Distributions on the Certificates Sample Clauses: 285 Samples

Appears in 2 contracts

Sources: Pooling and Servicing Agreement (Structured Asset Mortgage Investments II Trust 2004-Ar6), Pooling and Servicing Agreement (Structured Asset Mortgage Investments II Trust 2004-Ar6)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to each class of Certificates is the interest which has accrued thereon at the then applicable related Pass-Through Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls and Deferred Interest, if any, allocated to that class. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first~~ related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Interest Funds for such Distribution Date are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) any amounts paid by the Sponsor or the applicable Servicer in respect of Prepayment Charges pursuant to this Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to each class of the Senior Certificates, the Current Interest and any Interest Carry Forward Amount with respect to each such class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of Current Interest and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class M-1 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vi) to the Class M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vii) to the Class M-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; and (xiv) any remainder pursuant to Section 6.01(g) hereof. With respect to any Distribution Date, to the ~~Group I Available Funds remaining following~~ extent that the ~~distribution~~ Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Any interest shortfall resulting from Deferred Interest on the Mortgage Loans will be allocated to the Offered Certificates pro rata based upon the current Certificate Principal Balance of each such class, up to the Current Interest accrued on such class of Certificates, in reduction of the ~~First~~ amount of interest otherwise distributable to such class of Certificates; provided, however, that to the extent the amount of Net Negative Amortization otherwise allocable to a class of Offered Certificates exceeds the amount of Current Interest accrued on the Corresponding REMIC Regular Interest of such class of Certificates (as reduced by such class's share of any Prepayment Interest Shortfalls for such Distribution ~~Date Distribution Amount~~ Date), then such excess Net Negative Amortization shall be allocated, first, to the Class X C Certificates) , to the extent payments would otherwise be made to the Class C Certificates in respect of the Uncertificated Class C Interest on such Distribution Date, and, second, to the Offered Certificates pro rata based upon and up to the amount of any remaining Current Interest otherwise accrued on the Corresponding REMIC Regular Interest of each class of Offered Certificates. The amount of the reduction of Current Interest distributable to each class of Certificates attributable to Net Negative Amortization will be ~~distributed~~ added to the ~~Group I~~ Certificate Principal Balance of that class. (d) [RESERVED] (e) On each Distribution Date (or on the related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior ~~Certificates and~~ Certificates, the ~~Class X Certificates~~ Senior Principal Distribution Amount as follows: first, to the ~~Group I Senior~~ Class R Certificate until its Certificate Principal Balance has been reduced to zero, and second, pro rata (i) based upon their aggregate Certificate Principal Balance, sequentially to the Class A-1 Certificates and ~~Component 1X of~~ Class A-2 Certificates in that order and (ii) to the Class ~~X Certificates~~A-3 Certificates based upon its Certificate Principal Balance, in each case; until the ~~Accrued~~ Certificate ~~Interest on~~ Principal Balance of each such Class ~~or Component for such Distribution Date, and~~ has been reduced to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Componentzero; provided, however, ~~that~~ if the ~~amount~~ Certificate Principal Balance of ~~Accrued Certificate Interest paid to~~ each of the Class ~~X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the~~ A-3, Class ~~A-1A Certificates and~~ M-1, Class ~~A-1B Certificates~~M-3, ~~and that the amount of Accrued Certificate Interest paid to the~~ Class ~~X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the~~ M-4, Class MM-5, Class M-6, Class B-1, Class B-2 and Class B-3 Certificates have been reduced to zero, pro rata to the Class A-1 and Class A-2 Certificates; (iv) to the Class M-1 Certificates, in the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. (f) [RESERVED] (g) On each ~~case for that~~ Distribution Date (or on the related Swap Payment Date, ~~which will be deposited into~~ with respect to payments to the ~~Carryover Shortfall Reserve Fund. In addition~~Supplemental Interest Trust), ~~Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondSecurities Administrator shall, to the extent of ~~remaining Group I Available Funds~~Interest Funds and Principal Funds then available, make the following distributions up to the ~~Group I Senior Certificates and Component 1X and Component 3X~~ following amounts from the Distribution Account of the ~~Class X Certificates, the Accrued Certificate Interest thereon~~ remainders pursuant to ~~clause first remaining undistributed from previous~~ Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution ~~Dates~~ Date: (~~other than, with respect~~ i) to ~~Component 1X and Component 3X of~~ the ~~Class X~~ Senior Certificates, any amounts ~~pursuant to clause first deposited into~~ due as described in the ~~Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third,~~ same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of ~~remaining Group I Available~~ priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds, ; (iii) the Extra Principal Distribution Amount; (iv) pro rata to the Class R A-1 and the Class A-2 Certificates, ~~pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal~~ any Unpaid Realized Loss Amount for such classes; (v) to the Class A-3 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xiv) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xv) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xvi) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xvii) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, ~~until~~ the ~~Current Principal Amounts of such Classes have been reduced~~ Securities Administrator shall allocate the remainder pursuant to ~~zero; and fourth, to the extent of remaining Group I Available Funds,~~ Section 6.01(g)(xvii) as follows: (i) to the Class ~~A-1A and~~ C Certificates in the following order of priority, (I) the Class ~~A-1B Certificates~~C Current Interest, ~~in reduction~~ (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Certificate Principal Balance of the ~~respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such~~ Class C Certificates has been reduced to ~~zero~~zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (Bi) On each Distribution Date, the ~~Group II Available Funds~~ Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on ~~the first~~ such Distribution Date, the ~~Group II Available Funds following~~ Securities Administrator shall allocate the ~~distribution~~ Realized Loss Amount for the Certificates to reduce the Certificate Principal Balances of the ~~First Distribution Date Distribution Amount~~ Class C Certificates and the Certificates in the following order of priority: (i) to the Class X C Certificates, until the Class C Certificate Principal Balance is reduced to zero; (ii) ~~will be distributed~~ to the Class B-3 Certificates until the Class B-3 Certificate Principal Balance is reduced to zero; (iii) to the Class B-2 Certificates until the Class B-2 Certificate Principal Balance is reduced to zero; (iv) to the Class B-1 Certificates until the Class B-1 Certificate Principal Balance is reduced to zero; (v) to the Class M-6 Certificates until the Class M-6 Certificate Principal Balance is reduced to zero; (vi) to the Class M-5 Certificates until the Class M-5 Certificate Principal Balance is reduced to zero; (vii) to the Class M-4 Certificates until the Class M-4 Certificate Principal Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Certificate Principal Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Certificate Principal Balance is reduced to zero; (x) to the Class M-1 Certificates until the Class M-1 Certificate Principal Balance is reduced to zero; (xi) to the Class A-3 Certificates until the Class A-3 Certificate Principal Balance is reduced to zero; (xii) to the Class A-2 Certificates ~~and~~ until the Class ~~X Certificates as follows: first,~~ A-2 Certificate Principal Balance is reduced to zero; and (xiii) to the Class ~~A-2~~ A-1 Certificates ~~and to Component 2X of~~ until the Class ~~X Certificates, the Accrued~~ A-1 Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates Principal Balance is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (Ck) On Subject to Section 10.02 hereof respecting the final distribution, on each Distribution ~~Date~~Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the ~~Group III Available Funds~~ Master Servicer shall prepare and deliver an electronic report to the Securities Administrator (or by such other means as the Master Servicer and the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions for the related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, which in turn shall be based on information from the Servicers and the Cap Contract Counterparty. (l) The Securities Administrator is hereby directed by the Depositor to execute the Corridor Contract on behalf of the Issuing Entity in the form presented to it by the Depositor and shall have no responsibility for the contents of such Corridor Contract, including, without limitation, the representations and warranties contained therein. Any funds payable by the Issuing Entity under the Corridor Contract at closing shall be paid by the Depositor. Notwithstanding anything to the contrary contained herein or in the Corridor Contract, except as set forth in Section 2 of the Corridor Contract, the Issuing Entity shall not be required to make any payments to the counterparty under the Corridor Contract. Any payments received under the terms of the Corridor Contract will be available to pay the holders of the Certificates up to the amount of any Floating Rate Certificate Carryovers remaining after all other distributions required under this Section 6.01 are made on such Distribution Date. Any amounts received under the terms of the Corridor Contract on a Distribution Date that are not used to pay such Floating Rate Certificate Carryovers will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X holders of the Class X C Certificates, . Payments in respect of such Floating Rate Certificate Carryovers from proceeds of the ~~Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest~~ Corridor Contract shall be paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro ~~rata,~~ rata based ~~on Accrued Certificate Interest on each~~ upon such ~~Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif~~Floating R

Appears in 2 contracts

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar4), Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar4)

Distributions on the Certificates. ~~(a) Interest and principal on the Certificates~~ The Certificateholders will be ~~distributed monthly~~ entitled to distributions on each ~~Distribution~~ Payment Date, ~~commencing~~ as provided in ~~October 2004~~this Agreement, the Sale and Servicing Agreement and the Indenture. With respect to any Payment Date, any amounts remaining in ~~an aggregate amount equal~~ the Payment Account for payment to the ~~Available Funds for such Distribution Date. On~~ Certificateholders pursuant to Section 5.01(a)(II) of the ~~first Distribution Date~~Sale and Servicing Agreement, ~~the Paying Agent will, prior~~ to the ~~distribution of Available Funds to any Certificate~~extent such funds are received by the Owner Trustee, ~~distribute~~ shall be distributed by the ~~First Distribution Date Distribution Amount to the Class X Certificates,~~ Owner Trustee as follows: (i) ~~from Group I Available Funds~~with respect to any Payment Date during the Managed Amortization Period, ~~an amount equal~~ concurrently, to the ~~product~~ Class B Certificateholders and the Class L Certificateholders, pro rata based on their respective Class Principal Balances, provided that, if such Payment Date is a Payment Date immediately following the expiration of ~~(x)~~ the ~~First Distribution~~ latest early termination fee term on a Mortgage Loan identified on the Mortgage Loan Schedule, or any Payment Date ~~Distribution Amount~~ thereafter, then such funds shall be distributed first, to the holders of the Class P Certificates until the Class Principal Balance thereof is reduced to zero and ~~(y)~~ second, to the ~~Component 1X Distribution Percentage;~~Class B Certificateholders and the Class L Certificateholders, pro rata based on their respective Class Principal Balances; and (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to ~~Component 1X and Component 3X of~~ any Payment Date during the ~~Class X Certificates~~Rapid Amortization Period, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Fundsconcurrently, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or ComponentB Certificateholders; provided, ~~however~~further, ~~that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts~~ on the ~~Class A-2 Certificates and that~~ Payment Date on which the ~~amount of Accrued Certificate Interest paid to~~ Optional Redemption Price is distributed, the ~~Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~portion, ~~Class B-1~~if any, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount Optional Redemption Price equal to the sum of the ~~remaining Group I Available Funds, Group II Available Funds~~ Class Principal Balance of the Class L Certificates and ~~Group III Available Funds after~~ the ~~distributions in (A), (B) and (C) above will~~ Class Principal Balance of the Class P Certificate shall be distributed pursuant to this Section 3.11 to the Class ~~M Certificates~~L Certificateholders and the Class P Certificateholders, ~~up to an amount~~ respectively, and the portion remaining, if any, of the Optional Redemption Price equal to ~~and in~~ the ~~following order: (a)~~ Class Principal Balance of the ~~Accrued Certificate Interest thereon for such Distribution~~ Class B Certificates shall be distributed pursuant to this Section 3.11 to the Class B Certificateholders, as applicable. With respect to each Payment Date, ~~(b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~the Indenture Trustee, to the extent the Servicer has provided the Mortgage Loan data delivered by the Servicer to the Indenture Trustee pursuant to Section 4.09(a) of the ~~sum~~ Sale and Servicing Agreement (the “Indenture Trustee Report”), shall deliver or make available the report to be provided by the Indenture Trustee pursuant to Section 4.09 of the ~~remaining Group I Available Funds, Group II Available Funds~~ Sale and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon Servicing Agreement for such ~~Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in~~ Payment Date to each ~~case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Residual Certificateholder. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 2 contracts

Sources: Trust Agreement (IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H2), Trust Agreement (Indymac MBS Inc)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~November 2005, in an aggregate amount equal to the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows, provided, however, that any Swap Payment on deposit in the Swap Account shall be used solely to make payments pursuant to clauses (iii) and (iv) below: (i) FIRST, from ~~Group I Available Funds~~amounts on deposit in the Swap Account, ~~an amount equal~~ to the ~~product of~~ Swap Provider, the related Net Swap Payment (~~x) the First~~ as defined herein), if any, for such Distribution ~~Date~~ Date, plus any related Net Swap Payment remaining unpaid from previous Distribution ~~Amount and (y) the Component 1X Distribution Percentage~~Dates; (ii) SECOND, from ~~Group II Available Funds~~amounts on deposit in the Swap Account, ~~an amount equal~~ to the ~~product of~~ Swap Provider, any related Swap Termination Payments (~~x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and~~other than any related Swap Termination Payments resulting from a Swap Provider Trigger Event); (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: firstTHIRD, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In additionCertificateholders, Accrued Certificate Interest on the Class ~~A-2~~ I-A Certificates ~~and each~~ for such ~~Component of~~ Distribution Date; (iv) FOURTH, to the Certificateholders, any Accrued Certificate Interest on the Class X I-A Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondremaining undistributed from previous Distribution Dates, to the extent of remaining ~~Group II~~ Available Funds; (v) FIFTH, any principal distributions received from the Underlying Class I-A Certificates shall be distributed to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, ~~the Group II Senior Optimal Principal Amount for such Distribution Date,~~ until the Current Principal Amount thereof has been reduced to zero; and (vi) SIXTH, from amounts on deposit in the Swap Account, to the related Swap Provider, any related Swap Termination Payments resulting from a Swap Provider Trigger Event. (b) No Accrued Certificate Interest will be payable with respect to the Certificates after the Distribution Date on which the Current Principal Amount of ~~such Class~~ the Certificates has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Grantor Trust Agreement (Merrill Lynch Mortgage Investor Trust Series MLCC 2005-3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Trustee monthly on each Distribution Date, commencing in ~~October~~ September 2004, as instructed by the Master Servicer or the Securities Administrator, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the following order of priority among the Group I Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior Certificates and Component 1X of the~~ Class X I-A Certificates, the Accrued Certificate Interest on ~~each such~~ the Class ~~or Component~~ I-A Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the Class X I-A Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among such Class A-1A Certificates and Class A-1B Certificates and Components of~~ to the Class X I-A Certificates ~~in accordance with the provisions of Section 6.02(g)~~as described below; second, to the Class I-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I Available Funds, any shortfall in available amounts being allocated to the Class I-A Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Class I-A Certificates for such Distribution Date; and third, to the Class I-A Certificates, in reduction of the Class Certificate Balance thereof, the Group I Senior ~~Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous~~ Principal Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each Amount for such ~~Class or Component; third,~~ Distribution Date to the extent of remaining Group I Available Funds, to until the Class ~~R Certificates, pro rata, in reduction~~ Certificate Balance of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group II ~~Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2~~ Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class ~~A-2 Certificates and to Component 2X of the Class X~~ II-A Certificates, the Accrued Certificate Interest on ~~each such~~ the Class ~~or Component~~ II-A Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the Class ~~A-2 Certificates and each such Component of the Class X~~ II-A Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among~~ to the Group II Senior Certificates as described below; second, to the Class ~~A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~II-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II Available Funds, any shortfall in available amounts being allocated to the Class ~~A-2~~ II-A Certificates ~~and Component 2X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of~~ for the Class ~~X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each~~ II-A Certificates for such ~~Class or Component~~Distribution Date; and third, to the Class II-A Certificates Certificates, in reduction of the Class Certificate Balance thereof, the Group II Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group II Available Funds, to until the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to in the ~~Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to~~ following order of priority among the Group III Senior Certificates except as otherwise noted: first, to the Class III-A-1, Class III-A-2 and Class III-A-3 Certificates, pro rata, the Accrued Certificate Interest on ~~such~~ each Class of the Group III Senior Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-3 Certificates and each such Component of the Class X~~ Group III Senior Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among~~ to the Group III Senior Certificates as described below; second, to the Class III-A-1, Class III-A-2 and Class III-A-3 ~~Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group III Available Funds, any shortfall in available amounts being allocated to the ~~Class A-3~~ Group III Senior Certificates ~~and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for the Group III Senior Certificates for such Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund)~~Date; and third, to the Class III-A-1, Class III-A-2 and Class III-A-3 Certificates, pro rata, in reduction of the Class Certificate Balance thereof, the Group III Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group III Available Funds, to until the Class ~~A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (D) ~~Except~~ On each Distribution Date, the Group IV Available Funds will be distributed in the following order of priority among the Group IV Senior Certificates except as ~~provided in paragraphs (F)~~ otherwise noted: first, to the Class IV-A-1, Class IV-A-2 and ~~(G)~~ Class IV-A-3 Certificates, pro rata, the Accrued Certificate Interest on each Class of the Group IV Senior Certificates for such Distribution Date. As described below, Accrued Certificate Interest on the Group IV Senior Certificates is subject to reduction in the event of certain interest shortfalls allocable thereto. Any interest shortfalls shall be allocated to the Group IV Senior Certificates as described below; second, to the Class IV-A-1, Class IV-A-2 and Class IV-A-3 Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group IV Available Funds, any shortfall in available amounts being allocated to the Group IV Senior Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Group IV Senior Certificates for such Distribution Date; and third, to the Class IV-A-1, Class IV-A-2 and Class IV-A-3 Certificates, pro rata, in reduction of the Class Certificate Balance thereof, the Group IV Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group IV Available Funds, until the Class Certificate Balance of such Class has been reduced to zero (E) On each Distribution Date on or prior to the ~~Cross-Over~~ Distribution Date on which the Class Certificate Balances of the Subordinate Certificates are reduced to zero (the "Credit Support Depletion Date"), an amount equal to the sum of the remaining Group ~~I Available Funds~~I, Group ~~II Available Funds~~ II, Group III and Group ~~III~~ IV Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in clauses (A), (B), (C) and (D) above and after any distributions required to be made pursuant to clauses (F) and (G) below, will be distributed sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the ~~Cross-Over~~ Credit Support Depletion Date but after the reduction of the ~~Current Principal Amount of any~~ aggregate Class Certificate Balance of the ~~Group I Senior Certificates, Group II~~ related Senior Certificates or of a related Loan Group ~~III Senior Certificates~~ to zero, the remaining Class or Classes of related Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their ~~Current Principal Amounts~~Class Certificate Balances, pro rata based upon their Class Certificate Balances immediately prior to such Distribution Date, in addition to any ~~Principal Prepayments~~ principal prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if both (Aa) the weighted average of -86- Sub▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ ▇▇proximately 7.30% on or after the ~~Senior Mezzanine and Subordinate Percentages on such~~ Distribution Date ~~equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages~~ in September 2007 and (Bb) the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans delinquent 60 days or ~~more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust)~~more, averaged over the last six months, as a percentage of the ~~sum~~ aggregate Class Certificate Balance of the ~~aggregate Current Principal Amount of the Senior Mezzanine~~ Class M Certificates and ~~Subordinate~~ Class B Certificates, does not exceed ~~100~~50%, then the additional allocation of ~~Principal Prepayments~~ principal prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificatesmade. (G) If on any Distribution Date on which the aggregate ~~Current Principal Amount~~ Class Certificate Balance of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group (the amount of such excess, the "Undercollateralized Amount," and any such Class or Classes of Senior ~~Mezzanine Certificates~~ Certificates, the "Undercollateralized Senior Certificates") and any Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to the ~~Group I Senior Certificates, Group II~~ Undercollateralized Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the ~~Current Principal Amounts~~ Class Certificate Balances thereof, until the aggregate ~~Current Principal Amounts~~ Class Certificate Balance of such Class or Classes of Undercollateralized Senior ~~Certificates, as applicable,~~ Certificates is ~~an amount~~ equal to the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Undercollateralized Senior Certificates pursuant to clause first of clauses (A), (B), (C) or (D) above, as applicable, in an amount equal to the Accrued Certificate Interest at the Pass-Through Rate for such Class or Classes of Undercollateralized Senior Certificates for such Distribution Date on ~~the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in~~ a balance equal to the related ~~Loan Group~~Undercollateralized Amount. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates ~~will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then~~ will be allocated to the Class M B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates~~. (b) If~~, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in ~~proportion to the then Current Principal Amount of such Classes~~that order. ~~"Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d)~~ On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates; provided that if on any Distribution Date on and after the Credit Support Depletion Date there are any Group ~~I Available Funds~~I, Group ~~II Available Funds~~ II, Group III or Group ~~III~~ IV Available Funds remaining after payment of interest and principal to a Class or Classes of Senior Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their ~~Current Principal Amounts~~Class Certificate Balances, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class R-~~III~~ II Certificates~~. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund~~ . It is not anticipated that there will be ~~distributed, in the following order, first~~ any significant amounts remaining for such distribution. In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Protected Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class ~~A-1A~~of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class ~~A-1B~~ of Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a), and ~~Class A-2 Certificates, pro rata, based on Accrued Certificate~~ so on. Holders of such Certificates will not be entitled to any payment in respect of Current Interest on ~~each~~ the amount of such ~~Class, and then sequentially~~ increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class ~~M, Class B-1, Class B-2 and Class B-3 Certif~~in accordance with its respective Percentage Interest.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Mortgage Investors Trust Mlmi Series 2004-A3)

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mortgage Investments Inc)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Securities Administrator monthly on each Distribution Date, commencing in ~~October 2004~~January 2006, as instructed by the Master Servicer or the Securities Administrator, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the ~~Group I~~ Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the ~~Group I~~ following order of priority among the Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior~~ Class A Certificates and ~~Component 1X of the~~ Class X A-IO Certificates, pro rata, the Accrued Certificate Interest on each ~~such Class or Component~~ class of Senior Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the ~~Class X~~ Senior Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among ~~such~~ the Certificates as described below; provided, however, that with respect to the Senior Certificates on each Distribution Date, the interest distribution amount that would otherwise be distributed to the Class ~~A-1A~~ A-IO Certificates will be reduced by the Required Reserve Fund Deposit (as defined below) and will not be distributed to the Class A-IO Certificates; second, to the Class A Certificates and Class ~~A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~A-IO Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining ~~Group I~~ Available Funds, any shortfall in available amounts being allocated to the ~~Group I~~ Senior Certificates ~~and Component 1X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, the~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for each Class of Senior Certificates for such Distribution ~~Dates (other than, with respect to Component 1X~~ Date; and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the ~~extent of remaining Group I Available Funds, to the~~ Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B A Certificates, in reduction of the ~~respective Current Principal Amounts~~ Class Certificate Balance thereof, the ~~remaining Group I~~ Senior ~~Optimal~~ Principal Distribution Amount for such Distribution ~~Date~~Date to the extent of remaining Available Funds, until the ~~respective Current Principal Amounts~~ Class Certificate Balance of ~~each~~ such Class has been reduced to zero. (B) On each Distribution Date on or prior to the Distribution Date on which the Class Certificate Balances of the Subordinate Certificates are reduced to zero (the “Credit Support Depletion Date”), an amount equal to the ~~Group II~~ remaining Available Funds after the distributions in clause (~~or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates~~A) above will be distributed to sequentially, in the ~~Class A-2 Certificates and the Class X Certificates as follows~~following order: first, to the Class ~~A-2 Certificates~~ ▇-▇, ▇▇▇▇▇ ▇-▇, Class M-3 and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~, Class B-1, Class B-2 and Class B-3~~ -IO Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date; provided, however, that with respect to the Class M Certificates on each Distribution Date, the interest distribution amount that would otherwise be distributed to the Class M-IO Certificates will be reduced by the Required Reserve Fund Deposit and will not be distributed to the Class M-IO Certificates, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class~~'s Allocable Share~~ ’s (other than the Class M-IO Certificates) Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the ~~sum of the~~ remaining ~~Group I Available Funds, Group II~~ Available Funds ~~and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below~~second, ~~on each Distribution Date on or prior~~ from the Reserve Fund, to the ~~Cross~~classes of LIBOR Certificates, Class A-~~Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds~~ IO Certificates and ~~Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially~~Class M-IO Certificates, in the ~~following order~~manner, order and priority described in Section 6.08 third, to the Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class~~'s Allocable Share~~ ’s Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates~~; provided~~ . It is not anticipated that if there will be any significant amounts remaining for such distribution. (D) In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Protected Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a), and so on. Holders of such Certificates will not be entitled to any payment in respect of Current Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date ~~there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto,~~ on which such ~~amounts will~~ increase occurs. Any such increases shall be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed applied to the Class ~~R-III Certificates~~Certificate Balance of each Certificate of such Class in accordance with its respective Percentage Interest. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrilll Lynch Mortgage Investors Trust, Series 2005-A10)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to each class of Certificates is the interest which has accrued thereon at the then applicable related Certificate Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls and Deferred Interest, if any, allocated to that class. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first~~ related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Interest Funds for such Distribution Date are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) any amounts paid by the Sponsor or the applicable Servicer in respect of Prepayment Charges pursuant to this Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to each class of the Senior Certificates, the Current Interest and any Interest Carry Forward Amount with respect to each such class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of Current Interest and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class M-1 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vi) to the Class M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vii) to the Class M-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; and (xiv) any remainder pursuant to Section 6.01(g) hereof. With respect to any Distribution Date, to the ~~Group I Available Funds remaining following~~ extent that the ~~distribution~~ Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Any interest shortfall resulting from Deferred Interest on the Mortgage Loans will be allocated to the Offered Certificates pro rata based on and up to Current Interest accrued on such classes, in reduction of the ~~First~~ amount of interest otherwise distributable to such class of Certificates; provided, however, that to the extent the amount of Net Negative Amortization otherwise allocable to the Offered Certificates exceeds the amount of Current Interest accrued on the Corresponding REMIC Regular Interest of such Certificates (as reduced by each such class's share of any Prepayment Interest Shortfalls for such Distribution ~~Date Distribution Amount~~ Date) accrued on such classes of Certificates, then such excess Net Negative Amortization shall be allocated to the Class ~~X Certificates)~~ C Certificates to the extent payments would otherwise be made to the Class C Certificates in respect of the Uncertificated Class C Interest. The amount of the reduction of Current Interest distributable to each class of Certificates attributable to Net Negative Amortization will be ~~distributed~~ added to the ~~Group I~~ Class Certificate Balance of that class. (d) [RESERVED] (e) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior ~~Certificates and~~ Certificates, the ~~Class X Certificates~~ Senior Principal Distribution Amount as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R ~~Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date,~~ Certificate until ~~the Current Principal Amounts of such Classes have~~ its Class Certificate Balance has been reduced to zero; , and ~~fourth~~second, ~~to the extent of remaining Group I Available Funds,~~ pro rata to the Class ~~A-1A~~ A-1 Certificates, Class A-2 Certificates and Class ~~A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date,~~ A-3 Certificates until the ~~respective Current Principal Amounts~~ Class Certificate Balance of each such Class has been reduced to zero; provided, however, that on and after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class B and Class C Certificates has been reduced to zero and the Stated Principal Balance of the Mortgage Loans is equal to or less than the aggregate Class Certificate Balance of the Senior Certificates, any principal distributions shall be allocated sequentially to the Class R, Class A-1, Class A-2 and Class A-3 Certificates, in that order, until the Class Certificate Balance of each such Class has been reduced to zero; (iv) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. (Bf) [RESERVED] (g) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xiv) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xv) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xv) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Class Certificate Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the ~~Group II Available Funds~~ Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on ~~the first~~ such Distribution Date, the ~~Group II Available Funds following~~ Securities Administrator shall allocate the ~~distribution~~ Realized Loss Amount for the Certificates to reduce the Class Certificate Balances of the ~~First Distribution Date Distribution Amount~~ Class C Certificates and the Subordinate Certificates in the following order of priority: (i) to the Class X C Certificates, until the Class C Class Certificate Balance is reduced to zero; (ii) ~~will be distributed~~ to the Class ~~A-2~~ B-3 Certificates ~~and~~ until the Class ~~X Certificates as follows: first,~~ B-3 Class Certificate Balance is reduced to zero; (iii) to the Class ~~A-2~~ B-2 Certificates ~~and to Component 2X of~~ until the Class ~~X Certificates, the Accrued~~ B-2 Class Certificate ~~Interest on each such Class or Component for such Distribution Date, and~~ Balance is reduced to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid zero; (iv) to the Class X B-1 Certificates ~~in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on~~ until the Class ~~A-2 Certificates and that the amount of Accrued~~ B-1 Class Certificate ~~Interest paid~~ Balance is reduced to zero; (v) to the Class X M-6 Certificates ~~pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on~~ until the Class M, M-6 Class ~~B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued~~ Certificate ~~Interest on the Class A-2 Certificates and each such Component of the Class X Certificates~~ Balance is ~~subject~~ reduced to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, zero; (vi) to the Class ~~A-2~~ M-5 Certificates ~~and Component 2X and Component 3X of~~ until the Class ~~X Certificates, any Accrued~~ M-5 Class Certificate ~~Interest thereon pursuant~~ Balance is reduced to ~~clause first remaining undistributed from previous Distribution Dates~~ zero; (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, vii) to the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date,~~ M-4 Certificates until the ~~Current Principal Amount of such~~ Class ~~has been~~ M-4 Class Certificate Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Class Certificate Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Class Certificate Balance is reduced to zero; and (x) to the Class M-1 Certificates until the Class M-1 Class Certificate Balance is reduced to zero. (Ck) ~~On each Distribution Date,~~ Subject to Section 10.02 hereof respecting the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) belowfinal distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the ~~Cross-Over Date~~related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the Master Servicer shall prepare and deliver an ~~amount equal~~ electronic report (the "Remittance Report") to the ~~sum of~~ Securities Administrator (or by such other means as the ~~remaining Group I Available Funds, Group II Available Funds~~ Master Servicer and ~~Group III Available Funds after~~ the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions ~~in (A), (B) and (C) above will be distributed to~~ for the ~~Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such~~ related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, ~~(b) any Accrued Certificate Interest thereon remaining undistributed~~ which in turn shall be based on information from ~~previous Distribution Dates~~ the Servicers and ~~(c) such Class's Allocable Share for such Distribution Date, in each case, to~~ the ~~extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Cap Contract Counterparty. (El) ~~Except as provided~~ The Supplemental Interest Trust Trustee is hereby directed by the Depositor to execute the Corridor Contract on behalf of the Supplemental Interest Trust in ~~paragraphs (F)~~ the form presented to it by the Depositor and ~~(G) below~~shall have no responsibility for the contents of such Corridor Contract, ~~on each Distribution Date on or prior~~ including, without limitation, the representations and warranties contained therein. Any funds payable by the Supplemental Interest Trust under the Corridor Contract at closing shall be paid by the Depositor. Notwithstanding anything to the ~~Cross-Over Date~~contrary contained herein or in the Corridor Contract, ~~an amount equal~~ except as set forth in Section 2 of the Corridor Contract, the Supplemental Interest Trust shall not be required to make any payments to the ~~sum~~ counterparty under the Corridor Contract. Any payments received under the terms of the ~~remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above~~ Corridor Contract will be ~~distributed sequentially, in~~ available to pay the ~~following order,~~ holders of the Certificates up to the ~~Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an~~ amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any ~~of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the~~ Floating Rate Certificate Carryovers remaining ~~Class or Classes of Senior Certificates (~~after all other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for distributions required under this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates Section 6.01 are ~~still outstanding, in each case after giving effect to distributions to be~~ made on such Distribution Date, ~~then (i) 100% of amounts otherwise allocable~~ other than Floating Rate Certificate Carryovers attributable to the fact that Realized Loss Amounts are not allocated to the Senior ~~Mezzanine Certificates and Subordinate Certificates in respect~~ Certificates. Any amounts received under the terms of ~~principal collections~~ the Corridor Contract on ~~the Mortgage Loans~~ a Distribution Date that are not used to pay such Floating Rate Certificate Carryovers will be distributed to the ~~Group I Senior~~ holders of the Class C Certificates. Payments in respect of such Floating Rate Certificate Carryovers from proceeds of the Corridor Contract shall be paid to the Certificates, ~~Group II Senior Certificates or Group III Senior Certificates, as applicable, on a~~ pro rata ~~basis in reduction~~ based upon such Floating Rate Certificate Carryovers for each such class of Certificates. Amounts received on the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date Corridor Contract will be ~~reduced, if necessary, 100 and distributed on a pro rata basis~~ available to ~~such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date~~ make payments on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Offered Certificates. (bi) IfThe Supplemental Interest Trust Trustee shall establish and maintain, ~~after distributions have been made pursuant~~ for the benefit of the Supplemental Interest Trust and the Certificateholders, the Corridor Contract Account. On or prior to ~~priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution~~ the Corridor Contract Termination Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certifa

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar1)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Securities Administrator monthly on each Distribution Date, commencing in ~~October 2004~~May 2006, as instructed by the Master Servicer, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group I ~~Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior~~ Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior~~ Class I-A Certificates, Class X-A Certificates and ~~Component 1X of the~~ Class X A-R Certificates, pro rata, the Accrued Certificate Interest on each ~~such~~ Class ~~or Component~~ of Group I Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that on each Distribution Date, amounts that would otherwise be payable to the ~~amount of Accrued Certificate Interest~~ Class X-A Certificates under this clause will be paid to the Class X I-A Certificates ~~in respect of Component 1X will be reduced by~~ to the ~~aggregate amount~~ extent of any ~~Carryover~~ Basis Risk Shortfall Amounts on remaining unpaid as of such Distribution Date; second, to the Class ~~A-1A~~ I-A Certificates, Class X-A Certificates and Class ~~A-1B~~ A-R Certificates, ~~and that the amount of~~ pro rata, any Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that thereon remaining undistributed from previous Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondDates, to the extent of remaining Group I Available Funds, any shortfall in available amounts being allocated to the Group I ~~Senior~~ Certificates ~~and Component 1X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, the~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for each Class of Group I Certificates for such Distribution ~~Dates (other than~~Date; provided, ~~with respect~~ however, that on each Distribution Date, amounts that would otherwise be payable to ~~Component 1X and Component 3X of~~ the Class X X-A Certificates under this clause will be paid to the Class I-A Certificates to the extent of any Basis Risk Shortfall Amounts remaining unpaid as of such Distribution Date; and third, to the Class I-A Certificates and Class A-R Certificates~~, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund)~~, pro rata, ~~based on~~ in reduction of their respective Class Certificate Balances thereof, the ~~undistributed Accrued Certificate Interest owed to each~~ Group I Senior Principal Distribution Amount for such ~~Class or Component; third,~~ Distribution Date to the extent of remaining Group I Available Funds, to until the Class ~~R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts~~ Certificate Balances of such Classes have been reduced to zero~~; and fourth~~. Concurrently, the Class X-A Notional Amount will be reduced by an amount equal to the ~~extent~~ reduction of ~~remaining Group I Available Funds~~the Class Certificate Balance of the Class I-A Certificates. Amounts that would have been distributed in respect of the Class X-A Certificates, but for the proviso set forth in clauses "first" and "second" above shall be treated as having been distributed to the Class ~~A-1A~~ X-A Certificates for purposes of determining subsequent interest shortfalls with respect to the Class X-A Certificates and the Class ~~A-1B Certificates~~X-A Certificates shall have no right to reimbursement therefor. For federal income tax purposes, such amounts shall be deemed to have been distributed to the Class X-A Certificates in ~~reduction~~ respect of a REMIC regular interest and then as having been paid over to the ~~respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such~~ Class ~~has been reduced~~ I-A Certificates pursuant to ~~zero~~an interest rate cap agreement. (B) On each Distribution Date, the Group II Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group II ~~Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2~~ Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class ~~A-2~~ II-A1 Certificates and ~~to Component 2X of the~~ Class X II-A2 Certificates, pro rata, the Accrued Certificate Interest on ~~each such Class or Component~~ the Group II Certificates for such Distribution Date; second, ~~and~~ to ~~Component 3X of~~ the Class X II-A1 Certificates and Class II-A2 Certificates~~, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date~~, pro rata, ~~based on the~~ any Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that thereon remaining undistributed from previous Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondDates, to the extent of remaining Group II Available Funds, any shortfall in available amounts being allocated to the Group II Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Group II Certificates for such Distribution Date; and third, to the Class ~~A-2~~ II-A1 Certificates and ~~Component 2X and Component 3X of the~~ Class X II-A2 Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, ~~based on~~ in reduction of the ~~undistributed Accrued~~ Class Certificate ~~Interest owed to each~~ Balance thereof, the Group II Senior Principal Distribution Amount for such ~~Class or Component; and third,~~ Distribution Date to the extent of remaining Group II Available Funds, to until the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed in the following order of priority among the Group III Certificates except as otherwise noted: first, to the Class ~~A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior~~ III-A Certificates, the Accrued Certificate Interest on ~~such Class for such Distribution Date, and to Component 3X of~~ the Class ~~X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component~~ III-A Certificates for such Distribution Date; ~~provided~~second, ~~however~~to the Class III-A Certificates, ~~that the amount of~~ any Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that thereon remaining undistributed from previous Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondDates, to the extent of remaining Group III Available Funds, any shortfall in available amounts being allocated to the Class ~~A-3~~ III-A Certificates ~~and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for the Group III Certificates for such Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund)~~Date; and third, to the Class III-A Certificates, in reduction of the Class Certificate Balance thereof, the Group III Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group III Available Funds, to until the Class ~~A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (D) ~~Except~~ On each Distribution Date, the Group IV Available Funds will be distributed in the following order of priority among the Group IV Certificates except as ~~provided~~ otherwise noted: first, to the Class IV-A Certificates, the Accrued Certificate Interest on the Class IV-A Certificates for such Distribution Date; second, to the Class IV-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group IV Available Funds, any shortfall in ~~paragraphs~~ available amounts being allocated to the Class IV-A Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Group IV Certificates for such Distribution Date; and third, to the Class IV-A Certificates, in reduction of the Class Certificate Balance thereof, the Group IV Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group IV Available Funds, until the Class Certificate Balance of such Class has been reduced to zero. (FE) ~~and (G) below, on~~ On each Distribution Date on or prior to the ~~Cross-Over~~ Credit Support Depletion Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds, Group III Available Funds and Group ~~III~~ IV Available Funds after the distributions in clauses (A), ) through (~~B) and (C~~D) above ~~will~~ and after any distributions required to be ~~distributed~~ made pursuant to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs clauses (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the ~~Cross-Over~~ Credit Support Depletion Date but after the reduction of the ~~Current Principal Amount of any~~ aggregate Class Certificate Balance of the ~~Group I Senior Certificates, Group II~~ related Senior Certificates or of a related Loan Group ~~III Senior Certificates~~ to zero, the remaining Class or Classes of related Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their ~~Current Principal Amounts~~Class Certificate Balances, pro rata, based upon their respective Class Certificate Balances immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if both (Aa) the weighted average of the ~~Senior Mezzanine and~~ Subordinate ~~Percentages on such Distribution Date~~ Percentage equals or exceeds ~~two times~~ 200% of the ~~initial~~ original weighted average of the ~~Senior Mezzanine and~~ Subordinate ~~Percentages~~ Percentage as of the Closing Date on or after the Distribution Date in May 2009 and (Bb) the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans delinquent 60 days or ~~more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust)~~more, averaged over the last six months, as a percentage of the ~~sum~~ aggregate Class Certificate Balance of the ~~aggregate Current Principal Amount of the Senior Mezzanine~~ Class M Certificates and ~~Subordinate~~ Class B Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (FD) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully ~~prepaid Class~~ repaid class or ~~Classes~~ classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be allocated ~~on a pro rata basis~~ to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates. (G) If on any Distribution Date on which the aggregate ~~Current Principal Amount~~ Class Certificate Balance of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group (the amount of such excess, the "Undercollateralized Amount," and any such Class or Classes of Senior ~~Mezzanine Certificates~~ Certificates, the "Undercollateralized Senior Certificates") and any Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to the ~~Group I Senior Certificates, Group II~~ Undercollateralized Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the ~~Current Principal Amounts~~ Class Certificate Balances thereof, until the aggregate ~~Current Principal Amounts~~ Class Certificate Balance of such Class or Classes of Undercollateralized Senior ~~Certificates, as applicable,~~ Certificates is ~~an amount~~ equal to the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Undercollateralized Senior Certificates pursuant to clause first of clauses (A), (B), (C) or (D) above, as applicable, in an amount equal to the Accrued Certificate Interest at the Pass-Through Rate for such Class or Classes of Undercollateralized Senior Certificates for such Distribution Date on ~~the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in~~ a balance equal to the related ~~Loan Group~~Undercollateralized Amount. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates ~~will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then~~ will be allocated to the Class M B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates~~. (b) If~~, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in ~~proportion to the then Current Principal Amount of such Classes~~that order. ~~"Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d)~~ On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class RA-~~III~~ R Certificates; provided that if on any Distribution Date on and after the Credit Support Depletion Date there are any Group ~~I Available Funds~~I, Group ~~II Available Funds~~ II, Group III or Group ~~III~~ IV Available Funds remaining after payment of interest and principal to a Class or Classes of Senior Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their ~~Current Principal Amounts~~Class Certificate Balances, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class RA-~~III~~ R Certificates. In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Master Servicer Collection Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, including any Class of Subordinate Certificates to which a Realized Loss was previously allocated and whose Class Certificate Balance has been reduced to zero, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02. The amount of any remaining Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02, and so on. Holders of such Certificates will not be entitled to any payment in respect of Accrued Certificate Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Class Certificate Balance of each Certificate of such Class in accordance with its respective Percentage Interest. (H) Any Prepayment Penalties shall be distributed to the Class P Certificates. (eI) ~~On each~~ The Trustee is hereby directed by the Depositor to execute the Cap Contract on behalf of the Trust Fund in the form presented to it by the Depositor and shall have no responsibility for the contents of such Cap Contract, including, without limitation, the representations and warranties contained therein. Any funds payable by the Trustee under the Cap Contract at closing shall be paid by the Depositor. Notwithstanding anything to the contrary contained herein or in the Cap Contract, the Trustee shall not be required to make any payments to the Cap Provider. Any payments received under the terms of the Cap Contract will be available to pay the holders of the Class I-A Certificates to the extent that the Class I-A Certificates have not received distributions pursuant to Section 6.01(a)(A) sufficient to fully pay any Basis Risk Shortfall Amounts due on the Class I-A Certificates for any Distribution Date~~, any~~ . The Securities Administrator will make distributions from amounts in the ~~Carryover Shortfall~~ Reserve ~~Fund will be distributed,~~ Account on the applicable Distribution Date in the following ~~order~~order of priority: (i) from the Cap Contract Payments in the Reserve Account, ~~first~~ to the Class ~~A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each~~ I-A Certificates any Basis Risk Shortfall Amounts for such ~~Class, and then sequentially~~ class remaining unpaid after application of Section 6.01(a)(A) for such Distribution Date; and (ii) to the ~~Class M~~Cap Provider, ~~Class B-1~~any remaining amounts on deposit in the Reserve Account. The Cap Contract is scheduled to remain in effect until the related Cap Contract Termination Date and will be subject to early termination only in limited circumstances. Such circumstances include certain insolvency or bankruptcy events in relation to the Cap Provider, ~~Class B-2~~ the failure of the Cap Provider to make a payment due under the related Cap Contract, the failure by the Cap Provider (after the applicable cure period after notice of such failure is received) to perform any other agreement made by it under the related Cap Contract, the termination of the Trust Fund and ~~Class B-3 Certif~~the related Cap Contract becoming illegal or subject to certain kinds of taxation.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Investors Trust, Series 2006-A2)

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2006-Ar3)

Distributions on the Certificates. ~~(a) Interest and principal on the Certificates~~ The Certificateholders will be ~~distributed monthly~~ entitled to distributions on each ~~Distribution~~ Payment Date, ~~commencing~~ as provided in ~~October 2004~~this Agreement, the Sale and Servicing Agreement and the Indenture. With respect to any Payment Date, any amounts remaining in ~~an aggregate amount equal~~ the Payment Account for payment to the ~~Available Funds for such Distribution Date. On~~ Certificateholders pursuant to Section 5.01(a)(II) of the ~~first Distribution Date~~Sale and Servicing Agreement, ~~the Paying Agent will, prior~~ to the ~~distribution of Available Funds to any Certificate~~extent such funds are received by the Owner Trustee, ~~distribute~~ shall be distributed by the ~~First Distribution Date Distribution Amount to the Class X Certificates,~~ Owner Trustee as follows: (i) ~~from Group I Available Funds~~with respect to any Payment Date during the Managed Amortization Period, ~~an amount equal~~ concurrently, to the ~~product of (x)~~ Class B Certificateholders and the ~~First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage;~~Class L Certificateholders, pro rata based on their respective Class Principal Balances; and (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to ~~Component 1X and Component 3X of~~ any Payment Date during the ~~Class X Certificates~~Rapid Amortization Period, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Fundsconcurrently, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or ComponentB Certificateholders; provided, ~~however~~further, ~~that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts~~ on the ~~Class A-2 Certificates and that~~ Payment Date on which the ~~amount of Accrued Certificate Interest paid to~~ Optional Redemption Price is distributed, the ~~Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~portion, ~~Class B-1~~if any, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount Optional Redemption Price equal to the sum of the ~~remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after~~ Class Principal Balance of the ~~distributions in (A), (B) and (C) above will~~ Class L Certificates shall be distributed pursuant to this Section 3.11 to the Class ~~M Certificates~~L Certificateholders, ~~up to an amount~~ and the portion remaining, if any, of the Optional Redemption Price equal to ~~and in~~ the ~~following order: (a)~~ Class Principal Balance of the ~~Accrued Certificate Interest thereon for such Distribution~~ Class B Certificates shall be distributed pursuant to this Section 3.11 to the Class B Certificateholders, as applicable. With respect to each Payment Date, ~~(b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~the Indenture Trustee, to the extent the Servicer has provided the Mortgage Loan data delivered by the Servicer to the Indenture Trustee pursuant to Section 4.09(a) of the ~~sum~~ Sale and Servicing Agreement (the “Indenture Trustee Report”), shall deliver or make available the report to be provided by the Indenture Trustee pursuant to Section 4.09 of the ~~remaining Group I Available Funds, Group II Available Funds~~ Sale and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon Servicing Agreement for such ~~Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in~~ Payment Date to each ~~case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Residual Certificateholder. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Trust Agreement (IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2007-H1)

Distributions on the Certificates. (a) ~~Interest and principal on the Certificates will be distributed monthly on~~ On each Distribution Date, ~~commencing in October 2004, in~~ an ~~aggregate~~ amount equal to the ~~Available~~ Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Trustee from the Distribution Account to the extent of funds on deposit therein and distributed as directed in accordance with distribution instructions provided to it by the Securities Administrator for such Distribution Date, in the following order of priority: First, Interest Funds will be distributed, in the following manner and order of priority: 1. On From Interest Funds, to the Class A-1 Certificates, the Current Interest and then any Interest Carry Forward Amount, in each case, for such Class for such Distribution Date; 2. From remaining Interest Funds, to the Class M-1, the Class M-2 and the Class B Certificates, sequentially, in that order, the Current Interest for each such Class; 3. Any Excess Spread, to the extent necessary to cause the Overcollateralization Amount to equal to the Overcollateralization Target Amount, will be the Extra Principal Distribution Amount and will be included as part of the Principal Distribution Amount and distributed in accordance with second (A) and (B) below; and 4. Any Remaining Excess Spread will be applied as Excess Cashflow pursuant to clauses Third through Eleventh below. Notwithstanding the provisions of clause first 3 and 4, above, on the first Distribution Date, the ~~Paying Agent will~~Excess Spread (exclusive of any amount thereof necessary to offset any Realized Losses for such Distribution Date) will be paid to the holders of the Class B-IO Certificates. On any Distribution Date, any shortfalls resulting from the application of the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of Current Interest herein. Second, to pay as principal on the Certificates entitled to payments of principal, in the following order of priority: (A) For each Distribution Date (i) prior to the ~~distribution of Available~~ Stepdown Date or (ii) on which a Trigger Event is in effect, from the Principal Funds ~~to any Certificate, distribute~~ and the ~~First Distribution Date~~ Extra Principal Distribution Amount to for such Distribution Date: 1. To the Class X A-1 Certificates~~, as follows: (i) from Group I Available Funds~~, an amount equal to the ~~product of~~ Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 2. To the Class M-1 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; 3. To the Class M-2 Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and 4. To the Class B Certificates, any remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to zero; and (xB) ~~the First~~ For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from the Principal Funds and the Extra Principal Distribution Amount ~~and (y)~~ for such Distribution Date: 1. To the ~~Component 1X Distribution Percentage; (ii) from Group II Available Funds~~Class A-1 Certificates, an amount equal to the ~~product of (x)~~ Class A Principal Distribution Amount, until the ~~First~~ Certificate Principal Balance thereof is reduced to zero; 2. To the Class M-1 Certificates, from any remaining Principal Distribution ~~Date~~ Amount, the Class M-1 Principal Distribution ~~Amount and (y)~~ Amount, until the ~~Component 2X~~ Certificate Principal Balance thereof is reduced to zero; 3. To the Class M-2 Certificates, from any remaining Principal Distribution ~~Percentage~~Amount, the Class M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and ~~(iii)~~ 4. To the Class B Certificates, from ~~Group III Available Funds~~any remaining Principal Distribution Amount, ~~an amount equal~~ the Class B Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; Third, from any remaining Excess Cashflow, the following amounts to the ~~product of~~ Class A Certificates: (xa) any Interest Carry Forward Amount to the extent not paid pursuant to clause First 1 above and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution ~~Date Distribution~~ Date; Fourth, from any remaining Excess Cashflow, the following amounts to the Class M-1 Certificates: (a) any Interest Carry Forward Amount and then (yb) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Fifth, from any remaining Excess Cashflow, the ~~Component 3X~~ following amounts to the Class M-2 Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution ~~Percentage~~Date; Sixth, from any remaining Excess Cashflow, the following amounts to the Class B Certificates: (a) any Interest Carry Forward Amount and then (b) any Unpaid Realized Loss Amount, in each case for such Class for such Distribution Date; Seventh, from any remaining Excess Cashflow, to the Class A Certificates, any Basis Risk Shortfall and any Basis Risk Shortfall Carry Forward Amount for such Class for such Distribution Date; Eighth, from any remaining Excess Cashflow, to the Class M-1, Class M-2 and Class B Certificates, in that order, any Basis Risk Shortfall and any Basis Risk Shortfall Carry Forward Amount, in each case for such Class for such Distribution Date; Ninth, from any remaining Excess Cashflow, to the Class B-IO Certificates, the Class B-IO Distribution Amount; Tenth, from any remaining Excess Cashflow, to the Class B-IO Certificates, any unreimbursed Class B-IO Advances; and Eleventh, any remaining amounts to the Residual Certificates. All payments of amounts in respect of Basis Risk Shortfall or Basis Risk Shortfall Carry Forward Amount made pursuant to the provisions of this paragraph (a) shall, for federal income tax purposes, be deemed to have been distributed from REMIC II to the holder of the Class B-IO Certificates and then paid outside of any 2004-4 REMIC to the recipients thereof pursuant to an interest rate cap contract. By accepting their Certificates the holders of the Certificates agree so to treat such payments for purposes of filing their income tax returns. (Ab) On each Distribution Date, the ~~Group I Available Funds (or on~~ related Cap Contract Payment Amount with respect to such Payment Date shall be distributed in the ~~first Distribution Date~~following order of priority, ~~the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount~~ in each case to the ~~Class X Certificates~~extent of amounts available: (i) ~~will be distributed to the Group I Senior Certificates and the Class X Certificates as follows:~~ first, to the ~~Group I Senior Certificates and Component 1X~~ holders of the related Class X of Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount payment of any ~~Carryover~~ Basis Risk Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover or Basis Risk Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Carry Forward Amount for such Distribution Date, ~~until~~ to the extent not covered by Excess Cashflow for such Distribution Date; (ii) second, from any remaining amounts, the payment of an amount equal to any Current ~~Principal Amounts~~ Interest and Interest Carry Forward Amount for the related Class of Certificates to the extent not covered by Interest Funds or Excess Cashflow on such ~~Classes have been reduced~~ Distribution Date; (iii) third, from any remaining amounts, available from the Cap Contracts relating to ~~zero~~the Class A-1 Certificates, to the Class M-1, the Class M-2 and the Class B Certificates, in that order, to the extent not paid pursuant to clauses (i) or (ii) above; ~~and~~ and (iv) fourth, to the ~~extent~~ Class B-IO Certificates, any remaining amount. All Cap Contract Payment Amounts made with respect to Current Interest and Interest Carry Forward Amounts will be treated, for federal income tax purposes, as reimburseable advances ("Class B-IO Advances") made from the holder of ~~remaining Group I Available Funds~~the Class B-IO Certificates. Such Class B-IO Advances will be paid back to the holder of the Class B-IO Certificate pursuant to Section 6.01(a). (c) On each Distribution Date, all amounts representing Prepayment Charges in respect of the Prepayment Charge Loans received during the related Prepayment Period will be withdrawn from the Distribution Account and distributed by the Trustee to the Class ~~A-1A~~ XP Certificates and shall not be available for distribution to the holders of any other Class ~~A-1B~~ of Certificates. The payment of such Prepayment Charges shall not reduce the Certificate Principal Balance of the Class XP Certificates. In addition, as provided in Section 4.07 hereof, on the Distribution Date immediately following the Prepayment Period in which the last Prepayment Charge is collectible on the Prepayment Charge Loans, which Prepayment Period is the month of March 2010, the Trustee shall distribute the amount on deposit in the Class XP Reserve Account to the Class XP Certificates in reduction of the ~~respective Current~~ Certificate Principal ~~Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date,~~ Balance thereof until the ~~respective Current~~ Certificate Principal ~~Amounts of each such Class has been~~ Balance thereof is reduced to zero. (Bd) ~~On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution~~ The expenses and fees of the ~~First Distribution Date Distribution Amount to the Class X Certificates) will~~ Trust shall be ~~distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X~~ paid by each of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second2004-4 REMICs, to the extent ~~of remaining Group II Available Funds,~~ that such expenses relate to the ~~Class A-2 Certificates~~ assets of each of such respective 2004-4 REMICs, and ~~Component 2X~~ all other expenses and ~~Component 3X~~ fees of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X Trust shall be paid pro rata by each of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero2004-4 REMICs. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Bear Stearns Trust Mortgage Pass-Through Certs Ser 2004)

Distributions on the Certificates. ~~(a) Interest and principal on the Certificates~~ The Certificateholders will be ~~distributed monthly~~ entitled to distributions on each ~~Distribution~~ Payment Date, ~~commencing~~ as provided in ~~October 2004~~this Agreement, the Sale and Servicing Agreement and the Indenture. With respect to any Payment Date, any amounts remaining in ~~an aggregate amount equal~~ the Payment Account for payment to the ~~Available Funds for such Distribution Date. On~~ Certificateholders pursuant to Section 5.01(a)II of the ~~first Distribution Date~~Sale and Servicing Agreement, ~~the Paying Agent will, prior~~ to the ~~distribution of Available Funds to any Certificate~~extent such funds are received by the Owner Trustee, ~~distribute~~ shall be distributed by the ~~First Distribution Date Distribution Amount to the Class X Certificates,~~ Owner Trustee as follows: (i) ~~from Group I Available Funds~~with respect to any Payment Date during the Managed Amortization Period, ~~an amount equal~~ concurrently, to the ~~product~~ Class B Certificateholders and the Class L Certificateholders, pro rata based on their respective Class Principal Balances, provided that, if such Payment Date is a Payment Date immediately following the expiration of ~~(x)~~ the ~~First Distribution~~ latest prepayment charge term on a Mortgage Loan identified on the Mortgage Loan Schedule, or any Payment Date ~~Distribution Amount~~ thereafter, then such funds shall be distributed first, to the holders of the Class P Certificates until the Class Principal Balance thereof is reduced to zero and ~~(y)~~ second, to the ~~Component 1X Distribution Percentage;~~Class B Certificateholders and the Class L Certificateholders, pro rata based on their respective Class Principal Balances; and (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to ~~Component 1X and Component 3X of~~ any Payment Date during the ~~Class X Certificates~~Rapid Amortization Period, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Fundsconcurrently, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or ComponentB Certificateholders; provided, ~~however~~further, ~~that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts~~ on the ~~Class A-2 Certificates and that~~ Payment Date on which the ~~amount of Accrued Certificate Interest paid to~~ Optional Redemption Price is distributed, the ~~Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~portion, ~~Class B-1~~if any, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount Optional Redemption Price equal to the sum of the ~~remaining Group I Available Funds, Group II Available Funds~~ Class Principal Balance of the Class L Certificates and ~~Group III Available Funds after~~ the ~~distributions in (A), (B) and (C) above will~~ Class Principal Balance of the Class P Certificate shall be distributed pursuant to this Section 3.11 to the Class ~~M Certificates~~L Certificateholders and the Class P Certificateholders, ~~up to an amount~~ respectively, and the portion remaining, if any, of the Optional Redemption Price equal to ~~and in~~ the ~~following order: (a)~~ Class Principal Balance of the ~~Accrued Certificate Interest thereon for such Distribution~~ Class B Certificates shall be distributed pursuant to this Section 3.11 to the Class B Certificateholders, as applicable. With respect to each Payment Date, ~~(b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~the Indenture Trustee, to the extent the Servicer has provided the Mortgage Loan data delivered by the Servicer to the Indenture Trustee pursuant to Section 4.09(a) of the ~~sum~~ Sale and Servicing Agreement (the "Indenture Trustee Report"), shall deliver or make available the report to be provided by the Indenture Trustee pursuant to Section 4.09 of the ~~remaining Group I Available Funds, Group II Available Funds~~ Sale and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon Servicing Agreement for such ~~Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in~~ Payment Date to each ~~case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Residual Certificateholder. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Trust Agreement (IndyMac Home Equity Mortgage Loan Asset-Backed Trust, Series 2006-H1)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Securities Administrator monthly on each Distribution Date, commencing in ~~October 2004~~January 2006, as instructed by the Master Servicer or the Securities Administrator, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the ~~Group I~~ Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the ~~Group I~~ following order of priority among the Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior~~ Class A Certificates and ~~Component 1X of the~~ Class X A-IO Certificates, pro rata, the Accrued Certificate Interest on each ~~such Class or Component~~ class of Senior Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the ~~Class X~~ Senior Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among ~~such~~ the Certificates as described below; provided, however, that with respect to the Senior Certificates on each Distribution Date, the interest distribution amount that would otherwise be distributed to the Class ~~A-1A~~ A-IO Certificates will be reduced by the Required Reserve Fund Deposit (as defined below) and will not be distributed to the Class A-IO Certificates; second, to the Class A Certificates and Class ~~A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~A-IO Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining ~~Group I~~ Available Funds, any shortfall in available amounts being allocated to the ~~Group I~~ Senior Certificates ~~and Component 1X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, the~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for each Class of Senior Certificates for such Distribution ~~Dates (other than, with respect to Component 1X~~ Date; and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the ~~extent of remaining Group I Available Funds, to the~~ Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B A Certificates, in reduction of the ~~respective Current Principal Amounts~~ Class Certificate Balance thereof, the ~~remaining Group I~~ Senior ~~Optimal~~ Principal Distribution Amount for such Distribution ~~Date~~Date to the extent of remaining Available Funds, until the ~~respective Current Principal Amounts~~ Class Certificate Balance of ~~each~~ such Class has been reduced to zero. (B) On each Distribution Date on or prior to the Distribution Date on which the Class Certificate Balances of the Subordinate Certificates are reduced to zero (the “Credit Support Depletion Date”), an amount equal to the ~~Group II~~ remaining Available Funds after the distributions in clause (~~or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates~~A) above will be distributed to sequentially, in the ~~Class A-2 Certificates and the Class X Certificates as follows~~following order: first, to the Class ~~A-2 Certificates~~ ▇-▇, ▇▇▇▇▇ ▇-▇, Class M-3 and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~, Class B-1, Class B-2 and Class B-3~~ -IO Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date; provided, however, that with respect to the Class M Certificates on each Distribution Date, the interest distribution amount that would otherwise be distributed to the Class M-IO Certificates will be reduced by the Required Reserve Fund Deposit and will not be distributed to the Class M-IO Certificates, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class~~'s Allocable Share~~ ’s (other than the Class M-IO Certificates) Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the ~~sum of the~~ remaining ~~Group I Available Funds, Group II~~ Available Funds ~~and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below~~second, ~~on each Distribution Date on or prior~~ from the Reserve Fund, to the ~~Cross~~classes of LIBOR Certificates, Class A-~~Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds~~ IO Certificates and ~~Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially~~Class M-IO Certificates, in the ~~following order~~manner, order and priority third, to the Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class~~'s Allocable Share~~ ’s Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates~~; provided~~ . It is not anticipated that if there will be any significant amounts remaining for such distribution. (D) In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Protected Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a), and so on. Holders of such Certificates will not be entitled to any payment in respect of Current Interest on the amount of such increases for any Interest Accrual Period preceding the Distribution Date ~~there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto,~~ on which such ~~amounts will~~ increase occurs. Any such increases shall be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed applied to the Class ~~R-III Certificates~~Certificate Balance of each Certificate of such Class in accordance with its respective Percentage Interest. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrilll Lynch Mortgage Investors Trust, Series 2005-A10)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to the Certificates is the interest which has accrued thereon at the then applicable related Certificate Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls, if any. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first Distribution~~ related Swap Payment Date, with respect to payments to the ~~Group I Available~~ Supplemental Interest Trust), the Interest Funds ~~remaining following the distribution of the First~~ for such Distribution Date ~~Distribution Amount~~ are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class X P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) ~~will be distributed~~ any amounts paid by the Sponsor or the related Servicer in respect of Prepayment Charges pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the ~~Group I Senior Certificates and~~ Supplemental Interest Trust, any Net Swap Payments owed to the ~~Class X Certificates as follows: first~~Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to ~~the Group I Senior Certificates and Component 1X~~ each class of the ~~Class X~~ Senior Certificates, the ~~Accrued Certificate~~ Current Interest ~~on each such Class or Component for such Distribution Date,~~ and ~~to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate~~ any Interest ~~on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed~~ Carry Forward Amount with respect to each such ~~Class or Component~~class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of ~~Accrued Certificate~~ Current Interest ~~paid~~ and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class ~~X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B~~ M-1 Certificates, the Current Interest for such class and ~~that the amount of Accrued Certificate~~ any Interest ~~paid~~ Carry Forward Amount with respect to such class; (vi) to the Class ~~X Certificates pursuant~~ M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to ~~this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on~~ such class; (vii) to the Class MM-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class ~~B-1~~M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, ~~in each case~~ the Current Interest for ~~that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and~~ each such ~~Component of the Class X Certificates is subject to reduction in the event of certain Net~~ class and any Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, Carry Forward Amount with respect to ~~Component 1X and Component 3X of the Class X Certificates,~~ each such class; and (xiv) any ~~amounts~~ remainder pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (BSection 6.01(g) hereof. On each Distribution Date, subject to the proviso in (iv) above, the Interest Funds received on the Group ~~II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount~~ 1 Mortgage Loans will be deemed to be distributed to the Class X R and Class A-1 Certificates) , Interest Funds received on the Group 2 Mortgage Loans will be deemed to be distributed to the Class A-2 Certificates and ~~the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate~~ Interest Funds received on ~~each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates,~~ the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X 3 Mortgage Loans will be ~~reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid~~ deemed to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in ~~reduction~~ each case, until the related Current Interest and Interest Carry Forward Amount of ~~the Current Principal Amount thereof, the Group III~~ each such class or classes of Senior ~~Optimal Principal Amount~~ Certificates for such Distribution ~~Date, until the Current Principal Amount of such Class~~ Date has been ~~reduced~~ paid in full. Thereafter, Interest Funds not required for such distributions are available to ~~zero. (D) Except as provided in paragraphs (F) and (G) below~~be applied to if necessary, ~~on each Distribution Date on or prior~~ to the ~~Cross-Over Date, an amount equal~~ class or classes of Senior Certificates that are not related to ~~the sum~~ such group of ~~the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed~~ Mortgage Loans. With respect to ~~the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such~~ any Distribution Date~~, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~, to the extent that the Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in pro rata, based upon the amount of interest each ~~case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for~~ such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class ~~or Classes of Senior Certificates (other than the Interest Only Certificates) will~~ would otherwise be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates.[RESERVED] (e) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any ~~amounts in~~ Net Swap Payments owed to the ~~Carryover Shortfall Reserve Fund~~ Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior Certificates, the Senior Principal Distribution Amount shall be distributed as follows: (1) the Group 1 Principal Distribution Amount shall be distributed as follows: (I) first, to the Class R Certificate until its Class Certificate Balance has been reduced to zero, and second, to the Class A-1 Certificates, until the Class Certificate Balance of such Class has been reduced to zero; (2) the Group 2 Principal Distribution Amount will be distributed~~, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates~~, pro rata, based on ~~Accrued~~ the Class Certificate ~~Interest~~ Balance for each Class of the Class A-2 Certificates; provided, however, that on ~~each such Class,~~ and ~~then sequentially to~~ after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class ~~B-1~~B and Class C Certificates has been reduced to zero and the Stated Principal Balance of the Mortgage Loans is equal to or less than the aggregate Class Certificate Balance of the Senior Certificates, any principal distributions will be allocated sequentially (i) first, to the Class A-2A Certificates, until its Class Certificate Balance is reduced to zero and (ii) second, to the Class A-2B Certificates, until its Class Certificate Balance is reduced to zero; and (3) the Group 3 Principal Distribution Amount will be distributed, pro rata, based on the Class Certificate Balance for each Class of the Class A-3 Certificates as follows: (i) first, to the Class A-3A Certificates until the Class Certificate Balance of such class is reduced to zero, second, to the Class A-3B Certificates, until the Class Certificate Balance of such class is reduced to zero, and third, to the Class A-3C, until the Class Certificate Balance of such class is reduced to zero and (ii) to the Class A-3D Certificates until the Class Certificate Balance of such Class has been reduced to zero; provided, however, that on and after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class ~~B-2~~ B and Class C Certificates has been reduced to zero, the Group 3 Principal Distribution Amount will be distributed sequentially (i) first, to the Class A-3A, Class A-3B and Class A-3C Certificates, pro rata, among such classes, based on their respective Class Certificate Balances, until their Class Certificate Balances have been reduced to zero and (ii) second, to the Class A-3D Certificates, until its Class Certificate Balance is reduced to zero (iv) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 ~~Certif~~Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. If on any Distribution Date any Mortgage Group would be an Undercollateralized Group after distributions on such date, then payments that would otherwise be made pursuant to clauses (iv) through (xiii) above (such reallocations to be made first from the most subordinated Class of Certificates) shall be made to the Senior Certificates of the Undercollateralized Group until such Loan Group is no longer an Undercollateralized Group. (f) [RESERVED] (g) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xiv) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xv) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xv) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Class Certificate Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on such Distribution Date, the Securities Administrator shall allocate the Realized Loss Amount for the Certificates to reduce the Class Certificate Balances of the Class C Certificates and the Subordinate Certificates in the following order of priority: (i) to the Class C Certificates, until the Class C Class Certificate Balance is reduced to zero; (ii) to the Class B-3 Certificates until the Class B-3 Class Certificate Balance is reduced to zero; (iii) to the Class B-2 Certificates until the Class B-2 Class Certificate Balance is reduced to zero; (iv) to the Class B-1 Certificates until the Class B-1 Class Certificate Balance is reduced to zero; (v) to the Class M-6 Certificates until the Class M-6 Class Certificate Balance is reduced to zero; (vi) to the Class M-5 Certificates until the Class M-5 Class Certificate Balance is reduced to zero; (vii) to the Class M-4 Certificates until the Class M-4 Class Certificate Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Class Certificate Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Class Certificate Balance is reduced to zero; and (x) to the Class M-1 Certificates until the Class M-1 Class Certificate Balance is reduced to zero. (k) Subject to Section 10.02 hereof respecting the final distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the Master Servicer shall prepare and deliver an electronic report (the "Remittance Report") to the Securities Administrator (or by such other means as the Master Servicer and the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions for the related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, which in turn shall be based on information from the Servicers and the Cap Contract Counterparty. (l) The Securities Administrator is hereby directed by the Depositor to execute the Corridor Contracts on behalf of the Issuing Entity in the form presented to it by the Depositor and shall have no responsibility for the contents of such Corridor Contracts, including, without limitation, the representations and warranties contained therein. Any funds payable by the Issuing Entity under the Corrid

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-A2)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Trustee monthly on each Distribution ~~Date~~Date from funds on deposit in the Certificate Account, commencing in ~~October 2004~~March 1998, in an aggregate amount equal to the Available Funds for such Distribution ~~Date. On~~ Date in the ~~first Distribution Date~~following order of priority: FIRST, ~~the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount~~ to the Class X Certificates, as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior A Certificates and the Class ~~X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates~~R Certificate, the Accrued Certificate Interest on each such Class ~~or Component~~ for such Distribution Date, ~~and~~ any shortfall in available amounts being allocated between such Classes in proportion to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g)otherwise distributable thereon; second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available FundsSECOND, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 A Certificates and the Class ~~X Certificates as follows: first~~R Certificate, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution ~~Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~Dates, to the extent of ~~the sum of the~~ remaining ~~Group I~~ Available Funds, ~~Group II Available Funds~~ any shortfall in available amounts being allocated between such Classes in proportion to the amount of such Accrued Certificate Interest remaining undistributed for each such Class for such Distribution Date; THIRD, sequentially to the Class R Certificate and ~~Group III Available Funds. (E) Except as provided~~ then to the Class A Certificates, in ~~paragraphs (F) and (G) below~~reduction of the Current Principal Amounts thereof, ~~on each~~ the Senior Optimal Principal Amount for such Distribution Date ~~on or prior~~ to the ~~Cross-Over Date, an amount equal to the sum~~ extent of ~~the~~ remaining ~~Group I~~ Available Funds, ~~Group II Available Funds and Group III Available Funds after~~ until the ~~distributions in (A)~~Current Principal Amounts thereof have been reduced to zero; FOURTH, ~~(B), (C) and (D) above will be distributed~~ sequentially~~, in the following order~~, to the Class ~~B-1,~~ B-1 and then to the Class ~~B-2, Class B-3, Class B-4, Class B-5 and Class B-6~~ B-2 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of until the Current Principal Amount of ~~any of~~ the ~~Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates~~ respective Class has been reduced to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, ~~any~~ Available Funds remaining after payment of interest and principal to the ~~Classes of~~ Certificates entitled thereto, as described above, will be distributed to the Class ~~R-III Certificates; provided~~ R Certificate. It is not anticipated that ~~if on any Distribution Date~~ there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be ~~distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all~~ any significant amounts ~~due to all~~ remaining for such ~~Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates~~distribution. (eb) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on No Accrued Certificate Interest will be payable with respect to any Class of Certificates after the Distribution Date on ~~each~~ which the outstanding Current Principal Amount of such ~~Class, and then sequentially~~ Certificate has been reduced to ~~the Class M, Class B-1, Class B-2 and Class B-3 Certif~~zero.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Bear Stearns Mortgage Securities Inc)

Distributions on the Certificates. (a) ~~Interest and principal on the Certificates will be distributed monthly on~~ On each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows: (i) from Group I Available Funds, an amount equal to the ~~product of (x) the First~~ Interest Funds and Principal Funds for such Distribution Date shall be withdrawn by the Trustee from the Distribution Account and distributed as directed in accordance with the Remittance Report for such Distribution Date, in the following order of priority: FIRST, to pay any accrued and unpaid interest on the Certificates, in the following order of priority: 1. From Interest Funds, to the Class A Certificates, the Current Interest and then any Interest Carry Forward Amount for such Class; 2. From remaining Interest Funds, to the Class M-1 Certificates, the Class M-2 Certificates and the Class M-3 Certificates, sequentially, in that order, the Current Interest for each such Class; 3. Any Excess Spread to the extent necessary to meet a level of overcollateralization equal to the Overcollateralization Target Amount will be the Extra Principal Distribution Amount and ~~(y)~~ will be included as part of the ~~Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date~~ Principal Distribution Amount and distributed in accordance with clauses 1, 2, 3 and 4 of SECOND (yA) ~~the Component 2X Distribution Percentage~~below; and ~~(iii) from Group III Available Funds, an amount equal~~ 4. Any Remaining Excess Spread will be added to ~~the product of (x) the First Distribution Date Distribution~~ any Excess Overcollateralization Amount and ~~(y)~~ will be applied as Excess Cashflow pursuant to clauses THIRD through NINTH below. Notwithstanding the ~~Component 3X Distribution Percentage. (A) On each Distribution Date~~provisions of clause FIRST 3 and 4, ~~the Group I Available Funds (or~~ above, on the first Distribution Date, the ~~Group I Available Funds remaining following the distribution~~ Excess Spread (exclusive of ~~the First Distribution Date Distribution Amount~~ any amount thereof necessary to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component offset any Realized Losses for such Distribution Date~~, and~~ ) will be paid to ~~Component 3X~~ the holders of the Class X B-IO Certificates. On any Distribution Date, any shortfalls resulting from the ~~Group I Allocation Fraction~~ application of ~~Accrued Certificate~~ the Relief Act and any Prepayment Interest Shortfalls to the extent not covered by Compensating Interest Payments will be allocated as set forth in the definition of "Current Interest" herein. SECOND, to pay as principal on ~~such Component~~ the Certificates entitled to payments of principal, in the following order of priority: (A) For each Distribution Date (i) prior to the Stepdown Date or (ii) on which a Trigger Event is in effect, from the Principal Funds for such Distribution Date~~, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to~~ : 1. To the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X A Certificates, the ~~Accrued~~ Principal Distribution Amount until the Certificate ~~Interest thereon pursuant~~ Principal Balance thereof is reduced to ~~clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of~~ zero; 2. To the Class X M-1 Certificates, any ~~amounts pursuant~~ remaining Principal Distribution Amount until the Certificate Principal Balance thereof is reduced to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to zero; 3. To the Class R M-2 Certificates, ~~pro rata, in reduction of the respective Current~~ any remaining Principal ~~Amounts thereof, the Group I Senior Optimal Principal~~ Distribution Amount ~~for such Distribution Date,~~ until the ~~Current~~ Certificate Principal ~~Amounts of such Classes have been~~ Balance thereof is reduced to zero; ~~and fourth, to the extent of remaining Group I Available Funds, to~~ and 4. To the Class ~~A-1A and Class A-1B~~ M-3 Certificates, ~~in reduction of the respective Current~~ any remaining Principal ~~Amounts thereof, the remaining Group I Senior Optimal Principal~~ Distribution Amount ~~for such Distribution Date,~~ until the ~~respective Current~~ Certificate Principal ~~Amounts of each such Class has been~~ Balance thereof is reduced to zero. (B) On For each Distribution Date on or after the Stepdown Date, so long as a Trigger Event is not in effect, from the ~~Group II Available~~ Principal Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date~~, and to Component 3X of~~ : 1. To the Class ~~X Certificates,~~ A Certificates from the ~~Group II Allocation Fraction of Accrued Certificate Interest on such Component for such~~ Principal Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, the Class A Principal Distribution Amount until the ~~Current~~ Certificate Principal ~~Amount of such Class has been~~ Balance thereof is reduced to zero.; ~~(C) On each~~ 2. To the Class M-1 Certificates, from any remaining Principal Distribution ~~Date~~Amount, the ~~Group III Available Funds will be distributed~~ Class M-1 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; 3. To the Class M-2 Certificates, from any remaining Principal Distribution Amount, the Class M-2 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; and 4. To the Class M-3 Certificates, from any remaining Principal Distribution Amount, the Class M-3 Principal Distribution Amount, until the Certificate Principal Balance thereof is reduced to zero; THIRD, from any remaining Excess Cashflow, to the Class ~~A-3 Certificates and~~ A Certificates, any remaining Interest Carry Forward Amount for such Class to the ~~Class X Certificates as follows: first~~extent not fully paid pursuant to subclause FIRST 1 above; FOURTH, ~~pro rata~~from any remaining Excess Cashflow, to the ~~Group III Senior Certificates~~Class M-1 Certificates an amount equal to (a) any Interest Carry Forward Amount, ~~the Accrued Certificate Interest on~~ and then (b) any Unpaid Realized Loss Amount for such Class for such Distribution Date; FIFTH, from any remaining Excess Cashflow, to the Class M-2 Certificates an amount equal to (a) any Interest Carry Forward Amount, and ~~to Component 3X of the~~ then (b) any Unpaid Realized Loss Amount for such Class ~~X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component~~ for such Distribution Date; ~~provided~~SIXTH, ~~however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of~~ from any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining ~~Group III Available Funds~~Excess Cashflow, to the Class ~~A-3~~ M-3 Certificates an amount equal to (a) any Interest Carry Forward Amount, and ~~Component 3X of the~~ then (b) any Unpaid Realized Loss Amount for such Class ~~X Certificates~~for such Distribution Date; SEVENTH, any ~~Accrued Certificate Interest thereon pursuant to clause first~~ remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available FundsExcess Cashflow, to the Class ~~A-3~~ A, Class M-1, Class M-2 and Class M-3 Certificates, in ~~reduction of the Current Principal Amount thereof~~that order, ~~the Group III Senior Optimal Principal~~ any Basis Risk Shortfall Carryforward Amount for such Distribution Date; EIGHTH, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the from any remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following orderExcess Cashflow, to the Class ~~B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6~~ B-IO Certificates, ~~in each case up to an amount equal to~~ the Class B-IO Distribution Amount; and ~~in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date~~NINTH, ~~(b)~~ any ~~Accrued Certificate Interest thereon~~ remaining ~~undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case,~~ amounts to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Residual Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mort Inv Inc Mort Pass THR Cert Ser 2002-2)

Distributions on the Certificates. ~~(a) Interest and principal on the Certificates~~ The Certificateholders will be ~~distributed monthly~~ entitled to distributions on each ~~Distribution~~ Payment Date, ~~commencing~~ as provided in ~~October 2004~~this Agreement, the Sale and Servicing Agreement and the Indenture. With respect to any Payment Date, any amounts remaining in ~~an aggregate amount equal~~ the Payment Account for payment to the ~~Available Funds for such Distribution Date. On~~ Certificateholders pursuant to Section 5.01(a)(II) of the ~~first Distribution Date~~Sale and Servicing Agreement, ~~the Paying Agent will, prior~~ to the ~~distribution of Available Funds to any Certificate~~extent such funds are received by the Owner Trustee, ~~distribute~~ shall be distributed by the ~~First Distribution Date Distribution Amount to the Class X Certificates,~~ Owner Trustee as follows: (i) ~~from Group I Available Funds~~with respect to any Payment Date during the Managed Amortization Period, ~~an amount equal~~ concurrently, to the ~~product of (x)~~ Class B Certificateholders and the ~~First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage;~~Class L Certificateholders, pro rata based on their respective Class Principal Balances; and (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to ~~Component 1X and Component 3X of~~ any Payment Date during the ~~Class X Certificates~~Rapid Amortization Period, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Fundsconcurrently, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or ComponentB Certificateholders; provided, ~~however~~further, ~~that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts~~ on the ~~Class A-2 Certificates and that~~ Payment Date on which the ~~amount of Accrued Certificate Interest paid to~~ Optional Redemption Price is distributed, the ~~Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M~~portion, ~~Class B-1~~if any, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount Optional Redemption Price equal to the sum of the ~~remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after~~ Class Principal Balance of the ~~distributions in (A), (B) and (C) above will~~ Class L Certificates shall be distributed pursuant to this Section 3.11 to the Class ~~M Certificates~~L Certificateholders, ~~up to an amount~~ and the portion remaining, if any, of the Optional Redemption Price equal to ~~and in~~ the ~~following order: (a)~~ Class Principal Balance of the ~~Accrued Certificate Interest thereon for such Distribution~~ Class B Certificates shall be distributed pursuant to this Section 3.11 to the Class B Certificateholders, as applicable. With respect to each Payment Date, ~~(b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~the Indenture Trustee, to the extent the Servicer has provided the Mortgage Loan data delivered by the Servicer to the Indenture Trustee pursuant to Section 4.09(a) of the ~~sum~~ Sale and Servicing Agreement (the "Indenture Trustee Report"), shall deliver or make available the report to be provided by the Indenture Trustee pursuant to Section 4.09 of the ~~remaining Group I Available Funds, Group II Available Funds~~ Sale and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon Servicing Agreement for such ~~Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in~~ Payment Date to each ~~case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Residual Certificateholder. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Trust Agreement (Indymac MBS Inc)

Distributions on the Certificates. (a) Interest and principal (as applicable) on the Certificates (other than the Class R Certificates and the Class XP Certificates) of each Certificate Group will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~July 2005, in an ~~aggregate~~ amount equal to the Available Funds for the related Loan Group on deposit in the Distribution Account for such Distribution Date and the Pre-Funding Reserve Account in respect of each Loan Group for such Distribution Date. On In addition, on the ~~first~~ Distribution ~~Date~~Date occurring in July 2005, the ~~Paying Agent will, prior~~ Class R Deposit will be distributed to the ~~distribution~~ Holder of ~~Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to~~ the Class ~~X Certificates, as follows: (i) from Group I Available Funds, an amount equal to~~ R Certificates in reduction of the ~~product of (x) the First Distribution Date Distribution~~ Current Principal Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) thereof. On each Distribution Date, the ~~Group I~~ Available Funds for each Loan Group on deposit in the Distribution Account shall be distributed as follows: (or A) (I) on ~~the first~~ each Distribution Date, the Available Funds for Loan Group I ~~Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the ~~Group I Senior~~ Class I-A Certificates and the ~~Class X Certificates~~ Group I Component as follows: first, to the Class I-A Certificates and Group I ~~Senior Certificates and Component 1X of the Class X Certificates~~Component, the Accrued Certificate Interest on each such Class or ~~Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such~~ Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component~~; provided~~, ~~however, that the amount of Accrued Certificate Interest paid~~ and with respect to the Class ~~X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A~~ I-A Certificates and ~~Class A-1B Certificates, and that~~ the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that initial Distribution Date, ~~which will be deposited into~~ including amounts withdrawn from the ~~Carryover Shortfall~~ Class A Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the ~~extent of remaining Group I Available Funds~~Class I-A Certificates, any Carryover Shortfall Amounts due to such Class I-A Certificates (in accordance with clause (D) below) to the ~~Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates,~~ extent such amount was deducted from the Accrued Certificate Interest on the Group I Component for such Distribution Date; third, to the Class I-A Certificates and the Group I Component, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund)~~Dates, pro rata, based on the undistributed Accrued Certificate Interest owed to each ~~such~~ Class or Component~~; third~~, to the extent of remaining Available Funds for Loan Group ~~I Available Funds~~I; and fourth, to the ~~Class R Certificates, pro rata, in reduction~~ extent of ~~the respective Current Principal Amounts thereof~~remaining Available Funds for Loan Group I, the ~~Group I~~ related Senior Optimal Principal Amount for such Distribution Date, ~~until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to~~ to: (i) the Class ~~A-1A and Class A-1B~~ I-A Certificates, pro rata, in reduction of ~~the respective~~ their Current Principal ~~Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date~~Amounts, until ~~the respective Current Principal Amounts of~~ each such Class has been reduced to zero. , and then (Bii) ~~On each Distribution Date,~~ the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or I Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the ~~Current~~ Component I-X-1 Principal ~~Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date~~Balance, until ~~the Current Principal Amount of~~ such ~~Class~~ amount has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Pooling and Servicing Agreement (GreenPoint MTA Trust 2005-Ar3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Trustee monthly on each Distribution Date, commencing in ~~October 2004~~June 2005, as instructed by the Master Servicer or the Securities Administrator, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the following order of priority among the Group I Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior Certificates and Component 1X of the~~ Class X I-A Certificates, the Accrued Certificate Interest on ~~each such~~ the Class ~~or Component~~ I-A Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the Class X I-A Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among such Class A-1A Certificates and Class A-1B Certificates and Components of~~ to the Class X I-A Certificates ~~in accordance with the provisions of Section 6.02(g)~~as described below; second, to the Class I-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I Available Funds, any shortfall in available amounts being allocated to the Class I-A Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Class I-A Certificates for such Distribution Date; and third, to the Class I-A Certificates, in reduction of the Class Certificate Balance thereof, the Group I Senior ~~Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous~~ Principal Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each Amount for such ~~Class or Component; third,~~ Distribution Date to the extent of remaining Group I Available Funds, to until the Class ~~R Certificates, pro rata, in reduction~~ Certificate Balance of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group II ~~Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2~~ Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class II-A-1, Class II-A-2 ~~Certificates~~ and ~~to Component 2X of the~~ Class X II-A-IO Certificates, pro rata, the Accrued Certificate Interest on each ~~such Class or Component~~ class of Group II Senior Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Group II Senior Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among~~ to the Group II Senior Certificates as described below; second, to the Class II-A-1, Class II-A-2 ~~Certificates~~ and ~~such Components of the~~ Class ~~X Certificates in accordance with the provisions of Section 6.02(g); second~~II-A-IO Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II Available Funds, any shortfall in available amounts being allocated to the Class ~~A-2~~ II Senior Certificates ~~and Component 2X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for the Group II Senior Certificates for such Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or ComponentDate; and third, sequentially, to the Class II-A-1 Certificates and Class II-A-2 Certificates, in that order, in reduction of the Class Certificate Balances thereof, the Group II Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group II Available Funds, to in each case until the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to in the ~~Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to~~ following order of priority among the Group III Senior Certificates except as otherwise noted: first, to the Class III-A Certificates, the Accrued Certificate Interest on ~~such~~ the Class III-A Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the Class ~~A-3 Certificates and each such Component of the Class X~~ III-A Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among~~ to the Class ~~A-3~~ III-A Certificates ~~and Components of~~ as described below; second, to the Class ~~X Certificates in accordance with the provisions of Section 6.02(g); second~~III-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group III Available Funds, any shortfall in available amounts being allocated to the Class ~~A-3~~ III-A Certificates ~~and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous Distribution Dates (other than, with respect to Component 3X of~~ for the Class ~~X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund)~~III-A Certificates for such Distribution Date; and third, to the Class III-A Certificates, in reduction of the Class Certificate Balance thereof, the Group III Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group III Available Funds, to until the Class ~~A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (D) ~~Except~~ On each Distribution Date, the Group IV Available Funds will be distributed in the following order of priority among the Group IV Senior Certificates except as ~~provided in paragraphs (F) and (G)~~ otherwise noted: first, to the Class IV-A Certificates, the Accrued Certificate Interest on the Class IV-A Certificates for such Distribution Date. As described below, Accrued Certificate Interest on the Class IV-A Certificates is subject to reduction in the event of certain interest shortfalls allocable thereto. Any interest shortfalls shall be allocated to the Class IV-A Certificates as described below; second, to the Class IV-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group IV Available Funds, any shortfall in available amounts being allocated to the Class IV-A Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Class IV-A Certificates for such Distribution Date; and third, to the Class IV-A Certificates, in reduction of the Class Certificate Balance thereof, the Group IV Senior Principal Distribution Amount for such Distribution Date to the extent of remaining Group IV Available Funds, until the Class Certificate Balance of such Class has been reduced to zero. (E) On each Distribution Date on or prior to the ~~Cross-Over~~ Distribution Date on which the Class Certificate Balances of the Subordinate Certificates are reduced to zero (the “Credit Support Depletion Date”), an amount equal to the sum of the remaining Group ~~I Available Funds~~I, Group ~~II Available Funds~~ II, Group III and Group ~~III~~ IV Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in clauses (A), (B), (C) and (D) above and after any distributions required to be made pursuant to clauses (F) and (G) below, will be distributed sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the ~~Cross-Over~~ Credit Support Depletion Date but after the reduction of the ~~Current Principal Amount of any~~ aggregate Class Certificate Balance of the ~~Group I Senior Certificates, Group II~~ related Senior Certificates or of a related Loan Group ~~III Senior Certificates~~ to zero, the remaining Class or Classes of related Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their ~~Current Principal Amounts~~Class Certificate Balances, pro rata based upon their Class Certificate Balances immediately prior to such Distribution Date, in addition to any ~~Principal Prepayments~~ principal prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if both (Aa) the weighted average ~~of the Senior Mezzanine and~~ Subordinate ~~Percentages on such Distribution Date~~ Percentage equals or exceeds ~~two times~~ approximately 10.00% on or after the ~~initial weighted average of the Senior Mezzanine and Subordinate Percentages~~ Distribution Date in June 2008 and (Bb) the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans delinquent 60 days or ~~more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust)~~more, averaged over the last six months, as a percentage of the ~~sum~~ aggregate Class Certificate Balance of the ~~aggregate Current Principal Amount of the Senior Mezzanine~~ Class M Certificates and ~~Subordinate~~ Class B Certificates, does not exceed 100%, then the additional allocation of ~~Principal Prepayments~~ principal prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificatesmade. (G) If on any Distribution Date on which the aggregate ~~Current Principal Amount~~ Class Certificate Balance of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group (the amount of such excess, the “Undercollateralized Amount,” and any such Class or Classes of Senior ~~Mezzanine Certificates~~ Certificates, the “Undercollateralized Senior Certificates”) and any Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to the ~~Group I Senior Certificates, Group II~~ Undercollateralized Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the ~~Current Principal Amounts~~ Class Certificate Balances thereof, until the aggregate ~~Current Principal Amounts~~ Class Certificate Balance of such Class or Classes of Undercollateralized Senior ~~Certificates, as applicable,~~ Certificates is ~~an amount~~ equal to the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Undercollateralized Senior Certificates pursuant to clause first of clauses (A), (B), (C) or (D) above, as applicable, in an amount equal to the Accrued Certificate Interest at the Pass-Through Rate for such Class or Classes of Undercollateralized Senior Certificates for such Distribution Date on ~~the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in~~ a balance equal to the related ~~Loan Group~~Undercollateralized Amount. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates ~~will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then~~ will be allocated to the Class M B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates~~. (b) If~~, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in ~~proportion to the then Current Principal Amount of such Classes~~that order. ~~"Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d)~~ On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates; provided that if on any Distribution Date on and after the Credit Support Depletion Date there are any Group I ~~Available Funds,~~ or Group II ~~Available Funds or Group III~~ Available Funds remaining after payment of interest and principal to a Class or Classes of Senior Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their ~~Current Principal Amounts~~Class Certificate Balances, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class R-~~III~~ II Certificates~~. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund~~ . It is not anticipated that there will be ~~distributed~~any significant amounts remaining for such distribution. In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Protected Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, including any class of certificates to which a realized loss was previously allocated and whose Class Certificate Balance has been reduced to zero, but not by more than the amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a), and so on. Holders of such Certificates will not be entitled to any payment in respect of Current Interest on the ~~following order, first~~ amount of such increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Class ~~A-1A,~~ Certificate Balance of each Certificate of such Class ~~A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif~~in accordance with its respective Percentage Interest.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Mortgage Investors Trust, Series 2005-A4)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~February 2002, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. . (i) On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date prior to the Cross-Over Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III 1 Available Funds will be distributed in the following order of priority among the Group 1 Senior Certificates: FIRST, to the ~~Class A-3 Certificates~~ Guarantor for payment of (i) the Guaranty Fee and ~~the Class X Certificates as follows: first, pro rata~~(ii) any Guarantor Reimbursement Amount then due; SECOND, to the Group ~~III~~ 1 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date; THIRD, ~~and~~ to ~~Component 3X of~~ the ~~Class X~~ Group 1 Senior Certificates, ~~the Group III Allocation Fraction of~~ any Accrued Certificate Interest ~~on such Component for such~~ thereon remaining undistributed from previous Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); secondDates, to the extent of remaining Group ~~III~~ 1 Available Funds; FOURTH, to the Group 1 Senior Certificates, the Group 1 Optimal Principal Amount for such Distribution Date to the extent of remaining Group 1 Available Funds, until the Current Principal Amount of the Group 1 Senior Certificates has been reduced to zero. (B) On each Distribution Date prior to the Cross-Over Date, the Group 2 Available Funds will be distributed to the Group 2 Senior Certificates as follows: FIRST, to the Guarantor for payment of (i) the Guaranty Fee and (ii) any Guarantor Reimbursement Amount then due; SECOND, to the Group 2 Senior Certificates, the Accrued Certificate Interest on such Class ~~A-3 Certificates and Component 3X of~~ for such Distribution Date; THIRD, to the ~~Class X~~ Group 2 Senior Certificates, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third~~Dates, to the extent of remaining Group ~~III~~ 2 Available Funds; FOURTH, sequentially, in the following order, to the Class ~~A-3~~ R and Class II-A Certificates, in reduction of the Current Principal Amounts thereof, the Group 2 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 2 Available Funds, until the Current Principal Amounts thereof have been reduced to zero; (C) On each Distribution Date prior to the Cross-Over Date, the Group 3 Available Funds will be distributed to the Group 3 Senior Certificates as follows: FIRST, to the Group 3 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date; SECOND, to the Group 3 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group 3 Available Funds; THIRD, to the Group 3 Senior Certificates, in reduction of the Current Principal Amount thereof, the Group ~~III Senior~~ 3 Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group 3 Available Funds, until the Current Principal Amount of ~~such Class~~ the Group 3 Senior Certificates has been reduced to zero. (D) ~~Except as provided in paragraphs (F) and (G) below, on~~ On each Distribution ~~Date on or prior to the Cross-Over~~ Date, an amount equal to the sum of the remaining Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2 and Group ~~III~~ 3 Available Funds after the distributions in paragraphs (A), (B) and (C) above will be distributed to the ~~Class M~~ Group 1, Group 2 and Group 3 Senior Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent the related Available Funds were insufficient to pay the amounts due to the Group 1 Senior Certificates pursuant to clauses SECOND, THIRD and FOURTH of paragraph (A), to the Group 2 Senior Certificates pursuant to clauses SECOND, THIRD and FOURTH of paragraph (B), and to the Group 3 Senior Certificates pursuant to clauses FIRST, SECOND and THIRD of paragraph (C), with any such amounts allocated on a pro rata basis, based on the amount of the ~~sum~~ insufficiency, and will be distributed to such Senior Certificates in accordance with the order and priority of ~~the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~those clauses of those paragraphs. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date ~~on or~~ prior to the Cross-Over Date, an amount equal to ~~the sum of the~~ any remaining Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2 and Group ~~III~~ 3 Available Funds after the distributions in paragraphs (A), (B~~), (C~~) and (DC) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of ~~the~~ remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (F) On each Distribution Date prior to the Cross-Over ~~Date~~ Date, but after the reduction of the Current Principal Amount of ~~any of~~ the Group ~~I Senior Certificates~~1, Group ~~II Senior Certificates~~ 2 or Group ~~III~~ 3 Senior Certificates to zero, the remaining Class or Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their Current Principal Amounts, pro rata based upon their Current Principal Amounts immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Group of Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class ~~or Classes~~ of Senior Certificates, first to the Group 1 and Group 2 Senior Certificates ~~(other than~~ pro rata based upon their Current Principal Amounts immediately prior to such Distribution Date, and then to the ~~Interest Only~~ Group 3 Senior Certificates); provided, however, that if (Ai) the weighted average ~~of the Senior Mezzanine and~~ Subordinate ~~Percentages~~ Percentage equals or exceeds 7.00% on such Distribution Date ~~equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages~~ and (Bii) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the ~~Senior Mezzanine~~ Subordinate Certificates ~~and Subordinate Certificates,~~ does not exceed 100%, then the additional allocation of Principal Prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this ~~clause~~ paragraph (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificatesmade. (G) If on any Distribution Date on which the aggregate Current Principal Amount of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group and any ~~Senior Mezzanine Certificates and~~ Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to ~~the Group I Senior Certificates, Group II~~ such Class or Classes of Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal ~~Amounts~~ Amount of such Class or Classes of Senior ~~Certificates, as applicable,~~ Certificates is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal ~~Amounts~~ Balance of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates will be allocated ~~on a pro rata basis~~ in reverse order of the Subordinate Certificates numerical ~~designations of the Subordinate Certificates~~designations, commencing with the Class B-6 Certificates. (H) If, on any Distribution Date, (i) the Guarantor exercises its option to purchase the Group 1 and Group 2 Mortgage Loans pursuant to Section 10.01, and (ii) distributing the proceeds from such purchase to the remaining Certificates as set forth above in paragraph (E) would result in the aggregate Current Principal Amount of the outstanding Subordinate Certificates being less than 7.00% of their initial Current Principal Amount, then such amount otherwise payable to the Subordinate Certificates will be distributed, first to the Class III-A Certificates, and then ~~will be allocated~~ to the remaining Subordinate Certificates, on a pro rata basis, in each case in reduction of the Current Principal Amount, until the Current Principal Amount of such Class ~~M Certificates~~or Classes of Certificates have been reduced to zero. (b) If, after distributions have been made pursuant to priorities ~~first~~FIRST, ~~second~~ SECOND and ~~third~~ THIRD of clauses (a)(i)(A) and (B) and priorities FIRST and SECOND of clause (~~A) above or priorities first and second of clause (B) or clause (C~~a)(i)(C) above on any Distribution Date, the remaining Group ~~I Available Funds~~1, Group II 2 or Group 3 Available Funds ~~or Group III Available Funds, respectively,~~ are less than the sum of the Group I 1, Group 2 or Group 3 Senior Optimal Principal ~~Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then~~ Amounts such ~~respective amounts~~ amount shall be reduced, and such remaining funds will be distributed to on the related Senior Certificates ~~(other than the Interest Only Certificates)~~ on the basis of such reduced ~~amounts~~amount. (c) Pro rata" ~~principal~~ distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes~~. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date~~. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class ~~R-III~~ R Certificates; provided that if on any Distribution Date there are any Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2 or Group ~~III~~ 3 Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be ~~distributed~~ distributed, first to the ~~other Classes of~~ Group 1 and Group 2 Senior Certificates ~~(other than the Interest Only Certificates),~~ pro ~~rata,~~ rata based upon their Current Principal ~~Amounts~~Amounts immediately prior to such Distribution Date, and then to the Group 3 Senior Certificates, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class ~~R-III~~ R Certificates. (e) No Accrued Certificate Interest will be payable with respect to any Class of Certificates after the Distribution Date on which the Current Principal Amount of such Certificate has been reduced to zero. (f) If on any Distribution Date the Available Funds for the Senior Certificates in any Certificate Group is less than the Accrued Certificate Interest on the related Senior Certificates for such Distribution Date prior to reduction for Net Interest Shortfall and the interest portion of Realized Losses, the shortfall will be allocated among the holders of each Class of Senior Certificates in such Certificate Group in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfall and/or Realized Losses for such Distribution Date. In addition, the amount of any interest shortfalls will constitute unpaid Accrued Certificate Interest and will be distributable to holders of the Certificates of the related Classes entitled to such amounts on subsequent Distribution Dates, to the extent of the applicable Available Funds after current interest distributions as required herein. Any such amounts so carried forward will not bear interest. Shortfalls in interest payments will not be offset by a reduction in the servicing compensation of the Master Servicer or otherwise, except to the extent of applicable Compensating Interest Payments. (g) On each Distribution Date, ~~any amounts~~ the aggregate amount of Deferred Interest, if any, that is added to the principal balance of the Mortgage Loans on the Due Date occurring in the ~~Carryover Shortfall Reserve Fund~~ month in which such Distribution Date occurs will be ~~distributed~~allocated to each class of Certificates as an Interest Shortfall as described in clause (g) above, on a pro rata basis based on a fraction, the numerator of which is the Current Principal Amount of each such class and the denominator of which is the aggregate Current Principal Amount of such Classes of Certificates, in ~~the following order, first~~ each case immediately prior to such Distribution Date. Deferred Interest allocated to any Certificate on any Distribution Date will be added to the ~~Class A-1A~~Current Principal Amount thereof on such Distribution Date and will thereafter bear interest at the then applicable adjustable Pass-Through Rate. (h) The expenses and fees of the Trust shall be paid by each of the REMICs, ~~Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on~~ to the extent that such expenses relate to the assets of each of such ~~Class~~respective REMICs, and ~~then sequentially to~~ all other expenses and fees of the ~~Class M, Class B-1, Class B-2 and Class B-3 Certif~~Trust shall be paid pro rata by each of the REMICs.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mortgage Investments Inc)

Distributions on the Certificates. (a) Interest and principal on the Certificates (other than the Interest Only Certificates) will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~May 2003, in an ~~aggregate~~ amount equal to the Available Funds on deposit in the Distribution Account for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute~~ on deposit in the ~~First~~ Distribution ~~Date Distribution Amount to the Class X Certificates,~~ Account shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On on each Distribution Date, the Group I 1 Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the Group I 1 Senior ~~Certificates and the Class X~~ Certificates as follows: ~~first~~FIRST, to the Group I 1 Senior ~~Certificates and Component 1X of the Class X~~ Certificates, on a pro rata basis, the Accrued Certificate Interest on ~~each~~ such ~~Class or Component~~ Classes for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the ~~Class X~~ Group 1 Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net~~ ; SECOND, to the Group 1 Senior Certificates, on a pro rata basis, any Accrued Certificate Interest ~~Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I 1 Available Funds; and THIRD, to sequentially, in the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Fundsfollowing order, to the Class R R-I, Class R-II and Class R-III Certificates and then pro rata to the Class I-A-1 Certificates and Class I-A-2 Certificates~~, pro rata~~, in reduction of the ~~respective~~ Current Principal Amounts thereof, the Group I 1 Senior Optimal Principal Amount for such Distribution ~~Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth,~~ Date to the extent of remaining Group I 1 Available Funds, ~~to the Class A-1A and Class A-1B Certificates,~~ in ~~reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date~~each case, until the ~~respective~~ Current Principal ~~Amounts~~ Amount of each such Class has been reduced to zero.; (B) On on each Distribution Date, the Group II 2 Available Funds ~~(or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the ~~Class A-2 Certificates and the Class X~~ Group 2 Senior Certificates as follows: ~~first~~FIRST, to the ~~Class A-2 Certificates and to Component 2X of the Class X~~ Group 2 Senior Certificates, on a pro rata basis, the Accrued Certificate Interest on ~~each~~ such ~~Class or Component~~ Classes for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Group 2 Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net~~ ; SECOND, to the Group 2 Senior Certificates, on a pro rata basis, any Accrued Certificate Interest ~~Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II 2 Available Funds; and THIRD, to the Class ~~A-2 Certificates~~ II-A-1, Class II-A-2, Class II-A-3 and ~~Component 2X and Component 3X of the~~ Class X II-A-4 Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), on a pro ~~rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates~~rata basis, in reduction of the Current Principal ~~Amount~~ Amounts thereof, the Group II 2 Senior Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group 2 Available Funds, until the Current Principal Amount of each such Class has been reduced to zero.; (C) On on each Distribution Date, the Group ~~III~~ 3 Available Funds will be distributed to the ~~Class A-3 Certificates and the Class X~~ Group 3 Senior Certificates as follows: ~~first, pro rata~~FIRST, to the Group ~~III~~ 3 Senior Certificates, on a pro rata basis, the Accrued Certificate Interest on each such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-3 Certificates and each such Component of the Class X~~ Group 3 Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net~~ ; SECOND, to the Group 3 Senior Certificates, on a pro rata basis, any Accrued Certificate Interest ~~Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group ~~III~~ 3 Available Funds; and THIRD, to the Class III-A-1, Class III-A-2 and Class III-A-3 ~~Certificates and Component 3X~~ Certificates, on a pro rata basis, in reduction of the Current Principal Amounts thereof, the Group 3 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 3 Available Funds, until the Current Principal Amount of each such Class X has been reduced to zero; (D) on each Distribution Date, the Group 4 Available Funds will be distributed to the Group 4 Senior Certificates as follows: FIRST, to the Group 4 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date. As described below, Accrued Certificate Interest on the Group 4 Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto; SECOND, to the Group 4 Senior Certificates, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third~~Dates, to the extent of remaining Group ~~III~~ 4 Available Funds; and THIRD, to the Class ~~A-3~~ IV-A-1 Certificates, in reduction of the Current Principal Amount thereof, the Group ~~III~~ 4 Senior Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group 4 Available Funds, until the Current Principal Amount of such Class has been reduced to zero.; (DE) Except as provided in ~~paragraphs~~ (F) and (G) below, on each Distribution Date ~~on or~~ prior to the Cross-Over Date, an amount equal to ~~the sum of the~~ any remaining Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2, Group 3 and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III 4 Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2, Group 3 and Group ~~III~~ 4 Available Funds. (F) On each Distribution Date prior to the Cross-Over ~~Date~~ Date, but after the reduction of the Current Principal Amount of any of the Group ~~I Senior Certificates~~1, Group ~~II Senior Certificates~~ 2, Group 3, or Group ~~III~~ 4 Senior Certificates to zero, the remaining Class or Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their Current Principal Amounts, pro rata based upon their Current Principal Amounts immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Group of Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if (A) the weighted average of the ~~Senior Mezzanine and~~ Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the ~~Senior Mezzanine and~~ Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the ~~Senior Mezzanine~~ Subordinate Certificates ~~and Subordinate Certificates,~~ does not exceed 100%, then the additional allocation of Principal Prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully ~~prepaid~~ repaid Class or Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be allocated ~~on a pro rata basis~~ to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates. (G) If on any Distribution Date on which the aggregate Current Principal Amount of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group and any ~~Senior Mezzanine Certificates and~~ Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to ~~the Group I Senior Certificates, Group II~~ such Class or Classes of Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal ~~Amounts~~ Amount of such Class or Classes of Senior ~~Certificates, as applicable,~~ Certificates is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal ~~Amounts~~ Balance of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates will be allocated ~~on a pro rata basis~~ in reverse order of the Subordinate Certificates numerical ~~designations of the Subordinate Certificates~~designations, commencing with the Class B-6 ~~Certificates, and then will be allocated to the Class M~~ Certificates. (b) If, after distributions have been made pursuant to priorities ~~first~~FIRST and SECOND of clauses (a)(A), ~~second and third of clause (A) above or priorities first and second of clause~~ (B~~) or clause~~ ), (C) and (D) above on any Distribution Date, the remaining Group ~~I Available Funds~~1, Group II 2, Group 3 or Group 4 Available Funds ~~or Group III Available Funds, respectively,~~ are less than the Group I 1, Group 2, Group 3 or Group 4 Senior Optimal Principal ~~Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount~~Amounts, respectively, ~~then~~ such ~~respective amounts~~ amount shall be reduced, and such remaining funds will be distributed to on the related Senior Certificates ~~(other than the Interest Only Certificates)~~ on the basis of such reduced ~~amounts~~amount. (c) Pro rata" ~~principal~~ distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes~~. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date~~. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2, Group 3 or Group ~~III~~ 4 Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) ~~On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund~~ No Accrued Certificate Interest will be ~~distributed,~~ payable with respect to any Class of Certificates after the Distribution Date on which the Current Principal Amount of such Certificate has been reduced to zero. (f) If on any Distribution Date the Available Funds for the Senior Certificates in any Certificate Group is less than the ~~following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on~~ Accrued Certificate Interest on the related Senior Certificates for such Distribution Date prior to reduction for Net Interest Shortfall and the interest portion of Realized Losses, the shortfall will be allocated among the holders of each Class of Senior Certificates in such ~~Class~~Certificate Group in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfall and/or Realized Losses for such Distribution Date. In addition, the amount of any interest shortfalls will constitute unpaid Accrued Certificate Interest and will be distributable to holders of the Certificates of the related Classes entitled to such amounts on subsequent Distribution Dates, to the extent of the applicable Available Funds after current interest distributions as required herein. Any such amounts so carried forward will not bear interest. Shortfalls in interest payments will not be offset by a reduction in the servicing compensation of the Master Servicer or otherwise, except to the extent of applicable Compensating Interest Payments. (g) The expenses and fees of the Trust shall be paid by each of the REMICs, to the extent that such expenses relate to the assets of each of such respective REMICs, and ~~then sequentially to~~ all other expenses and fees of the ~~Class M, Class B-1, Class B-2 and Class B-3 Certif~~Trust shall be paid pro rata by each of the REMICs.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mort Inv Inc Bear Stearns Arm Trust 2003 3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Securities Administrator monthly on each Distribution Date, commencing in ~~October 2004~~November 2007, as instructed by the Master Servicer, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the ~~Group I~~ Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the ~~Group I Senior~~ following order of priority among the Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior Certificates~~ Class P Certificates, any Prepayment Charges collected on the Mortgage Loans and ~~Component 1X~~ (A) any amounts paid by the Seller or the related Servicer in respect of Prepayment Charges pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charges being unenforceable in breach of the ~~Class X~~ representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; second, to the Senior Certificates, pro rata, the Accrued Certificate Interest ~~on each such Class or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest ~~on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates~~ is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among ~~such Class A-1A~~ the Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Componentas described below; third, to the ~~extent of remaining Group I Available Funds, to the Class R~~ Senior Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates ~~and~~ (~~c) such Class's Allocable Share for such~~ reduced by any Deferred Interest previously allocated on each prior Distribution Date~~, in each case~~), to the extent of ~~the sum of the~~ remaining ~~Group I~~ Available Funds, ~~Group II Available Funds~~ any shortfall in available amounts being allocated to the Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for each class of Certificates for such Distribution Date; fourth, concurrently (i) sequentially to the Class A-R Certificate until the Certificate Principal Balance of such class has been reduced to zero and ~~Group III Available Funds. (E) Except as provided~~ then to the Class A-1 and Class A-2 Certificates, pro rata, in ~~paragraphs (F) and (G) below~~reduction of their respective Certificate Principal Balances, ~~on each~~ the Senior Principal Distribution Amount for such Distribution Date ~~on or prior~~ to the ~~Cross-Over Date, an amount equal to the sum~~ extent of ~~the~~ remaining ~~Group I~~ Available Funds, ~~Group II Available Funds and Group III Available Funds after~~ until the ~~distributions in (A), (B), (C)~~ Certificate Principal Balances of such classes have been reduced to zero and (Dii) ~~above will be distributed~~ to the Class X Certificates, until the Certificate Principal Balance of such Class has been reduced to zero; fifth, sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution ~~Date~~Date (reduced by any Deferred Interest allocable thereto), (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates (reduced by any Deferred Interest previously allocated on each prior Distribution Date) and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I~~ Available Funds~~, Group II Available Funds~~ ; and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Datesixth, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class RA-~~III~~ R Certificates~~; provided that if~~ . Any interest shortfall resulting from Deferred Interest on the Mortgage Loans will be allocated first to the Class X Certificates (by increasing the Class X-PO Component Principal Balance) to the extent of interest otherwise accrued on such class for such Interest Accrual Period. Thereafter, Deferred Interest for any Distribution Date ~~there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment~~ will be allocated pro rata based upon the Accrued Certificate Interest for each class other than the Class X Certificates for such Distribution Date. The amount of ~~interest and principal~~ the shortfall in Accrued Certificate Interest distributable to ~~a Class or Classes~~ each class of Certificates ~~entitled thereto~~attributable to Net Negative Amortization will be added to the Certificate Principal Balance of that class. As a result of Net Negative Amortization, ~~such amounts~~ a portion of the interest accrued on the Certificates will be distributed to such Certificates later than otherwise anticipated. In addition to the ~~other Classes~~ foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Master Servicer Collection Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of ~~Senior~~ a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Subordinate Certificates ~~(other~~ with the highest payment priority to which Realized Losses have been allocated, including any Class of Subordinate Certificates to which a Realized Loss was previously allocated and whose Certificate Principal Balance has been reduced to zero, but not by more than the ~~Interest Only Certificates)~~amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02. The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed up to the amount of such Realized Losses previously allocated to that Class ~~R-III Certificates. (e) On each Distribution Date~~of Certificates pursuant to Section 6.02, and so on. Holders of such Certificates will not be entitled to any ~~amounts~~ payment in ~~the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on~~ respect of Accrued Certificate Interest on ~~each~~ the amount of such ~~Class, and then sequentially~~ increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class ~~M, Class B-1, Class B-2 and Class B-3 Certif~~in accordance with its respective Percentage Interest.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar5)

Distributions on the Certificates. ~~(a)~~ Interest and principal on the Certificates will be distributed by the Trustee monthly on each Distribution Date, commencing in ~~October~~ September 2004, as instructed by the Master Servicer or the Securities Administrator, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the following order of priority among the Group I Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the ~~Group I Senior Certificates and Component 1X of the~~ Class X I-A Certificates, the Accrued Certificate Interest on ~~each such~~ the Class ~~or Component~~ I-A Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the Class X I-A Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among such Class A-1A Certificates and Class A-1B Certificates and Components of~~ to the Class X I-A Certificates ~~in accordance with the provisions of Section 6.02(g)~~as described below; second, to the Class I-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I Available Funds, any shortfall in available amounts being allocated to the Class I-A Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for the Class I-A Certificates for such Distribution Date; and third, to the Class I-A Certificates, in reduction of the Class Certificate Balance thereof, the Group I Senior ~~Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous~~ Principal Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each Amount for such ~~Class or Component; third,~~ Distribution Date to the extent of remaining Group I Available Funds, to until the Class ~~R Certificates, pro rata, in reduction~~ Certificate Balance of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group II ~~Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2~~ Senior Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class II-A-1, Class II-A-2 ~~Certificates~~ and ~~to Component 2X of the~~ Class X II-A-3 Certificates, pro rata, the Accrued Certificate Interest on each ~~such~~ Class ~~or Component~~ of Group II Senior Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Group II Senior Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated ~~among~~ to the Group II Senior Certificates as described below; second, to the Class II-A-1, Class II-A-2 ~~Certificates~~ and ~~such Components of the~~ Class ~~X Certificates in accordance with the provisions of Section 6.02(g); second~~II-A-3 Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II Available Funds, any shortfall in available amounts being allocated to the Class ~~A-2~~ II Senior Certificates ~~and Component 2X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, any~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for the Group II Senior Certificates for such Distribution ~~Dates (other than~~Date; and third, ~~with respect~~ to ~~Component 2X and Component 3X of~~ the Class X II-A-1, Class II-A-2 and Class II-A-3 Certificates~~, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund)~~, pro rata, ~~based on~~ in reduction of the ~~undistributed Accrued~~ Class Certificate ~~Interest owed to each~~ Balance thereof, the Group II Senior Principal Distribution Amount for such ~~Class or Component; and third,~~ Distribution Date to the extent of remaining Group II Available Funds, to until the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balance of such Class has been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the ~~Cross-Over~~ Distribution Date on which the Class Certificate Balances of the Subordinate Certificates are reduced to zero (the "Credit Support Depletion Date"), an amount equal to the sum of the remaining Group I ~~Available Funds,~~ and Group II ~~Available Funds and Group III~~ Available Funds after the distributions in clauses (A), ) and (B) above and after any distributions required to be made pursuant to clauses (CD) ~~above will be distributed to the Class M Certificates, up to an amount equal to~~ and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) ~~Except as provided in paragraphs (F) and (G)~~ below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (FD) On each Distribution Date prior to the ~~Cross-Over~~ Credit Support Depletion Date but after the reduction of the ~~Current Principal Amount of any~~ aggregate Class Certificate Balance of the ~~Group I Senior Certificates, Group II~~ related Senior Certificates or of a related Loan Group ~~III Senior Certificates~~ to zero, the remaining Class or Classes of related Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their ~~Current Principal Amounts~~Class Certificate Balances, pro rata based upon their Class Certificate Balances immediately prior to such Distribution Date, in addition to any ~~Principal Prepayments~~ principal prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if both (Aa) the weighted average ~~of the Senior Mezzanine and~~ Subordinate ~~Percentages on such Distribution Date~~ Percentage equals or exceeds ~~two times~~ approximately 6.90% on or after the ~~initial weighted average of the Senior Mezzanine and Subordinate Percentages~~ Distribution Date in September 2007 and (Bb) the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans delinquent 60 days or ~~more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust)~~more, averaged over the last six months, as a percentage of the ~~sum~~ aggregate Class Certificate Balance of the ~~aggregate Current Principal Amount of the Senior Mezzanine~~ Class M Certificates and ~~Subordinate~~ Class B Certificates, does not exceed ~~100~~50%, then the additional allocation of ~~Principal Prepayments~~ principal prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (FD) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificatesmade. (GE) If on any Distribution Date on which the aggregate ~~Current Principal Amount~~ Class Certificate Balance of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group (the amount of such excess, the "Undercollateralized Amount," and any such Class or Classes of Senior ~~Mezzanine Certificates~~ Certificates, the "Undercollateralized Senior Certificates") and any Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to the ~~Group I Senior Certificates, Group II~~ Undercollateralized Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the ~~Current Principal Amounts~~ Class Certificate Balances thereof, until the aggregate ~~Current Principal Amounts~~ Class Certificate Balance of such Class or Classes of Undercollateralized Senior ~~Certificates, as applicable,~~ Certificates is ~~an amount~~ equal to the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Undercollateralized Senior Certificates pursuant to clause first of clauses (A) or (B) above, as applicable, in an amount equal to the Accrued Certificate Interest at the Pass-Through Rate for such Class or Classes of Undercollateralized Senior Certificates for such Distribution Date on ~~the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in~~ a balance equal to the related ~~Loan Group~~Undercollateralized Amount. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates ~~will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then~~ will be allocated to the Class M B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates~~. (b) If~~, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in ~~proportion to the then Current Principal Amount of such Classes~~that order. ~~"Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d)~~ On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates; provided that if on any Distribution Date on and after the Credit Support Depletion Date there are any Group I ~~Available Funds,~~ or Group II ~~Available Funds or Group III~~ Available Funds remaining after payment of interest and principal to a Class or Classes of Senior Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their ~~Current Principal Amounts~~Class Certificate Balances, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class R-~~III~~ II Certificates~~. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund~~ . It is not anticipated that there will be ~~distributed, in the following order, first~~ any significant amounts remaining for such distribution. In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts into the Protected Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class ~~A-1A~~of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, but not by more than the amount of Realized Losses previously allocated to that Class ~~A-1B~~ of Certificates pursuant to Section 6.02(a). The amount of any remaining Subsequent Recoveries will be applied to increase the Certificate Principal Balance of the Class of Certificates with the next highest payment priority, up to the amount of such Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02(a), and ~~Class A-2 Certificates, pro rata, based on Accrued Certificate~~ so on. Holders of such Certificates will not be entitled to any payment in respect of Current Interest on ~~each~~ the amount of such ~~Class, and then sequentially~~ increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Certificate Principal Balance of each Certificate of such Class ~~M, Class B-1, Class B-2 and Class B-3 Certif~~in accordance with its respective Percentage Interest.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (MERRILL LYNCH MORT INV INC MLMI Series 2004-A2)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~March 2006, in an aggregate amount equal to the Available Funds for such Distribution Date. . (I) On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Class A-1B Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) ~~from Group I Available Funds~~FIRST, ~~an amount equal~~ to the ~~product of~~ Swap Counterparty, the related Swap Counterparty Payment (xif any) and certain termination payments (as set forth in the ~~First Distribution Date Distribution Amount and~~ related Swap Agreement), if applicable, for such distribution date (y) other than where the ~~Component 1X Distribution Percentage~~Swap Counterparty is the defaulting or affected party; (ii) ~~from Group II~~ SECOND, to the extent of remaining Class A-1B Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds (or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class ~~X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows: first, to the Group I Senior Certificates and Component 1X of the Class X~~ A-1B Certificates, the Accrued Certificate Interest on ~~each such~~ the Class ~~or Component~~ A-1B Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second; (iii) THIRD, to the extent of remaining ~~Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the~~ Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I A-1B Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates~~ Dates; (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and thirdiv) FOURTH, to the extent of remaining ~~Group II~~ Class A-1B Available Funds, to the Class ~~A-2~~ A-1B Certificates, any principal distributions received from the related Underlying Certificates, in reduction of the Current Principal Amount thereof, ~~the Group II Senior Optimal Principal Amount for such Distribution Date,~~ until the Current Principal Amount ~~of such Class~~ thereof has been reduced to zero; and (v) FIFTH, to the extent of remaining Grantor Trust Available Funds to the Swap Counterparty, any termination payments (as set forth in the related Swap Agreement) where the Swap Counterparty is the defaulting or affected party. (CII) On each Distribution Date, the ~~Group III~~ Class A-2B Available Funds ~~will~~ shall be distributed as follows: (i) FIRST, to the Swap Counterparty, the related Swap Counterparty Payment (if any) and certain termination payments (as set forth in the related Swap Agreement), if applicable, for such distribution date (other than where the Swap Counterparty is the defaulting or affected party; (ii) SECOND, to the extent of remaining Class A-2B Available Funds, to the Class ~~A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior~~ A-2B Certificates, the Accrued Certificate Interest on ~~such~~ the Class A-2B Certificates for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second; (iii) THIRD, to the extent of remaining ~~Group III~~ Class A-2B Available Funds, to the Class ~~A-3 Certificates and Component 3X of the Class X~~ A-2B Certificates, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates~~ Dates; (~~other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third~~iv) FOURTH, to the extent of remaining ~~Group III~~ Class A-2B Available Funds, to the Class ~~A-3~~ A-2B Certificates, any principal distributions received from the related Underlying Certificates, in reduction of the Current Principal Amount thereof, ~~the Group III Senior Optimal Principal Amount for such Distribution Date,~~ until the Current Principal Amount thereof has been reduced to zero; and (v) FIFTH, to the extent of ~~such Class~~ remaining Grantor Trust Available Funds to the Swap Counterparty, any termination payments (as set forth in the related Swap Agreement) where the Swap Counterparty is the defaulting or affected party. (b) No Accrued Certificate Interest will be payable with respect to the Certificates after the Distribution Date on which the Current Principal Amount of the Certificates has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif

Appears in 1 contract

Sources: Grantor Trust Agreement (GreenPoint Mortgage Funding Trust 2005-Ar1)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~June 2002, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I 1 Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to in the following order of priority among the Group I 1 Senior ~~Certificates and the Class X Certificates as follows~~Certificates: ~~first~~FIRST, to the Group I 1 Senior ~~Certificates and Component 1X of the Class X~~ Certificates, the Accrued Certificate Interest on ~~each~~ such Class ~~or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In additionAs described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the ~~Class A-2~~ Senior Certificates ~~and such Components of~~ as described below; SECOND, to the ~~Class X Certificates in accordance with the provisions of Section 6.02(g); second~~Group 1 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II 1 Available Funds; THIRD, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group ~~II Available Funds, to the Class A-2~~ 1 Senior Certificates, in reduction of the Current Principal ~~Amount~~ Amounts thereof, the Group II 1 Senior Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group 1 Available Funds, until the Current Principal Amount ~~of such Class~~ thereof has been reduced to zero.; (CB) On each Distribution Date, the Group ~~III~~ 2 Available Funds will be distributed to the ~~Class A-3 Certificates and the Class X~~ Group 2 Senior Certificates as follows: ~~first, pro rata~~FIRST, to the Group ~~III~~ 2 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-3 Certificates and each such Component of the Class X~~ Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the ~~Class A-3~~ Senior Certificates ~~and Components of~~ as described below; SECOND, to the ~~Class X Certificates in accordance with the provisions of Section 6.02(g); second~~Group 2 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group ~~III~~ 2 Available Funds; THIRD, sequentially, in the following order, to the Class ~~A-3 Certificates~~ R-I, Class R-II, Class R-III, Class R-IV and ~~Component 3X~~ Class II-A Certificates, the Group 2 Optimal Principal Amount for such Distribution Date to the extent of remaining Group 2 Available Funds, until the aggregate Current Principal Amount of the Group 2 Senior Certificates has been reduced to zero. (C) On each Distribution Date, the Group 3 Available Funds will be distributed to the Group 3 Senior Certificates as follows: FIRST, to the Group 3 Senior Certificates, the Accrued Certificate Interest on such Class X for such Distribution Date. As described below, Accrued Certificate Interest on the Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Senior Certificates as described below; SECOND, to the Group 3 Senior Certificates, any Accrued Certificate Interest thereon ~~pursuant to clause first~~ remaining undistributed from previous Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third~~Dates, to the extent of remaining Group ~~III~~ 3 Available Funds; THIRD, to the ~~Class A-3~~ Group 3 Senior Certificates, in reduction of the Current Principal ~~Amount~~ Amounts thereof, the Group ~~III~~ 3 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 3 Available Funds, until the Current Principal Amount thereof has been reduced to zero; (D) On each Distribution Date, the Group 4 Available Funds will be distributed to the Group 4 Senior Certificates as follows: FIRST, to the Group 4 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date. As described below, Accrued Certificate Interest on the Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Senior Certificates as described below; SECOND, to the Group 4 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group 4 Available Funds; THIRD, to the Group 4 Senior Certificates (other than the Class IV-X Certificates) on a pro rata basis based upon their Current Principal Amounts immediately prior to such Distribution Date, in reduction of the Current Principal Amounts thereof, the Group 4 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 4 Available Funds, until the Current Principal Amount of such Classes have been reduced to zero; PROVIDED, HOWEVER, after the Cross-Over Date but prior to the reduction of the Current Principal Amounts of the Class IV-A5 Certificates to zero, the aggregate amount distributable to the Group 4 Senior Certificates will be distributed among those certificates in the priority set forth in clause (K) below. (E) On each Distribution Date, the Group 5 Available Funds will be distributed to the Group 5 Senior Certificates as follows: FIRST, to the Group 5 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date. As described below, Accrued Certificate Interest on the Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Senior Certificates as described below; SECOND, to the Group 5 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group 5 Available Funds; THIRD, to the Group 5 Senior Certificates, in reduction of the Current Principal Amounts thereof, the Group 5 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 5 Available Funds, until the Current Principal Amount thereof has been reduced to zero; (F) On each Distribution Date, the Group 6 Available Funds will be distributed to the Group 6 Senior Certificates as follows: FIRST, to the Group 6 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date. As described below, Accrued Certificate Interest on the Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Senior Certificates as described below; SECOND, to the Group 6 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group 6 Available Funds; THIRD, to the Group 6 Senior Certificates, in reduction of the Current Principal Amounts thereof, the Group 6 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 6 Available Funds, until the Current Principal Amount thereof has been reduced to zero; (G) On each Distribution Date, the Group 7 Available Funds will be distributed to the Group 7 Senior Certificates as follows: FIRST, to the Group 7 Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date. As described below, Accrued Certificate Interest on the Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Senior Certificates as described below; SECOND, to the Group 7 Senior Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group 7 Available Funds; THIRD, to the Group 7 Senior Certificates, in reduction of the Current Principal Amounts thereof, the Group 7 Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group 7 Available Funds, until the Current Principal Amount thereof has been reduced to zero. (DH) Except as provided in ~~paragraphs~~ (FI) and (GJ) below, on each Distribution Date ~~on or~~ prior to the Cross-Over Date, an amount equal to ~~the sum of the~~ any remaining Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2, Group 3, Group 4, Group 5, Group 6 and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III 7 Available Funds after the distributions in (A), (B), (C), (D), (E), (F) and (DG) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of ~~the~~ remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (FI) On each Distribution Date prior to the Cross-Over ~~Date~~ Date, but after the reduction of the Current Principal Amount of ~~any of~~ the Group ~~I Senior Certificates~~1, Group ~~II Senior Certificates~~ 2, Group 3, Group 4, Group 5, Group 6 or Group ~~III~~ 7 Senior Certificates to zero, the remaining Class or Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their Current Principal Amounts, pro rata based upon their Current Principal Amounts immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Group of Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class ~~or Classes~~ of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if (A) the weighted average ~~of the Senior Mezzanine and~~ Subordinate ~~Percentages~~ Percentage equals or exceeds 7.50% on such Distribution Date ~~equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages~~ and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the ~~Senior Mezzanine~~ Subordinate Certificates ~~and Subordinate Certificates,~~ does not exceed 100%, then the additional allocation of Principal Prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (FI) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificatesmade. (GJ) If on any Distribution Date on which the aggregate Current Principal Amount of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group and any ~~Senior Mezzanine Certificates and~~ Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to ~~the Group I Senior Certificates, Group II~~ such Class or Classes of Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal ~~Amounts~~ Amount of such Class or Classes of Senior ~~Certificates, as applicable,~~ Certificates is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal ~~Amounts~~ Balance of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates will be allocated ~~on a pro rata basis~~ in reverse order of the Subordinate Certificates numerical ~~designations of the Subordinate Certificates~~designations, commencing with the Class B-6 Certificates. (K) On or after the occurrence of the Cross-Over Date but prior to the reduction of the Current Principal Amounts of the Class IV-A5 Certificates to zero, ~~and then~~ all priorities relating to distributions as described in clause (D) above relating to principal among the Group 4 Senior Certificates will be ~~allocated~~ disregarded. Instead, Accrued Certificate Interest on the Group 4 Senior Certificates will be distributed as provided in clauses FIRST and SECOND of clause (D) above and the Group 4 Senior Optimal Principal Amount will be distributed to the Group 4 Senior Certificates pro rata in accordance with their respective outstanding Current Principal Amounts; provided that the aggregate amount distributable to the Class M IV-A4 Certificates and the Class IV-A5 Certificates in respect of the aggregate Accrued Certificate Interest thereon and in respect of their aggregate pro rata portion of the Group 4 Senior Optimal Principal Amount will be distributed among the Group 4 Senior Certificates in the following priority: FIRST, to the Class IV-A4 Certificates, up to an amount equal to the Accrued Certificate Interest and any unpaid Accrued Certificate Interest thereon; SECOND, to the Class IV-A4 Certificates, up to an amount equal to the Class IV-A4 Optimal Principal Distribution Amount, in reduction of the Current Principal Amount thereof, until the Current Principal Amount thereof has been reduced to zero; THIRD, to the Class IV-A5 Certificates, up to an amount equal to the Accrued Certificate Interest and any unpaid Accrued Certificate Interest thereon; and FOURTH, to the Class IV-A5 Certificates, the remainder, in each case until the Current Principal Amount thereof has been reduced to zero. (b) If, after distributions have been made pursuant to priorities ~~first, second and third of clause (A) above or priorities~~ first and second of ~~clause~~ clauses (a)(i)(A), (B), (C), (D), (E), (F) or ~~clause~~ (CG) above on any Distribution Date, the remaining Group ~~I Available Funds~~1, Group II 2, Group 3, Group 4, Group 5, Group 6 or Group 7 Available Funds ~~or Group III Available Funds, respectively,~~ are less than the sum of the Group I 1, Group 2, Group 3, Group 4, Group 5, Group 6 or Group 7 Senior Optimal Principal ~~Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then~~ Amounts such ~~respective amounts~~ amount shall be reduced, and such remaining funds will be distributed to on the related Senior Certificates ~~(other than the Interest Only Certificates)~~ on the basis of such reduced ~~amounts~~amount. (c) Pro rata" ~~principal~~ distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes~~. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date~~. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-~~III~~ II Certificates; provided that if on any Distribution Date there are any Group ~~I Available Funds~~1, Group ~~II Available Funds~~ 2, Group 3, Group 4, Group 5, Group 6 or Group ~~III~~ 7 Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class R-~~III~~ II Certificates. (e) ~~On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund~~ No Accrued Certificate Interest will be ~~distributed,~~ payable with respect to any Class of Certificates after the Distribution Date on which the Current Principal Amount of such Certificate has been reduced to zero. (f) If on any Distribution Date the Available Funds for the Senior Certificates in any Certificate Group is less than the ~~following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on~~ Accrued Certificate Interest on the related Senior Certificates for such Distribution Date prior to reduction for Net Interest Shortfall and the interest portion of Realized Losses, the shortfall will be allocated among the holders of each Class of Senior Certificates in such ~~Class~~Certificate Group in proportion to the respective amounts of Accrued Certificate Interest that would have been allocated thereto in the absence of such Net Interest Shortfall and/or Realized Losses for such Distribution Date; provided, however, any such shortfall otherwise allocable to the holders Class IV-A4 Certificates will be allocated first among the holders of the Class IV-A5 Certificates, until the respective amounts of Accrued Certificate Interest that would have been allocated to the Class IV-A5 Certificates in the absence of such Net Interest Shortfall and/or Realized Losses for such Distribution Date (reduced first by the shortfall allocable to the holders of the Class IV-A5 Certificates pursuant to this clause (f) on such Distribution Date prior to the application of this proviso) have been reduced to zero, and then ~~sequentially~~ to the holders of the Class MIV-A4 Certificates. In addition, ~~Class B-1~~the amount of any interest shortfalls with respect to the Mortgage Loans in the related Loan Group that are covered by subordination, ~~Class B-2~~ and ~~Class B-3 Certif~~the amount of any interest shortfalls otherwise allocable to th

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mortgage Investments Inc)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in ~~October 2004~~May 2002, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On on each Distribution Date, the ~~Group I~~ Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the ~~Group I~~ Senior ~~Certificates and the Class X~~ Certificates as follows: ~~first~~FIRST, to the ~~Group I~~ Senior ~~Certificates and Component 1X of the Class X~~ Certificates, on a pro rata basis, the Accrued Certificate Interest on each such Class ~~or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In additionAs described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Senior Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the ~~Class A-2~~ Senior Certificates ~~and such Components of~~ as described below; SECOND, to the ~~Class X Certificates in accordance with the provisions of Section 6.02(g); second~~Senior Certificates, on a pro rata basis, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining ~~Group II~~ Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and ~~third~~THIRD, the Senior Optimal Principal Amount for such Distribution Date to the extent of remaining ~~Group II~~ Available ~~Funds~~Funds shall be distributed as follows: (a) sequentially, in the following order, to the Class ~~A-2~~ R-I Certificates and Class R-II Certificates, in reduction of the Current Principal ~~Amount~~ Amounts thereof~~, the Group II Senior Optimal Principal Amount for such Distribution Date~~, until the Current Principal ~~Amount~~ Amounts of such ~~Class has~~ Classes have been reduced to zero.; and (Cb) ~~On each Distribution Date, the Group III Available Funds will be distributed~~ to the Class ~~A-3~~ A-1 Certificates and ~~the~~ Class ~~X Certificates as follows: first, pro rata, to the Group III Senior~~ A-2 Certificates, ~~the Accrued Certificate Interest~~ on ~~such Class for such Distribution Date~~a pro rata basis, ~~and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest~~ based on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal ~~Amount~~ Amounts thereof~~, the Group III Senior Optimal Principal Amount for such Distribution Date~~, until the Current Principal ~~Amount~~ Amounts of such ~~Class has~~ Classes have been reduced to zero.; (DB) ~~Except as provided in paragraphs (F) and (G) below, on~~ On each Distribution Date on or prior to the Cross-Over Date, an amount equal to the ~~sum of the~~ remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds after the distributions in (A~~), (B) and (C~~) above will be distributed to the Class M A-3 Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the ~~sum of the~~ remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (EC) ~~Except as provided in paragraphs (F) and (G) below, on~~ On each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds after the distributions in (A~~), (B), (C~~) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certifand

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mortgage Investments Inc)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to each class of Certificates is the interest which has accrued thereon at the then applicable related Pass-Through Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls and Deferred Interest, if any, allocated to that class. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first~~ related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Interest Funds for such Distribution Date are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) any amounts paid by the Sponsor or the applicable Servicer in respect of Prepayment Charges pursuant to this Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) to the Final Maturity Reserve Account, any amounts payable and required to be deposited therein; (v) concurrently, to each class of the Senior Certificates, the Current Interest and any Interest Carry Forward Amount with respect to each such class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of Current Interest and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (vi) to the Class M-1 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vii) to the Class M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class M-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xii) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiv) to the Class B-3 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; and (xv) any remainder pursuant to Section 6.01(g) hereof. With respect to any Distribution Date, to the ~~Group I Available Funds remaining following~~ extent that the ~~distribution~~ Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Any interest shortfall resulting from Deferred Interest on the Mortgage Loans will be allocated to the Offered Certificates pro rata based upon the current Certificate Principal Balance of each such class, up to the Current Interest accrued on such class of Certificates, in reduction of the ~~First~~ amount of interest otherwise distributable to such class of Certificates; provided, however, that to the extent the amount of Net Negative Amortization otherwise allocable to a class of Offered Certificates exceeds the amount of Current Interest accrued on the Corresponding REMIC Regular Interest of such class of Certificates (as reduced by such class's share of any Prepayment Interest Shortfalls for such Distribution ~~Date Distribution Amount~~ Date), then such excess Net Negative Amortization shall be allocated, first, to the Class X C Certificates) , to the extent payments would otherwise be made to the Class C Certificates in respect of the Uncertificated Class C Interest on such Distribution Date, and, second, to the Offered Certificates pro rata based upon and up to the amount of any remaining Current Interest otherwise accrued on the Corresponding REMIC Regular Interest of each class of Offered Certificates. The amount of the reduction of Current Interest distributable to each class of Certificates attributable to Net Negative Amortization will be ~~distributed~~ added to the ~~Group I~~ Certificate Principal Balance of that class. (d) [RESERVED] (e) On each Distribution Date (or on the related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Final Maturity Reserve Account, any amounts payable and required to be deposited therein to the extent not paid pursuant to Section 6.01(c)(iv); (iv) to the Senior ~~Certificates and~~ Certificates, the ~~Class X Certificates~~ Senior Principal Distribution Amount as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R ~~Certificates, pro rata, in reduction of the respective Current~~ Certificate until its Certificate Principal ~~Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have~~ Balance has been reduced to zero; , and ~~fourth~~second, ~~to the extent of remaining Group I Available Funds,~~ pro rata to the Class ~~A-1A~~ A-1 Certificates, Class A-2 Certificates and Class ~~A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date,~~ A-3 Certificates until the ~~respective Current~~ Certificate Principal ~~Amounts~~ Balance of each such Class has been reduced to zero; (v) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (vi) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vii) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (viii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (ix) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (x) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (xi) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xii) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xiii) to the Class B-3 Certificates, the Class B-3 Principal Distribution Amount; and (xiv) any remainder pursuant to Section 6.01(g) hereof. (Bf) [RESERVED] (g) On each Distribution Date (or on the related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xv) and (e)(xiv) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(vi) through (xiv) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class A-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class A-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class A-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xiv) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xv) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xvi) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xvii) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xviii) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xviii) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Certificate Principal Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the ~~Group II Available Funds~~ Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on ~~the first~~ such Distribution Date, the ~~Group II Available Funds following~~ Securities Administrator shall allocate the ~~distribution~~ Realized Loss Amount for the Certificates to reduce the Certificate Principal Balances of the ~~First Distribution Date Distribution Amount~~ Class C Certificates and the Certificates in the following order of priority: (i) to the Class X C Certificates, until the Class C Certificate Principal Balance is reduced to zero; (ii) ~~will be distributed~~ to the Class B-3 Certificates until the Class B-3 Certificate Principal Balance is reduced to zero; (iii) to the Class B-2 Certificates until the Class B-2 Certificate Principal Balance is reduced to zero; (iv) to the Class B-1 Certificates until the Class B-1 Certificate Principal Balance is reduced to zero; (v) to the Class M-6 Certificates until the Class M-6 Certificate Principal Balance is reduced to zero; (vi) to the Class M-5 Certificates until the Class M-5 Certificate Principal Balance is reduced to zero; (vii) to the Class M-4 Certificates until the Class M-4 Certificate Principal Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Certificate Principal Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Certificate Principal Balance is reduced to zero; (x) to the Class M-1 Certificates until the Class M-1 Certificate Principal Balance is reduced to zero; (xi) to the Class A-3 Certificates until the Class A-3 Certificate Principal Balance is reduced to zero; (xii) to the Class A-2 Certificates ~~and~~ until the Class ~~X Certificates as follows: first,~~ A-2 Certificate Principal Balance is reduced to zero; and (xiii) to the Class ~~A-2~~ A-1 Certificates ~~and to Component 2X of~~ until the Class ~~X Certificates, the Accrued~~ A-1 Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates Principal Balance is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (Ck) ~~On each Distribution Date,~~ Subject to Section 10.02 hereof respecting the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) belowfinal distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the ~~Cross-Over Date~~related Record Date or, ~~an amount equal~~ if not, by check mailed by first class mail to such Certificateholder at the ~~sum~~ address of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and such holder appearing in the ~~following order: (a)~~ Certificate Register. Notwithstanding the ~~Accrued Certificate Interest thereon for such Distribution Date~~foregoing, ~~(b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date~~but subject to Section 10.02 hereof respecting the final distribution, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to ~~which~~ Certificates registered in the ~~related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as~~ name of a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments Depository shall be made to ~~the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates~~ such Depository in immediately available funds. In accordance with this ~~clause~~ Agreement, the Master Servicer shall prepare and deliver an electronic report (Fthe "Remittance Report") ~~will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating~~ to the ~~fully prepaid Class~~ Securities Administrator (or ~~Classes of Senior Certificates (~~by such other ~~than~~ means as the ~~Interest Only Certificates~~Master Servicer and the Securities Administrator may agree from time to time) ~~will be allocated on a pro rata basis~~ containing such data and information as to permit the ~~Senior Mezzanine Certificates~~ Securities Administrator to prepare the Monthly Statement to Certificateholders and ~~Subordinate Certificates. (G) If on any Distribution Date~~ make the ~~aggregate Current Principal Amount of~~ required distributions for the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certifrelated

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the Swap REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to the Certificates is the interest which has accrued thereon at the then applicable related Certificate Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls, if any. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first Distribution~~ related Swap Payment Date, with respect to payments to the ~~Group I Available~~ Supplemental Interest Trust), the Interest Funds ~~remaining following the distribution of the First~~ for such Distribution Date ~~Distribution Amount~~ are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class X P Certificates, any Prepayment Penalties collected on the Prepayment Penalty Mortgage Loans and (A) ~~will be distributed~~ any amounts paid by the Sponsor or the related Servicer in respect of Prepayment Penalties pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Penalty being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the ~~Group I Senior Certificates and~~ Supplemental Interest Trust, any Net Swap Payments owed to the ~~Class X Certificates as follows: first~~Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to ~~the Group I Senior Certificates and Component 1X~~ each class of the ~~Class X~~ Senior Certificates, the ~~Accrued Certificate~~ Current Interest ~~on each such Class or Component for such Distribution Date,~~ and ~~to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate~~ any Interest ~~on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed~~ Carry Forward Amount with respect to each such ~~Class or Component~~class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of ~~Accrued Certificate~~ Current Interest ~~paid~~ and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class ~~X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B~~ M-1 Certificates, the Current Interest for such class and ~~that the amount of Accrued Certificate~~ any Interest ~~paid~~ Carry Forward Amount with respect to such class; (vi) to the Class ~~X Certificates pursuant~~ M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to ~~this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on~~ such class; (vii) to the Class MM-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class ~~B-1~~M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, ~~in each case~~ the Current Interest for ~~that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and~~ each such ~~Component of the Class X Certificates is subject to reduction in the event of certain Net~~ class and any Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, Carry Forward Amount with respect to ~~Component 1X and Component 3X of the Class X Certificates,~~ each such class; and (xiv) any ~~amounts~~ remainder pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (BSection 6.01(g) hereof. On each Distribution Date, subject to the proviso in (iv) above, the Interest Funds received on the Group ~~II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount~~ 1 Mortgage Loans will be deemed to ~~the Class X Certificates) will~~ be distributed to the Class ~~A-2~~ R and Class A-1 Certificates and ~~the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate~~ Interest Funds received on ~~each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates,~~ the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X 2 Mortgage Loans will be ~~reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid~~ deemed to ~~the Class X Certificates pursuant to this clause in respect of Component 3X will~~ be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, distributed to the Class A-2 Certificates, in ~~reduction~~ each case, until the related Current Interest and Interest Carry Forward Amount of ~~the Current Principal Amount thereof, the Group II~~ each such class or classes of Senior ~~Optimal Principal Amount~~ Certificates for such Distribution ~~Date, until the Current Principal Amount of such Class~~ Date has been ~~reduced~~ paid in full. Thereafter, Interest Funds not required for such distributions are available to ~~zero. (C) On each~~ be applied to if necessary, to the class or classes of Senior Certificates that are not related to such group of Mortgage Loans. With respect to any Distribution Date, ~~the Group III Available Funds will be distributed~~ to the extent that the Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class ~~A-3 Certificates and the Class X Certificates as follows: first~~of Certificates, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that based upon the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and interest each such ~~Component of the~~ Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will would otherwise be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates.[RESERVED] (e) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any ~~amounts in~~ Net Swap Payments owed to the ~~Carryover Shortfall Reserve Fund~~ Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior Certificates, the Senior Principal Distribution Amount shall be distributed as follows: (1) the Group 1 Principal Distribution Amount shall be distributed as follows: (I) first, to the Class R Certificate until its Class Certificate Balance has been reduced to zero, and second, to the Class A-1 Certificates, until the Class Certificate Balance of such Class has been reduced to zero; and (2) the Group 2 Principal Distribution Amount will be distributed~~, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates~~, pro rata, based on ~~Accrued~~ the Class Certificate ~~Interest on~~ Balance for each ~~such Class~~Class of the Class A-2 Certificates, (A) sequentially, to the Class A-2A Certificates until the Class Certificate Balance thereof has been reduced to zero, then to the Class A-2B Certificates until the Class Certificate Balance thereof has been reduced to zero, and then ~~sequentially~~ to the Class A-2C Certificates until the Class Certificate Balance thereof has been reduced to zero, (B) to the Class A-3 Certificates until the Class Certificate Balance thereof has been reduced to zero and (C) to the Class A-2D Certificates, until the Class Certificate Balance thereof has been reduced to zero; provided, however, that on and after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class ~~B-1~~B and Class C Certificates has been reduced to zero and the Stated Principal Balance of the Mortgage Loans is equal to or less than the aggregate Class Certificate Balance of the Senior Certificates, any principal distributions allocated sequentially (i) first, to the Class A-2A, Class ~~B-2~~ A-2B, Class A-2C and Class A-3 Certificates pro rata, among such classes, based on their respective Class Certificate Balances, until their Class Certificate Balances have been reduced to zero, and then (ii) to the Class A-2D Certificates, until its Class Certificate Balance is reduced to zero; (iv) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 ~~Certif~~Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. If on any Distribution Date any Mortgage Group would be an Undercollateralized Group after distributions on such date, then payments that would otherwise be made pursuant to clauses (iv) through (xiii) above (such reallocations to be made first from the most subordinated Class of Certificates) shall be made to the Senior Certificates of the Undercollateralized Group until such Loan Group is no longer an Undercollateralized Group. (f) [RESERVED] (g) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xiv) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xv) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xv) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Class Certificate Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on such Distribution Date, the Securities Administrator shall allocate the Realized Loss Amount for the Certificates to reduce the Class Certificate Balances of the Class C Certificates and the Subordinate Certificates in the following order of priority: (i) to the Class C Certificates, until the Class C Class Certificate Balance is reduced to zero; (ii) to the Class B-3 Certificates until the Class B-3 Class Certificate Balance is reduced to zero; (iii) to the Class B-2 Certificates until the Class B-2 Class Certificate Balance is reduced to zero; (iv) to the Class B-1 Certificates until the Class B-1 Class Certificate Balance is reduced to zero; (v) to the Class M-6 Certificates until the Class M-6 Class Certificate Balance is reduced to zero; (vi) to the Class M-5 Certificates until the Class M-5 Class Certificate Balance is reduced to zero; (vii) to the Class M-4 Certificates until the Class M-4 Class Certificate Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Class Certificate Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Class Certificate Balance is reduced to zero; and (x) to the Class M-1 Certificates until the Class M-1 Class Certificate Balance is reduced to zero. (k) Subject to Section 10.02 hereof respecting the final distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the Master Servicer shall prepare and deliver an electronic report (the "Remittance Report") to the Securities Administrator (or by such other means as the Master Servicer and the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions for the related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, which in turn shall be based on information from the Servicers and the Cap Contract Counterparty. (l) The Supplemental Interest Trust Trustee is hereby directed by the Depositor to execute the Corridor Contracts on behalf of the Supplemental Interest Trust in the form presented to it by the Depositor and shall have no responsibility for the contents of such Corridor Contracts, including, without limitation, the representations and warranties contained therein. Any funds payable by the Supplemental Interest Trust under the Corridor Contracts at closing shall be paid by the Depositor. Notwithstanding anything to the contrary contained herein or in any Corridor Contract, except as set forth in Section 2 of each Corridor Contract, the Supplemental Interest Trust shall not be required to make any payments to the counterparty under any Corridor Contract. Any payments received under the terms of the related Corridor Contract will be available to pay the holders of the related Class A-1 and Class R Certificates, Class A-2 Certificates and Subordinate Certificates up to the amount of any Floating Rate Certificate Carryover

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-A1)

Distributions on the Certificates. (a) Interest and principal (as applicable) on the Certificates will be distributed monthly on each Distribution Date, commencing in October ~~2004~~2003, in an ~~aggregate~~ amount equal to the Available Funds on deposit in the Distribution Account for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute~~ on deposit in the ~~First~~ Distribution ~~Date Distribution Amount to the Class X Certificates,~~ Account shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On on each Distribution Date, the Group I Available Funds ~~(or on the first Distribution Date, the Group I Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the Group I Senior Certificates ~~and the Class X Certificates~~ as follows: ~~first~~FIRST, to the ~~Group I Senior~~ Class I-A Certificates and ~~Component 1X of the~~ Class I-X Certificates, on a pro rata basis, the Accrued Certificate Interest on ~~each~~ such ~~Class or Component~~ Classes for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such~~ the Class ~~A-1A~~ I-A Certificates and Class ~~A-1B Certificates and each such Component of the Class~~ I-X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net Interest Shortfalls shall be allocated among such~~ ; SECOND, to the Class ~~A-1A~~ I-A Certificates and Class ~~A-1B Certificates and Components of the Class~~ I-X ~~Certificates in accordance with the provisions of Section 6.02(g); second~~Certificates, on a pro rata basis, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I Available Funds~~, to the Group I Senior Certificates~~ ; and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available FundsTHIRD, to the Class R I-A Certificates~~, pro rata~~, in reduction of the ~~respective~~ Current Principal ~~Amounts~~ Amount thereof, the Group I Senior Optimal Principal Amount for such Distribution ~~Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth,~~ Date to the extent of remaining Group I Available Funds, to until the ~~Class A-1A and Class A-1B Certificates, in reduction of the respective~~ Current Principal ~~Amounts thereof, the remaining Group I Senior Optimal Principal~~ Amount ~~for such Distribution Date, until the respective Current Principal Amounts~~ of ~~each~~ such Class has been reduced to zero. (Bii) On on each Distribution Date, the Group II Available Funds ~~(or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates)~~ will be distributed to the ~~Class A-2 Certificates and the Class X~~ Group II Senior Certificates as follows: ~~first~~FIRST, to the Class ~~A-2 Certificates and to Component 2X of the Class X~~ II-A Certificates, the Accrued Certificate Interest on ~~each~~ such Class ~~or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the Class ~~A-2 Certificates and each such Component of the Class X~~ II-A Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net Interest Shortfalls shall be allocated among~~ ; SECOND, to the Class ~~A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~II-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II Available Funds; and THIRD, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, to the Class A-2 II-A Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group II Available Funds, until the Current Principal Amount of such Class has been reduced to zero. (Ciii) On on each Distribution Date, the Group III Available Funds will be distributed to the ~~Class A-3 Certificates and the Class X~~ Group III Senior Certificates as follows: ~~first, pro rata~~FIRST, to the ~~Group III Senior~~ Class III-A Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the Class ~~A-3 Certificates and each such Component of the Class X~~ III-A Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto~~. Any Net Interest Shortfalls shall be allocated among~~ ; SECOND, to the Class ~~A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~III-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group III Available Funds; and THIRD, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 III-A Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution ~~Date~~Date to the extent of remaining Group III Available Funds, until the Current Principal Amount of such Class has been reduced to zero. (Div) ~~Except as provided in paragraphs (F) and (G) below,~~ on each Distribution ~~Date on or prior to the Cross-Over~~ Date, ~~an amount equal to~~ the ~~sum of the remaining~~ Group ~~I Available Funds, Group II~~ IV Available Funds ~~and Group III Available Funds after the distributions in (A), (B) and (C) above~~ will be distributed to the Group IV Senior Certificates as follows: FIRST, to the Class M IV-A Certificates and Class IV-AM Certificates, ~~up to an amount equal to and in the following order: (a)~~ on a pro rata basis, the Accrued Certificate Interest ~~thereon~~ on such Classes for such Distribution Date. As described below, ~~(b)~~ Accrued Certificate Interest on the Class IV-A Certificates and Class IV-AM Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto; SECOND, to the Class IV-A Certificates and Class IV-AM Certificates, on a pro rata basis, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution ~~Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~Dates, to the extent of remaining Group IV Available Funds; THIRD, to the ~~sum~~ Class IV-AM Certificates, in reduction of the Current Principal Amount thereof, the Group IV Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group ~~I Available Funds, Group II~~ IV Available Funds ~~and Group III Available Funds. (E) Except as provided~~ in ~~paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date,~~ an amount equal to the ~~sum~~ Class IV-AM Optimal Principal Amount, until the Current Principal Amount of such Class has been reduced to zero; FOURTH, to the Class IV-A Certificates, in reduction of the Current Principal Amount thereof, the remaining Group IV Senior Optimal Principal Amount for such Distribution Date to the extent of the remaining Group ~~I Available Funds, Group II~~ IV Available Funds until the Current Principal Amount of such Class has been reduced to zero; and ~~Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order~~FIFTH, to the Class ~~B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6~~ IV-AM Certificates, in reduction of the Current Principal Amount thereof, the remaining Group IV Senior Optimal Principal Amount for such Distribution Date to the extent of the remaining Group IV Available Funds until the Current Principal Amount of such Class has been reduced to zero. (v) on each ~~case up~~ Distribution Date, the Group V Available Funds will be distributed to ~~an amount equal~~ the Group V Senior Certificates as follows: FIRST, to the Class R-I, Class R-II, Class R-III, Class V-A and ~~in the following order: (a)~~ Class V-X Certificates, on a pro rata basis, the Accrued Certificate Interest ~~thereon~~ on such Classes for such Distribution Date. As described below, ~~(b)~~ Accrued Certificate Interest on the Class R-I, Class R-II, Class R-III, Class V-A and Class V-X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto; SECOND, to the Class R-I, Class R-II, Class R-III, Class V-A and Class V-X Certificates, on a pro rata basis, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution ~~Dates and (c) such Class's Allocable Share for such Distribution Date, in each case~~Dates, to the extent of ~~the~~ remaining Group I V Available Funds; THIRD, ~~Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior~~ to the ~~Cross~~Class R-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, ~~Group~~ Class R-II ~~Senior Certificates or Group~~ and Class R-III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates~~, Group II Senior Certificates or Group III Senior Certificates, as applicable~~, on a pro rata ~~basis~~ basis, in reduction of the Current Principal Amounts thereof, ~~until~~ the ~~aggregate Current~~ Group V Senior Optimal Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest Amount for such Distribution Date on to the ~~excess~~ extent of ~~(x)~~ remaining Group V Available Funds, until the ~~aggregate~~ Current Principal ~~Amounts~~ Amount of each such Class has been reduced to zero; and FOURTH, to the Class V-A Certificates, in reduction of the Current Principal Amount thereof, the Group V Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group V Available Funds, until the Current Principal Amount of such Class ~~or Classes of~~ has been reduced to zero. (vi) on each Distribution Date, the Group VI Available Funds will be distributed to the Group VI Senior Certificates ~~over (y)~~ as follows: FIRST, to the ~~aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in~~ Class VI-A Certificates, the Accrued Certificate Interest on ~~the Senior Mezzanine Certificates and Subordinate Certificates will be allocated~~ such Class for such Distribution Date. As described below, Accrued Certificate Interest on ~~a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with~~ the Class ~~B-6 Certificates~~VI-A Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto; SECOND, ~~and then will be allocated~~ to the Class M VI-A Certificates, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group VI Available Funds; and THIRD, to the Class VI-A Certificates, in reduction of the Current Principal Amount thereof, the Group VI Senior Optimal Principal Amount for such Distribution Date to the extent of remaining Group VI Available Funds, until the Current Principal Amount of such Class has been reduced to zero. (bvii) ~~If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above~~ on ~~any~~ each Distribution Date, the ~~remaining~~ Group ~~I Available Funds, Group II~~ VII Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the ~~related~~ Group VII Senior Certificates ~~(other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion~~ as follows: FIRST, to the ~~then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to~~ Class VII-A Certificates, the Accrued Certificate Interest ~~payable~~ on such Class for such Distribution Date~~. (d) On each Distribution Date~~. As described below, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on ~~each such Class, and then sequentially to the Class M, Class B-1, Class B-2 and Class B-3 Certif~~the

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Structured Asset Mort Inv Ii Inc Bear Stearns Arm Trust 03-7)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed by the Securities Administrator monthly on each Distribution Date, commencing in ~~October 2004~~August 2007, as instructed by the Master Servicer, in an aggregate amount equal to the sum of the Available Funds for such Distribution Date. On ~~the first~~ each Distribution Date, the ~~Paying Agent will, prior to the distribution of~~ Available Funds ~~to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates,~~ shall be distributed as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, the Group I Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group I ~~Available Funds remaining following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior~~ Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class P Certificates, any prepayment charges collected on the Mortgage Loans in Loan Group I ~~Senior Certificates~~ and ~~Component 1X~~ (A) any amounts paid by the Seller or the related Servicer in respect of prepayment charges pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a prepayment charges being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; second, to the Class X I-A1, Class I-A2, Class I-A3 and Class A-R Certificates, pro rata, the Accrued Certificate Interest ~~on each such Class or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on ~~such Class A-1A Certificates and Class A-1B Certificates and each such Component of~~ the ~~Class X~~ Group I Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among ~~such~~ the Group I Certificates as described below; third, to the Class ~~A-1A Certificates~~ I-A1, Class I-A2, Class I-A3 and Class ~~A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second~~A-R Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group I Available Funds, any shortfall in available amounts being allocated to the Group I ~~Senior~~ Certificates ~~and Component 1X and Component 3X~~ in proportion to the amount of ~~the Class X Certificates, the~~ such Accrued Certificate Interest ~~thereon pursuant to clause first~~ remaining undistributed ~~from previous~~ for each class of Group I Certificates for such Distribution ~~Dates (other than~~Date; and fourth, ~~with respect~~ sequentially to ~~Component 1X and Component 3X of~~ the Class X A-R Certificate until the Class Certificate Balance of such class has been reduced to zero and then to the Class I-A1, Class I-A2 and Class I-A3 Certificates~~, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund)~~, pro rata, ~~based on~~ in reduction of their respective Class Certificate Balances, the ~~undistributed Accrued Certificate Interest owed to each~~ Group I Senior Principal Distribution Amount for such ~~Class or Component; third,~~ Distribution Date to the extent of remaining Group I Available Funds, to until the Class ~~R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts~~ Certificate Balances of such ~~Classes~~ classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds ~~(or on~~ will be distributed in the ~~first Distribution Date,~~ following order of priority among the Group II ~~Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2~~ Certificates ~~and the Class X Certificates~~ except as ~~follows~~otherwise noted: first, to the Class ~~A-2 Certificates~~ P Certificates, any prepayment charges collected on the Mortgage Loans in Loan Group II and (A) any amounts paid by the Seller or the related Servicer in respect of prepayment charges pursuant to ~~Component 2X~~ this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a prepayment charges being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; second, to the Class X II-A1 and Class II-A2 Certificates, pro rata, the Accrued Certificate Interest ~~on each such Class or Component~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-2 Certificates and each such Component of the Class X~~ Group II Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among the ~~Class A-2~~ Group II Certificates ~~and such Components of~~ as described below; third, to the Class ~~X Certificates in accordance with the provisions of Section 6.02(g); second~~II-A1 and Class II-A2 Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group II Available Funds, any shortfall in available amounts being allocated to the Group II Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for each class of Group II Certificates for such Distribution Date; and fourth, to the Class ~~A-2 Certificates~~ II-A1 and ~~Component 2X and Component 3X of the~~ Class X II-A2 Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, ~~based on~~ in reduction of their respective Class Certificate Balances, the ~~undistributed Accrued Certificate Interest owed to each~~ Group II Senior Principal Distribution Amount for such ~~Class or Component; and third,~~ Distribution Date to the extent of remaining Group II Available Funds, to until the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balances of such ~~Class has~~ classes have been reduced to zero. (C) On each Distribution Date, the Group III Available Funds will be distributed in the following order of priority among the Group III Certificates except as otherwise noted: first, to the Class ~~A-3 Certificates~~ P Certificates, any prepayment charges collected on the Mortgage Loans in Loan Group III and (A) any amounts paid by the Seller or the related Servicer in respect of prepayment charges pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a prepayment charges being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; second, to the Class ~~X Certificates as follows: first~~III-A1 and Class III-A2 Certificates, pro rata~~, to the Group III Senior Certificates~~, the Accrued Certificate Interest ~~on such Class~~ for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. ~~In addition~~As described below, Accrued Certificate Interest on the ~~Class A-3 Certificates and each such Component of the Class X~~ Group III Certificates is subject to reduction in the event of certain ~~Net Interest Shortfalls~~ interest shortfalls allocable thereto. Any ~~Net Interest Shortfalls~~ interest shortfalls shall be allocated among the ~~Class A-3~~ Group III Certificates ~~and Components of~~ as described below; third, to the Class ~~X Certificates in accordance with the provisions of Section 6.02(g); second~~III-A1 and Class III-A2 Certificates, pro rata, any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates, to the extent of remaining Group III Available Funds, any shortfall in available amounts being allocated to the Group III Certificates in proportion to the amount of such Accrued Certificate Interest remaining undistributed for each class of Group III Certificates for such Distribution Date; and fourth, to the Class ~~A-3 Certificates~~ III-A1 and ~~Component 3X of the~~ Class X III-A2 Certificates, ~~any Accrued~~ pro rata, in reduction of their respective Class Certificate ~~Interest thereon pursuant to clause first remaining undistributed from previous~~ Balances, the Group III Senior Principal Distribution ~~Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third,~~ Amount for such Distribution Date to the extent of remaining Group III Available Funds, to until the Class ~~A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount~~ Certificate Balances of such ~~Class has~~ classes have been reduced to zero. (D) ~~Except as provided in paragraphs (F) and (G) below, on~~ On each Distribution Date on or prior to the ~~Cross-Over~~ Credit Support Depletion Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and the Group III Available Funds after the distributions in clauses (A), (B) and (C) above ~~will~~ and after any distributions required to be ~~distributed~~ made pursuant to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. clauses (E) ~~Except as provided in paragraphs~~ and (F) ~~and (G)~~ below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class M-1, Class M-2, Class M-3, Class B-1, Class ~~B-2, Class B-3, Class B-4, Class B-5~~ B-2 and Class ~~B-6~~ B-3 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's ~~Allocable Share~~ Subordinate Principal Distribution Amount for such Distribution Date, in each ~~case,~~ case to the extent of the remaining ~~Group I Available Funds, Group II Available Funds and Group III~~ Available Funds. (FE) On each Distribution Date prior to the ~~Cross-Over~~ Credit Support Depletion Date but after the reduction of the ~~Current Principal Amount of any~~ aggregate Class Certificate Balance of the ~~Group I Senior Certificates, Group II~~ related Senior Certificates of a related Loan Group or ~~Group III Senior Certificates~~ Loan Groups, as applicable, to zero, the remaining Class or Classes of related Senior Certificates ~~(other than the Interest Only Certificates)~~ will be entitled to receive ~~on a pro rata basis~~ in reduction of their ~~Current Principal Amounts~~Class Certificate Balances, pro rata, based upon their respective Class Certificate Balances immediately prior to such Distribution Date, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group or Loan Groups, as applicable, allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group or Loan Groups, as applicable, relating to the fully repaid Class or Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates); provided, however, that if both (Aa) the weighted average of the ~~Senior Mezzanine and~~ Subordinate ~~Percentages on such Distribution Date~~ Percentage equals or exceeds ~~two times~~ 200% of the ~~initial~~ original weighted average of the ~~Senior Mezzanine and~~ Subordinate ~~Percentages~~ Percentage as of the Closing Date on or after the Distribution Date in August 2010 and (Bb) the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans delinquent 60 days or ~~more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust)~~more, averaged over the last six months, as a percentage of the ~~sum~~ aggregate Class Certificate Balance of the ~~aggregate Current Principal Amount of the Senior Mezzanine~~ Class M Certificates and ~~Subordinate~~ Class B Certificates, does not exceed ~~100~~50%, then the additional allocation of Principal Prepayments to the ~~Group I Senior Certificates, Group II Senior Certificates and Group III~~ Senior Certificates in accordance with this clause (FH) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group or Loan Groups, as applicable, relating to the fully ~~prepaid Class~~ repaid class or ~~Classes~~ classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ will be allocated ~~on a pro rata basis~~ to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates. (GF) If on any Distribution Date on which the aggregate ~~Current Principal Amount~~ Class Certificate Balance of ~~the Group I, Group II Senior Certificates~~ any Class or ~~Group III~~ Classes of Senior Certificates would be greater than the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan Group or Loan Groups, as applicable (the amount of such excess, the "Undercollateralized Amount," and any such Class or Classes of Senior ~~Mezzanine Certificates~~ Certificates, the "Undercollateralized Senior Certificates") and any Subordinate Certificates are still ~~outstanding,~~ outstanding in each case after giving effect to distributions to be made on such Distribution Date, ~~then~~ (i) 100% of amounts otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be distributed to the ~~Group I Senior Certificates, Group II~~ Undercollateralized Senior Certificates ~~or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the ~~Current Principal Amounts~~ Class Certificate Balances thereof, until the aggregate ~~Current Principal Amounts~~ Class Certificate Balance of such Class or Classes of Undercollateralized Senior ~~Certificates, as applicable,~~ Certificates is ~~an amount~~ equal to the aggregate ~~Scheduled~~ Stated Principal Balance of the Mortgage Loans in ~~the~~ its related Loan ~~Group~~Group or Loan Groups, as applicable, and (ii) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on such Distribution Date will be reduced, if necessary, ~~100~~ and distributed ~~on a pro rata basis~~ to such Class or Classes of Undercollateralized Senior Certificates pursuant to clause second of clauses (A), (B) and (C) above, as applicable, in an amount equal to the Accrued Certificate Interest at the Pass-Through Rate for such Class or Classes of Undercollateralized Senior Certificates for such Distribution Date on ~~the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in~~ a balance equal to the related ~~Loan Group~~Undercollateralized Amount. Any such reduction in the Accrued Certificate Interest on the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates ~~will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then~~ will be allocated to the Class M B-3, Class B-2, Class B-1, Class M-3, Class M-2 and Class M-1 Certificates~~. (b) If~~, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in ~~proportion to the then Current Principal Amount of such Classes~~that order. ~~"Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d)~~ On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class RA-~~III~~ R Certificates; provided that if on any Distribution Date on and after the Credit Support Depletion Date there are any Group ~~I Available Funds~~I, Group II ~~Available Funds~~ or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Senior Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior ~~Certificates (other than the Interest Only~~ Certificates), pro rata, based upon their ~~Current Principal Amounts~~Class Certificate Balances, until all amounts due to all ~~such~~ Classes of Senior Certificates ~~(other than the Interest Only Certificates)~~ have been paid in full, before any amounts are distributed to the Class RA-~~III~~ R Certificates~~. (e) On each Distribution Date~~. In addition to the foregoing distributions, with respect to any Subsequent Recoveries, the Master Servicer shall deposit such amounts in into the ~~Carryover Shortfall Reserve Fund~~ Master Servicer Collection Account pursuant to Section 4.01(a). If, after taking into account such Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount of such Subsequent Recoveries will be ~~distributed~~applied to increase the Class Certificate Balance of the Class of Subordinate Certificates with the highest payment priority to which Realized Losses have been allocated, in including any Class of Subordinate Certificates to which a Realized Loss was previously allocated and whose Class Certificate Balance has been reduced to zero, but not by more than the ~~following order~~amount of Realized Losses previously allocated to that Class of Certificates pursuant to Section 6.02. The amount of any remaining Subsequent Recoveries will be applied to increase the Class Certificate Balance of the Class of Certificates with the next highest payment priority, ~~first~~ up to the amount of such Realized Losses previously allocated to that Class ~~A-1A~~of Certificates pursuant to Section 6.02, ~~Class A-1B~~ and ~~Class A-2 Certificates, pro rata, based on~~ so on. Holders of such Certificates will not be entitled to any payment in respect of Accrued Certificate Interest on ~~each~~ the amount of such ~~Class, and then sequentially~~ increases for any Interest Accrual Period preceding the Distribution Date on which such increase occurs. Any such increases shall be applied to the Class M, Certificate Balance of each Certificate of such Class ~~B-1, Class B-2 and Class B-3 Certif~~in accordance with its respective Percentage Interest.

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Mortgage Backed Securities Trust, Series 2007-3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to each class of Certificates is the interest which has accrued thereon at the then applicable related Certificate Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls and Deferred Interest, if any, allocated to that class. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first~~ related Swap Payment Date, with respect to payments to the Supplemental Interest Trust), the Interest Funds for such Distribution Date are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) any amounts paid by the Sponsor or the applicable Servicer in respect of Prepayment Charges pursuant to this Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to each class of the Senior Certificates, the Current Interest and any Interest Carry Forward Amount with respect to each such class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of Current Interest and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class M-1 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vi) to the Class M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (vii) to the Class M-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; and (xiv) any remainder pursuant to Section 6.01(g) hereof. With respect to any Distribution Date, to the ~~Group I Available Funds remaining following~~ extent that the ~~distribution~~ Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class of Certificates, pro rata, based upon the amount of interest each such Class would otherwise be entitled to receive on such Distribution Date. Any interest shortfall resulting from Deferred Interest on the Mortgage Loans will be allocated to the Offered Certificates pro rata based upon the current Class Certificate Balance of each such class, up to the Current Interest accrued on such class of Certificates, in reduction of the ~~First~~ amount of interest otherwise distributable to such class of Certificates; provided, however, that to the extent the amount of Net Negative Amortization otherwise allocable to a class of Offered Certificates exceeds the amount of Current Interest accrued on the Corresponding REMIC Regular Interest of such class of Certificates (as reduced by such class's share of any Prepayment Interest Shortfalls for such Distribution ~~Date Distribution Amount~~ Date), then such excess Net Negative Amortization shall be allocated, first, to the Class X C Certificates) , to the extent payments would otherwise be made to the Class C Certificates in respect of the Uncertificated Class C Interest on such Distribution Date, and, second, to the Offered Certificates pro rata based upon and up to the amount of any remaining Current Interest otherwise accrued on the Corresponding REMIC Regular Interest of each class of Offered Certificates. The amount of the reduction of Current Interest distributable to each class of Certificates attributable to Net Negative Amortization will be ~~distributed~~ added to the ~~Group I~~ Class Certificate Balance of that class. (d) [RESERVED] (e) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any Net Swap Payments owed to the Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior ~~Certificates and~~ Certificates, the ~~Class X Certificates~~ Senior Principal Distribution Amount as follows: first, to the Group I Senior Certificates and Component 1X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R ~~Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date,~~ Certificate until ~~the Current Principal Amounts of such Classes have~~ its Class Certificate Balance has been reduced to zero; , and ~~fourth~~second, ~~to the extent of remaining Group I Available Funds,~~ pro rata to the Class ~~A-1A~~ A-1 Certificates, Class A-2 Certificates and Class ~~A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date,~~ A-3 Certificates until the ~~respective Current Principal Amounts~~ Class Certificate Balance of each such Class has been reduced to zero; provided, however, that on and after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class B and Class C Certificates has been reduced to zero and the Stated Principal Balance of the Mortgage Loans is equal to or less than the aggregate Class Certificate Balance of the Senior Certificates, any principal distributions shall be allocated sequentially to the Class R, Class A-1, Class A-2 and Class A-3 Certificates, in that order, until the Class Certificate Balance of each such Class has been reduced to zero; (iv) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. (Bf) [RESERVED] (g) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xiv) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xv) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xv) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Class Certificate Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the ~~Group II Available Funds~~ Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on ~~the first~~ such Distribution Date, the ~~Group II Available Funds following~~ Securities Administrator shall allocate the ~~distribution~~ Realized Loss Amount for the Certificates to reduce the Class Certificate Balances of the ~~First Distribution Date Distribution Amount~~ Class C Certificates and the Subordinate Certificates in the following order of priority: (i) to the Class X C Certificates, until the Class C Class Certificate Balance is reduced to zero; (ii) ~~will be distributed~~ to the Class ~~A-2~~ B-3 Certificates ~~and~~ until the Class ~~X Certificates as follows: first,~~ B-3 Class Certificate Balance is reduced to zero; (iii) to the Class ~~A-2~~ B-2 Certificates ~~and to Component 2X of~~ until the Class ~~X Certificates, the Accrued~~ B-2 Class Certificate ~~Interest on each such Class or Component for such Distribution Date, and~~ Balance is reduced to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid zero; (iv) to the Class X B-1 Certificates ~~in respect of Component 3X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on~~ until the Class ~~A-2 Certificates and that the amount of Accrued~~ B-1 Class Certificate ~~Interest paid~~ Balance is reduced to zero; (v) to the Class X M-6 Certificates ~~pursuant to this clause in respect of Component 3X will be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on~~ until the Class M, M-6 Class ~~B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued~~ Certificate ~~Interest on the Class A-2 Certificates and each such Component of the Class X Certificates~~ Balance is ~~subject~~ reduced to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, zero; (vi) to the Class ~~A-2~~ M-5 Certificates ~~and Component 2X and Component 3X of~~ until the Class ~~X Certificates, any Accrued~~ M-5 Class Certificate ~~Interest thereon pursuant~~ Balance is reduced to ~~clause first remaining undistributed from previous Distribution Dates~~ zero; (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, vii) to the Class ~~A-2 Certificates, in reduction of the Current Principal Amount thereof, the Group II Senior Optimal Principal Amount for such Distribution Date,~~ M-4 Certificates until the ~~Current Principal Amount of such~~ Class ~~has been~~ M-4 Class Certificate Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Class Certificate Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Class Certificate Balance is reduced to zero; and (x) to the Class M-1 Certificates until the Class M-1 Class Certificate Balance is reduced to zero. (Ck) ~~On each Distribution Date,~~ Subject to Section 10.02 hereof respecting the Group III Available Funds will be distributed to the Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) belowfinal distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the ~~Cross-Over Date~~related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the Master Servicer shall prepare and deliver an ~~amount equal~~ electronic report (the "Remittance Report") to the ~~sum of~~ Securities Administrator (or by such other means as the ~~remaining Group I Available Funds, Group II Available Funds~~ Master Servicer and ~~Group III Available Funds after~~ the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions ~~in (A), (B) and (C) above will be distributed to~~ for the ~~Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such~~ related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, ~~(b) any Accrued Certificate Interest thereon remaining undistributed~~ which in turn shall be based on information from ~~previous Distribution Dates~~ the Servicers and ~~(c) such Class's Allocable Share for such Distribution Date, in each case, to~~ the ~~extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds~~Cap Contract Counterparty. (El) ~~Except as provided~~ The Supplemental Interest Trust Trustee is hereby directed by the Depositor to execute the Corridor Contract on behalf of the Supplemental Interest Trust in ~~paragraphs (F)~~ the form presented to it by the Depositor and ~~(G) below~~shall have no responsibility for the contents of such Corridor Contract, ~~on each Distribution Date on or prior~~ including, without limitation, the representations and warranties contained therein. Any funds payable by the Supplemental Interest Trust under the Corridor Contract at closing shall be paid by the Depositor. Notwithstanding anything to the ~~Cross-Over Date~~contrary contained herein or in the Corridor Contract, ~~an amount equal~~ except as set forth in Section 2 of the Corridor Contract, the Supplemental Interest Trust shall not be required to make any payments to the ~~sum~~ counterparty under the Corridor Contract. Any payments received under the terms of the ~~remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above~~ Corridor Contract will be ~~distributed sequentially, in~~ available to pay the ~~following order,~~ holders of the Certificates up to the ~~Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an~~ amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any ~~of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the~~ Floating Rate Certificate Carryovers remaining ~~Class or Classes of Senior Certificates (~~after all other than the Interest Only Certificates) will be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for distributions required under this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates Section 6.01 are ~~still outstanding, in each case after giving effect to distributions to be~~ made on such Distribution Date, ~~then (i) 100% of amounts otherwise allocable~~ other than Floating Rate Certificate Carryovers attributable to the fact that Realized Loss Amounts are not allocated to the Senior ~~Mezzanine Certificates and Subordinate Certificates in respect~~ Certificates. Any amounts received under the terms of ~~principal collections~~ the Corridor Contract on ~~the Mortgage Loans~~ a Distribution Date that are not used to pay such Floating Rate Certificate Carryovers will be distributed to the ~~Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction~~ holders of the ~~Current Principal Amounts thereof, until the aggregate Current Principal Amounts~~ Class C Certificates. Payments in respect of such ~~Class or Classes~~ Floating Rate Certificate Carryovers from proceeds of ~~Senior Certificates, as applicable, is an amount equal~~ the Corridor Contract shall be paid to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro ~~rata,~~ rata based ~~on Accrued~~ upon such Floating Rate Certificate ~~Interest on~~ Carryovers for each such ~~Class, and then sequentially to~~ class of Certificates. Amounts received on the ~~Class M, Class B-1, Class B-2 and Class B-3 Certif~~Corridor Contract will be

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-Oar2)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows:[Reserved] (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (Ab) On each Distribution Date, amounts on deposit in the ~~Group I Available Funds~~ Distribution Account shall be treated for federal income tax purposes as applied to distributions on the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount sufficient to make the distributions on the respective Certificates on such Distribution Date in accordance with the provisions of this Section 6.01. On each Distribution Date, the interest distributable with respect to the Certificates is the interest which has accrued thereon at the then applicable related Certificate Rate during the related Accrual Period less applicable related Prepayment Interest Shortfalls, if any. All calculations of interest on the Certificates will be made on the basis of a 360-day year and the actual number of days elapsed in the applicable Accrual Period. (c) On each Distribution Date (or on the ~~first Distribution~~ related Swap Payment Date, with respect to payments to the ~~Group I Available~~ Supplemental Interest Trust), the Interest Funds ~~remaining following the distribution of the First~~ for such Distribution Date ~~Distribution Amount~~ are required to be distributed in the following order of priority, until such Interest Funds have been fully distributed: (i) to the Class X P Certificates, any Prepayment Charges collected on the Prepayment Charge Mortgage Loans and (A) ~~will be distributed~~ any amounts paid by the Sponsor or the related Servicer in respect of Prepayment Charges pursuant to this Agreement or the related Servicing Agreement and (B) any amounts received in respect of any indemnification paid as a result of a Prepayment Charge being unenforceable in breach of the representations and warranties set forth in the Mortgage Loan Purchase Agreement received during the related Prepayment Period; (ii) to the ~~Group I Senior Certificates and~~ Supplemental Interest Trust, any Net Swap Payments owed to the ~~Class X Certificates as follows: first~~Swap Counterparty; (iii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment); (iv) concurrently, to ~~the Group I Senior Certificates and Component 1X~~ each class of the ~~Class X~~ Senior Certificates, the ~~Accrued Certificate~~ Current Interest ~~on each such Class or Component for such Distribution Date,~~ and ~~to Component 3X of the Class X Certificates, the Group I Allocation Fraction of Accrued Certificate~~ any Interest ~~on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed~~ Carry Forward Amount with respect to each such ~~Class or Component~~class; provided, however, that if Interest Funds are insufficient to make a full distribution of the aggregate Current Interest and the aggregate Interest Carry Forward Amount to the Senior Certificates, Interest Funds will be distributed pro rata among each class of the Senior Certificates based upon the ratio of (x) the Current Interest and Interest Carry Forward Amount for each class of the Senior Certificates to (y) the total amount of ~~Accrued Certificate~~ Current Interest ~~paid~~ and any Interest Carry Forward Amount for the Senior Certificates in the aggregate; (v) to the Class ~~X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B~~ M-1 Certificates, the Current Interest for such class and ~~that the amount of Accrued Certificate~~ any Interest ~~paid~~ Carry Forward Amount with respect to such class; (vi) to the Class ~~X Certificates pursuant~~ M-2 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to ~~this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on~~ such class; (vii) to the Class MM-3 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (viii) to the Class ~~B-1~~M-4 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (ix) to the Class M-5 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (x) to the Class M-6 Certificates, the Current Interest for such class and any Interest Carry Forward Amount with respect to such class; (xi) to the Class B-1 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xii) to the Class B-2 Certificates, the Current Interest for each such class and any Interest Carry Forward Amount with respect to each such class; (xiii) to the Class B-3 Certificates, ~~in each case~~ the Current Interest for ~~that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and~~ each such ~~Component of the Class X Certificates is subject to reduction in the event of certain Net~~ class and any Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, Carry Forward Amount with respect to ~~Component 1X and Component 3X of the Class X Certificates,~~ each such class; and (xiv) any ~~amounts~~ remainder pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata, in reduction of the respective Current Principal Amounts thereof, the Group I Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (BSection 6.01(g) hereof. On each Distribution Date, subject to the proviso in (iv) above, the Interest Funds received on the Group ~~II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount~~ 1 Mortgage Loans will be deemed to ~~the Class X Certificates) will~~ be distributed to the Class ~~A-2~~ R and Class A-1 Certificates and ~~the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate~~ Interest Funds received on ~~each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates,~~ the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or Component; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 3X 2 Mortgage Loans will be ~~reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid~~ deemed to ~~the Class X Certificates pursuant to this clause in respect of Component 3X will~~ be reduced by the Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third, to the extent of remaining Group II Available Funds, distributed to the Class A-2 Certificates, in ~~reduction~~ each case, until the related Current Interest and Interest Carry Forward Amount of ~~the Current Principal Amount thereof, the Group II~~ each such class or classes of Senior ~~Optimal Principal Amount~~ Certificates for such Distribution ~~Date, until the Current Principal Amount of such Class~~ Date has been ~~reduced~~ paid in full. Thereafter, Interest Funds not required for such distributions are available to ~~zero. (C) On each~~ be applied to if necessary, to the class or classes of Senior Certificates that are not related to such group of Mortgage Loans. With respect to any Distribution Date, ~~the Group III Available Funds will be distributed~~ to the extent that the Prepayment Interest Shortfall exceeds the Compensating Interest Payment payable by the Servicers or the Master Servicer, such amount shall reduce the Current Interest with respect to each Class ~~A-3 Certificates and the Class X Certificates as follows: first~~of Certificates, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that based upon the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-3 Certificates and interest each such ~~Component of the~~ Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B) and (C) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following order, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, in each case up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (F) On each Distribution Date prior to the Cross-Over Date but after the reduction of the Current Principal Amount of any of the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates to zero, the remaining Class or Classes of Senior Certificates (other than the Interest Only Certificates) will would otherwise be entitled to receive on a pro rata basis in reduction of their Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average of the Senior Mezzanine and Subordinate Percentages on such Distribution Date equals or exceeds two times the initial weighted average of the Senior Mezzanine and Subordinate Percentages and (B) the aggregate Scheduled Principal Balance of the Mortgage Loans delinquent 60 days or more (including for this purpose any such Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months, as a percentage of the sum of the aggregate Current Principal Amount of the Senior Mezzanine Certificates and Subordinate Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case after giving effect to distributions to be made on such Distribution Date, then (i) 100% of amounts otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates in respect of principal collections on the Mortgage Loans will be distributed to the Group I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis in reduction of the Current Principal Amounts thereof, until the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and (ii) the Accrued Certificate Interest otherwise allocable to the Senior Mezzanine Certificates and Subordinate Certificates on such Distribution Date will be reduced, if necessary, 100 and distributed on a pro rata basis to such Class or Classes of Senior Certificates in an amount equal to the Accrued Certificate Interest for such Distribution Date on the excess of (x) the aggregate Current Principal Amounts of such Class or Classes of Senior Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group. Any such reduction in the Accrued Certificate Interest on the Senior Mezzanine Certificates and Subordinate Certificates will be allocated on a pro rata basis in reverse order of the numerical designations of the Subordinate Certificates, commencing with the Class B-6 Certificates, and then will be allocated to the Class M Certificates. (b) If, after distributions have been made pursuant to priorities first, second and third of clause (A) above or priorities first and second of clause (B) or clause (C) above on any Distribution Date, the remaining Group I Available Funds, Group II Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then such respective amounts shall be reduced, and such remaining funds will be distributed to the related Senior Certificates (other than the Interest Only Certificates) on the basis of such reduced amounts. (c) Pro rata" principal distributions among Classes of Certificates will be made in proportion to the then Current Principal Amount of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates.[RESERVED] (e) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of funds then available, make the following distributions from the Distribution Account of an amount equal to the Principal Distribution Amount in the following order of priority, and each such distribution shall be made only after all distributions pursuant to Section 6.01(c) above shall have been made until such amount shall have been fully distributed for such Distribution Date: (i) to the Supplemental Interest Trust, any ~~amounts in~~ Net Swap Payments owed to the ~~Carryover Shortfall Reserve Fund~~ Swap Counterparty, to the extent not paid pursuant to Section 6.01(c)(ii); (ii) to the Supplemental Interest Trust, any Swap Termination Payment owed by the Supplemental Interest Trust to the Swap Counterparty (other than any Defaulted Swap Termination Payment), to the extent not paid pursuant to Section 6.01(c)(iii); (iii) to the Senior Certificates, the Senior Principal Distribution Amount shall be distributed as follows: (1) the Group 1 Principal Distribution Amount shall be distributed as follows: (I) first, to the Class R Certificate until its Class Certificate Balance has been reduced to zero, and second, to the Class A-1 Certificates, until the Class Certificate Balance of such Class has been reduced to zero; (2) the Group 2 Principal Distribution Amount will be distributed~~, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates~~, pro rata, based on ~~Accrued~~ the Class Certificate ~~Interest on each~~ Balance (i) first, to the Class A-2A Certificates until the Class Certificate Balance of such ~~Class~~class is reduced to zero, second, to the Class A-2B Certificates, until the Class Certificate Balance of such class is reduced to zero, and ~~then sequentially~~ third, to the Class A-2C, until the Class Certificate Balance of such class is reduced to zero and (ii) to the Class A-2D Certificates until the Class Certificate Balance of such Class has been reduced to zero; provided, however, that on and after the Distribution Date on which the aggregate Class Certificate Balance of the Class M, Class ~~B-1~~B and Class C Certificates has been reduced to zero, the Group 2 Principal Distribution Amount will be distributed sequentially (i) first, to the Class A-2A, Class ~~B-2~~ A-2B and Class A-2C Certificates, pro rata, among such classes, based on their respective Class Certificate Balances, until their Class Certificate Balances have been reduced to zero and (ii) second, to the Class A-2D Certificates, until its Class Certificate Balance is reduced to zero; and (iv) to the Class M-1 Certificates, the Class M-1 Principal Distribution Amount; (v) to the Class M-2 Certificates, the Class M-2 Principal Distribution Amount; (vi) to the Class M-3 Certificates, the Class M-3 Principal Distribution Amount; (vii) to the Class M-4 Certificates, the Class M-4 Principal Distribution Amount; (viii) to the Class M-5 Certificates, the Class M-5 Principal Distribution Amount; (ix) to the Class M-6 Certificates, the Class M-6 Principal Distribution Amount; (x) to the Class B-1 Certificates, the Class B-1 Principal Distribution Amount; (xi) to the Class B-2 Certificates, the Class B-2 Principal Distribution Amount; (xii) to the Class B-3 ~~Certif~~Certificates, the Class B-3 Principal Distribution Amount; and (xiii) any remainder pursuant to Section 6.01(g) hereof. If on any Distribution Date any Mortgage Group would be an Undercollateralized Group after distributions on such date, then payments that would otherwise be made pursuant to clauses (iv) through (xiii) above (such reallocations to be made first from the most subordinated Class of Certificates) shall be made to the Senior Certificates of the Undercollateralized Group until such Loan Group is no longer an Undercollateralized Group. (f) [RESERVED] (g) On each Distribution Date (or in the case of any Net Swap Payments owed to the Swap Counterparty, one business day (as defined in the Swap Agreement) prior to such Distribution Date), the Securities Administrator shall, to the extent of Interest Funds and Principal Funds then available, make the following distributions up to the following amounts from the Distribution Account of the remainders pursuant to Section 6.01(c)(xiv) and (e)(xiii) hereof and each such distribution shall be made only after all distributions pursuant to Sections 6.01(c) and (e) above shall have been made until such remainders shall have been fully distributed for such Distribution Date: (i) to the Senior Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(iv) to the extent unpaid by Interest Funds; (ii) to the Subordinate Certificates, any amounts due as described in the same order of priority as set forth in Section 6.01(c)(v) through (xiii) to the extent unpaid by Interest Funds; (iii) the Extra Principal Distribution Amount; (iv) to the Class M-1 Certificates, any Unpaid Realized Loss Amount for such class; (v) to the Class M-2 Certificates, any Unpaid Realized Loss Amount for such class; (vi) to the Class M-3 Certificates, any Unpaid Realized Loss Amount for such class; (vii) to the Class M-4 Certificates, any Unpaid Realized Loss Amount for such class; (viii) to the Class M-5 Certificates, any Unpaid Realized Loss Amount for such class; (ix) to the Class M-6 Certificates, any Unpaid Realized Loss Amount for such class; (x) to the Class B-1 Certificates, any Unpaid Realized Loss Amount for such class; (xi) to the Class B-2 Certificates, any Unpaid Realized Loss Amount for such class; (xii) to the Class B-3 Certificates, any Unpaid Realized Loss Amount for such class; (xiii) to the Offered Certificates, on a pro rata basis, based upon outstanding Floating Rate Certificate Carryover for each such Class, the Floating Rate Certificate Carryover for each such Class; (xiv) to the Supplemental Interest Trust, any Defaulted Swap Termination Payment to the extent not already paid; and (xv) the remainder pursuant to Section 6.01(h) hereof. (h) on each Distribution Date, the Securities Administrator shall allocate the remainders pursuant to Section 6.01(g)(xv) as follows: (i) to the Class C Certificates in the following order of priority, (I) the Class C Current Interest, (II) the Class C Interest Carry Forward Amount, (III) as principal on the Class C Certificate until the Class Certificate Balance of the Class C Certificates has been reduced to zero and (IV) the Class C Unpaid Realized Loss Amount; and (ii) the remainder pursuant to Section 6.01(i) hereof. (i) On each Distribution Date, the Securities Administrator shall allocate the remainder pursuant to Section 6.01(h)(ii) hereof (i) to the Securities Administrator to reimburse amounts or pay indemnification amounts owing to the Securities Administrator from the Issuing Entity pursuant to Section 7.03 and (ii) to the Class R Certificate and such distributions shall be made only after all preceding distributions shall have been made until such remainder shall have been fully distributed. (j) On each Distribution Date, after giving effect to distributions on such Distribution Date, the Securities Administrator shall allocate the Realized Loss Amount for the Certificates to reduce the Class Certificate Balances of the Class C Certificates and the Subordinate Certificates in the following order of priority: (i) to the Class C Certificates, until the Class C Class Certificate Balance is reduced to zero; (ii) to the Class B-3 Certificates until the Class B-3 Class Certificate Balance is reduced to zero; (iii) to the Class B-2 Certificates until the Class B-2 Class Certificate Balance is reduced to zero; (iv) to the Class B-1 Certificates until the Class B-1 Class Certificate Balance is reduced to zero; (v) to the Class M-6 Certificates until the Class M-6 Class Certificate Balance is reduced to zero; (vi) to the Class M-5 Certificates until the Class M-5 Class Certificate Balance is reduced to zero; (vii) to the Class M-4 Certificates until the Class M-4 Class Certificate Balance is reduced to zero; (viii) to the Class M-3 Certificates until the Class M-3 Class Certificate Balance is reduced to zero; (ix) to the Class M-2 Certificates until the Class M-2 Class Certificate Balance is reduced to zero; and (x) to the Class M-1 Certificates until the Class M-1 Class Certificate Balance is reduced to zero. (k) Subject to Section 10.02 hereof respecting the final distribution, on each Distribution Date the Securities Administrator shall make distributions to each Certificateholder of record on the preceding Record Date either by wire transfer in immediately available funds to the account of such holder at a bank or other entity having appropriate facilities therefor, if such Holder has so notified the Securities Administrator at least five (5) Business Days prior to the related Record Date or, if not, by check mailed by first class mail to such Certificateholder at the address of such holder appearing in the Certificate Register. Notwithstanding the foregoing, but subject to Section 10.02 hereof respecting the final distribution, distributions with respect to Certificates registered in the name of a Depository shall be made to such Depository in immediately available funds. In accordance with this Agreement, the Master Servicer shall prepare and deliver an electronic report (the "Remittance Report") to the Securities Administrator (or by such other means as the Master Servicer and the Securities Administrator may agree from time to time) containing such data and information as to permit the Securities Administrator to prepare the Monthly Statement to Certificateholders and make the required distributions for the related Distribution Date. The Securities Administrator will prepare the Monthly Report based solely upon the information received from the Master Servicer, which in turn shall be based on information from the Servicers and the Cap Contract Counterparty. (l) The Securities Administrator is hereby directed by the Depositor to execute the Corridor Contracts on behalf of the Issuing Entity in the form presented to it by the Depositor and shall have no responsibility for the contents of such Corridor Contracts, including, without limitation, the representations and warranties contained therein. Any funds payable by the Issuing Entity under the Corridor Contracts at closing shall be paid by the Depositor. Notwithstanding anything to the contrary contained herein or in any Corridor Contract, except as set forth in Section 2 of each Corridor Contract, the Issuing Entity shall not be required to make any payments to the counterparty under any Corridor Contract. Any payments received under the terms of the related Corridor Contract will be available to pay the holders of the related Class A-1 and Class R Certificates, Class A-2 Certificates and Subordinate Certificates up to the amount of any Floating Rate Certificate Carryovers remaining after all other distributions required under this Section 6.01 are made on such Distribution Date, other than Floating Rate Certificate Carryovers attributable to the fact that Realized Loss Amounts are not allocated to the Senior Certificates. Any amounts received under the terms of any Corridor Contract on a Distribution Date th

Appears in 1 contract

Sources: Pooling and Servicing Agreement (Merrill Lynch Alternative Note Asset Trust, Series 2007-A3)

Distributions on the Certificates. (a) Interest and principal on the Certificates will be distributed monthly on each Distribution Date, commencing in October 2004, in an aggregate amount equal to the Available Funds for such Distribution Date. On the first Distribution Date, the Paying Agent will, prior to the distribution of Available Funds to any Certificate, distribute the First Distribution Date Distribution Amount to the Class X Certificates, as follows: (i) from Group I Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 1X Distribution Percentage; (ii) from Group II Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 2X Distribution Percentage; and (iii) from Group III Available Funds, an amount equal to the product of (x) the First Distribution Date Distribution Amount and (y) the Component 3X Distribution Percentage. (A) On each Distribution Date, ~~the Group I~~ an amount equal to Available Funds ~~(or on~~ for such Distribution Date shall be withdrawn by the ~~first~~ Securities Administrator from the Distribution Account and distributed as directed in accordance with the Remittance Report for such Distribution Date, as follows: 1. > from the related Group I Available Funds: (A) <ERROR> on the Distribution Date in December 2015 and on each Distribution Date thereafter, for deposit in the Final Maturity Reserve Account, the Final Maturity Reserve Amount, if any, for the related Mortgage Loan Group. (B) to each Senior Certificate Group, from the related Group Available Funds ~~remaining~~ in the following ~~the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Group I Senior Certificates and the Class X Certificates as follows~~priority: first~~, to the Group I Senior Certificates and Component 1X of the Class X Certificates~~, the Accrued Certificate Interest ~~on each such Class or Component~~ for such ~~Distribution Date, and to Component 3X of the Class X Certificates, the~~ Senior Certificate Group ~~I Allocation Fraction of Accrued Certificate Interest on such Component~~ for such Distribution Date, pro ~~rata,~~ rata based on the amount of Accrued Certificate Interest ~~owed~~ due to each ~~such~~ Class ~~or Component~~in that Senior Certificate Group; provided, however, that any shortfall in available amounts for the related Mortgage Loan Group will be allocated among the Classes of Senior Certificates relating to such Mortgage Loan Group (other than the Class A-X Certificates) in proportion to the amount of such interest (as so reduced) that would otherwise be distributable thereon; provided, further, that for the purpose of distributions to the Class A-X Certificates, only the portion of their Current Notional Amount derived from the Mortgage Loans in the related Mortgage Loan Group will be used to calculate distributions to the Class A-X Certificates from the related Group Available Funds; provided, further, to the extent of the Required Available Funds Cap Reserve Fund Deposit for that Distribution Date, interest that would otherwise be payable to the Class A-X Certificates will be deposited in the Available Funds Cap Reserve Fund and will not be distributed to that Class; second, any Accrued Certificate Interest for such Senior Certificate Group remaining undistributed from previous Distribution Dates, pro rata based on the amount of Accrued Certificate Interest paid to the Class X Certificates in respect of Component 1X will be reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-1A Certificates and Class A-1B Certificates, and that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group I Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on such Class A-1A Certificates and Class A-1B Certificates and each such Component of the Class X Certificates is subject to reduction in the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among such Class A-1A Certificates and Class A-1B Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent of remaining Group I Available Funds, to the Group I Senior Certificates and Component 1X and Component 3X of the Class X Certificates, the Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 1X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each ~~such~~ Class ~~or Component; third, to the extent of remaining Group I Available Funds, to the Class R Certificates, pro rata,~~ in ~~reduction of the respective Current Principal Amounts thereof, the Group I~~ that Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amounts of such Classes have been reduced to zero; and fourth, to the extent of remaining Group I Available Funds, to the Class A-1A and Class A-1B Certificates, in reduction of the respective Current Principal Amounts thereof, the remaining Group I Senior Optimal Principal Amount for such Distribution Date, until the respective Current Principal Amounts of each such Class has been reduced to zero. (B) On each Distribution Date, the Group II Available Funds (or on the first Distribution Date, the Group II Available Funds following the distribution of the First Distribution Date Distribution Amount to the Class X Certificates) will be distributed to the Class A-2 Certificates and the Class X Certificates as follows: first, to the Class A-2 Certificates and to Component 2X of the Class X Certificates, the Accrued Certificate Interest on each such Class or Component for such Distribution Date, and to Component 3X of the Class X Certificates, the Group II Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date, pro rata, based on the Accrued Certificate Interest owed to each such Class or ComponentGroup; provided, however, that any shortfall in available amounts for the related Mortgage Loan Group will be allocated among the Classes of Senior Certificates relating to such Mortgage Loan Group (other than the Class A-X Certificates) in proportion to the amount of ~~Accrued Certificate Interest paid~~ such interest (as so reduced) that would otherwise be distributable thereon; provided, further, that for the purpose of distributions to the Class A-X ~~Certificates~~ Certificates, only the portion of their Current Notional Amount derived from the Mortgage Loans in ~~respect of Component 3X~~ the related Mortgage Loan Group will be ~~reduced by the aggregate amount of any Carryover Shortfall Amounts on the Class A-2 Certificates and that the amount of Accrued Certificate Interest paid~~ used to calculate distributions to the Class A-X Certificates ~~pursuant~~ from the related Group Available Funds; provided, further, to ~~this clause in respect~~ the extent of ~~Component 3X will be reduced by~~ the ~~Group II Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case~~ Required Available Funds Cap Reserve Fund Deposit for that Distribution Date, ~~which~~ interest that would otherwise be payable to the Class A-X Certificates will be deposited ~~into the Carryover Shortfall Reserve Fund. In addition, Accrued Certificate Interest on the Class A-2 Certificates and each such Component of the Class X Certificates is subject to reduction~~ in the ~~event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall~~ Available Funds Cap Reserve Fund and will not be ~~allocated among the Class A-2 Certificates and such Components of the Class X Certificates in accordance with the provisions of Section 6.02(g)~~distributed to that Class; second, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates and Component 2X and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 2X and Component 3X of the Class X Certificates, any amounts pursuant to clause first deposited into the Carryover Shortfall Reserve Fund), pro rata, based on the undistributed Accrued Certificate Interest owed to each such Class or Component; and third~~, to the extent of remaining Group II Available Funds, to the Class A-2 Certificates~~, in reduction of the Current Principal Amount ~~thereof~~of the Senior Principal Certificates of such Senior Certificate Group, the related Group II Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount ~~of such Class~~ thereof has been reduced to zero.; and ~~(C) On each Distribution Date~~2. first, from the ~~Group III~~ Yield Maintenance Account, and second, from the Available Funds Cap Reserve Fund, in that order, for distribution to the Class A-1, Class A-2, Class A-3 and Class A-4 Certificates, any Available Funds Cap Shortfall Amounts remaining unpaid for each such Class and such Distribution Date pursuant to Sections 4.07 and 4.08; provided that payments derived from a Yield Maintenance Agreement will be used only to cover Available Funds Cap Shortfall Amounts on the related Class of Class A-1, Class A-2, Class A-3 and Class A-4 Certificates and any excess therefrom will be distributed to ~~the~~ Class A-3 Certificates and the Class X Certificates as follows: first, pro rata, to the Group III Senior Certificates, the Accrued Certificate Interest on such Class for such Distribution Date, and to Component 3X of the Class A-X Certificates, the Group III Allocation Fraction of Accrued Certificate Interest on such Component for such Distribution Date; provided, however, that the amount of Accrued Certificate Interest paid to the Class X Certificates pursuant to this clause in respect of Component 3X will be reduced by the Group III Allocation Fraction of any Carryover Shortfall Amounts on the Class M, Class B-1, Class B-2 and Class B-3 Certificates, in each case for that Distribution Date, which will be deposited into the Carryover Shortfall Reserve Fund; 3. ~~In addition, Accrued Certificate Interest on the Class A-3 Certificates and each such Component of the Class X Certificates is~~ subject to ~~reduction in~~ clauses 4 and 5 below, from the event of certain Net Interest Shortfalls allocable thereto. Any Net Interest Shortfalls shall be allocated among the Class A-3 Certificates and Components of the Class X Certificates in accordance with the provisions of Section 6.02(g); second, to the extent sum of remaining Group III Available Funds, to the Class A-3 Certificates and Component 3X of the Class X Certificates, any Accrued Certificate Interest thereon pursuant to clause first remaining undistributed from previous Distribution Dates (other than, with respect to Component 3X of the Class X Certificates, any amounts deposited into the Carryover Shortfall Reserve Fund); and third, to the extent of remaining Group III Available Funds, to the Class A-3 Certificates, in reduction of the Current Principal Amount thereof, the Group III Senior Optimal Principal Amount for such Distribution Date, until the Current Principal Amount of such Class has been reduced to zero. (D) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds ~~and Group III Available Funds~~ for all Mortgage Loan Groups after the distributions in ~~(A), (B~~clauses 1(A) and (C1(B) above will be distributed to the Class M Certificates, up to an amount equal to and in the following order: (a) the Accrued Certificate Interest thereon for such Distribution Date, (b) any Accrued Certificate Interest thereon remaining undistributed from previous Distribution Dates and (c) such Class's Allocable Share for such Distribution Date, in each case, to the extent of the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds. (E) Except as provided in paragraphs (F) and (G) below, on each Distribution Date on or prior to the Cross-Over Date, an amount equal to the sum of the remaining Group I Available Funds, Group II Available Funds and Group III Available Funds after the distributions in (A), (B), (C) and (D) above will be distributed sequentially, in the following orderabove, to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, sequentially in that order in each ~~case~~ case, up to an amount equal to and in the following order: ~~(a) the~~ first, Accrued Certificate Interest ~~thereon~~ for such Class for that Distribution Date, ~~(b)~~ second, any Accrued Certificate Interest ~~thereon~~ on that Class remaining undistributed from previous Distribution ~~Dates~~ Dates; and ~~(c)~~ third, such Class's ’ Allocable Share for such Distribution Date~~, in each case,~~ . 4. Notwithstanding anything to the ~~extent of the remaining Group I Available Funds~~contrary in clauses 1(B) and 3 above, ~~Group II Available Funds and Group III Available Funds. (F) On each~~ on any Distribution Date prior to the Cross-Over Date but after the ~~reduction of~~ date on which the Current Principal Amount of ~~any~~ one or more Classes of ~~the~~ Senior Principal Certificates (following application of Group ~~I Senior Certificates, Group II Senior Certificates or Group III Senior Certificates~~ Available Funds pursuant to clause 1(B) above) has been reduced to zero, unless the ~~remaining~~ Subordination Doubling Test and the Delinquency Test have been satisfied for such Distribution Date, amounts in respect of the related Mortgage Loan Group for each such Senior Certificate Group that would be otherwise distributable as principal under clauses (ii) and (iv) of the definition of Subordinate Optimal Principal Amount to each Class ~~or Classes~~ of ~~Senior~~ Subordinate Certificates pursuant to paragraph third of clause (~~other than~~ 3) above, shall, in inverse order of priority, beginning with the ~~Interest Only~~ Class B-6 Certificates~~) will~~ , be ~~entitled~~ applied to ~~receive on a pro rata basis in reduction of their~~ reduce the Current Principal Amounts, in addition to any Principal Prepayments related to such remaining Senior Certificates' respective Loan Group allocated to such Senior Certificates, 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully repaid Class or Classes of Senior Certificates (other than the Interest Only Certificates); provided, however, that if (A) the weighted average Amount of the Senior ~~Mezzanine and Subordinate Percentages~~ Principal Certificates of each Senior Certificate Group that remains outstanding on such Distribution Date ~~equals or exceeds two times~~ (following application of GroupAvailable Funds pursuant to clause 1(B) above), until such Current Principal Amount thereof has been reduced to zero. If more than one such Senior Certificate Group exists, such amounts shall be allocated to the ~~initial weighted average~~ Senior Principal Certificates of the Senior ~~Mezzanine and Subordinate Percentages and (B)~~ Certificate Groups pro rata, based upon the ~~aggregate Scheduled~~ Current Principal ~~Balance~~ Amount of ~~the Mortgage Loans delinquent 60 days or more (including for this purpose any~~ each such ~~Mortgage Loans in foreclosure and Mortgage Loans with respect to which the related Mortgaged Property has been acquired by the Trust), averaged over the last six months,~~ Senior Principal Certificate as a percentage ~~of the sum~~ of the aggregate Current Principal Amount of ~~the~~ all Senior ~~Mezzanine Certificates and Subordinate~~ Principal Certificates, does not exceed 100%, then the additional allocation of Principal Prepayments to the Group I Senior Certificates, Group II Senior Certificates and Group III Senior Certificates in accordance with this clause (F) will not be made and 100% of the Principal Prepayments on any Mortgage Loan in the Loan Group relating to the fully prepaid Class or Classes of Senior Certificates (other than the Interest Only Certificates) will be allocated on a pro rata basis to the Senior Mezzanine Certificates and Subordinate Certificates. (G) If on any Distribution Date the aggregate Current Principal Amount of the Group I, Group II Senior Certificates or Group III Senior Certificates would be greater than the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group and any Senior Mezzanine Certificates and Subordinate Certificates are still outstanding, in each case ~~after giving effect~~ immediately prior to ~~distributions to be made on~~ such Distribution Date. 5. Notwithstanding anything to the contrary in clauses 1(B) and 3 above, ~~then~~ if an Undercollateralized Group exists on any Distribution Date, then (iA) 100% of ~~amounts~~ Available Funds otherwise ~~allocable~~ payable on such Distribution Date to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates in respect of principal ~~collections on the Mortgage Loans~~ will be ~~distributed~~ reallocated to pay to the Senior Principal Certificates in such Undercollateralized Group ~~I Senior Certificates~~the related Undercollateralization Amount, ~~Group II Senior Certificates or Group III Senior Certificates, as applicable, on a pro rata basis~~ in reduction of the Current Principal ~~Amounts~~ Amount thereof. In the event that there is more than one Undercollateralized Group on a Distribution Date, ~~until~~ such Available Funds will be allocated pro rata among each such Undercollateralized Group, based on the Undercollateralization Amount for each such Undercollateralized Group as a percentage of the aggregate ~~Current Principal Amounts of~~ Undercollateralization Amount for all such ~~Class or Classes of Senior Certificates, as applicable, is an amount equal to the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Loan Group, and~~ Undercollateralized Groups; and (iiB) the Accrued Certificate Interest otherwise allocable to the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates on ~~such~~ that Distribution Date ~~will be reduced~~will, if necessary, ~~100~~ be reduced and distributed ~~on a pro rata basis~~ to ~~such~~ that Class or those Classes of Senior Certificates (including both the Senior Principal Certificates and the portion of the Class A-X Certificates derived from Mortgage Loans in the related Mortgage Loan Group and, if such distribution relates to the Class A-4 Certificates, the Class A-4X Certificates) in an amount equal to the Accrued Certificate Interest with respect to the Senior Principal Certificates, the Class A-4X Certificates, if applicable, and the portion of the Class A-X Certificates derived from Mortgage Loans in the related Mortgage Loan Group for ~~such~~ that Distribution Date on the excess of (x) the aggregate Current Principal ~~Amounts~~ Amount of ~~such~~ that Class or those Classes of Senior Principal Certificates over (y) the aggregate Scheduled Principal Balance of the Mortgage Loans in the related Mortgage Loan ~~Group~~Group (pro rata if more than one Class of Senior Certificates is so affected, based on the relative amounts of Accrued Certificate Interest for each such Class). Any ~~such~~ reduction in the Accrued Certificate Interest on or principal of the ~~Senior Mezzanine Certificates and~~ Subordinate Certificates pursuant to this Clause 5 will be allocated ~~on a pro rata basis~~ to the Subordinate Certificates in reverse order of ~~the~~ their numerical ~~designations of the Subordinate Certificates~~designations, commencing with the Class B-6 Certificates. Notwithstanding the foregoing, ~~and then will~~ on the first Distribution Date, an amount equal to $50 shall be ~~allocated~~ distributed to each of the Class ~~M Certificates~~R-I Certificate, the Class R-II Certificate and the Class R-III Certificate from funds deposited in the Distribution Account on the Closing Date. (b) IfOn the earlier of the Distribution Date in December 2035 and the termination of the Trust, the Securities Administrator shall distribute the funds on deposit in the Final Maturity Reserve Account in the following order of priority: (i) to the Class A-1, Class A-2 and Class A-3 Certificates, concurrently, in proportion to their respective Current Principal Amounts, after giving effect to principal distributions ~~have been made~~ on such Distribution Date pursuant to ~~priorities first~~Section 6.01(a)1(B)third above, ~~second~~ in reduction of their respective Current Principal Amounts, until the Current Principal Amount of each such Class has been reduced to zero; (ii) to the Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and ~~third~~ Class B-6 Certificates, in that order, after giving effect to principal distributions on such Distribution Date pursuant to Section 6.01(a)3third above, in reduction of ~~clause~~ their respective Current Principal Amounts, until the Current Principal Amount of each such Class has been reduced to zero; (Aiii) ~~above or priorities first~~ to the Class ▇-▇, ▇▇▇▇▇ ▇-▇, Class A-3, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and ~~second of clause (B) or clause (C) above~~ Class B-6 Certificates, any Interest Shortfalls for each such Class remaining unpaid on ~~any~~ such Distribution Date, in the ~~remaining Group I Available Funds~~same priority as set forth in Sections 6.01(a)1(B)second and 6.01(a)3 second; (iv) to the Class A-1, ~~Group II~~ Class A-2 and Class A-3 Certificates, concurrently, in proportion to their respective Current Principal Amounts, any Available Funds or Group III Available Funds, respectively, are less than the Group I Senior Optimal Principal Amount, Group II Senior Optimal Principal Amount and Group III Senior Optimal Principal Amount, respectively, then Cap Shortfall Amounts remaining for each such ~~respective amounts shall be reduced, and~~ Class on such ~~remaining funds will be distributed~~ Distribution Date; and (v) to the ~~related Senior Certificates~~ extent of any funds remaining in the Final Maturity Reserve Account after payment pursuant to clauses (~~other than~~ i) through (iv) above, to the ~~Interest Only~~ Class I Certificates~~) on the basis of such reduced amounts~~. (c) ~~Pro rata" principal distributions among Classes~~ The expenses and fees of ~~Certificates will~~ the Trust shall be ~~made in proportion~~ paid by each of the REMICs, to the ~~then Current Principal Amount~~ extent that such expenses relate to the assets of each of such Classes. "Pro rata" interest distributions among Classes of Certificates on any Distribution Date will be made in proportion to the Accrued Certificate Interest payable on such Distribution Date. (d) On each Distribution Date, any Available Funds remaining after payment of interest and principal to the Classes of Certificates entitled thereto, as described above, will be distributed to the Class R-III Certificates; provided that if on any Distribution Date there are any Group I Available Funds, Group II Available Funds or Group III Available Funds remaining after payment of interest and principal to a Class or Classes of Certificates entitled thereto, such amounts will be distributed to the other Classes of Senior Certificates (other than the Interest Only Certificates), pro rata, based upon their Current Principal Amounts, until all amounts due to all such Classes of Senior Certificates (other than the Interest Only Certificates) have been paid in full, before any amounts are distributed to the Class R-III Certificates. (e) On each Distribution Date, any amounts in the Carryover Shortfall Reserve Fund will be distributed, in the following order, first to the Class A-1A, Class A-1B and Class A-2 Certificates, pro rata, based on Accrued Certificate Interest on each such Classrespective REMICs, and ~~then sequentially to~~ all other expenses and fees of the ~~Class M, Class B-1, Class B-2 and Class B-3 Certif~~Trust shall be paid pro rata by both of the REMICs.

Appears in 1 contract

Sources: Trust, Pooling and Servicing Agreement (Thornburg Mortgage Securities Trust 2005-4)

Common use of Distributions on the Certificates Clause in Contracts