Exhibit 99.4
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Date: May 31, 2006
To: Xxxxxx Xxxxxxx Mortgage Loan From: Xxxxxx Xxxxxxx Capital
Trust 2006-8AR Services Inc.
Attn: Xxxxx Fargo Bank, National Association Contact: Xxxxxx Xxxxx
0000 Xxx Xxxxxxxxx Xxxx
Xxxxxxxx, XX 00000
Attention: Client Manager, MSM 0000-0XX
Fax: (000) 000-0000 Fax: (000) 000-0000
Tel: (000) 000-0000 Tel: (000) 000-0000
REFERENCE NUMBER: FRTN7
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The purpose of this letter agreement (this "Confirmation") is to confirm the
terms and conditions of the Swap Transaction entered into on the Trade Date
specified below (the "Transaction") between Xxxxxx Xxxxxxx Capital Services
Inc. ("Party A") and Xxxxx Fargo Bank, National Association, solely in its
capacity as securities administrator (the "Securities Administrator") on
behalf of the Xxxxxx Xxxxxxx Mortgage Loan Trust 2006-8AR ("Party B") pursuant
to the Pooling and Servicing Agreement (the "PSA"), dated as of May 1, 2006,
among Xxxxxx Xxxxxxx Capital I Inc. (the "Depositor"), the Securities
Administrator as master servicer and securities administrator and LaSalle Bank
National Association as trustee (the "Trustee").
The definitions and provisions contained in the 2000 ISDA Definitions (the
"Definitions"), as published by the International Swaps and Derivatives
Association, Inc., are incorporated into this Confirmation. In the event of
any inconsistency between the Definitions and this Confirmation, this
Confirmation will govern. Terms capitalized but not defined in this
Confirmation (including the Definitions) have the meanings attributed to them
in the PSA.
This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the ISDA Master Agreement dated
as of May 31, 2006, as amended and supplemented from time to time (the
"Agreement"), between Party A and Party B. All provisions contained in the
Agreement govern this Confirmation except as expressly modified below.
1. The terms of the particular Transaction to which this Confirmation
relates are as follows:
Notional Amount:................. With respect to any Calculation Period,
the amount set forth for such
Calculation Period in Schedule I
attached hereto.
Trade Date:...................... May 23, 2006
Effective Date:.................. May 31, 2006
Termination Date:................ May 25, 2011, subject to adjustment in
accordance with the Business Day
Convention
Fixed Amounts:
Fixed Rate Payer:.......... Party B
Fixed Rate Payer Payment
Dates:................... The 25th calendar day of each month
during the Term of this Transaction,
commencing June 25, 2006 and ending
on the Termination Date, subject to
adjustment in accordance with the
Business Day Convention
1
Fixed Rate Payer Period End
Dates:................... The 25th calendar day of each month
during the Term of this Transaction,
commencing June 25, 2006 and ending
on May 25, 2011, subject to No
Adjustment.
Fixed Rate:................ 5.36%
Fixed Amount:.............. To be determined in accordance with the
following formula:
10 * Fixed Rate * Notional Amount *
Fixed Rate Day Count Fraction.
Fixed Rate Day Count
Fraction:................ 30/360
Floating Amounts:
Floating Rate Payer:....... Party A
Floating Rate Payer Payment
Dates:................... Early Payment shall be applicable.
For each Calculation Period, the
Floating Rate Payer Payment Date
shall be the first Business Day prior
to the related Floating Rate Payer
Period End Date.
Floating Rate Payer Period
End Dates:............... The 25th calendar day of each month
during the Term of this Transaction,
commencing June 25, 2006 and ending
on the Termination Date, subject to
adjustment in accordance with the
Business Day Convention.
Floating Rate Option:...... USD-LIBOR-BBA
Floating Amount:........... To be determined in accordance with
the following formula:
10 * Floating Rate * Notional Amount
* Floating Rate Day Count Fraction.
Designated Maturity:....... One month
Floating Rate Day Count
Fraction:................ Actual/360
Reset Dates:............... The first day of each Calculation
Period.
Compounding:............... Inapplicable
Business Days:............. New York
Business Day Convention:... Following
Amendment to Section 2(c) of the
Agreement: Notwithstanding anything to the
contrary in Section 2(c) of the
Agreement, amounts that are payable
with respect to Calculation Periods
which end in the same calendar month
(prior to any adjustment of period
end dates) shall be netted, as
provided in Section 2(c) of the
Agreement, even if such amounts are
not due on the same payment date. For
avoidance of
2
doubt any payments pursuant to
Section 6(e) of the Agreement shall
not be subject to netting.
2. Account Details and Settlement Information:
Payments to Party A:
Citibank, New York
ABA No.: 021 000 089
Account No.: 4072-4601
Account Name: Xxxxxx Xxxxxxx Capital Services Inc.
Payments to Party B:
Xxxxx Fargo Bank, National Association
ABA No. 000-000-000
Account Name: Corporate Trust Clearing
Account No. 0000000000 for further credit to 50922501,
MSM 2006-8AR
Ref: MSM 2006-8AR
3. Fiduciary Capacity. It is expressly understood and agreed by the parties
hereto that (i) this Confirmation is executed and delivered by Xxxxx
Fargo Bank, National Association, not in its individual capacity but
solely as Securities Administrator on behalf of the Trustee under the
PSA in the exercise of the powers and authority conferred to and vested
in it thereunder, (ii) each of the representations, undertakings and
agreements herein made on behalf of the trust created under the PSA is
made and intended not as personal representation, undertaking or
agreement of the Securities Administrator, but is made and intended for
the purpose of binding only such trust and (iii) under no circumstances
shall Xxxxx Fargo Bank, National Association in its individual capacity
be personally liable for the payment of any indebtedness or expenses or
be personally liable for the breach or failure of any obligation,
representation, warranty or covenant made or undertaken under this
Confirmation.
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We are very pleased to have entered into this Transaction with you and we look
forward to completing other transactions with you in the near future.
Very truly yours,
XXXXXX XXXXXXX CAPITAL SERVICES INC.
By: /s/ Xxxxxxxxxx Xxxxxx
______________________________________
Name: Xxxxxxxxxx Xxxxxx
Title: Authorized Signatory
Party B, acting through its duly authorized signatory, hereby agrees to,
accepts and confirms the terms of the foregoing as of the Trade Date.
XXXXX FARGO BANK, NATIONAL ASSOCIATION,
acting not in its individual capacity but
solely as Securities Administrator on
behalf of XXXXXX XXXXXXX MORTGAGE LOAN
TRUST 2006-8AR
By: /s/ Xxxxxxxx X. Xxxxx
______________________________________
Name: Xxxxxxxx X. Xxxxx
Title: Vice President
4
SCHEDULE I
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Line Calculation Period NotionalAmount ($) Multiplier
--------- -------------------------- ------------------- ------------
1 5/25/2006 6/25/2006 22,389,359.19 10
2 6/25/2006 7/25/2006 21,282,043.13 10
3 7/25/2006 8/25/2006 20,228,645.70 10
4 8/25/2006 9/25/2006 19,226,542.06 10
5 9/25/2006 10/25/2006 18,273,235.10 10
6 10/25/2006 11/25/2006 17,366,349.25 10
7 11/25/2006 12/25/2006 16,503,624.57 10
8 12/25/2006 1/25/2007 15,682,911.13 10
9 1/25/2007 2/25/2007 14,902,163.63 10
10 2/25/2007 3/25/2007 14,159,436.34 10
11 3/25/2007 4/25/2007 13,452,878.21 10
12 4/25/2007 5/25/2007 12,780,728.31 10
13 5/25/2007 6/25/2007 12,141,311.44 10
14 6/25/2007 7/25/2007 11,533,033.90 10
15 7/25/2007 8/25/2007 10,954,379.61 10
16 8/25/2007 9/25/2007 10,403,906.26 10
17 9/25/2007 10/25/2007 9,880,241.77 10
18 10/25/2007 11/25/2007 9,382,080.81 10
19 11/25/2007 12/25/2007 8,908,181.64 10
20 12/25/2007 1/25/2008 8,416,212.40 10
21 1/25/2008 2/25/2008 7,944,189.87 10
22 2/25/2008 3/25/2008 7,528,369.31 10
23 3/25/2008 4/25/2008 6,969,606.52 10
24 4/25/2008 5/25/2008 6,562,572.77 10
25 5/25/2008 6/25/2008 6,220,316.57 10
26 6/25/2008 7/25/2008 5,900,426.10 10
27 7/25/2008 8/25/2008 5,532,893.67 10
28 8/25/2008 9/25/2008 5,246,478.67 10
29 9/25/2008 10/25/2008 4,963,360.56 10
30 10/25/2008 11/25/2008 4,643,801.07 10
31 11/25/2008 12/25/2008 4,400,685.72 10
32 12/25/2008 1/25/2009 4,120,519.21 10
33 1/25/2009 2/25/2009 3,866,437.38 10
34 2/25/2009 3/25/2009 3,611,556.02 10
35 3/25/2009 4/25/2009 3,083,219.30 10
36 4/25/2009 5/25/2009 2,901,454.45 10
37 5/25/2009 6/25/2009 2,741,149.07 10
38 6/25/2009 7/25/2009 2,776,617.58 10
39 7/25/2009 8/25/2009 2,689,518.48 10
40 8/25/2009 9/25/2009 2,558,446.71 10
41 9/25/2009 10/25/2009 2,433,760.38 10
42 10/25/2009 11/25/2009 2,315,148.60 10
43 11/25/2009 12/25/2009 2,202,315.56 10
44 12/25/2009 1/25/2010 2,094,979.78 10
45 1/25/2010 2/25/2010 1,988,992.09 10
46 2/25/2010 3/25/2010 1,888,121.21 10
47 3/25/2010 4/25/2010 1,792,165.04 10
48 4/25/2010 5/25/2010 1,700,884.20 10
49 5/25/2010 6/25/2010 1,614,050.95 10
50 6/25/2010 7/25/2010 1,524,060.76 10
I-1
Line Calculation Period NotionalAmount ($) Multiplier
--------- -------------------------- ------------------- ------------
51 7/25/2010 8/25/2010 1,403,153.79 10
52 8/25/2010 9/25/2010 1,300,333.64 10
53 9/25/2010 10/25/2010 1,233,037.45 10
54 10/25/2010 11/25/2010 1,166,983.87 10
55 11/25/2010 12/25/2010 1,082,734.78 10
56 12/25/2010 1/25/2011 999,212.37 10
57 1/25/2011 2/25/2011 894,325.90 10
58 2/25/2011 3/25/2011 449,579.15 10
59 4/25/2011 5/25/2011 239,430.98 10
I-2
