Common use of Cap Contract Clause in Contracts

Cap Contract. No later than the Closing Date, the Securities Administrator shall establish and maintain with itself, as agent for the Trustee, on behalf of the Supplement Interest Trust, a separate, segregated trust account (the “Cap Account”) titled, “▇▇▇▇▇ Fargo Bank, N.A. as Securities Administrator, in trust for the registered holders of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AR2, Mortgage Pass-Through Certificates—Cap Account”. Such account shall be an Eligible Account and amounts therein shall be held uninvested. For federal and state income tax purposes, the Class CE Certificateholders shall be deemed to be the owners of the Cap Account. The Cap Account shall be an “outside reserve fund” within the meaning of Treasury Regulation Section 1.860G-2(h). Upon the termination of the Trust, or the payment in full of the Class A Certificate and the Subordinate Certificates, all amounts remaining on deposit in the Cap Account shall be released by the Trust and distributed to the Class CE Certificateholders. The Cap Account shall be part of the Trust but not part of any REMIC and any payments to the holders of the Class A Certificates and the Subordinate Certificates from the Cap Account shall not be payments with respect to a “regular interest” in a REMIC within the meaning of Code Section 860G(a)(1). Upon receipt of any amounts paid under the Cap Contract, and following any distributions of Net Monthly Excess Cashflow pursuant to Section 4.1(a)(iii) above, the Securities Administrator shall deposit such amounts into the Cap Account for distribution pursuant to Section 4.1(a)(vi) above.