Common use of Designation of the Securities Clause in Contracts

Designation of the Securities. (a) The Securities shall consist of one or more Series, with each Series consisting of one or more Subclasses of one or more Classes. The designation and terms of each Subclass of any additional Classes of Securities shall be provided for in one or more Trust Agreement Supplements. Subject to Section 3.23, the Trustee shall execute, and shall cause the Certificate Registrar to authenticate and deliver, to or upon the order of the Depositor on the Closing Date, and to or upon the order of the Person indicated in the related Trust Agreement Supplement in respect of any Additional Securities, the Securities in authorized denominations evidencing the entire ownership of the Trust Fund, as from time to time may be increased by a Trust Agreement Supplement to reflect any Mortgage Loan Increase. (b) Each Subclass of Securities shall have a Subclass Principal Balance as provided for in one or more Trust Agreement Supplements. On each Distribution Date, the principal balance of each Subclass of Securities shall be permanently reduced by the amount of any distributions of principal made in respect of such Subclass of Securities on such Distribution Date pursuant to Section 4.01(a) and any Realized Losses allocated to such Subclass on such Distribution Date pursuant to Section 4.04 and shall not otherwise be increased or decreased; provided that the principal balance of each Subclass of Securities shall equal the principal balance of the Corresponding Component, without regard to any reduction in principal or modification of the Mortgage Loan’s payment terms following any bankruptcy, default and foreclosure or similar action or agreed to by the Servicer. (c) Each Security shall accrue interest during each Security Interest Accrual Period at the applicable Pass-Through Rate on the Security Principal Balance of such Security outstanding immediately prior to the related Distribution Date. Interest on each Subclass of Securities shall be calculated on a 30/360 Basis, deeming, for purposes of the calculation, that for each Security Interest Accrual Period each Distribution Date to be on the fifteenth of each month (and therefore each period from Distribution Date to Distribution Date is deemed to be 30 days, except for the first such period). In addition, any accrued and unpaid interest on any Security that is not distributed to the Holder thereof on the Distribution Date immediately following the related Security Interest Accrual Period shall accrue interest during each subsequent Security Interest Accrual Period at the applicable Pass-Through Rate for the related Subclass until the end of the Security Interest Accrual Period immediately preceding the Distribution Date on which such accrued and unpaid interest is distributed. A Subclass or Subclasses of Additional Securities may be issued upon the execution of a Trust Agreement Supplement by the Trustee and the Servicer and the satisfaction of the conditions provided for in Section 3.23. A Subclass of Additional Securities shall be issued for each Component of the related Mortgage Loan Increase, pursuant to the related Loan Agreement Supplement.