REMIC 2 Clause Samples
The REMIC 2 clause establishes provisions related to the operation or administration of a Real Estate Mortgage Investment Conduit (REMIC) under a second-tier or secondary structure. Typically, this clause outlines the requirements for maintaining REMIC status for a specific trust or sub-trust within a larger securitization, including compliance with tax regulations and the segregation of assets. By clearly defining the rules and responsibilities for the secondary REMIC, the clause ensures continued tax-advantaged treatment and regulatory compliance, thereby protecting the interests of investors and maintaining the integrity of the securitization structure.
REMIC 2. (i) The Trustee will make an election to treat the segregated pool of assets consisting of the Group 2 Mortgage Certificates and such amounts as shall be deemed held in the Group 2 Sub-Account as a REMIC for federal income tax purposes, and such segregated pool of assets will be designated as “REMIC 2.” The Class R2 Interest will represent the sole class of “residual interests” in REMIC 2 for purposes of the REMIC Provisions. REMIC 2 will issue three regular interests for purposes of the REMIC Provisions, designated as the Class 2A1 Interest, Class 2A2 Interest and Class 2A3 Interest, each with an initial Uncertificated Balance equal to the Original Class Balance of the Corresponding Certificates and each 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 2A1 Interest, Class 2A2 Interest and Class 2A3 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 2A1 Interest, Class 2A2 Interest and Class 2A3 Interest until the Uncertificated Balances equal the Class Balances of the Corresponding Certificates and will increase the Uncertificated Balance of the Class 2A3 Interest to the extent of any Class 2-A-3 Accrual Distribution Amount. Realized Loss Shortfalls will be allocated to the Class 2A1 Interest, Class 2A2 Interest and Class 2A3 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 2A1 Interest, Class 2A2 Interest and Class 2A3 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 R2 Interest).
REMIC 2. On each Distribution Date, the timing and amounts of principal distributions and allocations of Realized Losses on each Class of REMIC 2 Regular Interests shall be identical to the timing, amounts and allocations in respect of the corresponding Classes of REMIC 1 Regular Interests pursuant to Section 4.08(d). For these purposes, the Class T2-1 and Class T2-11 Interests correspond to the Class T1-1 Interest, the Class T2-2 and Class T2-12 Interests correspond to the Class T1-2 Interest, the Class T2-3 and Class T2-13 Interests correspond to the Class T1-3 Interest, and the Class T2-4 Interest corresponds to the Class T1-4 Interest. Interest will accrue on each of the Class T2-1, Class T2-2 and Class T2-3 Interests at the REMIC 2 Pass-Through Rate. Interest will accrue on each of the Class T2-11, Class T2-12 and Class T2-13 Interests at the excess, if any, of the Adjusted Weighted Average Net Mortgage Rate over the REMIC 2 Pass-Through Rate. Interest will accrue on the Class T2-4 Interest at the Weighted Average Net Mortgage Rate. Any shortfalls of interest will be allocated, first, to the Class T2-4 Interest to the extent that interest shortfalls are allocated to the Class T1-4 Interest; second, pro rata, to the Class T2-11, Class T2-12 and Class T2-13 Interests; and third, pro rata, to the Class T2-1, Class T2-2 and Class T2-3 Interests. Amounts in the Distribution Account deemed distributed in respect of the REMIC 2 Regular Interests shall be treated as held by REMIC 3 for distribution in accordance with Section 4.08(b). Any portion of Available Funds remaining in REMIC 2 on a Distribution Date shall be distributed to the Class R Certificates in respect of the Class R-2
REMIC 2. 38 REMIC 2 Group 1 Interest Loss Allocation Amount.........................................................38 REMIC 2 Group 2 Interest Loss Allocation Amount.........................................................38 REMIC 2 Group 1 Overcollateralized Amount...............................................................38 REMIC 2 Group 2 Overcollateralized Amount...............................................................39 REMIC 2 Group 1 Principal Loss Allocation Amount........................................................39 REMIC 2 Group 2 Principal Loss Allocation Amount........................................................39 REMIC 2 Overcollateralization Target Amount.............................................................39 REMIC 2 Regular Interest LT2A-IO........................................................................40 REMIC 2 Regular Interest LT2-1AA........................................................................40 REMIC 2 Regular Interest LT2-AI1........................................................................40 REMIC 2 Regular Interest LT2-AI2........................................................................40 REMIC 2 Regular Interest LT2-AI3........................................................................40 REMIC 2 Regular Interest LT2-AI4........................................................................40 REMIC 2 Regular Interest LT2-AI5........................................................................40 REMIC 2 Regular Interest LT2-AI6........................................................................41
REMIC 2. 31 REMIC 2 Interest Loss Allocation Amount.................................................................32
REMIC 2. 29 REMIC 2 Interest Loss Allocation Amount.................................................................29 REMIC 2 Overcollateralization Target Amount.............................................................30
REMIC 2. The following table sets forth the designations, principal balances and interest rates for each interest in REMIC 2, each of which (other than the Class LT2-R Lower Tier Interest) is hereby designated as a regular interest in REMIC 2 (the “REMIC 2 Regular Interests”): LT2-A $61,007,388.83 (1) LT2-F1 16,020,500.00 (2) LT2-V1 16,020,500.00 (3) LT2-F2 15,547,500.00 (2) LT2-V2 15,547,500.00 (3) LT2-F3 15,088,500.00 (2) LT2-V3 15,088,500.00 (3) LT2-F4 14,643,000.00 (2) LT2-V4 14,643,000.00 (3) LT2-F5 14,211,000.00 (2) LT2-V5 14,211,000.00 (3) LT2-F6 13,790,500.00 (2) LT2-V6 13,790,500.00 (3) LT2-F7 13,384,000.00 (2) LT2-V7 13,384,000.00 (3) LT2-F8 12,988,000.00 (2) LT2-V8 12,988,000.00 (3) LT2-F9 12,605,000.00 (2) LT2-V9 12,605,000.00 (3) LT2-F10 12,232,000.00 (2) LT2-V10 12,232,000.00 (3) LT2-F11 11,871,000.00 (2) LT2-V11 11,871,000.00 (3) LT2-F12 11,520,500.00 (2) LT2-V12 11,520,500.00 (3) LT2-F13 13,546,500.00 (2) LT2-V13 13,546,500.00 (3) LT2-F14 14,503,500.00 (2) LT2-V14 14,503,500.00 (3) LT2-F15 14,391,500.00 (2) LT2-V15 14,391,500.00 (3) LT2-F16 14,113,000.00 (2) LT2-V16 14,113,000.00 (3) LT2-F17 13,944,500.00 (2) LT2-V17 13,944,500.00 (3) LT2-F18 13,666,000.00 (2) LT2-V18 13,666,000.00 (3) LT2-F19 13,444,000.00 (2) LT2-V19 13,444,000.00 (3) LT2-V20 13,165,000.00 (3) LT2-F21 12,829,500.00 (2) LT2-V21 12,829,500.00 (3) LT2-F22 12,495,000.00 (2) LT2-V22 12,495,000.00 (3) LT2-F23 43,174,500.00 (2) LT2-V23 43,174,500.00 (3) LT2-F24 23,205,500.00 (2) LT2-V24 23,205,500.00 (3) LT2-F25 20,247,000.00 (2) LT2-V25 20,247,000.00 (3) LT2-F26 15,396,000.00 (2) LT2-V26 15,396,000.00 (3) LT2-F27 12,049,000.00 (2) LT2-V27 12,049,000.00 (3) LT2-F28 9,539,000.00 (2) LT2-V28 9,539,000.00 (3) LT2-F29 7,642,500.00 (2) LT2-V29 7,642,500.00 (3) LT2-F30 6,247,000.00 (2) LT2-V30 6,247,000.00 (3) LT2-F31 5,076,000.00 (2) LT2-V31 5,076,000.00 (3) LT2-F32 4,183,500.00 (2) LT2-V32 4,183,500.00 (3) LT2-F33 3,961,000.00 (2) LT2-V33 3,961,000.00 (3) LT2-F34 3,737,500.00 (2) LT2-V34 3,737,500.00 (3) LT2-F35 3,569,500.00 (2) LT2-V35 3,569,500.00 (3) LT2-F36 3,402,000.00 (2) LT2-V36 3,402,000.00 (3) LT2-F37 3,235,500.00 (2) LT2-V37 3,235,500.00 (3) LT2-F38 3,068,500.00 (2) LT2-V38 3,068,500.00 (3) LT2-F39 2,956,500.00 (2) LT2-V39 2,956,500.00 (3) LT2-F40 2,733,500.00 (2) LT2-V40 2,733,500.00 (3) LT2-F41 2,676,500.00 (2) LT2-V41 2,676,500.00 (3) LT2-V42 2,510,000.00 (3) LT2-F43 2,399,000.00 (2) LT2-V43 2,399,000.00 (3) LT2-F44 2,287,500.00 (2) LT2-V44 2,287,500.00 (3) LT2-F45 2,119,000.00 ...
REMIC 2. 34 REMIC 2 Group 1 Interest Loss Allocation Amount.........................................................34 REMIC 2 Group 2 Interest Loss Allocation Amount.........................................................34 REMIC 2 Overcollateralization Target Amount.............................................................34
REMIC 2. The REMIC 2 Regular Interests will have the initial principal balance, Pass-Through Rates and corresponding Loan Groups as set forth in the following table:
REMIC 2. On each Distribution Date, the timing and amounts of principal distributions and allocations of Realized Losses on each Class of REMIC 2 Regular Interests shall be identical to the timing, amounts and allocations in respect of the corresponding Classes of REMIC 1 Regular Interests pursuant to Section 4.08(d). For these purposes, the Class T2-1 and Class T2-11 Interests correspond to the Class T1-1 Interest, the Class T2-2 and Class T2-12 Interests correspond to the Class T1-2 Interest, the Class T2-3 and Class T2-13 Interests correspond to the Class T1-3 Interest and the Class T2-4 Interest corresponds to the Class T1-4
REMIC 2. 33 REMIC 2 Regular Interests...............................................................................33