Trust Standing Clause Samples

Trust Standing. The Court finds that under NECA-IBEW, plaintiff only has class standing as to the five Trusts in which it purchased certificates. Here, the “nature and focus” of the action is the Trustee’s failure to perform its obligations under the PSAs for the respective Trusts.10 Each Trust has its own, distinct PSA. And although plaintiff alleges that the PSAs are “substantially similar, and impose the same duties on the Trustee” (Compl. ¶27), the structure of the Trusts means that a breach of the Trustee’s duties with respect to one Trust does not necessarily implicate the same “set of concerns” that certificate-holders in another Trust would have. Each Trust is backed by a group of mortgage loans and, critically, the set of loans underlying each Trust is unique--i.e., each loan is only “in” (or “backs the MBS of”) one Trust. (Tr. 61:13-14.) The value of a particular certificate is tied to the mortgage loans underlying the trust that issued that certificate. For example, if 9 The Court addresses plaintiff’s “class standing” in light of the Second Circuit’s decision in NECA- IBEW. However, if facts develop during discovery relevant to the class standing inquiry, they can be raised at the class certification stage.