Common use of REMIC 1 Clause in Contracts

REMIC 1. (i) The Trustee will make an election to treat the segregated pool of assets consisting of the Group 1 Mortgage Certificates and such amounts as shall be deemed held in the Group 1 Sub-Account as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC 1.” The Class R1 Interest will represent the sole class of “residual interests” in REMIC 1 for purposes of the REMIC Provisions. REMIC 1 will issue three regular interests for purposes of the REMIC Provisions, designated as the Class 1A1 Interest, Class 1A2 Interest and Class 1A3 Interest, each with an initial Uncertificated Balance equal to the Original Class Balance of the Corresponding Certificates and with a pass-through rate equal to the Pass-Through Rate of the Corresponding Certificates. (ii) On each Distribution Date, the Trustee will be deemed to distribute the interest portion of the REMIC Distribution Amount for the related Group to pay Uncertificated Accrued Interest on the Class 1A1 Interest, Class 1A2 Interest and Class 1A3 Interest, plus any such amounts remaining unpaid from prior Distribution Dates, which amount shall equal the Interest Accrual Amount of the Corresponding Certificates in each case to the extent actually distributed thereon. On each Distribution Date, the Trustee will be deemed to distribute the principal portion of the REMIC Distribution Amount for the related Group to reduce the Uncertificated Balance of the Class 1A1 Interest, Class 1A2 Interest and Class 1A3 Interest until the Uncertificated Balances equal the Class Balances of the Corresponding Certificates and will increase the Uncertificated Balance of the Class 1A3 Interest to the extent of any Class 1-A-3 Accrual Distribution Amount. Realized Loss Shortfalls will be allocated to the Class 1A1 Interest, Class 1A2 Interest and Class 1A3 Interest in reduction of their respective Uncertificated Balances at the same time and in the same manner as such Realized Loss Shortfalls are allocated to the Corresponding Certificates. Increases in the Class Balances of the Corresponding Certificates pursuant to Section 3.03(a) and 3.03(b) will be allocated to the Class 1A1 Interest, Class 1A2 Interest and Class 1A3 Interest at the same time and in the same manner as such increases are allocated to the Corresponding Certificates. Any remaining REMIC Distribution Amount for the related Group will be distributed to the Class 1-A-R Certificate (in respect of the Class R1 Interest).