodian.
(b) The Seller hereby represents and warrants to the Trustee for
the
benefit of Certificateholders that, as of the date of execution of
this
Agreement, with respect to the Mortgage Loans, or each Mortgage
Loan, as the
case may be:
(i) The information set forth in the Mortgage Loan Schedule was
true
and
correct in all material respects at the date or dates respecting
which
such
information is furnished as specified in the Mortgage Loan
Schedule;
(ii) Immediately prior to the transfer and assignment
contemplated
herein,
the Seller was the sole owner and holder of the Mortgage Loan
free
and clear
of any and all liens, pledges, charges or security interests of
any nature
and has full right and authority to sell and assign the same;
(iii) The Mortgage is a valid, subsisting and enforceable first
lien
on the
property therein described, and the Mortgaged Property is free
and
clear of
all encumbrances and liens having priority over the first lien
of
the
Mortgage except for liens for real estate taxes and special
assessments not yet due and payable and liens or interests arising
under
or as a
result of any federal, state or local law, regulation or
ordinance
relating
to hazardous wastes or hazardous substances, and, if the
related
Mortgaged
Property is a condominium unit, any lien for common charges
permitted
by statute or homeowners association fees; and if the Mortgaged
Property
consists of shares of a cooperative housing corporation, any
lien
for
amounts due to the cooperative housing corporation for unpaid
assessments or charges or any lien of any assignment of rents
or
maintenance expenses secured by the real property owned by the
cooperative
housing
corporation; and any security agreement, chattel mortgage or
equivalent
document related to, and delivered to the Trustee or to the
Custodian
with, any Mortgage establishes in the Seller a valid and
subsisting
first lien on the property described therein and the Seller has
full right
to sell and assign the same to the Trustee;
(iv)
Neither the Seller nor any prior holder of the Mortgage or the
related
Mortgage Note has modified the Mortgage or the related Mortgage
Note in
any material respect, satisfied, canceled or subordinated the
Mortgage
in whole or in part, released the Mortgaged Property in whole
or
in part
from the lien of the Mortgage, or executed any instrument of
release,
cancellation, modification or satisfaction, except in each case
as is
reflected in an agreement delivered to the Trustee or the
Custodian
pursuant
to Section 2.01(a);
(v) All taxes, governmental assessments, insurance premiums,
and
water,
sewer and municipal charges, which previously became due and
owing
have been
paid, or an escrow of funds has been established, to the extent
permitted
by law, in an amount sufficient to pay for every such item
which
remains
unpaid; and the Seller has not advanced funds, or received any
advance of
funds by a party other than the Mortgagor, directly or
indirectly
(except pursuant to any Subsidy Loan arrangement) for the
payment of
any amount required by the Mortgage, except for interest
accruing
from the date of the Mortgage Note or date of disbursement of
the
Mortgage Loan
proceeds, whichever is later, to the day which precedes by
thirty
days the first Due Date under the related Mortgage Note;
(vi) The Mortgaged Property is undamaged by water, fire,
earthquake,
earth
movement other than earthquake, windstorm, flood, tornado or
similar
casualty
(excluding casualty from the presence of hazardous wastes or
hazardous
substances, as to which the Seller makes no representations),
so
as to
affect adversely the value of the Mortgaged Property as security
for
the
Mortgage Loan or the use for which the premises was intended and
to
the best
of the Seller's knowledge, there is no proceeding pending or
threatened
for the total or partial condemnation of the Mortgaged
Property;
(vii) The Mortgaged Property is free and clear of all mechanics'
and
materialmen's liens or liens in the nature thereof; provided,
however,
that this
warranty shall be deemed not to have been made at the time of
the
initial issuance of the Certificates if a title policy affording,
in
substance,
the same protection afforded by this warranty is furnished to
the
Trustee by the Seller;
(viii) Except for Mortgage Loans secured by Co-op Shares and
Mortgage
Loans secured by residential long-term leases, the Mortgaged
Property
consists of a fee simple estate in real property; all of the
improvements which are included for the purpose of determining
the
appraised
value of the Mortgaged Property lie wholly within the
boundaries
and
building restriction lines of such property and no improvements
on
adjoining
properties encroach upon the Mortgaged Property (unless insured
against
under the related title insurance policy); and to the best of
the
Seller's
knowledge, the Mortgaged Property and all improvements thereon
comply
with all requirements of any applicable zoning and subdivision
laws
and
ordinances;
(ix) The Mortgage Loan meets, or is exempt from, applicable state
or
federal
laws, regulations and other requirements, pertaining to usury,
and
the
Mortgage Loan is not usurious;
(x) To the best of the Seller's knowledge, all inspections,
licenses
and certificates
required to be made or issued with respect to all
occupied
portions of the Mortgaged Property and, with respect to the use
and
occupancy of the same, including, but not limited to, certificates
of
occupancy
and fire underwriting certificates, have been made or obtained
from the
appropriate authorities;
(xi) All payments required to be made up to the Due Date
immediately
preceding
the Cut-Off Date for such Mortgage Loan under the terms of the
related Mortgage Note
have been made and no Mortgage Loan had more than
one
delinquency in the 12 months preceding the Cut-Off Date;
(xii) The Mortgage Note, the related Mortgage and other
agreements
executed
in connection therewith are genuine, and each is the legal,
valid
and
binding obligation of the maker thereof, enforceable in
accordance
with its
terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization or other similar laws affecting the
enforcement
of
creditors' rights generally and by general equity principles
(regardless of whether such enforcement is considered in a
proceeding in
equity or
at law); and, to the best of the Seller's knowledge, all
parties
to the
Mortgage Note and the Mortgage had legal capacity to execute
the
Mortgage
Note and the Mortgage and each Mortgage Note and Mortgage has
been duly
and properly executed by the Mortgagor;
(xiii) Each Mortgage Loan at the time it was originated complied
in
all
material respects with applicable federal, state and local laws
including,
without limitation, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit
opportunity,
predatory
and abusive lending laws and disclosure laws;
(xiv) The proceeds of the Mortgage Loans have been fully
disbursed,
there is
no requirement for future advances thereunder and any and all
requirements as to completion of any on-site or off-site
improvements and
as to
disbursements of any escrow funds therefor have been complied
with
(except
for escrow funds for exterior items which could not be
completed
due to
weather and escrow funds for the completion of swimming pools);
and
all costs,
fees and expenses incurred in making, closing or recording the
Mortgage
Loan have been paid, except recording fees with respect to
Mortgages
not recorded as of the Closing Date;
(xv) The Mortgage Loan (except any Mortgage Loan secured by a
Mortgaged
Property located in any jurisdiction, as to which an opinion of
counsel of
the type customarily rendered in such jurisdiction in lieu of
title
insurance is instead received) is covered by an American Land
Title
Association mortgagee title insurance policy or other generally
acceptable
form of
policy or insurance acceptable to Fannie Mae or Freddie Mac,
issued by
a title insurer acceptable to Fannie Mae or Freddie Mac
insuring
the
originator, its successors and assigns, as to the first priority
lien
of the
Mortgage in the original principal amount of the Mortgage Loan
and
subject
only to (A) the lien of current real property taxes and
assessments not yet
due and payable, (B) covenants, conditions and
restrictions, rights of way, easements and other matters of public
record
as of the
date of recording of such Mortgage acceptable to mortgage
lending
institutions in the area in which the Mortgaged Property is
located or
specifically referred to in the appraisal performed in
connection
with the origination of the related Mortgage Loan, (C) liens
created
pursuant to any federal, state or local law, regulation or
ordinance
affording liens for the costs of clean-up of hazardous
substances
or hazardous wastes or for other environmental protection
purposes
and (D) such other matters to which like properties are
commonly
subject
which do not individually, or in the aggregate, materially
interfere
with the benefits of the security intended to be provided by
the
Mortgage;
the Seller is the sole insured of such mortgagee title
insurance
policy,
the assignment to the Trustee of the Seller's interest in such
mortgagee
title insurance policy does not require any consent of or
notification to the insurer which has not been obtained or made,
such
mortgagee
title insurance policy is in full force and effect and will be
in full
force and effect and inure to the benefit of the Trustee, no
claims
have been made under such mortgagee title insurance policy, and
no
prior
holder of the related Mortgage, including the Seller, has done,
by
act or
omission, anything which would impair the coverage of such
mortgagee
title insurance policy;
(xvi) The Mortgaged Property securing each Mortgage Loan is
insured
by an
insurer acceptable to Fannie Mae or Freddie Mac against loss by
fire
and such
hazards as are covered under a standard extended coverage
endorsement, in an amount which is not less than the lesser of 100%
of the
insurable
value of the Mortgaged Property and the outstanding principal
balance of
the Mortgage Loan, but in no event less than the minimum amount
necessary
to fully compensate for any damage or loss on a replacement
cost
basis; if
the Mortgaged Property is a condominium unit, it is included
under the
coverage afforded by a blanket policy for the project; if upon
origination of the Mortgage Loan, the improvements on the
Mortgaged
Property
were in an area identified in the Federal Register by the
Federal
Emergency
Management Agency as having special flood hazards, a flood
insurance
policy meeting the requirements of the current guidelines of
the
Federal
Insurance Administration is in effect with a generally
acceptable
insurance
carrier, in an amount representing coverage not less than the
least of (A) the
outstanding principal balance of the Mortgage Loan, (B)
the full
insurable value of the Mortgaged Property and (C) the maximum
amount of
insurance which was available under the National Flood
Insurance
Act of
1968, as amended; and each Mortgage obligates the Mortgagor
thereunder
to maintain all such insurance at the Mortgagor's cost and
expense;
(xvii) To the best of the Seller's knowledge, there is no
default,
breach,
violation or event of acceleration existing under the Mortgage
or
the
related Mortgage Note and no event which, with the passage of time
or
with
notice and the expiration of any grace or cure period, would
constitute
a default, breach, violation or event of acceleration; the
Seller has
not waived any default, breach, violation or event of
acceleration; and no foreclosure action is currently threatened or
has
been
commenced with respect to the Mortgage Loan;
(xviii) No Mortgage Note or Mortgage is subject to any right of
rescission, set-off, counterclaim or defense, including the defense
of
usury, nor
will the operation of any of the terms of the Mortgage Note or
Mortgage,
or the exercise of any right thereunder, render the Mortgage
Note or
Mortgage unenforceable, in whole or in part, or subject it to
any
right of
rescission, set-off, counterclaim or defense, including the
defense of
usury, and no such right of rescission, set-off, counterclaim
or defense has
been asserted with respect thereto;
(xix) Each Mortgage Note is payable in monthly payments,
resulting
in
complete amortization of the Mortgage Loan over a term of not more
than
360
months;
(xx) Each Mortgage contains customary and enforceable
provisions
such as to
render the rights and remedies of the holder thereof adequate
for the
realization against the Mortgaged Property of the benefits of
the
security,
including realization by judicial foreclosure (subject to any
limitation
arising from any bankruptcy, insolvency or other law for the
relief of
debtors), and there is no homestead or other exemption
available
to the
Mortgagor which would interfere with such right of foreclosure;
(xxi) To the best of the Seller's knowledge, no Mortgagor is a
debtor in
any state or federal bankruptcy or insolvency proceeding;
(xxii) Each Mortgaged Property is located in the United States
and
consists
of a one- to four-unit residential property, which may include
a
detached
home, townhouse, condominium unit or a unit in a planned unit
development or, in the case of Mortgage Loans secured by Co-op
Shares,
leases or
occupancy agreements;
(xxiii) The Mortgage Loan is a "qualified mortgage" within the
meaning of
Section 860G(a)(3) of the Code;
(xxiv) With respect to each Mortgage where a lost note affidavit
has
been
delivered to the Trustee in place of the related Mortgage Note,
the
related
Mortgage Note is no longer in existence;
(xxv) In the event that the Mortgagor is an inter vivos
"living"
trust, (i)
such trust is in compliance with Fannie Mae or Freddie Mac
standards
for inter vivos trusts and (ii) holding title to the Mortgaged
Property
in such trust will not diminish any rights as a creditor
including
the right to full title to the Mortgaged Property in the event
foreclosure proceedings are initiated;
(xxvi) If the Mortgage Loan is secured by a long-term
residential
lease, (1)
the lessor under the lease holds a fee simple interest in the
land; (2)
the terms of such lease expressly permit the mortgaging of the
leasehold
estate, the assignment of the lease without the lessor's
consent
and the
acquisition by the holder of the Mortgage of the rights of the
lessee
upon foreclosure or assignment in lieu of foreclosure or
provide
the holder
of the Mortgage with substantially similar protections; (3) the
terms of
such lease do not (a) allow the termination thereof upon the
lessee's
default without the holder of the Mortgage being entitled to
receive
written notice of, and opportunity to cure, such default, (b)
allow the
termination of the lease in the event of damage or destruction
as long as
the Mortgage is in existence, (c) prohibit the holder of the
Mortgage
from being insured (or receiving proceeds of insurance) under
the
hazard
insurance policy or policies relating to the Mortgaged Property
or
(d) permit
any increase in rent other than pre-established increases set
forth in
the lease; (4) the original term of such lease is not less than
15 years;
(5) the term of such lease does not terminate earlier than five
years
after the maturity date of the Mortgage Note; and (6) the
Mortgaged
Property
is located in a jurisdiction in which the use of leasehold
estates in
transferring ownership in residential properties is a widely
accepted
practice;
(xxvii) No Mortgage Loan is a "high cost" loan as defined under
any
federal,
state or local law applicable to such Mortgage Loan at the time
of its
origination;
(xxviii) No Mortgage Loan is serviced by the Trustee or an
affiliate
of the
Trustee; and
(xxix) No Mortgage Loan (other than a Mortgage Loan that is a
New
Jersey
covered purchase loan) is a High Cost Loan or Covered Loan, as
applicable
(as such terms are defined in S&P's LEVELS(R) Glossary
Version
5.6
Revised, Appendix E) and no Mortgage Loan originated on or
after
October 1,
2002 through March 6, 2003 is governed by the Georgia Fair
Lending
Act.
Notwithstanding the foregoing, no representations or warranties
are
made by the Seller as to the environmental condition of any
Mortgaged Property;
the absence, presence or effect of hazardous wastes or hazardous
substances on
any Mortgaged Property; any casualty resulting from the presence or
effect of
hazardous wastes or hazardous substances on, near or emanating from
any
Mortgaged Property; the impact on Certificateholders of any
environmental
condition or presence of any hazardous substance on or near any
Mortgaged
Property; or the compliance of any Mortgaged Property with any
environmental
laws, nor is any agent, person or entity otherwise affiliated with
the Seller
authorized or able to make any such representation, warranty or
assumption of
liability relative to any Mortgaged Property. In addition, no
representations or
warranties are made by the Seller with respect to the absence or
effect of fraud
in the origination of any Mortgage Loan.
It is understood and agreed that the representations and
warranties
set forth in this Section 2.03(b) shall survive delivery of the
respective Owner
Mortgage Loan Files (and Retained Mortgage Loan Files, if
applicable) to the
Custodian and shall inure to the benefit of the Trustee
notwithstanding any
restrictive or qualified endorsement or assignment.
(c) Upon discovery by either the Seller, the Master Servicer,
the
Trustee or the Custodian that any of the representations and
warranties made in
subsection (b) above is not accurate (referred to herein as a
"breach") and,
except for a breach of the representation and warranty set forth in
subsection
(b)(i), where such breach is a result of the Cut-Off Date Principal
Balance of a
Mortgage Loan being greater, by $5,000 or greater, than the Cut-Off
Date
Principal Balance of such Mortgage Loan indicated on the Mortgage
Loan Schedule,
that such breach materially and adversely affects the interests of
the
Certificateholders in the related Mortgage Loan, the party
discovering such
breach shall give prompt written notice to the other parties (any
Custodian
being so obligated under a Custodial Agreement). Within 60 days of
the earlier
of its discovery or its receipt of notice of any such breach, the
Seller shall
cure such breach in all material respects or shall either (i)
repurchase the
Mortgage Loan or any property acquired in respect thereof from the
Trust Estate
at a price equal to (A) 100% of the unpaid principal balance of
such Mortgage
Loan plus (B) accrued interest at the Net Mortgage Interest Rate
for such
Mortgage Loan through the last day of the month in which such
repurchase took
place or (ii) if within two years of the Startup Day, or such other
period
permitted by the REMIC Provisions, substitute for such Mortgage
Loan in the
manner described in Section 2.02. In addition to the foregoing, if
a breach of
the representation set forth in clause (b)(xiii) or (xxix) of this
Section 2.03
occurs as a result of a violation of an applicable predatory or
abusive lending
law, the Seller shall reimburse the Trust for all costs and damages
including,
but not limited to, reasonable attorneys' fees and costs, incurred
by the Trust
as a result of the violation of such law (such amount, the
"Reimbursement
Amount"). The purchase price of any repurchase described in this
paragraph, the
Substitution Principal Amount, if any, plus accrued interest
thereon and the
other amounts referred to in Section 2.02, and any Reimbursement
Amount shall be
deposited in the Certificate Account. It is understood and agreed,
except with
respect to the second preceding sentence, that the obligation of
the Seller to
repurchase or substitute for any Mortgage Loan or property as to
which such a
breach has occurred and is continuing shall constitute the sole
remedy
respecting such breach available to Certificateholders or the
Trustee on behalf
of Certificateholders, and such obligation shall survive until
termination of
the Trust Estate hereunder.
Section 2.04 Execution
and Delivery of Certificates.
The Trustee acknowledges (i) the assignment to it of the
Mortgage
Loans, (ii) the issuance of and hereby declares that it holds the
Uncertificated
Lower-Tier Interests on behalf of the Upper-Tier REMIC and
Certificateholders.
The Trustee acknowledges the delivery of the Owner Mortgage Loan
Files to the
Custodian on behalf of the Trustee, and, concurrently with such
delivery has
executed and delivered to or upon the order of the Seller, in
exchange for the
Mortgage Loans and Uncertificated Lower-Tier Interests, together
with all other
assets included in the definition of "Trust Estate", receipt of
which is hereby
acknowledged, Certificates in authorized denominations which,
together with the
Uncertificated Lower-Tier Interests, evidence ownership of the
entire Trust
Estate.
Section 2.05
Designation of Certificates; Designation of Startup
Day and Latest Possible Maturity Date.
The Seller hereby designates the Classes of Class A
Certificates
(other than the Class II-A-R and Class II-A-LR Certificates) and
the Classes of
Class B Certificates as classes of "regular interests" and the
Class II-A-R
Certificate as the single class of "residual interest" in the
Upper-Tier REMIC
for the purposes of Code Sections 860G(a)(1) and 860G(a)(2),
respectively. The
Seller hereby further designates the Class I-L Interest, Class I-LS
Interest,
Class II-L Interest, Class II-LS Interest, Class III-L Interest and
Class III-LS
Interest as classes of "regular interests" and the Class II-A-LR
Certificate as
the single class of "residual interest" in the Lower-Tier REMIC for
the purposes
of Code Sections 860G(a)(1) and 860G(a)(2), respectively. The
Closing Date is
hereby designated as the "Startup Day" of each of the Upper-Tier
REMIC and the
Lower-Tier REMIC within the meaning of Code Section 860G(a)(9). The
"latest
possible maturity date" of the regular interests in the Upper-Tier
REMIC and the
Lower-Tier REMIC is January 25, 2035 for purposes of Code Section
860G(a)(1).
Section 2.06 Optional
Substitution of Mortgage Loans.
During the three-month period beginning on the Startup Date,
the
Seller shall have the right, but not the obligation, in its sole
discretion for
any reason, to substitute for any Group I, Group II or Group III
Mortgage Loan,
a Substitute Mortgage Loan meeting the requirements of Section
2.02. Any such
substitution shall be carried out in the manner described in
Section 2.02. The
Substitution Principal Amount, if any, plus accrued interest
thereon and the
other amounts referred to in Section 2.02, shall be deposited in
the Certificate
Account.
<PAGE>
ARTICLE III
ADMINISTRATION OF THE TRUST ESTATE; SERVICING
OF THE MORTGAGE LOANS
Section 3.01 Certificate Account.
(a) The Master Servicer shall establish and maintain a
Certificate
Account for the deposit of funds received by the Master Servicer
with respect to
the Mortgage Loans serviced by each Servicer pursuant to each of
the Servicing
Agreements. Such account shall be maintained as an Eligible
Account. The Master
Servicer shall give notice to each Servicer and the Seller of the
location of
the Certificate Account and of any change in the location
thereof.
(b) The Master Servicer shall deposit into the Certificate
Account
on the day of receipt thereof all amounts received by it from any
Servicer
pursuant to any of the Servicing Agreements and amounts received
from draws on
any Letters of Credit and shall, in addition, deposit into the
Certificate
Account the following amounts, in the case of amounts specified in
clause (i),
not later than the Business Day preceding the Distribution Date on
which such
amounts are required to be distributed to Certificateholders and,
in the case of
the amounts specified in clause (ii), not later than the Business
Day next
following the day of receipt and posting by the Master
Servicer:
(i) Periodic Advances pursuant to Section 3.03(a) made by the
Master
Servicer
or the Trustee, if any and any amounts deemed received by the
Master
Servicer pursuant to Section 3.01(d); and
(ii) in the case of any Mortgage Loan that is repurchased by
the
Seller
pursuant to Section 2.02, 2.03, 3.08 or 9.01 or that is
auctioned
by the
Master Servicer pursuant to Section 3.08, the purchase price
therefor
or, where applicable, any Substitution Principal Amount and any
amounts
received in respect of the interest portion of unreimbursed
Periodic
Advances.
(c) The Master Servicer shall cause the funds in the
Certificate
Account to be invested in Eligible Investments. No such Eligible
Investments
will be sold or disposed of at a gain prior to maturity unless the
Master
Servicer has received an Opinion of Counsel or other evidence
satisfactory to it
that such sale or disposition will not cause the Trust Estate to be
subject to
Prohibited Transactions Tax, otherwise subject the Trust Estate to
tax, or cause
either of the Upper-Tier REMIC or the Lower-Tier REMIC to fail to
qualify as a
REMIC while any Certificates are outstanding. Any amounts deposited
in the
Certificate Account prior to the Distribution Date shall be
invested for the
account of the Master Servicer and any investment income thereon
shall be
additional compensation to the Master Servicer for services
rendered under this
Agreement. The amount of any losses incurred in respect of any such
investments
shall be deposited in the Certificate Account by the Master
Servicer out of its
own funds immediately as realized, without any right of
reimbursement therefor
from the Trust Estate.
(d) For purposes of this Agreement, the Master Servicer will be
deemed to have received from a Servicer on the applicable
Remittance Date for
such funds all amounts deposited by such Servicer into the
Custodial P&I Account
maintained in accordance with the applicable Servicing Agreement,
if such
Custodial P&I Account is not an Eligible Account as defined in
this Agreement,
to the extent such amounts are not actually received by the Master
Servicer on
such Remittance Date as a result of the bankruptcy, insolvency,
receivership or
other financial distress of the depository institution in which
such Custodial
P&I Account is being held. To the extent that amounts so deemed
to have been
received by the Master Servicer are subsequently remitted to the
Master
Servicer, the Master Servicer shall be entitled to retain such
amounts.
Section 3.02 Permitted Withdrawals from the Certificate
Account.
(a) The Master Servicer may, from time to time, make
withdrawals
from the Certificate Account for the following purposes (limited,
in the case of
Servicer reimbursements, to cases where funds in the respective
Custodial P&I
Account are not sufficient therefor):
(i) to reimburse the Master Servicer, the Trustee or any
Servicer
for
Periodic Advances made by the Master Servicer or the Trustee
pursuant
to Section
3.03(a) or any Servicer pursuant to any Servicing Agreement
with
respect to previous Distribution Dates, such right to
reimbursement
pursuant
to this subclause (i) being limited to amounts received on or
in
respect of
particular Mortgage Loans (including, for this purpose,
Liquidation Proceeds, REO Proceeds and proceeds from the purchase,
sale,
repurchase
or substitution of Mortgage Loans pursuant to Section 2.02,
2.03,
2.06, 3.08 or 9.01) respecting which any such Periodic Advance
was
made;
(ii) to reimburse any Servicer, the Master Servicer or the
Trustee
for any
Periodic Advances determined in good faith to have become
Nonrecoverable Advances;
(iii) to reimburse the Master Servicer or any Servicer from
Liquidation Proceeds for Liquidation Expenses and for amounts
expended by
the Master
Servicer or any Servicer pursuant hereto or to any Servicing
Agreement,
respectively, in good faith in connection with the restoration
of damaged
property or for foreclosure expenses;
(iv) from any Mortgagor payment on account of interest or other
recovery
(including Net REO Proceeds) with respect to a particular
Mortgage
Loan, to pay the Master Servicing Fee with respect to such
Mortgage
Loan to the Master Servicer;
(v) to reimburse the Master Servicer, any Servicer or the
Trustee
(or, in
certain cases, the Seller) for expenses incurred by it
(including
taxes paid
on behalf of the Trust Estate) and recoverable by or
reimbursable to it pursuant to Section 3.03(c), 3.03(d), 3.09 or
6.03 or
the second
sentence of Section 8.13(a) or pursuant to such Servicer's
Servicing
Agreement, provided such expenses are "unanticipated" within
the
meaning of
the REMIC Provisions;
(vi) to pay to the Seller or other purchaser with respect to
each
Mortgage
Loan or property acquired in respect thereof that has been
repurchased or replaced pursuant to Section 2.02, 2.03, 2.06, 3.08
or 9.01
or
auctioned pursuant to Section 3.08, all amounts received thereon
and
not
required to be distributed as of the date on which the related
repurchase
or purchase price or Scheduled Principal Balance was
determined;
(vii) to remit funds to the Paying Agent in the amounts and in
the
manner
provided for herein;
(viii) to pay to the Master Servicer any interest earned on or
investment
income with respect to funds in the Certificate Account;
(ix) to pay to the Master Servicer or any Servicer out of
Liquidation Proceeds allocable to interest the amount of any unpaid
Master
Servicing
Fee or Servicing Fee (as adjusted pursuant to the related
Servicing
Agreement) and any unpaid assumption fees, late payment charges
or other
Mortgagor charges on the related Mortgage Loan;
(x) to pay to the Master Servicer as additional master
servicing
compensation any Liquidation Profits which a Servicer is not
entitled to
pursuant
to the applicable Servicing Agreement;
(xi) to withdraw from the Certificate Account any amount
deposited
in the
Certificate Account that was not required to be deposited
therein;
and
(xii) to clear and terminate the Certificate Account pursuant
to
Section
9.01.
The Master Servicer shall keep and maintain separate accounting,
on
a Mortgage Loan by Mortgage Loan basis, for the purpose of
justifying any
payment to and withdrawal from the Certificate Account.
Section 3.03 Advances by Master Servicer and Trustee.
In the event an Other Servicer fails to make any required
Periodic
Advances of principal and interest on a Mortgage Loan as required
by the related
Other Servicing Agreement prior to the Business Day preceding the
Distribution
Date occurring in the month during which such Periodic Advance is
due, the
Master Servicer shall make Periodic Advances to the extent provided
hereby. In
the event Wells Fargo Bank in its capacity as Servicer fails to
make any
required Periodic Advances of principal and interest on a Mortgage
Loan as
required by the Wells Fargo Bank Servicing Agreement prior to the
Business Day
preceding the Distribution Date occurring in the month during which
such
Periodic Advance is due, the Trustee shall, to the extent required
by Section
8.14, make such Periodic Advance to the extent provided hereby,
provided that
the Trustee has previously received the certificate of the Master
Servicer
described in the following sentence. The Master Servicer shall
certify to the
Trustee with respect to any such Distribution Date (i) the amount
of Periodic
Advances required of Wells Fargo Bank in its capacity as Servicer
or such Other
Servicer, as the case may be, (ii) the amount actually advanced by
Wells Fargo
Bank in its capacity as Servicer or such Other Servicer, (iii) the
amount that
the Trustee or Master Servicer is required to advance hereunder and
(iv) whether
the Master Servicer has determined that it reasonably believes that
such
Periodic Advance is a Nonrecoverable Advance. Amounts advanced by
the Trustee or
Master Servicer shall be deposited in the Certificate Account on
the Business
Day preceding the related Distribution Date. Notwithstanding the
foregoing,
neither the Master Servicer nor the Trustee will be obligated to
make a Periodic
Advance that it reasonably believes to be a Nonrecoverable Advance.
The Trustee
may conclusively rely for any determination to be made by it
hereunder upon the
determination of the Master Servicer as set forth in its
certificate.
To the extent an Other Servicer fails to make an advance on
account
of the taxes or insurance premiums with respect to a Mortgage Loan
required
pursuant to the related Other Servicing Agreement, the Master
Servicer shall, if
the Master Servicer has actual knowledge of such failure of the
Servicer,
advance such funds and take such steps as are necessary to pay such
taxes or
insurance premiums. To the extent Wells Fargo Bank in its capacity
as Servicer
fails to make an advance on account of the taxes or insurance
premiums with
respect to a Mortgage Loan required pursuant to the Wells Fargo
Bank Servicing
Agreement, the Master Servicer shall, if the Master Servicer knows
of such
failure of Wells Fargo Bank in its capacity as Servicer, certify to
the Trustee
that such failure has occurred. Upon receipt of such certification,
the Trustee
shall advance such funds and take such steps as are necessary to
pay such taxes
or insurance premiums.
The Master Servicer and the Trustee shall each be entitled to
be
reimbursed from the Certificate Account for any Periodic Advance
made by it
under Section 3.03(a) to the extent described in Section
3.02(a)(i). The Master
Servicer and the Trustee shall be entitled to be reimbursed
pursuant to Section
3.02(a)(v) for any advance by it pursuant to Section 3.03(b). The
Master
Servicer shall diligently pursue restora
