IMPAC CMB TRUST SERIES 2004-3
Issuer
and
DEUTSCHE BANK NATIONAL TRUST COMPANY
Indenture Trustee
______________________________________
INDENTURE
Dated as of March 30, 2004
______________________________________
COLLATERALIZED ASSET-BACKED BONDS
____________________
TABLE OF CONTENTS
Section Page
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ARTICLE I
Definitions
Section 1.01 Definitions.................................................2
Section 1.02 Incorporation by Reference of Trust Indenture Act...........2
Section 1.03 Rules of Construction.......................................2
Bonds
Section 2.01 Form........................................................4
Section 2.02 Execution, Authentication and Delivery......................4
Section 2.03 Acceptance of Mortgage Loans by Indenture Trustee...........5
Section 2.04 Acceptance of Derivative Contracts and Special Certificate
Cap Contract by Indenture Trustee...........................6
Conveyance of the Group 1 Subsequent Mortgage Loans............................6
Conveyance of the Group 2 Subsequent Mortgage Loans............................9
Covenants
Section 3.01 Collection of Payments with respect to the Mortgage Loans..13
Section 3.02 Maintenance of Office or Agency............................13
Section 3.03 Money for Payments To Be Held in Trust; Paying Agent.......13
Section 3.04 Existence..................................................14
Section 3.05 Payment of Principal and Interest..........................15
Section 3.06 Protection of Trust Estate.................................23
Section 3.07 Opinions as to Trust Estate................................24
Section 3.08 Performance of Obligations.................................24
Section 3.09 Negative Covenants.........................................25
Section 3.10 Annual Statement as to Compliance..........................26
Section 3.11 Representations and Warranties Concerning the Mortgage
Loans......................................................26
Section 3.12 Amendments to Servicing Agreement..........................26
Section 3.13 Master Servicer as Agent and Bailee of the Indenture
Trustee....................................................26
Section 3.14 Investment Company Act.....................................26
Section 3.15 Issuer May Consolidate, etc................................27
Section 3.16 Successor or Transferee....................................28
Section 3.17 No Other Business..........................................29
Section 3.18 No Borrowing...............................................29
Section 3.19 Guarantees, Loans, Advances and Other Liabilities..........29
Section 3.20 Capital Expenditures.......................................29
Section 3.21 Determination of Bond Interest Rate........................29
Section 3.22 Restricted Payments........................................29
Section 3.23 Notice of Events of Default................................30
Section 3.24 Further Instruments and Acts...............................30
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Section 3.25 Statements to Bondholders..................................30
Section 3.26 Certain Representations Regarding the Trust Estate.........30
Section 3.27 [Reserved].................................................31
Section 3.28 [Reserved].................................................31
Section 3.29 Replacement Derivative Contracts...........................31
Section 3.30 [Reserved].................................................32
Section 3.31 Allocation of Realized Losses..............................32
Section 3.32 The Group 1 Pre-Funding Account............................32
Section 3.33 The Group 2 Pre-Funding Account............................33
The Bonds; Satisfaction and Discharge of Indenture
Section 4.01 The Bonds..................................................36
Section 4.02 Registration of and Limitations on Transfer and Exchange
of Bonds; Appointment of Bond Registrar and Certificate
Registrar..................................................36
Section 4.03 Mutilated, Destroyed, Lost or Stolen Bonds.................37
Section 4.04 Persons Deemed Owners......................................38
Section 4.05 Cancellation...............................................38
Section 4.06 Book-Entry Bonds...........................................38
Section 4.07 Notices to Depository......................................39
Section 4.08 Definitive Bonds...........................................39
Section 4.09 Tax Treatment..............................................40
Section 4.10 Satisfaction and Discharge of Indenture....................40
Section 4.11 Application of Trust Money.................................41
Section 4.12 [Reserved].................................................41
Section 4.13 Repayment of Monies Held by Paying Agent...................41
Section 4.14 Temporary Bonds............................................41
Section 4.15 Representation Regarding ERISA.............................42
ARTICLE V
Default and Remedies
Section 5.01 Events of Default..........................................43
Section 5.02 Acceleration of Maturity; Rescission and Annulment.........43
Section 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee..........................................44
Section 5.04 Remedies; Priorities.......................................46
Section 5.05 Optional Preservation of the Trust Estate..................48
Section 5.06 Limitation of Suits........................................48
Section 5.07 Unconditional Rights of Bondholders To Receive Principal
and Interest...............................................49
Section 5.08 Restoration of Rights and Remedies.........................49
Section 5.09 Rights and Remedies Cumulative.............................49
Section 5.10 Delay or Omission Not a Waiver.............................49
Section 5.11 Control By Bondholders.....................................49
Section 5.12 Waiver of Past Defaults....................................50
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Section 5.13 Undertaking for Costs......................................50
Section 5.14 Waiver of Stay or Extension Laws...........................50
Section 5.15 Sale of Trust Estate.......................................51
Section 5.16 Action on Bonds............................................52
Section 5.17 Performance and Enforcement of Certain Obligations.........52
ARTICLE VI
The Indenture Trustee
Section 6.01 Duties of Indenture Trustee................................54
Section 6.02 Rights of Indenture Trustee................................55
Section 6.03 Individual Rights of Indenture Trustee.....................56
Section 6.04 Indenture Trustee's Disclaimer.............................56
Section 6.05 Notice of Event of Default.................................56
Section 6.06 Reports by Indenture Trustee to Holders and Tax
Administration.............................................56
Section 6.07 Compensation and Indemnity.................................56
Section 6.08 Replacement of Indenture Trustee...........................57
Section 6.09 Successor Indenture Trustee by Merger......................58
Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee....................................................58
Section 6.11 Eligibility; Disqualification..............................59
Section 6.12 Preferential Collection of Claims Against Issuer...........59
Section 6.13 Representations and Warranties.............................59
Section 6.14 Directions to Indenture Trustee............................60
Section 6.15 The Agents.................................................60
ARTICLE VII
Bondholders' Lists and Reports
Section 7.01 Issuer To Furnish Indenture Trustee Names and Addresses
of Bondholders.............................................61
Section 7.02 Preservation of Information; Communications to
Bondholders................................................61
Section 7.03 Reports of Issuer..........................................61
Section 7.04 Reports by Indenture Trustee...............................62
Section 7.05 Statements to Bondholders..................................62
ARTICLE VIII
Accounts, Disbursements and Releases
Section 8.01 Collection of Money........................................65
Section 8.02 Trust Accounts.............................................65
Section 8.03 Officer's Certificate......................................65
Section 8.04 Termination Upon Distribution to Bondholders...............66
Section 8.05 Release of Trust Estate....................................66
Section 8.06 Surrender of Bonds Upon Final Payment......................66
Section 8.07 Optional Redemption of the Bonds...........................66
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ARTICLE IX
Supplemental Indentures
Section 9.01 Supplemental Indentures Without Consent of Bondholders.....68
Section 9.02 Supplemental Indentures With Consent of Bondholders........69
Section 9.03 Execution of Supplemental Indentures.......................71
Section 9.04 Effect of Supplemental Indenture...........................71
Section 9.05 Conformity with Trust Indenture Act........................71
Section 9.06 Reference in Bonds to Supplemental Indentures..............71
ARTICLE X
Miscellaneous
Section 10.01 Compliance Certificates and Opinions, etc..................72
Section 10.02 Form of Documents Delivered to Indenture Trustee...........73
Section 10.03 Acts of Bondholders........................................74
Section 10.04 Notices etc., to Indenture Trustee Issuer and Rating
Agencies...................................................74
Section 10.05 Notices to Bondholders; Waiver.............................75
Section 10.06 Conflict with Trust Indenture Act..........................75
Section 10.07 Effect of Headings.........................................76
Section 10.09 Separability...............................................76
Section 10.10 [Reserved].................................................76
Section 10.11 Legal Holidays.............................................76
Section 10.12 GOVERNING LAW..............................................76
Section 10.13 Counterparts...............................................76
Section 10.14 Recording of Indenture.....................................76
Section 10.15 Issuer Obligation..........................................76
Section 10.16 No Petition................................................77
Section 10.17 Inspection.................................................77
EXHIBITS
Exhibit A-1 -- Form of Class [_-A[-_] Bonds
Exhibit A-2 -- Form of Class M-[_]-[_] Bonds
Exhibit A-3 -- Class 3-[_]-[_] Bonds
Exhibit B -- Mortgage Loan Schedule
Exhibit C -- Form of Initial Certification
Exhibit D -- Form of Final Certification
Exhibit E -- Derivative Contracts
Exhibit F -- Special Certificate Cap Contract
Exhibit G -- Form of Group [_] Subsequent Transfer Instrument
Appendix A -- Definitions
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This Indenture, dated as of March 30, 2004, is entered into
between Impac CMB Trust Series 2004-3, a Delaware statutory trust, as Issuer
(the "Issuer"), and Deutsche Bank National Trust Company, a national banking
association, as Indenture Trustee (the "Indenture Trustee").
WITNESSETH THAT:
Each party hereto agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer's
Collateralized Asset-Backed Bonds, Series 2004-3 (the "Bonds").
GRANTING CLAUSE
The Issuer hereby Grants to the Indenture Trustee at the
Closing Date, as trustee for the benefit of the Holders of the Bonds, all of the
Issuer's right, title and interest in and to whether now existing or hereafter
created by (a) the Mortgage Loans, Eligible Substitute Mortgage Loans and the
proceeds thereof and all rights under the Related Documents; (b) all funds on
deposit from time to time in the Collection Account allocable to the Mortgage
Loans excluding any investment income from such funds; (c) all funds on deposit
from time to time in the Payment Account and in all proceeds thereof; (d) all
funds on deposit from time to time in each of the Group 1 Pre-Funding Account
and Group 2 Pre-Funding Account and in all proceeds thereof; (e) all rights
under (i) the Mortgage Loan Purchase Agreement as assigned to the Issuer, with
respect to the Initial Mortgage Loans, and each Group 1 Subsequent Mortgage Loan
Purchase Agreement and Group 2 Subsequent Mortgage Loan Purchase Agreement as
assigned to the Issuer, with respect to the Group 1 Subsequent Mortgage Loans
and Group 2 Subsequent Mortgage Loans, respectively , (ii) the Servicing
Agreement and any Subservicing Agreements, (iii) any title, hazard and primary
insurance policies with respect to the Mortgaged Properties and (iv) the rights
with respect to the Derivative Contracts and the Special Certificate Cap
Contract as assigned to the Issuer; and (e) all present and future claims,
demands, causes and choses in action in respect of any or all of the foregoing
and all payments on or under, and all proceeds of every kind and nature
whatsoever in respect of, any or all of the foregoing and all payments on or
under, and all proceeds of every kind and nature whatsoever in the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks,
deposit accounts, rights to payment of any and every kind, and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Trust Estate" or the "Collateral").
The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Bonds, equally and ratably without prejudice, priority or distinction, and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture.
The Indenture Trustee, as trustee on behalf of the Holders of
the Bonds, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein.
ARTICLE I
Definitions
Section 1.01 DEFINITIONS. For all purposes of this Indenture, except as
otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms not otherwise defined herein shall have the meanings assigned
to such terms in the Definitions attached hereto as Appendix A which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.
Section 1.02 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the Trust Indenture Act (the
"TIA"), the provision is incorporated by reference in and made a part of this
Indenture. The following TIA terms used in this Indenture have the following
meanings:
"Commission" means the Securities and Exchange Commission.
"indenture securities" means the Bonds.
"indenture security holder" means a Bondholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the
Indenture Trustee.
"obligor" on the indenture securities means the Issuer and any
other obligor on the indenture securities.
All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rules and
have the meanings assigned to them by such definitions.
Section 1.03 RULES OF CONSTRUCTION. Unless the context otherwise
requires:
(i) a term has the meaning assigned to it;
(ii) an accounting term not otherwise defined has the
meaning assigned to it in accordance with generally accepted accounting
principles as in effect from time to time;
(iii) "or" is not exclusive;
(iv) "including" means including without limitation;
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(v) words in the singular include the plural and
words in the plural include the singular; and
(vi) any agreement, instrument or statute defined or
referred to herein or in any instrument or certificate delivered in
connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the
case of agreements or instruments) references to all attachments
thereto and instruments incorporated therein; references to a Person
are also to its permitted successors and assigns.
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ARTICLE II
Original Issuance of Bonds
Section 2.01 FORM. The Class A Bonds, Class M Bonds and Group 3 Bonds,
together with the Indenture Trustee's certificate of authentication, shall be in
substantially the form set forth in Exhibits A-1, A-2 and A-3 to this Indenture,
respectively, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture.
The Bonds shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders).
The terms of the Bonds set forth in Exhibits A-1, A-2 and A-3 to this
Indenture are part of the terms of this Indenture.
Section 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Bonds shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Bonds may be manual or
facsimile.
Bonds bearing the manual or facsimile signature of individuals who were
at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Bonds or did not hold
such offices at the date of such Bonds.
The Indenture Trustee shall upon Issuer Request authenticate and
deliver the Class 1-A, Class 2-A, Class 3-A, Class 3-M-1, Class 3-M-2, Class
3-B, Class M-1-1, Class M-2-1, Class M-3-1, Class M-4-1, Class M-5-1, Class
M-6-1, Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2, Class M-5- 2 and
Class M-6-2 Bonds for original issue in an aggregate initial principal amount of
$1,356,924,000. The Class 1-A Bonds shall be issued in an aggregate initial
principal amount of $845,000,000, the Class 2-A Bonds shall be issued in an
aggregate initial principal amount of $253,500,000, the Class 3-A Bonds shall be
issued in an aggregate initial principal amount of $37,448,000, the Class 3-M-1
Bonds shall be issued in an aggregate initial principal amount of $2,926,000,
the Class 3-M-2 Bonds shall be issued in an aggregate initial principal amount
of $5,999,000, the Class 3-B Bonds shall be issued in an aggregate initial
principal amount of $10,551,000, the Class M-1-1 Bonds shall be issued in an
aggregate initial principal amount of $22,750,000, the Class M-2-1 Bonds shall
be issued in an aggregate initial principal amount of $22,750,000, the Class
M-3-1 Bonds shall be issued in an aggregate initial principal amount of
$14,300,000, the Class M-4-1 Bonds shall be issued in an aggregate initial
principal amount of $15,600,000, the Class M-5-1 Bonds shall be issued in an
aggregate initial principal amount of $13,975,000, the Class M-6-1 Bonds shall
be issued in an aggregate initial principal amount of $11,375,000, the Class
M-1-2 Bonds shall be issued in an aggregate initial principal amount of
$22,750,000, the Class M-2-2 Bonds shall be issued in an aggregate initial
principal amount of $22,750,000, the Class M-3-2 Bonds shall be issued in an
aggregate initial principal amount of $14,300,000, the Class M-4-2 Bonds shall
be issued in an aggregate initial principal amount of $15,600,000, the Class
M-5-2 Bonds shall be issued in an aggregate initial principal amount of
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$13,975,000, and the Class M-6-2 Bonds shall be issued in an aggregate initial
principal amount of $11,375,000.
Each of the Bonds shall be dated the date of its authentication. The
Bonds shall be issuable as registered Bonds and the Bonds shall be issuable in
the minimum initial Bond Principal Balances of $25,000 and in integral multiples
of $1 in excess thereof.
No Bond shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Bond a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Bond shall be conclusive
evidence, and the only evidence, that such Bond has been duly authenticated and
delivered hereunder.
Section 2.03 ACCEPTANCE OF MORTGAGE LOANS BY INDENTURE TRUSTEE. (a) The
Indenture Trustee acknowledges receipt of, subject to the exceptions it notes
pursuant to the procedures described below, the documents (or certified copies
thereof) referred to in Section 2.1(b) of the Mortgage Loan Purchase Agreement,
and declares that it holds and will continue to hold those documents and any
amendments, replacements or supplements thereto and all other assets of the
Trust Estate as Indenture Trustee in trust for the use and benefit of all
present and future Holders of the Bonds. No later than 45 days after the Closing
Date, with respect to the Initial Mortgage Loans, or the applicable Subsequent
Transfer Date, with respect to the related Group 1 Subsequent Mortgage Loans and
Group 2 Subsequent Mortgage Loans (or, with respect to any Eligible Substitute
Mortgage Loan, within 5 days after the receipt by the Indenture Trustee thereof
and, with respect to any documents received beyond 45 days after the Closing
Date, promptly thereafter), the Indenture Trustee agrees, for the benefit of the
Bondholders, to review each Mortgage File delivered to it and to execute and
deliver, or cause to be executed and delivered, to the Seller and the Master
Servicer an Initial Certification in the form annexed hereto as Exhibit C. In
conducting such review, the Indenture Trustee will ascertain whether all
required documents described in Section 2.1(b) of (i) the Mortgage Loan Purchase
Agreement, with respect to the Initial Mortgage Loans, and (ii) the applicable
Group 1 Subsequent Mortgage Loan Purchase Agreements and Group 2 Subsequent
Mortgage Loan Purchase Agreements, with respect to the related Group 1
Subsequent Mortgage Loans and Group 2 Subsequent Mortgage Loans, respectively,
have been executed and received and whether those documents relate, determined
on the basis of the Mortgagor name, original principal balance and loan number,
to the Mortgage Loans it has received, as identified in Exhibit B to this
Indenture, as supplemented (PROVIDED, HOWEVER, that with respect to those
documents described in subclause (b)(vii) of such section, the Indenture
Trustee's obligations shall extend only to documents actually delivered pursuant
to such subclause). In performing any such review, the Indenture Trustee may
conclusively rely on the purported due execution and genuineness of any such
document and on the purported genuineness of any signature thereon. If the
Indenture Trustee finds any document constituting part of the Mortgage File not
to have been executed or received, or to be unrelated to the Mortgage Loans
identified in Exhibit B to this Indenture or to appear to be defective on its
face, the Indenture Trustee shall promptly notify the Seller of such finding and
the Seller's obligation to cure such defect or repurchase or substitute for the
related Mortgage Loan. To the extent the Indenture Trustee has not received a
Mortgage File with respect to any of the Initial Mortgage Loans by the Closing
Date, or any of the related Group 1 Subsequent Mortgage Loans and Group 2
Subsequent Mortgage Loans by the applicable Subsequent Transfer Date, the
Indenture Trustee shall
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not require the deposit of cash into the Payment Account or any other account to
cover the amount of that Mortgage Loan and shall solely treat such Mortgage Loan
as if it were in breach of a representation or warranty; provided that the
aggregate Stated Principal Balance of such Mortgage Loans does not exceed 1% of
the sum of the Cut-off Date Balance and the Group 1 Original Pre- Funded Amount
and Group 2 Original Pre-Funded Amount.
(b) No later than 180 days after the Closing Date (with respect to the
Initial Mortgage Loans) or the applicable Subsequent Transfer Date (with respect
to the related Group 1 Subsequent Mortgage Loans and Group 2 Subsequent Mortgage
Loans), the Indenture Trustee will review, for the benefit of the Bondholders,
the Mortgage Files and will execute and deliver or cause to be executed and
delivered to the Seller, a Final Certification in the form annexed hereto as
Exhibit D. In conducting such review, the Indenture Trustee will ascertain
whether an original of each document described in subclauses (b)(ii)-(iv) of
Section 2.1 of (i) the Mortgage Loan Purchase Agreement, with respect to the
Initial Mortgage Loans, and (ii) any Group 1 or Group 2 Subsequent Mortgage Loan
Purchase Agreement, with respect to the related Group 1 Subsequent Mortgage
Loans and Group 2 Subsequent Mortgage Loans, required to be recorded has been
returned from the recording office with evidence of recording thereon or a
certified copy has been obtained from the recording office. If the Indenture
Trustee finds any document constituting part of the Mortgage File has not been
received, or to be unrelated, determined on the basis of the Mortgagor name,
original principal balance and loan number, to the Mortgage Loans identified in
Exhibit B to this Indenture or to appear defective on its face, the Indenture
Trustee shall promptly notify the Seller.
(c) Upon deposit of the Repurchase Price in the Payment Account, the
Indenture Trustee shall release to the Seller the related Mortgage File and
shall execute and deliver all instruments of transfer or assignment, without
recourse, furnished to it by the Seller as are necessary to vest in the Seller
title to and rights under the related Mortgage Loan. Such purchase shall be
deemed to have occurred on the date on which certification of the deposit of the
Repurchase Price in the Payment Account was received by the Indenture Trustee.
The Indenture Trustee shall amend the applicable Mortgage Loan Schedule to
reflect such repurchase and shall promptly notify the Master Servicer and the
Rating Agencies of such amendment.
Section 2.04 ACCEPTANCE OF DERIVATIVE CONTRACTS AND SPECIAL CERTIFICATE
CAP CONTRACT BY INDENTURE TRUSTEE. The Indenture Trustee acknowledges receipt of
the Derivative Contracts and the Special Certificate Cap Contract and declares
that it holds and will continue to hold these documents and any amendments,
replacements or supplements thereto and all other assets of the Trust Estate as
Indenture Trustee in trust for the use and benefit of all present and future
Holders of the Bonds. The Indenture Trustee shall enforce the Derivative
Contracts and the Special Certificate Cap Contract in accordance with their
terms.
Section 2.05 CONVEYANCE OF THE GROUP 1 SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group 1 Pre-Funding Account, the Depositor shall on any
Group 1 Subsequent Transfer Date sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group 1 Subsequent Mortgage Loans identified
on
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the Mortgage Loan Schedule attached to the related Group 1 Subsequent Transfer
Instrument delivered by the Depositor on such Group 1 Subsequent Transfer Date,
(ii) all interest accruing thereon on and after the Subsequent Cut-off Date
(with respect to the Group 1 Subsequent Mortgage Loans) and all collections in
respect of interest and principal due after the Subsequent Cut-off Date and
(iii) all items with respect to such Group 1 Subsequent Mortgage Loans to be
delivered pursuant to Section 2.03 and the other items in the related Mortgage
Files; PROVIDED, HOWEVER, that the Depositor reserves and retains all right,
title and interest in and to principal received and interest accruing on the
Group 1 Subsequent Mortgage Loans prior to the related Subsequent Cut-off Date.
The transfer to the Indenture Trustee for deposit in the Trust Estate by the
Depositor of the Group 1 Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule shall be absolute and is intended by the Depositor, the Master
Servicer, the Indenture Trustee and the Bondholders to constitute and to be
treated as a sale of the Group 1 Subsequent Mortgage Loans by the Depositor to
the Trust Estate. The related Mortgage File for each Group 1 Subsequent Mortgage
Loan shall be delivered to the Indenture Trustee at least three (3) Business
Days prior to the related Subsequent Transfer Date.
The purchase price paid by the Indenture Trustee from amounts released
from the Group 1 Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group 1 Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).
(b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group 1 Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group 1
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the related Group 1 Subsequent Transfer Date:
(i) the Depositor shall have provided the Indenture Trustee
and the Rating Agencies with a timely Addition Notice and shall have provided
any information reasonably requested by the Indenture Trustee with respect to
the Group 1 Subsequent Mortgage Loans;
(ii) the Depositor shall have delivered to the Indenture
Trustee a duly executed Group 1 Subsequent Transfer Instrument (which
the Indenture Trustee is hereby authorized to execute), which shall
include a Mortgage Loan Schedule listing the Group 1 Subsequent
Mortgage Loans, and the Master Servicer, in its capacity as Originator,
shall have delivered a computer file containing such Mortgage Loan
Schedule to the Indenture Trustee at least three (3) Business Days
prior to the related Group 1 Subsequent Transfer Date;
(iii) as of each Group 1 Subsequent Transfer Date, as
evidenced by delivery of the related Group 1 Subsequent Transfer
Instrument, substantially in the form of Exhibit G, the Depositor shall
not be insolvent nor shall it have been rendered insolvent by such
transfer nor shall it be aware of any pending insolvency;
(iv) such sale and transfer shall not result in a material
adverse tax consequence to the Trust Estate or to the Bondholders;
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(v) the Funding Period shall not have terminated;
(vi) the Depositor shall not have selected the applicable
Group 1 Subsequent Mortgage Loans in a manner that it believed to be
adverse to the interests of the Bondholders;
(vii) the Depositor shall have delivered to the Indenture
Trustee the related Group 1 Subsequent Transfer Instrument confirming
the satisfaction of the conditions precedent specified in this Section
2.05 and, pursuant to such Group 1 Subsequent Transfer Instrument,
assigned to the Indenture Trustee without recourse for the benefit of
the Bondholders all the right, title and interest of the Depositor, in,
to and under the applicable Group 1 Subsequent Mortgage Loan Purchase
Agreement, to the extent of the related Group 1 Subsequent Mortgage
Loans; and
(viii) the Depositor shall have delivered to the Indenture
Trustee an Opinion of Counsel addressed to the Indenture Trustee and
the Rating Agencies with respect to the transfer of the applicable
Group 1 Subsequent Mortgage Loans substantially in the form of the
Opinion of Counsel delivered to the Indenture Trustee on the Closing
Date regarding the validity of the conveyance and the true sale of such
Group 1 Subsequent Mortgage Loans.
(c) The obligation of the Trust Estate to purchase a Group 1 Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately following paragraph and the accuracy
of the following representations and warranties with respect to each such Group
1 Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Mortgage Loan may not be 30 or more days delinquent as of the
last day of the month preceding the Subsequent Cut-off Date; (ii) the original
term to stated maturity of such Mortgage Loan will not be 360 months; (iii) each
Group 1 Subsequent Mortgage Loan must be an adjustable-rate mortgage loan with a
first lien on the related mortgaged property; (iv) no Group 1 Subsequent
Mortgage Loan will have a first payment date occurring after June 1, 2004; (v)
the latest maturity date of any Group 1 Subsequent Mortgage Loan will be no
later than May 1, 2034; (vi) none of the Group 1 Subsequent Mortgage Loans will
be a buydown loan; (vii) such Mortgage Loan will have a credit score of not less
than 500; (viii) such Mortgage Loan will have a Mortgage Rate as of the
applicable Subsequent Cut-off Date ranging from approximately 2.875% per annum
to approximately 10.125% per annum; (ix) none of the Group 1 Subsequent Mortgage
loans will be a New York State "high cost" loan; and (x) such Group 1 Subsequent
Mortgage Loan shall have been underwritten in accordance with the criteria set
forth under "The Mortgage Pool--Underwriting Standards" in the Prospectus
Supplement.
(d) In addition, following the purchase of any Group 1 Subsequent
Mortgage Loan by the Trust, the applicable Group 1 Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.500% to 6.000% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 70% of the
Pool Balance; (iii) have a weighted average credit score ranging from 685 to
695; (iv) have no more than 70% of such Mortgage Loans concentrated in the state
of California; (v) have no less than 80% of the mortgaged properties securing
Group 1 Loans be owner occupied; (vi) have no less than 70% of the mortgaged
properties securing Group 1 Loans be single family detached and de
8
minimis planned unit developments; (vii) have no more than 30% of the Group 1
Loans be cash-out refinance; (viii) not have any of such group of Group 1
Subsequent Mortgage Loans with a loan-to-value ratio greater than 80% not be
covered by a Primary Insurance Policy or the Radian Lender-Paid PMI Policy; (ix)
have no more than 70% of the Group 1 Loans be Mortgage Loans with an interest
only period; and (x) together with the Group 1 Loans already included in the
trust, have no more than 1.50% of such Mortgage Loans (by aggregate Stated
Principal Balance as of the Subsequent Cut-off Date) secured by mortgaged
properties located in any one zip code.
(e) Notwithstanding the foregoing, any Group 1 Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group 1
Subsequent Mortgage Loan would adversely affect the ratings of the Bonds. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group 1 Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in clauses (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group 1 Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group 1
Subsequent Transfer Date, each Rating Agency shall notify the Indenture Trustee
as to which Group 1 Subsequent Mortgage Loans, if any, shall not be included in
the transfer on such Group 1 Subsequent Transfer Date; PROVIDED, HOWEVER, that
the Master Servicer, in its capacity as Originator, shall have delivered to each
Rating Agency at least three (3) Business Days prior to such Group 1 Subsequent
Transfer Date a computer file acceptable to each Rating Agency describing the
characteristics specified in paragraphs (c) and (d) above.
Section 2.06 CONVEYANCE OF THE GROUP 2 SUBSEQUENT MORTGAGE LOANS. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group 2 Pre-Funding Account, the Depositor shall on any
Group 2 Subsequent Transfer Date sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group 2 Subsequent Mortgage Loans identified
on the Mortgage Loan Schedule attached to the related Group 2 Subsequent
Transfer Instrument delivered by the Depositor on such Group 2 Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group 2 Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group 2 Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; PROVIDED, HOWEVER, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group 2 Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group 2 Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the Master Servicer, the Indenture Trustee and the Bondholders to
constitute and to be treated as a sale of the Group 2 Subsequent Mortgage Loans
by the Depositor to the Trust Estate. The related Mortgage File for each Group 2
Subsequent Mortgage Loan shall be delivered to the Indenture Trustee at least
three (3) Business Days prior to the related Subsequent Transfer Date.
9
The purchase price paid by the Indenture Trustee from amounts released
from the Group 2 Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group 2 Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).
(b) The Depositor shall transfer to the Indenture Trustee for deposit
in the Trust Estate the applicable Group 2 Subsequent Mortgage Loans and the
other property and rights related thereto as described in paragraph (a) above,
and the Indenture Trustee shall release such applicable funds from the Group 2
Pre-Funding Account, only upon the satisfaction of each of the following
conditions on or prior to the related Group 2 Subsequent Transfer Date:
(i) the Depositor shall have provided the Indenture Trustee
and the Rating Agencies with a timely Addition Notice and shall have provided
any information reasonably requested by the Indenture Trustee with respect to
the Group 2 Subsequent Mortgage Loans;
(ii) the Depositor shall have delivered to the Indenture
Trustee a duly executed Group 2 Subsequent Transfer Instrument (which
the Indenture Trustee is hereby authorized to execute), which shall
include a Mortgage Loan Schedule listing the Group 2 Subsequent
Mortgage Loans, and the Master Servicer, in its capacity as Originator,
shall have delivered a computer file containing such Mortgage Loan
Schedule to the Indenture Trustee at least three (3) Business Days
prior to the related Group 2 Subsequent Transfer Date;
(iii) as of each Group 2 Subsequent Transfer Date, as
evidenced by delivery of the related Group 2 Subsequent Transfer
Instrument, substantially in the form of Exhibit G, the Depositor shall
not be insolvent nor shall it have been rendered insolvent by such
transfer nor shall it be aware of any pending insolvency;
(iv) such sale and transfer shall not result in a material
adverse tax consequence to the Trust Estate or to the Bondholders;
(v) the Funding Period shall not have terminated;
(vi) the Depositor shall not have selected the applicable
Group 2 Subsequent Mortgage Loans in a manner that it believed to be
adverse to the interests of the Bondholders;
(vii) the Depositor shall have delivered to the Indenture
Trustee the related Group 2 Subsequent Transfer Instrument confirming
the satisfaction of the conditions precedent specified in this Section
2.05 and, pursuant to such Group 2 Subsequent Transfer Instrument,
assigned to the Indenture Trustee without recourse for the benefit of
the Bondholders all the right, title and interest of the Depositor, in,
to and under the applicable Group 2 Subsequent Mortgage Loan Purchase
Agreement, to the extent of the related Group 2 Subsequent Mortgage
Loans; and
(viii) the Depositor shall have delivered to the Indenture
Trustee an Opinion of Counsel addressed to the Indenture Trustee and
the Rating Agencies with respect to the
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transfer of the applicable Group 2 Subsequent Mortgage Loans
substantially in the form of the Opinion of Counsel delivered to the
Indenture Trustee on the Closing Date regarding the validity of the
conveyance and the true sale of such Group 2 Subsequent Mortgage Loans.
(c) The obligation of the Trust Estate to purchase a Group 2 Subsequent
Mortgage Loan on any Subsequent Transfer Date is subject to the satisfaction of
the conditions set forth in the immediately following paragraph and the accuracy
of the following representations and warranties with respect to each such Group
2 Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the last day of the month preceding the related Subsequent Cut off Date; (ii)
the original term to stated maturity of such Subsequent Mortgage Loan will not
be less than 180 months and will not exceed 360 months; (iii) each Subsequent
Mortgage Loan must be a fixed rate Mortgage Loan with a first lien on the
related mortgaged property; (iv) no Subsequent Mortgage Loan will have a first
payment date occurring after June 1, 2004; (v) the latest maturity date of any
Subsequent Mortgage Loan will be no later than May 1, 2034; (vi) no Subsequent
Mortgage Loan will be a buydown loan; (vii) such Subsequent Mortgage Loan will
have a credit score of not less than 500; (viii) such Subsequent Mortgage Loan
will have a Mortgage Rate ranging from approximately 4.375% per annum to
approximately 11.990% per annum; (ix) none of the Group 2 Subsequent Mortgage
Loans will be a New York State "high cost" loan; and (x) such Mortgage Loan
shall have been underwritten in accordance with the criteria set forth under
"The Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.
(d) In addition, following the purchase of any Group 2 Subsequent
Mortgage Loan by the Trust, the applicable Group 2 Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 6.800% to 7.375% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 60% of the
Pool Balance; (iii) have a weighted average credit score ranging from 680 to
700; (iv) have no more than 44% of such Mortgage Loans concentrated in the state
of California; (v) have no less than 70% of the mortgaged properties be owner
occupied; (vi) have no less than 70% of the mortgaged properties be single
family detached and de minimis planned unit developments; (vii) have no more
than 42% of the Mortgage Loans be cash-out refinance; (viii) none of the
Mortgage Loans will be balloon loans; (ixi) all of the Subsequent Mortgage Loans
with a loan to value ratio greater than 80% will be covered by a Primary
Insurance Policy or the Radian Lender-Paid PMI Policy; and (x) together with the
Group 2 Loans already included in the Trust, have no more than 1.5% of such
Mortgage Loans (by aggregate Stated Principal Balance as of the applicable
Subsequent Cut-off Date) be secured by mortgaged properties located in any one
zip code.
(e) Notwithstanding the foregoing, any Group 2 Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group 2
Subsequent Mortgage Loan would adversely affect the ratings of the Bonds. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group 2 Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in clauses (c) and (d) above are accurate; PROVIDED,
HOWEVER, that the information furnished to the Rating Agencies in respect of
such Group 2 Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group 2
Subsequent Transfer Date, each Rating
11
Agency shall notify the Indenture Trustee as to which Group 2 Subsequent
Mortgage Loans, if any, shall not be included in the transfer on such Group 2
Subsequent Transfer Date; PROVIDED, HOWEVER, that the Master Servicer, in its
capacity as Originator, shall have delivered to each Rating Agency at least
three (3) Business Days prior to such Group 2 Subsequent Transfer Date a
computer file acceptable to each Rating Agency describing the characteristics
specified in paragraphs (c) and (d) above.
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ARTICLE III
Covenants
Section 3.01 COLLECTION OF PAYMENTS WITH RESPECT TO THE MORTGAGE LOANS.
The Indenture Trustee shall establish and maintain an Eligible Account (the
"Payment Account") in which the Indenture Trustee shall, subject to the terms of
this paragraph, deposit, on the same day as it is received from the Master
Servicer, each remittance received by the Indenture Trustee with respect to the
Mortgage Loans. The Indenture Trustee shall make all payments of principal of
and interest on the Bonds, subject to Section 3.03 as provided in Section 3.05
herein from monies on deposit in the Payment Account.
Section 3.02 MAINTENANCE OF OFFICE OR AGENCY. The Issuer will maintain
an office or agency where, subject to satisfaction of conditions set forth
herein, Bonds may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Issuer in respect of the Bonds and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture Trustee with the address thereof, such surrenders may be made at
the office of the Indenture Trustee located at c/o DTC Transfer Services, 00
Xxxxx Xxxxxx, Xxxxxxxx Xxxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, and notices and
demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands.
Section 3.03 MONEY FOR PAYMENTS TO BE HELD IN TRUST; PAYING AGENT. (a)
As provided in Section 3.01, all payments of amounts due and payable with
respect to any Bonds that are to be made from amounts withdrawn from the Payment
Account pursuant to Section 3.01 shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Payment Account for payments of Bonds shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
as its Paying Agent.
The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of
this Section 3.03, that such Paying Agent will:
(i) hold all sums held by it for the payment of amounts
due with respect to the Bonds in trust for the benefit of the Persons
entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such
Persons as herein provided;
(ii) give the Indenture Trustee notice of any default by
the Issuer of which it has actual knowledge in the making of any
payment required to be made with respect to the Bonds;
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(iii) at any time during the continuance of any such
default, upon the written request of the Indenture Trustee, forthwith
pay to the Indenture Trustee all sums so held in trust by such Paying
Agent;
(iv) immediately resign as Paying Agent and forthwith pay
to the Indenture Trustee all sums held by it in trust for the payment
of Bonds if at any time it ceases to meet the standards required to be
met by a Paying Agent at the time of its appointment;
(v) comply with all requirements of the Code with
respect to the withholding from any payments made by it on any Bonds of
any applicable withholding taxes imposed thereon and with respect to
any applicable reporting requirements in connection therewith; and
(vi) not commence a bankruptcy proceeding against the
Issuer in connection with this Indenture.
The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Request direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.
Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Bond and remaining unclaimed for one year
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer Request; and the Holder of such Bond shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; PROVIDED, HOWEVER, that the Indenture
Trustee or such Paying Agent, before being required to make any such repayment,
shall at the expense and direction of the Issuer cause to be published once, in
an Authorized Newspaper published in the English language, notice that such
money remains unclaimed and that, after a date specified therein which shall not
be less than 30 days from the date of such publication, any unclaimed balance of
such money then remaining will be repaid to the Issuer. The Indenture Trustee
may also adopt and employ, at the expense and direction of the Issuer, any other
reasonable means of notification of such repayment (including, but not limited
to, mailing notice of such repayment to Holders whose Bonds have been called but
have not been surrendered for redemption or whose right to or interest in monies
due and payable but not claimed is determinable from the records of the
Indenture Trustee or of any Paying Agent, at the last address of record for each
such Holder).
Section 3.04 EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification
14
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Bonds, the Mortgage Loans and each other instrument or agreement included in the
Trust Estate.
Section 3.05 PAYMENT OF PRINCIPAL AND INTEREST. (a) On each Payment
Date from amounts on deposit in the Payment Account in accordance with Section
8.02 hereof, the Indenture Trustee shall pay to the Persons specified below, to
the extent provided therein, the Available Funds for such Payment Date.
(b) On each Payment Date, the Group 1 Available Funds shall be
distributed in the following order of priority, in each case to the extent of
the Group 1 Available Funds remaining for such Payment Date:
(i) to the Holders of the Class 1-A Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(ii) to the Holders of the Class M-1-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(iii) to the Holders of the Class M-2-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(iv) to the Holders of the Class M-3-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(v) to the Holders of the Class M-4-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(vi) to the Holders of the Class M-5-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date; and
(vii) to the Holders of the Class M-6-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date.
(c) On each Payment Date, the Holders of the Group 1 Bonds shall be
entitled to receive payments in respect of principal equal the related Principal
Distribution Amount for that Payment Date, allocated on a pro rata basis, based
on the Bond Principal Balances thereof, in reduction of the Bond Principal
Balances thereof, until the Bond Principal Balances thereof have been reduced to
zero.
(d) On each Payment Date, any Net Monthly Excess Cashflow in respect of
the Group 1 Loans shall be paid as follows:
(i) to the Holders of the Group 1 Bonds, pro rata, an
amount equal to any related Undercollateralized Amount, payable to such
Holders of the Group 1 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(c) above;
15
(ii) to the Holders of the Group 2 Bonds, pro rata,
an amount equal to any related Undercollateralized Amount, payable to
such Holders of the Group 2 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(g) below;
(iii) if Loan Group 1 is an Undercollateralized Loan
Group, to the Holders of the Group 1 Bonds, pro rata, an amount in
respect of principal equal to any remaining outstanding Subordinated
Transfer Realized Loss Amount, payable to such Holders of the Group 1
Bonds as part of the related Principal Distribution Amount as described
under Section 3.05(c) above, until either (a) such amount has been
reduced to zero or (b) the Overcollateralized Amount for Loan Group 2
is equal to the Overcollateralization Target Amount for Loan Group 2;
(iv) to the Holders of the Group 1 Bonds, pro rata,
an amount equal to any Realized Losses on the Group 1 Loans during the
related Due Period, payable to such Holders of the Group 1 Bonds as
part of the related Principal Distribution Amount as described under
Section 3.05(c) above, but not greater than the amount required to
increase the Overcollateralized Amount for Loan Group 1 to the
Overcollateralization Target Amount for Loan Group 1;
(v) to the Holders of the Group 2 Bonds, pro rata, an
amount equal to any Realized Losses on the Group 2 Loans during the
related Due Period, to the extent unreimbursed by Net Monthly Excess
Cashflow for the Group 2 Loans on that Payment Date, payable to such
Holders of the Group 2 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(g) below, but not
greater than the amount required to increase the Overcollateralized
Amount for Loan Group 2 to the Overcollateralization Target Amount for
Loan Group 2;
(vi) to the Holders of the Class 1-A Bonds and the
Underlying Class M-1- 1, Class M-2-1, Class M-3-1, Class M-4-1, Class
M-5-1 and Class M-6-1 Bonds, pro rata, an amount equal to any related
Overcollateralization Increase Amount, payable to such Holders as part
of the related Principal Distribution Amount as described under Section
3.05(c) above;
(vii) to the Holders of the Group 2 Bonds, pro rata,
an amount equal to any related Overcollateralization Increase Amount
resulting from any previously unreimbursed Realized Losses on the Group
2 Loans, to the extent that such Realized Losses have not been
reimbursed by related and non-related Net Monthly Excess Cashflow on
prior Payment Dates, payable to such Holders of the Group 2 Bonds as
part of the related Principal Distribution Amount as described under
Section 3.05(g) below;
(viii) to the Holders of the Underlying Class M-1-1,
Class M-1-2, Class M- 2-1, Class M-2-2, Class M-3-1, Class M-3-2, Class
M-4-1, Class M-4-2, Class M-5-1, Class M-5-2, Class M-6-1 and Class
M-6-2 Bonds, in that order, in an amount equal to the Allocated
Realized Loss Amount for such Classes of the Underlying Class M Bonds,
in each case to the extent not covered by non-related Net Monthly
Excess Cashflow for a non-related Underlying Class M Bond;
16
(ix) to the Holders of the Class 1-A Bonds and then
to the Underlying Class M-1-1, Class M-2-1, Class M-3-1, Class M-4-1,
Class M-5-1 and Class M-6-1 Bonds, in that order, any Unpaid Interest
Shortfall for such Bonds on such Payment Date, to the extent not
previously reimbursed;
(x) to the Holders of the Class 1-A and then to the
Underlying Class M-1- 1, Class M-2-1, Class M-3-1, Class M-4-1, Class
M-5-1 and Class M-6-1 Bonds, in that order, any related Basis Risk
Shortfall Carry-Forward Amount for such Bonds on such Payment Date, to
the extent not covered by the related Derivative Contracts;
(xi) to the Holders of the Group 3 Bonds, an amount
equal to (a) any Realized Losses on the Group 3 Loans during the
related Due Period, to the extent unreimbursed by Net Monthly Excess
Cashflow for the Group 3 Loans on that Payment Date and (b) any related
Overcollateralization Increase Amount resulting from any previously
unreimbursed Realized Losses on the Group 3 Loans, to the extent that
such Realized Losses have not been reimbursed by related and
non-related Net Monthly Excess Cashflow on prior Payment Dates, payable
to such Holders of the Group 3 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(k) below (with
amounts payable pursuant to this clause and Section 3.05(h)(viii) below
payable pro rata, based on available Net Monthly Excess Cashflow);
(xii) sequentially, to the Holders of the Class
3-M-1, Class 3-M-2, Class 3-B Bonds in an amount equal to any remaining
Allocated Realized Loss Amounts for such Bonds;
(xiii) to the Indenture Trustee for amounts owed the
Indenture Trustee hereunder (other than the Indenture Trustee Fee)
remaining unpaid; and
(xiv) any remaining amounts will be distributed to
the Certificate Paying Agent, as designee of the Issuer, for the
benefit of the Holders of the Owner Trust Certificates.
(e) With respect to the Class 1-A Derivative Contracts and on each
Payment Date, the Class 1-A Net Derivative Contract Payment Amount with respect
to such Payment Date shall be distributed in the following order of priority, in
each case to the extent of amounts available:
(i) to the Holders of the Class 1-A Bonds, any
related Basis Risk Shortfall Carry-Forward Amount for such Payment
Date; and
(ii) any remaining amounts will be distributed to the
Certificate Paying Agent, as designee of the Issuer, for the benefit of
the Holders of the Owner Trust Certificates.
(f) On each Payment Date, the Group 2 Available Funds shall be
distributed in the following manner, to the extent of the Group 2 Available
Funds remaining for such Payment Date:
17
(i) to the Holders of the Class 2-A Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(ii) to the Holders of the Class M-1-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(iii) to the Holders of the Class M-2-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(iv) to the Holders of the Class M-3-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(v) to the Holders of the Class M-4-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(vi) to the Holders of the Class M-5-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(vii) to the Holders of the Class M-6-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date.
(g) On each Payment Date, the Holders of the Group 2 Bonds shall be
entitled to receive payments in respect of principal equal the related Principal
Distribution Amount for that Payment Date, allocated on a pro rata basis, in
reduction of the Bond Principal Balance thereof, until the Bond Principal
Balance thereof have been reduced to zero.
(h) On each Payment Date, any Net Monthly Excess Cashflow in respect of
the Group 2 Loans shall be paid as follows:
(i) to the Holders of the Group 2 Bonds, pro rata, an amount
equal to any related Undercollateralized Amount, payable to such
Holders of the Group 2 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(g) above;
(ii) to the Holders of the Group 1 Bonds, pro rata, an amount
equal to any related Undercollateralized Amount, payable to such
Holders of the Group 1 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(c) above;
(iii) if Loan Group 2 is an Undercollateralized Loan Group, to
the Holders of the Group 2 Bonds, pro rata, an amount in respect of
principal equal to any remaining outstanding Subordinated Transfer
Realized Loss Amount, payable to such Holders of the Group 2 Bonds as
part of the related Principal Distribution Amount as described under
Section 3.05(g) above, until either (a) such amount has been reduced to
zero or (b) the Overcollateralized Amount for Loan Group 1 is equal to
the Overcollateralization Target Amount for Loan Group 1;
18
(iv) to the Holders of the Group 2 Bonds, pro rata, an amount
equal to any Realized Losses on the Group 2 Loans during the related
Due Period, payable to such Holders of the Group 2 Bonds as part of the
related Principal Distribution Amount as described under Section
3.05(g) above, but not greater than the amount required to increase the
Overcollateralized Amount for Loan Group 2 to the Overcollateralization
Target Amount for Loan Group;
(v) to the Holders of the Group 1 Bonds, pro rata, an amount
equal to any Realized Losses on the Group 1 Loans during the related
Due Period, to the extent unreimbursed by Net Monthly Excess Cashflow
for the Group 1 Loans on that Payment Date, payable to such Holders of
the Group 1 Bonds as part of the related Principal Distribution Amount
as described under Section 3.05(c) above, but not greater than the
amount required to increase the Overcollateralized Amount for Loan
Group 1 to the Overcollateralization Target Amount for Loan Group 1;
(vi) to the Holders of the Class 2-A Bonds and the Underlying
Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2, Class M-5-2 and
Class M-6-2 Bonds, pro rata, an amount equal to any related
Overcollateralization Increase Amount, payable to such Holders as part
of the related Principal Distribution Amount as described under Section
3.05(g) above;
(vii) to the Holders of the Group 1 Bonds, pro rata, an amount
equal to any related Overcollateralization Increase Amount resulting
from any previously unreimbursed Realized Losses on the Group 1 Loans,
to the extent that such Realized Losses have not been reimbursed by
related and non-related Net Monthly Excess Cashflow on prior Payment
Dates, payable to such Holders of the Group 1 Bonds as part of the
related Principal Distribution Amount as described under Section
3.05(c) above;
(viii) to the Holders of the Underlying Class M-1-2, Class
M-1-1, Class M-2-2, Class M-2-1, Class M-3-2, Class M-3-1, Class M-4-2,
Class M-4-1, Class M-5-2, Class M-5- 1, Class M-6-2 and Class M-6-1
Bonds, in that order, in an amount equal to the Allocated Realized Loss
Amount for such classes of the Underlying Class M Bonds, in each case
to the extent not covered by non-related Net Monthly Excess Cashflow
for a non-related Underlying Class M Bond;
(ix) to the Holders of the Class 2-A Bonds and then to the
Underlying Class M-1- 2, Class M-2-2, Class M-3-2, Class M-4-2, Class
M-5-2 and Class M-6-2 Bonds, in that order, any Unpaid Interest
Shortfall for such Bonds on such Payment Date, to the extent not
previously reimbursed;
(x) to the Holders of the Class 2-A Bonds and Underlying Class
M-1-2, Class M- 2-2, Class M-3-2, Class M-4-2, Class M-5-2 and Class
M-6-2 Bonds, in that order, any related Class 2-A Net WAC Cap Shortfall
Carry-Forward Amount or Basis Risk Shortfall Carry-Forward Amount, as
applicable, for such Bonds on such Payment Date, to the extent not
covered by the Class M Derivative Contracts, as applicable;
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(xi) to the Holders of the Group 3 Bonds, pro rata, an amount
equal to (a) any Realized Losses on the Group 3 Loans during the
related Due Period, to the extent unreimbursed by Net Monthly Excess
Cashflow for the Group 3 Loans on that Payment Date and (b) any related
Overcollateralization Increase Amount resulting from any previously
unreimbursed Realized Losses on the Group 3 Loans, to the extent that
such Realized Losses have not been reimbursed by related and
non-related Net Monthly Excess Cashflow on prior Payment Dates, payable
to such Holders of the Group 3 Bonds as part of the related Principal
Distribution Amount as described under Section 3.05(k) below (with
amounts payable pursuant to this clause and Section 3.05(d)(viii) above
pro rata, based on available Net Monthly Excess Cashflow);
(xii) sequentially, to the Holders of the Class 3-M-1, Class
3-M-2, Class 3-B Bonds in an amount equal to any remaining Allocated
Realized Loss Amounts for such Bonds;
(xiii) to the Indenture Trustee for amounts owed the Indenture
Trustee hereunder (other than the Indenture Trustee Fee) remaining
unpaid; and
(xiv) any remaining amounts will be distributed to the
Certificate Paying Agent, as designee of the Issuer, for the benefit of
the Holders of the Owner Trust Certificates.
(i) With respect to the Class M Derivative Contracts and on each
Payment Date, the Class M Net Derivative Contract Payment Amount with respect to
such Payment Date shall be distributed in the following order of priority, in
each case to the extent of amounts available:
(i) to the Holders of the Class M-1-1 Bonds and Class
M-1-2 Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward
Amount for such Payment Date;
(ii) to the Holders of the Class M-2-1 Bonds and
Class M-2-2 Bonds, pro rata, any related Basis Risk Shortfall
Carry-Forward Amount for such Payment Date;
(iii) to the Holders of the Class M-3-1 Bonds and
Class M-3-2 Bonds, pro rata, any related Basis Risk Shortfall
Carry-Forward Amount for such Payment Date;
(iv) to the Holders of the Class M-4-1 Bonds and
Class M-4-2 Bonds, pro rata, any related Basis Risk Shortfall
Carry-Forward Amount for such Payment Date;
(v) to the Holders of the Class M-5-1 Bonds and Class
M-5-2 Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward
Amount for such Payment Date;
(vi) to the Holders of the Class M-6-1 Bonds and
Class M-6-2 Bonds, pro rata, any related Basis Risk Shortfall
Carry-Forward Amount for such Payment Date; and
(vii) any remaining amounts will be distributed to
the Certificate Paying Agent, as designee of the Issuer, for the
benefit of the Holders of the Owner Trust Certificates.
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(j) On each Payment Date, the Group 3 Available Funds shall be
distributed in the following manner, to the extent of the Group 3 Available
Funds remaining for such Payment Date:
(i) to the Holders of the Class 3-A Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(ii) to the Holders of the Class 3-M-1 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date;
(iii) to the Holders of the Class 3-M-2 Bonds, the
related Accrued Bond Interest for such Class for such Payment Date; and
(iv) to the Holders of the Class 3-B Bonds, the
related Accrued Bond Interest for such Class for such Payment Date.
(k) On each Payment Date, the Holders of the Group 3 Bonds shall be
entitled to receive payments in respect of principal equal the related Principal
Distribution Amount for that Payment Date, allocated on a pro rata basis, in
reduction of the Bond Principal Balance thereof, until the Bond Principal
Balance thereof have been reduced to zero.
(l) On each Payment Date, any Net Monthly Excess Cashflow in respect of
the Group 3 Loans shall be paid as follows:
(i) to the Holders of the Group 3 Bonds, pro rata, an amount
equal to any Realized Losses on the Group 3 Loans during the related
Due Period, payable to such Holders of the Group 3 Bonds as part of the
related Principal Distribution Amount as described under Section
3.05(l) above;
(ii) to the Holders of the Group 3 Bonds, pro rata, an amount
equal to any related Overcollateralization Increase Amount, payable to
such Holders as part of the related Principal Distribution Amount as
described under Section 3.05(l) above;
(iii) to the Holders of the Class 3-M-1, Class 3-M-2 and Class
3-B-1 Bonds, in that order, in an amount equal to the Allocated
Realized Loss Amount for such Bonds;
(iv) to the Holders of the Class 3-A, Class 3-M-1, Class 3-M-2
and Class 3-B Bonds, in that order, any Unpaid Interest Shortfall for
such Bonds on such Payment Date, to the extent not previously
reimbursed;
(v) to the Holders of the Class 3-A and then to the Class
3-M-1, Class 3-M-2 and Class 3-B Bonds, in that order, any related
Basis Risk Shortfall Carry-Forward Amount for such Bonds on such
Payment Date, to the extent not covered by the Group 3 Derivative
Contracts;
(vi) to the Holders of the Group 1 Bonds and the Group 2
Bonds, on a pro rata basis, based on the following amount determined
separately for the Group 1 Bonds and
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Group 2 Bonds, an amount equal to (a) any Realized Losses on the Group
1 Loans and Group 2 Loans, respectively, during the related Due Period,
to the extent unreimbursed by related and non-related Net Monthly
Excess Cashflow on that Payment Date and (b) any related
Overcollateralization Increase Amount resulting from any previously
unreimbursed Realized Losses on the Group 1 Loans and Group 2 Loans, to
the extent that such Realized Losses have not been reimbursed by
related and non-related Net Monthly Excess Cashflow on prior Payment
Dates, payable to such Holders of the Group 1 Bonds and Group 2 Bonds
as part of the related Principal Distribution Amount as described under
Section 3.05(c) and Section 3.05(g) above;
(vii) concurrently, to the Holders of the Underlying Class M
Bonds, an amount equal to any remaining Allocated Realized Loss Amount
for such classes of the Underlying Class M Bonds;
(viii) to the Indenture Trustee for amounts owed the Indenture
Trustee hereunder (other than the Indenture Trustee Fee) remaining
unpaid; and
(ix) any remaining amounts will be distributed to the
Certificate Paying Agent, as designee of the Issuer, for the benefit of
the Holders of the Owner Trust Certificates.
(m) With respect to the Group 3 Derivative Contracts and on each
Payment Date, the Group 3 Net Derivative Contract Payment Amount with respect to
such Payment Date shall be distributed in the following order of priority, in
each case to the extent of amounts available:
(i) to the Holders of the Class 3-A Bonds, any
related Basis Risk Shortfall Carry-Forward Amount for such Payment
Date;
(ii) to the Holders of the Class 3-M-1 Bonds, any
related Basis Risk Shortfall Carry-Forward Amount for such Payment
Date;
(iii) to the Holders of the Class M-3-2 Bonds, any
related Basis Risk Shortfall Carry-Forward Amount for such Payment
Date;
(iv) to the Holders of the Class 3-B Bonds, any
related Basis Risk Shortfall Carry-Forward Amount for such Payment
Date; and
(v) any remaining amounts will be distributed to the
Certificate Paying Agent, as designee of the Issuer, for the benefit of
the Holders of the Owner Trust Certificates.
(n) On each Payment Date any amounts received in respect of the Special
Certificate Cap Contract shall be distributed to the Certificate Paying Agent,
as designee of the Issuer, for the benefit of the Holders of the Owner Trust
Certificates.
(o) Each distribution with respect to a Book-Entry Bond shall be paid
to the Depository, as Holder thereof, and the Depository shall be responsible
for crediting the amount of such
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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 Bond 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 Bond Owners that it represents. None of
the Indenture Trustee, the Bond Registrar, the Paying Agent, the Depositor or
the Master Servicer shall have any responsibility therefor except as otherwise
provided by this Indenture or applicable law.
(p) On each Payment Date, the Certificate Paying Agent shall deposit in
the Certificate Distribution Account all amounts it received pursuant to this
Section 3.05 for the purpose of distributing such funds to the
Certificateholders.
(q) Any installment of interest or principal, if any, payable on any
Bond that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall, if such Holder shall have so requested at least
five Business Days prior to the related Record Date, be paid to each Holder of
record on the preceding Record Date, by wire transfer to an account specified in
writing by such Holder reasonably satisfactory to the Indenture Trustee as of
the preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Bondholder mailed to
such Holder's address as it appears in the Bond Register in the amount required
to be distributed to such Holder on such Payment Date pursuant to such Holder's
Bonds; PROVIDED, HOWEVER, that the Indenture Trustee shall not pay to such
Holders any amount required to be withheld from a payment to such Holder by the
Code.
(r) The principal of each Bond shall be due and payable in full on the
Final Scheduled Payment Date for such Bond as provided in the forms of Bond set
forth in Exhibits A-1 and A-2 to this Indenture. All principal payments on the
Bonds shall be made to the Bondholders entitled thereto in accordance with the
Percentage Interests represented by such Bonds. Upon notice to the Indenture
Trustee by the Issuer, the Indenture Trustee shall notify the Person in whose
name a Bond is registered at the close of business on the Record Date preceding
the Final Scheduled Payment Date or other final Payment Date (including any
final Payment Date resulting from any redemption pursuant to Section 8.07
hereof). Such notice shall to the extent practicable be mailed no later than
five Business Days prior to such Final Scheduled Payment Date or other final
Payment Date and shall specify that payment of the principal amount and any
interest due with respect to such Bond at the Final Scheduled Payment Date or
other final Payment Date will be payable only upon presentation and surrender of
such Bond and shall specify the place where such Bond may be presented and
surrendered for such final payment. No interest shall accrue on the Bonds on or
after the Final Scheduled Payment Date or any such other final Payment Date.
The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.05 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.
Section 3.06 PROTECTION OF TRUST ESTATE. (a) The Issuer will from time
to time prepare, execute and deliver all such supplements and amendments hereto
and all such financing statements, continuation statements, instruments of
further assurance and other instruments, and will take such other action
necessary or advisable to:
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(i) maintain or preserve the lien and security
interest (and the priority thereof) of this Indenture or carry out more
effectively the purposes hereof;
(ii) perfect, publish notice of or protect the
validity of any Grant made or to be made by this Indenture;
(iii) cause the Issuer or Master Servicer to enforce
any of the rights to the Mortgage Loans; or
(iv) preserve and defend title to the Trust Estate
and the rights of the Indenture Trustee and the Bondholders in such
Trust Estate against the claims of all persons and parties.
(b) Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove any portion of the Trust Estate that consists of money
or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion of
Counsel delivered pursuant to Section 3.07 hereof (or from the jurisdiction in
which it was held as described in the Opinion of Counsel delivered on the
Closing Date pursuant to Section 3.07(a) hereof, or if no Opinion of Counsel has
yet been delivered pursuant to Section 3.07(b) hereof, unless the Indenture
Trustee shall have first received an Opinion of Counsel to the effect that the
lien and security interest created by this Indenture with respect to such
property will continue to be maintained after giving effect to such action or
actions).
The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.06 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.
Section 3.07 OPINIONS AS TO TRUST ESTATE. (a) On the Closing Date, the
Issuer shall furnish to the Indenture Trustee and the Owner Trustee an Opinion
of Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the execution and filing of any financing statements and continuation
statements, as are necessary to perfect and make effective the lien and first
priority security interest in the Collateral and reciting the details of such
action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and first priority security interest effective.
(b) On or before April 15 in each calendar year, beginning in 2005, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel at the
expense of the Issuer either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re- recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and first priority security interest in the Collateral and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and the execution and filing of any financing statements and
24
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest in the Collateral until December 31
in the following calendar year.
Section 3.08 PERFORMANCE OF OBLIGATIONS. (a) The Issuer will punctually
perform and observe all of its obligations and agreements contained in this
Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate.
(b) The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer.
(c) The Issuer will not take any action or permit any action to be
taken by others which would release any Person from any of such Person's
covenants or obligations under any of the documents relating to the Mortgage
Loans or under any instrument included in the Trust Estate, or which would
result in the amendment, hypothecation, subordination, termination or discharge
of, or impair the validity or effectiveness of, any of the documents relating to
the Mortgage Loans or any such instrument, except such actions as the Master
Servicer is expressly permitted to take in the Servicing Agreement. The
Indenture Trustee may exercise the rights of the Issuer to direct the actions of
the Master Servicer pursuant to the Servicing Agreement.
(d) The Issuer may retain an administrator and may enter into contracts
with other Persons for the performance of the Issuer's obligations hereunder,
and performance of such obligations by such Persons shall be deemed to be
performance of such obligations by the Issuer.
Section 3.09 NEGATIVE COVENANTS. So long as any Bonds are Outstanding,
the Issuer shall not:
(i) except as expressly permitted by this Indenture,
sell, transfer, exchange or otherwise dispose of the Trust Estate,
unless directed to do so by the Indenture Trustee;
(ii) claim any credit on, or make any deduction from
the principal or interest payable in respect of, the Bonds (other than
amounts properly withheld from such payments under the Code) or assert
any claim against any present or former Bondholder by reason of the
payment of the taxes levied or assessed upon any part of the Trust
Estate;
(iii) (A) permit the validity or effectiveness of
this Indenture to be impaired, or permit the lien of this Indenture to
be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with
respect to the Bonds under this Indenture except as may be expressly
permitted hereby, (B) permit any lien, charge, excise, claim, security
interest, mortgage or other encumbrance (other than the lien of this
Indenture) to be created on or extend to or otherwise arise upon or
burden the Trust Estate or any part thereof or any interest therein or
the proceeds thereof or (C) permit the lien of this Indenture not to
constitute a valid first priority security interest in the Trust
Estate; or
25
(iv) waive or impair, or fail to assert rights under,
the Mortgage Loans, or impair or cause to be impaired the Issuer's
interest in the Mortgage Loans, the Mortgage Loan Purchase Agreement or
in any Basic Document, if any such action would materially and
adversely affect the interests of the Bondholders.
Section 3.10 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will deliver
to the Indenture Trustee, by March 1 of each year commencing with the calendar
year 2005, an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that:
(i) a review of the activities of the Issuer during
the previous calendar year and of its performance under this Indenture
has been made under such Authorized Officer's supervision; and
(ii) to the best of such Authorized Officer's
knowledge, based on such review, the Issuer has complied with all
conditions and covenants under this Indenture throughout such year, or,
if there has been a default in its compliance with any such condition
or covenant, specifying each such default known to such Authorized
Officer and the nature and status thereof.
Section 3.11 REPRESENTATIONS AND WARRANTIES CONCERNING THE MORTGAGE
LOANS. The Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit
of the representations and warranties made by the Seller in (i) the Mortgage
Loan Purchase Agreement concerning the Seller and the Initial Mortgage Loans and
(ii) any Group 1 or Group 2 Subsequent Mortgage Loan Purchase Agreements
concerning the Seller and the Group 1 Subsequent Mortgage Loans and Group 2
Subsequent Mortgage Loans to the same extent as though such representations and
warranties were made directly to the Indenture Trustee. If a Responsible Officer
of the Indenture Trustee has actual knowledge of any breach of any
representation or warranty made by the Seller in the Mortgage Loan Purchase
Agreement or in the applicable Group 1 and Group 2 Subsequent Mortgage Loan
Purchase Agreements, the Indenture Trustee shall promptly notify the Seller of
such finding and the Seller's obligation to cure such defect or repurchase or
substitute for the related Mortgage Loan.
Section 3.12 AMENDMENTS TO SERVICING AGREEMENT. The Issuer covenants
with the Indenture Trustee that it will not enter into any amendment or
supplement to the Servicing Agreement without the prior written consent of the
Indenture Trustee.
Section 3.13 MASTER SERVICER AS AGENT AND BAILEE OF THE INDENTURE
TRUSTEE. Solely for purposes of perfection under Section 9-305 of the Uniform
Commercial Code or other similar applicable law, rule or regulation of the state
in which such property is held by the Master Servicer, the Issuer and the
Indenture Trustee hereby acknowledge that the Master Servicer is acting as
bailee of the Indenture Trustee in holding amounts on deposit in the Collection
Account, as well as its bailee in holding any Related Documents released to the
Master Servicer, and any other items constituting a part of the Trust Estate
which from time to time come into the possession of the Master Servicer. It is
intended that, by the Master Servicer's acceptance of such bailee arrangement,
the Indenture Trustee, as a secured party of the Mortgage Loans, will be deemed
to have possession of such Related Documents, such monies and such other items
for purposes of Section 9-305 of the Uniform Commercial Code of the state in
which such property is held by the Master Servicer. The
26
Indenture Trustee shall not be liable with respect to such documents, monies or
items while in possession of the Master Servicer.
Section 3.14 INVESTMENT COMPANY ACT. The Issuer shall not become an
"investment company" or be under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
PROVIDED, HOWEVER, that the Issuer shall be in compliance with this Section 3.14
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.
Section 3.15 ISSUER MAY CONSOLIDATE, ETC. (a) The Issuer shall not
consolidate or merge with or into any other Person, unless:
(i) the Person (if other than the Issuer) formed by
or surviving such consolidation or merger shall be a Person organized
and existing under the laws of the United States of America or any
state or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Indenture
Trustee, in form reasonably satisfactory to the Indenture Trustee, the
due and punctual payment of the principal of and interest on all Bonds,
the Indenture Trustee and the Derivative Contract Counterparty, the
payment to the Certificate Paying Agent of all amounts due to the
Certificateholders, and the performance or observance of every
agreement and covenant of this Indenture on the part of the Issuer to
be performed or observed, all as provided herein;
(ii) immediately after giving effect to such
transaction, no Event of Default shall have occurred and be continuing;
(iii) the Rating Agencies shall have notified the
Issuer that such transaction shall not cause the rating of the Bonds to
be reduced, suspended or withdrawn or to be considered by either Rating
Agency to be below investment grade;
(iv) the Issuer shall have received an Opinion of
Counsel (and shall have delivered a copy thereof to the Indenture
Trustee) to the effect that such transaction will not (A) result in a
"substantial modification" of the Bonds under Treasury Regulation
section 1.1001-3, or adversely affect the status of the Bonds as
indebtedness for federal income tax purposes, or (B) if 100% of the
Certificates are not owned by IMH Assets Corp., cause the Trust to be
subject to an entity level tax for federal income tax purposes;
(v) any action that is necessary to maintain the lien
and security interest created by this Indenture shall have been taken;
and
(vi) the Issuer shall have delivered to the Indenture
Trustee an Officer's Certificate and an Opinion of Counsel each stating
that such consolidation or merger and such supplemental indenture
comply with this Article III and that all conditions precedent
27
herein provided for or relating to such transaction have been complied
with (including any filing required by the Exchange Act), and that such
supplemental indenture is enforceable.
(b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:
(i) the Person that acquires by conveyance or
transfer the properties and assets of the Issuer, the conveyance or
transfer of which is hereby restricted, shall (A) be a United States
citizen or a Person organized and existing under the laws of the United
States of America or any state thereof, (B) expressly assume, by an
indenture supplemental hereto, executed and delivered to the Indenture
Trustee, in form satisfactory to the Indenture Trustee, the due and
punctual payment of the principal of and interest on all Bonds and
Derivative Contract Counterparty and the performance or observance of
every agreement and covenant of this Indenture on the part of the
Issuer to be performed or observed, all as provided herein, (C)
expressly agree by means of such supplemental indenture that all right,
title and interest so conveyed or transferred shall be subject and
subordinate to the rights of the Holders of the Bonds, (D) unless
otherwise provided in such supplemental indenture, expressly agree to
indemnify, defend and hold harmless the Issuer, the Indenture Trustee
against and from any loss, liability or expense arising under or
related to this Indenture and the Bonds and (E) expressly agree by
means of such supplemental indenture that such Person (or if a group of
Persons, then one specified Person) shall make all filings with the
Commission (and any other appropriate Person) required by the Exchange
Act in connection with the Bonds;
(ii) immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be
continuing;
(iii) the Rating Agencies shall have notified the
Issuer that such transaction shall not cause the rating of the Bonds to
be reduced, suspended or withdrawn;
(iv) the Issuer shall have received an Opinion of
Counsel (and shall have delivered a copy thereof to the Indenture
Trustee) to the effect that such transaction will not (A) result in a
"substantial modification" of the Bonds under Treasury Regulation
section 1.1001-3, or adversely affect the status of the Bonds as
indebtedness for federal income tax purposes, or (B) if 100% of the
Certificates are not owned by IMH Assets Corp., cause the Trust to be
subject to an entity level tax for federal income tax purposes;
(v) any action that is necessary to maintain the lien
and security interest created by this Indenture shall have been taken;
and
(vi) the Issuer shall have delivered to the Indenture
Trustee an Officer's Certificate and an Opinion of Counsel each stating
that such conveyance or transfer and such supplemental indenture comply
with this Article III and that all conditions precedent herein provided
for relating to such transaction have been complied with (including any
filing required by the Exchange Act).
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Section 3.16 SUCCESSOR OR TRANSFEREE. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.15(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.
(b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.15(b), the Issuer will be released from every
covenant and agreement of this Indenture to be observed or performed on the part
of the Issuer with respect to the Bonds immediately upon the delivery of written
notice to the Indenture Trustee of such conveyance or transfer.
Section 3.17 NO OTHER BUSINESS. The Issuer shall not engage in any
business other than financing, purchasing, owning and selling and managing the
Mortgage Loans and the issuance of the Bonds and Certificates in the manner
contemplated by this Indenture and the Basic Documents and all activities
incidental thereto.
Section 3.18 NO BORROWING. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Bonds under this Indenture.
Section 3.19 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Except
as contemplated by this Indenture or the Basic Documents, the Issuer shall not
make any loan or advance or credit to, or guarantee (directly or indirectly or
by an instrument having the effect of assuring another's payment or performance
on any obligation or capability of so doing or otherwise), endorse or otherwise
become contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or
agree contingently to do so) any stock, obligations, assets or securities of, or
any other interest in, or make any capital contribution to, any other Person.
Section 3.20 CAPITAL EXPENDITURES. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).
Section 3.21 DETERMINATION OF BOND INTEREST RATE. On each Interest
Determination Date the Indenture Trustee shall determine One-Month LIBOR and the
related Bond Interest Rate for each Class of Bonds for the following Accrual
Period and shall inform the Issuer, the Master Servicer, and the Depositor at
their respective facsimile numbers given to the Indenture Trustee in writing
thereof. The establishment of One-Month LIBOR on each Interest Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
rate of interest applicable to each Class of Bonds for the related Accrual
Period shall (in the absence of manifest error) be final and binding.
Section 3.22 RESTRICTED PAYMENTS. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or
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security or (iii) set aside or otherwise segregate any amounts for any such
purpose; PROVIDED, HOWEVER, that the Issuer may make, or cause to be made, (x)
distributions and payments to the Owner Trustee, the Indenture Trustee,
Bondholders and the Certificateholders as contemplated by, and to the extent
funds are available for such purpose under this Indenture and the Trust
Agreement and (y) payments to the Master Servicer and the Subservicers pursuant
to the terms of the Servicing Agreement. The Issuer will not, directly or
indirectly, make payments to or distributions from the Collection Account except
in accordance with this Indenture and the Basic Documents.
Section 3.23 NOTICE OF EVENTS OF DEFAULT. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event of
Default hereunder and under the Trust Agreement.
Section 3.24 FURTHER INSTRUMENTS AND ACTS. Upon request of the
Indenture Trustee, the Issuer will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.
Section 3.25 STATEMENTS TO BONDHOLDERS. On each Payment Date, the
Indenture Trustee and the Certificate Registrar shall prepare and make available
on the Indenture Trustee's website, xxxxx://xxx.xxxxxxxxxxxxxx.xx.xxx/xxxx (or
deliver at the recipient's option), to each Bondholder and Certificateholder the
most recent statement prepared by the Master Servicer pursuant to Section 4.01
of the Servicing Agreement.
Section 3.26 CERTAIN REPRESENTATIONS REGARDING THE TRUST ESTATE.
(a) With respect to that portion of the Collateral described in clauses
(a) through (d) of the definition of Trust Estate, the Issuer represents to the
Indenture Trustee that:
(i) This Indenture creates a valid and continuing security
interest (as defined in the applicable UCC) in the Collateral in favor of the
Indenture Trustee, which security interest is prior to all other liens, and is
enforceable as such as against creditors of and purchasers from the Issuer.
(ii) The Collateral constitutes "deposit accounts" or
"instruments," as applicable, within the meaning of the applicable UCC.
(iii) The Issuer owns and has good and marketable title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.
(iv) The Issuer has taken all steps necessary to cause the
Indenture Trustee to become the account holder of the Collateral.
(v) Other than the security interest granted to the Indenture
Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Collateral.
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(vi) The Collateral is not in the name of any Person other
than the Issuer or the Indenture Trustee. The Issuer has not consented to the
bank maintaining the Collateral to comply with instructions of any Person other
than the Indenture Trustee.
(b) With respect to that portion of the Collateral described in clauses
(e) and (f), the Issuer represents to the Indenture Trustee that:
(i) This Indenture creates a valid and continuing security
interest (as defined in the applicable UCC) in the Collateral in favor of the
Indenture Trustee, which security interest is prior to all other liens, and is
enforceable as such as against creditors of and purchasers from the Issuer.
(ii) The Collateral constitutes "general intangibles" within
the meaning of the applicable UCC.
(iii) The Issuer owns and has good and marketable title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.
(iv) Other than the security interest granted to the Indenture
Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Collateral.
(c) With respect to any Collateral in which a security interest may be
perfected by filing, the Issuer has not authorized the filing of, and is not
aware of any financing statements against, the Issuer, that include a
description of collateral covering such Collateral, other than any financing
statement relating to the security interest granted to the Indenture Trustee
hereunder or that has been terminated. The Issuer is not aware of any judgment
or tax lien filings against the Issuer.
(d) The Issuer has caused or will have caused, within ten days, the
filing of all appropriate financing statements in the proper filing office in
the appropriate jurisdictions under applicable law in order to perfect the
security interest in all Collateral granted to the Indenture Trustee hereunder
in which a security interest may be perfected by filing. Any financing statement
that is filed in connection with this Section 3.26 shall contain a statement
that a purchase or security interest in any collateral described therein will
violate the rights of the secured party named in such financing statement.
(e) The foregoing representations may not be waived and shall survive
the issuance of the Bonds.
Section 3.27 [RESERVED].
Section 3.28 [RESERVED].
Section 3.29 REPLACEMENT DERIVATIVE CONTRACTS. In the event of a
default by a Derivative Contract Counterparty with respect to the related
Derivative Contracts (a "Derivative Contract Default"), the Issuer, at its
expense, may, but shall not be required to, substitute a new derivative
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contract for the existing Derivative Contracts or any other form of similar
coverage for basis risk shortfalls; PROVIDED, HOWEVER, that the timing and
mechanism for receiving payments under such new derivative contracts shall be
reasonably acceptable to the Indenture Trustee. It shall be a condition to
substitution of any new derivative contracts that there be delivered to the
Indenture Trustee an Opinion of Counsel to the effect that such substitution
would not (a) result in a "substantial modification" of the Bonds under Treasury
Regulation section 1.1001-3, or adversely affect the status of the Bonds as
indebtedness for federal income tax purposes, or (b) if 100% of the Certificates
are not owned by IMH Assets Corp., cause the Trust to be subject to an entity
level tax for federal income tax purposes.
Section 3.30 [RESERVED].
Section 3.31 ALLOCATION OF REALIZED LOSSES. (a) Prior to each Payment
Date, the Master Servicer shall determine the total amount of Realized Losses
that occurred during the related Prepayment Period. The amount of each Realized
Loss shall be evidenced by an Officer's Certificate delivered to the Indenture
Trustee with the related Remittance Report.
(b) On each Payment Date following the application of all
amounts distributable on such date, to the extent the aggregate Stated Principal
Balance of the Group 1 Loans is less than the aggregate Bond Principal Balances
of the Group 1 Bonds due to Realized Losses on the Group 1 Loans, the Bond
Principal Balances of the Class M-6-1, Class M-6-2, Class M-5-1, Class M-5-2,
Class M-4-1, Class M-4-2, Class M-3-1, Class M-3-2, Class M-2-1, Class M-2-2,
Class M-1-1and Class M-1-2 Bonds, in that order, shall be reduced, in each case
until the Bond Principal Balance thereof has been reduced to zero. On each
Payment Date following the application of all amounts distributable on such
date, to the extent the aggregate Stated Principal Balance of the Group 2 Loans
is less than the aggregate Bond Principal Balances of the Group 2 Bonds due to
Realized Losses on the Group 2 Loans, the Bond Principal Balances of the of the
Class M-6-2, Class M-6-1, Class M-5-2, Class M-5- 1, Class M-4-2, Class M-4-1,
Class M-3-2, Class M-3-1, Class M-2-2, Class M-2-1, Class M-1-2 and Class M-1-1,
in that order, in each case shall be reduced, until the Bond Principal Balance
thereof has been reduced to zero. On each Payment Date following the application
of all amounts distributable on such date, to the extent the aggregate Stated
Principal Balance of the Group 3 Loans is less than the aggregate Bond Principal
Balances of the Group 3 Bonds due to Realized Losses on the Group 3 Loans, the
Bond Principal Balances of the of the Class 3-B, Class 3-M-2 and Class 3-M-1
Bonds, in that order, shall be reduced, in each case until the Bond Principal
Balance thereof has been reduced to zero. All Realized Losses allocated to a
Class of Bonds will be allocated in proportion to the Percentage Interests
evidenced thereby.
Section 3.32 THE GROUP 1 PRE-FUNDING ACCOUNT. (a) No later than the
Closing Date, the Indenture Trustee shall establish and maintain a segregated
trust account that is an Eligible Account, which shall be titled "Group 1
Pre-Funding Account, Deutsche Bank National Trust Company, as indenture trustee
for the registered holders of IMH Assets Corp., Collateralized Asset-Backed
Bonds, Series 2004-3" (the "Group 1 Pre-Funding Account"). The Indenture Trustee
shall, promptly upon receipt, deposit in the Group 1 Pre-Funding Account and
retain therein the Group 1 Original Pre-Funded Amount remitted on the Closing
Date to the Indenture Trustee by the Depositor. Funds deposited in the Group 1
Pre-Funding Account shall be held in trust by the Indenture Trustee for the
Bondholders for the uses and purposes set forth herein.
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(b) The Indenture Trustee will invest funds deposited in the Group 1
Pre-Funding Account, as directed by the Master Servicer in writing, in Eligible
Investments with a maturity date (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 Indenture, if a Person other than the Indenture Trustee
or an Affiliate manages or advises such investment, (ii) no later than the date
on which such funds are required to be withdrawn from such account pursuant to
this Indenture, if the Indenture Trustee or an Affiliate manages or advises such
investment or (iii) within one (1) Business Day of the Indenture Trustee's
receipt thereof. For federal income tax purposes, the Master Servicer shall be
the owner of the Group 1 Pre-Funding Account and shall report all items of
income, deduction, gain or loss arising therefrom. All income and gain realized
from investment of funds deposited in the Group 1 Pre-Funding Account shall be
included in Available Funds at the following times: (i) on the Business Day
immediately preceding each Payment Date, if a Person other than the Indenture
Trustee or an Affiliate of the Indenture Trustee manages or advises such
investment, or on each Payment Date, if the Indenture Trustee or an Affiliate of
the Indenture Trustee manages or advises such investment, (ii) on the Business
Day immediately preceding each Group 1 Subsequent Transfer Date, if a Person
other than the Indenture Trustee or an Affiliate of the Indenture Trustee
manages or advises such investment, or on each Group 1 Subsequent Transfer Date,
if the Indenture Trustee or an Affiliate of the Indenture Trustee manages or
advises such investment or (iii) within one (1) Business Day of the Indenture
Trustee's receipt thereof. The Master Servicer shall deposit in the Group 1
Pre-Funding Account the amount of any net loss incurred in respect of any such
Eligible Investment immediately upon realization of such loss without any right
of reimbursement therefor.
(c) Amounts on deposit in the Group 1 Pre-Funding Account shall be
withdrawn by the Indenture Trustee as follows:
(i) On any Group 1 Subsequent Transfer Date, the Indenture
Trustee shall withdraw from the Group 1 Pre-Funding Account an amount equal to
100% of the aggregate Stated Principal Balances of the related Group 1
Subsequent Mortgage Loans transferred and assigned to the Indenture Trustee for
deposit in the Mortgage Pool on such Group 1 Subsequent Transfer Date and pay
such amount to or upon the order of the Issuer upon satisfaction of the
conditions set forth in Section 2.05 with respect to such transfer and
assignment;
(ii) If the amount on deposit in the Group 1 Pre-Funding
Account has not been reduced to zero during the Funding Period, on the day
immediately following the termination of the Funding Period, the Indenture
Trustee shall deposit into the Payment Account any amounts remaining in the
Group 1 Pre-Funding Account for distribution in accordance with the terms
hereof;
(iii) To withdraw any amount not required to be deposited in
the Group 1 Pre-Funding Account or deposited therein in error; and
(iv) To clear and terminate the Group 1 Pre-Funding Account
upon the earlier to occur of (A) the Payment Date immediately following the end
of the Funding Period and (B) the termination of this Indenture, with any
amounts remaining on deposit therein being paid to the Holders of the Bonds then
entitled to distributions in respect of principal.
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Section 3.33 THE GROUP 2 PRE-FUNDING ACCOUNT. (a) No later than the
Closing Date, the Indenture Trustee shall establish and maintain a segregated
trust account that is an Eligible Account, which shall be titled "Group 2
Pre-Funding Account, Deutsche Bank National Trust Company, as indenture trustee
for the registered holders of IMH Assets Corp., Collateralized Asset-Backed
Bonds, Series 2004-3" (the "Group 2 Pre-Funding Account"). The Indenture Trustee
shall, promptly upon receipt, deposit in the Group 2 Pre-Funding Account and
retain therein the Group 2 Original Pre-Funded Amount remitted on the Closing
Date to the Indenture Trustee by the Depositor. Funds deposited in the Group 2
Pre-Funding Account shall be held in trust by the Indenture Trustee for the
Bondholders for the uses and purposes set forth herein.
(b) The Indenture Trustee will invest funds deposited in the Group 2
Pre-Funding Account, as directed by the Master Servicer in writing, in Eligible
Investments with a maturity date (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 Indenture, if a Person other than the Indenture Trustee
or an Affiliate manages or advises such investment, (ii) no later than the date
on which such funds are required to be withdrawn from such account pursuant to
this Indenture, if the Indenture Trustee or an Affiliate manages or advises such
investment or (iii) within one (1) Business Day of the Indenture Trustee's
receipt thereof. For federal income tax purposes, the Master Servicer shall be
the owner of the Group 2 Pre-Funding Account and shall report all items of
income, deduction, gain or loss arising therefrom. All income and gain realized
from investment of funds deposited in the Group 2 Pre-Funding Account shall be
included in Available Funds at the following times: (i) on the Business Day
immediately preceding each Payment Date, if a Person other than the Indenture
Trustee or an Affiliate of the Indenture Trustee manages or advises such
investment, or on each Payment Date, if the Indenture Trustee or an Affiliate of
the Indenture Trustee manages or advises such investment, (ii) on the Business
Day immediately preceding each Group 2 Subsequent Transfer Date, if a Person
other than the Indenture Trustee or an Affiliate of the Indenture Trustee
manages or advises such investment, or on each Group 2 Subsequent Transfer Date,
if the Indenture Trustee or an Affiliate of the Indenture Trustee manages or
advises such investment or (iii) within one (1) Business Day of the Indenture
Trustee's receipt thereof. The Master Servicer shall deposit in the Group 2
Pre-Funding Account the amount of any net loss incurred in respect of any such
Eligible Investment immediately upon realization of such loss without any right
of reimbursement therefor.
(c) Amounts on deposit in the Group 2 Pre-Funding Account shall be
withdrawn by the Indenture Trustee as follows:
(i) On any Group 2 Subsequent Transfer Date, the Indenture
Trustee shall withdraw from the Group 2 Pre-Funding Account an amount equal to
100% of the aggregate Stated Principal Balances of the related Group 2
Subsequent Mortgage Loans transferred and assigned to the Indenture Trustee for
deposit in the Mortgage Pool on such Group 2 Subsequent Transfer Date and pay
such amount to or upon the order of the Issuer upon satisfaction of the
conditions set forth in Section 2.05 with respect to such transfer and
assignment;
(ii) If the amount on deposit in the Group 2 Pre-Funding
Account has not been reduced to zero during the Funding Period, on the day
immediately following the termination of the Funding Period, the Indenture
Trustee shall deposit into the Payment Account any amounts remaining in the
Group 2 Pre-Funding Account for distribution in accordance with the terms
hereof;
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(iii) To withdraw any amount not required to be deposited in
the Group 2 Pre-Funding Account or deposited therein in error; and
(iv) To clear and terminate the Group 2 Pre-Funding Account
upon the earlier to occur of (A) the Payment Date immediately following the end
of the Funding Period and (B) the termination of this Indenture, with any
amounts remaining on deposit therein being paid to the Holders of the Bonds then
entitled to distributions in respect of principal.
Section 3.34 GRANT OF THE GROUP 1 SUBSEQUENT MORTGAGE LOANS. In
consideration of the delivery on each Group 1 Subsequent Transfer Date to or
upon the order of the Issuer of all or a portion of the amount on deposit in the
Group 1 Pre-Funding Account, the Depositor shall, to the extent of the
availability thereof, on such Group 1 Subsequent Transfer Date during the
Funding Period, grant to the Indenture Trustee all of its rights, title and
interest in the Group 1 Subsequent Mortgage Loans and simultaneously with the
Grant of the Group 1 Subsequent Mortgage Loans, the Depositor will cause the
related Mortgage File to be delivered to the Indenture Trustee.
Section 3.35 GRANT OF THE GROUP 2 SUBSEQUENT MORTGAGE LOANS. In
consideration of the delivery on each Group 2 Subsequent Transfer Date to or
upon the order of the Issuer of all or a portion of the amount on deposit in the
Group 2 Pre-Funding Account, the Depositor shall, to the extent of the
availability thereof, on such Group 2 Subsequent Transfer Date during the
Funding Period, grant to the Indenture Trustee all of its rights, title and
interest in the Group 2 Subsequent Mortgage Loans and simultaneously with the
Grant of the Group 2 Subsequent Mortgage Loans, the Depositor will cause the
related Mortgage File to be delivered to the Indenture Trustee.
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ARTICLE IV
The Bonds; Satisfaction and Discharge of Indenture
Section 4.01 THE BONDS. Each Class of Bonds shall be registered in the
name of a nominee designated by the Depository. Beneficial Owners will hold
interests in the Bonds through the book- entry facilities of the Depository in
minimum initial Bond Principal Balances of $25,000 and integral multiples of $1
in excess thereof.
The Indenture Trustee may for all purposes (including the making of
payments due on the Bonds) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Bonds for the
purposes of exercising the rights of Holders of the Bonds hereunder. Except as
provided in the next succeeding paragraph of this Section 4.01, the rights of
Beneficial Owners with respect to the Bonds shall be limited to those
established by law and agreements between such Beneficial Owners and the
Depository and Depository Participants. Except as provided in Section 4.08
hereof, Beneficial Owners shall not be entitled to definitive certificates for
the Bonds as to which they are the Beneficial Owners. Requests and directions
from, and votes of, the Depository as Holder of the Bonds shall not be deemed
inconsistent if they are made with respect to different Beneficial Owners. The
Indenture Trustee may establish a reasonable record date in connection with
solicitations of consents from or voting by Bondholders and give notice to the
Depository of such record date. Without the consent of the Issuer and the
Indenture Trustee, no Bond may be transferred by the Depository except to a
successor Depository that agrees to hold such Xxxx for the account of the
Beneficial Owners.
In the event the Depository Trust Company resigns or is removed as
Depository, the Indenture Trustee with the approval of the Issuer may appoint a
successor Depository. If no successor Depository has been appointed within 30
days of the effective date of the Depository's resignation or removal, each
Beneficial Owner shall be entitled to certificates representing the Bonds it
beneficially owns in the manner prescribed in Section 4.08.
The Bonds shall, on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner
Trustee, authenticated by the Indenture Trustee and delivered by the Indenture
Trustee to or upon the order of the Issuer.
Section 4.02 REGISTRATION OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF BONDS; APPOINTMENT OF BOND REGISTRAR AND CERTIFICATE REGISTRAR. The Issuer
shall cause to be kept at the Corporate Trust Office a Bond Register in which,
subject to such reasonable regulations as it may prescribe, the Bond Registrar
shall provide for the registration of Bonds and of transfers and exchanges of
Bonds as herein provided.
Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Bond at the Corporate Trust
Office, the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Bonds in authorized initial Bond Principal Balances evidencing the same
Class and aggregate Percentage Interests.
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Subject to the foregoing, at the option of the Bondholders, Bonds may
be exchanged for other Bonds of like tenor and in authorized initial Bond
Principal Balances evidencing the same Class and aggregate Percentage Interests
upon surrender of the Bonds to be exchanged at the Corporate Trust Office of the
Bond Registrar. Whenever any Bonds are so surrendered for exchange, the Issuer
shall execute and the Indenture Trustee shall authenticate and deliver the Bonds
which the Bondholder making the exchange is entitled to receive. Each Bond
presented or surrendered for registration of transfer or exchange shall (if so
required by the Bond Registrar) be duly endorsed by, or be accompanied by a
written instrument of transfer in form reasonably satisfactory to the Bond
Registrar duly executed by the Holder thereof or his attorney duly authorized in
writing with such signature guaranteed by a commercial bank or trust company
located or having a correspondent located in the city of New York. Bonds
delivered upon any such transfer or exchange will evidence the same obligations,
and will be entitled to the same rights and privileges, as the Bonds
surrendered.
No service charge shall be made for any registration of transfer or
exchange of Bonds, but the Bond Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Bonds.
The Issuer hereby appoints the Indenture Trustee as (i) Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
to Section 3.09 of the Trust Agreement in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges thereof pursuant to
Section 3.05 of the Trust Agreement and (ii) Bond Registrar under this
Indenture. The Indenture Trustee hereby accepts such appointments.
Section 4.03 MUTILATED, DESTROYED, LOST OR STOLEN BONDS. If (i) any
mutilated Bond is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Bond, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Bond Registrar or
the Indenture Trustee that such Bond has been acquired by a bona fide purchaser,
and provided that the requirements of Section 8- 405 of the UCC are met, the
Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Bond, a replacement Bond; PROVIDED, HOWEVER, that if
any such destroyed, lost or stolen Bond, but not a mutilated Bond, shall have
become or within seven days shall be due and payable, instead of issuing a
replacement Bond, the Issuer may pay such destroyed, lost or stolen Bond when so
due or payable without surrender thereof. If, after the delivery of such
replacement Bond or payment of a destroyed, lost or stolen Bond pursuant to the
proviso to the preceding sentence, a bona fide purchaser of the original Bond in
lieu of which such replacement Bond was issued presents for payment such
original Bond, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Bond (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Bond from such Person to whom such
replacement Bond was delivered or any assignee of such Person, except a bona
fide purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Issuer or the Indenture Trustee in connection therewith.
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Upon the issuance of any replacement Bond under this Section 4.03, the
Issuer may require the payment by the Holder of such Bond of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee) connected therewith.
Every replacement Bond issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Bond shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Bond shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Bonds duly issued hereunder.
The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Bonds.
Section 4.04 PERSONS DEEMED OWNERS. Prior to due presentment for
registration of transfer of any Bond, the Issuer, the Indenture Trustee, the
Paying Agent and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name any Bond is registered (as of the day of determination) as
the owner of such Bond for the purpose of receiving payments of principal of and
interest, if any, on such Bond and for all other purposes whatsoever, whether or
not such Bond be overdue, and neither the Issuer, the Indenture Trustee, the
Paying Agent nor any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.
Section 4.05 CANCELLATION. All Bonds surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Bonds previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the
Indenture Trustee. No Bonds shall be authenticated in lieu of or in exchange for
any Bonds cancelled as provided in this Section 4.05, except as expressly
permitted by this Indenture. All cancelled Bonds may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Request that they be destroyed or returned to it; PROVIDED, HOWEVER, that such
Issuer Request is timely and the Bonds have not been previously disposed of by
the Indenture Trustee.
Section 4.06 BOOK-ENTRY BONDS. The Bonds, upon original issuance, will
be issued in the form of typewritten Bonds representing the Book-Entry Bonds, to
be delivered to The Depository Trust Company, the initial Depository, by, or on
behalf of, the Issuer. The Bonds shall initially be registered on the Bond
Register in the name of Cede & Co., the nominee of the initial Depository, and
no Beneficial Owner will receive a Definitive Bond representing such Beneficial
Owner's interest in such Bond, except as provided in Section 4.08. With respect
to such Bonds, unless and until definitive, fully registered Bonds (the
"Definitive Bonds") have been issued to Beneficial Owners pursuant to Section
4.08:
(i) the provisions of this Section 4.06 shall be in
full force and effect;
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(ii) the Bond Registrar, the Paying Agent and the
Indenture Trustee shall be entitled to deal with the Depository for all
purposes of this Indenture (including the payment of principal of and
interest on the Bonds and the giving of instructions or directions
hereunder) as the sole holder of the Bonds, and shall have no
obligation to the Beneficial Owners of the Bonds;
(iii) to the extent that the provisions of this
Section 4.06 conflict with any other provisions of this Indenture, the
provisions of this Section 4.06 shall control;
(iv) the rights of Beneficial Owners shall be
exercised only through the Depository and shall be limited to those
established by law and agreements between such Owners of Bonds and the
Depository and/or the Depository Participants. Unless and until
Definitive Bonds are issued pursuant to Section 4.08, the initial
Depository will make book- entry transfers among the Depository
Participants and receive and transmit payments of principal of and
interest on the Bonds to such Depository Participants; and
(v) whenever this Indenture requires or permits
actions to be taken based upon instructions or directions of Holders of
Bonds evidencing a specified percentage of the Bond Principal Balances
of the Bonds, the Depository shall be deemed to represent such
percentage with respect to the Bonds only to the extent that it has
received instructions to such effect from Beneficial Owners and/or
Depository Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Bonds and has
delivered such instructions to the Indenture Trustee.
Section 4.07 NOTICES TO DEPOSITORY. Whenever a notice or other
communication to the Bond Holders is required under this Indenture, unless and
until Definitive Bonds shall have been issued to Beneficial Owners pursuant to
Section 4.08, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Bonds to the
Depository, and shall have no obligation to the Beneficial Owners.
Section 4.08 DEFINITIVE BONDS. If (i) the Indenture Trustee determines
that the Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Bonds and the Indenture Trustee is unable
to locate a qualified successor, (ii) the Indenture Trustee elects to terminate
the book-entry system through the Depository or (iii) after the occurrence of an
Event of Default, Beneficial Owners of Bonds representing beneficial interests
aggregating at least a majority of the Bond Principal Balances of the Bonds
advise the Depository in writing that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Beneficial
Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee of the occurrence of any such event and of the availability of
Definitive Bonds to Beneficial Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Bonds representing the Book-Entry Bonds by
the Depository, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Bonds in
accordance with the instructions of the Depository. None of the Issuer, the Bond
Registrar or the Indenture Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Bonds, the
Indenture Trustee shall recognize the Holders of the Definitive Bonds as
Bondholders.
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Section 4.09 TAX TREATMENT. The Issuer has entered into this Indenture,
and the Bonds will be issued with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Bonds will qualify
as indebtedness. The Issuer and the Indenture Trustee (in accordance with
Section 6.06 hereof), by entering into this Indenture, and each Bondholder, by
its acceptance of its Bond (and each Beneficial Owner by its acceptance of an
interest in the applicable Book-Entry Bond), agree to treat the Bonds for
federal, state and local income, single business and franchise tax purposes as
indebtedness.
Section 4.10 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Bonds except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Bonds, (iii) rights of Bondholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Section 4.11), (vi) the
right of the Derivative Contract Counterparty to receive the related Net
Derivative Fee and (vii) the rights of Bondholders as beneficiaries hereof with
respect to the property so deposited with the Indenture Trustee payable to all
or any of them, and the Indenture Trustee, on demand of and at the expense of
the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Bonds and shall release and
deliver the Collateral to or upon the order of the Issuer, when
(A) either
(1) all Bonds theretofore authenticated and delivered (other
than (i) Bonds that have been destroyed, lost or stolen and that have
been replaced or paid as provided in Section 4.03 hereof and (ii) Bonds
for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in Section 3.03) have
been delivered to the Indenture Trustee for cancellation; or
(2) all Bonds not theretofore delivered to the Indenture
Trustee for cancellation
a. have become due and payable,
b. will become due and payable at the Final Scheduled
Payment Date within one year, or
c. have been called for early redemption and the Trust
has been terminated pursuant to Section 8.07 hereof,
and the Issuer, in the case of a. or b. above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness on
such Bonds then outstanding not theretofore delivered to the Indenture Trustee
for cancellation when due on the Final Scheduled Payment Date or other final
Payment Date and has delivered to the Indenture
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Trustee a verification report from a nationally recognized accounting firm
certifying that the amounts deposited with the Indenture Trustee are sufficient
to pay and discharge the entire indebtedness of such Bonds, or, in the case of
c. above, the Issuer shall have complied with all requirements of Section 8.07
hereof,
(B) the Issuer has paid or caused to be paid all other sums
payable hereunder; and
(C) the Issuer has delivered to the Indenture Trustee an
Officer's Certificate and an Opinion of Counsel, each meeting the
applicable requirements of Section 10.01 hereof, each stating that all
conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been complied with and, if the
Opinion of Counsel relates to a deposit made in connection with Section
4.10(A)(2)b. above, such opinion shall further be to the effect that
such deposit will constitute an "in-substance defeasance" within the
meaning of Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance
therewith, the Issuer will be the owner of the assets deposited in
trust for federal income tax purposes.
Section 4.11 APPLICATION OF TRUST MONEY. All monies deposited with the
Indenture Trustee pursuant to Section 4.10 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Bonds and this
Indenture, to the payment, either directly or through any Paying Agent or the
Issuer, Certificate Paying Agent as designee of the Issuer, as the Indenture
Trustee may determine, to the Holders of Securities, of all sums due and to
become due thereon for principal and interest or otherwise; but such monies need
not be segregated from other funds except to the extent required herein or
required by law.
Section 4.12 [RESERVED].
Section 4.13 REPAYMENT OF MONIES HELD BY PAYING AGENT. In connection
with the satisfaction and discharge of this Indenture with respect to the Bonds,
all monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to such Bonds shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.05 and thereupon such Person shall be released from all further
liability with respect to such monies.
Section 4.14 TEMPORARY BONDS. Pending the preparation of any Definitive
Bonds, the Issuer may execute and upon its written direction, the Indenture
Trustee may authenticate and make available for delivery, temporary Bonds that
are printed, lithographed, typewritten, photocopied or otherwise produced, in
any denomination, substantially of the tenor of the Definitive Bonds in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Bonds may
determine, as evidenced by their execution of such Bonds.
If temporary Bonds are issued, the Issuer will cause Definitive Bonds
to be prepared without unreasonable delay. After the preparation of the
Definitive Bonds, the temporary Bonds shall be exchangeable for Definitive Bonds
upon surrender of the temporary Bonds at the office of the Indenture Trustee
located at 000 Xxxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, without charge
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to the Holder. Upon surrender for cancellation of any one or more temporary
Bonds, the Issuer shall execute and the Indenture Trustee shall authenticate and
make available for delivery, in exchange therefor, Definitive Bonds of
authorized denominations and of like tenor, class and aggregate principal
amount. Until so exchanged, such temporary Bonds shall in all respects be
entitled to the same benefits under this Indenture as Definitive Bonds.
Section 4.15 REPRESENTATION REGARDING ERISA. By acquiring a Class 1-A,
Class 2-A, Class 3-A, Class 3-M-1, Class 3-M-2 or Class 3-B Bond or interest
therein, each Holder of such Bond or Beneficial Owner of any such interest will
be deemed to represent that either (1) it is not acquiring such Bond with Plan
Assets or (2) (A) the acquisition, holding and transfer of such Bond will not
give rise to a nonexempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code and (B) the Bonds are rated investment grade or better
and such purchaser agrees to treat them as indebtedness for federal income tax
purposes. Alternatively, regardless of the rating of such Bonds, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuer, the Seller,
the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Master Servicer or any successor servicer, which opines that the acquisition,
holding and transfer of such Bond or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
Indenture Trustee, the Master Servicer or any successor servicer to any
obligation in addition to those undertaken in the Indenture.
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ARTICLE V
Default and Remedies
Section 5.01 EVENTS OF DEFAULT. The Issuer shall deliver to the
Indenture Trustee, within five days after learning of the occurrence of an Event
of Default, written notice in the form of an Officer's Certificate of any event
which with the giving of notice and the lapse of time would become an Event of
Default under clause (iii) or (iv) of the definition of "Event of Default", its
status and what action the Issuer is taking or proposes to take with respect
thereto. The Indenture Trustee shall not be deemed to have knowledge of any
Event of Default unless a Responsible Officer has actual knowledge thereof or
unless written notice of such Event of Default is received by a Responsible
Officer and such notice references the Bonds, the Trust Estate or this
Indenture.
Section 5.02 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee at the written direction of the Holders of Bonds representing
not less than a majority of the aggregate Bond Principal Balance of the Bonds
may declare the Bonds to be immediately due and payable, by a notice in writing
to the Issuer (and to the Indenture Trustee if such notice is given by
Bondholders), and upon any such declaration the unpaid Bond Principal Balance of
the Bonds, together with accrued and unpaid interest thereon through the date of
acceleration shall become immediately due and payable.
At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, Holders of the Bonds representing not
less than a majority of the aggregate Bond Principal Balance of the Bonds, by
written notice to the Issuer and the Indenture Trustee, may waive the related
Event of Default and rescind and annul such declaration and its consequences if
(i) the Issuer has paid or deposited with the
Indenture Trustee a sum sufficient to pay:
(A) all payments of principal of and interest on the
Bonds and all other amounts that would then be due hereunder
or upon the Bonds if the Event of Default giving rise to such
acceleration had not occurred;
(B) all sums paid or advanced by the Indenture
Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its
agents and counsel; and
(C) all amounts owed to the Derivative Contract
Counterparty; and
(ii) all Events of Default, other than the nonpayment
of the principal of the Bonds that has become due solely by such
acceleration, have been cured or waived as provided in Section 5.12.
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No such rescission shall affect any subsequent default or impair any right
consequent thereto.
Section 5.03 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE.
(a) The Issuer covenants that if (i) default is made in the payment of
any interest on any Bond when the same becomes due and payable, and such default
continues for a period of five days, or (ii) default is made in the payment of
the principal of or any installment of the principal of any Bond when the same
becomes due and payable, the Issuer shall, upon demand of the Indenture Trustee,
at the direction of the Holders of a majority of the aggregate Bond Principal
Balances of the Bonds, pay to the Indenture Trustee, for the benefit of the
Holders of Bonds, the whole amount then due and payable on the Bonds for
principal and interest, with interest at the applicable Bond Interest Rate upon
the overdue principal, and in addition thereto such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture
Trustee and its agents and counsel.
(b) In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 10.16 hereof may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute
such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or other obligor upon the Bonds and collect in the manner provided by
law out of the property of the Issuer or other obligor the Bonds, wherever
situated, the monies adjudged or decreed to be payable.
(c) If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 10.16 hereof may, as more
particularly provided in Section 5.04 hereof, in its discretion, proceed to
protect and enforce its rights and the rights of the Bondholders, by such
appropriate Proceedings, as directed in writing by Holders of a majority of the
aggregate Bond Principal Balances of the Bonds, to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.
(d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Bonds or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Bonds, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, as directed in writing by Holders
of a majority of the aggregate Bond Principal Balances of the Bonds,
irrespective of whether the principal of any Bonds shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the provisions of
this Section, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:
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(i) to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the
Bonds and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee
(including any claim for reasonable compensation to the Indenture
Trustee and each predecessor Indenture Trustee, and their respective
agents, attorneys and counsel, and for reimbursement of all expenses
and liabilities incurred, and all advances made, by the Indenture
Trustee and each predecessor Indenture Trustee, except as a result of
negligence or bad faith) and of the Bondholders allowed in such
Proceedings;
(ii) unless prohibited by applicable law and
regulations, to vote on behalf of the Holders of Bonds in any election
of a trustee, a standby trustee or Person performing similar functions
in any such Proceedings;
(iii) to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute
all amounts received with respect to the claims of the Bondholders and
of the Indenture Trustee on their behalf, and
(iv) to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims
of the Indenture Trustee or the Holders of Bonds allowed in any
judicial proceedings relative to the Issuer, its creditors and its
property;
and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Bondholders to make
payments to the Indenture Trustee and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Bondholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee.
(e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Bondholder any plan of reorganization, arrangement, adjustment or
composition affecting the Bonds or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Bondholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.
(f) All rights of action and of asserting claims under this Indenture,
or under any of the Bonds, may be enforced by the Indenture Trustee without the
possession of any of the Bonds or the production thereof in any trial or other
Proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Bonds, subject to Section 5.05 hereof.
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(g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Bonds, and it shall not be necessary to
make any Bondholder a party to any such Proceedings.
Section 5.04 REMEDIES; PRIORITIES. (a) If an Event of Default shall
have occurred and be continuing and if an acceleration has been declared and not
rescinded pursuant to Section 5.02 hereof, the Indenture Trustee subject to the
provisions of Section 10.16 hereof may, and shall, at the written direction of
the Holders of a majority of the aggregate Bond Principal Balances of the Bonds,
do one or more of the following (subject to Section 5.05 hereof):
(i) institute Proceedings in its own name and as
trustee of an express trust for the collection of all amounts then
payable on the Bonds or under this Indenture with respect thereto,
whether by declaration or otherwise enforce any judgment obtained, and
collect from the Issuer and any other obligor upon such Xxxxx monies
adjudged due;
(ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to the
Trust Estate;
(iii) exercise any remedies of a secured party under
the UCC and take any other appropriate action to protect and enforce
the rights and remedies of the Indenture Trustee and the Holders of the
Bonds; and
(iv) sell the Trust Estate or any portion thereof or
rights or interest therein, at one or more public or private sales
called and conducted in any manner permitted by law;
PROVIDED, HOWEVER, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Bond Principal Balance of the Bonds, (B) the proceeds of such sale or
liquidation distributable to the Holders of the Bonds are sufficient to
discharge in full all amounts then due and unpaid upon such Bonds for principal
and interest or (C) the Indenture Trustee determines that the Mortgage Loans
will not continue to provide sufficient funds for the payment of principal of
and interest on the applicable Bonds as they would have become due if the Bonds
had not been declared due and payable, and the Indenture Trustee obtains the
consent of the Holders of a majority of the aggregate Bond Principal Balance of
the Bonds. In determining such sufficiency or insufficiency with respect to
clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely
upon an opinion (obtained at the expense of the Trust) of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose. Notwithstanding the foregoing, so long as an Event of
Servicer Termination has not occurred, any Sale of the Trust Estate shall be
made subject to the continued servicing of the Mortgage Loans by the Master
Servicer as provided in the Servicing Agreement.
(b) If the Indenture Trustee collects any money or property pursuant to
this Article V, it shall pay out the money or property in the following order:
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FIRST: to the Indenture Trustee for amounts due under Section
6.07 hereof;
SECOND: to the Derivative Contract Counterparty, any amounts
owed under the Derivative Contracts, other than any Additional
Derivative Counterparty Payment;
THIRD: to the Bondholders for amounts due and unpaid on the
Bonds (including Unpaid Interest Shortfalls but not including any Basis
Risk Shortfall Carry-Forward Amounts) with respect to interest, first,
to the Class 1-A, Class 2-A and Class 3-A Bondholders, concurrently,
second, to the Class M-1-1 Bondholders and Class M-1-2 Bondholders,
concurrently, third to the Class M-2-1 Bondholders, Class M-2-2
Bondholders and Class 3-M-1 Bondholders, concurrently, fourth to the
Class M-3-1 Bondholders and Class M-3-2 Bondholders, concurrently,
fifth to the Class M-4-1 Bondholders and Class M- 4-2 Bondholders,
concurrently, sixth to the Class M-5-1 Bondholders, Class M-5-2
Bondholders and Class 3-M-2 Bondholders, concurrently, seventh to the
Class M-6-1 Bondholders and M-6-2 Bondholders, concurrently, and
eighth, to the Class 3-B Bondholders, according to the amounts due and
payable on the Bonds for interest;
FOURTH: to Bondholders for amounts due and unpaid on the Bonds
with respect to principal, and to each Bondholder ratably, without
preference or priority of any kind, according to the amounts due and
payable on such Bonds for principal, until the Bond Principal Balance
of each such Class is reduced to zero;
FIFTH: to the Bondholders, first to the Class M-1-1
Bondholders and Class M-1-2 Bondholders, concurrently, second to the
Class M-2-1 Bondholders, Class M-2-2 Bondholders and Class 3-M-1
Bondholders, concurrently, third to the Class M-3-1 Bondholders, fourth
to the Class M-4-1 Bondholders and Class M-4-2 Bondholders,
concurrently, fifth to the Class M-5-1 Bondholders, Class M-5-2
Bondholders and Class 3- M-2 Bondholders, concurrently, sixth to the
Class M-6-1 Bondholders and M-6-2 Bondholders, concurrently, and
seventh, to the Class 3-B Bondholders, the amount of any related
Allocated Realized Loss Amount not previously paid;
SIXTH: to the Bondholders for amounts due and unpaid on the
Bonds with respect to any related Basis Risk Shortfall Carry-Forward
Amounts or Class 2-A Net WAC Cap Shortfall Carry-Forward Amounts, as
applicable, first, to the Class 1-A, Class 2-A and Class 3-A
Bondholders, concurrently, second, to the Class M-1-1 Bondholders and
Class M-1-2 Bondholders, concurrently, third to the Class M-2-1
Bondholders, Class M-2-2 Bondholders and Class 3-M-1 Bondholders,
concurrently, fourth to the Class M-3-1 Bondholders and Class M-3-2
Bondholders, concurrently, fifth to the Class M-4-1 Bondholders and
Class M- 4-2 Bondholders, concurrently, sixth to the Class M-5-1
Bondholders, Class M-5-2 Bondholders and Class 3-M-2 Bondholders,
concurrently, seventh to the Class M-6-1 Bondholders and M-6-2
Bondholders, concurrently, and eighth, to the Class 3-B Bondholders,
according to the amounts due and payable on the Bonds with respect
thereto, from amounts available in the Trust Estate for the
Bondholders;
SEVENTH: to the Derivative Contract Counterparty, any
Additional Derivative Counterparty Payment; and
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EIGHTH: to the payment of the remainder, if any to the
Certificate Paying Agent on behalf of the Issuer or to any other person
legally entitled thereto.
The Indenture Trustee may fix a record date and Payment Date for any
payment to Bondholders pursuant to this Section 5.04. At least 15 days before
such record date, the Indenture Trustee shall mail to each Bondholder a notice
that states the record date, the Payment Date and the amount to be paid.
Section 5.05 OPTIONAL PRESERVATION OF THE TRUST ESTATE. If the Bonds
have been declared to be due and payable under Section 5.02 following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may elect to take and maintain possession of the
Trust Estate. It is the desire of the parties hereto and the Bondholders that
there be at all times sufficient funds for the payment of principal of and
interest on the Bonds and other obligations of the Issuer and the Indenture
Trustee shall take such desire into account when determining whether or not to
take and maintain possession of the Trust Estate. In determining whether to take
and maintain possession of the Trust Estate, the Indenture Trustee may, but need
not, obtain and rely upon an opinion of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.
Section 5.06 LIMITATION OF SUITS. No Holder of any Bond shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless and subject to the provisions of Section 10.16 hereof
(i) such Holder has previously given written notice
to the Indenture Trustee of a continuing Event of Default;
(ii) the Holders of not less than 25% of the
aggregate Bond Principal Balances of the Bonds have made a written
request to the Indenture Trustee to institute such Proceeding in
respect of such Event of Default in its own name as Indenture Trustee
hereunder;
(iii) such Holder or Holders have offered to the
Indenture Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in complying with such request;
(iv) the Indenture Trustee for 60 days after its
receipt of such notice of request and offer of indemnity has failed to
institute such Proceedings; and
(v) no direction inconsistent with such written
request has been given to the Indenture Trustee during such 60-day
period by the Holders of a majority of the Bond Principal Balances of
the Bonds.
It is understood and intended that no one or more Holders of Bonds shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other
Holders of Bonds or to obtain or to seek to obtain priority or preference over
any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.
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Subject to the last paragraph of Section 5.11 herein, in the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Bonds, each representing less
than a majority of the Bond Principal Balances of the Bonds, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.
Section 5.07 UNCONDITIONAL RIGHTS OF BONDHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Bond shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Bond on or
after the respective due dates thereof expressed in such Bond or in this
Indenture and to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such Holder.
Section 5.08 RESTORATION OF RIGHTS AND REMEDIES. If the Indenture
Trustee or any Bondholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Bondholder, then and in every such case the Issuer, the
Indenture Trustee and the Bondholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Bondholders shall continue as though no such Proceeding had been
instituted.
Section 5.09 RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Bondholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.
Section 5.10 DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Indenture Trustee or any Holder of any Bond to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article V or by law to the Indenture
Trustee or to the Bondholders may be exercised from time to time, and as often
as may be deemed expedient, by the Indenture Trustee or by the Bondholders, as
the case may be.
Section 5.11 CONTROL BY BONDHOLDERS. The Holders of a majority of the
aggregate Bond Principal Balances of Bonds shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee with respect to the Bonds or exercising any trust or power
conferred on the Indenture Trustee; provided that:
(i) such direction shall not be in conflict with any
rule of law or with this Indenture;
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(ii) any direction to the Indenture Trustee to sell
or liquidate the Trust Estate shall be by Holders of Bonds representing
not less than 100% of the Bond Principal Balances of the Bonds; and
(iii) the Indenture Trustee may take any other action
deemed proper by the Indenture Trustee that is not inconsistent with
such direction of the Holders of Bonds representing a majority of the
Bond Principal Balances of the Bonds.
Notwithstanding the rights of Bondholders set forth in this Section 5.11 the
Indenture Trustee need not take any action that it determines might involve it
in liability.
Section 5.12 WAIVER OF PAST DEFAULTS. Prior to the declaration of the
acceleration of the maturity of the Bonds as provided in Section 5.02 hereof,
the Holders of Bonds representing not less than a majority of the aggregate Bond
Principal Balance of the Bonds may waive any past Event of Default and its
consequences except an Event of Default (a) with respect to payment of principal
of or interest on any of the Bonds or (b) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Bond. In the case of any such waiver, the Issuer, the Indenture Trustee and
the Holders of the Bonds shall be restored to their former positions and rights
hereunder, respectively, but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereto.
Upon any such waiver, any Event of Default arising therefrom shall be
deemed to have been cured and not to have occurred, for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.
Section 5.13 UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Bond and each Beneficial Owner of any interest
therein by such Xxxxxx's or Beneficial Owner's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Bondholder, or group of
Bondholders, in each case holding in the aggregate more than 10% of the Bond
Principal Balances of the Bonds or (c) any suit instituted by any Bondholder for
the enforcement of the payment of principal of or interest on any Bond on or
after the respective due dates expressed in such Bond and in this Indenture.
Section 5.14 WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power
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herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.
Section 5.15 SALE OF TRUST ESTATE. (a) The power to effect any sale or
other disposition (a "Sale") of any portion of the Trust Estate pursuant to
Section 5.04 hereof is expressly subject to the provisions of Section 5.05
hereof and this Section 5.15. The power to effect any such Sale shall not be
exhausted by any one or more Sales as to any portion of the Trust Estate
remaining unsold, but shall continue unimpaired until the entire Trust Estate
shall have been sold or all amounts payable on the Bonds and under this
Indenture shall have been paid. The Indenture Trustee may from time to time
postpone any public Sale by public announcement made at the time and place of
such Sale. The Indenture Trustee hereby expressly waives its right to any amount
fixed by law as compensation for any Sale.
(b) The Indenture Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless
(1) the Holders of all Bonds consent to or direct the
Indenture Trustee to make, such Sale, or
(2) the proceeds of such Sale would be not less than the
entire amount which would be payable to the Bondholders under the Bonds
in full payment thereof in accordance with Section 5.02 hereof, on the
Payment Date next succeeding the date of such Sale, or
(3) the Indenture Trustee determines that the conditions for
retention of the Trust Estate set forth in Section 5.05 hereof cannot
be satisfied (in making any such determination, the Indenture Trustee
may rely upon an opinion of an Independent investment banking firm
obtained and delivered as provided in Section 5.05 hereof), the Holders
of Bonds representing at least 100% of the Bond Principal Balances of
the Bonds consent to such Sale.
The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).
(c) Unless the Holders representing at least 66-2/3% of the Bond
Principal Balances of the Bonds have otherwise consented or directed the
Indenture Trustee, at any public Sale of all or any portion of the Trust Estate
at which a minimum bid equal to or greater than the amount described in
paragraph (2) of subsection (b) of this Section 5.15 has not been established by
the Indenture Trustee and no Person bids an amount equal to or greater than such
amount, the Indenture Trustee, as trustee for the benefit of the Holders of the
Bonds, shall bid an amount at least $1.00 more than the highest other bid.
(d) In connection with a Sale of all or any portion of the Trust
Estate,
(1) any Holder or Holders of Bonds may bid for and purchase
the property offered for sale, and upon compliance with the terms of
sale may hold, retain and possess and dispose of such property, without
further accountability, and may, in paying the purchase money therefor,
deliver any Bonds or claims for interest thereon in lieu of cash up to
the
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amount which shall, upon distribution of the net proceeds of such
sale, be payable thereon, and such Bonds, in case the amounts so
payable thereon shall be less than the amount due thereon, shall be
returned to the Holders thereof after being appropriately stamped to
show such partial payment;
(2) the Indenture Trustee, may bid for and acquire the
property offered for Sale in connection with any Sale thereof, and,
subject to any requirements of, and to the extent permitted by,
applicable law in connection therewith, may purchase all or any portion
of the Trust Estate in a private sale, and, in lieu of paying cash
therefor, may make settlement for the purchase price by crediting the
gross Sale price against the sum of (A) the amount which would be
distributable to the Holders of the Bonds and Holders of Certificates
as a result of such Sale in accordance with Section 5.04(b) hereof on
the Payment Date next succeeding the date of such Sale and (B) the
expenses of the Sale and of any Proceedings in connection therewith
which are reimbursable to it, without being required to produce the
Bonds in order to complete any such Sale or in order for the net Sale
price to be credited against such Bonds, and any property so acquired
by the Indenture Trustee shall be held and dealt with by it in
accordance with the provisions of this Indenture;
(3) the Indenture Trustee shall execute and deliver an
appropriate instrument of conveyance, prepared by the Issuer and
satisfactory to the Indenture Trustee, transferring its interest in any
portion of the Trust Estate in connection with a Sale thereof;
(4) the Indenture Trustee is hereby irrevocably appointed the
agent and attorney- in-fact of the Issuer to transfer and convey its
interest in any portion of the Trust Estate in connection with a Sale
thereof, and to take all action necessary to effect such Sale; and
(5) no purchaser or transferee at such a Sale shall be bound
to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of
any monies.
Section 5.16 ACTION ON BONDS. The Indenture Trustee's right to seek and
recover judgment on the Bonds or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Bondholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(b) hereof.
Section 5.17 PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS. (a)
Promptly following a request from the Indenture Trustee to do so, the Issuer in
its capacity as holder of the Mortgage Loans, shall take all such lawful action
as the Indenture Trustee may request to cause the Issuer to compel or secure the
performance and observance by the Seller and the Master Servicer, as applicable,
of each of their obligations to the Issuer under or in connection with the
Mortgage Loan Purchase Agreement, any Group 1 or Group 2 Subsequent Mortgage
Loan Purchase Agreement and the Servicing Agreement, and to exercise any and all
rights, remedies, powers and privileges lawfully
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available to the Issuer under or in connection with the Mortgage Loan Purchase
Agreement, any Group 1 or Group 2 Subsequent Mortgage Loan Purchase Agreement
and the Servicing Agreement to the extent and in the manner directed by the
Indenture Trustee, as pledgee of the Mortgage Loans, including the transmission
of notices of default on the part of the Seller or the Master Servicer
thereunder and the institution of legal or administrative actions or proceedings
to compel or secure performance by the Seller or the Master Servicer of each of
their obligations under the Mortgage Loan Purchase Agreement, any Group 1 or
Group 2 Subsequent Mortgage Loan Purchase Agreement and the Servicing Agreement.
(b) The Indenture Trustee, as pledgee of the Mortgage Loans, may, and
at the direction (which direction shall be in writing or by telephone (confirmed
in writing promptly thereafter)) of the Holders of 66-2/3% of the Bond Principal
Balances of the Bonds, shall exercise all rights, remedies, powers, privileges
and claims of the Issuer against the Seller or the Master Servicer under or in
connection with the Mortgage Loan Purchase Agreement, any Group 1 or Group 2
Subsequent Mortgage Loan Purchase Agreement and the Servicing Agreement,
including the right or power to take any action to compel or secure performance
or observance by the Seller or the Master Servicer, as the case may be, of each
of their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Mortgage Loan
Purchase Agreement, any Group 1 or Group 2 Subsequent Mortgage Loan Purchase
Agreement and the Servicing Agreement, as the case may be, and any right of the
Issuer to take such action shall not be suspended.
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ARTICLE VI
The Indenture Trustee
Section 6.01 DUTIES OF INDENTURE TRUSTEE. (a) If an Event of Default
has occurred and is continuing, the Indenture Trustee shall exercise the rights
and powers vested in it by this Indenture 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.
(b) Except during the continuance of an Event of Default:
(i) the Indenture Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into
this Indenture against the Indenture Trustee; and
(ii) in the absence of bad faith on its part, the
Indenture Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and
conforming to the requirements of this Indenture; however, the
Indenture Trustee shall examine the certificates and opinions to
determine whether or not they conform to the requirements of this
Indenture.
(c) The Indenture Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, except that:
(i) this paragraph does not limit the effect of
paragraph (b) of this Section 6.01;
(ii) the Indenture Trustee shall not be liable for
any error of judgment made in good faith by a Responsible Officer
unless it is proved that the Indenture Trustee was negligent in
ascertaining the pertinent facts; and
(iii) the Indenture Trustee shall not be liable with
respect to any action it takes or omits to take in good faith in
accordance with a direction received by it from Bondholders or from the
Issuer, which they are entitled to give under the Basic Documents.
(d) The Indenture Trustee shall not be liable for interest on any money
received by it except as the Indenture Trustee may agree in writing with the
Issuer.
(e) Money held in trust by the Indenture Trustee need not be segregated
from other trust funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.
(f) No provision of this Indenture shall require the Indenture Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that
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repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.
(g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section and to the provisions of the
TIA.
(h) The Indenture Trustee shall act in accordance with Sections 6.03
and 6.04 of the Servicing Agreement and shall act as successor to the Master
Servicer or appoint a successor Master Servicer in accordance with Section 6.02
of the Servicing Agreement.
Section 6.02 RIGHTS OF INDENTURE TRUSTEE. (a) The Indenture Trustee may
rely on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Indenture Trustee need not investigate any
fact or matter stated in the document.
(b) Before the Indenture Trustee acts or refrains from acting, it may
require an Officer's Certificate or an Opinion of Counsel. The Indenture Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on an Officer's Certificate or Opinion of Counsel.
(c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee.
(d) The Indenture Trustee shall not be liable for any action it takes
or omits to take in good faith which it believes to be authorized or within its
rights or powers; PROVIDED, HOWEVER, that the Indenture Trustee's conduct does
not constitute willful misconduct, negligence or bad faith.
(e) The Indenture Trustee may consult with counsel, and the advice or
Opinion of Counsel with respect to legal matters relating to this Indenture and
the Bonds shall be full and complete authorization and protection from liability
in respect to any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel.
(f) For the limited purpose of effecting any action to be undertaken by
the Indenture Trustee, but not specifically as a duty of the Indenture Trustee
in the Indenture, the Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder, either directly or by or through
agents, attorneys, custodians or nominees appointed with due care, and shall not
be responsible for any willful misconduct or negligence on the part of any
agent, attorney, custodian or nominee so appointed.
(g) The Indenture Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Indenture Trustee's
economic self-interest for (i) serving as investment adviser, administrator,
shareholder servicing agent, custodian or sub-custodian with respect to certain
of the Eligible Investments, (ii) using Affiliates to effect transactions in
certain Eligible Investments and (iii) effecting transactions in certain
Xxxxxxxx Investments. Such compensation shall not be considered an amount that
is reimbursable or payable to the Indenture Trustee (i) as part of the Indenture
Trustee Fee, (ii) pursuant to Sections 3.05(d), 3.05(h), 3.05(l), 5.04(b), 6.07
or 8.02(c) hereunder or (iii) out of Available Funds.
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(h) In order to comply with its duties under the U.S. Patriot Act, the
Indenture Trustee shall obtain and verify certain information and documentation
from the other party to this Indenture, including, but not limited to, such
party's name, address, and other identifying information.
Section 6.03 INDIVIDUAL RIGHTS OF INDENTURE TRUSTEE. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Bonds and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee, subject to the
requirements of the Trust Indenture Act. Any Bond Registrar, co-registrar or
co-paying agent may do the same with like rights. However, the Indenture Trustee
must comply with Sections 6.11 and 6.12 hereof.
Section 6.04 INDENTURE TRUSTEE'S DISCLAIMER. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Bonds, it shall not be accountable for the
Issuer's use of the proceeds from the Bonds, and it shall not be responsible for
any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Bonds or in the Bonds other than the Indenture
Trustee's certificate of authentication.
Section 6.05 NOTICE OF EVENT OF DEFAULT. Subject to Section 5.01, the
Indenture Trustee shall promptly mail to each Bondholder notice of the Event of
Default after it is known to a Responsible Officer of the Indenture Trustee,
unless such Event of Default shall have been waived or cured. Except in the case
of an Event of Default in payment of principal of or interest on any Bond, the
Indenture Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Bondholders.
Section 6.06 REPORTS BY INDENTURE TRUSTEE TO HOLDERS AND TAX
ADMINISTRATION. The Indenture Trustee shall deliver to each Bondholder such
information as may be required to enable such holder to prepare its federal and
state income tax returns.
The Indenture Trustee shall prepare and file (or cause to be prepared
and filed), on behalf of the Owner Trustee, all tax returns (if any) and
information reports, tax elections and such annual or other reports of the
Issuer as are necessary for preparation of tax returns and information reports
as provided in Section 5.03 of the Trust Agreement, including without limitation
Form 1099. All tax returns and information reports shall be signed by the Owner
Trustee as provided in Section 5.03 of the Trust Agreement.
Section 6.07 COMPENSATION AND INDEMNITY. The Issuer shall pay to the
Indenture Trustee on each Payment Date reasonable compensation for its services.
The amount of the Indenture Trustee's Fee shall be paid by the Master Servicer
to the Indenture Trustee on each Payment Date pursuant to Section 3.07(a)(x) of
the Servicing Agreement and all amounts owing to the Indenture Trustee hereunder
(including amounts owing from the Issuer for indemnification and otherwise) in
excess of such amount shall be paid solely as provided in Section 3.05(d)(ix),
Section 3.05(h)(ix) and Section 5.04(b) hereof. The Indenture Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Indenture Trustee for all
reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to compensation for its services. Such expenses shall
include reasonable compensation and
56
expenses, disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. The Issuer shall indemnify the Indenture Trustee
against any and all loss, liability or expense (including attorneys' fees)
incurred by it in connection with the administration of this Trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Issuer promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer shall not relieve the Issuer of its
obligations hereunder. The Issuer shall defend any such claim, and the Indenture
Trustee may have separate counsel and the Issuer shall pay the fees and expenses
of such counsel. The Issuer is not obligated to reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee through the Indenture Trustee's own willful misconduct, negligence or
bad faith.
The Issuer's payment obligations to the Indenture Trustee pursuant to
this Section 6.07 shall survive the discharge of this Indenture and the
termination or resignation of the Indenture Trustee. When the Indenture Trustee
incurs expenses after the occurrence of an Event of Default with respect to the
Issuer, the expenses are intended to constitute expenses of administration under
Title 11 of the United States Code or any other applicable federal or state
bankruptcy, insolvency or similar law.
Section 6.08 REPLACEMENT OF INDENTURE TRUSTEE. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may resign at any time by so notifying the Issuer. Holders of a majority of Bond
Principal Balances of the Bonds may remove the Indenture Trustee by so notifying
the Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer
shall, remove the Indenture Trustee if:
(i) the Indenture Trustee fails to comply with
Section 6.11 hereof;
(ii) the Indenture Trustee is adjudged a bankrupt or
insolvent;
(iii) a receiver or other public officer takes charge
of the Indenture Trustee or its property; or
(iv) the Indenture Trustee otherwise becomes
incapable of acting.
If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall, promptly appoint a successor Indenture Trustee.
A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon, the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the rights, powers and duties
of the Indenture Trustee under this Indenture. The successor Indenture Trustee
shall mail a notice of its succession to Bondholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.
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If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of a majority of Bond Principal
Balances of the Bonds may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.
Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.
Section 6.09 SUCCESSOR INDENTURE TRUSTEE BY MERGER. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation, without any further act, shall be the successor Indenture Trustee;
provided, that such corporation or banking association shall be otherwise
qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall
provide the Rating Agencies with prior written notice of any such transaction.
If at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture and any of the Bonds shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee and deliver such Bonds so
authenticated; and if at that time any of the Bonds shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Bonds either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which it is in the Bonds or in this Indenture provided
that the certificate of the Indenture Trustee shall have.
Section 6.10 APPOINTMENT OF CO-INDENTURE TRUSTEE OR SEPARATE INDENTURE
TRUSTEE. (a) Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Indenture
Trustee shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust Estate, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Bondholders, such title to the Trust Estate, or any part hereof, and, subject to
the other provisions of this Section, such powers, duties, obligations, rights
and trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 hereof.
(b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:
(i) all rights, powers, duties and obligations
conferred or imposed upon the Indenture Trustee shall be conferred or
imposed upon and exercised or performed by the Indenture Trustee and
such separate trustee or co-trustee jointly (it being understood that
such separate trustee or co-trustee is not authorized to act separately
without the Indenture Trustee joining in such act), except to the
extent that under any law of any jurisdiction in
58
which any particular act or acts are to be performed the Indenture
Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust Estate or any portion
thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the
direction of the Indenture Trustee;
(ii) no trustee hereunder shall be personally liable
by reason of any act or omission of any other trustee hereunder; and
(iii) the Indenture Trustee may at any time accept
the resignation of or remove any separate trustee or co-trustee.
(c) Any notice, request or other writing given to the Indenture 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 Indenture and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.
(d) Any separate trustee or co-trustee may at any time constitute the
Indenture 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 Indenture 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 Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.
Section 6.11 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and it or its parent
shall have a long-term debt rating of Baa3 or better by Xxxxx'x and BBB or
better by Standard & Poor's. The Indenture Trustee shall comply with TIA ss.
310(b), including the optional provision permitted by the second sentence of TIA
ss. 310(b)(9); PROVIDED, HOWEVER, that there shall be excluded from the
operation of TIA ss. 310(b)(1) any indenture or indentures under which other
securities of the Issuer are outstanding if the requirements for such exclusion
set forth in TIA ss. 310(b)(1) are met.
Section 6.12 PREFERENTIAL COLLECTION OF CLAIMS AGAINST ISSUER. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.
Section 6.13 REPRESENTATIONS AND WARRANTIES. The Indenture Trustee
hereby represents that:
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(i) The Indenture Trustee is duly organized and
validly existing as an association in good standing under the laws of
the United States with power and authority to own its properties and to
conduct its business as such properties are currently owned and such
business is presently conducted;
(ii) The Indenture Trustee has the power and
authority to execute and deliver this Indenture and to carry out its
terms; and the execution, delivery and performance of this Indenture
have been duly authorized by the Indenture Trustee by all necessary
corporate action;
(iii) The consummation of the transactions
contemplated by this Indenture and the fulfillment of the terms hereof
do not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time)
a default under, the articles of incorporation or bylaws of the
Indenture Trustee or any agreement or other instrument to which the
Indenture Trustee is a party or by which it is bound; and
(iv) To the Indenture Trustee's knowledge, there are
no proceedings or investigations pending or threatened before any
court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Indenture Trustee or its
properties: (A) asserting the invalidity of this Indenture (B) seeking
to prevent the consummation of any of the transactions contemplated by
this Indenture or (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Indenture
Trustee of its obligations under, or the validity or enforceability of,
this Indenture.
Section 6.14 DIRECTIONS TO INDENTURE TRUSTEE. The Indenture
Trustee is hereby directed:
(a) to accept the pledge of the Mortgage Loans and hold the assets of
the Trust Estate in trust for the Bondholders;
(b) to authenticate and deliver the Bonds substantially in the form
prescribed by Exhibits A-1 and A-2 to this Indenture in accordance with the
terms of this Indenture; and
(c) to take all other actions as shall be required to be taken by the
terms of this Indenture.
Section 6.15 THE AGENTS. The provisions of this Indenture relating to
the limitations of the Indenture Trustee's liability and to its indemnity,
rights and protections shall inure also to the Paying Agent and Bond Registrar.
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ARTICLE VII
Bondholders' Lists and Reports
Section 7.01 ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND ADDRESSES OF
BONDHOLDERS. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably require, of the names and addresses of
the Holders of Bonds as of such Record Date, (b) at such other times as the
Indenture Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; PROVIDED, HOWEVER,
that so long as the Indenture Trustee is the Bond Registrar, no such list shall
be required to be furnished to the Indenture Trustee.
Section 7.02 PRESERVATION OF INFORMATION; COMMUNICATIONS TO
BONDHOLDERS. (a) The Indenture Trustee shall preserve, in as current a form as
is reasonably practicable, the names and addresses of the Holders of Bonds
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 hereof and the names and addresses of Holders of Bonds received
by the Indenture Trustee in its capacity as Bond Registrar. The Indenture
Trustee may destroy any list furnished to it as provided in such Section 7.01
upon receipt of a new list so furnished.
(b) Bondholders may communicate pursuant to TIA ss. 312(b) with other
Bondholders with respect to their rights under this Indenture or under the
Bonds.
(c) The Issuer, the Indenture Trustee and the Bond Registrar shall have
the protection of TIA ss. 312(c).
Section 7.03 REPORTS OF ISSUER. (a) Subject to Section 4.06 of the
Servicing Agreement (i) The Indenture Trustee shall file with the Commission on
behalf of the Issuer, with a copy to the Issuer within 15 days before the Issuer
is required to file the same with the Commission, the annual reports and the
information, documents and other reports (or such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) that the Issuer may be required to file with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act;
(ii) The Indenture Trustee shall file with the
Commission, on behalf of the Issuer, in accordance with rules and
regulations prescribed from time to time by the Commission such
additional information, documents and reports with respect to
compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(iii) The Indenture Trustee shall supply (and the
Indenture Trustee shall transmit by mail to all Bondholders described
in TIA ss. 313(c)) such summaries of any information, documents and
reports required to be filed by the Issuer pursuant to clauses (i) and
(ii) of this Section 7.03(a) and by rules and regulations prescribed
from time to time by the Commission.
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(b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.
Section 7.04 REPORTS BY INDENTURE TRUSTEE. If required by TIA ss.
313(a), within 60 days after each January 30 beginning with March 31, 2004, the
Indenture Trustee shall mail to each Bondholder as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Indenture Trustee also shall comply with TIA ss. 313(b).
A copy of each report at the time of its mailing to Bondholders shall
be filed by the Indenture Trustee with the Commission via XXXXX and each stock
exchange, if any, on which the Bonds are listed. The Issuer shall notify the
Indenture Trustee if and when the Bonds are listed on any stock exchange.
Section 7.05 STATEMENTS TO BONDHOLDERS. (a) With respect to each
Payment Date, the Indenture Trustee shall make available via the Indenture
Trustee's website xxxxx://xxx.xxxxxxxxxxxxxx.xx.xxx/xxxx or deliver at the
recipient's option to each Bondholder and each Certificateholder, the Derivative
Contract Counterparty, the Depositor, the Owner Trustee, the Certificate Paying
Agent and each Rating Agency, a statement setting forth the following
information as to the Bonds, to the extent applicable:
(i) the aggregate amount of collections with
respect to the Mortgage Loans;
(ii) the Group 1 Available Funds, Group 2 Available
Funds, Group 3 Available Funds and Net Monthly Excess Cash Flow, with
respect to the Group 1 Loans, Group 2 Loans and Group 3 Loans, payable
to each Class of Bondholders for such Payment Date, the Basis Risk
Shortfall Carry-Forward Amount or Class 2-A Net WAC Cap Shortfall
Carry-Forward Amount, as applicable, on each Class of Bonds for such
Payment Date and the aggregate Unpaid Interest Shortfall on each Class
of Bonds for such Payment Date;
(iii) (a) the amount of such distribution to each
Class of Class 1-A, Class 2-A, Class 3-A, Class 3-M-1, Class 3-M-2,
Class 3-B, Class M-1-1, Class M-2-1, Class M-3- 1, Class M-4-1, Class
M-5-1, Class M-6-1, Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2,
Class M-5-2 and Class M-6-2 Bonds applied to reduce the Bond Principal
Balance thereof, and (b) the aggregate amount included therein
representing Principal Prepayments;
(iv) the amount of such distribution to Holders of
each Class of Bonds allocable to interest;
(v) the amount of such distribution to the
Certificates;
(vi) if the distribution to the Holders of any Class
of Bonds is less than the full amount that would be distributable to
such Holders if there were sufficient funds available therefor, the
amount of the shortfall;
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(vii) the number and the aggregate Stated Principal
Balance of the Mortgage Loans as of the end of the related Due Period,
determined in the aggregate and separately for Loan Group 1, Loan Group
2 and Loan Group 3;
(viii) the aggregate Bond Principal Balance of each
Class of Bonds, after giving effect to the amounts distributed on such
Payment Date, separately identifying any reduction thereof due to
Realized Losses other than pursuant to an actual distribution of
principal and the aggregate Bond Principal Balance of all of the Class
1-A, Class 2-A, Class 3-A, Class 3-M-1, Class 3-M-2, Class 3-B, Class
M-1-1, Class M-2-1, Class M-3-1, Class M-4-1, Class M-5-1, Class M-6-1,
Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2, Class M-5-2 and
Class M-6-2 Bonds after giving effect to the distribution of principal
on such Payment Date;
(ix) the number and aggregate Stated Principal
Balances of Mortgage Loans (a) as to which the Monthly Payment is
delinquent for 31-60 days, 61-90 days, 91 or more days, respectively,
(b) in foreclosure and (c) that have become REO Property, in each case
as of the end of the preceding calendar month, determined in the
aggregate and separately for Loan Group 1, Loan Group 2 and Loan Group
3;
(x) the Class 1-A Net Derivative Contract Payment
Amount, Class M Net Derivative Contract Payment Amount, and Group 3 Net
Derivative Contract Payment Amount;
(xi) the Overcollateralization Increase Amount with
respect to each Loan Group, Overcollateralization Release Amount,
Overcollateralization Target Amount and Overcollateralized Amount, if
any, in each case as the end of the related Payment Date, in each case
as determined separately for each Loan Group;
(xii) the amount of any Advances and Compensating
Interest payments;
(xiii) the aggregate Realized Losses with respect to
the related Payment Date and cumulative Realized Losses since the
Closing Date;
(xiv) the number and aggregate Stated Principal
Balance of Mortgage Loans repurchased pursuant to the Mortgage Loan
Purchase Agreement for the related Payment Date and cumulatively since
the Closing Date determined in the aggregate and separately for Loan
Group 1, Loan Group 2 and Loan Group 3;
(xv) the book value of any REO Property;
(xvi) the amount of any Prepayment Interest
Shortfalls or Relief Act Shortfalls for such Payment Date;
(xvii) the aggregate Stated Principal Balance of
Mortgage Loans purchased pursuant to Section 3.18 of the Servicing
Agreement for the related Payment Date and cumulatively since the
Closing Date;
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(xviii) the amount withdrawn from the Group 1
Pre-Funding Account and used to make payments to Bondholders on that
Payment Date, the amount remaining on deposit following such Payment
Date, and the amount withdrawn from the Group 1 Pre- Funding Account
used to buy certain Group 1 Subsequent Mortgage Loans prior to such
Payment Date; and
(xix) the amount withdrawn from the Group 2
Pre-Funding Account and used to make payments to Bondholders on that
Payment Date, the amount remaining on deposit following such Payment
Date, and the amount withdrawn from the Group 2 Pre- Funding Account
used to buy certain Group 2 Subsequent Mortgage Loans prior to such
Payment Date.
Items (iii) and (v) above shall be presented on the basis of a Bond
having a $1,000 denomination. In addition, by January 31 of each calendar year
following any year during which the Bonds are outstanding, the Indenture Trustee
shall furnish a report to each Bondholder of record if so requested in writing
at any time during each calendar year as to the aggregate of amounts reported
pursuant to (iii), (iv) and (v) with respect to the Bonds for such calendar
year.
The Indenture Trustee may conclusively rely upon the Remittance Report
provided by the Master Servicer pursuant to Section 4.01 of the Servicing
Agreement and on the amount of the Net Derivative Contract Payment Amount
furnished to the Indenture Trustee pursuant to the Derivative Contracts in its
preparation of its Statement to Bondholders.
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ARTICLE VIII
Accounts, Disbursements and Releases
Section 8.01 COLLECTION OF MONEY. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.
Section 8.02 TRUST ACCOUNTS. (a) On or prior to the Closing Date, the
Issuer shall cause the Indenture Trustee to establish and maintain, in the name
of the Indenture Trustee, for the benefit of the Bondholders and the Derivative
Contract Counterparty, the Payment Account as provided in Section 3.01 hereof.
(b) All monies deposited from time to time in the Payment Account and
all deposits therein pursuant to this Indenture (other than deposits of any gain
or income on investments thereof) are for the benefit of the Bondholders. Any
loss on any investment made by the Indenture Trustee with funds in the Payment
Account shall be reimbursed immediately to the Trust Estate by the Master
Servicer. All investments made with monies in the Payment Account and the
Certificate Distribution Account including all income or other gain from such
investments shall be for the benefit of and the risk of the Master Servicer.
(c) On each Payment Date, the Indenture Trustee shall pay itself the
Indenture Trustee's Fee for such Payment Date and then shall pay the the Class
1-A Net Derivative Contract Payment Amount, Class M Net Derivative Contract
Payment Amount, and Group 3 Net Derivative Contract Payment Amount, in each case
excluding any Additional Derivative Contract Counterparty Payment, and then the
Indenture Trustee shall distribute all remaining amounts on deposit in the
Payment Account to the Bondholders in respect of the Bonds and to such other
persons in the order of priority set forth in Section 3.05 hereof (except as
otherwise provided in Section 5.04(b) hereof).
(d) The Indenture Trustee shall invest any funds in the Payment
Account, but only in Eligible Investments, as directed by the Master Servicer,
maturing no later than the Business Day preceding each Payment Date and such
Eligible Investments shall not be sold or disposed of prior to their maturity.
Section 8.03 OFFICER'S CERTIFICATE. The Indenture Trustee shall receive
at least seven Business Days' notice when requested by the Issuer to take any
action pursuant to Section 8.05(a) hereof, accompanied by copies of any
instruments to be executed, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate, in form and substance
satisfactory
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to the Indenture Trustee, stating the legal effect of any such action, outlining
the steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with.
Section 8.04 TERMINATION UPON DISTRIBUTION TO BONDHOLDERS. This
Indenture and the respective obligations and responsibilities of the Issuer and
the Indenture Trustee created hereby shall terminate upon the distribution to
Bondholders, the Certificate Paying Agent on behalf of the Certificateholders
and the Indenture Trustee of all amounts required to be distributed pursuant to
Article III; PROVIDED, HOWEVER, that in no event shall the trust created hereby
continue beyond the expiration of 21 years from the death of the 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.
Section 8.05 RELEASE OF TRUST ESTATE. (a) Subject to the payment of its
fees and expenses, the Indenture Trustee may, and when required by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture, or convey the Indenture Trustee's interest in the
same, in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture, including for the purposes of any repurchase by
the Master Servicer of a Mortgage Loan pursuant to Section 3.18 of the Servicing
Agreement. No party relying upon an instrument executed by the Indenture Trustee
as provided in Article VIII hereunder shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent,
or see to the application of any monies.
(b) The Indenture Trustee shall, at such time as (i) there are no Bonds
Outstanding and (ii) all sums due to the Indenture Trustee pursuant to this
Indenture have been paid, release any remaining portion of the Trust Estate that
secured the Bonds from the lien of this Indenture.
(c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of a request from the
Issuer accompanied by an Officers' Certificate and an Opinion of Counsel stating
that all applicable requirements have been satisfied.
Section 8.06 SURRENDER OF BONDS UPON FINAL PAYMENT. By acceptance of
any Xxxx, the Holder thereof agrees to surrender such Xxxx to the Indenture
Trustee promptly, prior to such Bondholder's receipt of the final payment
thereon.
Section 8.07 OPTIONAL REDEMPTION OF THE BONDS. (a) The Majority
Certificateholder shall have the option to redeem the Bonds in whole, but not in
part, on any Payment Date on or after the earlier of (i) the Payment Date on
which the aggregate Stated Principal Balance of the Group 1 Loans and Group 2
Loans as of the end of the prior Due Period is less than or equal to 25% of the
aggregate Stated Principal Balance of the Group 1 Loans and Group 2 Loans as of
the Cut-off Date and the sum of the Group 1 Original Pre-Funded Amount and Group
2 Original Pre-Funded Amount and (ii) the Payment Date occurring in April 2014.
The holder of the Owner Trust Certificates, or, if there is no single holder,
the majority holder of the Owner Trust Certificates, may purchase the Group 3
Bonds from the trust, effecting the early retirement of the Group 3 Bonds, on or
after the earlier of (i) the Payment Date on which the aggregate Stated
Principal Balance of the Group 3 Loans as of the end of the prior Due Period is
less than or equal to 25% of the aggregate Stated Principal Balance of the Group
3 Loans as of the Cut-off Date and (ii) the Payment Date occurring in April
2014. The
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purchase price for the Group 1 Bonds and Group 2 Bonds will be equal to 100% of
the aggregate outstanding Bond Principal Balance of these Bonds and accrued and
unpaid interest thereon (including any related Unpaid Interest Shortfall, Class
2-A Net WAC Shortfall Carry-Forward Amount and Basis Risk Shortfall
Carry-Forward Amount) at the Bond Interest Rate through the date on which these
Bonds are redeemed in full together with all amounts due and owing to the
Indenture Trustee and the Grantor Trustee in relation to these called Bonds,
plus an amount equal to any amounts owing to the Derivative Contract
Counterparty under the related Derivative Contracts. The purchase price for the
Group 3 Bonds will be equal to 100% of the aggregate outstanding Bond Principal
Balance of the related Bonds and accrued and unpaid interest thereon (including
any related Unpaid Interest Shortfall and Basis Risk Shortfall Carry-Forward
Amount) at the Bond Interest Rate through the date on which these Bonds are
redeemed in full together with all amounts due and owing to the Indenture
Trustee and the Grantor Trustee in relation to these called Bonds, plus an
amount equal to any amounts owing to the Derivative Contract Counterparty under
the related Derivative Contracts.
(b) In order to exercise the foregoing option, the Issuer shall provide
written notice of its exercise of such option to the Indenture Trustee, the
Owner Trustee and the Master Servicer at least 15 days prior to its exercise.
Following receipt of the notice, the Indenture Trustee shall provide notice to
the Bondholders of the final payment on the Bonds. In addition, the Issuer
shall, not less than one Business Day prior to the proposed Payment Date on
which such redemption is to be made, deposit the aggregate redemption price
specified in (a) above with the Indenture Trustee, who shall deposit the
aggregate redemption price into the Payment Account and shall, on the Payment
Date after receipt of the funds, apply such funds to make final payments of
principal and interest on the Bonds in accordance with Section 3.05(b), (c),
(f), (g), (j) and (k) hereof, and this Indenture shall be discharged subject to
the provisions of Section 4.10 hereof. If for any reason the amount deposited by
the Issuer is not sufficient to make such redemption or such redemption cannot
be completed for any reason, the amount so deposited by the Issuer with the
Indenture Trustee shall be immediately returned to the Issuer in full and shall
not be used for any other purpose or be deemed to be part of the Trust Estate.
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ARTICLE IX
Supplemental Indentures
Section 9.01 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF BONDHOLDERS.
(a) Without the consent of the Holders of any Bonds but with prior notice to the
Rating Agencies, the Issuer and the Indenture Trustee, when authorized by an
Issuer Request, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the TIA
as in force at the date of the execution thereof), in form satisfactory to the
Indenture Trustee, for any of the following purposes:
(i) to correct or amplify the description of any
property at any time subject to the lien of this Indenture, or better
to assure, convey and confirm unto the Indenture Trustee any property
subject or required to be subjected to the lien of this Indenture, or
to subject to the lien of this Indenture additional property;
(ii) to evidence the succession, in compliance with
the applicable provisions hereof, of another person to the Issuer, and
the assumption by any such successor of the covenants of the Issuer
herein and in the Bonds contained;
(iii) to add to the covenants of the Issuer, for the
benefit of the Holders of the Bonds, or to surrender any right or power
herein conferred upon the Issuer;
(iv) to convey, transfer, assign, mortgage or pledge
any property to or with the Indenture Trustee;
(v) to cure any ambiguity, to correct or supplement
any provision herein or in any supplemental indenture that may be
inconsistent with any other provision herein or in any supplemental
indenture;
(vi) to make any other provisions with respect to
matters or questions arising under this Indenture or in any
supplemental indenture; provided, that such action shall not materially
and adversely affect the interests of the Holders of the Bonds;
(vii) to evidence and provide for the acceptance of
the appointment hereunder by a successor trustee with respect to the
Bonds and to add to or change any of the provisions of this Indenture
as shall be necessary to facilitate the administration of the trusts
hereunder by more than one trustee, pursuant to the requirements of
Article VI hereof; or
(viii) to modify, eliminate or add to the provisions
of this Indenture to such extent as shall be necessary to effect the
qualification of this Indenture under the TIA or under any similar
federal statute hereafter enacted and to add to this Indenture such
other provisions as may be expressly required by the TIA;
PROVIDED, HOWEVER, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel as to the
enforceability of any such indenture
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supplement and to the effect that (i) such indenture supplement is permitted
hereunder and (ii) entering into such indenture supplement will not result in a
"substantial modification" of the Bonds under Treasury Regulation Section
1.1001-3 or adversely affect the status of the Bonds as indebtedness for federal
income tax purposes.
The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.
(b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Request, may, also without the consent of any of the Holders of the Bonds and
prior notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Bonds under this
Indenture; PROVIDED, HOWEVER, that such action as evidenced by an Opinion of
Counsel, (i) is permitted by this Indenture, and shall not (ii) adversely affect
in any material respect the interests of any Bondholder or (iii) if 100% of the
Certificates are not owned by IMH Assets Corp., cause the Issuer to be subject
to an entity level tax for federal income tax purposes.
Section 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF BONDHOLDERS. The
Issuer and the Indenture Trustee, when authorized by an Issuer Request, also
may, with prior notice to the Rating Agencies and, with the consent of the
Holders of not less than a majority of the Bond Principal Balance of each Class
of Bonds affected thereby, by Act (as defined in Section 10.03 hereof) of such
Holders delivered to the Issuer and the Indenture Trustee, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Bonds under this Indenture; PROVIDED, HOWEVER, that no such supplemental
indenture shall, without the consent of the Holder of each Bond affected
thereby:
(i) change the date of payment of any installment of
principal of or interest on any Bond, or reduce the principal amount
thereof or the interest rate thereon, change the provisions of this
Indenture relating to the application of collections on, or the
proceeds of the sale of, the Trust Estate to payment of principal of or
interest on the Bonds, or change any place of payment where, or the
coin or currency in which, any Bond or the interest thereon is payable,
or impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds
available therefor, as provided in Article V, to the payment of any
such amount due on the Bonds on or after the respective due dates
thereof;
(ii) reduce the percentage of the Bond Principal
Balances of the Bonds, the consent of the Holders of which is required
for any such supplemental indenture, or the consent of the Holders of
which is required for any waiver of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences
provided for in this Indenture;
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(iii) modify or alter the provisions of the proviso
to the definition of the term "Outstanding" or modify or alter the
exception in the definition of the term "Holder";
(iv) reduce the percentage of the Bond Principal
Balances of the Bonds required to direct the Indenture Trustee to
direct the Issuer to sell or liquidate the Trust Estate pursuant to
Section 5.04 hereof;
(v) modify any provision of this Section 9.02 except
to increase any percentage specified herein or to provide that certain
additional provisions of this Indenture or the Basic Documents cannot
be modified or waived without the consent of the Holder of each Bond
affected thereby;
(vi) modify any of the provisions of this Indenture
in such manner as to affect the calculation of the amount of any
payment of interest or principal due on any Bond on any Payment Date
(including the calculation of any of the individual components of such
calculation); or
(vii) permit the creation of any lien ranking prior
to or on a parity with the lien of this Indenture with respect to any
part of the Trust Estate or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any
property at any time subject hereto or deprive the Holder of any Bond
of the security provided by the lien of this Indenture;
and PROVIDED, FURTHER, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer (if 100% of the Certificates are not owned by IMH
Assets Corp.) to be subject to an entity level tax.
Any such action shall not adversely affect in any material respect the
interest of any Holder (other than a Holder who shall consent to such
supplemental indenture) as evidenced by an Opinion of Counsel (provided by the
Person requesting such supplemental indenture) delivered to the Indenture
Trustee.
No supplemental indenture adverse to the interests of the Derivative
Contract Counterparty shall be entered into without the Derivative Contract
Counterparty's written consent.
It shall not be necessary for any Act of Bondholders under this Section
9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.
Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section 9.02, the Indenture Trustee
shall mail to the Holders of the Bonds to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.
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Section 9.03 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02 hereof, shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Indenture Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
that affects the Indenture Trustee's own rights, duties, liabilities or
immunities under this Indenture or otherwise.
Section 9.04 EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Bonds affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Holders of the Bonds
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.
Section 9.05 CONFORMITY WITH TRUST INDENTURE ACT. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.
Section 9.06 REFERENCE IN BONDS TO SUPPLEMENTAL INDENTURES. Bonds
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Bonds so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Bonds.
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ARTICLE X
Miscellaneous
Section 10.01 COMPLIANCE CERTIFICATES AND OPINIONS, ETC. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that, in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture,
no additional certificate or opinion need be furnished.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition
and the definitions herein relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(3) a statement that, in the opinion of each such signatory,
such signatory has made such examination or investigation as is
necessary to enable such signatory to express an informed opinion as to
whether or not such covenant or condition has been complied with;
(4) a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with; and
(5) if the signatory of such certificate or opinion is
required to be Independent, the statement required by the definition of
the term "Independent".
(b) (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 10.01 (a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days prior to such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited and
a report from a nationally recognized accounting firm verifying such value.
(ii) Whenever the Issuer is required to furnish to
the Indenture Trustee an Officer's Certificate certifying or stating
the opinion of any signer thereof as to the matters described in clause
(i) above, the Issuer shall also deliver to the Indenture Trustee an
Independent Certificate from a nationally recognized accounting firm as
to the same matters, if the fair value of the securities to be so
deposited and of all other such securities made the
72
basis of any such withdrawal or release since the commencement of the
then current fiscal year of the Issuer, as set forth in the
certificates delivered pursuant to clause (i) above and this clause
(ii), is 10% or more of the Bond Principal Balances of the Bonds, but
such a certificate need not be furnished with respect to any securities
so deposited, if the fair value thereof as set forth in the related
Officer's Certificate is less than $25,000 or less than one percent of
the Bond Principal Balances of the Bonds.
(iii) Whenever any property or securities are to be
released from the lien of this Indenture, the Issuer shall also furnish
to the Indenture Trustee an Officer's Certificate certifying or stating
the opinion of each person signing such certificate as to the fair
value (within 90 days prior to such release) of the property or
securities proposed to be released and stating that in the opinion of
such person the proposed release will not impair the security under
this Indenture in contravention of the provisions hereof.
(iv) Whenever the Issuer is required to furnish to
the Indenture Trustee an Officer's Certificate certifying or stating
the opinion of any signer thereof as to the matters described in clause
(iii) above, the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the
property or securities and of all other property or securities released
from the lien of this Indenture since the commencement of the
then-current calendar year, as set forth in the certificates required
by clause (iii) above and this clause (iv), equals 10% or more of the
Bond Principal Balances of the Bonds, but such certificate need not be
furnished in the case of any release of property or securities if the
fair value thereof as set forth in the related Officer's Certificate is
less than $25,000 or less than one percent of the then Bond Principal
Balances of the Bonds.
Section 10.02 FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.
Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Seller or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Seller or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
73
Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.
Section 10.03 ACTS OF BONDHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Bondholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Bondholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee, and,
where it is hereby expressly required, to the Issuer. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Bondholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01 hereof) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 10.03
hereof.
(b) The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.
(c) The ownership of Bonds shall be proved by the Bond Registrar.
(d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Bonds shall bind the Holder of every
Bond issued upon the registration thereof or in exchange therefor or in lieu
thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Bond.
Section 10.04 NOTICES ETC., TO INDENTURE TRUSTEE ISSUER AND RATING
AGENCIES. Any request, demand, authorization, direction, notice, consent, waiver
or Act of Bondholders or other documents provided or permitted by this Indenture
shall be in writing and if such request, demand, authorization, direction,
notice, consent, waiver or act of Bondholders is to be made upon, given or
furnished to or filed with:
(i) the Indenture Trustee by any Bondholder or by the
Issuer shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Indenture Trustee at the
Corporate Trust Office. The Indenture Trustee shall promptly transmit
any notice received by it from the Bondholders to the Issuer; or
(ii) the Issuer by the Indenture Trustee or by any
Bondholder shall be sufficient for every purpose hereunder if in
writing and mailed first-class, postage prepaid
74
to the Issuer addressed to: Impac CMB Trust Series 2004-3, in care of
Wilmington Trust Company, Xxxxxx Square North, 0000 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000- 0000, Attention: Corporate Trust
Administration, or at any other address previously furnished in writing
to the Indenture Trustee by the Issuer. The Issuer shall promptly
transmit any notice received by it from the Bondholders to the
Indenture Trustee.
Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, mailed first-class
postage pre-paid, to (i) in the case of Moody's, at the following address:
Xxxxx'x Investors Service, Inc., Residential Mortgage Monitoring Department, 00
Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 and (ii) in the case of Standard &
Poor's, at the following address: Standard & Poor's, 00 Xxxxx Xxxxxx, 00xx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention of Asset Backed Surveillance
Department; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.
Section 10.05 NOTICES TO BONDHOLDERS; WAIVER. Where this Indenture
provides for notice to Bondholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Bondholder affected by such
event, at such Person's address as it appears on the Bond Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Bondholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Bondholder shall affect the sufficiency of such notice with
respect to other Bondholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given regardless of
whether such notice is in fact actually received.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Bondholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.
In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Bondholders when such notice is required to be
given pursuant to any provision of this Indenture, then any manner of giving
such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.
Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute an Event of
Default.
Section 10.06 CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.
75
The provisions of TIA xx.xx. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.
Section 10.07 EFFECT OF HEADINGS. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.
Section 10.08 SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture and the Bonds by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.
Section 10.09 SEPARABILITY. In case any provision in this Indenture or
in the Bonds shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
Section 10.10 [RESERVED].
Section 10.11 LEGAL HOLIDAYS. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Bonds or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.
Section 10.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
Section 10.13 COUNTERPARTS. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.
Section 10.14 RECORDING OF INDENTURE. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
at its expense (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Bondholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.
Section 10.15 ISSUER OBLIGATION. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Bonds or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of
76
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in
the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee in its individual capacity,
except as any such Person may have expressly agreed (it being understood that
the Indenture Trustee and the Owner Trustee have no such obligations in their
individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in
the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Article VI, VII and VIII of the Trust Agreement.
Section 10.16 NO PETITION. The Indenture Trustee, by entering into this
Indenture, and each Bondholder, by accepting a Bond, hereby covenant and agree
that they will not at any time prior to one year from the date of termination
hereof, institute against the Depositor or the Issuer, or join in any
institution against the Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Bonds, this Indenture or any
of the Basic Documents.
Section 10.17 INSPECTION. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture
Trustee, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and Independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall cause its representatives to hold in
confidence all such information except to the extent disclosure may be required
by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Indenture Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder.
77
IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
their names to be signed hereto by their respective officers thereunto duly
authorized, all as of the day and year first above written.
IMPAC CMB TRUST SERIES 2004-3, as
Issuer
Wilmington Trust Company, not
in its individual capacity but
solely as Owner Trustee
By:
-----------------------------------
Name:
Title:
DEUTSCHE BANK NATIONAL TRUST
COMPANY, as Indenture Trustee
By:
-----------------------------------
Name:
Title:
By:
-----------------------------------
Name:
Title:
STATE OF CALIFORNIA )
) ss.:
COUNTY OF ORANGE )
On this ___ day of March, 2004, before me personally appeared
____________________ to me known, who being by me duly sworn, did depose and
say, that he/she is the ____________ of the Indenture Trustee, one of the
corporations described in and which executed the above instrument; and that he
signed his name thereto by like order.
Notary Public
-----------------------------------
NOTARY PUBLIC
[NOTARIAL SEAL]
STATE OF CALIFORNIA )
) ss.:
COUNTY OF ORANGE )
On this ___ day of March, 2004, before me personally appeared
____________________ to me known, who being by me duly sworn, did depose and
say, that he/she is the ____________ of the Indenture Trustee, one of the
corporations described in and which executed the above instrument; and that he
signed his name thereto by like order.
Notary Public
-----------------------------------
NOTARY PUBLIC
[NOTARIAL SEAL]
STATE OF DELAWARE )
) ss.:
COUNTY OF NEW CASTLE )
On this 30th day of March, 2004, before me personally appeared Xxxxxxxx
X. Xxxxxxxx to me known, who being by me duly sworn, did depose and say, that
she is a Financial Services Officer of the Owner Trustee, one of the entities
described in and which executed the above instrument; and that she signed her
name thereto by like order.
Notary Public
-----------------------------------
NOTARY PUBLIC
[NOTARIAL SEAL]
EXHIBIT A-1
FORM OF CLASS [_-A BONDS
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND 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.
THIS BOND IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS BOND.
PRINCIPAL OF THIS BOND IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.
A-1-1
IMPAC CMB TRUST SERIES 2004-3
COLLATERALIZED ASSET-BACKED BONDS
Class [_-A
AGGREGATE [BOND PRINCIPAL BOND INTEREST
BALANCE][NOTIONAL AMOUNT]: RATE: [Adjustable Rate][___%]
$[ ]
INITIAL [BOND PRINCIPAL BOND NO. 1
BALANCE][NOTIONAL AMOUNT] OF THIS
BOND: $[ ]
PERCENTAGE INTEREST: 100% CUSIP NO. [ ]
Impac CMB Trust Series 2004-3 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Cede & Co. or registered
assigns, the principal sum of ($_________________) in monthly installments on
the twenty-fifth day of each month or, if such day is not a Business Day, the
next succeeding Business Day (each a "Payment Date"), commencing in April 2004
and ending on or before the Payment Date occurring in _____________ (the "Final
Scheduled Payment Date") and to pay interest on the Bond Principal Balance of
this Bond (this "Bond") outstanding from time to time as provided below.
This Bond is one of a duly authorized issue of the Issuer's
Collateralized Asset-Backed Bonds, Series 2004-3 (the "Bonds"), issued under an
Indenture dated as of March 30, 2004 (the "Indenture"), between the Issuer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Issuer, the Indenture Trustee, and the Holders of the Bonds and the terms upon
which the Bonds are to be authenticated and delivered. All terms used in this
Bond which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.
Payments of principal and interest on this Bond will be made on each
Payment Date to the Bondholder of record as of the related Record Date. The
"Bond Principal Balance" of a Bond as of any date of determination is equal to
the initial Bond Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Bond on account of principal.
The principal of, and interest on, this Bond are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Bond shall
be equal to this Xxxx's pro rata share of the aggregate payments on all Class
[_-A Bonds as described above, and shall be applied as between interest and
principal as provided in the Indenture.
A-1-2
All principal and interest accrued on the Bonds, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.
The [Group 1 Bonds and Group 2 Bonds][Group 3 Bonds] are subject to
redemption in whole, but not in part, by the Majority Certificateholder on any
Payment Date on or after the earlier of [(i) the Payment Date on which the
aggregate Stated Principal Balance of the Group 1 Loans and Group 2 Loans as of
the end of the prior Due Period is less than or equal to 25% of the aggregate
Stated Principal Balance of the Group 1 Loans and Group 2 Loans as of the
Cut-off Date and the sum of the Group 1 Original Pre-Funded Amount and Group 2
Original Pre-Funded Amount and (ii) the Payment Date occurring in April
2014.][(i) the Payment Date on which the aggregate Stated Principal Balance of
the Group 3 Loans as of the end of the prior Due Period is less than or equal to
25% of the aggregate Stated Principal Balance of the Group 3 Loans as of the
Cut-off Date and (ii) the Payment Date occurring in April 2014.].
The Issuer shall not be liable upon the indebtedness evidenced by the
Bonds except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Bonds. The assets included in the
Trust Estate will be the sole source of payments on the Class [_-A Bonds, and
each Holder hereof, by its acceptance of this Bond, agrees that (i) such Bond
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, IMH Assets Corp., Impac
Mortgage Holdings, Inc., the Master Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class [_-A Bonds pursuant to the Indenture
and the rights conveyed to the Issuer under the Indenture.
Any payment of principal or interest payable on this Bond which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Xxxx is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Bond Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Bond, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Bond delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Xxxxxx. All scheduled reductions in the principal amount of a
Bond (or one or more predecessor Bonds) effected by payments of principal made
on any Payment Date shall be binding upon all Holders of this Bond and of any
bond issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Bond. The final
payment of this Bond shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Office or agency of the Issuer
maintained by it for such purpose pursuant to Section 3.02 of the Indenture.
Subject to the foregoing provisions, each Bond delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Bond shall carry the right to unpaid principal and interest that were
carried by such other Bond.
A-1-3
If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Bonds, the Bonds may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs [prior to the payment of the entire unpaid
Bond Principal Balance of the Bonds], the amount payable to the Holder of this
Bond will be equal to the [sum of the unpaid Bond Principal Balance of the
Bonds, together with] accrued and unpaid interest thereon as described in the
Indenture. The Indenture provides that, notwithstanding the acceleration of the
maturity of the Bonds, under certain circumstances specified therein, all
amounts collected as proceeds of the Trust Estate securing the Bonds or
otherwise shall continue to be applied to payments of principal of and interest
on the Bonds as if they had not been declared due and payable.
The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.
The Holder of this Bond or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Bond with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Bond will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Bonds are rated investment grade or better and such
person agrees to treat them as indebtedness for federal income tax purposes.
Alternatively, regardless of the rating of such Bonds, such person may provide
the Indenture Trustee and the Owner Trustee with an opinion of counsel, which
opinion of counsel will not be at the expense of the Issuer, the Seller, any
Underwriter, the Owner Trustee, the Indenture Trustee, the Depositor, the Master
Servicer or any successor servicer which opines that the acquisition, holding
and transfer of such Bond or interest therein is permissible under applicable
law, will not constitute or result in a non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Depositor, the Master Servicer or any successor servicer to any obligation in
addition to those undertaken in the Indenture.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Bond may be registered on the Bond Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Bond at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Bonds
of any authorized denominations and of a like aggregate initial Bond Principal
Balance, will be issued to the designated transferee or transferees.
Prior to the due presentment for registration of transfer of this Bond,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Bond is registered as the owner
of such Bond (i) on the applicable Record Date for the purpose of making
payments and interest of such Bond, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Bond be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.
A-1-4
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Bonds under the Indenture at any
time by the Issuer and the Holders of a majority of all Bonds at the time
outstanding. The Indenture also contains provisions permitting the Holders of
Bonds representing specified percentages of the aggregate Bond Principal Balance
of the Bonds on behalf of the Holders of all the Bonds, to waive any past
Default under the Indenture and its consequences. Any such waiver by the Holder,
at the time of the giving thereof, of this Bond (or any one or more predecessor
Bonds) shall bind the Holder of every Bond issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon such Bond. The Indenture also permits the
Issuer and the Indenture Trustee to amend or waive certain terms and conditions
set forth in the Indenture without the consent of the Holders of the Bonds
issued thereunder.
Initially, the Bonds will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Bonds. The
Bonds will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Bonds
are exchangeable for a like aggregate initial Bond Principal Balance of Bonds of
different authorized denominations, as requested by the Holder surrendering
same.
Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Bond shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.
AS PROVIDED IN THE INDENTURE, THIS BOND AND THE INDENTURE CREATING THIS
BOND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.
A-1-5
IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.
Dated: March 30, 2004
IMPAC CMB TRUST SERIES 2004-3
BY: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its capacity
as Owner Trustee
By:_______________________________________
Authorized Signatory
INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class [_-A Bonds referred to in the within-mentioned
Indenture.
DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee
By:______________________________________
Authorized Signatory
A-1-6
ABBREVIATIONS
-------------
The following abbreviations, when used in the inscription on the face
of the Bond, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT -- __________ Custodian
______________________________
(Cust) (Minor)
under Uniform Gifts to Minor Act
_____________________
(State)
Additional abbreviations may also be used though not in
the above list.
A-1-7
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
--------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(Please print or typewrite name and address, including zip code, of assignee)
--------------------------------------------------------------------------------
the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints attorney to transfer said Xxxx on the books kept for registration
thereof, with full power of substitution in the premises.
Dated:
--------------------------- -------------------------------------
Signature Guaranteed by
-----------------------------------------------------
NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.
A-1-8
EXHIBIT A-2
FORM OF CLASS M-[_]-[_] BONDS
THIS BOND IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [_-A-_] BONDS [AND
CLASS M-[_]-[_] BONDS] AS DESCRIBED IN THE INDENTURE.
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND 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.
THIS BOND IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS BOND.
PRINCIPAL OF THIS BOND IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.
A-2-1
IMPAC CMB TRUST SERIES 2004-3
COLLATERALIZED ASSET-BACKED BONDS
CLASS M-[_]-[_]
AGGREGATE BOND PRINCIPAL BOND INTEREST
BALANCE: RATE: [ %]
$[ ]
INITIAL BOND PRINCIPAL BOND NO. 1
BALANCE OF THIS BOND: $[ ]
PERCENTAGE INTEREST: 100% CUSIP NO. [ ]
Impac CMB Trust Series 2004-3 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Cede & Co. or registered
assigns, the principal sum of ______________________________ ($___________) in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in April 2004 and ending on or before the Payment Date occurring in
_____________ (the "Final Scheduled Payment Date") and to pay interest on the
Bond Principal Balance of this Bond (this "Bond") outstanding from time to time
as provided below.
This Bond is one of a duly authorized issue of the Issuer's
Collateralized Asset-Backed Bonds, Series 2004-3 (the "Bonds"), issued under an
Indenture dated as of March 30, 2004 (the "Indenture"), between the Issuer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Issuer, the Indenture Trustee, and the Holders of the Bonds and the terms upon
which the Bonds are to be authenticated and delivered. All terms used in this
Bond which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.
Payments of principal and interest on this Bond will be made on each
Payment Date to the Bondholder of record as of the related Record Date. The
"Bond Principal Balance" of a Bond as of any date of determination is equal to
the initial Bond Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Bond on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Bond on all
prior Payment Dates.
The principal of, and interest on, this Bond are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Bond shall
be equal to this Bond's pro rata share of the aggregate payments on all Class
M-[_]-[_] Bonds as described above, and shall be applied as between interest and
principal as provided in the Indenture.
All principal and interest accrued on the Bonds, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.
A-2-2
The Group 1 Bonds and Group 2 Bonds are subject to redemption in whole,
but not in part, by the Majority Certificateholder on any Payment Date on or
after the earlier of (i) the Payment Date on which the aggregate Stated
Principal Balance of the Group 1 Loans and Group 2 Loans as of the end of the
prior Due Period is less than or equal to 25% of the aggregate Stated Principal
Balance of the Group 1 Loans and Group 2 Loans as of the Cut-off Date and the
sum of the Group 1 Original Pre-Funded Amount and Group 2 Original Pre-Funded
Amount and (ii) the Payment Date occurring in April 2014.
The Issuer shall not be liable upon the indebtedness evidenced by the
Bonds except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Bonds. The assets included in the
Trust Estate will be the sole source of payments on the Class M- [_]-[_] Bonds,
and each Holder hereof, by its acceptance of this Bond, agrees that (i) such
Bond will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, IMH Assets Corp., Impac
Mortgage Holdings, Inc., the Master Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class M-[_]-[_] Bonds pursuant to the
Indenture and the rights conveyed to the Issuer under the Indenture.
Any payment of principal or interest payable on this Bond which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Bond is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Bond Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Bond, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Bond delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Xxxxxx. All reductions in the principal amount of a Bond (or
one or more predecessor Bonds) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Bond and of any bond
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Bond. The final
payment of this Bond shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Office or agency of the Issuer
maintained by it for such purpose pursuant to Section 3.02 of the Indenture.
Subject to the foregoing provisions, each Bond delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Bond shall carry the right to unpaid principal and interest that were
carried by such other Bond.
If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Bonds, the Bonds may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Bond Principal Balance of the Bonds, the amount payable to the Holder of this
Bond will be equal to the sum of the unpaid Bond Principal Balance of the Bonds,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Bonds, under certain circumstances specified
A-2-3
therein, all amounts collected as proceeds of the Trust Estate securing the
Bonds or otherwise shall continue to be applied to payments of principal of and
interest on the Bonds as if they had not been declared due and payable.
The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.
The Holder of this Bond or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Bond with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Bond will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Bonds are rated investment grade or better and such
person agrees to treat them as indebtedness for federal income tax purposes.
Alternatively, regardless of the rating of such Bonds, such person may provide
the Indenture Trustee and the Owner Trustee with an opinion of counsel, which
opinion of counsel will not be at the expense of the Issuer, the Seller, any
Underwriter, the Owner Trustee, the Indenture Trustee, the Depositor, the Master
Servicer or any successor servicer which opines that the acquisition, holding
and transfer of such Bond or interest therein is permissible under applicable
law, will not constitute or result in a non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Depositor, the Master Servicer or any successor servicer to any obligation in
addition to those undertaken in the Indenture.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Bond may be registered on the Bond Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Bond at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Bonds
of any authorized denominations and of a like aggregate initial Bond Principal
Balance, will be issued to the designated transferee or transferees.
Prior to the due presentment for registration of transfer of this Bond,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Bond is registered as the owner
of such Bond (i) on the applicable Record Date for the purpose of making
payments and interest of such Bond, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Bond be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Bonds under the Indenture at any
time by the Issuer and the Holders of a majority of all Bonds at the time
outstanding. The Indenture also contains provisions permitting the Holders of
Bonds representing specified percentages of the aggregate Bond Principal Balance
of the Bonds on behalf of the Holders of all the Bonds, to waive any past
Default under the Indenture and its consequences. Any such waiver by the Holder,
at the time of the giving thereof, of this Bond (or any one or more predecessor
Bonds) shall bind the Holder of every Bond issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon such Bond. The Indenture also permits the
Issuer and the Indenture Trustee to amend or waive certain terms and conditions
set forth in the Indenture without the consent of the Holders of the Bonds
issued thereunder.
Initially, the Bonds will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Bonds. The
Bonds will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Bonds
are exchangeable for a like aggregate initial Bond Principal Balance of Bonds of
different authorized denominations, as requested by the Holder surrendering
same.
Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Bond shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.
A-2-4
AS PROVIDED IN THE INDENTURE, THIS BOND AND THE INDENTURE CREATING THIS
BOND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.
A-2-5
IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.
Dated: March 30, 2004
IMPAC CMB TRUST SERIES 2004-3
BY: WILMINGTON TRUST COMPANY, not in
its individual capacity but solely in its
capacity as Owner Trustee
By:
--------------------------------------
Authorized Signatory
INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class M-[_]-[_] Bonds referred to in the within-mentioned
Indenture.
DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee
By:
----------------------------
Authorized Signatory
A-2-6
ABBREVIATIONS
-------------
The following abbreviations, when used in the inscription on the face
of the Bond, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT -- __________ Custodian
______________________________
(Cust) (Minor)
under Uniform Gifts to Minor Act
_____________________
(State)
Additional abbreviations may also be used though not in
the above list.
A-2-7
ASSIGNMENT
----------
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Please print or typewrite name and address, including zip code, of assignee)
--------------------------------------------------------------------------------
the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Xxxx on the
books kept for registration thereof, with full power of substitution in the
premises.
Dated:
------------------------ -------------------------------------
Signature Guaranteed by
----------------------------------------------------
NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.
A-2-8
EXHIBIT A-3
FORM OF CLASS 3-[_]-[_] BONDS
THIS BOND IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS 3-A BONDS [AND CLASS
3-[_]-[_] BONDS] AS DESCRIBED IN THE INDENTURE.
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND 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.
THE HOLDER OF THIS BOND OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.
THIS BOND IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS BOND.
PRINCIPAL OF THIS BOND IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.
A-3-1
IMPAC CMB TRUST SERIES 2004-3
COLLATERALIZED ASSET-BACKED BONDS
CLASS 3-[_]-[_]
AGGREGATE BOND PRINCIPAL BOND INTEREST
BALANCE: $[ ] RATE: Adjustable Rate
INITIAL BOND PRINCIPAL BOND NO. 1
BALANCE OF THIS BOND: $[ ]
PERCENTAGE INTEREST: 100% CUSIP NO. [ ]
Impac CMB Trust Series 2004-3 (the "Issuer"), a Delaware statutory
trust, for value received, hereby promises to pay to Cede & Co. or registered
assigns, the principal sum of ______________________________ ($___________) in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in April 2004 and ending on or before the Payment Date occurring in
______________ (the "Final Scheduled Payment Date") and to pay interest on the
Bond Principal Balance of this Bond (this "Bond") outstanding from time to time
as provided below.
This Bond is one of a duly authorized issue of the Issuer's
Collateralized Asset-Backed Bonds, Series 2004-3 (the "Bonds"), issued under an
Indenture dated as of March 30, 2004 (the "Indenture"), between the Issuer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Issuer, the Indenture Trustee, and the Holders of the Bonds and the terms upon
which the Bonds are to be authenticated and delivered. All terms used in this
Bond which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.
Payments of principal and interest on this Bond will be made on each
Payment Date to the Bondholder of record as of the related Record Date. The
"Bond Principal Balance" of a Bond as of any date of determination is equal to
the initial Bond Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Bond on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Bond on all
prior Payment Dates.
The principal of, and interest on, this Bond are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Bond shall
be equal to this Bond's pro rata share of the aggregate payments on all Class
3-[_]-[_] Bonds as described above, and shall be applied as between interest and
principal as provided in the Indenture.
All principal and interest accrued on the Bonds, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.
A-3-2
The Group 3 Bonds are subject to redemption in whole, but not in part,
by the Majority Certificateholder on any Payment Date on or after the earlier of
(i) the Payment Date on which the aggregate Stated Principal Balance of the
Group 3 Loans as of the end of the prior Due Period is less than or equal to 25%
of the aggregate Stated Principal Balance of the Group 3 Loans as of the Cut-
off Date and (ii) the Payment Date occurring in April 2014.
The Issuer shall not be liable upon the indebtedness evidenced by the
Bonds except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Bonds. The assets included in the
Trust Estate will be the sole source of payments on the Class 3-[_]- [_] Bonds,
and each Holder hereof, by its acceptance of this Bond, agrees that (i) such
Bond will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, IMH Assets Corp., Impac
Mortgage Holdings, Inc., the Master Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class 3-[_]-[_] Bonds pursuant to the
Indenture and the rights conveyed to the Issuer under the Indenture.
Any payment of principal or interest payable on this Bond which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Xxxx is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Bond Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Bond, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Bond delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Xxxxxx. All scheduled reductions in the principal amount of a
Bond (or one or more predecessor Bonds) effected by payments of principal made
on any Payment Date shall be binding upon all Holders of this Bond and of any
bond issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Bond. The final
payment of this Bond shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Office or agency of the Issuer
maintained by it for such purpose pursuant to Section 3.02 of the Indenture.
Subject to the foregoing provisions, each Bond delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Bond shall carry the right to unpaid principal and interest that were
carried by such other Bond.
If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Bonds, the Bonds may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Bond Principal Balance of the Bonds, the amount payable to the Holder of this
Bond will be equal to the sum of the unpaid Bond Principal Balance of the Bonds,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Bonds, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Bonds or otherwise shall
A-3-3
continue to be applied to payments of principal of and interest on the Bonds as
if they had not been declared due and payable.
The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.
The Holder of this Bond or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Bond with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Bond will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code as a result of the Issuer, the Seller, the Depositor, the
Underwriters, the Owner Trustee, the Indenture Trustee, the Master Servicer, any
Subservicer, any other servicer, any administrator, any provider of credit
support, any owner of the Certificates, or any of their Affiliates being a
"Party in Interest" (within the meaning of ERISA) or Disqualified Person (within
the meaning of the Code) with respect to such Holder or Beneficial Owner that is
a Plan and (B) the Bonds are rated investment grade or better and such person
believes that the Bonds are properly treated as indebtedness without substantial
equity features for purposes of the DOL Regulations, and agrees to so treat the
Bonds. Alternatively, regardless of the rating of the Bonds, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuer, the Seller,
any Underwriter, the Owner Trustee, the Indenture Trustee, the Master Servicer
or any successor servicer which opines that the acquisition, holding and
transfer of such Bond or interest therein is permissible under applicable law,
will not constitute or result in a non-exempt prohibited transaction under ERISA
or Section 4975 of the Code and will not subject the Issuer, the Seller, the
Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the Master
Servicer or any successor servicer to any obligation in addition to those
undertaken in the Indenture.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Bond may be registered on the Bond Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Bond at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Bonds
of any authorized denominations and of a like aggregate initial Bond Principal
Balance, will be issued to the designated transferee or transferees.
Prior to the due presentment for registration of transfer of this Bond,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Bond is registered as the owner
of such Bond (i) on the applicable Record Date for the purpose of making
payments and interest of such Bond, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Bond be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Bonds under the Indenture at any
time by the Issuer and the Holders of a majority of all Bonds at the
A-3-4
time outstanding. The Indenture also contains provisions permitting the Holders
of Bonds representing specified percentages of the aggregate Bond Principal
Balance of the Bonds on behalf of the Holders of all the Bonds, to waive any
past Default under the Indenture and its consequences. Any such waiver by the
Holder, at the time of the giving thereof, of this Bond (or any one or more
predecessor Bonds) shall bind the Holder of every Bond issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof, whether
or not notation of such consent or waiver is made upon such Bond. The Indenture
also permits the Issuer and the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of the
Holders of the Bonds issued thereunder.
Initially, the Bonds will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Bonds. The
Bonds will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Bonds
are exchangeable for a like aggregate initial Bond Principal Balance of Bonds of
different authorized denominations, as requested by the Holder surrendering
same.
Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Bond shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.
AS PROVIDED IN THE INDENTURE, THIS BOND AND THE INDENTURE CREATING THIS
BOND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.
A-3-5
IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.
Dated: March 30, 2004
IMPAC CMB TRUST SERIES 2004-3
BY: WILMINGTON TRUST COMPANY, not in
its individual capacity but solely in its
capacity as Owner Trustee
By:
-----------------------------------------
Authorized Signatory
INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Class 3-[_]-[_] Bonds referred to in the within-mentioned
Indenture.
DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee
By:
-----------------------------------------
Authorized Signatory
A-3-6
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face
of the Bond, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as
tenants in common
UNIF GIFT MIN ACT -- __________ Custodian
______________________________
(Cust) (Minor)
under Uniform Gifts to Minor Act
_____________________
(State)
Additional abbreviations may also be used though not in
the above list.
A-3-7
ASSIGNMENT
----------
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
------------------------------------------------------------------------------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(Please print or typewrite name and address, including zip code, of assignee)
------------------------------------------------------------------------------
the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Xxxx on the
books kept for registration thereof, with full power of substitution in the
premises.
Dated:
---------------------------- --------------------------------------
Signature Guaranteed by
------------------------------------------------------
NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.
A-3-8
EXHIBIT B
MORTGAGE LOAN SCHEDULE
(Filed Manually)
B-1
EXHIBIT C
FORM OF INITIAL CERTIFICATION
, 200_
[Issuer]
[Master Servicer]
Attention: Impac CMB Trust Series 2004-3
Re: Indenture dated as of March 30, 2004, between Impac CMB Trust
Series 2004-3 and Deutsche Bank National Trust Company
------------------------------------------------------
Ladies and Gentlemen:
In accordance with Section 2.03(a) of the above-captioned
Indenture, and Section 2.1(b)(i)-(v) of the Mortgage Loan Purchase Agreement,
dated as of March 30, 2004 between Impac Mortgage Holdings, Inc. and Impac
Funding Corporation (the "MLPA"; and together with the Indenture, the
"Agreements"), the undersigned, as Indenture Trustee, hereby certifies that as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the exception report attached hereto) it
has reviewed the Mortgage File and the Mortgage Loan Schedule and has determined
that: (i) all documents required to be included in the Mortgage File are in its
possession; (ii) such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan; and (iii) based on examination by
it, and only as to such documents, the information set forth in items (iii) and
(v) of the definition or description of "Mortgage Loan Schedule" is correct.
The Indenture Trustee has made no independent examination of
any documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Agreements. The Indenture Trustee makes no
representation that any documents specified in clause (v) of Section 2.1 (b) of
the MLPA should be included in any Mortgage File. The Indenture Trustee makes no
representations as to and shall not be responsible to verify: (i) the validity,
legality, sufficiency, enforceability, due authorization, recordability or
genuineness of any of the documents contained in each Mortgage File of any of
the Mortgage Loans identified on the Mortgage Loan Schedule, (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan, or (iii) the existence of any assumption, modification, written assurance
or substitution agreement with respect to any Mortgage File if no such documents
appear in the Mortgage File delivered to the Indenture Trustee.
Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Indenture.
C-1
DEUTSCHE BANK NATIONAL
TRUST COMPANY,
as Indenture Trustee
By:
----------------------------------
Name:
Title:
C-2
EXHIBIT D
FORM OF FINAL CERTIFICATION
, 200__
[Issuer]
[Master Servicer]
Attention: Impac CMB Trust Series 2004-3
Re: Indenture, dated as of March 30, 2004, between Impac CMB Trust
Series 2004-3 and Deutsche Bank National Trust Company
--------------------------------------------------------------
Ladies and Gentlemen:
In accordance with Section 2.03(b) of the above-captioned
Indenture, and Section 2.1(b) of the Mortgage Loan Purchase Agreement, dated as
of March 30, 2004, between Impac Mortgage Holdings, Inc. (formerly known as
Imperial Credit Mortgage Holdings, Inc.) and Impac Funding Corporation (formerly
known as ICI Funding Corporation) (the "MLPA"; and together with the Indenture,
the "Agreements"), the undersigned, as Indenture Trustee, hereby certifies that
as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the exception report attached hereto) it
has received the documents set forth in Section 2.1(b) of the MLPA.
The Indenture Trustee has made no independent examination of
any documents contained in each Mortgage File beyond the review specifically
required in the Agreements. The Indenture Trustee makes no representation that
any documents specified in clause (v) of Section 2.1 (b) should be included in
any Mortgage File. The Indenture Trustee makes no representations as to and
shall not be responsible to verify: (i) the validity, legality, sufficiency,
enforceability, due authorization, recordability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) the existence of
any assumption, modification, written assurance or substitution agreement with
respect to any Mortgage File if no such documents appear in the Mortgage File
delivered to the Indenture Trustee.
D-1
Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the above-captioned Indenture.
DEUTSCHE BANK NATIONAL
TRUST COMPANY,
as Indenture Trustee
By:
--------------------------------
Name:
Title:
D-2
EXHIBIT E
DERIVATIVE CONTRACTS
(Provided Upon Request)
E-1
EXHIBIT F
SPECIAL CERTIFICATE CAP CONTRACT
(Provided Upon Request)
F-1
EXHIBIT G
FORM OF GROUP [_] SUBSEQUENT TRANSFER INSTRUMENT
Pursuant to this Group [_] Subsequent Transfer Instrument, dated
[_______________] (the "Instrument"), between IMH Assets Corp. as Seller (the
"Company"), and Deutsche Bank National Trust Company as indenture trustee of the
IMH Assets Corp., Collateralized Asset-Backed Bonds, Series 2004-3, as purchaser
(the "Indenture Trustee"), on behalf of Impac CMB Trust Series 2004-3 (the
"Issuer"), as purchaser, and pursuant to the Indenture, dated as of March 30,
2004 (the "Indenture"), between the Issuer and the Indenture Trustee, as
indenture trustee, the Company and the Indenture Trustee agree to the sale by
the Company and the purchase by the Indenture Trustee in trust, on behalf of the
Trust, of the Group [_] Subsequent Mortgage Loans on the attached Schedule 1 of
Mortgage Loans (the "Group [_] Subsequent Mortgage Loans").
Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Indenture.
Section 1. CONVEYANCE OF GROUP [_] SUBSEQUENT MORTGAGE LOANS;
ACCEPTANCE OF MORTGAGE LOANS BY THE INDENTURE
TRUSTEE.
(a) The Company does hereby sell, transfer, assign, set over
and convey to the Indenture Trustee in trust, on behalf of the Trust, without
recourse, all of its right, title and interest in and to the Group [_]
Subsequent Mortgage Loans, including all amounts due on the Group [_] Subsequent
Mortgage Loans after the related Subsequent Cut-off Date, and all items with
respect to the Group [_] Subsequent Mortgage Loans to be delivered pursuant to
Section 2.05 of the Indenture; provided, however that the Company reserves and
retains all right, title and interest in and to amounts due on the Group [_]
Subsequent Mortgage Loans on or prior to the related Subsequent Cut-off Date.
The Company, contemporaneously with the delivery of this Agreement, has
delivered or caused to be delivered to the Indenture Trustee each item set forth
in Section 2.05 of the Indenture. The transfer to the Indenture Trustee by the
Company of the Group [_] Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule shall be absolute and is intended by the Company, the Master
Servicer, the Indenture Trustee, the Bondholders to constitute and to be treated
as a sale by the Company to the Trust Fund.
(b) The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Indenture Trustee without recourse for the benefit of the Bondholders all the
right, title and interest of the Company, in, to and under the Group [_]
Subsequent Mortgage Loan Purchase Agreement, dated [_______________], between
the Company, as purchaser, and Impac Mortgage Holdings, Inc., as seller (the
"Purchase Agreement").
(c) The Indenture Trustee acknowledges receipt of, subject to
the exceptions it notes pursuant to the procedures described in Section 2.03 of
the Indenture, the documents (or certified copies thereof) referred to in
Section 2.1(b) of the Group [_] Subsequent Mortgage Loan Purchase Agreement, and
declares that it holds and will continue to hold those documents and any
G-2
amendments, replacements or supplements thereto and all other assets of the
Trust Estate as Indenture Trustee in trust for the use and benefit of all
present and future Holders of the Bonds.
(d) Additional terms of the sale are set forth on Attachment A
hereto.
Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS
PRECEDENT.
(a) The Company hereby confirms that each of the conditions
precedent and the representations and warranties set forth in Section 2.05 of
the Indenture are satisfied as of the date hereof.
(b) All terms and conditions of the Indenture are hereby
ratified and confirmed; provided, however, that in the event of any conflict,
the provisions of this Instrument shall control over the conflicting provisions
of the Indenture.
Section 3. RECORDATION OF INSTRUMENT.
To the extent permitted by applicable law, this Instrument, or
a memorandum thereof if permitted under applicable law, is subject to
recordation in all appropriate public offices for real property records in all
of 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 Bondholders' expense on direction of the related
Bondholders, but only when accompanied by an Opinion of Counsel to the effect
that such recordation materially and beneficially affects the interests of the
Bondholders or is necessary for the administration or servicing of the Group [_]
Subsequent Mortgage Loans.
Section 4. GOVERNING LAW.
This Instrument 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, without giving
effect to principles of conflicts of law.
Section 5. COUNTERPARTS.
This Instrument may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same instrument.
Section 6. SUCCESSORS AND ASSIGNS.
This Instrument shall inure to the benefit of and be binding
upon the Company and the Indenture Trustee and their respective successors and
assigns.
G-3
IMH ASSETS CORP.
By:___________________
Name:
Title:
DEUTSCHE BANK NATIONAL TRUST COMPANY, not in its individual capacity but solely
as Indenture Trustee for the Trust.
By: _______________________
Name:
Title:
G-4
APPENDIX A
DEFINITIONS
ACCRUAL PERIOD: With respect to any Payment Date and each Class of
Bonds, other than the Class 2-A Bonds, the period from the preceding Payment
Date (or in the case of the first Payment Date, from the Closing Date) through
the day preceding such Payment Date. With respect to any Payment Date and the
Class 2-A Bonds, the preceding calendar month.
ACCRUED BOND INTEREST: With respect to any Payment Date and each Class
of Bonds, interest accrued during the related Accrual Period at the
then-applicable Bond Interest Rate on the related Bond Principal Balance thereof
immediately prior to such Payment Date, less such Bonds' Unpaid Interest
Shortfall for such Payment Date, plus any Accrued Bond Interest remaining unpaid
from any prior Payment Date with interest thereon at the related Bond Interest
Rate. Accrued Bond Interest for the Bonds, other than the Class 2-A Bonds, shall
be calculated on the basis of the actual number of days in the Accrual Period
and a 360-day year. Accrued Bond Interest for the Class 2-A Bonds shall be
calculated on the basis of a 360-day year consisting of twelve 30-day months.
ADDITION NOTICE: With respect to the transfer of Group 1 Subsequent
Mortgage Loans and Group 2 Subsequent Mortgage Loans to the Trust Estate
pursuant to Section 2.05 and Section 2.06, respectively, of the Indenture, a
notice of the Depositor's designation of the applicable Group 1 Subsequent
Mortgage Loans or Group 2 Subsequent Mortgage Loans to be sold to the Trust
Estate and the aggregate Stated Principal Balance of such Group 1 Subsequent
Mortgage Loans or Group 2 Subsequent Mortgage Loans as of the Subsequent Cut-off
Date. The Addition Notice shall be given not later than three Business Days
prior to the related Group 1 or Group 2 Subsequent Transfer Date and shall be
substantially in the form attached to the Indenture as Exhibit E.
ADDITIONAL DERIVATIVE CONTRACT COUNTERPARTY PAYMENT: With respect to
any Payment Date, any termination payments to the Derivative Contract
Counterparty as a result of (i) an Event of Default (as defined in the 1992 ISDA
Master Agreement (Multicurrency-Cross Border) form (the "ISDA Master")) under a
Derivative Contract with respect to which the Derivative Contract Counterparty
is the Defaulting Party (as defined in the ISDA Master), or (ii) a Termination
Event (as defined in the ISDA Master) under a Derivative Contract in which the
Derivative Contract Counterparty is the sole Affected Party (as defined in the
ISDA Master).
ADJUSTMENT DATE: As to each Group 1 Loan and Group 3 Loan, each date
set forth in the related Mortgage Note on which an adjustment to the interest
rate on such Mortgage Loan becomes effective.
ADVANCE: As to any Mortgage Loan, any advance made by the Master
Servicer pursuant to Section 4.04 of the Servicing Agreement or by a Subservicer
in respect of delinquent Monthly Payments of principal and interest pursuant to
the related Subservicing Agreement.
AFFILIATE: With respect to any Person, any other Person controlling,
controlled by or under common control with such Person. For purposes of this
definition, "control" means the power to direct the management and policies of a
Person, directly or indirectly, whether through ownership
of voting securities, by contract or otherwise and "controlling" and
"controlled" shall have meanings correlative to the foregoing.
ALLOCATED REALIZED LOSS AMOUNT: With respect to the Underlying Class M
Bonds, Class 3-M- 1, Class 3-M-2 and Class 3-B Bonds and any Payment Date, an
amount equal to the sum of any Realized Loss allocated to such Bonds on that
Payment Date and any Allocated Realized Loss Amount for that Class remaining
unpaid from the previous Payment Date, less the amount of any Subsequent
Recoveries added to Bond Principal Balance of such Bond. With respect to each
Grantor Trust Certificate, the Allocated Realized Loss Amount for its
corresponding Underlying Class M Bonds.
APPRAISED VALUE: The appraised value of a Mortgaged Property based upon
the lesser of (i) the appraisal made at the time of the origination of the
related Mortgage Loan, or (ii) the sale price of such Mortgaged Property at such
time of origination. With respect to a Mortgage Loan, the proceeds of which were
used to refinance an existing Mortgage Loan, the appraised value of the
Mortgaged Property based upon the appraisal obtained at the time of refinancing.
ASSIGNMENT OF MORTGAGE: 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, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering Mortgages secured by Mortgaged Properties located in the same county,
if permitted by law.
AUTHORIZED NEWSPAPER: A newspaper of general circulation in the Borough
of Manhattan, The City of New York, printed in the English language and
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays.
AUTHORIZED OFFICER: With respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee in matters relating
to the Issuer and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter).
AVAILABLE FUNDS: The Group 1 Available Funds, Group 2 Available Funds
or Group 3 Available Funds, as applicable.
AVAILABLE FUNDS RATE: On any Payment Date during the Funding Period and
for the Class 1-A Bonds and the Underlying Class M-1-1, Class M-2-1, Class
M-3-1, Class M-4-1, Class M-5-1 and Class M-6-1 Bonds, the per annum rate equal
to the product of:
(i) the product of:
(1) the weighted average of
(x) the Group 1 Adjusted Net WAC Rate and
2
(y) the amount of interest earned on amounts on
deposit in the Group 1 Pre-Funding Account
from the prior Payment Date to the current
Payment Date, expressed as a percentage of
the Group 1 Pre-Funded Amount at the end of
the prior Due Period and converted to a per
annum rate,
in the case of (x), weighted on the basis of the
aggregate Stated Principal Balance of the Group 1
Mortgage Loans as of the end of the prior Due Period,
and in the case of (y), weighted on the basis of the
Group 1 Pre-Funded Amount as of the end of the
related Due Period, and
(2) a fraction equal to
(x) the sum of the aggregate Stated Principal Balance
of the Group 1 Loans and the Group 1 Pre-Funded Amount as of
the end of the prior Due Period (plus, on any Subordinated
Transfer Payment Date where the Group 1 Loans are the
Undercollateralized Loan Group, the Subordinated Transfer
Realized Loss Amount) divided by
(y) the aggregate Bond Principal Balance of the Class
1-A Bonds and the Underlying Class M-1-1, Class M-2-1, Class
M-3-1, Class M-4-1, Class M-5-1 and Class M-6-1 Bonds
immediately prior to such Payment Date, and
(ii) a fraction equal to (x) 30 divided by (y) the number of days
in the related Accrual Period.
On any Payment Date following the Funding Period, the per annum rate equal to
the product of:
(i) the product of:
(1) Group 1 Adjusted Net WAC Rate and
(2) a fraction equal to
(x) the aggregate Stated Principal Balance of the
Group 1 Loans as of the end of the prior Due Period (plus, on
any Subordinated Transfer Payment Date where the Group 1 Loans
are the Undercollateralized Loan Group, the Subordinated
Transfer Realized Loss Amount) divided by
(y) the aggregate Bond Principal Balance of the Class
1-A Bonds and the Underlying Class M-1-1, Class M-2-1, Class
M-3-1, Class M-4-1, Class M-5-1 and Class M-6-1 Bonds
immediately prior to such Payment Date, and
(ii) a fraction equal to (x) 30 divided by (y) the number of days
in the related Accrual Period.
3
On any Payment Date during the Funding Period and for the Class 2-A
Bonds and the Underlying Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2,
Class M-5-2 and Class M-6-2 Bonds, the per annum rate equal to the product of:
(i) the product of:
(1) the weighted average of
(x) the Group 2 Adjusted Net WAC Rate and
(y) the amount of interest earned on amounts on
deposit in the Group 2 Pre-Funding Account
from the prior Payment Date to the current
Payment Date, expressed as a percentage of
the Group 2 Pre-Funded Amount at the end of
the prior Due Period and converted to a per
annum rate,
in the case of (x), weighted on the basis of the
aggregate Stated Principal Balance of the Group 2
Mortgage Loans as of the end of the prior Due Period,
and in the case of (y), weighted on the basis of the
Group 2 Pre-Funded Amount as of the end of the
related Due Period, and
(2) a fraction equal to
(x) the sum of the aggregate Stated Principal Balance
of the Group 2 Loans and the Group 2 Pre-Funded Amount as of
the end of the prior Due Period (plus, on any Subordinated
Transfer Payment Date where the Group 2 Loans are the
Undercollateralized Loan Group, the Subordinated Transfer
Realized Loss Amount) divided by
(y) the aggregate Bond Principal Balance of the Class
2-A Bonds and the Underlying Class M-1-2, Class M-2-2, Class
M-3-2, Class M-4-2, Class M-5-2 and Class M-6-2 Bonds
immediately prior to such Payment Date, and
(ii) a fraction equal to (x) 30 divided by (y) the number of days
in the related Accrual Period.
On any Payment Date following the Funding Period, the per annum rate equal to
the product of:
(i) the product of:
(1) Group 2 Adjusted Net WAC Rate and
(2) a fraction equal to
(x) the aggregate Stated Principal Balance of the
Group 2 Loans as of the end of the prior Due Period (plus, on
any Subordinated Transfer Payment Date where the
4
Group 2 Loans are the Undercollateralized Loan Group, the
Subordinated Transfer Realized Loss Amount) divided by
(y) the aggregate Bond Principal Balance of the Class
2-A Bonds and the Underlying Class M-1-2, Class M-2-2, Class
M-3-2, Class M-4-2, Class M-5-2 and Class M-6-2 Bonds
immediately prior to such Payment Date, and
(ii) a fraction equal to (x) 30 divided by (y) the number of days
in the related Accrual Period.
On any Payment Date and the for Group 3 Bonds, the per annum rate equal
to the product of:
(i) the product of:
(1) the weighted average of the Net Mortgage Rates on
the Group 3 Loans included in the trust as of the end
of the prior Due Period, weighted on the basis of the
Stated Principal Balances thereof as of the end of
the prior Due Period and
(2) a fraction equal to
(x) the aggregate Stated Principal Balance
of the Group 3 Loans as of the end of the prior Due
Period divided by
(y) the aggregate Bond Principal Balance of
the Group 3 Bonds immediately prior to such Payment
Date, and
(ii) a fraction equal to (x) 30 divided by (y) the number of days in
the related Accrual Period.
BALLOON LOAN: Each of the Mortgage Loans identified in the Mortgage
Loan Schedule as having an original term to maturity that is shorter than the
related amortization term.
BALLOON PAYMENT: With respect to any Balloon Loan, the related Monthly
Payment payable on the stated maturity date of such Balloon Loan.
BANKRUPTCY CODE: The Bankruptcy Code of 1978, as amended.
BASIC DOCUMENTS: The Trust Agreement, the Certificate of Trust, the
Indenture, the Servicing Agreement, the Mortgage Loan Purchase Agreement, each
Group 1 Subsequent Mortgage Loan Purchase Agreement and Group 2 Subsequent
Mortgage Loan Purchase Agreement, the Derivative Contracts, the Grantor Trust
Agreement, the Special Certificate Cap Contract and the other documents and
certificates delivered in connection with any of the above.
BASIC PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Payment Date
and each Loan Group, the lesser of (a) the excess of (i) the related Available
Funds for such Payment Date over (ii)
5
the aggregate amount of Accrued Bond Interest for the related Bonds for such
Payment Date and (b) the excess of (i) the related Principal Remittance Amount
for such Payment Date over (ii) the related Overcollateralization Release
Amount, if any, for such Payment Date.
BASIS RISK SHORTFALL: With respect to any Class of Group 1 Bonds and
Group 2 Bonds, other than the Class 2-A Bonds, on each Payment Date where clause
(iii) of the definition of "Bond Interest Rate" is less than clauses (a)(i) or
(ii) of the definition of "Bond Interest Rate", the excess, if any, of (x) the
aggregate Accrued Bond Interest thereon for such Payment Date calculated
pursuant to the lesser of clause (i) or (ii) of the definition of Bond Interest
Rate over (y) interest accrued on the related Mortgage Loans at the related
Available Funds Rate.
BASIS RISK SHORTFALL CARRY-FORWARD AMOUNT: With respect to each Class
of Group 1 Bonds and Group 2 Bonds, other than the Class 2-A Bonds, and any
Payment Date, as determined separately for each such Class of Bonds, an amount
equal to the aggregate amount of Basis Risk Shortfall for such Bonds on such
Payment Date, plus any unpaid Basis Risk Shortfall for such Class of Bonds from
prior Payment Dates, plus interest thereon at the Bond Interest Rate for such
Payment Date, to the extent previously unreimbursed by related Net Monthly
Excess Cashflow or the related Derivative Contracts.
BENEFICIAL OWNER: With respect to any Bond, the Person who is the
beneficial owner of such Xxxx as reflected on the books of the Depository or on
the books of a Person maintaining an account with such Depository (directly as a
Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).
BOND: A Group 1 Bond, Group 2 Bond or Group 3 Bond.
BOND INTEREST RATE: With respect to each Payment Date and each Class of
Bonds, other than the Class 2-A Bonds, a floating rate equal to the least of (i)
One-Month LIBOR plus the related Bond Margin, (ii) the Maximum Bond Rate and
(iii) the related Available Funds Rate with respect to such Payment Date. With
respect to the Class 2-A Bonds, the lesser of (A) (x) on any Payment before the
Step-Up Date, 3.579% per annum and (y) on any Payment Date on and after the
Step-Up Date, 4.079% per annum, and (B) the related Available Funds Rate.
BOND MARGIN: With respect to the Class 1-A Bonds, on any Payment Date
prior to the related Step-Up Date, 0.250% per annum, and on any Payment Date on
and after the related Step-Up Date, 0.500% per annum. With respect to the Class
3-A Bonds, on any Payment Date prior to the related Step-Up Date, 0.320% per
annum, and on any Payment Date on and after the related Step-Up Date, 0.640% per
annum. With respect to the Class 3-M-1 Bonds, on any Payment Date prior to the
related Step-Up Date, 0.550% per annum, and on any Payment Date on and after the
related Step-Up Date, 0.825% per annum. With respect to the Class 3-M-2 Bonds,
on any Payment Date prior to the related Step-Up Date, 1.150% per annum, and on
any Payment Date on and after the related Step-Up Date, 1.725% per annum. With
respect to the Class 3-B Bonds, on any Payment Date prior to the related Step-Up
Date, 1.850% per annum, and on any Payment Date on and after the related Step-Up
Date, 2.775% per annum. With respect to the Class M-1-1 Bonds and Class M-1-2
Bonds, on any Payment Date prior to the related Step-Up Date, 0.470% per annum,
and on any Payment Date on and after the related Step-Up Date, 0.705% per annum.
With respect to the Class M-2-1 Bonds and Class M-2- 2 Bonds, on any Payment
Date prior to the related Step-Up Date, 0.520% per annum, and on any Payment
Date on and after the related Step-Up Date, 0.780% per annum. With respect to
the Class M-3-1 Bonds and Class M-3-2 Bonds, on any Payment Date prior to the
related Step-Up Date, 0.570% per annum, and on any Payment Date on and after the
related Step-Up Date, 0.855% per annum. With respect to the Class M-4-1 Bonds
and Class M-4-2 Bonds, on any Payment Date prior to the related Step-Up Date,
0.900% per annum, and on any Payment Date on and after the related Step-Up Date,
1.350% per annum. With respect to the Class M-5-1 Bonds and Class M-5-2 Bonds,
on any Payment Date prior to the related Step-Up Date, 1.000% per annum, and on
any Payment Date on and after the related Step-Up Date, 1.500% per annum. With
respect to the Class M-6-1 Bonds and Class M-6-2 Bonds, on any Payment Date
prior to the related Step-Up Date, 1.250% per annum, and on any Payment Date on
and after the related Step-Up Date, 1.875% per annum.
BOND OWNER: The Beneficial Owner of a Bond.
BOND PRINCIPAL BALANCE: With respect to any Bond as of any date of
determination, the initial Bond Principal Balance as stated on the face thereof,
minus all amounts distributed in respect of principal with respect to such Bond
and, in the case of any Underlying Class M Bond, Class 3-M-1, Class 3-M-2 or
Class 3-B Bond, the aggregate amount of any reductions in the Bond Principal
Balance thereof deemed to have occurred in connection with allocations of
Realized Losses on all prior Payment Dates; provided that, the Bond Principal
Balance of any Class of Bonds, other than the Class 1-A, Class 2-A or Class 3-A
Bonds, with the highest payment priority to which Realized Losses have been
allocated shall be increased by the amount of any Subsequent Recoveries on the
related Mortgage Loans not previously allocated, but not by more than the amount
of Realized Losses previously allocated to reduce the Bond Principal Balance of
that Class.
BOND REGISTER: The register maintained by the Bond Registrar in which
the Bond Registrar shall provide for the registration of Bonds and of transfers
and exchanges of Bonds.
BOND REGISTRAR: The Indenture Trustee, in its capacity as Bond
Registrar, or any successor to the Indenture Trustee in such capacity.
BONDHOLDER OR HOLDER: The Person in whose name a Bond is registered in
the Bond Register, except that, any Bond registered in the name of the
Depositor, the Issuer, the Indenture Trustee, the Seller or the Master Servicer
or any Affiliate of any of them shall be deemed not to be a holder or holders,
nor shall any so owned be considered outstanding, for purposes of giving any
request, demand, authorization, direction, notice, consent or waiver under the
Indenture or the Trust Agreement; provided that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Bonds that a
Responsible Officer of the Indenture Trustee or the Owner Trustee actually knows
to be so owned shall be so disregarded. Owners of Bonds that have been pledged
in good faith may be regarded as Holders if the pledgee establishes to the
satisfaction of the Indenture Trustee or the Owner Trustee the pledgee's right
so to act with respect to such Bonds and that the pledgee is not the Issuer, any
other obligor upon the Bonds or any Affiliate of any of the foregoing Persons.
Any bonds on which payments are made under the Bond Insurance Policy shall be
deemed Outstanding until the Bond Insurer has been reimbursed with respect
thereto and the Bond Insurer shall be deemed the Bondholder thereof to the
extent of such unreimbursed payment.
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BOOK-ENTRY BONDS: Beneficial interests in the Bonds, ownership and
transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.
BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in the City of New York, Delaware or
California or in the city in which the corporate trust offices of the Indenture
Trustee or the principal office of the Bond Insurer are located, are required or
authorized by law to be closed.
CASH LIQUIDATION: As to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition occurred, a determination by the
Master Servicer evidenced in a certificate of a Servicing Officer that it has
received all Insurance Proceeds, Liquidation Proceeds and other payments or cash
recoveries which the Master Servicer reasonably and in good faith expects to be
finally recoverable with respect to such Mortgage Loan.
CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts created and
maintained pursuant to Section 3.10(c) of the Trust Agreement. The Certificate
Distribution Account shall be an Eligible Account.
CERTIFICATE INTEREST RATE: With respect to the Class M-1 Certificates,
the weighted average of the Bond Interest Rates of the Class M-1-1 Bonds and the
Class M-1-2 Bonds, weighted on the basis of the Bond Principal Balances thereof
as of the end of the prior Due Period. With respect to the Class M-2
Certificates, the weighted average of the Bond Interest Rates of the Class M-2-1
Bonds and the Class M-2-2 Bonds, weighted on the basis of the Bond Principal
Balances thereof as of the end of the prior Due Period. With respect to the
Class M-3 Certificates, the weighted average of the Bond Interest Rates of the
Class M-3-1 Bonds and the Class M-3-2 Bonds, weighted on the basis of the Bond
Principal Balances thereof as of the end of the prior Due Period. With respect
to the Class M-4 Certificates, the weighted average of the Bond Interest Rates
of the Class M-4-1 Bonds and the Class M-4-2 Bonds, weighted on the basis of the
Bond Principal Balances thereof as of the end of the prior Due Period. With
respect to the Class M-5 Certificates, the weighted average of the Bond Interest
Rates of the Class M-5-1 Bonds and the Class M-5-2 Bonds, weighted on the basis
of the Bond Principal Balances thereof as of the end of the prior Due Period.
With respect to the Class M-6 Certificates, the weighted average of the Bond
Interest Rates of the Class M-6-1 Bonds and the Class M-6-2 Bonds, weighted on
the basis of the Bond Principal Balances thereof as of the end of the prior Due
Period.
CERTIFICATE PAYING AGENT: The meaning specified in Section 3.10 of the
Trust Agreement.
CERTIFICATE PERCENTAGE INTEREST: With respect to each Certificate, the
Certificate Percentage Interest stated on the face thereof.
CERTIFICATE PRINCIPAL BALANCE: With respect to Class M-1 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M-1-1 Bonds and Class M-1-2 Bonds. With respect to Class M-2 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M-2-1 Bonds and Class M-2-2 Bonds. With respect to Class M-3 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M- 3-1 Bonds and Class M-3-2 Bonds. With respect to Class M-4 Certificates
as of any date of
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determination, the sum of the Bond Principal Balances of the Class M-4-1 Bonds
and Class M-4-2 Bonds. With respect to Class M-5 Certificates as of any date of
determination, the sum of the Bond Principal Balances of the Class M-5-1 Bonds
and Class M-5-2 Bonds. With respect to Class M-6 Certificates as of any date of
determination, the sum of the Bond Principal Balances of the Class M- 6-1 Bonds
and Class M-6-2 Bonds.
CERTIFICATE REGISTER: The register maintained by the Certificate
Registrar in which the Certificate Registrar shall provide for the registration
of Certificates and of transfers and exchanges of Certificates.
CERTIFICATE REGISTRAR: Initially, the Indenture Trustee, in its
capacity as Certificate Registrar, or any successor to the Indenture Trustee in
such capacity.
CERTIFICATE OF TRUST: The Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.
CERTIFICATES OR OWNER TRUST CERTIFICATES: The Impac CMB Trust Series
2004-3 Owner Trust Certificates, Series 2004-3, evidencing the beneficial
ownership interest in the Issuer and executed by the Owner Trustee in
substantially the form set forth in Exhibit A to the Trust Agreement.
CERTIFICATEHOLDER OR HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register. Owners of Certificates that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Indenture Trustee or the Owner Trustee, as the case may
be, the pledgee's right so to act with respect to such Certificates and that the
pledgee is not the Issuer, any other obligor upon the Certificates or any
Affiliate of any of the foregoing Persons.
CLASS: Any of the Group 1, Group 2 or Group 3 Bonds.
CLASS 1-A DERIVATIVE CONTRACTS: The six derivative contracts between
the Seller and the Derivative Contract Counterparty for the benefit of the Class
1-A Bonds and the Owner Trust Certificates.
CLASS 1-A NET DERIVATIVE CONTRACT PAYMENT AMOUNT: With respect to any
Payment Date, the amount equal to the excess, if any, of (a) the aggregate
amount payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the Class 1-A Derivative Contracts, over (b) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty under the Class 1-A Derivative Contracts.
CLASS 2-A NET WAC CAP SHORTFALL: With respect to the Class 2-A Bonds
and any Payment Date on which the related Available Funds Rate is used to
determine the Bond Interest Rate of the Class 2-A Bonds, an amount equal to the
excess of (x) Accrued Bond Interest for the Class 2-A Bonds calculated at a rate
equal to (x) on any Payment before the Step-Up Date, 3.579% per annum and (y) on
any Payment Date on and after the Step-Up Date, 4.079% per annum over (y)
Accrued Bond Interest for the Class 2-A Bonds calculated using the related
Available Funds Rate.
8
CLASS 2-A NET WAC CAP SHORTFALL CARRY-FORWARD AMOUNT: With respect to
the Class 2-A Bonds and any Payment Date, an amount equal to the aggregate
amount of Class 2-A Net WAC Cap Shortfall for the Class 2-A Bonds on that
Payment Date, plus any unpaid Class 2-A Net WAC Cap Shortfall from prior Payment
Dates, plus interest thereon to the extent previously unreimbursed by Net
Monthly Excess Cashflow, at a rate equal to the related Bond Interest Rate.
CLASS A BONDS: The Class 1-A, Class 2-A and Class 3-A Bonds in the form
attached as Exhibit A-1 to the Indenture.
CLASS M DERIVATIVE CONTRACTS: The two derivative contracts between the
Seller and the Derivative Contract Counterparty for the benefit of the
Underlying Class M-1-1, Class M-1-2, Class M-2-1, Class M-2-2, Class M-3-1,
Class M-3-2, Class M-4-1, Class M-4-2, Class M-5-1, Class M-5- 2, Class M-6-1 or
Class M-6-2 Bonds and the Owner Trust Certificates.
CLASS M NET DERIVATIVE CONTRACT PAYMENT AMOUNT: With respect to any
Payment Date, the amount equal to the excess, if any, of (a) the aggregate
amount payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the Class M Derivative Contracts, over (b) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty under the Class M Derivative Contracts.
CLOSING DATE: March 30, 2004.
CODE: The Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.
COLLATERAL: The meaning specified in the Granting Clause of the
Indenture.
COLLECTION ACCOUNT: The account or accounts created and maintained
pursuant to Section 3.06(d) of the Servicing Agreement. The Collection Account
shall be an Eligible Account.
COLLECTION PERIOD: With respect to each Payment Date, the calendar
month immediately preceding the month in which such Payment Date occurs.
COMMISSION: The Securities and Exchange Commission.
COMPANY: IMH Assets Corp., a California corporation, or its successor
in interest.
COMPENSATING INTEREST: With respect to any Payment Date as determined
separately for each Loan Group, the amount of any Prepayment Interest Shortfalls
resulting from prepayments in full during the preceding calendar month on the
related Mortgage Loans, but only to the extent such Prepayment Interest
Shortfalls do not exceed an amount equal to the lesser of (a) one-twelfth of
0.125% of the aggregate Stated Principal Balance of the related Mortgage Loans
immediately preceding such Payment Date and (b) the sum of the Master Servicing
Fee and Subservicing Fee for such Payment Date for the related Mortgage Loans.
9
CORPORATE TRUST OFFICE: With respect to the Indenture Trustee,
Certificate Registrar, Certificate Paying Agent and Paying Agent, the principal
corporate trust office of the Indenture Trustee and Bond Registrar at which at
any particular time its corporate trust business shall be administered, which
office at the date of the execution of this instrument is located at 0000 Xxxx
Xx. Xxxxxx Xxxxx, Xxxxx Xxx, Xxxxxxxxxx 00000, Attention: IM0403. With respect
to the Owner Trustee, the principal corporate trust office of the Owner Trustee
at which at any particular time its corporate trust business shall be
administered, which office at the date of the execution of this Trust Agreement
is located at Wilmington Trust Company, Xxxxxx Square North, 0000 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000, Attention: Impac CMB Trust Series 2004-3
(IM0403).
CUMULATIVE LOSSES: As to any Payment Date and the Mortgage Loans, the
cumulative aggregate amount of Realized Losses on the Mortgage Loans from the
Cut-off Date through the end of the calendar month immediately preceding such
Payment Date.
CUT-OFF DATE: With respect to the Initial Mortgage Loans, March 1,
2004, and with respect to the Group 1 and Group 2 Subsequent Mortgage Loans, the
applicable Subsequent Cut-off Date.
CUT-OFF DATE BALANCE: The aggregate Stated Principal Balance of the
Initial Mortgage Loans as of the Cut-off Date.
CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage Loan, the
unpaid principal balance thereof as of the Cut-off Date after applying the
principal portion of Monthly Payments due on or before such date, whether or not
received, and without regard to any payments due after such date.
DEBT SERVICE COVERAGE RATIO: With respect to any multifamily loan at
any given time, the ratio of (i) the net cashflow of the related mortgaged
property for a twelve-month period to (ii) the annualized scheduled payments on
the Mortgage Loan.
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
constituting a Deficient Valuation or any reduction that results in a permanent
forgiveness of principal.
DEFAULT: Any occurrence which is or with notice or the lapse of time or
both would become an Event of Default.
DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding indebtedness under the Mortgage Loan, or any reduction
in the amount of principal to be paid in connection with any scheduled Monthly
Payment that constitutes a permanent forgiveness of principal, which valuation
or reduction results from a proceeding under the Bankruptcy Code.
DEFINITIVE BONDS: The meaning specified in Section 4.06 of the
Indenture.
10
DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be replaced with
an Eligible Substitute Mortgage Loan.
DEPOSITOR: IMH Assets Corp., a California corporation, or its successor
in interest.
DEPOSITORY OR DEPOSITORY AGENCY: The Depository Trust Company or a
successor appointed by the Indenture Trustee. Any successor to the Depository
shall be an organization registered as a "clearing agency" pursuant to Section
17A of the Exchange Act and the regulations of the Securities and Exchange
Commission thereunder.
DEPOSITORY PARTICIPANT: A Person for whom, from time to time, the
Depository effects book- entry transfers and pledges of securities deposited
with the Depository.
DERIVATIVE CONTRACTS: The Class 1-A Derivative Contracts, Class M
Derivative Contracts or Group 3 Derivative Contracts, as applicable.
DERIVATIVE CONTRACT COUNTERPARTY: Bear Xxxxxxx Financial Products Inc.
DETERMINATION DATE: With respect to any Payment Date, the 15th of the
related month, or if the 15th day of such month is not a Business Day, the
immediately preceding Business Day.
DUE DATE: With respect to each Mortgage Loan, the day of the month on
which each scheduled Monthly Payment is due.
DUE PERIOD: With respect to any Payment Date and the Mortgage Loans,
the period commencing on the second day of the month immediately preceding the
month of such Payment Date (or, with respect to the first Due Period, the day
following the Cut-off Date) and ending on the first day of the month of such
Payment Date.
ELIGIBLE ACCOUNT: An account that is any of the following: (i) a
segregated account maintained with a federal or state chartered depository
institution (A) the short-term obligations of which are rated A-1+ or better by
Standard & Poor's and P-1 by Xxxxx'x at the time of any deposit therein or (B)
fully insured to the limits established by the FDIC, PROVIDED that any deposits
not so insured shall, to the extent acceptable to the Bond Insurer and each
Rating Agency, as evidenced in writing, be maintained such that (as evidenced by
an Opinion of Counsel delivered to the Indenture Trustee, the Bond Insurer and
each Rating Agency) the Indenture Trustee has a claim with respect to the funds
in such account or a perfected first security interest against any collateral
(which shall be limited to Eligible Investments) securing such funds that is
superior to claims of any other depositors or creditors of the depository
institution with which such account is maintained, (ii) a segregated trust
account or accounts maintained with a federal or state chartered depository
institution or trust company subject to regulations regarding fiduciary funds on
deposit similar to Title 12 of the Code of Federal Regulations Section 9.10(b),
which, in either case, has corporate trust powers, acting in its fiduciary
capacity, or (iii) in the case of the Collection Account or Servicing Account,
either (A) a trust account or accounts maintained at the corporate trust
department of the Indenture Trustee or (B) an account or accounts maintained at
the corporate trust department of the Indenture Trustee or the Subservicer (or
an affiliate thereof), as long as their short term debt
11
obligations are rated F-1 by Fitch Ratings, P-1 by Xxxxx'x and A-1 by Standard &
Poor's or better and their long term debt obligations are rated A by Fitch
Ratings, A2 by Xxxxx'x and A by Standard & Poor's or better, or (iv) an account
or accounts of a depository institution acceptable to each Rating Agency as
evidenced in writing by each Rating Agency that use of any such account as the
Collection Account or the Payment Account will not reduce the rating assigned to
any of the Securities by such Rating Agency below investment grade without
taking into account the Bond Insurance Policy and acceptable to the Bond Insurer
as evidenced in writing.
ELIGIBLE INVESTMENTS: One or more of the following:
(i) obligations of or guaranteed as to principal and interest
by the United States or any agency or instrumentality thereof when such
obligations are backed by the full faith and credit of the United
States;
(ii) repurchase agreements on obligations specified in clause
(i) maturing not more than one month from the date of acquisition
thereof, provided that the unsecured obligations of the party agreeing
to repurchase such obligations are at the time rated by each Rating
Agency in its highest short-term rating available;
(iii) federal funds, certificates of deposit, demand deposits,
time deposits and 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 of any U.S. depository institution or trust
company incorporated under the laws of the United States or any state
thereof or of any domestic branch of a foreign depository institution
or trust company; provided that the debt obligations of such depository
institution or trust company (or, if the only Rating Agency is Standard
& Poor's, in the case of the principal depository institution in a
depository institution holding company, debt obligations of the
depository institution holding company) at the date of acquisition
thereof have been rated by each Rating Agency in its highest short-term
rating available; and provided further that, if the only Rating Agency
is Standard & Poor's and if the depository or trust company is a
principal subsidiary of a bank holding company and the debt obligations
of such subsidiary are not separately rated, the applicable rating
shall be that of the bank holding company; and, provided further that,
if the original maturity of such short-term obligations of a domestic
branch of a foreign depository institution or trust company shall
exceed 30 days, the short-term rating of such institution shall be A-1+
in the case of Standard & Poor's if Standard & Poor's is the Rating
Agency;
(iv) commercial paper (having original maturities of not more
than 365 days) of any corporation incorporated under the laws of the
United States or any state thereof which on the date of acquisition has
been rated by Xxxxx'x and Standard & Poor's in their highest short-term
ratings available; provided that such commercial paper shall have a
remaining maturity of not more than 30 days;
(v) a money market fund or a qualified investment fund rated
by Xxxxx'x in its highest long-term ratings available and rated AAAm or
AAAm-G by Standard & Poor's,
12
including any such funds for which Deutsche Bank National Trust Company
or any affiliate thereof serves as an investment advisor, manager,
administrator, shareholder, servicing agent, and/or custodian or
sub-custodian; and
(vi) other obligations or securities that are acceptable to
each Rating Agency as a Permitted Investment hereunder and will not
reduce the rating assigned to any Class of Bonds (without taking the
Bond Insurance Policy into account) by such Rating Agency below the
lower of the then-current rating or the rating assigned to such Bonds
as of the Closing Date by such Rating Agency, as evidenced in writing;
and
(vii) any investment approved in writing by each of the Rating
Agencies.
The Indenture Trustee may purchase from or sell to itself or an affiliate, as
principal or agent, the Eligible Investments listed above.
PROVIDED, HOWEVER, that no instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.
ELIGIBLE SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the
Seller for a Deleted Mortgage Loan which must, on the date of such substitution,
as confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the outstanding principal balance of the Deleted Mortgage Loan (the amount of
any shortfall to be deposited by the Seller in the Collection Account in the
month of substitution); (ii) comply with each non-statistical representation and
warranty set forth in Section 3.1(b) of the Mortgage Loan Purchase Agreement as
of the date of substitution; (iii) have a Mortgage Rate no lower than and not
more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
Loan as of the date of substitution; (iv) have a Loan-to- Value Ratio at the
time of substitution no higher than that of the Deleted Mortgage Loan at the
time of substitution; (v) have a remaining term to stated maturity not greater
than (and not more than one year less than) that of the Deleted Mortgage Loan;
(vi) not be 30 days or more delinquent; (vii) be an adjustable-rate first lien
mortgage loan, if being substituted for a Group 1 Loan; and (viii) be a
fixed-rate first lien mortgage loan, if being substituted for a Group 2 Loan.
ERISA: The Employee Retirement Income Security Act of 1974, as amended.
EVENT OF DEFAULT: With respect to the Indenture, any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
13
(i) a failure by the Issuer to pay (a) Accrued Bond Interest
on any Class of Bonds or the Principal Distribution Amount with respect
to a Payment Date on such Payment Date or (b) the Unpaid Interest
Shortfall with respect to any Class of Bonds, but only, with respect to
clause (b), to the extent funds are available to make such payment as
provided in the Indenture; or
(ii) the failure by the Issuer on the Final Scheduled Payment
Date to reduce the Bond Principal Balance of any of the Bonds to zero;
or
(iii) there occurs a default in the observance or performance
of any covenant or agreement of the Issuer made in the Indenture, or
any representation or warranty of the Issuer made in the Indenture or
in any certificate or other writing delivered pursuant hereto or in
connection herewith proving to have been incorrect in any material
respect as of the time when the same shall have been made, and such
default shall continue or not be cured, or the circumstance or
condition in respect of which such representation or warranty was
incorrect shall not have been eliminated or otherwise cured, for a
period of 30 days after there shall have been given, by registered or
certified mail, to the Issuer by the Indenture Trustee or to the Issuer
and the Indenture Trustee by the Bond Insurer, or if a Bond Insurer
Default exists, the Holders of at least 25% of the aggregate Bond
Principal Balance of the Outstanding Bonds, a written notice specifying
such default or incorrect representation or warranty and requiring it
to be remedied and stating that such notice is a notice of default
hereunder; or
(iv) there occurs the filing of a decree or order for relief
by a court having jurisdiction in the premises in respect of the Issuer
or any substantial part of the Trust Estate in an involuntary case
under any applicable federal or state bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of the Trust Estate,
or ordering the winding-up or liquidation of the Issuer's affairs, and
such decree or order shall remain unstayed and in effect for a period
of 60 consecutive days; or
(v) there occurs the commencement by the Issuer of a voluntary
case under any applicable federal or state bankruptcy, insolvency or
other similar law now or hereafter in effect, or the consent by the
Issuer to the entry of an order for relief in an involuntary case under
any such law, or the consent by the Issuer to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer or for any substantial
part of the assets of the Trust Estate, or the making by the Issuer of
any general assignment for the benefit of creditors, or the failure by
the Issuer generally to pay its debts as such debts become due, or the
taking of any action by the Issuer in furtherance of any of the
foregoing.
EVENT OF SERVICER TERMINATION: With respect to the Servicing Agreement,
a Servicing Default as defined in Section 6.01 of the Servicing Agreement.
EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.
14
EXPENSE FEE RATE: With respect to each Mortgage Loan, the sum of the
Master Servicing Fee Rate, the applicable Subservicing Fee Rate, the Indenture
Trustee's Fee Rate, the Owner Trustee's Fee Rate, the Radian PMI Rate, if such
Mortgage Loan is a Radian PMI Insured Loan, and the related Net Derivative Fee
Rate.
EXPENSES: The meaning specified in Section 7.02 of the Trust Agreement.
XXXXXX XXX: Xxxxxx Xxx (formerly, the Federal National Mortgage
Association), or any successor thereto.
FDIC: The Federal Deposit Insurance Corporation or any successor
thereto.
FINAL CERTIFICATION: The final certification delivered by the Indenture
Trustee pursuant to Section 2.03(b) of the Indenture in the form attached
thereto as Exhibit D.
FINAL SCHEDULED PAYMENT DATE: With respect to each Class of (1) Grantor
Trust Certificates and Bonds, other than the Group 3 Bonds, the Payment Date in
June 2034, and (2) Group 3 Bonds, the Payment Date in March 2034.
FITCH RATINGS: Fitch, Inc., or its successor in interest.
FORECLOSURE PROFIT: With respect to a Liquidated Mortgage Loan, the
amount, if any, by which (i) the aggregate of its Net Liquidation Proceeds
exceeds (ii) the related Stated Principal Balance (plus accrued and unpaid
interest thereon at the applicable Mortgage Rate from the date interest was last
paid through the date of receipt of the final Liquidation Proceeds) of such
Liquidated Mortgage Loan immediately prior to the final recovery of its
Liquidation Proceeds.
FREDDIE MAC: Freddie Mac (formerly, the Federal Home Loan Mortgage
Corporation), or any successor thereto.
FUNDING PERIOD: With respect to Loan Group 1, the period from the
Closing Date until the earlier of (i) the date on which the amount on deposit in
the Group 1 Pre-Funding Account is reduced to less than $10,000 or (ii) April
30, 2004. With respect to Loan Group 2, the period from the Closing Date until
the earlier of (i) the date on which the amount on deposit in the Group 2
Pre-Funding Account is reduced to less than $10,000 or (ii) April 30, 2004.
GRANT: Pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create, and xxxxx x xxxx upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to the
Indenture. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such collateral or other agreement or instrument and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise, and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.
15
GRANTOR TRUST AGREEMENT: The Grantor Trust Agreement dated as of March
30, 2004, between the Company and the Grantor Trustee.
GRANTOR TRUSTEE: Deutsche Bank National Trust Company, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Grantor Trust Agreement.
GRANTOR TRUST CERTIFICATE: Any Class M-1, Class M-2, Class M-3, Class
M-4, Class M-5 or Class M-6 Certificate.
GROSS MARGIN: With respect to any Group 1 Loan, the percentage set
forth as the "Gross Margin" for such Mortgage Loan on the Mortgage Loan
Schedule, as adjusted from time to time in accordance with the terms of the
Servicing Agreement.
GROUP 1 ADJUSTED NET WAC RATE: On any Payment Date which is not a
Subordinated Transfer Payment Date, or which is a Subordinated Transfer Payment
Date but the Group 1 Loans are an Overcollateralized Loan Group, the Group 1 Net
WAC Rate. On any Subordinated Transfer Payment Date, if the Group 1 Loans are an
Undercollateralized Loan Group, the weighted average of the Group 1 Net WAC Rate
and the Group 2 Net WAC Rate, weighted on the basis of the aggregate Stated
Principal Balance of the Group 1 Loans as of the end of the prior Due Period,
and the Subordinated Transfer Realized Loss Amount, respectively.
GROUP 1 AVAILABLE FUNDS: With respect to any Payment Date, the sum of
the following, in each case with respect to the Group 1 Loans:
(i) each previously undistributed Monthly Payment due after
the Cut-off Date received on or prior to the related Determination Date
or advanced prior to such Payment Date (other than Monthly Payments due
after the related Due Period, which shall be treated as if received
during the Due Period they were due and other than Monthly Payments
with respect to which the Master Servicer has made an unreimbursed
Advance) on each outstanding Group 1 Loan (less the related Master
Servicing Fees, any Subservicing Fees under any Subservicing Agreement
and any fees or penalties retained by the Master Servicer or any
Subservicer, the fees of the Owner Trustee and the Indenture Trustee
and any amounts in respect of the premium payable to Radian under the
Radian Lender-Paid PMI Policies);
(ii) all proceeds of any Group 1 Loan repurchased during the
related Prepayment Period (or deemed to have been so repurchased in
accordance with the Servicing Agreement) pursuant to the Servicing
Agreement and the amount of any shortfall deposited in the Collection
Account in connection with the substitution of a Deleted Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement, during the related
Prepayment Period;
(iii) all other unscheduled collections (including, without
limitation, Principal Prepayments, Insurance Proceeds, Liquidation
Proceeds and REO Proceeds) received during the related Prepayment
Period to the extent applied by the Master Servicer as recoveries of
principal or interest of the related Group 1 Loan pursuant to the
Servicing Agreement; and
16
(iv) any (i) Compensating Interest payments and (ii)
Foreclosure Profits, to the extent not payable to the
Subservicers;
(v) at the end of the Funding Period, any excess amounts
transferred from the Group 1 Pre-Funding Account; and
(vi) interest earned on amounts on deposit in the Group 1
Pre-Funding Account;
MINUS
(v) expenses incurred by and reimbursable to the Master
Servicer or the Depositor pursuant to the Servicing Agreement or
otherwise, or in connection with enforcing any repurchase, substitution
or indemnification obligation of the Seller (other than an Affiliate of
the Depositor) in respect of a Group 1 Loan;
(vi) amounts expended by the Master Servicer (a) pursuant to
the Servicing Agreement in good faith in connection with the
restoration of property related to a Group 1 Loan damaged by an
Uninsured Cause, and (b) in connection with the liquidation of a
Mortgage Loan or disposition of an REO Property related to a Group 1
Loan to the extent not otherwise reimbursed to the Master Servicer
pursuant to the Servicing Agreement;
(vii) if the Bonds have been declared due and payable
following an Event of Default on such Payment Date, any amounts owed to
the Indenture Trustee by the Issuer pursuant to Section 6.07 of the
Indenture;
(viii) the related Net Derivative Fee; and
(ix) any other amounts withdrawn from the Collection Account
by the Master Servicer pursuant to Section 3.07(a)(ii) through (xv) of
the Servicing Agreement, not described above in clauses (v) through
(viii) above;
provided, however, that on any Subordinated Transfer Payment Date, the Group 1
Available Funds shall be increased (if it is the Undercollateralized Loan Group)
or reduced (if it is the Overcollateralized Loan Group), by the Subordinated
Payment Transfer Fraction of the Available Funds for the Overcollateralized Loan
Group.
GROUP 1 BOND: A Class 1-A, Class 2-A, Class M-1-1, Class M-2-1, Class
M-3-1, Class M-4- 1, Class M-5-1 or Class M-6-1 Bond.
GROUP 1 CUT-OFF DATE BALANCE: $870,001,635.79.
GROUP 1 LOAN: A Mortgage Loan in Loan Group 1.
GROUP 1 NET WAC RATE: The weighted average of the Net Mortgage Rates on
the Group 1 Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period.
17
GROUP 1 ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group 1
Pre-Funding Account on the Closing Date by the Indenture Trustee.
GROUP 1 OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any
Payment Date, (i) on or before the Payment Date occurring in September 2004,
approximately zero, or (ii) with respect to any Payment Date thereafter, 0.50%
of the Group 1 Cut-off Date Balance and the Group 1 Original Pre-Funded Amount;
provided, that if the aggregate Bond Principal Balance of the Group 2 Bonds has
been reduced to zero, the Group 1 Overcollateralization Target Amount will be
0.50% of the sum of the Group 1 Cut-off Date Balance, Group 2 Cut-off Date
Balance, the Group 1 Original Pre- Funded Amount and the Group 2 Original
Pre-Funded Amount.
GROUP 1 PRE-FUNDED AMOUNT: The amount on deposit in the Group 1
Pre-Funding Account on any date of determination.
GROUP 1 PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Bondholders and funded on the Closing Date by the
Company with the Group 1 Original Pre-Funded Amount.
GROUP 1 SUBSEQUENT MORTGAGE LOANS: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.05 of the Indenture, such
Mortgage Loan being identified on the Mortgage Loan Schedule attached to a
Subsequent Transfer Instrument.
GROUP 1 SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: An agreement,
dated as of the applicable Group 1 Subsequent Transfer Date, between the Seller,
as seller, and the Purchaser, as purchaser, relating to the sale, transfer and
assignment of the Group 1 Subsequent Mortgage Loans.
GROUP 1 SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group 1
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between IMH Assets Corp., as company, and
Deutsche Bank National Trust Company, as indenture trustee, or such other
instrument as agreed upon by the company and the Indenture Trustee.
GROUP 2 ADJUSTED NET WAC RATE: On any Payment Date which is not a
Subordinated Transfer Payment Date, or which is a Subordinated Transfer Payment
Date but the Group 2 Loans are an Overcollateralized Loan Group, the Group 2 Net
WAC Rate. On any Subordinated Transfer Payment Date, if the Group 2 Loans are an
Undercollateralized Loan Group, the weighted average of the Group 2 Net WAC Rate
and the Group 1 Net WAC Rate, weighted on the basis of the aggregate Stated
Principal Balance of the Group 2 Loans as of the end of the prior Due Period,
and the Subordinated Transfer Realized Loss Amount, respectively.
GROUP 2 AVAILABLE FUNDS: With respect to any Payment Date, the sum of
the following, in each case with respect to the Group 2 Loans:
(i) each previously undistributed Monthly Payment due after
the Cut-off Date received on or prior to the related Determination Date
or advanced prior to such Payment Date (other than Monthly Payments due
after the related Due Period, which shall be treated as if received
during the Due Period they were due and other than Monthly Payments
with
18
respect to which the Master Servicer has made an unreimbursed Advance)
on each outstanding Group 2 Loan (less the related Master Servicing
Fees, any Subservicing Fees under any Subservicing Agreement and any
fees or penalties retained by the Master Servicer or any Subservicer,
the fees of the Owner Trustee and the Indenture Trustee);
(ii) all proceeds of any Group 2 Loan repurchased during the
related Prepayment Period (or deemed to have been so repurchased in
accordance with the Servicing Agreement) pursuant to the Servicing
Agreement and the amount of any shortfall deposited in the Collection
Account in connection with the substitution of a Deleted Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement, during the related
Prepayment Period;
(iii) all other unscheduled collections (including, without
limitation, Principal Prepayments, Insurance Proceeds, Liquidation
Proceeds and REO Proceeds) received during the related Prepayment
Period to the extent applied by the Master Servicer as recoveries of
principal or interest of the related Group 2 Loan pursuant to the
Servicing Agreement;
(iv) any (i) Compensating Interest payments and (ii)
Foreclosure Profits, to the extent not payable to the Subservicers;
(v) at the end of the Funding Period, any excess amounts
transferred from the Group 2 Pre-Funding Account; and
(vii) interest earned on amounts on deposit in the Group 2
Pre-Funding Account;
MINUS
(v) expenses incurred by and reimbursable to the Master
Servicer or the Depositor pursuant to the Servicing Agreement or
otherwise, or in connection with enforcing any repurchase, substitution
or indemnification obligation of the Seller (other than an Affiliate of
the Depositor) in respect of a Group 2 Loan;
(vi) amounts expended by the Master Servicer (a) pursuant to
the Servicing Agreement in good faith in connection with the
restoration of property related to a Group 2 Loan damaged by an
Uninsured Cause, and (b) in connection with the liquidation of a
Mortgage Loan or disposition of an REO Property related to a Group 2
Loan to the extent not otherwise reimbursed to the Master Servicer
pursuant to the Servicing Agreement;
(vii) if the Bonds have been declared due and payable
following an Event of Default on such Payment Date, any amounts owed to
the Indenture Trustee by the Issuer pursuant to Section 6.07 of the
Indenture;
(viii) the related Net Derivative Fee; and
(ix) any other amounts withdrawn from the Collection Account
by the Master Servicer pursuant to Section 3.07(a)(ii) through (xv) of
the Servicing Agreement, not described above in clauses (v) through
(viii) above;
19
provided, however, that on any Subordinated Transfer Payment Date, the Group 2
Available Funds shall be increased (if it is the Undercollateralized Loan Group)
or reduced (if it is the Overcollateralized Loan Group), by the Subordinated
Payment Transfer Fraction of the Available Funds for the Overcollateralized Loan
Group.
GROUP 2 BOND: A Class 2-A, Class M-1-2, Class M-2-2, Class M-3-2, Class
M-4-2, Class M- 5-2 or Class M-6-2 Bond.
GROUP 2 CUT-OFF DATE BALANCE: $250,001,811.05.
GROUP 2 LOAN: A Mortgage Loan in Loan Group 2.
GROUP 2 NET WAC RATE: The weighted average of the Net Mortgage Rates on
the Group 2 Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period.
GROUP 2 ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group 2
Pre-Funding Account on the Closing Date by the Indenture Trustee.
GROUP 2 OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any
Payment Date, (i) on or before the Payment Date occurring in September 2004,
approximately zero, or (ii) with respect to any Payment Date thereafter, 0.50%
of the Group 2 Cut-off Date Balance and the Group 2 Original Pre-Funded Amount;
provided, that if the aggregate Bond Principal Balance of the Group 1 Bonds has
been reduced to zero, the Group 2 Overcollateralization Target Amount will be
0.50% of the sum of the Group 1 Cut-off Date Balance, Group 2 Cut-off Date
Balance, the Group 1 Original Pre- Funded Amount and the Group 2 Original
Pre-Funded Amount.
GROUP 2 PRE-FUNDED AMOUNT: The amount on deposit in the Group 2
Pre-Funding Account on any date of determination.
GROUP 2 PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Bondholders and funded on the Closing Date by the
Company with the Group 2 Original Pre-Funded Amount.
GROUP 2 SUBSEQUENT MORTGAGE LOANS: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.06 of the Indenture, such
Mortgage Loan being identified on the Mortgage Loan Schedule attached to a Group
2 Subsequent Transfer Instrument.
GROUP 2 SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: An agreement,
dated as of the applicable Group 2 Subsequent Transfer Date, between the Seller,
as seller, and the Purchaser, as purchaser, relating to the sale, transfer and
assignment of the Group 2 Subsequent Mortgage Loans.
GROUP 2 SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group 2
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between IMH Assets Corp., as company, and
Deutsche Bank National Trust Company, as indenture trustee, or such other
instrument as agreed upon by the company and the Indenture Trustee.
20
GROUP 3 AVAILABLE FUNDS: With respect to any Payment Date, the sum of
the following, in each case with respect to the Group 3 Loans:
(i) each previously undistributed Monthly Payment due after
the Cut-off Date received on or prior to the related Determination Date
or advanced prior to such Payment Date (other than Monthly Payments due
after the related Due Period, which shall be treated as if received
during the Due Period they were due and other than Monthly Payments
with respect to which the Master Servicer has made an unreimbursed
Advance) on each outstanding Group 3 Loan (less the related Master
Servicing Fees, any Subservicing Fees under any Subservicing Agreement
and any fees or penalties retained by the Master Servicer or any
Subservicer, the fees of the Owner Trustee and the Indenture Trustee);
(ii) all proceeds of any Group 3 Loan repurchased during the
related Prepayment Period (or deemed to have been so repurchased in
accordance with the Servicing Agreement) pursuant to the Servicing
Agreement and the amount of any shortfall deposited in the Collection
Account in connection with the substitution of a Deleted Mortgage Loan
pursuant to the Mortgage Loan Purchase Agreement, during the related
Prepayment Period;
(iii) all other unscheduled collections (including, without
limitation, Principal Prepayments, Insurance Proceeds, Liquidation
Proceeds and REO Proceeds) received during the related Prepayment
Period to the extent applied by the Master Servicer as recoveries of
principal or interest of the related Group 3 Loan pursuant to the
Servicing Agreement; and
(iv) any (i) Compensating Interest payments and (ii)
Foreclosure Profits, to the extent not payable to the Subservicers;
MINUS
(v) expenses incurred by and reimbursable to the Master
Servicer or the Depositor pursuant to the Servicing Agreement or
otherwise, or in connection with enforcing any repurchase, substitution
or indemnification obligation of the Seller (other than an Affiliate of
the Depositor) in respect of a Group 3 Loan;
(vi) amounts expended by the Master Servicer (a) pursuant to
the Servicing Agreement in good faith in connection with the
restoration of property related to a Group 2 Loan damaged by an
Uninsured Cause, and (b) in connection with the liquidation of a
Mortgage Loan or disposition of an REO Property related to a Group 3
Loan to the extent not otherwise reimbursed to the Master Servicer
pursuant to the Servicing Agreement;
(vii) if the Bonds have been declared due and payable
following an Event of Default on such Payment Date, any amounts owed to
the Indenture Trustee by the Issuer pursuant to Section 6.07 of the
Indenture;
(viii) the related Net Derivative Fee; and
21
(ix) any other amounts withdrawn from the Collection Account
by the Master Servicer pursuant to Section 3.07(a)(ii) through (xv) of
the Servicing Agreement, not described above in clauses (v) through
(viii) above.
GROUP 3 BOND: A Class 3-A, Class 3-M-1, Class 3-M-2 or Class 3-B Bond.
GROUP 3 CUT-OFF DATE BALANCE: $59,101,059.24.
GROUP 3 LOAN: A Mortgage Loan in Loan Group 3.
GROUP 3 DERIVATIVE CONTRACTS: The four derivative contracts between the
Seller and the Derivative Contract Counterparty for the benefit of the Class
3-A, Class 3-M-1, Class 3-M-2 and Class 3-B Bonds and the Owner Trust
Certificates.
GROUP 3 NET DERIVATIVE CONTRACT PAYMENT AMOUNT: With respect to any
Payment Date, the amount equal to the excess, if any, of (a) the aggregate
amount payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the Group 3 Derivative Contracts, over (b) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty under the Group 3 Derivative Contracts.
GROUP 3 NET WAC RATE: The weighted average of the Net Mortgage Rates on
the Group 3 Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period.
GROUP 3 OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any
Payment Date, prior to the Group 3 Stepdown Date or on or after the Group 3
Stepdown Date for which a Group 3 Trigger Event is in effect, 6.20% of the Group
3 Cut-off Date Balance. With respect to any Payment Date on or after the Group 3
Stepdown Date, the greater of (i) 12.40% of the aggregate Stated Principal
Balance of the Group 3 Loans as of the end of the related Due Period, and (ii)
0.50% of the Group 3 Cut-off Date Balance; provided however, that on or after
the Group 3 Stepdown Date, if a Group 3 Trigger Event is in effect, the Group 3
Overcollateralization Target Amount will be equal to such amount on the previous
Payment Date.
GROUP 3 STEPDOWN DATE: The later to occur of (x) the Payment Date
occurring in April 2009 and (y) the first Payment Date for which the aggregate
Stated Principal Balance of the Group 3 Loans as of the last day of the related
Due Period (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
after reduction for Realized Losses incurred during the related Prepayment
Period) is less than or equal to 50.00% of the Group 3 Cut-off Date Balance.
GROUP 3 TRIGGER EVENT: A Group 3 Trigger Event is in effect with
respect to any Payment Date with respect to the Group 3 Loans if, (1) in the
case of any Payment Date after the 60th Payment Date, the three month average of
the aggregate principal balance of Group 3 Loans that are 60 or more days
delinquent (including for this purpose any such Mortgage Loans in bankruptcy or
foreclosure and Group 3 Loans with respect to which the related mortgaged
property has been
22
acquired by the trust) as of the close of business on the last day of the
preceding calendar month exceeds 16.00% of the aggregate Stated Principal
Balance of the Group 3 Loans or (2)(a) in the case of any Payment Date after the
60th Payment Date and on or before the 72nd Payment Date, the cumulative amount
of Realized Losses incurred on the Mortgage Loans from the Cut-off Date through
the end of the calendar month immediately preceding such Payment Date exceeds
5.75% of the Cut-off Date Balance with respect to the 61st Payment Date, plus an
additional 1/12th of 0.75% of the Cut-off Date Balance for each Payment Date
after the 61st Payment Date to and including the 72nd Payment Date, (b) in the
case of any Payment Date after the 72nd Payment Date and on or before the 84th
Payment Date, the cumulative amount of Realized Losses incurred on the Mortgage
Loans from the Cut-off Date through the end of the calendar month immediately
preceding such Payment Date exceeds 6.50% of the Cut-off Date Balance with
respect to the 73rd Payment Date, plus an additional 1/12th of 1.00% of the
Cut-off Date Balance for each Payment Date after the 73rd Payment Date to and
including the 84th Payment Date, (c) in the case of any Payment Date after the
84th Payment Date and on or before the 96th Payment Date, the cumulative amount
of Realized Losses incurred on the Mortgage Loans from the Cut-off Date, through
the end of the calendar month immediately preceding such Payment Date exceeds
7.50% of the Cut-off Date Balance with respect to the 85th Payment Date, plus an
additional 1/12th of 0.75% of the Cut-off Date Balance for each Payment Date
after the 85th Payment Date to and including the 96th Payment Date and (d) in
the case of any Payment Date after the 96th Payment Date, the cumulative amount
of Realized Losses incurred on the Mortgage Loans from the Cut-off Date through
the end of the calendar month immediately preceding such Payment Date exceeds
8.25% of the Cut-off Date Balance.
For purposes of the foregoing calculations, a mortgage loan is
considered "60 days" delinquent if a payment due on the first day of a month has
not been received by the second day of the second following month.
IMPAC HOLDINGS: Impac Mortgage Holdings, Inc., a Maryland corporation,
and its successors and assigns.
INDEMNIFIED PARTY: The meaning specified in Section 7.02 of the Trust
Agreement.
INDENTURE: The indenture dated as of March 30, 2004, between the Issuer
and the Indenture Trustee, relating to the Impac CMB Trust Series 2004-3 Bonds.
INDENTURE TRUSTEE: Deutsche Bank National Trust Company, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Indenture.
INDENTURE TRUSTEE'S FEE: With respect to any Payment Date, one month's
interest accrued at the Indenture Trustee's Fee Rate on the Stated Principal
Balance of each Mortgage Loan as of the first day of the related Due Period plus
amounts on deposit in the Group 1 Pre-Funding Account and Group 2 Pre-Funding
Account.
INDENTURE TRUSTEE'S FEE RATE: On each Mortgage Loan, a rate equal to
0.0019% per annum.
23
INDEPENDENT: When used with respect to any specified Person, the Person
(i) is in fact independent of the Issuer, any other obligor on the Bonds, the
Seller, the Master Servicer, the Depositor and any Affiliate of any of the
foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller, the Master Servicer, the Depositor or any Affiliate of any of the
foregoing Persons and (iii) is not connected with the Issuer, any such other
obligor, the Seller, the Master Servicer, the Depositor or any Affiliate of any
of the foregoing Persons as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions.
INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
made by an independent appraiser or other expert appointed by an Issuer Request
and approved by the Indenture Trustee in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.
INDEX: With respect to any Mortgage Loan, the index for the adjustment
of the Mortgage Rate set forth as such on the related Mortgage Note.
INITIAL BOND PRINCIPAL BALANCE: With respect to the Class 1-A Bonds,
$845,000,000, with respect to the Class 2-A Bonds, $253,500,000, with respect to
the Class 3-A Bonds, $37,448,000, with respect to the Class 3-M-1 Bonds,
$2,926,000, with respect to the Class 3-M-2 Bonds, $5,999,000, with respect to
the Class 3-B Bonds, $10,551,000, with respect to the Class M-1-1 Bonds,
$22,750,000, with respect to the Class M-2-1 Bonds, $22,750,000, with respect to
the Class M-3-1 Bonds, $14,300,000, with respect to the Class M-4-1 Bonds,
$15,600,000, with respect to the Class M-5-1 Bonds, $13,975,000, with respect to
the Class M-6-1 Bonds, $11,375,000, with respect to the Class M-1-2 Bonds,
$22,750,000, with respect to the Class M-2-2 Bonds, $22,750,000, with respect to
the Class M-3-2 Bonds, $14,300,000, with respect to the Class M-4-2 Bonds,
$15,600,000, with respect to the Class M-5-2 Bonds, $13,975,000, and with
respect to the Class M-6-2 Bonds, $11,375,000.
INITIAL CERTIFICATION: The initial certification delivered by the
Indenture Trustee pursuant to Section 2.03(a) of the Indenture in the form
attached thereto as Exhibit C.
INITIAL MORTGAGE LOAN: Any of the Mortgage Loans included in the Trust
Estate as of the Closing Date. The aggregate principal balance of the Initial
Mortgage Loans as of the Cut-off Date is equal to approximately
$1,179,104,506.08.
INITIAL SUBSERVICERS: With respect to the (1) Group 1 Loans,
Countrywide Home Loans Servicing LP, (2) Group 2 Loans, GMAC Mortgage
Corporation and (3) Group 3 Loans, Midland Loan Services, Inc., or their
respective successors in interest.
INSURANCE PROCEEDS: Proceeds paid by any insurer pursuant to any
insurance policy covering a Mortgage Loan which are required to be remitted to
the Master Servicer, net of any component thereof (i) covering any expenses
incurred by or on behalf of the Master Servicer in connection with obtaining
such proceeds, (ii) that is applied to the restoration or repair of the related
Mortgaged
24
Property or (iii) released to the Mortgagor in accordance with the Master
Servicer's normal servicing procedures.
INTEREST DETERMINATION DATE: With respect to the first Accrual Period,
the second LIBOR Business Day preceding the Closing Date, and with respect to
each Accrual Period thereafter, the second LIBOR Business Day preceding the
related Payment Date on which such Accrual Period commences.
INTEREST RATE ADJUSTMENT DATE: With respect to each Mortgage Loan, the
date or dates on which the Mortgage Rate is adjusted in accordance with the
related Mortgage Note.
INTERESTED PERSON: As of any date of determination, the Depositor, the
Master Servicer the Bond Insurer, the Indenture Trustee, any Mortgagor, or any
Person actually known to a Responsible Officer of the Trustee to be an Affiliate
of any of them.
INVESTMENT COMPANY ACT: The Investment Company Act of 1940, as amended,
and any amendments thereto.
IRS: The Internal Revenue Service.
ISSUER: Impac CMB Trust Series 2004-3, a Delaware statutory trust, or
its successor in interest.
ISSUER REQUEST: A written order or request signed in the name of the
Issuer by any one of its Authorized Officers and approved in writing by the Bond
Insurer, so long as no Bond Insurer Default exists, and delivered to the
Indenture Trustee.
LIBOR BUSINESS DAY: A day on which banks are open for dealing in
foreign currency and exchange in London and New York City.
LIEN: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; PROVIDED,
HOWEVER, that any assignment pursuant to Section 6.02 of the Servicing Agreement
shall not be deemed to constitute a Lien.
LIFETIME RATE CAP: With respect to each Group 1 Loan and Group 3 Loan
with respect to which the related Mortgage Note provides for a lifetime rate
cap, the maximum Mortgage Rate permitted over the life of such Mortgage Loan
under the terms of such Mortgage Note, as set forth on the Mortgage Loan
Schedule and initially as set forth on Exhibit A to the Servicing Agreement.
25
LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, any
Mortgage Loan in respect of which the Master Servicer has determined, in
accordance with the servicing procedures specified in the Servicing Agreement,
as of the end of the related Due Period that substantially all Liquidation
Proceeds which it reasonably expects to recover with respect to the disposition
of the related Mortgaged Property or REO Property have been recovered.
LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead)
which are incurred by or on behalf of the Master Servicer, or any Special
Servicer on the Master Servicer's behalf, in connection with the liquidation of
any Mortgage Loan and not recovered under any insurance policy, such expenses
including, without limitation, legal fees and expenses, any unreimbursed amount
expended (including, without limitation, amounts advanced to correct defaults on
any Mortgage Loan which is senior to such Mortgage Loan, amounts advanced to
keep current or pay off a Mortgage Loan that is senior to such Mortgage Loan and
Disposition Fees) respecting the related Mortgage Loan and any related and
unreimbursed expenditures for real estate property taxes or for property
restoration, preservation or insurance against casualty loss or damage.
LIQUIDATION PROCEEDS: Proceeds (including Insurance Proceeds) received
in connection with the liquidation of any Mortgage Loan or related REO Property,
whether through trustee's sale, foreclosure sale or otherwise.
LOAN GROUP: Any of Loan Group 1, Loan Group 2 or Loan Group 3.
LOAN GROUP 1: The Group 1 Loans.
LOAN GROUP 2: The Group 2 Loans.
LOAN GROUP 3: The Group 3 Loans.
LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan, as of any date
of determination, a fraction expressed as a percentage, the numerator of which
is the then current principal amount of the Mortgage Loan, and the denominator
of which is the Appraised Value of the related Mortgaged Property.
LOAN YEAR: With respect to any Mortgage Loan, the one-year period
commencing on the day succeeding the origination of such Mortgage Loan and
ending on the anniversary date of such Mortgage Loan, and each annual period
thereafter.
LOST NOTE AFFIDAVIT: With respect to any Mortgage Loan as to which the
original Mortgage Note has been lost or destroyed and has not been replaced, an
affidavit from the Seller certifying that the original Mortgage Note has been
lost, misplaced or destroyed (together with a copy of the related Mortgage
Note).
MAJORITY CERTIFICATEHOLDER: A Holder of a 50.01% or greater Certificate
Percentage Interest of the Owner Trust Certificates.
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MASTER SERVICER: Impac Funding Corporation, a California corporation,
and its successors and assigns.
MASTER SERVICING FEE: With respect to each Mortgage Loan and any
Payment Date, the fee payable monthly to the Master Servicer in respect of
master servicing compensation that accrues at an annual rate equal to the Master
Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage
Loan as of the related Due Date in the related Due Period.
MASTER SERVICING FEE RATE: With respect to any Mortgage Loan, 0.030%
per annum.
MAXIMUM BOND RATE: With respect to any Class of Bonds, other than the
Class 2-A Bonds and Group 3 Bonds, 11.50% per annum. With respect to any Class
of Group 3 Bonds, 10.40% per annum.
MAXIMUM MORTGAGE RATE: With respect to each Group 1 Loan and Group 3
Loan, the maximum Mortgage Rate.
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.
MINIMUM MORTGAGE RATE: With respect to each Group 1 Loan and Group 3
Loan, the minimum Mortgage Rate.
MOM LOAN: With respect to any Mortgage Loan, MERS acting 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 (including any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization schedule at the time applicable thereto (after
adjustment, if any, for partial Principal Prepayments and for Deficient
Valuations occurring prior to such Due Date but before any adjustment to such
amortization schedule by reason of any bankruptcy, other than a Deficient
Valuation, or similar proceeding or any moratorium or similar waiver or grace
period).
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 an estate in fee simple interest in real property securing a
Mortgage Loan.
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MORTGAGE FILE: The file containing the Related Documents pertaining to
a particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Purchase Agreement or the
Servicing Agreement.
MORTGAGE LOANS: The Mortgage Loans that will be transferred and
assigned to the Trust pursuant to Section 2.03(a) of the Indenture, each
Mortgage Loan so held being identified in the Mortgage Loan Schedule. The
Mortgage Loans have been divided into three groups, Loan Group 1, Loan Group 2
and Loan Group 3.
MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement,
dated as of the Closing Date, between the Seller, as seller, and the Purchaser,
as purchaser, relating to the sale, transfer and assignment of the Initial
Mortgage Loans.
MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule of
Mortgage Loans held by the Issuer on such date. The schedule of (i) Initial
Mortgage Loans as of the Cut-off Date is the schedule set forth in Exhibit B of
the Indenture and (ii) the applicable Group 1 Subsequent Mortgage Loans and
Group 2 Subsequent Mortgage Loans as of the related Group 1 or Group 2
Subsequent Cut-off Date is Schedule 1 of the applicable Group 1 or Group 2
Subsequent Transfer Instrument, which respective schedules set forth as to each
Mortgage Loan:
(i) the loan number and name of the Mortgagor;
(ii) the street address, city, state and zip code of the
Mortgaged Property;
(iii) the original Mortgage Rate;
(iv) the maturity date;
(v) the original principal balance;
(vi) the first Payment Date;
(vii) the type of Mortgaged Property;
(viii) the Monthly Payment in effect as of the Cut-off Date;
(ix) the Cut-off Date Principal Balance;
(x) the Index and the Gross Margin, if applicable;
(xi) the Adjustment Date frequency and Payment Date frequency,
if applicable;
(xii) the occupancy status;
(xiii) the purpose of the Mortgage Loan;
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(xiv) the Appraised Value of the Mortgaged Property;
(xv) (A) the original term to maturity and (B) if such
Mortgage Loan is a Balloon Loan, the amortization term thereof;
(xvi) the paid-through date of the Mortgage Loan;
(xvii) whether the Mortgage Loan is a Balloon Mortgage Loan or
a Mortgage Loan the terms of which do not provide for a Balloon
Payment;
(xviii) the Loan-to-Value Ratio;
(xix) whether such Mortgage Loan is a Radian PMI Insured Loan,
and if so, the related Radian PMI Rate; and
(xx) whether or not the Mortgage Loan was underwritten
pursuant to a limited documentation program.
The Mortgage Loan Schedule shall also set forth the total of the
amounts described under (ix) above for all of the Mortgage Loans.
MORTGAGE NOTE: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan.
MORTGAGE RATE: With respect to any Mortgage Loan, the annual rate at
which interest accrues on such Mortgage Loan.
MORTGAGED PROPERTY: The underlying property, including real property
and improvements thereon, securing a Mortgage Loan.
MORTGAGOR: The obligor or obligors under a Mortgage Note.
NET COLLECTIONS: With respect to any Corrected Mortgage Loan, an amount
equal to all payments on account of interest and principal on such Mortgage
Loan.
NET DERIVATIVE FEE: With respect to any Payment Date and the Group 1
Loans and Group 2 Loans, the amount equal to the excess, if any, of (a) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty in respect of the Class 1-A and Class M Derivative Contracts, over
(b) the aggregate amount payable on that Payment Date to the Issuer from the
Derivative Contract Counterparty pursuant to the Class 1-A and Class M
Derivative Contracts. With respect to any Payment Date and the Group 3 Loans,
the amount equal to the excess, if any, of (a) the aggregate amount payable on
that Payment Date to the related Derivative Contract Counterparty in respect of
the Group 3 Derivative Contracts, over (b) the aggregate amount payable on that
Payment Date to the Issuer from the related Derivative Contract Counterparty
pursuant to the Group 3 Derivative Contracts.
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NET DERIVATIVE FEE RATE: With respect to any Payment Date and the Group
1 Loans and Group 2 Loans, the fraction, expressed as a rate per annum, equal to
(x) the Net Derivative Fee on such Payment Date related to the Group 1 Loans and
Group 2 Loans over (y) the aggregate Stated Principal Balance of the Group 1
Loans and Group 2 Loans. With respect to any Payment Date and the Group 3 Loans,
the fraction, expressed as a rate per annum, equal to (x) the Net Derivative Fee
on such Payment Date related to the Group 3 Loans over (y) the aggregate Stated
Principal Balance of the Group 3 Loans.
NET LIQUIDATION PROCEEDS: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses.
NET MONTHLY EXCESS CASH FLOW: For any Payment Date and each Loan Group,
the sum of (a) any Overcollateralization Release Amount and (b) the excess of
(x) the related Available Funds for such Payment Date over (y) the sum for such
Payment Date of (A) the aggregate amount of Accrued Bond Interest for the
related Bonds and (B) the related Principal Remittance Amount.
NET MORTGAGE RATE: On any Mortgage Loan and any Payment Date, the then
applicable mortgage rate thereon for the scheduled monthly payment thereon
during the related Due Period minus the sum of (1) the Master Servicing Fee
Rate, (2) the Subservicing Fee Rate, (3) the Indenture Trustee's Fee Rate, (4)
the Owner Trustee's Fee Rate, (5) the related Net Derivative Fee Rate and (6)
the related Radian PMI Rate, if such Mortgage Loan is a Radian PMI Insured Loan.
NONRECOVERABLE ADVANCE: Any advance (i) which was previously made or is
proposed to be made by the Master Servicer; and (ii) which, in the good faith
judgment of the Master Servicer, will not or, in the case of a proposed advance,
would not, be ultimately recoverable by the Master Servicer from Liquidation
Proceeds, Insurance Proceeds or future payments on any Mortgage Loan. The
Indenture Trustee may conclusively rely on any determination of
nonrecoverability made by the Master Servicer.
OFFICER'S CERTIFICATE: With respect to the Master Servicer, a
certificate signed by the President, Managing Director, a Director, a Vice
President or an Assistant Vice President, of the Master Servicer and delivered
to the Indenture Trustee. With respect to the Issuer, a certificate signed by
any Authorized Officer of the Issuer, under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 10.01 of the
Indenture, and delivered to the Indenture Trustee. Unless otherwise specified,
any reference in the Indenture to an Officer's Certificate shall be to an
Officer's Certificate of any Authorized Officer of the Issuer.
ONE-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Indenture Trustee on the related Interest Determination Date
on the basis of the London interbank offered rate for one-month United States
dollar deposits, as such rates appear on the Telerate Screen Page 3750, as of
11:00 a.m. (London time) on such Interest Determination Date.
In the event that on any Interest Determination Date, Telerate Screen
3750 fails to indicate the London interbank offered rate for one-month United
States dollar deposits, then One-Month LIBOR for the related Interest Accrual
Period will be established by the Indenture Trustee as follows:
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(i) If on such Interest Determination Date two or more
Reference Banks provide such offered quotations, One-Month LIBOR for
the related Accrual Period shall be the arithmetic mean of such offered
quotations (rounded upwards if necessary to the nearest whole multiple
of 1/16%).
(ii) If on such Interest Determination Date fewer than two
Reference Banks provide such offered quotations, One-Month LIBOR for
the related Accrual Period shall be the higher of (i) One-Month LIBOR
as determined on the previous Interest Determination Date and (ii) the
Reserve Interest Rate.
The establishment of One-Month LIBOR on each Interest Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
rate of interest applicable for the related Accrual Period shall (in the absence
of manifest error) be final and binding.
OPINION OF COUNSEL: A written opinion of counsel acceptable to the
Indenture Trustee and/or the Bond Insurer, as applicable, in its reasonable
discretion which counsel may be in-house counsel for the Master Servicer if
acceptable to the Indenture Trustee, the Bond Insurer and the Rating Agencies or
counsel for the Depositor, as the case may be.
ORIGINAL VALUE: Except in the case of a refinanced Mortgage Loan, the
lesser of the Appraised Value or sales price of Mortgaged Property at the time a
Mortgage Loan is closed, and for a refinanced Mortgage Loan, the Original Value
is the value of such property set forth in an appraisal acceptable to the Master
Servicer.
OUTSTANDING: With respect to the Bonds, as of the date of
determination, all Bonds theretofore executed, authenticated and delivered under
this Indenture except:
(i) Bonds theretofore canceled by the Bond Registrar or
delivered to the Indenture Trustee for cancellation; and
(ii) Bonds in exchange for or in lieu of which other Bonds
have been executed, authenticated and delivered pursuant to the
Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Bonds are held by a holder in due course;
all Bonds that have been paid with funds provided under the Bond Insurance
Policy shall be deemed to be Outstanding until the Bond Insurer has been
reimbursed with respect thereto.
OUTSTANDING MORTGAGE LOAN: As to any Due Date, a Mortgage Loan
(including an REO Property) which was not the subject of a Principal Prepayment
in Full, Cash Liquidation or REO Disposition and which was not purchased,
deleted or substituted for prior to such Due Date pursuant to the Servicing
Agreement.
OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to any Payment
Date, and each Loan Group, the least of (i) the related Net Monthly Excess
Cashflow for such Payment Date, (ii) the excess, if any, of (a) the related
Overcollateralization Target Amount over (b) the related Overcollateralized
Amount on such Payment Date (after taking into account payments to the related
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Bonds of the related Basic Principal Distribution Amount on such Payment Date)
and (iii) the amount necessary, pursuant to the related clause of Section 3.05
of the Indenture, so that the excess, if any, of (x) the aggregate Stated
Principal Balance of the related Mortgage Loans as of the end of the related Due
Period (any 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
after reduction for Realized Losses on the related Mortgage Loans incurred
during the related Prepayment Period), over (y) the aggregate Bond Principal
Balance of the related Bonds (as reduced by payments of the related Basic
Principal Distribution Amount and any amounts in respect of Net Monthly Excess
Cashflow, in reduction of the Bond Principal Balances thereof on that Payment
Date prior to payment of the Overcollateralization Increase Amount), is equal to
the related Overcollateralization Target Amount.
OVERCOLLATERALIZATION RELEASE AMOUNT: With respect to any Payment Date
and each Loan Group, the lesser of (x) the related Principal Remittance Amount
for such Payment Date and (y) the excess, if any, of (i) the Overcollateralized
Amount for such Payment Date (assuming that 100% of the related Principal
Remittance Amount is applied as a principal payment on such Payment Date) over
(ii) the related Overcollateralization Target Amount for such Payment Date.
OVERCOLLATERALIZATION TARGET AMOUNT: The Group 1 Overcollateralization
Target Amount, Group 2 Overcollateralization Target Amount or Group 3
Overcollateralization Target Amount, as applicable.
OVERCOLLATERALIZED AMOUNT: As of any Payment Date, other than a
Subordinated Transfer Payment Date, and each Loan Group, the amount, if any, by
which (i) the aggregate principal balance of the related 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, but prior to reduction
for Realized Losses incurred during the related Prepayment Period) exceeds (ii)
the aggregate Bond Principal Balance of such related Loan Group as of such
Payment Date (after giving effect to distributions to be made on such Payment
Date).
For any Subordinated Transfer Payment Date and the Overcollateralized
Loan Group, the amount, if any, by which (i) the aggregate principal balance of
the related 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, but prior to reduction for Realized Losses on the related Mortgage Loans
incurred during the related Prepayment Period), exceeds (ii) the sum of (x) the
aggregate Bond Principal Balance related to such Loan Group as of such Payment
Date (after giving effect to distributions to be made on such Payment Date) and
(y) the Subordinated Transfer Realized Loss Amount.
For any Subordinated Transfer Payment Date and the Undercollateralized
Loan Group, the amount, if any, by which (i) the aggregate principal balance of
the related 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, but prior to reduction for Realized Losses on the related Mortgage Loans
32
incurred during the related Prepayment Period), exceeds (ii) (x) the aggregate
Bond Principal Balance related to such Loan Group as of such Payment Date (after
giving effect to distributions to be made on such Payment Date) minus (y) the
Subordinated Transfer Realized Loss Amount.
OVERCOLLATERALIZED LOAN GROUP: For any Subordinated Transfer Payment
Date, the Loan Group which is not the Undercollateralized Loan Group.
OWNER TRUST ESTATE: The corpus of the Issuer created by the Trust
Agreement which consists of items referred to in Section 3.01 of the Trust
Agreement.
OWNER TRUSTEE: Wilmington Trust Company and its successors and assigns
or any successor owner trustee appointed pursuant to the terms of the Trust
Agreement.
OWNER TRUSTEE'S FEE: With respect to any Payment Date the product of
(i) the Owner Trustee's Fee Rate divided by 12 and (ii) the aggregate Stated
Principal Balance of the Mortgage Loans as of the first day of the related Due
Period plus amounts on deposit in the Group 1 Pre- Funding Account and Group 2
Pre-Funding Account..
OWNER TRUSTEE'S FEE RATE: On each Mortgage Loan, a rate equal to
0.0017% per annum.
PAYING AGENT: Any paying agent or co-paying agent appointed pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.
PAYMENT ACCOUNT: The account established by the Indenture Trustee
pursuant to Section 3.01 of the Indenture. The Payment Account shall be an
Eligible Account.
PAYMENT DATE: The 25th day of each month, or if such day is not a
Business Day, then the next Business Day.
PERCENTAGE INTEREST: With respect to any Bond, the percentage obtained
by dividing the Bond Principal Balance of such Bond by the aggregate Bond
Principal Balances of all Bonds of that Class. With respect to any Certificate,
the percentage as stated on the face thereof.
PERIODIC RATE CAP: With respect to any Group 1 Loan and Group 3 Loan,
the maximum rate, if any, by which the Mortgage Rate on such Mortgage Loan can
adjust on any Adjustment Date, as stated in the related Mortgage Note or
Mortgage.
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.
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.
33
PLAN ASSETS: Assets of a Plan within the meaning of Department of Labor
regulation 29 C.F.R. ss. 2510.3-101.
POOL BALANCE: With respect to any date of determination, the aggregate
of the Stated Principal Balances of all Mortgage Loans as of such date.
PREPAYMENT ASSUMPTION: A Prepayment Assumption of 100% assumes, (i)
with respect to the Group 1 Loans, 30% CPR, (ii) with respect to the Group 2
Loans, a Prepayment Assumption of 100% assumes that the outstanding balance of a
pool of mortgage loans prepays at a rate of 7.20% CPR in the first month, such
rate increasing by an additional approximately 1/11 of 16.80% CPR each month
thereafter, building to 24% CPR in month 12 and remaining constant at 24% each
month thereafter and (iii) with respect to the Group 3 Loans, a Prepayment
Assumption of 100% assumes no prepayments in the first 12 months after the
origination date of such mortgage loan, 10% CPR in the second 12 month period,
15% CPR in the third 12 month period, 25% CPR in the fourth 12 month period and
30% CPR thereafter.
PREPAYMENT INTEREST SHORTFALL: As to any Payment Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property) that was the
subject of (a) a Principal Prepayment in Full during the related Prepayment
Period, an amount equal to the excess of interest accrued during the related
Prepayment Period at the Net Mortgage Rate on the Stated Principal Balance of
such Mortgage Loan over the sum of the amount of interest (less interest at the
related Expense Fee Rate) paid by the Mortgagor for such Prepayment Period to
the date of such Principal Prepayment in Full and any Advances made by the
Master Servicer pursuant to Section 4.04 of the Servicing Agreement or (b) a
partial Principal Prepayment during the related Prepayment Period, an amount
equal to the interest at the Mortgage Rate (less the Subservicing Fee Rate)
during the related Prepayment Period on the amount of such partial Principal
Prepayment.
PREPAYMENT PERIOD: With respect to each Mortgage Loan and any Payment
Date, the prior calendar month.
PRIMARY INSURANCE POLICY: Each primary policy of mortgage guaranty
insurance issued by a Qualified Insurer or any replacement policy therefor,
including the Radian Lender-Paid PMI Policies.
PRINCIPAL DISTRIBUTION AMOUNT: The Principal Distribution Amount
relating to Group 1, Group 2 or Group 3, as applicable.
PRINCIPAL PREPAYMENT: Any payment of principal or other recovery on a
Mortgage Loan, including a recovery that takes the form of Liquidation Proceeds
or Insurance Proceeds, which is received in advance of its scheduled Due Date
and is not accompanied by an amount as to interest representing scheduled
interest on such payment due on any date or dates in any month or months
subsequent to the month of prepayment.
PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.
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PRINCIPAL REMITTANCE AMOUNT: With respect to any Payment Date and each
Loan Group, the sum of the following:
(i) the principal portion of each previously undistributed
Monthly Payment due after the Cut-off Date received on or prior to the
related Determination Date or advanced prior to such Payment Date
(other than Monthly Payments due after the related Due Period, which
shall be treated as if received during the Due Period they were due) on
each Outstanding Mortgage Loan;
(ii) the principal portion of all proceeds of any Mortgage
Loan repurchased during the related Prepayment Period (or deemed to
have been so repurchased in accordance with the Servicing Agreement)
pursuant to the Servicing Agreement and the amount of any shortfall
deposited in the Collection Account in connection with the substitution
of a Deleted Mortgage Loan pursuant to the Mortgage Loan Purchase
Agreement or Group 1 and Group 2 Subsequent Mortgage Loan Purchase
Agreement during the related Collection Period; and
(iii) the principal portion of all other unscheduled
collections received during the related Prepayment Period (including,
without limitation, Principal Prepayments, Insurance Proceeds,
Liquidation Proceeds, Subsequent Recoveries and REO Proceeds) to the
extent applied by the Master Servicer as recoveries of principal of the
related Mortgage Loan pursuant to the Servicing Agreement; and
(iv) any amount remaining on deposit in the Group 1
Pre-Funding Account and Group 2 Pre-Funding Account at the end of the
Funding Period;
provided, however, that on any Subordinated Transfer Payment Date, the Principal
Remittance Amount for the Undercollateralized Loan Group shall be increased, and
the Principal Remittance Amount for the Overcollateralized Loan Group shall be
reduced, by the Subordinated Payment Transfer Fraction of the amounts determined
pursuant to clauses (1) through (3) above for the Overcollateralized Loan Group.
PROCEEDING: Any suit in equity, action at law or other judicial or
administrative proceeding.
PROSPECTUS: The Prospectus Supplement, dated March 29, 2004, together
with the attached Prospectus, dated March 29, 2004.
PURCHASE PRICE: The meaning specified in Section 2.2(a) of the Mortgage
Loan Purchase Agreement.
PURCHASER: IMH Assets Corp., a California corporation, and its
successors and assigns.
QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance
35
provided by the insurance policy issued by it, approved as an insurer by the
Master Servicer and as a Xxxxxx Xxx-approved mortgage insurer.
RADIAN: Radian Guaranty, Inc., or its successors or assigns.
RADIAN LENDER-PAID PMI POLICY: A lender-paid primary mortgage insurance
policy issued by Xxxxxx in accordance with a March 29, 2002 letter between the
Seller and Xxxxxx.
RADIAN PMI INSURED LOANS: The Mortgage Loans included in the Trust Fund
covered by a Radian Lender-Paid PMI Policy, as indicated on the Mortgage Loan
Schedule.
RADIAN PMI POLICY FEE: With respect to each Radian PMI Insured Loan and
any Payment Date, the product of (i) the Radian PMI Rate divided by 12 and (ii)
the Stated Principal Balance of such Mortgage Loan as of the first day of the
related Due Period.
RADIAN PMI RATE: With respect to any Mortgage Loan covered by the
Radian Lender-Paid PMI Policy, the rate per annum at which the premium with
respect to such policy accrues as indicated in the Mortgage Loan Schedule.
RATING AGENCY: Any nationally recognized statistical rating
organization, or its successor, that rated the Bonds at the request of the
Depositor at the time of the initial issuance of the Bonds. Initially, Standard
& Poor's or Xxxxx'x. If such organization or a successor is no longer in
existence, "Rating Agency" with respect to the Class A Bonds shall be such
nationally recognized statistical rating organization, or other comparable
Person, designated by the Bond Insurer so long as no Bond Insurer Default
exists, notice of which designation shall be given to the Indenture Trustee.
References herein to the highest short term unsecured rating category of a
Rating Agency shall mean A-1 or better in the case of Standard & Poor's and P-1
or better in the case of Xxxxx'x and in the case of any other Rating Agency
shall mean such equivalent ratings. References herein to the highest long-term
rating category of a Rating Agency shall mean "AAA" in the case of Standard &
Poor's and "Aaa" in the case of Xxxxx'x and in the case of any other Rating
Agency, such equivalent rating.
REALIZED LOSS: With respect to each Mortgage Loan (or REO Property) as
to which a Cash Liquidation or REO Disposition has occurred, an amount (not less
than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan (or
REO Property) as of the date of Cash Liquidation or REO Disposition, plus (ii)
interest (and REO Imputed Interest, if any) at the Net Mortgage Rate from the
Due Date as to which interest was last paid or advanced to Bondholders up to the
last day of the month in which the Cash Liquidation (or REO Disposition)
occurred on the Stated Principal Balance of such Mortgage Loan (or REO Property)
outstanding during each Due Period that such interest was not paid or advanced,
minus (iii) the proceeds, if any, received during the month in which such Cash
Liquidation (or REO Disposition) occurred, to the extent applied as recoveries
of interest at the Net Mortgage Rate and to principal of the Mortgage Loan, net
of the portion thereof reimbursable to the Master Servicer or any Subservicer
with respect to related Advances or expenses as to which the Master Servicer or
any Subservicer is entitled to reimbursement thereunder but which have not been
previously reimbursed. 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
36
reduced by the Deficient Valuation. With respect to each Mortgage Loan which has
become the object of a Debt Service Reduction, the amount of such Debt Service
Reduction.
RECORD DATE: With respect to the Grantor Trust Certificates (so long as
such Grantor Trust Certificates remain Book-Entry) and any Book-Entry Bonds,
other than the Class 2-A Bonds, and any Payment Date, the close of business on
the Business Day immediately preceding such Payment Date. With respect to the
Class 2-A Bonds, any Bonds that are not Book-Entry Bonds and any Grantor Trust
Certificates that are no longer Book-Entry, the close of business on the last
Business Day of the calendar month preceding such Payment Date.
REFERENCE BANKS: Any leading banks selected by the Indenture Trustee
after consultation with the Master Servicer and the Bond Insurer and engaged in
transactions in Eurodollar deposits in the international Eurocurrency market (i)
with an established place of business in London, (ii) whose quotations appear on
the Telerate Screen Page 3750 on the Interest Determination Date in question,
(iii) which have been designated as such by the Indenture Trustee after
consultation with the Master Servicer and the Bond Insurer, and (iv) which are
not Affiliates of the Depositor or the Seller.
REGISTERED HOLDER: The Person in whose name a Bond is registered in the
Bond Register on the applicable Record Date.
RELATED DOCUMENTS: With respect to each Mortgage Loan, the documents
specified in Section 2.1(b) of (i) the Mortgage Loan Purchase Agreement (with
respect to the Initial Mortgage Loans) and (ii) the Group 1 or Group 2
Subsequent Mortgage Loan Purchase Agreement (with respect to the Group 1 and
Group 2 Subsequent Mortgage Loans) and any documents required to be added to
such documents pursuant to the Mortgage Loan Purchase Agreement, the Group 1 and
Group 2 Subsequent Mortgage Loan Purchase Agreement, the Trust Agreement,
Indenture or the Servicing Agreement.
RELIEF ACT: The Servicemembers Civil Relief Act, as amended.
RELIEF ACT SHORTFALL: As to any Payment Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property), any shortfalls
relating to the Relief Act or similar legislation or regulations.
REMITTANCE REPORT: The report prepared by the Master Servicer pursuant
to Section 4.01 of the Servicing Agreement.
REO ACQUISITION: The acquisition by the Master Servicer on behalf of
the Indenture Trustee for the benefit of the Bondholders of any REO Property
pursuant to Section 3.13 of the Servicing Agreement.
REO DISPOSITION: As to any REO Property, a determination by the Master
Servicer that it has received substantially all Insurance Proceeds, Liquidation
Proceeds, REO Proceeds and other payments and recoveries (including proceeds of
a final sale) which the Master Servicer expects to be finally recoverable from
the sale or other disposition of the REO Property.
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REO IMPUTED INTEREST: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been Outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period as such balance is reduced pursuant to Section 3.13 of the Servicing
Agreement by any income from the REO Property treated as a recovery of
principal.
REO PROCEEDS: Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the
Collection Account only upon the related REO Disposition.
REO PROPERTY: A Mortgaged Property that is acquired by the Issuer by
foreclosure or by deed in lieu of foreclosure.
REPURCHASE EVENT: With respect to any Mortgage Loan, either (i) a
discovery that, as of the Closing Date, the related Mortgage was not a valid
first lien on the related Mortgaged Property, or (ii) with respect to any
Mortgage Loan as to which the Seller delivers an affidavit certifying that the
original Mortgage Note has been lost or destroyed, a subsequent default on such
Mortgage Loan if the enforcement thereof or of the related Mortgage is
materially and adversely affected by the absence of such original Mortgage Note.
REPURCHASE PRICE: With respect to any Mortgage Loan required to be
repurchased on any date pursuant to the Mortgage Loan Purchase Agreement or any
Group 1 and Group 2 Mortgage Loan Purchase Agreement any purchased by the Master
Servicer pursuant to the Servicing Agreement, an amount equal to the sum,
without duplication, of (i) 100% of the Stated Principal Balance thereof
(without reduction for any amounts charged off) and (ii) unpaid accrued interest
at the Mortgage Rate on the outstanding principal balance thereof from the Due
Date to which interest was last paid by the Mortgagor to the first day of the
month following the month of purchase plus (iii) the amount of unreimbursed
Advances or unreimbursed Servicing Advances made with respect to such Mortgage
Loan plus (iv) any other amounts owed to the Master Servicer or any Subservicer
pursuant to Section 3.07 of the Servicing Agreement and not included in clause
(iii) of this definition.
RESERVE INTEREST RATE: With respect to any Interest Determination Date,
the rate per annum that the Indenture Trustee determines to be either (i) the
arithmetic mean (rounded upwards if necessary to the nearest whole multiple of
0.0625%) of the one-month United States dollar lending rates which New York City
banks selected by the Indenture Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank market or (ii) in the event that the Indenture Trustee can
determine no such arithmetic mean, the lowest one-month United States dollar
lending rate which New York City banks selected by the Indenture Trustee are
quoting on such Interest Determination Date to leading European banks.
RESPONSIBLE OFFICER: With respect to the Indenture Trustee, any officer
of the Indenture Trustee with direct responsibility for the administration of
the Indenture and also, with respect to a particular matter, any other officer
to whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.
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SECURITIES ACT: The Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.
SECURITIES INTERMEDIARY: Deutsche Bank National Trust Company, or its
successors and assigns.
SECURITY: Any of the Certificates or Bonds.
SECURITYHOLDER or HOLDER: Any Bondholder or a Certificateholder.
SECURITY INSTRUMENT: A written instrument creating a valid first lien
or second lien on a Mortgaged Property securing a Mortgage Note, which may be
any applicable form of mortgage, deed of trust, deed to secure debt or security
deed, including any riders or addenda thereto.
SELLER: Impac Mortgage Holdings, Inc., a Maryland corporation, and its
successors and assigns.
SERVICING ACCOUNT: The separate trust account created and maintained by
the Master Servicer or each Subservicer with respect to the Mortgage Loans or
REO Property, which shall be an Eligible Account, for collection of taxes,
assessments, insurance premiums and comparable items as described in Section
3.08 of the Servicing Agreement.
SERVICING ADVANCES: All customary, reasonable and necessary "out of
pocket"costs and expenses incurred in connection with a default, delinquency or
other unanticipated event in the performance by the Master Servicer or any
Subservicer of its servicing obligations, including, without duplication, 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 and 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 and liquidation of any REO Property and (iv) compliance with the
obligations under Sections 3.10, 3.11, 3.13 of the Servicing Agreement.
SERVICING AGREEMENT: The Servicing Agreement dated as of March 30,
2004, among the Master Servicer, the Issuer and the Indenture Trustee.
SERVICING CERTIFICATE: A certificate completed and executed by a
Servicing Officer on behalf of the Master Servicer in accordance with Section
4.01 of the Servicing Agreement.
SERVICING DEFAULT: The meaning assigned in Section 6.01 of the
Servicing Agreement.
SERVICING FEE: The sum of the Master Servicing Fee and the related
Subservicing Fee.
SERVICING FEE RATE: The sum of the Master Servicing Fee Rate and the
related Subservicing Fee Rate.
SERVICING OFFICER: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and specimen signature appear on
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a list of servicing officers furnished to the Indenture Trustee by the Master
Servicer, as such list may be amended from time to time.
SPECIAL CERTIFICATE CAP CONTRACT: The Confirmation together with the
associated ISDA Master Agreement, delivered to the Indenture Trustee on the
Closing Date and attached to the Indenture as Exhibit F, for which amounts
payable shall be distributed in accordance with Section 3.05(n) of the
Indenture.
SPECIAL SERVICER: Any special servicer that may be appointed by the
Master Servicer for the purposes of servicing the Specially Serviced Mortgage
Loans.
SPECIALLY SERVICED MORTGAGE LOAN: Subject to Section 3.23 of the
Servicing Agreement, any Group 3 Loan with respect to which:
(a) the related Mortgagor is 60 or more days delinquent
(without giving effect to any grace period permitted by the related
Mortgage Note) in the payment of a Monthly Payment or other obligation
(regardless of whether, in respect thereof, Advances have been
reimbursed);
(b) such Mortgagor has expressed to the Master Servicer an
inability to pay or a hardship in paying such Group 3 Loan in
accordance with its terms;
(c) the Master Servicer has received notice that such
Xxxxxxxxx has become the subject of any bankruptcy, insolvency or
similar proceeding, admitted in writing the inability to pay its debts
as they come due or made an assignment for the benefit of creditors;
(d) the Master Servicer has received notice of a foreclosure
or threatened foreclosure of any lien on the related Mortgaged
Property;
(e) a default, of which the Master Servicer has notice (other
than a failure by such Mortgagor to pay principal or interest) and
which in the sole judgment of the Master Servicer, materially and
adversely affects the interests of the Bondholders, has occurred and
remained unremedied for the applicable grace period specified in such
Group 3 Loan (or, if no grace period is specified, 60 days); provided,
however, that a default requiring a Servicing Advance shall be deemed
to materially and adversely affect the interests of the Bondholders for
purposes of this definition; or
(f) the Master Servicer proposes to commence foreclosure or
other workout arrangements.
A Group 3 Loan will cease to be a Specially Serviced Mortgage Loan:
(a) with respect to the circumstances described in clause (a)
above, when the related Xxxxxxxxx has brought such Group 3 Loan current
and thereafter made three consecutive full and timely Monthly Payments;
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(b) with respect to the circumstances described in clauses (b)
and (d) above, when such circumstances cease to exist in the good faith
and reasonable judgment of the Master Servicer, or any Special Servicer
on its behalf, and with respect to the circumstances described in
clauses (c) and (f),when such circumstances cease to exist; or
(c) with respect to the circumstances described in clause (e)
above, when such default is cured;
provided, however, in each case that at the time no circumstance identified in
clauses (a) through (f) above exists that would cause the Group 3 Loan to
continue to be characterized as a Specially Serviced Mortgage Loan.
STANDARD & POOR'S: Standard & Poor's, a division of The XxXxxx-Xxxx
Companies, Inc., or its successor in interest.
STATED PRINCIPAL BALANCE: With respect to any Mortgage Loan or related
REO Property as of any date of determination, (i) the principal balance of the
Mortgage Loan outstanding as of the Cut- off Date, after application of all
scheduled Monthly Payments due on or before such date, whether or not received,
minus (ii) the sum of (a) the principal portion of the Monthly Payments due with
respect to such Mortgage Loan or REO Property during each Due Period ending
prior to the most recent Payment Date which were received or with respect to
which an Advance was made, (b) all Principal Prepayments with respect to such
Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation Proceeds
and REO Proceeds to the extent applied by the Master Servicer as recoveries of
principal in accordance with Section 3.13 of the Servicing Agreement with
respect to such Mortgage Loan or REO Property, which were distributed pursuant
to Section 3.05 of the Indenture on any previous Payment Date, and (c) the
principal portion of any Realized Loss with respect thereto allocated pursuant
to Section 3.31 of the Indenture for any previous Payment Date.
STATUTORY TRUST STATUTE: Chapter 38 of Title 12 of the Delaware Code,
12 DEL. Code ss.ss.3801 ET SEQ., as the same may be amended from time to time.
STEP-UP DATE: (1) With respect to the Class 1-A Bonds, Class 2-A Bonds
and Underlying Class M Bonds, the first Payment Date following the earlier of
(i) the first Payment Date for which the aggregate Stated Principal Balance of
the Group 1 Loans and Group 2 Loans as of the end of the related Due Period has
been reduced to 25% or less of the aggregate of the Group 1 Cut-off Date Balance
and Group 2 Cut-off Date Balance and the Original Pre-Funded Amount and (ii) the
Payment Date occurring in April 2014 and (2) with respect to the Group 3 Bonds,
the first Payment Date following the earlier of (i) the first Payment Date for
which the aggregate Stated Principal Balance of the Group 3 Loans as of the end
of the related Due Period has been reduced to 25% or less of the Group 3 Cut-off
Date Balance and (ii) the Payment Date occurring in April 2014.
SUBORDINATED PAYMENT TRANSFER FRACTION: With respect to any
Subordinated Transfer Payment Date, a fraction equal to (x) any Subordinated
Transfer Realized Loss Amount for such Payment Date, divided by (y) the
aggregate Stated Principal Balance of the Mortgage Loans in the
Overcollateralized Loan Group as of the beginning of the related Due Period.
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SUBORDINATED TRANSFER AMOUNT: With respect to any Subordinated
Transfer Payment Date, the principal portion of any amount paid from the
Overcollateralized Loan Group to the Undercollateralized Loan Group.
SUBORDINATED TRANSFER PAYMENT DATE: Any Payment Date on which a
Subordinated Transfer Realized Loss Amount exists for either loan group.
SUBORDINATED TRANSFER REALIZED LOSS AMOUNT: For any Payment Date, the
amount of any Realized Loss on a Mortgage Loan in a Loan Group which has been
allocated on a preceding Payment Date either (a) to the non-related
Overcollateralized Amount or (b) to the non-related Underlying Class M Bonds, to
the extent such Realized Loss has not been reimbursed by related or non-related
Net Monthly Excess Cashflow or by a Subordinated Transfer Amount or otherwise by
an offsetting reduction in the Overcollateralized Amount or in the Bond
Principal Balance of the Bonds of the Undercollateralized Loan Group.
SUBSEQUENT CUT-OFF DATE: With respect to any Group 1 Subsequent
Mortgage Loan, the date, as designated by the Company, that is the later of (i)
the first day of the month in which the related Subsequent Transfer Date occurs
and (ii) the origination date of such Group 1 Subsequent Mortgage Loan, as the
Cut-off Date with respect to the related Group 1 Subsequent Mortgage Loan. With
respect to any Group 2 Subsequent Mortgage Loan, the date, as designated by the
Company, that is the later of (i) the first day of the month in which the
related Subsequent Transfer Date occurs and (ii) the origination date of such
Group 2 Subsequent Mortgage Loan, as the Cut-off Date with respect to the
related Group 2 Subsequent Mortgage Loan.
SUBSEQUENT RECOVERIES: Additional recoveries, net of reimbursable
expenses, with respect to Mortgage Loans that have been previously liquidated
and that resulted in a Realized Loss.
SUBSEQUENT TRANSFER DATE: With respect to any Group 1 Subsequent
Mortgage Loan and Group 2 Subsequent Mortgage Loan , the applicable date upon
which such Mortgage Loan was purchased from the Seller with amounts on deposit
in the Group 1 or Group 2 Pre-Funding Account, as applicable.
SUBSERVICER: Any Person with whom the Master Servicer has entered into
a Subservicing Agreement as a Subservicer and acceptable to the Bond Insurer,
including the Initial Subservicers.
SUBSERVICING ACCOUNT: An Eligible Account established or maintained by
a Subservicer as provided for in Section 3.06(e) of the Servicing Agreement.
SUBSERVICING AGREEMENT: The written contract between the Master
Servicer and any Subservicer relating to servicing and administration of certain
Mortgage Loans as provided in Section 3.02 of the Servicing Agreement.
SUBSERVICING FEE: With respect to each Mortgage Loan and any Payment
Date, the fee payable monthly to the subservicer in respect of servicing
compensation that accrues at an annual rate equal to the Subservicing Fee Rate
multiplied by the Stated Principal Balance of such Mortgage Loan as of the
related Due Date in the related Due Period.
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SUBSERVICING FEE RATE: On each Group 1 Loan, a rate equal to 0.375% per
annum. On each Group 2 Loan, a rate equal to 0.250% per annum. On each Group 3
Loan, a rate equal to 0.170% per annum, with such rate increasing to 0.750% per
annum for any multifamily loan that becomes a Specially Serviced Multifamily
Loan.
SUBSTITUTION ADJUSTMENT AMOUNT: With respect to any Eligible Substitute
Mortgage Loan, the amount as defined in Section 2.03 of the Servicing Agreement.
TELERATE SCREEN PAGE 3750: The display designated as page 3750 on the
Telerate Service (or such other page as may replace page 3750 on that service
for the purpose of displaying London interbank offered rates of major banks).
TREASURY REGULATIONS: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.
TRUST: The Impac CMB Trust Series 2004-3 to be created pursuant to the
Trust Agreement.
TRUST AGREEMENT: The Amended and Restated Trust Agreement dated as of
March 30, 2004, among the Owner Trustee, the Depositor and Deutsche Bank
National Trust Company, as Certificate Registrar and Certificate Paying Agent,
relating to the Trust.
TRUST ESTATE: The meaning specified in the Granting Clause of the
Indenture.
TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.
UCC: The Uniform Commercial Code, as amended from time to time, as in
effect in any specified jurisdiction.
UNDERCOLLATERALIZED AMOUNT: With respect to any Payment Date, other
than a Subordinated Transfer Payment Date, and either Loan Group, the excess, if
any, of (x) the aggregate Bond Principal Balance of the related Bonds (after
giving effect to distributions to such Bonds of the related Basic Principal
Distribution Amount on such Payment Date), over (y) the aggregate Stated
Principal Balance of the related 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 after reduction for Realized Losses on the
related Mortgage Loans incurred during the related Prepayment Period).
For any Subordinated Transfer Payment Date and the Overcollateralized
Loan Group, the amount, if any, by which (i) the sum of (x) the aggregate Bond
Principal Balance of the related Bonds (after giving effect to distributions to
such Bonds of the related Basic Principal Distribution Amount on such Payment
Date) and (y) the Subordinated Transfer Realized Loss Amount, exceeds (ii) the
aggregate Stated Principal Balance of the related Mortgage Loans (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or
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advanced, and unscheduled collections of principal received during the related
Prepayment Period, and after reduction for Realized Losses on the related
Mortgage Loans incurred during the related Prepayment Period).
For any Subordinated Transfer Payment Date and the Undercollateralized
Loan Group, the amount, if any, by which (i)(x) the aggregate Bond Principal
Balance of the related Bonds (after giving effect to distributions to such Bonds
of the related Basic Principal Distribution Amount on such Payment Date) minus
(y) the Subordinated Transfer Realized Loss Amount, exceeds (ii) the aggregate
Stated Principal Balance of the related 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 after reduction for Realized Losses on the
related Mortgage Loans incurred during the related Prepayment Period).
UNDERCOLLATERALIZED LOAN GROUP: With respect to any Payment Date, a
Loan Group which can benefit from the payment of a Subordinated Transfer
Realized Loss Amount.
UNDERLYING CLASS M BONDS: The Class M-1-1, Class M-1-2, Class M-2-1,
Class M-2-2, Class M-3-1, Class M-3-2, Class M-4-1, Class M-4-2, Class M-5-1,
Class M-5-2, Class M-6-1 and Class M-6-2 Bonds in the form attached as Exhibit
A-2 to the Indenture.
UNDERWRITERS: Countrywide Securities Corporation and Xxxxxxx Lynch,
Xxxxxx, Xxxxxx & Xxxxx Incorporated, or their successors.
UNINSURED CAUSE: Any cause of damage to property subject to a Mortgage
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies.
UNPAID INTEREST SHORTFALL: For each Class of Bonds and any Payment
Date, such Bonds' pro rata share, based on the amount of Accrued Bond Interest
otherwise payable on such Bond on such Payment Date, of (a) any Prepayment
Interest Shortfalls, to the extent not covered by Compensating Interest, and (b)
any Relief Act Shortfalls, plus interest on the amount of previously allocated
Unpaid Interest Shortfall on such Class of Bonds which remains unreimbursed, at
the Bond Interest Rate for such Class for the related Accrual Period.
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