Common Contracts

Contract

January 30th, 2020

• Filed
  January 30th, 2020

issuer of the cap contract agrees to pay to the trustee for the benefit of the investment trust certificate holders the excess of One- Year LIBOR plus 100 basis points over the weighted average pool rate (COFI plus a mar- gin) times the outstanding principal balance of the Class N bond in the event One-Year LIBOR plus 100 basis points ever exceeds the weighted average pool rate. The trustee (the same institution that serves as REMIC trust trustee), in exchange for the contributed as- sets, gave the sponsor certificates rep- resenting undivided beneficial ownership in- terests in the Class N bond and the interest rate cap contract. The organizational docu- ments require the trustee to account for the regular interest and the cap contract as dis- crete property rights.