Exhibit 4.2
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XXXXXXX XXXXX MORTGAGE INVESTORS, INC.,
as Depositor
WILMINGTON TRUST COMPANY,
as Owner Trustee
and
XXXXX FARGO BANK, N.A.,
not in the individual capacity, but solely in its capacity as Securities
Administrator, as Certificate Registrar and Certificate Paying Agent
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TRUST AGREEMENT
Dated as of June 27, 2007
Xxxxxxx Xxxxx Mortgage Backed Securities
Trust, Series 2007-2
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Trust Certificates,
Series 2007-2
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TABLE OF CONTENTS
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ARTICLE I Definitions............................................... 1
Section 1.01. Definitions............................................... 1
Section 1.02. Other Definitional Provisions............................. 1
ARTICLE II Organization.............................................. 2
Section 2.01. Name...................................................... 2
Section 2.02. Office.................................................... 2
Section 2.03. Purposes and Powers....................................... 2
Section 2.04. Appointment of Owner Trustee.............................. 3
Section 2.05. Initial Capital Contribution of Owner Trust Estate........ 3
Section 2.06. Declaration of Trust...................................... 3
Section 2.07. Liability of the Holders of the Certificates.............. 4
Section 2.08. Title to Trust Property................................... 4
Section 2.09. Situs of Trust............................................ 4
Section 2.10. Representations and Warranties of the Depositor........... 4
Section 2.11. Investment Company........................................ 5
ARTICLE III Conveyance of the Mortgage Loans; Certificates............ 5
Section 3.01. Initial Ownership......................................... 5
Section 3.02. The Certificates.......................................... 5
Section 3.03. Authentication of Certificates............................ 6
Section 3.04. Registration of and Limitations on Transfer and Exchange
of Certificates........................................... 6
Section 3.05. Mutilated, Destroyed, Lost or Stolen Certificates......... 8
Section 3.06. Persons Deemed Certificateholders......................... 9
Section 3.07. Access to List of Certificateholders' Names and
Addresses................................................. 9
Section 3.08. Maintenance of Office or Agency........................... 9
Section 3.09. Certificate Paying Agent.................................. 9
ARTICLE IV Authority and Duties of Owner Trustee..................... 11
Section 4.01. General Authority......................................... 11
Section 4.02. General Duties............................................ 11
Section 4.03. Action upon Instruction................................... 11
Section 4.04. No Duties Except as Specified under Specified Documents or
in Instructions........................................... 12
Section 4.05. Restrictions.............................................. 12
Section 4.06. Prior Notice to Certificateholders with Respect to
Certain Matters........................................... 12
Section 4.07. Action by Certificateholders with Respect to Certain
Matters................................................... 13
Section 4.08. Action by Certificateholders with Respect to Bankruptcy... 13
Section 4.09. Restrictions on Certificateholders' Power................. 13
Section 4.10. Majority Control.......................................... 13
Section 4.11. Optional Redemption....................................... 13
ARTICLE V Application of Trust Funds................................ 14
Section 5.01. Distributions............................................. 14
Section 5.02. Method of Payment......................................... 14
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TABLE OF CONTENTS
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Section 5.03. Tax Returns............................................... 14
Section 5.04. Statements to Certificateholders.......................... 15
ARTICLE VI Concerning the Owner Trustee.............................. 15
Section 6.01. Acceptance of Trusts and Duties........................... 15
Section 6.02. Furnishing of Documents................................... 17
Section 6.03. Representations and Warranties............................ 17
Section 6.04. Reliance; Advice of Counsel............................... 17
Section 6.05. Not Acting in Individual Capacity......................... 18
Section 6.06. Owner Trustee Not Liable for Certificates or Related
Documents................................................. 18
Section 6.07. Owner Trustee May Own Certificates and Notes.............. 18
Section 6.08. Payments from Owner Trust Estate.......................... 19
Section 6.09. [Reserved]................................................ 19
Section 6.10. Liability of Certificate Registrar and Certificate Paying
Agent..................................................... 19
Section 6.11. Derivative Contracts...................................... 19
ARTICLE VII Compensation of Owner Trustee............................. 20
Section 7.01. Owner Trustee's Fees and Expenses......................... 20
Section 7.02. Indemnification........................................... 20
ARTICLE VIII Termination of Trust Agreement............................ 21
Section 8.01. Termination of Trust Agreement............................ 21
ARTICLE IX Successor Owner Trustees and Additional Owner Trustees.... 22
Section 9.01. Eligibility Requirements for Owner Trustee................ 22
Section 9.02. Replacement of Owner Trustee.............................. 22
Section 9.03. Successor Owner Trustee................................... 23
Section 9.04. Merger or Consolidation of Owner Trustee.................. 23
Section 9.05. Appointment of Co-Trustee or Separate Trustee............. 24
ARTICLE X Miscellaneous............................................. 25
Section 10.01. Amendments................................................ 25
Section 10.02. No Legal Title to Owner Trust Estate...................... 27
Section 10.03. Limitations on Rights of Others........................... 27
Section 10.04. Notices................................................... 27
Section 10.05. Severability.............................................. 27
Section 10.06. Separate Counterparts..................................... 28
Section 10.07. Successors and Assigns.................................... 28
Section 10.08. No Petition............................................... 28
Section 10.09. No Recourse............................................... 28
Section 10.10. Headings.................................................. 28
Section 10.11. Governing Law............................................. 28
Section 10.12. Integration............................................... 28
Section 10.13. Obligations............................................... 28
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TABLE OF CONTENTS
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EXHIBITS
Exhibit A - Form of Certificate.......................................... A-1
Exhibit B - Certificate of Trust of Xxxxxxx Xxxxx Mortgage Backed
Securities Trust, Series 2007-2.............................. B-1
Exhibit C - Form of Rule 144A Investment Representation.................. C-1
Exhibit D - Form of Certificate of Non-Foreign Status.................... D-1
Exhibit E - Form of Investment Letter.................................... E-1
Exhibit F - Form of Transferor Certificate............................... F-1
Exhibit G - Form of ERISA Letter......................................... G-1
Exhibit H - Form of Transferee Certificate............................... H-1
Exhibit I - Form of Lender Transferor Certificate........................ I-1
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This Trust Agreement, dated as of June 27, 2007 (as amended from time to
time, this "Trust Agreement"), among Xxxxxxx Xxxxx Mortgage Investors, Inc., a
Delaware corporation, as depositor (the "Depositor"), Wilmington Trust Company,
a Delaware banking corporation, as owner trustee (the "Owner Trustee") and Xxxxx
Fargo Bank, N.A., not individually but acting solely in its capacity as
securities administrator (the "Securities Administrator"), as certificate
registrar (the "Certificate Registrar") and as certificate paying agent (the
"Certificate Paying Agent").
WITNESSETH THAT:
In consideration of the mutual agreements herein contained, the Depositor,
the Owner Trustee and the Securities Administrator, solely for purposes of its
agreement to serve as Certificate Registrar and Certificate Paying Agent, agree
as follows:
ARTICLE I
Definitions
Section 1.01. Definitions. For all purposes of this Trust Agreement, except
as otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms not otherwise defined herein shall have the meanings assigned
to such terms in Appendix A to the Indenture, dated June 27, 2007, among Xxxxxxx
Xxxxx Mortgage Backed Securities Trust, Series 2007-2, as Issuing Entity, HSBC
Bank USA, National Association, as Indenture Trustee, and Xxxxx Fargo Bank,
N.A., as Securities Administrator, which is incorporated by reference herein.
Section 1.02. Other Definitional Provisions.
(a) All terms defined in this Trust Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.
(b) As used in this Trust Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Trust Agreement or in any such certificate or other document,
and accounting terms partly defined in this Trust Agreement or in any such
certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the
definitions contained in this Trust Agreement or in any such certificate or
other document shall control.
(c) The words "hereof," "herein," "hereunder" and words of similar import
when used in this Trust Agreement shall refer to this Trust Agreement as a whole
and not to any particular provision of this Trust Agreement; Article, Section
and Exhibit references contained in this Trust Agreement are references to
Articles, Sections and Exhibits in or to this Trust Agreement unless otherwise
specified; and the term "including" shall mean "including without limitation."
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(d) The definitions contained in this Trust Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.
(e) Any agreement, instrument or statute defined or referred to herein or
in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.
ARTICLE II
Organization
Section 2.01. Name. The trust created hereby (the "Trust" or the "Issuing
Entity") shall be known as "Xxxxxxx Xxxxx Mortgage Backed Securities Trust,
Series 2007-2", in which name the Owner Trustee may conduct the business of the
Trust, make and execute contracts and other instruments on behalf of the Trust
and xxx and be sued.
Section 2.02. Office. The office of the Trust shall be in care of the Owner
Trustee at the Corporate Trust Office or at such other address in Delaware as
the Owner Trustee may designate by written notice to the Certificateholders and
the Depositor.
Section 2.03. Purposes and Powers. The purpose of the Trust is to engage in
the following activities:
(i) to issue the Notes pursuant to the Indenture and the Certificates
pursuant to this Trust Agreement and to sell the Notes and the
Certificates;
(ii) to pay the organizational, start-up and transactional expenses of
the Trust;
(iii) to assign, grant, transfer, pledge and convey the Mortgage Loans
pursuant to the Indenture and to hold, manage and distribute to the
Certificateholder pursuant to Section 5.01 herein, any portion of the
Mortgage Loans released from the Lien of, and remitted to the Trust
pursuant to the Indenture;
(iv) to enter into and perform its obligations under the Basic
Documents to which it is to be a party;
(v) if directed by holders of Certificates representing more than 50%
of the beneficial interests in the Trust, sell the Owner Trust Estate
subsequent to the discharge of the Indenture, all for the benefit of the
holders of the Certificates;
(vi) to engage in those activities, including entering into
agreements, that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith; and
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(vii) subject to compliance with the Basic Documents, to engage in
such other activities as may be required in connection with conservation of
the Owner Trust Estate and the making of distributions to the
Certificateholders and the Noteholders.
The Trust is hereby authorized, and has the power and authority, to engage in
the foregoing activities. The Trust shall not engage in any activity other than
in connection with the foregoing or other than as required or authorized by the
terms of this Trust Agreement or the Basic Documents, including but not limited
to the terms set forth in Section 10.01(d).
Section 2.04. Appointment of Owner Trustee. The Depositor hereby appoints
the Owner Trustee as trustee of the Trust effective as of the date hereof, to
have all the rights, powers and duties set forth herein.
Section 2.05. Initial Capital Contribution of Owner Trust Estate. The
Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,
as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of the date hereof, of the foregoing
contribution, which shall constitute the initial corpus of the Trust and shall
be deposited in the Certificate Distribution Account. The Trust also
acknowledges receipt of the Mortgage Loans and the rights with respect to the
representations and warranties made by the Seller under the Mortgage Loan
Purchase Agreement, as transferred to the Trust by the Depositor under the Sale
and Servicing Agreement which shall constitute the Owner Trust Estate.
Section 2.06. Declaration of Trust. The Owner Trustee hereby declares that
it shall hold the Owner Trust Estate in trust upon and subject to the conditions
set forth herein for the use and benefit of the Certificateholders, subject to
the obligations of the Trust under the Basic Documents. It is the intention of
the parties hereto that the Trust constitute a "statutory trust" under the
Statutory Trust Statute and that this Trust Agreement constitute the governing
instrument of such statutory trust. It is the intention of the parties hereto
that, for federal and state income and state and local franchise tax purposes,
(A) the Trust shall be treated as (1) disregarded as an entity separate from its
owner or (2) a qualified REIT subsidiary within the meaning of Section 856(i) of
the Code ("QRS"), for so long as 100% of the Certificates, the Class X-A Notes
and the Subordinate Notes (other than any of the Class X-A Notes and Subordinate
Notes with respect to which a "will be debt" opinion has been rendered by
nationally recognized tax counsel and furnished to the Securities Administrator)
are held by a single entity which is classified as a real estate investment
trust within the meaning of Section 856(a) of the Code ("REIT"), directly or
indirectly through one or more QRSs of such REIT or one or more entities
disregarded as entities separate from such REIT or such QRSs, and (B) the Class
I-A1 and Class I-A2 Notes shall be characterized as indebtedness to a Noteholder
other than a Noteholder which owns 100% of the Certificates, the Class X-A Notes
and the Subordinate Notes (other than any Subordinate Notes that are
characterized as indebtedness for federal income tax purposes) if the Trust is
disregarded as an entity separate from such Noteholder or is treated as a QRS of
such Noteholder, and the provisions of this Agreement shall be interpreted to
further this intention. Except as otherwise provided in this Trust Agreement,
the rights of the Certificateholders will be those of equity owners of the
Trust. Effective as of the date hereof, the Owner Trustee shall have all rights,
powers and duties set forth herein and in the Statutory Trust Statute with
respect to accomplishing the purposes of the Trust.
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Section 2.07. Liability of the Holders of the Certificates. The Holders of
the Certificates shall be jointly and severally liable directly to and shall
indemnify any injured party for all losses, claims, damages, liabilities and
expenses of the Trust and the Owner Trustee (including Expenses, to the extent
not paid out of the Owner Trust Estate) to the extent that the Holders of the
Certificates would be liable if the Trust were a corporation, and the Holders of
the Certificates were common stockholders in the corporation, under Delaware
corporate law; provided, however, that the Holders of the Certificates shall not
be liable for payments required to be made on the Notes or the Certificates, or
for any losses incurred by a Certificateholder in the capacity of an investor in
the Certificates or a Noteholder in the capacity of an investor in the Notes.
The Holders of the Certificates shall be liable for and shall promptly pay any
entity level taxes imposed on the Trust. In addition, any third party creditors
of the Trust (other than in connection with the obligations described in the
second preceding sentence for which the Holders of the Certificates shall not be
liable) shall be deemed third party beneficiaries of this paragraph. The
obligations of the Holders of the Certificates under this paragraph shall be
evidenced by the Certificates.
Section 2.08. Title to Trust Property. Legal title to the Owner Trust
Estate shall be vested at all times in the Trust as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.
Section 2.09. Situs of Trust. The Trust will be located and administered in
Delaware, Maryland, Minnesota or New York. All bank accounts maintained by the
Owner Trustee on behalf of the Trust shall be located in Delaware, Maryland,
Minnesota or New York. The Trust shall not have any employees in any state other
than Delaware; provided, however, that nothing herein shall restrict or prohibit
the Owner Trustee from having employees within or without the State of Delaware
or taking actions outside the State of Delaware in order to comply with Section
2.03. Payments will be received by the Trust only in Delaware, Maryland,
Minnesota or New York, and payments will be made by the Trust only from
Delaware, Maryland, Minnesota or New York. The only office of the Trust
maintained by the Owner Trustee will be at the Corporate Trust Office in
Delaware.
Section 2.10. Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Owner Trustee that:
(i) The Depositor is duly organized and validly existing as a
corporation in good standing under the laws of the State of Delaware, with
power and authority to own its properties and to conduct its business as
such properties are currently owned and such business is presently
conducted.
(ii) The Depositor is duly qualified to do business as a foreign
corporation in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of its
property or the conduct of its business shall require such qualifications
and in which the failure to so qualify would have a material adverse effect
on the business, properties, assets or condition (financial or other) of
the Depositor.
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(iii) The Depositor has the power and authority to execute and deliver
this Trust Agreement and to carry out its terms; the Depositor has full
power and authority to convey and assign the property to be conveyed and
assigned to and deposited with the Trust as part of the Owner Trust Estate
and the Depositor has duly authorized such conveyance and assignment and
deposit to the Trust by all necessary corporate action; and the execution,
delivery and performance of this Trust Agreement have been duly authorized
by the Depositor by all necessary corporate action.
(iv) The consummation of the transactions contemplated by this Trust
Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time) a default under, the articles of
incorporation or by-laws of the Depositor, or any indenture, agreement or
other instrument to which the Depositor is a party or by which it is bound;
nor result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other
instrument (other than pursuant to the Basic Documents); nor violate any
law or, to the best of the Depositor's knowledge, any order, rule or
regulation applicable to the Depositor of any court or of any federal or
state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties.
(v) The Trust is not required to register as an investment company
under the Investment Company Act and is not under the control of a Person
required to so register.
Section 2.11. Investment Company. Neither the Depositor nor any holder of a
Certificate shall take any action which would cause the Trust to become an
"investment company" which would be required to register under the Investment
Company Act.
ARTICLE III
Conveyance of the Mortgage Loans;
Certificates
Section 3.01. Initial Ownership. Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.01 and until the conveyance
of the Mortgage Loans pursuant to Section 2.01 of the Sale and Servicing
Agreement and the issuance of the Certificates, and thereafter except as
otherwise permitted hereunder, the Depositor shall be the sole
Certificateholder.
Section 3.02. The Certificates. The Certificates shall be issued in the
form of one or more Certificates, each representing not less than a 10%
Certificate Percentage Interest. The Certificates shall be executed on behalf of
the Issuing Entity by manual or facsimile signature of an authorized officer of
the Owner Trustee and authenticated in the manner provided in Section 3.03.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on
behalf of the Trust, shall be validly issued and entitled to the benefit of this
Trust Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and
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delivery of such Certificates or did not hold such offices at the date of
authentication and delivery of such Certificates. A Person shall become a
Certificateholder and shall be entitled to the rights and subject to the
obligations of a Certificateholder hereunder upon such Person's acceptance of a
Certificate duly registered in such Person's name, pursuant to Section 3.04.
A transferee of a Certificate shall become a Certificateholder and shall be
entitled to the rights and subject to the obligations of a Certificateholder
hereunder upon such transferee's acceptance of a Certificate duly registered in
such transferee's name pursuant to and upon satisfaction of the conditions set
forth in Section 3.04.
Section 3.03. Authentication of Certificates. The Certificate Registrar
shall cause all Certificates issued hereunder and executed by the Owner Trustee
on behalf of the Issuing Entity to be authenticated and delivered to or upon the
written order of the Depositor, signed by its chairman of the board, its
president or any vice president, without further corporate action by the
Depositor, in the authorized denomination. The Certificate shall not entitle its
holder to any benefit under this Trust Agreement or be valid for any purpose
unless executed by the Owner Trustee on behalf of the Issuing Entity and
authenticated by a certificate of authentication, substantially in the form
included in Exhibit A, signed by the Certificate Registrar or by an
authenticating agent of the Issuing Entity by manual signature; such
authentication shall constitute conclusive evidence that the Certificate shall
have been duly authenticated and delivered hereunder. The Certificates shall be
dated the date of its authentication.
Section 3.04. Registration of and Limitations on Transfer and Exchange of
Certificates. The Securities Administrator is hereby appointed as the
Certificate Registrar of the Trust. The Certificate Registrar shall keep or
cause to be kept a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided. If the Certificate Registrar resigns or is removed, the
Depositor shall appoint a successor Certificate Registrar.
Subject to satisfaction of the conditions set forth below with respect to
the Certificate, upon surrender for registration of transfer of any Certificate
at the office or agency maintained pursuant to Section 3.08, the Owner Trustee
and the Certificate Registrar shall execute, authenticate and deliver in the
name of the designated transferee or transferees, one or more new Certificates
in authorized denominations of a like aggregate amount dated the date of
authentication by the Certificate Registrar. At the option of a Holder,
Certificates may be exchanged for other Certificates of authorized denominations
of a like aggregate amount upon surrender of the Certificates to be exchanged at
the office or agency maintained pursuant to Section 3.08.
Every Certificate presented or surrendered for registration of transfer or
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Certificate Registrar duly executed by the Holder or such
Holder's attorney duly authorized in writing. Each Certificate surrendered for
registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Certificate Registrar in accordance with its customary
practice.
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No service charge shall be made for any registration of transfer or
exchange of Certificates, but the Owner Trustee or the Certificate Registrar may
require payment of a sum sufficient to cover any tax or governmental charge that
may be imposed in connection with any transfer or exchange of Certificates.
No Person shall become a Certificateholder until it shall establish its
non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9
and the Certificate of Non-Foreign Status set forth in Exhibit D hereto.
No transfer, sale, pledge or other disposition of a Certificate shall be
made unless such transfer, sale, pledge or other disposition is exempt from the
registration requirements of the Securities Act and any applicable state
securities laws or is made in accordance with said Act and laws. In the event of
any such transfer, the Certificate Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) an investment
letter in substantially the form attached hereto as Exhibit C (or in such form
and substance reasonably satisfactory to the Certificate Registrar and the
Depositor) which investment letter shall not be an expense of the Trust, the
Owner Trustee, the Certificate Registrar, the Master Servicer, the Securities
Administrator, the Seller, the Sponsor, the Servicer or the Depositor and which
investment letter states that, among other things, such transferee (a) is a
"qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (b) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Certificate
Registrar and the Depositor that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from said
Act and laws or is being made pursuant to said Act and laws, which Opinion of
Counsel shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Master Servicer, the Securities Administrator, the Seller, the
Sponsor, the Servicer or the Depositor and (b) the transferee executes a
representation letter, substantially in the form of Exhibit E to the Agreement,
and transferor executes a representation letter, substantially in the form of
Exhibit F hereto, each acceptable to and in form and substance satisfactory to
the Certificate Registrar and the Depositor certifying the facts surrounding
such transfer, which representation letters shall not be an expense of the
Trust, the Owner Trustee, the Certificate Registrar, the Master Servicer, the
Securities Administrator, the Seller, the Sponsor, the Servicer or the Depositor
and (B) the Certificate of Non-Foreign Status (in substantially the form
attached hereto as Exhibit D) acceptable to and in form and substance reasonably
satisfactory to the Certificate Registrar and the Depositor, which certificate
shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Master Servicer, the Securities Administrator, the Seller, the
Sponsor, the Servicer or the Depositor. No certification will be required in
connection with the initial transfer of any such Certificate by the Issuing
Entity to the Depositor and by the Depositor to one of its Affiliates. The
Holder of a Certificate desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trust, the Owner Trustee, the Certificate Registrar, the
Master Servicer, the Securities Administrator, the Seller, the Sponsor, the
Servicer and the Depositor against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.
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No transfer of Certificates or any interest therein shall be made to an
employee benefit plan or arrangement subject to Title I of ERISA, a plan subject
to Section 4975 of the Code, or a plan subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the foregoing provisions of ERISA or the Code
(collectively, a "Plan"), or any Person directly or indirectly acquiring the
Certificates for, on behalf of or with any assets of any such Plan.
No transfer, sale, pledge or other disposition of a Certificate or any
interest therein shall be made, and the Certificate Registrar shall refuse to
register any such transfer, sale, pledge or other disposition, unless (A) the
transferee shall have delivered to the Certificate Registrar, the Owner Trustee,
the Securities Administrator and the Indenture Trustee a certificate
substantially in the form attached hereto as Exhibit H certifying that (i) it is
a REIT within the meaning of Section 856(a) of the Code or a QRS within the
meaning of Section 856(i) of the Code or an entity disregarded as an entity
separate from a REIT or a QRS and (ii) following the transfer, 100% of the
Certificates, the Class X-A Notes and the Subordinate Notes (other than any of
the Class X-A Notes or Subordinate Notes with respect to which a "will be debt"
opinion has been rendered by nationally recognized tax counsel and furnished to
the Securities Administrator) will be owned by a single REIT, directly or
indirectly through one or more QRSs of such REIT or one or more entities
disregarded as entities separate from such REIT or such QRSs and (B) the
proposed transferor delivers to the Owner Trustee, the Certificate Registrar,
the Securities Administrator and the Indenture Trustee an Opinion of Counsel,
rendered by a law firm generally recognized to be qualified to opine concerning
the tax aspects of asset securitization, to the effect that, following such
transfer, the Trust will continue to be treated for federal income tax purposes
as a QRS; provided that, notwithstanding the foregoing, (x) any Certificates may
be pledged to secure indebtedness and may be the subject of repurchase
agreements treated by the Issuing Entity as secured indebtedness for federal
income tax purposes, and (y) any Certificates may be transferred by the related
lender under any such related loan agreement or repurchase agreement upon a
default under any such indebtedness, in which case the transferor shall deliver
to the Certificate Registrar, the Securities Administrator, the Owner Trustee
and the Indenture Trustee a certificate substantially in the form attached
hereto as Exhibit I certifying to such effect. Notwithstanding the foregoing,
the provisions of this paragraph shall not apply to the initial transfer of the
Certificates to the Depositor or any Affiliate thereof.
Section 3.05. Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any
mutilated Certificate shall be surrendered to the Certificate Registrar, or if
the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required by them to save each of them harmless, then in the absence of
notice to the Certificate Registrar or the Owner Trustee that such Certificate
has been acquired by a protected purchaser, the Owner Trustee shall execute on
behalf of the Trust and the Owner Trustee or the Certificate Registrar, shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like tenor and
denomination. In connection with the issuance of any new Certificate under this
Section 3.05, the Owner Trustee or the Certificate Registrar may require the
payment of a sum sufficient to cover any expenses of the Owner Trustee or the
Certificate Registrar (including fees and expenses of counsel) and any tax or
other governmental charge that may be imposed in connection therewith. Any
duplicate Certificate issued pursuant to this Section 3.05 shall constitute
conclusive
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evidence of ownership in the Trust, as if originally issued, whether or not the
lost, stolen or destroyed Certificate shall be found at any time.
Section 3.06. Persons Deemed Certificateholders. Prior to due presentation
of a Certificate for registration of transfer, the Owner Trustee, the
Certificate Registrar or any Certificate Paying Agent may treat the Person in
whose name any Certificate is registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 5.02 and for all other purposes whatsoever, and none of the Trust, the
Owner Trustee, the Certificate Registrar or any Certificate Paying Agent shall
be bound by any notice to the contrary.
Section 3.07. Access to List of Certificateholders' Names and Addresses.
The Certificate Registrar shall furnish or cause to be furnished to the
Depositor, the Certificate Paying Agent or the Owner Trustee, within 15 days
after receipt by the Certificate Registrar of a written request therefor from
the Depositor, the Certificate Paying Agent or the Owner Trustee, a list, in
such form as the Depositor, the Certificate Paying Agent or the Owner Trustee,
as the case may be, may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. Each Holder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of the
Trust, the Depositor, the Certificate Paying Agent, the Certificate Registrar or
the Owner Trustee accountable by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.
Section 3.08. Maintenance of Office or Agency. The Trust shall maintain an
office or offices or agency or agencies where Certificates may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Trust in respect of the Certificates and the Basic Documents may be
delivered. The Trust initially designates the Corporate Trust Office of the
Securities Administrator as its office for purposes of delivery of notices. The
Certificate Registrar shall give prompt written notice to the Depositor, the
Certificate Paying Agent, the Certificateholders of any change in the location
of the Certificate Register or any such office or agency.
Section 3.09. Certificate Paying Agent. (a) The Certificate Paying Agent
shall make distributions to Certificateholders from the Certificate Distribution
Account on behalf of the Trust in accordance with the provisions of the
Certificates and Section 5.01 hereof from payments remitted to the Certificate
Paying Agent by the Securities Administrator pursuant to Section 3.03 of the
Indenture. The Trust hereby appoints the Securities Administrator as Certificate
Paying Agent and the Securities Administrator hereby accepts such appointment
and further agrees that it will be bound by the provisions of this Trust
Agreement relating to the Certificate Paying Agent and shall:
(i) hold all sums held by it for the payment of amounts due with
respect to the Certificates in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;
(ii) give the Owner Trustee notice of any default by the Trust of
which a Responsible Officer of the Certificate Paying Agent has actual
knowledge in the making of any payment required to be made with respect to
the Certificates;
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(iii) at any time during the continuance of any such default, upon the
written request of the Owner Trustee forthwith pay to the Owner Trustee on
behalf of the Trust all sums so held in Trust by such Certificate Paying
Agent;
(iv) not resign from its position as Certificate Paying Agent except
that it shall immediately resign as Certificate Paying Agent and forthwith
pay to the Owner Trustee on behalf of the Trust all sums held by it in
trust for the payment of Certificates if at any time it ceases to meet the
standards under this Section 3.09 required to be met by the Certificate
Paying Agent at the time of its appointment;
(v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Certificates of any
applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith; and
(vi) not institute bankruptcy proceedings against the Issuing Entity
in connection with this Trust Agreement.
(b) The Trust may revoke such power and remove the Certificate Paying Agent
if it determines in its sole discretion that the Certificate Paying Agent shall
have failed to perform its obligations under this Trust Agreement in any
material respect. In the event that Xxxxx Fargo Bank, National Association shall
no longer be the Securities Administrator and the Certificate Paying Agent under
this Trust Agreement and Paying Agent under the Indenture, the Owner Trustee
shall appoint a successor to act as Certificate Paying Agent (which shall be a
bank or trust company) and which shall also be the successor Paying Agent under
the Indenture. The Owner Trustee shall cause such successor Certificate Paying
Agent or any additional Certificate Paying Agent appointed by the Owner Trustee
to execute and deliver to the Owner Trustee an instrument to the effect set
forth in Section 3.09(a) as it relates to the Certificate Paying Agent. The
Certificate Paying Agent shall return all unclaimed funds to the Trust and upon
removal of a Certificate Paying Agent such Certificate Paying Agent shall also
return all funds in its possession to the Trust. The provisions of Sections
6.01, 6.04, 6.05, 6.06, 6.07, 6.08 and 7.01 shall apply to the Certificate
Paying Agent to the same extent applicable to the Owner Trustee except where the
context requires otherwise. Any reference in this Agreement to the Certificate
Paying Agent shall include any co-paying agent unless the context requires
otherwise.
(c) The Certificate Paying Agent shall establish and maintain with itself a
trust account (the "Certificate Distribution Account") in which the Certificate
Paying Agent shall deposit, on the same day as it is received from the
Securities Administrator, each remittance received by the Certificate Paying
Agent with respect to payments made pursuant to the Indenture. The Certificate
Paying Agent shall make all distributions to Certificates, from moneys on
deposit in the Certificate Distribution Account, in accordance with Section 5.01
hereof. The funds in the Certificate Distribution Account shall be held
uninvested.
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ARTICLE IV
Authority and Duties of Owner Trustee
Section 4.01. General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Basic Documents to which the Trust is to be
a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Trust is to be a party and any
amendment or other agreement or instrument described herein, as evidenced
conclusively by the Owner Trustee's execution thereof. In addition to the
foregoing, the Owner Trustee is authorized, but shall not be obligated, to take
all actions required of the Trust pursuant to the Basic Documents.
Section 4.02. General Duties. It shall be the duty of the Owner Trustee to
discharge (or cause to be discharged) all of its responsibilities pursuant to
the terms of this Trust Agreement and the Basic Documents to which it is a party
and to administer the Trust in the interest of the Certificateholders, subject
to the Basic Documents and in accordance with the provisions of this Trust
Agreement.
Section 4.03. Action upon Instruction. (a) Subject to Article IV and in
accordance with the terms of the Basic Documents, the Certificateholders may by
written instruction direct the Owner Trustee in the management of the Trust.
Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to Article IV.
(b) Notwithstanding the foregoing, the Owner Trustee shall not be required
to take any action hereunder or under any Basic Document if the Owner Trustee
shall have reasonably determined, or shall have been advised by counsel, that
such action is likely to result in liability on the part of the Owner Trustee or
is contrary to the terms hereof or of any Basic Document or is otherwise
contrary to law.
(c) Whenever the Owner Trustee is required to decide between alternative
courses of action permitted or required by the terms of this Trust Agreement or
under any Basic Document, or in the event that the Owner Trustee is unsure as to
the application of any provision of this Trust Agreement or any Basic Document
or any such provision is ambiguous as to its application, or is, or appears to
be, in conflict with any other applicable provision, or in the event that this
Trust Agreement permits any determination by the Owner Trustee or is silent or
is incomplete as to the course of action that the Owner Trustee is required to
take with respect to a particular set of facts, the Owner Trustee shall promptly
give notice (in such form as shall be appropriate under the circumstances) to
the Certificateholders requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Certificateholders, the Owner Trustee shall
not be liable on account of such action to any Person. If the Owner Trustee
shall not have received appropriate instruction within 10 days of such notice
(or within such shorter period of time as reasonably may be specified in such
notice or may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action not inconsistent with this
Trust Agreement or the Basic Documents, as it shall deem to be in the best
interests of the Certificateholders, and the Owner Trustee shall have no
liability to any Person for such action or inaction.
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Section 4.04. No Duties Except as Specified under Specified Documents or in
Instructions. The Owner Trustee shall not have any duty or obligation to manage,
make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly provided (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Trust Agreement, (ii) in accordance with the Basic
Documents and (iii) in accordance with any document or instruction delivered to
the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations
shall be read into this Trust Agreement or any Basic Document against the Owner
Trustee. The Owner Trustee shall have no responsibility for filing any financing
or continuation statement in any public office at anytime or to otherwise
perfect or maintain the perfection of any security interest or lien granted to
it hereunder or to prepare or file any Securities and Exchange Commission filing
for the Trust or to record this Trust Agreement or any Basic Document. The Owner
Trustee nevertheless agrees that it will, at its own cost and expense, promptly
take all action as may be necessary to discharge any liens on any part of the
Owner Trust Estate that result from actions by, or claims against, the Owner
Trustee that are not related to the ownership or the administration of the Owner
Trust Estate.
Section 4.05. Restrictions. (a) The Owner Trustee or the Depositor (or an
Affiliate thereof) shall not take any action (x) that is inconsistent with the
purposes of the Trust set forth in Section 2.03, (y) that, to the actual
knowledge of the Owner Trustee based on an Opinion of Counsel rendered by a law
firm generally recognized to be qualified to opine concerning the tax aspects of
asset securitization, would result in the Trust becoming taxable as a
corporation for federal income tax purposes or failing to maintain its status as
a disregarded entity or a QRS (as defined above) or (z) would result in the
amendment or modification of the Basic Documents or this Trust Agreement. The
Certificateholders shall not direct the Owner Trustee to take action that would
violate the provisions of this Section 4.05.
(b) Subject to the proviso in the last paragraph of Section 3.04 hereof,
the Owner Trustee shall not convey or transfer any of the Trust's properties or
assets, including those included in the Owner Trust Estate, to any person unless
(a) it shall have received an Opinion of Counsel rendered by a law firm
generally recognized to be qualified to opine concerning the tax aspects of
asset securitization to the effect that such transaction will not have any
material adverse tax consequence to the Trust or any Certificateholder and (b)
such conveyance or transfer shall not violate the provisions of Section 3.12(b)
of the Indenture.
Section 4.06. Prior Notice to Certificateholders with Respect to Certain
Matters. With respect to the following matters, the Owner Trustee shall not take
action unless at least 30 days before the taking of such action, the Owner
Trustee shall have notified the Certificateholders in writing of the proposed
action and the Certificateholders shall not have notified the Owner Trustee in
writing prior to the 30th day after such notice is given that such
Certificateholders have withheld consent or provided alternative direction:
(a) the initiation of any claim or lawsuit by the Trust (except claims or
lawsuits brought in connection with the collection of cash distributions due and
owing under the Mortgage Loans) and the compromise of any action, claim or
lawsuit brought by or against the
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Trust (except with respect to the aforementioned claims or lawsuits for
collection of cash distributions due and owing under the Mortgage Loans);
(b) the election by the Trust to file an amendment to the Certificate of
Trust (unless such amendment is required to be filed under the Statutory Trust
Statute);
(c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;
(d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholders;
and
(e) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement
of a successor Certificate Registrar or Certificate Paying Agent or the consent
to the assignment by the Note Registrar, Paying Agent, Indenture Trustee,
Certificate Registrar or Certificate Paying Agent of its obligations under the
Indenture or this Trust Agreement, as applicable.
Section 4.07. Action by Certificateholders with Respect to Certain Matters.
The Owner Trustee shall not have the power, except upon the direction of the
Certificateholders to, except as expressly provided in the Basic Documents, sell
the Mortgage Loans after the termination of the Indenture. The Owner Trustee
shall take the actions referred to in the preceding sentence only upon written
instructions signed by the Certificateholders.
Section 4.08. Action by Certificateholders with Respect to Bankruptcy. The
Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the unanimous prior approval of all
Certificateholders and the consent of the Owner Trustee and the delivery to the
Owner Trustee by each such Certificateholder of a certificate certifying that
such Certificateholder reasonably believes that the Trust is insolvent. This
paragraph shall survive for one year following termination of this Trust
Agreement.
Section 4.09. Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic
Documents or would be contrary to Section 2.03, nor shall the Owner Trustee be
obligated to follow any such direction, if given.
Section 4.10. Majority Control. Except as expressly provided herein, any
action that may be taken by the Certificateholders under this Trust Agreement
may be taken by the Majority Certificateholder. Except as expressly provided
herein, any written notice of the Certificateholders delivered pursuant to this
Trust Agreement shall be effective if signed by Holders of Certificates
evidencing not less than a majority Percentage Interest of the Certificates at
the time of the delivery of such notice.
Section 4.11. Optional Redemption. Upon receipt of written instructions
provided to the Securities Administrator by the Majority Certificateholder, the
Issuing Entity shall redeem the Notes in accordance with Section 8.06 of the
Indenture and the Securities Administrator shall
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provide all necessary notices on behalf of the Issuing Entity to effect the
foregoing, provided that such Holder shall deposit with the Securities
Administrator an amount equal to the aggregate redemption price specified under
Section 8.06 of the Indenture. The Issuing Entity shall not have the power to
exercise the right to redeem the Notes pursuant to Section 8.06 of the
Indenture, except as provided above.
ARTICLE V
Application of Trust Funds
Section 5.01. Distributions. (a) On each Payment Date, the Certificate
Paying Agent shall in accordance with the directions of the Securities
Administrator given pursuant to the Indenture distribute to the
Certificateholders, on a pro rata basis based on the Certificate Percentage
Interests thereof, all funds on deposit in the Certificate Distribution Account
and available therefor (as provided in Section 3.03 of the Indenture) for such
Payment Date as reduced by any amount owing to the Owner Trustee hereunder and
any Expenses of the Trust remaining unpaid.
(b) In the event that any withholding tax is imposed on the distributions
(or allocations of income) to a Certificateholder, such tax shall reduce the
amount otherwise distributable to the Certificateholder in accordance with this
Section 5.01. The Certificate Paying Agent is hereby authorized and directed to
retain or cause to be retained from amounts otherwise distributable to the
Certificateholders sufficient funds for the payment of any tax that is legally
owed by the Trust (but such authorization shall not prevent the Owner Trustee
from contesting any such tax in appropriate proceedings, and withholding payment
of such tax, if permitted by law, pending the outcome of such proceedings). The
amount of any withholding tax imposed with respect to a Certificateholder shall
be treated as cash distributed to such Certificateholder at the time it is
withheld by the Certificate Paying Agent and remitted to the appropriate taxing
authority. If there is a possibility that withholding tax is payable with
respect to a distribution (such as a distribution to a non-U.S.
Certificateholder), the Certificate Paying Agent may in its sole discretion
withhold such amounts in accordance with this paragraph (b).
(c) Distributions to Certificateholders shall be subordinated to the
creditors of the Trust, including the Noteholders.
Section 5.02. Method of Payment. Subject to Section 8.01(c), distributions
required to be made to Certificateholders on any Payment Date as provided in
Section 5.01 shall be made to each Certificateholder of record on the preceding
Record Date by wire transfer, in immediately available funds, to the account of
such Holder at a bank or other entity having appropriate facilities therefor, if
such Certificateholder shall have provided to the Certificate Registrar
appropriate written instructions at least five Business Days prior to such
Payment Date or, if not, by check mailed to such Certificateholder at the
address of such Holder appearing in the Certificate Register.
Section 5.03. Tax Returns. The Seller shall (a) maintain (or cause to be
maintained) the books of the Trust on a calendar year basis using the accrual
method of accounting, (b) deliver to the Securities Administrator to be
forwarded to each Certificateholder as may be required by the
14
Code and applicable Treasury regulations, such information as may be required to
enable each Certificateholder to prepare its federal and state income tax
returns, (c) prepare and file or cause to be prepared and filed such tax returns
relating to the Trust as may be required by the Code and applicable Treasury
regulations (making such elections as may from time to time be required or
appropriate under any applicable state or federal statutes, rules or
regulations) and (d) collect or cause to be collected any withholding tax as
described in and in accordance with Section 5.01 of this Trust Agreement with
respect to income or distributions to Certificateholders and prepare or cause to
be prepared the appropriate forms relating thereto. The Issuing Entity hereby
grants permission to the Seller to sign, to the extent permitted by law, all tax
and information returns prepared by the Seller pursuant to this Section 5.03 at
the request of the Seller, and in doing so the Owner Trustee and the
Certificateholders shall rely entirely upon, and shall have no liability for
information or calculations provided by, the Seller.
Section 5.04. Statements to Certificateholders. On each Payment Date, the
Securities Administrator shall make available to each Certificateholder the
statement or statements provided to the Owner Trustee by the Securities
Administrator pursuant to Section 7.04 of the Indenture with respect to such
Payment Date.
ARTICLE VI
Concerning the Owner Trustee
Section 6.01. Acceptance of Trusts and Duties. The Owner Trustee accepts
the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Trust Agreement. The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually received by each of them constituting part of the Owner Trust Estate
upon the terms of the Basic Documents and this Trust Agreement. The Owner
Trustee shall not be answerable or accountable hereunder or under any Basic
Document under any circumstances, except (i) for its own willful misconduct,
gross negligence or bad faith or grossly negligent failure to act or (ii) in the
case of the inaccuracy of any representation or warranty contained in Section
6.03 expressly made by the Owner Trustee. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):
(a) The Owner Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in accordance with the instructions of the
Certificateholders or any other Person permitted under this Trust Agreement;
(b) No provision of this Trust Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights, duties or powers
hereunder or under any Basic Document if the Owner Trustee shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured or provided to it;
(c) Under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Basic Documents, including
the principal of and interest on the Notes;
15
(d) The Owner Trustee shall not be responsible for or in respect of the
validity or sufficiency of this Trust Agreement or for the due execution hereof
by the Depositor or any other Person or for the form, character, genuineness,
sufficiency, value or validity of any of the Owner Trust Estate, or for or in
respect of the validity or sufficiency of the Basic Documents, the Notes, the
Certificates and the Owner Trustee shall in no event assume or incur any
liability, duty, or obligation to any Noteholder or to any Certificateholder,
other than as expressly provided for herein or expressly agreed to in the Basic
Documents;
(e) The execution, delivery, authentication and performance by it of this
Trust Agreement will not require the authorization, consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other
action with respect to, any governmental authority or agency;
(f) The Owner Trustee shall not be liable for the default or misconduct of
the Depositor, Indenture Trustee, Certificate Registrar, Certificate Paying
Agent, Securities Administrator or the Master Servicer under any of the Basic
Documents or otherwise and the Owner Trustee shall have no obligation or
liability to perform the obligations of the Trust or the Owner Trustee under
this Trust Agreement or the other Basic Documents that are required to be
performed by the Depositor, Indenture Trustee, Certificate Registrar,
Certificate Paying Agent, Securities Administrator or the Master Servicer under
any of the Basic Documents or otherwise.
(g) The Owner Trustee shall be under no obligation to exercise any of the
rights or powers vested in it or duties imposed by this Trust Agreement, or to
institute, conduct or defend any litigation under this Trust Agreement or
otherwise or in relation to this Trust Agreement or any Basic Document, at the
request, order or direction of any of the Certificateholders, unless such
Certificateholders have offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any discretionary act enumerated in this Trust Agreement or in any
Basic Document shall not be construed as a duty, and the Owner Trustee shall not
be answerable for other than its gross negligence or willful misconduct in the
performance of any such act.
(h) In no event shall the Owner Trustee be liable for any damages in the
nature of special, indirect or consequential damages, however styled, including,
without limitation, lost profits, or for any losses due to forces beyond the
control of the Owner Trustee, including, without limitation, strikes, work
stoppages, acts of war or terrorism, insurrection, revolution, nuclear or
natural catastrophes or acts of God and interruptions, loss or malfunctions of
utilities, communications or computer (software and hardware) services provided
to the Owner Trustee by third parties.
Section 6.02. Furnishing of Documents. The Owner Trustee shall furnish to
the Certificateholders promptly upon receipt of a written reasonable request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Trust under the Basic Documents.
Section 6.03. Representations and Warranties. The Owner Trustee hereby
represents and warrants to the Depositor, for the benefit of the
Certificateholders, that:
16
(a) It is a banking corporation duly organized and validly existing in good
standing under the laws of the State of Delaware. It has all requisite corporate
power and authority to execute, deliver and perform its obligations under this
Trust Agreement;
(b) It has taken all corporate action necessary to authorize the execution
and delivery by it of this Trust Agreement, and this Trust Agreement will be
executed and delivered by one of its officers who is duly authorized to execute
and deliver this Trust Agreement on its behalf;
(c) Neither the execution nor the delivery by it of this Trust Agreement,
nor the consummation by it of the transactions contemplated hereby nor
compliance by it with any of the terms or provisions hereof will contravene any
federal or Delaware law, governmental rule or regulation governing the banking
or trust powers of the Owner Trustee or any judgment or order binding on it, or
constitute any default under its charter documents or bylaws or any indenture,
mortgage, contract, agreement or instrument to which it is a party or by which
any of its properties may be bound;
(d) This Trust Agreement assuming due authorization, execution and delivery
by the Owner Trustee and the Depositor, constitutes a valid, legal and binding
obligation of the Owner Trustee, enforceable against it in accordance with the
terms hereof subject to applicable bankruptcy, insolvency, reorganization,
moratorium and other laws affecting the enforcement of creditors' rights
generally and to general principles of equity, regardless of whether such
enforcement is considered in a proceeding in equity or at law;
(e) The Owner Trustee is not in default with respect to any order or decree
of any court or any order, regulation or demand of any Federal, state, municipal
or governmental agency, which default might have consequences that would
materially and adversely affect the condition (financial or other) or operations
of the Owner Trustee or its properties or might have consequences that would
materially adversely affect its performance hereunder; and
(f) No litigation is pending or, to the best of the Owner Trustee's
knowledge, threatened against the Owner Trustee which would prohibit its
entering into this Trust Agreement or performing its obligations under this
Trust Agreement.
Section 6.04. Reliance; Advice of Counsel. (a) The Owner Trustee shall
incur no liability to anyone in acting upon any signature, instrument, notice,
resolution, request, consent, order, certificate, report, opinion, note, or
other document or paper believed by it to be genuine and believed by it to be
signed by the proper party or parties. The Owner Trustee may accept a certified
copy of a resolution of the board of directors or other governing body of any
corporate party as conclusive evidence that such resolution has been duly
adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a
certificate, signed by the president or any vice president or by the treasurer
or other authorized officers of the relevant party, as to such fact or matter
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance thereon.
17
(b) In the exercise or administration of the Trust hereunder and in the
performance of its duties and obligations under this Trust Agreement or the
Basic Documents, the Owner Trustee (i) may act directly or through its agents,
attorneys, custodians or nominees (including persons acting under a power of
attorney) pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents,
attorneys, custodians or nominees (including persons acting under a power of
attorney) if such persons have been selected by the Owner Trustee with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it. The
Owner Trustee shall not be liable for anything done, suffered or omitted in good
faith by it in accordance with the opinion or advice of any such counsel,
accountants or other such Persons and not contrary to this Trust Agreement or
any Basic Document.
Section 6.05. Not Acting in Individual Capacity. Except as provided in this
Article VI, in accepting the trusts hereby created Wilmington Trust Company acts
solely as Owner Trustee hereunder, and all Persons having any claim against the
Owner Trustee by reason of the transactions contemplated by this Trust Agreement
or any Basic Document shall look only to the Owner Trust Estate for payment or
satisfaction thereof.
Section 6.06. Owner Trustee Not Liable for Certificates or Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures of the Owner Trustee on the Certificates) shall not be taken as the
statements of the Owner Trustee, and the Owner Trustee assumes no responsibility
for the correctness thereof. The Owner Trustee makes no representations as to
the validity or sufficiency of this Trust Agreement, of any Basic Document or of
the Certificates (other than the signatures of the Owner Trustee on the
Certificates) or the Notes, or of any Related Documents, or of MERS or the
MERS(R) System. The Owner Trustee shall at no time have any responsibility or
liability with respect to the sufficiency of the Owner Trust Estate or its
ability to generate the payments to be distributed to Certificateholders under
this Trust Agreement or the Noteholders under the Indenture, including
compliance by the Depositor or the Seller with any warranty or representation
made under any Basic Document or in any related document or the accuracy of any
such warranty or representation, or any action of the Certificate Paying Agent,
the Certificate Registrar, the Indenture Trustee or the Securities Administrator
taken in the name of the Owner Trustee.
Section 6.07. Owner Trustee May Own Certificates and Notes. The Owner
Trustee in its individual or any other capacity may, subject to Section 3.04,
become the owner or pledgee of Certificates or Notes and may deal with the
Depositor, the Seller, the Certificate Paying Agent, the Certificate Registrar
and the Indenture Trustee in transactions with the same rights as it would have
if it were not Owner Trustee.
Section 6.08. Payments from Owner Trust Estate. All payments to be made by
the Owner Trustee under this Trust Agreement or any of the Basic Documents to
which the Owner Trustee is a party shall be made only from the income and
proceeds of the Owner Trust Estate or from other amounts required to be provided
by the Certificateholders and only to the extent that the Owner Trust shall have
received income or proceeds from the Owner Trust Estate or the
Certificateholders to make such payments in accordance with the terms hereof.
Wilmington Trust Company, in its individual capacity, shall not be liable for
any amounts payable under this Trust Agreement or any of the Basic Documents to
which the Owner Trustee is a party.
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Section 6.09. [Reserved].
Section 6.10. Liability of Certificate Registrar and Certificate Paying
Agent. All provisions affording protection or rights to or limiting the
liability of the Owner Trustee, including the provisions of this Agreement
permitting the Owner Trustee to resign, merge or consolidate, shall inure as
well to the Certificate Registrar and Certificate Paying Agent.
Section 6.11. Derivative Contracts. (a) At the direction of the Majority
Certificateholder, the Indenture Trustee shall, on behalf of the Owner Trust
Estate, enter into special derivative contracts for the benefit of the
Certificates. Any acquisition of a special derivative contract shall be
accompanied by (i) an appropriate amendment to this Agreement, (ii) any Opinion
of Counsel required by Section 10.01, (iii) confirmation from each Rating Agency
that the acquisition will not cause the downgrade, withdrawal or suspension of
the rating on any Note and (iv) the consent of the Majority Certificateholder to
the acquisition of such special derivative contract.
(b) All collections, proceeds and other amounts in respect of the special
derivative contracts payable by the special derivative counterparty shall be
distributed to the owner trust certificates on the Payment Date following
receipt thereof by the Certificate Paying Agent on behalf of the Indenture
Trustee.
(c) Any special derivative contract that provides for any payment
obligation on the part of the Owner Trust Estate must (i) be without recourse to
the assets of the Owner Trust Estate, (ii) contain a non-petition covenant
provision from the special derivative counterparty, (iii) limit payment dates
thereunder to Payment Dates, and (iv) contain a provision limiting any cash
payments due to the special derivative counterparty on any day under such
special derivative contract solely to funds available therefor in the
Certificate Distribution Account available to make payments to the
Certificateholders on such Payment Date.
(d) Each special derivative contract must (i) provide for the direct
payment of any amounts by the special derivative counterparty thereunder to the
Certificate Distribution Account at least one Business Day prior to the related
Payment Date, (ii) contain an assignment of all of the Owner Trust Estate's
rights (but none of its obligations) under such special derivative contract to
the Indenture Trustee on behalf of the Certificateholders and shall include an
express consent to the special derivative counterparty to such assignment, (iii)
provide that in the event of the occurrence of an Event of Default, such special
derivative contract shall terminate upon the direction of the Majority
Certificateholder, and (iv) prohibit the special derivative counterparty from
"setting-off" or "netting" other obligations of the Owner Trust Estate and its
Affiliates against such special derivative counterparty's payment obligations
thereunder.
ARTICLE VII
Compensation of Owner Trustee
Section 7.01. Owner Trustee's Fees and Expenses. The Owner Trustee shall
receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof in a separate side agreement (the
"Fee Agreement") and the Owner Trustee shall be
19
reimbursed by the Depositor or the Issuing Entity for its reasonable expenses
hereunder and under the Basic Documents, including the reasonable compensation,
expenses and disbursements of such agents, representatives, experts and counsel
as the Owner Trustee may reasonably employ in connection with the exercise and
performance of its rights and its duties hereunder and under the Basic
Documents. The amount of the Owner Trustee's Fee shall be paid pursuant to the
Fee Agreement and all amounts owing to the Owner Trustee hereunder in excess of
such amount shall be paid pursuant to the Fee Agreement or as provided in
Section 5.01 hereof.
Section 7.02. Indemnification. The Depositor shall indemnify, defend and
hold harmless the Owner Trustee and its respective successors, assigns, agents
and servants (collectively, the "Indemnified Parties") from and against, any and
all liabilities, obligations, losses, damages, taxes, claims, actions and suits,
and any and all reasonable costs, expenses and disbursements (including
reasonable legal fees and expenses) of any kind and nature whatsoever
(collectively, "Expenses") which may at any time be imposed on, incurred by, or
asserted against any Indemnified Party in any way relating to or arising out of
this Trust Agreement, the Basic Documents, the Owner Trust Estate, the
administration of the Owner Trust Estate or the action or inaction of the Owner
Trustee, hereunder, provided, that:
(i) the Depositor shall not be liable for or required to indemnify an
Indemnified Party, as applicable, from and against Expenses arising or
resulting from such Indemnified Party's own willful misconduct, gross
negligence or bad faith or, as to the Owner Trustee, as a result of any
inaccuracy of a representation or warranty of the Owner Trustee contained
in Section 6.03 expressly made by the Owner Trustee;
(ii) with respect to any such claim, the Indemnified Party shall have
given the Depositor written notice thereof promptly after the Indemnified
Party shall have actual knowledge thereof; provided, however, that failure
to give such notice shall not affect the indemnification of the Indemnified
Party except to the extent the Depositor is materially prejudiced by such
failure;
(iii) while maintaining control over its own defense, the Depositor
shall consult with the Indemnified Party in preparing such defense; and
(iv) notwithstanding anything in this Agreement to the contrary, the
Depositor shall not be liable for settlement of any claim by an Indemnified
Party entered into without the prior consent of the Depositor which consent
shall not be unreasonably withheld.
The indemnities contained in this Section shall survive the resignation or
removal of the Owner Trustee or the termination of this Trust Agreement. In the
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section 7.02, the Owner Trustee's, the Certificate Registrar's
or the Certificate Paying Agent's choice of legal counsel, if other than the
legal counsel retained by the Owner Trustee, the Certificate Registrar or the
Certificate Paying Agent in connection with the execution and delivery of this
Trust Agreement, shall be subject to the approval of the Depositor, which
approval shall not be unreasonably withheld. In addition, upon written notice to
the Owner Trustee and with the consent of the
20
Owner Trustee which consent shall not be unreasonably withheld, the Depositor
has the right to assume the defense of any claim, action or proceeding against
the Owner Trustee.
ARTICLE VIII
Termination of Trust Agreement
Section 8.01. Termination of Trust Agreement. (a) This Trust Agreement
(other than Article VII and Section 10.08) shall terminate and the Trust shall
dissolve, wind up and terminate in accordance with Section 3808 of the Statutory
Trust Statute and be of no further force or effect upon the earlier of (i) the
final distribution of all moneys or other property or proceeds of the Owner
Trust Estate in accordance with the terms of the Indenture and this Trust
Agreement and (ii) the distribution of all of the assets of the Owner Trust
Estate, in accordance with written instructions provided to the Certificate
Paying Agent by the Majority Certificateholder, following the optional
redemption of the Notes effected by the Majority Certificateholder pursuant to
Section 8.06 of the Indenture; provided in each case that all amounts owing to
the Noteholders to the extent payable from the Owner Trust Estate or proceeds
thereof have been paid in full and that all obligations under the Indenture have
been discharged. The bankruptcy, liquidation, dissolution, death or incapacity
of any Certificateholder shall not (x) operate to terminate this Trust Agreement
or the Trust or (y) entitle such Certificateholder's legal representatives or
heirs to claim an accounting or to take any action or proceeding in any court
for a partition or winding up of all or any part of the Trust or the Owner Trust
Estate or (z) otherwise affect the rights, obligations and liabilities of the
parties hereto.
(b) Except as provided in Section 8.01(a), the Depositor shall not be
entitled to revoke or terminate the Trust.
(c) Notice of any termination of the Trust, specifying the Payment Date
upon which Certificateholders shall surrender their Certificates to the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate Paying Agent by letter to Certificateholders
mailed within five Business Days of receipt of notice of the final payment on
the Notes from the Securities Administrator, stating (i) the Payment Date upon
or with respect to which final payment of the Certificates shall be made upon
presentation and surrender of the Certificates at the office of the Certificate
Paying Agent therein designated, (ii) the amount of any such final payment and
(iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Certificate Payment Agent therein specified.
The Certificate Paying Agent shall give such notice to the Owner Trustee and the
Certificate Registrar at the time such notice is given to Certificateholders.
Upon presentation and surrender of the Certificates, the Certificate Paying
Agent shall cause to be distributed to Certificateholders amounts distributable
on such Payment Date pursuant to Section 5.01.
In the event that all of the Certificateholders shall not surrender their
Certificates for cancellation within six months after the date specified in the
above mentioned written notice, the Certificate Paying Agent shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. Subject to applicable laws with respect to escheat of funds, if within
one year following the
21
Payment Date on which final payment of the Certificates was to have been made
pursuant to Section 3.03 of the Indenture, all the Certificates shall not have
been surrendered for cancellation, the Certificate Paying Agent may take
appropriate steps, or may appoint an agent to take appropriate steps, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Trust Agreement. Any funds remaining in the Certificate
Distribution Account after exhaustion of such remedies shall be distributed by
the Certificate Paying Agent to the Depositor.
(d) Upon the winding up of the Trust and its termination, the Owner Trustee
shall, at the direction and expense of the Seller, cause the Certificate of
Trust to be cancelled by filing a certificate of cancellation with the Secretary
of State in accordance with the provisions of Section 3810(c) of the Statutory
Trust Statute.
ARTICLE IX
Successor Owner Trustees and Additional Owner Trustees
Section 9.01. Eligibility Requirements for Owner Trustee. The Owner Trustee
shall at all times be a corporation satisfying the provisions of Section 3807(a)
of the Statutory Trust Statute; authorized to exercise corporate trust powers;
having a combined capital and surplus of at least $50,000,000 and subject to
supervision or examination by federal or state authorities; and having (or
having a parent that has) a rating of at least Baa3 by Xxxxx'x and/or at least
BBB- by Fitch or is otherwise acceptable to the Rating Agencies. If such
corporation shall publish reports of condition at least annually pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purpose of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 9.01, the Owner Trustee shall resign immediately in the manner and
with the effect specified in Section 9.02.
Section 9.02. Replacement of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving 30 days
prior written notice thereof to the Depositor. Upon receiving such notice of
resignation, the Depositor shall promptly appoint a successor Owner Trustee, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Owner Trustee and to the successor Owner Trustee. If
no successor Owner Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.
If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 9.01 and shall fail to resign after written
request therefor by the Depositor, or if at any time the Owner Trustee shall be
legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver
of the Owner Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Owner Trustee or of its property or
affairs for
22
the purpose of rehabilitation, conservation or liquidation, then the Depositor
may remove the Owner Trustee.
Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee. The Depositor shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.
Section 9.03. Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Indenture Trustee and to its predecessor Owner Trustee an instrument accepting
such appointment under this Trust Agreement, and thereupon the resignation or
removal of the predecessor Owner Trustee shall become effective, and such
successor Owner Trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor under this Trust Agreement, with like effect as if originally named
as Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees
and expenses deliver to the successor Owner Trustee all documents and statements
and monies held by it under this Trust Agreement; and the predecessor Owner
Trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties and obligations.
No successor Owner Trustee shall accept appointment as provided in this
Section 9.03 unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.
Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section 9.03, the Owner Trustee shall mail notice thereof to all
Certificateholders, the Indenture Trustee, the Noteholders and the Rating
Agencies.
Section 9.04. Merger or Consolidation of Owner Trustee. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such Person shall be eligible pursuant to Section 9.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.
Section 9.05. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Trust Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Owner Trust Estate may at the time be located, the Owner Trustee
shall have the power and shall execute and deliver all instruments to appoint
one or more Persons to act as co-trustee, jointly with the Owner Trustee, or as
separate trustee or trustees, of all or any part of the Owner Trust Estate, and
to vest in such Person, in
23
such capacity, such title to the Trust or any part thereof and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Owner Trustee may consider necessary or desirable. No co-trustee
or separate trustee under this Trust Agreement shall be required to meet the
terms of eligibility as a successor Owner Trustee pursuant to Section 9.01 and
no notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 9.03.
Each separate trustee and co-trustee shall, to the extent permitted by law,
be appointed and act subject to the following provisions and conditions:
(a) All rights, powers, duties and obligations conferred or imposed upon
the Owner Trustee shall be conferred upon and exercised or performed by the
Owner Trustee and such separate trustee or co-trustee jointly (it being
understood that such separate trustee or co-trustee is not authorized to act
separately without the Owner Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are
to be performed, the Owner Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the Owner Trust Estate or any
portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of
the Owner Trustee;
(b) No trustee under this Trust Agreement shall be personally liable by
reason of any act or omission of any other trustee under this Trust Agreement;
and
(c) The Owner Trustee may at any time accept the resignation of or remove
any separate trustee or co-trustee.
Any notice, request or other writing given to the Owner Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Trust Agreement and the
conditions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Trust Agreement, specifically including every provision of this Trust
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Owner Trustee. Each such instrument shall be filed with the
Owner Trustee.
Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Trust Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor co-trustee or separate trustee.
24
ARTICLE X
Miscellaneous
Section 10.01. Amendments. (a) This Trust Agreement may be amended from
time to time by the parties hereto as specified in this Section, provided that
any amendment, except as provided in subparagraph (e) below, be accompanied by
an Opinion of Counsel addressed to the Owner Trustee, the Certificate Registrar
and the Certificate Paying Agent and obtained by the Depositor to the effect
that such amendment complies with the provisions of this Section. No amendment
to this Trust Agreement shall be made that would change the taxable status of
the Trust as either (A) a disregarded entity separate from its owner or (B) a
QRS, as provided for in Section 2.06 herein.
(b) If the purpose of the amendment (as detailed therein) is to correct any
mistake, eliminate any inconsistency, cure any ambiguity or deal with any matter
not covered (i.e. to give effect to the intent of the parties and, if
applicable, to the expectations of the Holders), it shall not be necessary to
obtain the consent of any Noteholders or Certificateholders, but the Owner
Trustee, the Certificate Registrar and the Certificate Paying Agent shall be
furnished with an Opinion of Counsel obtained by the Depositor to the effect
that such action will not adversely affect in any material respect the interests
of any Noteholders or Certificateholders.
(c) If the purpose of the amendment is to prevent the imposition of any
federal or state taxes at any time that any Security is outstanding, it shall
not be necessary to obtain the consent of any Noteholders or Certificateholders,
but the Owner Trustee, the Certificate Registrar and the Certificate Paying
Agent shall be furnished with an Opinion of Counsel obtained by the Depositor
that such amendment is necessary or helpful to prevent the imposition of such
taxes and is not materially adverse to any Noteholders or Certificateholders.
(d) If the purpose of the amendment is to add or eliminate or change any
provision of the Trust Agreement other than as contemplated in (b) and (c)
above, the amendment shall require (A) an Opinion of Counsel obtained by the
Depositor to the effect that such action will not adversely affect in any
material respect the interests of any Noteholders or Certificateholders and (B)
the consent of Holders of Certificates evidencing a majority Percentage Interest
of the Certificates; provided, however, that no such amendment shall (i) reduce
in any manner the amount of, or delay the timing of, payments received that are
required to be distributed on any Certificate without the consent of the related
Certificateholder or (ii) reduce the aforesaid percentage of Certificates the
Holders of which are required to consent to any such amendment, without the
consent of the Holders of all such Certificates then outstanding.
Notwithstanding the foregoing, the Issuing Entity, at the direction of the
Majority Certificateholder, may amend Section 2.03 hereof. Any amendment of
Section 2.03 hereof shall be accompanied by (i) an appropriate amendment to the
applicable Agreement, (ii) any Opinion of Counsel reasonably requested by the
Underwriter, the Rating Agencies, the Indenture Trustee and the Securities
Administrator, (iii) written confirmation from the Rating Agencies that such
amendment will not result in the rating of any Note to be downgraded, withdrawn
or suspended, and (iv) the consent of the Majority Certificateholder to the
amendment of such Section 2.03.
25
(e) If the purpose of the amendment is to provide for the holding of any of
the Certificates in book-entry form, it shall require the consent of Holders of
all such Certificates then outstanding; provided, that the Opinion of Counsel
specified in subparagraph (a) above shall not be required.
(f) If the purpose of the amendment is to provide for the issuance of
additional certificates representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Holder, but the Owner Trustee shall be
furnished with (A) an Opinion of Counsel obtained by the Depositor to the effect
that such action will not adversely affect in any material respect the interests
of any Holders and (B) a letter from the Rating Agencies that the amendment will
not result in the downgrading or withdrawal of the rating then assigned to any
Notes or the rating then assigned to the Notes.
(g) Promptly after the execution of any such amendment or consent, the
Depositor shall furnish written notification of the substance of such amendment
or consent to each Certificateholder, the Indenture Trustee and the Rating
Agencies. It shall not be necessary for the consent of Certificateholders,
Noteholders or the Indenture Trustee pursuant to this Section 10.01 to approve
the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents (and any other consents of Certificateholders provided
for in this Trust Agreement or in any other Basic Document) and of evidencing
the authorization of the execution thereof by Certificateholders shall be
subject to such reasonable requirements as the Owner Trustee may prescribe.
(h) In connection with the execution of any amendment to any agreement to
which the Trust is a party, other than this Trust Agreement, the Owner Trustee,
the Certificate Registrar and the Certificate Paying Agent shall be entitled to
receive and conclusively rely upon an Opinion of Counsel to the effect that such
amendment is authorized or permitted by the documents subject to such amendment
and that all conditions precedent in the Basic Documents for the execution and
delivery thereof by the Trust or the Owner Trustee, as the case may be, have
been satisfied.
(i) No amendment or agreement affecting the rights or duties of the Owner
Trustee, Certificate Registrar or the Certificate Paying Agent may be entered
into without the consent of the affected party. The Owner Trustee shall not be
required to enter into any amendment which adversely affects its rights, duties
or immunities under this Trust Agreement or the other Basic Documents.
Promptly after the execution of any amendment to the Certificate of Trust,
the Owner Trustee shall cause the filing of such amendment with the Secretary of
State of the State of Delaware.
Section 10.02. No Legal Title to Owner Trust Estate. The Certificateholders
shall not have legal title to any part of the Owner Trust Estate solely by
virtue of their status as a Certificateholder. The Certificateholders shall be
entitled to receive distributions with respect to their undivided beneficial
interest therein only in accordance with Articles V and VIII. No transfer, by
operation of law or otherwise, of any right, title or interest of the
Certificateholders
26
to and in their ownership interest in the Owner Trust Estate shall operate to
terminate this Trust Agreement or the trusts hereunder or entitle any transferee
to an accounting or to the transfer to it of legal title to any part of the
Owner Trust Estate.
Section 10.03. Limitations on Rights of Others. Except for Section 2.07,
the provisions of this Trust Agreement are solely for the benefit of the Owner
Trustee, the Depositor, the Certificateholders and, to the extent expressly
provided herein, the Indenture Trustee and the Noteholders, and nothing in this
Trust Agreement (other than Section 2.07), whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Trust Agreement
or any covenants, conditions or provisions contained herein.
Section 10.04. Notices. (a) Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and shall be
deemed given upon receipt, to the Owner Trustee at: Wilmington Trust Company,
Xxxxxx Square North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000;
Attention: Corporate Trust Administration; to the Depositor at: Xxxxxxx Xxxxx
Mortgage Investors, Inc., 4 World Financial Center, 00xx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000, Attention: Xxxx Park; to the Indenture Trustee, the Certificate
Registrar and the Certificate Paying Agent at its Corporate Trust Office; to
Moody's at: 00 Xxxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000; to Fitch
Inc., Xxx Xxxxx Xxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000; or, as to each party, at
such other address as shall be designated by such party in a written notice to
each other party.
(b) Any notice required or permitted to be given to a Certificateholder
shall be given by first-class mail, postage prepaid, at the address of such
Holder as shown in the Certificate Register. Any notice so mailed within the
time prescribed in this Trust Agreement shall be conclusively presumed to have
been duly given, whether or not the Certificateholder receives such notice.
(c) A copy of any notice delivered to the Owner Trustee or the Trust shall
also be delivered to the Depositor.
Section 10.05. Severability. Any provision of this Trust Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
Section 10.06. Separate Counterparts. This Trust Agreement may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.
Section 10.07. Successors and Assigns. All representations, warranties,
covenants and agreements contained herein shall be binding upon, and inure to
the benefit of, each of the Depositor, the Owner Trustee and its successors, and
each Certificateholder and its successors and permitted assigns, all as herein
provided. Any request, notice, direction, consent, waiver or
27
other instrument or action by a Certificateholder shall bind the successors and
assigns of such Certificateholder.
Section 10.08. No Petition. The Owner Trustee, by entering into this Trust
Agreement and each Certificateholder, by accepting a Certificate, hereby
covenant and agree that they will not at any time institute against the
Depositor or the Trust, or join in any institution against the Depositor or the
Trust of, any bankruptcy proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations to the
Certificates, the Notes, this Trust Agreement or any of the Basic Documents.
This Section shall survive for one year following the termination of this Trust
Agreement.
Section 10.09. No Recourse. Each Certificateholder by accepting a
Certificate acknowledges that such Certificateholder's Certificates represent
beneficial interests in the Trust only and do not represent interests in or
obligations of the Depositor, the Seller, the Owner Trustee, the Indenture
Trustee, the Certificate Registrar, the Certificate Paying Agent or any
Affiliate thereof and no recourse may be had against such parties or their
assets, except as may be expressly set forth or contemplated in this Trust
Agreement, the Certificates or the Basic Documents.
Section 10.10. Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.
Section 10.11. GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 10.12. Integration. This Trust Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements and understandings pertaining thereto.
Section 10.13. Obligations. The execution and delivery of this Trust
Agreement by Xxxxx Fargo Bank, National Association is solely in its capacity as
Securities Administrator, and solely for purposes of its appointment and
agreement to serve as Certificate Registrar and Certificate Paying Agent. The
Securities Administrator shall have no duties or obligations under this
Agreement except for those duties expressly set forth in this Agreement as
duties of the Certificate Registrar or Certificate Paying Agent, and no implied
duties shall be read into this Agreement on the part of the Securities
Administrator (or Certificate Paying Agent or Certificate Registrar). In
entering into this Agreement and with respect to all matters arising under this
Agreement, the Securities Administrator shall enjoy and be protected by all of
the rights, powers, benefits, immunities, indemnities and other protections
granted to it under Article VI of the Indenture, whether acting in its capacity
as Certificate Registrar or as Certificate Paying Agent.
28
IN WITNESS WHEREOF, the Depositor, the Securities Administrator, the
Certificate Registrar, the Certificate Paying Agent and the Owner Trustee have
caused their names to be signed hereto by their respective officers thereunto
duly authorized, all as of the day and year first above written.
XXXXXXX XXXXX MORTGAGE INVESTORS, INC.,
as Depositor
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
WILMINGTON TRUST COMPANY,
as Owner Trustee
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
XXXXX FARGO BANK, N.A.,
acting not individually but solely as
Securities Administrator
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
XXXXX FARGO BANK, N.A.,
acting not individually but solely as
Certificate Registrar and Certificate
Paying Agent
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
EXHIBIT A
Form of Certificate
[Face]
THIS CERTIFICATE IS SUBORDINATE TO THE NOTES AS DESCRIBED IN THE INDENTURE.
NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR, DEPOSITOR AND OWNER TRUSTEE SHALL HAVE RECEIVED AN OPINION OF COUNSEL
AS DESCRIBED IN THE TRUST AGREEMENT.
NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE
REGISTRAR AND DEPOSITOR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS
CERTIFYING AS TO THE TRANSFEREE'S STATUS AS A U.S. PERSON OR CORPORATION UNDER
U.S. LAW.
THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 3.04 OF THE TRUST AGREEMENT REFERRED
TO HEREIN.
NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST HEREIN SHALL BE TRANSFERRED
TO AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN
SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE"), OR A PLAN SUBJECT TO ANY PROVISION UNDER ANY FEDERAL, STATE, LOCAL,
NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE
FOREGOING PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), OR ANY
PERSON DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE FOR, ON BEHALF OF, OR
WITH ANY ASSETS OF ANY SUCH PLAN.
NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS (A) THE TRANSFEREE
SHALL HAVE DELIVERED TO THE OWNER TRUSTEE, THE CERTIFICATE REGISTRAR, THE
SECURITIES ADMINISTRATOR AND THE INDENTURE TRUSTEE A CERTIFICATE CERTIFYING THAT
(1) IT IS A REAL ESTATE INVESTMENT TRUST ("REIT") WITHIN THE MEANING OF SECTION
856(a) OF THE CODE OR A QUALIFIED REIT SUBSIDIARY ("QRS") WITHIN THE MEANING OF
SECTION 856(i) OF THE CODE OR AN ENTITY DISREGARDED AS AN ENTITY SEPARATE FROM A
REIT OR A QRS AND (2) FOLLOWING THE TRANSFER, 100% OF THE CERTIFICATES, THE
CLASS 4-A-2 NOTES AND THE SUBORDINATE NOTES (OTHER THAN ANY CLASS A-4-2 NOTE OR
SUBORDINATE NOTES WITH RESPECT
A-1
TO WHICH A "WILL BE DEBT" OPINION HAS BEEN RENDERED BY NATIONALLY RECOGNIZED TAX
COUNSEL AND FURNISHED TO THE SECURITIES ADMINISTRATOR) WILL BE OWNED BY A SINGLE
REIT, DIRECTLY OR INDIRECTLY THROUGH ONE OR MORE QRSs OF SUCH REIT OR ONE OR
MORE ENTITIES DISREGARDED AS ENTITIES SEPARATE FROM SUCH REIT OR SUCH QRSs AND
(B) THE PROPOSED TRANSFEROR SHALL HAVE DELIVERED TO THE OWNER TRUSTEE, THE
CERTIFICATE REGISTRAR, THE SECURITIES ADMINISTRATOR AND THE INDENTURE TRUSTEE AN
OPINION OF COUNSEL, RENDERED BY A FIRM GENERALLY RECOGNIZED TO BE QUALIFIED TO
OPINE CONCERNING THE TAX ASPECTS OF ASSET SECURITIZATION, TO THE EFFECT THAT,
FOLLOWING SUCH TRANSFER, THE TRUST WILL CONTINUE TO BE TREATED FOR FEDERAL
INCOME TAX PURPOSES AS EITHER A DISREGARDED ENTITY OR A QRS; PROVIDED THAT,
NOTWITHSTANDING THE FOREGOING (X) THIS CERTIFICATE MAY BE PLEDGED TO SECURE
INDEBTEDNESS AND MAY BE THE SUBJECT OF REPURCHASE AGREEMENTS TREATED BY THE
ISSUING ENTITY AS SECURED INDEBTEDNESS FOR FEDERAL INCOME TAX PURPOSES, AND (Y)
THIS CERTIFICATE MAY BE TRANSFERRED BY A RELATED LENDER UNDER ANY SUCH RELATED
LOAN AGREEMENT OR REPURCHASE AGREEMENT UPON A DEFAULT UNDER ANY SUCH
INDEBTEDNESS, IN WHICH CASE THE TRANSFEROR SHALL DELIVER TO THE CERTIFICATE
REGISTRAR, THE SECURITIES ADMINISTRATOR, THE OWNER TRUSTEE AND THE INDENTURE
TRUSTEE A CERTIFICATE CERTIFYING TO SUCH EFFECT.
THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE
SELLER, THE SECURITIES ADMINISTRATOR, THE CERTIFICATE REGISTRAR, THE CERTIFICATE
PAYING AGENT, THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, OR THE
OWNER TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY
PROVIDED IN THE TRUST AGREEMENT OR THE BASIC DOCUMENTS.
Certificate No. __________
Cut-off Date: June 1, 2007 Percentage Interest: ___%
Date of Trust Agreement: First Payment Date:
June 27, 2007 July 25, 2007
Master Servicer:
Xxxxx Fargo Bank, N.A.
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XXXXXXX XXXXX MORTGAGE BACKED SECURITIES TRUST, SERIES 2007-2
Evidencing a fractional undivided equity interest in the Owner Trust
Estate, the property of which consists primarily of the Mortgage Loans in
Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2 (the "Trust"), a
Delaware statutory trust formed by XXXXXXX XXXXX MORTGAGE INVESTORS, INC., as
depositor, pursuant to the Trust Agreement referred to below.
This certifies that [_________________] is the registered owner of the
Percentage Interest represented hereby.
The Trust was created pursuant to a Trust Agreement, dated as of June 27,
2007, among the Depositor, Wilmington Trust Company, as owner trustee (the
"Owner Trustee", which term includes any successor entity under the Trust
Agreement) and Xxxxx Fargo Bank, N.A. in its capacity as Securities
Administrator as Certificate Registrar and Certificate Paying Agent (the "Trust
Agreement"), a summary of certain of the pertinent provisions of which is set
forth hereinafter. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement, to which Trust Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.
This Certificate is one of a duly authorized issue of Trust Certificates,
Series 2007-2 (herein called the "Certificates") issued under the Trust
Agreement to which reference is hereby made for a statement of the respective
rights thereunder of the Depositor, the Owner Trustee and the Holders of the
Certificates and the terms upon which the Certificates are executed and
delivered. All terms used in this Certificate which are defined in the Trust
Agreement shall have the meanings assigned to them in the Trust Agreement. The
Owner Trust Estate consists of the Mortgage Loans in the Xxxxxxx Xxxxx Mortgage
Backed Securities Trust, Series 2007-2. The rights of the Holders of the
Certificates are subordinated to the rights of the Holders of the Notes, as set
forth in the Indenture.
There will be distributed on the 25th day of each month or, if such 25th
day is not a Business Day, the next Business Day (each, a "Payment Date"),
commencing on July 25, 2007, to the Person in whose name this Certificate is
registered at the close of business on the last Business Day of the month
immediately preceding such Payment Date (the "Record Date"), such
Certificateholder's Percentage Interest in the amount to be distributed to
Certificateholders on such Payment Date.
The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to the funds on deposit in the Payment Account that have
been released from the Lien of the Indenture for payment hereunder and that
neither the Owner Trustee in its individual capacity nor the Depositor is
personally liable to the Certificateholders for any amount payable under this
Certificate or the Trust Agreement or, except as expressly provided in the Trust
Agreement, subject to any liability under the Trust Agreement.
The Holder of this Certificate acknowledges and agrees that its rights to
receive distributions in respect of this Certificate are subordinated to the
rights of the Noteholders as described in the Indenture, dated as of June 27,
2007, among the Trust, HSBC Bank USA,
A-3
National Association, as Indenture Trustee and Xxxxx Fargo Bank, N.A., as
Securities Administrator (the "Indenture").
The Depositor and each Certificateholder, by acceptance of a Certificate,
agree to treat, and to take no action inconsistent with the treatment of, the
Certificates for federal, state and local income tax purposes as an equity
interest in the Trust.
Each Certificateholder, by its acceptance of a Certificate, covenants and
agrees that such Certificateholder will not at any time institute against the
Depositor, or join in any institution against the Depositor or the Trust of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Certificates, the
Notes, the Trust Agreement or any of the Basic Documents.
Distributions on this Certificate will be made as provided in the Trust
Agreement by the Certificate Paying Agent by wire transfer or check mailed to
the Certificateholder of record in the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
hereon. Except as otherwise provided in the Trust Agreement and notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Certificate Paying Agent of the pendency of such distribution and
only upon presentation and surrender of this Certificate at the office or agency
maintained by the Certificate Registrar for that purpose by the Trust, as
provided in Section 3.08 of the Trust Agreement.
Notwithstanding the above, the final distribution on this Certificate will
be made after due notice of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency specified
in such notice.
The Mortgage Loans are subject to purchase in whole, but not in part, by
the Majority Certificateholder, on any Payment Date on or after the Payment Date
on which the aggregate Stated Principal Balance of the Mortgage Loans as of the
end of the prior Due Period is less than or equal to 10% of the Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date.
No transfer, sale, pledge or other disposition of a Certificate shall be
made unless such transfer, sale, pledge or other disposition is exempt from the
registration requirements of the Securities Act and any applicable state
securities laws or is made in accordance with said Act and laws. In the event of
any such transfer, the Certificate Registrar or the Depositor shall prior to
such transfer require the transferee to execute (A) either (i) (a) an investment
letter in substantially the form attached to the Agreement as Exhibit C (or in
such form and substance reasonably satisfactory to the Certificate Registrar and
the Depositor) which investment letter shall not be an expense of the Trust, the
Owner Trustee, the Securities Administrator, the Certificate Registrar, the
Master Servicer, the Seller, the Sponsor, the Servicer or the Depositor and
which investment letter states that, among other things, such transferee (1) is
a "qualified institutional buyer" as defined under Rule 144A, acting for its own
account or the accounts of other "qualified institutional buyers" as defined
under Rule 144A, and (2) is aware that the proposed transferor intends to rely
on the exemption from registration requirements under the Securities Act of
1933, as amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Certificate
Registrar and the
A-4
Depositor that such transfer may be made pursuant to an exemption, describing
the applicable exemption and the basis therefor, from said Act and laws or is
being made pursuant to said Act and laws, which Opinion of Counsel shall not be
an expense of the Trust, the Owner Trustee, the Securities Administrator, the
Certificate Registrar, the Master Servicer, the Seller, the Sponsor, the
Servicer or the Depositor and (b) the transferee executes a representation
letter, substantially in the form of Exhibit D to the Agreement, and the
transferor executes a representation letter, substantially in the form of
Exhibit F to the Agreement, each acceptable to and in form and substance
satisfactory to the Certificate Registrar and the Depositor certifying the facts
surrounding such transfer, which representation letters shall not be an expense
of the Trust, the Owner Trustee, the Securities Administrator, the Certificate
Registrar, the Master Servicer, the Seller, the Servicer or the Depositor and
(B) the Certificate of Non-Foreign Status (in substantially the form attached to
the Agreement as Exhibit D) acceptable to and in form and substance reasonably
satisfactory to the Certificate Registrar and the Depositor, which certificate
shall not be an expense of the Trust, the Owner Trustee, the Securities
Administrator, the Certificate Registrar, the Seller, the Sponsor, the Servicer
or the Depositor. The Holder of a Certificate desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trust, the Owner Trustee, the
Indenture Trustee, the Certificate Paying Agent, the Certificate Registrar, the
Master Servicer, the Seller, the Sponsor, the Servicer and the Depositor against
any liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.
No transfer of Certificates or any interest therein shall be made to an
employee benefit plan or arrangement subject to Title I of ERISA, a plan subject
to Section 4975 of the Code, or a plan subject to any provisions under any
federal, state, local, non-U.S. or other laws or regulations that are
substantively similar to the foregoing provisions of ERISA or the Code
(collectively, a "Plan"), or any Person directly or indirectly acquiring the
Certificates for, on behalf of or with any assets of any such Plan.
No transfer, sale, pledge or other disposition of a Certificate or any
interest therein shall be made, and the Certificate Registrar shall refuse to
register any such transfer, sale, pledge or other disposition, unless (A) the
transferee shall have delivered to the Certificate Registrar, the Owner Trustee,
the Securities Administrator and the Indenture Trustee a certificate certifying
that (i) it is a real estate investment trust ("REIT") within the meaning of
Section 856(a) of the Code or a qualified REIT subsidiary ("QRS") within the
meaning of Section 856(i) of the Code or an entity disregarded as an entity
separate from a REIT or a QRS and (ii) following the transfer, 100% of the
Certificates, the Class X-A Notes and the Subordinate Notes (other than any of
the Class X-A Notes or Subordinate Notes with respect to which a "will be debt"
opinion has been rendered by nationally recognized tax counsel and furnished to
the Securities Administrator) will be owned by a single REIT, directly or
indirectly through one or more qualified QRSs of such REIT or one or more
entities disregarded as entities separate from such REIT or such QRSs and (B)
the proposed transferor delivers to the Owner Trustee, the Certificate
Registrar, the Securities Administrator and the Indenture Trustee an Opinion of
Counsel, rendered by a law firm generally recognized to be qualified to opine
concerning the tax aspects of asset securitization, to the effect that,
following such transfer, the Trust will continue to be treated for federal
income tax purposes as either a disregarded entity or a QRS; provided that,
notwithstanding the foregoing, (x) any Certificates may be pledged to secure
indebtedness and may be the subject of repurchase agreements treated by the
Issuing Entity as secured
A-5
indebtedness for federal income tax purposes, and (y) any Certificates may be
transferred by the related lender under any such related loan agreement or
repurchase agreement upon a default under any such indebtedness, in which case
the transferor shall deliver to the Certificate Registrar, the Securities
Administrator, the Owner Trustee and the Indenture Trustee a certificate
certifying to such effect.
Reference is hereby made to the further provisions of this Certificate set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon shall have been executed by
an authorized officer of the Owner Trustee, or an authenticating agent by manual
signature, this Certificate shall not entitle the Holder hereof to any benefit
under the Trust Agreement or be valid for any purpose.
THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.
A-6
IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in
its individual capacity, has caused this Owner Trust Certificate to be duly
executed.
XXXXXXX XXXXX MORTGAGE
BACKED SECURITIES TRUST, SERIES 2007-2
By: Wilmington Trust Company, not in its
individual capacity but solely as
Owner Trustee
By:
------------------------------------
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
Dated: ______, 20__
XXXXX FARGO BANK, N.A.,
as Certificate Registrar
By:
------------------------------------
Authorized Officer
A-7
[REVERSE OF CERTIFICATE]
The Certificates do not represent an obligation of, or an interest in, the
Depositor, the Seller, the Master Servicer, the Sponsor, the Servicer, the
Securities Administrator, the Indenture Trustee, the Certificate Paying Agent,
the Certificate Registrar, the Owner Trustee or any Affiliates of any of them
and no recourse may be had against such parties or their assets, except as
expressly set forth or contemplated herein or in the Trust Agreement or the
Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to
certain collections and recoveries with respect to the Mortgage Loans, all as
more specifically set forth herein and in the Trust Agreement. A copy of the
Trust Agreement may be examined by any Certificateholder upon written request
during normal business hours at the principal office of the Depositor and at
such other places, if any, designated by the Depositor.
The Trust Agreement permits the amendment thereof as specified below,
provided that any amendment be accompanied by an Opinion of Counsel to the Owner
Trustee to the effect that such amendment complies with the provisions of the
Trust Agreement and would not cause the Trust to be subject to an entity level
tax. If the purpose of the amendment is to correct any mistake, eliminate any
inconsistency, cure any ambiguity or deal with any matter not covered, it shall
not be necessary to obtain the consent of any Holder, but the Owner Trustee
shall be furnished with a letter from each of the Rating Agencies that the
amendment will not result in the downgrading or withdrawal of the rating then
assigned to any Note or the rating then assigned to any Note. If the purpose of
the amendment is to prevent the imposition of any federal or state taxes at any
time that any Security is outstanding, it shall not be necessary to obtain the
consent of any Holder, but the Owner Trustee shall be furnished with an Opinion
of Counsel that such amendment is necessary or helpful to prevent the imposition
of such taxes and is not materially adverse to any Holder. If the purpose of the
amendment is to add or eliminate or change any provision of the Trust Agreement,
other than as specified in the preceding two sentences, the amendment shall
require either (a) a letter from each of the Rating Agencies that the amendment
will not result in the downgrading or withdrawal of the rating then assigned to
any Note or the rating then assigned to any Note or (b) the consent of Holders
of the Certificates evidencing a majority of the Percentage Interests of the
Certificates and the Indenture Trustee; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the time of,
payments received that are required to be distributed on any Certificate without
the consent of the related Certificateholder, or (ii) reduce the aforesaid
percentage of Certificates the Holders of which are required to consent to any
such amendment without the consent of the Holders of all such Certificates then
outstanding.
As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registerable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar maintained by
the Trust, as provided in the Trust Agreement, accompanied by a written
instrument of transfer in form satisfactory to the Certificate Registrar duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
evidencing the same aggregate interest in the Trust
A-8
will be issued to the designated transferee. The initial Certificate Registrar
appointed under the Trust Agreement is Xxxxx Fargo Bank, N.A..
Except as provided in the Trust Agreement, the Certificates are issuable
only in a minimum Certificate Percentage Interest of 10%. As provided in the
Trust Agreement and subject to certain limitations therein set forth,
Certificates are exchangeable for new Certificates of authorized denominations
evidencing the same aggregate denomination, as requested by the Holder
surrendering the same. No service charge will be made for any such registration
of transfer or exchange, but the Owner Trustee or the Certificate Registrar may
require payment of a sum sufficient to cover any tax or governmental charge
payable in connection therewith.
The Owner Trustee, the Certificate Paying Agent, the Certificate Registrar
and any agent of the Owner Trustee, the Certificate Paying Agent, or the
Certificate Registrar may treat the Person in whose name this Certificate is
registered as the owner hereof for all purposes, and none of the Owner Trustee,
the Certificate Paying Agent, the Certificate Registrar or any such agent shall
be affected by any notice to the contrary.
The obligations and responsibilities created by the Trust Agreement and the
Trust created thereby shall terminate as and when provided in accordance with
the terms of the Trust Agreement.
A-9
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
________________________________________________________________________________
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
________________________________________________________________________________
(Please print or type name and address, including postal zip code, of assignee)
________________________________________________________________________________
the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing ___________________________ to transfer said
Certificate on the books of the Certificate Registrar, with full power of
substitution in the premises.
Dated:
------------------------------ --------------------------------------*/
Signature Guaranteed:
--------------------------------------*/
----------
*/ NOTICE: The signature to this assignment must correspond with the name as
it appears upon the face of the within Certificate in every particular,
without alteration, enlargement or any change whatever. Such signature must
be guaranteed by a member firm of the New York Stock Exchange or a
commercial bank or trust company.
A-10
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for the information of the
Certificate Paying Agent:
Distribution shall be made by wire transfer in immediately available funds
to _____________________________________________________________________________
________________________________________________________________________________
for the account of ____________________________________________, account number
______________________________________, or, if mailed by check, to ____________.
Applicable statements should be mailed to _______________________________.
----------------------------------------
Signature of assignee or agent
(for authorization of wire
transfer only)
A-11
EXHIBIT B
CERTIFICATE OF TRUST OF
Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2
THIS Certificate of Trust of Xxxxxxx Xxxxx Mortgage Backed Securities
Trust, Series 2007-2 (the "Trust"), dated June ___, 2007, is being duly executed
and filed by Wilmington Trust Company, a Delaware banking corporation, as
trustee, to form a statutory trust under the Delaware Statutory Trust Act (12
Del. Code, Section 3801 et seq.).
1. Name. The name of the statutory trust formed hereby is Xxxxxxx
Xxxxx Mortgage Backed Securities Trust, Series 2007-2.
2. Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is Wilmington Trust Company, Xxxxxx Square
North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000-0000.
IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust,
has executed this Certificate of Trust as of the date first above written.
WILMINGTON TRUST COMPANY,
as Owner Trustee under a Trust Agreement
dated as of June ___, 2007
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
B-1
EXHIBIT C
[FORM OF RULE 144A INVESTMENT REPRESENTATION]
Description of Rule 144A Securities, including numbers:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
The undersigned seller, as registered holder (the "Seller"), intends
to transfer the Rule 144A Securities described above to the undersigned buyer
(the "Buyer").
1. In connection with such transfer and in accordance with the agreements
pursuant to which the Rule 144A Securities were issued, the Seller hereby
certifies the following facts: Neither the Seller nor anyone acting on its
behalf has offered, transferred, pledged, sold or otherwise disposed of the Rule
144A Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 0000 Xxx.
2. The Buyer warrants and represents to, and covenants with, the Owner
Trustee, the Certificate Registrar and the Depositor (as defined in the Trust
Agreement (the "Agreement"), dated as of June 27, 2007, among Xxxxxxx Xxxxx
Mortgage Investors, Inc., as Depositor, Wilmington Trust Company, as Owner
Trustee, Xxxxx Fargo Bank, N.A. in its capacity as Securities Administrator, as
Certificate Registrar and Certificate Paying Agent) pursuant to Section 3.04 of
the Agreement and HSBC Bank USA, National Association, as indenture trustee, as
follows:
a. The Buyer understands that the Rule 144A Securities have
not been registered under the 1933 Act or the securities laws of any
state.
b. The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in
financial and business matters that it is capable of evaluating the
merits and risks of investment in the Rule 144A Securities.
C-1
c. The Buyer has been furnished with all information
regarding the Rule 144A Securities that it has requested from the
Seller, the Indenture Trustee, the Owner Trustee or the Master
Servicer.
d. Neither the Buyer nor anyone acting on its behalf has
offered, transferred, pledged, sold or otherwise disposed of the Rule
144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities, any
interest in the Rule 144A Securities or any other similar security
from, or otherwise approached or negotiated with respect to the Rule
144A Securities, any interest in the Rule 144A Securities or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner,
or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the 1933 Act or that would render the
disposition of the Rule 144A Securities a violation of Section 5 of
the 1933 Act or require registration pursuant thereto, nor will it
act, nor has it authorized or will it authorize any person to act, in
such manner with respect to the Rule 144A Securities.
e. The Buyer is a "qualified institutional buyer" as that
term is defined in Rule 144A under the 1933 Act and has completed
either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2. The Buyer is aware that the sale to it is being
made in reliance on Rule 144A. The Buyer is acquiring the Rule 144A
Securities for its own account or the accounts of other qualified
institutional buyers, understands that such Rule 144A Securities may
be resold, pledged or transferred only (i) to a person reasonably
believed to be a qualified institutional buyer that purchases for its
own account or for the account of a qualified institutional buyer to
whom notice is given that the resale, pledge or transfer is being made
in reliance on Rule 144A, or (ii) pursuant to another exemption from
registration under the 1933 Act.
3. The Buyer warrants and represents to, and covenants with, the Seller,
the Indenture Trustee, Owner Trustee, the Certificate Registrar, Master Servicer
and Depositor that the Buyer is not an employee benefit plan or arrangement
subject to Title I of ERISA, a plan subject to Section 4975 of the Code, or a
plan subject to any provisions under any federal, state, local, non-U.S. or
other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code (collectively, a "Plan"), and is not directly or
indirectly acquiring the Certificates for, on behalf of or with any assets of
any such Plan.
4. This document may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.
IN WITNESS WHEREOF, each of the parties has executed this document as of
the date set forth below.
C-2
------------------------------------- ----------------------------------------
Print Name of Seller Print Name of Buyer
By: By:
---------------------------------- ------------------------------------
Name: Name:
------------------------------- ----------------------------------
Title: Title:
------------------------------ ---------------------------------
Taxpayer Identification: Taxpayer Identification:
No. No.
--------------------------------- ------------------------------------
Date: Date:
------------------------------- ----------------------------------
C-3
ANNEX 1 TO EXHIBIT C
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For Buyers Other Than Registered Investment Companies]
The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:
1. As indicated below, the undersigned is the President, Chief Financial
Officer, Senior Vice President or other executive officer of the Buyer.
2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $_____ (1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule
144A) and (ii) the Buyer satisfies the criteria in the category marked
below.
[ ] Corporation, etc. The Buyer is a corporation (other than a bank, savings
and loan association or similar institution), Massachusetts or similar
business trust, partnership, or charitable organization described in
Section 501(c)(3) of the Internal Revenue Code.
[ ] Bank. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the
business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a
foreign bank or equivalent institution, and (b) has an audited net worth of
at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.
[ ] Savings and Loan. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign
savings and loan association or equivalent institution and (b) has an
audited net worth of at least $25,000,000 as demonstrated in its latest
annual financial statements.
[ ] Broker-Dealer. The Buyer is a dealer registered pursuant to Section 15 of
the Securities Exchange Act of 1934.
[ ] Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring
of risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or agency
of a State or territory or the District of Columbia.
----------
(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own
and/or invest on a discretionary basis at least $10,000,000 in securities.
C-4
[ ] State or Local Plan. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the
State or its political subdivisions, for the benefit of its employees.
[ ] ERISA Plan. The Buyer is an employee benefit plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974.
[ ] Investment Adviser. The Buyer is an investment adviser registered under the
Investment Advisers Act of 1940.
[ ] SBIC. The Buyer is a Small Business Investment Company licensed by the U.S.
Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958.
[ ] Business Development Company. The Buyer is a business development company
as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.
[ ] Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
company and whose participants are exclusively (a) plans established and
maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit
of its employees, or (b) employee benefit plans within the meaning of Title
I of the Employee Retirement Income Security Act of 1974, but is not a
trust fund that includes as participants individual retirement accounts or
H.R. 10 plans.
3. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer, (ii) securities that are part of an
unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) bank deposit Notes and certificates of deposit, (iv) loan participations,
(v) repurchase agreements, (vi) securities owned but subject to a repurchase
agreement and (vii) currency, interest rate and commodity swaps.
4. For purposes of determining the aggregate amount of securities owned
and/or invested on a discretionary basis by the Buyer, the Buyer used the cost
of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.
5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.
[ ] [ ] Will the Buyer be purchasing the Rule 144A
Yes No Securities only for the Buyer's own account?
C-5
6. If the answer to the foregoing question is "no", the Buyer agrees that,
in connection with any purchase of securities sold to the Buyer for the account
of a third party (including any separate account) in reliance on Rule 144A, the
Buyer will only purchase for the account of a third party that at the time is a
"qualified institutional buyer" within the meaning of Rule 144A. In addition,
the Buyer agrees that the Buyer will not purchase securities for a third party
unless the Buyer has obtained a current representation letter from such third
party or taken other appropriate steps contemplated by Rule 144A to conclude
that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.
7. The Buyer will notify each of the parties to which this certification is
made of any changes in the information and conclusions herein. Until such notice
is given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase.
--------------------------------
Print Name of Buyer
By:
------------------------------------
Name:
----------------------------------
Title
----------------------------------
Date:
----------------------------------
C-6
ANNEX 2 TO EXHIBIT C
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
[For Buyers That Are Registered Investment Companies]
The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:
1. As indicated below, the undersigned is the President, Chief Financial
Officer or Senior Vice President of the Buyer or, if the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because Buyer is part of a Family of Investment
Companies (as defined below), is such an officer of the Adviser.
2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used.
[ ] The Buyer owned $_____ in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year
(such amount being calculated in accordance with Rule 144A).
[ ] The Buyer is part of a Family of Investment Companies which owned in the
aggregate $_____ in securities (other than the excluded securities referred
to below) as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A).
3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).
4. The term "securities" as used herein does not include (i) securities of
issuers that are affiliated with the Buyer or are part of the Buyer's Family of
Investment Companies, (ii) bank deposit Notes and certificates of deposit, (iii)
loan participations, (iv) repurchase agreements, (v) securities owned but
subject to a repurchase agreement and (vi) currency, interest rate and commodity
swaps.
5. The Buyer is familiar with Rule 144A and understands that each of the
parties to which this certification is made are relying and will continue to
rely on the statements made herein because one or more sales to the Buyer will
be in reliance on Rule 144A. In addition, the Buyer will only purchase for the
Buyer's own account.
6. The undersigned will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase
C-7
of Rule 144A Securities will constitute a reaffirmation of this certification by
the undersigned as of the date of such purchase.
----------------------------------------
Print Name of Buyer
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
IF AN ADVISER:
----------------------------------------
Print Name of Buyer
Date:
----------------------------------
C-8
EXHIBIT D
CERTIFICATE OF NON-FOREIGN STATUS
This Certificate of Non-Foreign Status ("certificate") is delivered
pursuant to Section 3.02 of the Trust Agreement, dated as of June 27, 2007 (the
"Trust Agreement"), among Xxxxxxx Xxxxx Mortgage Investors, Inc., as Depositor,
Wilmington Trust Company, as Owner Trustee and Xxxxx Fargo Bank, N.A., in its
capacity as Securities Administrator, as Certificate Registrar and Certificate
Paying Agent, in connection with the acquisition of, transfer to or possession
by the undersigned, whether as beneficial owner for U.S. federal income tax
purposes (the "Beneficial Owner"), or nominee on behalf of the Beneficial Owner
of the Trust Certificates, Series 2007-2 (the "Certificates"). Capitalized terms
used but not defined in this certificate have the respective meanings given them
in the Trust Agreement.
Each holder must complete Part I, Part II (if the holder is a nominee), and in
all cases sign and otherwise complete Part III.
In addition, each holder shall submit with the certificate an IRS Form W-9
relating to such holder.
To confirm to the Trust that the provisions of Sections 871, 881 or 1446 of the
Internal Revenue Code (relating to withholding tax on foreign partners) do not
apply in respect of the Certificates held by the undersigned, the undersigned
hereby certifies:
Part I - Complete Either A or B
A. Individual as Beneficial Owner
1. I am (The Beneficial Owner is ) not a non-resident
alien for purposes of U.S. federal income taxation;
2. My (The Beneficial Owner's) name and home address are:
___________________________________
___________________________________
___________________________________; and
3. My (The Beneficial Owner's) U.S. taxpayer
identification number (Social Security Number) is ____.
D-1
B. Corporate, Partnership or Other Entity as Beneficial Owner
1. (Name of the Beneficial Owner) is not a foreign
corporation, foreign partnership, foreign trust or
foreign estate (as those terms are defined in the Code
and Treasury Regulations;
2. The Beneficial Owner's office address and place of
incorporation (if applicable) is _____; and
3. The Beneficial Owner's U.S. employer identification
number is_____.
Part II - Nominees
If the undersigned is the nominee for the Beneficial Owner, the
undersigned certifies that this certificate has been made in reliance upon
information contained in:
_____ an IRS Form W-9
_____ a form such as this or substantially similar
provided to the undersigned by an appropriate person and (i) the undersigned
agrees to notify the Trust at least thirty (30) days prior to the date that the
form relied upon becomes obsolete, and (ii) in connection with change in
Beneficial Owners, the undersigned agrees to submit a new Certificate of
Non-Foreign Status to the Trust promptly after such change.
Part III - Declaration
The undersigned, as the Beneficial Owner or a nominee thereof, agrees
to notify the Trust within sixty (60) days of the date that the Beneficial Owner
becomes a foreign person. The undersigned understands that this certificate may
be disclosed to the Internal Revenue Service by the Trust and any false
statement contained therein could be punishable by fines, imprisonment or both.
D-2
Under penalties of perjury, I declare that I have examined this certificate
and to the best of my knowledge and belief it is true, correct and complete and
will further declare that I will inform the Trust of any change in the
information provided above, and, if applicable, I further declare that I have
the authority* to sign this document.
-------------------------------------
Name
-------------------------------------
Title (if applicable)
-------------------------------------
Signature and Date
* Note: If signed pursuant to a power of attorney, the power of attorney must
accompany this certificate.
D-3
EXHIBIT E
FORM OF INVESTMENT LETTER [NON-RULE 144A]
[DATE]
Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Xxxxx Fargo Bank, N.A.
Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Re: Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2 Trust
Certificates (the "Certificates")
Ladies and Gentlemen:
In connection with our acquisition of the above-captioned Certificates, we
certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as
amended, nor are we acting on behalf of any such plan, (e) we are acquiring the
Certificates for investment for our own account and not with a view to any
distribution of such Certificates (but without prejudice to our right at all
times to sell or otherwise dispose of the Certificates in accordance with clause
(g) below), (f) we have not offered or sold any Certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise approached or
negotiated with any person with respect thereto, or taken any other action which
would result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any Certificates unless (1) such sale, transfer
or other disposition is made pursuant to an effective registration statement
under the Act or is exempt from such registration requirements, and if
requested, we will at our expense provide an Opinion of Counsel satisfactory to
the addressees of this certificate that such sale, transfer or other disposition
may be made pursuant to an exemption from the Act, (2) the purchaser or
transferee of such Certificate has executed and delivered to you a certificate
to substantially the same effect as this certificate, and (3) the purchaser or
transferee has otherwise complied with any conditions for transfer set forth in
the Trust Agreement.
E-1
Very truly yours,
[TRANSFEREE]
By:
------------------------------------
Authorized Officer
E-2
EXHIBIT F
TRANSFEROR CERTIFICATE
Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Xxxxx Fargo Bank, National Association
Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Re: Proposed Transfer of Xxxxxxx Xxxxx Mortgage Backed Securities Trust,
Series 2007-2 Trust Certificates
Gentlemen:
This certification is being made by ____________________ (the "Transferor")
in connection with the proposed Transfer to _____________________ (the
"Transferee") of a trust certificate (the "Trust Certificate") representing ___%
fractional undivided interest in Xxxxxxx Xxxxx Mortgage Backed Securities Trust,
Series 2007-2 (the "Trust") created pursuant to a Trust Agreement, dated as of
June ___, 2007, being referred to herein as the "Trust Agreement") among Xxxxxxx
Xxxxx Mortgage Investors, Inc. (the "Company"), Wilmington Trust Company, as
Owner Trustee (the "Owner Trustee") and Xxxxx Fargo Bank, N.A., in its capacity
as Securities Administrator, as certificate registrar and certificate paying
agent (the "Certificate Registrar"). Initially capitalized terms used but not
defined herein have the meanings assigned to them in the Deposit Trust
Agreement. The Transferor hereby certifies, represents and warrants to, and
covenants with, the Company, the Owner Trustee and the Certificate Registrar
that:
Neither the Transferor nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred any Trust Certificate, any
interest in any Trust Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Trust Certificate, any interest in any
Trust Certificate or any other similar security from any person in any manner,
(c) has otherwise approached or negotiated with respect to any Trust
Certificate, any interest in any Trust Certificate or any other similar security
with any person in any manner, (d) has made any general solicitation by means of
general advertising or in any other manner, or (e) has taken any other action,
that (as to any of (a) through (e) above) would constitute a distribution of the
Trust Certificates under the Securities Act of 1933 (the "Act"), that would
render the disposition of any Trust Certificate a violation of Section 5 of the
Act or any state securities law, or that would require registration or
qualification pursuant thereto. The Transferor will not act in any manner set
forth in the foregoing sentence with respect to any Trust Certificate. The
Transferor has not and will not sell or otherwise transfer any of the Trust
Certificates, except in compliance with the provisions of the Trust Agreement.
F-1
Date:
--------------------- ----------------------------------------
Name of Transferor
----------------------------------------
Signature
----------------------------------------
Name
----------------------------------------
Title
F-2
EXHIBIT G
[DATE]
Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Xxxxx Fargo Bank, National Association
Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000
Re: Proposed Transfer of Trust Certificates,
Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2 (the
"Certificates")
Gentlemen:
This certification is being made by (the "Transferee") in connection with the
proposed Transfer by ____________ (the "Transferor") of a trust certificate (the
"Trust Certificate") representing __% fractional undivided interest in Xxxxxxx
Xxxxx Mortgage Backed Securities Trust, Series 2007-2 (the "Trust") created
pursuant to a Trust Agreement, dated June 27, 2007, being referred to herein as
the "Trust Agreement") among Xxxxxxx Xxxxx Mortgage Investors, Inc. (the
"Company"), Wilmington Trust Company, as Owner Trustee (the "Owner Trustee") and
Xxxxx Fargo Bank, National Association, in its capacity as Securities
Administrator, as certificate registrar and certificate paying agent (the
"Certificate Registrar"). Initially capitalized terms used but not defined
herein have the meanings assigned to them in the Trust Agreement. The Transferor
hereby certifies, represents and warrants to, and covenants with, the Company,
the Owner Trustee and the Certificate Registrar that it is not an employee
benefit plan or arrangement subject to Title I of ERISA, a plan subject to
Section 4975 of the Code, or a plan subject to any provisions under any federal,
state, local, non-U.S. or other laws or regulations that are substantively
similar to the foregoing provisions of ERISA or the Code (collectively, a
"Plan"), and is not directly or indirectly acquiring the Certificates for, on
behalf of or with any assets of any such Plan.
Very truly yours,
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
G-1
EXHIBIT H
FORM OF TRANSFEREE CERTIFICATE
Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Xxxxx Fargo Bank, N.A.,
as Securities Administrator and Certificate Registrar
Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000-0000
Attention: Corporate Trust Services
HSBC Bank USA, National Association, as Indenture Trustee
[Address]
Charlotte, North Carolina
Re: Proposed Transfer of Trust Certificates,
Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2 (the
"Certificates")
Gentlemen:
This certification is being made by ______________ (the "Transferee") in
connection with the proposed Transfer by ___________ of Certificates
representing __% fractional undivided interest in Xxxxxxx Xxxxx Mortgage Backed
Securities Trust, Series 2007-2 created pursuant to a Trust Agreement dated June
27, 2007, being referred to herein as the "Trust Agreement") among Xxxxxxx Xxxxx
Mortgage Investors, Inc., as depositor, Wilmington Trust Company, as owner
trustee (the "Owner Trustee") and Xxxxx Fargo Bank, N.A., solely in its capacity
as securities administrator (the "Securities Administrator"), certificate
registrar (the "Certificate Registrar") and certificate paying agent. Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Trust Agreement. The Transferee hereby certifies, represents and warrants
to, and covenants with, the Securities Administrator, the Owner Trustee, the
Indenture Trustee and the Certificate Registrar that:
(a) The Transferee is a REIT or a QRS within the meaning of Section 856(a)
or Section 856(i) of the Code or an entity disregarded as an entity separate
from a REIT or a QRS.
(b) Following the Transfer, 100% of the Certificates, the Class X-A Notes
and Subordinate Notes (other than any of the Class X-A Notes or Subordinate
Notes with respect to which a "will be debt" opinion has been rendered by
nationally recognized tax counsel and furnished to the Securities Administrator)
will be owned by a single REIT, directly or indirectly through one or more QRSs
of such REIT or one or more entities disregarded as entities separate from such
REIT or such QRSs.
H-1
Date:
--------------------- ----------------------------------------
Name of Transferee
----------------------------------------
Signature
----------------------------------------
Name
----------------------------------------
Title
H-2
EXHIBIT I
FORM OF TRANSFEROR CERTIFICATE
Wilmington Trust Company, as Owner Trustee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Xxxxx Fargo Bank, N.A.,
as Securities Administrator and Certificate Registrar
Xxxxx Xxxxxx xxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxx 00000-0000
Attention: Corporate Trust Services
HSBC Bank USA, National Association, as Indenture Trustee
[Address]
Charlotte, North Carolina
Re: Proposed Transfer of Trust Certificates,
Xxxxxxx Xxxxx Mortgage Backed Securities Trust, Series 2007-2 (the
"Certificates")
Gentlemen:
This certification is being made by ___________ (the "Transferor") in
connection with the proposed pledge or transfer to __________ of Certificates
representing __% fractional undivided interest in Xxxxxxx Xxxxx Mortgage Backed
Securities Trust, Series 2007-2 created pursuant to a Trust Agreement, dated
June 27, 2007, being referred to herein as the "Trust Agreement") among Xxxxxxx
Xxxxx Mortgage Investors, Inc., as depositor, Wilmington Trust Company, as owner
trustee (the "Owner Trustee") and Xxxxx Fargo Bank, N.A., solely in its capacity
as securities administrator (the "Securities Administrator"), certificate
registrar (the "Certificate Registrar") and certificate paying agent. Initially
capitalized terms used but not defined herein have the meanings assigned to them
in the Trust Agreement. The Transferor hereby certifies, represents and warrants
to, and covenants with, the Securities Administrator, the Owner Trustee, the
Indenture Trustee and the Certificate Registrar that:
(a) The Certificates are being pledged by the Transferor to secure
indebtedness of [___________] or is the subject of a loan agreement or
repurchase agreement treated by the Issuing Entity as secured indebtedness of
[___________] for federal income tax purposes as permitted under the Trust
Agreement; or
(b) The Certificates are being transferred by the related lender under a
loan agreement or repurchase agreement upon a default under any such
indebtedness as permitted under the Trust Agreement.
I-1
Date:
--------------------- ----------------------------------------
Name of Transferor
----------------------------------------
Signature
----------------------------------------
Name
----------------------------------------
Title
I-2