Common use of Allocation of Realized Losses and Additional Trust Fund Expenses Clause in Contracts

Allocation of Realized Losses and Additional Trust Fund Expenses. (a) On each Distribution Date, following all distributions to be made on such date pursuant to Section 4.01, the Certificate Administrator shall allocate to the respective Classes of Principal Balance Certificates as follows the aggregate of all Realized Losses and Additional Trust Fund Expenses that were incurred at any time following the Cut-off Date through the end of the related Collection Period or Underlying Collection Period, as applicable, and in any event that were not previously allocated pursuant to this Section 4.04(a) on any prior Distribution Date, but only to the extent that (i) the aggregate of the Class Principal Balances of the Principal Balance Certificates as of such Distribution Date (after taking into account all of the distributions made on such Distribution Date pursuant to Section 4.01), exceeds (ii) the aggregate Stated Principal Balance of, and any Unliquidated Advances with respect to, the Mortgage Pool that will be outstanding immediately following such Distribution Date: first, sequentially, to the Class T Certificates, the Class S Certificates, the Class Q Certificates, the Class P Certificates, the Class N Certificates, the Class M Certificates, the Class L Certificates, the Class K Certificates, the Class J Certificates, the Class H Certificates, the Class G Certificates, the Class F Certificates, the Class E Certificates, the Class D Certificates, the Class C Certificates and the Class B Certificates, in that order, in each case until the remaining Class Principal Balance thereof is reduced to zero; second, pro rata (based on remaining Class Principal Balances) to the Class AM and Class AM-A Certificates until the respective Class Principal Balances thereof are reduced to zero; third, pro rata (based on remaining Class Principal Balances) to the Class AJ and Class AJ-A Certificates until the respective Class Principal Balances thereof are reduced to zero; and then, pro rata (based on remaining Class Principal Balances) to the Class A-1, Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class A-SB, Class A-4 and Class A-1A Certificates until the respective Class Principal Balances thereof are reduced to zero. Any allocation of Realized Losses and Additional Trust Fund Expenses to a Class of Principal Balance Certificates shall be made by reducing the Class Principal Balance thereof by the amount so allocated. All Realized Losses and Additional Trust Fund Expenses, if any, allocated to a Class of Principal Balance Certificates shall be allocated among the respective Certificates of such Class in proportion to the Percentage Interests evidenced thereby. All Realized Losses and Additional Trust Fund Expenses, if any, that have not been allocated to the Principal Balance Certificates as of the Distribution Date on which the aggregate of the Class Principal Balances of the Principal Balance Certificates has been reduced to zero, shall be deemed allocated to the Residual Certificates. If and to the extent any Nonrecoverable Advances (and/or interest thereon) that were reimbursed from principal collections on the Mortgage Pool and previously resulted in a reduction of the Principal Distribution Amount are subsequently recovered on the related Trust Mortgage Loan or Trust REO Loan, then, on the Distribution Date immediately following the Collection Period in which such recovery occurs, the Class Principal Balances of the respective Classes of Principal Balance Certificates shall be increased, in the reverse order from which Realized Losses and Additional Trust Fund Expenses are allocated pursuant to Section 4.04(a), by the amount of any such recoveries that are included in the Principal Distribution Amount for the current Distribution Date; provided, however, that, in any case, the Class Principal Balance of a Class of Principal Balance Certificates shall in no event be increased by more than the amount of unreimbursed Realized Losses and Additional Trust Fund Expenses previously allocated thereto (which unreimbursed Realized Losses and Additional Trust Fund Expenses shall be reduced by the amount of the increase in such Class Principal Balance); and provided, further, that the aggregate increase in the Class Principal Balances of the respective Classes of the Principal Balance Certificates on any Distribution Date shall not exceed the excess, if any, of (1) the aggregate Stated Principal Balance of, and all Unliquidated Advances with respect to, the Mortgage Pool that will be outstanding immediately following such Distribution Date, over (2) the aggregate of the Class Principal Balances of the respective Classes of the Principal Balance Certificates outstanding immediately following the distributions to be made on such Distribution Date, but prior to any such increase in any of those Class Principal Balances. If the Class Principal Balance of any Class of Principal Balance Certificates is so increased, the amount of unreimbursed Realized Losses and/or Additional Trust Fund Expenses considered to be allocated to such Class shall be decreased by such amount. (b) If the Class Principal Balance of any Class of Principal Balance Certificates is reduced on any Distribution Date pursuant to the first paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been reduced on such Distribution Date by the exact same amount. If a Class of Principal Balance Certificates has two or more Corresponding REMIC I Regular Interests, then the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests shall be reduced as contemplated by the preceding sentence in the same sequential order that principal distributions are deemed made on such Corresponding REMIC I Regular Interests pursuant to Section 4.01(i), such that no reduction shall be made in the REMIC I Principal Balance of any such Corresponding REMIC I Regular Interest pursuant to this Section 4.04(b) until the REMIC I Principal Balance of each other such Corresponding REMIC I Regular Interest, if any, with an alphanumeric designation that ends in a lower number, has been reduced to zero. Any and all such reductions in the REMIC I Principal Balances of the respective REMIC I Regular Interests shall be deemed to constitute allocations of Realized Losses and Additional Trust Fund Expenses thereto. If the Class Principal Balance of any Class of Principal Balance Certificates is increased on any Distribution Date pursuant to the second paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been increased on such Distribution Date by the exact same amount. In circumstances where there are multiple Corresponding REMIC I Regular Interests with respect to a Class of Principal Balance Certificates, the increases in the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests as contemplated by the prior sentence shall be made in the reverse order that reductions are made to such REMIC I Principal Balances pursuant to the prior paragraph of this Section 4.04(b), in each case up to the amount of the remaining unreimbursed Realized Losses and Additional Trust Fund Expenses previously deemed allocated to the subject REMIC I Regular Interest. (c) On each Distribution Date, following any deemed distributions to be made in respect of the Loan REMIC Regular Interest(s) pursuant to Section 4.01(l), the Loan REMIC Principal Balance of each Loan REMIC Regular Interest (after taking account of such deemed distributions) shall be reduced to equal the Stated Principal Balance of the related Trust Early Defeasance Mortgage Loan or any successor Trust REO Loan with respect thereto, as the case may be, that will be outstanding immediately following such Distribution Date. Any such reductions in the Loan REMIC Principal Balance of each Loan REMIC Regular Interest shall be deemed to constitute an allocation of Realized Losses and Additional Trust Fund Expenses.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (ML-CFC Commercial Mortgage Trust 2007-9)

Allocation of Realized Losses and Additional Trust Fund Expenses. (a) On each Distribution Date, following all the distributions to Certificateholders to be made on such date pursuant to Section SECTIONS 4.01, the Certificate Administrator Trustee shall allocate to determine the respective Classes of Principal Balance Certificates as follows the aggregate of all Realized Losses and Additional Trust Fund Expenses that were incurred at any time following the Cut-off Date through the end of the related Collection Period or Underlying Collection Periodamount, as applicableif any, and in any event that were not previously allocated pursuant to this Section 4.04(a) on any prior Distribution Date, but only to the extent that by which (i) the then aggregate of the Class Principal Balances of all the Classes of Principal Balance Certificates as of such Distribution Date (after taking into account all of the distributions made on such Distribution Date pursuant to Section 4.01)Certificates, exceeds (ii) the aggregate Stated Principal Balance of, and any Unliquidated Advances with respect to, of the Mortgage Pool that will be outstanding immediately following such Distribution Date: first. If such excess does exist, sequentially, to the Class T Certificates, the Class S Certificates, the Class Q Certificates, the Class P Certificates, the Class N Certificates, the Class M Certificates, the Class L Certificates, the Class K Certificates, the Class J Certificates, the Class H Certificates, the Class G Certificates, the Class F Certificates, the Class E Certificates, the Class D Certificates, the Class C Certificates and the Class B Certificates, in that order, in each case until the remaining Class Principal Balance thereof is reduced to zero; second, pro rata (based on remaining Class Principal Balances) to the Class AM and Class AM-A Certificates until then the respective Class Principal Balances thereof are reduced to zero; third, pro rata (based on remaining Class Principal Balances) to the Class AJ and Class AJ-A Certificates until the respective Class Principal Balances thereof are reduced to zero; and then, pro rata (based on remaining Class Principal Balances) to the Class A-1, Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class A-SB, Class A-4 and Class A-1A Certificates until the respective Class Principal Balances thereof are reduced to zero. Any allocation of Realized Losses and Additional Trust Fund Expenses to a Class of Principal Balance Certificates shall be made by reducing the Class Principal Balance thereof by the amount so allocated. All Realized Losses and Additional Trust Fund Expenses, if any, allocated to a Class of Principal Balance Certificates shall be allocated among the respective Certificates of such Class in proportion to the Percentage Interests evidenced thereby. All Realized Losses and Additional Trust Fund Expenses, if any, that have not been allocated to the Principal Balance Certificates as of the Distribution Date on which the aggregate of the Class Principal Balances of the Principal Balance Certificates has been will be reduced sequentially, in the following order, until such excess is reduced to zero, shall be deemed allocated to the Residual Certificates. If and to the extent any Nonrecoverable Advances (and/or interest thereon) that were reimbursed from principal collections on the Mortgage Pool and previously resulted in a reduction of the Principal Distribution Amount are subsequently recovered on the related Trust Mortgage Loan or Trust REO Loan, then, on the Distribution Date immediately following the Collection Period in which such recovery occurs, the Class Principal Balances of the respective Classes of Principal Balance Certificates shall be increased, in the reverse order from which Realized Losses and Additional Trust Fund Expenses are allocated pursuant to Section 4.04(a), by the amount of any such recoveries that are included in the Principal Distribution Amount for the current Distribution Date; provided, however, that, in any case: FIRST, the Class Principal Balance of a the Class of Principal Balance Certificates shall in no event be increased by more than the amount of unreimbursed Realized Losses and Additional Trust Fund Expenses previously allocated thereto (which unreimbursed Realized Losses and Additional Trust Fund Expenses shall be reduced by the amount of the increase in O Certificates, until such Class Principal BalanceBalance is reduced to zero; SECOND, the Class Principal Balance of the Class N Certificates, until such Class Principal Balance is reduced to zero; THIRD, the Class Principal Balance of the Class M Certificates, until such Class Principal Balance is reduced to zero; FOURTH, the Class Principal Balance of the Class L Certificates, until such Class Principal Balance is reduced to zero; FIFTH, the Class Principal Balance of the Class K Certificates, until such Class Principal Balance is reduced to zero; SIXTH, the Class Principal Balance of the Class J Certificates, until such Class Principal Balance is reduced to zero; SEVENTH, the Class Principal Balance of the Class H Certificates, until such Class Principal Balance is reduced to zero; EIGHTH, the Class Principal Balance of the Class G Certificates, until such Class Principal Balance is reduced to zero; NINTH, the Class Principal Balance of the Class F Certificates, until such Class Principal Balance is reduced to zero; TENTH, the Class Principal Balance of the Class E Certificates, until such Class Principal Balance is reduced to zero; ELEVENTH, the Class Principal Balance of the Class D Certificates, until such Class Principal Balance is reduced to zero; TWELFTH, the respective Class Principal Balances of the Class C-1 Certificates and Class C-2 Certificates (on a PRO RATA basis in accordance with the relative sizes of such Class Principal Balances then outstanding), until such Class Principal Balances are reduced to zero; THIRTEENTH, the Class Principal Balance of the Class B Certificates, until such Class Principal Balance is reduced to zero; and providedFOURTEENTH, furtherthe respective Class Principal Balances of the Class A-1 Certificates, that the aggregate increase Class A-2 Certificates and the Class A-3 Certificates (on a PRO RATA basis in accordance with the relative sizes of such Class Principal Balances), until such Class Principal Balances are reduced to zero. All such reductions in the Class Principal Balances of the respective Classes of the Principal Balance Certificates shall constitute allocations of Realized Losses and Additional Trust Fund Expenses. (b) On each Distribution Date, the Uncertificated Principal Balance of each REMIC II Regular Interest shall be deemed to have been reduced in the same amount as any reduction in the Class Principal Balance of the Corresponding Class of Principal Balance Certificates for such REMIC II Regular Interest that occurred on any such Distribution Date pursuant to SECTION 4.04(a); PROVIDED that any reduction in the Class Principal Balance of the Class A-3 Certificates shall not exceed be deemed to have first been applied in reduction of the excessUncertificated Principal Balance of REMIC II Regular Interest A-3-1 and, once such Uncertificated Principal Balance is reduced to zero, then in reduction of the Uncertificated Principal Balance of REMIC II Regular Interest A-3-2. All such reductions in the Uncertificated Principal Balances of the respective REMIC II Regular Interests shall be deemed to constitute allocations of Realized Losses and Additional Trust Fund Expenses. (c) On each Distribution Date, following the deemed distributions to be made in respect of the REMIC I Regular Interests pursuant to SECTION 4.01(l), the Uncertificated Principal Balance of each Group PB REMIC I Regular Interest (after taking account of such deemed distributions) shall be reduced to the extent necessary to equal the Stated Principal Balance of the related Mortgage Loan or REO Loan, as the case may be (or, if anyapplicable in cases involving the substitution of multiple Replacement Mortgage Loans, of (1) the aggregate Stated Principal Balance ofof each and every related Mortgage Loan and/or REO Loan, and all Unliquidated Advances with respect toas the case may be), the Mortgage Pool that will be outstanding immediately following such Distribution Date, over (2) . All such reductions in the aggregate of the Class Uncertificated Principal Balances of the respective Classes of the Principal Balance Certificates outstanding immediately following the distributions to be made on such Distribution Date, but prior to any such increase in any of those Class Principal Balances. If the Class Principal Balance of any Class of Principal Balance Certificates is so increased, the amount of unreimbursed Realized Losses and/or Additional Trust Fund Expenses considered to be allocated to such Class shall be decreased by such amount. (b) If the Class Principal Balance of any Class of Principal Balance Certificates is reduced on any Distribution Date pursuant to the first paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been reduced on such Distribution Date by the exact same amount. If a Class of Principal Balance Certificates has two or more Corresponding REMIC I Regular Interests, then the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests shall be reduced as contemplated by the preceding sentence in the same sequential order that principal distributions are deemed made on such Corresponding REMIC I Regular Interests pursuant to Section 4.01(i), such that no reduction shall be made in the REMIC I Principal Balance of any such Corresponding REMIC I Regular Interest pursuant to this Section 4.04(b) until the REMIC I Principal Balance of each other such Corresponding REMIC I Regular Interest, if any, with an alphanumeric designation that ends in a lower number, has been reduced to zero. Any and all such reductions in the REMIC I Principal Balances of the respective Group PB REMIC I Regular Interests shall be deemed to constitute allocations of Realized Losses and Additional Trust Fund Expenses thereto. If the Class Principal Balance of any Class of Principal Balance Certificates is increased on any Distribution Date pursuant to the second paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been increased on such Distribution Date by the exact same amount. In circumstances where there are multiple Corresponding REMIC I Regular Interests with respect to a Class of Principal Balance Certificates, the increases in the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests as contemplated by the prior sentence shall be made in the reverse order that reductions are made to such REMIC I Principal Balances pursuant to the prior paragraph of this Section 4.04(b), in each case up to the amount of the remaining unreimbursed Realized Losses and Additional Trust Fund Expenses previously deemed allocated to the subject REMIC I Regular InterestExpenses. (cd) On each Distribution Date, following any the deemed distributions to be made in respect of the Loan REMIC Regular Interest(s) Interest pursuant to Section 4.01(lSECTION 4.01(m), the Loan REMIC Uncertificated Principal Balance of each the Loan REMIC Regular Interest (after taking account of such deemed distributions) shall be reduced to the extent necessary (if at all) to equal the Stated Principal Balance of the related Trust Early Defeasance ▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ Mortgage Loan, any Replacement Mortgage Loan(s) substituted for the ▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ Mortgage Loan or and/or any successor Trust REO Loan Loan(s) with respect thereto, as to the case may be, that will be outstanding immediately following such Distribution Dateforegoing. Any All such reductions in the Loan REMIC Uncertificated Principal Balance of each the Loan REMIC Regular Interest shall be deemed to constitute an allocation allocations of Realized Losses and Additional Trust Fund Expenses.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Credit Suisse First Boston Mortgage Securities Corp)

Allocation of Realized Losses and Additional Trust Fund Expenses. (a) On each Distribution Date, following all distributions to be made on such date pursuant to Section 4.01the Trustee shall determine the amount, the Certificate Administrator shall allocate to the respective Classes of Principal Balance Certificates as follows the aggregate of all Realized Losses and Additional Trust Fund Expenses that were incurred at any time following the Cut-off Date through the end of the related Collection Period or Underlying Collection Periodif any, as applicable, and in any event that were not previously allocated pursuant to this Section 4.04(a) on any prior Distribution Date, but only to the extent that by which (i) the then aggregate Certificate Principal Balance of the Sequential Pay Certificates and the Class Principal Balances of the Principal Balance Certificates as of such Distribution Date (after taking into account all of the distributions made on such Distribution Date pursuant to Section 4.01), A-2FL and Class A-JFL Regular Interests exceeds (ii) the aggregate Stated Principal Balance of, and any Unliquidated Advances with respect to, of the Mortgage Pool that will be outstanding immediately following such Distribution Date: firstDate (provided, sequentiallyhowever, to the Class T Certificatesfor purposes of this calculation, the Class S Certificates, the Class Q Certificates, the Class P Certificates, the Class N Certificates, the Class M Certificates, the Class L Certificates, the Class K Certificates, the Class J Certificates, the Class H Certificates, the Class G Certificates, the Class F Certificates, the Class E Certificates, the Class D Certificates, the Class C Certificates and the Class B Certificates, in that order, in each case until the remaining Class Principal Balance thereof is reduced to zero; second, pro rata (based on remaining Class Principal Balances) to the Class AM and Class AMany Workout-A Certificates until the respective Class Principal Balances thereof are reduced to zero; third, pro rata (based on remaining Class Principal Balances) to the Class AJ and Class AJ-A Certificates until the respective Class Principal Balances thereof are reduced to zero; and then, pro rata (based on remaining Class Principal Balances) to the Class A-1, Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class A-SB, Class A-4 and Class A-1A Certificates until the respective Class Principal Balances thereof are reduced to zero. Any allocation of Realized Losses and Additional Trust Fund Expenses to a Class of Principal Balance Certificates shall be made by reducing the Class Principal Balance thereof by the amount so allocated. All Realized Losses and Additional Trust Fund Expenses, if any, allocated to a Class of Principal Balance Certificates shall be allocated among the respective Certificates of such Class in proportion to the Percentage Interests evidenced thereby. All Realized Losses and Additional Trust Fund Expenses, if any, that have not been allocated to the Principal Balance Certificates as of the Distribution Date on which the aggregate of the Class Principal Balances of the Principal Balance Certificates has been reduced to zero, shall be deemed allocated to the Residual Certificates. If and to the extent any Nonrecoverable Advances (and/or interest thereon) that were reimbursed Delayed Reimbursement Amounts paid from principal collections on the Mortgage Pool and previously resulted in shall for purposes of this calculation be deemed to still be outstanding unless the related Unliquidated Advance has been determined to be a reduction of the Principal Distribution Amount are subsequently recovered Nonrecoverable Advance on the related Trust Serviced Loan or a Final Determination has been made with respect to the related Serviced Loan or the related Mortgage Loan or Trust REO LoanProperty is otherwise liquidated or disposed). If such excess does exist, then, on the Distribution Date immediately following the Collection Period in which such recovery occurs, then the Class Principal Balances of the respective Classes of Principal Balance Class S Certificates, Class Q Certificates, Class P Certificates, Class O Certificates, Class N Certificates, Class M Certificates, Class L Certificates, Class K Certificates, Class J Certificates, Class H Certificates, Class G Certificates, Class F Certificates, Class E Certificates, Class D Certificates, Class C Certificates, Class B Certificates, Class A-J Certificates, Class A-JFL Regular Interest and Class A-M Certificates shall be increasedreduced sequentially, in the reverse that order from which Realized Losses and Additional Trust Fund Expenses are allocated pursuant to Section 4.04(a), by the amount of any such recoveries that are included in the Principal Distribution Amount for the current Distribution Date; provided, however, that, in any each case, until such excess or the related Class Principal Balance is reduced to zero (whichever occurs first); provided that the Class A-J Certificates and Class A-JFL Regular Interest are pro rata. If, after the foregoing reductions, the amount described in clause (i) of a the second preceding sentence still exceeds the amount described in clause (ii) of the second preceding sentence, then the respective Class Principal Balances of Principal Balance the Class A-1 Certificates, Class A-2 Certificates, Class A -2FL Regular Interest, Class A-3 Certificates, Class A-AB Certificates, Class A-4 Certificates and Class A-1A Certificates shall be reduced, pro rata, in no event be increased by more than accordance with the amount of unreimbursed Realized Losses and Additional Trust Fund Expenses previously allocated thereto (which unreimbursed Realized Losses and Additional Trust Fund Expenses shall be reduced by the amount relative sizes of the increase in then outstanding Class Principal Balances of such Classes, until such excess or each such Class Principal BalanceBalance is reduced to zero (whichever occurs first); and provided, further, that the aggregate increase . Such reductions in the Class Principal Balances of the respective Classes of the Principal Balance Sequential Pay Certificates on any Distribution Date shall not exceed the excess, if any, of (1) the aggregate Stated Principal Balance of, and all Unliquidated Advances with respect to, the Mortgage Pool that will be outstanding immediately following such Distribution Date, over (2) the aggregate of the Class Principal Balances of the respective Classes of the Principal Balance Certificates outstanding immediately following the distributions to be made on such Distribution Date, but prior to any such increase in any of those A-2FL and Class Principal Balances. If the Class Principal Balance of any Class of Principal Balance Certificates is so increased, the amount of unreimbursed Realized Losses and/or Additional Trust Fund Expenses considered to be allocated to such Class shall be decreased by such amount. (b) If the Class Principal Balance of any Class of Principal Balance Certificates is reduced on any Distribution Date pursuant to the first paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been reduced on such Distribution Date by the exact same amount. If a Class of Principal Balance Certificates has two or more Corresponding REMIC I Regular Interests, then the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests shall be reduced as contemplated by the preceding sentence in the same sequential order that principal distributions are deemed made on such Corresponding REMIC I Regular Interests pursuant to Section 4.01(i), such that no reduction shall be made in the REMIC I Principal Balance of any such Corresponding REMIC I Regular Interest pursuant to this Section 4.04(b) until the REMIC I Principal Balance of each other such Corresponding REMIC I Regular Interest, if any, with an alphanumeric designation that ends in a lower number, has been reduced to zero. Any and all such reductions in the REMIC I Principal Balances of the respective REMIC I A-JFL Regular Interests shall be deemed to constitute be allocations of Realized Losses and Additional Trust Fund Expenses thereto. If Expenses, to the Class Principal Balance extent not covered by reductions in distributions of any Class of Principal Balance Certificates is increased on any Distribution Date interest pursuant to the second paragraph of allocations set forth in Section 4.01(b). (b) With respect to any Distribution Date, any Realized Losses or Additional Trust Fund Expenses allocated pursuant to Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed with respect to have first been increased on such Distribution Date by shall reduce the exact same amount. In circumstances where there are multiple Corresponding REMIC I Regular Interests with respect to a Class of Principal Balance Certificates, the increases in the respective REMIC I Principal Balances of such Corresponding the REMIC I Regular Interests as contemplated by the prior sentence a write-off and shall be made in allocated among the reverse order that reductions are made to such REMIC I Principal Balances pursuant to the prior paragraph of this Section 4.04(b), in each case up to the amount of the remaining unreimbursed Realized Losses and Additional Trust Fund Expenses previously deemed allocated to the subject REMIC I Regular Interest. (c) On each Distribution Date, following any deemed distributions to be made Interests in respect of the Loan REMIC Regular Interest(s) pursuant to Section 4.01(l), the Loan REMIC Principal Balance of each Loan REMIC Regular Interest (after taking account of such deemed distributions) shall be reduced to equal the Stated Principal Balance of the related Trust Early Defeasance Mortgage Loan or any successor Trust REO Loan with respect thereto, same priority as the case may be, that will be outstanding immediately following such Distribution Date. Any such reductions in the Loan REMIC Principal Balance Class of each Loan REMIC Regular Interest shall be deemed to constitute an allocation of Realized Losses and Additional Trust Fund ExpensesCorresponding Certificates.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Banc of America Commercial Mortgage Inc., Series 2007-2)

Allocation of Realized Losses and Additional Trust Fund Expenses. (a) On each Distribution Date, following all the distributions to Certificateholders to be made on such date pursuant to Section 4.01, the Certificate Administrator Trustee shall allocate to determine the respective Classes of Principal Balance Certificates as follows the aggregate of all Realized Losses and Additional Trust Fund Expenses that were incurred at any time following the Cut-off Date through the end of the related Collection Period or Underlying Collection Periodamount, as applicableif any, and in any event that were not previously allocated pursuant to this Section 4.04(a) on any prior Distribution Date, but only to the extent that by which (i) the then aggregate of the Class Principal Balances of all the Classes of Principal Balance Certificates as of such Distribution Date (after taking into account all of the distributions made on such Distribution Date pursuant to Section 4.01), exceeds (ii) the aggregate Stated Principal Balance of, and any Unliquidated Advances with respect to, of the Mortgage Pool that will be outstanding immediately following such Distribution Date: first. If such excess does exist, sequentially, to then the Class T Certificates, Principal Balances of the Class S CertificatesP, the Class Q CertificatesO, the Class P CertificatesN, the Class N CertificatesM, the Class M CertificatesL, the Class L CertificatesK, the Class K CertificatesJ, the Class J CertificatesH, the Class H CertificatesG, the Class G CertificatesF, the Class F CertificatesE, the Class E CertificatesD, the Class D CertificatesC, the Class C Certificates and the Class B CertificatesCertificates shall be reduced sequentially, in that order, in each case case, until such excess or the remaining related Class Principal Balance thereof is reduced to zero; secondzero (whichever occurs first), pro rata (based on remaining Class Principal Balances) and then to the Class AM and Class AMA-A J Certificates until such excess or the related Class Principal Balance is reduced to zero (whichever occurs first), and then to the Class A-M Certificates until such excess or the related Class Principal Balance is reduced to zero (whichever occurs first). If, after the foregoing reductions, the amount described in clause (i) of the second preceding sentence still exceeds the amount described in clause (ii) of such sentence, then the respective Class Principal Balances thereof are reduced to zero; third, pro rata (based on remaining Class Principal Balances) to of all the Class AJ and Class AJ-A Certificates until the respective Class Principal Balances thereof are reduced to zero; and then, pro rata (based on remaining Class Principal Balances) to outstanding Classes of the Class A-1, Class ▇-▇A-2, ▇▇▇▇▇ ▇-▇Class A-3, Class A-SBPB, Class A-4 and Class A-1A Certificates until shall be reduced on a pro rata basis in accordance with the respective relative sizes of such Class Principal Balances thereof are Balances, until any such remaining excess is reduced to zero. Any allocation of Realized Losses and Additional Trust Fund Expenses to a Class of Principal Balance Certificates shall be made by reducing the Class Principal Balance thereof by the amount so allocated. All Realized Losses and Additional Trust Fund Expenses, if any, allocated to a Class of Principal Balance Certificates shall be allocated among the respective Certificates of such Class in proportion to the Percentage Interests evidenced thereby. All Realized Losses and Additional Trust Fund Expenses, if any, that have not been allocated to the Principal Balance Certificates as of the Distribution Date on which the aggregate of the Class Principal Balances of the Principal Balance Certificates has been reduced to zero, shall be deemed allocated to the Residual Certificates. If and to the extent any Nonrecoverable Advances (and/or interest thereon) that were reimbursed from principal collections on the Mortgage Pool and previously resulted in a reduction of the Principal Distribution Amount are subsequently recovered on the related Trust Mortgage Loan or Trust REO Loan, then, on the Distribution Date immediately following the Collection Period in which such recovery occurs, the Class Principal Balances of the respective Classes of Principal Balance Certificates shall be increased, in the reverse order from which Realized Losses and Additional Trust Fund Expenses are allocated pursuant to Section 4.04(a), by the amount of any such recoveries that are included in the Principal Distribution Amount for the current Distribution Date; provided, however, that, in any case, the Class Principal Balance of a Class of Principal Balance Certificates shall in no event be increased by more than the amount of unreimbursed Realized Losses and Additional Trust Fund Expenses previously allocated thereto (which unreimbursed Realized Losses and Additional Trust Fund Expenses shall be reduced by the amount of the increase in such Class Principal Balance); and provided, further, that the aggregate increase reductions in the Class Principal Balances of the respective Classes of the Principal Balance Certificates on any Distribution Date shall not exceed the excess, if any, of (1) the aggregate Stated Principal Balance of, and all Unliquidated Advances with respect to, the Mortgage Pool that will be outstanding immediately following such Distribution Date, over (2) the aggregate of the Class Principal Balances of the respective Classes of the Principal Balance Certificates outstanding immediately following the distributions to be made on such Distribution Date, but prior to any such increase in any of those Class Principal Balances. If the Class Principal Balance of any Class of Principal Balance Certificates is so increased, the amount of unreimbursed Realized Losses and/or Additional Trust Fund Expenses considered to be allocated to such Class shall be decreased by such amount. (b) If the Class Principal Balance of any Class of Principal Balance Certificates is reduced on any Distribution Date pursuant to the first paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been reduced on such Distribution Date by the exact same amount. If a Class of Principal Balance Certificates has two or more Corresponding REMIC I Regular Interests, then the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests shall be reduced as contemplated by the preceding sentence in the same sequential order that principal distributions are deemed made on such Corresponding REMIC I Regular Interests pursuant to Section 4.01(i), such that no reduction shall be made in the REMIC I Principal Balance of any such Corresponding REMIC I Regular Interest pursuant to this Section 4.04(b) until the REMIC I Principal Balance of each other such Corresponding REMIC I Regular Interest, if any, with an alphanumeric designation that ends in a lower number, has been reduced to zero. Any and all such reductions in the REMIC I Principal Balances of the respective REMIC I Regular Interests shall be deemed to constitute allocations of Realized Losses and Additional Trust Fund Expenses thereto. If Expenses. (b) On each Distribution Date, following the Class Principal Balance deemed distributions of any Class principal or in reimbursement of Principal Balance Certificates is increased on any Distribution Date pursuant to the second paragraph of Section 4.04(a), then the REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interest (or, if applicable, the aggregate REMIC I Principal Balance of such Class's Corresponding REMIC I Regular Interests) shall be deemed to have first been increased on such Distribution Date by the exact same amount. In circumstances where there are multiple Corresponding REMIC I Regular Interests with respect to a Class of Principal Balance Certificates, the increases in the respective REMIC I Principal Balances of such Corresponding REMIC I Regular Interests as contemplated by the prior sentence shall be made in the reverse order that reductions are made to such REMIC I Principal Balances pursuant to the prior paragraph of this Section 4.04(b), in each case up to the amount of the remaining unreimbursed previously allocated Realized Losses and Additional Trust Fund Expenses previously deemed allocated to the subject REMIC I Regular Interest. (c) On each Distribution Date, following any deemed distributions to be made in respect of the Loan REMIC Regular Interest(s) Uncertificated Lower-Tier Interests pursuant to Section 4.01(l4.01(i), the Loan REMIC Uncertificated Principal Balance of each Loan REMIC Regular Interest the Corresponding Uncertificated Lower-Tier Interests (after taking account of such deemed distributions) shall be reduced as a result of Realized Losses and Additional Trust Fund Expenses to equal the Stated Class Principal Balance of the related Trust Early Defeasance Mortgage Loan or any successor Trust REO Loan with respect thereto, as the case may be, Class of Corresponding Certificates that will be outstanding immediately following such Distribution Date. Any such reductions in the Loan REMIC Principal Balance of each Loan REMIC Regular Interest shall be deemed to constitute an allocation of Realized Losses and Additional Trust Fund Expenses.

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Sources: Pooling and Servicing Agreement (COBALT CMBS Commercial Mortgage Trust 2007-C3)