Common use of Exchangeable REMIC Certificates Clause in Contracts

Exchangeable REMIC Certificates. The Class 1-A-4, Class 1-A-6, Class 1-A-11, Class 1-A-17, Class 1-A-18, Class 1-A-19, Class 2-A-3, Class 3-A-2 and Class 30-IO Certificates are Interest Only Certificates and are not entitled to distributions in respect of principal. Notwithstanding the foregoing, on each Distribution Date prior to the Senior Credit Support Depletion Date but on or after the date on which the aggregate Class Certificate Balance of the Senior Non-PO Certificates of a Group have been reduced to zero, amounts otherwise distributable as principal payments from the Related Loan Group on the Subordinate Certificates will be paid as principal to the remaining Classes of Senior Non-PO Certificates together with the applicable Senior Principal Distribution Amount in accordance with the priorities set forth for the applicable Group in (b)(i), (ii) or (iii) above, provided that on such Distribution Date (a) the Aggregate Subordinate Percentage for such Distribution Date is less than twice the initial Aggregate Subordinate Percentage or (b) the outstanding principal balance of the Mortgage Loans (including, for this purpose, any Mortgage Loans in foreclosure, any REO Property and any Mortgage Loan for which the Mortgagor has filed for bankruptcy after the Closing Date) delinquent 60 days or more (averaged over the preceding six month period), as a percentage of the aggregate Class Certificate Balance of the Subordinate Certificates, is equal to or greater than 50%. If the Senior Non-PO Certificates of two Groups remain outstanding, the distributions described above will be made to the Senior Non-PO Certificates of such Groups, pro rata, in proportion to the aggregate Class Certificate Balance of the Senior Non-PO Certificates of each such Group. In addition, after giving effect to the second preceding sentence, if on any Distribution Date the aggregate Class Certificate Balance of the Senior Non-PO Certificates of a Group is greater than the Adjusted Pool Amount (Non-PO Portion) of the related Loan Group (any such Group, the "Undercollateralized Group" and any such excess, the "Undercollateralized Amount"), all amounts otherwise distributable as principal on the Subordinate Certificates pursuant to Section 5.02(a)(iv)(L), (J), (H), (F), (D) and (B), in that order, will be paid as principal to the Senior Non-PO Certificates of the Undercollateralized Group together with the applicable Senior Principal Distribution Amount in accordance with the priorities set forth for the applicable Group above under (b)(i), (ii) or (iii) until the aggregate Class Certificate Balance of the Senior Non-PO Certificates of the Undercollateralized Group equals the Adjusted Pool Amount (Non-PO Portion) of the Related Loan Group. Also, the amount of any Class Unpaid Interest Shortfalls and Component Unpaid Interest Shortfalls with respect to the Undercollateralized Group (including any Class Unpaid Interest Shortfalls or Component Unpaid Interest Shortfalls for such Distribution Date) will be paid to the Undercollateralized Group (including the IO Component of such Undercollateralized Group) pursuant to Section 5.02(a)(i) prior to the payment of any Undercollateralized Amount from amounts otherwise distributable as principal on the Subordinate Certificates pursuant to Section 5.02(a)(iv)(N), (L), (J), (H),(F), (D) and (B), in that order. Such amount will be paid to the Senior Non-PO Certificates and IO Component of such Undercollateralized Group in accordance with the priorities set forth in Section 5.02(a)(i) up to their Interest Distribution Amounts or Component Interest Distribution Amounts for such Distribution Date. The PO Deferred Amounts for the Class 30-PO Certificates will be paid from amounts otherwise distributable as principal on the Subordinate Certificates before any payments are made pursuant to the preceding paragraph.