EXHIBIT 4
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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 April 28, 2005
$600,001,122.32
Mortgage Pass-Through Certificates
Series 2005-3
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<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..............................
Section 4.07 Determination of
LIBOR.......................................
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 Class A
Percentage..................................
Section 11.04 Original Principal Balances
of the Classes of Class A
Certificates................................................
Section 11.05 Original Aggregate Non-PO
Principal Balance..................
Section 11.06 Original Class B Principal
Balance...........................
Section 11.07 Original Principal Balances
of the Classes of Class B
Certificates................................................
Section 11.08 Original Class B-1 Fractional
Interest.......................
Section 11.09 Original Class B-2 Fractional
Interest.......................
Section 11.10 Original Class B-3 Fractional
Interest.......................
Section 11.11 Original Class B-4 Fractional
Interest.......................
Section 11.12 Original Class B-5 Fractional
Interest.......................
Section 11.13 Original Class B-1
Percentage................................
Section 11.14 Original Class B-2
Percentage................................
Section 11.15 Original Class B-3
Percentage................................
Section 11.16 Original Class B-4
Percentage................................
Section 11.17 Original Class B-5
Percentage................................
Section 11.18 Original Class B-6
Percentage................................
Section 11.19 Closing
Date.................................................
Section 11.20 Right to
Purchase............................................
Section 11.21 Wire Transfer
Eligibility....................................
Section 11.22 Single
Certificate...........................................
Section 11.23 Servicing Fee
Rate...........................................
Section 11.24 Master Servicing Fee
Rate....................................
SCHEDULE I -
Applicable Unscheduled Principal Receipt Period
SCHEDULE II
Schedules of PAC Groups
<PAGE>
EXHIBITS
EXHIBIT A-1 -
Form
of Face of Class A-1 Certificate
EXHIBIT A-2 -
Form
of Face of Class A-2 Certificate
EXHIBIT A-3 -
Form
of Face of Class A-3 Certificate
EXHIBIT A-4 -
Form
of Face of Class A-4 Certificate
EXHIBIT A-5 -
Form
of Face of Class A-5 Certificate
EXHIBIT A-6 -
Form
of Face of Class A-6 Certificate
EXHIBIT A-7 -
Form
of Face of Class A-7 Certificate
EXHIBIT A-8 -
Form
of Face of Class A-8 Certificate
EXHIBIT A-9 -
Form
of Face of Class A-9 Certificate
EXHIBIT A-10 -
Form
of Face of Class A-10 Certificate
EXHIBIT A-11 -
Form
of Face of Class A-11 Certificate
EXHIBIT A-12 -
Form
of Face of Class A-12 Certificate
EXHIBIT A-13 -
Form
of Face of Class A-13 Certificate
EXHIBIT A-14 -
Form
of Face of Class A-14 Certificate
EXHIBIT A-15 - Form of Face of
Class A-15 Certificate
EXHIBIT A-R -
Form
of Face of Class A-R Certificate
EXHIBIT A-PO -
Form
of Face of Class A-PO 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 2005-3 Certificates
EXHIBIT D
-
Reserved
EXHIBIT E
-
Custodial Agreement
EXHIBIT F-1 -
Schedule of Type 1 Mortgage Loans
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
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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
<PAGE>
This Pooling and Servicing Agreement, dated as of April 28,
2005
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
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.
Accretion Termination Date: With respect to (a) the Class A-7
Certificates, the earlier to occur of (i)
the Distribution Date following the
Distribution Date on which the Principal
Balances of the Class A-5 and Class A-6
Certificates have been reduced to zero or
(ii) the Subordination Depletion Date
and (b) the Class A-9 Certificates, the
earlier to occur of (i) the Distribution
Date following the Distribution Date on
which the Principal Balance of the Class
A-8 Certificates has been reduced to zero
or (ii) the Subordination Depletion
Date.
Accrual Certificates: Either of the Class A-7 or Class A-9
Certificates.
Accrual Distribution Amount: As to any Distribution Date prior
to
the applicable Accretion Termination Date
and a Class of Accrual Certificates,
an amount equal to the sum of (i) the Class
A Interest Percentage of such Class
of Accrual Certificates of the Current
Class A Interest Distribution Amount and
(ii) the Class A Interest Shortfall
Percentage of such Class of Accrual
Certificates of the amount distributed in
respect of the Classes of Class A
Certificates pursuant to Paragraph second
of Section 4.01(a) on such
Distribution Date. As to any Distribution
Date and a Class of Accrual
Certificates on or after the Accretion
Termination Date, zero.
Adjusted Pool Amount: With respect to any Distribution Date,
the
Cut-Off Date Aggregate Principal Balance of
the Mortgage Loans minus the sum of
(i) all amounts in respect of principal
received in respect of the 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
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 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.
Adjusted Pool Amount (PO Portion): With respect to any
Distribution
Date, the sum of the amounts, calculated as
follows, with respect to all
Outstanding Mortgage Loans: the product of
(i) the PO Fraction for each such
Mortgage Loan and (ii) the remainder of (A)
the Cut-Off Date Principal Balance
of such Mortgage Loan minus (B) the sum of
(x) all amounts in respect of
principal received in respect of such
Mortgage Loan (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, (y) the principal portion of any
Liquidated Loan Losses incurred on such
Mortgage Loans for which 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
(z) the principal portion of all Bankruptcy
Losses (other than Debt Service
Reductions) incurred on the 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.
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 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 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) 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.
Aggregate Class A Unpaid Interest Shortfall: As to any
Distribution
Date, an amount equal to the sum of the
Class A Unpaid Interest Shortfalls for
all the Classes of Class A
Certificates.
Aggregate Non-PO Principal Balance: As of any Determination
Date,
the sum of the Class A Non-PO Principal
Balance and the Class B Principal
Balance as of such date.
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.
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 A-1 Certificates,
Class
A-2 Certificates, Class A-3 Certificates,
Class A-4 Certificates, Class A-5
Certificates, Class A-6 Certificates, Class
A-7 Certificates, Class A-8
Certificates, Class A-9 Certificates, Class
A-10 Certificates, Class A-11
Certificates, Class A-12 Certificates,
Class A-13 Certificates, Class A-14
Certificates, Class A-15 Certificates,
Class A-PO 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 A Certificate: Any of the Class A-1 Certificates, Class
A-2
Certificates, Class A-3 Certificates, Class
A-4 Certificates, Class A-5
Certificates, Class A-6 Certificates, Class
A-7 Certificates, Class A-8
Certificates, Class A-9 Certificates, Class
A-10 Certificates, Class A-11
Certificates, Class A-12 Certificates,
Class A-13 Certificates, Class A-14
Certificates, Class A-15 Certificates,
Class A-R Certificate and Class A-PO
Certificates.
Class A Certificateholder: The registered holder of a Class A
Certificate.
Class A Distribution Amount: As to any Distribution Date and
any
Class of Class A Certificates (other than
the Classes of Accrual Certificates
and Class A-PO Certificates), the amount
distributable to such Class of Class A
Certificates pursuant to Paragraphs first,
second and third clause (1) of
Section 4.01(a). As to a Class of Accrual
Certificates, (a) as to any
Distribution Date prior to the applicable
Accretion Termination Date, the amount
distributable to such Class of Accrual
Certificates pursuant to the provisos in
Paragraphs first and second of Section
4.01(a) and Paragraph third clause (1) of
Section 4.01(a) and (b) as to any
Distribution Date on or after the applicable
Accretion Termination Date, the amount
distributable to such Class of Accrual
Certificates pursuant to Paragraphs first,
second and third of Section 4.01(a).
As to any Distribution Date and the Class
A-PO Certificates, the amount
distributable to the Class A-PO
Certificates pursuant to Paragraphs third clause
(2) and fourth of Section 4.01(a) on such
Distribution Date.
Class A Interest Accrual Amount: As to any Distribution Date,
the
sum of the Interest Accrual Amounts for the
Class A Certificates with respect to
such Distribution Date.
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 Class A
Interest Accrual Amount (determined
without regard to clause (ii) of the
definition of each Interest Accrual
Amount).
Class A Interest Shortfall Amount: As to any Distribution Date
and
any Class of Class 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 of Section 4.01(a)
including, in the case of a Class of Accrual
Certificates prior to the applicable
Accretion Termination Date, the amount
included in the Accrual Distribution Amount
pursuant to clause (i) of the
definition thereof.
Class A Interest Shortfall Percentage: As to any Distribution
Date
and any Class of Class A Certificates, the
percentage calculated by dividing the
Class A Unpaid Interest Shortfall for such
Class by the Aggregate Class A Unpaid
Interest Shortfall, in each case determined
as of the day preceding the
applicable Distribution Date.
Class A Loss Denominator: As to any Determination Date, an
amount
equal to the Class A Non-PO Principal
Balance (less the Principal Balances of
the Classes of Accrual Certificates) and
(ii) with respect to a Class of Accrual
Certificates, the lesser of the Principal
Balance of such Class of Accrual
Certificates and the Original Principal
Balance of such Class of Accrual
Certificates.
Class A Loss Percentage: As to any Determination Date and any
Class
of Class A Certificates (other than the
Class A-PO Certificates), the percentage
calculated by dividing the Principal
Balance of such Class (or, in the case of a
Class of Accrual Certificates, the Original
Principal Balance of such Class of
Accrual Certificates, if lower) by the
Class A Loss Denominator (determined
without regard to any such Principal
Balance of any Class of Class A
Certificates not then outstanding), in each
case determined as of the preceding
Determination Date.
Class A Non-PO Optimal Amount: As to any Distribution Date, the
sum
for such Distribution Date of (i) the Class
A Interest Accrual Amount, (ii) the
Aggregate Class A Unpaid Interest Shortfall
and (iii) the Class A Non-PO Optimal
Principal Amount.
Class A Non-PO Optimal Principal Amount: As to any Distribution
Date, an amount equal to the sum of (I) the
sum, as to each Mortgage Loan that
is an Outstanding Mortgage Loan, of the
product of (x) the Non-PO Fraction with
respect to such Mortgage Loan, and (y) the
sum of:
(i) the Class 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 Class 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 Class 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, 2.03 or 3.08;
and
(iv) the Class 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 Class A Prepayment Percentage of the Non-PO Recovery
for
such
Distribution Date.
Class A Non-PO Principal Balance: As of any date, an amount equal
to
the Class A Principal Balance less the
Principal Balance of the Class A-PO
Certificates.
Class A Non-PO Principal Distribution Amount: As to any
Distribution
Date, the aggregate amount distributed in
respect of the Classes of A
Certificates pursuant to Paragraph third
clause (1) of Section 4.01(a).
Class A Pass-Through Rate: As to the Class A-3, Class A-4,
Class
A-7, Class A-8, Class A-9, Class A-10,
Class A-11, Class A-12, Class A-13, Class
A-14, Class A-15 and Class A-R
Certificates, 5.500% per annum As to the Class
A-1, Class A-2, Class A-5 and Class A-6
Certificates, the Class A-1 Pass-Through
Rate, Class A-2 Pass-Through Rate, Class
A-5 Pass-Through Rate and Class A-6
Pass-Through Rate, respectively. The Class
A-PO Certificates are not entitled to
interest and have no Class A Pass-Through
Rate.
Class 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 Class A
Non-PO Principal Balance (determined
as of the Determination Date preceding such
Distribution Date) by the Pool
Balance (Non-PO Portion). As to any
Distribution Date occurring subsequent to
the Subordination Depletion Date, 100% or
such lesser percentage which will
cause the Class A Non-PO Principal Balance
to decline to zero following the
distribution made on such Distribution
Date.
Class A Prepayment Percentage: As to any Distribution Date to
and
including the Distribution Date in April
2010, 100%. As to any Distribution Date
subsequent to April 2010 to and including
the Distribution Date in April 2011,
the Class A Percentage as of such
Distribution Date plus 70% of the Subordinated
Percentage as of such Distribution Date. As
to any Distribution Date subsequent
to April 2011 to and including the
Distribution Date in April 2012, the Class A
Percentage as of such Distribution Date
plus 60% of the Subordinated Percentage
as of such Distribution Date. As to any
Distribution Date subsequent to April
2012 to and including the Distribution Date
in April 2013, the Class A
Percentage as of such Distribution Date
plus 40% of the Subordinated Percentage
as of such Distribution Date. As to any
Distribution Date subsequent to April
2013 to and including the Distribution Date
in April 2014, the Class A
Percentage as of such Distribution Date
plus 20% of the Subordinated Percentage
as of such Distribution Date. As to any
Distribution Date subsequent to April
2014, the Class A Percentage as of such
Distribution Date. The foregoing is
subject to the following: (i) if the
aggregate distribution to Holders of Class
A Certificates on any Distribution Date of
the Class A Prepayment Percentage
provided above of Unscheduled Principal
Receipts distributable on such
Distribution Date would reduce the Class A
Non-PO Principal Balance below zero,
the Class A Prepayment Percentage for such
Distribution Date shall be the
percentage necessary to bring the Class A
Non-PO Principal Balance to zero and
thereafter the Class A Prepayment
Percentage shall be zero and (ii) if the Class
A Percentage as of any Distribution Date is
greater than the Original Class A
Percentage, the Class A Prepayment
Percentage for such Distribution Date shall
be 100%. Notwithstanding the foregoing,
with respect to any Distribution Date on
which the following criteria are not met,
the reduction of the Class A
Prepayment Percentage described in the
second through sixth sentences of this
definition of Class A Prepayment Percentage
shall not be applicable with respect
to such Distribution Date. In such event,
the Class 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 above, which was
actually used to determine the Class A
Prepayment Percentage for the
Distribution Date occurring in the April
preceding such Distribution Date (it
being understood that for the purposes of
the determination of the Class A
Prepayment Percentage for the current
Distribution Date, the current Class A
Percentage and Subordinated Percentage
shall be utilized).
No reduction in the Class A Prepayment Percentage referred to in
the
second through sixth sentences hereof shall
be applicable, with respect to any
Distribution Date if (a) the average
outstanding principal balance on such
Distribution Date and for the preceding
five Distribution Dates on the Mortgage
Loans that were delinquent 60 days or more
(including for this purpose any
payments due with respect to Mortgage Loans
in foreclosure and REO Mortgage
Loans) were greater than or equal to 50% of
the Class B Principal Balance or (b)
cumulative Realized Losses on the Mortgage
Loans exceed (1) 30% of the Original
Class B Principal Balance if such
Distribution Date occurs between and including
May 2010 and April 2011, (2) 35% of the
Original Class B Principal Balance if
such Distribution Date occurs between and
including May 2011 and April 2012, (3)
40% of the Original Class B Principal
Balance if such Distribution Date occurs
between and including May 2012 and April
2013, (4) 45% of the Original Class B
Principal Balance if such Distribution Date
occurs between and including May
2013 and April 2014, and (5) 50% of the
Original Class B Principal Balance if
such Distribution Date occurs during or
after May 2014. With respect to any
Distribution Date on which the Class A
Prepayment Percentage is reduced below
the Class 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
the preceding sentence are met.
Class A Principal Balance: As of any date, an amount equal to
the
sum of the Principal Balances for the Class
A-1 Certificates, Class A-2
Certificates, Class A-3 Certificates, Class
A-4 Certificates, Class A-5
Certificates, Class A-6 Certificates, Class
A-7 Certificates, Class A-8
Certificates, Class A-9 Certificates, Class
A-10 Certificates, Class A-11
Certificates, Class A-12 Certificates,
Class A-13 Certificates, Class A-14
Certificates, Class A-15 Certificates,
Class A-PO Certificates and Class A-R
Certificate.
Class A Unpaid Interest Shortfall: As to any Distribution Date
and
any Class of Class A Certificates, the
amount, if any, by which the aggregate of
the Class A Interest Shortfall Amounts for
such Class (or in the case of a Class
of Accrual Certificates prior to the
applicable Accretion Termination Date, the
amount included in the Accrual Distribution
Amount pursuant to clause (ii) of
the definition thereof) 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).
Class 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-1 and Exhibit C hereto.
Class A-1 Certificateholder: The registered holder of a Class
A-1
Certificate.
Class A-1 Pass-Through Rate: With respect to the Distribution
Date
occurring in May 2005, 10.736% per annum.
With respect to each succeeding
Distribution Date, a per annum rate,
determined by the Trustee on the applicable
Rate Determination Date, equal to 17.05%
minus the product of 2.2 times LIBOR,
subject to a minimum rate of 0.000% and a
maximum rate of 17.05%.
Class 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-2 and Exhibit C hereto.
Class A-2 Certificateholder: The registered holder of a Class
A-2
Certificate.
Class A-2 Pass-Through Rate: With respect to the Distribution
Date
occurring in May 2005, 3.120% per annum.
With respect to each succeeding
Distribution Date, a per annum rate,
determined by the Trustee on the applicable
Rate Determination Date, equal to LIBOR
plus 0.25%, subject to a minimum rate of
0.250% and a maximum rate of 8.000%
Class 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-3 and Exhibit C hereto.
Class A-3 Certificateholder: The registered holder of a Class
A-3
Certificate.
Class A-3 Loss Amount: With respect to any Determination Date
after
the applicable Subordination Depletion
Date, the amount, if any, by which the
Principal Balance of the Class A-3
Certificates would be reduced as a result of
the application of the third sentence of
the definition of Principal Balance.
Class A-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
A-4 and Exhibit C hereto.
Class A-4 Certificateholder: The registered holder of a Class
A-4
Certificate.
Class A-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
A-5 and Exhibit C hereto.
Class A-5 Certificateholder: The registered holder of a Class
A-5
Certificate.
Class A-5 Pass-Through Rate: With respect to the Distribution
Date
occurring in May 2005, 3.370% per annum.
With respect to each succeeding
Distribution Date, a per annum rate,
determined by the Trustee on the applicable
Rate Determination Date, equal to LIBOR
plus 0.50%, subject to a minimum rate of
0.500% and a maximum rate of 7.000%.
Class A-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
A-6 and Exhibit C hereto.
Class A-6 Certificateholder: The registered holder of a Class
A-6
Certificate.
Class A-6 Pass-Through Rate: With respect to the Distribution
Date
occurring in May 2005, 13.3099999% per
annum. With respect to each succeeding
Distribution Date, a per annum rate,
determined by the Trustee on the applicable
Rate Determination Date, equal to
23.83333331% minus the product of 3.6666667
times LIBOR, subject to a minimum rate of
0.000% and a maximum rate of
23.83333331%.
Class A-7 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-7 and Exhibit C hereto.
Class A-7 Certificateholder: The registered holder of a Class
A-7
Certificate.
Class A-8 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-8 and Exhibit C hereto.
Class A-8 Certificateholder: The registered holder of a Class
A-8
Certificate.
Class A-9 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-9 and Exhibit C hereto.
Class A-9 Certificateholder: The registered holder of a Class
A-9
Certificate.
Class A-10 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-10 and Exhibit C hereto.
Class A-10 Certificateholder: The registered holder of a Class
A-10
Certificate.
Class A-11 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-11 and Exhibit C hereto.
Class A-11 Certificateholder: The registered holder of a Class
A-11
Certificate.
Class A-12 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-12 and Exhibit C hereto.
Class A-12 Certificateholder: The registered holder of a Class
A-12
Certificate.
Class A-12 Loss Amount: With respect to any Determination Date
after
the applicable Subordination Depletion
Date, the amount, if any, by which the
Principal Balance of the Class A-12
Certificates would be reduced as a result of
the application of the third sentence of
the definition of Principal Balance.
Class A-13 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-13 and Exhibit C hereto.
Class A-13 Certificateholder: The registered holder of a Class
A-13
Certificate.
Class A-14 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-14 and Exhibit C hereto.
Class A-14 Certificateholder: The registered holder of a Class
A-14
Certificate.
Class A-14 Loss Allocation Amount: With respect to any
Determination
Date after the applicable Subordination
Depletion Date the lesser of (a) the
Principal Balance of the Class A-14
Certificates with respect to such
Determination Date prior to any reduction
for the Class A-14 Loss Allocation
Amount and (b) the Class A-12 Loss
Amount.
Class A-15 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-15 and Exhibit C hereto.
Class A-15 Certificateholder: The registered holder of a Class
A-15
Certificate.
Class A-15 Loss Allocation Amount: With respect to any
Determination
Date after the applicable Subordination
Depletion Date the lesser of (a) the
Principal Balance of the Class A-15
Certificates with respect to such
Determination Date prior to any reduction
for the Class A-15 Loss Allocation
Amount and (b) the Class A-3 Loss
Amount.
Class A-PO 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-PO and Exhibit C hereto.
Class A-PO Certificateholder: The registered holder of a Class
A-PO
Certificate.
Class A-PO Deferred Amount: For any Distribution Date prior to
the
Subordination Depletion Date, the
difference between (A) the sum of (x) the
amount by which the sum of the Class A-PO
Optimal Principal Amounts for all
prior Distribution Dates exceeded the
amounts distributed on the Class A-PO
Certificates on such prior Distribution
Dates pursuant to Paragraph third clause
(2) of Section 4.01(a) and (y) the sum of
the product for each Discount Mortgage
Loan which became a Liquidated Loan at any
time on or prior to the last day of
the Applicable Unscheduled Principal
Receipt Period for Full Unscheduled
Principal Receipts for the current
Distribution Date of (a) the PO Fraction for
such Discount Mortgage Loan and (b) an
amount equal to the principal portion of
Realized Losses (other than Bankruptcy
Losses due to Debt Service Reductions)
incurred with respect to such Discount
Mortgage Loan and (B) the sum of (x) the
sum of the Class A-PO Recoveries for such
Distribution Date and prior
Distribution Dates and (y) amounts
distributed on the Class A-PO Certificates on
prior Distribution Dates pursuant to
Paragraph fourth of Section 4.01(a). On and
after the Subordination Depletion Date, the
Class A-PO Deferred Amount will be
zero. No interest will accrue on any Class
A-PO Deferred Amount.
Class A-PO Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Mortgage Loan that is an
Outstanding Mortgage Loan, of the product
of (x) the PO Fraction with respect to
such Mortgage Loan and (y) the sum of:
(i) 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) 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 Scheduled Principal Balance of each 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, 2.03 or 3.08; and
(iv) 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
occurs
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 Class A-PO Recovery for such Distribution Date.
Class A-PO Recovery: As to any Distribution Date prior to the
Subordination Depletion Date, the lesser of
(a) the Class A-PO Deferred Amount
for such Distribution Date (calculated
without regard to the Class A-PO Recovery
for such Distribution Date) and (b) an
amount equal to the sum as to each
Mortgage Loan as to which there has been a
Recovery during the Applicable
Unscheduled Principal Receipt Period, of
the product of (x) the PO Fraction with
respect to such Mortgage Loan and (y) the
amount of the Recovery with respect to
such Mortgage Loan. As to any Distribution
Date on or after the Subordination
Depletion Date, the amount determined in
accordance with clause (b) above.
Class 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-R and Exhibit C
hereto.
Class A-R Certificateholder: The registered holder of the Class
A-R
Certificate.
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, Class B-2,
Class
B-3, Class B-4, Class B-5 and Class B-6
Distribution Amounts.
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 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 B Certificates 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, Class
B-2,
Class B-3, Class B-4, Class B-5 or Class
B-6 Optimal Principal Amounts.
Class B Pass-Through Rate: As to any Distribution Date, a per
annum
rate equal to 5.500%.
Class B Percentage: Any one of the Class B-1 Percentage, Class
B-2
Percentage, Class B-3 Percentage, Class B-4
Percentage, Class B-5 Percentage or
Class B-6 Percentage.
Class B Prepayment Percentage: Any of the Class B-1 Prepayment
Percentage, Class B-2 Prepayment
Percentage, Class B-3 Prepayment Percentage,
Class B-4 Prepayment Percentage, Class B-5
Prepayment Percentage or Class B-6
Prepayment Percentage.
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 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 fifth, sixth and seventh of
Section 4.01(a).
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
fifth of Section 4.01(a).
Class B-1 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-1 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 Class B-1 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 Class B-1 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, 2.03 or 3.08;
and
(iv) the Class B-1 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 Class B-1 Prepayment Percentage of the Non-PO 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-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 Percentage: As to any Distribution Date, the
percentage
calculated by multiplying the Subordinated
Percentage by either (i) if any Class
B Certificates (other than the Class B-1
Certificates) are eligible to receive
principal distributions for such
Distribution Date in accordance with Section
4.01(d), 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 sum of the
Principal Balances of the Classes of
Class B Certificates eligible to receive
principal distributions for such
Distribution Date in accordance with the
provisions of Section 4.01(d) or (ii)
except as set forth in Section 4.01(d)(ii),
in the event that the Class B
Certificates (other than the Class B-1
Certificates) are not eligible to receive
distributions of principal in accordance
with Section 4.01(d)(i), one.
Class B-1 Prepayment Percentage: As to any Distribution Date,
the
percentage calculated by multiplying the
Subordinated Prepayment Percentage by
either (i) if any Class B Certificates
(other than the Class B-1 Certificates)
are eligible to receive principal
distributions for such Distribution Date in
accordance with Section 4.01(d), 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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive principal
distributions for such Distribution Date in
accordance with the provisions of
Section 4.01(d) or (ii) except as set forth
in Section 4.01(d)(ii), in the event
that the Class B Certificates (other than
the Class B-1 Certificates) are not
eligible to receive distributions of
principal in accordance with Section
4.01(d)(i), one.
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 seventh of
Section 4.01(a) 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
Adjusted Pool Amount as of the
preceding Distribution Date less the Class
A Principal Balance as of such
Determination Date.
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 sixth of Section 4.01(a).
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 eighth, ninth and tenth of
Section 4.01(a).
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
eighth of Section 4.01(a).
Class B-2 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-2 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 Class B-2 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 Class B-2 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, 2.03 or 3.08;
and
(iv) the Class B-2 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
Class B-2 Prepayment Percentage of the Non-PO 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-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 Percentage: As to any Distribution Date, except as
set
forth in the next sentence, the percentage
calculated by multiplying (i) the
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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive 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 distributions of
principal in accordance with Section
4.01(d)(i), the Class B-2 Percentage for
such Distribution Date will be zero.
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 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 the sum
of the Principal Balances of the Classes of
Class B Certificates eligible to
receive 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
distributions of principal in accordance
with Section 4.01(d)(i), the Class B-2
Prepayment Percentage for such Distribution
Date will be zero.
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 tenth of Section
4.01(a) 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
Adjusted Pool Amount as of the
preceding Distribution Date less the sum of
the Class A Principal Balance and
the Class B-1 Principal Balance as of such
Determination Date.
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 ninth of Section 4.01(a).
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 eleventh, twelfth and thirteenth
of Section 4.01(a).
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
eleventh of Section 4.01(a).
Class B-3 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-3 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 Class B-3 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 Class B-3 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, 2.03 or 3.08;
and
(iv) the Class B-3 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
Class B-3 Prepayment Percentage of the Non-PO 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-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 Percentage: As to any Distribution Date, except as
set
forth in the next sentence, the percentage
calculated by multiplying (i) the
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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive 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 distributions of
principal in accordance with Section
4.01(d)(i), the Class B-3 Percentage for
such Distribution Date will be zero.
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 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 the sum
of the Principal Balances of the Classes of
Class B Certificates eligible to
receive 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
distributions of principal in accordance
with Section 4.01(d)(i), the Class B-3
Prepayment Percentage for such Distribution
Date will be zero.
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 thirteenth of
Section 4.01(a) 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
Adjusted Pool Amount as of the
preceding Distribution Date less the sum of
the 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 twelfth of Section 4.01(a).
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 fourteenth, fifteenth and
sixteenth of Section 4.01(a).
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
fourteenth of Section 4.01(a).
Class B-4 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-4 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 Class B-4 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 Class B-4 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, 2.03 or 3.08;
and
(iv) the Class B-4 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
Class B-4 Prepayment Percentage of the Non-PO 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 Percentage: As to any Distribution Date, except as
set
forth in the next sentence, the percentage
calculated by multiplying (i) the
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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive 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 distributions of
principal in accordance with Section
4.01(d)(i), the Class B-4 Percentage for
such Distribution Date will be zero.
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 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 the sum
of the Principal Balances of the Classes of
Class B Certificates eligible to
receive 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
distributions of principal in accordance
with Section 4.01(d)(i), the Class B-4
Prepayment Percentage for such Distribution
Date will be zero.
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 sixteenth of
Section 4.01(a) 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
Adjusted Pool Amount as of the
preceding Distribution Date less the sum of
the 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 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 fifteenth of Section 4.01(a).
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 seventeenth, eighteenth and
nineteenth of Section 4.01(a).
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
seventeenth of Section 4.01(a).
Class B-5 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-5 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 Class B-5 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 Class B-5 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, 2.03 or 3.08;
and
(iv) the Class B-5 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
Class B-5 Prepayment Percentage of the Non-PO 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 Percentage: As to any Distribution Date, except as
set
forth in the next sentence, the percentage
calculated by multiplying (i) the
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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive 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 distributions of
principal in accordance with Section
4.01(d)(i), the Class B-5 Percentage for
such Distribution Date will be zero.
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 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 the sum
of the Principal Balances of the Classes of
Class B Certificates eligible to
receive 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
distributions of principal in accordance
with Section 4.01(d)(i), the Class B-5
Prepayment Percentage for such Distribution
Date will be zero.
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 nineteenth of
Section 4.01(a) 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
Adjusted Pool Amount as of the
preceding Distribution Date less the sum of
the 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 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 eighteenth of Section
4.01(a).
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 twentieth, twenty-first and
twenty-second of Section 4.01(a).
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
twentieth of Section 4.01(a).
Class B-6 Optimal Principal Amount: As to any Distribution Date,
an
amount equal to the sum of (I) the sum, as
to each Outstanding Mortgage Loan, of
the product of (x) the Non-PO Fraction with
respect to such Mortgage Loan and
(y) the sum of:
(i) the Class B-6 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 Class B-6 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 Class B-6 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, 2.03 or 3.08;
and
(iv) the Class B-6 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
Class B-6 Prepayment Percentage of the Non-PO 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 Percentage: As to any Distribution Date, except as
set
forth in the next sentence, the percentage
calculated by multiplying (i) the
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 sum of the Principal
Balances of the Classes of Class B
Certificates eligible to receive 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 distributions of
principal in accordance with Section
4.01(d)(i), the Class B-6 Percentage for
such Distribution Date will be zero.
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 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 the sum
of the Principal Balances of the Classes of
Class B Certificates eligible to
receive 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
distributions of principal in accordance
with Section 4.01(d)(i), the Class B-6
Prepayment Percentage for such Distribution
Date will be zero.
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 twenty-second of
Section 4.01(a); provided, however, if
the Class B-6 Certificates are outstanding,
the Class B-6 Principal Balance will
equal the difference, if any, between the
Adjusted Pool Amount as of the
preceding Distribution Date less the sum of
the 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 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 twenty-first of Section
4.01(a).
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 11.19.
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 Class A Interest Distribution Amount: As to any
Distribution
Date, the amount distributed in respect of
the Classes of Class A Certificates
pursuant to Paragraph first of Section
4.01(a) 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 fifth, eighth,
eleventh, fourteenth, seventeenth and
twentieth of Section 4.01(a) 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 Non-PO 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
Non-PO 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 Aggregate Non-PO
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 Non-PO 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 Non-PO
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 April
28,
2005, 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 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.
Discount Mortgage Loan: A Mortgage Loan with a Net Mortgage
Interest
Rate of less than 5.500%.
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 4.04(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 a REMIC or result in
the imposition of any federal tax on
the 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 Class A Certificates (other
than the Class A-8 Certificates) and
Class B Certificates is May 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. The Final Scheduled
Maturity Date for the Class A-8
Certificates is November 25, 2025.
Fitch: Fitch Ratings, or its successor in interest.
Fixed Retained Yield: The fixed percentage of interest on each
Mortgage Loan with a Mortgage Interest Rate
greater than the sum of (a) 5.500%,
(b) the applicable Servicing Fee Rate and
(c) the Master Servicing Fee Rate,
which will be determined on a loan by loan
basis and will equal the Mortgage
Interest Rate on each Mortgage Loan minus
the sum of the rates described in
clauses (a), (b) and (c), which is not
assigned to and not part of the Trust
Estate.
Fixed Retained Yield Rate: With respect to each Mortgage Loan, a
per
annum rate equal to the greater of (a) zero
and (b) the Mortgage Interest Rate
on such Mortgage Loan minus, the sum of (a)
5.500%, (b) the applicable Servicing
Fee Rate and (c) the Master Servicing Fee
Rate.
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.
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.
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 (other than the
Class A-PO 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 Class A Interest
Percentage of such Class of the interest
portion of any Realized Losses on the
Mortgage Loans 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. The Class A-PO
Certificates have no Interest Accrual
Amount.
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.
LIBOR: As to any Distribution Date, the arithmetic mean of the
London Interbank offered rate quotations
for one month U.S. dollar deposits, as
determined by the Trustee on the related
Rate Determination Date in accordance
with Section 4.07.
LIBOR Business Day: Any Business Day on which banks are open
for
dealing in foreign currency and exchange in
London, England, the City of New
York and Charlotte, North Carolina.
LIBOR Certificates: Any of the Class A-1, Class A-2, Class A-5
and
Class A-6 Certificates.
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-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.
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 11.24.
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 April 28, 2005
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 Exhibits F-1 and F-2, 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 a Subsidy Loan;
(xii) whether such
Mortgage Loan is covered by primary mortgage
insurance;
(xiii) the applicable
Servicing Fee Rate;
(xiv) the Master
Servicing Fee Rate;
(xv)
Fixed Retained Yield
Rate, if applicable; and
(xvi) 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 11.23
with respect to such Mortgage Loan, (b) the
Master Servicing Fee Rate, as set
forth in Section 11.24 with respect to such
Mortgage Loan and (c) the Fixed
Retained Yield Rate, if any, 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.
Non-permitted Foreign Holder: As defined in Section 5.02(d).
Non-PO Fraction: With respect to any Mortgage Loan, the lesser
of
(i) 1.00 and (ii) the quotient obtained by
dividing the Net Mortgage Interest
Rate for such Mortgage Loan by 5.500%.
Non-PO Recovery: As to any Distribution Date, the amount of all
Recoveries received during the Applicable
Unscheduled Principal Receipt Periods
for such Distribution Date less the Class
A-PO Recovery for such Distribution
Date.
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
(other that the Class A-PO
Certificates) according to the percentage
obtained by dividing the Class A
Non-PO Principal Balance by the Aggregate
Non-PO Principal Balance and (b) the
Class B Certificates according to the
percentage obtained by dividing the Class
B Principal Balance by the Aggregate Non-PO
Principal Balance.
Non-U.S. Person: As defined in Section 4.01(f).
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.
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 or seventh sentences 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 Non-PO Principal Balance: The Aggregate
Non-PO
Principal Balance as of the Cut-Off Date,
as set forth in Section 11.05.
Original Class A Percentage: The Class A Percentage as of the
Cut-Off Date as set forth in Section
11.03.
Original Class B Principal Balance: The sum of the Original
Class
B-1 Principal Balance, 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, as set forth in Section 11.06.
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 Original
Aggregate Non-PO Principal Balance.
The Original Class B-1 Fractional Interest
is specified in Section 11.08.
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
Original Aggregate Non-PO Principal
Balance. The Original Class B-2 Fractional
Interest is specified in Section 11.09.
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 Original
Aggregate Non-PO Principal Balance.
The Original Class B-3 Fractional Interest
is specified in Section 11.10.
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 Original
Aggregate Non-PO Principal Balance. The
Original Class B-4 Fractional Interest
is specified in Section 11.11.
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 Original Aggregate Non-PO
Principal Balance. The Original Class
B-5 Fractional Interest is specified in
Section 11.12.
Original Class B-1 Percentage: The Class B-1 Percentage as of
the
Cut-Off Date, as set forth in Section
11.13.
Original Class B-2 Percentage: The Class B-2 Percentage as of
the
Cut-Off Date, as set forth in Section
11.14.
Original Class B-3 Percentage: The Class B-3 Percentage as of
the
Cut-Off Date, as set forth in Section
11.15.
Original Class B-4 Percentage: The Class B-4 Percentage as of
the
Cut-Off Date, as set forth in Section
11.16.
Original Class B-5 Percentage: The Class B-5 Percentage as of
the
Cut-Off Date, as set forth in Section
11.17.
Original Class B-6 Percentage: The Class B-6 Percentage as of
the
Cut-Off Date, as set forth in Section
11.18.
Original Class B-1 Principal Balance: The Class B-1 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
Original Class B-2 Principal Balance: The Class B-2 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
Original Class B-3 Principal Balance: The Class B-3 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
Original Class B-4 Principal Balance: The Class B-4 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
Original Class B-5 Principal Balance: The Class B-5 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
Original Class B-6 Principal Balance: The Class B-6 Principal
Balance as of the Cut-Off Date, as set
forth in Section 11.07.
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 11.07.
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, 2.03 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, 2.03 or 3.08.
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.
PAC I Group: The Class A-10, Class A-11, Class A-12, Class A-13
and
Class A-14 Certificates.
PAC I Group Principal Amount: As defined in Section 4.01(b).
PAC II Group: The Class A-5, Class A-6 and Class A-7
Certificates.
PAC II Group Principal Amount: As defined in Section 4.01(b).
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(b).
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
applicable 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.
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
Q
for which Letters of Credit have been
issued.
PMI Advance: As defined in the related Servicing Agreement, if
applicable.
PO Fraction: With respect to any Discount Mortgage Loan, the
difference between 1.0 and the Non-PO
Fraction for such Mortgage Loan; with
respect to any other Mortgage Loan,
zero.
Pool Balance (Non-PO Portion): As of any Distribution Date, the
sum
of the amounts for each Mortgage Loan that
is an Outstanding Mortgage Loan of
the product of (i) the Non-PO Fraction for
such Mortgage Loan and (ii) the
Scheduled Principal Balance of such
Mortgage Loan.
Pool Balance (PO Portion): As of any Distribution Date, the sum
of
the amounts for each Mortgage Loan that is
an Outstanding Mortgage Loan of the
product of (i) the PO Fraction for such
Mortgage Loan and (ii) the Scheduled
Principal Balance of such Mortgage
Loan.
Pool Distribution Amount: As of any Distribution Date, the
funds
eligible for distribution to the Class 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 Mortgage Loans
(including, without limitation, the proceeds
of any repurchase of a 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 by a
Servicer pursuant to the related Servicing
Agreement or Periodic Advances 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) 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
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 by the Master Servicer or the
Trustee;
(c) that portion of each payment of interest on a particular
Mortgage
Loan which represents (i) the Fixed Retained Yield, if any,
(ii)
the
applicable Servicing Fee and (iii) the Master Servicing Fee;
(d) all amounts representing scheduled payments of principal
and
interest
due after the Due Date occurring in the month in which such
Distribution Date occurs;
(e) all Unscheduled Principal Receipts received by the
Servicers
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 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
Mortgage
Loan substituted for a 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
Mortgage
Loan;
(g) that portion of Liquidation Proceeds and REO Proceeds 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;
(j) Month End Interest;
(k) all amounts reimbursable to a Servicer for PMI Advances;
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.
Pool Scheduled Principal Balance: As to any Distribution Date,
the
aggregate Scheduled Principal Balance of
all Mortgage Loans that were
Outstanding Mortgage Loans on the Due Date
in the month preceding the month of
such Distribution Date.
Premium Mortgage Loan: A Mortgage Loan with a Net Mortgage
Interest
Rate equal to or greater than 5.500%.
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.
Prepayment Shift Percentage: As to any Distribution Date, the
percentage indicated below:
Prepayment
Shift
Distribution Date Occurring In
Percentage
------------------------------
----------
May 2005 through April
2010...................................
0%
May 2010 through April
2011...................................
30%
May 2011 through April
2012...................................
40%
May 2012 through April
2013...................................
60%
May 2013 through April
2014...................................
80%
May 2014 and
thereafter........................................ 100%
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) 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
(other than the Class A-PO
Certificates), the Original Principal
Balance of such Class (increased in the
case of a Class of Accrual Certificates by
the Accrual Distribution Amounts for
such Class with respect to prior
Distribution Dates) less the sum of all amounts
previously distributed in respect of such
Class on prior Distribution Dates (i)
pursuant to Paragraph third clause (1) of
Section 4.01(a), (ii) as a result of a
Principal Adjustment and (iii), if
applicable, from the Accrual Distribution
Amounts for such prior Distribution Dates.
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 Class A Loss Percentage
of such Class and the difference, if
any, between (i) the Class A Non-PO
Principal Balance as of such Determination
Date without regard to this sentence and
(ii) the difference between (A) the
Adjusted Pool Amount for the preceding
Distribution Date and (B) the Adjusted
Pool Amount (PO Portion) for the preceding
Distribution Date; provided, however,
that the amount of any such reduction for
the Class A-3 Certificates will be
decreased by the Class A-15 Loss Allocation
Amount and the amount of any such
reduction for the Class A-12 Certificates
will be decreased by the Class A-14
Loss Allocation Amount. After the
applicable Subordination Depletion Date, the
Principal Balance for the Class A-15
Certificates will additionally be reduced
by the Class A-15 Loss Allocation Amount
and the Principal Balance for the Class
A-14 Certificates will additionally be
reduced by the Class A-14 Loss Allocation
Amount. In addition, any increase allocated
to the Class A-3 Certificates
pursuant to the third sentence above will
instead increase the Principal Balance
of the Class A-15 Certificates and any
increase allocated to the Class A-12
Certificates pursuant to the third sentence
above will instead increase the
Principal Balance of the Class A-14
Certificates.
As of any subsequent Determination Date prior to the
Subordination
Depletion Date and as to the Class A-PO
Certificates, the Original Principal
Balance of such Class less the sum of (a)
all amounts previously distributed in
respect of the Class A-PO Certificates on
prior Distribution Dates pursuant to
Paragraphs third clause (2) and fourth of
Section 4.01(a) and (b) the Realized
Losses allocated through such Determination
Date to the Class A-PO Certificates
pursuant to Section 4.02(b). After the
Subordination Depletion Date, the
Adjusted Pool Amount (PO Portion) for the
preceding Distribution Date.
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 (plus any Accrual Distribution
Amounts previously added to the Principal
Balance of a Class of Accrual
Certificates) less all amounts previously
distributed in respect of such Class
on prior Distribution Dates pursuant to
Paragraph third clause (1) of Section
4.01(a), Paragraph third clause (2) of
Section 4.01(a), or Paragraphs seventh,
tenth, thirteenth, sixteenth, nineteenth or
twenty-second of Section 4.01(a).
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.
Priority Amount: For any Distribution Date, the lesser of (i)
the
sum of the Principal Balances of the Class
A-3 and Class A-15 Certificates and
(ii) the sum of (A) the product of (1) the
Priority Percentage, (2) the Shift
Percentage and (3) 50.1532358285% of the
Scheduled Principal Amount and (B) the
product of (1) the Priority Percentage, (2)
the Prepayment Shift Percentage and
(3) 50.1532358285% of the Unscheduled
Principal Amount.
Priority Percentage: The sum of the Principal Balances of the
Class
A-3 and Class A-15 Certificates divided by
the sum of the Principal Balances of
the Class A-1, Class A-2, Class A-3, Class
A-4 and Class A-15 Certificates.
Prohibited Transaction Tax: Any tax imposed under Section 860F
of
the Code.
Prospectus: The prospectus dated February 22, 2005 as
supplemented
by the prospectus supplement dated April
21, 2005, 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 Determination Date: As to any Distribution Date and any
Class
of LIBOR Certificates, the second LIBOR
Business Day preceding the 25th day of
the month preceding the month in which such
Distribution Date occurs.
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 Certificates (other than the
Class A-R Certificate) are Moody's and
Fitch. The Rating Agency for the Class
A-R Certificate is Fitch. The Rating Agency
for the Class B-1, Class B-2, Class
B-3, Class B-4 and Class B-5 Certificates
is Fitch. 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 F-1 in the case of
Fitch, 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
Fitch 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: For (i) the Class A-1, Class A-2, Class A-5 and
Class
A-6 Certificates, the Business Day
preceding the related Distribution Date and
(ii) all other Certificates, the last
Business Day of the month preceding the
month of the related Distribution Date.
Recovery: Any amount received on a Mortgage Loan subsequent to
such
Mortgage Loan being determined to be a
Liquidated Loan.
Reference Banks: Initially, the Reference Banks shall be
Deutsche
Bank International, Bank of America, N.A.,
Citibank, N.A., and The Fuji Bank,
Limited. If any of these banks are not
available, the Trustee shall select from
one of the following banks a substitute
Reference Bank: Credit Suisse First
Boston Corporation, Westdeutsche Landesbank
Girozentrale, The J.P. Morgan Chase
Bank or National Westminster Bank Plc. If
any of these banks are not available,
the Trustee shall in its discretion select
another Reference Bank.
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 (other than the
Class A-PO Certificates) according to the
percentage obtained by dividing the
Class A Non-PO Principal Balance by the
Aggregate Non-PO Principal Balance and
(b) the Class B Certificates according to
the percentage obtained by dividing
the Class B Principal Balance by the
Aggregate Non-PO Principal Balance.
REMIC: A "real estate mortgage investment conduit" as defined
in
Code Section 860D. "The REMIC" means the
REMIC constituted by the Trust Estate.
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.
Scheduled Principal Amount: The sum for each outstanding
Mortgage
Loan (including each defaulted Mortgage
Loan with respect to which the related
Mortgaged Property has been acquired by the
Trust Estate) of the product of (A)
the Non-PO Fraction for such Mortgage Loan
and (B) the sum of the amounts
described in clauses Iy(i) and Iy(iv) of
the definition of Class A Non-PO
Optimal Principal Amount.
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 11.23.
Servicing Officer: Any officer of a Servicer involved in, or
responsible for, the administration and
servicing of the Mortgage Loans.
Shift Percentage: As to any Distribution Date, the percentage
indicated below:
Shift
Distribution Date Occurring In
Percentage
------------------------------
----------
May 2005 through April
2010...................................
0%
May 2010 and
thereafter........................................ 100%
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 11.22.
Startup Day: As defined in Section 2.05.
Subordinated Percentage: As to any Distribution Date, the
percentage
which is the difference between 100% and
the Class A Percentage for such date.
Subordinated Prepayment Percentage: As to any Distribution Date,
the
percentage which is the difference between
100% and the Class A Prepayment
Percentage for such date.
Subordination Depletion Date: The Distribution Date preceding
the
first Distribution Date on which each of
the Class A Percentage (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 corpus of the trust created by this Agreement.
Trust Estate: The corpus of the Trust, consisting of the
Mortgage
Loans (other than any Fixed Retained
Yield), such amounts as may be held from
time to time in the Certificate Account
(other than any Fixed Retained Yield),
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-1 hereto as such Exhibit may be
amended from time to time in
connection with a substitution pursuant to
Section 2.02, 2.03 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.
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 Amount: The sum for each outstanding
Mortgage
Loan (including each defaulted Mortgage
Loan with respect to which the related
Mortgaged Property has been acquired by the
Trust Estate) of the product of (A)
the Non-PO Fraction for such Mortgage Loan
and (B) the sum of the amounts
described in clauses Iy(ii) and Iy(iii) of
the definition of Class A Non-PO
Optimal Principal Amount.
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.
U.S. Person: As defined in Section 4.01(f).
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, each Class of Certificates will
be entitled to a pro rata portion of the
Voting Interest equal to the ratio
obtained by dividing the Principal Balance
of such Class by the Class 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.
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
(other than the portion, if any,
representing the Fixed Retained Yield) 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 any of (i) the New Jersey
Home Ownership Act effective November 27,
2003, (ii) the New Mexico Home Loan
Protection Act effective January 1, 2004,
(iii) the Massachusetts Predatory Home
Loan Practices Act effective November 7,
2004 or (iv) the Indiana Home Loan
Practices Act, effective January 1,
2005.
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; and
(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(a) 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 less any Fixed Retained Yield, 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 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.
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 the
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 were
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; and
(xxviii) No Mortgage Loan is serviced by the Trustee or an
affiliate of
the Trustee.
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 any of 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) 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 the assignment to it of the Mortgage
Loans
and 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, together with all other assets
included in the definition of "Trust
Estate," receipt of which is hereby
acknowledged, Certificates in authorized
denominations which 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 A-R Certificate) and
the Classes of Class B Certificates
as classes of "regular interests" and the
Class A-R Certificate as the single
class of "residual interest" in the 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 the REMIC within
the meaning of Code Section 860G(a)(9).
The "latest possible maturity date" of the
regular interests in the REMIC is May
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 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.
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
the Trust Estate 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; provided, however, that any
portion of Nonrecoverable Advances representing Fixed Retained
Yield shall be reimbursable only from amounts constituting
Fixed Retained Yield and not from assets of the Trust Estate;
(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) 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;
(xii) to
clear and terminate the Certificate Account pursuant to
Section 9.01; and
(xiii) to pay to
Wells Fargo Bank from any Mortgagor payment on
account of interest or other recovery (including Net REO
Proceeds) with respect to a particular Mortgage Loan, the
Fixed Retained Yield, if any, with respect to such Mortgage
Loan; provided, however, that with respect to any payment of
interest received by the Master Servicer in respect of a
Mortgage Loan (whether paid by the Mortgagor or received as
Liquidation Proceeds, Insurance Proceeds or otherwise) which
is less than the full amount of interest then due with respect
to such Mortgage Loan, only that portion of such payment of
interest that bears the same relationship to the total amount
of such payment of interest as the Fixed Retained Yield Rate,
if any, in respect of such Mortgage Loan bears to the Mortgage
Interest Rate shall be allocated to the Fixed Retained Yield
with respect thereto.
(b) 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.
(a) 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.
(b) 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.
(c) 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) and (a)(ii).
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
restoration of such amount to the
Certificate Account from the related
Servicer. The Master Servicer shall, to the
extent it has not already done so, upon the
request of the Trustee, withdraw
from the Certificate Account and remit to
the Trustee any amounts to which the
Trustee is entitled as reimbursement
pursuant to Section 3.02 (a)(i), (ii) and
(v).
(d) Except as provided in Section 3.03(a) and (b), neither the
Master Servicer nor the Trustee shall be
required to pay or advance any amount
which any Servicer was required, but
failed, to deposit in the Certificate
Account.
Section 3.04 Custodian to Cooperate; Release of Owner Mortgage
Loan
Files and Retained Mortgage Loan Files.
In connection with the deposit by a Servicer into the
Certificate
Account of the proceeds from a Liquidated
Loan or of a Prepayment in Full, the
Master Servicer or applicable Servicer
shall confirm to the Trustee that all
amounts required to be remitted to the
Certificate Account in connection with
such Mortgage Loan have been so deposited,
and the Master Servicer or applicable
Servicer shall deliver two copies of such
Request for Release to the Custodian.
The Custodian shall, within five Business
Days of its receipt of such a Request
for Release, release the related Owner
Mortgage Loan File (and Retained Mortgage
Loan File, if applicable) to the Master
Servicer or such Servicer, as requested
by the Master Servicer or such Servicer. No
expenses incurred in connection with
any instrument of satisfaction or deed of
reconveyance shall be chargeable to
the Certificate Account.
From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including
but not limited to, collection under
any insurance policies, or to effect a
partial release of any Mortgaged Property
from the lien of the Mortgage, the Servicer
of such Mortgage Loan shall deliver
to the Master Servicer or Custodian two
copies of a Request for Release. Upon
the Master Servicer's receipt of any such
Request for Release, the Master
Servicer shall promptly forward such
request in hard copy or in electronic
format acceptable to the Custodian. The
Custodian shall, within five Business
Days, release the related Owner Mortgage
Loan File (and Retained Mortgage Loan
File, if applicable) to the Master Servicer
or such Servicer. Any such Request
for Release shall obligate the Master
Servicer or such Servicer, as the case may
be, to return the Owner Mortgage Loan File
(and Retained Mortgage Loan File, if
applicable) to the Custodian by the
twenty-first day following the release
thereof, unless (i) the Mortgage Loan has
been liquidated and the Liquidation
Proceeds relating to the Mortgage Loan have
been deposited in the Certificate
Account or (ii) the Owner Mortgage Loan
File, Retained Mortgage Loan File, if
applicable, or such document has been
delivered to an attorney, or to a public
trustee or other public official as
required by law, for purposes of initiating
or pursuing legal action or other
proceedings for the foreclosure of the
Mortgaged Property either judicially or
non-judicially. Upon receipt of two
copies of a Request for Release stating
that such Mortgage Loan was liquidated
and that all amounts received or to be
received in connection with such
liquidation which are required to be
deposited into the Certificate Account have
been so deposited, or that such Mortgage
Loan has become an REO Mortgage Loan,
the Custodian shall amend its records.
Upon written certification of the Master Servicer or the
Servicer
pursuant to clause (ii) of the preceding
paragraph, the Trustee shall execute
and deliver to the Master Servicer or such
Servicer, as directed by the Master
Servicer, court pleadings, requests for
trustee's sale or other documents
necessary to the foreclosure or trustee's
sale in respect of a Mortgaged
Property or to any legal action brought to
obtain judgment against any Mortgagor
on the Mortgage Note or Mortgage or to
obtain a deficiency judgment, or to
enforce any other remedies or rights
provided by the Mortgage Note or Mortgage
or otherwise available at law or in equity.
Each such certification shall
include a request that such pleadings or
documents be executed by the Trustee
and a statement as to the reason such
documents or pleadings are required and
that the execution and delivery thereof by
the Trustee will not invalidate or
otherwise affect the lien of the Mortgage,
except for the termination of such a
lien upon completion of the foreclosure
proceeding or trustee's sale.
Section 3.05 Reports to the Trustee; Annual Compliance
Statements.
(a) Not later than 15 days after each Distribution Date, the
Master
Servicer shall deliver to the Trustee a
statement setting forth the status of
the Certificate Account as of the close of
business on such Distribution Date
stating that all distributions required to
be made by the Master Servicer under
this Agreement have been made (or, if any
required distribution has not been
made by the Master Servicer, specifying the
nature and status thereof) and
showing, for the period covered by such
statement, the aggregate amount of
deposits into and withdrawals from such
account for each category of deposit and
withdrawal specified in Sections 3.01 and
3.02. Such statement may be in the
form of the then current Fannie Mae monthly
accounting report for its Guaranteed
Mortgage Pass-Through Program with
appropriate additions and changes, and shall
also include information as to the
aggregate unpaid principal balance of all of
the Mortgage Loans as of the close of
business as of the last day of the
calendar month immediately preceding such
Distribution Date. Copies of such
statement shall be provided by the Trustee
to any Certificateholder upon written
request, provided such statement is
delivered, or caused to be delivered, by the
Master Servicer to the Trustee.
(b) The Master Servicer shall deliver to the Trustee on or
before
March 30 of each year, a certificate signed
by an officer of the Master
Servicer, certifying that (i) such officer
has reviewed the activities of the
Master Servicer during the preceding
calendar year or portion thereof and its
performance under this agreement, (ii) to
the best of such officer's knowledge,
based on such review, the Master Servicer
has performed and fulfilled its
duties, responsibilities and obligations
under this agreement in all material
respects throughout such year, or, if there
has been a default in the
fulfillment of any such duties,
responsibilities or obligations, specifying each
such default known to such officer and the
nature and status thereof, and, (iii)
(A) the Master Servicer has received from
each Servicer any financial
statements, officer's certificates,
accountant's statements or other information
required to be provided to the Master
Servicer pursuant to the related Servicing
Agreement and (B) to the best of such
officer's knowledge, based on a review of
the information provided to the Master
Servicer by each Servicer as described in
(iii)(A) above, each Servicer has performed
and fulfilled its duties,
responsibilities and obligations under the
related Servicing Agreement in all
material respects throughout such year, or,
if there has been a default in the
fulfillment of any such duties,
responsibilities or obligations, specifying each
such default known to such officer and the
nature and status thereof. Copies of
such officers' certificate shall be
provided by the Trustee to any
Certificateholder upon written request
provided such certificate is delivered,
or caused to be delivered, by the Master
Servicer to the Trustee.
Section 3.06 Title, Management and Disposition of Any REO
Mortgage
Loan.
