CITIGROUP MORTGAGE LOAN TRUST INC.
Depositor
NATIONAL CITY MORTGAGE CO.
Master Servicer
and
U.S. BANK NATIONAL ASSOCIATION
Trustee
POOLING AND SERVICING AGREEMENT
Dated as of August 1, 2004
Mortgage Pass-Through Certificates
Series 2004-NCM2
TABLE OF CONTENTS
Section Page
------- ----
ARTICLE I
DEFINITIONS
SECTION 1.01 Defined Terms .......................................-4-
SECTION 1.02. Allocation of Certain Interest Shortfalls ..........-77-
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF CERTIFICATES
SECTION 2.01. Conveyance of Mortgage Loans ...................... -79-
SECTION 2.02. Acceptance of REMIC I by the Trustee ...............-82-
SECTION 2.03. Repurchase or Substitution of Mortgage Loans
by the Seller ......................................-83-
SECTION 2.04 [Reserved] .........................................-86-
SECTION 2.05. Representations, Warranties and Covenants
of the Master Servicer -86-
SECTION 2.06. Issuance of Class R-I Interest and REMIC I
Regular Interests, R-II Interest and
REMIC II Regular Interests .........................-88-
SECTION 2.07. Conveyance of REMIC II Regular Interests;
Acceptance of III by the Trustee ...................-88-
SECTION 2.08. Issuance of Certificates ...........................-88-
ARTICLE III
ADMINISTRATION AND SERVICING
OF THE MORTGAGE LOANS
SECTION 3.01. Master Servicer to Act as Master Servicer ..........-89-
SECTION 3.02. Sub-Servicing Agreements Between the
Master Servicer and ................................-91-
SECTION 3.03. Successor Sub-Servicers ............................-92-
SECTION 3.04. Liability of the Master Servicer ...................-92-
SECTION 3.05. No Contractual Relationship Between
Sub-Servicers and or Certificateholders ............-93-
SECTION 3.06. Assumption or Termination of Sub-Servicing
Agreements by ......................................-93-
SECTION 3.07. Collection of Certain Mortgage Loan Payments .......-93-
SECTION 3.08. Sub-Servicing Accounts .............................-94-
SECTION 3.09. Collection of Taxes, Assessments and
Similar Items; Servicing ...........................-94-
SECTION 3.10. Collection Account and Distribution Account ........-95-
i
SECTION 3.11. Withdrawals from the Collection Account
and Distribution ...................................-97-
SECTION 3.12. Investment of Funds in the Collection Account
and the Account ....................................-99-
SECTION 3.13. Maintenance of the Primary Mortgage
Insurance Policies; Thereunder ....................-100-
SECTION 3.14. Maintenance of Hazard Insurance and Errors
and Omissions Fidelity Coverage ...................-101-
SECTION 3.15. Enforcement of Due-On-Sale Clauses; Assumption ....-103-
SECTION 3.16. Realization Upon Defaulted Mortgage Loans .........-104-
SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files ...-105-
SECTION 3.18. Servicing Compensation ............................-107-
SECTION 3.19. Reports to the Trustee; Collection Account
Statements ........................................-107-
SECTION 3.20. Statement as to Compliance ........................-108-
SECTION 3.21. Independent Public Accountants' Servicing Report ..-108-
` SECTION 3.22. Access to Certain Documentation ...................-108-
SECTION 3.23. Title, Management and Disposition of
REO Property ......................................-109-
SECTION 3.24. Obligations of the Master Servicer in Respect
of Prepayment Shortfalls ..........................-112-
SECTION 3.25. Obligations of the Master Servicer in Respect
of Monthly ........................................-112-
SECTION 3.26. Advance Facility ..................................-112-
ARTICLE IV
PAYMENTS TO CERTIFICATEHOLDERS
SECTION 4.01 Distributions .....................................-114-
SECTION 4.02. Statements to Certificateholders ..................-119-
SECTION 4.03. Remittance Reports; P&I Advances ..................-122-
SECTION 4.04. Allocation of Extraordinary Trust Fund
Expenses and Losses ...............................-124-
SECTION 4.05. Compliance with Withholding Requirements ..........-129-
SECTION 4.06. Distributions on the REMIC I Regular
Interests and REMIC Regular Interests .............-130-
SECTION 4.07 Commission Reporting ..............................-132-
SECTION 4.08 Excess Diverted Interest Reserve Account ..........-133-
ARTICLE V
THE CERTIFICATES
SECTION 5.01 The Certificates -135-
SECTION 5.02. Registration of Transfer and
Exchange of Certificates -137-
SECTION 5.03. Mutilated, Destroyed, Lost or
Stolen Certificates -142-
SECTION 5.04 Persons Deemed Owners -142-
SECTION 5.05. Certain Available Information -142-
ii
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
SECTION 6.01. Liability of the Depositor and the
Master Servicer ...................................-144-
SECTION 6.02. Merger or Consolidation of the Depositor
or the Master .....................................-144-
SECTION 6.03. Limitation on Liability of the Depositor,
the Master Servicer Others ........................-144-
SECTION 6.04. Limitation on Resignation of the
Master Servicer ...................................-145-
SECTION 6.05. Rights of the Depositor in Respect of
the Master Servicer ...............................-146-
ARTICLE VII
DEFAULT
SECTION 7.01. Master Servicer Events of Default .................-147-
SECTION 7.02. Trustee to Act; Appointment of Successor ..........-149-
SECTION 7.03. Notification to Certificateholders ................-150-
SECTION 7.04. Waiver of Master Servicer Events of Default .......-151-
ARTICLE VIII
CONCERNING THE TRUSTEE
SECTION 8.01. Duties of Trustee .................................-152-
SECTION 8.02. Certain Matters Affecting the Trustee .............-153-
SECTION 8.03. Trustee not Liable for Certificates
or Mortgage Loans .................................-154-
SECTION 8.04. Trustee May Own Certificates ......................-155-
SECTION 8.05. Trustee's Fees and Expenses .......................-155-
SECTION 8.06. Eligibility Requirements for Trustee ..............-156-
SECTION 8.07. Resignation and Removal of the Trustee ............-156-
SECTION 8.08. Successor Trustee .................................-157-
SECTION 8.09. Merger or Consolidation of Trustee ................-157-
SECTION 8.10. Appointment of Co-Trustee or Separate Trustee .....-157-
SECTION 8.11. [intentionally omitted] ...........................-158-
SECTION 8.12. Appointment of Office or Agency ...................-158-
SECTION 8.13. Representations and Warranties ....................-159-
ARTICLE IX
TERMINATION
SECTION 9.01. Termination Upon Repurchase or Liquidation
of the Trust ......................................-161-
SECTION 9.02. Additional Termination Requirements ...............-163-
iii
ARTICLE X
REMIC PROVISIONS
SECTION 10.01. REMIC Administration ..............................-164-
SECTION 10.02. Prohibited Transactions and Activities ............-166-
SECTION 10.03. Master Servicer and Trustee Indemnification .......-167-
ARTICLE XI
MISCELLANEOUS PROVISIONS
SECTION 11.01. Amendment .........................................-168-
SECTION 11.02. Recordation of Agreement; Counterparts ............-169-
SECTION 11.03. Limitation on Rights of Certificateholders ........-169-
SECTION 11.04. Governing Law .....................................-170-
SECTION 11.05. Notices ...........................................-170-
SECTION 11.06. Severability of Provisions ........................-171-
SECTION 11.07. Notice to Rating Agency ...........................-171-
SECTION 11.08. Article and Section References ....................-172-
SECTION 11.09. Grant of Security Interest ........................-172-
iv
Exhibits
--------
Exhibit A-1 Form of Class IA-CB1 Certificate
Exhibit A-2 Form of Class IA-CB2 Certificate
Exhibit A-3 Form of Class IA-CB3 Certificate
Exhibit A-4 Form of Class IIA-CB1 Certificate
Exhibit A-5 Form of Class IIA-CB2 Certificate
Exhibit A-6 Form of Class IIA-CB3 Certificate
Exhibit A-7 Form of Class IIIA-CB1 Certificate
Exhibit A-8 Form of Class IIIA-CB2 Certificate
Exhibit A-9-1 Form of Class IVA-1 Certificate
Exhibit A-9-2 Form of Class IVA-2 Certificate
Exhibit A-10 Form of Class XS-1 Certificate
Exhibit A-11 Form of Class XS-2 Certificate
Exhibit A-12 Form of Class XS-3 Certificate
Exhibit A-13 Form of Class XS-4 Certificate
Exhibit A-14 Form of Class PO-1 Certificate
Exhibit A-15 Form of Class PO-2 Certificate
Exhibit A-16 Form of Class PO-3 Certificate
Exhibit A-17 Form of Class PO-4 Certificate
Exhibit A-18 Form of Class B-1 Certificate
Exhibit A-19 Form of Class B-2 Certificate
Exhibit A-20 Form of Class B-3 Certificate
Exhibit A-21 Form of Class B-4 Certificate
Exhibit A-22 Form of Class B-5 Certificate
Exhibit A-23 Form of Class B-6 Certificate
Exhibit A-24 Form of Class R Certificate
Exhibit B [Reserved]
Exhibit C-1 Form of Trustee's Initial Certification
Exhibit C-2 Form of Trustee's Final Certification
Exhibit C-3 Form of Receipt of Mortgage Note
Exhibit D Form of Mortgage Loan Purchase Agreement
Exhibit E Request for Release
Exhibit F Form of Investment Letter
Exhibit G Form Transferor Certificate
Exhibit H Form of Residual Certificate Transfer Affidavit
Exhibit I Form of Statement as to Compliance
Exhibit J-1 Form of Certification to Be Provided by the Master Servicer
with Form 10-K
Exhibit J-2 Form of Certification to Be Provided to the Master Servicer by
the Trustee
Exhibit K Form of Special Servicing Agreement
Exhibit L Form of Power of Attorney
Schedule 1 Mortgage Loan Schedule
Schedule 2 Mortgage Loans covered by a Primary Mortgage Insurance Policy
v
This Pooling and Servicing Agreement, is dated and effective as of
August 1, 2004, among CITIGROUP MORTGAGE LOAN TRUST INC., as Depositor, NATIONAL
CITY MORTGAGE CO., as Master Servicer and U.S. BANK NATIONAL ASSOCIATION, as
Trustee.
PRELIMINARY STATEMENT:
The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund created hereunder.
REMIC I
As provided herein, the Trustee will elect to treat the segregated
pool of assets consisting of the Mortgage Loans and certain other related assets
subject to this Agreement as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC I." The Class R-I
Interest will be the sole class of "residual interests" in REMIC I for purposes
of the REMIC Provisions (as defined herein). The following table irrevocably
sets forth the designation, the REMIC I Remittance Rate, the initial
Uncertificated Balance and, solely for purposes of satisfying Treasury
regulation section 1.860G-1(a)(4)(iii), the "latest possible maturity date" for
each of the REMIC I Regular Interests (as defined herein). None of the REMIC I
Regular Interests will be certificated.
Initial
REMIC I Uncertificated Latest Possible
Designation Remittance Rate Balance Maturity Date(1)
----------- --------------- --------------- ----------------
I-LT-1 5.50% $ 43,274,772.63 September 0000
X-XX-0 6.75% $118,743,555.85 September 2034
I-LT-3 7.50% $ 21,679,456.21 September 0000
X-XX-0 5.50% $101,807,254.76 September 0000
X-XX-0 6.75% $156,723,309.03 September 2034
I-LT-6 8.00% $ 32,830,399.14 September 2034
I-LT-7 5.00% $ 27,625,793.70 September 2034
I-LT-8 6.50% $ 22,987,396.82 September 2034
I-LT-9 6.50% $ 15,120,071.45 September 0000
X-XX-00 7.00% $ 13,864,900.14 September 0000
X-XX-X 5.50% 100.00 September 2034
I-LT-XS1 Variable(2) (3) September 2034
I-LT-XS2 Variable(2) (3) September 2034
I-LT-XS3 Variable(2) (3) September 2034
I-LT-XS4 Variable(2) (3) September 0000
X-XX-XX0 0.00% $ 50,113.00 September 0000
X-XX-XX0 0.00% $ 213,161.00 September 0000
X-XX-XX0 0.00% $ 210,476.00 September 0000
X-XX-XX0 0.00% $ 318,539.00 September 2034
--------------
(1) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date in the month following the month of the
maturity date for the Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each REMIC I Regular
Interest.
(2) Calculated in accordance with the definition of "REMIC I Remittance Rate"
herein.
(2) REMIC I Regular Interest I-LTXS1, REMIC I Regular Interest I-LTXS2, REMIC I
Regular Interest I-LTXS3 and REMIC I Regular Interest I-LTXS4 will not have
Uncertificated Balances, but will accrue interest on their respective
Uncertificated Notional Amounts, as defined herein.
REMIC II
As provided herein, the Trustee will elect to treat the segregated pool of
assets consisting of the REMIC I Regular Interests as a REMIC for federal income
tax purposes, and such segregated pool of assets will be designated as "REMIC
II". The Class R-II Interest will be the sole class of "residual interests" in
REMIC II for purposes of the REMIC Provisions under federal income tax law. The
following table irrevocably sets forth the designation, the REMIC II Remittance
Rate, the initial Uncertificated Balance and, solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the REMIC II Regular Interests (as defined herein). None of
the REMIC II Regular Interests will be certificated.
Initial
REMIC I Uncertificated Latest Possible
Designation Remittance Rate Balance Maturity Date(1)
----------- --------------- --------------- ----------------
II-LT-1A 5.50% $ 249.38 September 2034
II-LT-1B 5.50% $ 43,274,523.25 September 2034
II-LT-2A 6.75% $ 682.66 September 2034
II-LT-2B 6.75% $118,742,873.19 September 2034
II-LT-3A 7.50% $ 124.55 September 2034
II-LT-3B 7.50% $ 21,679,331.66 September 2034
II-LT-4A 5.50% $ 586.53 September 2034
II-LT-4B 5.50% $101,806,668.23 September 2034
II-LT-5A 6.75% $ 901.03 September 2034
II-LT-5B 6.75% $156,722,408.00 September 2034
II-LT-6A 8.00% $ 189.04 September 2034
II-LT-6B 8.00% $ 32,830,210.10 September 2034
II-LT-7A 5.00% $ 159.98 September 2034
II-LT-7B 5.00% $ 27,625,633.72 September 2034
II-LT-8A 6.50% $ 132.34 September 2034
II-LT-8B 6.50% $ 22,987,264.48 September 2034
II-LT-9A 6.50% $ 88.81 September 2034
II-LT-9B 6.50% $ 15,119,982.64 September 2034
II-LT-10A 7.00% $ 79.69 September 2034
II-LT-10B 7.00% $ 13,864,820.45 September 2034
II-LT-R 5.50% $ 100.00 September 2034
II-LT-XS1 Variable(2) (3) September 2034
II-LT-XS2 Variable(2) (3) September 2034
II-LT-XS3 Variable(2) (3) September 2034
II-LT-XS4 Variable(2) (3) September 0000
XX-XX-XX0 0.00% $ 50,113.00 September 0000
XX-XX-XX0 0.00% $ 213,161.00 September 0000
XX-XX-XX0 0.00% $ 210,476.00 September 0000
XX-XX-XX0 0.00% $ 318,539.00 September 2034
--------------
(1) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date in the month following the month of the
maturity date for the Mortgage Loan with the latest maturity date has been
designated as the "latest possible maturity date" for each REMIC II Regular
Interest.
(2) Calculated in accordance with the definition of "REMIC II Remittance Rate"
herein.
(2) REMIC II Regular Interest II-LTXS1, REMIC II Regular Interest II-LTXS2,
REMIC II Regular Interest II-LTXS3 and REMIC II Regular Interest II-LTXS4
not have Uncertificated Principal Balances, but will be entitled to 100% of
amounts distributed on REMIC I Regular Interest I-LTXS1, REMIC I Regular
Interest I-LTXS2, REMIC I Regular Interest I-LTXS3 and REMIC I Regular
Interest I-LTXS4, respectively.
-2-
REMIC III
As provided herein, the Trustee will elect to treat the segregated pool of
assets consisting of the REMIC II Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC III". The Class R Certificates will be the sole class of "residual
interests" in REMIC III for purposes of the REMIC Provisions under federal
income tax law. The following table irrevocably sets forth the designation, the
Pass-Through Rate, the initial Certificate Principal Balance and, solely for
purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
"latest possible maturity date" for each of the Classes of Regular Certificates.
Initial Certificate Latest Possible
Designation Pass-Through Rate Principal Balance Maturity Date(1)
----------- --------------- --------------- ----------------
Class IA-CB1 5.50% per annum $ 40,781,000.00 September 2034
Class IA-CB2 6.75% per annum $111,917,000.00 September 2034
Class IA-CB3 7.50% per annum $ 20,434,000.00 September 2034
Class IIA-CB1 5.50% per annum $ 95,942,000.00 September 2034
Class IIA-CB2 6.75% per annum $147,713,000.00 September 2034
Class IIA-CB3 8.00% per annum $ 30,940,000.00 September 2034
Class IIIA-CB1 5.00% per annum $ 26,026,000.00 September 2034
Class IIIA-CB2 6.50% per annum $ 21,664,000.00 September 2034
Class IVA-1 6.50% per annum $ 14,232,000.00 September 2034
Class IVA-2 7.00% per annum $ 13,068,000.00 September 2034
Class R 5.50% per annum 100.00 September 2034
Class XS-1 7.50% per annum (3) September 2034
Class XS-2 8.00% per annum (3) September 2034
Class XS-3 6.50% per annum (3) September 2034
Class XS-4 7.00% per annum (3) September 2034
Class PO-1 0.00%(4) $ 50,113.00 September 2034
Class PO-2 0.00%(4) $ 213,161.00 September 2034
Class PO-3 0.00%(4) $ 210,476.00 September 2034
Class PO-4 0.00%(4) $ 318,539.00 September 2034
Class B-1 Variable(2) $ 11,943,000.00 September 2034
Class B-2 Variable(2) $ 6,943,000.00 September 2034
Class B-3 Variable(2) $ 4,444,000.00 September 2034
Class B-4 Variable(2) $ 2,777,000.00 September 2034
Class B-5 Variable(2) $ 1,944,000.00 September 2034
Class B-6 Variable(2) $ 3,888,908.00 September 2034
--------------
(1) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date immediately following the maturity date
for the Mortgage Loan with the latest maturity date has been designated as
the "latest possible maturity date" for each Class of Certificates.
(2) Calculated in accordance with the definition of "Pass-Through Rate" herein.
(3) The Class XS Certificates do not have Certificate Principal Balances and are
not entitled to distributions of principal. As provided herein, the Class XS
Certificates entitle the Holders thereof solely to distributions of interest
accrued on the related Notional Amount of such Certificates.
(4) The Class PO Certificates are not entitled to distributions of interest.
-3-
As of the Cut-off Date, the Original Group I Mortgage Loans had an
aggregate Scheduled Principal Balance equal to $183,747,897.64. As of the
Cut-off Date, the Original Group II Mortgage Loans had an aggregate Scheduled
Principal Balance equal to $291,574,223.88. As of the Cut-off Date, the Original
Group III Mortgage Loans had an aggregate Scheduled Principal Balance equal to
$50,823,666.48. As of the Cut-off Date, the Original Group IV Mortgage Loans had
an aggregate Scheduled Principal Balance equal to $29,303,510.58.
In consideration of the mutual agreements herein contained, the
Depositor, the Master Servicer and the Trustee agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms.
Whenever used in this Agreement, including, without limitation, in
the Preliminary Statement hereto, the following words and phrases, unless the
context otherwise requires, shall have the meanings specified in this Article.
Unless otherwise specified, all calculations described herein shall be made on
the basis of a 360-day year consisting of twelve 30-day months.
"Advancing Person": As defined in Section 3.26 hereof.
"Affiliate": With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
"Agreement": This Pooling and Servicing Agreement and all amendments
hereof and supplements hereto.
"Aggregate Senior Percentage": With respect to any Distribution Date
and the Class A Certificates, the lesser of (a) 100% and (b) a fraction,
expressed as a percentage, the numerator of which is the aggregate Certificate
Principal Balance of the Class A Certificates for such Distribution Date and the
denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Mortgage Loans, plus (ii)
the aggregate of the Non-Class PO Percentages of the Scheduled Principal
Balances of the REO Properties, in each case before reduction for any Realized
Losses on such Distribution Date.
"Applicable Fraction": For each Mortgage Loan that does not have
Mortgage Loan Components, 100%. For each Mortgage Loan that has Mortgage Loan
Components is as follows:
(i) for each Group I Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.50% per annum and less than 6.75% per annum and
Subgroup IA-1, a fraction
-4-
the numerator of which is (x) 6.75% less the applicable Expense
Adjusted Mortgage Rate on such Mortgage Loan and the denominator of
which is (y) 1.25%;
(ii) for each Group I Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.50% per annum and less than 6.75% per annum and
Subgroup IA-2, 100.00% less a fraction the numerator of which is (x)
6.75% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 1.25%;
(iii) for each Group I Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than or equal to 6.75% per annum and less than 7.50%
per annum and Subgroup IA-2, a fraction the numerator of which is
(x) 7.50% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 0.75%;
(iv) for each Group I Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than or 6.75% per annum and less than 7.50% per annum
and Subgroup IA-3, 100.00% less a fraction the numerator of which is
(x) 7.50% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 0.75%;
(v) for each Group II Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.50% per annum and less than 6.75% per annum and
Subgroup IIA-1, a fraction the numerator of which is (x) 6.75% less
the applicable Expense Adjusted Mortgage Rate on such Mortgage Loan
and the denominator of which is (y) 1.25%;
(vi) for each Group II Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.50% per annum and less than 6.75% per annum and
Subgroup IIA-2, 100.00% less a fraction the numerator of which is
(x) 6.75% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 1.25%;
(vii) for each Group II Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than or equal to 6.75% per annum and less than 8.00%
per annum and Subgroup IIA-2, a fraction the numerator of which is
(x) 8.00% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 1.25%;
(viii)for each Group II Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than or 6.75% per annum and less than 8.00% per annum
and Subgroup IIA-3, 100.00% less a fraction the numerator of which
is (x) 8.00% less the applicable Expense Adjusted Mortgage Rate on
such Mortgage Loan and the denominator of which is (y) 1.25%;
(ix) for each Group III Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.00% per annum and less than 6.50% per annum and
Subgroup IIIA-1, a fraction the numerator of which is (x) 6.50% less
the applicable Expense Adjusted Mortgage Rate on such Mortgage Loan
and the denominator of which is (y) 1.50%;
-5-
(x) for each Group III Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 5.00% per annum and less than 6.50% per annum and
Subgroup IIIA-2, 100.00% less a fraction the numerator of which is
(x) 6.50% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 1.50%;
(xi) for each Group IV Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 6.50% per annum and less than 7.00% per annum and
Subgroup IVA-1, a fraction the numerator of which is (x) 7.00% less
the applicable Expense Adjusted Mortgage Rate on such Mortgage Loan
and the denominator of which is (y) 0.50%; and
(xii) for each Group IV Mortgage Loan with an Expense Adjusted Mortgage
Rate greater than 6.50% per annum and less than 7.00% per annum and
Subgroup IVA-2, 100.00% less a fraction the numerator of which is
(x) 7.00% less the applicable Expense Adjusted Mortgage Rate on such
Mortgage Loan and the denominator of which is (y) 0.50%.
"Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect of
record the sale of the Mortgage.
"Available Distribution Amount": The Subgroup IA-1 Available
Distribution Amount, the Subgroup IA-2 Available Distribution Amount, the
Subgroup IA-3 Available Distribution Amount, the Subgroup IIA-1 Available
Distribution Amount, the Subgroup IIA-2 Available Distribution Amount, the
Subgroup IIA-3 Available Distribution Amount, the Subgroup IIIA-1 Available
Distribution Amount, the Subgroup IIIA-2 Available Distribution Amount, the
Subgroup IVA-1 Available Distribution Amount and/or the Subgroup IVA-2 Available
Distribution Amount, as the context requires.
"Bankruptcy Amount": As of any date of determination, an amount
equal to the excess, if any, of (A) $100,000 over (B) the aggregate amount of
Bankruptcy Losses allocated solely to the Subordinate Certificates in accordance
with Section 4.04. After the Certificate Principal Balances of the Subordinate
Certificates are reduced to zero, the Bankruptcy Amount will be zero.
"Bankruptcy Code": The Bankruptcy Reform Act of 1978 (Title 11 of
the United States Code), as amended.
"Bankruptcy Loss": With respect to any Mortgage Loan, a Realized
Loss resulting from a Deficient Valuation or Debt Service Reduction.
"Book-Entry Certificate": Any Certificate registered in the name of
the Depository or its nominee. Initially, the Book-Entry Certificates will be
the Class A Certificates, the Class XS
Certificates.
-6-
Certificates, the Class PO Certificates, the Class B-1 Certificates, the Class
B-2 Certificates and the Class B-3
"Book-Entry Custodian": The custodian appointed pursuant to Section
5.01.
"Business Day": Any day other than a Saturday, a Sunday or a day on
which banking or savings and loan institutions in the State of Ohio, the State
of New York, the State of Texas or in the city in which the Corporate Trust
Office of the Trustee is located, are authorized or obligated by law or
executive order to be closed.
"Cash-out Refinancing": A Refinanced Mortgage Loan the proceeds of
which are more than $1,000 in excess of the principal balance of any existing
first mortgage or subordinate mortgage on the related Mortgaged Property and
related closing costs.
"Certificate": Any one of the Citigroup Mortgage Loan Trust Inc.,
Mortgage Pass-Through Certificates, Series 2004-NCM2, issued under this
Agreement.
"Certificate Factor": With respect to any Class of Certificates as
of any Distribution Date, a fraction, expressed as a decimal carried to six
places, the numerator of which is the aggregate Certificate Principal Balance or
Notional Amount of such Class of Certificates on such Distribution Date (after
giving effect to any distributions of principal and allocations of Realized
Losses and Extraordinary Trust Fund Expenses in reduction of the Certificate
Principal Balance or Notional Amount of such Class of Certificates to be made on
such Distribution Date), and the denominator of which is the initial aggregate
Certificate Principal Balance or Notional Amount of such Class of Certificates
as of the Closing Date.
"Certificate Group": Any one of Certificate Group I, Certificate
Group II, Certificate Group III or Certificate Group IV, as the context
requires.
"Certificate Group I": The Class IA-CB1 Certificates, the Class
IA-CB2 Certificates, the Class IA-CB3 Certificates, the Class XS-1
Certificates and the Class PO-1 Certificates.
"Certificate Group II": The Class IIA-CB1 Certificates, the Class
IIA-CB2 Certificates, the Class IIA-CB3 Certificates, the Class XS-2
Certificates, the Class PO-2 Certificates and the Class R Certificates.
"Certificate Group III": The Class IIIA-CB1 Certificates, the
Class IIIA-CB2 Certificates, the Class XS-3 Certificates and the Class PO-3
Certificates.
"Certificate Group IV": The Class IVA-1 Certificates, the Class
IVA-2 Certificates, the Class XS-4 Certificates and the Class PO-4
Certificates.
"Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the
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Depositor or the Master Servicer or any Affiliate thereof shall be deemed not to
be outstanding and the Voting Rights to which it is entitled shall not be taken
into account in determining whether the requisite percentage of Voting Rights
necessary to effect any such consent has been obtained, except as otherwise
provided in Section 11.01. The Trustee may conclusively rely upon a certificate
of the Depositor or the Master Servicer in determining whether a Certificate is
held by an Affiliate thereof. All references herein to "Holders" or
"Certificateholders" shall reflect the rights of Certificate Owners as they may
indirectly exercise such rights through the Depository and participating members
thereof, except as otherwise specified herein; provided, however, that the
Trustee shall be required to recognize as a "Holder" or "Certificateholder" only
the Person in whose name a Certificate is registered in the Certificate
Register.
"Certificate Owner": With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Certificate as reflected on the books
of the Depository or on the books of a Depository Participant or on the books of
an indirect participating brokerage firm for which a Depository Participant acts
as agent.
"Certificate Principal Balance": With respect to any Certificate
(other than a Class XS Certificate), as of any date of determination, the
Certificate Principal Balance of such Certificate on the Distribution Date
immediately prior to such date of determination plus any Subsequent Recoveries
added to the Certificate Principal Balance of such Certificate pursuant to
Section 4.01, reduced by the aggregate of (a) all distributions of principal
made thereon on such immediately prior Distribution Date and (b) without
duplication of amounts described in clause (a) above, reductions in the
Certificate Principal Balance thereof in connection with allocations thereto of
Realized Losses on the Mortgage Loans and Extraordinary Trust Fund Expenses on
such immediately prior Distribution Date (or, in the case of any date of
determination up to and including the initial Distribution Date, the initial
Certificate Principal Balance of such Certificate, as stated on the face
thereof); provided, however, that the Certificate Principal Balance of each
Subordinate Certificate of the Class of Subordinate Certificates outstanding
with the highest numerical designation at any given time shall not be greater
than the Percentage Interest evidenced by such Certificate multiplied by the
excess, if any, of (A) the then aggregate Stated Principal Balance of the
Mortgage Loans over (B) the then aggregate Certificate Principal Balances of all
other Classes of Certificates then outstanding. The Certificate Principal
Balance of any Class of Certificates (other than a Class of the Class XS
Certificates) as of any date of determination is equal to the aggregate of the
Certificate Principal Balances of the Certificates of such Class. The Class XS
Certificates shall not have Certificate Principal Balances and shall not be
entitled to any distributions of principal.
"Certificate Register": The register maintained pursuant to
Section 5.02.
"Class": Collectively, all of the Certificates bearing the same
class designation.
"Class A Certificate": Any Class IA-CB1 Certificate, Class IA-CB2
Certificate, Class IA-CB3 Certificate, Class IIA-CB1 Certificate, Class IIA-CB2
Certificate, Class IIA-CB3 Certificate, Class IIIA-CB1 Certificate, Class
IIIA-CB2 Certificate, Class IVA-1 Certificate or Class IVA-2 Certificate.
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"Class A Principal Adjustment Amount": As to any Distribution Date
on which the Certificate Principal Balance of all of the Class A Certificates
related to a Subgroup have been reduced to zero, any remaining Principal
Prepayments, Liquidation Proceeds or other unscheduled payments of principal
collected in respect of the related Mortgage Loan Components or the related
Mortgage Loans in such Subgroup (and, with respect to any Distribution Date on
which the aggregate Certificate Principal Balance of the Subordinate
Certificates has been reduced to zero, any remaining scheduled payments of
principal in respect of the Mortgage Loan Components or Mortgage Loans in the
related Subgroup).
"Class IA-CB1 Certificate": Any one of the Class IA-CB1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC III for
purposes of the REMIC Provisions.
"Class IA-CB2 Certificate": Any one of the Class IA-CB2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC III for
purposes of the REMIC Provisions.
"Class IA-CB3 Certificate": Any one of the Class IA-CB3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-3 and evidencing a Regular Interest in REMIC III for
purposes of the REMIC Provisions.
"Class IIA-CB1 Certificate": Any one of the Class IIA-CB1
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-4 and evidencing a Regular Interest in
REMIC III for purposes of the REMIC Provisions.
"Class IIA-CB2 Certificate": Any one of the Class IIA-CB2
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in
REMIC III for purposes of the REMIC Provisions.
"Class IIA-CB3 Certificate": Any one of the Class IIA-CB3
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-6 and evidencing a Regular Interest in
REMIC III for purposes of the REMIC Provisions.
"Class IIIA-CB1 Certificate": Any one of the Class IIIA-CB1
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-7 and evidencing a Regular Interest in
REMIC III for purposes of the REMIC Provisions.
"Class IIIA-CB2 Certificate": Any one of the Class IIIA-CB2
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-8 and evidencing a Regular Interest in
REMIC III for purposes of the REMIC Provisions.
"Class IVA-1 Certificate": Any one of the Class IVA-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-9-1 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
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"Class IVA-2 Certificate": Any one of the Class IVA-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-9-2 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B Percentage": Any one of the Class B-1 Percentage, the Class
B-2 Percentage, the Class B-3 Percentage, the Class B-4 Percentage, the Class
B-5 Percentage or the Class B-6 Percentage.
"Class B-1 Certificate": Any one of the Class B-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-18 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B-1 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-1 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-1 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class B-2 Certificate": Any one of the Class B-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-19 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B-2 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-2 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-2 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class B-3 Certificate": Any one of the Class B-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-20 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B-3 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-3 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-3 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class B-4 Certificate": Any one of the Class B-4 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-21 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
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"Class B-4 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-4 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-4 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class B-5 Certificate": Any one of the Class B-5 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-22 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B-5 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-5 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-5 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class B-6 Certificate": Any one of the Class B-6 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-23 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class B-6 Percentage": With respect to any Distribution Date, a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the Certificate Principal Balance of the Class B-6 Certificates
immediately prior to such date over the aggregate amount, if any, payable to the
Holders of the Class B-6 Certificates on such date pursuant to Section
4.01(b)(i)(Z), and the denominator of which is the aggregate Certificate
Principal Balance of the Subordinate Certificates immediately prior to such
date.
"Class PO Certificate": Any Class PO-1 Certificate, Class PO-2
Certificate, Class PO-3 Certificate or Class PO-4 Certificate.
"Class PO Mortgage Loan": Each Group I Mortgage Loan with an Expense
Adjusted Mortgage Rate below 5.50% per annum as of the Cut-off Date, each Group
II Mortgage Loan with an Expense Adjusted Mortgage Rate below 5.50% per annum as
of the Cut-off Date, each Group III Mortgage Loan with an Expense Adjusted
Mortgage Rate below 5.00% per annum as of the Cut-off Date and each Group IV
Mortgage Loan with an Expense Adjusted Mortgage Rate below 6.50% per annum as of
the Cut-off Date.
"Class PO Percentage": With respect to each Class PO Mortgage Loan,
the Class PO-1 Percentage, the Class PO-2 Percentage, the Class PO-3 Percentage
or the Class PO-4 Percentage, as applicable.
"Class PO Principal Distribution Amount": For any Distribution
Date and any Class of Class PO Certificates, an amount equal to the aggregate
of:
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(a) the sum of the following:
(i) the Class PO-1 Percentage, the Class PO-2 Percentage, the
Class PO-3 Percentage or the Class PO-4 Percentage, as applicable,
of the principal portion of each Monthly Payment due during the
related Due Period in respect of each related Class PO Mortgage Loan
whether or not received;
(ii) the Class PO-1 Percentage, the Class PO-2 Percentage, the
Class PO-3 Percentage or the Class PO-4 Percentage, as applicable,
of the principal portion of all Insurance Proceeds, Liquidation
Proceeds (other than amounts described in clause (c) below) and
Subsequent Recoveries received in respect of each related Class PO
Mortgage Loan during the related Prepayment Period (other than any
such related Class PO Mortgage Loan that was purchased, sold or
replaced pursuant to or as contemplated by Section 2.03 or Section
9.01 during the related Prepayment Period), net of any portion
thereof that represents a recovery of principal for which an advance
was made by the Master Servicer pursuant to Section 4.03 in respect
of a preceding Distribution Date;
(iii) the Class PO-1 Percentage, the Class PO-2 Percentage,
the Class PO-3 Percentage or the Class PO-4 Percentage, as
applicable, of the Stated Principal Balance (calculated immediately
prior to such Distribution Date) of each related Class PO Mortgage
Loan that was purchased, sold or replaced pursuant to or as
contemplated by Section 2.03 or Section 9.01 during the related
Prepayment Period;
(iv) the Class PO-1 Percentage, the Class PO-2 Percentage, the
Class PO-3 Percentage or the Class PO-4 Percentage, as applicable,
of all REO Principal Amortization collected in respect of any REO
Property during the related Prepayment Period; and
(v) in connection with the substitution of one or more
Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
Loans which were Class PO Mortgage Loans pursuant to Section 2.03
during the related Prepayment Period, the excess, if any, of (A) the
Class PO-1 Percentage, the Class PO-2 Percentage, the Class PO-3
Percentage or the Class PO-4 Percentage, as applicable, of the
aggregate of the Stated Principal Balances (calculated as of the
respective dates of substitution) of such Deleted Mortgage Loans,
net of the aggregate of the Class PO-1 Percentage, the Class PO-2
Percentage, the Class PO-3 Percentage or the Class PO-4 Percentage,
as applicable, of the principal portions of the Monthly Payments due
during the related Prepayment Period (to the extent received from
the related Mortgagor or advanced by the Master Servicer and
distributed pursuant to Section 4.01 on the Distribution Date in the
related Prepayment Period) in respect of each such Deleted Mortgage
Loan that was replaced prior to the Distribution Date in the related
Prepayment Period, over (B) the Class PO-1 Percentage, the Class
PO-2 Percentage, the Class PO-3 Percentage or the Class PO-4
Percentage, as applicable, of the Stated Principal Balances
(calculated as of the respective dates of substitution) of such
Qualified Substitute Mortgage Loans;
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(b) the Class PO-1 Percentage, the Class PO-2 Percentage, the
Class PO-3 Percentage or the Class PO-4 Percentage, as applicable, of all
Principal Prepayments received in respect of each related Class PO
Mortgage Loan during the related Prepayment Period;
(c) with respect to any related Class PO Mortgage Loan which was
the subject of a Final Recovery Determination in the related Prepayment
Period, the Class PO-1 Percentage, the Class PO-2 Percentage, the Class
PO-3 Percentage or the Class PO-4 Percentage, as applicable, of the Stated
Principal Balance of such Mortgage Loan at the time of such Final Recovery
Determination (net of the principal portion of any Realized Loss allocated
to the related Class PO Certificates) to the extent of the principal
portion of all Liquidation Proceeds with respect to such related Class PO
Mortgage Loan;
(d) on any Distribution Date on which any Class of Subordinate
Certificates remain outstanding, the excess, if any, of the related Class
PO Percentage of the Stated Principal Balance of each related Class PO
Mortgage Loan as to which a Final Liquidation has occurred, over the
amount distributed in respect of such Class PO Mortgage Loan to the
related Class PO Certificates pursuant to clause (c) above; and
(e) in the case of any Distribution Date subsequent to the initial
Distribution Date, an amount equal to the excess, if any, of the related
Class PO Principal Distribution Amount for the immediately preceding
Distribution Date, over the aggregate distributions of principal made in
respect of the related Class PO Certificates on such immediately preceding
Distribution Date pursuant to Section 4.01 to the extent that any such
amounts are not attributable to Realized Losses which were allocated to
the Subordinate Certificates pursuant to Section 4.04.
"Class PO-1 Certificate": Any one of the Class PO-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-14 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class PO-1 Percentage": With respect to each Class PO Mortgage Loan
in Loan Group I, the quotient of (i) 5.50% per annum minus the related Expense
Adjusted Mortgage Rate divided by (ii) 5.50% per annum. With respect to each
other Mortgage Loan in Loan Group I, 0.000% per annum.
"Class PO-2 Certificate": Any one of the Class PO-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-15 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class PO-2 Percentage": With respect to each Class PO Mortgage Loan
in Loan Group II, the quotient of (i) 5.50% per annum minus the related Expense
Adjusted Mortgage Rate divided by (ii) 5.50% per annum. With respect to each
other Mortgage Loan in Loan Group II, 0.000% per annum.
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"Class PO-3 Certificate": Any one of the Class PO-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-16 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class PO-3 Percentage": With respect to each Class PO Mortgage Loan
in Loan Group III, the quotient of (i) 5.00% per annum minus the related Expense
Adjusted Mortgage Rate divided by (ii) 5.00% per annum. With respect to each
other Mortgage Loan in Loan Group III, 0.000% per annum.
"Class PO-4 Certificate": Any one of the Class PO-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-17 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.
"Class PO-4 Percentage": With respect to each Class PO Mortgage Loan
in Loan Group IV, the quotient of (i) 6.50% per annum minus the related Expense
Adjusted Mortgage Rate divided by (ii) 6.50% per annum. With respect to each
other Mortgage Loan in Loan Group IV, 0.000% per annum.
"Class R Certificate": Any one of the Class R Certificates executed,
authenticated and delivered by the Trustee, substantially in the form annexed
hereto as Exhibit A-24 and evidencing the ownership of the Class R-I Interest,
the Class R-II Interest and the Class R-III Interest for purposes of the REMIC
Provisions.
"Class R-I Interest": The Residual Interest in REMIC I for the
purposes of the REMIC Provisions.
"Class R-II Interest": The Residual Interest in REMIC II for the
purposes of the REMIC Provisions.
"Class R-III Interest": The Residual Interest in REMIC III for the
purposes of the REMIC Provisions.
"Class XS Certificate": Any Class XS-1 Certificate, Class XS-2
Certificate, Class XS-3 Certificate or Class XS-4 Certificate.
"Class XS-1 Certificate": Any one of the Class XS-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-10 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions. The Class XS-1 Certificates shall not have
a Certificate Principal Balance and shall not be entitled to any distributions
of principal.
"Class XS-2 Certificate": Any one of the Class XS-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-11 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions. The Class XS-2 Certificates shall not have
a Certificate Principal Balance and shall not be entitled to any distributions
of principal.
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"Class XS-3 Certificate": Any one of the Class XS-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-12 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions. The Class XS-3 Certificates shall not have
a Certificate Principal Balance and shall not be entitled to any distributions
of principal.
"Class XS-4 Certificate": Any one of the Class XS-4 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-13 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions. The Class XS-4 Certificates shall not have
a Certificate Principal Balance and shall not be entitled to any distributions
of principal.
"Class XS Mortgage Loan": Each Group I Mortgage Loan with an Expense
Adjusted Mortgage Rate equal to or greater than 7.50% per annum as of the
Cut-off Date, each Group II Mortgage Loan with an Expense Adjusted Mortgage Rate
equal to or greater than 8.00% per annum as of the Cut-off Date, each Group III
Mortgage Loan with an Expense Adjusted Mortgage Rate equal to or greater than
6.50% per annum as of the Cut-off Date and each Group IV Mortgage Loan with an
Expense Adjusted Mortgage Rate equal to or greater than 7.00% per annum as of
the Cut-off Date.
"Closing Date": August 25, 2004.
"Code": The Internal Revenue Code of 1986, as amended.
"Collection Account": The account or accounts created and
maintained by the Master Servicer pursuant to Section 3.10(a), which shall be
entitled, "National City Mortgage Co., as Master Servicer for U.S. Bank
National Association, as Trustee, in trust for the registered holders of
Citigroup Mortgage Loan Trust Inc., Mortgage Pass-Through Certificates,
Series 2004-NCM2." The Collection Account must be an Eligible Account.
"Commission": The Securities and Exchange Commission.
"Compensating Interest": With respect to the Master Servicer or the
Special Servicer, as applicable, an amount equal to the lesser of (i) the
aggregate of the Prepayment Interest Shortfalls for the related Distribution
Date resulting solely from Principal Prepayments during the related Prepayment
Period and (ii) the amount of the aggregate Servicing Fee for the most recently
ended calendar month.
"Corporate Trust Office": The principal corporate trust office of
the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office at the date
of the execution of this instrument is located at 00 Xxxxxxxxxx Xxxxxx,
XX-XX-XX0X, Xx. Xxxx, Xxxxxxxxx 00000-0000, Attn: Structured Finance/CMLTI
2004-NCM2, or such other address as the Trustee may designate from time to time
by notice to the Certificateholders, the Depositor, the Master Servicer and the
Seller.
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"Corresponding Subgroup": With respect to each REMIC I Regular
Interest, REMIC II Regular Interest or Certificate, as follows:
REMIC I Regular Interest, REMIC II Regular
Interest or Certificate Subgroup
------------------------------------------- --------
REMIC I Regular Interest I-LT-1 IA-1
REMIC I Regular Interest I-LT-2 IA-2
REMIC I Regular Interest I-LT-3 IA-3
REMIC I Regular Interest I-LT-4 IIA-1
REMIC I Regular Interest I-LT-5 IIA-2
REMIC I Regular Interest I-LT-6 IIA-3
REMIC I Regular Interest I-LT-7 IIIA-1
REMIC I Regular Interest I-LT-8 IIIA-2
REMIC I Regular Interest I-LT-9 IVA-1
REMIC I Regular Interest I-LT-10 IVA-2
REMIC I Regular Interest I-LT-XS1 IA-3
REMIC I Regular Interest I-LT-XS2 IIA-3
REMIC I Regular Interest I-LT-XS3 IIIA-2
REMIC I Regular Interest I-LT-XS4 IVA-2
REMIC I Regular Interest I-LT-PO1 IA-1
REMIC I Regular Interest I-LT-PO2 IIA-1
REMIC I Regular Interest I-LT-PO3 IIIA-1
REMIC I Regular Xxxxxxxx X-XX-XX0 XXX-0
REMIC I Regular Interest I-LT-R IIA-1
REMIC II Regular Interest II-LT-1A IA-1
REMIC II Regular Interest II-LT-1B IA-1
REMIC II Regular Interest II-LT-2A IA-2
REMIC II Regular Interest II-LT-2B IA-2
REMIC II Regular Interest II-LT-3A IA-2
REMIC II Regular Interest II-LT-3B IA-3
REMIC II Regular Interest II-LT-4A IIA-1
REMIC II Regular Interest II-LT-4B IIA-1
REMIC II Regular Interest II-LT-5A IIA-2
REMIC II Regular Interest II-LT-5B IIA-2
REMIC II Regular Interest II-LT-6A IIA-3
REMIC II Regular Interest II-LT-6B IIA-3
REMIC II Regular Interest II-LT-7A IIIA-1
REMIC II Regular Interest II-LT-7B IIIA-1
REMIC II Regular Interest II-LT-8A IIIA-2
REMIC II Regular Interest II-LT-8B IIIA-2
REMIC II Regular Interest II-LT-9A IVA-1
REMIC II Regular Interest II-LT-9B IVA-1
REMIC II Regular Interest II-LT-10A IVA-2
REMIC II Regular Interest II-LT-10B IVA-2
REMIC II Regular Interest II-LT-XS1 IA-3
REMIC II Regular Interest II-LT-XS2 IIA-3
REMIC II Regular Interest II-LT-XS3 IIIA-2
REMIC II Regular Interest II-LT-XS4 IVA-2
REMIC II Regular Interest II-LT-PO1 IA-1
REMIC II Regular Interest II-LT-PO2 IIA-1
REMIC II Regular Interest II-LT-PO3 IIIA-1
REMIC II Regular Interest XX-XX-XX0 XXX-0
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REMIC II Regular Interest II-LT-R IIA-1
Class IA-CB1 IA-1
Class IA-CB2 IA-2
Class IA-CB3 IA-3
Class IIA-CB1 IIA-1
Class IIA-CB2 IIA-2
Class IIA-CB3 IIA-3
Class IIIA-CB1 IIIA-1
Class IIIA-CB2 IIIA-2
Class XXX-0 XXX-0
Class XXX-0 XXX-0
Class XS-1 IA-3
Class XS-2 IIA-3
Class XS-3 IIIA-2
Class XS-4 IVA-2
Class PO-1 IA-1
Class PO-2 IIA-1
Class PO-3 IIIA-1
Class XX-0 XXX-0
"Cut-off Date": With respect to each Original Mortgage Loan, August
1, 2004. With respect to all Qualified Substitute Mortgage Loans, their
respective dates of substitution. References herein to the "Cut-off Date," when
used with respect to more than one Mortgage Loan, shall be to the respective
Cut-off Dates for such Mortgage Loans.
"Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a
reduction resulting from a Deficient Valuation.
"Deficient Valuation": With respect to any Mortgage Loan, a
valuation of the related Mortgaged Property by a court of competent jurisdiction
in an amount less than the then outstanding principal balance of the Mortgage
Loan, which valuation results from a proceeding initiated under the Bankruptcy
Code.
"Definitive Certificates": As defined in Section 5.01(b).
"Deleted Mortgage Loan": A Mortgage Loan replaced or to be
replaced by a Qualified Substitute Mortgage Loan.
"Depositor": Citigroup Mortgage Loan Trust Inc., a Delaware
corporation, or its successor in interest.
"Depository": The Depository Trust Company, or any successor
Depository hereafter named. The nominee of the initial Depository, for purposes
of registering those Certificates that are to be Book-Entry Certificates, is
CEDE & Co. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
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York and a "clearing agency" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended.
"Depository Institution": Any depository institution or trust
company, including the Trustee, that (a) is incorporated under the laws of the
United States of America or any State thereof, (b) is subject to supervision and
examination by federal or state banking authorities and (c) has outstanding
unsecured commercial paper or other short-term unsecured debt obligations that
are rated "A-1" or better by Fitch or "P-1" or better by Moody's, if rated by
Moody's (or comparable ratings if Fitch and Moody's are not the Rating
Agencies).
"Depository Participant": A broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.
"Determination Date": With respect to each Distribution Date, the
15th day of the calendar month in which such Distribution Date occurs or, if
such 15th day is not a Business Day, the Business Day immediately preceding such
15th day.
"Directly Operate": With respect to any REO Property, the furnishing
or rendering of services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for sale to
customers, the performance of any construction work thereon or any use of such
REO Property in a trade or business conducted by REMIC I, other than through an
Independent Contractor; provided, however, that the Trustee (or the Master
Servicer on behalf of the Trustee) shall not be considered to Directly Operate
an REO Property solely because the Trustee (or the Master Servicer on behalf of
the Trustee) establishes rental terms, chooses tenants, enters into or renews
leases, deals with taxes and insurance, or makes decisions as to repairs or
capital expenditures with respect to such REO Property.
"Disqualified Organization": Any of the following: (i) the United
States, any State or political subdivision thereof, any possession of the United
States, or any agency or instrumentality of any of the foregoing (other than an
instrumentality which is a corporation if all of its activities are subject to
tax and, except for Xxxxxxx Mac, a majority of its board of directors is not
selected by such governmental unit), (ii) any foreign government, any
international organization, or any agency or instrumentality of any of the
foregoing, (iii) any organization (other than certain farmers' cooperatives
described in Section 521 of the Code) which is exempt from the tax imposed by
Chapter 1 of the Code (including the tax imposed by Section 511 of the Code on
unrelated business taxable income), (iv) rural electric and telephone
cooperatives described in Section 1381(a)(2)(C) of the Code, (v) an "electing
large partnership" within the meaning of Section 775 of the Code and (vi) any
other Person so designated by the Trustee based upon an Opinion of Counsel that
the holding of an Ownership Interest in a Residual Certificate by such Person
may cause REMIC I or any Person having an Ownership Interest in any Class of
Certificates (other than such Person) to incur a liability for any federal tax
imposed under the Code that would not otherwise be imposed but for the Transfer
of an Ownership Interest in a Residual Certificate to such Person. The terms
"United States," "State" and "international organization" shall have the
meanings set forth in Section 7701 of the Code or successor provisions.
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"Distribution Account": The trust account or accounts created and
maintained by the Trustee pursuant to Section 3.10(b) which shall be entitled
"U.S. Bank National Association, as Trustee, in trust for the registered holders
of Citigroup Mortgage Loan Trust Inc., Mortgage Pass-Through Certificates,
Series 2004-NCM2." The Distribution Account must be an Eligible Account.
"Distribution Date": The 25th day of any month, or if such 25th day
is not a Business Day, the Business Day immediately following such 25th day,
commencing in September 2004.
"Diverted Interest Amount": With respect to any Distribution Date,
one month's interest accrued during the related Interest Accrual Period on the
related Overcollateralized Amount at the Pass-Through Rate for the Class A
Certificates related to the Undercollateralizated Subgroup or Subgroups and any
other unpaid interest shortfalls on the Class A Certificates related to the
Undercollateralizated Subgroup or Subgroups, to the extent available (with
overcollateralization and undercollateralization calculated, for purposes of
this definition, as of the prior Distribution Date after taking into account all
distributions and Realized Loss allocations that occurred on such prior
Distribution Date).
"DOL": The United States Department of Labor or any successor in
interest.
"DOL Regulations": The regulations promulgated by the DOL at 29
C.F.R.ss.2510.3-101.
"Due Date": With respect to each Distribution Date, the first day of
the calendar month in which such Distribution Date occurs, which is the day of
the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of
any days of grace (or, in the case of any Mortgage Loan which has its Monthly
Payment due on a day each calendar month other than the first day of each
calendar month, the date that such Monthly Payment is due and which falls within
the Due Period relating to such Distribution Date).
"Due Period": With respect to any Distribution Date, the period
commencing on the second day of the calendar month preceding the calendar month
in which such Distribution Date occurs and ending on first day of the calendar
month in which such Distribution Date occurs.
"Eligible Account": Any of (i) an account or accounts maintained
with a Depository Institution, (ii) an account or accounts the deposits in which
are fully insured by the FDIC or (iii) a trust account or accounts maintained
with the corporate trust department of a federal or state chartered depository
institution or trust company acting in its fiduciary capacity. Eligible Accounts
may bear interest.
"ERISA": The Employee Retirement Income Security Act of 1974, as
amended.
"Estate in Real Property": A fee simple estate in a parcel of land.
"Excess Bankruptcy Loss": Any Bankruptcy Loss, or portion thereof,
which exceeds the then applicable Bankruptcy Amount.
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"Excess Diverted Interest Reserve Account": The account established
and maintained pursuant to Section 4.08.
"Excess Diverted Interest Reserve Amount": With respect to the Class
A Certificates and any Distribution Date, an amount equal to the excess, if any,
of (i) one month's interest accrued during the related Interest Accrual Period
on the Overcollateralized Amount at the Pass-Through Rate for the Class A
Certificates relating to the Overcollateralizated Subgroup or Subgroups over
(ii) the Diverted Interest Amount (with overcollateralization and
undercollateralization calculated, for purposes of this definition, as of the
prior Distribution Date after taking into account all distributions and Realized
Loss allocations that occurred on such prior Distribution Date).
"Excess Fraud Loss": Any Fraud Loss, or portion thereof, which
exceeds the then applicable Fraud Loss Amount.
"Excess Loss": Any Excess Bankruptcy Loss, Excess Special Hazard
Loss, Excess Fraud Loss or Extraordinary Loss.
"Excess Special Hazard Loss": Any Special Hazard Loss, or portion
thereof, that exceeds the then applicable Special Hazard Amount.
"Expense Adjusted Mortgage Rate": With respect to any Mortgage Loan
(or the related REO Property), as of any Distribution Date, a per annum rate of
interest equal to the applicable Mortgage Rate thereon as of the first day of
the month preceding the month in which the Distribution Date occurs minus the
sum of (i) the Trustee Fee Rate, (ii) the Servicing Fee Rate and (iii) the rate
at which the premium payable in connection with any lender-paid Primary Mortgage
Insurance Policy is calculated, if applicable.
"Extraordinary Loss": Any Realized Loss or portion thereof caused by
or resulting from:
(i) nuclear or chemical reaction or nuclear radiation or
radioactive or chemical contamination, all whether controlled or
uncontrolled and whether such loss be direct or indirect, proximate
or remote or be in whole or in part caused by, contributed to or
aggravated by a peril covered by the definition of the term "Special
Hazard Loss";
(ii) hostile or warlike action in time of peace or war,
including action in hindering, combating or defending against an
actual, impending or expected attack by any government or sovereign
power, de jure or de facto, or by any authority maintaining or using
military, naval or air forces, or by military, naval or air forces,
or by an agent of any such government, power, authority or forces;
(iii) any weapon of war employing atomic fission or
radioactive forces whether in time of peace or war, and
(iv) insurrection, rebellion, revolution, civil war, usurped
power or action taken by governmental authority in hindering,
combating or defending against such an occurrence,
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seizure or destruction under quarantine or customs regulations,
confiscation by order of any government or public authority, or
risks of contraband or illegal transactions or trade.
"Extraordinary Trust Fund Expenses": Any amounts reimbursable to the
Master Servicer or the Depositor pursuant to Section 6.03, any amounts payable
from the Distribution Account in respect of taxes pursuant to Section
10.01(g)(iii), any amounts reimbursable to the Trustee from the Trust Fund
pursuant to Section 2.01, Section 7.01, Section 7.02 or Section 8.05 and any
other costs, expenses, liabilities and losses borne by the Trust Fund (exclusive
of any cost, expense, liability or loss that is specific to a particular
Mortgage Loan or REO Property and is taken into account in calculating a
Realized Loss in respect thereof) for which the Trust Fund has not and, in the
reasonable good faith judgment of the Trustee, shall not, obtain reimbursement
or indemnification from any other Person.
"Xxxxxx Xxx": Xxxxxx Xxx, formerly known as the Federal National
Mortgage Association, or any successor thereto.
"FDIC": Federal Deposit Insurance Corporation or any successor
thereto.
"Final Recovery Determination": With respect to any defaulted
Mortgage Loan or any REO Property (other than a Mortgage Loan or REO Property
purchased by the Seller, the Depositor or the Master Servicer pursuant to or as
contemplated by Section 2.03 or Section 9.01), a determination made by the
Master Servicer that all Liquidation Proceeds have been recovered. The Master
Servicer shall maintain records of each Final Recovery Determination made
thereby.
"Fitch": Fitch Ratings or its successor in interest.
"Fraud Loss": Any Realized Loss or portion thereof sustained by
reason of a default arising from intentional fraud, dishonesty or
misrepresentation in connection with the related Mortgage Loan, including by
reason of the denial of coverage under any related Primary Mortgage Insurance
Policy.
"Fraud Loss Amount": As of any date of determination after the
Cut-off Date, an amount equal to: (x) prior to the first anniversary of the
Cut-off Date an amount equal to 2.00% of the aggregate principal balance of the
Mortgage Loans as of the Cut-off Date minus the aggregate amount of Fraud Losses
on the Mortgage Loans allocated solely to the Subordinate Certificates in
accordance with Section 4.04 since the Cut-off Date up to such date of
determination and (y) from the first to the fifth anniversary of the Cut-off
Date, an amount equal to (1) the lesser of (a) the Fraud Loss Amount as of the
most recent anniversary of the Cut-off Date and (b) 1.00% of the aggregate
outstanding principal balance of all of the Mortgage Loans as of the most recent
anniversary of the Cut-off Date minus (2) the Fraud Losses on the Mortgage Loans
allocated solely to the Subordinate Certificates in accordance with Section 4.04
since the Cut-off Date up to such date of determination. In addition, after the
Certificate Principal Balances of the Subordinate Certificates are reduced to
zero, the Fraud Loss Amount will be zero.
"Xxxxxxx Mac": Xxxxxxx Mac, formally known as the Federal Home Loan
Mortgage Corporation, or any successor thereto.
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"Group I Mortgage Loan": A Mortgage Loan identified as a Group I
Mortgage Loan on the Mortgage Loan Schedule.
"Group I Mortgage Loan Component": With respect to each Group I
Mortgage Loan (except for Group I Mortgage Loans with an Expense Adjusted
Mortgage Rate (i) less than or equal to 5.50% per annum or (ii) greater than or
equal to 7.50% per annum), any of the two related components based on the
Applicable Fraction.
"Group I Senior Certificates": The Certificates in Certificate
Group I.
"Group II Mortgage Loan": A Mortgage Loan identified as a Group II
Mortgage Loan on the Mortgage Loan Schedule.
"Group II Mortgage Loan Component": With respect to each Group II
Mortgage Loan (except for Group II Mortgage Loans with an Expense Adjusted
Mortgage Rate (i) less than or equal to 5.50% per annum or (ii) greater than or
equal to 8.00% per annum), any of the two related components based on the
Applicable Fraction.
"Group II Senior Certificates": The Certificates in Certificate
Group II.
"Group III Mortgage Loan": A Mortgage Loan identified as a Group III
Mortgage Loan on the Mortgage Loan Schedule.
"Group III Mortgage Loan Component": With respect to each Group III
Mortgage Loan (except for Group III Mortgage Loans with an Expense Adjusted
Mortgage Rate (i) less than or equal to 5.00% per annum or (ii) greater than or
equal to 6.50% per annum), any of the two related components based on the
Applicable Fraction.
"Group III Senior Certificates": The Certificates in Certificate
Group III.
"Group IV Mortgage Loan": A Mortgage Loan identified as a Group
IV Mortgage Loan on the Mortgage Loan Schedule.
"Group IV Mortgage Loan Component": With respect to each Group IV
Mortgage Loan (except for Group IV Mortgage Loans with an Expense Adjusted
Mortgage Rate (i) less than or equal to 6.50% per annum or (ii) greater than or
equal to 7.00% per annum), any of the two related components based on the
Applicable Fraction.
"Group IV Senior Certificates": The Certificates in Certificate
Group IV.
"Independent": When used with respect to any specified Person, any
such Person who (a) is in fact independent of the Depositor, the Master Servicer
and their respective Affiliates, (b) does not have any direct financial interest
in or any material indirect financial interest in the Depositor, the Master
Servicer or any Affiliate thereof, and (c) is not connected with the Depositor,
the Master Servicer or any Affiliate thereof as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions;
provided, however, that a Person shall not
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fail to be Independent of the Depositor, the Master Servicer or any Affiliate
thereof merely because such Person is the beneficial owner of 1% or less of any
class of securities issued by the Depositor or the Master Servicer or any
Affiliate thereof, as the case may be.
"Independent Contractor": Either (i) any Person (other than the
Master Servicer) that would be an "independent contractor" with respect to REMIC
I within the meaning of Section 856(d)(3) of the Code if REMIC I were a real
estate investment trust (except that the ownership tests set forth in that
section shall be considered to be met by any Person that owns, directly or
indirectly, 35% or more of any Class of Certificates), so long as REMIC I does
not receive or derive any income from such Person and provided that the
relationship between such Person and the Trust Fund is at arm's length, all
within the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any
other Person (including the Master Servicer) if the Trustee has received an
Opinion of Counsel to the effect that the taking of any action in respect of any
REO Property by such Person, subject to any conditions therein specified, that
is otherwise herein contemplated to be taken by an Independent Contractor will
not cause such REO Property to cease to qualify as "foreclosure property" within
the meaning of Section 860G(a)(8) of the Code (determined without regard to the
exception applicable for purposes of Section 860D(a) of the Code), or cause any
income realized in respect of such REO Property to fail to qualify as Rents from
Real Property.
"Insurance Proceeds": Proceeds of any Primary Mortgage Insurance
Policy title policy, hazard policy or other insurance policy covering a Mortgage
Loan, to the extent such proceeds are not to be applied to the restoration of
the related Mortgaged Property or released to the Mortgagor in accordance with
the procedures that the Master Servicer would follow in servicing mortgage loans
held for its own account, subject to the terms and conditions of the related
Mortgage Note and Mortgage.
"Interest Accrual Period": With respect to any Distribution Date and
any Class of Regular Certificates (other than the Class PO Certificates), the
one-month period ending on the last day of the calendar month preceding the
month in which such Distribution Date occurs.
"Interest Distribution Amount": With respect to any Class of Regular
Certificates (other than the Class PO Certificates) for any Distribution Date,
an amount equal to one month's interest accrued during the most recently ended
Interest Accrual Period at the applicable Pass-Through Rate on the Certificate
Principal Balance or Notional Amount thereof immediately prior to such
Distribution Date. The Class PO Certificates are not entitled to distributions
in respect of interest and, accordingly, will not accrue interest. The Interest
Distribution Amount for any Class of Regular Certificates (a) will also include,
in the case of any Distribution Date subsequent to the initial Distribution
Date, the excess, if any, of the Interest Distribution Amount in respect of such
Certificates for the immediately preceding Distribution Date, over the aggregate
distributions of interest made in respect of such Certificates pursuant to
Section 4.01(a) on such immediately preceding Distribution Date, and (b) will be
reduced, in the case of any Distribution Date, by the amount of any Prepayment
Interest Shortfalls (to the extent not covered by payments by the Master
Servicer or the Special Servicer pursuant to Section 3.24) and Relief Act
Interest Shortfalls that were allocated to such Certificates on such
Distribution Date pursuant to Section 1.02. The Interest Distribution Amount for
any Class of Certificates will be based on a 360 day year consisting of twelve
30 day Interest Accrual Periods.
-23-
"Late Collections": With respect to any Mortgage Loan, all amounts
received subsequent to the Determination Date immediately following any Due
Period, whether as late payments of Monthly Payments or as Insurance Proceeds,
Liquidation Proceeds or otherwise, which represent late payments or collections
of principal and/or interest due (without regard to any acceleration of payments
under the related Mortgage and Mortgage Note) but delinquent for such Due Period
and not previously recovered.
"Liquidation Event": With respect to any Mortgage Loan, any of the
following events: (i) such Mortgage Loan is paid in full; (ii) a Final Recovery
Determination is made as to such Mortgage Loan; or (iii) such Mortgage Loan is
removed from REMIC I by reason of its being purchased, sold or replaced pursuant
to or as contemplated by Section 2.03 or Section 9.01. With respect to any REO
Property, either of the following events: (i) a Final Recovery Determination is
made as to such REO Property; or (ii) such REO Property is removed from REMIC I
by reason of its being purchased pursuant to Section 9.01.
"Liquidation Proceeds": The amount (including any Insurance Proceeds
or amounts received in respect of the rental of any REO Property prior to REO
Disposition) received by the Master Servicer in connection with (i) the taking
of all or a part of a Mortgaged Property by exercise of the power of eminent
domain or condemnation, (ii) the liquidation of a defaulted Mortgage Loan
through a trustee's sale, foreclosure sale or otherwise, or (iii) the
repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant
to or as contemplated by Section 2.03, Section 3.23 or Section 9.01.
"Loan Group": Any of Loan Group I, Loan Group II, Loan Group III
or Loan Group IV.
"Loan Group I": The Loan Group consisting of the Group I Mortgage
Loans. With respect to the Group I Senior Certificates, Loan Group I is
sometimes referred to herein as the related Loan Group and the Mortgage Loans in
such Loan Group are sometimes referred to herein as the related Mortgage Loans.
"Loan Group II": The Loan Group consisting of the Group II Mortgage
Loans. With respect to the Group II Senior Certificates, Loan Group II is
sometimes referred to herein as the related Loan Group and the Mortgage Loans in
such Loan Group are sometimes referred to herein as the related Mortgage Loans.
"Loan Group III": The Loan Group consisting of the Group III
Mortgage Loans. With respect to the Group III Senior Certificates, Loan Group
III is sometimes referred to herein as the related Loan Group and the Mortgage
Loans in such Loan Group are sometimes referred to herein as the related
Mortgage Loans.
"Loan Group IV": The Loan Group consisting of the Group IV Mortgage
Loans. With respect to the Group IV Senior Certificates, Loan Group IV is
sometimes referred to herein as the related Loan Group and the Mortgage Loans in
such Loan Group are sometimes referred to herein as the related Mortgage Loans.
-24-
"Loan-to-Value Ratio": As of any date of determination, the
fraction, expressed as a percentage, the numerator of which is the principal
balance of the related Mortgage Loan at such date and the denominator of which
is the Value of the related Mortgaged Property.
"Loss Mitigation Procedures": The customary policies and procedures
employed by the Master Servicer or the Special Servicer, as applicable, relating
to the realization on delinquent Mortgage Loans.
"Master Servicer": National City Mortgage Co. or any successor
master servicer appointed as herein provided, in its capacity as Master
Servicer hereunder.
"Master Servicer Event of Default": One or more of the events
described in Section 7.01.
"Master Servicer Remittance Date": With respect to any Distribution
Date, 12:00 p.m. New York time on the 24th calendar day of the month in which
such Distribution Date occurs (or the immediately preceding Business Day, if
such 24th day is not a Business Day).
"MERS": Mortgage Electronic Registration Systems, Inc., a
corporation organized and existing under the laws of the State of Delaware,
or any successor thereto.
"MERS(R) System": The system of recording transfers of Mortgages
electronically maintained by MERS.
"MIN": The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.
"MOM Loan": Any Mortgage Loans registered with MERS on the MERS(R)
System where MERS is designated as the mortgagee of such Mortgage Loan, solely
as nominee for the originator of such Mortgage Loan and its successors and
assigns, at the origination thereof.
"Monthly Payment": With respect to any Mortgage Loan, the scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the related Mortgagor from time to time under the related Mortgage Note,
determined: (a) after giving effect to (i) any Deficient Valuation and/or Debt
Service Reduction with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act or any state law providing for similar relief; (b) without giving
effect to any extension granted or agreed to by the Master Servicer pursuant to
Section 3.07; and (c) on the assumption that all other amounts, if any, due
under such Mortgage Loan are paid when due.
"Moody's": Xxxxx'x Investors Service, Inc. or its successor in
interest.
"Mortgage": The mortgage, deed of trust or other instrument creating
a first lien on, or first priority security interest in, a Mortgaged Property
securing a Mortgage Note.
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"Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.
"Mortgage Loan": Each mortgage loan transferred and assigned to the
Trustee pursuant to Section 2.01 or Section 2.03(d) of this Agreement, as from
time to time held as a part of the Trust Fund, the Mortgage Loans so held being
identified in the Mortgage Loan Schedule.
"Mortgage Loan Component": Any of the Group I Mortgage Loan
Components, Group II Mortgage Loan Components or Group III Mortgage Loan
Components.
"Mortgage Loan Purchase Agreement": The agreement between the
Depositor and the Seller regarding the transfer of the Mortgage Loans by the
Seller to or at the direction of the Depositor, substantially in the form of
Exhibit D annexed hereto.
"Mortgage Loan Schedule": As of any date, the list of Mortgage Loans
included in the Trust Fund on such date, attached hereto as Schedule 1. The
Mortgage Loan Schedule shall set forth the following information with respect to
each Mortgage Loan:
(i) the Master Servicer's Mortgage Loan identifying
number;
(ii) [reserved];
(iii) the state and zip code;
(iv) a code indicating whether the Mortgaged Property is
owner-occupied;
(v) the type of Residential Dwelling constituting the
Mortgaged Property;
(vi) the original months to maturity;
(vii) the original date of the mortgage;
(viii) the Loan-to-Value Ratio at origination;
(ix) the Mortgage Rate;
(x) the date on which the first Monthly Payment was due
on the Mortgage Loan;
(xi) the stated maturity date;
(xii) the amount of the Monthly Payment as of the Cut-off
Date;
(xiii) the last Due Date on which a Monthly Payment was
actually applied to the unpaid Stated Principal Balance;
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(xiv) the original principal amount of the Mortgage Loan;
(xv) the Scheduled Principal Balance of the Mortgage Loan
as of the close of business on the Cut-off Date;
(xvi) a code indicating the purpose of the Mortgage Loan
(i.e., purchase financing, Rate/Term Refinancing, Cash-Out
Refinancing);
(xvii) the Value of the Mortgaged Property;
(xviii) the actual unpaid principal balance of the Mortgage
Loan as of the Cut-off Date;
(xx) the Class PO Percentage;
(xxi) the Loan Group;
(xxii) a code indicating the documentation program and a
code indicating the occupancy status; and
(xxiii) a code indicating if the Mortgage Loan is subject to
a Primary Mortgage Insurance Policy and the rate at which the
premium payable in connection with any lender-paid Primary Mortgage
Insurance Policy is calculated, if applicable.
The Mortgage Loan Schedule shall set forth the following information
with respect to the Mortgage Loans in the aggregate as of the Cut-off Date: (1)
the number of Mortgage Loans; (2) the current principal balance of the Mortgage
Loans; (3) the weighted average Mortgage Rate of the Mortgage Loans; (4) the
weighted average maturity of the Mortgage Loans; (5) the Scheduled Principal
Balance of the Mortgage Loans as of the close of business on the Cut-off Date
(not taking into account any Principal Prepayments received on the Cut-off
Date); and (6) the amount of the Monthly Payment as of the Cut-off Date. The
Mortgage Loan Schedule shall be amended from time to time by the Depositor in
accordance with the provisions of this Agreement. With respect to any Qualified
Substitute Mortgage Loan, Cut-off Date shall refer to the related Cut-off Date
for such Mortgage Loan, determined in accordance with the definition of Cut-off
Date herein.
"Mortgage Note": The original executed note or other evidence of the
indebtedness of a Mortgagor under a Mortgage Loan; provided, however, that with
respect to a Mortgage Loan on a Mortgaged Property located in the State of
Texas, the Mortgage Note may read "Renewal and Extension."
"Mortgage Pool": The pool of Mortgage Loans consisting of Loan Group
I, Loan Group II, Loan Group III and Loan Group IV, identified on Schedule 1
from time to time, and any REO Properties acquired in respect thereof.
"Mortgage Rate": The annual rate at which interest accrues on such
Mortgage Loan from time to time in accordance with the provisions of the related
Mortgage Note, without regard
-27-
to any reduction thereof as a result of a Debt Service Reduction or operation of
the Relief Act or any state law providing for similar relief. With respect to
each Mortgage Loan that becomes an REO Property, as of any date of
determination, the annual rate determined in accordance with the immediately
preceding sentence as of the date such Mortgage Loan became an REO Property.
"Mortgaged Property": The underlying property securing a Mortgage
Loan, including any REO Property, consisting of an Estate in Real Property
improved by a Residential Dwelling.
"Mortgagor": The obligor on a Mortgage Note.
"Net Mortgage Rate": With respect to any Mortgage Loan (or the
related REO Property) as of any date of determination, a per annum rate of
interest equal to the then applicable Mortgage Rate for such Mortgage Loan minus
the Servicing Fee Rate.
"New Lease": Any lease of REO Property entered into on behalf of
REMIC I, including any lease renewed or extended on behalf of REMIC I, if REMIC
I has the right to renegotiate the terms of such lease.
"Non-Class PO Percentage": With respect to each Class PO Mortgage
Loan, 100% less the applicable Class PO Percentage.
"Nonrecoverable P&I Advance": Any P&I Advance previously made or
proposed to be made in respect of a Mortgage Loan or REO Property that, in the
good faith business judgment of the Master Servicer, will not or, in the case of
a proposed P&I Advance, would not be ultimately recoverable from related late
payments, Insurance Proceeds or Liquidation Proceeds on such Mortgage Loan or
REO Property as provided herein.
"Non-United States Person": Any Person other than a United States
Person.
"Notional Amount": The Notional Amount of the Class XS-1
Certificates as of any date of determination is equal to the product of (i) the
aggregate Stated Principal Balance of the Group I Mortgage Loans that have
Expense Adjusted Net Mortgage Rates equal to or greater than 7.50% per annum and
(ii) a fraction, the numerator of which is (x) the excess of (A) the weighted
average of the Expense Adjusted Net Mortgage Rates of the Group I Mortgage Loans
that have Expense Adjusted Net Mortgage Rates equal to or greater than 7.50% per
annum over (B) 7.50% per annum, and the denominator of which is (y) 7.50% per
annum. The Notional Amount of the Class XS-2 Certificates as of any date of
determination is equal to the product of (i) the aggregate Stated Principal
Balance of the Group II Mortgage Loans that have Expense Adjusted Net Mortgage
Rates equal to or greater than 8.00% per annum and (ii) a fraction, the
numerator of which is (x) the excess of (A) the weighted average of the Expense
Adjusted Net Mortgage Rates
-28-
of the Group II Mortgage Loans that have Expense Adjusted Net Mortgage Rates
equal to or greater than 8.00% per annum over (B) 8.00% per annum, and the
denominator of which is (y) 8.00% per annum. The Notional Amount of the Class
XS-3 Certificates as of any date of determination is equal to the product of (i)
the aggregate Stated Principal Balance of the Group III Mortgage Loans that have
Expense Adjusted Net Mortgage Rates equal to or greater than 6.50% per annum and
(ii) a fraction, the numerator of which is (x) the excess of (A) the weighted
average of the Expense Adjusted Net Mortgage Rates of the Group III Mortgage
Loans that have Expense Adjusted Net Mortgage Rates equal to or greater than
6.50% per annum over (B) 6.50% per annum, and the denominator of which is (y)
6.50% per annum. The Notional Amount of the Class XS-4 Certificates as of any
date of determination is equal to the product of (i) the aggregate Stated
Principal Balance of the Group IV Mortgage Loans that have Expense Adjusted Net
Mortgage Rates equal to or greater than 7.00% per annum and (ii) a fraction, the
numerator of which is (x) the excess of (A) the weighted average of the Expense
Adjusted Net Mortgage Rates of the Group IV Mortgage Loans that have Expense
Adjusted Net Mortgage Rates equal to or greater than 7.00% per annum over (B)
7.00% per annum, and the denominator of which is (y) 7.00% per annum. For
federal income tax purposes, the Class XS-1 Certificates, Class XS-2
Certificates, Class XS-3 Certificates and Class XS-4 Certificates will not have
Notional Amounts, but will be entitled to 100% of amounts distributed on REMIC
II Regular Interest II-LTXS1, REMIC II Regular Interest II-LTXS2, REMIC II
Regular Interest II-LTXS3 and REMIC II Regular Interest II-LTXS4, respectively.
"Officers' Certificate": A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), and by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Seller or the Depositor, as
applicable; with respect to the Master Servicer, any officer who is authorized
to act for the Master Servicer in matters relating to this Agreement, and whose
action is binding upon the Master Servicer, initially including those
individuals whose names appear on the list of authorized officers delivered at
the closing.
"Opinion of Counsel": A written opinion of counsel, who may, without
limitation, be salaried counsel for the Depositor or the Master Servicer,
acceptable to the Trustee, except that any opinion of counsel relating to (a)
the qualification of any Trust REMIC as a REMIC or (b) compliance with the REMIC
Provisions must be an opinion of Independent counsel.
"Original Group I Mortgage Loan": Any Mortgage Loan included in Loan
Group I as of the Closing Date.
"Original Group II Mortgage Loan": Any Mortgage Loan included in
Loan Group II as of the Closing Date.
"Original Group III Mortgage Loan": Any Mortgage Loan included in
Loan Group III as of the Closing Date.
"Original Group IV Mortgage Loan": Any Mortgage Loan included in
Loan Group IV as of the Closing Date.
"Overcollateralized Amount": As to any Distribution Date, an amount
equal to the sum of the Undercollateralized Amounts for the unrelated Classes of
Class A Certificates.
"Overcollateralizated Subgroup": As to any Distribution Date on
which there is one or more Undercollateralizated Subgroups, any Subgroup for
which there is no Undercollateralized Amount.
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"Ownership Interest": As to any Certificate, any ownership or
security interest in such Certificate, including any interest in such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial, as owner or as pledgee.
"Pass-Through Rate":
With respect to the Class IA-CB1 Certificates and any Distribution
Date, 5.50% per annum.
With respect to the Class IA-CB2 Certificates and any Distribution
Date, 6.75% per annum.
With respect to the Class IA-CB3 Certificates and any Distribution
Date, 7.50% per annum.
With respect to the Class IIA-CB1 Certificates and any Distribution
Date, 5.50% per annum.
With respect to the Class IIA-CB2 Certificates and any Distribution
Date, 6.75% per annum.
With respect to the Class IIA-CB3 Certificates and any Distribution
Date, 8.00% per annum.
With respect to the Class IIIA-CB1 Certificates and any Distribution
Date, 5.00% per annum.
With respect to the Class IIIA-CB2 Certificates and any Distribution
Date, 6.50% per annum.
With respect to the Class IVA-1 Certificates and any Distribution
Date, 6.50% per annum.
With respect to the Class IVA-2 Certificates and any Distribution
Date, 7.00% per annum.
With respect to the Class XS-1 Certificates and any Distribution
Date, 7.50% per annum. For federal income tax purposes, the Class XS-1
Certificates will not have a Pass-Through Rate, but will be entitled to
100% of amounts distributed on REMIC II Regular Interest II-LTXS1.
With respect to the Class XS-2 Certificates and any Distribution
Date, 8.00% per annum. For federal income tax purposes, the Class XS-2
Certificates will not have a Pass-Through Rate, but will be entitled to
100% of amounts distributed on REMIC II Regular Interest II-LTXS2.
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With respect to the Class XS-3 Certificates and any Distribution
Date, 6.50% per annum. For federal income tax purposes, the Class XS-3
Certificates will not have a Pass-Through Rate, but will be entitled to
100% of amounts distributed on REMIC II Regular Interest II-LTXS3.
With respect to the Class XS-4 Certificates and any Distribution
Date, 7.00% per annum. For federal income tax purposes, the Class XS-4
Certificates will not have a Pass-Through Rate, but will be entitled to
100% of amounts distributed on REMIC II Regular Interest II-LTXS4.
With respect to any Class of the Subordinate Certificates and any
Distribution Date, a rate per annum equal to the weighted average,
weighted in proportion to the results of subtracting from the aggregate
Stated Principal Balance of each Subgroup the aggregate Certificate
Principal Balance of the related Class A Certificates, Class PO
Certificates and related Class R Certificates, of 5.50% per annum (with
respect to Subgroup IA-1), 6.75% per annum (with respect to Subgroup
IA-2), 7.50% (with respect to Subgroup IA-3), 5.50% per annum (with
respect to Subgroup IIA-1), 6.75% per annum (with respect to Subgroup
IIA-2), 8.00% (with respect to Subgroup IIA-3), 5.00% (with respect to
Subgroup IIIA-1), 6.50% per annum (with respect to Subgroup IIIA-2), 6.50%
(with respect to Subgroup IVA-1) and 7.00% per annum (with respect to
Subgroup IVA-2). For federal income tax purposes, the equivalent of the
foregoing shall be expressed as the weighted average of the REMIC II
Remittance Rates on each REMIC II Regular Interest ending with the
designation "A", weighted on the basis of the Uncertificated Balance of
each such REMIC II Regular Interest.
The Class PO Certificates shall have a Pass-Through Rate of 0.00%
per annum and shall not be entitled to any distributions of interest.
"Percentage Interest": With respect to any Certificate of any Class,
the portion of the respective Class evidenced by such Certificate, expressed as
a percentage, the numerator of which is the initial Certificate Principal
Balance or Notional Amount represented by such Certificate, and the denominator
of which is the initial aggregate Certificate Principal Balance or Notional
Amount of all of the Certificates of such Class. The Book-Entry Certificates are
issuable only in Percentage Interests corresponding to initial Certificate
Principal Balances of $100,000 and integral multiples of $1.00 in excess
thereof. The Private Certificates are issuable only in Percentage Interests
corresponding to the initial Certificate Principal Balances or Notional Amounts
of $100,000 and integral multiples of $1,000 in excess thereof; provided,
however, that a single Certificate of each such Class of Certificates may be
issued having a Percentage Interest corresponding to the remainder of the
aggregate initial Certificate Principal Balance or Notional Amount of such Class
or to an otherwise authorized denomination for such Class plus such remainder.
The Residual Certificates are issuable only in Percentage Interests of 20% and
multiples thereof.
"Permitted Investments": Any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
regardless of whether issued by the Depositor, the Master Servicer, the Trustee
or any of their respective Affiliates:
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(i) direct obligations of, or obligations fully guaranteed as
to timely payment of principal and interest by, the United States or
any agency or instrumentality thereof, provided such obligations are
backed by the full faith and credit of the United States;
(ii) demand and time deposits in, certificates of deposit of,
or bankers' acceptances (which shall each have an original maturity
of not more than 90 days and, in the case of bankers' acceptances,
shall in no event have an original maturity of more than 365 days or
a remaining maturity of more than 30 days) denominated in United
States dollars and issued by, any Depository Institution;
(iii) repurchase obligations with respect to any security
described in clause (i) above entered into with a Depository
Institution (acting as principal);
(iv) securities bearing interest or sold at a discount that
are issued by any corporation incorporated under the laws of the
United States of America or any state thereof and that are rated by
each Rating Agency in its highest long-term unsecured rating
category at the time of such investment or contractual commitment
providing for such investment;
(v) commercial paper (including both non-interest-bearing
discount obligations and interest-bearing obligations payable on
demand or on a specified date not more than 30 days after the date
of acquisition thereof) that is rated by each Rating Agency in its
highest short-term unsecured debt rating available at the time of
such investment;
(vi) units of money market funds, including money market funds
managed or advised by the Trustee or an Affiliate thereof, that have
been rated "Aaa" by Xxxxx'x and "AAA" by Fitch (or "AAA" by S&P, if
not rated by Fitch); and
(vii) if previously confirmed in writing to the Trustee, any
other demand, money market or time deposit, or any other obligation,
security or investment, as may be acceptable to each Rating Agency
as a permitted investment of funds backing securities having ratings
equivalent to its highest initial rating of the Senior Certificates;
provided, however, that no instrument described hereunder shall evidence either
the right to receive (a) only interest with respect to the obligations
underlying such instrument or (b) both principal and interest payments derived
from obligations underlying such instrument and the interest and principal
payments with respect to such instrument provide a yield to maturity at par
greater than 120% of the yield to maturity at par of the underlying obligations.
"Permitted Transferee": Any Transferee of a Residual Certificate
other than a Disqualified Organization or Non-United States Person.
"Person": Any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
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"P&I Advance": As to any Mortgage Loan or REO Property, any advance
made by the Master Servicer or Special Servicer in respect of any Distribution
Date pursuant to Section 4.03.
"Plan": Any employee benefit plan or certain other retirement plans
and arrangements, including individual retirement accounts and annuities, Xxxxx
plans and bank collective investment funds and insurance company general or
separate accounts in which such plans, accounts or arrangements are invested,
that are subject to ERISA or Section 4975 of the Code.
"Prepayment Assumption": A prepayment rate for the Mortgage Loans of
16% constant rate of prepayment. The Prepayment Assumption is used solely for
determining the accrual of original issue discount on the Certificates for
federal income tax purposes.
"Prepayment Interest Excess": With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Distribution Date occurs and the
Determination Date of the calendar month in which such Distribution Date occurs,
an amount equal to interest (to the extent received) at the applicable Net
Mortgage Rate on the amount of such Principal Prepayment for the number of days
commencing on the first day of the calendar month in which such Distribution
Date occurs and ending on the last date through which interest is collected from
the related Mortgagor.
"Prepayment Interest Shortfall": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment in
full or in part during the portion of the related Prepayment Period occurring
between the first day of the related Prepayment Period and the last day of the
calendar month preceding the month in which such Distribution Date occurs, an
amount equal to one month's interest on the Mortgage Loan less any payments in
respect of interest for such month made by the Mortgagor. The obligations of the
Master Servicer in respect of any Prepayment Interest Shortfall are set forth in
Section 3.24.
"Prepayment Period": With respect to any Distribution Date, the
period commencing on the day after the Determination Date in the month preceding
the month in which such Distribution Date falls (or, in the case of the first
Distribution Date, commencing August 1, 2004) and ending on the Determination
Date of the calendar month in which such Distribution Date falls.
"Primary Mortgage Insurance Policy": Each primary policy of mortgage
guaranty insurance in effect as represented in the Mortgage Loan Purchase
Agreement and as so indicated on the Mortgage Loan Schedule, or any replacement
policy therefor obtained by the Master Servicer or any Sub-Servicer pursuant to
Section 3.13. Any Mortgage Loan which has a Primary Mortgage Insurance Policy is
set forth on Schedule 2 attached hereto.
"Principal Prepayment": Any payment of principal made by the
Mortgagor on a Mortgage Loan which is received in advance of its scheduled Due
Date and which is not accompanied by an amount of interest representing the full
amount of scheduled interest due on any Due Date in any month or months
subsequent to the month of prepayment.
"Private Certificates": As defined in Section 5.02(b).
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"Purchase Price": With respect to any Mortgage Loan or REO Property
to be purchased pursuant to or as contemplated by Section 2.03 or Section 9.01,
and as confirmed by an Officers' Certificate from the Master Servicer to the
Trustee, an amount equal to the sum of: (i) 100% of the Stated Principal Balance
thereof as of the date of purchase (or such other price as provided in Section
9.01), (ii) in the case of (x) a Mortgage Loan, accrued interest on such Stated
Principal Balance at the applicable Net Mortgage Rate in effect from time to
time from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an advance by the Master Servicer, which payment or advance had as
of the date of purchase been distributed pursuant to Section 4.01, through the
end of the calendar month in which the purchase is to be effected, and (y) an
REO Property, the sum of (1) accrued interest on such Stated Principal Balance
at the applicable Net Mortgage Rate in effect from time to time from the Due
Date as to which interest was last covered by a payment by the Mortgagor or an
advance by the Master Servicer through the end of the calendar month immediately
preceding the calendar month in which such REO Property was acquired, plus (2)
REO Imputed Interest for such REO Property for each calendar month commencing
with the calendar month in which such REO Property was acquired and ending with
the calendar month in which such purchase is to be effected, minus the total of
all net rental income, Insurance Proceeds, Liquidation Proceeds and P&I Advances
that as of the date of purchase had been distributed as or to cover REO Imputed
Interest pursuant to Section 4.01; (iii) any unreimbursed Servicing Advances and
P&I Advances and any unpaid Servicing Fees allocable to such Mortgage Loan or
REO Property; (iv) any amounts previously withdrawn from the Collection Account
in respect of such Mortgage Loan or REO Property pursuant to Sections
3.11(a)(ix) and Section 3.16(b); (v) in the case of a Mortgage Loan required to
be purchased pursuant to Section 2.03, expenses reasonably incurred or to be
incurred by the Master Servicer or the Trustee in respect of the breach or
defect giving rise to the purchase obligation; and (vi) an amount equal to any
liability, penalty or expense that was actually incurred and paid out of or on
behalf of the Trust Fund in connection with the breach of any representation or
warranty related to predatory lending laws.
"Qualified Insurer": Any insurer which meets the requirements of
Xxxxxx Mae and Xxxxxxx Mac.
"Qualified Substitute Mortgage Loan": A mortgage loan substituted
for a Deleted Mortgage Loan pursuant to the terms of this Agreement which must,
on the date of such substitution, (i) have an outstanding principal balance,
after application of all scheduled payments of principal and interest due during
or prior to the month of substitution, not in excess of the Scheduled Principal
Balance of the Deleted Mortgage Loan as of the Due Date in the calendar month
during which the substitution occurs, (ii) have a Mortgage Rate not less than
(and not more than one percentage point in excess of) the Mortgage Rate of the
Deleted Mortgage Loan, (iii) have a remaining term to maturity not greater than
(and not more than one year less than) that of the Deleted Mortgage Loan, (iv)
have the same Due Date as the Due Date on the Deleted Mortgage Loan, (v) have a
Loan-to-Value Ratio as of the date of substitution equal to or lower than the
Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (vi) be
covered under a Primary Mortgage Insurance Policy if such Qualified Substitute
Mortgage Loan has a Loan-to-Value Ratio in excess of 80% and the Deleted
Mortgage Loan was covered by a Primary Mortgage Insurance Policy and (vii)
conform to each representation and warranty set forth in Section 6 of the
Mortgage Loan Purchase Agreement applicable to the Deleted Mortgage Loan. In the
event that one or more mortgage loans are substituted for one or more Deleted
Mortgage Loans, the amounts described in clause (i) hereof shall
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be determined on the basis of aggregate principal balances, the Mortgage Rates
described in clause (ii) hereof shall be determined on the basis of weighted
average Mortgage Rates, the terms described in clause (iii) shall be determined
on the basis of weighted average remaining terms to maturity, the Loan-to-Value
Ratios described in clause (v) hereof shall be satisfied as to each such
mortgage loan; provided that no Mortgage Loan have a maturity date after the
"latest possible maturity date" identified in the Preliminary Statement and,
except to the extent otherwise provided in this sentence, the representations
and warranties described in clause (vii) hereof must be satisfied as to each
Qualified Substitute Mortgage Loan or in the aggregate, as the case may be.
"Rate/Term Refinancing": A Refinanced Mortgage Loan, the proceeds of
which are not more than $1,000 in excess of the existing first mortgage loan and
any subordinate mortgage loan on the related Mortgaged Property and related
closing costs, and were used exclusively (except for such $1,000) to satisfy the
then existing first mortgage loan and any subordinate mortgage loan of the
Mortgagor on the related Mortgaged Property and to pay related closing costs.
"Rating Agency": Xxxxx'x and Fitch or their successors. If such
agencies or their successors are no longer in existence, the "Rating Agencies"
shall be such nationally recognized statistical rating agencies, or other
comparable Persons, designated by the Depositor, notice of which designation
shall be given to the Trustee and Master Servicer. References herein to "the
Rating Agency" shall be deemed to refer to both Rating Agencies, as the context
may require.
"Realized Loss": With respect to each Mortgage Loan as to which a
Final Recovery Determination has been made, an amount (not less than zero) equal
to (i) the unpaid principal balance of such Mortgage Loan as of the commencement
of the calendar month in which the Final Recovery Determination was made, plus
(ii) accrued interest from the Due Date as to which interest was last paid by
the Mortgagor through the end of the calendar month in which such Final Recovery
Determination was made, calculated in the case of each calendar month during
such period (A) at an annual rate equal to the annual rate at which interest was
then accruing on such Mortgage Loan and (B) on a principal amount equal to the
Stated Principal Balance of such Mortgage Loan as of the close of business on
the Distribution Date during such calendar month, plus (iii) any amounts
previously withdrawn from the Collection Account in respect of such Mortgage
Loan pursuant to Section 3.11(a)(ix) and Section 3.16(b), minus (iv) the
proceeds, if any, received in respect of such Mortgage Loan prior to the date
such Final Recovery Determination was made, net of amounts that are payable
therefrom to the Master Servicer with respect to such Mortgage Loan pursuant to
Section 3.11(a)(iii)(A) and (B).
With respect to any REO Property as to which a Final Recovery
Determination has been made an amount (not less than zero) equal to (i) the
unpaid principal balance of the related Mortgage Loan as of the date of
acquisition of such REO Property on behalf of REMIC I, plus (ii) accrued
interest from the Due Date as to which interest was last paid by the Mortgagor
in respect of the related Mortgage Loan through the calendar month in which such
Final Recovery Determination was made, calculated in the case of each calendar
month during such period (A) at an annual rate equal to the annual rate at which
interest was then accruing on the related Mortgage Loan and (B) on a principal
amount equal to the Stated Principal Balance of the related Mortgage Loan as of
the close of business on the Distribution Date during such calendar month, plus
(iii) any amounts previously withdrawn from the Collection Account in respect of
the related Mortgage Loan pursuant
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to Section 3.11(a)(ix) and Section 3.16(b), minus (iv) the aggregate of all P&I
Advances and Servicing Advances made by the Master Servicer or the Special
Servicer in respect of such REO Property or the related Mortgage Loan and any
unpaid Servicing Fees for which the Master Servicer has been or, in connection
with such Final Recovery Determination, will be reimbursed pursuant to Section
3.11(a)(iii)(A) or (B) or Section 3.23 out of rental income, Insurance Proceeds
and Liquidation Proceeds received in respect of such REO Property, minus (v) the
total of all net rental income, Insurance Proceeds and Liquidation Proceeds
received in respect of such REO Property that has been, or in connection with
such Final Recovery Determination, will be transferred to the Distribution
Account pursuant to Section 3.23.
With respect to each Mortgage Loan which has become the subject of a
Deficient Valuation, the difference between the principal balance of the
Mortgage Loan outstanding immediately prior to such Deficient Valuation and the
principal balance of the Mortgage Loan as reduced by the Deficient Valuation.
With respect to each Mortgage Loan which has become the subject of a
Debt Service Reduction, the portion, if any, of the reduction in each affected
Monthly Payment attributable to a reduction in the Mortgage Rate imposed by a
court of competent jurisdiction. Each such Realized Loss shall be deemed to have
been incurred on the Due Date for each affected Monthly Payment.
To the extent the Trust Fund receives Subsequent Recoveries with
respect to any Mortgage Loan, the amount of the Realized Loss with respect to
that Mortgage Loan will be reduced to the extent such recoveries are applied to
reduce the Certificate Principal Balance of any Class of Certificates on any
Distribution Date.
"Record Date": With respect to each Distribution Date and
Certificate, the last Business Day of the month immediately preceding the month
in which such Distribution Date occurs.
"Refinanced Mortgage Loan": A Mortgage Loan the proceeds of which
were not used to purchase the related Mortgaged Property.
"Regular Certificate": Any Senior Certificate or Subordinate
Certificate.
"Regular Interest": A "regular interest" in a REMIC within the
meaning of Section 860G(a)(1) of the Code.
"Relief Act": The Servicemembers Civil Relief Act.
"Relief Act Interest Shortfall": With respect to any Distribution
Date and any Mortgage Loan, any reduction in the amount of interest collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act or any state law providing for similar relief.
"REMIC": A "real estate mortgage investment conduit" within the
meaning of Section 860D of the Code.
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"REMIC I": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to which a REMIC election is to be made, consisting of: (i) such
Mortgage Loans as from time to time are subject to this Agreement, together with
the Mortgage Files relating thereto, and together with all collections thereon
and proceeds thereof; (ii) any REO Property, together with all collections
thereon and proceeds thereof; (iii) the Trustee's rights under all insurance
policies required to be maintained pursuant to this Agreement and any proceeds
thereof; (iv) the Depositor's rights under the Mortgage Loan Purchase Agreement
(including any security interests created thereby); and (v) the Collection
Account, the Distribution Account and any REO Account and such assets that are
deposited therein from time to time and any investments thereof, together with
any and all income, proceeds and payments with respect thereto. Notwithstanding
the foregoing, however, REMIC I specifically excludes all payments and other
collections of principal and interest due on the Mortgage Loans on or before the
Cut-off Date.
"REMIC I Regular Interests": The REMIC I Regular Interests, as
defined in the Preliminary Statement.
"REMIC I Remittance Rate": With respect to REMIC I Regular Interest
I-LT-1, REMIC I Regular Interest I-LT-2, REMIC I Regular Interest I-LT-3, REMIC
I Regular Interest I-LT-4, REMIC I Regular Interest I-LT-5, REMIC I Regular
Interest I-LT-6, REMIC I Regular Interest I-LT-7, REMIC I Regular Interest
I-LT-8, REMIC I Regular Interest I-LT-9, REMIC I Regular Interest I-LT-R, REMIC
I Regular Interest I-LT-PO1, REMIC I Regular Xxxxxxxx X-XX-XX0, REMIC I Regular
Interest I-LT-PO3 and REMIC I Regular Xxxxxxxx X-XX-XX0, the rate set forth in
the Preliminary Statement. With respect to REMIC I Regular Interest I-LT-XS1,
REMIC I Regular Interest I-LT-XS2, REMIC I Regular Interest I-LT-XS3 and REMIC I
Regular Interest I-LT-XS4, the Weighted Average Stripped Interest Rate for the
Group I Mortgage Loans, Group II Mortgage Loans, Group III Mortgage Loans and
the Group IV Mortgage Loans, respectively, weighted on the basis of the
aggregate Stated Principal Balances of the Group I Mortgage Loans, Group II
Mortgage Loans, Group III Mortgage Loans and the Group IV Mortgage Loans,
respectively.
"REMIC II": The segregated pool of assets consisting of all of the
REMIC I Regular Interests conveyed in trust to the Trustee for the benefit of
the Certificateholders pursuant to Section 2.06, with respect to which a
separate REMIC election is to be made.
"REMIC II Regular Interests": The REMIC II Regular Interests, as
defined in the Preliminary Statement.
"REMIC II Remittance Rate": With respect to REMIC II Regular
Interest II-LT-1A, REMIC II Regular Interest II-LT-1B, REMIC II Regular Interest
II-LT-2A, REMIC II Regular Interest II-LT-2B, REMIC II Regular Interest
II-LT-3A, REMIC II Regular Interest II-LT-3B, REMIC II Regular Interest
II-LT-4A, REMIC II Regular Interest II-LT-4B, REMIC II Regular Interest
II-LT-5A, REMIC II Regular Interest II-LT-5B, REMIC II Regular Interest
II-LT-6A, REMIC II Regular Interest II-LT-6B, REMIC II Regular Interest
II-LT-7A, REMIC II Regular Interest II-LT-7B, REMIC II Regular Interest
II-LT-8A, REMIC II Regular Interest II-LT-8B, REMIC II Regular Interest
II-LT-9A, REMIC II Regular Interest II-LT-9B, REMIC I Regular Interest II-LT-R,
REMIC II Regular Interest II-LT-PO1, REMIC II Regular Interest II-LT-PO2, REMIC
II
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Regular Interest II-LT-PO3 and REMIC II Regular Interest II-LT-PO4, the rate set
forth in the Preliminary Statement. REMIC II Regular Interest II-LT-XS1, REMIC
II Regular Interest II-LT-XS2, REMIC II Regular Interest II-LT-XS3 and REMIC II
Regular Interest II-LT-XS4 will not have REMIC II Remittance Rate, but will be
entitled to 100% of amounts received on REMIC I Regular Interest I-LT-XS1, REMIC
I Regular Interest I-LT-XS2, REMIC I Regular Interest I-LT-XS3 and REMIC I
Regular Interest I-LT-XS4, respectively.
"REMIC II Subordinated Balance Ratio": The ratio among the
Uncertificated Balances of each REMIC II Regular Interest ending with the
designation "A,", equal to the ratio among, with respect to each such REMIC II
Regular Interest, the excess of (x) the aggregate Stated Principal Balance of
each Mortgage Loan that is not a Class PO Mortgage Loan in the related Loan
Group over (y) the current Certificate Principal Balance of Class A Certificates
in the related Loan Group.
"REMIC III": The segregated pool of assets consisting of all of the
REMIC II Regular Interests conveyed in trust to the Trustee for the benefit of
the Certificateholders pursuant to Section 2.07, with respect to which a
separate REMIC election is to be made.
"REMIC Provisions": Provisions of the federal income tax law
relating to real estate mortgage investment conduits, which appear at Section
860A through 860G of the Code, and related provisions, and proposed, temporary
and final regulations and published rulings, notices and announcements
promulgated thereunder, as the foregoing may be in effect from time to time.
"Remittance Report": A report in form and substance acceptable to
the Trustee prepared by the Master Servicer pursuant to Section 4.03 with such
additions, deletions and modifications as agreed to by the Trustee and the
Master Servicer.
"Rents from Real Property": With respect to any REO Property, gross
income of the character described in Section 856(d) of the Code as being
included in the term "rents from real property."
"REO Account": The account or accounts maintained by the Master
Servicer in respect of an REO Property pursuant to Section 3.23.
"REO Disposition": The sale or other disposition of an REO Property
on behalf of REMIC I.
"REO Imputed Interest": As to any REO Property, for any calendar
month during which such REO Property was at any time part of REMIC I, one
month's interest at the applicable Net Mortgage Rate on the Stated Principal
Balance of such REO Property (or, in the case of the first such calendar month,
of the related Mortgage Loan if appropriate) as of the close of business on the
Distribution Date in such calendar month.
"REO Principal Amortization": With respect to any REO Property, for
any calendar month, the excess, if any, of (a) the aggregate of all amounts
received in respect of such REO Property during such calendar month, whether in
the form of rental income, sale proceeds (including,
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without limitation, that portion of the Termination Price paid in connection
with a purchase of all of the Mortgage Loans and REO Properties pursuant to
Section 9.01 that is allocable to such REO Property) or otherwise, net of any
portion of such amounts (i) payable pursuant to Section 3.23(c) in respect of
the proper operation, management and maintenance of such REO Property or (ii)
payable or reimbursable to the Master Servicer pursuant to Section 3.23(d) for
unpaid Servicing Fees in respect of the related Mortgage Loan and unreimbursed
Servicing Advances and P&I Advances in respect of such REO Property or the
related Mortgage Loan, over (b) the REO Imputed Interest in respect of such REO
Property for such calendar month.
"REO Property": A Mortgaged Property acquired by the Master
Servicer, any Sub-Servicer or the Special Servicer on behalf of the Trust Fund
through foreclosure or deed-in-lieu of foreclosure, as described in Section
3.23.
"Request for Release": A release signed by a Servicing Officer, or
in a mutually agreeable electronic format which will, in lieu of a signature on
its face, originate from a Servicing Officer, in the form of Exhibit E attached
hereto.
"Residential Dwelling": Any one of the following: (i) an attached or
detached one-family dwelling, (ii) a detached two- to four-family dwelling,
(iii) a one-family dwelling unit in a Xxxxxx Xxx eligible condominium project,
or (iv) a detached one-family dwelling in a planned unit development, none of
which is a co-operative, mobile or manufactured home (as defined in 00 Xxxxxx
Xxxxxx Code, Section 5402(6)).
"Residual Certificate": Any one of the Class R Certificates.
"Residual Interest": The sole class of "residual interests" in a
REMIC within the meaning of Section 860G(a)(2) of the Code.
"Responsible Officer": When used with respect to the Trustee, the
President, any vice president, any assistant vice president, the Secretary, any
assistant secretary, the Treasurer, any assistant treasurer, any trust officer
or assistant trust officer, the Controller and any assistant controller or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and, with respect to a
particular matter, to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject and in each case who
shall have direct responsibility for the administration of this Agreement.
"S&P": Standard & Poor's, a division of The XxXxxx-Xxxx Companies,
Inc., or its successor in interest.
"Scheduled Principal Balance": With respect to any Mortgage Loan:
(a) as of the Cut-off Date, the outstanding principal balance of such Mortgage
Loan as of such date, net of the principal portion of all unpaid Monthly
Payments, if any, due on or before such date; (b) as of any Due Date subsequent
to the Cut-off Date up to and including the Due Date in the calendar month in
which a Liquidation Event occurs with respect to such Mortgage Loan, the
Scheduled Principal Balance of such Mortgage Loan as of the Cut-off Date, minus
the sum of (i) the principal portion of
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each Monthly Payment due on or before such Due Date but subsequent to the
Cut-off Date, whether or not received, (ii) all Principal Prepayments received
before such Due Date but after the Cut-off Date, (iii) the principal portion of
all Liquidation Proceeds and Insurance Proceeds received before such Due Date
but after the Cut-off Date, net of any portion thereof that represents principal
due (without regard to any acceleration of payments under the related Mortgage
and Mortgage Note) on a Due Date occurring on or before the date on which such
proceeds were received and (iv) any Realized Loss incurred with respect thereto
as a result of a Deficient Valuation occurring before such Due Date, but only to
the extent such Realized Loss represents a reduction in the portion of principal
of such Mortgage Loan not yet due (without regard to any acceleration of
payments under the related Mortgage and Mortgage Note) as of the date of such
Deficient Valuation; and (c) as of any Due Date subsequent to the occurrence of
a Liquidation Event with respect to such Mortgage Loan, zero. With respect to
any REO Property: (a) as of any Due Date subsequent to the date of its
acquisition on behalf of the Trust Fund up to and including the Due Date in the
calendar month in which a Liquidation Event occurs with respect to such REO
Property, an amount (not less than zero) equal to the Scheduled Principal
Balance of the related Mortgage Loan as of the Due Date in the calendar month in
which such REO Property was acquired, minus the aggregate amount of REO
Principal Amortization, if any, in respect of such REO Property for all
previously ended calendar months; and (b) as of any Due Date subsequent to the
occurrence of a Liquidation Event with respect to such REO Property, zero.
"Seller": National City Mortgage Co., or its successor in interest,
in its capacity as seller under the Mortgage Loan Purchase Agreement.
"Senior Certificates": The Group I Senior Certificates, the Group II
Senior Certificates, the Group III Senior Certificates and the Group IV Senior
Certificates.
"Senior Interest Distribution Amount": With respect to any
Distribution Date, an amount equal to the aggregate of the Interest Distribution
Amounts for such Distribution Date for each Class of Class A Certificates and
Class XS Certificates.
"Senior Percentage": The Subgroup IA-1 Senior Percentage, the
Subgroup IA-2 Senior Percentage, the Subgroup IA-3 Senior Percentage, the
Subgroup IIA-1 Senior Percentage, the Subgroup IIA-2 Senior Percentage, the
Subgroup IIA-3 Senior Percentage, the Subgroup IIIA-1 Senior Percentage, the
Subgroup IIIA-2 Senior Percentage, the Subgroup IVA-1 Senior Percentage or the
Subgroup IVA-2 Senior Percentage, as the context requires.
"Senior Prepayment Percentage": The Subgroup IA-1 Senior Prepayment
Percentage, the Subgroup IA-2 Senior Prepayment Percentage, the Subgroup IA-3
Senior Prepayment Percentage, the Subgroup IIA-1 Senior Prepayment Percentage,
the Subgroup IIA-2 Senior Prepayment Percentage, the Subgroup IIA-3 Senior
Prepayment Percentage, the Subgroup IIIA-1 Senior Prepayment Percentage, the
Subgroup IIIA-2 Senior Prepayment Percentage, the Subgroup IVA-1 Senior
Prepayment Percentage or the Subgroup IVA-2 Senior Prepayment Percentage, as the
context requires.
"Senior Principal Distribution Amount": For any Distribution Date
and the Class A Certificates of any Subgroup, an amount equal to the lesser of
(i) the Subgroup XX-0 Xxxxxxxxx
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Xxxxxxxxxxxx Xxxxxx, the Subgroup IA-2 Available Distribution Amount, the
Subgroup IA-3 Available Distribution Amount, the Subgroup IIA-1 Available
Distribution Amount, the Subgroup IIA-2 Available Distribution Amount, the
Subgroup IIA-3 Available Distribution Amount, the Subgroup IIIA-1 Available
Distribution Amount, the Subgroup IIIA-2 Available Distribution Amount, the
Subgroup IVA-1 Available Distribution Amount or the Subgroup IVA-2 Available
Distribution Amount, as applicable, remaining after distribution of the Senior
Interest Distribution Amount and the Class PO Principal Distribution Amount and
(ii) the sum of:
(a) the product of (x) the then-applicable related Senior Percentage
and (y) the sum of the following:
(i) the related Non-Class PO Percentage of the aggregate of
the principal portions of all Monthly Payments due during the
related Due Period in respect of the related Mortgage Loans or
Mortgage Loan Components, as applicable, whether or not received;
(ii) the related Non-Class PO Percentage of the principal
portion of all Insurance Proceeds, Liquidation Proceeds (other than
amounts described in clause (c) below) and Subsequent Recoveries
received in respect of the related Mortgage Loans or Mortgage Loan
Components, as applicable, during the related Prepayment Period
(other than any related Mortgage Loan or Mortgage Loan Component, as
applicable, that was purchased, sold or replaced pursuant to or as
contemplated by Section 2.03 or Section 9.01 during the related
Prepayment Period), net of any portion thereof that represents a
recovery of principal for which an advance was made by the Master
Servicer pursuant to Section 4.03 in respect of a preceding
Distribution Date;
(iii) the related Non-Class PO Percentage of the Stated
Principal Balance (calculated immediately prior to such Distribution
Date) of each related Mortgage Loan or Mortgage Loan Component, as
applicable, that was purchased, sold or replaced pursuant to or as
contemplated by Section 2.03 or Section 9.01 during the related
Prepayment Period;
(iv) the related Non-Class PO Percentage of all REO Principal
Amortization collected in respect of any REO Property in respect of
a related Mortgage Loan or Mortgage Loan Component, as applicable,
during the related Prepayment Period; and
(v) in connection with the substitution of one or more
Qualified Substitute Mortgage Loans for one or more Deleted Mortgage
Loans in the related Loan Group pursuant to Section 2.03 during the
related Prepayment Period, the excess, if any, of (A) the aggregate
of the related Non-Class PO Percentage of the Stated Principal
Balances (calculated as of the respective dates of substitution) of
such Deleted Mortgage Loans, net of the aggregate of the related
Non-Class PO Percentage of the principal portions of the Monthly
Payments due during the related Prepayment Period (to the extent
received from the related Mortgagor or advanced by the Master
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Servicer and distributed pursuant to Section 4.01 on the
Distribution Date in the related Prepayment Period) in respect of
each such Deleted Mortgage Loan that was replaced prior to the
Distribution Date in the related Prepayment Period, over (B) the
aggregate of the related Non-Class PO Percentage of the Stated
Principal Balances (calculated as of the respective dates of
substitution) of such Qualified Substitute Mortgage Loans;
(b) the product of (x) the then-applicable related Senior Prepayment
Percentage and (y) the related Non-Class PO Percentage of all Principal
Prepayments received in respect of the related Mortgage Loans or Mortgage Loan
Components, as applicable, during the related Prepayment Period;
(c) with respect to any related Mortgage Loan or Mortgage Loan
Component, as applicable, which was the subject of a Final Recovery
Determination in the related Prepayment Period, the least of (a) the
then-applicable related Senior Prepayment Percentage of the Non-Class PO
Percentage multiplied by the net Liquidation Proceeds and Insurance Proceeds
allocable to principal in respect of the related Mortgage Loans or Mortgage Loan
Components, as applicable, (b) the then-applicable related Senior Percentage of
the Non-Class PO Percentage multiplied by the Scheduled Principal Balance of the
related Mortgage Loan or Mortgage Loan Component, as applicable, at the time of
such Final Recovery Determination; and (c) the principal portion of all amounts
collected in connection with such a Final Recovery Determination to the extent
not distributed to the related Class PO Certificates;
(d) in the case of any Distribution Date subsequent to the initial
Distribution Date, an amount equal to the excess, if any, of the related Senior
Principal Distribution Amount for the immediately preceding Distribution Date,
over the aggregate distributions of principal made in respect of the related
Class of Class A Certificates on such immediately preceding Distribution Date
pursuant to Section 4.01 to the extent that any such amounts are not
attributable to Realized Losses which were allocated to the Subordinate
Certificates pursuant to Section 4.04; and
(e) any Class A Principal Adjustment Amount (allocated among the
Class A Certificates of each Certificate Group on a pro rata basis based on the
aggregate Certificate Principal Balance of the Class A Certificates of each
Certificate Group), so long as the Subordination Test has not been met with
respect to such Distribution Date.
"Servicing Account": The account or accounts created and maintained
pursuant to Section 3.09.
"Servicing Advances": The reasonable "out-of-pocket" costs and
expenses incurred by the Master Servicer or the Special Servicer in connection
with a default, delinquency or other unanticipated event by the Master Servicer
or the Special Servicer in the performance of its servicing obligations,
including, but not limited to, the cost of (i) the preservation, restoration and
protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures, in respect of a particular Mortgage Loan,
including any expenses incurred in relation to any such proceedings that result
from the Mortgage Loan being registered on the MERS(R) System, (iii) the
management (including reasonable fees in connection therewith) and liquidation
of any REO
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Property, and (iv) the performance of its obligations under Section 3.01,
Section 3.09, Section 3.13, Section 3.14, Section 3.16 and Section 3.23. The
Master Servicer and the Special Servicer shall not be required to make any
Servicing Advance in respect of a Mortgage Loan or REO Property that, in the
good faith business judgment of the Master Servicer or the Special Servicer, as
applicable, would not be ultimately recoverable from related Insurance Proceeds
or Liquidation Proceeds on such Mortgage Loan or REO Property as provided
herein.
"Servicing Fee": With respect to each Mortgage Loan and for any
calendar month, an amount equal to one month's interest (or in the event of any
payment of interest which accompanies a Principal Prepayment in full made by the
Mortgagor during such calendar month, interest for the number of days covered by
such payment of interest) at the applicable Servicing Fee Rate on the same
principal amount on which interest on such Mortgage Loan accrues for such
calendar month. A portion of such Servicing Fee may be retained by any
Sub-Servicer as its servicing compensation.
"Servicing Fee Rate": 0.25% per annum
"Servicing Officer": Any employee of the Master Servicer involved
in, or responsible for, the administration and servicing of the Mortgage Loans
or the Specially Serviced Mortgage Loans, as applicable, whose name appear on a
list of Servicing Officers furnished by the Master Servicer or the Special
Servicer, as applicable, to the Trustee and the Depositor on the Closing Date,
as such list may from time to time be amended.
"Single Certificate": With respect to any Class of Certificates
(other than the Residual Certificates), a hypothetical Certificate of such Class
evidencing a Percentage Interest for such Class corresponding to an initial
Certificate Principal Balance or Notional Amount of $1,000. With respect to the
Residual Certificates, a hypothetical Certificate of such Class evidencing a 20%
Percentage Interest in such Class.
"Special Hazard Amount": Initially, an amount equal to $5,554,493.
As of each anniversary of the Cut-off Date, the Special Hazard Amount shall
equal the lesser of (i) the Special Hazard Amount on the immediately preceding
anniversary of the Cut-off Date less the sum of all amounts allocated to the
Subordinate Certificates in respect of Special Hazard Losses on the Mortgage
Loans during such year and (ii) the Adjustment Amount for such anniversary. The
"Adjustment Amount" with respect to each anniversary of the Cut-off Date will be
equal to the greatest of (i) 1.00% multiplied by the aggregate outstanding
principal balance of the Mortgage Loans on the Distribution Date immediately
preceding such anniversary, (ii) the aggregate outstanding principal balance (as
of the immediately preceding Distribution Date) of the Mortgage Loans secured by
Mortgaged Properties located in the California postal zip code area in which the
highest percentage of Mortgage Loans based on outstanding principal balance are
located and (iii) two times the outstanding principal balance of the Mortgage
Loan having the largest outstanding principal balance, in each case as of such
anniversary of the Cut-off Date. After the Certificate Principal Balances of the
Subordinate Certificates are reduced to zero, the Special Hazard Amount will be
zero.
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"Special Hazard Loss": Any Realized Loss or portion thereof not in
excess of the lesser of the cost of repair or replacement of a Mortgaged
Property suffered by such Mortgaged Property by reason of damage caused by
certain hazards (including earthquakes, mudflows, and, to a limited extent,
floods) not insured against under the hazard insurance policies or fire or flood
insurance policies required to be maintained in respect of such Mortgaged
Property pursuant to Section 3.14 (with respect to the Master Servicer) or
pursuant to the Special Servicing Agreement (with respect to the Special
Servicer), or by reason of the application of any co-insurance provision.
Special Hazard Losses shall not include any Extraordinary Loss or any of the
following:
(i) wear and tear, deterioration, rust or corrosion, mold, wet
or dry rot; inherent vice or latent defect; animals, birds, vermin,
insects;
(ii) smog, smoke, vapor, liquid or dust discharge from
agricultural or industrial operations; pollution; contamination;
(iii) settling, subsidence, cracking, shrinkage, bulging or
expansion of pavements, foundations, walls, floors, roofs or
ceilings; and
(iv) errors in design, faulty workmanship or faulty materials,
unless the collapse of the property or a part thereof ensues and
then only for the ensuing loss.
"Special Servicer": Xxxxxx Loan Servicing LP, a Delaware limited
partnership, in its capacity as Special Servicer of the Specially Serviced
Mortgage Loans.
"Special Servicing Agreement": The Special Servicing Agreement,
dated the Closing Date, among the Master Servicer, the Trustee and the Special
Servicer regarding the servicing of the Specially Serviced Mortgage Loans by the
Special Servicer, substantially in the form attached hereto as Exhibit K.
"Specially Serviced Mortgage Loan": As defined in the Special
Servicing Agreement.
"Startup Day": With respect to each REMIC, the day designated as
such pursuant to Section 10.01(b) hereof.
"Stated Principal Balance": With respect to any Mortgage Loan: (a)
as of any date of determination up to but not including the Distribution Date on
which the proceeds, if any, of a Liquidation Event with respect to such Mortgage
Loan would be distributed, the Scheduled Principal Balance of such Mortgage Loan
as of the Cut-off Date, as shown in the Mortgage Loan Schedule, minus the sum of
(i) the principal portion of each Monthly Payment due on a Due Date subsequent
to the Cut-off Date, to the extent received from the Mortgagor or advanced by
the Master Servicer and distributed pursuant to Section 4.01 on or before such
date of determination, (ii) all Principal Prepayments received after the Cut-off
Date, to the extent distributed pursuant to Section 4.01 on or before such date
of determination, (iii) all Liquidation Proceeds and Insurance Proceeds applied
by the Master Servicer as recoveries of principal in accordance with the
provisions of Section 3.16, to the extent distributed pursuant to Section 4.01
on or before such date of determination, and (iv) any Realized Loss incurred
with respect thereto as a result of a Deficient Valuation made during or
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prior to the Prepayment Period for the most recent Distribution Date coinciding
with or preceding such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
would be distributed, zero. With respect to any REO Property: (a) as of any date
of determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of the Trust Fund, minus the sum of (I) if such REO
Property was acquired before the Distribution Date in any calendar month, the
principal portion of the Monthly Payment due on the Due Date in the calendar
month of acquisition, to the extent advanced by the Master Servicer and
distributed pursuant to Section 4.01 on or before such date of determination, to
the extent distributed pursuant to Section 4.01 on or before such date of
determination, and (II) the aggregate amount of REO Principal Amortization in
respect of such REO Property for all previously ended calendar months, to the
extent distributed pursuant to Section 4.01 on or before such date of
determination; and (b) as of any date of determination coinciding with or
subsequent to the Distribution Date on which the proceeds, if any, of a
Liquidation Event with respect to such REO Property would be distributed, zero.
"Stripped Interest Rate": With respect to any Group I Mortgage Loan,
the excess, if any, of the Expense Adjusted Mortgage Rate minus 7.50% per annum.
With respect to any Group II Mortgage Loan or related REO Property, the excess,
if any, of the Expense Adjusted Mortgage Rate minus 8.00% per annum. With
respect to any Group III Mortgage Loan, the excess, if any, of the Expense
Adjusted Mortgage Rate minus 6.50% per annum. With respect to any Group IV
Mortgage Loan, the excess, if any, of the Expense Adjusted Mortgage Rate minus
7.00% per annum.
"Subgroup": Any of Subgroup IA-1, Subgroup IA-2, Subgroup IA-3,
Subgroup IIA-1, Subgroup IIA-2, Subgroup IIA-3, Subgroup IIIA-1, Subgroup
IIIA-2, Subgroup IVA-1 or Subgroup IVA-2.
"Subgroup IA-1": The Group I Mortgage Loan subgroup that includes
all Group I Mortgage Loans with an Expense Adjusted Mortgage Rate less than or
equal to 5.50% and Mortgage Loan Components representing a portion of all Group
I Mortgage Loans, based on the Applicable Fractions of such Mortgage Loans, with
an Expense Adjusted Mortgage Rate greater than 5.50% per annum and less than
6.75% per annum.
"Subgroup IA-1 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group I Mortgage Loans and the Group I Mortgage Loan Components
in Subgroup IA-1 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group I Mortgage Loans
and the Group I Mortgage Loan Components in Subgroup IA-1, (b) the aggregate of
any amounts received in respect of an REO Property relating to a Group I
Mortgage Loan and a Group I Mortgage Loan Component in Subgroup IA-1withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group I Mortgage Loans and the Group I
Mortgage Loan Components in
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Subgroup IA-1 for such Distribution Date pursuant to Section 3.24 and (d) the
aggregate of any P&I Advances made by the Master Servicer or Special Servicer
for such Distribution Date with respect to the Group I Mortgage Loans and the
Group I Mortgage Loan Components in Subgroup IA-1 pursuant to Section 4.03,
reduced (to not less than zero) by (2) the portion of the amount described in
clause (1)(a) above that represents (i) Monthly Payments on the Group I Mortgage
Loans and the Group I Mortgage Loan Components in Subgroup IA-1 received from a
Mortgagor on or prior to the Determination Date but due during any Due Period
subsequent to the related Due Period, (ii) Principal Prepayments on the Group I
Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-1
received after the related Prepayment Period (together with any interest
payments received with such Principal Prepayments to the extent they represent
the payment of interest accrued on the Group I Mortgage Loans and the Group I
Mortgage Loan Components in Subgroup IA-1 during a period subsequent to the
related Prepayment Period), (iii) Liquidation Proceeds, Insurance Proceeds and
Subsequent Recoveries received in respect of the Group I Mortgage Loans and the
Group I Mortgage Loan Components in Subgroup IA-1 after the related Prepayment
Period, (iv) amounts reimbursable or payable with respect to the Group I
Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-1 to the
Depositor, the Master Servicer, the Trustee, the Seller or any Sub-Servicer
pursuant to Section 3.11(a) or Section 3.12 or otherwise payable in respect of
Extraordinary Trust Fund Expenses, (v) the Trustee Fee attributable to the Group
I Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-1
payable from the Distribution Account pursuant to Section 8.05 and (vi) amounts
deposited in the Collection Account or the Distribution Account in error with
respect to the Group I Mortgage Loans and the Group I Mortgage Loan Components
in Subgroup IA-1. Notwithstanding the foregoing, the Subgroup IA-1 Available
Distribution Amount for any Distribution Date shall be increased (in the case of
an Undercollateralized Subgroup with respect to Subgroup IA-1) or decreased (in
the case of an Overcollateralized Subgroup with respect to Subgroup IA-1) by any
applicable Diverted Interest Amount or Class A Principal Adjustment Amount, in
each case for such Distribution Date. The Subgroup IA-1 Available Distribution
Amount shall not include any Prepayment Interest Excess related to the Group I
Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-1.
"Subgroup IA-1 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IA-CB1 Certificates and
(b) the aggregate amount of Realized Losses on the Group I Mortgage Loan
Components or the Group I Mortgage Loans in Subgroup IA-1 on such Distribution
Date.
"Subgroup IA-1 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group I Mortgage Loans and the Group I
Mortgage Loan Components in Subgroup IA-1 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group I Mortgage Loans and the Group I Mortgage Loan
Components in Subgroup IA-1 over (ii) the aggregate Certificate Principal
Balance of the Class IA-CB1 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
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"Subgroup IA-1 Senior Percentage": With respect to any Distribution
Date and the Class IA-CB1 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IA-CB1
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IA-CB1 Certificates on such date pursuant to
clause (d) of the definition of "Senior Principal Distribution Amount," and the
denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group I Mortgage Loans
and the Group I Mortgage Loan Components in Subgroup IA-1, plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties related to the Group I Mortgage Loans and the Group I
Mortgage Loan Components in Subgroup IA-1, in each case before reduction for any
Realized Losses on such Distribution Date.
"Subgroup IA-1 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IA-CB1
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IA-1 Senior Percentage plus 70% of
the Subgroup IA-1 Subordinate Percentage
September 2010 through August 2011 Subgroup IA-1 Senior Percentage plus 60% of
the Subgroup IA-1 Subordinate Percentage
September 2011 through August 2012 Subgroup IA-1 Senior Percentage plus 40% of
the Subgroup IA-1 Subordinate Percentage
September 2012 through August 2013 Subgroup IA-1 Senior Percentage plus 20% of
the Subgroup IA-1 Subordinate Percentage
September 2013 and thereafter Subgroup IA-1 Senior Percentage
--------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IA-1 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IA-1 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IA-1 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IA-1 Senior Prepayment
Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IA-1 Senior
Prepayment Percentage shall be 100%.
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"Subgroup IA-1 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IA-1 Senior Percentage.
"Subgroup IA-1 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IA-1 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IA-2": The Group I Mortgage Loan subgroup that includes a
portion of all Group I Mortgage Loans, based on the Applicable Fractions of such
Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than 5.50% per
annum and less than 6.75% per annum and Mortgage Loan Components representing a
portion of all Group I Mortgage Loans, based on the Applicable Fractions of such
Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than or equal to
6.75% per annum and less than 7.50% per annum.
"Subgroup IA-2 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group I Mortgage Loan Components in Subgroup IA-2 as of the close
of business on the related Determination Date including any Subsequent
Recoveries with respect to the Group I Mortgage Loan Components in Subgroup
IA-2, (b) the aggregate of any amounts received in respect of an REO Property
relating to a Group I Mortgage Loan Component in Subgroup IA-2withdrawn from any
REO Account and deposited in the Distribution Account for such Distribution Date
pursuant to Section 3.23, (c) the aggregate of any amounts deposited in the
Distribution Account by the Master Servicer in respect of Prepayment Interest
Shortfalls on the Group I Mortgage Loan Components in Subgroup IA-2 for such
Distribution Date pursuant to Section 3.24 and (d) the aggregate of any P&I
Advances made by the Master Servicer or Special Servicer for such Distribution
Date with respect to the Group I Mortgage Loan Components in Subgroup IA-2
pursuant to Section 4.03, reduced (to not less than zero) by (2) the portion of
the amount described in clause (1)(a) above that represents (i) Monthly Payments
on the Group I Mortgage Loan Components in Subgroup IA-2 received from a
Mortgagor on or prior to the Determination Date but due during any Due Period
subsequent to the related Due Period, (ii) Principal Prepayments on the Group I
Mortgage Loan Components in Subgroup IA-2 received after the related Prepayment
Period (together with any interest payments received with such Principal
Prepayments to the extent they represent the payment of interest accrued on the
Group I Mortgage Loan Components in Subgroup IA-2 during a period subsequent to
the related Prepayment Period), (iii) Liquidation Proceeds, Insurance Proceeds
and Subsequent Recoveries received in respect of the Group I Mortgage Loan
Components in Subgroup IA-2 after the related Prepayment Period, (iv) amounts
reimbursable or payable with respect to the Group I Mortgage Loan Components in
Subgroup IA-2 to the Depositor, the Master Servicer, the Trustee, the Seller or
any Sub-Servicer pursuant to Section 3.11(a) or Section 3.12 or otherwise
payable in respect of Extraordinary Trust Fund Expenses, (v) the Trustee Fee
attributable to the Group I Mortgage Loan Components in Subgroup IA-2 payable
from the Distribution Account pursuant to Section 8.05 and (vi) amounts
deposited in the Collection Account or the Distribution Account in error with
respect to the Group I Mortgage Loan Components in Subgroup IA-2.
Notwithstanding the foregoing, the Subgroup IA-2 Available Distribution Amount
for any Distribution Date shall be increased (in the case of an
Undercollateralized Subgroup with respect to Subgroup IA-2) or decreased (in the
case of an
-48-
Overcollateralized Subgroup with respect to Subgroup IA-2) by any applicable
Diverted Interest Amount or Class A Principal Adjustment Amount, in each case
for such Distribution Date. The Subgroup IA-2 Available Distribution Amount
shall not include any Prepayment Interest Excess related to the Group I Mortgage
Loan Components in Subgroup IA-2.
"Subgroup IA-2 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IA-CB2 Certificates and
(b) the aggregate amount of Realized Losses on the Group I Mortgage Loan
Components in Subgroup IA-2 on such Distribution Date.
"Subgroup IA-2 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group I Mortgage Loan Components in Subgroup
IA-2 plus (b) the aggregate of the Non-Class PO Percentages of the Scheduled
Principal Balances of the REO Properties related to Group I Mortgage Loan
Components in Subgroup IA-2 over (ii) the aggregate Certificate Principal
Balance of the Class IA-CB2 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IA-2 Senior Percentage": With respect to any Distribution
Date and the Class IA-CB2 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IA-CB2
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IA-CB2 Certificates on such date pursuant to
clause (d) of the definition of "Senior Principal Distribution Amount," and the
denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group I Mortgage Loan
Components in Subgroup IA-2, plus (ii) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the REO Properties related to
the Group I Mortgage Loan Components in Subgroup IA-2, in each case before
reduction for any Realized Losses on such Distribution Date.
"Subgroup IA-2 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IA-CB2
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IA-2 Senior Percentage plus 70% of
the Subgroup IA-2 Subordinate Percentage
September 2010 through August 2011 Subgroup IA-2 Senior Percentage plus 60% of
the Subgroup IA-2 Subordinate Percentage
September 2011 through August 2012 Subgroup IA-2 Senior Percentage plus 40% of
the Subgroup IA-2 Subordinate Percentage
September 2012 through August 2013 Subgroup IA-2 Senior Percentage plus 20% of
the Subgroup IA-2 Subordinate Percentage
September 2013 and thereafter Subgroup IA-2 Senior Percentage
--------------------------------------------------------------------------------
-49-
provided, however, no reduction to the Subgroup IA-2 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IA-2 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IA-2 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IA-2 Senior Prepayment
Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IA-2 Senior
Prepayment Percentage shall be 100%.
"Subgroup IA-2 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IA-2 Senior Percentage.
"Subgroup IA-2 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IA-2 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IA-3": The Group I Mortgage Loan subgroup that includes a
portion of all Group I Mortgage Loans, based on the Applicable Fractions of such
Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than or equal to
6.75% per annum and less than 7.50% per annum and all Group I Mortgage Loans
with an Expense Adjusted Mortgage Rate greater than or equal to 7.50% per annum.
"Subgroup IA-3 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group I Mortgage Loans and the Group I Mortgage Loan Components
in Subgroup IA-3 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group I Mortgage Loans
and the Group I Mortgage Loan Components in Subgroup IA-3, (b) the aggregate of
any amounts received in respect of an REO Property relating to a Group I
Mortgage Loan and a Group I Mortgage Loan Component in Subgroup IA-3withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group I Mortgage Loans and the Group I
Mortgage Loan Components in Subgroup IA-3 for such Distribution Date pursuant to
Section 3.24 and (d) the aggregate of any P&I Advances made by the Master
Servicer or Special Servicer for such Distribution Date with respect to the
Group I Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-3
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pursuant to Section 4.03, reduced (to not less than zero) by (2) the portion of
the amount described in clause (1)(a) above that represents (i) Monthly Payments
on the Group I Mortgage Loans and the Group I Mortgage Loan Components in
Subgroup IA-3 received from a Mortgagor on or prior to the Determination Date
but due during any Due Period subsequent to the related Due Period, (ii)
Principal Prepayments on the Group I Mortgage Loans and the Group I Mortgage
Loan Components in Subgroup IA-3 received after the related Prepayment Period
(together with any interest payments received with such Principal Prepayments to
the extent they represent the payment of interest accrued on the Group I
Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-3 during
a period subsequent to the related Prepayment Period), (iii) Liquidation
Proceeds, Insurance Proceeds and Subsequent Recoveries received in respect of
the Group I Mortgage Loans and the Group I Mortgage Loan Components in Subgroup
IA-3 after the related Prepayment Period, (iv) amounts reimbursable or payable
with respect to the Group I Mortgage Loans and the Group I Mortgage Loan
Components in Subgroup IA-3 to the Depositor, the Master Servicer, the Trustee,
the Seller or any Sub-Servicer pursuant to Section 3.11(a) or Section 3.12 or
otherwise payable in respect of Extraordinary Trust Fund Expenses, (v) the
Trustee Fee attributable to the Group I Mortgage Loans and the Group I Mortgage
Loan Components in Subgroup IA-3 payable from the Distribution Account pursuant
to Section 8.05 and (vi) amounts deposited in the Collection Account or the
Distribution Account in error with respect to the Group I Mortgage Loans and the
Group I Mortgage Loan Components in Subgroup IA-3. Notwithstanding the
foregoing, the Subgroup IA-3 Available Distribution Amount for any Distribution
Date shall be increased (in the case of an Undercollateralized Subgroup with
respect to Subgroup IA-3) or decreased (in the case of an Overcollateralized
Subgroup with respect to Subgroup IA-3) by any applicable Diverted Interest
Amount or Class A Principal Adjustment Amount, in each case for such
Distribution Date. The Subgroup IA-3 Available Distribution Amount shall not
include any Prepayment Interest Excess related to the Group I Mortgage Loans and
the Group I Mortgage Loan Components in Subgroup IA-3.
"Subgroup IA-3 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IA-CB3 Certificates and
(b) the aggregate amount of Realized Losses on the Group I Mortgage Loan
Components or the Group I Mortgage Loans in Subgroup IA-3 on such Distribution
Date.
"Subgroup IA-3 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group I Mortgage Loans and the Group I
Mortgage Loan Components in Subgroup IA-3 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group I Mortgage Loans and the Group I Mortgage Loan
Components in Subgroup IA-3 over (ii) the aggregate Certificate Principal
Balance of the Class IA-CB3 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IA-3 Senior Percentage": With respect to any Distribution
Date and the Class IA-CB3 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class
-51-
IA-CB3 Certificates for such Distribution Date over the aggregate amount, if
any, payable to the Holders of the Class IA-CB3 Certificates on such date
pursuant to clause (d) of the definition of "Senior Principal Distribution
Amount," and the denominator of which is the sum of (i) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the Group I
Mortgage Loans and the Group I Mortgage Loan Components in Subgroup IA-3, plus
(ii) the aggregate of the Non-Class PO Percentages of the Scheduled Principal
Balances of the REO Properties related to the Group I Mortgage Loans and the
Group I Mortgage Loan Components in Subgroup IA-3, in each case before reduction
for any Realized Losses on such Distribution Date.
"Subgroup IA-3 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IA-CB3
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
Subgroup IA-3 Senior Percentage plus 70%
of the Subgroup IA-3 Subordinate
September 2009 through August 2010 Percentage
Subgroup IA-3 Senior Percentage plus 60%
of the Subgroup IA-3 Subordinate
September 2010 through August 2011 Percentage
Subgroup IA-3 Senior Percentage plus 40%
of the Subgroup IA-3 Subordinate
September 2011 through August 2012 Percentage
Subgroup IA-3 Senior Percentage plus 20%
of the Subgroup IA-3 Subordinate
September 2012 through August 2013 Percentage
September 2013 and thereafter Subgroup IA-3 Senior Percentage
--------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IA-3 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IA-3 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IA-3 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IA-3 Senior Prepayment
Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IA-3 Senior
Prepayment Percentage shall be 100%.
"Subgroup IA-3 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IA-3 Senior Percentage.
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"Subgroup IA-3 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IA-3 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IIA-1": The Group II Mortgage Loan subgroup that includes
all Group II Mortgage Loans with an Expense Adjusted Mortgage Rate less than or
equal to 5.50% and Mortgage Loan Components representing a portion of all Group
II Mortgage Loans, based on the Applicable Fractions of such Mortgage Loans,
with an Expense Adjusted Mortgage Rate greater than 5.50% per annum and less
than 6.75% per annum.
"Subgroup IIA-1 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group II Mortgage Loans and the Group II Mortgage Loan Components
in Subgroup IIA-1 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-1, (b) the aggregate
of any amounts received in respect of an REO Property relating to a Group II
Mortgage Loan and a Group II Mortgage Loan Component in Subgroup IIA-1withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-1 for such Distribution Date pursuant
to Section 3.24 and (d) the aggregate of any P&I Advances made by the Master
Servicer or Special Servicer for such Distribution Date with respect to the
Group II Mortgage Loans and the Group II Mortgage Loan Components in Subgroup
IIA-1 pursuant to Section 4.03, reduced (to not less than zero) by (2) the
portion of the amount described in clause (1)(a) above that represents (i)
Monthly Payments on the Group II Mortgage Loans and the Group II Mortgage Loan
Components in Subgroup IIA-1 received from a Mortgagor on or prior to the
Determination Date but due during any Due Period subsequent to the related Due
Period, (ii) Principal Prepayments on the Group II Mortgage Loans and the Group
II Mortgage Loan Components in Subgroup IIA-1 received after the related
Prepayment Period (together with any interest payments received with such
Principal Prepayments to the extent they represent the payment of interest
accrued on the Group II Mortgage Loans and the Group II Mortgage Loan Components
in Subgroup IIA-1 during a period subsequent to the related Prepayment Period),
(iii) Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries
received in respect of the Group II Mortgage Loans and the Group II Mortgage
Loan Components in Subgroup IIA-1 after the related Prepayment Period, (iv)
amounts reimbursable or payable with respect to the Group II Mortgage Loans and
the Group II Mortgage Loan Components in Subgroup IIA-1 to the Depositor, the
Master Servicer, the Trustee, the Seller or any Sub-Servicer pursuant to Section
3.11(a) or Section 3.12 or otherwise payable in respect of Extraordinary Trust
Fund Expenses, (v) the Trustee Fee attributable to the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-1 payable from the
Distribution Account pursuant to Section 8.05 and (vi) amounts deposited in the
Collection Account or the Distribution Account in error with respect to the
Group II Mortgage Loans and the Group II Mortgage Loan Components in Subgroup
IIA-1. Notwithstanding the foregoing, the Subgroup IIA-1 Available Distribution
Amount for any Distribution Date shall be increased (in the case of an
Undercollateralized Subgroup with respect to Subgroup IIA-1) or decreased (in
the case of an Overcollateralized Subgroup with respect to
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Subgroup IIA-1) by any applicable Diverted Interest Amount or Class A Principal
Adjustment Amount, in each case for such Distribution Date. The Subgroup IIA-1
Available Distribution Amount shall not include any Prepayment Interest Excess
related to the Group II Mortgage Loans and the Group II Mortgage Loan Components
in Subgroup IIA-1.
"Subgroup IIA-1 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IIA-CB1 Certificates
and (b) the aggregate amount of Realized Losses on the Group II Mortgage Loan
Components or the Group II Mortgage Loans in Subgroup IIA-1 on such Distribution
Date.
"Subgroup IIA-1 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-1 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group II Mortgage Loans and the Group II Mortgage Loan
Components in Subgroup IIA-1 over (ii) the aggregate Certificate Principal
Balance of the Class IIA-CB1 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IIA-1 Senior Percentage": With respect to any Distribution
Date and the Class IIA-CB1 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IIA-CB1
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IIA-CB1 Certificates on such date pursuant
to clause (d) of the definition of "Senior Principal Distribution Amount," and
the denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-1, plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties related to the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-1, in each case before reduction for
any Realized Losses on such Distribution Date.
"Subgroup IIA-1 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IIA-CB1
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IIA-1 Senior Percentage plus
70% of the Subgroup IIA-1 Subordinate
Percentage
September 2010 through August 2011 Subgroup IIA-1 Senior Percentage plus
60% of the Subgroup IIA-1 Subordinate
Percentage
September 2011 through August 2012 Subgroup IIA-1 Senior Percentage plus
40% of the Subgroup IIA-1 Subordinate
Percentage
September 2012 through August 2013 Subgroup IIA-1 Senior Percentage plus
20% of the Subgroup IIA-1 Subordinate
Percentage
September 2013 and thereafter Subgroup IIA-1 Senior Percentage
------------------------------------------------------------------------------
-54-
provided, however, no reduction to the Subgroup IIA-1 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IIA-1 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IIA-1 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IIA-1 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IIA-1 Senior
Prepayment Percentage shall be 100%.
"Subgroup IIA-1 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IIA-1 Senior Percentage.
"Subgroup IIA-1 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IIA-1 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IIA-2": The Group II Mortgage Loan subgroup that includes
a portion of all Group II Mortgage Loans, based on the Applicable Fractions of
such Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than 5.50%
per annum and less than 6.75% per annum and Mortgage Loan Components
representing a portion of all Group II Mortgage Loans, based on the Applicable
Fractions of such Mortgage Loans, with an Expense Adjusted Mortgage Rate greater
than or equal to 6.75% per annum and less than 8.00% per annum.
"Subgroup IIA-2 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group II Mortgage Loan Components in Subgroup IIA-2 as of the
close of business on the related Determination Date including any Subsequent
Recoveries with respect to the Group II Mortgage Loan Components in Subgroup
IIA-2, (b) the aggregate of any amounts received in respect of an REO Property
relating to a Group II Mortgage Loan Component in Subgroup IIA-2withdrawn from
any REO Account and deposited in the Distribution Account for such Distribution
Date pursuant to Section 3.23, (c) the aggregate of any amounts deposited in the
Distribution Account by the Master Servicer in respect of Prepayment Interest
Shortfalls on the Group II Mortgage Loan Components in Subgroup IIA-2 for such
Distribution Date pursuant to Section 3.24 and (d) the aggregate of any P&I
Advances made by the
-55-
Master Servicer or Special Servicer for such Distribution Date with respect to
the Group II Mortgage Loan Components in Subgroup IIA-2 pursuant to Section
4.03, reduced (to not less than zero) by (2) the portion of the amount described
in clause (1)(a) above that represents (i) Monthly Payments on the Group II
Mortgage Loan Components in Subgroup IIA-2 received from a Mortgagor on or prior
to the Determination Date but due during any Due Period subsequent to the
related Due Period, (ii) Principal Prepayments on the Group II Mortgage Loan
Components in Subgroup IIA-2 received after the related Prepayment Period
(together with any interest payments received with such Principal Prepayments to
the extent they represent the payment of interest accrued on the Group II
Mortgage Loan Components in Subgroup IIA-2 during a period subsequent to the
related Prepayment Period), (iii) Liquidation Proceeds, Insurance Proceeds and
Subsequent Recoveries received in respect of the Group II Mortgage Loan
Components in Subgroup IIA-2 after the related Prepayment Period, (iv) amounts
reimbursable or payable with respect to the Group II Mortgage Loan Components in
Subgroup IIA-2 to the Depositor, the Master Servicer, the Trustee, the Seller or
any Sub-Servicer pursuant to Section 3.11(a) or Section 3.12 or otherwise
payable in respect of Extraordinary Trust Fund Expenses, (v) the Trustee Fee
attributable to the Group II Mortgage Loan Components in Subgroup IIA-2 payable
from the Distribution Account pursuant to Section 8.05 and (vi) amounts
deposited in the Collection Account or the Distribution Account in error with
respect to the Group II Mortgage Loan Components in Subgroup IIA-2.
Notwithstanding the foregoing, the Subgroup IIA-2 Available Distribution Amount
for any Distribution Date shall be increased (in the case of an
Undercollateralized Subgroup with respect to Subgroup IIA-2) or decreased (in
the case of an Overcollateralized Subgroup with respect to Subgroup IIA-2) by
any applicable Diverted Interest Amount or Class A Principal Adjustment Amount,
in each case for such Distribution Date. The Subgroup IIA-2 Available
Distribution Amount shall not include any Prepayment Interest Excess related to
the Group II Mortgage Loan Components in Subgroup IIA-2.
"Subgroup IIA-2 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IIA-CB2 Certificates
and (b) the aggregate amount of Realized Losses on the Group II Mortgage Loan
Components in Subgroup IIA-2 on such Distribution Date.
"Subgroup IIA-2 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group II Mortgage Loan Components in
Subgroup IIA-2 plus (b) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the REO Properties related to Group II Mortgage
Loan Components in Subgroup IIA-2 over (ii) the aggregate Certificate Principal
Balance of the Class IIA-CB2 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IIA-2 Senior Percentage": With respect to any Distribution
Date and the Class IIA-CB2 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IIA-CB2
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IIA-CB2 Certificates on such date pursuant
to clause (d) of the definition of "Senior Principal Distribution Amount," and
the denominator of which is the sum of (i) the
-56-
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the Group II Mortgage Loan Components in Subgroup IIA-2, plus (ii) the aggregate
of the Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group II Mortgage Loan Components in Subgroup IIA-2,
in each case before reduction for any Realized Losses on such Distribution Date.
"Subgroup IIA-2 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IIA-CB2
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IIA-2 Senior Percentage plus
70% of the Subgroup IIA-2 Subordinate
Percentage
September 2010 through August 2011 Subgroup IIA-2 Senior Percentage plus
60% of the Subgroup IIA-2 Subordinate
Percentage
September 2011 through August 2012 Subgroup IIA-2 Senior Percentage plus
40% of the Subgroup IIA-2 Subordinate
Percentage
September 2012 through August 2013 Subgroup IIA-2 Senior Percentage plus
20% of the Subgroup IIA-2 Subordinate
Percentage
September 2013 and thereafter Subgroup IIA-2 Senior Percentage
------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IIA-2 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IIA-2 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IIA-2 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IIA-2 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IIA-2 Senior
Prepayment Percentage shall be 100%.
"Subgroup IIA-2 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IIA-2 Senior Percentage.
"Subgroup IIA-2 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IIA-2 Senior Prepayment Percentage for such Distribution Date.
-57-
"Subgroup IIA-3": The Group II Mortgage Loan subgroup that includes
a portion of all Group II Mortgage Loans, based on the Applicable Fractions of
such Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than or
equal to 6.75% per annum and less than 8.00% per annum and all Group II Mortgage
Loans with an Expense Adjusted Mortgage Rate greater than or equal to 8.00% per
annum.
"Subgroup IIA-3 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group II Mortgage Loans and the Group II Mortgage Loan Components
in Subgroup IIA-3 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-3, (b) the aggregate
of any amounts received in respect of an REO Property relating to a Group II
Mortgage Loan and a Group II Mortgage Loan Component in Subgroup IIA-3withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-3 for such Distribution Date pursuant
to Section 3.24 and (d) the aggregate of any P&I Advances made by the Master
Servicer or Special Servicer for such Distribution Date with respect to the
Group II Mortgage Loans and the Group II Mortgage Loan Components in Subgroup
IIA-3 pursuant to Section 4.03, reduced (to not less than zero) by (2) the
portion of the amount described in clause (1)(a) above that represents (i)
Monthly Payments on the Group II Mortgage Loans and the Group II Mortgage Loan
Components in Subgroup IIA-3 received from a Mortgagor on or prior to the
Determination Date but due during any Due Period subsequent to the related Due
Period, (ii) Principal Prepayments on the Group II Mortgage Loans and the Group
II Mortgage Loan Components in Subgroup IIA-3 received after the related
Prepayment Period (together with any interest payments received with such
Principal Prepayments to the extent they represent the payment of interest
accrued on the Group II Mortgage Loans and the Group II Mortgage Loan Components
in Subgroup IIA-3 during a period subsequent to the related Prepayment Period),
(iii) Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries
received in respect of the Group II Mortgage Loans and the Group II Mortgage
Loan Components in Subgroup IIA-3 after the related Prepayment Period, (iv)
amounts reimbursable or payable with respect to the Group II Mortgage Loans and
the Group II Mortgage Loan Components in Subgroup IIA-3 to the Depositor, the
Master Servicer, the Trustee, the Seller or any Sub-Servicer pursuant to Section
3.11(a) or Section 3.12 or otherwise payable in respect of Extraordinary Trust
Fund Expenses, (v) the Trustee Fee attributable to the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-3 payable from the
Distribution Account pursuant to Section 8.05 and (vi) amounts deposited in the
Collection Account or the Distribution Account in error with respect to the
Group II Mortgage Loans and the Group II Mortgage Loan Components in Subgroup
IIA-3. Notwithstanding the foregoing, the Subgroup IIA-3 Available Distribution
Amount for any Distribution Date shall be increased (in the case of an
Undercollateralized Subgroup with respect to Subgroup IIA-3) or decreased (in
the case of an Overcollateralized Subgroup with respect to Subgroup IIA-3) by
any applicable Diverted Interest Amount or Class A Principal Adjustment Amount,
in each case for such Distribution Date. The Subgroup IIA-3 Available
Distribution Amount shall not include any Prepayment Interest Excess related to
the Group II Mortgage Loans and the Group II Mortgage Loan Components in
Subgroup IIA-3.
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"Subgroup IIA-3 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IIA-CB3 Certificates
and (b) the aggregate amount of Realized Losses on the Group II Mortgage Loan
Components or the Group II Mortgage Loans in Subgroup IIA-3 on such Distribution
Date.
"Subgroup IIA-3 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-3 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group II Mortgage Loans and the Group II Mortgage Loan
Components in Subgroup IIA-3 over (ii) the aggregate Certificate Principal
Balance of the Class IIA-CB3 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IIA-3 Senior Percentage": With respect to any Distribution
Date and the Class IIA-CB3 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IIA-CB3
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IIA-CB3 Certificates on such date pursuant
to clause (d) of the definition of "Senior Principal Distribution Amount," and
the denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loans
and the Group II Mortgage Loan Components in Subgroup IIA-3, plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties related to the Group II Mortgage Loans and the Group II
Mortgage Loan Components in Subgroup IIA-3, in each case before reduction for
any Realized Losses on such Distribution Date.
"Subgroup IIA-3 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IIA-CB3
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IIA-3 Senior Percentage plus
70% of the Subgroup IIA-3 Subordinate
Percentage
September 2010 through August 2011 Subgroup IIA-3 Senior Percentage plus
60% of the Subgroup IIA-3 Subordinate
Percentage
September 2011 through August 2012 Subgroup IIA-3 Senior Percentage plus
40% of the Subgroup IIA-3 Subordinate
Percentage
September 2012 through August 2013 Subgroup IIA-3 Senior Percentage plus
20% of the Subgroup IIA-3 Subordinate
Percentage
September 2013 and thereafter Subgroup IIA-3 Senior Percentage
------------------------------------------------------------------------------
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provided, however, no reduction to the Subgroup IIA-3 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IIA-3 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IIA-3 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IIA-3 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IIA-3 Senior
Prepayment Percentage shall be 100%.
"Subgroup IIA-3 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IIA-3 Senior Percentage.
"Subgroup IIA-3 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IIA-3 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IIIA-1": The Group III Mortgage Loan subgroup that
includes all Group III Mortgage Loans with an Expense Adjusted Mortgage Rate
less than or equal to 5.00% and Mortgage Loan Components representing a portion
of all Group III Mortgage Loans, based on the Applicable Fractions of such
Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than 5.00% per
annum and less than 6.50% per annum.
"Subgroup IIIA-1 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group III Mortgage Loans and the Group III Mortgage Loan
Components in Subgroup IIIA-1 as of the close of business on the related
Determination Date including any Subsequent Recoveries with respect to the Group
III Mortgage Loans and the Group III Mortgage Loan Components in Subgroup
IIIA-1, (b) the aggregate of any amounts received in respect of an REO Property
relating to a Group III Mortgage Loan and a Group III Mortgage Loan Component in
Subgroup IIIA-1withdrawn from any REO Account and deposited in the Distribution
Account for such Distribution Date pursuant to Section 3.23, (c) the aggregate
of any amounts deposited in the Distribution Account by the Master Servicer in
respect of Prepayment Interest Shortfalls on the Group III Mortgage Loans and
the Group III Mortgage Loan Components in Subgroup IIIA-1 for such Distribution
Date pursuant to Section 3.24 and (d) the aggregate of any P&I Advances made by
the Master Servicer or Special Servicer for such Distribution Date with respect
to the Group III Mortgage Loans and the Group III Mortgage Loan Components in
Subgroup IIIA-1 pursuant to Section 4.03, reduced (to not less than zero) by (2)
the portion of the amount described in clause (1)(a) above that represents (i)
Monthly Payments on the
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Group III Mortgage Loans and the Group III Mortgage Loan Components in Subgroup
IIIA-1 received from a Mortgagor on or prior to the Determination Date but due
during any Due Period subsequent to the related Due Period, (ii) Principal
Prepayments on the Group III Mortgage Loans and the Group III Mortgage Loan
Components in Subgroup IIIA-1 received after the related Prepayment Period
(together with any interest payments received with such Principal Prepayments to
the extent they represent the payment of interest accrued on the Group III
Mortgage Loans and the Group III Mortgage Loan Components in Subgroup IIIA-1
during a period subsequent to the related Prepayment Period), (iii) Liquidation
Proceeds, Insurance Proceeds and Subsequent Recoveries received in respect of
the Group III Mortgage Loans and the Group III Mortgage Loan Components in
Subgroup IIIA-1 after the related Prepayment Period, (iv) amounts reimbursable
or payable with respect to the Group III Mortgage Loans and the Group III
Mortgage Loan Components in Subgroup IIIA-1 to the Depositor, the Master
Servicer, the Trustee, the Seller or any Sub-Servicer pursuant to Section
3.11(a) or Section 3.12 or otherwise payable in respect of Extraordinary Trust
Fund Expenses, (v) the Trustee Fee attributable to the Group III Mortgage Loans
and the Group III Mortgage Loan Components in Subgroup IIIA-1 payable from the
Distribution Account pursuant to Section 8.05 and (vi) amounts deposited in the
Collection Account or the Distribution Account in error with respect to the
Group III Mortgage Loans and the Group III Mortgage Loan Components in Subgroup
IIIA-1. Notwithstanding the foregoing, the Subgroup IIIA-1 Available
Distribution Amount for any Distribution Date shall be increased (in the case of
an Undercollateralized Subgroup with respect to Subgroup IIIA-1) or decreased
(in the case of an Overcollateralized Subgroup with respect to Subgroup IIIA-1)
by any applicable Diverted Interest Amount or Class A Principal Adjustment
Amount, in each case for such Distribution Date. The Subgroup IIIA-1 Available
Distribution Amount shall not include any Prepayment Interest Excess related to
the Group III Mortgage Loans and the Group III Mortgage Loan Components in
Subgroup IIIA-1.
"Subgroup IIIA-1 Excess Diverted Interest Reserve Deposit": An
amount withdrawn from the Excess Diverted Interest Reserve Account equal to the
lesser of (i) the amount on deposit in the Excess Diverted Interest Reserve
Account and (ii) the sum of (a) any interest shortfalls on the Class IIIA-CB1
Certificates and (b) the aggregate amount of Realized Losses on the Group III
Mortgage Loan Components or the Group III Mortgage Loans in Subgroup IIIA-1 on
such Distribution Date.
"Subgroup IIIA-1 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group III Mortgage Loans and the Group III
Mortgage Loan Components in Subgroup IIIA-1 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group III Mortgage Loans and the Group III Mortgage
Loan Components in Subgroup IIIA-1 over (ii) the aggregate Certificate Principal
Balance of the Class IIIA-CB1 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IIIA-1 Senior Percentage": With respect to any
Distribution Date and the Class IIIA-CB1 Certificates, the lesser of (a) 100%
and (b) a fraction, expressed as a percentage, the numerator of which is the
excess, if any, of the aggregate Certificate Principal Balance of the Class
IIIA-CB1 Certificates for such Distribution Date over the aggregate amount, if
any, payable to the
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Holders of the Class IIIA-CB1 Certificates on such date pursuant to clause (d)
of the definition of "Senior Principal Distribution Amount," and the denominator
of which is the sum of (i) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group III Mortgage Loans and the Group III
Mortgage Loan Components in Subgroup IIIA-1, plus (ii) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group III Mortgage Loans and the Group III Mortgage
Loan Components in Subgroup IIIA-1, in each case before reduction for any
Realized Losses on such Distribution Date.
"Subgroup IIIA-1 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IIIA-CB1
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IIIA-1 Senior Percentage plus
70% of the Subgroup IIIA-1 Subordinate
Percentage
September 2010 through August 2011 Subgroup IIIA-1 Senior Percentage plus
60% of the Subgroup IIIA-1 Subordinate
Percentage
September 2011 through August 2012 Subgroup IIIA-1 Senior Percentage plus
40% of the Subgroup IIIA-1 Subordinate
Percentage
September 2012 through August 2013 Subgroup IIIA-1 Senior Percentage plus
20% of the Subgroup IIIA-1 Subordinate
Percentage
September 2013 and thereafter Subgroup IIIA-1 Senior Percentage
--------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IIIA-1 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IIIA-1 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IIIA-1 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IIIA-1 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IIIA-1 Senior
Prepayment Percentage shall be 100%.
"Subgroup IIIA-1 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IIIA-1 Senior Percentage.
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"Subgroup IIIA-1 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IIIA-1 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IIIA-2": The Group III Mortgage Loan subgroup that
includes a portion of all Group III Mortgage Loans, based on the Applicable
Fractions of such Mortgage Loans, with an Expense Adjusted Mortgage Rate greater
than 5.00% per annum and less than 6.50% per annum and all Group III Mortgage
Loans with an Expense Adjusted Mortgage Rate greater than or equal to 6.50% per
annum.
"Subgroup IIIA-2 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group III Mortgage Loans and the Group III Mortgage Loan
Components in Subgroup IIIA-2 as of the close of business on the related
Determination Date including any Subsequent Recoveries with respect to the Group
III Mortgage Loans and the Group III Mortgage Loan Components in Subgroup
IIIA-2, (b) the aggregate of any amounts received in respect of an REO Property
relating to a Group III Mortgage Loan and a Group III Mortgage Loan Component in
Subgroup IIIA-2withdrawn from any REO Account and deposited in the Distribution
Account for such Distribution Date pursuant to Section 3.23, (c) the aggregate
of any amounts deposited in the Distribution Account by the Master Servicer in
respect of Prepayment Interest Shortfalls on the Group III Mortgage Loans and
the Group III Mortgage Loan Components in Subgroup IIIA-2 for such Distribution
Date pursuant to Section 3.24 and (d) the aggregate of any P&I Advances made by
the Master Servicer or Special Servicer for such Distribution Date with respect
to the Group III Mortgage Loans and the Group III Mortgage Loan Components in
Subgroup IIIA-2 pursuant to Section 4.03, reduced (to not less than zero) by (2)
the portion of the amount described in clause (1)(a) above that represents (i)
Monthly Payments on the Group III Mortgage Loans and the Group III Mortgage Loan
Components in Subgroup IIIA-2 received from a Mortgagor on or prior to the
Determination Date but due during any Due Period subsequent to the related Due
Period, (ii) Principal Prepayments on the Group III Mortgage Loans and the Group
III Mortgage Loan Components in Subgroup IIIA-2 received after the related
Prepayment Period (together with any interest payments received with such
Principal Prepayments to the extent they represent the payment of interest
accrued on the Group III Mortgage Loans and the Group III Mortgage Loan
Components in Subgroup IIIA-2 during a period subsequent to the related
Prepayment Period), (iii) Liquidation Proceeds, Insurance Proceeds and
Subsequent Recoveries received in respect of the Group III Mortgage Loans and
the Group III Mortgage Loan Components in Subgroup IIIA-2 after the related
Prepayment Period, (iv) amounts reimbursable or payable with respect to the
Group III Mortgage Loans and the Group III Mortgage Loan Components in Subgroup
IIIA-2 to the Depositor, the Master Servicer, the Trustee, the Seller or any
Sub-Servicer pursuant to Section 3.11(a) or Section 3.12 or otherwise payable in
respect of Extraordinary Trust Fund Expenses, (v) the Trustee Fee attributable
to the Group III Mortgage Loans and the Group III Mortgage Loan Components in
Subgroup IIIA-2 payable from the Distribution Account pursuant to Section 8.05
and (vi) amounts deposited in the Collection Account or the Distribution Account
in error with respect to the Group III Mortgage Loans and the Group III Mortgage
Loan Components in Subgroup IIIA-2. Notwithstanding the foregoing, the Subgroup
IIIA-2 Available Distribution Amount for any Distribution Date shall be
increased (in the case of an Undercollateralized Subgroup with respect to
Subgroup IIIA-2) or decreased (in the case of an Overcollateralized Subgroup
with
-63-
respect to Subgroup IIIA-2) by any applicable Diverted Interest Amount or Class
A Principal Adjustment Amount, in each case for such Distribution Date. The
Subgroup IIIA-2 Available Distribution Amount shall not include any Prepayment
Interest Excess related to the Group III Mortgage Loans and the Group III
Mortgage Loan Components in Subgroup IIIA-2.
"Subgroup IIIA-2 Excess Diverted Interest Reserve Deposit": An
amount withdrawn from the Excess Diverted Interest Reserve Account equal to the
lesser of (i) the amount on deposit in the Excess Diverted Interest Reserve
Account and (ii) the sum of (a) any interest shortfalls on the Class IIIA-CB2
Certificates and (b) the aggregate amount of Realized Losses on the Group III
Mortgage Loan Components or the Group III Mortgage Loans in Subgroup IIIA-2 on
such Distribution Date.
"Subgroup IIIA-2 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group III Mortgage Loans and the Group III
Mortgage Loan Components in Subgroup IIIA-2 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group III Mortgage Loans and the Group III Mortgage
Loan Components in Subgroup IIIA-2 over (ii) the aggregate Certificate Principal
Balance of the Class IIIA-CB2 Certificates immediately after payment of the
related Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IIIA-2 Senior Percentage": With respect to any
Distribution Date and the Class IIIA-CB2 Certificates, the lesser of (a) 100%
and (b) a fraction, expressed as a percentage, the numerator of which is the
excess, if any, of the aggregate Certificate Principal Balance of the Class
IIIA-CB2 Certificates for such Distribution Date over the aggregate amount, if
any, payable to the Holders of the Class IIIA-CB2 Certificates on such date
pursuant to clause (d) of the definition of "Senior Principal Distribution
Amount," and the denominator of which is the sum of (i) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the Group III
Mortgage Loans and the Group III Mortgage Loan Components in Subgroup IIIA-2,
plus (ii) the aggregate of the Non-Class PO Percentages of the Scheduled
Principal Balances of the REO Properties related to the Group III Mortgage Loans
and the Group III Mortgage Loan Components in Subgroup IIIA-2, in each case
before reduction for any Realized Losses on such Distribution Date.
"Subgroup IIIA-2 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IIIA-CB2
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IIIA-2 Senior Percentage plus
70% of the Subgroup IIIA-2 Subordinate
Percentage
September 2010 through August 2011 Subgroup IIIA-2 Senior Percentage plus
60% of the Subgroup IIIA-2 Subordinate
Percentage
September 2011 through August 2012 Subgroup IIIA-2 Senior Percentage plus
40% of the Subgroup IIIA-2 Subordinate
Percentage
September 2012 through August 2013 Subgroup IIIA-2 Senior Percentage plus
20% of the Subgroup IIIA-2 Subordinate
Percentage
September 2013 and thereafter Subgroup IIIA-2 Senior Percentage
------------------------------------------------------------------------------
-64-
provided, however, no reduction to the Subgroup IIIA-2 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IIIA-2 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IIIA-2 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IIIA-2 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IIIA-2 Senior
Prepayment Percentage shall be 100%.
"Subgroup IIIA-2 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IIIA-2 Senior Percentage.
"Subgroup IIIA-2 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IIIA-2 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IVA-1": The Group IV Mortgage Loan subgroup that includes
all Group IV Mortgage Loans with an Expense Adjusted Mortgage Rate less than or
equal to 6.50% and Mortgage Loan Components representing a portion of all Group
IV Mortgage Loans, based on the Applicable Fractions of such Mortgage Loans,
with an Expense Adjusted Mortgage Rate greater than 6.50% per annum and less
than 7.00% per annum.
"Subgroup IVA-1 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group IV Mortgage Loans and the Group IV Mortgage Loan Components
in Subgroup IVA-1 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-1, (b) the aggregate
of any amounts received in respect of an REO Property relating to a Group IV
Mortgage Loan and a Group IV Mortgage Loan Component in Subgroup IVA-1withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-1 for such Distribution Date pursuant
to Section 3.24 and (d) the
-65-
aggregate of any P&I Advances made by the Master Servicer or Special Servicer
for such Distribution Date with respect to the Group IV Mortgage Loans and the
Group IV Mortgage Loan Components in Subgroup IVA-1 pursuant to Section 4.03,
reduced (to not less than zero) by (2) the portion of the amount described in
clause (1)(a) above that represents (i) Monthly Payments on the Group IV
Mortgage Loans and the Group IV Mortgage Loan Components in Subgroup IVA-1
received from a Mortgagor on or prior to the Determination Date but due during
any Due Period subsequent to the related Due Period, (ii) Principal Prepayments
on the Group IV Mortgage Loans and the Group IV Mortgage Loan Components in
Subgroup IVA-1 received after the related Prepayment Period (together with any
interest payments received with such Principal Prepayments to the extent they
represent the payment of interest accrued on the Group IV Mortgage Loans and the
Group IV Mortgage Loan Components in Subgroup IVA-1 during a period subsequent
to the related Prepayment Period), (iii) Liquidation Proceeds, Insurance
Proceeds and Subsequent Recoveries received in respect of the Group IV Mortgage
Loans and the Group IV Mortgage Loan Components in Subgroup IVA-1 after the
related Prepayment Period, (iv) amounts reimbursable or payable with respect to
the Group IV Mortgage Loans and the Group IV Mortgage Loan Components in
Subgroup IVA-1 to the Depositor, the Master Servicer, the Trustee, the Seller or
any Sub-Servicer pursuant to Section 3.11(a) or Section 3.12 or otherwise
payable in respect of Extraordinary Trust Fund Expenses, (v) the Trustee Fee
attributable to the Group IV Mortgage Loans and the Group IV Mortgage Loan
Components in Subgroup IVA-1 payable from the Distribution Account pursuant to
Section 8.05 and (vi) amounts deposited in the Collection Account or the
Distribution Account in error with respect to the Group IV Mortgage Loans and
the Group IV Mortgage Loan Components in Subgroup IVA-1. Notwithstanding the
foregoing, the Subgroup IVA-1 Available Distribution Amount for any Distribution
Date shall be increased (in the case of an Undercollateralized Subgroup with
respect to Subgroup IVA-1) or decreased (in the case of an Overcollateralized
Subgroup with respect to Subgroup IVA-1) by any applicable Diverted Interest
Amount or Class A Principal Adjustment Amount, in each case for such
Distribution Date. The Subgroup IVA-1 Available Distribution Amount shall not
include any Prepayment Interest Excess related to the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-1.
"Subgroup IVA-1 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IVA-1 Certificates and
(b) the aggregate amount of Realized Losses on the Group IV Mortgage Loan
Components or the Group IV Mortgage Loans in Subgroup IVA-1 on such Distribution
Date.
"Subgroup IVA-1 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-1 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group IV Mortgage Loans and the Group IV Mortgage Loan
Components in Subgroup IVA-1 over (ii) the aggregate Certificate Principal
Balance of the Class IVA-1 Certificates immediately after payment of the related
Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
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"Subgroup IVA-1 Senior Percentage": With respect to any Distribution
Date and the Class IVA-1 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IVA-1
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IVA-1 Certificates on such date pursuant to
clause (d) of the definition of "Senior Principal Distribution Amount," and the
denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-1, plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties related to the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-1, in each case before reduction for
any Realized Losses on such Distribution Date.
"Subgroup IVA-1 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IVA-1
Certificates, the percentage as indicated below:
Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IVA-1 Senior Percentage plus
70% of the Subgroup IVA-1 Subordinate
Percentage
September 2010 through August 2011 Subgroup IVA-1 Senior Percentage plus
60% of the Subgroup IVA-1 Subordinate
Percentage
September 2011 through August 2012 Subgroup IVA-1 Senior Percentage plus
40% of the Subgroup IVA-1 Subordinate
Percentage
September 2012 through August 2013 Subgroup IVA-1 Senior Percentage plus
20% of the Subgroup IVA-1 Subordinate
Percentage
September 2013 and thereafter Subgroup IVA-1 Senior Percentage
------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IVA-1 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IVA-1 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IVA-1 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IVA-1 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IVA-1 Senior
Prepayment Percentage shall be 100%.
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"Subgroup IVA-1 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IVA-1 Senior Percentage.
"Subgroup IVA-1 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IVA-1 Senior Prepayment Percentage for such Distribution Date.
"Subgroup IVA-2": The Group IV Mortgage Loan subgroup that includes
a portion of all Group IV Mortgage Loans, based on the Applicable Fractions of
such Mortgage Loans, with an Expense Adjusted Mortgage Rate greater than 6.50%
per annum and less than 7.00% per annum and all Group IV Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 7.00% per annum.
"Subgroup IVA-2 Available Distribution Amount": With respect to any
Distribution Date, an amount equal to (1) the sum of (a) the aggregate of the
amounts on deposit in the Collection Account and Distribution Account with
respect to the Group IV Mortgage Loans and the Group IV Mortgage Loan Components
in Subgroup IVA-2 as of the close of business on the related Determination Date
including any Subsequent Recoveries with respect to the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-2, (b) the aggregate
of any amounts received in respect of an REO Property relating to a Group IV
Mortgage Loan and a Group IV Mortgage Loan Component in Subgroup IVA-2withdrawn
from any REO Account and deposited in the Distribution Account for such
Distribution Date pursuant to Section 3.23, (c) the aggregate of any amounts
deposited in the Distribution Account by the Master Servicer in respect of
Prepayment Interest Shortfalls on the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-2 for such Distribution Date pursuant
to Section 3.24 and (d) the aggregate of any P&I Advances made by the Master
Servicer or Special Servicer for such Distribution Date with respect to the
Group IV Mortgage Loans and the Group IV Mortgage Loan Components in Subgroup
IVA-2 pursuant to Section 4.03, reduced (to not less than zero) by (2) the
portion of the amount described in clause (1)(a) above that represents (i)
Monthly Payments on the Group IV Mortgage Loans and the Group IV Mortgage Loan
Components in Subgroup IVA-2 received from a Mortgagor on or prior to the
Determination Date but due during any Due Period subsequent to the related Due
Period, (ii) Principal Prepayments on the Group IV Mortgage Loans and the Group
IV Mortgage Loan Components in Subgroup IVA-2 received after the related
Prepayment Period (together with any interest payments received with such
Principal Prepayments to the extent they represent the payment of interest
accrued on the Group IV Mortgage Loans and the Group IV Mortgage Loan Components
in Subgroup IVA-2 during a period subsequent to the related Prepayment Period),
(iii) Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries
received in respect of the Group IV Mortgage Loans and the Group IV Mortgage
Loan Components in Subgroup IVA-2 after the related Prepayment Period, (iv)
amounts reimbursable or payable with respect to the Group IV Mortgage Loans and
the Group IV Mortgage Loan Components in Subgroup IVA-2 to the Depositor, the
Master Servicer, the Trustee, the Seller or any Sub-Servicer pursuant to Section
3.11(a) or Section 3.12 or otherwise payable in respect of Extraordinary Trust
Fund Expenses, (v) the Trustee Fee attributable to the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-2 payable from the
Distribution Account pursuant to Section 8.05 and (vi) amounts deposited in the
Collection Account or the Distribution Account
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in error with respect to the Group IV Mortgage Loans and the Group IV Mortgage
Loan Components in Subgroup IVA-2. Notwithstanding the foregoing, the Subgroup
IVA-2 Available Distribution Amount for any Distribution Date shall be increased
(in the case of an Undercollateralized Subgroup with respect to Subgroup IVA-2)
or decreased (in the case of an Overcollateralized Subgroup with respect to
Subgroup IVA-2) by any applicable Diverted Interest Amount or Class A Principal
Adjustment Amount, in each case for such Distribution Date. The Subgroup IVA-2
Available Distribution Amount shall not include any Prepayment Interest Excess
related to the Group IV Mortgage Loans and the Group IV Mortgage Loan Components
in Subgroup IVA-2.
"Subgroup IVA-2 Excess Diverted Interest Reserve Deposit": An amount
withdrawn from the Excess Diverted Interest Reserve Account equal to the lesser
of (i) the amount on deposit in the Excess Diverted Interest Reserve Account and
(ii) the sum of (a) any interest shortfalls on the Class IVA-2 Certificates and
(b) the aggregate amount of Realized Losses on the Group IV Mortgage Loan
Components or the Group IV Mortgage Loans in Subgroup IVA-2 on such Distribution
Date.
"Subgroup IVA-2 Overcollateralized Amount": With respect to any
Distribution Date on which an Overcollateralized Amount exists, the excess, if
any, of (i) the sum of (a) the aggregate of the Non-Class PO Percentages of the
Scheduled Principal Balances of the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-2 plus (b) the aggregate of the
Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties related to the Group IV Mortgage Loans and the Group IV Mortgage Loan
Components in Subgroup IVA-2 over (ii) the aggregate Certificate Principal
Balance of the Class IVA-2 Certificates immediately after payment of the related
Senior Principal Distribution Amount, in each case, after scheduled and
unscheduled payments in respect of principal were received or advanced.
"Subgroup IVA-2 Senior Percentage": With respect to any Distribution
Date and the Class IVA-2 Certificates, the lesser of (a) 100% and (b) a
fraction, expressed as a percentage, the numerator of which is the excess, if
any, of the aggregate Certificate Principal Balance of the Class IVA-2
Certificates for such Distribution Date over the aggregate amount, if any,
payable to the Holders of the Class IVA-2 Certificates on such date pursuant to
clause (d) of the definition of "Senior Principal Distribution Amount," and the
denominator of which is the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group IV Mortgage Loans
and the Group IV Mortgage Loan Components in Subgroup IVA-2, plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties related to the Group IV Mortgage Loans and the Group IV
Mortgage Loan Components in Subgroup IVA-2, in each case before reduction for
any Realized Losses on such Distribution Date.
"Subgroup IVA-2 Senior Prepayment Percentage": With respect to any
Distribution Date within the range indicated below and the Class IVA-2
Certificates, the percentage as indicated below:
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Distribution Date Senior Prepayment Percentage
---------------------------------- -------------------------------------------
September 2004 through August 2009 100%
September 2009 through August 2010 Subgroup IVA-2 Senior Percentage plus
70% of the Subgroup IVA-2 Subordinate
Percentage
September 2010 through August 2011 Subgroup IVA-2 Senior Percentage plus
60% of the Subgroup IVA-2 Subordinate
Percentage
September 2011 through August 2012 Subgroup IVA-2 Senior Percentage plus
40% of the Subgroup IVA-2 Subordinate
Percentage
September 2012 through August 2013 Subgroup IVA-2 Senior Percentage plus
20% of the Subgroup IVA-2 Subordinate
Percentage
September 2013 and thereafter Subgroup IVA-2 Senior Percentage
------------------------------------------------------------------------------
provided, however, no reduction to the Subgroup IVA-2 Senior Prepayment
Percentage described above shall be made as of any Distribution Date unless (i)
the outstanding principal balance of the Mortgage Loans delinquent 60 days or
more (including REO Properties and Mortgage Loans in foreclosure) averaged over
the last six months does not exceed 50% of the sum of the then current
Certificate Principal Balances of the Subordinate Certificates and (ii) Realized
Losses on the Mortgage Loans to date are less than the then applicable Trigger
Amount.
On any Distribution Date on which the conditions in either of
clauses (i) or (ii) above are not met, the Subgroup IVA-2 Senior Prepayment
Percentage will be the greater of (x) the Subgroup IVA-2 Senior Prepayment
Percentage for such Distribution Date or (y) the Subgroup IVA-2 Senior
Prepayment Percentage for the immediately preceding Distribution Date.
On any Distribution Date on which the Aggregate Senior Percentage
exceeds the initial Aggregate Senior Percentage, the Subgroup IVA-2 Senior
Prepayment Percentage shall be 100%.
"Subgroup IVA-2 Subordinate Percentage": With respect to the
Subordinate Certificates and any Distribution Date, a percentage equal to 100%
minus the Subgroup IVA-2 Senior Percentage.
"Subgroup IVA-2 Subordinate Prepayment Percentage": With respect to
the Subordinate Certificates and any Distribution Date, 100% minus the Subgroup
IVA-2 Senior Prepayment Percentage for such Distribution Date.
"Subordinate Amount": For any Distribution Date will equal the
excess of (i) the Scheduled Principal Balance of the Mortgage Loans (exclusive
of the Class PO Percentage of the Scheduled Principal Balance of the Class PO
Mortgage Loans), over (ii) the sum of the Certificate Principal Balances of the
Class A Certificates.
"Subordinate Certificate": Any Class B-1 Certificate, Class B-2
Certificate, Class B-3 Certificate, Class B-4 Certificate, Class B-5 Certificate
or Class B-6 Certificate.
"Subordinate Interest Distribution Amount": With respect to any
Distribution Date, an amount equal to the aggregate of the Interest Distribution
Amounts for such Distribution Date on all of the Subordinate Certificates.
"Subordinate Percentage": With respect to any Distribution Date, the
percentage equal to the aggregate Certificate Principal Balance of the
Subordinate Certificates immediately prior to such Distribution Date divided by
the aggregate Scheduled Principal Balance of all of the
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Mortgage Loans as of the close of business on the first day of the calendar
month immediately preceding such Distribution Date.
"Subordinate Principal Distribution Amount": For any Distribution
Date, an amount equal to the lesser of (i) the Available Distribution Amount
remaining after distribution of the Senior Interest Distribution Amount, the
Class PO Principal Distribution Amount, the Senior Principal Distribution Amount
and the Subordinate Interest Distribution Amount and (ii) the sum of:
(a) the product of (x) the then-applicable Subgroup IA-1 Subordinate
Percentage, Subgroup IA-2 Subordinate Percentage, Subgroup IA-3 Subordinate
Percentage, Subgroup IIA-1 Subordinate Percentage, Subgroup IIA-2 Subordinate
Percentage, Subgroup IIA-3 Subordinate Percentage, Subgroup IIIA-1 Subordinate
Percentage, Subgroup IIIA-2 Subordinate Percentage, Subgroup IVA-1 Subordinate
Percentage or Subgroup IVA-2 Subordinate Percentage, as applicable, and (y) the
sum of the following:
(i) the related Non-Class PO Percentage of the aggregate of
the principal portions of all Monthly Payments due during the
related Due Period in respect of the related Mortgage Loans or
Mortgage Loan Components, as applicable, whether or not received;
(ii) the related Non-Class PO Percentage of the principal
portion of all Insurance Proceeds, Liquidation Proceeds (other than
amounts described in clause (c) below) and Subsequent Recoveries
received in respect of the related Mortgage Loans or Mortgage Loan
Components, as applicable, during the related Prepayment Period
(other than any such Mortgage Loan that was purchased, sold or
replaced pursuant to or as contemplated by Section 2.03 or Section
9.01 during the related Prepayment Period), net of any portion
thereof that represents a recovery of principal for which an advance
was made by the Master Servicer pursuant to Section 4.03 in respect
of a preceding Distribution Date;
(iii) the related Non-Class PO Percentage of the Stated
Principal Balance (calculated immediately prior to such Distribution
Date) of each related Mortgage Loan or Mortgage Loan Component, as
applicable, that was purchased, sold or replaced pursuant to or as
contemplated by Section 2.03 or Section 9.01 during the related
Prepayment Period;
(iv) the related Non-PO Percentage of all REO Principal Amortization
collected in respect of any REO Property during the related
Prepayment Period; and
(v) in connection with the substitution of one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans in
the related Loan Group pursuant to Section 2.03 during the related
Prepayment Period, the excess, if any, of (A) the aggregate of the
related Non-Class PO Percentage of the Stated Principal Balances
(calculated as of the respective dates of substitution) of such
Deleted Mortgage Loans, net of the aggregate of the related
Non-Class PO Percentage of the principal portions of the Monthly
Payments due during the related Prepayment Period
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(to the extent received from the related Mortgagor or advanced by
the Master Servicer and distributed pursuant to Section 4.01 on the
Distribution Date in the related Prepayment Period) in respect of
each such Deleted Mortgage Loan that was replaced prior to the
Distribution Date in the related Prepayment Period, over (B) the
aggregate of the related Non-Class PO Percentage of the Stated
Principal Balances (calculated as of the respective dates of
substitution) of such Qualified Substitute Mortgage Loans;
(b) the product of (x) the then-applicable Subgroup IA-1 Subordinate
Prepayment Percentage, Subgroup IA-2 Subordinate Prepayment Percentage, Subgroup
IA-3 Subordinate Prepayment Percentage, Subgroup IIA-1 Subordinate Prepayment
Percentage, Subgroup IIA-2 Subordinate Prepayment Percentage, Subgroup IIA-3
Subordinate Prepayment Percentage, Subgroup IIIA-1 Subordinate Prepayment
Percentage, Subgroup IIIA-2 Subordinate Prepayment Percentage, Subgroup IVA-1
Subordinate Prepayment Percentage or Subgroup IVA-2 Subordinate Prepayment
Percentage, as applicable, and (y) related Non-Class PO Percentage of all
Principal Prepayments received in respect of the related Mortgage Loans or
Mortgage Loan Components, as applicable, during the related Prepayment Period;
(c) with respect to any related Mortgage Loans or Mortgage Loan
Components, as applicable, which were the subject of a Final Recovery
Determination in the related Prepayment Period, the amount, if any, by which the
net Liquidation Proceeds and Insurance Proceeds allocable to principal in
respect of such Mortgage Loans exceed the amount distributable to the related
Class A Certificates and the related Class PO Certificates pursuant to clause
(c) of the definition of "Senior Principal Distribution Amount" and clause (c)
of the definition of "Class PO Principal Distribution Amount"; and
(d) in the case of any Distribution Date subsequent to the initial
Distribution Date, an amount equal to the excess, if any, of the Subordinate
Principal Distribution Amount for the immediately preceding Distribution Date,
over the aggregate distributions of principal made in respect of the Subordinate
Certificates on such immediately preceding Distribution Date pursuant to Section
4.01 to the extent that any such amounts are not attributable to Realized Losses
that were allocated to the Subordinate Certificates pursuant to Section 4.04.
"Subordination Test": With respect to any Distribution Date, the
Subordination Test will be met if both (i) the Subordinate Percentage is equal
to or greater than two times the Subordinate Percentage on the Closing Date and
(ii) the outstanding Stated Principal Balance of the Mortgage Loans delinquent
60 days or more averaged over the last six months (including Mortgage Loans in
foreclosure and Mortgage Loans the Mortgaged Property of which is held by REMIC
I and acquired by foreclosure or deed in lieu of foreclosure), as a percentage
of the Subordinate Amount, is less than to 50%.
"Subsequent Recoveries": As of any Distribution Date, amounts
received by the Trust Fund (net of any related expenses permitted to be
reimbursed to the Master Servicer or the Special Servicer from such amounts
hereunder or under the Special Servicing Agreement) specifically related to a
Mortgage Loan that was the subject of a liquidation or an REO Disposition prior
to the related Prepayment Period that resulted in a Realized Loss.
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"Sub-Servicer": Any Person with which the Master Servicer has
entered into a Sub-Servicing Agreement and which meets the qualifications of a
Sub-Servicer pursuant to Section 3.02.
"Sub-Servicing Account": An account established by a Sub-Servicer
which meets the requirements set forth in Section 3.08 and is otherwise
acceptable to the Master Servicer.
"Sub-Servicing Agreement": The written contract between the Master
Servicer and a Sub-Servicer relating to servicing and administration of certain
Mortgage Loans as provided in Section 3.02.
"Tax Returns": The federal income tax return on Internal Revenue
Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax
Return, including Schedule Q thereto, Quarterly Notice to Residual Interest
Holders of REMIC Taxable Income or Net Loss Allocation, or any successor forms,
to be filed on behalf of REMIC I due to its classification as a REMIC under the
REMIC Provisions, together with any and all other information reports or returns
that may be required to be furnished to the Certificateholders or filed with the
Internal Revenue Service or any other governmental taxing authority under any
applicable provisions of federal, state or local tax laws.
"Termination Price": As defined in Section 9.01.
"Transfer": Any direct or indirect transfer, sale, pledge,
hypothecation, or other form of assignment of any Ownership Interest in a
Certificate.
"Transferee": Any Person who is acquiring by Transfer any
Ownership Interest in a Certificate.
"Transferor": Any Person who is disposing by Transfer of any
Ownership Interest in a Certificate.
"Trigger Amount": With respect to the Class A Certificates of any
Certificate Group and any Distribution Date, the Trigger Amount occurring after
the first five years will be as follows: for any Distribution Date during the
sixth year after the Closing Date, 30% of the initial aggregate Certificate
Principal Balance of the Subordinate Certificates; for any Distribution Date
during the seventh year after the Closing Date, 35% of the initial aggregate
Certificate Principal Balance of the Subordinate Certificates; for any
Distribution Date during the eighth year after the Closing Date, 40% of the
initial aggregate Certificate Principal Balance of the Subordinate Certificates;
for any Distribution Date during the ninth year after the Closing Date, 45% of
the initial aggregate Certificate Principal Balance of the Subordinate
Certificates; and for any Distribution Date during the tenth year (or any year
thereafter) after the Closing Date, 50% of the initial aggregate Certificate
Principal Balances of the Subordinate Certificates.
"Trust": The trust created hereunder.
"Trustee": U.S. Bank National Association, or its successor in
interest, or any successor trustee appointed as herein provided.
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"Trustee Fee": The amount payable as such to the Trustee on each
Distribution Date pursuant to Section 8.05(a), which shall be equal to the
Trustee Fee Rate accrued for one month on the same principal amount on which
interest on each Mortgage Loan accrues for such calendar month (or, in the case
of an REO Property, on the Scheduled Principal Balance of such REO Property as
of the Due Date for the related Mortgage Loan occurring in the month prior to
the month of such Distribution Date).
"Trustee Fee Rate": 0.005% per annum.
"Trust Fund": Collectively, all of the assets of the Trust
REMICs.
"Trust REMIC": Any of REMIC I, REMIC II or REMIC III.
"Uncertificated Balance": The amount of any REMIC I Regular Interest
or REMIC II Regular Interest outstanding as of any date of determination. As of
the Closing Date, the Uncertificated Balance of each REMIC I Regular Interest
(other than REMIC I Regular Interest I-LT-XS1, REMIC I Regular Interest
I-LT-XS2, REMIC I Regular Interest I-LT-XS3, REMIC I Regular Interest I-LT-XS4)
and each REMIC II Regular Interest (other than REMIC II Regular Interest
II-LT-1, REMIC II Regular Interest II-LT-2, REMIC II Regular Interest II-LT-3
and REMIC II Regular Interest II-LT-4) shall equal the amount set forth in the
Preliminary Statement hereto as its initial Uncertificated Balance. On each
Distribution Date, the Uncertificated Balance of each REMIC I Regular Interest
(other than REMIC I Regular Interest I-LT-XS1, REMIC I Regular Interest
I-LT-XS2, REMIC I Regular Interest I-LT-XS3, REMIC I Regular Interest I-LT-XS4)
and each REMIC II Regular Interest (other than REMIC II Regular Interest
II-LT-1, REMIC II Regular Interest II-LT-2, REMIC II Regular Interest II-LT-3
and REMIC II Regular Interest II-LT-4) shall be reduced by all distributions of
principal deemed to have been made on such REMIC I Regular Interest or REMIC II
Regular Interest, as applicable, on such Distribution Date pursuant to Section
4.04.
"Uncertificated Interest": With respect to any REMIC I Regular
Interest (other than REMIC I Regular Interest I-LTPO1, REMIC I Regular Interest
I-LTPO2, REMIC I Regular Interest I-LTPO3 and REMIC I Regular Interest I-LTPO4)
and any REMIC II Regular Interest (other than REMIC II Regular Interest
II-LTPO1, REMIC II Regular Interest II-LTPO2, REMIC II Regular Interest II-LTPO3
and REMIC II Regular Interest II-LTPO4) for any Distribution Date, one month's
interest at the related REMIC I Remittance Rate or REMIC II Remittance Rate, as
applicable, applicable to such REMIC I Regular Interest or REMIC II Regular
Interest for such Distribution Date, accrued on the Uncertificated Balance or
Uncertificated Notional Amount of such REMIC I Regular Interest or REMIC II
Regular Interest, as applicable, outstanding immediately prior to such
Distribution Date. Uncertificated Interest in respect of any REMIC I Regular
Interest or REMIC II Regular Interest shall accrue on the basis of a 360-day
year consisting of twelve 30-day Interest Accrual Periods. Uncertificated
Interest with respect to each Distribution Date, as to any REMIC I Regular
Interest or REMIC II Regular Interest shall be reduced, in the case of any
Distribution Date, by the amount of any Prepayment Interest Shortfalls (to the
extent not covered by payments in respect of Compensating Interest by the
Special Servicer or by the Master Servicer) and Relief Act Interest Shortfalls
that were allocated to such REMIC I Regular Interest or REMIC II Regular
Interest on such Distribution Date pursuant to Section 1.02.
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"Uncertificated Notional Amount": With respect to REMIC I Regular
Interest I-LTXS1, REMIC I Regular Interest I-LTXS2, REMIC I Regular Interest
I-LTXS3, REMIC I Regular Interest I-LTXS4, the aggregate Stated Principal
Balances of the Group I Mortgage Loans, Group II Mortgage Loans, Group III
Mortgage Loans and the Group IV Mortgage Loans, respectively.
"Undercollateralized Amount": As to any Distribution Date and
Subgroup IA-1, the excess, if any, of the aggregate Certificate Principal
Balance of the Class IA-CB1 Certificates immediately after payments of the
related Senior Principal Distribution Amount for such Distribution Date over the
sum of (i) the aggregate of the Non-Class PO Percentages of the Scheduled
Principal Balances of the Group I Mortgage Loans and Group I Mortgage Loan
Components in Subgroup IA-1 plus (ii) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the REO Properties (or
related portions thereof) in Subgroup IA-1, in each case, after scheduled and
unscheduled payments in respect of principal . As to any Distribution Date and
Subgroup IA-2, the excess, if any, of the aggregate Certificate Principal
Balance of the Class IA-CB2 Certificates immediately after payments of the
related Senior Principal Distribution Amount for such Distribution Date over the
sum of (i) the aggregate of the Non-Class PO Percentages of the Scheduled
Principal Balances of the Group I Mortgage Loan Components in Subgroup IA-2 plus
(ii) the aggregate of the Non-Class PO Percentages of the Scheduled Principal
Balances of the REO Properties (or related portions thereof) in Subgroup IA-2,
in each case, after scheduled and unscheduled payments in respect of principal .
As to any Distribution Date and Subgroup IA-3, the excess, if any, of the
aggregate Certificate Principal Balance of the Class IA-3 Certificates
immediately after payments of the related Senior Principal Distribution Amount
for such Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group I Mortgage Loans
and Group I Mortgage Loan Components in Subgroup IA-3 plus (ii) the aggregate of
the Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties (or related portions thereof) in Subgroup IA-3, in each case, after
scheduled and unscheduled payments in respect of principal . As to any
Distribution Date and Subgroup IIA-1, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IIA-CB1 Certificates immediately
after payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loans
and Group II Mortgage Loan Components in Subgroup IIA-1 plus (ii) the aggregate
of the Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties (or related portions thereof) in Subgroup IIA-1, in each case, after
scheduled and unscheduled payments in respect of principal . As to any
Distribution Date and Subgroup IIA-2, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IIA-CB2 Certificates immediately
after payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loan
Components in Subgroup IIA-2 plus (ii) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the REO Properties (or
related portions thereof) in Subgroup IIA-2, in each case, after scheduled and
unscheduled payments in respect of principal . As to any Distribution Date and
Subgroup IIA-3, the excess, if any, of the aggregate Certificate Principal
Balance of the Class IIA-CB3 Certificates immediately after payments of the
related Senior Principal Distribution Amount for such Distribution Date over the
sum of (i) the aggregate of the Non-Class PO Percentages of the Scheduled
Principal Balances of the Group II Mortgage Loans and Group II Mortgage Loan
Components in Subgroup IIA-3 plus (ii) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the REO
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Properties (or related portions thereof) in Subgroup IIA-3, in each case, after
scheduled and unscheduled payments in respect of principal . As to any
Distribution Date and Subgroup IIIA-1, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IIIA-CB1 Certificates immediately
after payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loans
and Group III Mortgage Loan Components in Subgroup IIIA-1 plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties (or related portions thereof) in Subgroup IIIA-1, in each
case, after scheduled and unscheduled payments in respect of principal . As to
any Distribution Date and Subgroup IIIA-2, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IIIA-CB2 Certificates immediately
after payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group III Mortgage Loans
and Group III Mortgage Loan Components in Subgroup IIIA-2 plus (ii) the
aggregate of the Non-Class PO Percentages of the Scheduled Principal Balances of
the REO Properties (or related portions thereof) in Subgroup IIIA-2, in each
case, after scheduled and unscheduled payments in respect of principal . As to
any Distribution Date and Subgroup IVA-1, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IVA-1 Certificates immediately after
payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group II Mortgage Loans
and Group IV Mortgage Loan Components in Subgroup IVA-1 plus (ii) the aggregate
of the Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties (or related portions thereof) in Subgroup IVA-1, in each case, after
scheduled and unscheduled payments in respect of principal . As to any
Distribution Date and Subgroup IVA-2, the excess, if any, of the aggregate
Certificate Principal Balance of the Class IVA-2 Certificates immediately after
payments of the related Senior Principal Distribution Amount for such
Distribution Date over the sum of (i) the aggregate of the Non-Class PO
Percentages of the Scheduled Principal Balances of the Group IV Mortgage Loans
and Group IV Mortgage Loan Components in Subgroup IVA-2 plus (ii) the aggregate
of the Non-Class PO Percentages of the Scheduled Principal Balances of the REO
Properties (or related portions thereof) in Subgroup IVA-2, in each case, after
scheduled and unscheduled payments in respect of principal .
"Undercollateralized Subgroup": As to any Distribution Date, any
Subgroup for which an Undercollateralized Amount greater than zero is
calculated.
"Uninsured Cause": Any cause of damage to a Mortgaged Property such
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to Section 3.14.
"United States Person": A citizen or resident of the United States,
a corporation, partnership or other entity created or organized in, or under the
laws of, the United States, any State thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations);
provided that, for purposes solely of the restrictions on the transfer of the
Class R Certificates, no partnership or other entity treated as a partnership
for United States federal income tax purposes shall be treated as a United
States Person unless all persons that own an interest in such partnership either
directly or through any entity that is not a corporation for United States
federal income tax purposes are required by the applicable operative agreement
to be United States Persons,
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or an estate whose income is subject to United States federal income tax
regardless of its source, or a trust if a court within the United States is able
to exercise primary supervision over the administration of the trust and one or
more United States Persons have the authority to control all substantial
decisions of the trust. To the extent prescribed in regulations by the Secretary
of the Treasury, a trust which was in existence on August 20, 1996 (other than a
trust treated as owned by the grantor under subpart E of part I of subchapter J
of chapter 1 of the Code), and which was treated as a United States person on
August 20, 1996 may elect to continue to be treated as a United States person
notwithstanding the previous sentence. The term "United States" shall have the
meaning set forth in Section 7701 of the Code.
"Value": With respect to any Mortgaged Property that is the only
Mortgaged Property securing a Mortgage Loan or is the primary Mortgaged Property
securing a Mortgage Loan, the lesser of (i) the value thereof as determined by
an appraisal made for the originator of the Mortgage Loan at the time of
origination of the Mortgage Loan and (ii) the purchase price paid for the
related Mortgaged Property by the Mortgagor with the proceeds of the Mortgage
Loan, provided, however, in the case of a Refinanced Mortgage Loan, such value
of the Mortgaged Property is based solely upon the value determined by an
appraisal made for the originator of such Refinanced Mortgage Loan at the time
of origination of such Refinanced Mortgage Loan by an appraiser.
"Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. At all times during the term
of this Agreement, (i) 98% of all of the Voting Rights shall be allocated to the
Regular Certificates (other than the Class XS Certificates), in proportion to
their then outstanding Certificate Principal Balances, (ii) 1% of all of the
Voting Rights shall be allocated to the Class XS Certificates, in proportion to
their then outstanding Notional Amounts and (iii) 1% of all Voting Rights will
be allocated among the holders of the Residual Certificates, in proportion to
their Percentage Interests in each such Class. All Voting Rights allocated to
any Class of Certificates shall be allocated among such Certificates pro rata in
accordance with the respective Percentage Interests evidenced thereby.
"Weighted Average Stripped Interest Rate": With respect to any
Distribution Date and the Mortgage Loans and REO Properties in any Loan Group,
the weighted average of the Stripped Interest Rates of such Mortgage Loans and
REO Properties in effect during the most recently ended calendar month on the
respective Scheduled Principal Balances thereof as of the Due Date in such most
recently ended calendar month (or, in the case of the initial Distribution Date,
as of the Cut-off Date).
SECTION 1.02. Allocation of Certain Interest Shortfalls.
The aggregate amount of any Prepayment Interest Shortfalls (to the
extent not covered by payments by the Master Servicer or the Special Servicer
pursuant to Section 3.24) and any Relief Act Interest Shortfalls incurred in
respect of the Mortgage Loans for any Distribution Date shall be allocated among
the Certificates (other than the Class PO Certificates), pro rata in accordance
with, and to the extent of one month's interest at the Pass-Through Rate on the
respective Certificate Principal Balance or Notional Amount of such Certificate
immediately prior to such Distribution Date.
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The aggregate amount of any Prepayment Interest Shortfalls (to the
extent not covered by payments by the Master Servicer or the Special Servicer
pursuant to Section 3.24) and any Relief Act Interest Shortfalls incurred in
respect of the Mortgage Loans for any Distribution Date shall be allocated among
the REMIC I Regular Interests (other than REMIC I Regular Interest I-LTPO1,
REMIC I Regular Interest I-LTPO2, REMIC I Regular Interest I-LTPO3 and REMIC I
Regular Interest I-LTPO4) on a pro rata basis based on their respective
Uncertificated Balances.
The aggregate amount of any Prepayment Interest Shortfalls (to the
extent not covered by payments by the Master Servicer or the Special Servicer
pursuant to Section 3.24) and any Relief Act Interest Shortfalls incurred in
respect of the Mortgage Loans for any Distribution Date shall be allocated among
the REMIC II Regular Interests (other than REMIC II Regular Interest II-LTPO1,
REMIC II Regular Interest II-LTPO2, REMIC II Regular Interest II-LTPO3 and REMIC
II Regular Interest II-LTPO4) on a pro rata basis based on their respective
Uncertificated Balances
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ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF CERTIFICATES
SECTION 2.01. Conveyance of Mortgage Loans.
The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee
without recourse for the benefit of the Certificateholders all the right, title
and interest of the Depositor, including any security interest therein for the
benefit of the Depositor, in and to the Mortgage Loans identified on the
Mortgage Loan Schedule, the rights of the Depositor under the Mortgage Loan
Purchase Agreement, and all other assets included or to be included in REMIC I.
Such assignment includes all interest and principal received by the Depositor or
the Master Servicer on or with respect to the Mortgage Loans (other than
payments of principal and interest due on such Mortgage Loans on or before the
Cut-off Date). The Depositor herewith delivers to the Trustee and the Special
Sub-Servicer an executed copy of the Mortgage Loan Purchase Agreement.
In connection with such transfer and assignment, the Depositor does
hereby deliver to, and deposit with, the Trustee, the following documents or
instruments with respect to each Mortgage Loan so transferred and assigned (a
"Mortgage File"):
(i) the original Mortgage Note, endorsed either (A) in blank or (B)
in the following form: "Pay to the order of U.S. Bank National
Association, as Trustee under the Pooling and Servicing Agreement, dated
as of August 1, 2004, among Citigroup Mortgage Loan Trust Inc., National
City Mortgage Co. and U.S. Bank National Association, without recourse,"
or with respect to any lost Mortgage Note, an original lost note affidavit
stating that the original Mortgage Note was lost, misplaced or destroyed,
together with a copy of the related Mortgage Note; provided, however, that
such substitutions of lost note affidavits for original Mortgage Notes may
occur only with respect to Mortgage Loans having a maximum aggregate
Scheduled Principal Balance of as of the Cut-off Date which is less than
or equal to 1.00% of the aggregate Scheduled Principal Balance of the
Mortgage Loans as of the Cut-off Date;
(ii) the original Mortgage, noting the presence of the MIN of the
Mortgage Loan and language indicating that the Mortgage Loan is a MOM Loan
if the Mortgage Loan is a MOM Loan, with evidence of recording thereon,
and the original recorded power of attorney, if the Mortgage was executed
pursuant to a power of attorney, with evidence of recording thereon or, if
such Mortgage or power of attorney has been submitted for recording but
has not been returned from the applicable public recording office, has
been lost or is not otherwise available, a copy of such Mortgage or power
of attorney, as the case may be, certified to be a true and complete copy
of the original submitted for recording;
(iii) unless the Mortgage Loan is registered on the MERS(R) System,
an original Assignment of Mortgage, in form and substance acceptable for
recording. The Mortgage shall be assigned either (A) in blank or (B) to "
U.S. Bank National Association, as Trustee
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under the Pooling and Servicing Agreement, dated as of August 1, 2004,
among Citigroup Mortgage Loan Trust Inc., National City Mortgage Co. and
U.S. Bank National Association, without recourse,"
(iv) an original or a certified copy of any intervening assignment
of Mortgage showing a complete chain of assignments from the originator to
the Person executing the Assignment of Mortgage (or to MERS, if the
Mortgage Loan is registered on the MERS(R) System and noting the presence
of the MIN) pursuant to clause (iii) above;
(v) the original lender's title insurance policy, together with all
endorsements or riders which were issued with or subsequent to the
issuance of such policy, insuring the priority of the Mortgage as a first
lien on the Mortgaged Property represented therein as a fee interest
vested in the Mortgagor, or in the event such original title policy is
unavailable, a written commitment or uniform binder or preliminary report
of title issued by the title insurance or escrow company or an attorney's
title opinion, if customary in the related jurisdiction where the
Mortgaged Property is located; and
(vi) the originals of all assumption, modification, consolidation or
extension agreements, if any.
With respect to a maximum of 1.0% of the Mortgage Loans, by
aggregate Scheduled Principal Balance of the Mortgage Loans as of the Cut-off
Date, if any original Mortgage Note referred to in clause (i) above cannot be
located, the obligations of the Depositor to deliver such documents shall be
deemed to be satisfied upon delivery to the Trustee of a photocopy of such
Mortgage Note, if available, with a lost note affidavit. If any of the original
Mortgage Notes for which a lost note affidavit was delivered to the Trustee is
subsequently located, such original Mortgage Note shall be delivered to the
Trustee within three Business Days.
If any of the documents referred to in clauses (ii), (iii) or (iv)
above has as of the Closing Date been submitted for recording but either (x) has
not been returned from the applicable public recording office or (y) has been
lost or such public recording office has retained the original of such document,
the obligations of the Depositor to deliver such documents shall be deemed to be
satisfied upon (1) delivery to the Trustee, no later than the Closing Date, of a
copy of each such document certified by the Seller in the case of (x) above or
the applicable public recording office in the case of (y) above to be a true and
complete copy of the original that was submitted for recording and (2) if such
copy is certified by the Seller, delivery to the Trustee, promptly upon receipt
thereof, of either the original or a copy of such document certified by the
applicable public recording office to be a true and complete copy of the
original. The Depositor shall deliver or cause to be delivered to the Trustee
promptly upon receipt thereof any other documents constituting a part of a
Mortgage File received with respect to any Mortgage Loan, including, but not
limited to, any original documents evidencing an assumption or modification of
any Mortgage Loan.
The Trustee shall enforce the obligations of the Seller under the
Mortgage Loan Purchase Agreement to cause all Assignments referred to in Section
2.01(iii) hereof and, to the extent necessary, in Section 2.01(iv) hereof to be
recorded at the Seller's expense. The Master Servicer in its capacity as Seller
shall furnish the Trustee, or its designated agent, with a copy of each
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Assignment submitted for recording. In the event that any such Assignment is
lost or returned unrecorded because of a defect therein, the Trustee shall cause
the Seller to promptly have a substitute Assignment prepared or have such defect
cured, as the case may be, and thereafter cause each such Assignment to be duly
recorded.
Without limiting the requirement that such Assignments be in
recordable form, the Trustee shall not be required to submit or cause to be
submitted for recording each Assignment delivered to it pursuant to Sections
2.01(iii) and (iv) if such recordation shall not, as of the Closing Date, be
required by the Rating Agencies, as a condition to their assignment on the
Closing Date of their initial ratings to the Certificates, as evidenced by the
delivery by the Rating Agencies of their ratings letters on the Closing Date;
provided, however, the Trustee shall enforce the obligation of the Seller under
the Mortgage Loan Purchase Agreement to submit each Assignment for recording, at
the Seller's expense, upon a Responsible Officer of the Trustee gaining actual
knowledge of the earliest to occur of: (i) direction by Holders of Certificates
entitled to at least 25% of the Voting Rights, (ii) the occurrence of a Master
Servicer Event of Default, (iii) the occurrence of a bankruptcy, insolvency or
foreclosure relating to the Seller, (iv) the occurrence of a servicing transfer
as described in Section 7.02 hereof, (v) with respect to any particular Mortgage
Loan, upon the occurrence of a bankruptcy, insolvency or foreclosure relating to
the Mortgagor under the related Mortgage or (vi) with respect to Specially
Serviced Mortgage Loans, upon the request of the Special Servicer. In connection
with clause (v) above, in the case of any Mortgage Loan that has defaulted, and
in connection with clause (vi) above, the Master Servicer in its capacity as
Seller or the Special Servicer (as applicable)shall submit such assignment for
recording upon such defaulted Mortgage Loan becoming 90 days or more Delinquent
or at such other time as the recordation of the Assignment of Mortgage relating
to such defaulted Mortgage Loan shall customarily be effected, in connection
with the foreclosure thereupon, by the Master Servicer or the Special Servicer,
as applicable, in accordance with the servicing standards set forth in this
Agreement. Notwithstanding the foregoing, if the Seller fails to pay the cost of
recording the Assignments, such expense will be paid by the Trustee and the
Trustee shall be reimbursed for such expenses as Extraordinary Trust Fund
Expenses.
In addition to the foregoing, the Depositor shall also deliver to
the Trustee a true and complete copy, certified as such by an officer of the
Seller, of each certificate or other evidence of merger or change of name, if
any of the Mortgage Loans were acquired by the Seller by merger or acquired or
originated by the Seller while conducting business under a name other than its
present name and such certificate or other evidence shall not have been recorded
in the public recording office where the related Mortgage is required to be
recorded
The Depositor shall deliver or cause to be delivered to the Trustee
promptly upon receipt thereof any other original documents constituting a part
of a Mortgage File received with respect to any Mortgage Loan, including, but
not limited to, any original documents evidencing an assumption, modification,
consolidation or extension of any Mortgage Loan.
In connection with the assignment of any Mortgage Loan registered on
the MERS(R) System, the Depositor further agrees that it will cause, within 30
Business Days after the Closing Date, the MERS(R) System to indicate that such
Mortgage Loans have been assigned by the Depositor to the Trustee in accordance
with this Agreement for the benefit of the Certificateholders by
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including (or deleting, in the case of Mortgage Loans which are repurchased in
accordance with this Agreement) in such computer files (a) the code in the field
which identifies the specific Trustee and (b) the code in the field "Pool Field"
which identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Depositor further agrees that it will not, and will not
permit the Master Servicer to, and the Master Servicer agrees that it will not,
alter the codes referenced in this paragraph with respect to any Mortgage Loan
during the term of this Agreement unless and until such Mortgage Loan is
repurchased in accordance with the terms of this Agreement.
All original documents relating to the Mortgage Loans that are not
delivered to the Trustee are and shall be held by or on behalf of the Seller,
the Depositor or the Master Servicer, as the case may be, in trust for the
benefit of the Trustee on behalf of the Certificateholders. In the event that
any such original document is required pursuant to the terms of this Section to
be a part of a Mortgage File, such document shall be delivered promptly to the
Trustee. Any such original document delivered to or held by the Depositor that
is not required pursuant to the terms of this Section to be a part of a Mortgage
File, shall be delivered promptly to the Master Servicer.
The parties hereto understand and agree that it is not intended that
any mortgage loan be included in the Trust that is either (i) a "High-Cost Home
Loan" as defined in the New Jersey Home Ownership Act effective November 27,
2003 or (ii) a "High-Cost Home Loan" as defined in the New Mexico Home Loan
Protection Act effective January 1, 2004.
SECTION 2.02. Acceptance of REMIC I by the Trustee.
Subject to the provisions of Section 2.01 and subject to the review
described below and any exceptions noted on the exception report described in
the second paragraph below, the Trustee acknowledges receipt of the documents
referred to in Section 2.01 above and all other assets included in the
definition of "REMIC I" and declares that it holds and will hold such documents
and the other documents delivered to it constituting a Mortgage File, and that
it holds or will hold all such assets and such other assets included in the
definition of "REMIC I" in trust for the exclusive use and benefit of all
present and future Certificateholders.
On or prior to the Closing Date, the Trustee agrees, for the benefit
of the Certificateholders, to execute and deliver to the Depositor and the
Master Servicer an acknowledgment of receipt of each Mortgage Note (with any
exceptions noted), substantially in the form attached as Exhibit C-3 hereto.
The Trustee agrees, for the benefit of the Certificateholders, to
review each Mortgage File within 90 days of the Closing Date (or, with respect
to any document delivered after the Startup Day, within 90 days of receipt and
with respect to any Qualified Substitute Mortgage, within 90 days after the
assignment thereof). The Trustee further agrees, for the benefit of the
Certificateholders, to certify in substantially the form attached hereto as
Exhibit C-1, within 90 days following the date on which the Trustee receives the
remaining contents of each Mortgage File from the Depositor, with respect to
each Mortgage Loan (or, with respect to any document delivered after the Startup
Day, within 90 days of receipt and with respect to any Qualified Substitute
Mortgage, within 90 days after the assignment thereof) that, as to each Mortgage
Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or any Mortgage Loan specifically identified in the exception
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report annexed thereto as not being covered by such certification), (i) all
documents required to be delivered to it pursuant Section 2.01 of this Agreement
are in its possession, (ii) such documents have been reviewed by it and have not
been mutilated, damaged or torn and relate to such Mortgage Loan and (iii) based
on its examination and only as to the foregoing, the information set forth in
the Mortgage Loan Schedule that corresponds to items (i), (iii) and (xiv) of the
Mortgage Loan Schedule accurately reflects information set forth in the Mortgage
File. It is herein acknowledged that, in conducting such review, the Trustee is
under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that they are genuine,
enforceable, or appropriate for the represented purpose or that they have
actually been recorded or that they are other than what they purport to be on
their face.
Prior to the first anniversary date of this Agreement the Trustee
shall deliver to the Depositor and the Master Servicer a final certification in
the form annexed hereto as Exhibit C-2 evidencing the completeness of the
Mortgage Files, with any applicable exceptions noted thereon.
If in the process of reviewing the Mortgage Files and making or
preparing, as the case may be, the certifications referred to above, the Trustee
finds any document or documents constituting a part of a Mortgage File to be
missing or defective in any material respect, at the conclusion of its review
the Trustee shall so notify the Depositor and the Master Servicer. In addition,
upon the discovery by the Depositor or the Master Servicer (or upon receipt by
the Trustee of written notification of such breach) of a breach of any of the
representations and warranties made by the Seller in the Mortgage Loan Purchase
Agreement in respect of any Mortgage Loan which materially adversely affects
such Mortgage Loan or the interests of the related Certificateholders in such
Mortgage Loan, the party discovering such breach shall give prompt written
notice to the other parties to this Agreement.
The Depositor and the Trustee intend that the assignment and
transfer herein contemplated constitute a sale of the Mortgage Loans, the
related Mortgage Notes and the related documents, conveying good title thereto
free and clear of any liens and encumbrances, from the Depositor to the Trustee
in trust for the benefit of the Certificateholders and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee a first
priority perfected security interest in all of the Depositor's right, title and
interest in and to the Mortgage Loans, the related Mortgage Notes and the
related documents, and that this Agreement shall constitute a security agreement
under applicable law.
SECTION 2.03. Repurchase or Substitution of Mortgage Loans by the
Seller.
(a) Upon discovery or receipt of notice of any materially defective
document in, or that a document is missing from, a Mortgage File or of the
breach by the Seller of any representation, warranty or covenant under the
Mortgage Loan Purchase Agreement in respect of any Mortgage Loan which
materially adversely affects the value of such Mortgage Loan or the interest
therein of the Certificateholders, the Trustee shall promptly notify the Seller
and the Master Servicer of such defect, missing document or breach and request
that the Seller deliver such missing document or cure such defect or breach
within 90 days from the date the Seller was notified of such
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missing document, defect or breach, and if the Seller does not deliver such
missing document or cure such defect or breach in all material respects during
such period, the Trustee shall enforce the obligations of the Seller under the
Mortgage Loan Purchase Agreement to repurchase such Mortgage Loan from REMIC I
at the Purchase Price within 90 days after the date on which the Seller was
notified (subject to Section 2.03(e)) of such missing document, defect or
breach, if and to the extent that the Seller is obligated to do so under the
Mortgage Loan Purchase Agreement. The Purchase Price for the repurchased
Mortgage Loan shall be remitted by the Seller to the Master Servicer for deposit
into the Collection Account, and the Trustee, upon receipt of written
certification from the Master Servicer of such deposit, shall release to the
Seller the related Mortgage File and shall execute and deliver such instruments
of transfer or assignment, in each case without recourse, as the Seller shall
furnish to it and as shall be necessary to vest in the Seller any Mortgage Loan
released pursuant hereto, and the Trustee shall have no further responsibility
with regard to such Mortgage File. In furtherance of the foregoing, if the
Seller is not a member of MERS and repurchases a Mortgage Loan which is
registered on the MERS(R) System, the Seller at its own expense and without any
right of reimbursement, shall cause MERS to execute and deliver an assignment of
the Mortgage in recordable form to transfer the Mortgage from MERS to the Seller
and shall cause such Mortgage to be removed from registration on the MERS(R)
System in accordance with MERS' rules and regulations. In lieu of repurchasing
any such Mortgage Loan as provided above, if so provided in the Mortgage Loan
Purchase Agreement, the Seller may cause such Mortgage Loan to be removed from
REMIC I (in which case it shall become a Deleted Mortgage Loan) and substitute
one or more Qualified Substitute Mortgage Loans in the manner and subject to the
limitations set forth in Section 2.03(d). It is understood and agreed that the
obligation of the Seller to cure or to repurchase (or to substitute for) any
Mortgage Loan as to which a document is missing, a material defect in a
constituent document exists or as to which such a breach has occurred and is
continuing shall constitute the sole remedy respecting such omission, defect or
breach available to the Trustee on behalf of the Certificateholders.
(b) [Reserved];
(c) Within 90 days of the earlier of discovery by the Master
Servicer or receipt of notice by the Master Servicer of the breach of any
representation, warranty or covenant of the Master Servicer set forth in Section
2.05 which materially and adversely affects the interests of the
Certificateholders in any Mortgage Loan, the Master Servicer shall cure such
breach in all material respects.
(d) Any substitution of Qualified Substitute Mortgage Loans for
Deleted Mortgage Loans made pursuant to Section 2.03(a) must be effected prior
to the date which is two years after the Startup Day for REMIC I.
As to any Deleted Mortgage Loan for which the Seller substitutes a
Qualified Substitute Mortgage Loan or Loans, such substitution shall be effected
by the Seller delivering to the Trustee, for such Qualified Substitute Mortgage
Loan or Loans, the Mortgage Note, the Mortgage, the Assignment to the Trustee,
and such other documents and agreements, with all necessary endorsements
thereon, as are required by Section 2.01, together with an Officers' Certificate
providing that each such Qualified Substitute Mortgage Loan satisfies the
definition thereof and specifying the Substitution Shortfall Amount (as
described below), if any, in connection
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with such substitution. The Trustee shall acknowledge receipt for such Qualified
Substitute Mortgage Loan or Loans and shall thereafter, review such documents
within the time periods and in the manner specified in Section 2.02 and deliver
the applicable certifications, with any applicable exceptions noted thereon,
within the time periods and in the manner specified in Section 2.02. Monthly
Payments due with respect to Qualified Substitute Mortgage Loans in the month of
substitution are not part of the Trust Fund and will be retained by the Seller.
For the month of substitution, distributions to Certificateholders will reflect
the Monthly Payment due on such Deleted Mortgage Loan on or before the Due Date
in the month of substitution, and the Seller shall thereafter be entitled to
retain all amounts subsequently received in respect of such Deleted Mortgage
Loan. The Trustee shall give or cause to be given written notice to the
Certificateholders that such substitution has taken place, and the Master
Servicer shall amend the Mortgage Loan Schedule to reflect the removal of such
Deleted Mortgage Loan from the terms of this Agreement and the substitution of
the Qualified Substitute Mortgage Loan or Loans and shall deliver a copy of such
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, such
Qualified Substitute Mortgage Loan or Loans shall constitute part of the
Mortgage Pool and shall be subject in all respects to the terms of this
Agreement and the Mortgage Loan Purchase Agreement, including all applicable
representations and warranties thereof included in the Mortgage Loan Purchase
Agreement, in each case as of the date of substitution.
For any month in which the Seller substitutes one or more Qualified
Substitute Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (the "Substitution Shortfall Amount"), if
any, by which the aggregate Purchase Price of all such Deleted Mortgage Loans
exceeds the aggregate of, as to each such Qualified Substitute Mortgage Loan,
the Scheduled Principal Balance thereof as of the date of substitution, together
with one month's interest on such Scheduled Principal Balance at the applicable
Net Mortgage Rate. On the date of such substitution, the Seller will deliver or
cause to be delivered to the Master Servicer for deposit in the Collection
Account an amount equal to the Substitution Shortfall Amount, if any, and the
Trustee, upon receipt of the related Qualified Substitute Mortgage Loan or Loans
and certification by the Master Servicer of such deposit, shall release to the
Seller the related Mortgage File or Files and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as the
Seller shall deliver to it and as shall be necessary to vest therein any Deleted
Mortgage Loan released pursuant hereto.
In addition, the Seller shall obtain at its own expense and deliver
to the Trustee an Opinion of Counsel to the effect that such substitution will
not cause (a) any federal tax to be imposed on REMIC I, including without
limitation, any federal tax imposed on "prohibited transactions" under Section
860F(a)(1) of the Code or on "contributions after the startup date" under
Section 860G(d)(1) of the Code, or (b) REMIC I to fail to qualify as a REMIC at
any time that any Certificate is outstanding.
(e) Upon discovery by the Depositor, the Master Servicer or the
Trustee that any Mortgage Loan does not constitute a "qualified mortgage" within
the meaning of Section 860G(a)(3) of the Code, the party discovering such fact
shall within two Business Days give written notice thereof to the other parties.
In connection therewith, the Seller or the Depositor shall repurchase or,
subject to the limitations set forth in Section 2.03(d), substitute one or more
Qualified Substitute Mortgage Loans for the affected Mortgage Loan within 90
days of the earlier of discovery or receipt
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of such notice with respect to such affected Mortgage Loan. Such repurchase or
substitution shall be made by (i) the Seller, if the affected Mortgage Loan's
status as a non-qualified mortgage is or results from a breach of any
representation, warranty or covenant made by the Seller under the Mortgage Loan
Purchase Agreement, or (ii) the Depositor, if the affected Mortgage Loan's
status as a non-qualified mortgage is a breach of no representation or warranty.
Any such repurchase or substitution shall be made in the same manner as set
forth in Sections 2.03(a). The Trustee shall reconvey to the Depositor or the
Seller, as the case may be, the Mortgage Loan to be released pursuant hereto in
the same manner, and on the same terms and conditions, as it would a Mortgage
Loan repurchased by the Seller for breach of a representation or warranty.
SECTION 2.04. [Reserved].
SECTION 2.05. Representations, Warranties and Covenants of the
Master Servicer.
The Master Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee and the Certificateholders, and
to the Depositor that as of the Closing Date or as of such date specifically
provided herein:
(i) The Master Servicer is a corporation duly organized,
validly existing and in good standing under the laws of the State of
Ohio and is duly authorized and qualified to transact any and all
business contemplated by this Agreement to be conducted by the
Master Servicer in any state in which a Mortgaged Property is
located or is otherwise not required under applicable law to effect
such qualification and, in any event, is in compliance with the
doing business laws of any such State, to the extent necessary to
ensure its ability to enforce each Mortgage Loan and to service the
Mortgage Loans in accordance with the terms of this Agreement;
(ii) The Master Servicer has the full corporate power and
authority to service each Mortgage Loan, and to execute, deliver and
perform, and to enter into and consummate the transactions
contemplated by this Agreement and has duly authorized by all
necessary corporate action on the part of the Master Servicer the
execution, delivery and performance of this Agreement; and this
Agreement, assuming the due authorization, execution and delivery
thereof by the other parties hereto, constitutes a legal, valid and
binding obligation of the Master Servicer, enforceable against the
Master Servicer in accordance with its terms, except to the extent
that (a) the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws relating
to creditors' rights generally and (b) the remedy of specific
performance and injunctive and other forms of equitable relief may
be subject to the equitable defenses and to the discretion of the
court before which any proceeding therefor may be brought;
(iii) The execution and delivery of this Agreement by the
Master Servicer, the servicing of the Mortgage Loans by the Master
Servicer hereunder, the consummation of any other of the
transactions herein contemplated, and the fulfillment of or
compliance with the terms hereof are in the ordinary course of
business of the Master Servicer and will not (A) result in a breach
of any term or provision of the charter or by-laws of the Master
Servicer
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or (B) conflict with, result in a breach, violation or acceleration
of, or result in a default under, the terms of any other material
agreement or instrument to which the Master Servicer is a party or
by which it may be bound, or any statute, order or regulation
applicable to the Master Servicer of any court, regulatory body,
administrative agency or governmental body having jurisdiction over
the Master Servicer; and the Master Servicer is not a party to,
bound by, or in breach or violation of any indenture or other
agreement or instrument, or subject to or in violation of any
statute, order or regulation of any court, regulatory body,
administrative agency or governmental body having jurisdiction over
it, which materially and adversely affects or, to the Master
Servicer's knowledge, would in the future materially and adversely
affect, (x) the ability of the Master Servicer to perform its
obligations under this Agreement or (y) the business, operations,
financial condition, properties or assets of the Master Servicer
taken as a whole;
(iv) The Master Servicer is an approved seller/servicer for
Xxxxxx Xxx or Xxxxxxx Mac in good standing and is a HUD approved
mortgagee pursuant to Section 203 of the National Housing Act;
(v) No litigation is pending against the Master Servicer that
would materially and adversely affect the execution, delivery or
enforceability of this Agreement or the ability of the Master
Servicer to service the Mortgage Loans or to perform any of its
other obligations hereunder in accordance with the terms hereof;
(vi) No consent, approval, authorization or order of any court
or governmental agency or body is required for the execution,
delivery and performance by the Master Servicer of, or compliance by
the Master Servicer with, this Agreement or the consummation of the
transactions contemplated by this Agreement, except for such
consents, approvals, authorizations or orders, if any, that have
been obtained prior to the Closing Date;
(vii) The Master Servicer covenants that its computer and
other systems used in servicing the Mortgage Loans operate in a
manner such that the Master Servicer can service the Mortgage Loans
in accordance with the terms of this Agreement; and
(viii)The Master Servicer is a member of MERS in good
standing, and will comply in all material respects with the rules
and procedures of MERS in connection with the servicing of the
Mortgage Loans that are registered with MERS.
It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.05 shall survive delivery of the Mortgage
Files to the Trustee and shall inure to the benefit of the Trustee, the
Depositor and the Certificateholders. Upon discovery by any of the Depositor,
the Master Servicer or the Trustee of a breach of any of the foregoing
representations, warranties and covenants which materially and adversely affects
the value of any Mortgage Loan or the interests therein of the
Certificateholders, the party discovering such breach shall give prompt written
notice (but in no event later than two Business Days following such discovery)
to the Trustee.
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SECTION 2.06. Issuance of Class R-I Interest and REMIC I Regular
Interests, Class R-II Interest and REMIC II Regular
Interests.
The Trustee acknowledges the assignment to it of the Mortgage Loans
and the delivery to it of the Mortgage Files, subject to the provisions of
Section 2.01 and Section 2.02, together with the assignment to it of all other
assets included in REMIC I delivered on the date hereof, receipt of which is
hereby acknowledged. The interests evidenced by the Class R-I Interest, together
with the REMIC I Regular Interests, constitute the entire beneficial ownership
interest in REMIC I.
The Trustee acknowledges the assignment to it of the REMIC I Regular
Interests, receipt of which is hereby acknowledged. The interests evidenced by
the Class R-II Interest, together with the REMIC II Regular Interests,
constitute the entire beneficial ownership interest in REMIC II.
SECTION 2.07. Conveyance of REMIC II Regular Interests; Acceptance
of REMIC III by the Trustee.
The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee
without recourse all the right, title and interest of the Depositor in and to
the REMIC II Regular Interests for the benefit of the Certificateholders. The
Trustee acknowledges receipt of the REMIC II Regular Interests and declares that
it holds and will hold the same in trust for the exclusive use and benefit of
all present and future Certificateholders. The rights of the Certificateholders
to receive distributions from the proceeds of REMIC III in respect of the
Certificates, and all ownership interests of the Certificateholders in and to
such distributions, shall be as set forth in this Agreement.
SECTION 2.08. Issuance of Certificates.
The Trustee acknowledges the assignment to it of the REMIC I Regular
Interests and REMIC II Regular Interests and, concurrently therewith and in
exchange therefor, pursuant to the written request of the Depositor executed by
an officer of the Depositor, the Trustee has executed, authenticated and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing the entire beneficial ownership interest in REMIC III.
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ARTICLE III
ADMINISTRATION AND SERVICINGOF THE MORTGAGE LOANS
SECTION 3.01. Master Servicer to Act as Master Servicer.
The Master Servicer shall service and administer the Mortgage Loans
on behalf of the Trustee and in the best interests of and for the benefit of the
Certificateholders (as determined by the Master Servicer in its reasonable
judgment) in accordance with the terms of this Agreement and the respective
Mortgage Loans and, to the extent consistent with such terms, in the same manner
in which it services and administers similar mortgage loans for its own
portfolio, giving due consideration to customary and usual standards of practice
of prudent mortgage lenders or loan servicers administering similar mortgage
loans until the Mortgage Loan becomes a Specially Serviced Mortgage Loan, and
then following the Loss Mitigation Procedures with respect to Mortgage Loans
which are not Specially Serviced Mortgaged Loans but, in each case, without
regard to:
(i) any relationship that the Master Servicer, any
Sub-Servicer or any Affiliate of the Master Servicer or any
Sub-Servicer may have with the related Mortgagor;
(ii) the ownership of any Certificate by the Master Servicer
or any Affiliate of the Master Servicer;
(iii) the Master Servicer's obligation to make P&I Advances or
Servicing Advances; or
(iv) the Master Servicer's or any Sub-Servicer's right to
receive compensation for its services hereunder or with respect to
any particular transaction.
To the extent consistent with the foregoing, the Master Servicer
shall also seek to maximize the timely and complete recovery of principal and
interest on the Mortgage Notes. Subject only to the above-described servicing
standards and the terms of this Agreement and of the respective Mortgage Loans,
the Master Servicer shall have full power and authority, acting alone or through
Sub-Servicers as provided in Section 3.02, to do or cause to be done any and all
things in connection with such servicing and administration which it may deem
necessary or desirable. Without limiting the generality of the foregoing, the
Master Servicer in its own name or in the name of a Sub-Servicer is hereby
authorized and empowered by the Trustee when the Master Servicer believes it
appropriate in its best judgment in accordance with the servicing standards set
forth above, to execute and deliver, on behalf of the Certificateholders and the
Trustee, and upon notice to the Trustee, any and all instruments of satisfaction
or cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the Mortgage Loans and the Mortgaged
Properties and to institute foreclosure proceedings or obtain a deed-in-lieu of
foreclosure so as to convert the ownership of such properties, and to hold or
cause to be held title to such properties, on behalf of the Trustee and
Certificateholders. The Master Servicer shall service and administer the
Mortgage Loans in accordance with applicable state and federal law and shall
provide
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to the Mortgagors any reports required to be provided to them thereby. The
Master Servicer shall also comply in the performance of this Agreement with all
reasonable rules and requirements of each insurer under each Primary Mortgage
Insurance Policy and any standard hazard insurance policy. Subject to Section
3.17, the Trustee shall execute, at the written request of the Master Servicer,
and furnish to the Master Servicer and any Sub-Servicer such documents as are
necessary or appropriate to enable the Master Servicer or any Sub-Servicer to
carry out their servicing and administrative duties hereunder, and the Trustee
hereby grants to the Master Servicer a power of attorney in the form of Exhibit
L attached hereto to carry out such duties. The Trustee shall deliver such power
of attorney in the form of Exhibit L to the Special Servicer for each Specially
Serviced Mortgage Loan at the time the Mortgage Loan becomes a Specially
Serviced Mortgage Loan. The Trustee shall not be liable for the actions of the
Master Servicer, the Special Servicer or any Sub-Servicers under such powers of
attorney.
In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the timely payment of taxes and assessments on the
Mortgaged Properties, which advances shall be Servicing Advances reimbursable in
the first instance from related collections from the Mortgagors pursuant to
Section 3.09, and further as provided in Section 3.11. Any cost incurred by the
Master Servicer or by Sub-Servicers in effecting the timely payment of taxes and
assessments on a Mortgaged Property shall not, for the purpose of calculating
distributions to Certificateholders, be added to the unpaid principal balance of
the related Mortgage Loan, notwithstanding that the terms of such Mortgage Loan
so permit.
The Master Servicer further is authorized and empowered, on behalf
of the Certificateholders and the Trustee, in its own name or in the name of the
Sub-Servicer, when the Master Servicer or the Sub-Servicer, as the case may be,
believes it is appropriate in its best judgment to register any Mortgage Loan on
the MERS(R) System, or cause the removal from the registration of any Mortgage
Loan on the MERS(R) System, to execute and deliver, on behalf of the Trustee and
the Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. Any reasonable expenses incurred in connection with the
actions described in the preceding sentence or as a result of MERS discontinuing
or becoming unable to continue operations in connection with the MERS(R) System,
shall be subject to withdrawal by the Master Servicer, or the Special Servicer,
as the case may be, from the Collection Account.
Notwithstanding anything in this Agreement to the contrary, the
Master Servicer may not make any future advances with respect to a Mortgage Loan
(except as provided in Section 4.03) and the Master Servicer shall not permit
any modification, waiver or amendment of any term of any Mortgage Loan, unless
(i) the Master Servicer provides an Opinion of Counsel that such action will not
both (A) effect an exchange or reissuance of such Mortgage Loan under Section
1001 of the Code (or final, temporary or proposed Treasury regulations
promulgated thereunder) and (B) cause REMIC I to fail to qualify as a REMIC
under the Code or the imposition of any tax on "prohibited transactions" or
"contributions after the startup date" under the REMIC Provisions or (ii) such
modification, waiver or amendment is made in accordance with the terms of
Section 3.07.
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The Master Servicer may delegate its responsibilities under this
Agreement; provided, however, that no such delegation shall release the Master
Servicer from the responsibilities or liabilities arising under this Agreement.
SECTION 3.02. Sub-Servicing Agreements Between the Master Servicer
and Sub-Servicers.
(a) The Master Servicer may enter into Sub-Servicing Agreements
(provided that such agreements would not result in a withdrawal or a downgrading
by the Rating Agency of the rating on any Class of Certificates) with
Sub-Servicers, for the servicing and administration of the Mortgage Loans.
Each Sub-Servicer shall be (i) authorized to transact business in
the state or states in which the related Mortgaged Properties it is to service
are situated, if and to the extent required by applicable law to enable the
Sub-Servicer to perform its obligations hereunder and under the Sub-Servicing
Agreement, (ii) an institution approved as a mortgage loan originator by the
Federal Housing Administration or an institution the deposit accounts of which
are insured by the FDIC and (iii) a Xxxxxxx Mac or Xxxxxx Mae approved mortgage
servicer. Each Sub-Servicing Agreement must impose on the Sub-Servicer
requirements conforming to the provisions set forth in Section 3.08 and provide
for servicing of the Mortgage Loans consistent with the terms of this Agreement.
The Master Servicer will examine each Sub-Servicing Agreement and will be
familiar with the terms thereof. The terms of any Sub-Servicing Agreement will
not be inconsistent with any of the provisions of this Agreement. The Master
Servicer and the Sub-Servicers may enter into and make amendments to the
Sub-Servicing Agreements or enter into different forms of Sub-Servicing
Agreements; provided, however, that any such amendments or different forms shall
be consistent with and not violate the provisions of this Agreement, and that no
such amendment or different form shall be made or entered into which could be
reasonably expected to be materially adverse to the interests of the
Certificateholders, without the consent of the Holders of Certificates entitled
to at least 66% of the Voting Rights. Any variation without the consent of the
Holders of Certificates entitled to at least 66% of the Voting Rights from the
provisions set forth in Section 3.08 relating to insurance or priority
requirements of Sub-Servicing Accounts, or credits and charges to the
Sub-Servicing Accounts or the timing and amount of remittances by the
Sub-Servicers to the Master Servicer, are conclusively deemed to be inconsistent
with this Agreement and therefore prohibited. The Master Servicer shall deliver
to the Trustee copies of all Sub-Servicing Agreements, and any amendments or
modifications thereof, promptly upon the Master Servicer's execution and
delivery of such instruments.
(b) As part of its servicing activities hereunder, the Master
Servicer (except as otherwise provided in the last sentence of this paragraph),
for the benefit of the Trustee and the Certificateholders, shall enforce the
obligations of each Sub-Servicer under the related Sub-Servicing Agreement,
including, without limitation, any obligation to make advances in respect of
delinquent payments as required by a Sub-Servicing Agreement. Such enforcement,
including, without limitation, the legal prosecution of claims, termination of
Sub-Servicing Agreements, and the pursuit of other appropriate remedies, shall
be in such form and carried out to such an extent and at such time as the Master
Servicer, in its good faith business judgment, would require were it the owner
of the related Mortgage Loans. The Master Servicer shall pay the costs of such
enforcement at its own
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expense, and shall be reimbursed therefor only (i) from a general recovery
resulting from such enforcement, to the extent, if any, that such recovery
exceeds all amounts due in respect of the related Mortgage Loans, or (ii) from a
specific recovery of costs, expenses or attorneys' fees against the party
against whom such enforcement is directed.
(c) The parties hereto acknowledge that the Special Servicer has
been retained by the Master Servicer to service the Specially Serviced Mortgage
Loans pursuant to the Special Servicing Agreement. As compensation for its
services, the Special Servicer will be paid the Servicing Fee with respect to
each Specially Serviced Mortgage Loan. Notwithstanding anything in this Section
3.02 to the contrary, the conditions governing the termination of the Special
Servicer shall be set forth in the Special Servicing Agreement. In the event
that Xxxxxx Loan Servicing LP is no longer the Special Servicer, and no other
Special Servicer is appointed pursuant to the Special Servicing Agreement, the
Master Servicer will serve in such capacity.
SECTION 3.03. Successor Sub-Servicers.
The Master Servicer shall be entitled to terminate any Sub-Servicing
Agreement and the rights and obligations of any Sub-Servicer pursuant to any
Sub-Servicing Agreement in accordance with the terms and conditions of such
Sub-Servicing Agreement. In the event of termination of any Sub-Servicer, all
servicing obligations of such Sub-Servicer shall be assumed simultaneously by
the Master Servicer without any act or deed on the part of such Sub-Servicer or
the Master Servicer, and the Master Servicer either shall service directly the
related Mortgage Loans or shall enter into a Sub-Servicing Agreement with a
successor Sub-Servicer which qualifies under Section 3.02.
Except for the Special Servicing Agreement, any Sub-Servicing
Agreement shall include the provision that such agreement may be immediately
terminated by the Trustee without fee, in accordance with the terms of this
Agreement, in the event that the Master Servicer shall, for any reason, no
longer be the Master Servicer (including termination due to a Master Servicer
Event of Default).
SECTION 3.04. Liability of the Master Servicer.
Notwithstanding any Sub-Servicing Agreement, any of the provisions
of this Agreement relating to agreements or arrangements between the Master
Servicer and a Sub-Servicer or reference to actions taken through a Sub-Servicer
or otherwise, the Master Servicer shall remain obligated and primarily liable to
the Trustee and the Certificateholders for the servicing and administering of
the Mortgage Loans in accordance with the provisions of Section 3.01 without
diminution of such obligation or liability by virtue of such Sub-Servicing
Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
and to the same extent and under the same terms and conditions as if the Master
Servicer alone were servicing and administering the Mortgage Loans.
Notwithstanding the foregoing, the Special Servicing Agreement shall require
that the Special Servicer be primarily obligated and liable to the Trustee and
the Certificateholders for the servicing and administering of the Specially
Serviced Mortgage Loans and the Master Servicer shall have no responsibility or
liability therefor. The Master Servicer shall be entitled to enter into
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any agreement with a Sub-Servicer for indemnification of the Master Servicer by
such Sub-Servicer and nothing contained in this Agreement shall be deemed to
limit or modify such indemnification.
SECTION 3.05. No Contractual Relationship Between Sub-Servicers and
Trustee or Certificateholders.
Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Master Servicer alone, and the Trustee and Certificateholders shall not be
deemed parties thereto and shall have no claims, rights, obligations, duties or
liabilities with respect to the Sub-Servicer except as set forth in Section
3.06. The Master Servicer shall be solely liable for all fees owed by it to any
Sub-Servicer, irrespective of whether the Master Servicer's compensation
pursuant to this Agreement is sufficient to pay such fees.
SECTION 3.06. Assumption or Termination of Sub-Servicing Agreements
by Trustee.
In the event the Master Servicer shall for any reason no longer be
the master servicer (including by reason of the occurrence of a Master Servicer
Event of Default), the Trustee or its designee shall thereupon assume all of the
rights and obligations of the Master Servicer under each Sub-Servicing Agreement
that the Master Servicer may have entered into, unless the Trustee elects to
terminate any Sub-Servicing Agreement in accordance with its terms as provided
in Section 3.03. Upon such assumption, the Trustee, its designee or the
successor servicer for the Trustee appointed pursuant to Section 7.02 shall be
deemed, subject to Section 3.03, to have assumed all of the Master Servicer's
interest therein and to have replaced the Master Servicer as a party to each
Sub-Servicing Agreement to the same extent as if each Sub-Servicing Agreement
had been assigned to the assuming party, except that (i) the Master Servicer
shall not thereby be relieved of any liability or obligations under any
Sub-Servicing Agreement and (ii) none of the Trustee, its designee or any
successor Master Servicer shall be deemed to have assumed any liability or
obligation of the Master Servicer that arose before it ceased to be the Master
Servicer.
The Master Servicer at its expense shall, upon request of the
Trustee, deliver to the assuming party all documents and records relating to
each Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Sub-Servicing Agreements to the assuming party.
SECTION 3.07. Collection of Certain Mortgage Loan Payments.
The Master Servicer shall make reasonable efforts to collect all
payments called for under the terms and provisions of the Mortgage Loans, and
shall, to the extent such procedures shall be consistent with this Agreement,
the terms and provisions of any related Primary Mortgage Insurance Policy and
any applicable insurance policies, follow such collection procedures as it would
follow with respect to mortgage loans comparable to the Mortgage Loans and held
for its own account. Consistent with the foregoing, the Master Servicer may in
its discretion (i) waive any late payment charge or, if applicable, penalty
interest, only upon determining that the coverage of such
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Mortgage Loan by the related Primary Mortgage Insurance Policy, if any, will not
be affected, or (ii) extend the due dates for Monthly Payments due on a Mortgage
Note for a period of not greater than 180 days; provided that any extension
pursuant to clause (ii) above shall not affect the amortization schedule of any
Mortgage Loan for purposes of any computation hereunder, except as provided
below. In the event of any such arrangement pursuant to clause (ii) above, the
Master Servicer shall make timely advances on such Mortgage Loan during such
extension pursuant to Section 4.03 and in accordance with the amortization
schedule of such Mortgage Loan without modification thereof by reason of such
arrangements. Notwithstanding the foregoing, in the event that any Mortgage Loan
is in default or, in the judgment of the Master Servicer, such default is
reasonably foreseeable, the Master Servicer, consistent with the standards set
forth in Section 3.01, may also accept payment from the related Mortgagor of an
amount less than the Stated Principal Balance in final satisfaction of such
Mortgage Loan (such payment, a "Short Pay-off") or consent to the postponement
of strict compliance with any such term or otherwise grant indulgence to any
Mortgagor; provided, however, that in determining which course of action
permitted by this sentence it shall pursue, the Master Servicer shall adhere to
the Loss Mitigation Procedures. The Master Servicer's analysis supporting any
forbearance and the conclusion that any forbearance meets the standards of
Section 3.01 shall be reflected in writing in the Mortgage File.
SECTION 3.08. Sub-Servicing Accounts.
In those cases where a Sub-Servicer is servicing a Mortgage Loan
pursuant to a Sub-Servicing Agreement, the Sub-Servicer will be required to
establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account and shall
comply with all requirements of this Agreement relating to the Collection
Account. The Sub-Servicer shall deposit in the clearing account (which account
must be an Eligible Account) in which it customarily deposits payments and
collections on mortgage loans in connection with its mortgage loan servicing
activities on a daily basis, and in no event more than two Business Days after
the Sub-Servicer's receipt thereof, all proceeds of Mortgage Loans received by
the Sub-Servicer less its servicing compensation to the extent permitted by the
Sub-Servicing Agreement, and shall thereafter deposit such amounts in the
Sub-Servicing Account, in no event more than one Business Day after the deposit
of such funds into the clearing account. The Sub-Servicer shall thereafter
deposit such proceeds in the Collection Account or remit such proceeds to the
Master Servicer for deposit in the Collection Account not later than two
Business Days after the deposit of such amounts in the Sub-Servicing Account.
For purposes of this Agreement, the Master Servicer shall be deemed to have
received payments on the Mortgage Loans when the Sub-Servicer receives such
payments.
SECTION 3.09. Collection of Taxes, Assessments and Similar Items;
Servicing Accounts.
The Master Servicer shall establish and maintain one or more
accounts (the "Servicing Accounts"), into which all collections from the
Mortgagors (or related advances from Sub-Servicers) for the payment of ground
rents, taxes, assessments, primary mortgage insurance premiums, fire and hazard
insurance premiums, water charges, sewer rents and comparable items for the
account of the Mortgagors ("Escrow Payments") shall be deposited and retained.
Servicing Accounts shall be Eligible Accounts. The Master Servicer shall deposit
in the clearing account
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(which account must be an Eligible Account) in which it customarily deposits
payments and collections on mortgage loans in connection with its mortgage loan
servicing activities on a daily basis, and in no event more than two Business
Days after the Master Servicer's receipt thereof, all Escrow Payments collected
on account of the Mortgage Loans and shall thereafter deposit such Escrow
Payments in the Servicing Accounts, in no event more than one Business Day after
the deposit of such funds in the clearing account, for the purpose of effecting
the payment of any such items as required under the terms of this Agreement.
Withdrawals of amounts from a Servicing Account may be made only to (i) effect
payment of Escrow Payments; (ii) reimburse the Master Servicer (or a
Sub-Servicer to the extent provided in the related Sub-Servicing Agreement) out
of related collections for any advances made pursuant to Section 3.01 (with
respect to taxes and assessments) and Section 3.14 (with respect to hazard
insurance); (iii) refund to Mortgagors any sums as may be determined to be
overages; (iv) pay interest, if required and as described below, to Mortgagors
on balances in the Servicing Account; (v) clear and terminate the Servicing
Account at the termination of the Master Servicer's obligations and
responsibilities in respect of the Mortgage Loans under this Agreement in
accordance with Article IX; or (vi) recover amounts deposited in error. As part
of its servicing duties, the Master Servicer or Sub-Servicers shall pay to the
Mortgagors interest on funds in Servicing Accounts, to the extent required by
law and, to the extent that interest earned on funds in the Servicing Accounts
is insufficient, to pay such interest from its or their own funds, without any
reimbursement therefor. To the extent that a Mortgage does not provide for
Escrow Payments, the Master Servicer shall determine whether any such payments
are made by the Mortgagor in a manner and at a time that avoids the loss of the
Mortgaged Property due to a tax sale or the foreclosure of a tax lien. The
Master Servicer assumes full responsibility for the payment of all such bills
and shall effect payments of all such bills irrespective of the Mortgagor's
faithful performance in the payment of same or the making of the Escrow Payments
and shall make advances from its own funds to effect such payments.
SECTION 3.10. Collection Account and Distribution Account.
(a) On behalf of the Trust Fund, the Master Servicer shall establish
and maintain one or more accounts (such account or accounts, the "Collection
Account"), held in trust for the benefit of the Trustee and the
Certificateholders. On behalf of the Trust Fund, the Master Servicer shall
deposit or cause to be deposited in the clearing account (which account must be
an Eligible Account) in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than two Business Days after the Master
Servicer's receipt thereof, and shall thereafter deposit in the Collection
Account, in no event more than one Business Day after the deposit of such funds
into the clearing account, as and when received or as otherwise required
hereunder, the following payments and collections received or made by it from
and after the Cut-off Date (other than in respect of principal or interest on
the related Mortgage Loans due on or before the Cut-off Date), or payments
(other than Principal Prepayments) received by it on or prior to the Cut-off
Date but allocable to a Due Period subsequent thereto:
(i) all payments on account of principal, including Principal
Prepayments, on the Mortgage Loans;
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(ii) all payments on account of interest (net of the related
Servicing Fee) on each Mortgage Loan;
(iii) all Insurance Proceeds and Liquidation Proceeds (other
than proceeds collected in respect of any particular REO Property
and amounts paid by the Master Servicer in connection with a
purchase of Mortgage Loans and REO Properties pursuant to Section
9.01);
(iv) any amounts required to be deposited pursuant to Section
3.12 in connection with any losses realized on Permitted Investments
with respect to funds held in the Collection Account;
(v) any amounts required to be deposited by the Master
Servicer pursuant to the second paragraph of Section 3.14(a) in
respect of any blanket policy deductibles;
(vi) all proceeds of any Mortgage Loan repurchased or
purchased in accordance with Section 2.03 or Section 9.01; and
(vii) all amounts required to be deposited in connection with
shortfalls in principal amount of Qualified Substitute Mortgage
Loans pursuant to Section 2.03.
For purposes of the immediately preceding sentence, the Cut-off Date
with respect to any Qualified Substitute Mortgage Loan shall be deemed to be the
date of substitution.
The foregoing requirements for deposit in the Collection Accounts
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of late payment charges or
assumption fees need not be deposited by the Master Servicer in the Collection
Account. In the event the Master Servicer shall deposit in the Collection
Account any amount not required to be deposited therein, it may at any time
withdraw such amount from the Collection Account, any provision herein to the
contrary notwithstanding.
(b) On behalf of the Trust Fund, the Trustee shall establish and
maintain one or more accounts (such account or accounts, the "Distribution
Account"), held in trust for the benefit of the Certificateholders. On behalf of
the Trust Fund, the Master Servicer shall deliver to the Trustee in immediately
available funds for deposit in the Distribution Account on or before 12:00 p.m.
New York time (i) on the Master Servicer Remittance Date, that portion of the
Available Distribution Amount (calculated without regard to the references in
clause (2) of the definition thereof to amounts that may be withdrawn from the
Distribution Account) for the related Distribution Date then on deposit in the
Collection Account and the amount of any funds reimbursable to an Advancing
Person pursuant to Section 3.26, and (ii) on each Business Day as of the
commencement of which the balance on deposit in the Collection Account exceeds
$75,000 following any withdrawals pursuant to the next succeeding sentence, the
amount of such excess, but only if the Collection Account constitutes an
Eligible Account solely pursuant to clause (ii) of the definition of "Eligible
Account."
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If the balance on deposit in the Collection Account exceeds $75,000 as of the
commencement of business on any Business Day and the Collection Account
constitutes an Eligible Account solely pursuant to clause (ii) of the definition
of "Eligible Account," the Master Servicer shall, on or before 3:00 p.m. New
York time on such Business Day, withdraw from the Collection Account any and all
amounts payable or reimbursable to the Depositor, the Master Servicer, the
Trustee, the Seller or any Sub-Servicer pursuant to Section 3.11 and shall pay
such amounts to the Persons entitled thereto.
(c) Funds in the Collection Account and the Distribution Account may
be invested in Permitted Investments in accordance with the provisions set forth
in Section 3.12. The Master Servicer shall give notice to the Trustee and the
Depositor of the location of the Collection Account maintained by it when
established and prior to any change thereof. The Trustee shall give notice to
the Master Servicer and the Depositor of the location of the Distribution
Account when established and prior to any change thereof.
(d) Funds held in the Collection Account at any time may be
delivered by the Master Servicer to the Trustee for deposit in an account (which
may be the Distribution Account and must satisfy the standards for the
Distribution Account as set forth in the definition thereof) and for all
purposes of this Agreement shall be deemed to be a part of the Collection
Account; provided, however, that the Trustee shall have the sole authority to
withdraw any funds held pursuant to this subsection (d). In the event the Master
Servicer shall deliver to the Trustee for deposit in the Distribution Account
any amount not required to be deposited therein, it may at any time request that
the Trustee withdraw such amount from the Distribution Account and remit to it
any such amount, any provision herein to the contrary notwithstanding. In
addition, the Master Servicer shall deliver to the Trustee from time to time for
deposit, and upon written notification from the Master Servicer, the Trustee
shall so deposit, in the Distribution Account:
(i) any P&I Advances, as required pursuant to Section 4.03,
unless delivered directly to the Trustee by an Advancing Person;
(ii) any amounts required to be deposited pursuant to Section
3.23(d) or (f) in connection with any REO Property;
(iii) any amounts to be paid by the Master Servicer in
connection with a purchase of Mortgage Loans and REO Properties
pursuant to Section 9.01; and
(iv) any amounts required to be deposited pursuant to Section
3.24 in connection with any Prepayment Interest Shortfalls.
(e) The Master Servicer shall deposit in the Collection Account any
amounts required to be deposited pursuant to Section 3.12(b) in connection with
losses realized on Permitted Investments with respect to funds held in the
Collection Account.
SECTION 3.11. Withdrawals from the Collection Account and
Distribution Account.
(a) The Master Servicer shall, from time to time, make withdrawals
from the Collection Account for any of the following purposes or as described in
Section 4.03:
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(i) to remit to the Trustee for deposit in the Distribution
Account the amounts required to be so remitted pursuant to Section
3.10(b) or permitted to be so remitted pursuant to the first
sentence of Section 3.10(d);
(ii) subject to Section 3.16(d), to reimburse the Master
Servicer for P&I Advances, but only to the extent of amounts
received which represent Late Collections (net of the related
Servicing Fees) of Monthly Payments on Mortgage Loans with respect
to which such P&I Advances were made in accordance with the
provisions of Section 4.03;
(iii) subject to Section 3.16(d), to pay the Master Servicer
or any Sub-Servicer (A) any unpaid Servicing Fees, (B) any
unreimbursed Servicing Advances with respect to each Mortgage Loan,
but only to the extent of any Liquidation Proceeds, Insurance
Proceeds or other amounts as may be collected by the Master Servicer
from a Mortgagor, or otherwise received with respect to such
Mortgage Loan and (C) any nonrecoverable Servicing Advances
following the final liquidation of a Mortgage Loan, but only to the
extent that Late Collections, Liquidation Proceeds and Insurance
Proceeds received with respect to such Mortgage Loan are
insufficient to reimburse the Master Servicer or any Sub-Servicer
for such Servicing Advances;
(iv) to pay to the Master Servicer as servicing compensation
(in addition to the Servicing Fee) on the Master Servicer Remittance
Date any interest or investment income earned on funds deposited in
the Collection Account;
(v) to pay to the Master Servicer, the Depositor or the
Seller, as the case may be, with respect to each Mortgage Loan that
has previously been purchased or replaced pursuant to Section 2.03
all amounts received thereon subsequent to the date of purchase or
substitution, as the case may be;
(vi) to reimburse the Master Servicer for any P&I Advance
previously made which the Master Servicer has determined to be a
Nonrecoverable P&I Advance in accordance with the provisions of
Section 4.03;
(vii) to reimburse the Master Servicer or the Depositor for
expenses incurred by or reimbursable to the Master Servicer or the
Depositor, as the case may be, pursuant to Section 6.03;
(viii) to reimburse the Master Servicer or the Trustee, as the
case may be, for expenses reasonably incurred in respect of the
breach or defect giving rise to the purchase obligation under
Section 2.03 of this Agreement that were included in the Purchase
Price of the Mortgage Loan, including any expenses arising out of
the enforcement of the purchase obligation;
(ix) to pay, or to reimburse the Master Servicer for advances
in respect of expenses incurred in connection with any Mortgage Loan
pursuant to Section 3.16(b); and
(x) to clear and terminate the Collection Account pursuant to
Section 9.01.
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The Master Servicer shall keep and maintain separate accounting, on
a Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any
withdrawal from the Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (ii), (iii), (iv), (v), (vi), (viii) and (ix) above.
The Master Servicer shall provide written notification to the Trustee, on or
prior to the next succeeding Master Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vii) above.
(b) The Trustee shall, from time to time, make withdrawals from the
Distribution Account, for any of the following purposes, without priority:
(i) to make distributions to Certificateholders in accordance
with Section 4.01;
(ii) to pay to itself amounts to which each is entitled
pursuant to Section 8.05 and any Extraordinary Trust Fund Expenses;
(iii) to pay itself any interest income earned on funds
deposited in the Distribution Account pursuant to Section 3.12(c);
(iv) to reimburse itself pursuant to Section 7.02 or pursuant
to Section 7.01 to the extent such amounts in Section 7.01 were not
reimbursed by the Master Servicer;
(v) to pay any amounts in respect of taxes pursuant to
10.01(g)(iii);
(vi) to pay to an Advancing Person reimbursements for P&I
Advances and/or Servicing Advances pursuant to Section 3.26;
(vii) to reimburse itself for any P&I Advance made by it under
Section 7.01 (if not reimbursed by the Master Servicer) to the same
extent the Master Servicer would be entitled to reimbursement under
Section 3.11(a); and
(viii) to clear and terminate the Distribution Account
pursuant to Section 9.01.
SECTION 3.12. Investment of Funds in the Collection Account and the
Distribution Account.
(a) The Master Servicer may direct any depository institution
maintaining the Collection Account (for purposes of this Section 3.12, an
"Investment Account"), and the Trustee, in its individual capacity, may direct
any depository institution maintaining the Distribution Account (for purposes of
this Section 3.12, also an "Investment Account"), to invest the funds in such
Investment Account in one or more Permitted Investments bearing interest or sold
at a discount, and maturing, unless payable on demand, (i) no later than the
Business Day immediately preceding the date on which such funds are required to
be withdrawn from such account pursuant to this Agreement, if a Person other
than the Trustee is the obligor thereon, and (ii) no later than the date on
which such funds are required to be withdrawn from such account pursuant to this
Agreement, if the Trustee is the obligor thereon. All such Permitted Investments
shall be held to maturity, unless payable on demand. Any investment of funds in
an Investment Account shall be made in the name
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of the Trustee (in its capacity as such) or in the name of a nominee of the
Trustee. The Trustee shall be entitled to sole possession (except with respect
to investment direction of funds held in the Collection Account and any income
and gain realized thereon) over each such investment, and any certificate or
other instrument evidencing any such investment shall be delivered directly to
the Trustee or its agent, together with any document of transfer necessary to
transfer title to such investment to the Trustee or its nominee. In the event
amounts on deposit in an Investment Account are at any time invested in a
Permitted Investment payable on demand, the Trustee shall:
(x) consistent with any notice required to be given thereunder,
demand that payment thereon be made on the last day such Permitted
Investment may otherwise mature hereunder in an amount equal to the lesser
of (1) all amounts then payable thereunder and (2) the amount required to
be withdrawn on such date; and
(y) demand payment of all amounts due thereunder promptly upon
determination by a Responsible Officer of the Trustee that such Permitted
Investment would not constitute a Permitted Investment in respect of funds
thereafter on deposit in the Investment Account.
(b) All income and gain realized from the investment of funds
deposited in the Collection Account, shall be for the benefit of the Master
Servicer or the Special Servicer, as applicable, and shall be subject to its
withdrawal in accordance with Section 3.11. The Master Servicer or the Special
Servicer, as applicable, shall deposit in the Collection Account the amount of
any loss of principal incurred in respect of any such Permitted Investment made
with funds in such accounts immediately upon realization of such loss.
(c) All income and gain realized from the investment of funds
deposited in the Distribution Account held by or on behalf of the Trustee, shall
be for the benefit of the Trustee and shall be subject to its withdrawal at any
time. The Trustee shall deposit in the Distribution Account, the amount of any
loss of principal incurred in respect of any such Permitted Investment made with
funds in such accounts immediately upon realization of such loss.
(d) Except as otherwise expressly provided in this Agreement, if any
default occurs in the making of a payment due under any Permitted Investment, or
if a default occurs in any other performance required under any Permitted
Investment, the Trustee may and, subject to Section 8.01 and Section 8.02(a)(v),
upon the request of the Holders of Certificates representing more than 50% of
the Voting Rights allocated to any Class of Certificates, shall take such action
as may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate proceedings.
SECTION 3.13. Maintenance of the Primary Mortgage Insurance
Policies; Collections Thereunder.
The Master Servicer will maintain or cause the related Sub-Servicer,
if any, to maintain in full force and effect, if required under the Mortgage
Loan Purchase Agreement and to the extent available, a Primary Mortgage
Insurance Policy with respect to each Mortgage Loan so insured as of the Closing
Date (or, in the case of a Qualified Substitute Mortgage Loan, on the date of
substitution). Such coverage will be maintained with respect to each such
Mortgage Loan for so
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long as it is outstanding, subject to any applicable laws or until the related
Loan-to-Value Ratio is reduced to less than or equal to 80% based on Mortgagor
payments. The Master Servicer shall cause the premium for each Primary Mortgage
Insurance Policy to be paid on a timely basis and shall pay such premium out of
its own funds if it is not otherwise paid. The Master Servicer or the related
Sub-Servicer, if any, will not cancel or refuse to renew any such Primary
Mortgage Insurance Policy in effect on the Closing Date (or, in the case of a
Qualified Substitute Mortgage Loan, on the date of substitution) that is
required to be kept in force under this Agreement unless a replacement Primary
Mortgage Insurance Policy for such canceled or non-renewed policy is obtained
from and maintained with a Qualified Insurer.
The Master Servicer shall not take, or permit any Sub-Servicer to
take, any action which would result in non-coverage under any applicable Primary
Mortgage Insurance Policy of any loss which, but for the actions of the Master
Servicer or Sub-Servicer, would have been covered thereunder. The Master
Servicer will comply in the performance of this Agreement with all reasonable
rules and requirements of each insurer under each Primary Mortgage Insurance
Policy. In connection with any assumption and modification agreement or
substitution of liability agreement entered into or to be entered into pursuant
to Section 3.15, the Master Servicer shall promptly notify the insurer under the
related Primary Mortgage Insurance Policy, if any, of such assumption in
accordance with the terms of such policies and shall take all actions which may
be required by such insurer as a condition to the continuation of coverage under
the Primary Mortgage Insurance Policy. If any such Primary Mortgage Insurance
Policy is terminated as a result of such assumption, the Master Servicer or the
related Sub-Servicer shall obtain a replacement Primary Mortgage Insurance
Policy as provided above.
In connection with its activities as administrator and servicer of
the Mortgage Loans, the Master Servicer agrees to prepare and present, on behalf
of itself, the Trustee and the Certificateholders, claims to the insurer under
any Primary Mortgage Insurance Policy in a timely fashion in accordance with the
terms of such policies and, in this regard, to take such action as shall be
necessary to permit recovery under any Primary Mortgage Insurance Policy
respecting a defaulted Mortgage Loan. Any amounts collected by the Master
Servicer under any Primary Mortgage Insurance Policy shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 3.11; and any
amounts collected by the Master Servicer under any Primary Mortgage Insurance
Policy in respect of any REO Property shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.23. In those cases in which
a Mortgage Loan is serviced by a Sub-Servicer, the Sub-Servicer, on behalf of
itself, the Trustee, and the Certificateholders, will present claims to the
insurer under any Primary Mortgage Insurance Policy and all collections
thereunder shall be deposited initially in the Sub-Servicing Account.
SECTION 3.14. Maintenance of Hazard Insurance and Errors and
Omissions and Fidelity Coverage .
(a) The Master Servicer shall cause to be maintained for each
Mortgage Loan fire insurance with extended coverage on the related Mortgaged
Property in an amount which is at least equal to the least of (i) the current
principal balance of such Mortgage Loan, (ii) the amount necessary to fully
compensate for any damage or loss to the improvements that are a part of such
property on a replacement cost basis and (iii) the maximum insurable value of
the improvements
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which are a part of such Mortgaged Property, in each case in an amount not less
than such amount as is necessary to avoid the application of any coinsurance
clause contained in the related hazard insurance policy. The Master Servicer
shall also cause to be maintained fire insurance with extended coverage on each
REO Property in an amount which is at least equal to the lesser of (i) the
maximum insurable value of the improvements which are a part of such property
and (ii) the outstanding principal balance of the related Mortgage Loan at the
time it became an REO Property, plus accrued interest at the Mortgage Rate and
related Servicing Advances. The Master Servicer will comply in the performance
of this Agreement with all reasonable rules and requirements of each insurer
under any such hazard policies. Any amounts to be collected by the Master
Servicer under any such policies (other than amounts to be applied to the
restoration or repair of the property subject to the related Mortgage or amounts
to be released to the Mortgagor in accordance with the procedures that the
Master Servicer would follow in servicing loans held for its own account,
subject to the terms and conditions of the related Mortgage and Mortgage Note)
shall be deposited in the Collection Account, subject to withdrawal pursuant to
Section 3.11, if received in respect of a Mortgage Loan, or in the REO Account,
subject to withdrawal pursuant to Section 3.23, if received in respect of an REO
Property. Any cost incurred by the Master Servicer in maintaining any such
insurance shall not, for the purpose of calculating distributions to
Certificateholders, be added to the unpaid principal balance of the related
Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.
It is understood and agreed that no earthquake or other additional insurance is
to be required of any Mortgagor other than pursuant to such applicable laws and
regulations as shall at any time be in force and as shall require such
additional insurance. If the Mortgaged Property or REO Property is at any time
in an area identified in the Federal Register by the Federal Emergency
Management Agency as having special flood hazards, the Master Servicer will
cause to be maintained a flood insurance policy in respect thereof. Such flood
insurance shall be in an amount equal to the lesser of (i) the unpaid principal
balance of the related Mortgage Loan and (ii) the maximum amount of such
insurance available for the related Mortgaged Property under the national flood
insurance program (assuming that the area in which such Mortgaged Property is
located is participating in such program).
In the event that the Master Servicer shall obtain and maintain a
blanket policy with an insurer having a General Policy Rating of B+:V or better
in Best's Key Rating Guide (or such other rating that is comparable to such
rating) insuring against hazard losses on all of the Mortgage Loans, it shall
conclusively be deemed to have satisfied its obligations as set forth in the
first two sentences of this Section 3.14, it being understood and agreed that
such policy may contain a deductible clause, in which case the Master Servicer
shall, in the event that there shall not have been maintained on the related
Mortgaged Property or REO Property a policy complying with the first two
sentences of this Section 3.14, and there shall have been one or more losses
which would have been covered by such policy, deposit to the Collection Account
from its own funds the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as
administrator and servicer of the Mortgage Loans, the Master Servicer agrees to
prepare and present, on behalf of itself, the Trustee and Certificateholders,
claims under any such blanket policy in a timely fashion in accordance with the
terms of such policy.
(b) The Master Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of the Master Servicer's obligations under this
Agreement, which policy or policies shall be in such form
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and amount that would meet the requirements of Xxxxxx Xxx or Xxxxxxx Mac if it
were the purchaser of the Mortgage Loans, unless the Master Servicer has
obtained a waiver of such requirements from Xxxxxx Mae or Xxxxxxx Mac. The
Master Servicer shall also maintain a fidelity bond in the form and amount that
would meet the requirements of Xxxxxx Mae or Xxxxxxx Mac, unless the Master
Servicer has obtained a waiver of such requirements from Xxxxxx Mae or Xxxxxxx
Mac. The Master Servicer shall provide the Trustee (upon the Trustee's
reasonable request) with copies of any such insurance policies and fidelity
bond. The Master Servicer shall be deemed to have complied with this provision
if an Affiliate of the Master Servicer has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity
bond, the coverage afforded thereunder extends to the Master Servicer. Any such
errors and omissions policy and fidelity bond shall by its terms not be
cancellable without thirty days' prior written notice to the Trustee. The Master
Servicer shall also cause each Sub-Servicer to maintain a policy of insurance
covering errors and omissions and a fidelity bond which would meet such
requirements.
SECTION 3.15. Enforcement of Due-On-Sale Clauses; Assumption
Agreements.
The Master Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause, if any, applicable thereto; PROVIDED, HOWEVER,
that the Master Servicer shall not exercise any such rights if prohibited by law
from doing so. If the Master Servicer reasonably believes it is unable under
applicable law to enforce such "due-on-sale" clause, or if any of the other
conditions set forth in the proviso to the preceding sentence apply, the Master
Servicer will enter into an assumption and modification agreement from or with
the person to whom such property has been conveyed or is proposed to be
conveyed, pursuant to which such person becomes liable under the Mortgage Note
and, to the extent permitted by applicable state law, the Mortgagor remains
liable thereon. The Master Servicer is also authorized to enter into a
substitution of liability agreement with such person, pursuant to which the
original Mortgagor is released from liability and such person is substituted as
the Mortgagor and becomes liable under the Mortgage Note, provided that no such
substitution shall be effective unless such person satisfies the underwriting
criteria of the Master Servicer. In connection with any assumption or
substitution, the Master Servicer shall apply such underwriting standards and
follow such practices and procedures as shall be normal and usual in its general
mortgage servicing activities and as it applies to other mortgage loans owned
solely by it. The Master Servicer shall not take or enter into any assumption
and modification agreement, however, unless (to the extent practicable in the
circumstances) it shall have received confirmation, in writing, of the continued
effectiveness of any hazard insurance policy, or a new policy meeting the
requirements of Section 3.14 is obtained. Any fee collected by the Master
Servicer in respect of an assumption or substitution of liability agreement will
be retained by the Master Servicer as additional servicing compensation. In
connection with any such assumption, no material term of the Mortgage Note
(including but not limited to the related Mortgage Rate and the amount of the
Monthly Payment) may be amended or modified, except as otherwise required
pursuant to the terms thereof. The Master Servicer shall notify the Trustee that
any such substitution or assumption agreement has been completed by forwarding
to the Trustee the executed original of such substitution or assumption
agreement, which document shall be added to
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the related Mortgage File and shall, for all purposes, be considered a part of
such Mortgage File to the same extent as all other documents and instruments
constituting a part thereof.
Notwithstanding the foregoing paragraph or any other provision of
this Agreement, the Master Servicer shall not be deemed to be in default, breach
or any other violation of its obligations hereunder by reason of any assumption
of a Mortgage Loan by operation of law or by the terms of the Mortgage Note or
any assumption which the Master Servicer may be restricted by law from
preventing, for any reason whatever. For purposes of this Section 3.15, the term
"assumption" is deemed to also include a sale (of the Mortgaged Property)
subject to the Mortgage that is not accompanied by an assumption or substitution
of liability agreement.
SECTION 3.16. Realization Upon Defaulted Mortgage Loans.
(a) The Master Servicer shall, consistent with the servicing
standard set forth in Section 3.01, foreclose upon or otherwise comparably
convert the ownership of properties securing such of the Mortgage Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.07. The Master
Servicer shall be responsible for all costs and expenses incurred by it in any
such proceedings; PROVIDED, HOWEVER, that such costs and expenses will be
recoverable as Servicing Advances by the Master Servicer as contemplated in
Section 3.11 and Section 3.23. The foregoing is subject to the provision that,
in any case in which Mortgaged Property shall have suffered damage from an
Uninsured Cause, the Master Servicer shall not be required to expend its own
funds toward the restoration of such property unless it shall determine in its
discretion that such restoration will increase the proceeds of liquidation of
the related Mortgage Loan after reimbursement to itself for such expenses.
(b) Notwithstanding the foregoing provisions of this Section 3.16 or
any other provision of this Agreement, with respect to any Mortgage Loan as to
which the Master Servicer has received actual notice of, or has actual knowledge
of, the presence of any toxic or hazardous substance on the related Mortgaged
Property, the Master Servicer shall not, on behalf of the Trustee, either (i)
obtain title to such Mortgaged Property as a result of or in lieu of foreclosure
or otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property, if, as a result of any such action,
the Trustee, the Trust Fund, the Master Servicer or the Certificateholders would
be considered to hold title to, to be a "mortgagee-in-possession" of, or to be
an "owner" or "operator" of such Mortgaged Property within the meaning of the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended from time to time, or any comparable law, unless the Master Servicer has
also previously determined, based on its reasonable judgment and a report
prepared by a Person who regularly conducts environmental audits using customary
industry standards, that:
(1) such Mortgaged Property is in compliance with applicable
environmental laws or, if not, that it would be in the best economic
interest of the Trust Fund to take such actions as are necessary to bring
the Mortgaged Property into compliance therewith; and
(2) there are no circumstances present at such Mortgaged Property
relating to the use, management or disposal of any hazardous substances,
hazardous materials, hazardous
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wastes, or petroleum-based materials for which investigation, testing,
monitoring, containment, clean-up or remediation could be required under
any federal, state or local law or regulation, or that if any such
materials are present for which such action could be required, that it
would be in the best economic interest of the Trust Fund to take such
actions with respect to the affected Mortgaged Property.
The cost of the environmental audit report contemplated by this
Section 3.23 shall be advanced by the Master Servicer, subject to the Master
Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.11(a)(ix), such right of reimbursement being prior to the
rights of Certificateholders to receive any amount in the Collection Account
received in respect of the affected Mortgage Loan or other Mortgage Loans.
If the Master Servicer determines, as described above, that it is in
the best economic interest of the Trust Fund to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes or petroleum based materials affecting any such Mortgaged Property, then
the Master Servicer shall take, consistent with the servicing standard set forth
in Section 3.01, such action as it deems to be in the best economic interest of
the Trust Fund. The cost of any such compliance, containment, cleanup or
remediation shall be advanced by the Master Servicer, subject to the Master
Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.11(a)(ix), such right of reimbursement being prior to the
rights of Certificateholders to receive any amount in the Collection Account
received in respect of the affected Mortgage Loan or other Mortgage Loans.
(c) [Reserved].
(d) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds or Liquidation Proceeds, in respect of any Mortgage Loan,
will be applied in the following order of priority: FIRST, to reimburse the
Master Servicer or any Sub-Servicer for any related unreimbursed Servicing
Advances and P&I Advances, pursuant to Section 3.11(a)(ii) or (a)(iii)(A) or
(B); SECOND, to accrued and unpaid interest on the Mortgage Loan, to the date of
the Final Recovery Determination, or to the Due Date prior to the Distribution
Date on which such amounts are to be distributed if not in connection with a
Final Recovery Determination; and THIRD, as a recovery of principal of the
Mortgage Loan. If the amount of the recovery so allocated to interest is less
than the full amount of accrued and unpaid interest due on such Mortgage Loan,
the amount of such recovery will be allocated by the Master Servicer as follows:
FIRST, to unpaid Servicing Fees; and SECOND, to the balance of the interest then
due and owing. The portion of the recovery so allocated to unpaid Servicing Fees
shall be reimbursed to the Master Servicer or any Sub-Servicer pursuant to
Section 3.11(a)(iii)(A).
SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files.
(a) Upon the payment in full of any Mortgage Loan, or the receipt by
the Master Servicer or the Special Servicer, as the case may be, of a
notification that payment in full shall be
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escrowed in a manner customary for such purposes, the Master Servicer will
immediately notify the Trustee by delivery of two copies of a Request for
Release in the form of Exhibit E (which shall include a statement to the effect
that all amounts received or to be received in connection with such payment
which are required to be deposited in the Collection Account pursuant to Section
3.10 have been or will be so deposited) of a Servicing Officer and shall request
delivery to it of the Mortgage File. Upon receipt of such copies of the Request
for Release, the Trustee shall promptly release the related Mortgage File to the
Master Servicer and the Master Servicer is authorized to cause the removal from
the registration on the MERS(R) System of any such Mortgage, if applicable,. If
a Mortgage Loan has been paid in full or liquidated, the Trustee may return the
related Mortgage File to the Master Servicer or the Special Servicer, as the
case may be, without receiving a Request for Release. No expenses incurred in
connection with any instrument of satisfaction or deed of reconveyance shall be
chargeable to the Collection Account or the Distribution Account.
(b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Trustee shall, upon
request of the Master Servicer or the Special Servicer, as the case may be, and
delivery to the Trustee of a Request for Release, release the related Mortgage
File to the Master Servicer or the Special Servicer, as the case may be, and the
Trustee shall, at the direction of the Master Servicer, execute such documents
as shall be necessary to the prosecution of any such proceedings. Such Request
for Release shall obligate the Master Servicer or the Special Servicer, as the
case may be, to return each and every Mortgage File to the Trustee when the need
therefor by the Master Servicer or the Special Servicer, as the case may be, no
longer exists, unless the Mortgage Loan has been liquidated and the Liquidation
Proceeds relating to the Mortgage Loan have been deposited in the Collection
Account or the Mortgage File or such document has been delivered to an attorney,
or to a public trustee or other public official as required by law, for purposes
of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially, and the Master
Servicer or the Special Servicer, as the case may be, has delivered to the
Trustee a certificate of a Servicing Officer certifying as to the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery. Upon receipt of two copies of a
new Request for Release stating that such Mortgage Loan was liquidated and that
all amounts received or to be received in connection with such liquidation that
are required to be deposited into the Collection Account have been so deposited,
or that such Mortgage Loan has become an REO Property, the related Mortgage File
shall not be required to be returned to the Trustee.
(c) Upon written certification of a Servicing Officer, the Trustee
shall execute and deliver to the Master Servicer or the Special Servicer, as the
case may be, any court pleadings, requests for trustee's sale or other documents
reasonably necessary to the foreclosure or trustee's sale in respect of a
Mortgaged Property or to any legal action brought to obtain judgment against any
Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment,
or to enforce any other remedies or rights provided by the Mortgage Note or
Mortgage or otherwise available at law or in equity. Each such certification
shall include a request that such pleadings or documents be executed by the
Trustee and a statement as to the reason such documents or pleadings are
required and that the execution and delivery thereof by the Trustee will not
invalidate or otherwise affect the lien of the Mortgage, except for the
termination of such a lien upon completion of the foreclosure or trustee's sale.
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SECTION 3.18. Servicing Compensation.
As compensation for the activities of the Master Servicer hereunder,
the Master Servicer shall be entitled to the Servicing Fee with respect to each
Mortgage Loan payable solely from payments of interest in respect of such
Mortgage Loan, subject to Section 3.24. In addition, the Master Servicer shall
be entitled to recover unpaid Servicing Fees out of Insurance Proceeds or
Liquidation Proceeds to the extent permitted by Section 3.11(a)(iii)(A) and out
of amounts derived from the operation and sale of an REO Property to the extent
permitted by Section 3.23. Except with respect to the Special Servicer, the
right to receive the Servicing Fee may not be transferred in whole or in part
except in connection with the transfer of all of the Master Servicer's
responsibilities and obligations under this Agreement.
As compensation for its services, the Special Servicer will be paid
the Servicing Fee with respect to each Specially Serviced Mortgage Loan.
Additional servicing compensation in the form of assumption fees,
late payment charges and other similar fees and charges shall be retained by the
Master Servicer (subject to Section 3.24) only to the extent such fees or
charges are received by the Master Servicer. The Master Servicer shall also be
entitled pursuant to Section 3.11(a)(iv) to withdraw from the Collection
Account, and pursuant to Section 3.23(b) to withdraw from any REO Account, as
additional servicing compensation, interest or other income earned on deposits
therein, subject to Section 3.12 and Section 3.24. The Master Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including premiums due under the Primary Insurance
Policies, if any, premiums for the insurance required by Section 3.14, to the
extent such premiums are not paid by the related Mortgagors or by a
Sub-Servicer, servicing compensation of each Sub-Servicer, and to the extent
provided herein in Section 8.05, the fees and expenses of the Trustee) and shall
not be entitled to reimbursement therefor except as specifically provided
herein.
SECTION 3.19. Reports to the Trustee; Collection Account
Statements.
Not later than fifteen days after each Distribution Date, the Master
Servicer shall forward to the Trustee a statement prepared by the Master
Servicer setting forth the status of the Collection Account as of the close of
business on the last day of the calendar month relating to such Distribution
Date and showing, for the period covered by such statement, the aggregate amount
of deposits into and withdrawals from the Collection Account of each category of
deposit specified in Section 3.10(a) and each category of withdrawal specified
in Section 3.11. Such statement may be in the form of the then current Xxxxxx
Xxx Monthly Accounting Report for its Guaranteed Mortgage Pass-Through Program
with appropriate additions and changes, and shall also include information as to
the aggregate of the outstanding principal balances of all of the Mortgage Loans
as of the last day of the calendar month immediately preceding such Distribution
Date. Copies of such statement (and any comparable statement from the Special
Servicer) shall be provided by the Trustee to any Certificateholder and to any
Person identified to the Trustee as a prospective transferee of a Certificate,
upon the request and at the expense of the requesting party, provided such
statement is delivered by the Master Servicer or the Special Servicer, as
applicable, to the Trustee.
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SECTION 3.20. Statement as to Compliance.
On or before March 15th of each calendar year commencing in 2005,
the Master Servicer will deliver to the Trustee, the Depositor and the Rating
Agency, an Officers' Certificate (in the form attached hereto as Exhibit I)
stating, as to each signatory thereof, that (i) a review of the activities of
the Master Servicer during the preceding year and of performance under this
Agreement has been made under such officers' supervision and (ii) to the best of
such officers' knowledge, based on such review, the Master Servicer has
fulfilled all of its obligations under this Agreement throughout such year, or,
if there has been a default in the fulfillment of any such obligation,
specifying each such default known to such officer and the nature and status
thereof. Copies of any such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon the request and at the expense of the
requesting party, provided that such statement is delivered by the Master
Servicer to the Trustee.
SECTION 3.21. Independent Public Accountants Servicing Report.
Not later than March 15th of each calendar year commencing in 2005,
the Master Servicer, at its expense, shall cause a nationally recognized firm of
independent certified public accountants to furnish to the Master Servicer a
report stating that (i) it has obtained a letter of representation regarding
certain matters from the management of the Master Servicer which includes an
assertion that the Master Servicer has complied with certain minimum residential
mortgage loan servicing standards, identified in the Uniform Single Attestation
Program for Mortgage Bankers established by the Mortgage Bankers Association of
America, with respect to the servicing of residential mortgage loans during the
most recently completed fiscal year and (ii) on the basis of an examination
conducted by such firm in accordance with standards established by the American
Institute of Certified Public Accountants, such representation is fairly stated
in all material respects, subject to such exceptions and other qualifications
that may be appropriate. In rendering its report such firm may rely, as to
matters relating to the direct servicing of residential mortgage loans by
Sub-Servicers, upon comparable reports of firms of independent certified public
accountants rendered on the basis of examinations conducted in accordance with
the same standards (rendered within one year of such report) with respect to
those Sub-Servicers. Immediately upon receipt of such report, the Master
Servicer shall furnish a copy of such report to the Trustee, the Depositor and
the Rating Agency. Copies of such statement shall be provided by the Trustee to
any Certificateholder upon request at the Master Servicer's expense, provided
that such statement is delivered by the Master Servicer to the Trustee. In the
event such firm of independent certified public accountants requires the Trustee
to agree to the procedures performed by such firm, the Master Servicer shall
direct the Trustee in writing to so agree; it being understood and agreed that
the Trustee will deliver such letter of agreement in conclusive reliance upon
the direction of the Master Servicer, and the Trustee has not made any
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.
SECTION 3.22. Access to Certain Documentation.
The Master Servicer shall provide to the Office of the Controller of
the Currency, the Office of Thrift Supervision, the FDIC, and any other federal
or state banking or insurance regulatory authority that may exercise authority
over any Certificateholder, access to the documentation
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regarding the Mortgage Loans required by applicable laws and regulations. Such
access shall be afforded without charge, but only upon reasonable request and
during normal business hours at the offices of the Master Servicer designated by
it. In addition, access to the documentation regarding the Mortgage Loans
required by applicable laws and regulations will be provided to such
Certificateholder, the Trustee and to any Person identified to the Master
Servicer as a prospective transferee of a Certificate, upon reasonable request
during normal business hours at the offices of the Master Servicer designated by
it at the expense of the Person requesting such access.
SECTION 3.23. Title, Management and Disposition of REO Property.
(a) The deed or certificate of sale of any REO Property shall be
taken in the name of the Trustee, or its nominee, in trust for the benefit of
the Certificateholders. The Master Servicer, on behalf of the Trust Fund and
consistent with the servicing standard set forth in Section 3.01, shall either
sell any REO Property before the close of the third taxable year following the
year the Trust Fund acquires ownership of such REO Property for purposes of
Section 860G(a)(8) of the Code or request from the Internal Revenue Service, no
later than 60 days before the day on which the three-year grace period would
otherwise expire, an extension of the three-year grace period, unless the Master
Servicer shall have delivered to the Trustee and the Depositor an Opinion of
Counsel, addressed to the Trustee and the Depositor, to the effect that the
holding by the Trust Fund of such REO Property subsequent to three years after
its acquisition will not result in the imposition on REMIC I of taxes on
"prohibited transactions" thereof, as defined in Section 860F of the Code, or
cause REMIC I to fail to qualify as a REMIC under Federal law at any time that
any Certificates are outstanding. The Master Servicer shall, consistent with the
servicing standard set forth in Section 3.01, manage, conserve, protect and
operate each REO Property for the Certificateholders solely for the purpose of
its prompt disposition and sale in a manner which does not cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by REMIC I of any
"income from non-permitted assets" within the meaning of Section 860F(a)(2)(B)
of the Code, or any "net income from foreclosure property" which is subject to
taxation under the REMIC Provisions.
(b) The Master Servicer shall segregate and hold all funds collected
and received in connection with the operation of any REO Property separate and
apart from its own funds and general assets and shall establish and maintain
with respect to REO Properties an account held in trust for the Trustee for the
benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Master Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Master Servicer shall be entitled to retain or withdraw any
interest income paid on funds deposited in the REO Account.
(c) The Master Servicer shall have full power and authority, subject
only to the servicing standard set forth in Section 3.01 and the specific
requirements and prohibitions of this Agreement, to do any and all things in
connection with any REO Property as are consistent with the manner in which the
Master Servicer manages and operates similar property owned by the Master
Servicer or any of its Affiliates, all on such terms and for such period as the
Master Servicer deems to be in the best interests of Certificateholders. In
connection therewith, the Master Servicer shall deposit, or cause to be
deposited in the clearing account (which account must be an Eligible Account) in
which it customarily deposits payments and collections on mortgage loans in
connection
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with its mortgage loan servicing activities on a daily basis, and in no event
more than two Business Days after the Master Servicer's receipt thereof, and
shall thereafter deposit in the REO Account, in no event more than one Business
Day after the deposit of such funds into the clearing account, all revenues
received by it with respect to an REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of such REO
Property including, without limitation:
(i) all insurance premiums due and payable in respect of such REO
Property;
(ii) all real estate taxes and assessments in respect of such REO
Property that may result in the imposition of a lien thereon; and
(iii) all costs and expenses necessary to maintain such REO
Property.
To the extent that amounts on deposit in the REO Account with
respect to an REO Property are insufficient for the purposes set forth in
clauses (i) through (iii) above with respect to such REO Property, the Master
Servicer shall, consistent with the servicing standard set forth in Section
3.01, advance from its own funds such amount as is necessary for such purposes
if, but only if, the Master Servicer would make such advances if the Master
Servicer owned the REO Property and if in the Master Servicer's judgment, the
payment of such amounts will be recoverable from the rental or sale of the REO
Property.
Notwithstanding the foregoing, none of the Master Servicer or the
Trustee shall:
(i) authorize the Trust Fund to enter into, renew or extend any New
Lease with respect to any REO Property, if the New Lease by its terms will
give rise to any income that does not constitute Rents from Real Property;
(ii) authorize any amount to be received or accrued under any New
Lease other than amounts that will constitute Rents from Real Property;
(iii) authorize any construction on any REO Property, other than the
completion of a building or other improvement thereon, and then only if
more than ten percent of the construction of such building or other
improvement was completed before default on the related Mortgage Loan
became imminent, all within the meaning of Section 856(e)(4)(B) of the
Code; or
(iv) authorize any Person to Directly Operate any REO Property on
any date more than 90 days after its date of acquisition by the Trust
Fund; unless, in any such case, the Master Servicer has obtained an
Opinion of Counsel, provided to the Trustee, to the effect that such
action will not cause such REO Property to fail to qualify as "foreclosure
property" within the meaning of Section 860G(a)(8) of the Code at any time
that it is held by the Trust Fund, in which case the Master Servicer may
take such actions as are specified in such Opinion of Counsel.
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The Master Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:
(i) the terms and conditions of any such contract shall not be
inconsistent herewith;
(ii) any such contract shall require, or shall be administered to
require, that the Independent Contractor pay all costs and expenses
incurred in connection with the operation and management of such REO
Property, including those listed above and remit all related revenues (net
of such costs and expenses) to the Master Servicer as soon as practicable,
but in no event later than thirty days following the receipt thereof by
such Independent Contractor;
(iii) none of the provisions of this Section 3.23(c) relating to any
such contract or to actions taken through any such Independent Contractor
shall be deemed to relieve the Master Servicer of any of its duties and
obligations to the Trustee on behalf of the Certificateholders with
respect to the operation and management of any such REO Property; and
(iv) the Master Servicer shall be obligated with respect thereto to
the same extent as if it alone were performing all duties and obligations
in connection with the operation and management of such REO Property.
The Master Servicer shall be entitled to enter into any agreement
with any Independent Contractor performing services for it related to its duties
and obligations hereunder for indemnification of the Master Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Master Servicer shall be solely liable for
all fees owed by it to any such Independent Contractor, irrespective of whether
the Master Servicer's compensation pursuant to Section 3.18 is sufficient to pay
such fees.
(d) In addition to the withdrawals permitted under Section 3.23(c),
the Master Servicer may from time to time make withdrawals from the REO Account
for any REO Property: (i) to pay itself or any Sub-Servicer unpaid Servicing
Fees in respect of the related Mortgage Loan; and (ii) to reimburse itself or
any Sub-Servicer for unreimbursed Servicing Advances and P&I Advances made in
respect of such REO Property or the related Mortgage Loan. Any income from the
related REO Property received during any calendar months prior to a Final
Recovery Determination, net of any withdrawals made pursuant to Section 3.23(c)
or this Section 3.23(d), shall be withdrawn by the Master Servicer from each REO
Account maintained by it and deposited into the Distribution Account in
accordance with Section 3.10(d)(ii) on the Master Servicer Remittance Date
relating to a Final Recovery Determination with respect to such Mortgage Loan,
for distribution on the related Distribution Date in accordance with Section
4.01.
(e) Subject to the time constraints set forth in Section 3.23(a) and
consistent with the servicing standard set forth in Section 3.01, each REO
Disposition shall be carried out by the Master Servicer at such price and upon
such terms and conditions as the Master Servicer shall deem
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necessary or advisable, as shall be normal and usual in its general servicing
activities for similar properties.
(f) The proceeds from the REO Disposition, net of any amount
required by law to be remitted to the Mortgagor under the related Mortgage Loan
and net of any payment or reimbursement to the Master Servicer or any
Sub-Servicer as provided above, shall be deposited in the Distribution Account
in accordance with Section 3.10(d)(ii) on the Master Servicer Remittance Date in
the month following the receipt thereof for distribution on the related
Distribution Date in accordance with Section 4.01. Any REO Disposition shall be
for cash only (unless changes in the REMIC Provisions made subsequent to the
Startup Day allow a sale for other consideration).
(g) The Master Servicer shall file information returns with respect
to the receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property as required by
Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.
SECTION 3.24. Obligations of the Master Servicer in Respect of
Prepayment Interest Shortfalls.
The Master Servicer shall deliver to the Trustee for deposit into
the Distribution Account on or before 12:00 p.m. New York time on the Master
Servicer Remittance Date from its own funds an amount equal to the lesser of (i)
the aggregate of the Prepayment Interest Shortfalls for the related Distribution
Date resulting from full or partial Principal Prepayments during the related
Prepayment Period and (ii) (A) the amount of the aggregate Servicing Fee paid to
the Master Servicer and the Special Servicer for the most recently ended
calendar month, minus (B) Compensating Interest paid by the Special Servicer
pursuant to the Special Servicing Agreement for the related Distribution Date.
SECTION 3.25. Obligations of the Master Servicer in Respect of
Monthly Payments.
In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Stated Principal Balances that were made by the Master Servicer in a manner not
consistent with the terms of the related Mortgage Note and this Agreement, the
Master Servicer, upon discovery or receipt of notice thereof, immediately shall
deliver to the Trustee for deposit in the Distribution Account from its own
funds the amount of any such shortfall and shall indemnify and hold harmless the
Trust Fund, the Trustee, the Depositor and any successor master servicer in
respect of any such liability. Such indemnities shall survive the termination or
discharge of this Agreement.
SECTION 3.26. Advance Facility.
(a) Either (i) the Master Servicer or (ii) the Trustee, on behalf of
the Trust Fund, with the consent of the Master Servicer, is hereby authorized to
enter into a facility with any Person
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which provides that such Person (an "Advancing Person") may fund P&I Advances
and/or Servicing Advances to the Trust Fund under this Agreement, although no
such facility shall reduce or otherwise affect the Master Servicer's obligation
to fund such P&I Advances and/or Servicing Advances. If the Master Servicer
enters into such an Advance Facility pursuant to this Section 3.26, upon
reasonable request of the Advancing Person, the Trustee shall execute a letter
of acknowledgment, confirming its receipt of notice of the existence of such
Advance Facility. If the Trustee enters into such an Advance Facility pursuant
to this Section 3.26, the Master Servicer shall also be a party to such Advance
Facility. To the extent that an Advancing Person funds any P&I Advance or any
Servicing Advance and provides the Trustee with notice acknowledged by the
Master Servicer that such Advancing Person is entitled to reimbursement, such
Advancing Person shall be entitled to receive reimbursement pursuant to this
Agreement for such amount to the extent provided in Section 3.26(b). Such notice
from the Advancing Person must specify the amount of the reimbursement, the
Section of this Agreement that permits the applicable P&I Advance or Servicing
Advance to be reimbursed and the section(s) of the Advance Facility that entitle
the Advancing Person to request reimbursement from the Trustee, rather than the
Master Servicer, and include the Master Servicer's acknowledgment thereto or
proof of an Event of Default under the Advance Facility. The Trustee shall have
no duty or liability with respect to any calculation of any reimbursement to be
paid to an Advancing Person and shall be entitled to rely without independent
investigation on the Advancing Person's notice provided pursuant to this Section
3.26. An Advancing Person whose obligations hereunder are limited to the funding
of P&I Advances and/or Servicing Advances shall not be required to meet the
qualifications of a Master Servicer or a Sub-Servicer pursuant to Section 3.02
hereof and will not be deemed to be a Sub-Servicer under this Agreement.
(b) If an advancing facility is entered into, then the Master
Servicer shall not be permitted to reimburse itself therefor under Section
3.11(a)(ii), Section 3.11(a)(iii) and Section 3.11(a)(vi) prior to the
remittance to the Trust Fund, but instead the Master Servicer shall include such
amounts in the applicable remittance to the Trustee made pursuant to Section
3.11(a). The Trustee is hereby authorized to pay to the Advancing Person,
reimbursements for P&I Advances and Servicing Advances from the Distribution
Account to the same extent the Master Servicer would have been permitted to
reimburse itself for such P&I Advances and/or Servicing Advances in accordance
with Section 3.11(a)(ii), Section 3.11(a)(iii) and Section 3.11(a)(vi), as the
case may be, had the Master Servicer itself funded such P&I Advance or Servicing
Advance. The Trustee is hereby authorized to pay directly to the Advancing
Person such portion of the Servicing Fee as the parties to any advancing
facility agree in writing.
(c) All P&I Advances and Servicing Advances made pursuant to the
terms of this Agreement shall be deemed made and shall be reimbursed on a "first
in-first out" (FIFO) basis.
(d) Any amendment to this Section 3.26 or to any other provision of
this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 3.26, including
amendments to add provisions relating to a successor master servicer, may be
entered into by the Trustee and the Master Servicer without the consent of any
Certificateholder, notwithstanding anything to the contrary in this Agreement.
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ARTICLE IV
PAYMENTS TO CERTIFICATEHOLDERS
SECTION 4.01. Distributions.
(a)(1) On each Distribution Date, the Trustee shall withdraw from
the Distribution Account an amount equal to the Available Distribution Amount
and distribute the following amounts, in the following order of priority to the
related Class or Classes from the related Available Distribution Amount:
(i) concurrently, to the Holders of the related Class A Certificates
and the related Class XS Certificates, and on the first Distribution Date from
the Subgroup IIA-1 Available Distribution Amount to the Class R Certificates,
the Interest Distribution Amount for each such Class for such Distribution Date,
on a PRO RATA basis based on the entitlement of each such Class to such interest
in an aggregate amount equal to the Senior Interest Distribution Amount;
(ii) concurrently, (A) to the Holders of the Class PO-1
Certificates, to the extent of the Class PO Principal Distribution Amount for
such Class of Certificates, in reduction of the Certificate Principal Balance of
such Class, until the Certificate Principal Balance of such Class has been
reduced to zero, (B) to the Holders of the Class PO-2 Certificates, to the
extent of the Class PO Principal Distribution Amount for such Class of
Certificates, in reduction of the Certificate Principal Balance of such Class,
until the Certificate Principal Balance of such Class has been reduced to zero,
(C) to the Holders of the Class PO-3 Certificates, to the extent of the Class PO
Principal Distribution Amount for such Class of Certificates, in reduction of
the Certificate Principal Balance of such Class, until the Certificate Principal
Balance of such Class has been reduced to zero, and (D) to the Holders of the
Class PO-4 Certificates, to the extent of the Class PO Principal Distribution
Amount for such Class of Certificates, in reduction of the Certificate Principal
Balance of such Class, until the Certificate Principal Balance of such Class has
been reduced to zero;
(iii) concurrently, (A) to the Holders of the Class IA-CB1
Certificates, to the extent of the Senior Principal Distribution Amount for such
Certificates, in reduction of the Certificate Principal Balance thereof, until
the Certificate Principal Balance of such Class has been reduced to zero, (B) to
the Holders of the Class IA-CB2 Certificates, to the extent of the Senior
Principal Distribution Amount for such Certificates, in reduction of the
Certificate Principal Balance thereof, until the Certificate Principal Balance
of such Class has been reduced to zero, (C) to the Holders of the Class IA-CB3
Certificates, to the extent of the Senior Principal Distribution Amount for such
Certificates, in reduction of the Certificate Principal Balance thereof, until
the Certificate Principal Balance of such Class has been reduced to zero, (D) to
the Holders of the Class IIA-CB1 Certificates and, with respect to the first
Distribution Date only, the Class R Certificates, to the extent of the Senior
Principal Distribution Amount for such Certificates, in reduction of the
Certificate Principal Balances thereof, until the Certificate Principal Balance
of each such Class has been reduced to zero, (E) to the Holders of the Class
IIA-CB2 Certificates, to the extent of the Senior Principal Distribution Amount
for such Certificates, in reduction of the Certificate Principal Balance
thereof, until the Certificate Principal Balance of such Class has been reduced
to zero, (F) to the Holders of the Class IIA-CB3 Certificates, to the extent of
the Senior Principal Distribution Amount for such
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Certificates, in reduction of the Certificate Principal Balance thereof, until
the Certificate Principal Balance of such Class has been reduced to zero, (G) to
the Holders of the Class IIIA-CB1 Certificates, to the extent of the Senior
Principal Distribution Amount for such Certificates, in reduction of the
Certificate Principal Balance thereof, until the Certificate Principal Balance
of such Class has been reduced to zero, (H) to the Holders of the Class IIIA-CB2
Certificates, to the extent of the Senior Principal Distribution Amount for such
Certificates, in reduction of the Certificate Principal Balance thereof, until
the Certificate Principal Balance of such Class has been reduced to zero, (I) to
the Holders of the Class IVA-1 Certificates, to the extent of the Senior
Principal Distribution Amount for such Certificates, in reduction of the
Certificate Principal Balance thereof, until the Certificate Principal Balance
of such Class has been reduced to zero, and (J) to the Holders of the Class
IVA-2 Certificates, to the extent of the Senior Principal Distribution Amount
for such Certificates, in reduction of the Certificate Principal Balance
thereof, until the Certificate Principal Balance of such Class has been reduced
to zero;
(iv) to the Holders of the Subordinate Certificates (other than the
Class of Subordinate Certificates with the highest numerical designation then
outstanding), the Interest Distribution Amount for each such Class for such
Distribution Date, distributable in the order of priority from the Class of
Subordinate Certificates with the lowest numerical designation to the Class of
Subordinate Certificates with the highest numerical designation;
(v) concurrently, (A) to the Holders of the Class PO-1 Certificates,
in reduction of the Certificate Principal Balance of such Class, in an amount
equal to the excess, if any, of the Class PO-1 Percentage of the Stated
Principal Balance of each Class PO Mortgage Loan as to which a Final Liquidation
has occurred, over the amount distributed in respect of such Class PO Mortgage
Loan to the Class PO-1 Certificates pursuant to clause (ii) above, (B) to the
Holders of the Class PO-2 Certificates, in reduction of the Certificate
Principal Balance of such Class, in an amount equal to the excess, if any, of
the Class PO-2 Percentage of the Stated Principal Balance of each Class PO
Mortgage Loan as to which a Final Liquidation has occurred, over the amount
distributed in respect of such Class PO Mortgage Loan to the Class PO-2
Certificates pursuant to clause (ii) above, (C) to the Holders of the Class PO-3
Certificates, in reduction of the Certificate Principal Balance of such Class,
in an amount equal to the excess, if any, of the Class PO-3 Percentage of the
Stated Principal Balance of each Class PO Mortgage Loan as to which a Final
Liquidation has occurred, over the amount distributed in respect of such Class
PO Mortgage Loan to the Class PO-3 Certificates pursuant to clause (ii) above,
and (D) to the Holders of the Class PO-4 Certificates, in reduction of the
Certificate Principal Balance of such Class, in an amount equal to the excess,
if any, of the Class PO-4 Percentage of the Stated Principal Balance of each
Class PO Mortgage Loan as to which a Final Liquidation has occurred, over the
amount distributed in respect of such Class PO Mortgage Loan to the Class PO-4
Certificates pursuant to clause (ii) above;
(vi) to the Holders of the Subordinate Certificates of the Class
with the highest numerical designation then outstanding, the Interest
Distribution Amount for such Class for such Distribution Date;
(vii) to the Holders of the Subordinate Certificates, an aggregate
amount equal to the Subordinate Principal Distribution Amount for such
Distribution Date, allocable among the Classes of Subordinate Certificates in
reduction of the Certificate Principal Balances thereof pro rata
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in accordance with the respective amounts payable as to each such Class pursuant
to the priorities and amounts set forth in Section 4.01(b)(i);
(viii) to the Excess Diverted Interest Reserve Account, the Excess
Diverted Interest Reserve Amount, if any; and
(ix) to the Holders of the Class R Certificates, any remaining
amounts.
Immediately prior to the distributions to the Holders of the
Certificates on each Distribution Date, any adjustments to the Certificate
Principal Balances of the Certificates required by this paragraph shall be made.
An amount equal to the lesser of (x) the amount of Subsequent Recoveries
included in the Available Funds for such Distribution Date and (y) the aggregate
amount of related Realized Losses, other than Excess Bankruptcy Losses, Excess
Fraud Losses, Excess Special Hazard Losses and Extraordinary Losses, previously
allocated to the Certificates and that remain "outstanding" as set forth below
shall be applied as follows: first, to increase the Certificate Principal
Balance of the Class of Certificates with the highest payment priority to which
such Realized Losses were previously allocated, to the extent of any such
Realized Losses previously allocated to such Class and remaining "outstanding";
second, to increase the Certificate Principal Balance of the Class of
Certificates with the next highest payment priority to which such Realized
Losses were previously allocated, to the extent of any such Realized Losses
previously allocated to such Class and remaining "outstanding"; and so forth.
For purposes of the foregoing, with respect to any Class of Certificates, the
amount of previously allocated Realized Losses that have been offset by an
increase in Certificate Principal Balance as provided above shall be deemed no
longer "outstanding" but not by more than the amount of Realized Losses
previously allocated to that Class of Certificates pursuant to Section 4.04.
Holders of any Class of Certificates with respect to which there shall have been
a Certificate Principal Balance increase pursuant to this paragraph will not be
entitled to any distribution in respect of interest on the amount of such
increase for any Interest Accrual Period preceding the Distribution Date on
which such increase occurs. Any such increases shall be applied to the
Certificate Principal Balance of each Certificate of such Class in accordance
with its respective Percentage Interest.
(2) Notwithstanding the foregoing clauses (iii) and (vii) of Section
4.01(a)(1), if on any Distribution Date any of Subgroup IA-1, Subgroup IA-2,
Subgroup IA-3, Subgroup IIA-1, Subgroup IIA-2, Subgroup IIA-3, Subgroup IIIA-1,
Subgroup IIIA-2, Subgroup IVA-1 or Subgroup IVA-2 is an Undercollateralized
Subgroup and the other such Subgroup or Subgroups is an Overcollateralized
Subgroup, then the Available Distribution Amount for the Subgroup or Subgroups
related to the Overcollateralized Subgroup or Subgroups, to the extent remaining
following distributions of interest and principal to the related Senior
Certificates pursuant to Section 4.01(a)(1)(i)-(iii) above, as applicable, shall
be paid in the following priority: (1) first, to the Senior Certificates related
to each Undercollateralized Subgroup pro rata, based on the Undercollateralized
Amount for each such Undercollateralized Subgroup, until such
Undercollateralized Amounts are reduced to zero; and (2) second, to the
Subordinate Certificates, as principal distributed pursuant to Section
4.01(a)(1) above.
(3) All references above to the Certificate Principal Balance of any
Class of Certificates shall be to the Certificate Principal Balance of such
Class prior to the allocation of
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Extraordinary Trust Fund Expenses and Realized Losses, in each case allocated to
such Class of Certificates, on such Distribution Date pursuant to Section 4.04.
(b)(i) On each Distribution Date, the aggregate distributions of
principal made on such date in respect of the Subordinate Certificates pursuant
to Section 4.01(a)(1)(vii) above shall be applied among the various Classes
thereof, in the order of priority from the Class of Subordinate Certificates
with the lowest numerical designation to the Class of Subordinate Certificates
with the highest numerical designation, in each case to the extent of remaining
available funds up to the amount allocable to such Class for such Distribution
Date and in each case until the Certificate Principal Balance of each such Class
is reduced to zero, in an amount with respect to each such Class equal to the
sum of (X) the related Class B Percentage of the amounts described in clauses
(i) through (v) of clause (a) of the definition of Subordinate Principal
Distribution Amount, (Y) the portion of the amounts described in clauses (b) and
(c) of the definition of Subordinate Principal Distribution Amount allocable to
such Class pursuant to Section 4.01(b)(ii) below and (Z) the excess, if any, of
the amount required to be distributed to such Class pursuant to this Section
4.01(b)(i) for the immediately preceding Distribution Date, over the aggregate
distributions of principal made in respect of such Class of Certificates on such
immediately preceding Distribution Date pursuant to Section 4.01 to the extent
that any such excess is not attributable to Realized Losses which were allocated
to Subordinate Certificates with a lower priority pursuant to Section 4.04.
(ii) On any Distribution Date, the portion of (a) all net
Liquidation Proceeds and Insurance Proceeds with respect to any Mortgage Loans
that were the subject of a Final Recovery Determination in the related
Prepayment Period and (b) all Principal Prepayments received in respect of the
Mortgage Loans in the related Prepayment Period, allocable to principal and not
included in the Senior Principal Distribution Amount and the Class PO Principal
Distribution Amount, will be allocated on a PRO RATA basis among the following
Classes of Subordinate Certificates (each, an "Eligible Class") in proportion to
the respective outstanding Certificate Principal Balances thereof: (i) the Class
B-1 Certificates (or if the Certificate Principal Balance of the Class B-1
Certificates has been reduced to zero, the Class of Subordinate Certificates
outstanding with the lowest numerical designation, in which case the next
applicable clause below will be the clause following the clause relating to such
outstanding class of Subordinate Certificates), (ii) the Class B-2 Certificates,
if on such Distribution Date the aggregate percentage interest in the Trust Fund
evidenced by the Class B-2 Certificates, the Class B-3 Certificates, the Class
B-4 Certificates, the Class B-5 Certificates and the Class B-6 Certificates
equals or exceeds 3.60% before giving effect to distributions on such
Distribution Date, (iii) the Class B-3 Certificates, if on such Distribution
Date the aggregate percentage interest in the Trust Fund evidenced by the Class
B-3 Certificates, the Class B-4 Certificates, the Class B-5 Certificates and the
Class B-6 Certificates equals or exceeds 2.35% before giving effect to
distributions on such Distribution Date, (iv) the Class B-4 Certificates, if on
such Distribution Date the aggregate percentage interest in the Trust Fund
evidenced by the Class B-4 Certificates, the Class B-5 Certificates and the
Class B-6 Certificates equals or exceeds 1.55% before giving effect to
distributions on such Distribution Date, (v) the Class B-5 Certificates, if on
such Distribution Date the aggregate percentage interest in the Trust Fund
evidenced by the Class B-5 Certificates and the Class B-6 Certificates equals or
exceeds 1.05% before giving effect to distributions on such Distribution Date
and (vi) the Class B-6 Certificates, if on such Distribution Date the percentage
interest in the Trust Fund evidenced by the Class B-6 Certificates equals or
exceeds 0.70% before giving effect to distributions on such Distribution Date.
Notwithstanding the
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foregoing, if the application of the foregoing on any Distribution Date as
provided in Section 4.01 would result in a distribution in respect of principal
to any Class or Classes of Subordinate Certificates in an amount greater than
the remaining Certificate Principal Balance thereof (any such Class, a "Maturing
Class") then: (a) the amount to be allocated to each Maturing Class shall be
reduced to a level that, when applied as described above, would exactly reduce
the Certificate Principal Balance of such Class to zero and (b) the total amount
of the reductions pursuant to clause (a) above in the amount to be allocated to
the Maturing Class or Classes shall be allocated among the remaining Eligible
Classes on a PRO RATA basis in proportion to the respective outstanding
Certificate Principal Balances thereof prior to the allocation thereto of any of
the amounts described in the preceding sentence. Furthermore, if a Class of
Subordinate Certificates is not an Eligible Class, any amounts allocable to
principal and distributable pursuant to this Section 4.01(b)(ii) will be
distributed among the Classes of Subordinate Certificates that are Eligible
Classes in the manner set forth above.
(c) All distributions made with respect to each Class of
Certificates on each Distribution Date shall be allocated PRO RATA among the
outstanding Certificates in such Class based on their respective Percentage
Interests. Payments in respect of each Class of Certificates on each
Distribution Date will be made to the Holders of the respective Class of record
on the related Record Date (except as otherwise provided in Section 9.01
respecting the final distribution on such Class), based on the aggregate
Percentage Interest represented by their respective Certificates, and shall be
made by wire transfer of immediately available funds to the account of any such
Holder at a bank or other entity having appropriate facilities therefor, if such
Holder shall have so notified the Trustee in writing at least five Business Days
prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of such Holder
appearing in the Certificate Register. The final distribution on each
Certificate will be made in like manner, but only upon presentment and surrender
of such Certificate at the Corporate Trust Office or such other location
specified in the notice to Certificateholders of such final distribution.
Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the Depositor
or the Master Servicer shall have any responsibility therefor except as
otherwise provided by this Agreement or applicable law.
(d) The rights of the Certificateholders to receive distributions in
respect of the Certificates, and all interests of the Certificateholders in such
distributions, shall be as set forth in this Agreement. None of the Holders of
any Class of Certificates, the Trustee or the Master Servicer shall in any way
be responsible or liable to the Holders of any other Class of Certificates in
respect of amounts properly previously distributed on the Certificates.
(e) Except as otherwise provided in Section 9.01, whenever the
Trustee expects that the final distribution with respect to any Class of
Certificates will be made on the next
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Distribution Date, the Trustee shall, no later than five days after the related
Determination Date, mail on such date to each Holder of such Class of
Certificates a notice to the effect that:
(i) the Trustee expects that the final distribution with respect to
such Class of Certificates will be made on such Distribution Date, but
only upon presentation and surrender of such Certificates at the office of
the Trustee therein specified, and
(ii) no interest shall accrue on such Certificates from and after
the end of the related Interest Accrual Period.
Any funds not distributed to any Holder or Holders of Certificates
of such Class on such Distribution Date because of the failure of such Holder or
Holders to tender their Certificates shall, on such date, be set aside and held
in trust by the Trustee and credited to the account of the appropriate
nontendering Holder or Holders. If any Certificates as to which notice has been
given pursuant to this Section 4.01(e) shall not have been surrendered for
cancellation within six months after the time specified in such notice, the
Trustee shall mail a second notice to the remaining non-tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to remaining non-tendering Certificateholders concerning surrender of
their Certificates and shall continue to hold any remaining funds for the
benefit of non-tendering Certificateholders. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in such trust fund. If within one year after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trustee shall pay to Citigroup Global Markets Inc. all such
amounts, and all rights of non-tendering Certificateholders in or to such
amounts shall thereupon cease. No interest shall accrue or be payable to any
Certificateholder on any amount held in trust by the Trustee as a result of such
Certificateholder's failure to surrender its Certificate(s) for final payment
thereof in accordance with this Section 4.01(e).
SECTION 4.02. Statements to Certificateholders.
On each Distribution Date, based, as applicable, on information
provided to it by the Master Servicer and the Special Servicer, the Trustee
shall prepare and make available to each Holder of the Regular Certificates, the
Master Servicer, the Special Servicer and the Rating Agencies, a statement as to
the distributions to be made on such Distribution Date containing the following
information:
(i) the amount of the distribution made on such Distribution Date to
the Holders of Certificates of each such Class allocable to principal;
(ii) the amount of the distribution made on such Distribution Date
to the Holders of Certificates of each such Class allocable to interest;
(iii) the aggregate amount of servicing compensation received by the
Master Servicer in respect of related Due Period and such other customary
information as the
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Trustee deems necessary or desirable, or which a Certificateholder
reasonably requests, to enable Certificateholders to prepare their tax
returns;
(iv) the aggregate amount of P&I Advances for each Loan Group for
such Distribution Date;
(v) the aggregate Stated Principal Balance of the Mortgage Loans and
any REO Properties in each Loan Group at the close of business on such
Distribution Date;
(vi) the number, aggregate principal balance, weighted average
remaining term to maturity and weighted average Mortgage Rate of the
Mortgage Loans in each Loan Group as of the related Due Date;
(vii) the number and aggregate unpaid principal balance of Mortgage
Loans in each Loan Group that are (a) delinquent 30 to 59 days, (b)
delinquent 60 to 89 days, (c) delinquent 90 or more days in each case, as
of the last day of the preceding calendar month, (d) as to which
foreclosure proceedings have been commenced and (e) with respect to which
the related Mortgagor has filed for protection under applicable bankruptcy
laws, with respect to whom bankruptcy proceedings are pending or with
respect to whom bankruptcy protection is in force;
(viii) with respect to any Mortgage Loan in either Loan Group that
became an REO Property during the preceding calendar month, the loan
number of such Mortgage Loan, the unpaid principal balance and the Stated
Principal Balance of such Mortgage Loan as of the date it became an REO
Property;
(ix) the book value and the Stated Principal Balance of any REO
Property as of the close of business on the last Business Day of the
calendar month preceding the Distribution Date;
(x) the aggregate amount of Principal Prepayments made during the
related Prepayment Period;
(xi) the aggregate amount of Realized Losses with respect to the
Mortgage Loans in each Loan Group incurred during the related Prepayment
Period (or, in the case of Bankruptcy Losses allocable to interest, in
respect of the related Due Period), separately identifying whether such
Realized Losses constituted Fraud Losses, Special Hazard Losses or
Bankruptcy Losses;
(xii) the aggregate amount of Extraordinary Trust Fund Expenses
withdrawn from the Collection Account or the Distribution Account for such
Distribution Date;
(xiii) the aggregate Certificate Principal Balance or Notional
Amount of each such Class of Certificates, after giving effect to the
distributions, and allocations of Realized Losses and Extraordinary Trust
Fund Expenses, made on such Distribution Date, separately
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identifying any reduction thereof due to allocations of Realized Losses
and Extraordinary Trust Fund Expenses;
(xiv) the Certificate Factor for each such Class of Certificates
applicable to such Distribution Date;
(xv) the Interest Distribution Amount in respect of each such Class
of Certificates (other than the Class PO Certificates) for such
Distribution Date (separately identifying any reductions in the case of
Subordinate Certificates resulting from the allocation of Realized Losses
allocable to interest and Extraordinary Trust Fund Expenses on such
Distribution Date) and the respective portions thereof, if any, remaining
unpaid following the distributions made in respect of such Certificates on
such Distribution Date;
(xvi) the aggregate amount of any Prepayment Interest Shortfalls for
such Distribution Date, to the extent not covered by payments by the
Master Servicer pursuant to Section 3.24 and the aggregate amount of any
Prepayment Interest Excess for such Distribution Date;
(xvii) the aggregate amount of Relief Act Interest Shortfalls for
such Distribution Date;
(xviii) the then-applicable Bankruptcy Amount, Fraud Loss Amount,
and Special Hazard Amount;
(xix) the Weighted Average Stripped Interest Rate with respect to
each Loan Group for such Distribution Date;
(xx) with respect to any Mortgage Loan as to which foreclosure
proceedings have been concluded, the loan number and unpaid principal
balance of such Mortgage Loan as of the date of such conclusion of
foreclosure proceedings; and
(xxi) the number of Mortgage Loans, the unpaid principal balance of
such Mortgage Loans as of the date of such Final Liquidation and the
amount of proceeds (including Liquidation Proceeds and Insurance Proceeds)
collected in respect of such Mortgage Loans.
The Trustee will make such statement (and, at its option, any
additional files containing the same information in an alternative format)
available each month to Certificateholders, the Master Servicer and the Rating
Agencies via the Trustee's internet website. The Trustee's internet website
shall initially be located at "xxx.xxxxxx.xxx/xxx". Assistance in using the
website can be obtained by calling the Trustee's customer service desk at (800)
934-6802. Parties that are unable to use the above distribution options are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. The Trustee shall have the right to
change the way such statements are distributed in order to make such
distribution more convenient and/or more accessible to the above parties and the
Trustee shall provide timely and adequate notification to all above parties
regarding any such changes.
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In the case of information furnished pursuant to subclauses (i)
through (iii) above, the amounts shall be expressed as a dollar amount per
Single Certificate of the relevant Class.
Within a reasonable period of time after the end of each calendar
year, the Trustee shall forward, upon written request, to each Person who at any
time during the calendar year was a Holder of a Regular Certificate a statement
containing the information set forth in subclauses (i) through (iii) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as from time to time are in force.
On each Distribution Date, the Trustee shall make available to the
Depositor, each Holder of a Residual Certificate and the Master Servicer, a copy
of the reports forwarded to the Regular Certificateholders on such Distribution
Date and a statement setting forth the amounts, if any, actually distributed
with respect to the Residual Certificates, respectively, on such Distribution
Date.
Within a reasonable period of time after the end of each calendar
year, the Trustee shall forward to each Person who at any time during the
calendar year was a Holder of a Residual Certificate a statement setting forth
the amount, if any, actually distributed with respect to the Residual
Certificates, as appropriate, aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be prepared by the Trustee and
furnished to such Holders pursuant to the rules and regulations of the Code as
are in force from time to time.
Upon request, the Trustee shall forward to each Certificateholder,
during the term of this Agreement, such periodic, special, or other reports or
information, whether or not provided for herein, as shall be reasonable with
respect to the Certificateholder, or otherwise with respect to the purposes of
this Agreement, all such reports or information to be provided at the expense of
the Certificateholder in accordance with such reasonable and explicit
instructions and directions as the Certificateholder may provide. For purposes
of this Section 4.02, the Trustee's duties are limited to the extent that the
Trustee receives timely reports, including Remittance Reports, as required from
the Master Servicer and the Special Servicer.
On each Distribution Date, the Trustee shall make available to
Bloomberg Financial Markets, L.P. ("Bloomberg") cusip level factors for each
class of Certificates as of such Distribution Date, using a format and media
mutually acceptable to the Trustee and Bloomberg.
SECTION 4.03. Remittance Reports; P&I Advances.
(a) On the second Business Day following each Determination Date,
the Master Servicer shall deliver to the Trustee by telecopy (or by such other
means as the Master Servicer and the Trustee may agree from time to time) a
Remittance Report with respect to the related Distribution Date. Such Remittance
Report will include (i) the amount of P&I Advances to be made by the Master
Servicer in respect of the related Distribution Date, the aggregate amount of
P&I Advances
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outstanding after giving effect to such P&I Advances, and the aggregate amount
of Nonrecoverable P&I Advances in respect of such Distribution Date and (ii)
such other information with respect to the Mortgage Loans as the Trustee may
reasonably require to perform the calculations necessary to make the
distributions contemplated by Section 4.01 and to prepare the statements to
Certificateholders contemplated by Section 4.02. The Trustee shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Master Servicer or the Special Servicer.
(b) The amount of P&I Advances to be made by the Master Servicer or
the Special Servicer for any Distribution Date shall equal, subject to Section
4.03(d), the sum of (i) the aggregate amount of Monthly Payments (with each
interest portion thereof net of the related Servicing Fee), due on the related
Due Date in respect of the Mortgage Loans or the Specially Serviced Mortgage
Loans, as applicable, which Monthly Payments were delinquent as of the close of
business on the related Determination Date and (ii) with respect to each REO
Property, which REO Property was acquired during or prior to the related Due
Period and as to which REO Property an REO Disposition did not occur during the
related Due Period, an amount equal to the excess, if any, of the REO Imputed
Interest on such REO Property for the most recently ended calendar month, over
the net income from such REO Property transferred to the Distribution Account
pursuant to Section 3.23 for distribution on such Distribution Date.
On or before 12:00 p.m. New York time on the Master Servicer
Remittance Date, the Master Servicer shall remit in immediately available funds
to the Trustee for deposit in the Distribution Account an amount equal to the
aggregate amount of P&I Advances, if any, to be made in respect of the Mortgage
Loans and REO Properties for the related Distribution Date either (i) from its
own funds or (ii) from the Collection Account, to the extent of funds held
therein for future distribution (in which case, it will cause to be made an
appropriate entry in the records of Collection Account that amounts held for
future distribution have been, as permitted by this Section 4.03, used by the
Master Servicer in discharge of any such P&I Advance) or (iii) in the form of
any combination of (i) and (ii) aggregating the total amount of P&I Advances to
be made by the Master Servicer with respect to the Mortgage Loans and REO
Properties. Any amounts held for future distribution and so used shall be
appropriately reflected in the Master Servicer's records and replaced by the
Master Servicer by deposit in the Collection Account on or before any future
Master Servicer Remittance Date to the extent that the Available Distribution
Amount for the related Distribution Date (determined without regard to P&I
Advances to be made on the Master Servicer Remittance Date) shall be less than
the total amount that would be distributed to the Classes of Certificateholders
pursuant to Section 4.01 on such Distribution Date if such amounts held for
future distributions had not been so used to make P&I Advances. The Trustee will
provide notice to the Master Servicer by telecopy by the close of business on
the Master Servicer Remittance Date in the event that the amount remitted by the
Master Servicer to the Trustee on such Master Servicer Remittance Date is less
than the P&I Advances required to be made by the Master Servicer for the related
Distribution Date.
(c) The obligation of the Master Servicer to make such P&I Advances
is mandatory, notwithstanding any other provision of this Agreement but subject
to (d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until a Final Recovery Determination in connection therewith or the
removal thereof from REMIC I pursuant to any applicable provision of this
Agreement, except as otherwise provided in this Section.
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(d) Notwithstanding anything herein to the contrary, no P&I Advance
shall be required to be made hereunder by the Master Servicer if such P&I
Advance would, if made, constitute a Nonrecoverable P&I Advance. The
determination by the Master Servicer that it has made a Nonrecoverable P&I
Advance or that any proposed P&I Advance, if made, would constitute a
Nonrecoverable P&I Advance, shall be evidenced by an Officers' Certificate of
the Master Servicer delivered to the Depositor and the Trustee.
(e) With respect to each of the obligations of the Master Servicer
set forth in this Section 4.03 and the Specially Serviced Mortgage Loans, the
Special Servicing Agreement provides that such obligations will be assumed
directly by the Special Servicer pursuant to the terms of the Special Servicing
Agreement and any references to the Master Servicer in Section 4.03 in this
Agreement shall refer, in the Special Servicing Agreement, to the Special
Servicer with respect to the Specially Serviced Mortgage Loans.
SECTION 4.04. Allocation of Extraordinary Trust Fund Expenses and
Realized Losses.
(a) Prior to each Distribution Date, the Master Servicer shall
determine as to each Mortgage Loan and REO Property: (i) the total amount of
Realized Losses, if any, incurred in connection with any Final Recovery
Determinations made during the related Prepayment Period; (ii) whether and the
extent to which such Realized Losses constituted Fraud Losses or Special Hazard
Losses; and (iii) the respective portions of such Realized Losses allocable to
interest and allocable to principal. Prior to each Distribution Date, the Master
Servicer shall also determine as to each Mortgage Loan: (A) the total amount of
Realized Losses, if any, incurred in connection with any Deficient Valuations
made during the related Prepayment Period; and (B) the total amount of Realized
Losses, if any, incurred in connection with Debt Service Reductions in respect
of Monthly Payments due during the related Due Period. The information described
in the two preceding sentences that is to be supplied by the Master Servicer
shall be evidenced by an Officers' Certificate delivered to the Trustee by the
Master Servicer prior to the Determination Date immediately following the end of
(x) in the case of Bankruptcy Losses allocable to interest, the Due Period
during which any such Realized Loss was incurred, and (y) in the case of all
other Realized Losses, the Prepayment Period during which any such Realized Loss
was incurred.
(b) All Realized Losses on the Mortgage Loans (other than Excess
Losses) shall be allocated by the Trustee on each Distribution Date as follows:
first, to the Class B-6 Certificates; second, to the Class B-5 Certificates;
third, to the Class B-4 Certificates; fourth, to the Class B-3 Certificates;
fifth, to the Class B-2 Certificates; and sixth, to the Class B-1 Certificates,
in each case until the Certificate Principal Balance thereof has been reduced to
zero. Thereafter, upon the reduction of the Certificate Principal Balances of
the Subordinate Certificates to zero, if Realized Losses are on a Mortgage Loan
or Mortgage Loan Component (other than a Class PO Mortgage Loan), such Realized
Losses will be allocated on any Distribution Date first, to any amounts on
deposit in the Excess Diverted Interest Reserve Account and second, to the Class
IA-CB1 Certificates, if the Realized Loss is on a Group I Mortgage Loan or Group
I Mortgage Loan Component in Subgroup IA-1, to the Class IA-CB2 Certificates, if
the Realized Loss is on a Group I Mortgage Loan Component in Subgroup IA-2, to
the Class IA-CB3 Certificates, if the Realized
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Loss is on a Group I Mortgage Loan or Group I Mortgage Loan Component in
Subgroup IA-3, to the Class IIA-CB1 Certificates, if the Realized Loss is on a
Group II Mortgage Loan or Group II Mortgage Loan Component in Subgroup IIA-1, to
the Class IIA-CB2 Certificates, if the Realized Loss is on a Group II Mortgage
Loan Component in Subgroup IIA-2, to the Class IIA-CB3 Certificates, if the
Realized Loss is on a Group II Mortgage Loan or Group II Mortgage Loan Component
in Subgroup IIA-3, to the Class IIIA-CB1 Certificates, if the Realized Loss is
on a Group III Mortgage Loan or Group III Mortgage Loan Component in Subgroup
IIIA-1, to the Class IIIA-CB2 Certificates, if the Realized Loss is on a Group
III Mortgage Loan or Group III Mortgage Loan Component in Subgroup IIIA-2, to
the Class IVA-1 Certificates, if the Realized Loss is on a Group IV Mortgage
Loan or Group IV Mortgage Loan Component in Subgroup IVA-1, and to the Class
IVA-2 Certificates, if the Realized Loss is on a Group IV Mortgage Loan or Group
IV Mortgage Loan Component in Subgroup IVA-2, in each case, to the extent not
covered by the Subordinate Certificates. If Realized Losses are on a Class PO
Mortgage Loan, such Realized Losses will be allocated first, to any amounts on
deposit in the Excess Diverted Interest Reserve Account, second, to the Class
PO-1 Certificates, if the Realized Loss is on a Group I Mortgage Loan, to the
Class PO-2 Certificates, if the Realized Loss is on a Group II Mortgage Loan, to
the Class PO-3 Certificates, if the Realized Loss is on a Group III Mortgage
Loan, or to the Class PO-4 Certificates, if the Realized Loss is on a Group IV
Mortgage Loan, in each case, in an amount equal to the related Class PO
Percentage of the Realized Losses and third, the remainder of the Realized
Losses will be allocated on any Distribution Date to the Class IA-CB1
Certificates, if the Realized Loss is on a Group I Mortgage Loan or Group I
Mortgage Loan Component in Subgroup IA-1, to the Class IA-CB2 Certificates, if
the Realized Loss is on a Group I Mortgage Loan Component in Subgroup IA-2, to
the Class IA-CB3 Certificates, if the Realized Loss is on a Group I Mortgage
Loan or Group I Mortgage Loan Component in Subgroup IA-3, to the Class IIA-CB1
Certificates, if the Realized Loss is on a Group II Mortgage Loan or Group II
Mortgage Loan Component in Subgroup IIA-1, to the Class IIA-CB2 Certificates, if
the Realized Loss is on a Group II Mortgage Loan Component in Subgroup IIA-2, to
the Class IIA-CB3 Certificates, if the Realized Loss is on a Group II Mortgage
Loan or Group II Mortgage Loan Component in Subgroup IIA-3, to the Class
IIIA-CB1 Certificates, if the Realized Loss is on a Group III Mortgage Loan or
Group III Mortgage Loan Component in Subgroup IIIA-1, to the Class IIIA-CB2
Certificates, if the Realized Loss is on a Group III Mortgage Loan or Group III
Mortgage Loan Component in Subgroup IIIA-2, to the Class IVA-1 Certificates, if
the Realized Loss is on a Group IV Mortgage Loan or Group IV Mortgage Loan
Component in Subgroup IVA-1, and to the Class IVA-2 Certificates, if the
Realized Loss is on a Group IV Mortgage Loan or Group IV Mortgage Loan Component
in Subgroup IVA-2, in each case, to the extent not covered by the Subordinate
Certificates. If a Realized Loss is allocated to the Excess Diverted Interest
Reserve Account or unpaid interest shortfalls exist on the Class A Certificates
related to the Undercollateralizated Subgroup or Subgroups, the Trustee shall
pay the sum of the Subgroup IA-1 Excess Diverted Interest Reserve Deposit, the
Subgroup IA-2 Excess Diverted Interest Reserve Deposit, the Subgroup IA-3 Excess
Diverted Interest Reserve Deposit, the Subgroup IIA-1 Excess Diverted Interest
Reserve Deposit, the Subgroup IIA-2 Excess Diverted Interest Reserve Deposit,
the Subgroup IIA-3 Excess Diverted Interest Reserve Deposit, the Subgroup IIIA-1
Excess Diverted Interest Reserve Deposit, the Subgroup IIIA-2 Excess Diverted
Interest Reserve Deposit, the Subgroup IVA-1 Excess Diverted Interest Reserve
Deposit and the Subgroup IVA-2 Excess Diverted Interest Reserve Deposit first,
concurrently, on a PRO RATA basis (based on the aggregate unpaid interest
shortfall in the related Subgroups) to the Available Distribution Amount for the
Subgroups to which the unpaid interest shortfall relates until the aggregate
amount of such
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interest shortfalls are reduced to zero and second, concurrently, on a PRO RATA
basis (based on the aggregate principal balance of Realized Losses in the
related Subgroups) to the Available Distribution Amount for the Subgroups to
which the Realized Loss relates until the aggregate principal balance of such
Realized Losses are reduced to zero.
Excess Losses on a Mortgage Loan or Mortgage Loan Component (other
than a Class PO Mortgage Loan) shall be allocated on any Distribution Date by
allocating the related Senior Percentage of the Excess Loss to the Class IA-CB1
Certificates, if the Realized Loss is on a Group I Mortgage Loan or Group I
Mortgage Loan Component in Subgroup IA-1, to the Class IA-CB2 Certificates, if
the Realized Loss is on a Group I Mortgage Loan Component in Subgroup IA-2, to
the Class IA-CB3 Certificates, if the Realized Loss is on a Group I Mortgage
Loan or Group I Mortgage Loan Component in Subgroup IA-3, to the Class IIA-CB1
Certificates, if the Realized Loss is on a Group II Mortgage Loan or Group II
Mortgage Loan Component in Subgroup IIA-1, to the Class IIA-CB2 Certificates, if
the Realized Loss is on a Group II Mortgage Loan Component in Subgroup IIA-2, to
the Class IIA-CB3 Certificates, if the Realized Loss is on a Group II Mortgage
Loan or Group II Mortgage Loan Component in Subgroup IIA-3, to the Class
IIIA-CB1 Certificates, if the Realized Loss is on a Group III Mortgage Loan or
Group III Mortgage Loan Component in Subgroup IIIA-1, to the Class IIIA-CB2
Certificates, if the Realized Loss is on a Group III Mortgage Loan or Group III
Mortgage Loan Component in Subgroup IIIA-2, to the Class IVA-1 Certificates, if
the Realized Loss is on a Group IV Mortgage Loan or Group IV Mortgage Loan
Component in Subgroup IVA-1, and to the Class IVA-2 Certificates, if the
Realized Loss is on a Group IV Mortgage Loan or Group IV Mortgage Loan Component
in Subgroup IVA-2, and the Subgroup IA-1 Subordinate Percentage, the Subgroup
IA-2 Subordinate Percentage, the Subgroup IA-3 Subordinate Percentage, the
Subgroup IIA-1 Subordinate Percentage, the Subgroup IIA-2 Subordinate
Percentage, the Subgroup IIA-3 Subordinate Percentage, the Subgroup IIIA-1
Subordinate Percentage, the Subgroup IIIA-2 Subordinate Percentage, the Subgroup
IVA-1 Subordinate Percentage or the Subgroup IVA-2 Subordinate Percentage, as
applicable, of the Excess Loss to the Subordinate Certificates. Excess Losses on
a Class PO Mortgage Loan will be allocated to the Class PO-1 Certificates, if
the Realized Loss is on a Group I Mortgage Loan, to the Class PO-2 Certificates,
if the Realized Loss is on a Group II Mortgage Loan, to the Class PO-3
Certificates, if the Realized Loss is on a Group III Mortgage Loan, and to the
Class PO-4 Certificates, if the Realized Loss is on a Group IV Mortgage Loan, in
an amount equal to the related Class PO Percentage of the Excess Losses and the
remainder of the Excess Losses will be allocated on any Distribution Date (i)
the related Senior Percentage of the Excess Loss to the Class IA-CB1
Certificates, if the Realized Loss is on a Mortgage Loan or Mortgage Loan
Component in Subgroup IA-1, to the Class IA-CB2 Certificates, if the Realized
Loss is on a Mortgage Loan Component in Subgroup IA-2, to the Class IA-CB3
Certificates, if the Realized Loss is on a Mortgage Loan or Mortgage Loan
Component in Subgroup IA-3, to the Class IIA-CB1 Certificates, if the Realized
Loss is on a Mortgage Loan or Mortgage Loan Component in Subgroup IIA-1, to the
Class IIA-CB2 Certificates, if the Realized Loss is on a Mortgage Loan Component
in Subgroup IIA-2, to the Class IIA-CB3 Certificates, if the Realized Loss is on
a Mortgage Loan or Mortgage Loan Component in Subgroup IIA-3, to the Class
IIIA-CB1 Certificates, if the Realized Loss is on a Mortgage Loan or Mortgage
Loan Component in Subgroup IIIA-1, to the Class IIIA-CB2 Certificates, if the
Realized Loss is on a Mortgage Loan or Mortgage Loan Component in Subgroup
IIIA-2, to the Class IVA-1 Certificates, if the Realized Loss is on a Mortgage
Loan or Mortgage Loan Component in Subgroup IVA-1, and to the Class IVA-2
Certificates, if the Realized Loss is on a Mortgage Loan or Mortgage
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Loan Component in Subgroup IVA-2 and (ii) the Subgroup IA-1 Subordinate
Percentage, the Subgroup IA-2 Subordinate Percentage, the Subgroup IA-3
Subordinate Percentage, the Subgroup IIA-1 Subordinate Percentage, the Subgroup
IIA-2 Subordinate Percentage, the Subgroup IIA-3 Subordinate Percentage, the
Subgroup IIIA-1 Subordinate Percentage, the Subgroup IIIA-2 Subordinate
Percentage, the Subgroup IVA-1 Subordinate Percentage or the Subgroup IVA-2
Subordinate Percentage, as applicable, of the Excess Loss to the Subordinate
Certificates.
Extraordinary Trust Fund Expenses shall be allocated on any
Distribution Date as follows: first, to the Class B-6 Certificates; second, to
the Class B-5 Certificates; third, to the Class B-4 Certificates; fourth, to the
Class B-3 Certificates; fifth, to the Class B-2 Certificates; and sixth, to the
Class B-1 Certificates, in each case until the Certificate Principal Balance of
the related Class has been reduced to zero. Thereafter, the Extraordinary Trust
Fund Expenses will be allocated on any Distribution Date among the Group I
Senior Certificates (other than the Class XS-1 Certificates), the Group II
Senior Certificates (other than the Class XS-2 Certificates), the Group III
Senior Certificates (other than the Class XS-3 Certificates) or the Group IV
Senior Certificates (other than the Class XS-4 Certificates) , as applicable, on
a PRO RATA basis.
As used herein, an allocation of a Realized Loss or Extraordinary
Trust Fund Expense on a "PRO RATA basis" among two or more specified Classes of
Certificates means an allocation on a PRO RATA basis, among the various Classes
so specified, to each such Class of Certificates on the basis of their then
outstanding Certificate Principal Balances prior to giving effect to
distributions to be made on such Distribution Date. All Realized Losses and all
other losses allocated to a Class of Certificates hereunder will be allocated
among the Certificates of such Class in proportion to the Percentage Interests
evidenced thereby.
(c) Notwithstanding anything to the contrary herein, in no event
shall the Certificate Principal Balance of a Certificate be reduced more than
once in respect of any particular amount both (i) allocable to such Certificate
in respect of Realized Losses or Extraordinary Trust Fund Expenses pursuant to
Section 4.04 and (ii) payable to the Holder of such Certificate pursuant to
Section 4.01(a) as a portion of the related Senior Principal Distribution
Amount, the related Class PO Principal Distribution Amount or the Subordinate
Principal Distribution Amount, as the case may be.
(d) Allocation of Realized Losses and Extraordinary Trust Fund
Expenses to REMIC I Regular Interests and REMIC II Regular Interests. Realized
Losses and Excess Losses shall be applied after all distributions have been made
on each Distribution Date to the REMIC I Regular Interests as follows:
WITH RESPECT TO REALIZED LOSSES AND EXCESS LOSSES ON MORTGAGE LOANS
IN LOAN GROUP I:
(a) Realized Losses and Excess Losses on Class PO Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT-1 and REMIC I Regular
Xxxxxxxx X-XX-XX0, in the same proportion as the Non-Class PO Percentage and the
Class PO-Percentage, respectively;
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(b) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 5.50% per annum and less
than 6.75% per annum shall be allocated to REMIC I Regular Interest I-LT-1 and
REMIC I Regular Interest I-LT-2, in the same proportion as the Applicable
Fraction divides such Mortgage Loan;
(c) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 6.75% per annum and less
than 7.50% per annum shall be allocated to REMIC I Regular Interest I-LT-2 and
REMIC I Regular Interest I-LT-3, in the same proportion as the Applicable
Fraction divides such Mortgage Loan; and
(d) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 7.50% per annum shall be
allocated to REMIC I Regular Interest I-LT-3.
WITH RESPECT TO REALIZED LOSSES AND EXCESS LOSSES ON MORTGAGE
LOANS IN LOAN GROUP II:
(a) Realized Losses and Excess Losses on Class PO Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT-4 and REMIC I Regular
Xxxxxxxx X-XX-XX0, in the same proportion as the Non-Class PO Percentage and the
Class PO-Percentage, respectively;
(b) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 5.50% per annum and less
than 6.75% per annum shall be allocated to REMIC I Regular Interest I-LT-4 and
REMIC I Regular Interest I-LT-5, in the same proportion as the Applicable
Fraction divides such Mortgage Loan;
(c) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 6.75% per annum and less
than 8.00% per annum shall be allocated to REMIC I Regular Interest I-LT-5 and
REMIC I Regular Interest I-LT-6, in the same proportion as the Applicable
Fraction divides such Mortgage Loan; and
(d) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 8.00% per annum shall be
allocated to REMIC I Regular Interest I-LT-6.
WITH RESPECT TO REALIZED LOSSES AND EXCESS LOSSES ON MORTGAGE LOANS
IN LOAN GROUP III:
(a) Realized Losses and Excess Losses on Class PO Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT-7 and REMIC I Regular
Xxxxxxxx X-XX-XX0, in the same proportion as the Non-Class PO Percentage and the
Class PO-Percentage, respectively;
(b) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 5.00% per annum and less
than 6.50% per annum shall be allocated to REMIC I Regular Interest I-LT-7 and
REMIC I Regular Interest I-LT-8, in the same proportion as the Applicable
Fraction divides such Mortgage Loan; and
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(c) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 6.50% per annum shall be
allocated to REMIC I Regular Interest I-LT-8.
WITH RESPECT TO REALIZED LOSSES AND EXCESS LOSSES ON MORTGAGE LOANS
IN LOAN GROUP IV:
(a) Realized Losses and Excess Losses on Class PO Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT-9 and REMIC I Regular
Xxxxxxxx X-XX-XX0, in the same proportion as the Non-Class PO Percentage and the
Class PO-Percentage, respectively;
(b) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 6.50% per annum and less
than 7.00% per annum shall be allocated to REMIC I Regular Interest I-LT-9 and
REMIC I Regular Interest I-LT-10, in the same proportion as the Applicable
Fraction divides such Mortgage Loan; and
(c) Realized Losses and Excess Losses on Mortgage Loans with an
Expense Adjusted Mortgage Rate greater than or equal to 7.00% per annum shall be
allocated to REMIC I Regular Interest I-LT-10.
Realized Losses and Excess Losses shall be applied after all distributions have
been made on each Distribution Date to the REMIC II Regular Interests first, to
each REMIC II Regular Interest ending with the designation "A", as applicable,
so that the Uncertificated Balance of each such REMIC II Regular Interest is
equal to 0.01% of the excess of (x) the aggregate Scheduled Principal Balance of
the Mortgage Loans and Mortgage Loan Components in the Corresponding Subgroup
over (y) the current Certificate Principal Balance of the Class A Certificate in
the Corresponding Subgroup (except that if any such excess is a larger number
than in the preceding distribution period, the least amount of Realized Losses
and Excess Losses shall be applied to such REMIC II Regular Interests such that
the REMIC II Subordinated Balance Ratio is maintained); and second, any
remaining Realized Losses and Excess Losses from each Loan Group shall be
allocated to each REMIC II Regular Interest ending with the designation "B", as
applicable (except that if a Realized Loss is recognized with respect to a Class
PO Mortgage Loan in any of the Group I Mortgage Loans, Group II Mortgage Loans,
Group III Mortgage Loans or Group IV Mortgage Loans, the applicable portion of
such Realized Loss will be allocated to REMIC II Regular Interest II-LT-PO1,
REMIC II Regular Interest II-LT-PO2, REMIC II Regular Interest II-LT-PO3 and
REMIC II Regular Interest II-LT-PO4, respectively).
SECTION 4.05. Compliance with Withholding Requirements.
Notwithstanding any other provision of this Agreement, the Trustee
shall comply with all federal withholding requirements respecting payments to
Certificateholders of interest or original issue discount that the Trustee
reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.
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SECTION 4.06. Distributions on the REMIC I Regular Interests and
REMIC II Regular Interests.
Distributions of principal shall be deemed to be made to the REMIC I
Regular Interests, in each case from the related Loan Group, as follows:
WITH RESPECT TO THE MORTGAGE LOANS IN LOAN GROUP I:
(a) Principal received on Class PO Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT-1 and REMIC I Regular Xxxxxxxx X-XX-XX0, in the
same proportion as the Non-Class PO Percentage and the Class PO-Percentage,
respectively;
(b) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 5.50% per annum and less than 6.75% per
annum shall be allocated to REMIC I Regular Interest I-LT-1 and REMIC I Regular
Interest I-LT-2, in the same proportion as the Applicable Fraction divides such
Mortgage Loan;
(c) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 6.75% per annum and less than 7.50% per
annum shall be allocated to REMIC I Regular Interest I-LT-2 and REMIC I Regular
Interest I-LT-3, in the same proportion as the Applicable Fraction divides such
Mortgage Loan; and
(d) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 7.50% per annum shall be allocated to
REMIC I Regular Interest I-LT-3.
WITH RESPECT TO THE MORTGAGE LOANS IN LOAN GROUP II:
(a) Principal received on Class PO Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT-4 and REMIC I Regular Xxxxxxxx X-XX-XX0, in the
same proportion as the Non-Class PO Percentage and the Class PO-Percentage,
respectively;
(b) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 5.50% per annum and less than 6.75% per
annum shall be allocated to REMIC I Regular Interest I-LT-4 and REMIC I Regular
Interest I-LT-5, in the same proportion as the Applicable Fraction divides such
Mortgage Loan;
(c) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 6.75% per annum and less than 8.00% per
annum shall be allocated to REMIC I Regular Interest I-LT-5 and REMIC I Regular
Interest I-LT-6, in the same proportion as the Applicable Fraction divides such
Mortgage Loan; and
(d) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 8.00% per annum shall be allocated to
REMIC I Regular Interest I-LT-6.
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WITH RESPECT TO THE MORTGAGE LOANS IN LOAN GROUP III:
(a) Principal received on Class PO Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT-7 and REMIC I Regular Xxxxxxxx X-XX-XX0, in the
same proportion as the Non-Class PO Percentage and the Class PO-Percentage,
respectively;
(b) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 5.00% per annum and less than 6.50% per
annum shall be allocated to REMIC I Regular Interest I-LT-7 and REMIC I Regular
Interest I-LT-8, in the same proportion as the Applicable Fraction divides such
Mortgage Loan; and
(c) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 6.50% per annum shall be allocated to
REMIC I Regular Interest I-LT-8.
WITH RESPECT TO THE MORTGAGE LOANS IN LOAN GROUP IV:
(a) Principal received on Class PO Mortgage Loans shall be allocated
to REMIC I Regular Interest I-LT-9 and REMIC I Regular Xxxxxxxx X-XX-XX0, in the
same proportion as the Non-Class PO Percentage and the Class PO-Percentage,
respectively;
(b) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 6.50% per annum and less than 7.00% per
annum shall be allocated to REMIC I Regular Interest I-LT-9 and REMIC I Regular
Interest I-LT-10, in the same proportion as the Applicable Fraction divides such
Mortgage Loan; and
(c) Principal received on Mortgage Loans with an Expense Adjusted
Mortgage Rate greater than or equal to 7.00% per annum shall be allocated to
REMIC I Regular Interest I-LT-10.
Distributions of principal shall be deemed to be made to the REMIC
II Regular Interests, in each case from the related Loan Group, first, to each
REMIC II Regular Interest ending with the designation "A", as applicable, so
that the Uncertificated Balance of each such REMIC II Regular Interest is equal
to 0.01% of the excess of (x) the aggregate Scheduled Principal Balance of the
Mortgage Loans and Mortgage Loan Components in the Corresponding Subgroup over
(y) the current Certificate Principal Balance of the Class A Certificate in the
Corresponding Subgroup (except that if any such excess is a larger number than
in the preceding distribution period, the least amount of principal shall be
distributed to such REMIC II Regular Interests such that the REMIC II
Subordinated Balance Ratio is maintained); and second, any remaining principal
in each Loan Group to each REMIC II Regular Interest ending with the designation
"B", as applicable, as applicable (provided that a portion of the remaining
principal equal to the Class PO Principal Distribution Amount attributable to
the Group I Mortgage Loans, the Class PO Principal Distribution Amount
attributable to the Group II Mortgage Loans, the Class PO Principal Distribution
Amount attributable to the Group III Mortgage Loans and the Class PO Principal
Distribution Amount attributable to the Group IV Mortgage Loans will be
distributed to REMIC II
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Regular Interest II-LT-PO1, REMIC II Regular Interest II-LT-PO2, REMIC II
Regular Interest II-LTPO3 and REMIC I Regular Xxxxxxxx XX-XX0, respectively).
SECTION 4.07. Commission Reporting.
(a) The Trustee and the Master Servicer shall reasonably cooperate
with the Depositor in connection with satisfying the reporting requirements
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
Trustee shall prepare and file (via the Securities and Exchange Commission's
Electronic Data Gathering and Retrieval System) on behalf of the Trust Fund any
Forms 8-K and 10-K (and the Master Servicer shall sign any Form 10-K) customary
for similar securities as required by the Exchange Act and the Rules and
Regulations of the Securities and Exchange Commission thereunder.
(b) Each Form 8-K shall be filed by the Trustee within 15 days after
each Distribution Date, with a copy of the statement to the Certificateholders
for such Distribution Date as an exhibit thereto. Prior to March 30th of each
year (or such earlier date as may be required by the Exchange Act and the Rules
and Regulations of the Securities and Exchange Commission), the Trustee shall
file a Form 10-K, in substance as required by applicable law or applicable
Security and Exchange Commission staff's interpretations. Such Form 10-K shall
include as exhibits the Master Servicer's annual statement of compliance
described under Section 3.20 and the accountant's report described under Section
3.21, in each case to the extent they have been timely delivered to the Trustee.
The Trustee shall have no liability with respect to (a) any failure to properly
prepare or file such periodic reports resulting from or relating to the
Trustee's inability or failure to obtain any information not resulting from its
own negligence, willful misconduct or bad faith or (b) any inaccuracy in such
periodic reports resulting from incorrect information provided to the Trustee by
the Master Servicer in a Remittance Report or otherwise. The Form 10-K shall
also include a certification in the form attached hereto as Exhibit J-1 (the
"Certification"), which shall be signed by the senior officer of the Master
Servicer in charge of servicing.
(c) In addition, the Trustee shall sign a certification (in the form
attached hereto as Exhibit J-2) for the benefit of the Master Servicer and its
officers, directors and Affiliates regarding certain aspects of the
Certification (the "Trustee Certification") (provided, however, that the Trustee
shall not undertake an analysis of the accountant's report attached as an
exhibit to the Form 10-K). Such certification shall be delivered to the Master
Servicer no later than the 20th day prior to the latest date on which the Form
10-K is permitted to be filed, without regard to extension (or if such day is
not a Business Day, the immediately preceding Business Day) and the Master
Servicer shall deliver the Certification to be filed to the Trustee no later
than the 10th day prior to the latest date on which the Form 10-K is permitted
to be filed, without regard to extension (or if such day is not a Business Day,
the immediately preceding Business Day).
In addition, (i) the Trustee shall, subject to the provisions of
Sections 8.01 and 8.02 hereof, indemnify and hold harmless the Depositor, the
Master Servicer and each of its officers, directors and Affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon (a) a breach of the Trustee's obligations under
this Section 4.07(c), (b) the Trustee's negligence, bad faith or willful
misconduct in connection therewith or (c) any inaccuracy in the
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Trustee Certification and (ii) the Master Servicer shall indemnify and hold
harmless the Depositor, the Trustee and their respective officers, directors and
Affiliates from and against any actual losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of or based upon (a) the failure of the
Master Servicer to timely deliver the Certification or (b) any material
misstatement in the Certification. If the indemnification provided for herein is
unavailable or insufficient to hold harmless the Depositor, then (i) the Trustee
agrees that it shall contribute to the amount paid or payable by the Depositor
as a result of the losses, claims, damages or liabilities of the Depositor in
such proportion as is appropriate to reflect the relative fault of the Depositor
on the one hand and the Trustee on the other in connection with a breach of the
Trustee's obligations under this Section 4.07(c) or the Trustee's negligence,
bad faith or willful misconduct in connection therewith and (ii) the Master
Servicer agrees that it shall contribute to the amount paid or payable by the
Depositor as a result of the losses, claims, damages or liabilities of the
Depositor in such proportion as is appropriate to reflect the relative fault of
the Depositor on the one hand and the Master Servicer on the other in connection
with a breach of the Master Servicer's obligations under this Section 4.07(c) or
the Master Servicer's negligence, bad faith or willful misconduct in connection
therewith.
(d) Upon any filing with the Securities and Exchange Commission, the
Trustee shall promptly deliver to the Depositor and the Master Servicer a copy
of any executed report, statement or information.
(e) Prior to January 30th of the first year in which the Trustee is
able to do so under applicable law, the Trustee shall file a Form 15 Suspension
Notification with respect to the Trust Fund.
(f) To the extent that, following the Closing Date, the Depositor
certifies that reports and certifications differing from those required under
this Section 4.07 comply with the reporting requirements under the Exchange Act,
the Trustee and the Master Servicer hereby agree that they will reasonably
cooperate to amend the provisions of this Section 4.07 in order to comply with
such amended reporting requirements and such amendment of this Section 4.07. Any
such amendment may result in the reduction of the reports filed by the Depositor
under the Exchange Act. Notwithstanding the foregoing, the parties hereto shall
not be obligated to enter into any amendment pursuant to this Section 4.07 that
adversely affects its obligations and immunities under this Agreement.
SECTION 4.08. Excess Diverted Interest Reserve Account.
(a) No later than the Closing Date, the Trustee shall establish and
maintain with itself, a separate, segregated trust account titled, "Excess
Diverted Interest Reserve Account, "U.S. Bank National Association, as Trustee,
in trust for the registered holders of Citigroup Mortgage Loan Trust Inc.,
Mortgage Pass-Through Certificates, Series 2004-NCM2."
(b) On each Distribution Date as to which there is an Excess
Diverted Interest Reserve Amount payable to a Class of Class A Certificates, the
Trustee shall deposit into the Excess Diverted Interest Reserve Account the
amount of such Excess Diverted Interest Reserve Amount, rather than distributing
such amounts to the Class R Certificateholders. On each such Distribution
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Date, the Trustee shall hold all such amounts for the benefit of the Holders of
the Class A Certificates, and will distribute such amounts to the Holders of the
Class A Certificates, in the amounts and priorities set forth in Section 4.01.
(c) For federal and state income tax purposes, the Excess Diverted
Interest Reserve Account will be a "qualified reserve fund" within the meaning
of Code Section 860(G)(7)(B).
(d) At the written direction of the Holders of a majority in
Percentage Interest in the Class R Certificates, the Trustee shall direct any
depository institution maintaining the Excess Diverted Interest Reserve Account
to invest the funds in such account in one or more Permitted Investments bearing
interest or sold at a discount, and maturing, unless payable on demand, (i) no
later than the Business Day immediately preceding the date on which such funds
are required to be withdrawn from such account pursuant to this Agreement, if a
Person other than the Trustee or an Affiliate manages or advises such
investment, and (ii) no later than the date on which such funds are required to
be withdrawn from such account pursuant to this Agreement, if the Trustee or an
Affiliate manages or advises such investment. Interest earned on such investment
shall be deposited into the Excess Diverted Interest Reserve Account.
(f) For federal tax return and information reporting, the right of
the Holders of the Class A Certificates to receive payments from the Excess
Diverted Interest Reserve Account in respect of any Excess Diverted Interest
Reserve Amount shall be assigned a value of zero.
(g) On the final Distribution Date, all Excess Diverted Interest
Reserve Amounts remaining in the Excess Diverted Interest Reserve Account, if
any, shall be paid to the Holders of the Class R Certificates.
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ARTICLE V
THE CERTIFICATES
SECTION 5.01. The Certificates.
(a) The Certificates in the aggregate will represent the entire
beneficial ownership interest in the Mortgage Loans and all other assets
included in REMIC I. At the Closing Date, the aggregate Certificate Principal
Balance of the Certificates will equal the aggregate Stated Principal Balance of
the Mortgage Loans.
The Certificates will be substantially in the forms annexed hereto
as Exhibits A-1 through A-24. The Certificates of each Class will be issuable in
registered form only, in denominations of authorized Percentage Interests as
described in the definition thereof. Each Certificate will share ratably in all
rights of the related Class.
Upon original issue, the Certificates shall be executed,
authenticated and delivered by the Trustee to or upon the order of the
Depositor. The Certificates shall be executed and attested by manual or
facsimile signature on behalf of the Trustee by an authorized signatory.
Certificates bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Trustee shall bind the Trustee,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Certificates or did not
hold such offices at the date of such Certificates. No Certificate shall be
entitled to any benefit under this Agreement or be valid for any purpose, unless
there appears on such Certificate a certificate of authentication substantially
in the form provided herein executed by the Trustee by manual signature, and
such certificate of authentication shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.
(b) The Class A Certificates, the Class XS Certificates, the Class
PO Certificates, the Class B-1 Certificates, the Class B-2 Certificates and the
Class B-3 Certificates shall initially be issued as one or more Certificates
held by the Book-Entry Custodian or, if appointed to hold such Certificates as
provided below, the Depository and registered in the name of the Depository or
its nominee and, except as provided below, registration of such Certificates may
not be transferred by the Trustee except to another Depository that agrees to
hold such Certificates for the respective Certificate Owners with Ownership
Interests therein. The Certificate Owners shall hold their respective Ownership
Interests in and to such Certificates through the book-entry facilities of the
Depository and, except as provided below, shall not be entitled to definitive,
fully registered Certificates ("Definitive Certificates") in respect of such
Ownership Interests. All transfers by Certificate Owners of their respective
Ownership Interests in the Book-Entry Certificates shall be made in accordance
with the procedures established by the Depository Participant or brokerage firm
representing such Certificate Owner. Each Depository Participant shall only
transfer the Ownership Interests in the Book-Entry Certificates of Certificate
Owners it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The Trustee is hereby
initially appointed as the Book-Entry Custodian and hereby agrees to act as such
in accordance herewith and in accordance with the agreement that it has with the
Depository authorizing it to act
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as such. The Book-Entry Custodian may, and if it is no longer qualified to act
as such, the Book-Entry Custodian shall, appoint, by a written instrument
delivered to the Depositor, the Master Servicer, the Trustee (if the Trustee is
not the Book-Entry Custodian) and any other transfer agent (including the
Depository or any successor Depository) to act as Book-Entry Custodian under
such conditions as the predecessor Book-Entry Custodian and the Depository or
any successor Depository may prescribe, provided that the predecessor Book-Entry
Custodian shall not be relieved of any of its duties or responsibilities by
reason of any such appointment of other than the Depository. If the Trustee
resigns or is removed in accordance with the terms hereof, the successor trustee
or, if it so elects, the Depository shall immediately succeed to its
predecessor's duties as Book-Entry Custodian. The Depositor shall have the right
to inspect, and to obtain copies of, any Certificates held as Book-Entry
Certificates by the Book-Entry Custodian.
The Trustee, the Master Servicer and the Depositor may for all
purposes (including the making of payments due on the Book-Entry Certificates)
deal with the Depository as the authorized representative of the Certificate
Owners with respect to the Book-Entry Certificates for the purposes of
exercising the rights of Certificateholders hereunder. The rights of Certificate
Owners with respect to the Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders
and shall give notice to the Depository of such record date.
If (i)(A) the Depositor advises the Trustee in writing that the
Depository is no longer willing or able to properly discharge its
responsibilities as Depository and (B) the Depositor is unable to locate a
qualified successor or (ii) after the occurrence of a Master Servicer Event of
Default, Certificate Owners representing in the aggregate not less than 51% of
the Ownership Interests of the Book-Entry Certificates advise the Trustee
through the Depository, in writing, that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Certificate
Owners, the Trustee shall notify all Certificate Owners, through the Depository,
of the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Trustee of the Book-Entry Certificates by the Book-Entry Custodian or the
Depository, as applicable, accompanied by registration instructions from the
Depository for registration of transfer, the Trustee shall issue the Definitive
Certificates. Such Definitive Certificates will be issued in minimum
denominations of $100,000, except that any beneficial ownership that was
represented by a Book-Entry Certificate in an amount less than $100,000
immediately prior to the issuance of a Definitive Certificate shall be issued in
a minimum denomination equal to the amount represented by such Book-Entry
Certificate. None of the Depositor, the Master Servicer nor the Trustee shall be
liable for any delay in the delivery of such instructions and may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the
issuance of Definitive Certificates all references herein to obligations imposed
upon or to be performed by the Depository shall be deemed to be imposed upon and
performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates, and the Trustee shall recognize the Holders of the
Definitive Certificates as Certificateholders hereunder.
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SECTION 5.02. Registration of Transfer and Exchange of
Certificates.
(a) The Trustee shall cause to be kept at one of the offices or
agencies to be appointed by the Trustee in accordance with the provisions of
Section 8.12 a Certificate Register for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of transfers and exchanges of Certificates
as herein provided.
(b) The provisions of this Section 5.02(b), the provisions of
Section 5.02(c) and the provisions of Section 5.02(d) shall apply to (i) all
Transfers of Ownership Interests in Definitive Certificates and (ii) all
Transfers of Ownership Interests in the Book-Entry Certificates.
No transfer, sale, pledge or other disposition of any Certificate or
any Ownership Interest therein shall be made unless such disposition is exempt
from the registration requirements of the Securities Act of 1933, as amended
(the "1933 Act"), and any applicable state securities laws or is made in
accordance with the 1933 Act and such laws.
In the event of any such transfer of any Ownership Interest in any
Definitive Certificate, except with respect to the initial transfer of any
Definitive Certificate by the Depositor (i) unless such transfer is made in
reliance upon Rule 144A under the 1933 Act (as evidenced by the investment
letter delivered to the Trustee, in substantially the form of the Form of Rule
144A Investment Letter included as part of Exhibit F hereto), the Trustee and
the Depositor shall require a written Opinion of Counsel (which may be in-house
counsel) acceptable to and in form and substance reasonably satisfactory to the
Trustee and the Depositor that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall not be an expense of the Trustee or the Depositor or (ii) the Trustee
shall require the transferor to execute a transferor certificate (in
substantially the form attached hereto as Exhibit G) and the transferee to
execute an investment letter (in substantially the form attached hereto as
Exhibit F) acceptable to and in form and substance reasonably satisfactory to
the Depositor and the Trustee certifying to the Depositor and the Trustee the
facts surrounding such transfer, which transferor certificate and investment
letter shall not be an expense of the Trustee or the Depositor. The Holder of a
Definitive Certificate desiring to effect such transfer shall, and does hereby
agree to, indemnify the Trustee, the Depositor and the Trust Fund 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.
In the event of any such transfer of any Ownership Interest in any
Book-Entry Certificate, except with respect to the initial transfer of any such
Certificate by the Depositor, such transfer shall be required to be made in
reliance upon Rule 144A under the 1933 Act, and the transferor will be deemed to
have made each of the representations and warranties set forth on Exhibit G
hereto in respect of such interest as if it was evidenced by a Definitive
Certificate and the transferee will be deemed to have made each of the
representations and warranties set forth in the Form of Rule 144A Investment
Letter included as part of Exhibit F hereto in respect of such interest as if it
was evidenced by a Definitive Certificate. The Certificate Owner of any such
Ownership Interest in any such Book-Entry Certificate desiring to effect such
transfer shall, and does hereby
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agree to, indemnify the Trustee, the Depositor and the Trust Fund 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.
(c) No transfer of any Residual Certificate (an "ERISA Restricted
Certificate") or any interest therein shall be made to any Plan subject to ERISA
or Section 4975 of the Code, any Person acting, directly or indirectly, on
behalf of any such Plan or any Person acquiring such Certificates with "Plan
Assets" of a Plan within the meaning of the Department of Labor regulation
promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets") unless the Depositor,
the Trustee and the Master Servicer are provided with an Opinion of Counsel
which establishes to the satisfaction of the Depositor, the Trustee and the
Master Servicer that the purchase of such Certificates is permissible under
applicable law, will not constitute or result in any prohibited transaction
under ERISA or Section 4975 of the Code and will not subject the Depositor, the
Master Servicer, the Trustee or the Trust Fund to any obligation or liability
(including obligations or liabilities under ERISA or Section 4975 of the Code)
in addition to those undertaken in this Agreement, which Opinion of Counsel
shall not be an expense of the Depositor, the Master Servicer, the Trustee or
the Trust Fund. An Opinion of Counsel shall not be required in connection with
the initial transfer of any such Certificate by the Depositor to an affiliate of
the Depositor (in which case, the Depositor or any affiliate thereof shall have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets) and the Trustee shall be entitled to conclusively rely
upon a representation (which, upon the request of the Trustee, shall be a
written representation) from the Depositor of the status of such transferee as
an affiliate of the Depositor. Each transferee of an ERISA Restricted
Certificate, except with respect to an initial transfer of any such Certificate
by the Depositor to an affiliate of the Depositor, not providing the Opinion of
Counsel required above shall sign and deliver to the Trustee a letter to the
Depositor, the Trustee and the Master Servicer representing that it is not a
Plan or a Person investing Plan Assets.
Each beneficial owner of a Class B-1 Certificate, Class B-2
Certificate or Class B-3 Certificate or any interest therein will be deemed to
have represented, by virtue of its acquisition or holding of that Certificate or
interest therein, that either (i) it is not a Plan or investing with "Plan
Assets", (ii) it has acquired and is holding such certificate in reliance on
Prohibited Transaction Exemption, as amended ("Exemption"), and that it
understands that there are certain conditions to the availability of the
Exemption, including that the certificate must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch or Xxxxx'x and
the certificate is so rated or (iii) (1) it is an insurance company, (2) the
source of funds used to acquire or hold the certificate or interest therein is
an "insurance company general account," as such term is defined in Prohibited
Transaction Class Exemption ("PTCE") 95-60, and (3) the conditions in Sections I
and III of PTCE 95-60 have been satisfied.
Each beneficial owner of a Class B-4, Class B-5 or Class B-6
Certificate or any interest therein shall be deemed to have represented, by
virtue of its acquisition or holding of that certificate or interest therein,
that either (i) it is not a Plan or investing with Plan Assets or (ii)(1) it is
an insurance company, (2) the source of funds used to acquire or hold the
certificate or interest therein is an "insurance company general account" as
such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III
of PTCE 95-60 have been satisfied.
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If any ERISA Restricted Certificate or Subordinate Certificate
subject to the restrictions set forth in the preceding two paragraphs or any
interest therein is acquired or held in violation of the provisions of the
preceding two paragraphs, the next preceding permitted beneficial owner will be
treated as the beneficial owner of that Certificate retroactive to the date of
transfer to the purported beneficial owner. Any purported beneficial owner whose
acquisition or holding of any such Certificate or interest therein was effected
in violation of the provisions of the preceding two paragraphs shall indemnify
and hold harmless the Depositor, the Master Servicer, the Trustee and the Trust
Fund from and against any and all liabilities, claims, costs or expenses
incurred by those parties as a result of that acquisition or holding.
(d) (i) Each Person who has or who acquires any Ownership Interest
in a Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound by
the following provisions and to have irrevocably authorized the
Trustee or its designee under clause (iii)(A) below to deliver
payments to a Person other than such Person and to negotiate the
terms of any mandatory sale under clause (iii)(B) below and to
execute all instruments of Transfer and to do all other things
necessary in connection with any such sale. The rights of each
Person acquiring any Ownership Interest in a Residual Certificate
are expressly subject to the following provisions:
(A) Each Person holding or acquiring any Ownership
Interest in a Residual Certificate shall be a Permitted
Transferee and shall promptly notify the Trustee of any change
or impending change in its status as a Permitted Transferee.
(B) In connection with any proposed Transfer of any
Ownership Interest in a Residual Certificate, the Trustee
shall require delivery to it and shall not register the
Transfer of any Residual Certificate until its receipt of an
affidavit and agreement (a "Transfer Affidavit and
Agreement"), in the form attached hereto as Exhibit H, from
the proposed Transferee, in form and substance satisfactory to
the Trustee, representing and warranting, among other things,
that such Transferee is a Permitted Transferee, that it is not
acquiring its Ownership Interest in the Residual Certificate
that is the subject of the proposed Transfer as a nominee,
trustee or agent for any Person that is not a Permitted
Transferee, that for so long as it retains its Ownership
Interest in a Residual Certificate, it will endeavor to remain
a Permitted Transferee, and that it has reviewed the
provisions of this Section 5.02(d) and agrees to be bound by
them.
(C) Notwithstanding the delivery of a Transfer Affidavit
and Agreement by a proposed Transferee under clause (B) above,
if a Responsible Officer of the Trustee who is assigned to
this transaction has actual knowledge that the proposed
Transferee is not a Permitted Transferee, no Transfer of an
Ownership Interest in a Residual Certificate to such proposed
Transferee shall be effected.
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(D) Each Person holding or acquiring any Ownership
Interest in a Residual Certificate shall agree (x) to require
a Transfer Affidavit and Agreement from any other Person to
whom such Person attempts to transfer its Ownership Interest
in a Residual Certificate and (y) not to transfer its
Ownership Interest unless it provides a transferor affidavit
(a "Transferor Affidavit"), in the form attached hereto as
Exhibit H, to the Trustee stating that, among other things, it
has no actual knowledge that such other Person is not a
Permitted Transferee.
(E) Each Person holding or acquiring an Ownership
Interest in a Residual Certificate, by purchasing an Ownership
Interest in such Certificate, agrees to give the Trustee
written notice that it is a "pass-through interest holder"
within the meaning of temporary Treasury regulation Section
1.67- 3T(a)(2)(i)(A) immediately upon acquiring an Ownership
Interest in a Residual Certificate, if it is, or is holding an
Ownership Interest in a Residual Certificate on behalf of, a
"pass-through interest holder."
(ii) The Trustee will register the Transfer of any Residual
Certificate only if it shall have received the Transfer Affidavit
and Agreement and all of such other documents as shall have been
reasonably required by the Trustee as a condition to such
registration. In addition, no Transfer of a Residual Certificate
shall be made unless the Trustee shall have received a
representation letter from the Transferee of such Certificate to the
effect that such Transferee is a Permitted Transferee.
(iii) (A) If any purported Transferee shall become a
Holder of a Residual Certificate in violation of the
provisions of this Section 5.02(d), then the last preceding
Permitted Transferee shall be restored, to the extent
permitted by law, to all rights as holder thereof retroactive
to the date of registration of such Transfer of such Residual
Certificate. The Trustee shall be under no liability to any
Person for any registration of Transfer of a Residual
Certificate that is in fact not permitted by this Section
5.02(d) or for making any payments due on such Certificate to
the holder thereof or for taking any other action with respect
to such holder under the provisions of this Agreement.
(B) If any purported Transferee shall become a holder of
a Residual Certificate in violation of the restrictions in
this Section 5.02(d) and to the extent that the retroactive
restoration of the rights of the holder of such Residual
Certificate as described in clause (iii)(A) above shall be
invalid, illegal or unenforceable, then the Trustee shall have
the right, without notice to the holder or any prior holder of
such Residual Certificate, to sell such Residual Certificate
to a purchaser selected by the Trustee on such terms as the
Trustee may choose. Such purported Transferee shall promptly
endorse and deliver each Residual Certificate in accordance
with the instructions of the Trustee. Such purchaser may be
the Trustee itself or any Affiliate of the Trustee. The
proceeds of such sale, net of the commissions (which may
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include commissions payable to the Trustee or its Affiliates),
expenses and taxes due, if any, will be remitted by the
Trustee to such purported Transferee. The terms and conditions
of any sale under this clause (iii)(B) shall be determined in
the sole discretion of the Trustee, and the Trustee shall not
be liable to any Person having an Ownership Interest in a
Residual Certificate as a result of its exercise of such
discretion.
(iv) The Trustee shall make available to the Internal Revenue
Service and those Persons specified by the REMIC Provisions all
information necessary to compute any tax imposed (A) as a result of
the Transfer of an Ownership Interest in a Residual Certificate to
any Person who is a Disqualified Organization, including the
information described in Treasury regulations sections
1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the "excess
inclusions" of such Residual Certificate and (B) as a result of any
regulated investment company, real estate investment trust, common
trust fund, partnership, trust, estate or organization described in
Section 1381 of the Code that holds an Ownership Interest in a
Residual Certificate having as among its record holders at any time
any Person which is a Disqualified Organization. Reasonable
compensation for providing such information may be accepted by the
Trustee.
(v) The provisions of this Section 5.02(d) set forth prior to
this subsection (v) may be modified, added to or eliminated,
provided that there shall have been delivered to the Trustee at the
expense of the party seeking to modify, add to or eliminate any such
provision the following:
(A) written notification from each Rating Agency to the
effect that the modification, addition to or elimination of
such provisions will not cause such Rating Agency to downgrade
its then-current ratings of any Class of Certificates; and
(B) an Opinion of Counsel, in form and substance
satisfactory to the Trustee, to the effect that such
modification of, addition to or elimination of such provisions
will not cause any Trust REMIC to cease to qualify as a REMIC
and will not cause (x) any Trust REMIC, as the case may be, to
be subject to an entity-level tax caused by the Transfer of
any Residual Certificate to a Person that is not a Permitted
Transferee or (y) a Person other than the prospective
transferee to be subject to a REMIC-tax caused by the Transfer
of a Residual Certificate to a Person that is not a Permitted
Transferee.
(e) Subject to the preceding subsections, upon surrender for
registration of transfer of any Certificate at any office or agency of the
Trustee maintained for such purpose pursuant to Section 8.12, the Trustee shall
execute, authenticate and deliver, in the name of the designated Transferee or
Transferees, one or more new Certificates of the same Class of a like aggregate
Percentage Interest.
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(f) At the option of the Holder thereof, any Certificate may be
exchanged for other Certificates of the same Class with authorized denominations
and a like aggregate Percentage Interest, upon surrender of such Certificate to
be exchanged at any office or agency of the Trustee maintained for such purpose
pursuant to Section 8.12. Whenever any Certificates are so surrendered for
exchange the Trustee shall execute, authenticate and deliver the Certificates
which the Certificateholder making the exchange is entitled to receive. Every
Certificate presented or surrendered for transfer or exchange shall (if so
required by the Trustee) be duly endorsed by, or be accompanied by a written
instrument of transfer in the form satisfactory to the Trustee duly executed by,
the Holder thereof or his attorney duly authorized in writing.
(g) No service charge to the Certificateholders shall be made for
any transfer or exchange of Certificates, but the Trustee 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.
(h) All Certificates surrendered for transfer and exchange shall be
canceled and destroyed by the Trustee in accordance with its customary
procedures.
SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates.
If (i) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receive evidence to its satisfaction of the destruction, loss or
theft of any Certificate, and (ii) there is delivered to the Trustee such
security or indemnity as may be required by them to save each of them harmless,
then, in the absence of actual knowledge by the Trustee that such Certificate
has been acquired by a bona fide purchaser, the Trustee shall execute and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of the same Class and of like denomination
and Percentage Interest. Upon the issuance of any new Certificate under this
Section, the Trustee may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee) connected
therewith. Any replacement Certificate issued pursuant to this Section shall
constitute complete and indefeasible evidence of ownership in REMIC I, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.
SECTION 5.04. Persons Deemed Owners.
The Depositor, the Master Servicer, the Trustee and any agent of any
of them may treat the Person in whose name any Certificate is registered as the
owner of such Certificate for the purpose of receiving distributions pursuant to
Section 4.01 and for all other purposes whatsoever, and none of the Depositor,
the Master Servicer, the Trustee or any agent of any of them shall be affected
by notice to the contrary.
SECTION 5.05. Certain Available Information.
On or prior to the date of the first sale of any Private Certificate
to an Independent third party, the Depositor shall provide to the Trustee ten
copies of any private placement memorandum or other disclosure document used by
the Depositor in connection with the offer and
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sale of the Private Certificates. In addition, if any such private placement
memorandum or disclosure document is revised, amended or supplemented at any
time following the delivery thereof to the Trustee, the Depositor promptly shall
inform the Trustee of such event and shall deliver to the Trustee ten copies of
the private placement memorandum or disclosure document, as revised, amended or
supplemented. The Trustee shall maintain at its Corporate Trust Office and shall
make available free of charge during normal business hours for review by any
Holder of a Certificate or any Person identified to the Trustee as a prospective
transferee of a Certificate, originals or copies of the following items: (i) in
the case of a Holder or prospective transferee of a Private Certificate, the
private placement memorandum or other disclosure document relating to such
Certificates in the form most recently provided to the Trustee; and (ii) in all
cases, (A) this Agreement and any amendments hereof entered into pursuant to
Section 11.01, (B) all monthly statements required to be delivered to
Certificateholders of the relevant Class pursuant to Section 4.02 since the
Closing Date, and all other notices, reports, statements and written
communications delivered to the Certificateholders of the relevant Class
pursuant to this Agreement since the Closing Date, (C) all certifications
delivered by a Responsible Officer of the Trustee since the Closing Date
pursuant to Section 10.01(h), (D) any and all Officers' Certificates delivered
to the Trustee by the Master Servicer since the Closing Date to evidence the
Master Servicer's determination that any P&I Advance was, or if made, would be a
Nonrecoverable P&I Advance and (E) any and all Officers' Certificates delivered
to the Trustee by the Master Servicer since the Closing Date pursuant to Section
4.04(a). Copies and mailing of any and all of the foregoing items will be
available from the Trustee upon request at the expense of the person requesting
the same.
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ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER
SECTION 6.01. Liability of the Depositor and the Master Servicer.
The Depositor and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement and undertaken hereunder by the Depositor and the Master
Servicer herein.
SECTION 6.02. Merger or Consolidation of the Depositor or the
Master Servicer.
Subject to the following paragraph, the Depositor will keep in full
effect its existence, rights and franchises as a corporation under the laws of
the jurisdiction of its incorporation. Subject to the following paragraph, the
Master Servicer will keep in full effect its existence, rights and franchises as
a corporation under the laws of the jurisdiction of its incorporation and its
qualification as an approved conventional seller/servicer for Xxxxxx Xxx or
Xxxxxxx Mac in good standing. The Depositor and the Master Servicer each will
obtain and preserve its qualification to do business as a foreign corporation in
each jurisdiction in which such qualification is or shall be necessary to
protect the validity and enforceability of this Agreement, the Certificates or
any of the Mortgage Loans and to perform its respective duties under this
Agreement.
The Depositor or the Master Servicer may be merged or consolidated
with or into any Person, or transfer all or substantially all of its assets to
any Person, in which case any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any Person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; PROVIDED, HOWEVER, that the successor or surviving Person to
the Master Servicer shall be qualified to service mortgage loans on behalf of
Xxxxxx Mae or Xxxxxxx Mac; and provided further that the Rating Agency's ratings
of the Class A Certificates in effect immediately prior to such merger or
consolidation will not be qualified, reduced or withdrawn as a result thereof
(as evidenced by a letter to such effect from the Rating Agency).
SECTION 6.03. Limitation on Liability of the Depositor, the Master
Servicer and Others.
None of the Depositor, the Master Servicer or any of the directors,
officers, employees or agents of the Depositor or the Master Servicer shall be
under any liability to the Trust Fund or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; PROVIDED, HOWEVER, that this
provision shall not protect the Depositor, the Master Servicer or any such
person against any breach of warranties, representations or covenants made
herein, or against any specific liability imposed on the Master Servicer
pursuant hereto, or against any liability which would otherwise be imposed by
reason of willful misfeasance, bad faith or negligence in the performance of
duties or by reason of reckless
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disregard of obligations and duties hereunder. The Depositor, the Master
Servicer and any director, officer, employee or agent of the Depositor or the
Master Servicer may rely in good faith on any document of any kind which, prima
facie, is properly executed and submitted by any Person respecting any matters
arising hereunder. The Depositor, the Master Servicer and any director, officer,
employee or agent of the Depositor or the Master Servicer shall be indemnified
and held harmless by the Trust Fund against any loss, liability or expense
incurred in connection with any legal action relating to this Agreement or the
Certificates, other than any loss, liability or expense to any specific Mortgage
Loan or Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) or any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or negligence in
the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. Neither the Depositor nor the Master Servicer
shall be under any obligation to appear in, prosecute or defend any legal action
unless such action is related to its respective duties under this Agreement and,
in its opinion, does not involve it in any expense or liability; PROVIDED,
HOWEVER, that each of the Depositor and the Master Servicer may in its
discretion undertake any such action which it may deem necessary or desirable
with respect to this Agreement and the rights and duties of the parties hereto
and the interests of the Certificateholders hereunder. In such event, unless the
Depositor or the Master Servicer acts without the consent of Holders of
Certificates entitled to at least 51% of the Voting Rights (which consent shall
not be necessary in the case of litigation or other legal action by either to
enforce their respective rights or defend themselves hereunder), the legal
expenses and costs of such action and any liability resulting therefrom (except
any loss, liability or expense incurred by reason of willful misfeasance, bad
faith or negligence in the performance of duties hereunder or by reason of
reckless disregard of obligations and duties hereunder) shall be expenses, costs
and liabilities of the Trust Fund, and the Depositor (subject to the limitations
set forth above) and the Master Servicer shall be entitled to be reimbursed
therefor from the Collection Account as and to the extent provided in Section
3.11, any such right of reimbursement being prior to the rights of the
Certificateholders to receive any amount in the Collection Account.
SECTION 6.04. Limitation on Resignation of the Master Servicer.
The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that its duties hereunder are
no longer permissible under applicable law or (ii) with the written consent of
the Trustee, which consent may not be unreasonably withheld, with written
confirmation from the Rating Agency (which confirmation shall be furnished to
the Depositor and the Trustee) that such resignation will not cause the Rating
Agency to reduce the then current rating of the Class A Certificates and
provided that a qualified successor has agreed to assume the duties and
obligations of the Master Servicer hereunder. Any such determination pursuant to
clause (i) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Counsel to such effect obtained at
the expense of the Master Servicer and delivered to the Trustee. No resignation
of the Master Servicer shall become effective until the Trustee or a successor
servicer shall have assumed the Master Servicer's responsibilities, duties,
liabilities (other than those liabilities arising prior to the appointment of
such successor) and obligations under this Agreement.
Except as expressly provided herein, the Master Servicer shall not
assign nor transfer any of its rights, benefits or privileges hereunder to any
other Person, nor delegate to or subcontract
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with, nor authorize or appoint any other Person to perform any of the duties,
covenants or obligations to be performed by the Master Servicer hereunder. If,
pursuant to any provision hereof, the duties of the Master Servicer are
transferred to a successor master servicer, the entire amount of the Servicing
Fee and other compensation payable to the Master Servicer pursuant hereto shall
thereafter be payable to such successor master servicer.
SECTION 6.05. Rights of the Depositor in Respect of the Master
Servicer.
The Master Servicer shall afford (and any Sub-Servicing Agreement
shall provide that each Sub-Servicer shall afford) the Depositor and the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer (and any such Sub-Servicer) in respect
of the Master Servicer's rights and obligations hereunder and access to officers
of the Master Servicer (and those of any such Sub-Servicer) responsible for such
obligations. Upon request, the Master Servicer shall furnish to the Depositor
and the Trustee its (and any such Sub-Servicer's) most recent financial
statements of the parent company of the Master Servicer and such other
information relating to the Master Servicer's capacity to perform its
obligations under this Agreement that it possesses. To the extent such
information is not otherwise available to the public, the Depositor and the
Trustee shall not disseminate any information obtained pursuant to the preceding
two sentences without the Master Servicer's written consent, except as required
pursuant to this Agreement or to the extent that it is appropriate to do so (i)
in working with legal counsel, auditors, taxing authorities or other
governmental agencies, rating agencies or reinsurers or (ii) pursuant to any
law, rule, regulation, order, judgment, writ, injunction or decree of any court
or governmental authority having jurisdiction over the Depositor, the Trustee or
the Trust Fund, and in either case, the Depositor or the Trustee, as the case
may be, shall use its best efforts to assure the confidentiality of any such
disseminated non-public information. The Depositor may, but is not obligated to,
enforce the obligations of the Master Servicer under this Agreement and may, but
is not obligated to, perform, or cause a designee to perform, any defaulted
obligation of the Master Servicer under this Agreement or exercise the rights of
the Master Servicer under this Agreement; provided that the Master Servicer
shall not be relieved of any of its obligations under this Agreement by virtue
of such performance by the Depositor or its designee. The Depositor shall not
have any responsibility or liability for any action or failure to act by the
Master Servicer and is not obligated to supervise the performance of the Master
Servicer under this Agreement or otherwise.
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ARTICLE VII
DEFAULT
SECTION 7.01. Master Servicer Events of Default.
"Master Servicer Event of Default," wherever used herein, means any
one of the following events:
(i) any failure by the Master Servicer to remit to the Trustee
for distribution to the Certificateholders any payment (other than a
P&I Advance required to be made from its own funds on any Master
Servicer Remittance Date pursuant to Section 4.03) required to be
made under the terms of the Certificates and this Agreement which
continues unremedied for a period of one Business Day after the date
upon which written notice of such failure, requiring the same to be
remedied, shall have been given to the Master Servicer by the
Depositor or the Trustee (in which case notice shall be provided by
telecopy), or to the Master Servicer, the Depositor and the Trustee
by the Holders of Certificates entitled to at least 25% of the
Voting Rights; or
(ii) any failure on the part of the Master Servicer duly to
observe or perform in any material respect any of the covenants or
agreements on the part of the Master Servicer contained in the
Certificates or in this Agreement which continues unremedied for a
period of 30 days after the earlier of (i) the date on which written
notice of such failure, requiring the same to be remedied, shall
have been given to the Master Servicer by the Depositor or the
Trustee, or to the Master Servicer, the Depositor and the Trustee by
the Holders of Certificates entitled to at least 25% of the Voting
Rights and (ii) actual knowledge of such failure by a Servicing
Officer of the Master Servicer; or
(iii) a decree or order of a court or agency or supervisory
authority having jurisdiction in the premises in an involuntary case
under any present or future federal or state bankruptcy, insolvency
or similar law or the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshalling of
assets and liabilities or similar proceeding, or for the winding-up
or liquidation of its affairs, shall have been entered against the
Master Servicer and if such proceeding is being contested by the
Master Servicer in good faith such decree or order shall have
remained in force undischarged or unstayed for a period of 60
consecutive days or results in the entry of an order for relief or
any such adjudication or appointment; or
(iv) the Master Servicer shall consent to the appointment of a
conservator or receiver or liquidator in any insolvency,
readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Master Servicer or of or
relating to all or substantially all of its property; or
(v) the Master Servicer shall admit in writing its inability
to pay its debts generally as they become due, file a petition to
take advantage of any applicable insolvency
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or reorganization statute, make an assignment for the benefit of its
creditors, or voluntarily suspend payment of its obligations; or
(vi) any failure of the Master Servicer to make any P&I
Advance on any Master Servicer Remittance Date required to be made
from its own funds pursuant to Section 4.03 which continues
unremedied for a period of one Business Day after the date upon
which written notice of such failure (which notice the Trustee must
provide by 3:00 p.m. New York time on the Business Day following the
Master Servicer Remittance Date), requiring the same to be remedied,
shall have been given to the Master Servicer by the Trustee.
If a Master Servicer Event of Default described in clauses (i)
through (v) of this Section shall occur, then, and in each and every such case,
so long as such Master Servicer Event of Default shall not have been remedied,
the Depositor or the Trustee may, and at the written direction of the Holders of
Certificates entitled to at least 51% of Voting Rights, the Trustee shall, by
notice in writing to the Master Servicer and the Special Servicer (and to the
Depositor if given by the Trustee or to the Trustee if given by the Depositor),
terminate all of the rights and obligations of the Master Servicer in its
capacity as a Master Servicer under this Agreement, to the extent permitted by
law, and in and to the Mortgage Loans and the proceeds thereof. If a Master
Servicer Event of Default described in clause (vi) hereof shall occur, the
Trustee shall, by notice in writing to the Master Servicer and the Depositor,
terminate all of the rights and obligations of the Master Servicer in its
capacity as Master Servicer under this Agreement and in and to the Mortgage
Loans and the proceeds thereof. On or after the receipt by the Master Servicer
of such written notice, all authority and power of the Master Servicer under
this Agreement, whether with respect to the Certificates (other than as a Holder
of any Certificate) or the Mortgage Loans or otherwise, shall pass to and be
vested in the Trustee pursuant to and under this Section and, without
limitation, the Trustee is hereby authorized and empowered, as attorney-in-fact
or otherwise, to execute and deliver on behalf of and at the expense of the
Master Servicer, any and all documents and other instruments and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Mortgage Loans and related documents, or
otherwise. The Master Servicer agrees, at its sole cost and expense, promptly
(and in any event no later than ten Business Days subsequent to such notice) to
provide the Trustee with all documents and records requested by it to enable it
to assume the Master Servicer's functions under this Agreement, and to cooperate
with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights under this Agreement, including, without limitation,
the transfer within one Business Day to the Trustee for administration by it of
all cash amounts which at the time shall be or should have been credited by the
Master Servicer to the Collection Account held by or on behalf of the Master
Servicer, the Distribution Account or any REO Account or Servicing Account held
by or on behalf of the Master Servicer or thereafter be received with respect to
the Mortgage Loans or any REO Property serviced by the Master Servicer
(PROVIDED, HOWEVER, that the Master Servicer shall continue to be entitled to
receive all amounts accrued or owing to it under this Agreement on or prior to
the date of such termination, whether in respect of P&I Advances or otherwise,
and shall continue to be entitled to the benefits of Section 6.03,
notwithstanding any such termination, with respect to events occurring prior to
such termination). For purposes of this Section 7.01, the Trustee shall not be
deemed to have knowledge of a Master Servicer Event of Default unless a
Responsible Officer of the Trustee assigned to and working in the Trustee's
Corporate Trust Office has actual knowledge thereof or unless written
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notice of any event which is in fact such a Master Servicer Event of Default is
received by the Trustee and such notice references the Certificates, the Trust
Fund or this Agreement.
The Trustee shall be entitled to be reimbursed by the Master
Servicer (or by the Trust Fund if the Master Servicer is unable to fulfill its
obligations hereunder) for all costs associated with the transfer of servicing
from the predecessor master servicer, including without limitation, any costs or
expenses associated with the complete transfer of all servicing data and the
completion, correction or manipulation of such servicing data as may be required
by the Trustee to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Trustee to service the Mortgage Loans properly and
effectively.
SECTION 7.02. Trustee to Act; Appointment of Successor.
On and after the time the Master Servicer receives a notice of
termination, the Trustee shall be the successor in all respects to the Master
Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto and arising thereafter
placed on the Master Servicer (except for any representations or warranties of
the Master Servicer under this Agreement, the responsibilities, duties and
liabilities contained in Section 2.03(c) and its obligation to deposit amounts
in respect of losses pursuant to Section 3.12) by the terms and provisions
hereof including, without limitation, the Master Servicer's obligations to make
P&I Advances pursuant to Section 4.03; PROVIDED, HOWEVER, that if the Trustee is
prohibited by law or regulation from obligating itself to make advances
regarding delinquent mortgage loans, then the Trustee shall not be obligated to
make P&I Advances pursuant to Section 4.03; and provided further, that any
failure to perform such duties or responsibilities caused by the Master
Servicer's failure to provide information required by Section 7.01 shall not be
considered a default by the Trustee as successor to the Master Servicer
hereunder. As compensation therefor, the Trustee shall be entitled to the
Servicing Fees and all funds relating to the Mortgage Loans to which the Master
Servicer would have been entitled if it had continued to act hereunder (other
than amounts which were due or would become due to the Master Servicer prior to
its termination or resignation). Notwithstanding the above and subject to the
next paragraph, the Trustee may, if it shall be unwilling to so act, or shall,
if it is unable to so act or if it is prohibited by law from making advances
regarding delinquent mortgage loans, or if the Holders of Certificates entitled
to at least 51% of the Voting Rights so request in writing to the Trustee,
promptly appoint or petition a court of competent jurisdiction to appoint, an
established mortgage loan servicing institution acceptable to the Rating Agency
and having a net worth of not less than $15,000,000 as the successor to the
Master Servicer under this Agreement in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer under this
Agreement. No appointment of a successor to the Master Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Master Servicer's responsibilities, duties and liabilities hereunder. In
connection with such appointment and assumption described herein, the Trustee
may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; PROVIDED,
HOWEVER, that no such compensation shall be in excess of that permitted the
Master Servicer as such hereunder. The Depositor, the Trustee and such successor
shall take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession. Pending appointment of a successor to the Master
Servicer under this Agreement, the Trustee shall act in such capacity as
hereinabove provided.
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Upon removal or resignation of the Master Servicer, the Trustee,
with the cooperation of the Depositor, (x) shall solicit bids for a successor
Master Servicer as described below and (y) pending the appointment of a
successor Master Servicer as a result of soliciting such bids, shall serve as
Master Servicer of the Mortgage Loans serviced by such predecessor Master
Servicer. The Trustee shall solicit, by public announcement, bids from housing
and home finance institutions, banks and mortgage servicing institutions meeting
the qualifications set forth above (including the Trustee or any affiliate
thereof). Such public announcement shall specify that the successor Master
Servicer shall be entitled to the servicing compensation agreed upon between the
Trustee, the successor Master Servicer and the Depositor; PROVIDED, HOWEVER,
that no such fee shall exceed the related Servicing Fee. Within thirty days
after any such public announcement, the Trustee, with the cooperation of the
Depositor, shall negotiate in good faith and effect the sale, transfer and
assignment of the servicing rights and responsibilities hereunder to the
qualified party submitting the highest satisfactory bid as to the price they
will pay to obtain such servicing. The Trustee upon receipt of the purchase
price shall pay such purchase price to the Master Servicer being so removed,
after deducting from any sum received by the Trustee from the successor to the
Master Servicer in respect of such sale, transfer and assignment all costs and
expenses of any public announcement and of any sale, transfer and assignment of
the servicing rights and responsibilities reasonably incurred hereunder. After
such deductions, the remainder of such sum shall be paid by the Trustee to the
Master Servicer at the time of such sale.
(b) In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, in which case the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to revise its records to reflect the
transfer of servicing to the successor Master Servicer as necessary under MERS'
rules and regulations, or (ii) the predecessor Master Servicer shall cooperate
with the successor Master Servicer in causing MERS to execute and deliver an
assignment of Mortgage in recordable form to transfer the Mortgage from MERS to
the Trustee and to execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
predecessor Master Servicer (if a Person other than the Trustee is acting as
successor Master Servicer) shall bear any and all fees of MERS, costs of
preparing any assignments of Mortgage, and fees and costs of filing any
assignments of Mortgage that may be required under this Section 7.02(b).
SECTION 7.03. Notification to Certificateholders.
(a) Upon any termination of the Master Servicer pursuant to Section
7.01 above or any appointment of a successor to the Master Servicer pursuant to
Section 7.02 above, the Trustee shall give prompt written notice thereof to
Certificateholders at their respective addresses appearing in the Certificate
Register.
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(b) Not later than the later of 60 days after the occurrence of any
event, which constitutes or which, with notice or lapse of time or both, would
constitute a Master Servicer Event of Default or five days after a Responsible
Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to all Holders of Certificates notice of each
such occurrence, unless such default or Master Servicer Event of Default shall
have been cured or waived.
SECTION 7.04. Waiver of Master Servicer Events of Default.
Subject to Section 11.09(d), the Holders representing at least 66%
of the Voting Rights evidenced by all Classes of Certificates affected by any
default or Master Servicer Event of Default hereunder may waive such default or
Master Servicer Event of Default; PROVIDED, HOWEVER, that a default or Master
Servicer Event of Default under clause (i) or (vi) of Section 7.01 may be waived
only by all of the Holders of the Regular Certificates. Upon any such waiver of
a default or Master Servicer Event of Default, such default or Master Servicer
Event of Default shall cease to exist and shall be deemed to have been remedied
for every purpose hereunder. No such waiver shall extend to any subsequent or
other default or Master Servicer Event of Default or impair any right consequent
thereon except to the extent expressly so waived.
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ARTICLE VIII
CONCERNING THE TRUSTEE
SECTION 8.01. Duties of Trustee.
The Trustee, prior to the occurrence of a Master Servicer Event of
Default and after the curing of all Master Servicer Events of Default which may
have occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. During a Master Servicer Event of
Default, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the conduct
of such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.
The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to it, which are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement. If any such instrument is found not to conform
to the requirements of this Agreement in a material manner, it shall take such
action as it deems appropriate to have the instrument corrected, and if the
instrument is not corrected to its satisfaction, it will provide notice thereof
to the Certificateholders.
No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; PROVIDED, HOWEVER, that:
(i) Prior to the occurrence of a Master Servicer Event of
Default, and after the curing of all such Master Servicer Events of
Default which may have occurred, the duties and obligations of the
Trustee shall be determined solely by the express provisions of this
Agreement, the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set
forth in this Agreement, no implied covenants or obligations shall
be read into this Agreement against the Trustee and, in the absence
of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates
or opinions furnished to the Trustee that conform to the
requirements of this Agreement;
(ii) The Trustee shall not be personally liable for any error
of judgment made in good faith by a Responsible Officer or
Responsible Officers unless it shall be proved that it was negligent
in ascertaining the pertinent facts;
(iii) The Trustee shall not be personally liable with respect
to any action taken, suffered or omitted to be taken by it in good
faith in accordance with the direction of the Holders of
Certificates entitled to at least 25% of the Voting Rights relating
to the time, method and place of conducting any proceeding for any
remedy available to the it or exercising any trust or power
conferred upon it, under this Agreement; and
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(iv) The Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any default unless a
Responsible Officer of the Trustee shall have received written
notice thereof or a Responsible Officer of the Trustee shall have
actual knowledge thereof. In the absence of receipt of such notice
or actual knowledge, the Trustee may conclusively assume there is no
default.
SECTION 8.02 . Certain Matters Affecting the Trustee .
(a) Except as otherwise provided in Section 8.01:
(i) The Trustee and any director, officer, employee or agent
of the Trustee may request and rely upon and shall be protected in
acting or refraining from acting upon any resolution, Officers'
Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent,
order, appraisal, bond or other paper or document reasonably
believed by it to be genuine and to have been signed or presented by
the proper party or parties;
(ii) The Trustee may consult with counsel and any Opinion of
Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it hereunder
in good faith and in accordance with such Opinion of Counsel;
(iii) The Trustee shall not be under any obligation to
exercise any of the trusts or powers vested in it by this Agreement
or to institute, conduct or defend any litigation hereunder or in
relation hereto at the request, order or direction of any of the
Certificateholders, pursuant to the provisions of this Agreement,
unless such Certificateholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and
liabilities which may be incurred therein or thereby; provided that,
subject to Section 8.02(a)(ix), nothing contained in this clause
(iii) shall relieve the Trustee of the obligation, upon the
occurrence of a Master Servicer Event of Default (which has not been
cured or waived), to exercise such of the rights and powers vested
in it by this Agreement, and to use the same degree of care and
skill in their exercise as a prudent person would exercise or use
under the circumstances in the conduct of such person's own affairs;
(iv) The Trustee shall not be personally liable for any action
taken, suffered or omitted by it in good faith and believed by it to
be authorized or within the discretion or rights or powers conferred
upon it by this Agreement;
(v) Prior to the occurrence of a Master Servicer Event of
Default hereunder and after the curing of all Master Servicer Events
of Default which may have occurred, the Trustee shall not be bound
to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing to do so by the Holders of
Certificates entitled to at least 25% of the Voting Rights;
PROVIDED, HOWEVER, that if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the
opinion of the Trustee not reasonably assured to the Trustee by such
Certificateholders, the Trustee may require
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reasonable indemnity against such cost, expense, or liability from
such Certificateholders as a condition to taking any such action;
(vi) The Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or
through agents, affiliates, accountants or attorneys, and the
Trustee shall not be responsible for any negligence or willful
misconduct on the part of such agents, affiliates, accountants or
attorneys appointed by it with due care;
(vii) The Trustee shall not be personally liable for any loss
resulting from the investment of funds held in the Collection
Account at the direction of the Master Servicer pursuant to Section
3.12;
(viii) Any request or direction of the Depositor, the Master
Servicer or the Certificateholders mentioned herein shall be
sufficiently evidenced in writing;
(ix) the Trustee shall not be required to risk or expend its
own funds or otherwise incur any financial liability in the
performance of any of its duties or in the exercise of any of its
rights or powers hereunder if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against
such risk or liability is not assured to it;
(x) the rights of the Trustee to perform any discretionary act
enumerated in this Agreement shall not be construed as a duty, and
the Trustee shall not be answerable for other than its negligence or
willful misconduct in the performance of such act;
(xi) anything to the contrary in this Agreement
notwithstanding, in no event shall the Trustee be liable for
special, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, lost profits) even if the
Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action; and
(xii) the Trustee shall have no duty to see to any recording,
filing or depositing of this Agreement or any agreement referred to
herein or any financing statement or continuation statement
evidencing a security interest, or to see to the maintenance of any
such recording or filing or depositing of any thereof.
(b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in its name for the benefit of all
the Holders of such Certificates, subject to the provisions of this Agreement.
SECTION 8.03. Trustee not Liable for Certificates or
Mortgage Loans.
The recitals contained herein and in the Certificates (other than
the signature of the Trustee, the authentication of the Trustee on the
Certificates, the acknowledgments of the Trustee contained in Article II and the
representations and warranties of the Trustee in Section 8.13) shall
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be taken as the statements of the Depositor and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations or
warranties as to the validity or sufficiency of this Agreement (other than as
specifically set forth with respect to such party in Section 8.13) or of the
Certificates (other than the signature of the Trustee and authentication of the
Certificate Registrar on the Certificates) or of any Mortgage Loan or related
document or of MERS or the MERS(R) System. The Trustee shall not be accountable
for the use or application by the Depositor of any of the Certificates or of the
proceeds of such Certificates, or for the use or application of any funds paid
to the Depositor, the Master Servicer or the Special Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account by the
Master Servicer or the Special Servicer, other than any funds held by or on
behalf of the Trustee in accordance with Section 3.10.
SECTION 8.04. Trustee May Own Certificates.
The Trustee in its individual capacity or any other capacity may
become the owner or pledgee of Certificates with the same rights it would have
if it were not Trustee.
SECTION 8.05. Trustees Fees and Expenses.
(a) The Trustee shall withdraw from the Distribution Account on each
Distribution Date and pay to itself the Trustee Fee and any income and gain
realized from the investment of funds deposited in the Distribution Account.
The Trustee and any director, officer, employee or agent of the
Trustee shall be indemnified by the Trust Fund and held harmless against any
loss, liability or expense (not including expenses, disbursements and advances
incurred or made by the Trustee, including the compensation and the expenses and
disbursements of its agents and counsel, in the ordinary course of the Trustee's
performance in accordance with the provisions of this Agreement) incurred by the
Trustee in connection with any claim or legal action or any pending or
threatened claim or legal action arising out of or in connection with the
acceptance or administration of its obligations and duties under this Agreement,
other than any loss, liability or expense (i) for which the Trustee is
indemnified by the Master Servicer or the Special Servicer, (ii) that
constitutes a specific liability of the Trustee pursuant to Section 10.01(c) or
(iii) any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence in the performance of duties hereunder or by reason of
reckless disregard of obligations and duties hereunder or as a result of a
breach of the Trustee's obligations under Article X hereof. Any amounts payable
to the Trustee, or any director, officer, employee or agent of the Trustee in
respect of the indemnification provided by this paragraph (a), or pursuant to
any other right of reimbursement from the Trust Fund that the Trustee or any
director, officer, employee or agent of the Trustee may have hereunder in its
capacity as such, may be withdrawn by the Trustee from the Distribution Account
at any time.
(b) The Master Servicer agrees to indemnify the Trustee from, and
hold it harmless against, any loss, liability or expense resulting from a breach
of the Master Servicer's obligations and duties under this Agreement. Such
indemnity shall survive the termination or discharge of this Agreement and the
resignation or removal of the Trustee. Any payment under this Section 8.05(b)
made by the Master Servicer to the Trustee shall be from the Master Servicer's
own funds, without reimbursement from the Trust Fund therefor.
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(c) The Master Servicer shall pay any annual rating agency fees of
the Rating Agencies for ongoing surveillance from its own funds without right of
reimbursement.
SECTION 8.06. Eligibility Requirements for Trustee.
The Trustee hereunder shall at all times be a corporation or an
association (other than the Depositor, the Seller, the Master Servicer or any
Affiliate of the foregoing) organized and doing business under the laws of any
state or the United States of America, and authorized under such laws 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
authority. If such corporation or association publishes reports of conditions at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section the
combined capital and surplus of such corporation or association shall be deemed
to be its combined capital and surplus as set forth in its most recent report of
conditions so published. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Trustee shall
resign immediately in the manner and with the effect specified in Section 8.07.
SECTION 8.07. Resignation and Removal of the Trustee.
The Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Depositor, the Master
Servicer and the Certificateholders. Upon receiving such notice of resignation,
the Depositor shall promptly appoint a successor trustee by written instrument,
in duplicate, which instrument shall be delivered to the resigning Trustee and
to the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee and the Master Servicer by the Depositor. If no
successor trustee shall have been so appointed and have accepted appointment
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee.
If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged bankrupt or insolvent, or a receiver
of the Trustee or of its property shall be appointed, or any public officer
shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation, then the Depositor
may remove the Trustee and appoint a successor trustee by written instrument, in
duplicate, which instrument shall be delivered to the Trustee so removed, and to
the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee and the Master Servicer by the Depositor.
The Holders of Certificates entitled to at least 51% of the Voting
Rights may at any time remove the Trustee and appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized, one complete set of which instruments
shall be delivered to the Depositor, one complete set to the Trustee so removed
and one complete set to the successor so appointed. A copy of such instrument
shall be delivered to the Certificateholders and the Master Servicer by the
Depositor.
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Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.08.
SECTION 8.08. Successor Trustee.
Any successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor and the Trustee, and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. The predecessor trustee shall deliver to the successor
trustee all Mortgage Files and related documents and statements, as well as all
moneys, held by it hereunder and the Depositor and the predecessor trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in the successor
trustee all such rights, powers, duties and obligations.
No successor trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.06 and the appointment of such
successor trustee shall not result in a downgrading of any Class of Certificates
by the Rating Agency, as evidenced by a letter from the Rating Agency.
Upon acceptance of appointment by a successor trustee as provided in
this Section, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates at their addresses as shown in the
Certificate Register. If the Depositor fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.
SECTION 8.09. Merger or Consolidation of Trustee.
Any corporation or association into which the Trustee may be merged
or converted or with which it may be consolidated or any corporation or
association resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation or association succeeding to the
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation or association shall be eligible under the provisions
of Section 8.06, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.
SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of REMIC I or property securing the same may at the time be located, the Master
Servicer and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as cotrustee or co-trustees, jointly with the Trustee, or
separate trustee or separate
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trustees, of all or any part of REMIC I, and to vest in such Person or Persons,
in such capacity, such title to REMIC I, or any part thereof, and, subject to
the other provisions of this Section 8.10, such powers, duties, obligations,
rights and trusts as the Master Servicer and the Trustee may consider necessary
or desirable. If the Master Servicer shall not have joined in such appointment
within 15 days after the receipt by it of a request to do so, or in case a
Master Servicer Event of Default shall have occurred and be continuing, the
Trustee alone shall have the power to make such appointment. No co-trustee or
separate trustee hereunder shall be required to meet the terms of eligibility as
a successor trustee under Section 8.06 hereunder and no notice to Holders of
Certificates of the appointment of co-trustee(s) or separate trustee(s) shall be
required under Section 8.08 hereof.
In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to the Master Servicer hereunder), the 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
REMIC I or any portion thereof in any such jurisdiction) shall be exercised and
performed by such separate trustee or co-trustee at the direction of the
Trustee.
Any notice, request or other writing given to the 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 Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trust conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee.
Any separate trustee or co-trustee may, at any time, constitute the
Trustee, 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
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
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.
SECTION 8.11. [intentionally omitted].
SECTION 8.12. Appointment of Office or Agency.
The Trustee will appoint an office or agency in the City of St.
Xxxx, Minnesota where the Certificates may be surrendered for registration of
transfer or exchange, and presented for final distribution, and where notices
and demands to or upon the Trustee in respect of the Certificates and this
Agreement may be served.
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SECTION 8.13. Representations and Warranties.
The Trustee hereby represents and warrants to the Master Servicer
and the Depositor, as of the Closing Date, that:
(i) It is duly organized, validly existing and in good
standing under the laws of the United States.
(ii) The execution and delivery of this Agreement by it, and
the performance and compliance with the terms of this Agreement by
it, will not violate its articles of association or bylaws or
constitute a default (or an event which, with notice or lapse of
time, or both, would constitute a default) under, or result in the
breach of, any material agreement or other instrument to which it is
a party or which is applicable to it or any of its assets.
(iii) It has the full power and authority to enter into and
consummate all transactions contemplated by this Agreement, has duly
authorized the execution, delivery and performance of this
Agreement, and has duly executed and delivered this Agreement.
(iv) This Agreement, assuming due authorization, execution and
delivery by the other parties hereto, constitutes a valid, legal and
binding obligation of it, enforceable against it in accordance with
the terms hereof, subject to (A) applicable bankruptcy, insolvency,
receivership, reorganization, moratorium and other laws affecting
the enforcement of creditors' rights generally, and (B) general
principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law.
(v) It is not in violation of, and its execution and delivery
of this Agreement and its performance and compliance with the terms
of this Agreement will not constitute a violation of, any law, any
order or decree of any court or arbiter, or any order, regulation or
demand of any federal, state or local governmental or regulatory
authority, which violation, in its good faith and reasonable
judgment, is likely to affect materially and adversely either the
ability of the it to perform its obligations under this Agreement or
the financial condition of it.
(vi) No litigation is pending or, to the best of its
knowledge, threatened against it which would prohibit it from
entering into this Agreement or, in its good faith reasonable
judgment, is likely to materially and adversely affect either the
ability of it to perform its obligations under this Agreement or the
financial condition of it.
SECTION 8.14. Special Servicing Agreement.
The Trustee is hereby directed to enter into the Special Servicing
Agreement and to perform the duties and obligations provided for therein. In
entering into the Special Servicing Agreement, and in performing any duties or
obligations or taking any actions thereunder, the Trustee will be doing so as
Trustee under this Agreement, and will be entitled to all of the rights,
protections and indemnities provided in this Agreement in connection with its
serving as Trustee hereunder. In
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furtherance of the foregoing, the Special Servicing Agreement shall be deemed to
constitute a part of this Agreement for purposes of this Article VIII.
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ARTICLE IX
TERMINATION
SECTION 9.01. Termination Upon Repurchase or Liquidation of the
Trust Fund.
(a) Subject to Section 9.02, the respective obligations and
responsibilities under this Agreement of the Depositor, the Master Servicer and
the Trustee with respect to the Mortgage Loans (other than the obligations of
the Master Servicer to the Trustee pursuant to Section 8.05 and of the Master
Servicer to provide for and the Trustee to make payments to the Holders of the
related Class(es) of Certificates as hereinafter set forth) shall terminate upon
payment to the Certificateholders and the deposit of all amounts held by or on
behalf of the Trustee and required hereunder to be so paid or deposited on the
Distribution Date coinciding with or following the earlier to occur of (i) the
purchase by the Master Servicer of all Mortgage Loans and related REO Property
remaining in REMIC I, (ii) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan or REO Property
remaining in REMIC I; PROVIDED, HOWEVER, that in no event shall the trust
created hereby continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Xxxxxx X. Xxxxxxx, the late ambassador of
the United States to the Court of St. Xxxxx, living on the date hereof. The
purchase by the Master Servicer of all the Mortgage Loans and related REO
Property remaining in REMIC I shall be at a price (the "Termination Price")
equal to the greater of (A) the aggregate Purchase Price of all the Mortgage
Loans included in REMIC I, plus the appraised value of each REO Property, if
any, included in REMIC I, such appraisal to be conducted by an appraiser
mutually agreed upon by the Master Servicer and the Trustee in their reasonable
discretion and (B) the aggregate fair market value of all of the assets in REMIC
I (as determined by the Master Servicer, with the consent of the Trustee, as of
the close of business on the third Business Day next preceding the date upon
which notice of any such termination is furnished to Certificateholders pursuant
to the third paragraph of this Section 9.01).
(b) The Master Servicer shall have the right to purchase all of the
Mortgage Loans and each REO Property remaining in REMIC I pursuant to clause (i)
of the preceding paragraph no later than the Determination Date in the month
immediately preceding the Distribution Date on which the Certificates will be
retired; provided, however, that the Master Servicer, as provided above, may
elect to purchase all of the Mortgage Loans and each REO Property remaining in
REMIC I pursuant to clause (i) above only if the aggregate Stated Principal
Balance of the Mortgage Loans (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and each REO Property remaining in REMIC I at the time of such election
is reduced to less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans at the Cut-off Date. For federal income tax purposes, the
purchase by the Master Servicer of all Mortgage Loans and all REO Properties in
REMIC I is intended to facilitate a redemption of the Certificates pursuant to a
"cleanup call" within the meaning of Treasury regulation section 1.860G-2(j).
Notwithstanding the foregoing, the Master Servicer shall have the right to
transfer, sell or assign its rights to purchase all of the Mortgage Loans and
each REO Property remaining in REMIC I.
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(c) Notice of the liquidation of the Certificates shall be given
promptly by the Trustee by letter to Certificateholders mailed (a) in the event
such notice is given in connection with the purchase of the Mortgage Loans and
each REO Property remaining in REMIC I by the Master Servicer, not earlier than
the 15th day and not later than the 25th day of the month next preceding the
month of the final distribution on the Certificates or (b) otherwise during the
month of such final distribution on or before the Determination Date in such
month, in each case specifying (i) the Distribution Date upon which REMIC I will
terminate and final payment of the Certificates will be made upon presentation
and surrender of the Certificates at the office of the Trustee therein
designated, (ii) the amount of any such final payment, (iii) that no interest
shall accrue in respect of the Certificates from and after the Interest Accrual
Period relating to the final Distribution Date therefor and (iv) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office of the Trustee. In the event such notice is given in connection with the
purchase of all of the Mortgage Loans and each REO Property remaining in REMIC I
by the Master Servicer, the Master Servicer shall deliver to the Trustee for
deposit in the Distribution Account not later than the related Master Servicer
Remittance Date of the month in which such distribution will be made an amount
in immediately available funds equal to the Termination Price. Upon
certification to the Trustee by a Servicing Officer of the making of such final
deposit, the Trustee shall promptly release or cause to be released to the
Master Servicer the Mortgage Files for the remaining Mortgage Loans in REMIC I,
and the Trustee shall execute all assignments, endorsements and other
instruments necessary to effectuate such transfer.
(d) Upon presentation of the Certificates by the Certificateholders
on the final Distribution Date, the Trustee shall distribute to each
Certificateholder so presenting and surrendering its Certificates the amount
otherwise distributable on such Distribution Date in accordance with Section
4.01 in respect of the Certificates so presented and surrendered. Any funds not
distributed to any Holder or Holders of Certificates being retired on such
Distribution Date because of the failure of such Holder or Holders to tender
their Certificates shall, on such date, be set aside and held in trust by the
Trustee and credited to the account of the appropriate non-tendering Holder or
Holders. If any Certificates as to which notice has been given pursuant to this
Section 9.01 shall not have been surrendered for cancellation within six months
after the time specified in such notice, the Trustee shall mail a second notice
to the remaining non-tendering Certificateholders to surrender their
Certificates for cancellation in order to receive the final distribution with
respect thereto. If within one year after the second notice all such
Certificates shall not have been surrendered for cancellation, the Trustee
shall, directly or through an agent, mail a final notice to remaining related
non-tendering Certificateholders concerning surrender of their Certificates. The
costs and expenses of maintaining the funds in trust and of contacting such
Certificateholders shall be paid out of the assets remaining in the trust funds.
If within one year after the final notice any such Certificates shall not have
been surrendered for cancellation, the Trustee shall pay to Citigroup Global
Markets Inc. all such amounts, and all rights of non-tendering
Certificateholders in or to such amounts shall thereupon cease. No interest
shall accrue or be payable to any Certificateholder on any amount held in trust
by the Trustee as a result of such Certificateholder's failure to surrender its
Certificate(s) for final payment thereof in accordance with this Section 9.01.
Immediately following the deposit of funds in trust hereunder in
respect of the Certificates, the Trust Fund shall terminate.
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SECTION 9.02. Additional Termination Requirements.
(a) In the event that the Master Servicer purchases all the Mortgage
Loans and each REO Property, the Trust Fund shall be terminated in accordance
with the following additional requirements (or in connection with the final
payment on or other liquidation of the last Mortgage Loan or REO Property
remaining in REMIC I, the additional requirement specified in clause (i) below):
(i) The Trustee shall specify the first day in the 90-day
liquidation period in a statement attached to REMIC I's final Tax
Return pursuant to Treasury regulation Section 1.860F-1, and such
termination shall satisfy all requirements of a qualified
liquidation under Section 860F of the Code and any regulations
thereunder, as evidenced by an Opinion of Counsel obtained at the
expense of the Master Servicer;
(ii) During such 90-day liquidation period, and at or prior to
the time of making of the final payment on the Certificates, the
Trustee shall sell all of the assets of REMIC I to the Master
Servicer for cash; and
(iii) At the time of the making of the final payment on the
Certificates, the Trustee shall distribute or credit, or cause to be
distributed or credited, to the Holders of the Residual Certificates
all cash on hand in REMIC I (other than cash retained to meet
claims), and the Trust Fund shall terminate at that time.
(b) At the expense of the Master Servicer (or in the event of
termination under Section 9.01(a)(ii), at the expense of the Trustee), the
Trustee shall prepare or cause to be prepared the documentation required in
connection with the adoption of a plan of liquidation for each Trust REMIC
pursuant to this Section 9.02.
(c) By their acceptance of Certificates, the Holders thereof hereby
agree to authorize the Trustee to specify the 90-day liquidation period for each
Trust REMIC, which authorization shall be binding upon all successor
Certificateholders.
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ARTICLE X
REMIC PROVISIONS
SECTION 10.01. REMIC Administration.
(a) The Trustee shall elect to treat each Trust REMIC as a REMIC
under the Code and, if necessary, under applicable state law. Such election
shall be made by the Trustee on Form 1066 or other appropriate federal tax or
information return or any appropriate state return for the taxable year ending
on the last day of the calendar year in which the Certificates are issued. For
the purposes of the REMIC elections in respect of each Trust REMIC, the REMIC I
Regular Interests shall be designated as the Regular Interests in REMIC I and
the Class R-I Interest shall be designated as the sole class of Residual
Interests in REMIC I, the REMIC II Regular Interests shall be designated as the
Regular Interests in REMIC II and the Class R-II Interest shall be designated as
the sole class of Residual Interests in REMIC II and the Certificates (other
than the Class R Certificates) shall be designated as the Regular Interests in
REMIC III and the Class R-III Interest shall be designated as the sole class of
Residual Interests in REMIC III. The Trustee shall not permit the creation of
any "interests" (within the meaning of Section 860G of the Code) in any Trust
REMIC other than the interests represented by the Certificates.
(b) The Closing Date is hereby designated as the "Startup Day"
within the meaning of Section 860G(a)(9) of the Code of each Trust REMIC.
(c) The Trustee shall pay out of its own funds, without any right of
reimbursement, any and all expenses relating to any tax audit of the Trust Fund
(including, but not limited to, any professional fees or any administrative or
judicial proceedings with respect to any Trust REMIC that involve the Internal
Revenue Service or state tax authorities), other than the expense of obtaining
any tax related Opinion of Counsel as specified herein. The Trustee, as agent
for each Trust REMIC's tax matters person, shall (i) act on behalf of the Trust
Fund in relation to any tax matter or controversy involving any Trust REMIC and
(ii) represent the Trust Fund in any administrative or judicial proceeding
relating to an examination or audit by any governmental taxing authority with
respect thereto. The holder of the largest Percentage Interest of Residual
Certificates shall be designated, in the manner provided under Treasury
regulations section 1.860F-4(d) and Treasury regulations section
301.6231(a)(7)-1, as the tax matters person of each Trust REMIC. By their
acceptance thereof, the holder of the largest Percentage Interest of the
Residual Certificates hereby agrees to irrevocably appoint the Trustee or an
Affiliate as its agent to perform all of the duties of the tax matters person
for the Trust Fund.
(d) The Trustee shall prepare, sign and file all of the Tax Returns
in respect of each Trust REMIC. The expenses of preparing and filing such
returns shall be borne by the Trustee without any right of reimbursement
therefor. The Master Servicer shall provide on a timely basis to the Trustee or
its designee such information with respect to the assets of the Trust Fund as is
in its possession and reasonably required by the Trustee to enable it to perform
its obligations under this Article.
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(e) The Trustee shall perform on behalf of each Trust REMIC all
reporting and other tax compliance duties that are the responsibility of such
Trust REMIC under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Trustee shall provide (i) to any Transferor of a
Residual Certificate such information as is necessary for the application of any
tax relating to the transfer of a Residual Certificate to any Person who is not
a Permitted Transferee, (ii) to the Certificateholders such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption as required) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who will
serve as the representative of each Trust REMIC. The Master Servicer shall
provide on a timely basis to the Trustee such information with respect to the
assets of the Trust Fund, including, without limitation, the Mortgage Loans, as
is in its possession and reasonably required by the Trustee to enable it to
perform its obligations under this subsection. In addition, the Depositor shall
provide or cause to be provided to the Trustee, within ten (10) days after the
Closing Date, all information or data that the Trustee reasonably determines to
be relevant for tax purposes as to the valuations and issue prices of the
Certificates, including, without limitation, the price, yield, prepayment
assumption and projected cash flow of the Certificates.
(f) The Master Servicer and the Trustee shall take such action and
shall cause each Trust REMIC to take such action as shall be necessary to create
or maintain the status thereof as a REMIC under the REMIC Provisions. The Master
Servicer and the Trustee shall not take any action, cause the Trust Fund to take
any action or fail to take (or fail to cause to be taken) any action that, under
the REMIC Provisions, if taken or not taken, as the case may be, could (i)
endanger the status of any Trust REMIC as a REMIC or (ii) result in the
imposition of a tax upon the Trust Fund (including but not limited to the tax on
prohibited transactions as defined in Section 860F(a)(2) of the Code and the tax
on contributions to a REMIC set forth in Section 860G(d) of the Code) (either
such event, an "Adverse REMIC Event") unless the Trustee has received an Opinion
of Counsel, addressed to the Trustee (at the expense of the party seeking to
take such action but in no event at the expense of the Trustee, to the extent
the Trustee is taking such action on behalf of the Certificateholders) to the
effect that the contemplated action will not, with respect to any Trust REMIC,
endanger such status or result in the imposition of such a tax, nor shall the
Master Servicer take or fail to take any action (whether or not authorized
hereunder) as to which the Trustee has advised it in writing that it has
received an Opinion of Counsel to the effect that an Adverse REMIC Event could
occur with respect to such action. In addition, prior to taking any action with
respect to any Trust REMIC or the respective assets of each, or causing any
Trust REMIC to take any action, which is not contemplated under the terms of
this Agreement, the Master Servicer will consult with the Trustee or its
designee, in writing, with respect to whether such action could cause an Adverse
REMIC Event to occur with respect to any Trust REMIC, and the Master Servicer
shall not take any such action or cause any Trust REMIC to take any such action
as to which the Trustee has advised it in writing that an Adverse REMIC Event
could occur. The Trustee may consult with counsel to make such written advice,
and the cost of same shall be borne by the party seeking to take the action not
permitted by this Agreement, but in no event shall such cost be an expense of
the Trustee (to the extent the Trustee is taking such action on behalf of the
Certificateholders). At all times as may be required by the Code, the Trustee
will ensure that substantially all of the assets of each Trust REMIC
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will consist of "qualified mortgages" as defined in Section 860G(a)(3) of the
Code and "permitted investments" as defined in Section 860G(a)(5) of the Code.
(g) In the event that any tax is imposed on "prohibited
transactions" of any Trust REMIC as defined in Section 860F(a)(2) of the Code,
on the "net income from foreclosure property" of REMIC I as defined in Section
860G(c) of the Code, on any contributions to any Trust REMIC after the Startup
Day therefor pursuant to Section 860G(d) of the Code, or any other tax is
imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Article X, (ii) to the Master Servicer pursuant to
Section 10.03 hereof, if such tax arises out of or results from a breach by the
Master Servicer of any of its obligations under Article III or this Article X,
or otherwise (iii) against amounts on deposit in the Distribution Account and
shall be paid by withdrawal therefrom.
(h) On or before April 15th of each calendar year, commencing April
15, 2005, the Trustee shall deliver to the Master Servicer and each Rating
Agency a certificate from a Responsible Officer of the Trustee stating the
Trustee's compliance with this Article X (without regard to the actions of any
Person other than the Trustee).
(i) The Trustee shall, for federal income tax purposes, maintain
books and records with respect to each Trust REMIC on a calendar year and on an
accrual basis.
(j) Following the Startup Day, the Trustee shall not accept any
contributions of assets to any Trust REMIC other than in connection with any
Qualified Substitute Mortgage Loan delivered in accordance with Section 2.03
unless it shall have received an Opinion of Counsel to the effect that the
inclusion of such assets in such Trust REMIC will not cause any Trust REMIC to
fail to qualify as a REMIC at any time that any Certificates are outstanding or
subject any Trust REMIC to any tax under the REMIC Provisions or other
applicable provisions of federal, state and local law or ordinances.
(k) Neither the Trustee nor the Master Servicer shall enter into any
arrangement by which any Trust REMIC will receive a fee or other compensation
for services nor permit any Trust REMIC to receive any income from assets other
than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.
SECTION 10.02. Prohibited Transactions and Activities.
None of the Depositor, the Master Servicer or the Trustee shall
sell, dispose of or substitute for any of the Mortgage Loans (except in
connection with (i) the foreclosure of a Mortgage Loan, including but not
limited to, the acquisition or sale of a Mortgaged Property acquired by deed in
lieu of foreclosure, (ii) the bankruptcy of any Trust REMIC, (iii) the
termination of any Trust REMIC pursuant to Article IX of this Agreement, (iv) a
substitution pursuant to Article II of this Agreement or (v) a purchase of
Mortgage Loans pursuant to Article II or III of this Agreement), nor acquire any
assets for any Trust REMIC (other than REO Property acquired in respect of a
defaulted Mortgage Loan), nor sell or dispose of any investments in the
Collection Account or the Distribution
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Account for gain, nor accept any contributions to any Trust REMIC after the
Closing Date (other than a Qualified Substitute Mortgage Loan delivered in
accordance with Section 2.03), unless it has received an Opinion of Counsel,
addressed to the Trustee (at the expense of the party seeking to cause such
sale, disposition, substitution, acquisition or contribution but in no event at
the expense of the Trustee, to the extent the Trustee is taking such action on
behalf of the Certificateholders) that such sale, disposition, substitution,
acquisition or contribution will not (a) affect adversely the status of any
Trust REMIC as a REMIC or (b) cause any Trust REMIC to be subject to a tax on
"prohibited transactions" or "contributions" pursuant to the REMIC Provisions.
SECTION 10.03. Master Servicer and Trustee Indemnification.
(a) The Trustee agrees to indemnify the Trust Fund, the Depositor
and the Master Servicer for any taxes and costs including, without limitation,
any reasonable attorneys fees imposed on or incurred by the Trust Fund, the
Depositor or the Master Servicer as a result of a breach of the Trustee's
covenants set forth in this Article X.
(b) The Master Servicer agrees to indemnify the Trust Fund, the
Depositor and the Trustee for any taxes and costs including, without limitation,
any reasonable attorneys' fees imposed on or incurred by the Trust Fund, the
Depositor or the Trustee, as a result of a breach of the Master Servicer's
covenants set forth in this Article X.
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ARTICLE XI
MISCELLANEOUS PROVISIONS
SECTION 11.01. Amendment.
This Agreement may be amended from time to time by the Depositor,
the Master Servicer and the Trustee without the consent of any of the
Certificateholders, (i) to cure any ambiguity or defect, (ii) to correct, modify
or supplement any provisions herein (including to give effect to the
expectations of Certificateholders), (iii) to amend the provisions of Section
4.07 or (iv) to make any other provisions with respect to matters or questions
arising under this Agreement which shall not be inconsistent with the provisions
of this Agreement, provided that such action shall not adversely affect in any
material respect the interests of any Certificateholder, as evidenced by either
(a) an Opinion of Counsel delivered to the Trustee or (b) written notice from
the Rating Agencies that such action will not result in the reduction or
withdrawal of the rating of any outstanding Class of Certificates with respect
to which it is a Rating Agency. No amendment shall be deemed to adversely affect
in any material respect the interests of any Certificateholder who shall have
consented thereto, and no Opinion of Counsel shall be required to address the
effect of any such amendment on any such consenting Certificateholder.
This Agreement may also be amended from time to time by the
Depositor, the Master Servicer and the Trustee with the consent of the Holders
of Certificates entitled to at least 66% of the Voting Rights for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Holders of Certificates; provided, however, that no such amendment shall (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in a
manner, other than as described in (i), without the consent of the Holders of
Certificates of such Class evidencing at least 66% of the Voting Rights
allocated to such Class, or (iii) modify the consents required by the
immediately preceding clauses (i) and (ii) without the consent of the Holders of
all Certificates then outstanding. Notwithstanding any other provision of this
Agreement, for purposes of the giving or withholding of consents pursuant to
this Section 11.01, Certificates registered in the name of the Depositor or the
Master Servicer or any Affiliate thereof shall be entitled to Voting Rights with
respect to matters affecting such Certificates.
Notwithstanding any contrary provision of this Agreement, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel to the effect that such amendment will
not result in the imposition of any tax on any Trust REMIC pursuant to the REMIC
Provisions or cause any Trust REMIC to fail to qualify as a REMIC at any time
that any Certificates are outstanding.
Promptly after the execution of any such amendment the Trustee shall
furnish a copy of such amendment to each Certificateholder.
-168-
It shall not be necessary for the consent of Certificateholders
under this Section 11.01 to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.
Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel (which Opinion shall not be an
expense of the Trustee or the Trust Fund) satisfactory to the Trustee that such
amendment is permitted and is not prohibited by this Agreement and that all
requirements for amending this Agreement have been complied with.
The cost of any Opinion of Counsel to be delivered pursuant to this
Section 11.01 shall be borne by the Person seeking the related amendment, but in
no event shall such Opinion of Counsel be an expense of the Trustee, to the
extent the Trustee is taking such action on behalf of the Certificateholders.
Notwithstanding the foregoing, the Trustee may, but shall not be
obligated to, enter into any amendment pursuant to this Section that affects its
rights, duties and immunities under this Agreement or otherwise.
SECTION 11.02. Recordation of Agreement; Counterparts.
To the extent permitted by applicable law, this Agreement is subject
to recordation in all appropriate public offices for real property records in
all the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the expense of the Certificateholders, but only upon
direction of the Trustee accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.
For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.
SECTION 11.03. Limitation on Rights of Certificateholders.
The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the Trust Fund, nor 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 the
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.
No Certificateholder shall have any right to vote (except as
expressly provided for herein) or in any manner otherwise control the operation
and management of the Trust Fund, or the obligations of the parties hereto, nor
shall anything herein set forth, or contained in the terms of any
-169-
of the Certificates, be construed so as to constitute the Certificateholders
from time to time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.
No Certificateholder shall have any right by virtue of any provision
of this Agreement to institute any suit, action or proceeding in equity or at
law upon or under or with respect to this Agreement, unless (i) such Holder
previously shall have given to the Trustee a written notice of default and of
the continuance thereof, as hereinbefore provided, and (ii) the Holders of
Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatsoever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.
SECTION 11.04. Governing Law.
This Agreement shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.
SECTION 11.05. Notices.
All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when received if personally
delivered at or mailed by first class mail, postage prepaid, or by express
delivery service or delivered in any other manner specified herein, to (a) in
the case of the Depositor, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Mortgage Finance Group (telecopy number (000) 000-0000), or such
other address or telecopy number as may hereafter be furnished to the Master
Servicer and the Trustee in writing by the Depositor, (b) in the case of the
Master Servicer, National City Mortgage Co., 0000 Xxxxxxx Xxxxx, Xxxxxxxxxx, XX
00000, Attention: Xxxx Xxxx Xxxxxxxx (telecopy number 937-910-3725), or such
other address or telecopy number as may hereafter be furnished to the Trustee
and the Depositor in writing by the Master Servicer, and (c) in the case of the
Trustee, U.S. Bank National Association, 00 Xxxxxxxxxx Xxxxxx, XX-XX-XX0X, Xx.
Xxxx, Xxxxxxxxx, 00000-0000, Attention: Structured Finance/CMLTI 2004-NCM2
(telecopy number (000) 000-0000), or such other address or telecopy number as
may hereafter be furnished to the Master Servicer and the Depositor in writing
by the Trustee. Any notice required or permitted to be given to a
Certificateholder shall be given by first
-170-
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
Agreement shall be conclusively presumed to have been duly given when mailed,
whether or not the Certificateholder receives such notice. A copy of any notice
required to be telecopied hereunder also shall be mailed to the appropriate
party in the manner set forth above.
SECTION 11.06. Severability of Provisions.
If any one or more of the covenants, agreements, provisions or terms
of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.
SECTION 11.07. Notice to Rating Agency.
The Trustee shall use its best efforts promptly to provide notice to
the Rating Agency with respect to each of the following of which it has actual
knowledge:
(a) Any material change or amendment to this Agreement;
(b) The occurrence of any Master Servicer Event of Default
that has not been cured or waived;
(c) The resignation or termination of the Master Servicer or
the Trustee;
(d) The repurchase or substitution of Mortgage Loans pursuant
to or as contemplated by Section 2.03;
(e) The final payment to the Holders of any Class of
Certificates;
(f) Any change in the location of the Collection Account or
the Distribution Account;
(g) Any event that would result in the inability of the
Trustee, were it to succeed as Master Servicer, to make advances
regarding delinquent Mortgage Loans; and
(h) The filing of any claim under the Master Servicer's
blanket bond and errors and omissions insurance policy required by
Section 3.14 or the cancellation or material modification of
coverage under any such instrument.
In addition, the Trustee shall promptly furnish to the Rating Agency
copies of each report to Certificateholders described in Section 4.02 and the
Master Servicer, as required pursuant to Section 3.20 and Section 3.21, shall
promptly furnish to the Rating Agency copies of the following:
-171-
1. Each annual statement as to compliance described in
Section 3.20; and
2. Each annual independent public accountants' servicing
report described in Section 3.21.
Any such notice pursuant to this Section 11.07 shall be in writing
and shall be deemed to have been duly given if personally delivered at or mailed
by first class mail, postage prepaid, or by express delivery service to Xxxxx'x
Investors Service, Inc., 00 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Residential Mortgage Surveillance Group, and Fitch Ratings, Xxx Xxxxx Xxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, or such other addresses as each such Rating
Agency may designate in writing to the parties hereto.
SECTION 11.08. Article and Section References.
All article and section references used in this Agreement, unless
otherwise provided, are to articles and sections in this Agreement.
SECTION 11.09. Grant of Security Interest.
It is the express intent of the parties hereto that the conveyance
of the Mortgage Loans by the Depositor to the Trustee be, and be construed as, a
sale of the Mortgage Loans by the Depositor and not a pledge of the Mortgage
Loans by the Depositor to secure a debt or other obligation of the Depositor.
However, in the event that, notwithstanding the aforementioned intent of the
parties, the Mortgage Loans are held to be property of the Depositor, then, (a)
it is the express intent of the parties that such conveyance be deemed a pledge
of the Mortgage Loans by the Depositor to the Trustee to secure a debt or other
obligation of the Depositor and (b)(1) this Agreement shall also be deemed to be
a security agreement within the meaning of Articles 8 and 9 of the Uniform
Commercial Code as in effect from time to time in the State of New York; (2) the
conveyance provided for in Section 2.01 hereof shall be deemed to be a grant by
the Depositor to the Trustee of a security interest in all of the Depositor's
right, title and interest in and to the Mortgage Loans and all amounts payable
to the holders of the Mortgage Loans in accordance with the terms thereof and
all proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts, other than investment earnings, from time to time held or invested
in the Collection Account and the Distribution Account, whether in the form of
cash, instruments, securities or other property; (3) the obligations secured by
such security agreement shall be deemed to be all of the Depositor's obligations
under this Agreement, including the obligation to provide to the
Certificateholders the benefits of this Agreement relating to the Mortgage Loans
and the Trust Fund; and (4) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the purpose of perfecting such security interest under applicable law.
Accordingly, the Depositor hereby grants to the Trustee a security interest in
the Mortgage Loans and all other property described in clause (2) of the
preceding sentence, for the purpose of securing to the Trustee the performance
by the Depositor of the obligations described in clause (3) of the preceding
sentence. Notwithstanding the foregoing, the parties hereto intend the
conveyance pursuant to Section 2.01 to be a true, absolute
-172-
and unconditional sale of the Mortgage Loans and assets constituting the Trust
Fund by the Depositor to the Trustee.
-173-
IN WITNESS WHEREOF, the Depositor, the Master Servicer and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto duly authorized, in each case as of the day and year first above
written.
CITIGROUP MORTGAGE LOAN TRUST INC.,
as Depositor
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Asst. Vice President
NATIONAL CITY MORTGAGE CO.,
as Master Servicer
By: /s/ Xxxxx X. Xxxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxxx
Title: Senior Vice President
U.S. BANK NATIONAL ASSOCIATION, as Trustee
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the 23RD day of August 2004, before me, a notary public in and
for said State, personally appeared XXXXXXX X. XXXXX, known to me to be a(n)
ASST. VICE PRESIDENT of Citigroup Mortgage Loan Trust Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxx Xxxxxxxxx
-----------------------------------------
Notary Public
[Notarial Seal]
STATE OF OHIO )
) ss.:
COUNTY OF XXXXXXXXXX )
On the 23RD day of August 2004, before me, a notary public in and
for said State, personally appeared XXXXX X. XXXXXXX, known to me to be a(n)
SENIOR VICE PRESIDENT of National City Mortgage Co., one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxxxxx X. Xxxxxxxx
-----------------------------------------
Notary Public
[Notarial Seal]
STATE OF MINNESOTA )
) ss.:
COUNTY OF XXXXXX )
On the 23RD day of August 2004, before me, a notary public in and
for said State, personally appeared XXXXXXX X. XXXXX, known to me to be a(n)
VICE PRESIDENT of U.S. Bank National Association, one of the entities that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
entity executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
/s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Notary Public
[Notarial Seal]
EXHIBIT A-1
FORM OF CLASS IA-CB-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IA-CB-1
Pass-Through Rate: 5.50% per annum Certificates as of the Issue Date:
$40,781,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: $40,781,000.00
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G GX 0
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-1-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IA-CB-1 Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class IA-CB-1 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IA-CB-1 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-1-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee, and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-1-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-1-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August __, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-1-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IA-CB-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IA-CB-2
Pass-Through Rate: 6.75% per annum Certificates as of the Issue Date:
$111,917,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: $ 111,917,000.00
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G GY 8
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-2-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IA-CB-2 Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class IA-CB-2 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IA-CB-2 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-2-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-2-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-2-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-2-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-2-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IA-CB-3 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IA-CB-3
Pass-Through Rate: 7.50% per annum Certificates as of the Issue Date:
$20,434,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $20,434,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G GZ 5
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-3-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IA-CB-3 Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class IA-CB-3 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortage Loan Trust, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IA-CB-3 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
A-3-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-3-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-3-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-3-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-3-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IIA-CB-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IIA-CB-1
Pass-Through Rate: 5.50% per annum Certificates as of the Issue Date:
$95,942,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $95,942,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HA 9
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-4-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IIA-CB-1
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class IIA-CB-1 Certificates in REMIC I created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Citigroup Mortage Loan Trust, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Master
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IIA-CB-1 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
A-4-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-4-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-4-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-4-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-4-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IIA-CB-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IIA-CB-2
Pass-Through Rate: 6.75% per annum Certificates as of the Issue Date:
$147,713,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $147,713,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HB 7
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-5-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IIA-CB-2
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class IIA-CB-2 Certificates in REMIC I created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Citigroup Mortage Loan Trust, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Master
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IIA-CB-2 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-5-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-5-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-5-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-5-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-5-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IIA-CB-3 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IIA-CB-3
Pass-Through Rate: 8.00% per annum Certificates as of the Issue Date:
$30,940,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $30,940,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HC 5
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-6-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IIA-CB-3
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class IIA-CB-3 Certificates in REMIC I created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Citigroup Mortage Loan Trust, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Master
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IIA-CB-3 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-6-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-6-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-6-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-6-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-6-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IIIA-CB-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IIIA-CB-1
Pass-Through Rate: 5.00% per annum Certificates as of the Issue Date:
$26,026,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $26,026,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HD 3
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-7-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IIIA-CB-1
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class IIIA-CB-1 Certificates in REMIC I created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Citigroup Mortage Loan Trust, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Master
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IIIA-CB-1 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-7-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-7-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-7-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-7-5
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0
FORM OF CLASS IIIA-CB-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IIIA-CB-2
Pass-Through Rate: 6.50% per annum Certificates as of the Issue Date:
$21,664,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $21,664,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HE 1
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-8-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IIIA-CB-2
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class IIIA-CB-2 Certificates in REMIC I created pursuant to
a Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Citigroup Mortage Loan Trust, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Master
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IIIA-CB-2 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-8-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-8-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-8-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-8-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-8-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0
XXXXXXX X-0-0
FORM OF CLASS IVA-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IVA-1
Pass-Through Rate: 6.50% per annum Certificates as of the Issue Date:
$14,232,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $14,232,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HF 8
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-9-1-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IVA-1 Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class IVA-1 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortage Loan Trust, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IVA-1 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-9-1-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-9-1-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-9-1-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-9-1-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-9-1-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
X-0-0-0
XXXXXXX X-0-0
FORM OF CLASS IVA-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class IVA-2
Pass-Through Rate: 8.00% per annum Certificates as of the Issue Date:
$13,068,000.00
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004
Denomination: $13,068,000.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HG 6
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-9-2-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class IVA-2 Certificates
as of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class IVA-2 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortage Loan Trust, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class IVA-2 Certificates on such
Distribution Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-9-2-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-9-2-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-9-2-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-9-2-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-9-2-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-9-2-7
EXHIBIT A-10
FORM OF CLASS XS-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 2004-NCM2 Initial Notional Amount of the Class
XS-1 Certificates as of the Issue
Pass-Through Rate: 7.50% per annum Date:
Variable
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: Variable
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HJ 0
A-10-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Notional Amount of the Class XS-1 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
XS-1 Certificates in REMIC I created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Citigroup Mortgage
Loan Trust Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Master Servicer and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class XS-1 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
A-10-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Notional Amount of the Class of
Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-10-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-10-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-10-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-10-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-10-7
EXHIBIT A-11
FORM OF CLASS XS-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 2004-NCM2 Initial Notional Amount of the Class
XS-2 Certificates as of the Issue
Pass-Through Rate: 8.00% per annum Date:
Variable
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: Variable
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HK 7
A-11-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
Citigroup Mortgage Loan Trust Inc.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Notional Amount of the Class XS-2 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
XS-2 Certificates in REMIC I created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Citigroup Mortgage
Loan Trust Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Master Servicer and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class XS-2 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-11-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Notional Amount of the Class of Certificates specified on the face
hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-11-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-11-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-11-5
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-11-6
EXHIBIT A-12
FORM OF CLASS XS-3 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 2004-NCM2 Initial Notional Amount of the Class
XS-3 Certificates as of the Issue
Pass-Through Rate: 6.50% per annum Date:
Variable
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: Variable
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HL 5
A-12-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Notional Amount of the Class XS-3 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
XS-3 Certificates in REMIC I created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Citigroup Mortgage
Loan Trust Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Master Servicer and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class XS-3 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-12-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Notional Amount of the Class of Certificates specified on the face
hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-12-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-12-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-12-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-12-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-12-7
EXHIBIT A-13
FORM OF CLASS XS-4 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 2004-NCM2 Initial Notional Amount of the Class
XS-4 Certificates as of the Issue
Pass-Through Rate: 8.00% per annum Date:
Variable
Cut-off Date and date of Pooling and
Servicing Agreement: August 1, 2004 Denomination: Variable
First Distribution Date: September 27, Master Servicer: National City
2004 Mortgage Co.
No. 1 Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HM 3
A-13-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Notional Amount of the Class XS-4 Certificates as of the Issue
Date) in that certain beneficial ownership interest evidenced by all the Class
XS-4 Certificates in REMIC I created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Citigroup Mortgage
Loan Trust Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Master Servicer and the Trustee, a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of the acceptance hereof
assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class XS-4 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-13-2
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Notional Amount of the Class of Certificates specified on the face
hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to
A-13-3
be paid to them pursuant to the Agreement following the earlier of (i) the final
payment or other liquidation (or any advance with respect thereto) of the last
Mortgage Loan and REO Property remaining in REMIC I and (ii) the purchase by the
party designated in the Agreement at a price determined as provided in the
Agreement from REMIC I of all the Mortgage Loans and all property acquired in
respect of such Mortgage Loans. The Agreement permits, but does not require, the
party designated in the Agreement to purchase from REMIC I all the Mortgage
Loans and all property acquired in respect of any Mortgage Loan at a price
determined as provided in the Agreement. The exercise of such right will effect
early retirement of the Certificates; however, such right to purchase is subject
to the aggregate Stated Principal Balance of the Mortgage Loans at the time of
purchase being less than 5% of the aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-13-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-13-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-13-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-13-7
EXHIBIT A-14
FORM OF CLASS PO-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class PO-1
Cut-off Date and date of Pooling and Certificates as of the Issue Date:
Servicing Agreement: August 1, 2004 $50,113.00
First Distribution Date: September 27, Denomination: $50,113.00
2004
Master Servicer: National City
No. 1 Mortgage Co.
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HN 1
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-14-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class PO-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class PO-1 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class PO-1 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate does not have a Pass-Through Rate and is not
entitled to any distributions of interest.
A-14-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-14-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-14-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-14-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-14-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-14-7
EXHIBIT A-15
FORM OF CLASS PO-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 2004-NCM2 Certificate Principal Balance of the
Class PO-2 Certificates as of the
Cut-off Date and date of Pooling and Issue Date: $213,161.00
Servicing Agreement: August 1, 2004
Denomination: $213,161.00
First Distribution Date: September 27,
2004 Master Servicer: National City
Mortgage Co.
No. 1
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HP 6
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-15-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class PO-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class PO-2 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class PO-2 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate does not have a Pass-Through Rate and is not
entitled to any distributions of interest.
A-15-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-15-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-15-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-15-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-15-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-15-7
EXHIBIT A-16
FORM OF CLASS PO-3 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class PO-3
Cut-off Date and date of Pooling and Certificates as of the Issue Date:
Servicing Agreement: August 1, 2004 $210,476.00
First Distribution Date: September 27, Denomination: $210,476.00
2004
Master Servicer: National City
No. 1 Mortgage Co.
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HQ 4
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-16-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class PO-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class PO-3 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class PO-3 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate does not have a Pass-Through Rate and is not
entitled to any distributions of interest.
A-16-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-16-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-16-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-16-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-16-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-16-7
EXHIBIT A-17
FORM OF CLASS PO-4 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class PO-4
Cut-off Date and date of Pooling and Certificates as of the Issue Date:
Servicing Agreement: August 1, 2004 $318,539.00
First Distribution Date: September 27, Denomination: $318,539.00
2004
Master Servicer: National City
No. 1 Mortgage Co.
Trustee: U.S. Bank National
Association
Issue Date: August 25, 2004
CUSIP: 17307G HR 2
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-17-1
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class PO-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class PO-4 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class PO-4 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate does not have a Pass-Through Rate and is not
entitled to any distributions of interest.
A-17-2
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the "Certificates") and representing a Percentage
Interest in the Class of Certificates equal to the denomination specified on the
face hereof divided by the aggregate Certificate Principal Balance of the Class
of Certificates specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-17-3
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-17-4
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-17-5
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-17-6
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-17-7
EXHIBIT A-18
FORM OF CLASS B-1 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES TO THE EXTENT
DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
ANY PURCHASER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
REPRESENTATION SET FORTH IN SECTION 5.02(c) OF THE POOLING AND SERVICING
AGREEMENT.
A-18-1
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class B-1 Certificates
Pass-Through Rate: Variable as of the Issue Date: $11,943,000.00
Cut-off Date and date of Pooling and Denomination: $11,943,000.00
Servicing Agreement: August 1, 2004
Master Servicer: National City
First Distribution Date: September 27, Mortgage Co.
2004
Trustee: U.S. Bank National
No. 1 Association
Issue Date: August 25, 2004
CUSIP: 17307G HS 0
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-18-2
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class B-1Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class B-1 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class B-1 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-18-3
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
Any purchaser of this Certificate shall be deemed to have made the
representation set forth in section 5.02 (c) of the Agreement.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-18-4
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-18-5
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-18-6
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-18-7
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-18-8
EXHIBIT A-19
FORM OF CLASS B-2 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND THE CLASS
B-1 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
AGREEMENT REFERRED TO HEREIN.
ANY PURCHASER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
REPRESENTATION SET FORTH IN SECTION 5.02(c) OF THE POOLING AND SERVICING
AGREEMENT.
A-19-1
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class B-2 Certificates
Pass-Through Rate: Variable as of the Issue Date: $6,943,000.00
Cut-off Date and date of Pooling and Denomination: $6,943,000.00
Servicing Agreement: August 1, 2004
Master Servicer: National City
First Distribution Date: September 27, Mortgage Co.
2004
Trustee: U.S. Bank National
No. 1 Association
Issue Date: August 25, 2004
CUSIP: 17307G HT 8
DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.
A-19-2
MORTGAGE PASS-THROUGH CERTIFICATE
evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate, first lien mortgage loans (the "Mortgage Loans") formed
and sold by
CITIGROUP MORTGAGE LOAN TRUST INC.
THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
CITIGROUP MORTGAGE LOAN TRUST INC., THE MASTER SERVICER, THE TRUSTEE OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY
OF THE UNITED STATES.
This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class B-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class B-2 Certificates in REMIC I created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Citigroup
Mortgage Loan Trust Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), the Master Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.
Pursuant to the terms of the Agreement, distributions will be made
on the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class B-2 Certificates on such Distribution
Date pursuant to the Agreement.
All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date or
otherwise by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register. Notwithstanding the above, the final distribution on this Certificate
will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.
This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass-Through Certificates of the Series specified on the
face hereof (herein called the
A-19-3
"Certificates") and representing a Percentage Interest in the Class of
Certificates equal to the denomination specified on the face hereof divided by
the aggregate Certificate Principal Balance of the Class of Certificates
specified on the face hereof.
The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.
The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Master Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the Master
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.
Any purchaser of this Certificate shall be deemed to have made the
representation set forth in section 5.02(c) of the Agreement.
As provided in the Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices or agencies appointed by the Trustee as provided in the
Agreement, duly endorsed by, or accompanied by an assignment in the form below
or other written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of the same Class in
authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.
The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.
The Depositor, the Master Servicer, the Trustee and any agent of the
Depositor, the Master Servicer or the Trustee may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Master Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.
A-19-4
The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by the Trustee and required to be paid to them pursuant to the Agreement
following the earlier of (i) the final payment or other liquidation (or any
advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
5% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.
The recitals contained herein shall be taken as statements of the
Depositor, and the Trustee assumes no responsibility for their correctness.
Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.
A-19-5
IN WITNESS WHEREOF, the Trustee has caused this Certificate to be
duly executed.
Dated: August ___, 2004
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Officer
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates referred to in the within-mentioned
Agreement.
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:______________________________
Authorized Signatory
A-19-6
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT - CUSTODIAN
TEN ENT - as tenants by the entireties (Cust) (Minor) under
Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
if survivorship and not as _______________
tenants in common (State)
Additional abbreviations may also be used though
not in the above list.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.
I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
Dated:
_____________________________________
Signature by or on behalf of assignor
_____________________________________
Signature Guaranteed
A-19-7
DISTRIBUTION INSTRUCTIONS
The assignee should include the following for purposes of distribution:
Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________________________
________________________________________________________________________ for the
account of _______________________________, account number ____________________,
or, if mailed by check, to______________________________________________________
_______________________________________________________________________________.
Applicable statements should be mailed to ______________________________________
_______________________________________________________________________________.
This information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.
A-19-8
EXHIBIT A-20
FORM OF CLASS B-3 CERTIFICATE
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE,
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
INTERNAL REVENUE CODE OF 1986 (THE "CODE").
THIS CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES, THE CLASS B-1
CERTIFICATES AND THE CLASS B-2 CERTIFICATES TO THE EXTENT DESCRIBED IN THE
POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
ANY PURCHASER OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE
REPRESENTATION SET FORTH IN SECTION 5.02(c) OF THE AGREEMENT.
A-20-1
Series 0000-XXX0 Xxxxxxxxx Certificate Principal
Balance of the Class B-3 Certificates
Pass-Through Rate: Variable as of the Issue Date: $4,444,000.00
Cut-off Date and date of Pooling and Denomination: $4,444,000.00
Servicing Agreement: August 1, 2004
Master Servicer: National City
First Distribution Date: September 27, Mortgage Co.
2004
Trustee: U.S. Bank National
No. 1 Association
Issue Date: August 25, 2004
CUSIP: 17307G HU 5
DISTRIBUTIONS IN