EXECUTION COPY
ASSET BACKED SECURITIES
CORPORATION
Depositor
DLJ MORTGAGE CAPITAL, INC.
Seller
COUNTRYWIDE HOME LOANS SERVICING
LP
Servicer
MORTGAGERAMP INC.,
Loan Performance Advisor
and
WELLS FARGO BANK, N.A.
Trustee
_________________________________________
POOLING AND SERVICING
AGREEMENT
Dated as of June 1, 2005
_________________________________________
Asset Backed Securities Corporation Home
Equity Loan Trust, Series WMC 2005-HE5
Asset Backed Pass-Through Certificates,
Series WMC 2005-HE5
Table of Contents
Page
ARTICLE I
DEFINITIONS
SECTION 1.01.
Defined Terms.
3
SECTION 1.02.
Allocation of Certain Interest
Shortfalls.
50
SECTION 1.03.
Designation of Interests in
REMIC
50
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF
CERTIFICATES
SECTION 2.01.
Conveyance of Mortgage Loans.
60
SECTION 2.02.
Acceptance of REMIC I by the
Trustee.
63
SECTION 2.03.
Repurchase or Substitution of Mortgage
Loans by the Originator, the
Seller or the Depositor; Payment of
Prepayment Premiums in the
Event of Breach.
64
SECTION 2.04.
Representations and Warranties of the
Depositor.
68
SECTION 2.05.
Representations, Warranties and Covenants
of the Servicer and the
Seller.
70
SECTION 2.06.
Issuance of the R-I Residual
Interest.
74
SECTION 2.07.
Conveyance of REMIC I Regular Interests;
Acceptance of REMIC II
by the Trustee.
74
SECTION 2.08.
Conveyance of REMIC II Regular Interests;
Acceptance of REMIC III
by the Trustee.
74
SECTION 2.09.
Conveyance of REMIC III Regular
Interests; Acceptance of REMIC IV
by the Trustee.
74
SECTION 2.10.
Conveyance of REMIC IV Regular
Interests; Acceptance of REMIC V
by the Trustee.
75
ARTICLE III
ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS
SECTION 3.01.
Servicer to Act as Servicer.
75
SECTION 3.02.
Sub-Servicing Agreements Between the
Servicer and Sub-Servicers.
77
SECTION 3.03.
Successor Sub-Servicers.
79
SECTION 3.04.
Liability of the Servicer.
79
SECTION 3.05.
No Contractual Relationship Between
Sub-Servicers and Trustee or
Certificateholders.
79
SECTION 3.06.
Assumption or Termination of
Sub-Servicing Agreements by Trustee.
80
SECTION 3.07.
Collection of Certain Mortgage Loan
Payments.
80
SECTION 3.08.
Sub-Servicing Accounts.
81
SECTION 3.09.
Collection of Taxes, Assessments and
Similar Items; Servicing
Accounts.
82
SECTION 3.10.
Collection Account and Distribution
Account.
82
SECTION 3.11.
Withdrawals from the Collection Account
and Distribution Account.
85
SECTION 3.12.
Investment of Funds in the Collection
Account, the REO Account and
the Distribution Account.
87
SECTION 3.13.
[Reserved].
88
SECTION 3.14.
Maintenance of Hazard Insurance and
Errors and Omissions and Fidelity
Coverage.
88
SECTION 3.15.
Enforcement of Due-On-Sale Clauses;
Assumption Agreements.
89
SECTION 3.16.
Realization Upon Defaulted Mortgage
Loans.
90
SECTION 3.17.
Trustee to Cooperate; Release of Mortgage
Files.
93
SECTION 3.18.
Servicing Compensation.
94
SECTION 3.19.
Reports to the Trustee; Collection
Account Statements and Other
Reporting Obligations.
95
SECTION 3.20.
Statement as to Compliance.
96
SECTION 3.21.
Independent Public Accountants’
Servicing Report.
96
SECTION 3.22.
Access to Certain
Documentation.
97
SECTION 3.23.
Title, Management and Disposition of REO
Property.
97
SECTION 3.24.
Obligations of the Servicer in Respect of
Prepayment Interest
Shortfalls.
100
SECTION 3.25.
Obligations of the Servicer in Respect of
Mortgage Rates and Monthly
Payments.
101
SECTION 3.26.
Net WAC Reserve Fund; Yield Maintenance
Agreements.
101
SECTION 3.27.
Swap Agreement.
103
SECTION 3.28.
Advance Facility.
104
ARTICLE IV
PAYMENTS TO CERTIFICATEHOLDERS
SECTION 4.01.
Distributions.
106
SECTION 4.02.
Statements to
Certificateholders.
118
SECTION 4.03.
Remittance Reports; P&I
Advances.
122
SECTION 4.04.
Allocation of Realized Losses.
124
SECTION 4.05.
Compliance with Withholding
Requirements.
125
SECTION 4.06.
Commission Reporting.
125
SECTION 4.07.
Early Termination Fund.
128
SECTION 4.08.
Supplemental Interest Account.
128
ARTICLE V
THE CERTIFICATES
SECTION 5.01.
The Certificates.
129
SECTION 5.02.
Registration of Transfer and Exchange of
Certificates.
131
SECTION 5.03.
Mutilated, Destroyed, Lost or Stolen
Certificates.
136
SECTION 5.04.
Persons Deemed Owners.
136
SECTION 5.05.
Certain Available Information.
137
ARTICLE VI
THE DEPOSITOR AND THE SERVICER, AND THE LOAN PERFORMANCE
ADVISOR
SECTION 6.01.
Liability of the Depositor, the Seller
and the Servicer.
137
SECTION 6.02.
Merger or Consolidation of the Depositor,
the Seller or the Servicer.
137
SECTION 6.03.
Limitation on Liability of the Depositor,
the Seller, the Servicer and
Others.
138
SECTION 6.04.
Limitation on Resignation of the
Servicer.
139
SECTION 6.05.
Rights of the Depositor, the Seller and
the Trustee in Respect of the
Servicer.
140
SECTION 6.06.
Duties of the Loan Performance
Advisor.
140
ARTICLE VII
DEFAULT
SECTION 7.01.
Servicer Events of Default.
141
SECTION 7.02.
Trustee to Act; Appointment of
Successor.
143
SECTION 7.03.
Notification to
Certificateholders.
144
SECTION 7.04.
Waiver of Servicer Events of
Default.
145
ARTICLE VIII
CONCERNING THE TRUSTEE
SECTION 8.01.
Duties of Trustee.
145
SECTION 8.02.
Certain Matters Affecting the
Trustee.
146
SECTION 8.03.
Trustee Not Liable for Certificates or
Mortgage Loans.
147
SECTION 8.04.
Trustee May Own Certificates.
148
SECTION 8.05.
Fees and Expenses of the
Trustee.
148
SECTION 8.06.
Eligibility Requirements for
Trustee.
149
SECTION 8.07.
Resignation and Removal of the
Trustee.
149
SECTION 8.08.
Successor Trustee.
150
SECTION 8.09.
Merger or Consolidation of
Trustee.
151
SECTION 8.10.
Appointment of Co-Trustee or Separate
Trustee.
151
SECTION 8.11.
Appointment of Custodians.
152
SECTION 8.12.
Appointment of Office or
Agency.
152
SECTION 8.13.
Representations and Warranties of the
Trustee.
152
SECTION 8.14.
Yield Maintenance Agreement.
153
ARTICLE IX
TERMINATION
SECTION 9.01.
Termination Upon Repurchase or
Liquidation of All Mortgage Loans.
153
SECTION 9.02.
Additional Termination
Requirements.
155
ARTICLE X
REMIC PROVISIONS
SECTION 10.01.
REMIC Administration.
156
SECTION 10.02.
Prohibited Transactions and
Activities.
160
SECTION 10.03.
Servicer and Trustee
Indemnification.
160
ARTICLE XI
MISCELLANEOUS PROVISIONS
SECTION 11.01.
Amendment.
160
SECTION 11.02.
Recordation of Agreement;
Counterparts.
162
SECTION 11.03.
Limitation on Rights of
Certificateholders.
163
SECTION 11.04.
Governing Law.
163
SECTION 11.05.
Notices.
163
SECTION 11.06.
Severability of Provisions.
164
SECTION 11.07.
Notice to Rating Agencies the Swap
Counterparty, and the Cap
Counterparty.
164
SECTION 11.08.
Article and Section
References.
165
SECTION 11.09.
Third Party Rights.
165
SECTION 11.10.
Grant of Security Interest.
166
SECTION 11.11.
Protection of Assets.
166
SECTION 11.12.
Non-Solicitation.
167
Exhibits
Exhibit A-1
Form of Class A
Certificate
Exhibit A-2
Form of Mezzanine Certificate
Exhibit A-3
[Reserved]
Exhibit A-4
[Reserved]
Exhibit A-5
Form of Class X
Certificate
Exhibit A-6
Form of Class P
Certificate
Exhibit A-7
[Reserved]
Exhibit A-8
[Reserved]
Exhibit A-9
[Reserved]
Exhibit A-10
Form of Class R Certificate
Exhibit B
[Reserved]
Exhibit C-1
Form of Trust Receipt and Initial
Certification
Exhibit C-2
Form of Trustee Receipt and Final
Certification
Exhibit D
Form of Mortgage Loan Purchase
Agreement
Exhibit E-1
Form of Request for Release
Exhibit E-2
[Reserved]
Exhibit F-1
Forms of Transferor/Transferee
Representation Letter
Exhibit F-2
Form of Transfer Affidavit and
Agreement
Exhibit G
Form of ERISA Certification
Exhibit H
Form of Depositor
Certification
Exhibit I
[Reserved]
Exhibit J
Form of Servicer Certification
Exhibit K
[Reserved]
Exhibit L
Form of Independent Accountants’
Report
Exhibit M-1
Form of Delinquency Report
Exhibit M-2
Form of Realized Loss Report
Exhibit N
Form of Power of Attorney for Irish Stock
Exchange Listing
Schedules
Schedule 1
Mortgage Loan Schedule
Schedule 2
Prepayment Premium Schedule
This Pooling and Servicing Agreement is
dated and effective as of June 1, 2005, among ASSET BACKED
SECURITIES CORPORATION, as Depositor, DLJ MORTGAGE CAPITAL, INC.,
as Seller, COUNTRYWIDE HOME LOANS SERVICING LP, as Servicer,
MORTGAGE RAMP INC., as Loan Performance Advisor, and WELLS FARGO
BANK, N.A., as Trustee.
PRELIMINARY STATEMENT:
The Depositor intends to sell
pass-through certificates (collectively, the
“Certificates”), to be issued hereunder in multiple
classes, which in the aggregate will evidence the entire beneficial
ownership interest in multiple REMICs (as defined herein) created
hereunder. The Trust Fund will consist of a segregated pool
of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement.
As of the Cut-off Date, the Mortgage
Loans had an aggregate Stated Principal Balance equal to
$1,077,666,719.
Set forth below are designations of
Classes of Certificates to the categories used herein.
|
Book-Entry Certificates
|
All Classes of Certificates other than the Physical
Certificates.
|
|
Class A Certificates
|
Class A1, Class A1A, Class A2 and Class A2A Certificates
|
|
Class P Certificates
|
Class P Certificates.
|
|
ERISA-Restricted Certificates
|
Non-Offered Certificates and any Certificates that do not satisfy
the applicable ratings requirement under the Underwriter’s
Exemption.
|
|
LIBOR Certificates
|
Class A and Mezzanine Certificates.
|
|
Mezzanine Certificates
|
Class M1, Class M2, Class M3, Class M4, Class M5, Class M6, Class
M7, Class M8, Class M9, Class M10, Class M11 and Class M12
Certificates.
|
|
Non-Offered Certificates
|
Class M11, Class M12, Class X, Class P and Residual
Certificates.
|
|
Offered Certificates
|
Class A and Offered Subordinate Certificates.
|
|
Offered Subordinate Certificates
|
Mezzanine Certificates (other than the Class M11 and Class M12
Certificates).
|
|
Physical Certificates
|
Class X, Class P and Residual Certificates.
|
|
Regular Certificates
|
All Classes of Certificates other than the Residual
Certificates.
|
|
Residual Certificates
|
Class R Certificates.
|
|
Senior Certificates
|
Class A Certificates.
|
|
Subordinate Certificates
|
Mezzanine Certificates, Class X Certificates and Residual
Certificates.
|
In consideration of the mutual agreements
herein contained, the Depositor, the Seller, the Servicer, the Loan
Performance Advisor and the Trustee agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01.
Defined Terms.
Whenever used in this Agreement,
including, without limitation, in the Preliminary Statement hereto,
the following words and phrases, unless the context otherwise
requires, shall have the meanings specified in this
Article.
“1933 Act”: As defined in
Section 5.02(b) herein.
“Accepted Servicing
Practices”: With respect to any Mortgage Loan, those mortgage
servicing practices of prudent mortgage lending institutions which
service mortgage loans of the same type as such Mortgage Loan in
the jurisdiction where the related Mortgaged Property is
located.
“Additional Termination
Event”: As defined in the Swap Agreement.
“Adjustable Rate Mortgage
Loan”: Each of the Mortgage Loans identified in the Mortgage
Loan Schedule as having a Mortgage Rate that is subject to
adjustment.
“Adjustable-Rate PPC”: 100%
Adjustable-Rate PPC means a CPR of 4.00% per annum of the then
unpaid principal balance of the Adjustable Rate Mortgage Loans in
the first month of the life of such Mortgage Loans and an
additional approximately 2.1818% (precisely 24%/11 expressed as a
percentage) per annum in each month thereafter until the 12th
month, remaining at 28% per annum in each month thereafter until
the 24th month, then beginning in the 25th month, remaining at 55%
per annum in each month thereafter until the 28th month and in each
month thereafter during the life of such Mortgage Loans, a CPR of
35% per annum.
“Adjustment Date”: With
respect to each Adjustable Rate Mortgage Loan, the day of the month
on which the Mortgage Rate of such Mortgage Loan changes pursuant
to the related Mortgage Note. The first Adjustment Date
following the Cut-off Date as to each Adjustable Rate Mortgage Loan
is set forth in the Mortgage Loan Schedule.
“Advance Facility”: As
defined in Section 3.28(a) herein.
“Advance Facility Notice”: As
defined in Section 3.28(b) herein.
“Advance Facility Trustee”:
As defined in Section 3.28(b) herein.
“Advance Reimbursement
Amounts”: As defined in Section 3.28(a) herein.
“Advancing Person”: As
defined in Section 3.28(a) herein.
“Affiliate”: With respect to
any specified Person, any other Person controlling or controlled by
or under common control with such specified Person. For the
purposes of this definition, “control” when used with
respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or
otherwise, and the terms “controlling” and
“controlled” have meanings correlative to the
foregoing.
“Aggregate Principal
Balance”: As of any date of determination will be equal to
the aggregate Stated Principal Balance of the Mortgage Loans and
any REO Properties owned by the Trust.
“Aggregate Strip Amount”:
With respect to any Distribution Date, the sum of the
Subgroup 2 Strip Amount and the Subordinate Strip Amount for
such Distribution Date.
“Agreement”: This Pooling and
Servicing Agreement and all amendments hereof and supplements
hereto.
“Allocated Realized Loss
Amount”: With respect to any Distribution Date and any Class
of Mezzanine Certificates or the Class A1A Certificates or Class
A2A Certificates, as applicable, the amount by which (A) any
Realized Losses allocated to any such Class of Certificates on any
Distribution Date pursuant to Section 4.04 exceeds the sum of (B)
(i) any additions to the Certificate Principal Balance pursuant to
Section 4.04(d) on such Distribution Date or any previous
Distribution Date and (ii) the aggregate of the amounts paid
in respect of reimbursement of Allocated Realized Loss Amounts
pursuant to Section 4.01(a)(3) on previous Distribution
Dates.
“Applicable Regulations”: As
to any Mortgage Loan, all federal, state and local laws, statutes,
rules and regulations applicable thereto.
“Assignment”: An assignment
of Mortgage, notice of transfer or equivalent instrument, in
recordable form (excepting therefrom, if applicable, the mortgage
recordation information which has not been required pursuant to
Section 2.01 hereof or returned by the applicable recorder’s
office and/or the assignee’s name), which is sufficient under
the laws of the jurisdiction wherein the related Mortgaged Property
is located to reflect of record the sale of the Mortgage, which
assignment, notice of transfer or equivalent instrument may be in
the form of one or more blanket assignments covering Mortgages
secured by Mortgaged Properties located in the same county, if
permitted by law.
“Assignment and Assumption
Agreement”: That certain assignment and assumption agreement
dated as of the Cut-off Date, by and between the Seller, as
assignor and the Depositor, as assignee, relating to the Mortgage
Loans.
“Available Distribution
Amount”: With respect to any Distribution Date, an amount
equal to (1) the sum of (a) the aggregate of the amounts on deposit
in the Collection Account and Distribution Account as of the close
of business on the related Determination Date, (b) the aggregate of
any amounts received in respect of an REO Property withdrawn from
any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the amount
deposited in the Distribution Account by the Servicer in respect of
Compensating Interest for such Distribution Date pursuant to
Section 3.24 and (d) the aggregate of any P&I Advances made by
the Servicer for such Distribution Date pursuant to Section 4.03
reduced (to not less than zero) by (2) the portion of the amount
described in clause (1)(a) above that represents (i) Monthly
Payments on the Mortgage Loans received from a Mortgagor on or
prior to the Determination Date but due during any Due Period
subsequent to the related Due Period, (ii) Principal Prepayments on
the Mortgage Loans received after the related Prepayment Period
(together with any interest payments received with such Principal
Prepayments to the extent they represent the payment of interest
accrued on the Mortgage Loans during a period subsequent to the
related Prepayment Period), interest payments with Principal
Prepayments received on or prior to the Closing Date representing
interest accruals for periods prior to the Closing Date and
interest payments with Principal Prepayments in full received
during the first day through the fifteenth day of a calendar month
in a Prepayment Period representing interest accruals for the
portion of the Prepayment Period from such first day to such
fifteenth day, (iii) Liquidation Proceeds, Insurance Proceeds and
proceeds from repurchases of and substitutions for Mortgage Loans,
if any, received in respect of such Mortgage Loans after the
calendar month preceding the month of such Distribution Date, (iv)
amounts reimbursable or payable to the Depositor, the Originator,
the Servicer, the Loan Performance Advisor, the Trustee or any
Sub-Servicer pursuant to Section 3.11 or Section 3.12 or otherwise
payable in respect of Extraordinary Trust Fund Expenses, (v)
amounts deposited in the Collection Account or the Distribution
Account in error, and (vi) the amount of any Prepayment Premiums
collected by the Servicer in connection with the voluntary
Principal Prepayment in full of any of the Mortgage Loans or the
Servicer Prepayment Premium Payment Amount.
“Bankruptcy Code”: The
Bankruptcy Reform Act of 1978 (Title 11 of the United States Code),
as amended.
“Bankruptcy Loss”: With
respect to any Mortgage Loan, a Realized Loss resulting from a
Deficient Valuation (i.e. “principal cramdown”) or Debt
Service Reduction (i.e., “interest
cramdown”).
“Basic Principal Distribution
Amount”: With respect to any Distribution Date the amounts in
clauses (b)(i) - (iv) of the definition of Principal Distribution
Amount.
“Book-Entry Certificate”: As
specified in the Preliminary Statement.
“Book-Entry Custodian”: The
custodian appointed pursuant to Section 5.01 herein.
“Business Day”: Any day other
than a Saturday, a Sunday or a day on which banking or savings and
loan institutions in the State of California, the State of New
York, the State of Delaware, the State of Minnesota, the State of
Maryland, the State of Texas or the cities in which the Corporate
Trust Office of the Trustee is located, are authorized or obligated
by law or executive order to be closed.
“Calculation Period”: As such
term is defined in the Swap Agreement.
“Cap Counterparty”: Credit
Suisse First Boston International, or any successor in interest
thereto under the Yield Maintenance Agreements.
“Cap Counterparty Rating Agency
Downgrade”: As defined in Section 3.26(d) herein.
“Carryover Termination
Payment”: For any Distribution Date, the portion of any
Termination Payment payable by the Trust to the Cap Counterparty
previously due on a prior Distribution Date that remains unpaid on
such Distribution Date plus interest thereon at the Default Rate
for the period from the date such Termination Payment was due but
unpaid to but excluding the date such amount has been paid (such
interest to be compounded daily).
“Certificate”: Any one of the
certificates issued under this Agreement in substantially the forms
attached hereto as Exhibit A-1, Exhibit A-2, Exhibit A-5, Exhibit
A-6 and Exhibit A-10.
“Certificate Factor”: With
respect to any Class of LIBOR Certificates as of any Distribution
Date, a fraction, expressed as a decimal carried to six places, the
numerator of which is the aggregate Certificate Principal Balance
of such Class of Certificates on such Distribution Date (after
giving effect to any distributions of principal and allocations of
Realized Losses in reduction of the Certificate Principal Balance
of such Class of Certificates to be made on such Distribution
Date), and the denominator of which is the Original Certificate
Principal Balance of such Class of Certificates as of the Closing
Date.
“Certificate Margin”: As to
any Class of LIBOR Certificates, the respective amount set forth
below:
|
|
Certificate
Margin
|
|
Class
|
(1)
|
(2)
|
|
A1
|
0.160%
|
0.320%
|
|
A1A
|
0.270%
|
0.540%
|
|
A2
|
0.250%
|
0.500%
|
|
A2A
|
0.270%
|
0.540%
|
|
M1
|
0.430%
|
0.645%
|
|
M2
|
0.440%
|
0.660%
|
|
M3
|
0.480%
|
0.720%
|
|
M4
|
0.600%
|
0.900%
|
|
M5
|
0.650%
|
0.975%
|
|
M6
|
0.700%
|
1.050%
|
|
M7
|
1.150%
|
1.725%
|
|
M8
|
1.300%
|
1.950%
|
|
M9
|
1.700%
|
2.550%
|
|
M10
|
2.500%
|
3.750%
|
|
M11
|
3.000%
|
4.500%
|
|
M12
|
3.000%
|
4.500%
|
|
|
|
|
(1)
To and including the Optional Termination
Date.
(2)
After the Optional Termination
Date.
“Certificate Owner”: With
respect to a Book-Entry Certificate, the Person who is the
beneficial owner of such Certificate as reflected on the books of
the Depository or on the books of a Depository Participant or on
the books of an indirect participating brokerage firm for which a
Depository Participant acts as agent.
“Certificate Principal
Balance”: With respect to any Class of Certificates, other
than the Class R and Class X Certificates, as of any Distribution
Date, the Original Certificate Principal Balance thereof reduced by
the sum of (a) all amounts actually distributed in respect of
principal of such Class and (b) with respect to the Mezzanine
Certificates, Class A1A Certificates and Class A2A Certificates,
any reductions in their respective Certificate Principal Balances
deemed to have occurred in connection with allocations of Realized
Losses on all prior Distribution Dates pursuant to Section 4.04(b)
plus any increase to a Certificate Principal Balance pursuant to
Section 4.04(d).
“Certificate Register” and
“Certificate Registrar”: The register maintained and
the registrar appointed pursuant to Section 5.02 herein.
“Certificateholder” or
“Holder”: The Person in whose name a Certificate is
registered in the Certificate Register, except that a Disqualified
Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the
purposes of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Depositor or the Servicer
or any Affiliate thereof shall be deemed not to be outstanding and
the Voting Rights to which it is entitled shall not be taken into
account in determining whether the requisite percentage of Voting
Rights necessary to effect any such consent has been obtained,
except as otherwise provided in Section 11.01. The Trustee
may conclusively rely upon a certificate of the Depositor or the
Servicer in determining whether a Certificate is held by an
Affiliate thereof. All references herein to
“Holders” or “Certificateholders” shall
reflect the rights of Certificate Owners as they may indirectly
exercise such rights through the Depository and participating
members thereof, except as otherwise specified herein; provided,
however , that the Trustee shall be required to recognize as a
“Holder” or “Certificateholder” only the
Person in whose name a Certificate is registered in the Certificate
Register.
“Charged-off Mortgage Loan”:
As defined in Section 3.01 herein.
“Class”: All of the
Certificates bearing the same class designation as set forth in the
Preliminary Statement.
“Class A Principal
Distribution Amount”: For any Distribution Date
(a) prior to the Stepdown Date or (b) on which a Trigger
Event is in effect, is an amount equal to the Principal
Distribution Amount for such Distribution Date. For any
Distribution Date (a) on or after the Stepdown Date or
(b) on which a Trigger Event is not in effect, the excess of
(x) the aggregate Certificate Principal Balance of the
Class A Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of
(i) 56.70% and (ii) the Aggregate Principal Balance as of
the last day of the related Due Period and (B) the Aggregate
Principal Balance as of the last day of the related Due Period
minus $5,388,334.
“Class A1 LIBOR”: With
respect to any Distribution Date, is the rate for deposits in U.S.
dollars for a period of one-month that is calculated under the Swap
Agreement for the related Swap Payment Date calculated in
accordance with USD-LIBOR-BBA.
“Class Exemption”: A class
exemption granted by the U.S. Department of Labor, which provides
relief from certain of the prohibited transaction provisions of
ERISA and the related excise tax provisions of the Code.
“Class M1 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date) and (ii) the Certificate Principal
Balance of the Class M1 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product
of (i) 63.90% and (ii) the Aggregate Principal Balance as
of the last day of the related Due Period and (B) the
Aggregate Principal Balance as of the last day of the related Due
Period minus $5,388,334.
“Class M2 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the related Class A Principal Distribution
Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M1 Certificates (after taking into
account the payment of the Class M1 Principal Distribution Amount
on such Distribution Date) and (iii) the Certificate Principal
Balance of the Class M2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product
of (i) 70.40% and (ii) the Aggregate Principal Balance as
of the last day of the related Due Period and (B) the
Aggregate Principal Balance as of the last day of the related Due
Period minus $5,388,334.
“Class M3 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal
Balance of the Class M1 Certificates (after taking into account the
payment of the Class M1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of
the Class M2 Certificates (after taking into account the payment of
the Class M2 Principal Distribution Amount on such Distribution
Date) and (iv) the Certificate Principal Balance of the Class
M3 Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 74.30% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as
of the last day of the related Due Period minus
$5,388,334.
“Class M4 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal
Balance of the Class M1 Certificates (after taking into account the
payment of the Class M1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of
the Class M2 Certificates (after taking into account the payment of
the Class M2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M3
Certificates (after taking into account the payment of the Class M3
Principal Distribution Amount on such Distribution Date) and
(v) the Certificate Principal Balance of the Class M4
Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 77.90% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as
of the last day of the related Due Period minus
$5,388,334.
“Class M5 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal
Balance of the Class M1 Certificates (after taking into account the
payment of the Class M1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of
the Class M2 Certificates (after taking into account the payment of
the Class M2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M3
Certificates (after taking into account the payment of the Class M3
Principal Distribution Amount on such Distribution Date),
(v) the Certificate Principal Balance of the Class M4
Certificates (after taking into account the payment of the Class M4
Principal Distribution Amount on such Distribution Date) and
(vi) the Certificate Principal Balance of the Class M5
Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 81.00% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as
of the last day of the related Due Period minus
$5,388,334.
“Class M6 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal
Balance of the Class M1 Certificates (after taking into account the
payment of the Class M1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of
the Class M2 Certificates (after taking into account the payment of
the Class M2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M3
Certificates (after taking into account the payment of the Class M3
Principal Distribution Amount on such Distribution Date),
(v) the Certificate Principal Balance of the Class M4
Certificates (after taking into account the payment of the Class M4
Principal Distribution Amount on such Distribution Date),
(vi) the Certificate Principal Balance of the Class M5
Certificates (after taking into account the payment of the Class M5
Principal Distribution Amount on such Distribution Date) and
(vii) the Certificate Principal Balance of the Class M6
Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 84.30% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as
of the last day of the related Due Period minus
$5,388,334.
“Class M7 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal
Balance of the Class A Certificates (after taking into account
the payment of the Class A Principal Distribution Amount on
such Distribution Date), (ii) the Certificate Principal
Balance of the Class M1 Certificates (after taking into account the
payment of the Class M1 Principal Distribution Amount on such
Distribution Date), (iii) the Certificate Principal Balance of
the Class M2 Certificates (after taking into account the payment of
the Class M2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M3
Certificates (after taking into account the payment of the Class M3
Principal Distribution Amount on such Distribution Date),
(v) the Certificate Principal Balance of the Class M4
Certificates (after taking into account the payment of the Class M4
Principal Distribution Amount on such Distribution Date),
(vi) the Certificate Principal Balance of the Class M5
Certificates (after taking into account the payment of the Class M5
Principal Distribution Amount on such Distribution Date),
(vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date) and
(viii) the Certificate Principal Balance of the Class M7
Certificates immediately prior to such Distribution Date over
(y) the lesser of (A) the product of (i) 87.00% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as
of the last day of the related Due Period minus
$5,388,334.
“Class M8 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M1
Certificates (after taking into account the payment of the Class M1
Principal Distribution Amount on such Distribution Date), (iii) the
Certificate Principal Balance of the Class M2 Certificates (after
taking into account the payment of the Class M2 Principal
Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M3 Certificates (after
taking into account the payment of the Class M3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M4 Certificates (after taking into
account the payment of the Class M4 Principal Distribution Amount
on such Distribution Date), (vi) the Certificate Principal Balance
of the Class M5 Certificates (after taking into account the payment
of the Class M5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date), (viii)
the Certificate Principal Balance of the Class M7 Certificates
(after taking into account the payment of the Class M7 Principal
Distribution Amount on such Distribution Date) and (ix) the
Certificate Principal Balance of the Class M8 Certificates
immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 89.50% and (ii) the Aggregate Principal
Balance as of the last day of the related Due Period and (B) the
Aggregate Principal Balance as of the last day of the related Due
Period minus $5,388,334.
“Class M9 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M1
Certificates (after taking into account the payment of the Class M1
Principal Distribution Amount on such Distribution Date), (iii) the
Certificate Principal Balance of the Class M2 Certificates (after
taking into account the payment of the Class M2 Principal
Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M3 Certificates (after
taking into account the payment of the Class M3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M4 Certificates (after taking into
account the payment of the Class M4 Principal Distribution Amount
on such Distribution Date), (vi) the Certificate Principal Balance
of the Class M5 Certificates (after taking into account the payment
of the Class M5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date), (viii)
the Certificate Principal Balance of the Class M7 Certificates
(after taking into account the payment of the Class M7 Principal
Distribution Amount on such Distribution Date), (ix) the
Certificate Principal Balance of the Class M8 Certificates (after
taking into account the payment of the Class M8 Principal
Distribution Amount on such Distribution Date) and (x) the
Certificate Principal Balance of the Class M9 Certificates
immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 91.50% and (ii) the Aggregate Principal
Balance as of the last day of the related Due Period and (B) the
Aggregate Principal Balance as of the last day of the related Due
Period minus $5,388,334.
“Class M10 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M1
Certificates (after taking into account the payment of the Class M1
Principal Distribution Amount on such Distribution Date), (iii) the
Certificate Principal Balance of the Class M2 Certificates (after
taking into account the payment of the Class M2 Principal
Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M3 Certificates (after
taking into account the payment of the Class M3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M4 Certificates (after taking into
account the payment of the Class M4 Principal Distribution Amount
on such Distribution Date), (vi) the Certificate Principal Balance
of the Class M5 Certificates (after taking into account the payment
of the Class M5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date), (viii)
the Certificate Principal Balance of the Class M7 Certificates
(after taking into account the payment of the Class M7 Principal
Distribution Amount on such Distribution Date), (ix) the
Certificate Principal Balance of the Class M8 Certificates (after
taking into account the payment of the Class M8 Principal
Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M9 Certificates (after taking into
account the payment of the Class M9 Principal Distribution Amount
on such Distribution Date) and (xi) the Certificate Principal
Balance of the Class M10 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of
(i) 92.80% and (ii) the Aggregate Principal Balance as of the
last day of the related Due Period and (B) the Aggregate Principal
Balance as of the last day of the related Due Period minus
$5,388,334.
“Class M11 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M1
Certificates (after taking into account the payment of the Class M1
Principal Distribution Amount on such Distribution Date), (iii) the
Certificate Principal Balance of the Class M2 Certificates (after
taking into account the payment of the Class M2 Principal
Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M3 Certificates (after
taking into account the payment of the Class M3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M4 Certificates (after taking into
account the payment of the Class M4 Principal Distribution Amount
on such Distribution Date), (vi) the Certificate Principal Balance
of the Class M5 Certificates (after taking into account the payment
of the Class M5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date), (viii)
the Certificate Principal Balance of the Class M7 Certificates
(after taking into account the payment of the Class M7 Principal
Distribution Amount on such Distribution Date), (ix) the
Certificate Principal Balance of the Class M8 Certificates (after
taking into account the payment of the Class M8 Principal
Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M9 Certificates (after taking into
account the payment of the Class M9 Principal Distribution Amount
on such Distribution Date), (xi) the Certificate Principal Balance
of the Class M10 Certificates (after taking into account the
payment of the Class M10 Principal Distribution Amount on such
Distribution Date) and (xii) the Certificate Principal Balance of
the Class M11 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 94.80% and
(ii) the Aggregate Principal Balance as of the last day of the
related Due Period and (B) the Aggregate Principal Balance as of
the last day of the related Due Period minus $5,388,334.
“Class M12 Principal Distribution
Amount”: With respect to any Distribution Date, the excess of
(x) the sum of (i) the aggregate Certificate Principal Balance of
the Class A Certificates (after taking into account the payment of
the Class A Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M1
Certificates (after taking into account the payment of the Class M1
Principal Distribution Amount on such Distribution Date), (iii) the
Certificate Principal Balance of the Class M2 Certificates (after
taking into account the payment of the Class M2 Principal
Distribution Amount on such Distribution Date), (iv) the
Certificate Principal Balance of the Class M3 Certificates (after
taking into account the payment of the Class M3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class M4 Certificates (after taking into
account the payment of the Class M4 Principal Distribution Amount
on such Distribution Date), (vi) the Certificate Principal Balance
of the Class M5 Certificates (after taking into account the payment
of the Class M5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M6
Certificates (after taking into account the payment of the Class M6
Principal Distribution Amount on such Distribution Date), (viii)
the Certificate Principal Balance of the Class M7 Certificates
(after taking into account the payment of the Class M7 Principal
Distribution Amount on such Distribution Date), (ix) the
Certificate Principal Balance of the Class M8 Certificates (after
taking into account the payment of the Class M8 Principal
Distribution Amount on such Distribution Date), (x) the Certificate
Principal Balance of the Class M9 Certificates (after taking into
account the payment of the Class M9 Principal Distribution Amount
on such Distribution Date), (xi) the Certificate Principal Balance
of the Class M10 Certificates (after taking into account the
payment of the Class M10 Principal Distribution Amount on such
Distribution Date), (xii) the Certificate Principal Balance of the
Class M11 Certificates (after taking into account the payment of
the Class M11 Principal Distribution Amount on such Distribution
Date) and (xii) the Certificate Principal Balance of the Class M12
Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 97.00% and (ii) the
Aggregate Principal Balance as of the last day of the related Due
Period and (B) the Aggregate Principal Balance as of the last day
of the related Due Period minus $5,388,334.
“Class X Distribution
Amount”: With respect to any Distribution Date the sum of
(i) the Overcollateralization Release Amount for that
Distribution Date, if any, and (ii) the product of (x) a
notional amount, equal to the aggregate Stated Principal Balance of
the Mortgage Loans as of the first day of the month preceding the
month of such Distribution Date (after giving effect to Monthly
Payments of principal due on such date and reduced by Principal
Prepayments received and distributed in the month prior that
Distribution Date), and (y) the Pass-Through Rate for such
Class for such Distribution Date as set forth in footnote
(2) to “Master REMIC” under Section 1.03 herein,
less (iii) distributions made pursuant to Section
4.01(a)(3)(i)-(xliii) on such Distribution Date.
“Closing Date”: June 6,
2005.
“Code”: The Internal Revenue
Code of 1986, including any successor or amendatory
provisions.
“Collection Account”: The
account or accounts created and maintained by the Servicer pursuant
to Section 3.10(a), which shall be entitled “Countrywide Home
Loans Servicing LP, as Servicer for Wells Fargo Bank, N.A., as
Trustee, in trust for the registered holders of Asset Backed
Securities Corporation Home Equity Loan Trust 2005-HE5, Series
2005-HE5”. The Collection Account must be an Eligible
Account.
“Commission”: The
Securities and Exchange Commission.
“Compensating Interest”: As
defined in Section 3.24 herein.
“Controlling Person”: The
Holders of the majority Percentage Interest of the Class X
Certificates.
“Corporate Trust Office”: The
principal corporate trust office of the Trustee at which at any
particular time its corporate trust business in connection with
this Agreement shall be administered, which offices at the date of
the execution of this instrument is located: (i) for certificate
transfer purposes, at Wells Fargo Bank, N.A., Wells Fargo Center,
Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479
0113, Attention: ABSC 2005-HE5, and (ii) for all other purposes,
9062 Old Annapolis Road, Columbia, Maryland 21045-1951, Attention:
Client Manager, ABSC 2005-HE5, or at such other address as the
Trustee may designate from time to time by notice to the
Certificateholders, the Depositor and the Servicer.
“Corresponding Classes of
Certificates”: With respect to each REMIC Regular Interest,
any Class of Certificates appearing opposite such REMIC Regular
Interest in Section 1.03 hereof.
“CPR”: A prepayment
assumption that represents an annualized constant assumed rate of
prepayment each month of a pool of mortgage loans relative to its
outstanding principal balance for the life of such pool.
“Credit Enhancement
Percentage”: For any Distribution Date, the percentage
obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balance of the Mezzanine Certificates (after giving effect to the distribution of the
Principal Distribution Amount on such Distribution Date) and (ii)
the Overcollateralization Amount which for the purposes of this
definition shall not be less than zero (after giving effect to the
distribution of the Principal Distribution Amount on such
Distribution Date) by (y) the Aggregate Principal Balance as of the
last day of the related Due Period.
“Credit Repositories”: Each
of Equifax, Transunion, and Experian, or their respective
successors in interest.
“Custodial Agreement”: Any
custodial agreement between the Trustee and the related Custodian
providing for the safekeeping of any documents or instruments
referred to in Section 2.01 on behalf of the
Certificateholders.
“Custodial File”: A Mortgage
File held by a Custodian on behalf of the Trustee.
“Custodian”: A custodian that
is appointed pursuant to a Custodial Agreement. Any Custodian
so appointed shall act as agent on behalf of the Trustee, and shall
be compensated by the Depositor.
“Cut-off Date”: With respect
to each Mortgage Loan (other than a Qualified Substitute Mortgage
Loan), June 1, 2005. With respect to all Qualified Substitute
Mortgage Loans, their respective dates of substitution.
References herein to the “Cut-off Date,” when
used with respect to more than one Mortgage Loan, shall be to the
respective Cut-off Dates for such Mortgage Loans.
“DBRS”: Dominion Bond
Rating Service, Inc. or its successor in interest.
“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 resulting from a Deficient Valuation.
“Default Rate”: As defined in
the related Yield Maintenance Agreement.
“Deficient Valuation”: With
respect to any Mortgage Loan, a valuation of the related Mortgaged
Property by a court of competent jurisdiction in an amount less
than the then outstanding principal balance of the Mortgage Loan,
which valuation results from a proceeding initiated under the
Bankruptcy Code.
“Definitive Certificates”: As
defined in Section 5.01(b) herein.
“Deleted Mortgage Loan”: A
Mortgage Loan replaced or to be replaced by a Qualified Substitute
Mortgage Loan.
“Delinquency Percentage”:
With respect to the last day of a Due Period, the percentage
equivalent of a fraction, the numerator of which is the aggregate
Stated Principal Balance of all Mortgage Loans that, as of the last
day of the previous calendar month, are 60 or more days Delinquent,
are in foreclosure, have been converted to REO Properties or have
been discharged by reason of bankruptcy, and the denominator of
which is the aggregate Stated Principal Balance of the Mortgage
Loans and REO Properties as of the last day of the previous
calendar month.
“Delinquent”: A Mortgage Loan
is “Delinquent” if any Monthly Payment due on a Due
Date is not made by the close of business on the next scheduled Due
Date for that Mortgage Loan (including all foreclosures,
bankruptcies and REO Properties). A Mortgage Loan is
“30 days Delinquent” if the Monthly Payment has not
been received by the close of business on the corresponding day of
the month immediately succeeding the month in which that Monthly
Payment was due or, if there was no corresponding date (e.g., as
when a 30-day month follows a 31-day month in which the payment was
due on the 31st day of that month), then on the last day of that
immediately succeeding month; and similarly for “60 days
Delinquent” and “90 days Delinquent,” etc.
“Depositor”: Asset Backed
Securities Corporation, a Delaware corporation, or its successor in
interest.
“Depositor Certification”: As
defined in Section 4.06(b) herein, a form of which is attached
hereto as Exhibit H.
“Depository”: The Depository
Trust Company, or any successor Depository hereafter named.
The nominee of the initial Depository, for purposes of
registering those Certificates that are to be Book-Entry
Certificates, is CEDE & Co. The Depository shall at all
times be a “clearing corporation” as defined in Section
8-102(a)(5) of the Uniform Commercial Code of the State of New York
and a “clearing agency” registered pursuant to the
provisions of Section 17A of the Exchange Act.
“Depository Institution”: Any
depository institution or trust company, including the Trustee,
that (a) is incorporated under the laws of the United States of
America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has
outstanding unsecured commercial paper or other short-term
unsecured debt obligations that are rated “F-1” by
Fitch (if rated by Fitch), “A-1” by S&P and
“P-1” by Moody’s (or comparable ratings if Fitch,
S&P and Moody’s are not the Rating Agencies).
“Depository Participant”: A
broker, dealer, bank or other financial institution or other Person
for whom from time to time a Depository effects book-entry
transfers and pledges of securities deposited with the
Depository.
“Determination Date”: With
respect to each Distribution Date, the 15th day of the calendar
month in which such Distribution Date occurs or, if such 15th day
is not a Business Day, the Business Day immediately preceding such
15th day.
“Directly Operate”: With
respect to any REO Property, the furnishing or rendering of
services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for
sale to customers, the performance of any construction work thereon
or any use of such REO Property in a trade or business conducted by
the Trust Fund other than through an Independent Contractor;
provided, however , that the Trustee (or the Servicer on
behalf of the Trustee) shall not be considered to Directly Operate
an REO Property solely because the Trustee (or the Servicer on
behalf of the Trustee) establishes rental terms, chooses tenants,
enters into or renews leases, deals with taxes and insurance, or
makes decisions as to repairs or capital expenditures with respect
to such REO Property.
“Disqualified
Organization”: Any of the following: (i) the United States,
any State or political subdivision thereof, any possession of the
United States, or any agency or instrumentality of any of the
foregoing (other than an instrumentality which is a corporation if
all of its activities are subject to tax and, except for Freddie
Mac, a majority of its board of directors is not selected by such
governmental unit), (ii) any foreign government, any international
organization, or any agency or instrumentality of any of the
foregoing, (iii) any organization (other than certain
farmers’ cooperatives described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code
(including the tax imposed by Section 511 of the Code on unrelated
business taxable income), (iv) rural electric and telephone
cooperatives described in Section 1381(a)(2)(C) of the Code, (v) an
“electing large partnership” within the meaning of
Section 775 of the Code and (vi) any other Person so designated by
the Trustee based upon an Opinion of Counsel that the holding of an
Ownership Interest in a Residual Certificate by such Person may
cause any REMIC created hereunder, or any Person having an
Ownership Interest in any Class of Certificates (other than such
Person) to incur a liability for any federal tax imposed under the
Code that would not otherwise be imposed but for the Transfer of an
Ownership Interest in a Residual Certificate to such Person.
The terms “United States,” “State”
and “international organization” shall have the
meanings set forth in Section 7701 of the Code or successor
provisions.
“Distribution Account”: The
trust account or accounts created and maintained by the Trustee
pursuant to Section 3.10(b) which shall be entitled
“Distribution Account, Wells Fargo Bank, N.A., as Trustee, in
trust for the registered holders of Asset Backed Securities
Corporation Home Equity Loan Trust, Series WMC 2005-HE5”.
The Distribution Account must be an Eligible
Account.
“Distribution Date”: The 25th
day of any month, or if such 25th day is not a Business Day, the
Business Day immediately following such 25th day, commencing in
July 2005.
“Due Date”: With respect to
each Distribution Date and each Mortgage Loan (a) that has a
Monthly Payment due on the first day of the month, the first day of
the month and (b) that has a Monthly Payment due on a day other
than the first day of the month, such Mortgage Loan will be treated
as if the Monthly Payment is due on the first day of the
immediately succeeding month, in each case, exclusive of any days
of grace in the related Due Period.
“Due Period”: With respect to
any Distribution Date, the period commencing on the second day of
the month immediately preceding the month in which such
Distribution Date occurs and ending on the first day of the month
in which such Distribution Date occurs.
“Early Termination Date”: As
defined in the related Yield Maintenance Agreement or the Swap
Agreement, as the context requires.
“Early Termination Fund”: The
separate Eligible Account created and initially maintained by the
Trustee pursuant to Section 4.07 in the name of the Trustee for the
benefit of the Certificateholders and designated “Wells Fargo
Bank, N.A., in trust for registered holders of Asset Backed
Securities Corporation, Asset Backed Pass-Through Certificates,
Series WMC 2005-HE5.” The Early Termination Fund shall
not be part of any REMIC. Funds in the Early Termination Fund
shall be held in trust for the Class X Certificateholders for
the uses and purposes set forth in this Agreement.
“EDGAR”: The
Commission’s Electronic Data Gathering and Retrieval
System.
“Eligible
Account”: Either (1) an account or accounts maintained with a
federal or state-chartered Depository Institution or trust company
acceptable to the Rating Agencies and shall be: (a) commercial
paper, short-term debt obligation, or other short-term deposits
rated at least “A-1+” by S&P and “F-1+”
by Fitch (if rated by Fitch) if the deposits are to be held in the
account for less than 30 days; or (b) long term unsecured debt
obligations rated at least “AA-” by S&P if the
deposits are to be held in the account more than 30 days; following
a downgrade, withdrawal, or suspension of such institution’s
rating, each account should promptly (and in any case within not
more than 10 calendar days) be moved to a qualifying institution or
to one or more segregated trust accounts in the trust department of
such institution, if permitted; or (2) a segregated trust account
or accounts maintained with the corporate trust department of a
federal depository institution or state-chartered depository
institution subject to regulations regarding fiduciary funds on
deposit similar to Title 12 of the Code of Federal Regulation
Section 9.10(b), which, in either case, has corporate trust powers,
acting in its fiduciary capacity. Eligible Accounts may bear
interest.
“ERISA”: The Employee
Retirement Income Security Act of 1974, as amended.
“ERISA-Qualifying
Underwriting”: A best efforts or firm commitment underwriting
or private placement that meets the requirements (without regard to
the ratings requirements) of an Underwriter’s
Exemption.
“Estate in Real Property”: A
fee simple estate in a parcel of land.
“Excess Overcollateralization
Amount”: With respect to any Distribution Date, the excess,
if any, of (i) the Overcollateralization Amount for such
Distribution Date (assuming that 100% of the Principal Remittance
Amount is applied as a principal payment on such Distribution Date)
over (ii) the Overcollateralization Target Amount for such
Distribution Date.
“Exchange Act”: The
Securities Exchange Act of 1934, as amended.
“Extraordinary Trust Fund
Expense”: Any amounts reimbursable to the Trustee or any
director, officer, employee or agent of the Trustee, from the Trust
Fund pursuant to Section 2.02, 2.03, 7.02 or 8.05(a) and any
amounts payable from the Distribution Account in respect of taxes
pursuant to Section 10.01(g)(iii), any amounts payable from the
Distribution Account in respect of any REMIC administration
pursuant to Section 10.01(c).
“Fannie Mae”: Fannie Mae,
formerly known as Federal National Mortgage Association, or any
successor thereto.
“FDIC”: Federal Deposit
Insurance Corporation or any successor thereto.
“Federal Funds Rate”: The
interest rate at which depository institutions lend balances at the
Federal Reserve to other depository institutions
overnight.
“Final Certification”: As
defined in Section 2.02.
“Final Distribution Date”:
The Distribution Date in June 2035.
“Final Recovery
Determination”: With respect to any defaulted Mortgage Loan
or any REO Property (other than a Mortgage Loan or REO Property
purchased by the Seller, the Depositor or the Servicer, as the case
may be, pursuant to or as contemplated by Section 2.03, Section
3.16(c) or Section 9.01, as applicable), a determination made by
the Servicer that all Insurance Proceeds, Liquidation Proceeds and
other payments or recoveries which the Servicer, in its reasonable
good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered. The Servicer shall maintain
records, prepared by a Servicing Officer, of each Final Recovery
Determination made thereby.
“First Lien”: With respect to
any second lien Mortgage Loan, the mortgage loan relating to the
corresponding Mortgaged Property having a first priority
lien.
“Fitch”: Fitch, Inc., or its
successor in interest thereto.
“Fixed Rate Mortgage Loan”:
Each of the Mortgage Loans identified in the Mortgage Loan Schedule
as having a Mortgage Rate that is fixed.
“Fixed-Rate PPC”: 100%
Fixed-Rate PPC means a CPR of 4.00% per annum of the then unpaid
principal balance of the Fixed Rate Mortgage Loans in the first
month of the life of such Mortgage Loans and an additional
approximately 1.4545% (precisely 16%/11 expressed as a percentage)
per annum in each month thereafter until the 12th month, and then
beginning in the 12th month and in each month thereafter during the
life of such Mortgage Loans, a CPR of 20% per annum.
“Formula Rate”: As to (a) any
Class of LIBOR Certificates (other than the Class A1 Certificates,
so long as a Swap Default has not occurred and is not continuing)
and any Distribution Date, the sum of One-Month LIBOR and the
applicable Certificate Margin for the related Interest Accrual
Period and (b) the Class A1 Certificates (so long as a Swap
Default has not occurred and is not continuing) and any
Distribution Date, the sum of Class A1 LIBOR and the applicable
Certificate Margin for the related Interest Accrual
Period.
“Freddie Mac”: Freddie Mac,
formerly known as Federal Home Loan Mortgage Corporation, or any
successor thereto.
“Gross Margin”: With respect
to each Adjustable Rate Mortgage Loan, the fixed percentage set
forth in the related Mortgage Note that is added to the Index on
each Adjustment Date in accordance with the terms of the related
Mortgage Note used to determine the Mortgage Rate for such Mortgage
Loan.
“Gross Swap Reimbursement
Amount”: With respect to an Interest Accrual Period, the sum
of the Swap Reimbursement Amount in respect of such Interest
Accrual Period, any Gross Swap Reimbursement Amount(s), or part
thereof, that remain unpaid in respect of any prior Interest
Accrual Period and interest in respect of such amount(s) charged at
a rate equal to the Formula Rate in respect of the Class A1
Certificates.
“Independent”: When used with
respect to any specified Person, any such Person who (a) is in fact
independent of the Depositor, the Servicer and their respective
Affiliates, (b) does not have any direct financial interest in or
any material indirect financial interest in the Depositor, the
Servicer or any Affiliate thereof, and (c) is not connected with
the Depositor, the Servicer or any Affiliate thereof as an officer,
employee, promoter, underwriter, trustee, partner, director or
Person performing similar functions; provided, however ,
that a Person shall not fail to be Independent of the Depositor,
the Servicer or any Affiliate thereof merely because such Person is
the beneficial owner of 1% or less of any Class of securities
issued by the Depositor or the Servicer or any Affiliate thereof,
as the case may be.
“Independent Contractor”:
Either (i) any Person (other than the Servicer) that would be an
“independent contractor” with respect to the Trust Fund
within the meaning of Section 856(d)(3) of the Code if the Trust
Fund were a real estate investment trust (except that the ownership
tests set forth in that section shall be considered to be met by
any Person that owns, directly or indirectly, 35% or more of any
Class of Certificates), so long as the Trust Fund does not receive
or derive any income from such Person and provided that the
relationship between such Person and the Trust Fund is at
arm’s length, all within the meaning of Treasury Regulation
Section 1.856-4(b)(5), or (ii) any other Person (including the
Servicer) if the Trustee has received an Opinion of Counsel to the
effect that the taking of any action in respect of any REO Property
by such Person, subject to any conditions therein specified, that
is otherwise herein contemplated to be taken by an Independent
Contractor will not cause such REO Property to cease to qualify as
“foreclosure property” within the meaning of Section
860G(a)(8) of the Code (determined without regard to the exception
applicable for purposes of Section 860D(a) of the Code), or cause
any income realized in respect of such REO Property to fail to
qualify as Rents from Real Property.
“Index”: With respect to each
Adjustable Rate Mortgage Loan and each related Adjustment Date, the
index as specified in the related Mortgage Note.
“Initial Certification”: As
defined in Section 2.02.
“Insurance Proceeds”:
Proceeds of any title policy, hazard policy or other insurance
policy covering a Mortgage Loan, to the extent such proceeds are
not to be applied to the restoration of the related Mortgaged
Property or released to the Mortgagor in accordance with the
procedures that the Servicer would follow in servicing Mortgage
Loans held for its own account, subject to the terms and conditions
of the related Mortgage Note and Mortgage.
“Interest Accrual Period”:
With respect to any Distribution Date and the LIBOR Certificates,
will be the actual number of days (based on a 360-day year)
included in the period commencing on the immediately preceding
Distribution Date (or, in the case of the first such Interest
Accrual Period, commencing on the Closing Date) and ending on the
day immediately preceding such Distribution Date.
“Interest Determination
Date”: With respect to the LIBOR Certificates and any
Interest Accrual Period therefor, the second London Business Day
preceding the commencement of such Interest Accrual
Period.
“Interest Remittance Amount”:
With respect to any Distribution Date, the sum of the
Subgroup 1 Interest Remittance Amount and the Subgroup 2
Interest Remittance Amount.
“Late Collections”: With
respect to any Mortgage Loan and any Due Period, all amounts
received subsequent to the Determination Date immediately following
such Due Period, whether as late payments of Monthly Payments or as
Insurance Proceeds, Liquidation Proceeds or otherwise, which
represent late payments or collections of principal and/or interest
due (without regard to any acceleration of payments under the
related Mortgage and Mortgage Note) but Delinquent for such Due
Period and not previously recovered.
“Legal Fees”: As defined in
Section 8.05(b).
“LIBOR Certificates”: As
specified in the Preliminary Statement.
“Liquidation Event”: With
respect to any Mortgage Loan, any of the following events: (i) such
Mortgage Loan is paid in full; (ii) a Final Recovery Determination
is made as to such Mortgage Loan; (iii) such Mortgage Loan is
removed from the Trust Fund by reason of its being purchased, sold
or replaced pursuant to or as contemplated by Section 2.03, Section
3.16(c), Section 3.23 or Section 9.01; or (iv) such Mortgage Loan
becomes a Charged-off Mortgage Loan. With respect to any REO
Property, either of the following events: (i) a Final Recovery
Determination is made as to such REO Property; or (ii) such REO
Property is removed from the Trust Fund by reason of its being
purchased pursuant to Section 9.01.
“Liquidation Proceeds”: The
amount (other than Insurance Proceeds, Recoveries or amounts
received in respect of the rental of any REO Property prior to REO
Disposition) received by the Servicer in connection with (i) the
taking of all or a part of a Mortgaged Property by exercise of the
power of eminent domain or condemnation, (ii) the liquidation of a
defaulted Mortgage Loan through a trustee’s sale, foreclosure
sale or otherwise, or (iii) the repurchase, substitution or sale of
a Mortgage Loan or an REO Property pursuant to or as contemplated
by Section 2.03, Section 3.16(c), Section 3.23 or Section
9.01.
“Loan Performance Advisor”:
MortgageRamp Inc., a Delaware corporation, and its successors in
interest.
“Loan Performance Advisor
Agreement”: The Loan Performance Advisor Agreement, dated as
of February 28, 2005, by and between the Depositor and the Loan
Performance Advisor.
“LPA Fee”: As to any
Distribution Date, an amount equal to the greater of (A) (i) the
product of (a) one-twelfth of the LPA Fee Rate and (b) the
aggregate Stated Principal Balance of the Mortgage Loans as of the
preceding Distribution Date or, in the case of the first
Distribution Date, the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off date; provided
however that the Loan Performance Advisor Fee for any
Distribution Date shall not be lower than $1,500.
“LPA Fee Rate”: With respect
to each Mortgage Loan, either (a) 0.015% per annum or (b) if the
Loan Performance Advisor Fee is the amount calculated pursuant to
the proviso in the definition of “Loan Performance Advisor
Fee”, a per annum rate determined by dividing such fee by the
average of the aggregate Stated Principal Balance of the Mortgage
Loans as of the preceding Distribution Date.
“Loan-to-Value Ratio” or
“LTV”: With respect to any first lien Mortgage Loan and
as of any date of determination, the fraction, expressed as a
percentage, the numerator of which is the principal balance of the
related Mortgage Loan at such date and the denominator of which is
the Value of the related Mortgaged Property. With respect to
any second lien Mortgage Loan and as of any date of determination,
the fraction, expressed as a percentage, the numerator of which is
the sum of (a) the principal balance of the related Mortgage Loan
at the date of origination plus (b) the principal balance of the
related First Lien at the date of origination of such mortgage loan
and the denominator of which is the Value of the related Mortgaged
Property.
“London Business Day”: Any
day on which banks in the City of London and The City of New York
are open and conducting transactions in United States
dollars.
“Master REMIC”: As defined in
Section 1.03 of this Agreement.
“Maximum Mortgage Rate”: With
respect to each Adjustable Rate Mortgage Loan, the percentage set
forth in the related Mortgage Note as the maximum Mortgage Rate
thereunder.
“Minimum Mortgage Rate”: With
respect to each Adjustable Rate Mortgage Loan, the greater of (a)
the Gross Margin set forth in the related Mortgage Note and (b) the
percentage set forth in the related Mortgage Note as the minimum
Mortgage Rate thereunder.
“Monthly Interest Distributable
Amount”: With respect to any Distribution Date and each Class
of Certificates, other than the Class P, Class R and
Class X Certificates, an amount equal to the amount of
interest accrued during the related Interest Accrual Period at the
related Pass-Through Rate on the Certificate Principal Balance of
such Class of Certificates immediately prior to such Distribution
Date, in each case, reduced by any Net Prepayment Interest
Shortfalls allocated to such Class of Certificates and any Relief
Act Interest Shortfalls allocated to such Class of Certificates, in
each such case, as such shortfalls are allocated pursuant to
Section 1.02 herein.
“Monthly Payment”: With
respect to any Mortgage Loan, the scheduled monthly payment of
principal and interest on such Mortgage Loan which is payable by
the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient
Valuation and/or Debt Service Reduction with respect to such
Mortgage Loan and (ii) any reduction in the amount of interest
collectible from the related Mortgagor pursuant to the Relief Act;
(b) without giving effect to any extension granted or agreed to by
the Servicer pursuant to Section 3.07(a); and (c) on the assumption
that all other amounts, if any, due under such Mortgage Loan are
paid when due.
“Moody’s”:
Moody’s Investors Service, Inc. or its successor in
interest.
“Mortgage”: The mortgage,
deed of trust or other instrument creating a first or second lien
on, or first or second priority security interest in, a Mortgaged
Property securing a Mortgage Note.
“Mortgage File”: The mortgage
documents listed in Section 2.01 pertaining to a particular
Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to this Agreement.
“Mortgage Loan”: Each
mortgage loan transferred and assigned to the Trustee pursuant to
Section 2.01 or Section 2.03(c) of this Agreement, as held from
time to time as a part of the Trust Fund, the Mortgage Loans so
held being identified in the Mortgage Loan Schedule, including each
REO Property unless the context otherwise requires.
“Mortgage Loan Purchase
Agreement”: The agreement between WMC and DLJ Mortgage
Capital, Inc., regarding the sale of the Mortgage Loans by WMC to
the Seller.
“Mortgage Loan Schedule”: As
of any date, the list of Mortgage Loans included in the Trust Fund
on such date, attached hereto as Schedule 1. The Mortgage
Loan Schedule shall set forth by Subgroup the following information
with respect to each Mortgage Loan in such Subgroup:
(i)
the Mortgagor’s name and the
Originator’s Mortgage Loan identifying number;
(ii)
the street address of the Mortgaged
Property including the state and zip code;
(iii)
a code indicating whether the Mortgaged
Property is owner-occupied;
(iv)
the type of Residential Dwelling
constituting the Mortgaged Property;
(v)
the original months to
maturity;
(vi)
the Loan-to-Value Ratio, at
origination;
(vii)
the Mortgage Rate in effect immediately
following the Cut-off Date;
(viii)
the date on which the first Monthly
Payment was due on the Mortgage Loan;
(ix)
the stated maturity date of such Mortgage
Loan and of the related First Lien, if applicable;
(x)
the amount of the Monthly Payment (a) at
origination and (b) due on the first Due Date after the Cut-off
Date;
(xi)
the last Due Date on which a Monthly
Payment was actually applied to the unpaid Stated Principal
Balance;
(xii)
the original principal amount of the
Mortgage Loan and the original principal balance of the related
First Lien, if applicable, as of the date of
origination;
(xiii)
the Stated Principal Balance of the
Mortgage Loan and the Stated Principal Balance of the related First
Lien, if applicable, as of the close of business on the Cut-off
Date;
(xiv)
with respect to each Adjustable Rate
Mortgage Loan, the applicable Index and Gross Margin;
(xv)
a code indicating the purpose of the
Mortgage Loan (i.e., purchase financing, rate/term refinancing,
cash-out refinancing);
(xvi)
with respect to each Adjustable Rate
Mortgage Loan, the Maximum Mortgage Rate;
(xvii)
with respect to each Adjustable Rate
Mortgage Loan, the Minimum Mortgage Rate;
(xviii)
the Mortgage Rate at
origination;
(xix)
with respect to each Adjustable Rate
Mortgage Loan, the Periodic Rate Cap and the maximum first
Adjustment Date Mortgage Rate adjustment;
(xx)
a code indicating the documentation
program;
(xxi)
with respect to each Adjustable Rate
Mortgage Loan, the first Adjustment Date immediately following the
Cut-off Date and the Adjustment Date frequency;
(xxii)
the Value of the Mortgaged
Property;
(xxiii)
the sale price of the Mortgaged Property,
if applicable;
(xxiv)
the Originator’s risk grade and the
FICO or other credit score;
(xxv)
the actual interest “paid to
date” of the Mortgage Loan as of the Cut-off Date;
(xxvi)
the number of years any Prepayment
Premium is in effect;
(xxvii)
the loan type (e.g., fixed, adjustable;
2/28, 2/28 IO, 3/27, 3/27 IO etc.);
(xxviii)
the actual unpaid principal balance of
the Mortgage Loan as of the Cut-off Date;
(xxix)
a code indicating whether such Mortgage
Loan is a Subgroup 1 Mortgage Loan or a Subgroup 2
Mortgage Loan;
(xxx)
a code indicating whether the Mortgage
Loan is a second lien Mortgage Loan; and
(xxxi)
a code indicating whether the Mortgage
Loan is subject to a Prepayment Premium, if any.
The Mortgage Loan Schedule shall set
forth the following information with respect to the Mortgage Loans
in the aggregate as of the Cut-off Date: (1) the number of Mortgage
Loans; (2) the current principal balance of the Mortgage
Loans; (3) the weighted average Mortgage Rate of the Mortgage
Loans; and (4) the weighted average maturity of the Mortgage Loans.
The Mortgage Loan Schedule shall set forth the aggregate
Stated Principal Balance of the Mortgage Loans. The Mortgage
Loan Schedule shall be amended from time to time by the Depositor
in accordance with the provisions of this Agreement. With
respect to any Qualified Substitute Mortgage Loan, the Cut-off Date
shall refer to the related Cut-off Date for such Mortgage Loan,
determined in accordance with the definition of Cut-off Date
herein.
“Mortgage Note”: The original
executed note or other evidence of the indebtedness of a Mortgagor
under a Mortgage Loan.
“Mortgage Pool”: The pool of
Mortgage Loans, identified on Schedule 1 from time to time, and any
REO Properties acquired in respect thereof.
“Mortgage Rate”: With respect
to each Mortgage Loan, the annual rate at which interest accrues on
such Mortgage Loan from time to time in accordance with the
provisions of the related Mortgage Note. With respect to each
Mortgage Loan that becomes an REO Property, as of any date of
determination, the annual rate determined in accordance with the
immediately preceding sentence as of the date such Mortgage Loan
became an REO Property.
“Mortgaged Property”: The
underlying property securing a Mortgage Loan, including any REO
Property, consisting of an Estate in Real Property or a leasehold
interest improved by a Residential Dwelling.
“Mortgagor”: The obligor on a
Mortgage Note.
“Net Liquidation Proceeds”:
With respect to any liquidation of a Mortgage Loan or any other
disposition of related Mortgaged Property (including REO Property),
the related Liquidation Proceeds, net of P&I Advances,
Servicing Advances, Servicing Fees and any other fees, received and
retained in connection with the liquidation of such Mortgage Loan
or Mortgaged Property in accordance with the terms of this
Agreement.
“Net Monthly Excess
Cashflow”: With respect to any Distribution Date, an amount
equal to the sum of (i) any Overcollateralization Release Amount
for such Distribution Date and (ii) the positive excess of (x) the
Available Distribution Amount for such Distribution Date and Swap
Counterparty Payment for the related Swap Payment Date over (y) the
sum for such Distribution Date of (A) the Monthly Interest
Distributable Amounts for the LIBOR Certificates pursuant to
Section 4.01(a)(1), (B) the Trust Swap Payment for the related
Swap Payment Date, (C) any Unpaid Interest Shortfall Amounts for
the Class A Certificates, (D) the Principal Remittance Amount,
(E) the Aggregate Strip Amount and (F) any Swap Termination Payment
(only if the Swap Default is attributable to the Trust).
“Net Mortgage Rate”: With
respect to any Mortgage Loan (or the related REO Property) as of
any date of determination, a per annum rate of interest equal to
the then applicable Mortgage Rate for such Mortgage Loan minus the
sum of LPA Fee Rate and the Servicing Fee Rate.
“Net Prepayment Interest
Shortfall”: With respect to any Distribution Date, the
excess, if any, of any Prepayment Interest Shortfalls for such date
over the related Compensating Interest.
"Net Swap Payment": As defined in
Section 4.01.
“Net WAC Rate”: The
Subgroup 1 Net WAC Rate, the Subgroup 2 Net WAC Rate or
the Subordinate Net WAC Rate, as applicable.
“Net WAC Rate Carryover
Amount”: For any Distribution Date on which the Pass-Through
Rate for any Class of LIBOR Certificates is equal to the related
Net WAC Rate, an amount equal to the sum of (i) the excess of (x)
the amount of interest such Class accrued for such Distribution
Date at the related Formula Rate, over (y) the amount of interest
such Class accrued for such Distribution Date at the related Net
WAC Rate and (ii) the unpaid portion of any related Net WAC Rate
Carryover Amount from the prior Distribution Date together with
interest accrued on such unpaid portion for the most recently ended
Interest Accrual Period at the Formula Rate applicable for such
Class for such Interest Accrual Period.
“Net WAC Reserve Fund”: The
Eligible Account established pursuant to Section 3.26.
“New Lease”: Any lease of REO
Property entered into on behalf of the Trust Fund, including any
lease renewed or extended on behalf of the Trust Fund, if the Trust
Fund has the right to renegotiate the terms of such
lease.
“Nonrecoverable P&I
Advance”: Any P&I Advance previously made or proposed to
be made in respect of a Mortgage Loan or REO Property that, in the
good faith business judgment of the Servicer using Accepted
Servicing Practices, will not or, in the case of a proposed P&I
Advance, would not be ultimately recoverable from related Late
Collections, Insurance Proceeds or Liquidation Proceeds on such
Mortgage Loan or REO Property as provided herein.
“Nonrecoverable Servicing
Advance”: Any Servicing Advance previously made or proposed
to be made in respect of a Mortgage Loan or REO Property that, in
the good faith business judgment of the Servicer using Accepted
Servicing Practices, will not or, in the case of a proposed
Servicing Advance, would not be ultimately recoverable from related
Late Collections, Insurance Proceeds or Liquidation Proceeds on
such Mortgage Loan or REO Property as provided herein.
“Non-United States Person”:
Any Person other than a United States Person.
“Offered Certificates”: As
defined in the Preliminary Statement.
“Offered Subordinate
Certificates”: As specified in the Preliminary
Statement.
“Officers’
Certificate”: With respect to the Depositor and the Seller, a
certificate signed by the Chairman of the Board, the Vice Chairman
of the Board, the President, a vice president (however denominated)
or an authorized agent, and by the Treasurer, the Secretary, or one
of the assistant treasurers or assistant secretaries of the
Depositor or Seller, as applicable. With respect to the
Servicer, any officer who is authorized to act for the Servicer in
matters relating to this Agreement, and whose action is binding
upon the Servicer, initially including those individuals whose
names appear on the list of authorized officers delivered at the
closing.
“One-Month LIBOR”: With
respect to (a) the LIBOR Certificates (other than the Class A1
Certificates, so long as a Swap Default has not occurred and is not
continuing) and any Interest Accrual Period therefor, the rate
determined by the Trustee on the related Interest Determination
Date (or with respect to the initial Interest Accrual Period, on
the Closing Date based on information available on the related
Interest Determination Date) on the basis of the offered rate for
one-month U.S. dollar deposits, as such rate appears on Telerate
Page 3750 as of 11:00 a.m. (London time) on such Interest
Determination Date; provided that if such rate does not appear on
Telerate Page 3750, the rate for such date will be determined on
the basis of the offered rates of the Reference Banks for one-month
U.S. dollar deposits, as of 11:00 a.m. (London time) on such
Interest Determination Date. In such event, the Trustee will
request the principal London office of each of the Reference Banks
to provide a quotation of its rate. If on such Interest
Determination Date, two or more Reference Banks provide such
offered quotations, One-Month LIBOR for the related Interest
Accrual Period shall be the arithmetic mean of such offered
quotations (rounded upwards if necessary to the nearest whole
multiple of 1/16%). If on such Interest Determination Date,
fewer than two Reference Banks provide such offered quotations,
One-Month LIBOR for the related Interest Accrual Period shall be
the higher of (i) One-Month LIBOR as determined on the
previous Interest Determination Date and (ii) the Reserve Interest
Rate. Notwithstanding the foregoing, if, under the priorities
described above, One-Month LIBOR for an Interest Determination Date
would be based on One-Month LIBOR for the previous Interest
Determination Date for the third consecutive Interest Determination
Date, the Trustee shall select an alternative comparable index
(over which the Trustee has no control), used for determining
one-month Eurodollar lending rates that is calculated and published
(or otherwise made available) by an independent party.
“Operative Documents”: This
Agreement, the Mortgage Loan Purchase Agreement, the Reconstitution
Agreement, the Assignment and Assumption Agreement and any other
documents related hereto or thereto.
“Opinion of Counsel”: A
written opinion of counsel, who may, without limitation, be
salaried counsel for the Depositor or the Servicer and which shall
be acceptable to the Trustee (which acceptance shall not be
unreasonably withheld), except that any opinion of counsel relating
to (a) the qualification of any REMIC created hereunder or (b)
compliance with the REMIC Provisions must be an opinion of
Independent counsel.
“Optional Termination Date”:
The first Distribution Date that the Servicer shall be permitted to
purchase the Mortgage Loans and REO Properties pursuant to Section
9.01(b).
“Original Certificate Principal
Balance”: With respect to any Class of Certificates, other
than the Class R and Class X Certificates, the Certificate
Principal Balance thereof on the Closing Date and as specified in
Section 1.03 hereof.
“Originator”: WMC.
“Outsourcer”: As defined in
Section 3.02(c) herein.
“Overcollateralization
Amount”: As of any Distribution Date, the excess, if any, of
(a) the aggregate Stated Principal Balances of the Mortgage
Loans and REO Properties as of the last day of the related Due
Period for such Distribution Date over (b) the sum of the aggregate
Certificate Principal Balances of the LIBOR and Class P
Certificates as of such Distribution Date (after taking into
account the payment of the amounts described in clauses (b)(i)
through (iv) of the definition of Principal Distribution Amount on
such Distribution Date).
“Overcollateralization Deficiency
Amount”: With respect to any Distribution Date, the excess,
if any, of (a) the Overcollateralization Target Amount applicable
to such Distribution Date over (b) the Overcollateralization Amount
applicable to such Distribution Date (assuming that 100% of the
Principal Remittance Amount is applied as a payment of principal on
such Distribution Date and giving effect to any distribution made
pursuant to Section 4.01(a)(3)(i) on such Distribution
Date).
“Overcollateralization Increase
Amount”: With respect to any Distribution Date, the lesser of
(a) the Overcollateralization Deficiency Amount for such
Distribution Date and (b) Net Monthly Excess Cash Flow available
for distribution on that Distribution Date pursuant to Section
4.01(a)(3)(i).
“Overcollateralization Release
Amount”: With respect to any Distribution Date, an amount
equal to the lesser of (a) the Excess Overcollateralization Amount
and (b) the Basic Principal Distribution Amount for such
Distribution Date.
“Overcollateralization Target
Amount”: With respect to any Distribution Date (1) prior
to the Stepdown Date, 1.50% of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date, (2) on
or after the Stepdown Date provided a Trigger Event is not in
effect, the greater of (x) 3.00% of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the
related Due Period and (y) $5,388,334, and (3) on or
after the Stepdown Date if a Trigger Event is in effect, the
Overcollateralization Target Amount for the immediately preceding
Distribution Date.
“Ownership Interest”: As to
any Certificate, any ownership or security interest in such
Certificate, including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or
indirect, legal or beneficial, as owner or as pledgee.
“Pass-Through Rate”: For any
Distribution Date with respect to (i) the Class A1 Certificates (a)
so long as a Swap Default has not occurred and is not continuing,
will equal the related Formula Rate for such Distribution Date and
(b) if a Swap Default has occurred and is continuing, will equal
the lesser of (a) the related Formula Rate and (b) the Subgroup 1
Net WAC Rate for such Distribution Date, and (ii) the Class A1A,
Class A2, Class A2A and any Class of Mezzanine Certificates will
equal the lesser of (a) the related Formula Rate and (b) the
related Net WAC Rate for such Distribution Date. For any
Distribution Date and the Class X Certificates, the rate set
forth for the Class X Certificates in footnote (2) to
“Master REMIC” under section 1.03 herein.
“Percentage Interest”: As to
any Certificate, either the percentage set forth on the face
thereof or the percentage obtained by dividing the initial
Certificate Principal Balance or initial Notional Amount
represented by such Certificate by the aggregate initial
Certificate Principal Balance or aggregate initial Notional Amount
of all of the Certificates of such Class.
“Periodic Rate Cap”: With
respect to each Adjustable Rate Mortgage Loan and any Adjustment
Date therefor, the fixed percentage set forth in the related
Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or decrease (without
regard to the Maximum Mortgage Rate or the Minimum Mortgage Rate)
on such Adjustment Date from the Mortgage Rate in effect
immediately prior to such Adjustment Date.
“Permitted Investments”: Any
one or more of the following obligations or securities acquired at
a purchase price of not greater than par, regardless of whether
issued by the Depositor, the Servicer, the Trustee or any of their
respective Affiliates:
(a)
direct obligations of, or obligations
fully guaranteed as to timely payment of principal and interest by,
the United States or any agency or instrumentality thereof,
provided such obligations are backed by the full faith and credit
of the United States;
(b)
demand and time deposits in, certificates
of deposit of, or bankers’ acceptances (which shall each have
an original maturity of not more than 90 days and, in the case of
bankers’ acceptances, shall in no event have an original
maturity of more than 365 days or a remaining maturity of more than
30 days) denominated in United States dollars that are rated in the
highest ratings categories by each Rating Agency and issued by any
Depository Institution;
(c)
repurchase obligations with respect to
any security described in clause (a) above entered into with a
Depository Institution (acting as principal);
(d)
securities bearing interest or sold at a
discount that are issued by any corporation incorporated under the
laws of the United States of America or any state thereof and that
are rated by each Rating Agency that rates such securities in its
highest long-term unsecured rating category at the time of such
investment or contractual commitment providing for such
investment;
(e)
commercial paper (including both
non-interest-bearing discount obligations and interest-bearing
obligations payable on demand or on a specified date not more than
30 days after the date of acquisition thereof) that is rated by
each Rating Agency that rates such securities in its highest
short-term unsecured debt rating available at the time of such
investment;
(f)
units of money market funds, including
money market funds managed or advised by the Trustee or an
Affiliate thereof, that have been rated “AAA” by Fitch
(if rated by Fitch), “Aaa” by Moody’s (if rated
by Moody’s) and “AAA” by S&P (if rated by
S&P); and
(g)
if previously confirmed in writing to the
Trustee, any other demand, money market or time deposit, or any
other obligation, security or investment, as may be acceptable to
the Rating Agencies as a permitted investment of funds backing
securities having ratings equivalent to its highest initial rating
of the Class A Certificates; provided, however , that
any Permitted Investment pursuant to this clause (g) which solely
contains a short-term rating shall be a Permitted Investment rated
in the highest category for such short-term rating;
provided, however
, that no instrument described hereunder
shall evidence either the right to receive (a) only interest with
respect to the obligations underlying such instrument or (b) 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 par
greater than 120% of the yield to maturity at par of the underlying
obligations.
“Permitted Transferee”: Any
Transferee of a Residual Certificate other than a Disqualified
Organization or Non-United States Person.
“Person”: Any individual,
corporation, partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision
thereof.
“P&I Advance”: As to any
Mortgage Loan or REO Property, any advance made by the Servicer in
respect of any Distribution Date representing the aggregate of all
payments of principal and interest, net of the Servicing Fee, that
were due during the related Due Period on the related Mortgage
Loans and that were Delinquent on the related Determination Date,
plus certain amounts representing assumed payments not covered by
any current net income on the Mortgaged Properties acquired by
foreclosure or deed in lieu of foreclosure as determined pursuant
to Section 4.03. The Servicer will not be required to make
any Nonrecoverable P&I Advances as described in Section
4.03.
“Plan”: Any employee benefit
plan (as defined in Section 3(3) of ERISA) or other plan as defined
in Section 4975(e)(1) of the Code that is subject to Title I of
ERISA or Section 4975 of the Code, or any entity deemed to hold the
plan assets of the foregoing.
“Pool Principal Balance”: As
of any Distribution Date, the aggregate Stated Principal Balance of
the Mortgage Loans.
“Prepayment Assumption”: With
respect to the (i) Adjustable Rate Mortgage Loans, 100%
Adjustable-Rate PPC and (ii) Fixed Rate Mortgage Loans, 115%
Fixed-Rate PPC. The Prepayment Assumption is used solely for
determining the accrual of original issue discount on the
Certificates for federal income tax purposes.
“Prepayment Interest
Shortfall”: With respect to any Determination Date, for each
Mortgage Loan that was during the related Prepayment Period subject
to a Principal Prepayment in full (other than a Principal
Prepayment in full received on or prior to the Closing Date and
during that portion of the related Prepayment Period occurring
between the first day of the calendar month in which the such
Determination Date occurs and the last day of such Prepayment
Period) that was applied by the Servicer to reduce the outstanding
principal balance of such Mortgage Loan on a date preceding the Due
Date in the succeeding Prepayment Period, an amount equal to the
product of (a) the Net Mortgage Rate for such Mortgage Loan, (b)
the amount of the Principal Prepayment for such Mortgage Loan, (c)
1/360 and (d) the number of days commencing on the date on which
the prepayment is applied and ending on the last day of the
calendar month preceding the month of such Determination Date.
The obligations of the Servicer in respect of any Prepayment
Interest Shortfall are set forth in Section 3.24.
“Prepayment Period”: With
respect to any Distribution Date, is with respect to Principal
Prepayments in full or in part, the period beginning on the
sixteenth day of the calendar month preceding the month of such
Distribution Date and ending on the fifteenth day of the month of
such Distribution Date, except with respect to the first
Distribution Date, the Prepayment Period for all prepayments will
commence on May 21, 2005.
“Prepayment Premium”: With
respect to any Mortgage Loan and Prepayment Period, any prepayment
premium, penalty or charge collected by the Servicer from a
Mortgagor in connection with any voluntary Principal Prepayment and
held from time to time as a part of the Trust Fund. The
Servicer shall calculate, in good faith using Accepted Servicing
Practices, the amount of any Prepayment Premium solely pursuant to
the terms of the related Mortgage Note.
“Prepayment Premium
Schedule”: As of the Cut-off Date, a list attached hereto as
Schedule 2 (including the Prepayment Premium Summary attached
thereto) in an electronic format, setting forth the following
information with respect to each Prepayment Premium:
(i)
the Mortgage Loan identifying
number;
(ii)
a code indicating the type of Prepayment
Premium;
(iii)
the state of origination of the related
Mortgage Loan;
(iv)
the date on which the first monthly
payment was due on the related Mortgage Loan;
(v)
the term of the related Prepayment
Premium;
(vi)
the principal balance of the related
Mortgage Loan as of the Cut-off Date; and
(vii)
such other information as is reasonably
requested by the Trustee.
Upon notice to the Trustee, the Servicer
shall amend the Prepayment Premium Schedule (i) if the Servicer has
waived a Prepayment Premium or (ii) upon the substitution of any
Mortgage Loan. The Servicer shall furnish a copy of the
amended Prepayment Premium Schedule to the Trustee. With
respect to a waived Prepayment Premium, the Servicer may deliver to
the Trustee an Officer’s Certificate as described in Section
3.07(b) in lieu of an amended Prepayment Premium
Schedule.
“Prime Rate”: The rate of
interest equal to the prime rate as reported in The Wall Street
Journal .
“Principal Distribution
Amount”: With respect to any Distribution Date, the lesser
of:
(a)
the excess of the Available Distribution
Amount over the amount payable on the Certificates from the
Available Distribution Account pursuant to Section 4.01(a)(1)(i)
– (xvii); and
(b)
the sum of
(i)
the principal portion of each Monthly
Payment on the Mortgage Loans due during the related Due Period,
whether or not received on or prior to the related Determination
Date;
(ii)
the Stated Principal Balance of any
Mortgage Loan that was purchased during the calendar month
preceding the month of such Distribution Date pursuant to or as
contemplated by Section 2.03, Section 3.16(c) or Section 9.01 and
the amount of any shortfall deposited in the Collection Account in
connection with the substitution of a Deleted Mortgage Loan
pursuant to Section 2.03 during the calendar month preceding the
month of such Distribution Date;
(iii)
the principal portion of all other
unscheduled collections in respect of Insurance Proceeds,
Liquidation Proceeds and REO Principal Amortization received during
the calendar month preceding the month of such Distribution Date,
net of any portion thereof that represents a recovery of principal
for which an advance was made by the Servicer pursuant to Section
4.03 in respect of a preceding Distribution Date and any Recoveries
received during the calendar month preceding the month of such
Distribution Date;
(iv)
the principal portion of all unscheduled
collections in respect of Principal Prepayments received during the
related Prepayment Period; and
(v)
the amount of any Overcollateralization
Increase Amount for such Distribution Date to the extent covered by
Net Monthly Excess Cashflow for such Distribution Date;
minus:
(c)
the amount of any Overcollateralization
Release Amount for such Distribution Date.
“Principal Prepayment”: Any
payment of principal made by the Mortgagor on a Mortgage Loan which
is received in advance of its scheduled Due Date and which is not
accompanied by an amount of interest (without regard to any
Prepayment Premium that may have been collected by the Servicer in
connection with such payment of principal) representing the full
amount of scheduled interest due on any Due Date in any month or
months subsequent to the month of prepayment.
“Principal Remittance
Amount”: With respect to any Distribution Date, that portion
of the Available Distribution Amount equal to the sum of
(i) all scheduled payments of principal collected or advanced
on the Mortgage Loans by the Servicer that were due during the
related Due Period, (ii) the principal portion of all
Principal Prepayments of the Mortgage Loans, if any, applied by the
Servicer during the related Prepayment Period, (iii) the
principal portion of all related Net Liquidation Proceeds,
Insurance Proceeds and Recoveries received during the calendar
month preceding the month of such Distribution Date, (iv) that
portion of the Purchase Price representing principal of any
purchased or repurchased Mortgage Loan, deposited to the Collection
Account during the calendar month preceding the month of such
Distribution Date, (v) the principal portion of the amount of
any shortfall deposited in the Collection Account in connection
with the substitution of a Deleted Mortgage Loan pursuant to
Section 2.03 during the calendar month preceding the month of such
Distribution Date and (vi) on the Distribution Date on which
the Trust is to be terminated in accordance with this Agreement,
that portion of the Termination Price in respect of
principal.
“PTCE”: A Prohibited
Transaction Class Exemption.
“Purchase Price”: With
respect to any Mortgage Loan or REO Property to be purchased
pursuant to or as contemplated by Section 2.03, Section 3.16(c) or
Section 9.01, and as calculated and confirmed in writing by the
Servicer to the Trustee, an amount equal to the sum of
(i) 100% of the Stated Principal Balance thereof as of the
date of purchase (or such other price as provided in Section 9.01),
(ii) in the case of (x) a Mortgage Loan, accrued interest
on such Stated Principal Balance at the applicable Mortgage Rate in
effect from time to time from the Due Date as to which interest was
last covered by a payment by the Mortgagor or an advance by the
Servicer through the end of the calendar month in which the
purchase is to be effected and (y) an REO Property, the sum of
(1) accrued interest on such Stated Principal Balance at the
applicable Mortgage Rate in effect from time to time from the Due
Date as to which interest was last covered by a payment by the
Mortgagor or an advance by the Servicer through the end of the
calendar month immediately preceding the calendar month in which
such REO Property was acquired, plus (2) REO Imputed Interest
for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending
with the calendar month in which such purchase is to be effected,
net of the total of all net rental income, Insurance Proceeds,
Liquidation Proceeds and P&I Advances that as of the date of
purchase had been distributed as or to cover REO Imputed Interest
pursuant to Section 4.01, (iii) any unreimbursed Servicing
Advances and P&I Advances and any unpaid Servicing Fees
allocable to such Mortgage Loan or REO Property and any P&I
Advances previously reimbursed to the Servicer pursuant to Section
3.11(a)(vi) (except in the case of a purchase by the Servicer),
(iv) any amounts previously withdrawn from the Collection
Account in respect of such Mortgage Loan or REO Property pursuant
to Section 3.11(a)(ix) and Section 3.16(b), (v) in the case of
a Mortgage Loan required to be purchased pursuant to Section 2.03,
expenses reasonably incurred or to be incurred by the Servicer or
the Trustee in respect of the breach or defect giving rise to the
purchase obligation and (vi) in the case of a Mortgage Loan
required to be purchased pursuant to Section 2.03, any costs,
indemnities and damages actually incurred and paid by or on behalf
of the Trust in connection with any violation by such Mortgage Loan
of (i) the representation and warranties set forth in Section
2.05(b)(vii) or (viii) of this Agreement or (ii) the
representations and warranties made in Schedule B to the
Reconstitution Agreement in connection with “high-cost”
home loans or a mortgage loan’s compliance with applicable
law, including any predatory or abusive lending laws.
“Qualified Substitute Mortgage
Loan”: A Mortgage Loan substituted for a Deleted Mortgage
Loan pursuant to the terms of this Agreement which must, on the
date of such substitution, (i) have an outstanding principal
balance, after application of all scheduled payments of principal
and interest due during or prior to the month of substitution, not
in excess of and not more than 5% less than the Stated Principal
Balance of the Deleted Mortgage Loan as of the Due Date in the
calendar month during which the substitution occurs, (ii) have
a Mortgage Rate not less than (and not more than one percentage
point in excess of) the Mortgage Rate of the Deleted Mortgage Loan,
(iii) with respect to each Adjustable Rate Mortgage Loan have
a Maximum Mortgage Rate not less than the Maximum Mortgage Rate on
the Deleted Mortgage Loan, (iv) with respect to each
Adjustable Rate Mortgage Loan have a Minimum Mortgage Rate not less
than the Minimum Mortgage Rate of the Deleted Mortgage Loan,
(v) with respect to each Adjustable Rate Mortgage Loan have a
Gross Margin equal to or greater than the Gross Margin of the
Deleted Mortgage Loan, (vi) with respect to each Adjustable
Rate Mortgage Loan, adjust in accordance with the Index and have a
next Adjustment Date not more than two months later than the next
Adjustment Date on the Deleted Mortgage Loan, and have the same
intervals between Adjustment Dates as the Deleted Mortgage Loan,
(vii) have a remaining term to maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage
Loan, (viii) have the same Due Date as the Due Date on the
Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio as of
the date of substitution equal to or lower than the Loan-to-Value
Ratio of the Deleted Mortgage Loan as of such date, (x) have a
risk grading certified by the Seller at least equal to the risk
grading assigned on the Deleted Mortgage Loan, (xi) have been
underwritten or reunderwritten by the Originator in accordance with
the same underwriting criteria and guidelines as the Mortgage Loans
being replaced, (xii) be of the same or better credit quality
as the Mortgage Loan being replaced, (xiii) have a lien
priority equal to or superior to that of the Deleted Mortgage Loan,
(xiv) be secured by the same property type as the Deleted
Mortgage Loan and (xv) conform to each representation and
warranty in the Mortgage Loan Purchase Agreement and Reconstitution
Agreement. In the event that one or more Mortgage Loans are
substituted for one or more Deleted Mortgage Loans, the amounts
described in clause (i) hereof shall be determined on the basis of
aggregate principal balances, the Mortgage Rates described in
clause (ii) hereof shall be determined on the basis of weighted
average Mortgage Rates, the terms described in clause (vii) hereof
shall be determined on the basis of weighted average remaining term
to maturity, the Loan-to-Value Ratios described in clause (ix)
hereof shall be satisfied as to each such Mortgage Loan, the risk
gradings described in clause (x) hereof shall be satisfied as to
each such Mortgage Loan and, except to the extent otherwise
provided in this sentence, the representations and warranties
described in clause (xv) hereof must be satisfied as to each
Qualified Substitute Mortgage Loan or in the aggregate, as the case
may be.
"Qualifying SPE": As set forth in
SFAS 140.
“Rating Agency or Rating
Agencies”: S&P, Moody’s, DBRS and Fitch or their
successors. If such agencies or their successors are no
longer in existence, “Rating Agencies” shall be such
nationally recognized statistical rating agencies, or other
comparable Persons, designated by the Depositor, notice of which
designation shall be given to the Trustee and the
Servicer.
“Realized Loss”: With respect
to each Mortgage Loan as to which a Final Recovery Determination
has been made, an amount (not less than zero) equal to (i) the
unpaid principal balance of such Mortgage Loan as of the
commencement of the calendar month in which the Final Recovery
Determination was made, plus (ii) accrued interest from the
Due Date as to which interest was last paid by the Mortgagor
through the end of the calendar month in which such Final Recovery
Determination was made, calculated in the case of each calendar
month during such period (A) at an annual rate equal to the
annual rate at which interest was then accruing on such Mortgage
Loan and (B) on a principal amount equal to the Stated
Principal Balance of such Mortgage Loan as of the close of business
on the Distribution Date during such calendar month, plus
(iii) any amounts previously withdrawn from the Collection
Account in respect of such Mortgage Loan pursuant to Section
3.11(a)(ix) and Section 3.16(b), minus (iv) the proceeds, if
any, received in respect of such Mortgage Loan during the calendar
month in which such Final Recovery Determination was made, net of
amounts that are payable therefrom to the Servicer with respect to
such Mortgage Loan pursuant to Section 3.11(a)(iii).
With respect to any REO Property as to
which a Final Recovery Determination has been made, an amount (not
less than zero) equal to (i) the unpaid principal balance of
the related Mortgage Loan as of the date of acquisition of such REO
Property on behalf of the Trust Fund, plus (ii) accrued
interest from the Due Date as to which interest was last paid by
the Mortgagor in respect of the related Mortgage Loan through the
end of the calendar month immediately preceding the calendar month
in which such REO Property was acquired, calculated in the case of
each calendar month during such period (A) at an annual rate
equal to the annual rate at which interest was then accruing on the
related Mortgage Loan and (B) on a principal amount equal to
the Stated Principal Balance of the related Mortgage Loan as of the
close of business on the Distribution Date during such calendar
month, plus (iii) REO Imputed Interest for such REO Property
for each calendar month commencing with the calendar month in which
such REO Property was acquired and ending with the calendar month
in which such Final Recovery Determination was made, plus
(iv) any amounts previously withdrawn from the Collection
Account in respect of the related Mortgage Loan pursuant to Section
3.11(a)(ix) and Section 3.16(b), minus (v) the aggregate of
all P&I Advances made by the Servicer in respect of such REO
Property or the related Mortgage Loan for which the Servicer has
been or, in connection with such Final Recovery Determination, will
be reimbursed pursuant to Section 3.23 out of rental income,
Insurance Proceeds and Liquidation Proceeds received in respect of
such REO Property, minus (vi) the total of all net rental
income, Insurance Proceeds and Liquidation Proceeds received in
respect of such REO Property that has been, or in connection with
such Final Recovery Determination, will be transferred to the
Distribution Account pursuant to Section 3.23.
With respect to each Mortgage Loan that
has become the subject of a Deficient Valuation, the difference
between the principal balance of such Mortgage Loan outstanding
immediately prior to such Deficient Valuation and the principal
balance of such Mortgage Loan as reduced by the Deficient
Valuation.
With respect to each Mortgage Loan that
has become the subject of a Debt Service Reduction, the portion, if
any, of the reduction in each affected Monthly Payment attributable
to a reduction in the Mortgage Rate imposed by a court of competent
jurisdiction. Each such Realized Loss shall be deemed to have
been incurred on the Due Date for each affected Monthly
Payment.
“Reconstitution Agreement”:
That certain reconstitution agreement dated as of the Closing Date
by and among the Seller, the Depositor and WMC related to the
Mortgage Loan Purchase Agreement.
“Record Date”: With respect
to any Distribution Date and any Definitive Certificates, the close
of business on the last Business Day of the month immediately
preceding the month in which such applicable Distribution Date
occurs. With respect to any Distribution Date and the LIBOR
Certificates (other than any Definitive Certificates), the Business
Day prior to such Distribution Date.
“Recovery”: With respect to
any Liquidated Mortgage Loan, an amount received in respect of
principal on such Mortgage Loan which has previously been allocated
as a Realized Loss to a Class or Classes of Certificates net of
reimbursable expenses.
“Reference Banks”: Deutsche
Bank, Barclays Bank PLC, The Tokyo Mitsubishi Bank and National
Westminster Bank PLC and their successors in interest; provided,
however , that if any of the foregoing banks are not able to
serve as a Reference Bank, then any leading banks selected by the
Trustee which are engaged in transactions in Eurodollar deposits in
the international Eurocurrency market (i) with an established
place of business in London, (ii) not controlling, under the
control of or under common control with the Depositor or any
Affiliate thereof and (iii) which have been designated as such
by the Trustee.
“Refinanced Mortgage Loan”: A
Mortgage Loan the proceeds of which were not used to purchase the
related Mortgaged Property.
“Regular Certificate”: As
specified in the Preliminary Statement.
“Regular Interest”: A
“regular interest” in a REMIC within the meaning of
Section 860G(a)(1) of the Code.
“Relief Act”: The
Servicemembers Civil Relief Act or any similar state or local
law.
“Relief Act Interest
Shortfall”: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest collectible
on such Mortgage Loan for the most recently ended calendar month as
a result of the application of the Relief Act.
“REMIC”: A “real estate
mortgage investment conduit” within the meaning of Section
860D of the Code.
“REMIC I”: The segregated
pool of assets subject hereto, constituting the primary trust
created hereby and to be administered hereunder, with respect to
which a REMIC election is to be made, consisting of (i) such
Mortgage Loans as from time to time are subject to this Agreement,
together with the Mortgage Files relating thereto, and together
with all collections thereon and proceeds thereof, (ii) any
REO Property, together with all collections thereon and proceeds
thereof, (iii) the Trustee’s rights with respect to the
Mortgage Loans under all insurance policies required to be
maintained pursuant to this Agreement and any proceeds thereof,
(iv) the Depositor’s rights under the Mortgage Loan
Purchase Agreement and the Reconstitution Agreement (including any
security interest created thereby) and (v) the Collection
Account (other than any amounts representing any Servicer
Prepayment Premium Payment Amount), the Distribution Account (other
than any amounts representing any Servicer Prepayment Premium
Payment Amount) and any REO Account and such assets that are
deposited therein from time to time and any investments thereof,
together with any and all income, proceeds and payments with
respect thereto. Notwithstanding the foregoing, however,
REMIC I specifically excludes all payments and other collections of
principal and interest due on the Mortgage Loans on or before the
Cut-off Date and all Prepayment Premiums payable in connection with
Principal Prepayments made on or before the Cut-off Date, the Net
WAC Reserve Fund, the Supplemental Interest Account, the Swap
Agreement and the Yield Maintenance Agreements.
“REMIC II”: The segregated
pool of assets consisting of all of the REMIC I Regular Interests
conveyed in trust to the Trustee for the benefit of REMIC III, as
holder of the REMIC II Regular Interests, and the R-II interest
pursuant to Section 2.07, and all amounts deposited therein, with
respect to which a separate REMIC election is to be
made.
“REMIC II Regular Interest”:
Any of the separate non-certificated beneficial ownership interests
in REMIC II issued hereunder and designated as a “regular
interest” in REMIC II.
“REMIC III”: The segregated
pool of assets consisting of all of the REMIC II Regular Interests
conveyed in trust to the Trustee for the benefit of REMIC IV, as
holder of the REMIC III Regular Interests, and the R-III interest
pursuant to Section 2.08, and all amounts deposited therein, with
respect to which a separate REMIC election is to be
made.
“REMIC III Regular Interest”:
Any of the separate non-certificated beneficial ownership interests
in REMIC III issued hereunder and designated as a “regular
interest” in REMIC III.
“REMIC IV”: The segregated
pool of assets consisting of all of the REMIC III Regular Interests
conveyed in trust to the Trustee for the benefit of REMIC V, as
holder of the REMIC IV Regular Interests, and the R-IV interest
pursuant to Section 2.07, and all amounts deposited therein, with
respect to which a separate REMIC election is to be
made.
“REMIC IV Accretion Directed
Class”: As set forth in the Section 1.03 under the heading
entitled “REMIC III.”
“REMIC IV Regular Interest”:
Any of the separate non-certificated beneficial ownership interests
in REMIC IV issued hereunder and designated as a “regular
interest” in REMIC IV.
“REMIC V”: The segregated
pool of assets consisting of all of the REMIC IV Regular Interests
conveyed in trust to the Trustee for the benefit of the
Certificateholders pursuant to Section 2.10 and all amounts
deposited therein, with respect to which a separate REMIC election
is to be made.
“REMIC Provisions”:
Provisions of the federal income tax law relating to real estate
mortgage investment conduits, which appear at Section 860A through
860G of the Code, and related provisions, and proposed, temporary
and final regulations and published rulings, notices and
announcements promulgated thereunder, as the foregoing may be in
effect from time to time.
“Remittance Report”: A report
in form mutually agreed to between the Trustee and the Servicer on
a magnetic disk or tape or in electronic format prepared by the
Servicer pursuant to Section 4.03 with such additions, deletions
and modifications as agreed to by the Trustee and the
Servicer.
“Rents from Real Property”:
With respect to any REO Property, gross income of the character
described in Section 856(d) of the Code as being included in the
term “rents from real property.”
“REO Account”: Each of the
accounts maintained, or caused to be maintained, by the Servicer in
respect of an REO Property pursuant to Section 3.23.
“REO Disposition”: The sale
or other disposition of an REO Property on behalf of the Trust
Fund.
“REO Imputed Interest”: As to
any REO Property, for any calendar month during which such REO
Property was at any time part of the Trust Fund, one month’s
interest at the applicable Mortgage Rate on the Stated Principal
Balance of such REO Property (or, in the case of the first such
calendar month, of the related Mortgage Loan, if appropriate) as of
the close of business on the Distribution Date in such calendar
month.
“REO Principal Amortization”:
With respect to any REO Property, for any calendar month, the
excess, if any, of (a) the aggregate of all amounts received
in respect of such REO Property during such calendar month, whether
in the form of rental income, sale proceeds (including, without
limitation, that portion of the Termination Price paid in
connection with a purchase of all of the Mortgage Loans and REO
Properties pursuant to Section 9.01 that is allocable to such REO
Property) or otherwise, net of any portion of such amounts
(i) payable pursuant to Section 3.23(c) in respect of the
proper operation, management and maintenance of such REO Property
or (ii) payable or reimbursable to the Servicer pursuant to
Section 3.23(d) for unpaid Servicing Fees in respect of the related
Mortgage Loan and unreimbursed Servicing Advances and P&I
Advances in respect of such REO Property or the related Mortgage
Loan, over (b) the REO Imputed Interest in respect of such REO
Property for such calendar month.
“REO Property”: A Mortgaged
Property acquired by the Servicer on behalf of the Trust Fund
through foreclosure or deed-in-lieu of foreclosure, as described in
Section 3.23.
“Request for Release”: A
release signed by a Servicing Officer, or in a mutually agreeable
electronic format which will, in lieu of a signature on its face,
originate from a Servicing Officer, in the form of Exhibit E-1
attached hereto.
“Required Net WAC Reserve Fund
Deposit”: With respect to any Distribution Date the excess,
if any, of (i) $1,000 over (ii) the amount of funds on deposit in
the Net WAC Reserve Fund prior to deposits thereto on such
Distribution Date.
“Reserve Interest Rate”: With
respect to any Interest Determination Date, the rate per annum that
the Trustee determines to be either (i) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of
1/16%) of the one-month U.S. dollar lending rates which New York
City banks selected by the Trustee are quoting on the relevant
Interest Determination Date to the principal London offices of
leading banks in the London interbank market or (ii) in the
event that the Trustee can determine no such arithmetic mean, the
lowest one-month U.S. dollar lending rate which New York City banks
selected by the Trustee are quoting on such Interest Determination
Date to leading European banks.
“Residential Dwelling”: Any
one of the following: (i) an attached or detached one-family
dwelling, (ii) an attached or detached two- to four-family
dwelling, (iii) an attached or detached one-family dwelling
unit in a condominium project, (iv) an attached or detached
one-family dwelling in a planned unit development, none of which is
a cooperative or mobile home (as defined in 42 United States Code,
Section 5402(6)), or (v) a manufactured home.
“Residual Certificates”: As
specified in the Preliminary Statement.
“Residual Interest”: The sole
class of “residual interests” in a REMIC within the
meaning of Section 860G(a)(2) of the Code.
“Responsible Officer”: When
used with respect to the Trustee the President, any vice president,
any assistant vice president, the Secretary, any assistant
secretary, the Treasurer, any assistant treasurer, 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, with respect to a particular
matter, to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular
subject.
“S&P”: Standard and
Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or its successor in interest.
“Seller”: DLJ Mortgage
Capital, Inc., or its successor in interest, in its capacity as
seller.
“Sequential Trigger Event”: A
Sequential Trigger Event has occurred with respect to any
Distribution Date (i) from the July 2005 Distribution Date
through the June 2008 Distribution Date if cumulative Realized
Losses as a percentage of the aggregate Stated Principal Balance of
the Mortgage Loans as of the Cut-off Date is greater than the
percentage set forth in the following table:
|
Range of Distribution Dates
|
Percentage
|
|
June 2005 through June 2007
|
1.25%
|
|
July 2007 through June 2008
|
1.25% for the first month, plus an additional 1/12th of the
positive difference between 3.00% and 1.25% for each month
thereafter.
|
And (ii) on and after the Distribution
Date in July 2008 if a Trigger Event is in effect.
“Servicer”: Countrywide Home
Loans Servicing LP, or any successor servicer appointed as herein
provided, in its capacity as servicer hereunder.
“Servicer Event of Default”:
One or more of the events described in Section 7.01(a)
herein.
“Servicer Certification”: As
defined in Section 4.06(d) herein, a form of which is attached
hereto as Exhibit J.
“Servicer Prepayment Premium
Payment Amount”: The amounts payable by the Servicer in
respect of any waived Prepayment Premiums pursuant to Section
2.03(b)(ii).
“Servicer Remittance Date”:
With respect to any Distribution Date, 3:00 p.m. New York time on
the 21st day of each month or, if such 21st day is not a Business
Day, the Business Day immediately following such date.
“Servicer Termination Test”:
With respect to any Distribution Date, the Servicer will fail the
Servicer Termination Test if there is any withdrawal or downgrade
of two or more levels (i.e., from “Above Average” to
“Below Average” or the equivalent) of the servicer
rating, as of the Closing Date, of the Servicer by any Rating
Agency which results in a downgrade, qualification or withdrawal of
the rating assigned to any Class of Certificates by any Rating
Agency.
“Servicing Account”: The
account or accounts created and maintained pursuant to Section
3.09.
“Servicing Advances”: The
reasonable “out-of-pocket” costs and expenses incurred
prior to, on or after the Cut-off Date by the Servicer in the
performance of its servicing obligations (including the reasonable
fees of counsel) in connection with a default, delinquency or other
unanticipated event, including, but not limited to, the cost of (i)
the inspection, preservation, restoration and protection of a
Mortgaged Property, (ii) any enforcement or judicial proceedings,
including foreclosures, in respect of a particular Mortgage Loan,
(iii) the reasonable fees in connection with the management and
liquidation of any REO Property (including default management and
similar services, appraisal services and real estate broker
services), (iv) the performance of its obligations under Section
3.01, Section 3.09, Section 3.13, Section 3.14, Section 3.16 and
Section 3.23, (v) locating documents missing from the Mortgage File
or Servicing File and (vi) obtaining any broker price opinion.
Servicing Advances also include any reasonable
“out-of-pocket” cost and expenses (including legal
fees) incurred by the Servicer in connection with executing and
recording instruments of satisfaction, deeds of reconveyance or
Assignments of Mortgage to the extent not recovered from the
Mortgagor or otherwise payable under this Agreement. The
Servicer shall not be required to make any Nonrecoverable Servicing
Advances.
“Servicing Fee”: With respect
to each Mortgage Loan and for any calendar month, an amount equal
to one month’s interest at the Servicing Fee Rate on the same
principal amount on which interest on such Mortgage Loan accrues
for such calendar month, subject to reduction as provided in
Section 3.24. A portion of such Servicing Fee may be retained
by any Sub-Servicer as its servicing compensation.
“Servicing Fee Rate”: 0.50%
per annum.
“Servicing File”: With
respect to each Mortgage Loan, the Servicing File for such Mortgage
Loan shall consist of copies of each item required to be in the
Mortgage File (for the avoidance of doubt, the original of each
such document shall be maintained in the Mortgage File for such
Mortgage Loan unless otherwise permitted to be released in
accordance with this Agreement) and the following documents listed
below.
(i)
Residential loan application.
(ii)
Mortgage Loan closing
statement.
(iii)
Verification of employment and income, if
applicable.
(iv)
Verification of acceptable evidence of
source and amount of downpayment.
(v)
Credit report on Mortgagor.
(vi)
Residential appraisal report.
(vii)
Photograph of the Mortgaged
Property.
(viii)
Survey of the Mortgaged
Property.
(ix)
Copy of each instrument necessary to
complete identification of any exception set forth in the exception
schedule in the title policy, i.e., map or plat, restrictions,
easements, sewer agreements, home association declarations,
etc.
(x)
All required disclosure
statements.
(xi)
If required in an appraisal, termite
report, structural engineer’s report, water potability and
septic certification.
(xii)
Sales Contract, if applicable.
“Servicing Officer”: Any
employee of the Servicer involved in, or responsible for, the
administration and servicing of the Mortgage Loans, whose name and
specimen signature appear on a list of Servicing Officers furnished
by the Servicer to the Trustee and the Depositor on the Closing
Date, as such list may from time to time be amended.
"SFAS 140": Statement of Accounting
Standards No. 140 of the Financial Accounting Standards Board, as
in effect as the date hereof.
“Single Certificate”: With
respect to any Class of Certificates (other than the Class P
Certificates and the Residual Certificates), a hypothetical
Certificate of such Class evidencing a Percentage Interest for such
Class corresponding to an initial Certificate Principal Balance or
Notional Amount of $1,000. With respect to the Class P
Certificates and the Residual Certificates, a hypothetical
Certificate of such Class evidencing a 20% Percentage Interest in
such Class.
“Special Servicer”: As
defined in Section 3.16(e) herein.
“Startup Day”: With respect
to each REMIC formed hereby, the day designated as such pursuant to
Section 10.01(b) hereof.
“Stated Principal Balance”:
With respect to any Mortgage Loan: (a) as of any date of
determination up to but not including the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to
such Mortgage Loan would be distributed, the principal balance of
such Mortgage Loan as of the Cut-off Date, as shown in the Mortgage
Loan Schedule, minus the sum of (i) the principal portion of each
Monthly Payment due on a Due Date subsequent to the Cut-off Date,
to the extent received from the Mortgagor or advanced by the
Servicer and distributed pursuant to Section 4.01 on or before such
date of determination, (ii) all Principal Prepayments received
after the Cut-off Date, to the extent distributed pursuant to
Section 4.01 on or before such date of determination, (iii) all
Liquidation Proceeds and Insurance Proceeds applied by the Servicer
as recoveries of principal in accordance with the provisions of
Section 3.16, to the extent distributed pursuant to Section 4.01 on
or before such date of determination and (iv) any Realized Loss
incurred with respect thereto as a result of a Deficient Valuation
or Debt Service Reduction made during or prior to the Prepayment
Period for the most recent Distribution Date coinciding with or
preceding such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution
Date on which the proceeds, if any, of a Liquidation Event with
respect to such Mortgage Loan would be distributed, zero.
With respect to any REO Property: (a) as of any date of
determination up to but not including the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to
such REO Property would be distributed, an amount (not less than
zero) equal to the Stated Principal Balance of the related Mortgage
Loan as of the date on which such REO Property was acquired on
behalf of the Trust Fund, minus the sum of (i) if such REO Property
was acquired before the Distribution Date in any calendar month,
the principal portion of the Monthly Payment due on the Due Date in
the calendar month of acquisition, to the extent advanced by the
Servicer and distributed pursuant to Section 4.01 on or before such
date of determination, and (ii) the aggregate amount of REO
Principal Amortization in respect of such REO Property for all
previously ended calendar months, to the extent distributed
pursuant to Section 4.01 on or before such date of determination;
and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any,
of a Liquidation Event with respect to such REO Property would be
distributed, zero.
“Stepdown Date”: The earlier
to occur of (1) the Distribution Date on which the aggregate
Certificate Principal Balance of the Class A Certificates has
been reduced to zero and (2) the later to occur of
(x) the Distribution Date occurring in July 2008 and
(y) the first Distribution Date on which the Credit
Enhancement Percentage (calculated for this purpose after giving
effect to payments or other recoveries in respect of the Mortgage
Loans during the related Due Period but before giving effect to
distributions on the Certificates on such Distribution Date) is
greater than 43.30%.
“Strip Amount”: The
Subgroup 2 Strip Amount or the Subordinate Strip Amount, as
applicable.
“Subgroup”: Either
Subgroup 1 or Subgroup 2, as applicable.
“Subgroup 1”: Those
certain Mortgage Loans identified as belonging to Subgroup 1
on the Mortgage Loan Schedule.
“Subgroup 1
Certificates”: The Class A1 and Class A1A
Certificates.
“Subgroup 1 Interest
Remittance Amount”: With respect to any Distribution Date,
that portion of the Available Distribution Amount for such
Distribution Date attributable to interest received or advanced
with respect to the Subgroup 1 Mortgage Loans and to
Compensating Interest paid by the Servicer with respect to the
Subgroup 1 Mortgage Loans.
“Subgroup 1 Mortgage
Loans”: The Mortgage Loans relating to Subgroup 1.
Subgroup 1 Net WAC Rate”: With
respect to the Subgroup 1 Certificates and any Distribution
Date (and any corresponding REMIC interest created pursuant to
Section 1.03 hereof), a per annum rate (subject to adjustment based
on the actual number of days elapsed in the related Interest
Accrual Period) equal to the difference between (A) the weighted
average Mortgage Rates of the Subgroup 1 Mortgage Loans as of the
first day of the month preceding the month of such Distribution
Date, weighted on the basis of the related Stated Principal
Balances as of such date (subject to adjustment for prepayments
received and distributed in the month prior to that Distribution
Date) and (B) the sum of (1) the Servicing Fee Rate and (2) the LPA
Fee Rate, in each case for the Subgroup 1 Mortgage Loans for such
Distribution Date.
“Subgroup 1 Percentage”:
With respect to any Distribution Date, will equal the percentage
equivalent of a fraction, the numerator of which is the
Subgroup 1 Principal Remittance Amount for such Distribution
Date and the denominator of which is the Principal Remittance
Amount for such Distribution Date.
“Subgroup 1 Principal
Distribution Amount”: With respect to any Distribution Date,
the product of (i) the Subgroup 1 Percentage for such
Distribution Date and (ii) the Class A Principal Distribution
Amount for such Distribution Date.
“Subgroup 1 Principal
Remittance Amount”: With respect to any Distribution Date,
means, the portion of the Principal Remittance Amount for such
Distribution Date derived from the Subgroup 1 Mortgage
Loans.
“Subgroup 1 Yield Maintenance
Agreement”: The interest rate yield maintenance agreement
relating to the Class A1A Certificates consisting of a 1992 ISDA
Master Agreement (Multicurrency Border) and a Schedule dated as of
the Closing Date and a 1994 ISDA Credit Support Annex (Bilateral
Form New York Law) and the related Confirmation thereto, between
the Trustee on behalf of the Trust and the Cap Counterparty, as
such agreement may be amended and supplemented in accordance with
its terms and any replacement interest yield maintenance agreement
acceptable to the Depositor and the Trustee.
“Subgroup 2”: Those
certain Mortgage Loans identified as belonging to Subgroup 2
on the Mortgage Loan Schedule.
“Subgroup 2
Certificates”: The Class A2 and Class A2A
Certificates.
“Subgroup 2 Interest
Remittance Amount”: With respect to any Distribution Date,
that portion of the Available Distribution Amount for such
Distribution Date attributable to interest received or advanced
with respect to the Subgroup 2 Mortgage Loans and to
Compensating Interest paid by the Servicer with respect to the
Subgroup 2 Mortgage Loans.
“Subgroup 2 Mortgage
Loans”: The Mortgage Loans relating to
Subgroup 2.
“Subgroup 2 Net WAC
Rate”: With respect to the Subgroup 2 Certificates and
any Distribution Date and the related Interest Accrual Period (and
any corresponding REMIC interest created pursuant to Section 1.03
hereof), a per annum rate (subject to adjustment based on the
actual number of days elapsed in the related Interest Accrual
Period) equal to the difference between (A) the weighted
average Mortgage Rates of the Subgroup 2 Mortgage Loans as of
the first day of the month preceding the month of such Distribution
Date, weighted on the basis of the related Stated Principal
Balances as of such date (subject to adjustment for prepayments
received and distributed in the month prior to that Distribution
Date) and (B) the sum of (1) the Servicing Fee Rate for
the Subgroup 2 Mortgage Loans, (2) the LPA Fee Rate for the
Subgroup 2 Mortgage Loans and (3) the Subgroup 2 Strip
Amount for such Distribution Date, multiplied by a fraction, the
numerator of which is twelve and the denominator of which is the
aggregate outstanding Stated Principal Balance of the
Subgroup 2 Mortgage Loans as of the first day of the month
preceding the month of such Distribution Date (subject to
adjustment for prepayments received and distributed in the month
prior to that Distribution Date) (expressed as a
percentage).
“Subgroup 2 Percentage”:
With respect to any Distribution Date, will equal the percentage
equivalent of a fraction, the numerator of which is the
Subgroup 2 Principal Remittance Amount for such Distribution
Date and the denominator of which is the Principal Remittance
Amount for such Distribution Date.
“Subgroup 2 Principal
Distribution Amount”: With respect to any Distribution Date,
the product of (i) the Subgroup 2 Percentage for such
Distribution Date and (ii) the Class A Principal
Distribution Amount for such Distribution Date.
“Subgroup 2 Principal
Remittance Amount”: With respect to any Distribution Date,
means, the portion of the Principal Remittance Amount for such
Distribution Date derived from the Subgroup 2 Mortgage
Loans.
“Subgroup 2 Strip
Amount”: With respect to the Subgroup 2 Yield
Maintenance Agreement and any Distribution Date on or after the
Distribution Date in August 2005 to and including the Distribution
Date in January 2008, the product of (a) one-twelfth of
0.0180%, (b) the applicable Yield Maintenance Agreement
Notional Amount for that Distribution Date and the Subgroup 2
Yield Maintenance Agreement and (c) 100, and after the Distribution
Date in January 2008, zero.
“Subgroup 2 Yield Maintenance
Agreement”: The interest rate yield maintenance agreement
relating to the Subgroup 2 Certificates consisting of a 1992
ISDA Master Agreement (Multicurrency Border) and a Schedule dated
as of the Closing Date and a 1994 ISDA Credit Support Annex
(Bilateral Form New York Law) and the related Confirmation thereto,
between the Trustee on behalf of the Trust and the Cap
Counterparty, as such agreement may be amended and supplemented in
accordance with its terms and any replacement interest yield
maintenance agreement acceptable to the Depositor and the
Trustee.
“Subgroup Subordinate Amount”
With respect to any Subgroup and any Distribution Date is the
aggregate Stated Principal Balance of such Subgroup as of the first
day of the month preceding the month of such Distribution Date
(after giving effect to Monthly Payments of principal due on such
date and subject to adjustment for prepayments received and
distributed in the month prior to that Distribution Date) minus the
aggregate Certificate Principal Balance of the related Class or
Classes of Class A Certificates.
“Subordinate Certificates”:
As defined in the Preliminary Statement.
“Subordinate Net WAC Rate”:
With respect to the Mezzanine Certificates and any Distribution
Date (and any corresponding REMIC interest created pursuant to
Section 1.03 hereof), a per annum rate (subject to adjustment based
on the actual number of days elapsed in the related Interest
Accrual Period) equal to the difference between (A) the weighted
average of the Subgroup 1 Net WAC Rate and the Subgroup 2
Net WAC Rate, weighted in proportion to the related Subgroup
Subordinate Amount and (B) the sum of (i) the Subordinate
Strip Amount and (ii) the Swap Fee Amount for such
Distribution Date, multiplied by a fraction, the numerator of which
is twelve and the denominator of which is the aggregate of the
Subgroup Subordinate Amounts for such Distribution Date (expressed
as a percentage).
“Subordinate Strip Amount”:
With respect to the Subordinate Yield Maintenance Agreement and any
Distribution Date on or after the Distribution Date in August 2005
to and including the Distribution Date in January 2008, the product
of (a) one-twelfth of 0.0444%, (b) the applicable Yield Maintenance
Agreement Notional Amount for that Distribution Date and the
Subordinate Yield Maintenance Agreement and (c) 100, and after the
Distribution Date in January 2008, zero.
“Subordinate Yield Maintenance
Agreement”: The interest rate yield maintenance agreement
relating to the Mezzanine Certificates consisting of a 1992 ISDA
Master Agreement (Multicurrency Cross Border) and a Schedule dated
as of the Closing Date and a 1994 ISDA Credit Support Annex
(Bilateral Form New York Law) and the related Confirmation thereto,
between the Trustee on behalf of the Trust and the Cap
Counterparty, as such agreement may be amended and supplemented in
accordance with its terms and any replacement interest yield
maintenance agreement acceptable to the Depositor and the
Trustee.
“Sub-Servicer”: Any Person
with which the Servicer has entered into a Sub-Servicing Agreement
and which meets the qualifications of a Sub-Servicer pursuant to
Section 3.02.
“Sub-Servicing Account”: An
account established by a Sub-Servicer which meets the requirements
set forth in Section 3.08 and is otherwise acceptable to the
Servicer.
“Sub-Servicing Agreement”:
The written contract between the Servicer and a Sub-Servicer
relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.02.
“Substitution Shortfall
Amount”: As defined in Section 2.03(c) herein.
“Supplemental Interest
Account”: As defined in Section 4.08 hereof.
“Swap Agreement”: The swap
agreement relating to the Class A1 Certificates consisting of a
1992 ISDA Master Agreement (Multicurrency Border) and a schedule
dated as of the Closing Date and a 1994 ISDA Credit Support Annex
(Bilateral Form New York Law) and the related confirmation thereto,
between the Trustee on behalf of the Trust and the Swap
Counterparty, as such agreement may be amended and supplemented in
accordance with its terms.
“Swap Counterparty Payment”:
With respect to the Swap Payment Date is an amount equal to the
product of (i) USD-LIBOR-BBA for that Swap Payment Date plus
the Spread (as each term is defined in the Swap Agreement),
(ii) the Swap Notional Amount for that Swap Payment Date and
(iii) a fraction, the numerator of which is the actual number
of days elapsed in each Calculation Period and the denominator of
which is 360, subject to reduction in the circumstances set forth
in the Swap Agreement.
“Swap Counterparty”: Credit
Suisse First Boston International, or any successor in interest
thereto in accordance with the Swap Agreement.
“Swap Default”: The effective
designation of an Early Termination Date in respect of the Swap
Agreement following the occurrence of a Swap Event of Default, a
Termination Event with respect to the Swap Agreement or an
Additional Termination Event with respect to the Swap
Agreement.
“Swap Event of Default”: An
“Event of Default” as such term is defined in the Swap
Agreement.
“Swap Fee Amount”: The
portion of the Trust Swap Payment based on the Swap Fee Rate for
any Distribution Date.
“Swap Fee Rate”:
The per annum rate set forth in the Swap Agreement as the
Party B Spread.
“Swap Notional Amount”: With
respect to any Swap Payment Date is an amount equal to the lesser
of (i) Certificate Principal Balance of the Class A1
Certificates as of the last day of the related Interest Accrual
Period and (ii) the Aggregate Principal Balance of the
Subgroup 1 Mortgage Loans as of the first day of the calendar month
on which the related Swap Payment Date falls before giving effect
to Monthly Payments due on such date.
“Swap Payment Date”:
The date that falls one Business Day (as that term is defined
in the Swap Agreement) prior to a Distribution Date.
“Swap Reimbursement Amount”:
With respect to any Distribution Date is the excess, if any, of the
Swap Counterparty Payment over an amount equal to the Trust Swap
Payment less the Swap Fee Amount.
“Swap Termination Date”:
The earliest of (i) the Distribution Date on which the
Certificate Principal Balance of the Class A1 Certificates is
reduced to zero, (ii) the Distribution Date on which the Servicer
purchases all Mortgage Loans and each REO Property remaining in the
Trust Fund pursuant to Section 9.01(a) of this Agreement, (iii) the
day on which all of the Trust’s obligations under this
Agreement expire pursuant to Section 9.01, and (iv) the Final
Distribution Date.
“Swap Termination Payment”:
Upon the designation of an “Early Termination Date” as
defined in the Swap Agreement, the payment to be made by the Trust
to the Supplemental Interest Account for payment to the Swap
Counterparty, or by the Swap Counterparty to the Supplemental
Interest Account for payment to the Trust, as applicable, pursuant
to the terms of the Swap Agreement.
“Tax Returns”: Each federal
income tax return on Internal Revenue Service Form 1066, U.S. Real
Estate Mortgage Investment Conduit Income Tax Return, including
Schedule Q thereto, Quarterly Notice to Residual Interest Holders
of REMIC Taxable Income or Net Loss Allocation, or any successor
forms, to be filed on behalf of the Trust Fund due to its
classification as multiple REMICs under the REMIC Provisions,
together with any and all other information reports or returns that
may be required to be furnished to the Certificateholders or filed
with the Internal Revenue Service or any other governmental taxing
authority under any applicable provisions of federal, state or
local tax laws.
“Telerate Page 3750”: The
display designated as page “3750” on the Dow Jones
Telerate Capital Markets Report (or such other page as may replace
page 3750 on that report for the purpose of displaying London
interbank offered rates of major banks).
“Termination Event”: As
defined in the Swap Agreement.
“Termination Payment”: The
amount, if any, payable in respect of an Early Termination Date (as
defined in the related Yield Maintenance Agreement) and determined
pursuant to Section 6 of the related Yield Maintenance
Agreement.
“Termination Price”: As
defined in Section 9.01 herein.
“Third Party Claims”: As
defined in Section 8.05(b)
“Transfer”: Any direct or
indirect transfer, sale, pledge, hypothecation, or other form of
assignment of any Ownership Interest in a Certificate.
“Transferee”: Any Person who
is acquiring by Transfer any Ownership Interest in a
Certificate.
“Transferor”: Any Person who
is disposing by Transfer of any Ownership Interest in a
Certificate.
“Trigger Event”: A Trigger
Event has occurred with respect to any Distribution Date on or
after the Stepdown Date if (i) the Delinquency Percentage exceeds
35% of the Credit Enhancement Percentage for such Distribution Date
or (ii) the cumulative Realized Losses as a percentage of the
aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date is greater than the percentage set forth in the
following table:
|
Range of Distribution Dates
|
Percentage
|
|
July 2007 through June 2008
|
1.25%*
|
|
July 2008 through June 2009
|
3.00%*
|
|
July 2009 through June 2010
|
4.50%*
|
|
July 2010 through June 2011
|
5.75%*
|
|
July 2011 and thereafter
|
6.50%
|
_______________________
*
The percentages set forth in the table
above are the percentages applicable for the first Distribution
Date in the corresponding range of Distribution Dates. The
percentage for each succeeding Distribution Date in a range
increases incrementally by 1/12 of the positive difference between
the percentage applicable to the first Distribution Date in that
range and the percentage applicable to the first Distribution Date
in the succeeding range.
“Trust”: Asset Backed
Securities Corporation Home Equity Loan Trust, Series WMC 2005-HE5,
the trust created under this Agreement.
“Trust Fund”: The corpus of
the trust created hereunder consisting of (i) the Mortgage Loans
and all interest and principal received on or with respect thereto
after the related Cut-off Date, other than such amounts which were
due on the Mortgage Loans on or before the related Cut-off Date,
(ii) the Collection Account, the Distribution Account, the Net WAC
Reserve Fund and the Supplemental Interest Account and all amounts
deposited therein pursuant to the applicable provisions of this
Agreement (including, without limitation, amounts received from the
Seller on the Closing Date which shall be deposited by the Trustee
in the Collection Account pursuant to Section 2.01), (iii) the
Depositor’s rights under the Mortgage Loan Purchase
Agreement, the Assignment and Assumption Agreement and the
Reconstitution Agreement, (iv) the Trust’s rights under the
Yield Maintenance Agreements and the Swap Agreement, (v) property
that secured a Mortgage Loan and has been acquired by foreclosure,
deed-in-lieu of foreclosure or otherwise and (vi) all proceeds of
the conversion, voluntary or involuntary, of any of the
foregoing.
“Trust Swap Payment”: With
respect to each Swap Payment Date, an amount equal to the product
of (a) the lesser of (1) the sum of (A) the Formula Rate
for the Class A1 Certificates for that Distribution Date and (B)
the Swap Fee Rate and (2) the Subgroup 1 Net WAC Rate for the
related Calculation Period, (b) the Swap Notional Amount and
(c) a fraction, the numerator of which is the actual number of days
elapsed in the related Calculation Period and the denominator of
which 360, subject to reduction in the circumstances set forth in
the Swap Agreement.
“Trustee”: Wells Fargo Bank,
N.A., a national banking association, not in its individual
capacity, but solely in its capacity as Trustee for the benefit of
the Certificateholders under this Agreement, or its successor in
interest, or any successor trustee appointed as herein
provided.
“Underwriter”: Credit Suisse
First Boston LLC and/or Countrywide Securities Corporation, as the
context requires.
“Underwriter’s
Exemption”: Prohibited Transaction Exemption 2002-41, 67 Fed.
Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S.
Department of Labor.
“Uninsured Cause”: Any cause
of damage to a Mortgaged Property such that the complete
restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to
Section 3.14.
“United States Person”: A
“United States person” within the meaning set forth in
Section 7701 of the Code.
“Unpaid Interest Shortfall
Amount”: For (i) the first Distribution Date and with respect
to the Senior Certificates and the Mezzanine Certificates, zero,
and for such Class of Certificates and any Distribution Date after
the first Distribution Date, the amount, if any, by which (a) the
sum of (1) the Monthly Interest Distributable Amount for such Class
of Certificates for the immediately preceding Distribution Date and
(2) the outstanding Unpaid Interest Shortfall Amount, if any, for
such Class of Certificates for such preceding Distribution Date
exceeds (b) the aggregate amount distributed on such Class of
Certificates in respect of interest on such preceding Distribution
Date, plus interest on the amount of interest due but not paid on
the Class of Certificates on such preceding Distribution Date, to
the extent permitted by law, at the Pass-Through Rate on such
Distribution Date for such Class of Certificates for the related
Interest Accrual Period.
“USD-LIBOR-BBA”: As defined
in the Swap Agreement in the Annex to the 2000 ISDA Definitions.
“Value”: With respect to any
Mortgaged Property related to a Mortgage Loan, the lesser of (i)
the lesser of (a) the value thereof as determined by an appraisal
made for the Originator of the Mortgage Loan at the time of
origination of the Mortgage Loan by an appraiser who met the
minimum requirements of Fannie Mae and Freddie Mac and (b) the
value thereof as determined by a review appraisal conducted by the
Originator in the event any such review appraisal determines an
appraised value more than ten percent (10%) lower than the value
thereof as determined by the appraisal referred to in clause (i)(a)
above in the case of a Mortgage Loan with an LTV less than or equal
to eighty percent (80%), or more than five percent (5%) lower than
the value thereof as determined by the appraisal referred to in
clause (i)(a) above, in the case of a Mortgage Loan with an LTV
greater than eighty percent (80%), as determined by an appraisal
referred to in clause (i)(a), and (ii) the purchase price paid for
the related Mortgaged Property by the Mortgagor with the proceeds
of the Mortgage Loan, provided, however , (A) in the case of
a Refinanced Mortgage Loan, such value of the Mortgaged Property is
based solely upon the lesser of (1) the value determined by an
appraisal made for the Originator of such Refinanced Mortgage Loan
at the time of origination of such Refinanced Mortgage Loan by an
appraiser who met the minimum requirements of Fannie Mae and
Freddie Mac and (2) the value thereof as determined by a review
appraisal conducted by the Originator in the event any such review
appraisal determines an appraised value more than ten percent (10%)
lower than the value thereof as determined by the appraisal
referred to in clause (ii)(A)(1) above, in the case of a Mortgage
Loan with an LTV less than or equal to eighty percent (80%), or
more than five percent (5%) lower than the value thereof as
determined by the appraisal referred to in clause (ii)(a)(1) above,
in the case of a Mortgage Loan with an LTV greater than eighty
percent (80%), as determined by the appraisal referred to in clause
(ii)(A)(1) and (B) in the case of a Mortgage Loan originated in
connection with a “lease-option purchase”, such value
of the Mortgaged Property is based on the lower of the value
determined by an appraisal made for the Originator of such Mortgage
Loan at the time or origination or the sale price of such Mortgaged
Property if the “lease option purchase price” was set
less than 12 months prior to origination, and is based on the value
determined by an appraisal made for the Originator of such Mortgage
Loan at the time of origination if the “lease option purchase
price” was set 12 months or more prior to
origination.
“Voting Rights”: The portion
of the voting rights of all of the Certificates that is allocated
to any Certificate. With respect to any date of
determination, 97% of all voting rights will be allocated among all
Holders of the LIBOR Certificates in proportion to their then
outstanding Certificate Principal Balances, 1% of all voting rights
will be allocated among the Holders of the Class X
Certificates; 1% of all voting rights will be allocated among the
Holders of the Class P Certificates, and 1% of all voting
rights will be allocated among Holders of the Residual
Certificates. Voting Rights allocated to a Class shall be
allocated among the Certificates of such Class in proportion to the
outstanding Percentage Interests evidenced by their respective
Certificates.
“WMC”: WMC Mortgage
Corp., or its successor in interest.
“Yield Maintenance
Agreement”: The Subgroup 1 Yield Maintenance Agreement,
the Subgroup 2 Yield Maintenance Agreement and the Subordinate
Yield Maintenance Agreement, as applicable.
“Yield Maintenance Agreement
Notional Amount”: With respect to each Yield Maintenance
Agreement, the notional amount indicated in the “Additional
Terms” section of the Confirmation for the related Yield
Maintenance Agreement.
SECTION 1.02.
Allocation of Certain Interest
Shortfalls.
For purposes of calculating the amount of
the Monthly Interest Distributable Amount for the Senior and
Subordinate Certificates for any Distribution Date, the aggregate
amount of any Prepayment Interest Shortfalls (to the extent not
covered by payments by the Servicer pursuant to Section 3.24) and
any Relief Act Interest Shortfall incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated to the
Class X Certificates in reduction of the Class X
Distribution Amount and thereafter, among the Class A
Certificates and the other Classes of Subordinate Certificates on a
pro rata basis based on such Monthly Interest Distributable Amount
prior to giving effect to any such reduction.
SECTION 1.03.
Designation of Interests in
REMIC
(a)
Designation of Interests in
REMIC
The Trustee shall elect that each of
REMIC I, REMIC II, REMIC III, REMIC IV and REMIC V be treated as a
REMIC under Section 860D of the Code. Any inconsistencies or
ambiguities in this Agreement or in the administration of this
Agreement shall be resolved in a manner that preserves the validity
of such REMIC elections. The assets of REMIC I shall include
the Mortgage Loans, the accounts (other than the Net WAC Reserve
Fund and the Supplemental Interest Account), any REO Property, and
any proceeds of the foregoing. The REMIC I Regular Interests
shall constitute the assets of REMIC II. The REMIC II Regular
Interests shall constitute the assets of REMIC III. The REMIC
III Regular Interests shall constitute the assets of REMIC IV.
The REMIC IV Regular Interests shall constitute the
assets of REMIC V (the “Master REMIC”).
REMIC I:
The following table sets forth the
designations, principal balances, and interest rates for each
interest in REMIC I, each of which (other than the R-I interest) is
hereby designated as a regular interest in REMIC I (the
“REMIC I Regular Interests”):
|
|
Initial Principal Balance of
REMIC Interest
|
|
Corresponding REMIC II
Interest
|
Distribution Date of Rate
Change
|
Yield Maintenance Agreement
Notional Amount
|
|
T1-A-SG1
|
(1)
|
(2)
|
N/A
|
N/A
|
N/A
|
|
T1-A-SG2
|
(3)
|
(4)
|
N/A
|
N/A
|
N/A
|
|
T1-SA-SG1A
|
(5)
|
(2)(6)
|
T2-SA-SG1A-IO
|
N/A
|
N/A
|
|
T1-SA-SG2(1)
|
$
47,310.26
|
(4)
|
T2-SA-SG2-IO(1)
|
9/2005
|
$3,762,927.46
|
|
T1-SA-SG2(2)
|
$
56,273.68
|
(4)
|
T2-SA-SG2-IO(2)
|
10/2005
|
$3,715,617.60
|
|
T1-SA-SG2(3)
|
$
65,136.50
|
(4)
|
T2-SA-SG2-IO(3)
|
11/2005
|
$3,659,343.92
|
|
T1-SA-SG2(4)
|
$
73,845.78
|
(4)
|
T2-SA-SG2-IO(4)
|
12/2005
|
$3,594,207.42
|
|
T1-SA-SG2(5)
|
$
82,354.53
|
(4)
|
T2-SA- SG2-IO(5)
|
1/2006
|
$3,520,361.64
|
|
T1-SA-SG2(6)
|
$
90,609.36
|
(4)
|
T2-SA-SG2-IO(6)
|
2/2006
|
$3,438,007.11
|
|
T1-SA-SG2(7)
|
$
8,551.96
|
(4)
|
T2-SA-SG2-IO(7)
|
3/2006
|
$3,347,397.75
|
|
T1-SA-SG2(8)
|
$
16,134.87
|
(4)
|
T2-SA-SG2-IO(8)
|
4/2006
|
$3,248,845.79
|
|
T1-SA-SG2(9)
|
$
13,252.45
|
(4)
|
T2-SA-SG2-IO(9)
|
5/2006
|
$3,142,710.92
|
|
T1-SA-SG2(10)
|
$
110,198.75
|
(4)
|
T2-SA-SG2-IO(10)
|
6/2006
|
$3,029,458.47
|
|
T1-SA-SG1(11)
|
$
107,228.87
|
(4)
|
T2-SA-SG2-IO(11)
|
7/2006
|
$2,919,259.72
|
|
T1-SA-SG2(12)
|
$
104,338.95
|
(4)
|
T2-SA-SG2-IO(12)
|
8/2006
|
$2,812,030.85
|
|
T1-SA-SG2(13)
|
$
101,526.86
|
(4)
|
T2-SA-SG2-IO(13)
|
9/2006
|
$2,707,691.90
|
|
T1-SA-SG2(14)
|
$
98,790.34
|
(4)
|
T2-SA-SG2-IO(14)
|
10/2006
|
$2,606,165.04
|
|
T1-SA-SG2(15)
|
$
96,127.64
|
(4)
|
T2-SA-SG2-IO(15)
|
11/2006
|
$2,507,374.70
|
|
T1-SA-SG2(16)
|
$
93,535.51
|
(4)
|
T2-SA-SG2-IO(16)
|
12/2006
|
$2,411,247.06
|
|
T1-SA-SG2(17)
|
$
91,014.34
|
(4)
|
T2-SA-SG2-IO(17)
|
1/2007
|
$2,317,711.55
|
|
T1-SA-SG2(18)
|
$
88,561.04
|
(4)
|
T2-SA-SG2-IO(18)
|
2/2007
|
$2,226,697.21
|
|
T1-SA-SG2(19)
|
$
86,252.64
|
(4)
|
T2-SA-SG2-IO(19)
|
3/2007
|
$2,138,136.17
|
|
T1-SA-SG2(20)
|
$
83,961.72
|
(4)
|
T2-SA-SG2-IO(20)
|
4/2007
|
$2,051,883.53
|
|
T1-SA-SG2(21)
|
$
81,691.01
|
(4)
|
T2-SA-SG2-IO(21)
|
5/2007
|
$1,967,921.81
|
|
T1-SA-SG2(22)
|
$
173,710.68
|
(4)
|
T2-SA-SG2-IO(22)
|
6/2007
|
$1,886,230.80
|
|
T1-SA-SG2(23)
|
$
162,795.44
|
(4)
|
T2-SA-SG2-IO(23)
|
7/2007
|
$1,712,520.12
|
|
T1-SA-SG2(24)
|
$
152,603.25
|
(4)
|
T2-SA-SG2-IO(24)
|
8/2007
|
$1,549,724.68
|
|
T1-SA-SG2(25)
|
$
143,086.40
|
(4)
|
T2-SA-SG2-IO(25)
|
9/2007
|
$1,397,121.43
|
|
T1-SA-SG2(26)
|
$
77,633.00
|
(4)
|
T1-SA-SG2-IO(26)
|
10/2007
|
$1,254,035.03
|
|
T1-SA-SG2(27)
|
$
74,976.52
|
(4)
|
T1-SA-SG2-IO(27)
|
11/2007
|
$1,176,402.03
|
|
T1-SA-SG2(28)
|
$
72,380.78
|
(4)
|
T1-SA-SG2-IO(28)
|
12/2007
|
$1,101,425.51
|
|
T1-SA-SG2(29)
|
$
69,907.07
|
(4)
|
T1-SA-SG2-IO(29)
|
1/2008
|
$1,029,044.73
|
|
T1-SA-SG2(30)
|
$
67,518.92
|
(4)
|
T1-SA-SG2-IO(30)
|
2/2008
|
$959,137.66
|
|
T1-SA-SG2(31)
|
$
65,213.31
|
(4)
|
T1-SA-SG2-IO(31)
|
3/2008
|
$891,618.74
|
|
T1-SA-SG2(32)
|
$
62,987.39
|
(4)
|
T1-SA-SG2-IO(32)
|
4/2008
|
$826,405.43
|
|
T1-SA-SG2(33)
|
$
60,838.37
|
(4)
|
T1-SA-SG2-IO(33)
|
5/2008
|
$763,418.04
|
|
T1-SA-SG2(34)
|
$
58,743.04
|
(4)
|
T1-SA-SG2-IO(34)
|
6/2008
|
$702,579.67
|
|
T1-SA-SG2(35)
|
$
56,741.29
|
(4)
|
T1-SA-SG2-IO(35)
|
7/2008
|
$643,836.63
|
|
T1-SA-SG2(36)
|
$
587,095.34
|
(4)(7)
|
T1-SA-SG2-IO(36)
|
10/2008
|
$587,095.34
|
|
R-I
|
(8)
|
(8)
|
N/A
|
N/A
|
N/A
|
(1)
This interest shall have
an initial principal balance equal to (i) the aggregate principal
balance of the Mortgage Loans in Subgroup 1 less (ii) the
principal balance of the T1-SA-SG1A interest.
(2)
The T1-A-SG1 interest
and the T1-SA-SG1A interest shall bear interest at a per annum rate
equal to the weighted average Net Mortgage Rate of the Mortgage
Loans in Subgroup 1, weighted on the basis of the outstanding
principal balances of such Mortgage Loans as of the beginning of
the preceding calendar month and adjusted to take into account any
distribution of principal in such preceding calendar month to the
extent such principal was reflected in the outstanding principal
balances as of the beginning of such preceding calendar
month.
(3)
This interest shall have
an initial principal balance equal to (i) the aggregate principal
balance of the Mortgage Loans in Subgroup 2 less (ii) the
aggregate principal balance of the T1-SA-SG2 interests.
(4)
The T1-A-SG2 interest
and each T1-SA-SG2 interest shall bear interest at a per annum rate
equal to the weighted average Net Mortgage Rate of the Mortgage
Loans in Subgroup 2, weighted on the basis of the outstanding
principal balances of such Mortgage Loans as of the beginning of
the preceding calendar month and adjusted to take into account any
distribution of principal in such preceding calendar month to the
extent such principal was reflected in the outstanding principal
balances as of the beginning of such preceding calendar
month.
(5)
This interest shall have
an initial principal balance equal to the Original Certificate
Principal Balance of the Class A1 Certificate.
(6)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 1.
(7)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 2.
(8)
The R-I interest shall
not have a principal amount and shall not bear interest. The
R-I interest is hereby designated as the sole class of residual
interest in REMIC I.
On the Business Day prior to each
Distribution Date, all Realized Losses and all payments of
principal shall be allocated in the following order of
priority:
With respect to such amounts relating to
the Mortgage Loans in Subgroup 1:
(i)
First, to the T1-SA-SG1A interest until
the outstanding principal balance of such interest equals the
outstanding principal balance of the Class A1 Certificate
immediately following such Distribution Date, and
(ii)
Second, to the T1-A-SG1 interest until
such interest is reduced to zero.
With respect to such amounts relating to
the Mortgage Loans in Subgroup 2:
(i)
First, to the T1-A-SG2 interest until
such interest is reduced to zero, and
(ii)
Second, to the outstanding T1-SA-SG2
interest with the lowest numerical denomination until such interest
is reduced to zero.
The aggregate initial principal balance
of the T1-SA-SG2 interests was established to equal approximately
1/100th of the Yield Maintenance Agreement Notional Amount and a
T1-SA-SG2 interest was created to equal approximately 1/100th of
each reduction in the Yield Maintenance Agreement Notional
Amount.
REMIC II:
The following table sets forth the
designations, principal balances, and interest rates for each
interest in REMIC II, each of which (other than the R-II interest)
is hereby designated as a regular interest in REMIC II (the
“REMIC II Regular Interests”):
|
|
Initial Principal Balance of
REMIC Interest
|
|
Corresponding Class of
Certificates
|
|
T2-A-SG1-Senior
|
$
464,230,000.00
|
(1)(5)
|
A1, A1A
|
|
T2-A-SG1-Sub
|
$
128,276,186.69
|
(1)
|
N/A
|
|
T2-A-SG2-Senior
|
$
380,122,000.00
|
(2)(6)
|
A2, A2A
|
|
T2-A-SG2-Sub
|
$
105,038,533.00
|
(2)
|
N/A
|
|
T2-SA-SG1
|
(3)
|
(3)
|
N/A
|
|
T2-SA-SG2
|
(4)
|
(4)
|
N/A
|
|
R-II
|
(7)
|
(7)
|
N/A
|
(1)
This interest shall bear
interest at a per annum rate equal to the weighted average of the
interest rates of the interests in REMIC I with the term
“SG1” in their class designation, provided that the
interest rate of the Class T1-SA-SG1A interest for each
Distribution Date on which interest is distributable on the
T2-SA-SG1 interest shall be reduced by (i) .080% for each
Distribution Date prior to the Optional Termination Date, and (ii)
.160% for each Distribution Date on or after the Optional
Termination Date.
(2)
This interest shall bear
interest at a per annum rate equal to the weighted average of the
interest rates of the interests in REMIC I with the term
“SG2” in their class designation, provided that the
interest rate of any such interest in REMIC I shall be reduced by
1.80% for each Distribution Date on which interest is distributable
on the Corresponding REMIC II interest relating to such
interest.
(3)
The T2-SA-SG1 interest
shall represent an interest-only regular interest and shall be
entitled to receive, on each Distribution Date before the Optional
Termination Date, interest that accrues on the T1-SA-SG1A interest
at a per annum rate equal to .080%, provided that, on the first
Distribution Date, no interest shall be distributable on any such
regular interest. On and after the Optional Termination Date,
the T2-SA-SG1 interest shall be entitled to receive interest that
accrues on the T1-SA-SG1A interest at a per annum rate equal to
.160% .
(4)
The T2-SA-SG2 interest
shall represent 36 REMIC regular interests, each of which appears
under the heading “Corresponding REMIC II Interest” in
the table designating the interests in REMIC I above. Each
such regular interest shall be entitled to receive, on each
Distribution Date before the applicable Distribution Date of Rate
Change, interest that accrues on the REMIC I interest to which it
corresponds at a per annum rate equal to 1.80%, provided that, on
the first Distribution Date, no interest shall be distributable on
any such regular interest. The rate of 1.80% is equal to 100
times 0.0180%, which corresponds to establishing the T1-SA-SG2
interests as having aggregate principal balances equal to
approximately 1/100th of the Yield Maintenance Agreement Notional
Amount. On and after the applicable Distribution Date of Rate
Change for a Corresponding REMIC II interest, such Corresponding
REMIC II interest shall not be entitled to receive any
interest.
(5)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 1.
(6)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 2.
(7)
The R-II interest shall
not have a principal amount and shall not bear interest. The
R-II interest is hereby designated as the sole class of residual
interest in REMIC II.
On the Business Day prior to each
Distribution Date, all Realized Losses and all payments of
principal shall be allocated in the following order of
priority:
With respect to such amounts relating to
the Mortgage Loans in Subgroup 1:
(i)
First, to the T2-A-SG1-Senior interest
until the principal balance of such interest equals the aggregate
principal balance of the T5-Class A1 and T5-Class A1A interests as
of such Distribution Date, and
(ii)
Second, to the T2-SA-SG1-Sub interest
until such interest is reduced to zero.
With respect to such amounts relating to
the Mortgage Loans in Subgroup 2:
(i)
First, to the T2-A-SG1-Senior interest
until the principal balance of such interest equals the aggregate
principal balance of the T5-Class A2 and T5-Class A2A interests as
of such Distribution Date, and
(ii)
Second, to the outstanding T2-SA-SG2-Sub
interest until such interest is reduced to zero.
REMIC III:
The following table sets forth the
designations, principal balances, and interest rates for each
interest in REMIC III, each of which (other than the R-III
interest) is hereby designated as a regular interest in REMIC III
(the “REMIC III Regular Interests”):
|
|
Initial Principal
Balance
|
|
Distribution Date of Rate
Change
|
Corresponding REMIC IV
Interest
|
|
T3-A-SG1-Senior
|
$
464,230,000.00
|
(1)(6)
|
N/A
|
N/A
|
|
T3-A-SG2-Senior
|
$
128,276,186.69
|
(2)(7)
|
N/A
|
N/A
|
|
T3-A-SG2-Sub-A
|
$
380,122,000.00
|
(3)
|
5/2008
|
T4-A-SG2-Sub
|
|
T3-A-SG2-Sub-B
|
$
105,038,533.00
|
(3)
|
N/A
|
N/A
|
|
T3-SA-SG1
|
(4)
|
(4)
|
N/A
|
N/A
|
|
T3-SA-SG2
|
(5)
|
(5)
|
N/A
|
N/A
|
|
R-III
|
(8)
|
(8)
|
N/A
|
N/A
|
(1)
This interest shall bear
interest at the same rate as the T2-A-SG1-Senior
interest.
(2)
This interest shall bear
interest at the same rate as the T2-A-SG2-Senior
interest.
(3)
This interest shall bear
interest at a per annum rate equal to the weighted average of the
interest rates of the interests in REMIC II with the term
“Sub” in their class designation.
(4)
The T3-SA-SG1 interest
shall not have a principal balance, but shall be entitled to
receive, on each Distribution Date, 100% of the interest
distributable on the T2-SA-SG1 interest on such Distribution
Date.
(5)
The T3-SA-SG2 interest
shall not have a principal balance, but shall be entitled to
receive, on each Distribution Date, 100% of the interest
distributable on the T2-SA-SG2 interest on such Distribution
Date.
(6)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 1.
(7)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans in Subgroup 2.
(8)
The R-III interest shall
not have a principal amount and shall not bear interest. The
R-III interest is hereby designated as the sole class of residual
interest in REMIC III.
On the Business Day prior to each
Distribution Date, all Realized Losses and all payments of
principal shall be allocated in the following order of
priority:
(i)
With respect to such amounts relating to
the T2-A-SG-1-Senior interest, to the T3-A-SG1-Senior interest
until such interest is reduced to zero.
(ii)
With respect to such amounts relating to
the T2-A-SG-2-Senior interest, to the T3-A-SG2-Senior interest
until such interest is reduced to zero.
(iii)
With respect to the remaining
amounts:
a.
First, to the T3-A-SG2-Sub-B interest
until the principal balance of such interest until such interest is
reduced to zero; and
b.
Second, to the T3-A-SG2-Sub-A Interest
until the principal balance of such interest is reduced to
zero.
REMIC IV:
The following table sets forth the
designations, principal balances, and interest rates for each
interest in REMIC IV, each of which (other than the R-IV interest)
is hereby designated as a regular interest in REMIC IV (the
“REMIC IV Regular Interests”):
|
|
|
|
Corresponding Class of REMIC V
Interest
|
|
T4-A1 (1)
|
¼ Corresponding Class
balance
|
(9)
|
A1
|
|
T4-A1A (1)
|
¼ Corresponding Class
balance
|
(9)
|
A1A
|
|
T4-A2 (1)
|
¼ Corresponding Class
balance
|
(10)
|
A2
|
|
T4-A2A (1)
|
¼ Corresponding Class
balance
|
(10)
|
A2A
|
|
T4-M1 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M1
|
|
T4-M2 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M2
|
|
T4-M3 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M3
|
|
T4-M4 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M4
|
|
T4-M5 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M5
|
|
T4-M6 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M6
|
|
T4-M7 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M7
|
|
T4-M8 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M8
|
|
T4-M9 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M9
|
|
T4-M10 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M10
|
|
T4-M11 (1)
|
¼ Corresponding Class
balance
|
(11)
|
M11
|
|
T4-M12(1)
|
¼ Corresponding Class
balance
|
(11)
|
M12
|
|
T4-SG1-Pool
|
$
114,774,738.13
|
(9)
|
N/A
|
|
T4-SG1-PSA
|
$
93,980,114.67
|
(9)
|
N/A
|
|
T4-SG2-Pool
|
$
1,282,761.87
|
(10)
|
N/A
|
|
T4-SG2-PSA
|
$
1,050,385.33
|
(10)
|
N/A
|
|
T4-Sub-Pool
|
$
62,370,109.85
|
(11)
|
N/A
|
|
T4-Accrual Interest (2)
|
(7)
|
(8)
|
N/A
|
|
T4-SA-SG1
|
(3)
|
(3)
|
N/A
|
|
T4-SA-SG2
|
(4)
|
(4)
|
N/A
|
|
T4-SA-SG-Sub
|
(5)
|
(5)
|
N/A
|
|
R-IV
|
(6)
|
(6)
|
N/A
|
(1)
This interest is a REMIC
IV Accretion Directed Class.
(2)
This interest shall also
be entitled to all Prepayment Premiums received in respect of the
Mortgage Loans.
(3)
The T4-SA-SG1 interest
shall not have a principal balance, but shall be entitled to
receive, on each Distribution Date, 100% of the interest
distributable on the T3-SA-SG1 interest on such Distribution
Date.
(4)
The T4-SA-SG2 interest
shall not have a principal balance, but shall be entitled to
receive, on each Distribution Date, 100% of the interest
distributable on the T3-SA-SG2 interest on such Distribution
Date.
(5)
The T4-SA-SG-Sub
interest shall represent 1 REMIC regular interest, which appears
under the heading “Corresponding REMIC IV Interest” in
the table designating the interests in REMIC III above. This
regular interest shall be entitled to receive, on each Distribution
Date before the applicable Distribution Date Rate of Change,
interest that accrues on the REMIC III Interest to which it
corresponds at a per annum rate equal to 1.3320%, provided that, on
the first Distribution Date, no interest shall be distributable on
such regular interest. The rate of 1.3320% is equal to 30
times 0.0444%, which corresponds to establishing the T3-SG2-Sub
interest as having an aggregate principal balance equal to
approximately 1/30th of the Yield Maintenance Agreement Notional
Amount. On and after the applicable Distribution Date of Rate
Change for the Corresponding REMIC IV interest, such Corresponding
REMIC IV interest shall not be entitled to receive any
interest.
(6)
The R-IV interest shall
not have a principal amount and shall not bear interest. The
R-IV interest is hereby designated as the sole class of residual
interest in REMIC IV.
(7)
This interest shall have
an initial principal balance equal to the aggregate principal
balance of all the Mortgage Loans as of the Cut-off Date minus the
aggregate initial principal balance of each other regular interest
in REMIC IV.
(8)
This interest shall bear
interest at the weighted average rate of the interest rates of the
regular interests in REMIC III, other than any interest that is an
interest-only regular interest.
(9)
This interest shall bear
interest at the same rate as the T3-A-SG1-Senior interest (the
“Subgroup 1 REMIC Maximum Rate”).
(10)
This interest shall bear
interest at the same rate as the T3-A-SG2-Senior interest (the
“Subgroup 2 REMIC Maximum Rate”).
(11)
This interest shall bear
interest at a per annum rate equal to the weighted average of the
interest rates of the interests in REMIC III with the term
“Sub” in their class designation, provided that the
interest rate of the T3-A-SG2-Sub-A interest shall be reduced by
1.3320% for each Distribution Date on which interest is
distributable on the T4-SA-SG-Sub interest (the “Subordinate
REMIC Maximum Rate”).
On the Business Day prior to each
Distribution Date, interest shall be allocated with respect to the
interests in REMIC IV based on the above-described interest rates,
provided however , that interest that accrues on the
LT4-Accrual Interest shall be deferred to the extent necessary to
make the distributions of principal described below. Any
interest so deferred shall itself bear interest at the interest
rate for the LT4-Accrual Interest.
On the Business Day prior to each
Distribution Date the principal distributed on the REMIC III
interests (together with an amount equal to the interest deferred
on the LT4-Accrual Interest for such Distribution Date) shall be
distributed, and Realized Losses shall be allocated, among the
interests in REMIC IV in the following order of
priority:
(a)
First, to the T4-SG1-PSA interest until
its outstanding principal amount equals one percent of the Group
Subordinate Amount for Subgroup 1 immediately after such
Distribution Date;
(b)
Second, to the T4-SG2-PSA interest until
its outstanding principal amount equals one percent of the Group
Subordinate Amount for Subgroup 2 immediately after such
Distribution Date;
(c)
Third, to each remaining interest in
REMIC IV having a Corresponding Class in REMIC V until the
outstanding principal amount of each such interest equals
one-quarter of the outstanding principal amount of the
Corresponding Class of Certificates for such interest immediately
after such Distribution Date;
(d)
Fourth, to the T4-SG1-Pool Interest until
the aggregate principal balance of such interest, the T4-SG1-PSA
interest, the T4-A1 interest and the T4-A1A interest equals one
half of the outstanding principal balance of the T3-A-SG1-Senior
interest immediately after such Distribution Date;
(e)
Fifth, to the T4-SG2-Pool Interest until
the aggregate principal balance of such interest, the T4-SG2-PSA
interest, the T4-A2 interest, and the T4-A2A interest equals one
half of the outstanding principal balance of the T3-A-SG2-Senior
interest immediately after such Distribution Date;
(f)
Sixth, to the T4-Sub-PSA interest until
its outstanding principal amount equals (i) one-half of the
aggregate outstanding principal amount of each interest in REMIC
III having the term “Sub” in its class designation
immediately after such Distribution Date minus (ii) the aggregate
outstanding principal amount of each remaining interest in REMIC IV
having the letter “M” in its class designation;
and
(g)
Finally, to the T4-Accrual Interest, any
remaining amounts.
Master REMIC or REMIC V:
The following table sets forth
characteristics of the interests in the Master REMIC, each of
which, except for the Class R Certificates, is hereby designated as
a “regular interest” in the Master REMIC:
|
|
Original Principal
Balance
|
|
Corresponding Class of
Certificates(7)
|
|
T5-Class A1
|
$417,810,000.00
|
(1)
|
A1
|
|
T5-Class A1A
|
$46,420,000.00
|
(1)
|
A1A
|
|
T5-Class A2
|
$304,100,000.00
|
(1)
|
A2
|
|
T5-Class A2A
|
$76,022,000.00
|
(1)
|
A2A
|
|
T5-Class M1
|
$38,796,000.00
|
(1)
|
M1
|
|
T5-Class M2
|
$35,024,000.00
|
(1)
|
M2
|
|
T5-Class M3
|
$21,015,000.00
|
(1)
|
M3
|
|
T5-Class M4
|
$19,398,000.00
|
(1)
|
M4
|
|
T5-Class M5
|
$16,704,000.00
|
(1)
|
M5
|
|
T5-Class M6
|
$17,782,000.00
|
(1)
|
M6
|
|
T5-Class M7
|
$14,549,000.00
|
(1)
|
M7
|
|
T5-Class M8
|
$13,471,000.00
|
(1)
|
M8
|
|
T5-Class M9
|
$10,777,000.00
|
(1)
|
M9
|
|
T5-Class M10
|
$7,005,000.00
|
(1)
|
M10
|
|
T5-Class M11
|
$10,777,000.00
|
(1)
|
M11
|
|
T5-Class M12
|
$11,851,000.00
|
(1)
|
M12
|
|
T5-Class X
|
(2)
|
(2)
|
X
|
|
T5-Class P
|
$100.00
|
(3)
|
P
|
|
T5-Strip Amount
|
(4)
|
(4)
|
|
|
RV
|
N/A
|
N/A
|
R
|
|
Swap Fee Amount
|
(6)
|
(6)
|
A1
|
(1)
This interest shall bear
interest at the Pass-Through Rate for its Corresponding Class of
Certificates, provided that, for purposes of determining the
Pass-Through Rate, the Subgroup 1 REMIC Maximum Rate, the Subgroup
2 REMIC Maximum Rate and the Subordinate REMIC Maximum Rate shall
be substituted for the Subgroup 1 Net WAC Rate, the Subgroup 2 Net
WAC Rate and the Subordinate Net WAC Rate, respectively, in the
definition thereof.
(2)
The Class X interest has
a notional balance equal to the aggregate Stated Principal Balance
of the Mortgage Loans. The initial interest rate of the Class
X interest shall be a rate sufficient to cause all net interest
from the Mortgage Loans to accrue on the Class X interest that is
in excess of the amount of interest that accrues on the each other
regular interest in REMIC V. For any Distribution Date, the
interest rate in respect of the Class X interest shall be the
excess of: (i) the weighted average interest rate of all
interests in REMIC IV (other than any interest-only regular
interest) over (ii) the product of: (A) four and
(B) the weighted average Pass-Through Rate of the REMIC IV
Accretion Directed Class, where the T4-Accrual Interest and each
REMIC IV Regular Interest having the letters “PSA” or
the word “Pool” in its designation is subject to a cap
equal to zero and each REMIC IV Accretion Directed Class is subject
to a cap, equal to the Pass-Through Rate on its Corresponding
Class, provided that, for purposes of determining the Pass-Through
Rate, the Subgroup 1 REMIC Maximum Rate, the Subgroup 2 REMIC
Maximum Rate and the Subordinate REMIC Maximum Rate shall be
substituted for the Subgroup 1 Net WAC Rate, the Subgroup 2 Net WAC
Rate and the Subordinate Net WAC Rate, respectively in the
definition thereof. The Class X interest shall also be
entitled to principal equal to the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date
(less $100.00) over the aggregate Certificate Principal Balance of
the Class A Certificates and Class M Certificates as of the Closing
Date. Such principal balance shall not bear
interest.
(3)
The Class P
interest shall not be entitled to payments of interest, but shall
be entitled to receive all Prepayment Premiums in respect of the
Mortgage Loans.
(4)
The Strip Amount shall
be a REMIC regular interest of REMIC V. The Strip Amount
shall not have a principal balance, but shall receive 100% of the
amount received from the T4-SA interests.
(5)
REMIC V shall also issue
the R-V interest, which shall not have a principal amount and shall
not bear interest. The R-V interest is hereby designated as
the sole class of residual interest in REMIC V.
(6)
This interest shall be
entitled to receive, on each Distribution Date, 100% of the
interest distributable on the T4-SA-SG1 interest.
(7)
For purposes of the
REMIC Provisions, the Class of Certificates corresponding to an
interest in the Master REMIC shall represent beneficial ownership
of the such interest in the Master REMIC. Any amount
distributed on a Corresponding Class of Certificates on any
Distribution Date in excess of the amount distributable on each
interest in the Master REMIC corresponding to such Class of
Certificates shall be treated as having been paid from the Net WAC
Rate Reserve Fund or the Supplemental Interest Account, as
applicable, and any amount distributable on each interest in the
Master REMIC corresponding to such Class of Certificates on such
Distribution Date in excess of the amount distributable on that
Class of Certificates on such Distribution Date shall be treated as
having been paid to the Supplemental Interest Account, all pursuant
to and as further provided in Section 10.01(l) hereof.
On the Business Day prior to each
Distribution Date, interest shall be allocated with respect to the
interests in REMIC V based on the above-described interest
rates.
On the Business Day prior to each
Distribution Date the principal distributed on the REMIC V
interests shall be distributed, and Realized Losses shall be
allocated, among the interests in REMIC V in an amount equal to the
principal distributions and Realized Loss allocations for such
Distribution Date with respect to the Corresponding Class of
Certificates related to such interests.
Certificates:
The following table sets forth
characteristics of the Certificates:
|
|
Original Certificate Principal
Balance
|
|
|
Class A1
|
$417,810,000.00
|
(1)
|
|
Class A1A
|
$46,420,000.00
|
(1)
|
|
Class A2
|
$304,100,000.00
|
(1)
|
|
Class A2A
|
$76,022,000.00
|
(1)
|
|
Class M1
|
$38,796,000.00
|
|
