EXHIBIT NO. 99.3
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MORTGAGE LOAN PURCHASE AGREEMENT
between
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE, INC.
as Seller
and
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
as Purchaser
Dated as of January 20, 2006
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TABLE OF CONTENTS
1. AGREEMENT TO PURCHASE......................................................3
2. CONVEYANCE OF MORTGAGE LOANS...............................................3
3. EXAMINATION OF MORTGAGE FILES AND DUE DILIGENCE REVIEW....................10
4. REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER....................12
5. REMEDIES UPON BREACH OF REPRESENTATIONS AND WARRANTIES MADE BY SELLER.....15
6. CLOSING...................................................................20
7. CLOSING DOCUMENTS.........................................................21
8. COSTS.....................................................................23
9. NOTICES...................................................................23
10. SEVERABILITY OF PROVISIONS................................................23
11. FURTHER ASSURANCES........................................................24
12. SURVIVAL..................................................................24
13. GOVERNING LAW.............................................................24
14. BENEFITS OF MORTGAGE LOAN PURCHASE AGREEMENT..............................24
15. MISCELLANEOUS.............................................................25
16. ENTIRE AGREEMENT..........................................................25
Exhibit 1 Mortgage Loan Schedule
Exhibit 2 Representations and Warranties
Exhibit 3 Pricing Formulation
Exhibit 4 ▇▇▇▇ of Sale
Exhibit 5 Power of Attorney
Index of Defined Terms
Affected Loan(s)..............................................................17
Agreement......................................................................2
Certificate Purchase Agreement.................................................2
Certificates...................................................................2
Closing Date...................................................................3
Collateral Information........................................................11
Crossed Mortgage Loans........................................................17
Defective Mortgage Loan.......................................................17
Final Judicial Determination..................................................19
Indemnification Agreement.....................................................13
Initial Purchasers.............................................................2
Master Servicer................................................................2
Material Breach...............................................................16
Material Document Defect......................................................15
Memorandum.....................................................................2
MERS...........................................................................5
Mortgage File..................................................................4
Mortgage Loan Schedule.........................................................3
Mortgage Loans.................................................................2
Officer's Certificate..........................................................7
Other Mortgage Loans...........................................................2
Pooling and Servicing Agreement................................................2
Private Certificates...........................................................2
Prospectus Supplement..........................................................2
Public Certificates............................................................2
Purchaser......................................................................2
Repurchased Loan..............................................................17
Seller.........................................................................2
Special Servicer...............................................................2
Trust..........................................................................2
Trustee........................................................................2
Underwriters...................................................................2
Underwriting Agreement.........................................................2
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MORTGAGE LOAN PURCHASE AGREEMENT
(BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE LOANS)
Mortgage Loan Purchase Agreement ("Agreement"), dated as of January 20, 2006,
between Bear ▇▇▇▇▇▇▇ Commercial Mortgage, Inc. ("Seller") and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Capital I Inc. ("Purchaser").
Seller agrees to sell and Purchaser agrees to purchase certain mortgage loans
listed on Exhibit 1 hereto (the "Mortgage Loans") as described herein. Purchaser
will convey the Mortgage Loans to a trust (the "Trust") created pursuant to a
Pooling and Servicing Agreement (the "Pooling and Servicing Agreement"), to be
dated as of January 1, 2006 between Purchaser, as depositor, ▇▇▇▇▇ Fargo Bank,
National Association, as master servicer (the "Master Servicer"), ARCap
Servicing, Inc., as special servicer (the "Special Servicer"), LaSalle Bank
National Association, as trustee (the "Trustee") and ▇▇▇▇▇ Fargo Bank, National
Association, as paying agent and certificate registrar. In exchange for the
Mortgage Loans and certain other mortgage loans to be purchased by Purchaser
(collectively the "Other Mortgage Loans"), the Trust will issue to the Depositor
pass-through certificates to be known as ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc.,
Commercial Mortgage Pass-Through Certificates, Series 2006-TOP21 (the
"Certificates"). The Certificates will be issued pursuant to the Pooling and
Servicing Agreement.
Capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement.
The Class A-1, Class A-2, Class A-3, Class A-AB, Class A-4, Class A-M and Class
A-J Certificates (the "Public Certificates") will be sold by Purchaser to ▇▇▇▇▇▇
▇▇▇▇▇▇▇ & Co. Incorporated and Bear, ▇▇▇▇▇▇▇ & Co. Inc. (the "Underwriters"),
pursuant to an Underwriting Agreement, between Purchaser and the Underwriters,
dated January 20, 2006 (the "Underwriting Agreement"), and the Class X, Class B,
Class C, Class D, Class E, Class F, Class G, Class H, Class J, Class K, Class L,
Class M, Class N, Class O, Class P, Class MM-NA, Class R-I, Class R-II and Class
R-III Certificates (the "Private Certificates") will be sold by Purchaser to
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated and Bear, ▇▇▇▇▇▇▇ & Co. Inc. (the "Initial
Purchasers") pursuant to a Certificate Purchase Agreement, between Purchaser and
the Initial Purchasers, dated January 20, 2006 (the "Certificate Purchase
Agreement"). The Underwriters will offer the Public Certificates for sale
publicly pursuant to a Prospectus dated June 7, 2005, as supplemented by a
Prospectus Supplement dated January 20, 2006 (together, the "Prospectus
Supplement") and the Initial Purchasers will offer the Private Certificates for
sale in transactions exempt from the registration requirements of the Securities
Act of 1933 pursuant to a Private Placement Memorandum dated January 20, 2006
(the "Memorandum").
In consideration of the mutual agreements contained herein, Seller and Purchaser
hereby agree as follows:
1. AGREEMENT TO PURCHASE.
1.1 Seller agrees to sell, and Purchaser agrees to purchase, on a servicing
released basis, the Mortgage Loans identified on the schedule (the "Mortgage
Loan Schedule") annexed hereto as Exhibit 1, as such schedule may be amended to
reflect the actual Mortgage Loans accepted by Purchaser pursuant to the terms
hereof. The Cut-Off Date with respect to the Mortgage Loans is January 1, 2006.
The Mortgage Loans will have an aggregate principal balance as of the close of
business on the Cut-Off Date, after giving effect to any payments due on or
before such date, whether or not received, of $615,177,762. The sale of the
Mortgage Loans shall take place on January 30, 2006 or such other date as shall
be mutually acceptable to the parties hereto (the "Closing Date"). The purchase
price to be paid by Purchaser for the Mortgage Loans shall equal the amount set
forth as such purchase price on Exhibit 3 hereto. The purchase price shall be
paid to Seller by wire transfer in immediately available funds on the Closing
Date.
1.2 On the Closing Date, Purchaser will assign to the Trustee pursuant to the
Pooling and Servicing Agreement all of its right, title and interest in and to
the Mortgage Loans and its rights under this Agreement (to the extent set forth
in Section 14), and the Trustee shall succeed to such right, title and interest
in and to the Mortgage Loans and Purchaser's rights under this Agreement (to the
extent set forth in Section 14).
2. CONVEYANCE OF MORTGAGE LOANS.
2.1 Effective as of the Closing Date, subject only to receipt of the
consideration referred to in Section 1 hereof and the satisfaction of the
conditions specified in Sections 6 and 7 hereof, Seller does hereby transfer,
assign, set over and otherwise convey to Purchaser, without recourse, except as
specifically provided herein all the right, title and interest of Seller, with
the understanding that a Servicing Rights Purchase and Sale Agreement, dated
January 1, 2006, will be executed by Seller and the Master Servicer, in and to
the Mortgage Loans identified on the Mortgage Loan Schedule as of the Closing
Date. The Mortgage Loan Schedule, as it may be amended from time to time on or
prior to the Closing Date, shall conform to the requirements of this Agreement
and the Pooling and Servicing Agreement. In connection with such transfer and
assignment, Seller shall deliver to or on behalf of the Trustee, on behalf of
Purchaser, on or prior to the Closing Date, the Mortgage Note (as described in
clause 2.2.1 hereof) for each Mortgage Loan and on or prior to the fifth
Business Day after the Closing Date, five limited powers of attorney
substantially in the form attached hereto as Exhibit 5 in favor of the Trustee
and the Special Servicer to empower the Trustee and, in the event of the failure
or incapacity of the Trustee, the Special Servicer, to submit for recording, at
the expense of Seller, any mortgage loan documents required to be recorded as
described in the Pooling and Servicing Agreement and any intervening assignments
with evidence of recording thereon that are required to be included in the
Mortgage Files (so long as original counterparts have previously been delivered
to the Trustee). Seller agrees to reasonably cooperate with the Trustee and the
Special Servicer in connection with any additional powers of attorney or
revisions thereto that are requested by such parties for purposes of such
recordation. The parties hereto agree that no such power of attorney shall be
used with respect to any Mortgage Loan by or under authorization by any party
hereto except to the extent that the absence of a document described in the
second preceding sentence with respect to such Mortgage Loan remains unremedied
as of the earlier of (i) the date
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that is 180 days following the delivery of notice of such absence to Seller, but
in no event earlier than 18 months from the Closing Date, and (ii) the date (if
any) on which such Mortgage Loan becomes a Specially Serviced Mortgage Loan. The
Trustee shall submit such documents, at Seller's expense, after the periods set
forth above, provided, however, the Trustee shall not submit such assignments
for recording if Seller produces evidence that it has sent any such assignment
for recording and certifies that Seller is awaiting its return from the
applicable recording office. In addition, not later than the 30th day following
the Closing Date, Seller shall deliver to or on behalf of the Trustee each of
the remaining documents or instruments specified in Section 2.2 hereof (with
such exceptions as are permitted by this Section 2) with respect to each
Mortgage Loan (each, a "Mortgage File"). (Seller acknowledges that the term
"without recourse" does not modify the duties of Seller under Section 5 hereof.)
2.2 All Mortgage Files, or portions thereof, delivered prior to the Closing
Date are to be held by or on behalf of the Trustee in escrow on behalf of Seller
at all times prior to the Closing Date. The Mortgage Files shall be released
from escrow upon closing of the sale of the Mortgage Loans and payments of the
purchase price therefor as contemplated hereby. The Mortgage File for each
Mortgage Loan shall contain the following documents:
2.2.1 The original Mortgage Note bearing all intervening endorsements,
endorsed "Pay to the order of LaSalle Bank National Association, as Trustee for
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Commercial Mortgage Pass-Through Certificates,
Series 2006-TOP21, without recourse, representation or warranty" or if the
original Mortgage Note is not included therein, then a lost note affidavit, with
a copy of the Mortgage Note attached thereto;
2.2.2 The original Mortgage, with evidence of recording thereon, and,
if the Mortgage was executed pursuant to a power of attorney, a certified true
copy of the power of attorney certified by the public recorder's office, with
evidence of recording thereon (if recording is customary in the jurisdiction in
which such power of attorney was executed), or certified by a title insurance
company or escrow company to be a true copy thereof; provided that if such
original Mortgage cannot be delivered with evidence of recording thereon on or
prior to the 45th day following the Closing Date because of a delay caused by
the public recording office where such original Mortgage has been delivered for
recordation or because such original Mortgage has been lost, Seller shall
deliver or cause to be delivered to the Trustee a true and correct copy of such
Mortgage, together with (i) in the case of a delay caused by the public
recording office, an Officer's Certificate (as defined below) of Seller stating
that such original Mortgage has been sent to the appropriate public recording
official for recordation or (ii) in the case of an original Mortgage that has
been lost after recordation, a certification by the appropriate county recording
office where such Mortgage is recorded that such copy is a true and complete
copy of the original recorded Mortgage;
2.2.3 The originals of all agreements modifying a Money Term or other
material modification, consolidation and extension agreements, if any, with
evidence of recording thereon, or if any such original modification,
consolidation or extension agreement has been delivered to the appropriate
recording office for recordation and either has not yet been returned on or
prior to the 45th day following the Closing Date with evidence of recordation
thereon or has been lost after recordation, a true copy of such modification,
consolidation or extension certified by Seller together with (i) in the case of
a delay caused by the public recording office,
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an Officer's Certificate of Seller stating that such original modification,
consolidation or extension agreement has been dispatched or sent to the
appropriate public recording official for recordation or (ii) in the case of an
original modification, consolidation or extension agreement that has been lost
after recordation, a certification by the appropriate county recording office
where such document is recorded that such copy is a true and complete copy of
the original recorded modification, consolidation or extension agreement, and
the originals of all assumption agreements, if any;
2.2.4 An original Assignment of Mortgage for each Mortgage Loan, in
form and substance acceptable for recording, signed by the holder of record in
favor of "LaSalle Bank National Association, as Trustee for ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series
2006-TOP21," provided, if the related Mortgage has been recorded in the name of
Mortgage Electronic Registration Systems, Inc. ("MERS") or its designee, no such
assignments will be required to be submitted for recording or filing and
instead, Seller shall take all actions as are necessary to cause the Trustee to
be shown as the owner of the related Mortgage on the record of MERS for purposes
of the system of recording transfers of beneficial ownership of mortgages
maintained by MERS and shall deliver to the Master Servicer and the Special
Servicer evidence confirming that the Trustee is shown as the owner on the
record of MERS;
2.2.5 Originals of all intervening assignments of Mortgage (except with
respect to any Mortgage that has been recorded in the name of MERS or its
designees), if any, with evidence of recording thereon or, if such original
assignments of Mortgage have been delivered to the appropriate recorder's office
for recordation, certified true copies of such assignments of Mortgage certified
by Seller, or in the case of an original blanket intervening assignment of
Mortgage retained by Seller, a copy thereof certified by Seller or, if any
original intervening assignment of Mortgage has not yet been returned on or
prior to the 45th day following the Closing Date from the applicable recording
office or has been lost, a true and correct copy thereof, together with (i) in
the case of a delay caused by the public recording office, an Officer's
Certificate of Seller stating that such original intervening assignment of
Mortgage has been sent to the appropriate public recording official for
recordation or (ii) in the case of an original intervening Assignment of
Mortgage that has been lost after recordation, a certification by the
appropriate county recording office where such assignment is recorded that such
copy is a true and complete copy of the original recorded intervening Assignment
of Mortgage;
2.2.6 If the related Assignment of Leases is separate from the
Mortgage, the original of such Assignment of Leases with evidence of recording
thereon or, if such Assignment of Leases has not been returned on or prior to
the 45th day following the Closing Date from the applicable public recording
office, a copy of such Assignment of Leases certified by Seller to be a true and
complete copy of the original Assignment of Leases submitted for recording,
together with (i) an original of each assignment of such Assignment of Leases
with evidence of recording thereon and showing a complete recorded chain of
assignment from the named assignee to the holder of record, and if any such
assignment of such Assignment of Leases has not been returned from the
applicable public recording office, a copy of such assignment certified by
Seller to be a true and complete copy of the original assignment submitted for
recording, and (ii) an original assignment of such Assignment of Leases, in
recordable form, signed by the holder of record in favor of "LaSalle Bank
National Association, as Trustee for ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Commercial
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Mortgage Pass-Through Certificates, Series 2006-TOP21," which assignment may be
effected in the related Assignment of Mortgage, provided, if the related
Mortgage has been recorded in the name of MERS or its designee, no assignment of
Assignment of Leases in favor of the Trustee will be required to be recorded or
delivered and instead, Seller shall take all actions as are necessary to cause
the Trustee to be shown as the owner of the related Mortgage on the record of
MERS for purposes of the system of recording transfers of beneficial ownership
of mortgages maintained by MERS and shall deliver to the Master Servicer and the
Special Servicer evidence confirming that the Trustee is shown as the owner on
the record of MERS;
2.2.7 The original of each guaranty, if any, constituting additional
security for the repayment of such Mortgage Loan;
2.2.8 The original Title Insurance Policy, or in the event such
original Title Insurance Policy has not been issued, an original binder or
actual title commitment or a copy thereof certified by the title company with
the original Title Insurance Policy to follow within 180 days of the Closing
Date or a preliminary title report binding on the title company with an original
Title Insurance Policy to follow within 180 days of the Closing Date;
2.2.9 (A) UCC financing statements (together with all assignments
thereof) and (B) UCC-2 or UCC-3 financing statements to the Trustee executed and
delivered in connection with the Mortgage Loan, provided, if the related
Mortgage has been recorded in the name of MERS or its designee, no such
financing statements will be required to be recorded or delivered and instead,
Seller shall take all actions as are necessary to cause the Trustee to be shown
as the owner of the related Mortgage on the record of MERS for purposes of the
system of recording transfers of beneficial ownership of mortgages maintained by
MERS and shall deliver to the Master Servicer and the Special Servicer evidence
confirming that the Trustee is shown as the owner on the record of MERS;
2.2.10 Copies of the related ground lease(s), if any, to any Mortgage
Loan where the Mortgagor is the lessee under such ground lease and there is a
lien in favor of the mortgagee in such lease;
2.2.11 Copies of any loan agreements, lock-box agreements and
intercreditor agreements (including, without limitation, any Intercreditor
Agreement, and a copy (that is, not the original) of the mortgage note
evidencing the related B Note), if any, related to any Mortgage Loan;
2.2.12 Either (A) the original of each letter of credit, if any,
constituting additional collateral for such Mortgage Loan, which shall be
assigned and delivered to the Trustee on behalf of the Trust with a copy to be
held by the Primary Servicer (or the Master Servicer), and applied, drawn,
reduced or released in accordance with documents evidencing or securing the
applicable Mortgage Loan, the Pooling and Servicing Agreement and the Primary
Servicing Agreement or (B) the original of each letter of credit, if any,
constituting additional collateral for such Mortgage Loan, which shall be held
by the Primary Servicer (or the Master Servicer) on behalf of the Trustee, with
a copy to be held by the Trustee, and applied, drawn, reduced or released in
accordance with documents evidencing or securing the applicable Mortgage Loan,
the Pooling and Servicing Agreement and the Primary Servicing Agreement (it
being understood that Seller has agreed (a) that the proceeds of such letter of
credit belong to the Trust, (b) to
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notify, on or before the Closing Date, the bank issuing the letter of credit
that the letter of credit and the proceeds thereof belong to the Trust, and to
use reasonable efforts to obtain within 30 days (but in any event to obtain
within 90 days) following the Closing Date, an acknowledgement thereof by the
bank (with a copy of such acknowledgement to be sent to the Trustee) or a
reissued letter of credit and (c) to indemnify the Trust for any liabilities,
charges, costs, fees or other expenses accruing from the failure of Seller to
assign all rights to the letter of credit hereunder including the right and
power to draw on the letter of credit). In the case of clause (B) above, any
letter of credit held by the Primary Servicer (or Master Servicer) shall be held
in its capacity as agent of the Trust, and if the Primary Servicer (or Master
Servicer) sells its rights to service the applicable Mortgage Loan, the Primary
Servicer (or Master Servicer) has agreed to assign the applicable letter of
credit to the Trust or at the direction of the Special Servicer to such party as
the Special Servicer may instruct, in each case, at the expense of the Primary
Servicer (or Master Servicer). The Primary Servicer (or Master Servicer) has
agreed to indemnify the Trust for any loss caused by the ineffectiveness of such
assignment;
2.2.13 The original environmental indemnity agreement, if any, related
to any Mortgage Loan;
2.2.14 Third-party management agreements for all hotels and for such \
other Mortgaged Properties securing Mortgage Loans with a Cut-Off Date principal
balance equal to or greater than $20,000,000;
2.2.15 Any Environmental Insurance Policy; and
2.2.16 Any affidavit and indemnification agreement.
The original of each letter of credit referred to in clause 2.2.12 above shall
be delivered to the Primary Servicer, the Master Servicer or the Trustee (as the
case may be) within 45 days of the Closing Date. In addition, a copy of any
ground lease shall be delivered to the Primary Servicer within 30 days of the
Closing Date. Any failure to deliver any ground lease shall constitute a
document defect.
"Officer's Certificate" shall mean a certificate signed by one or more of the
Chairman of the Board, any Vice Chairman, the President, any Senior Vice
President, any Vice President, any Assistant Vice President, any Treasurer or
any Assistant Treasurer.
2.3 The Assignments of Mortgage and assignment of Assignment of Leases
referred to in Sections 2.2.4 and 2.2.6 may be in the form of a single
instrument assigning the Mortgage and the Assignment of Leases to the extent
permitted by applicable law. To avoid the unnecessary expense and administrative
inconvenience associated with the execution and recording or filing of multiple
assignments of mortgages, assignments of leases (to the extent separate from the
mortgages) and assignments of UCC financing statements, Seller shall execute, in
accordance with the third succeeding paragraph, the assignments of mortgages,
the assignments of leases (to the extent separate from the mortgages) and the
assignments of UCC financing statements relating to the Mortgage Loans naming
the Trustee on behalf of the Certificateholders as assignee. Notwithstanding the
fact that such assignments of mortgages, assignments of leases (to the extent
separate from the assignments of mortgages) and assignments of UCC financing
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statements shall name the Trustee on behalf of the Certificateholders as the
assignee, the parties hereto acknowledge and agree that the Mortgage Loans shall
for all purposes be deemed to have been transferred from Seller to Purchaser and
from Purchaser to the Trustee on behalf of the Certificateholders.
2.4 If Seller cannot deliver, or cause to be delivered, as to any Mortgage
Loan, any of the documents and/or instruments referred to in Sections 2.2.2,
2.2.3, 2.2.5 or 2.2.6, with evidence of recording thereon, solely because of a
delay caused by the public recording office where such document or instrument
has been delivered for recordation within such 45 day period, but Seller
delivers a photocopy thereof (certified by the appropriate county recorder's
office to be a true and complete copy of the original thereof submitted for
recording), to the Trustee within such 45 day period, Seller shall then deliver
within 90 days after the Closing Date the recorded document (or within such
longer period after the Closing Date as the Trustee may consent to, which
consent shall not be unreasonably withheld so long as Seller is, as certified in
writing to the Trustee no less often than monthly, in good faith attempting to
obtain from the appropriate county recorder's office such original or
photocopy).
2.5 The Trustee, as assignee or transferee of Purchaser, shall be entitled to
all scheduled payments of principal due thereon after the Cut-Off Date, all
other payments of principal collected after the Cut-Off Date (other than
scheduled payments of principal due on or before the Cut-Off Date), and all
payments of interest on the Mortgage Loans allocable to the period commencing on
the Cut-Off Date. All scheduled payments of principal and interest due on or
before the Cut-Off Date and collected after the Cut-Off Date shall belong to
Seller.
2.6 Within 45 days following the Closing Date, Seller shall deliver and
Purchaser, the Trustee or the agents of either may submit or cause to be
submitted for recordation at the expense of Seller, in the appropriate public
office for real property records, each assignment referred to in clauses 2.2.4
and 2.2.6(ii) above. Within 90 days following the Closing Date, Seller shall
deliver and Purchaser, the Trustee or the agents of either may submit or cause
to be submitted for filing, at the expense of Seller, in the appropriate public
office for Uniform Commercial Code financing statements, the assignment referred
to in clause 2.2.1. If any such document or instrument is lost or returned
unrecorded or unfiled, as the case may be, because of a defect therein, Seller
shall prepare a substitute therefor or cure such defect, and Seller shall, at
its own expense (except in the case of a document or instrument that is lost by
the Trustee), record or file, as the case may be, and deliver such document or
instrument in accordance with this Section 2.
2.7 Documents that are in the possession of Seller, its agents or its
subcontractors that relate to the Mortgage Loans and that are not required to be
delivered to the Trustee shall be shipped by Seller to or at the direction of
the Master Servicer, on behalf of Purchaser, on or prior to the 75th day after
the Closing Date, in accordance with Section 3.1 of the Primary Servicing
Agreement, if applicable.
2.8 The documents required to be delivered to the Master Servicer (or in the
alternative, the Primary Servicer) shall include, to the extent required to be
(and actually) delivered to Seller pursuant to the applicable Mortgage Loan
documents, copies of the following items: the Mortgage Note, any Mortgage, the
Assignment of Leases and the Assignment of Mortgage, any
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guaranty/indemnity agreement, any loan agreement, the insurance policies or
certificates, as applicable, the property inspection reports, any financial
statements on the property, any escrow analysis, the tax bills, the Appraisal,
the environmental report, the engineering report, the asset summary, financial
information on the Borrower/sponsor and any guarantors, any letters of credit,
any intercreditor agreement and any Environmental Insurance Policies. Delivery
of any of the foregoing documents to the Primary Servicer shall be deemed a
delivery to the Master Servicer and satisfy Seller's obligations under this
subparagraph.
2.9 Upon the sale of the Mortgage Loans by Seller to Purchaser pursuant to
this Agreement, the ownership of each Mortgage Note, Mortgage and the other
contents of the related Mortgage File shall be vested in Purchaser and its
assigns, and the ownership of all records and documents with respect to the
related Mortgage Loan prepared by or that come into the possession of Seller
shall immediately vest in Purchaser and its assigns, and shall be delivered
promptly by Seller to or on behalf of either the Trustee or the Master Servicer
as set forth herein, subject to the requirements of the Primary Servicing
Agreement. Seller's and Purchaser's records shall reflect the transfer of each
Mortgage Loan from Seller to Purchaser and its assigns as a sale.
2.10 It is the express intent of the parties hereto that the conveyance of the
Mortgage Loans and related property to Purchaser by Seller as provided in this
Section 2 be, and be construed as, an absolute sale of the Mortgage Loans and
related property. It is, further, not the intention of the parties that such
conveyance be deemed a pledge of the Mortgage Loans and related property by
Seller to Purchaser to secure a debt or other obligation of Seller. However, in
the event that, notwithstanding the intent of the parties, the Mortgage Loans or
any related property are held to be the property of Seller, or if for any other
reason this Agreement is held or deemed to create a security interest in the
Mortgage Loans or any related property, then:
2.10.1 this Agreement shall be deemed to be a security agreement; and
2.10.2 the conveyance provided for in this Section 2 shall be deemed to
be a grant by Seller to Purchaser of a security interest in all of Seller's
right, title, and interest, whether now owned or hereafter acquired, in and to:
A. All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates of deposit,
goods, letters of credit, advices of credit and investment property
consisting of, arising from or relating to any of the following property:
the Mortgage Loans identified on the Mortgage Loan Schedule, including the
related Mortgage Notes, Mortgages, security agreements, and title, hazard
and other insurance policies, all distributions with respect thereto
payable after the Cut-Off Date, all substitute or replacement Mortgage
Loans and all distributions with respect thereto, and the Mortgage Files;
B. All accounts, general intangibles, chattel paper,
instruments, documents, money, deposit accounts, certificates of deposit,
goods, letters of credit, advices of credit, investment property and other
rights arising from or by virtue of the disposition of, or collections
with respect to, or insurance proceeds payable with respect to, or claims
against other Persons with respect to, all or any part of the collateral
described in clause
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(A) above (including any accrued discount realized on liquidation of any
investment purchased at a discount); and
C. All cash and non-cash proceeds of the collateral described
in clauses (A) and (B) above.
2.11 The possession by Purchaser or its designee of the Mortgage Notes, the
Mortgages, and such other goods, letters of credit, advices of credit,
instruments, money, documents, chattel paper or certificated securities shall be
deemed to be possession by the secured party or possession by a purchaser for
purposes of perfecting the security interest pursuant to the Uniform Commercial
Code (including, without limitation, Sections 9-313 thereof) as in force in the
relevant jurisdiction. Notwithstanding the foregoing, Seller makes no
representation or warranty as to the perfection of any such security interest.
2.12 Notifications to Persons holding such property, and acknowledgments,
receipts, or confirmations from persons holding such property, shall be deemed
to be notifications to, or acknowledgments, receipts or confirmations from,
securities intermediaries, bailees or agents of, or Persons holding for,
Purchaser or its designee, as applicable, for the purpose of perfecting such
security interest under applicable law.
2.13 Seller shall, to the extent consistent with this Agreement, take such
reasonable actions as may be necessary to ensure that, if this Agreement were
deemed to create a security interest in the property described above, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of the Agreement. In such case, Seller shall file all filings necessary to
maintain the effectiveness of any original filings necessary under the Uniform
Commercial Code as in effect in any jurisdiction to perfect such security
interest in such property. In connection herewith, Purchaser shall have all of
the rights and remedies of a secured party and creditor under the Uniform
Commercial Code as in force in the relevant jurisdiction.
2.14 Notwithstanding anything to the contrary contained herein, and subject to
Section 2.1, Purchaser shall not be required to purchase any Mortgage Loan as to
which any Mortgage Note (endorsed as described in clause 2.2.1) required to be
delivered to or on behalf of the Trustee or the Master Servicer pursuant to this
Section 2 on or before the Closing Date is not so delivered, or is not properly
executed or is defective on its face, and Purchaser's acceptance of the related
Mortgage Loan on the Closing Date shall in no way constitute a waiver of such
omission or defect or of Purchaser's or its successors' and assigns' rights in
respect thereof pursuant to Section 5.
3. EXAMINATION OF MORTGAGE FILES AND DUE DILIGENCE REVIEW.
3.1 Seller shall (i) deliver to Purchaser on or before the Closing Date a
diskette acceptable to Purchaser that contains such information about the
Mortgage Loans as may be reasonably requested by Purchaser, (ii) deliver to
Purchaser investor files (collectively the "Collateral Information") with
respect to the assets proposed to be included in the Mortgage Pool and made
available at Purchaser's headquarters in New York, and (iii) otherwise cooperate
fully with
10
Purchaser in its examination of the credit files, underwriting documentation and
Mortgage Files for the Mortgage Loans and its due diligence review of the
Mortgage Loans. The fact that Purchaser has conducted or has failed to conduct
any partial or complete examination of the credit files, underwriting
documentation or Mortgage Files for the Mortgage Loans shall not affect the
right of Purchaser or the Trustee to cause Seller to cure any Material Document
Defect or Material Breach (each as defined below), or to repurchase or replace
the defective Mortgage Loans pursuant to Section 5 hereof.
3.2 On or prior to the Closing Date, Seller shall allow representatives of any
of Purchaser, each Underwriter, each Initial Purchaser, the Trustee, the Special
Servicer and each Rating Agency to examine and audit all books, records and
files pertaining to the Mortgage Loans, Seller's underwriting procedures and
Seller's ability to perform or observe all of the terms, covenants and
conditions of this Agreement. Such examinations and audits shall take place at
one or more offices of Seller during normal business hours and shall not be
conducted in a manner that is disruptive to Seller's normal business operations
upon reasonable prior advance notice. In the course of such examinations and
audits, Seller will make available to such representatives of any of Purchaser,
each Underwriter, each Initial Purchaser, the Trustee, the Special Servicer and
each Rating Agency reasonably adequate facilities, as well as the assistance of
a sufficient number of knowledgeable and responsible individuals who are
familiar with the Mortgage Loans and the terms of this Agreement, and Seller
shall cooperate fully with any such examination and audit in all material
respects. On or prior to the Closing Date, Seller shall provide Purchaser with
all material information regarding Seller's financial condition and access to
knowledgeable financial or accounting officers for the purpose of answering
questions with respect to Seller's financial condition, financial statements as
provided to Purchaser or other developments affecting Seller's ability to
consummate the transactions contemplated hereby or otherwise affecting Seller in
any material respect. Within 45 days after the Closing Date, Seller shall
provide the Master Servicer or Primary Servicer, if applicable, with any
additional information identified by the Master Servicer or Primary Servicer, if
applicable, as necessary to complete the CMSA Property File, to the extent that
such information is available.
3.3 Purchaser may exercise any of its rights hereunder through one or more
designees or agents, provided Purchaser has provided Seller with prior notice of
the identity of such designee or agent.
3.4 Purchaser shall keep confidential any information regarding Seller and the
Mortgage Loans that has been delivered into Purchaser's possession and that is
not otherwise publicly available; provided, however, that such information shall
not be kept confidential (and the right to require confidentiality under any
confidentiality agreement is hereby waived) to the extent such information is
required to be included in the Memorandum or the Prospectus Supplement or
Purchaser is required by law or court order to disclose such information. If
Purchaser is required to disclose in the Memorandum or the Prospectus Supplement
confidential information regarding Seller as described in the preceding
sentence, Purchaser shall provide to Seller a copy of the proposed form of such
disclosure prior to making such disclosure and Seller shall promptly, and in any
event within two Business Days, notify Purchaser of any inaccuracies therein, in
which case Purchaser shall modify such form in a manner that corrects such
inaccuracies. If Purchaser is required by law or court order to disclose
confidential information regarding Seller as described in the second preceding
sentence, Purchaser shall notify Seller and cooperate in
11
Seller's efforts to obtain a protective order or other reasonable assurance that
confidential treatment will be accorded such information and, if in the absence
of a protective order or such assurance, Purchaser is compelled as a matter of
law to disclose such information, Purchaser shall, prior to making such
disclosure, advise and consult with Seller and its counsel as to such disclosure
and the nature and wording of such disclosure and Purchaser shall use reasonable
efforts to obtain confidential treatment therefor. Notwithstanding the
foregoing, if reasonably advised by counsel that Purchaser is required by a
regulatory agency or court order to make such disclosure immediately, then
Purchaser shall be permitted to make such disclosure without prior review by
Seller.
4. REPRESENTATIONS AND WARRANTIES OF SELLER AND PURCHASER.
4.1 To induce Purchaser to enter into this Agreement, Seller hereby makes for
the benefit of Purchaser and its assigns with respect to each Mortgage Loan as
of the date hereof (or as of such other date specifically set forth in the
particular representation and warranty) each of the representations and
warranties set forth on Exhibit 2 hereto, except as otherwise set forth on
Schedule A attached hereto, and hereby further represents and warrants to
Purchaser as of the date hereof that:
4.1.1 Seller is duly organized and is validly existing as a corporation
in good standing under the laws of the State of New York. Seller has the
requisite power and authority and legal right to own the Mortgage Loans and to
transfer and convey the Mortgage Loans to Purchaser and has the requisite power
and authority to execute and deliver, engage in the transactions contemplated
by, and perform and observe the terms and conditions of, this Agreement.
4.1.2 This Agreement has been duly and validly authorized, executed and
delivered by Seller, and assuming the due authorization, execution and delivery
hereof by Purchaser, this Agreement constitutes the valid, legal and binding
agreement of Seller, enforceable in accordance with its terms, except as such
enforcement may be limited by (A) laws relating to bankruptcy, insolvency,
reorganization, receivership or moratorium, (B) other laws relating to or
affecting the rights of creditors generally, (C) general equity principles
(regardless of whether such enforcement is considered in a proceeding in equity
or at law) or (D) public policy considerations underlying the securities laws,
to the extent that such public policy considerations limit the enforceability of
the provisions of this Agreement that purport to provide indemnification from
liabilities under applicable securities laws.
4.1.3 No consent, approval, authorization or order of, registration or
filing with, or notice to, any governmental authority or court is required,
under federal or state law, for the execution, delivery and performance of or
compliance by Seller with this Agreement, or the consummation by Seller of any
transaction contemplated hereby, other than (A) such qualifications as may be
required under state securities or blue sky laws, (B) the filing or recording of
financing statements, instruments of assignment and other similar documents
necessary in connection with Seller's sale of the Mortgage Loans to Purchaser,
(C) such consents, approvals, authorizations, qualifications, registrations,
filings or notices as have been obtained and (D) where the lack of such consent,
approval, authorization, qualification,
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registration, filing or notice would not have a material adverse effect on the
performance by Seller under this Agreement.
4.1.4 Neither the transfer of the Mortgage Loans to Purchaser, nor the
execution, delivery or performance of this Agreement by Seller, conflicts or
will conflict with, results or will result in a breach of, or constitutes or
will constitute a default under (A) any term or provision of Seller's articles
of organization or by-laws, (B) any term or provision of any material agreement,
contract, instrument or indenture to which Seller is a party or by which it or
any of its assets is bound or results in the creation or imposition of any lien,
charge or encumbrance upon any of its property pursuant to the terms of any such
indenture, mortgage, contract or other instrument, other than pursuant to this
Agreement, or (C) after giving effect to the consents or taking of the actions
contemplated in subsection 4.1.3, any law, rule, regulation, order, judgment,
writ, injunction or decree of any court or governmental authority having
jurisdiction over Seller or its assets, except where in any of the instances
contemplated by clauses (B) or (C) above, any conflict, breach or default, or
creation or imposition of any lien, charge or encumbrance, will not have a
material adverse effect on the consummation of the transactions contemplated
hereby by Seller or its ability to perform its obligations and duties hereunder
or result in any material adverse change in the business, operations, financial
condition, properties or assets of Seller, or in any material impairment of the
right or ability of Seller to carry on its business substantially as now
conducted.
4.1.5 There are no actions or proceedings against, or investigations
of, Seller pending or, to Seller's knowledge, threatened in writing against
Seller before any court, administrative agency or other tribunal, the outcome of
which could reasonably be expected to materially and adversely affect the
transfer of the Mortgage Loans to Purchaser or the execution or delivery by, or
enforceability against, Seller of this Agreement or have an effect on the
financial condition of Seller that would materially and adversely affect the
ability of Seller to perform its obligations under this Agreement.
4.1.6 On the Closing Date, the sale of the Mortgage Loans pursuant to
this Agreement will effect a transfer by Seller of all of its right, title and
interest in and to the Mortgage Loans to Purchaser.
4.1.7 To Seller's knowledge, Seller's Information (as defined in that
certain indemnification agreement, dated January 20, 2006, between Seller,
Purchaser, the Underwriters and the Initial Purchasers (the "Indemnification
Agreement")) does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. Notwithstanding
anything contained herein to the contrary, this subparagraph 4.1.7 shall run
exclusively to the benefit of Purchaser and no other party.
4.1.8 The Seller has complied with the disclosure requirements of
Regulation AB that arise from its role as "seller" and "sponsor" in connection
with the issuance of the Public Certificates.
4.1.9 For so long as the Trust is subject to the reporting requirements
of the Exchange Act, the Seller shall provide the Purchaser (or with respect to
any Serviced Companion Mortgage
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Loan that is deposited into an Other Securitization, the depositor in such Other
Securitization) and the Paying Agent with any Additional Form 10-D Disclosure
and any Additional Form 10-K Disclosure set forth next to the Purchaser's name
on Schedule XV and Schedule XVI of the Pooling and Servicing Agreement within
the time periods set forth in the Pooling and Servicing Agreement.
To induce Purchaser to enter into this Agreement, Seller hereby covenants that
the foregoing representations and warranties and those set forth on Exhibit 2
hereto, subject to the exceptions set forth in Schedule A to Exhibit 2, will be
true and correct in all material respects on and as of the Closing Date with the
same effect as if made on the Closing Date.
Each of the representations, warranties and covenants made by Seller pursuant to
this Section 4.1 shall survive the sale of the Mortgage Loans and shall continue
in full force and effect notwithstanding any restrictive or qualified
endorsement on the Mortgage Notes.
4.2 To induce Seller to enter into this Agreement, Purchaser hereby represents
and warrants to Seller as of the date hereof:
4.2.1 Purchaser is a corporation duly organized, validly existing, and
in good standing under the laws of the State of Delaware with full power and
authority to carry on its business as presently conducted by it.
4.2.2 Purchaser has full power and authority to acquire the Mortgage
Loans, to execute and deliver this Agreement and to enter into and consummate
all transactions contemplated by this Agreement. Purchaser has duly and validly
authorized the execution, delivery and performance of this Agreement and has
duly and validly executed and delivered this Agreement. This Agreement, assuming
due authorization, execution and delivery by Seller, constitutes the valid and
binding obligation of Purchaser, enforceable against it in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting the enforcement of
creditors' rights generally and by general principles of equity, regardless of
whether such enforcement is considered in a proceeding in equity or at law.
4.2.3 No consent, approval, authorization or order of, registration or
filing with, or notice to, any governmental authority or court is required,
under federal or state law, for the execution, delivery and performance of or
compliance by Purchaser with this Agreement, or the consummation by Purchaser of
any transaction contemplated hereby that has not been obtained or made by
Purchaser.
4.2.4 Neither the purchase of the Mortgage Loans nor the execution,
delivery and performance of this Agreement by Purchaser will violate Purchaser's
certificate of incorporation or by-laws or constitute a default (or an event
that, with notice or lapse of time or both, would constitute a default) under,
or result in a breach of, any material agreement, contract, instrument or
indenture to which Purchaser is a party or that may be applicable to Purchaser
or its assets.
4.2.5 Purchaser's execution and delivery of this Agreement and its
performance and compliance with the terms of this Agreement will not constitute
a violation of any law, rule, writ,
14
injunction, order or decree of any court, or order or regulation of any federal,
state or municipal government agency having jurisdiction over Purchaser or its
assets, which violation could materially and adversely affect the condition
(financial or otherwise) or the operation of Purchaser or its assets or could
materially and adversely affect its ability to perform its obligations and
duties hereunder.
4.2.6 There are no actions or proceedings against, or investigations
of, Purchaser pending or, to Purchaser's knowledge, threatened against Purchaser
before any court, administrative agency or other tribunal, the outcome of which
could reasonably be expected to adversely affect the transfer of the Mortgage
Loans, the issuance of the Certificates, the execution, delivery or
enforceability of this Agreement or have an effect on the financial condition of
Purchaser that would materially and adversely affect the ability of Purchaser to
perform its obligation under this Agreement.
4.2.7 Purchaser has not dealt with any broker, investment banker,
agent or other person, other than Seller, the Underwriters, the Initial
Purchasers and their respective affiliates, that may be entitled to any
commission or compensation in connection with the sale of the Mortgage Loans or
consummation of any of the transactions contemplated hereby.
To induce Seller to enter into this Agreement, Purchaser hereby covenants that
the foregoing representations and warranties will be true and correct in all
material respects on and as of the Closing Date with the same effect as if made
on the Closing Date.
Each of the representations and warranties made by Purchaser pursuant to this
Section 4.2 shall survive the purchase of the Mortgage Loans.
5. REMEDIES UPON BREACH OF REPRESENTATIONS AND WARRANTIES MADE BY SELLER.
5.1 It is hereby acknowledged that Seller shall make for the benefit of the
Trustee on behalf of the holders of the Certificates, whether directly or by way
of Purchaser's assignment of its rights hereunder to the Trustee, the
representations and warranties set forth on Exhibit 2 hereto (each as of the
date hereof unless otherwise specified).
5.2 It is hereby further acknowledged that if any document required to be
delivered to the Trustee pursuant to Section 2 is not delivered as and when
required, not properly executed or is defective on its face, or if there is a
breach of any of the representations and warranties required to be made by
Seller regarding the characteristics of the Mortgage Loans and/or the related
Mortgaged Properties as set forth in Exhibit 2 hereto, and in either case the
party discovering such breach or defect determines that either (i) the defect or
breach materially and adversely affects the interests of the holders of the
Certificates in the related Mortgage Loan or (ii) both (A) the defect or breach
materially and adversely affects the value of the Mortgage Loan and (B) the
Mortgage Loan is a Specially Serviced Mortgage Loan or Rehabilitated Mortgage
Loan (any such defect described in the preceding clause (i) or (ii), a "Material
Document Defect" and any such breach described in the preceding clause (i) or
(ii), a "Material Breach"), the party determining that such Material Document
Defect or Material Breach exists shall promptly notify,
15
in writing, the other parties; provided that any breach of the representation
and warranty contained in paragraph (41) of such Exhibit 2 shall constitute a
Material Breach only if such prepayment premium or yield maintenance charge is
not deemed "customary" for commercial mortgage loans as evidenced by (i) an
opinion of tax counsel to such effect or (ii) a determination by the Internal
Revenue Service that such provision is not customary. Promptly (but in any event
within three Business Days) upon determining (or becoming aware of another
party's determination) that any such Material Document Defect or Material Breach
exists (which determination shall, absent evidence to the contrary, be presumed
to be no earlier than three Business Days prior to delivery of the notice to
Seller referred to below), the Master Servicer shall, and the Special Servicer
may, request that Seller, not later than 90 days from Seller's receipt of the
notice of such Material Document Defect or Material Breach, cure such Material
Document Defect or Material Breach, as the case may be, in all material
respects; provided, however, that if such Material Document Defect or Material
Breach, as the case may be, cannot be corrected or cured in all material
respects within such 90 day period, and such Material Document Defect or
Material Breach would not cause the Mortgage Loan to be other than a "qualified
mortgage"(as defined in the Code) but Seller is diligently attempting to effect
such correction or cure, as certified by Seller in an Officer's Certificate
delivered to the Trustee, then the cure period will be extended for an
additional 90 days unless, solely in the case of a Material Document Defect, (x)
the Mortgage Loan is then a Specially Serviced Mortgage Loan and a Servicing
Transfer Event has occurred as a result of a monetary default or as described in
clause (ii) or clause (v) of the definition of "Servicing Transfer Event" in the
Pooling and Servicing Agreement and (y) the Material Document Defect was
identified in a certification delivered to Seller by the Trustee pursuant to
Section 2.2 of the Pooling and Servicing Agreement not less than 90 days prior
to the delivery of the notice of such Material Document Defect. The parties
acknowledge that neither delivery of a certification or schedule of exceptions
to Seller pursuant to Section 2.2 of the Pooling and Servicing Agreement or
otherwise nor possession of such certification or schedule by Seller shall, in
and of itself, constitute delivery of notice of any Material Document Defect or
knowledge or awareness by Seller, the Master Servicer or the Special Servicer of
any Material Document Defect listed therein.
5.3 Seller hereby covenants and agrees that, if any such Material Document
Defect or Material Breach cannot be corrected or cured or Seller otherwise fails
to correct or cure within the above cure periods, Seller shall, on or before the
termination of such cure periods, either (i) repurchase the affected Mortgage
Loan or REO Mortgage Loan (or interest therein) from Purchaser or its assignee
at the Purchase Price as defined in the Pooling and Servicing Agreement, or (ii)
if within the three-month period commencing on the Closing Date (or within the
two-year period commencing on the Closing Date if the related Mortgage Loan is a
"defective obligation" within the meaning of Section 860G(a)(4)(B)(ii) of the
Code and Treasury Regulation Section 1.860G-2(f)), at its option replace,
without recourse, any Mortgage Loan or REO Mortgage Loan to which such defect
relates with a Qualifying Substitute Mortgage Loan. If such Material Document
Defect or Material Breach would cause the Mortgage Loan to be other than a
"qualified mortgage" (as defined in the Code), then notwithstanding the previous
sentence or the previous paragraph, repurchase must occur within 85 days from
the date Seller was notified of the defect. Seller agrees that any substitution
shall be completed in accordance with the terms and conditions of the Pooling
and Servicing Agreement.
16
5.4 If (x) a Mortgage Loan is to be repurchased or replaced as contemplated
above (a "Defective Mortgage Loan"), (y) such Defective Mortgage Loan is
cross-collateralized and cross-defaulted with one or more other Mortgage Loans
("Crossed Mortgage Loans") and (z) the applicable document defect or breach does
not constitute a Material Document Defect or Material Breach, as the case may
be, as to such Crossed Mortgage Loans (without regard to this paragraph), then
the applicable document defect or breach (as the case may be) shall be deemed to
constitute a Material Document Defect or Material Breach, as the case may be, as
to each such Crossed Mortgage Loan for purposes of the above provisions, and
Seller shall be obligated to repurchase or replace each such Crossed Mortgage
Loan in accordance with the provisions above, unless, in the case of such breach
or document defect, (A) Seller provides a Nondisqualification Opinion to the
Trustee at the expense of Seller if, in the reasonable business judgment of the
Trustee, it would be usual and customary in accordance with industry practice to
obtain a Nondisqualification Opinion and (B) both of the following conditions
would be satisfied if Seller were to repurchase or replace only those Mortgage
Loans as to which a Material Breach or Material Document Defect had occurred
without regard to this paragraph (the "Affected Loan(s)"): (i) the debt service
coverage ratio for all such other Mortgage Loans (excluding the Affected
Loan(s)) for the four calendar quarters immediately preceding the repurchase or
replacement is not less than the lesser of (A) 0.10x below the debt service
coverage ratio for all such other Mortgage Loans (including the Affected
Loans(s)) set forth in Appendix II to the Final Prospectus Supplement and (B)
the debt service coverage ratio for all such Crossed Mortgage Loans (including
the Affected Loan(s)) for the four preceding calendar quarters preceding the
repurchase or replacement, and (ii) the loan-to-value ratio for all such Crossed
Mortgage Loans (excluding the Affected Loan(s)) is not greater than the greater
of (A) the loan-to-value ratio, expressed as a whole number (taken to one
decimal place), for all such Crossed Mortgage Loans (including the Affected
Loan(s)) set forth in Appendix II to the Final Prospectus Supplement plus 10%
and (B) the loan-to-value ratio for all such Crossed Mortgage Loans (including
the Affected Loans(s)), at the time of repurchase or replacement. The
determination of the Master Servicer as to whether the conditions set forth
above have been satisfied shall be conclusive and binding in the absence of
manifest error. The Master Servicer will be entitled to cause to be delivered,
or direct Seller to (in which case Seller shall) cause to be delivered to the
Master Servicer, an Appraisal of any or all of the related Mortgaged Properties
for purposes of determining whether the condition set forth in clause (ii) above
has been satisfied, in each case at the expense of Seller if the scope and cost
of the Appraisal is approved by Seller (such approval not to be unreasonably
withheld).
5.5 With respect to any Defective Mortgage Loan, to the extent that Seller is
required to repurchase or substitute for such Defective Mortgage Loan (each, a
"Repurchased Loan") in the manner prescribed above while the Trustee (as
assignee of Purchaser) continues to hold any Crossed Mortgage Loan, Seller and
Purchaser hereby agree to forebear from enforcing any remedies against the
other's Primary Collateral but may exercise remedies against the Primary
Collateral securing their respective Mortgage Loans, including with respect to
the Trustee, the Primary Collateral securing the Mortgage Loans still held by
the Trustee, so long as such exercise does not impair the ability of the other
party to exercise its remedies against its Primary Collateral. If the exercise
of remedies by one party would impair the ability of the other party to exercise
its remedies with respect to the Primary Collateral securing the Mortgage Loan
or Mortgage Loans held by such party, then both parties shall forbear from
exercising such
17
remedies until the loan documents evidencing and securing the relevant Mortgage
Loans can be modified in a manner that complies with the Pooling and Servicing
Agreement to remove the threat of impairment as a result of the exercise of
remedies. Any reserve or other cash collateral or letters of credit securing the
Crossed Mortgage Loans shall be allocated between such Mortgage Loans in
accordance with the Mortgage Loan documents, or otherwise on a pro rata basis
based upon their outstanding Principal Balances. All other terms of the Mortgage
Loans shall remain in full force and effect, without any modification thereof.
The Mortgagors set forth on Schedule B hereto are intended third-party
beneficiaries of the provisions set forth in this paragraph and the preceding
paragraph. The provisions of this paragraph and the preceding paragraph may not
be modified with respect to any Mortgage Loan without the related Mortgagor's
consent.
5.6 Any of the following document defects shall be conclusively presumed
materially and adversely to affect the interests of Certificateholders in a
Mortgage Loan and be a Material Document Defect: (a) the absence from the
Mortgage File of the original signed Mortgage Note, unless the Mortgage File
contains a signed lost note affidavit and indemnity that appears to be regular
on its face; (b) the absence from the Mortgage File of the original signed
Mortgage that appears to be regular on its face, unless there is included in the
Mortgage File a certified copy of the Mortgage by the local authority with which
the Mortgage was recorded; or (c) the absence from the Mortgage File of the item
specified in paragraph 2.2.8. If any of the foregoing Material Document Defects
is discovered by the Custodian (or the Trustee if there is no Custodian), the
Trustee (or as set forth in Section 2.3(a) of the Pooling and Servicing
Agreement, the Master Servicer) will take the steps described elsewhere in this
Section, including the giving of notices to the Rating Agencies and the parties
hereto and making demand upon Seller for the cure of the Material Document
Defect or repurchase or replacement of the related Mortgage Loan.
5.7 If Seller disputes that a Material Document Defect or Material Breach
exists with respect to a Mortgage Loan or otherwise refuses (i) to effect a
correction or cure of such Material Document Defect or Material Breach, (ii) to
repurchase the affected Mortgage Loan from Purchaser or its assignee or (iii) to
replace such Mortgage Loan with a Qualifying Substitute Mortgage Loan, each in
accordance with this Agreement, then provided that (i) the period of time
provided for Seller to correct, repurchase or cure has expired and (ii) the
Mortgage Loan is then in default and is then a Specially Serviced Mortgage Loan,
the Special Servicer may, subject to the Servicing Standard, modify, work-out or
foreclose, sell or otherwise liquidate (or permit the liquidation of) the
Mortgage Loan pursuant to Sections 9.5, 9.12, 9.15 and 9.36, as applicable, of
the Pooling and Servicing Agreement, while pursuing the repurchase claim. Seller
acknowledges and agrees that any modification of the Mortgage Loan pursuant to a
work-out shall not constitute a defense to any repurchase claim nor shall such
modification and work-out change the Purchase Price due from Seller for any
repurchase claim. In the event of any such modification and work-out, Seller
shall be obligated to repurchase the Mortgage Loan as modified and the Purchase
Price shall include any Work-Out Fee paid to the Special Servicer up to the date
of repurchase plus the present value (calculated at a discount rate equal to the
applicable Mortgage Rate) of the Work-Out Fee that would have been payable to
the Special Servicer in respect of such Mortgage Loan if the Mortgage Loan
performed in accordance with its terms to its Maturity Date, provided that no
amount shall be paid by Seller in respect of any Work-Out Fee if a Liquidation
Fee already comprises a portion of the Purchase Price.
18
5.8 Seller shall have the right to purchase certain of the Mortgage Loans or
REO Properties, as applicable, in accordance with Section 9.36 of the Pooling
and Servicing Agreement.
5.9 The fact that a Material Document Defect or Material Breach is not
discovered until after foreclosure (but in all instances prior to the sale of
the related REO Property or Mortgage Loan) shall not prejudice any claim against
Seller for repurchase of the REO Mortgage Loan or REO Property. In such an
event, the Master Servicer shall notify Seller of the discovery of the Material
Document Defect or Material Breach and Seller shall have 90 days to correct or
cure such Material Document Defect or Material Breach or purchase the REO
Property (or interest therein) at the Purchase Price. After a final liquidation
of the Mortgage Loan or REO Mortgage Loan, if a court of competent jurisdiction
issues a final order after the expiration of any applicable appeal period that
Seller is or was obligated to repurchase the related Mortgage Loan or REO
Mortgage Loan (or interest therein) (a "Final Judicial Determination") or Seller
otherwise accepts liability, then, but in no event later than the Termination of
the Trust pursuant to Section 9.30 of the Pooling and Servicing Agreement,
Seller will be obligated to pay to the Trust the difference between any
Liquidation Proceeds received upon such liquidation in accordance with the
Pooling and Servicing Agreement (including those arising from any sale to
Seller) and the Purchase Price.
5.10 Notwithstanding anything to the contrary contained herein, in connection
with any sale or other liquidation of a Mortgage Loan or REO Property as
described in this Section 5, the Special Servicer shall not receive a
Liquidation Fee from Seller (but may collect such Liquidation Fee from the
related Liquidation Proceeds as otherwise provided herein); provided, however,
that in the event Seller is obligated to repurchase the Mortgage Loan or REO
Mortgaged Property (or interest therein) after a final liquidation of such
Mortgage Loan or REO Property pursuant to the immediately preceding paragraph,
an amount equal to any Liquidation Fee (calculated on the basis of Liquidation
Proceeds) payable to the Special Servicer shall be included in the definition of
"Purchase Price" in respect of such Mortgage Loan or REO Mortgaged Property.
Except as expressly set forth above, no Liquidation Fee shall be payable in
connection with a repurchase of a Mortgage Loan by Seller.
5.11 The obligations of Seller set forth in this Section 5 to cure a Material
Document Defect or a Material Breach or repurchase or replace a defective
Mortgage Loan constitute the sole remedies of Purchaser or its assignees with
respect to a Material Document Defect or Material Breach in respect of an
outstanding Mortgage Loan; provided, that this limitation shall not in any way
limit Purchaser's rights or remedies upon breach of any other representation or
warranty or covenant by Seller set forth in this Agreement (other than those set
forth in Exhibit 2).
5.12 Notwithstanding the foregoing, in the event that there is a breach of the
representations and warranties set forth in paragraph 39 in Exhibit 2 hereto,
and as a result the payments, by a Mortgagor, of reasonable costs and expenses
associated with the defeasance or assumption of a Mortgage Loan are insufficient
causing the Trust to incur an Additional Trust Expense in an amount equal to
such reasonable costs and expenses not paid by such Mortgagor, Seller hereby
covenants and agrees to reimburse the Trust within 90 days of the receipt of
notice of such breach in an amount sufficient to avoid such Additional Trust
Expense. The parties hereto acknowledge that such reimbursement shall be
Seller's sole obligation with respect to the breach discussed in the previous
sentence.
19
5.13 The Pooling and Servicing Agreement shall provide that the Trustee (or the
Master Servicer or the Special Servicer on its behalf) shall give written notice
promptly (but in any event within three Business Days) to Seller of its
determination that any Material Document Defect or Material Breach exists (which
determination shall, absent evidence to the contrary, be presumed to be no
earlier than three Business Days prior to delivery of the notice) and prompt
written notice to Seller in the event that any Mortgage Loan becomes a Specially
Serviced Mortgage Loan (as defined in the Pooling and Servicing Agreement).
5.14 If Seller repurchases any Mortgage Loan pursuant to this Section 5,
Purchaser or its assignee, following receipt by the Trustee of the Purchase
Price therefor, promptly shall deliver or cause to be delivered to Seller all
Mortgage Loan documents with respect to such Mortgage Loan, and each document
that constitutes a part of the Mortgage File that was endorsed or assigned to
the Trustee shall be endorsed and assigned to Seller in the same manner such
that Seller shall be vested with legal and beneficial title to such Mortgage
Loan, in each case without recourse, including any property acquired in respect
of such Mortgage Loan or proceeds of any insurance policies with respect
thereto.
6. CLOSING.
6.1 The closing of the sale of the Mortgage Loans shall be held at the offices
of ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ at 9:00 a.m.,
New York time, on the Closing Date. The closing shall be subject to each of the
following conditions:
6.1.1 All of the representations and warranties of Seller and Purchaser
specified in Section 4 hereof (including, without limitation, the
representations and warranties set forth on Exhibit 2 hereto) shall be true and
correct as of the Closing Date (to the extent of the standard, if any, set forth
in each representation and warranty).
6.1.2 All Closing Documents specified in Section 7 hereof, in such
forms as are agreed upon and reasonably acceptable to Seller or Purchaser, as
applicable, shall be duly executed and delivered by all signatories as required
pursuant to the respective terms thereof.
6.1.3 Seller shall have delivered and released to Purchaser or its
designee all documents required to be delivered to Purchaser as of the Closing
Date pursuant to Section 2 hereof.
6.1.4 The result of the examination and audit performed by Purchaser
and its affiliates pursuant to Section 3 hereof shall be satisfactory to
Purchaser and its affiliates in their sole determination and the parties shall
have agreed to the form and contents of Seller's Information to be disclosed in
the Memorandum and the Prospectus Supplement.
6.1.5 All other terms and conditions of this Agreement required to be
complied with on or before the Closing Date shall have been complied with, and
Seller and Purchaser shall have the ability to comply with all terms and
conditions and perform all duties and obligations required to be complied with
or performed after the Closing Date.
6.1.6 Seller shall have paid all fees and expenses payable by it to
Purchaser pursuant to Section 8 hereof.
20
6.1.7 The Certificates to be so rated shall have been assigned ratings
by each Rating Agency no lower than the ratings specified for each such Class in
the Memorandum and the Prospectus Supplement.
6.1.8 No Underwriter shall have terminated the Underwriting Agreement
and none of the Initial Purchasers shall have terminated the Certificate
Purchase Agreement, and neither the Underwriters nor the Initial Purchasers
shall have suspended, delayed or otherwise cancelled the Closing Date.
6.1.9 Seller shall have received the purchase price for the Mortgage
Loans pursuant to Section 1 hereof.
6.2 Each party agrees to use its best efforts to perform its respective
obligations hereunder in a manner that will enable Purchaser to purchase the
Mortgage Loans on the Closing Date.
7. CLOSING DOCUMENTS. The Closing Documents shall consist of the following:
7.1 This Agreement duly executed by Purchaser and Seller.
7.2 A certificate of Seller, executed by a duly authorized officer of Seller
and dated the Closing Date, and upon which Purchaser and its successors and
assigns may rely, to the effect that: (i) the representations and warranties of
Seller in this Agreement are true and correct in all material respects on and as
of the Closing Date with the same force and effect as if made on the Closing
Date, provided that any representations and warranties made as of a specified
date shall be true and correct as of such specified date; and (ii) Seller has
complied with all agreements and satisfied all conditions on its part to be
performed or satisfied on or prior to the Closing Date.
7.3 True, complete and correct copies of Seller's articles of organization and
by-laws.
7.4 A certificate of existence for Seller from the Secretary of State of New
York dated not earlier than 30 days prior to the Closing Date.
7.5 A certificate of the Secretary or Assistant Secretary of Seller, dated the
Closing Date, and upon which Purchaser may rely, to the effect that each
individual who, as an officer or representative of Seller, signed this Agreement
or any other document or certificate delivered on or before the Closing Date in
connection with the transactions contemplated herein, was at the respective
times of such signing and delivery, and is as of the Closing Date, duly elected
or appointed, qualified and acting as such officer or representative, and the
signatures of such persons appearing on such documents and certificates are
their genuine signatures.
7.6 An opinion of counsel (which, other than as to the opinion described in
paragraph 7.6.6 below, may be in-house counsel) to Seller, dated the Closing
Date, substantially to the effect of the following (with such changes and
modifications as Purchaser may approve and subject to such counsel's reasonable
qualifications):
7.6.1 Seller is validly existing under New York law and has full
corporate power and authority to enter into and perform its obligations under
this Agreement.
21
7.6.2 This Agreement has been duly authorized, executed and delivered
by Seller.
7.6.3 No consent, approval, authorization or order of any federal court
or governmental agency or body is required for the consummation by Seller of the
transactions contemplated by the terms of this Agreement except any approvals as
have been obtained.
7.6.4 Neither the execution, delivery or performance of this Agreement
by Seller, nor the consummation by Seller of any of the transactions
contemplated by the terms of this Agreement (A) conflicts with or results in a
breach or violation of, or constitutes a default under, the organizational
documents of Seller, (B) to the knowledge of such counsel, constitutes a default
under any term or provision of any material agreement, contract, instrument or
indenture, to which Seller is a party or by which it or any of its assets is
bound or results in the creation or imposition of any lien, charge or
encumbrance upon any of its property pursuant to the terms of any such
indenture, mortgage, contract or other instrument, other than pursuant to this
Agreement, or (C) conflicts with or results in a breach or violation of any law,
rule, regulation, order, judgment, writ, injunction or decree of any court or
governmental authority having jurisdiction over Seller or its assets, except
where in any of the instances contemplated by clauses (B) or (C) above, any
conflict, breach or default, or creation or imposition of any lien, charge or
encumbrance, will not have a material adverse effect on the consummation of the
transactions contemplated hereby by Seller or materially and adversely affect
its ability to perform its obligations and duties hereunder or result in any
material adverse change in the business, operations, financial condition,
properties or assets of Seller, or in any material impairment of the right or
ability of Seller to carry on its business substantially as now conducted.
7.6.5 To his or her knowledge, there are no legal or governmental
actions, investigations or proceedings pending to which Seller is a party, or
threatened against Seller, (a) asserting the invalidity of this Agreement or (b)
which materially and adversely affect the performance by Seller of its
obligations under, or the validity or enforceability of, this Agreement.
7.6.6 This Agreement is a valid, legal and binding agreement of Seller,
enforceable against Seller in accordance with its terms, except as such
enforcement may be limited by (1) laws relating to bankruptcy, insolvency,
reorganization, receivership or moratorium, (2) other laws relating to or
affecting the rights of creditors generally, (3) general equity principles
(regardless of whether such enforcement is considered in a proceeding in equity
or at law) or (4) public policy considerations underlying the securities laws,
to the extent that such public policy considerations limit the enforceability of
the provisions of this Agreement that purport to provide indemnification from
liabilities under applicable securities laws.
Such opinion may express its reliance as to factual matters on, among other
things specified in such opinion, the representations and warranties made by,
and on certificates or other documents furnished by officers of, the parties to
this Agreement.
In rendering the opinions expressed above, such counsel may limit such opinions
to matters governed by the federal laws of the United States and the corporate
laws of the State of Delaware and the State of New York, as applicable.
22
7.7 Such other opinions of counsel as any Rating Agency may request in
connection with the sale of the Mortgage Loans by Seller to Purchaser or
Seller's execution and delivery of, or performance under, this Agreement.
7.8 A letter from Deloitte & Touche, certified public accountants, dated the
date hereof, to the effect that they have performed certain specified procedures
as a result of which they determined that certain information of an accounting,
financial or statistical nature set forth in the Memorandum and the Prospectus
Supplement agrees with the records of Seller.
7.9 Such further certificates, opinions and documents as Purchaser may
reasonably request.
7.10 An officer's certificate of Purchaser, dated as of the Closing Date, with
the resolutions of Purchaser authorizing the transactions described herein
attached thereto, together with certified copies of the charter, by-laws and
certificate of good standing of Purchaser dated not earlier than 30 days prior
to the Closing Date.
7.11 Such other certificates of Purchaser's officers or others and such other
documents to evidence fulfillment of the conditions set forth in this Agreement
as Seller or its counsel may reasonably request.
7.12 An executed ▇▇▇▇ of Sale in the form attached hereto as Exhibit 4.
8. COSTS. Seller shall pay Purchaser the costs and expenses as agreed upon by
Seller and Purchaser in a separate Letter of Understanding entered into in
connection with this Agreement and the issuance of the Certificates.
9. NOTICES. All communications provided for or permitted hereunder shall be
in writing and shall be deemed to have been duly given if (a) personally
delivered, (b) mailed by registered or certified mail, postage prepaid and
received by the addressee, (c) sent by express courier delivery service and
received by the addressee, or (d) transmitted by telex or facsimile transmission
(or any other type of electronic transmission agreed upon by the parties) and
confirmed by a writing delivered by any of the means described in (a), (b) or
(c), if (i) to Purchaser, addressed to ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇ Friend, with a copy to
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Legal
Department, Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Esq. (or such other address as may
hereafter be furnished in writing by Purchaser), or if (ii) to Seller, addressed
to Seller at Bear ▇▇▇▇▇▇▇ Commercial Mortgage, Inc., addressed to Bear ▇▇▇▇▇▇▇
Commercial Mortgage, Inc., ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇,
Attention: J. ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Senior Managing Director, Commercial Mortgage
Department (with a copy to the attention of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, ▇▇., Managing
Director, Legal Department) (or such other address as may hereafter be furnished
in writing by Seller).
10. SEVERABILITY OF PROVISIONS. Any part, provision, representation, warranty
or covenant of this Agreement that is prohibited or that is held to be void or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the
23
remaining provisions hereof. Any part, provision, representation, warranty or
covenant of this Agreement that is prohibited or unenforceable or is held to be
void or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law that prohibits
or renders void or unenforceable any provision hereof.
11. FURTHER ASSURANCES. Seller and Purchaser each agree to execute and deliver
such instruments and take such actions as the other may, from time to time,
reasonably request in order to effectuate the purpose and to carry out the terms
of this Agreement and the Pooling and Servicing Agreement.
12. SURVIVAL. Each party hereto agrees that the representations, warranties
and agreements made by it herein and in any certificate or other instrument
delivered pursuant hereto shall be deemed to be relied upon by the other party,
notwithstanding any investigation heretofore or hereafter made by the other
party or on its behalf, and that the representations, warranties and agreements
made by such other party herein or in any such certificate or other instrument
shall survive the delivery of and payment for the Mortgage Loans and shall
continue in full force and effect, notwithstanding any restrictive or qualified
endorsement on the Mortgage Notes and notwithstanding subsequent termination of
this Agreement.
13. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND
RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK. THE
PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW SHALL APPLY TO THIS AGREEMENT.
14. BENEFITS OF MORTGAGE LOAN PURCHASE AGREEMENT. This Agreement shall inure
to the benefit of and shall be binding upon Seller, Purchaser and their
respective successors, legal representatives, and permitted assigns, and nothing
expressed or mentioned in this Agreement is intended or shall be construed to
give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement, or any provisions herein contained, this Agreement
and all conditions and provisions hereof being intended to be and being for the
sole and exclusive benefit of such persons and for the benefit of no other
person except that the rights and obligations of Purchaser pursuant to Sections
2, 4.1 (other than clause 4.1.7), 5, 9, 10, 11, 12 and 13 hereof may be assigned
to the Trustee as may be required to effect the purposes of the Pooling and
Servicing Agreement and, upon such assignment, the Trustee shall succeed to the
rights and obligations hereunder of Purchaser. No owner of a Certificate issued
pursuant to the Pooling and Servicing Agreement shall be deemed a successor or
permitted assigns because of such ownership.
24
15. MISCELLANEOUS. This Agreement may be executed in two or more counterparts,
each of which when so executed and delivered shall be an original, but all of
which together shall constitute one and the same instrument. Neither this
Agreement nor any term hereof may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against whom
enforcement of the change, waiver, discharge or termination is sought. The
headings in this Agreement are for purposes of reference only and shall not
limit or otherwise affect the meaning hereof. The rights and obligations of
Seller under this Agreement shall not be assigned by Seller without the prior
written consent of Purchaser, except that any person into which Seller may be
merged or consolidated, or any corporation resulting from any merger, conversion
or consolidation to which Seller is a party, or any person succeeding to the
entire business of Seller shall be the successor to Seller hereunder.
16. ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof (other than the Letter of Understanding (solely with respect to those
portions of this Agreement that are not assigned to the Trustee), the
Indemnification Agreement and the Pooling and Servicing Agreement), and
supersedes all prior and contemporaneous agreements, understandings, inducements
and conditions, express or implied, oral or written, of any nature whatsoever
with respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance or usage of the trade inconsistent with any
of the terms hereof.
25
IN WITNESS WHEREOF, Purchaser and Seller have caused this Agreement to be
executed by their respective duly authorized officers as of the date first above
written.
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE, INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
---------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Title: Senior Managing Director
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By: /s/ ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇
---------------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
EXHIBIT 1
MORTGAGE LOAN SCHEDULE
BSCMI LOAN SCHEDULE
BEAR ▇▇▇▇▇▇▇
ORIGINAL
LOAN MORTGAGE CUT-OFF TERM TO
POOL LOAN LOAN DATE MATURITY OR
NO. SELLER NUMBER PROPERTY NAME BALANCE NOTE DATE ARD
---------------------------------------------------------------------------------------------------------------------------------
1 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇▇▇ Mall $137,000,000 08/11/2005 120
3 BSCMI ▇-▇▇▇ ▇▇▇ - ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ $102,240,720 11/15/2005 60
4 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ (▇) $ 6,077,641 11/23/2005 ▇▇▇
▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇▇ (▇) $ 5,920,183 11/23/2005 120
6 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ ▇▇▇▇▇ (▇) $ 5,400,544 11/23/2005 120
7 BSCMI 4-004 InTown Suites Portfolio - Newport News (I) $ 5,001,446 11/23/2005 120
8 BSCMI 4-005 InTown Suites Portfolio - Downers Grove (I) $ 4,466,474 11/23/2005 120
9 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ ▇▇▇▇ (▇) $ 4,453,235 11/23/2005 120
10 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇ ▇▇▇▇▇ (▇) $ 4,076,558 11/23/2005 120
11 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ (▇) $ 3,832,784 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ (▇) $ 3,797,722 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇ (▇) $ 3,397,477 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇▇ (▇) $ 3,250,497 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇ (▇) $ 3,196,782 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ (▇) $ 3,039,394 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇ (▇) $ 2,972,259 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ (▇) $ 2,918,165 11/23/2005 120
19 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇ ▇▇▇▇ (▇) $ 2,894,268 11/23/2005 120
20 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇ ▇▇▇▇ (▇) $ 2,879,683 11/23/2005 120
21 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ ▇▇▇▇▇ (▇) $ 2,735,135 11/23/2005 120
22 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ (▇) $ 2,663,744 11/23/2005 120
23 BSCMI 4-020 InTown Suites Portfolio - ▇▇▇▇▇▇▇▇ Airline (I) $ 2,656,077 11/23/2005 120
24 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (▇) $ 2,648,421 11/23/2005 120
25 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ ▇▇▇▇ (▇) $ 2,631,094 11/23/2005 120
26 BSCMI 4-023 InTown Suites Portfolio - Colerain (I) $ 2,629,419 11/23/2005 120
27 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇ ▇▇▇▇▇▇▇ (▇) $ 2,626,029 11/23/2005 120
28 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ ▇▇▇▇ (▇) $ 2,470,157 11/23/2005 ▇▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇ (▇) $ 2,429,541 11/23/2005 120
30 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇ ▇▇▇▇▇▇ (▇) $ 2,389,244 11/23/2005 120
31 BSCMI 4-028 InTown Suites Portfolio - Rufe Snow (I) $ 2,223,831 11/23/2005 120
32 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇ ▇▇▇▇ (▇) $ 2,060,411 11/23/2005 120
33 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (▇) $ 1,939,990 11/23/2005 120
34 BSCMI ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (II) $ 4,029,000 09/26/2005 84
35 BSCMI 5-002 Mervyns - Escondido (II) $ 3,417,000 09/26/2005 84
36 BSCMI 5-003 Mervyns - Oceanside (II) $ 3,264,000 09/26/2005 84
37 BSCMI 5-004 Mervyns - Sun Valley (II) $ 3,060,000 09/26/2005 84
38 BSCMI 5-005 Mervyns - Manteca (II) $ 2,907,000 09/26/2005 84
39 BSCMI 5-006 Mervyns - Elk Grove (II) $ 2,805,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇ (▇▇) $ 2,754,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ (▇▇) $ 2,703,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ (▇▇) $ 2,652,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇▇ (▇▇) $ 2,652,000 09/26/2005 84
44 BSCMI 5-011 Mervyns - ▇▇▇▇▇▇ ▇▇▇▇ (II) $ 2,601,000 09/26/2005 84
45 BSCMI 5-012 Mervyns - ▇▇▇▇▇▇ Valley (II) $ 2,601,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ (▇▇) $ 2,601,000 09/26/2005 84
47 BSCMI 5-014 Mervyns - McAllen (II) $ 2,601,000 09/26/2005 84
48 BSCMI 5-015 Mervyns - Arbor Faire (II) $ 2,601,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇▇ (▇▇) $ 2,550,000 09/26/2005 84
50 BSCMI 5-017 Mervyns - Rancho Cucamonga (II) $ 2,550,000 09/26/2005 84
51 BSCMI 5-018 Mervyns - Ventura (II) $ 2,550,000 09/26/2005 84
52 BSCMI 5-019 Mervyns - ▇▇▇▇▇▇▇▇▇ (II) $ 2,550,000 09/26/2005 84
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇ ▇▇▇▇▇ (▇▇) $ 2,550,000 09/26/2005 84
54 BSCMI 5-021 Mervyns - Point West (II) $ 2,448,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇▇▇▇ (▇▇) $ 2,397,000 09/26/2005 ▇▇
▇▇ ▇▇▇▇▇ ▇-▇▇▇ ▇▇▇▇▇▇▇ - ▇▇▇▇ (▇▇) $ 2,244,000 09/26/2005 84
57 BSCMI 5-024 Mervyns - Turlock (II) $ 2,040,000 09/26/2005 84
58 BSCMI 5-025 Mervyns - Ridgecrest (II) $ 1,683,000 09/26/2005 84
65 BSCMI 12-001 Anthem Health $ 26,580,000 11/14/2005 120
67 BSCMI 14-001 ACE Hardware Headquarters $ 21,450,000 12/01/2004 84
68 BSCMI 15-001 ▇▇▇▇▇ Fargo Indiana Center $ 20,850,000 11/02/2005 84
2
75 BSCMI 22-001 Seekonk Power Center $ 13,650,000 12/13/2005 60
76 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Shopping Center $ 12,663,000 11/29/2005 60
77 BSCMI 24-001 ▇-▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ $ 12,500,000 11/10/2005 120
81 BSCMI 28-001 Publix at ▇▇▇▇ Parkway $ 10,850,000 10/31/2005 120
86 BSCMI 33-001 Timekeeper Building $ 9,500,000 11/23/2005 60
87 BSCMI 34-001 Pacific Concourse III $ 9,000,000 10/12/2005 120
88 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ II $ 8,500,000 12/09/2005 120
90 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 8,379,250 11/10/2005 60
93 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 7,050,000 09/22/2005 120
95 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Office Park $ 7,000,000 12/15/2005 120
98 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ $ 6,155,000 11/15/2005 84
100 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 6,000,000 09/20/2005 120
108 BSCMI ▇▇-▇▇▇ ▇▇▇▇ Olympic Blvd. $ 4,650,000 10/13/2005 120
114 BSCMI 58-001 ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 4,485,275 09/29/2005 120
117 BSCMI 61-001 ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 4,190,929 10/06/2005 120
122 BSCMI 66-001 ▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ $ 3,600,000 10/13/2005 120
125 BSCMI ▇▇-▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ $ 3,195,385 11/23/2005 120
134 BSCMI 78-001 CVS - Arcadia $ 2,675,000 12/01/2005 120
138 BSCMI 82-001 ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ $ 2,450,000 10/13/2005 120
141 BSCMI 85-001 CVS - Rockwall $ 2,200,000 09/13/2005 120
148 BSCMI 92-001 Walgreens - Pt. Neches $ 1,875,000 09/14/2005 120
3
LOAN POOL MORTGAGE LOAN REMAINING
NO. SELLER LOAN NUMBER TERM ORIG. AMORT. REM. AMORT. RATE
1 BSCMI ▇-▇▇▇ ▇▇▇ 360 360 5.439%
3 BSCMI 3-001 59 IO IO 4.995%
4 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
5 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
6 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
7 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
8 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
9 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
10 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
11 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
12 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
13 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
14 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
15 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
16 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
17 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
18 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
19 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
20 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
21 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
22 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
23 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
24 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
25 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
26 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
27 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
28 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
29 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
30 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
31 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
32 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
33 BSCMI ▇-▇▇▇ ▇▇▇ 300 298 5.336%
34 BSCMI 5-001 81 IO IO 4.890%
35 BSCMI 5-002 81 IO IO 4.890%
36 BSCMI 5-003 81 IO IO 4.890%
37 BSCMI 5-004 81 IO IO 4.890%
38 BSCMI 5-005 81 IO IO 4.890%
39 BSCMI 5-006 81 IO IO 4.890%
40 BSCMI 5-007 81 IO IO 4.890%
41 BSCMI 5-008 81 IO IO 4.890%
42 BSCMI 5-009 81 IO IO 4.890%
43 BSCMI 5-010 81 IO IO 4.890%
44 BSCMI 5-011 81 IO IO 4.890%
45 BSCMI 5-012 81 IO IO 4.890%
46 BSCMI 5-013 81 IO IO 4.890%
47 BSCMI 5-014 81 IO IO 4.890%
48 BSCMI 5-015 81 IO IO 4.890%
49 BSCMI 5-016 81 IO IO 4.890%
50 BSCMI 5-017 81 IO IO 4.890%
51 BSCMI 5-018 81 IO IO 4.890%
52 BSCMI 5-019 81 IO IO 4.890%
53 BSCMI 5-020 81 IO IO 4.890%
54 BSCMI 5-021 81 IO IO 4.890%
55 BSCMI 5-022 81 IO IO 4.890%
56 BSCMI 5-023 81 IO IO 4.890%
57 BSCMI 5-024 81 IO IO 4.890%
58 BSCMI 5-025 81 IO IO 4.890%
65 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.240%
67 BSCMI 14-001 71 IO IO 5.000%
68 BSCMI 15-001 83 IO IO 5.316%
75 BSCMI 22-001 60 IO IO 4.950%
76 BSCMI 23-001 59 IO IO 4.740%
77 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.498%
81 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.441%
86 BSCMI 33-001 59 IO IO 5.688%
87 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 4.910%
88 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 360 5.352%
90 BSCMI 37-001 59 IO IO 4.790%
93 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 360 5.084%
95 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 360 5.741%
98 BSCMI 45-001 83 IO IO 5.001%
100 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.481%
108 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 360 5.093%
114 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 357 5.096%
117 BSCMI ▇▇-▇▇▇ ▇▇▇ 360 358 5.236%
122 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 4.869%
125 BSCMI ▇▇-▇▇▇ ▇▇▇ 300 299 5.359%
134 BSCMI ▇▇-▇▇▇ ▇▇▇ 300 300 6.101%
138 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 4.869%
141 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.588%
148 BSCMI ▇▇-▇▇▇ ▇▇▇ IO IO 5.588%
2
MONTHLY
DEBT
LOAN POOL MORTGAGE SERVICE
NO. LOAN SELLER LOAN NUMBER (P&I) SEASONING YM CODE LO LO END DATE DEF
1 BSCMI 1-001 $772,636 4 28 07/31/2015 90
3 BSCMI 3-001 NAP 1 A 35 11/30/2008
4 BSCMI 4-001 $36,841 2 B 0 NAP 90
5 BSCMI 4-002 $35,886 2 B 0 NAP 90
6 BSCMI 4-003 $32,736 2 B 0 NAP 90
7 BSCMI 4-004 $30,317 2 B 0 NAP 90
8 BSCMI 4-005 $27,074 2 B 0 NAP 90
9 BSCMI 4-006 $26,994 2 B 0 NAP 90
10 BSCMI 4-007 $24,711 2 B 0 NAP 90
11 BSCMI 4-008 $23,233 2 B 0 NAP 90
12 BSCMI 4-009 $23,020 2 B 0 NAP 90
13 BSCMI 4-010 $20,594 2 B 0 NAP 90
14 BSCMI 4-011 $19,703 2 B 0 NAP 90
15 BSCMI 4-012 $19,378 2 B 0 NAP 90
16 BSCMI 4-013 $18,424 2 B 0 NAP 90
17 BSCMI 4-014 $18,017 2 B 0 NAP 90
18 BSCMI 4-015 $17,689 2 B 0 NAP 90
19 BSCMI 4-016 $17,544 2 B 0 NAP 90
20 BSCMI 4-017 $17,456 2 B 0 NAP 90
21 BSCMI 4-018 $16,579 2 B 0 NAP 90
22 BSCMI 4-019 $16,147 2 B 0 NAP 90
23 BSCMI 4-020 $16,100 2 B 0 NAP 90
24 BSCMI 4-021 $16,054 2 B 0 NAP 90
25 BSCMI 4-022 $15,949 2 B 0 NAP 90
26 BSCMI 4-023 $15,939 2 B 0 NAP 90
27 BSCMI 4-024 $15,918 2 B 0 NAP 90
28 BSCMI 4-025 $14,973 2 B 0 NAP 90
29 BSCMI 4-026 $14,727 2 B 0 NAP 90
30 BSCMI 4-027 $14,483 2 B 0 NAP 90
31 BSCMI 4-028 $13,480 2 B 0 NAP 90
32 BSCMI 4-029 $12,489 2 B 0 NAP 90
33 BSCMI 4-030 $11,760 2 B 0 NAP 90
34 BSCMI 5-001 NAP 3 A 35 09/30/2008
35 BSCMI 5-002 NAP 3 A 35 09/30/2008
36 BSCMI 5-003 NAP 3 A 35 09/30/2008
37 BSCMI 5-004 NAP 3 A 35 09/30/2008
38 BSCMI 5-005 NAP 3 A 35 09/30/2008
39 BSCMI 5-006 NAP 3 A 35 09/30/2008
40 BSCMI 5-007 NAP 3 A 35 09/30/2008
41 BSCMI 5-008 NAP 3 A 35 09/30/2008
42 BSCMI 5-009 NAP 3 A 35 09/30/2008
43 BSCMI 5-010 NAP 3 A 35 09/30/2008
44 BSCMI 5-011 NAP 3 A 35 09/30/2008
45 BSCMI 5-012 NAP 3 A 35 09/30/2008
46 BSCMI 5-013 NAP 3 A 35 09/30/2008
47 BSCMI 5-014 NAP 3 A 35 09/30/2008
48 BSCMI 5-015 NAP 3 A 35 09/30/2008
49 BSCMI 5-016 NAP 3 A 35 09/30/2008
50 BSCMI 5-017 NAP 3 A 35 09/30/2008
51 BSCMI 5-018 NAP 3 A 35 09/30/2008
52 BSCMI 5-019 NAP 3 A 35 09/30/2008
53 BSCMI 5-020 NAP 3 A 35 09/30/2008
54 BSCMI 5-021 NAP 3 A 35 09/30/2008
55 BSCMI 5-022 NAP 3 A 35 09/30/2008
56 BSCMI 5-023 NAP 3 A 35 09/30/2008
57 BSCMI 5-024 NAP 3 A 35 09/30/2008
58 BSCMI 5-025 NAP 3 A 35 09/30/2008
65 BSCMI 12-001 NAP 1 A 35 11/30/2008
67 BSCMI 14-001 NAP 13 A 36 12/31/2007
68 BSCMI 15-001 NAP 1 A 35 11/30/2008
75 BSCMI 22-001 NAP 0 A 35 12/31/2008
76 BSCMI 23-001 NAP 1 A 35 11/30/2008
77 BSCMI 24-001 NAP 1 25 08/31/2015 91
81 BSCMI 28-001 NAP 2 26 09/30/2015 92
86 BSCMI 33-001 NAP 1 F 0 NAP
87 BSCMI 34-001 NAP 2 26 10/31/2015 93
88 BSCMI 35-001 $47,476 0 24 12/31/2015 95
90 BSCMI 37-001 NAP 1 A 35 11/30/2008
93 BSCMI 40-001 $38,209 3 27 08/31/2015 91
95 BSCMI 42-001 $40,810 0 24 11/30/2015 94
98 BSCMI 45-001 NAP 1 A 35 11/30/2008
100 BSCMI 47-001 NAP 3 27 08/31/2015 91
108 BSCMI 53-001 $25,227 2 26 08/31/2015 91
114 BSCMI 58-001 $24,422 3 27 09/30/2015 92
117 BSCMI 61-001 $23,156 2 J 26 01/31/2008
122 BSCMI 66-001 NAP 2 26 08/31/2015 91
125 BSCMI 69-001 $19,382 1 25 11/30/2015 94
134 BSCMI 78-001 $17,401 1 25 11/30/2015 94
138 BSCMI 82-001 NAP 2 26 08/31/2015 91
141 BSCMI 85-001 NAP 3 27 09/30/2015 92
148 BSCMI 92-001 NAP 3 27 09/30/2015 92
2
MASTER PRIMARY
LOAN POOL MORTGAGE LOAN LOAN DEF/Y DEF/Y YM YM ADMIN SERVICE SERVICE
NO. SELLER NUMBER M1 M 2 1 OPEN COST RATE FEE RATE FEE RATE
1 BSCMI 1-001 2 3.170 2.000 1.000
3 BSCMI 3-001 23 2 3.170 2.000 1.000
4 BSCMI 4-001 26 4 3.170 2.000 1.000
5 BSCMI 4-002 26 4 3.170 2.000 1.000
6 BSCMI 4-003 26 4 3.170 2.000 1.000
7 BSCMI 4-004 26 4 3.170 2.000 1.000
8 BSCMI 4-005 26 4 3.170 2.000 1.000
9 BSCMI 4-006 26 4 3.170 2.000 1.000
10 BSCMI 4-007 26 4 3.170 2.000 1.000
11 BSCMI 4-008 26 4 3.170 2.000 1.000
12 BSCMI 4-009 26 4 3.170 2.000 1.000
13 BSCMI 4-010 26 4 3.170 2.000 1.000
14 BSCMI 4-011 26 4 3.170 2.000 1.000
15 BSCMI 4-012 26 4 3.170 2.000 1.000
16 BSCMI 4-013 26 4 3.170 2.000 1.000
17 BSCMI 4-014 26 4 3.170 2.000 1.000
18 BSCMI 4-015 26 4 3.170 2.000 1.000
19 BSCMI 4-016 26 4 3.170 2.000 1.000
20 BSCMI 4-017 26 4 3.170 2.000 1.000
21 BSCMI 4-018 26 4 3.170 2.000 1.000
22 BSCMI 4-019 26 4 3.170 2.000 1.000
23 BSCMI 4-020 26 4 3.170 2.000 1.000
24 BSCMI 4-021 26 4 3.170 2.000 1.000
25 BSCMI 4-022 26 4 3.170 2.000 1.000
26 BSCMI 4-023 26 4 3.170 2.000 1.000
27 BSCMI 4-024 26 4 3.170 2.000 1.000
28 BSCMI 4-025 26 4 3.170 2.000 1.000
29 BSCMI 4-026 26 4 3.170 2.000 1.000
30 BSCMI 4-027 26 4 3.170 2.000 1.000
31 BSCMI 4-028 26 4 3.170 2.000 1.000
32 BSCMI 4-029 26 4 3.170 2.000 1.000
33 BSCMI 4-030 26 4 3.170 2.000 1.000
34 BSCMI 5-001 47 2 3.170 2.000 1.000
35 BSCMI 5-002 47 2 3.170 2.000 1.000
36 BSCMI 5-003 47 2 3.170 2.000 1.000
37 BSCMI 5-004 47 2 3.170 2.000 1.000
38 BSCMI 5-005 47 2 3.170 2.000 1.000
39 BSCMI 5-006 47 2 3.170 2.000 1.000
40 BSCMI 5-007 47 2 3.170 2.000 1.000
41 BSCMI 5-008 47 2 3.170 2.000 1.000
42 BSCMI 5-009 47 2 3.170 2.000 1.000
43 BSCMI 5-010 47 2 3.170 2.000 1.000
44 BSCMI 5-011 47 2 3.170 2.000 1.000
45 BSCMI 5-012 47 2 3.170 2.000 1.000
46 BSCMI 5-013 47 2 3.170 2.000 1.000
47 BSCMI 5-014 47 2 3.170 2.000 1.000
48 BSCMI 5-015 47 2 3.170 2.000 1.000
49 BSCMI 5-016 47 2 3.170 2.000 1.000
50 BSCMI 5-017 47 2 3.170 2.000 1.000
51 BSCMI 5-018 47 2 3.170 2.000 1.000
52 BSCMI 5-019 47 2 3.170 2.000 1.000
53 BSCMI 5-020 47 2 3.170 2.000 1.000
54 BSCMI 5-021 47 2 3.170 2.000 1.000
55 BSCMI 5-022 47 2 3.170 2.000 1.000
56 BSCMI 5-023 47 2 3.170 2.000 1.000
57 BSCMI 5-024 47 2 3.170 2.000 1.000
58 BSCMI 5-025 47 2 3.170 2.000 1.000
65 BSCMI 12-001 83 2 3.170 2.000 1.000
67 BSCMI 14-001 46 2 3.170 2.000 1.000
68 BSCMI 15-001 47 2 3.170 2.000 1.000
75 BSCMI 22-001 23 2 3.170 2.000 1.000
76 BSCMI 23-001 23 2 3.170 2.000 1.000
77 BSCMI 24-001 4 3.170 2.000 1.000
81 BSCMI 28-001 2 3.170 2.000 1.000
86 BSCMI 33-001 53 4 3 8.170 2.000 6.000
87 BSCMI 34-001 1 3.170 2.000 1.000
88 BSCMI 35-001 1 3.170 2.000 1.000
90 BSCMI 37-001 23 2 3.170 2.000 1.000
93 BSCMI 40-001 2 3.170 2.000 1.000
95 BSCMI 42-001 2 3.170 2.000 1.000
98 BSCMI 45-001 47 2 3.170 2.000 1.000
100 BSCMI 47-001 2 7.170 2.000 5.000
108 BSCMI 53-001 3 3.170 2.000 1.000
114 BSCMI 58-001 1 3.170 2.000 1.000
117 BSCMI 61-001 90 4 3.170 2.000 1.000
122 BSCMI 66-001 3 7.170 2.000 5.000
125 BSCMI 69-001 1 3.170 2.000 1.000
134 BSCMI 78-001 1 8.170 2.000 6.000
138 BSCMI 82-001 3 7.170 2.000 5.000
141 BSCMI 85-001 1 8.170 2.000 6.000
148 BSCMI 92-001 1 8.170 2.000 6.000
2
PRIMARY
MASTER EXCESS
EXCESS SERV. SERVICING EXCESS
LOAN POOL MORTGAGE LOAN LOAN FEE RATE FEE RATE TRUSTEE SERVICE
NO. SELLER NUMBER (BPS) (BPS) DEAL FEES FEE RATE FEE RATE
1 BSCMI 1-001 0.000 0.000 3.000 0.170 1.000
3 BSCMI 3-001 0.000 0.000 3.000 0.170 1.000
4 BSCMI 4-001 0.000 0.000 3.000 0.170 1.000
5 BSCMI 4-002 0.000 0.000 3.000 0.170 1.000
6 BSCMI 4-003 0.000 0.000 3.000 0.170 1.000
7 BSCMI 4-004 0.000 0.000 3.000 0.170 1.000
8 BSCMI 4-005 0.000 0.000 3.000 0.170 1.000
9 BSCMI 4-006 0.000 0.000 3.000 0.170 1.000
10 BSCMI 4-007 0.000 0.000 3.000 0.170 1.000
11 BSCMI 4-008 0.000 0.000 3.000 0.170 1.000
12 BSCMI 4-009 0.000 0.000 3.000 0.170 1.000
13 BSCMI 4-010 0.000 0.000 3.000 0.170 1.000
14 BSCMI 4-011 0.000 0.000 3.000 0.170 1.000
15 BSCMI 4-012 0.000 0.000 3.000 0.170 1.000
16 BSCMI 4-013 0.000 0.000 3.000 0.170 1.000
17 BSCMI 4-014 0.000 0.000 3.000 0.170 1.000
18 BSCMI 4-015 0.000 0.000 3.000 0.170 1.000
19 BSCMI 4-016 0.000 0.000 3.000 0.170 1.000
20 BSCMI 4-017 0.000 0.000 3.000 0.170 1.000
21 BSCMI 4-018 0.000 0.000 3.000 0.170 1.000
22 BSCMI 4-019 0.000 0.000 3.000 0.170 1.000
23 BSCMI 4-020 0.000 0.000 3.000 0.170 1.000
24 BSCMI 4-021 0.000 0.000 3.000 0.170 1.000
25 BSCMI 4-022 0.000 0.000 3.000 0.170 1.000
26 BSCMI 4-023 0.000 0.000 3.000 0.170 1.000
27 BSCMI 4-024 0.000 0.000 3.000 0.170 1.000
28 BSCMI 4-025 0.000 0.000 3.000 0.170 1.000
29 BSCMI 4-026 0.000 0.000 3.000 0.170 1.000
30 BSCMI 4-027 0.000 0.000 3.000 0.170 1.000
31 BSCMI 4-028 0.000 0.000 3.000 0.170 1.000
32 BSCMI 4-029 0.000 0.000 3.000 0.170 1.000
33 BSCMI 4-030 0.000 0.000 3.000 0.170 1.000
34 BSCMI 5-001 0.000 0.000 3.000 0.170 1.000
35 BSCMI 5-002 0.000 0.000 3.000 0.170 1.000
36 BSCMI 5-003 0.000 0.000 3.000 0.170 1.000
37 BSCMI 5-004 0.000 0.000 3.000 0.170 1.000
38 BSCMI 5-005 0.000 0.000 3.000 0.170 1.000
39 BSCMI 5-006 0.000 0.000 3.000 0.170 1.000
40 BSCMI 5-007 0.000 0.000 3.000 0.170 1.000
41 BSCMI 5-008 0.000 0.000 3.000 0.170 1.000
42 BSCMI 5-009 0.000 0.000 3.000 0.170 1.000
43 BSCMI 5-010 0.000 0.000 3.000 0.170 1.000
44 BSCMI 5-011 0.000 0.000 3.000 0.170 1.000
45 BSCMI 5-012 0.000 0.000 3.000 0.170 1.000
1-1
46 BSCMI 5-013 0.000 0.000 3.000 0.170 1.000
47 BSCMI 5-014 0.000 0.000 3.000 0.170 1.000
48 BSCMI 5-015 0.000 0.000 3.000 0.170 1.000
49 BSCMI 5-016 0.000 0.000 3.000 0.170 1.000
50 BSCMI 5-017 0.000 0.000 3.000 0.170 1.000
51 BSCMI 5-018 0.000 0.000 3.000 0.170 1.000
52 BSCMI 5-019 0.000 0.000 3.000 0.170 1.000
53 BSCMI 5-020 0.000 0.000 3.000 0.170 1.000
54 BSCMI 5-021 0.000 0.000 3.000 0.170 1.000
55 BSCMI 5-022 0.000 0.000 3.000 0.170 1.000
56 BSCMI 5-023 0.000 0.000 3.000 0.170 1.000
57 BSCMI 5-024 0.000 0.000 3.000 0.170 1.000
58 BSCMI 5-025 0.000 0.000 3.000 0.170 1.000
65 BSCMI 12-001 0.000 0.000 3.000 0.170 1.000
67 BSCMI 14-001 0.000 0.000 3.000 0.170 1.000
68 BSCMI 15-001 0.000 0.000 3.000 0.170 1.000
75 BSCMI 22-001 0.000 0.000 3.000 0.170 1.000
76 BSCMI 23-001 0.000 0.000 3.000 0.170 1.000
77 BSCMI 24-001 0.000 0.000 3.000 0.170 1.000
81 BSCMI 28-001 0.000 0.000 3.000 0.170 1.000
86 BSCMI 33-001 0.000 0.000 8.000 0.170 6.000
87 BSCMI 34-001 0.000 0.000 3.000 0.170 1.000
88 BSCMI 35-001 0.000 0.000 3.000 0.170 1.000
90 BSCMI 37-001 0.000 0.000 3.000 0.170 1.000
93 BSCMI 40-001 0.000 0.000 3.000 0.170 1.000
95 BSCMI 42-001 0.000 0.000 3.000 0.170 1.000
98 BSCMI 45-001 0.000 0.000 3.000 0.170 1.000
100 BSCMI 47-001 0.000 0.000 7.000 0.170 5.000
108 BSCMI 53-001 0.000 0.000 3.000 0.170 1.000
114 BSCMI 58-001 0.000 0.000 3.000 0.170 1.000
117 BSCMI 61-001 0.000 0.000 3.000 0.170 1.000
122 BSCMI 66-001 0.000 0.000 7.000 0.170 5.000
125 BSCMI 69-001 0.000 0.000 3.000 0.170 1.000
134 BSCMI 78-001 0.000 0.000 8.000 0.170 6.000
138 BSCMI 82-001 0.000 0.000 7.000 0.170 5.000
141 BSCMI 85-001 0.000 0.000 8.000 0.170 6.000
148 BSCMI 92-001 0.000 0.000 8.000 0.170 6.000
1-2
EXHIBIT 2
REPRESENTATIONS AND WARRANTIES REGARDING
INDIVIDUAL MORTGAGE LOANS
1. Mortgage Loan Schedule. The information set forth in the Mortgage Loan
Schedule is complete, true and correct in all material respects as of the date
of this Agreement and as of the Cut-Off Date.
2. Whole Loan; Ownership of Mortgage Loans. Each Mortgage Loan is a whole
loan and not a participation interest in a mortgage loan. Immediately prior to
the transfer to Purchaser of the Mortgage Loans, Seller had good title to, and
was the sole owner of, each Mortgage Loan. Seller has full right, power and
authority to transfer and assign each of the Mortgage Loans to or at the
direction of Purchaser and has validly and effectively conveyed (or caused to be
conveyed) to Purchaser or its designee all of Seller's legal and beneficial
interest in and to the Mortgage Loans free and clear of any and all pledges,
liens, charges, security interests and/or other encumbrances. The sale of the
Mortgage Loans to Purchaser or its designee does not require Seller to obtain
any governmental or regulatory approval or consent that has not been obtained.
3. Payment Record. No scheduled payment of principal and interest under any
Mortgage Loan was 30 days or more past due as of the Cut-Off Date, and no
Mortgage Loan was 30 days or more delinquent in the twelve-month period
immediately preceding the Cut-Off Date.
4. Lien; Valid Assignment. The Mortgage related to and delivered in
connection with each Mortgage Loan constitutes a valid and, subject to the
exceptions set forth in paragraph 13 below, enforceable first priority lien upon
the related Mortgaged Property, prior to all other liens and encumbrances,
except for (a) the lien for current real estate taxes and assessments not yet
due and payable, (b) covenants, conditions and restrictions, rights of way,
easements and other matters that are of public record and/or are referred to in
the related lender's title insurance policy, (c) exceptions and exclusions
specifically referred to in such lender's title insurance policy, (d) other
matters to which like properties are commonly subject, none of which matters
referred to in clauses (b), (c) or (d), individually or in the aggregate,
materially interferes with the security intended to be provided by such
Mortgage, the marketability or current use of the Mortgaged Property or the
current ability of the Mortgaged Property to generate operating income
sufficient to service the Mortgage Loan debt and (e) if such Mortgage Loan is
cross-collateralized with any other Mortgage Loan, the lien of the Mortgage for
such other Mortgage Loan (the foregoing items (a) through (e), the "Permitted
Encumbrances"). The related assignment of such Mortgage executed and delivered
in favor of the Trustee is in recordable form and constitutes a legal, valid and
binding assignment, sufficient to convey to the assignee named therein all of
the assignor's right, title and interest in, to and under such Mortgage. Such
Mortgage, together with any separate security agreements, chattel mortgages or
equivalent instruments, establishes and creates a valid and, subject to the
exceptions set forth in paragraph 13 below, enforceable security interest in
favor of the holder thereof in all of the related Mortgagor's personal property
used in, and reasonably necessary to operate, the related Mortgaged Property. In
the case of a Mortgaged Property operated as a hotel or an assisted living
facility, the Mortgagor's personal property includes all personal property that
a prudent mortgage lender making a similar Mortgage Loan would deem reasonably
necessary to operate the related Mortgaged Property as it is currently being
operated. A Uniform Commercial Code
financing statement has been filed and/or recorded in all places necessary to
perfect a valid security interest in such personal property, to the extent a
security interest may be so created therein, and such security interest is a
first priority security interest, subject to any prior purchase money security
interest in such personal property and any personal property leases applicable
to such personal property. Notwithstanding the foregoing, no representation is
made as to the perfection of any security interest in rents or other personal
property to the extent that possession or control of such items or actions other
than the filing of Uniform Commercial Code financing statements are required in
order to effect such perfection.
5. Assignment of Leases and Rents. The Assignment of Leases related to and
delivered in connection with each Mortgage Loan establishes and creates a valid,
subsisting and, subject to the exceptions set forth in paragraph 13 below,
enforceable first priority lien and first priority security interest in the
related Mortgagor's interest in all leases, sub-leases, licenses or other
agreements pursuant to which any person is entitled to occupy, use or possess
all or any portion of the real property subject to the related Mortgage, and
each assignor thereunder has the full right to assign the same. The related
assignment of any Assignment of Leases not included in a Mortgage has been
executed and delivered in favor of the Trustee and is in recordable form and
constitutes a legal, valid and binding assignment, sufficient to convey to the
assignee named therein all of the assignor's right, title and interest in, to
and under such Assignment of Leases.
6. Mortgage Status; Waivers and Modifications. No Mortgage has been
satisfied, cancelled, rescinded or subordinated in whole or in part, and the
related Mortgaged Property has not been released from the lien of such Mortgage,
in whole or in part (except for partial reconveyances of real property that are
set forth on Schedule A to Exhibit 2), nor has any instrument been executed that
would effect any such satisfaction, cancellation, subordination, rescission or
release, in any manner that, in each case, materially adversely affects the
value of the related Mortgaged Property. None of the terms of any Mortgage Note,
Mortgage or Assignment of Leases has been impaired, waived, altered or modified
in any respect, except by written instruments, all of which are included in the
related Mortgage File.
7. Condition of Property; Condemnation. (i) With respect to the Mortgaged
Properties securing the Mortgage Loans that were the subject of an engineering
report within 18 months prior to the Cut-Off Date as set forth on Schedule A to
this Exhibit 2, each Mortgaged Property is, to Seller's knowledge, free and
clear of any damage (or adequate reserves therefor have been established) that
would materially and adversely affect its value as security for the related
Mortgage Loan, and (ii) with respect to the Mortgaged Properties securing the
Mortgage Loans that were not the subject of an engineering report within 18
months prior to the Cut-Off Date as set forth on Schedule A to this Exhibit 2,
each Mortgaged Property is in good repair and condition and all building systems
contained therein are in good working order (or adequate reserves therefor have
been established) and each Mortgaged Property is free of structural defects, in
each case, that would materially and adversely affect its value as security for
the related Mortgage Loan as of the date hereof. Seller has received no notice
of the commencement of any proceeding for the condemnation of all or any
material portion of any Mortgaged Property. To Seller's knowledge (based on
surveys and/or title insurance obtained in connection with the origination of
the Mortgage Loans), as of the date of the origination of each Mortgage Loan,
all of the material improvements on the related Mortgaged Property that were
considered in determining the appraised value of the Mortgaged Property lay
wholly within the boundaries
and building restriction lines of such property, except for encroachments that
are insured against by the lender's title insurance policy referred to herein or
that do not materially and adversely affect the value or marketability of such
Mortgaged Property, and no improvements on adjoining properties materially
encroached upon such Mortgaged Property so as to materially and adversely affect
the value or marketability of such Mortgaged Property, except those
encroachments that are insured against by the Title Policy referred to herein.
8. Title Insurance. Each Mortgaged Property is covered by an American Land
Title Association (or an equivalent form of) lender's title insurance policy or
a marked-up title insurance commitment (on which the required premium has been
paid) which evidences such title insurance policy (the "Title Policy") in the
original principal amount of the related Mortgage Loan after all advances of
principal. Each Title Policy insures that the related Mortgage is a valid first
priority lien on such Mortgaged Property, subject only to Permitted
Encumbrances. Each Title Policy (or, if it has yet to be issued, the coverage to
be provided thereby) is in full force and effect, all premiums thereon have been
paid and no material claims have been made thereunder and no claims have been
paid thereunder. No holder of the related Mortgage has done, by act or omission,
anything that would materially impair the coverage under such Title Policy.
Immediately following the transfer and assignment of the related Mortgage Loan
to the Trustee, such Title Policy (or, if it has yet to be issued, the coverage
to be provided thereby) will inure to the benefit of the Trustee without the
consent of or notice to the insurer. To Seller's knowledge, the insurer issuing
such Title Policy is qualified to do business in the jurisdiction in which the
related Mortgaged Property is located.
9. No Holdbacks. The proceeds of each Mortgage Loan have been fully disbursed
and there is no obligation for future advances with respect thereto. With
respect to each Mortgage Loan, any and all requirements as to completion of any
on-site or off-site improvement and as to disbursements of any funds escrowed
for such purpose that were to have been complied with on or before the Closing
Date have been complied with, or any such funds so escrowed have not been
released.
10. Mortgage Provisions. The Mortgage Note or Mortgage for each Mortgage Loan,
together with applicable state law, contains customary and enforceable
provisions (subject to the exceptions set forth in paragraph 13) such as to
render the rights and remedies of the holder thereof adequate for the practical
realization against the related Mortgaged Property of the principal benefits of
the security intended to be provided thereby.
11. Trustee under Deed of Trust. If any Mortgage is a deed of trust, (1) a
trustee, duly qualified under applicable law to serve as such, is properly
designated and serving under such Mortgage, and (2) no fees or expenses are
payable to such trustee by Seller, Purchaser or any transferee thereof except in
connection with a trustee's sale after default by the related Mortgagor or in
connection with any full or partial release of the related Mortgaged Property or
related security for the related Mortgage Loan.
12. Environmental Conditions.
(i) Except as set forth on Schedule A to this Exhibit 2, with respect
to the Mortgaged Properties securing the Mortgage Loans that were
the subject of an environmental
site assessment within 18 months prior to the Cut-Off Date, an
environmental site assessment prepared to ASTM standards, or an
update of a previous such report, was performed with respect to
each Mortgaged Property in connection with the origination or the
sale of the related Mortgage Loan, a report of each such
assessment (or the most recent assessment with respect to each
Mortgaged Property) (an "Environmental Report") has been
delivered to, or on behalf of, Purchaser or its designee, and
Seller has no knowledge of any material and adverse environmental
condition or circumstance affecting any Mortgaged Property that
was not disclosed in such report. Each Mortgage requires the
related Mortgagor to comply with all applicable federal, state
and local environmental laws and regulations. Where such
assessment disclosed the existence of a material and adverse
environmental condition or circumstance affecting any Mortgaged
Property, (i) a party not related to the Mortgagor was identified
as the responsible party for such condition or circumstance or
(ii) environmental insurance covering such condition was obtained
or must be maintained until the condition is remediated or (iii)
the related Mortgagor was required either to provide additional
security that was deemed to be sufficient by the originator in
light of the circumstances and/or to establish an operations and
maintenance plan. Each Mortgage Loan set forth on Schedule C to
this Exhibit 2 (each, a "Schedule C Loan") is the subject of a
Secured Creditor Impaired Property Policy, issued by the issuer
set forth on Schedule C (the "Policy Issuer") and effective as of
the date thereof (the "Environmental Insurance Policy"). Except
as set forth on Schedule A to this Exhibit 2, with respect to
each Schedule C Loan, (i) the Environmental Insurance Policy is
in full force and effect, (ii)(a) a property condition or
engineering report was prepared with respect to lead based paint
("LBP") and radon gas ("RG") at each Mortgaged Property that is
used as a multifamily dwelling, and with respect to asbestos
containing materials ("ACM") at each related Mortgaged Property
and (b) if such report disclosed the existence of a material and
adverse LBP, ACM or RG environmental condition or circumstance
affecting the related Mortgaged Property, the related Mortgagor
(A) was required to remediate the identified condition prior to
closing the Mortgage Loan or provide additional security, or
establish with the lender a reserve from loan proceeds, in an
amount deemed to be sufficient by Seller for the remediation of
the problem and/or (B) agreed in the Mortgage Loan documents to
establish an operations and maintenance plan after the closing of
the Mortgage Loan, (iii) on the effective date of the
Environmental Insurance Policy, Seller as originator had no
knowledge of any material and adverse environmental condition or
circumstance affecting the Mortgaged Property (other than the
existence of LBP, ACM or RG) that was not disclosed to the Policy
Issuer in one or more of the following: (a) the application for
insurance, (b) a borrower questionnaire that was provided to the
Policy Issuer or (c) an engineering or other report provided to
the Policy Issuer and (iv) the premium of any Environmental
Insurance Policy has been paid through the maturity of the
policy's term and the term of such policy extends at least five
years beyond the maturity of the Mortgage Loan.
(ii) With respect to the Mortgaged Properties securing the Mortgage
Loans that were not the subject of an environmental site
assessment prepared to ASTM standards
within 18 months prior to the Cut-Off Date as set forth on
Schedule A to this Exhibit 2, (i) no Hazardous Material is
present on such Mortgaged Property such that (1) the value of
such Mortgaged Property is materially and adversely affected or
(2) under applicable federal, state or local law, (a) such
Hazardous Material could be required to be eliminated at a cost
materially and adversely affecting the value of the Mortgaged
Property before such Mortgaged Property could be altered,
renovated, demolished or transferred or (b) the presence of such
Hazardous Material could (upon action by the appropriate
governmental authorities) subject the owner of such Mortgaged
Property, or the holders of a security interest therein, to
liability for the cost of eliminating such Hazardous Material or
the hazard created thereby at a cost materially and adversely
affecting the value of the Mortgaged Property, and (ii) such
Mortgaged Property is in material compliance with all applicable
federal, state and local laws pertaining to Hazardous Materials
or environmental hazards, any noncompliance with such laws does
not have a material adverse effect on the value of such Mortgaged
Property and neither Seller nor, to Seller's knowledge, the
related Mortgagor or any current tenant thereon, has received any
notice of violation or potential violation of any such law.
"Hazardous Materials" means gasoline, petroleum products,
explosives, radioactive materials, polychlorinated biphenyls or
related or similar materials, and any other substance or material
as may be defined as a hazardous or toxic substance by any
federal, state or local environmental law, ordinance, rule,
regulation or order, including without limitation, the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (42 U.S.C. ▇▇.▇▇. 9601 et seq.), the
Hazardous Materials Transportation Act as amended (42 U.S.C.
▇▇.▇▇. 6901 et seq.), the Federal Water Pollution Control Act as
amended (33 U.S.C. ▇▇.▇▇. 1251 et seq.), the Clean Air Act (42
U.S.C. ▇▇.▇▇. 1251 et seq.) and any regulations promulgated
pursuant thereto.
13. Loan Document Status. Each Mortgage Note, Mortgage and other agreement
that evidences or secures such Mortgage Loan and was executed by or on behalf of
the related Mortgagor is the legal, valid and binding obligation of the maker
thereof (subject to any non-recourse provisions contained in any of the
foregoing agreements and any applicable state anti-deficiency or market value
limit deficiency legislation), enforceable in accordance with its terms, except
as such enforcement may be limited by bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors' rights generally, and
by general principles of equity (regardless of whether such enforcement is
considered in a proceeding in equity or at law) and there is no valid defense,
counterclaim or right of offset or rescission available to the related Mortgagor
with respect to such Mortgage Note, Mortgage or other agreement.
14. Insurance. Each Mortgaged Property is, and is required pursuant to the
related Mortgage to be, insured by (a) a fire and extended perils insurance
policy providing coverage against loss or damage sustained by reason of fire,
lightning, windstorm, hail, explosion, riot, riot attending a strike, civil
commotion, aircraft, vehicles and smoke, and, to the extent required as of the
date of origination by the originator of such Mortgage Loan consistent with its
normal commercial mortgage lending practices, against other risks insured
against by persons operating like
properties in the locality of the Mortgaged Property in an amount not less than
the lesser of the principal balance of the related Mortgage Loan and the
replacement cost of the Mortgaged Property, and not less than the amount
necessary to avoid the operation of any co-insurance provisions with respect to
the Mortgaged Property, and the policy contains no provisions for a deduction
for depreciation; (b) a business interruption or rental loss insurance policy,
in an amount at least equal to six months of operations of the Mortgaged
Property estimated as of the date of origination by the originator of such
Mortgage Loan consistent with its normal commercial lending practices; (c) a
flood insurance policy (if any portion of buildings or other structures on the
Mortgaged Property are located in an area identified by the Federal Emergency
Management Agency as having special flood hazards and the Federal Emergency
Management Agency requires flood insurance to be maintained); and (d) a
comprehensive general liability insurance policy in amounts as are generally
required by commercial mortgage lenders, and in any event not less than $1
million per occurrence. Such insurance policy contains a standard mortgagee
clause that names the mortgagee as an additional insured in the case of
liability insurance policies and as a loss payee in the case of property
insurance policies and requires prior notice to the holder of the Mortgage of
termination or cancellation. No such notice has been received, including any
notice of nonpayment of premiums, that has not been cured. Each Mortgage
obligates the related Mortgagor to maintain all such insurance and, upon such
Mortgagor's failure to do so, authorizes the holder of the Mortgage to maintain
such insurance at the Mortgagor's cost and expense and to seek reimbursement
therefor from such Mortgagor. Each Mortgage provides that casualty insurance
proceeds will be applied (a) to the restoration or repair of the related
Mortgaged Property, (b) to the restoration or repair of the related Mortgaged
Property, with any excess insurance proceeds after restoration or repair being
paid to the Mortgagor, or (c) to the reduction of the principal amount of the
Mortgage Loan.
15. Taxes and Assessments. As of the Closing Date, there are no delinquent or
unpaid taxes, assessments (including assessments payable in future installments)
or other outstanding charges affecting any Mortgaged Property that are or may
become a lien of priority equal to or higher than the lien of the related
Mortgage. For purposes of this representation and warranty, real property taxes
and assessments shall not be considered unpaid until the date on which interest
or penalties would be first payable thereon.
16. Mortgagor Bankruptcy. No Mortgagor is, to Seller's knowledge, a debtor in
any state or federal bankruptcy or insolvency proceeding. As of the date of
origination, (i) with respect to Mortgage Loans with a principal balance greater
than $3,500,000, no tenant physically occupying 25% or more (by square feet) of
the net rentable area of the related Mortgaged Property was, to Seller's
knowledge, a debtor in any state or federal bankruptcy or insolvency proceeding
and (ii) with respect to Mortgage Loans with a principal balance equal to or
less than $3,500,000 no tenant physically occupying 50% or more (by square feet)
of the net rentable area of the related Mortgaged Property was, to Seller's
knowledge, a debtor in any state or federal bankruptcy or insolvency proceeding.
17. Leasehold Estate. Each Mortgaged Property consists of a fee simple estate
in real estate or, if the related Mortgage Loan is secured in whole or in part
by the interest of a Mortgagor as a lessee under a ground lease of a Mortgaged
Property (a "Ground Lease"), by the related Mortgagor's interest in the Ground
Lease but not by the related fee interest in such Mortgaged Property (the "Fee
Interest"), and as to such Ground Leases:
(i) Such Ground Lease or a memorandum thereof has been or will be
duly recorded; such Ground Lease (or the related estoppel letter
or lender protection agreement between Seller and related lessor)
does not prohibit the current use of the Mortgaged Property and
does not prohibit the interest of the lessee thereunder to be
encumbered by the related Mortgage; and there has been no
material change in the payment terms of such Ground Lease since
the origination of the related Mortgage Loan, with the exception
of material changes reflected in written instruments that are a
part of the related Mortgage File;
(ii) The lessee's interest in such Ground Lease is not subject to any
liens or encumbrances superior to, or of equal priority with, the
related Mortgage, other than Permitted Encumbrances;
(iii) The Mortgagor's interest in such Ground Lease is assignable to
Purchaser and its successors and assigns upon notice to, but
without the consent of, the lessor thereunder (or, if such
consent is required, it has been obtained prior to the Closing
Date) and, in the event that it is so assigned, is further
assignable by Purchaser and its successors and assigns upon
notice to, but without the need to obtain the consent of, such
lessor or if such lessor's consent is required it cannot be
unreasonably withheld;
(iv) Such Ground Lease is in full force and effect, and the Ground
Lease provides that no material amendment to such Ground Lease is
binding on a mortgagee unless the mortgagee has consented
thereto, and Seller has received no notice that an event of
default has occurred thereunder, and, to Seller's knowledge,
there exists no condition that, but for the passage of time or
the giving of notice, or both, would result in an event of
default under the terms of such Ground Lease;
(v) Such Ground Lease, or an estoppel letter or other agreement, (A)
requires the lessor under such Ground Lease to give notice of any
default by the lessee to the holder of the Mortgage; and (B)
provides that no notice of termination given under such Ground
Lease is effective against the holder of the Mortgage unless a
copy of such notice has been delivered to such holder and the
lessor has offered or is required to enter into a new lease with
such holder on terms that do not materially vary from the
economic terms of the Ground Lease.
(vi) A mortgagee is permitted a reasonable opportunity (including,
where necessary, sufficient time to gain possession of the
interest of the lessee under such Ground Lease) to cure any
default under such Ground Lease, which is curable after the
receipt of notice of any such default, before the lessor
thereunder may terminate such Ground Lease;
(vii) Such Ground Lease has an original term (including any extension
options set forth therein) which extends not less than twenty
years beyond the Stated Maturity Date of the related Mortgage
Loan;
(viii) Under the terms of such Ground Lease and the related Mortgage,
taken together, any related insurance proceeds or condemnation
award awarded to the holder of the ground lease interest will be
applied either (A) to the repair or restoration of all or part of
the related Mortgaged Property, with the mortgagee or a trustee
appointed by the related Mortgage having the right to hold and
disburse such proceeds as the repair or restoration progresses
(except in such cases where a provision entitling a third party
to hold and disburse such proceeds would not be viewed as
commercially unreasonable by a prudent commercial mortgage
lender), or (B) to the payment of the outstanding principal
balance of the Mortgage Loan together with any accrued interest
thereon; and
(ix) Such Ground Lease does not impose any restrictions on subletting
which would be viewed as commercially unreasonable by prudent
commercial mortgage lenders lending on a similar Mortgaged
Property in the lending area where the Mortgaged Property is
located; and such Ground Lease contains a covenant that the
lessor thereunder is not permitted, in the absence of an uncured
default, to disturb the possession, interest or quiet enjoyment
of the lessee thereunder for any reason, or in any manner, which
would materially adversely affect the security provided by the
related Mortgage.
(x) Such Ground Lease requires the Lessor to enter into a new lease
upon termination of such Ground Lease if the Ground Lease is
rejected in a bankruptcy proceeding.
18. Escrow Deposits. All escrow deposits and payments relating to each
Mortgage Loan that are, as of the Closing Date, required to be deposited or paid
have been so deposited or paid.
19. LTV Ratio. The gross proceeds of each Mortgage Loan to the related
Mortgagor at origination did not exceed the non-contingent principal amount of
the Mortgage Loan and either: (a) such Mortgage Loan is secured by an interest
in real property having a fair market value (i) at the date the Mortgage Loan
was originated, at least equal to 80 percent of the original principal balance
of the Mortgage Loan or (ii) at the Closing Date, at least equal to 80 percent
of the principal balance of the Mortgage Loan on such date; provided that for
purposes hereof, the fair market value of the real property interest must first
be reduced by (x) the amount of any lien on the real property interest that is
senior to the Mortgage Loan and (y) a proportionate amount of any lien that is
in parity with the Mortgage Loan (unless such other lien secures a Mortgage Loan
that is cross-collateralized with such Mortgage Loan, in which event the
computation described in clauses (a)(i) and (a)(ii) of this paragraph 19 shall
be made on a pro rata basis in accordance with the fair market values of the
Mortgaged Properties securing such cross-collateralized Mortgage Loans); or (b)
substantially all the proceeds of such Mortgage Loan were used to acquire,
improve or protect the real property that served as the only security for such
Mortgage Loan (other than a recourse feature or other third party credit
enhancement within the meaning of Treasury Regulations Section
1.860G-2(a)(1)(ii)).
20. Mortgage Loan Modifications. Any Mortgage Loan that was "significantly
modified" prior to the Closing Date so as to result in a taxable exchange under
Section 1001 of the Code either (a) was modified as a result of the default
under such Mortgage Loan or under circumstances that made a default reasonably
foreseeable or (b) satisfies the provisions of either
clause (a)(i) of paragraph 19 (substituting the date of the last such
modification for the date the Mortgage Loan was originated) or clause (a)(ii) of
paragraph 19, including the proviso thereto.
21. Advancement of Funds by Seller. No holder of a Mortgage Loan has advanced
funds or induced, solicited or knowingly received any advance of funds from a
party other than the owner of the related Mortgaged Property, directly or
indirectly, for the payment of any amount required by such Mortgage Loan.
22. No Mechanics' Liens. Each Mortgaged Property is free and clear of any and
all mechanics' and materialmen's liens that are prior or equal to the lien of
the related Mortgage, and no rights are outstanding that under law could give
rise to any such lien that would be prior or equal to the lien of the related
Mortgage except, in each case, for liens insured against by the Title Policy
referred to herein.
23. Compliance with Usury Laws. Each Mortgage Loan complied with all
applicable usury laws in effect at its date of origination.
24. Cross-collateralization. No Mortgage Loan is cross-collateralized or
cross-defaulted with any loan other than one or more other Mortgage Loans.
25. Releases of Mortgaged Property. Except as described in the next sentence,
no Mortgage Note or Mortgage requires the mortgagee to release all or any
material portion of the related Mortgaged Property that was included in the
appraisal for such Mortgaged Property, and/or generates income from the lien of
the related Mortgage except upon payment in full of all amounts due under the
related Mortgage Loan or in connection with the defeasance provisions of the
related Note and Mortgage. The Mortgages relating to those Mortgage Loans
identified on Schedule A hereto require the mortgagee to grant releases of
portions of the related Mortgaged Properties upon (a) the satisfaction of
certain legal and underwriting requirements and/or (b) the payment of a
predetermined or objectively determinable release price and prepayment
consideration in connection therewith. Except as described in the first sentence
hereof and for those Mortgage Loans identified on Schedule A, no Mortgage Loan
permits the full or partial release or substitution of collateral unless the
mortgagee or servicer can require the Borrower to provide an opinion of tax
counsel to the effect that such release or substitution of collateral (a) would
not constitute a "significant modification" of such Mortgage Loan within the
meaning of Treas. Reg. ss.1.1001-3 and (b) would not cause such Mortgage Loan to
fail to be a "qualified mortgage" within the meaning of Section 860G(a)(3)(A) of
the Code.
26. No Equity Participation or Contingent Interest. No Mortgage Loan contains
any equity participation by the lender or provides for negative amortization
(except that the ARD Loan may provide for the accrual of interest at an
increased rate after the Anticipated Repayment Date) or for any contingent or
additional interest in the form of participation in the cash flow of the related
Mortgaged Property.
27. No Material Default. To Seller's knowledge, there exists no material
default, breach, violation or event of acceleration (and no event which, with
the passage of time or the giving of notice, or both, would constitute any of
the foregoing) under the documents evidencing or securing the Mortgage Loan, in
any such case to the extent the same materially and adversely
affects the value of the Mortgage Loan and the related Mortgaged Property;
provided, however, that this representation and warranty does not address or
otherwise cover any default, breach, violation or event of acceleration that
specifically pertains to any matter otherwise covered by any other
representation and warranty made by Seller in any of paragraphs 3, 7, 8, 12, 14,
15, 16 and 17 of this Exhibit 2.
28. Inspections. Seller (or if Seller is not the originator, the originator of
the Mortgage Loan) has inspected or caused to be inspected each Mortgaged
Property in connection with the origination of the related Mortgage Loan.
29. Local Law Compliance. Based on due diligence considered reasonable by
prudent commercial mortgage lenders in the lending area where the Mortgaged
Property is located, the improvements located on or forming part of each
Mortgaged Property comply with applicable zoning laws and ordinances, or
constitute a legal non-conforming use or structure or, if any such improvement
does not so comply, such non-compliance does not materially and adversely affect
the value of the related Mortgaged Property, such value as determined by the
appraisal performed at origination or in connection with the sale of the related
Mortgage Loan by Seller hereunder.
30. Junior Liens. None of the Mortgage Loans permits the related Mortgaged
Property to be encumbered by any lien (other than a Permitted Encumbrance)
junior to or of equal priority with the lien of the related Mortgage without the
prior written consent of the holder thereof or the satisfaction of debt service
coverage or similar criteria specified therein. Seller has no knowledge that any
of the Mortgaged Properties is encumbered by any lien junior to the lien of the
related Mortgage.
31. Actions Concerning Mortgage Loans. To the knowledge of Seller, there are
no actions, suits or proceedings before any court, administrative agency or
arbitrator concerning any Mortgage Loan, Mortgagor or related Mortgaged Property
that might adversely affect title to the Mortgaged Property or the validity or
enforceability of the related Mortgage or that might materially and adversely
affect the value of the Mortgaged Property as security for the Mortgage Loan or
the use for which the premises were intended.
32. Servicing. The servicing and collection practices used by Seller or any
prior holder or servicer of each Mortgage Loan have been in all material
respects legal, proper and prudent and have met customary industry standards.
33. Licenses and Permits. To Seller's knowledge, based on due diligence that
it customarily performs in the origination of comparable mortgage loans, as of
the date of origination of each Mortgage Loan or as of the date of the sale of
the related Mortgage Loan by Seller hereunder, the related Mortgagor was in
possession of all material licenses, permits and franchises required by
applicable law for the ownership and operation of the related Mortgaged Property
as it was then operated.
34. Assisted Living Facility Regulation. If the Mortgaged Property is operated
as an assisted living facility, to Seller's knowledge (a) the related Mortgagor
is in compliance in all material respects with all federal and state laws
applicable to the use and operation of the related
Mortgaged Property and (b) if the operator of the Mortgaged Property
participates in Medicare or Medicaid programs, the facility is in compliance in
all material respects with the requirements for participation in such programs.
35. Collateral in Trust. The Mortgage Note for each Mortgage Loan is not
secured by a pledge of any collateral that has not been assigned to Purchaser.
36. Due on Sale. Each Mortgage Loan contains a "due on sale" clause, which
provides for the acceleration of the payment of the unpaid principal balance of
the Mortgage Loan if, without prior written consent of the holder of the
Mortgage, the property subject to the Mortgage or any material portion thereof,
or a controlling interest in the related Mortgagor, is transferred, sold or
encumbered by a junior mortgage or deed of trust; provided, however, that
certain Mortgage Loans provide a mechanism for the assumption of the loan by a
third party upon the Mortgagor's satisfaction of certain conditions precedent,
and upon payment of a transfer fee, if any, or transfer of interests in the
Mortgagor or constituent entities of the Mortgagor to a third party or parties
related to the Mortgagor upon the Mortgagor's satisfaction of certain conditions
precedent.
37. Single Purpose Entity. The Mortgagor on each Mortgage Loan with a Cut-Off
Date Principal Balance in excess of $10 million, was, as of the origination of
the Mortgage Loan, a Single Purpose Entity. For this purpose, a "Single Purpose
Entity" shall mean an entity, other than an individual, whose organizational
documents provide substantially to the effect that it was formed or organized
solely for the purpose of owning and operating one or more of the Mortgaged
Properties securing the Mortgage Loans and prohibit it from engaging in any
business unrelated to such Mortgaged Property or Properties, and whose
organizational documents further provide, or which entity represented in the
related Mortgage Loan documents, substantially to the effect that it does not
have any assets other than those related to its interest in and operation of
such Mortgaged Property or Properties, or any indebtedness other than as
permitted by the related Mortgage(s) or the other related Mortgage Loan
documents, that it has its own books and records and accounts separate and apart
from any other person (other than a Mortgagor for a Mortgage Loan that is
cross-collateralized and cross-defaulted with the related Mortgage Loan), and
that it holds itself out as a legal entity, separate and apart from any other
person.
38. Non-Recourse Exceptions. The Mortgage Loan documents for each Mortgage
Loan provide that such Mortgage Loan constitutes either (a) the recourse
obligations of at least one natural person or (b) the non-recourse obligations
of the related Mortgagor, provided that at least one natural person (and the
Mortgagor if the Mortgagor is not a natural person) is liable to the holder of
the Mortgage Loan for damages arising in the case of fraud or willful
misrepresentation by the Mortgagor, misappropriation of rents, insurance
proceeds or condemnation awards and breaches of the environmental covenants in
the Mortgage Loan documents.
39. Defeasance and Assumption Costs. The related Mortgage Loan documents
provide that the related borrower is responsible for the payment of all
reasonable costs and expenses of the lender incurred in connection with the
defeasance of such Mortgage Loan and the release of the related Mortgaged
Property, and the borrower is required to pay all reasonable costs and expenses
of the lender associated with the approval of an assumption of such Mortgage
Loan.
40. Defeasance. No Mortgage Loan provides that (i) it can be defeased until
the date that is more than two years after the Closing Date, (ii) that it can be
defeased with any property other than government securities (as defined in
Section 2(a)(16) of the Investment Company Act of 1940, as amended) or any
direct non-callable security issued or guaranteed as to principal or interest by
the United States that will provide interest and principal payments sufficient
to satisfy scheduled payments of interest and principal as required under the
related Mortgage Loan, or (iii) defeasance requires the payment of any
consideration other than (a) reimbursement of incidental costs and expenses
and/or (b) a specified dollar amount or an amount that is based on a formula
that uses objective financial information (as defined in Treasury Regulation
Section 1.446-3(c)(4)(ii)).
41. Prepayment Premiums. As of the applicable date of origination of each such
Mortgage Loan, any prepayment premiums and yield maintenance charges payable
under the terms of the Mortgage Loans, in respect of voluntary prepayments,
constituted customary prepayment premiums and yield maintenance charges for
commercial mortgage loans.
42. Terrorism Insurance. With respect to each Mortgage Loan that has a
principal balance as of the Cut-off Date that is greater than or equal to
$20,000,000, the related all risk insurance policy and business interruption
policy do not specifically exclude Acts of Terrorism, as defined in the
Terrorism Risk Insurance Act of 2002, from coverage, or if such coverage is
excluded, is covered by a separate terrorism insurance policy. With respect to
each other Mortgage Loan, the related all risk insurance policy and business
interruption policy did not as of the date of origination of the Mortgage Loan,
and, to Seller's knowledge, do not, as of the date hereof, specifically exclude
Acts of Terrorism from coverage, or if such coverage is excluded, it is covered
by a separate terrorism insurance policy. With respect to each of the Mortgage
Loans, the related Mortgage Loan documents do not expressly waive or prohibit
the mortgagee from requiring coverage for acts of terrorism or damages related
thereto, except to the extent that any right to require such coverage may be
limited by commercially reasonable availability, or as otherwise indicated on
Schedule A.
43. Foreclosure Property. Seller is not selling any Mortgage Loan as part of a
plan to transfer the underlying Mortgaged Property to Purchaser, and Seller does
not know or, to Seller's knowledge, have reason to know that any Mortgage Loan
will default. The representations in this paragraph 43 are being made solely for
the purpose of determining whether the Mortgaged Property, if acquired by the
Trust, would qualify as "foreclosure property" within the meaning of Section
860G(a)(8) of the Code, and may not be relied upon or used for any other
purpose. Such representations shall not be construed as a guarantee to any
degree that defaults or losses will not occur.
EXHIBIT 3
PRICING FORMULATION
MSCI 2006-TOP21
--------------------------------------------------------------------------------
ALLOCATION OF PROCEEDS
Total Bond Proceeds $1,415,874,674
Less Expenses ($4,916,803)
Net Proceeds $1,410,957,870 1,410,957,870
Less Purchase Price of BS Loans
Discounted Value of BS Loans $ 644,724,553
Allocable Expense Amount for BS Loans ($1,744,890)
--------------
Purchase Price of BS Loans $ 642,979,664 ($642,979,664)
Less Purchase Price of WF Loans
Discounted Value of WF Loans $ 271,761,223
Allocable Expense Amount for WF Loans ($1,182,585)
--------------
Purchase Price of WF Loans $ 270,578,638 ($270,578,638)
Less Purchase Price of PCF Loans
Discounted Value of PCF Loans $ 163,354,946
Allocable Expense Amount for PCF Loans ($671,002)
--------------
Purchase Price of PCF Loans $ 162,683,944 ($162,683,944)
Less Purchase Price of MS Loans
Discounted Value of MS Loans $ 337,608,789
Allocable Expense Amount for MS Loans ($1,318,327)
--------------
Purchase Price of MS Loans $ 336,290,462 ($336,290,462)
Remaining Proceeds ($1,574,837)
BS Share of Remaining Proceeds ($716,331)
WF Share of Remaining Proceeds ($301,930)
PCF Share of Remaining Proceeds ($181,489)
MS Share of Remaining Proceeds ($375,087)
Total Proceeds Allocated to BS $ 642,263,332
Total Proceeds Allocated to WF $ 270,276,708
Total Proceeds Allocated to PCF $ 162,502,455
Total Proceeds Allocated to MS $ 335,915,375
EXHIBIT 4
▇▇▇▇ OF SALE
1. Parties. The parties to this ▇▇▇▇ of Sale are the following:
Seller: Bear ▇▇▇▇▇▇▇ Commercial Mortgage, Inc.
Purchaser: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc.
2. Sale. For value received, Seller hereby conveys to Purchaser, without
recourse, all right, title and interest in and to the Mortgage Loans identified
on Exhibit 1 (the "Mortgage Loan Schedule") to the Mortgage Loan Purchase
Agreement, dated as of January 20, 2006 (the "Mortgage Loan Purchase
Agreement"), between Seller and Purchaser and all of the following property:
(a) All accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit and investment property consisting
of, arising from or relating to any of the following property: the
Mortgage Loans identified on the Mortgage Loan Schedule including the
related Mortgage Notes, Mortgages, security agreements, and title, hazard
and other insurance policies, all distributions with respect thereto
payable after the Cut-Off Date, all substitute or replacement Mortgage
Loans and all distributions with respect thereto, and the Mortgage Files;
(b) All accounts, general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, goods,
letters of credit, advices of credit, investment property, and other
rights arising from or by virtue of the disposition of, or collections
with respect to, or insurance proceeds payable with respect to, or claims
against other Persons with respect to, all or any part of the collateral
described in clause (a) above (including any accrued discount realized on
liquidation of any investment purchased at a discount); and
(c) All cash and non-cash proceeds of the collateral described in
clauses (a) and (b) above.
3. Purchase Price. The amount and other consideration set forth on Exhibit 3
to the Mortgage Loan Purchase Agreement.
4. Definitions. Terms used but not defined herein shall have the meanings
assigned to them in the Mortgage Loan Purchase Agreement.
4-1
IN WITNESS WHEREOF, each of the parties hereto has caused this ▇▇▇▇ of Sale to
be duly executed and delivered on this 20th day of January, 2006.
SELLER: BEAR ▇▇▇▇▇▇▇ COMMERCIAL
MORTGAGE, INC.
By: __________________________________
Name:_____________________________
Title:____________________________
PURCHASER: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By: __________________________________
Name:_____________________________
Title:____________________________
EXHIBIT 5
FORM OF LIMITED POWER OF ATTORNEY
THE MORTGAGE LOAN PURCHASE AGREEMENT
FORM OF LIMITED POWER OF ATTORNEY
TO LASALLE BANK NATIONAL ASSOCIATION
AND ARCAP SERVICING, INC.
WITH RESPECT TO
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES
SERIES 2006-TOP21
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, pursuant to the terms of the Mortgage Loan Purchase Agreement
dated as of January 20, 2006 (the "Mortgage Loan Purchase Agreement"), between
Bear ▇▇▇▇▇▇▇ Commercial Mortgage, Inc. ("BSCMI") and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I
Inc. ("Depositor"), BSCMI is selling certain multifamily and commercial mortgage
loans (the "Mortgage Loans") to Depositor;
WHEREAS, pursuant to the terms of the Pooling and Servicing Agreement
dated as of January 1, 2006 (the "Pooling and Servicing Agreement"), between the
Depositor, ▇▇▇▇▇ Fargo Bank, National Association, as Master Servicer, ARCap
Servicing, Inc. ("ARCAP") as Special Servicer, LaSalle Bank National Association
("LaSalle") as Trustee and ▇▇▇▇▇ Fargo Bank, National Association, as Paying
Agent, the Trustee and the Special Servicer are granted certain powers,
responsibilities and authority in connection with the completion and the filing
and recording of assignments of mortgage, deeds of trust or similar documents,
Form UCC-2 and UCC-3 assignments of financing statements, reassignments of
assignments of leases, rents and profits and other Mortgage Loan documents
required to be filed or recorded in appropriate public filing and recording
offices;
WHEREAS, BSCMI has agreed to provide this Limited Power of Attorney
pursuant to the Mortgage Loan Purchase Agreement;
NOW, THEREFORE, BSCMI does hereby make, constitute and appoint LaSalle,
acting solely in its capacity as Trustee under, and in accordance with the terms
of, the Pooling and Servicing Agreement, BSCMI's true and lawful agent and
attorney-in-fact with respect to each Mortgage Loan in BSCMI's name, place and
stead: (i) to complete (to the extent necessary) and to cause to be submitted
for filing or recording in the appropriate public filing or recording offices,
all assignments of mortgage, deeds of trust or similar documents, assignments or
5-1
reassignments of rents, leases and profits, in each case in favor of the Trustee
as set forth in the definition of "Mortgage File" in Section 1.1 of the Pooling
and Servicing Agreement, that have been received by the Trustee or a Custodian
on its behalf, and all Form UCC-2 or UCC-3 assignments of financing statements
and all other comparable instruments or documents with respect to the Mortgage
Loans which are customarily and reasonably necessary or appropriate to assign
agreements, documents and instruments pertaining to the Mortgage Loans, in each
case in favor of the Trustee, as set forth in the definition of "Mortgage File"
in, and in accordance with Section 1.1 of, the Pooling and Servicing Agreement,
and to evidence, provide notice of and perfect such assignments and conveyances
in favor of the Trustee in the public records of the appropriate filing and
recording offices; and (ii) to file or record in the appropriate public filing
or recording offices, all other Mortgage Loan documents to be recorded under the
terms of the Pooling and Servicing Agreement or any such Mortgage Loan documents
which have not been submitted for filing or recordation by BSCMI on or before
the date hereof or which have been so submitted but are subsequently lost or
returned unrecorded or unfiled as a result of actual or purported defects
therein, in order to evidence, provide notice of and perfect such documents in
the public records of the appropriate filing and recording offices.
Notwithstanding the foregoing, this Limited Power of Attorney shall grant to
LaSalle and ARCAP only such powers, responsibilities and authority as are set
forth in Section 2.1 of the Mortgage Loan Purchase Agreement.
BSCMI does also hereby make, constitute and appoint ARCAP, acting solely
in its capacity as Special Servicer under the Pooling and Servicing Agreement,
BSCMI's true and lawful agent and attorney-in-fact with respect to the Mortgage
Loans in BSCMI's name, place and stead solely to exercise and perform all of the
rights, authority and powers of LaSalle as set forth in the preceding paragraph
in the event of the failure or the incapacity of LaSalle to do so for any
reason. As between ARCAP and any third party, no evidence of the failure or
incapacity of LaSalle shall be required and such third party may rely upon
ARCAP's written statement that it is acting pursuant to the terms of this
Limited Power of Attorney.
17.
The enumeration of particular powers herein is not intended in any way to
limit the grant to either the Trustee or the Special Servicer as BSCMI's
attorney-in-fact of full power and authority with respect to the Mortgage Loans
to complete (to the extent necessary), file and record any documents,
instruments or other writings referred to above as fully, to all intents and
purposes, as BSCMI might or could do if personally present, hereby ratifying and
confirming whatsoever such attorney-in-fact shall and may do by virtue hereof;
and BSCMI agrees and represents to those dealing with such attorney-in-fact that
they may rely upon this Limited Power of Attorney until termination thereof
under the provisions of Article III below. As between BSCMI, the Depositor, the
Master Servicer, the Special Servicer, the Trustee, the Trust Fund and the
Certificateholders, neither the Trustee nor the Special Servicer may exercise
any right, authority or power granted by this Limited Power of Attorney in a
manner which would violate the terms of the Pooling and Servicing Agreement, but
any and all third parties dealing with either the Trustee or the Special
Servicer as BSCMI's attorney-in-fact may rely completely, unconditionally and
conclusively on the authority of the Trustee or the Special Servicer, as
applicable, and need not make any inquiry about whether the Trustee or the
Special Servicer is acting pursuant to the Pooling and Servicing Agreement. Any
purchaser, title insurance
company or other third party may rely upon a written statement by either the
Trustee or the Special Servicer that any particular Mortgage Loan or related
mortgaged real property in question is subject to and included under this
Limited Power of Attorney and the Pooling and Servicing Agreement.
18.
Any act or thing lawfully done hereunder by either the Trustee or the
Special Servicer shall be binding on BSCMI and BSCMI's successors and assigns.
19.
This Limited Power of Attorney shall continue in full force and effect
with respect to the Trustee and the Special Servicer, as applicable, until the
earliest occurrence of any of the following events:
19.1 with respect to the Trustee, the termination of the Trustee and its
replacement with a successor Trustee under the terms of the Pooling
and Servicing Agreement;
19.2 with respect to the Special Servicer, the termination of the Special
Servicer and its replacement with a successor Special Servicer under
the terms of the Pooling and Servicing Agreement;
19.3 with respect to the Trustee, the appointment of a receiver or
conservator with respect to the business of the Trustee, or the
filing of a voluntary or involuntary petition in bankruptcy by or
against the Trustee;
19.4 with respect to the Special Servicer, the appointment of a receiver
or conservator with respect to the business of the Special Servicer,
or the filing of a voluntary or involuntary petition in bankruptcy
by or against the Special Servicer;
19.5 with respect to each of the Trustee and the Special Servicer and any
Mortgage Loan, such Mortgage Loan is no longer a part of the Trust
Fund;
19.6 with respect to each of the Trustee and the Special Servicer, the
termination of the Pooling and Servicing Agreement in accordance
with its terms; and
19.7 with respect to the Special Servicer, the occurrence of an Event of
Default under the Pooling and Servicing Agreement with respect to
the Special Servicer.
Nothing herein shall be deemed to amend or modify the Pooling and
Servicing Agreement, the Mortgage Loan Purchase Agreement or the respective
rights, duties or obligations of BSCMI under the Mortgage Loan Purchase
Agreement, and nothing herein shall constitute a waiver of any rights or
remedies under the Pooling and Servicing Agreement.
20.
Capitalized terms used but not defined herein have the respective meanings
assigned thereto in the Mortgage Loan Purchase Agreement.
21.
THIS LIMITED POWER OF ATTORNEY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK.
[Signature on next page]
IN WITNESS WHEREOF, BSCMI has caused this instrument to be executed and
its corporate seal to be affixed hereto by its officer duly authorized as of
January 30, 2006.
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE, INC.
By: ______________________________
Name: ______________________________
Title: ______________________________
ACKNOWLEDGEMENT
STATE OF NEW YORK )
) ss:
COUNTY OF NEW YORK )
On this 28th day of January, 2006, before me appeared
________________________, to me personally known, who, being by me duly sworn
did say that he/she is the __________________ of Bear ▇▇▇▇▇▇▇ Commercial
Mortgage, Inc., and that the seal affixed to the foregoing instrument is the
corporate seal of said corporation, and that said instrument was signed and
sealed in behalf of said corporation by authority of its board of directors, and
said ________________________ acknowledged said instrument to be the free act
and deed of said corporation.
_____________________________________________________
Name:________________________________________________
Notary Public in and for said County and State
My Commission Expires:
_______________________________
Schedule A
Exceptions to Representations and Warranties
SCHEDULE A TO 2005 TOP 21 MLPA
Exceptions to Representations and Warranties
-------------------------------------------------------------------------------------------------------------
REP NO. LOAN NO. LOAN NAME EXPLANATION
-------------------------------------------------------------------------------------------------------------
2
Whole Loan 44429 Mervyn's Portfolio The related Mortgagor has
incurred additional mortgage
indebtedness, which is
pari-passu with the Mervyn's
Portfolio Loan. The pari-passu
portion of the Loan will be
securitized in a future
securization.
44929 SBC ▇▇▇▇▇▇▇ Estates The related Mortgagor has
incurred additional mortgage
indebtedness, which is
pari-passu with the SBC ▇▇▇▇▇▇▇
Estates Loan. The pari-passu
portion of the Loan will be
securitized in a future
securization.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ The related Mortgagor may incur
future indebtedness of up to
$14,000,000, which is pari-passu
with the Monmouth Mall Loan.
-------------------------------------------------------------------------------------------------------------
4
Lien; Valid Assignment 44429 Mervyn's Portfolio The related Mortgagor has
incurred additional mortgage
indebtedness, which is
pari-passu with the Mervyn's
Portfolio Loan. The pari-passu
portion of the Loan will be
securitized in a future
securization.
44929 SBC ▇▇▇▇▇▇▇ Estates The related Mortgagor has
incurred additional mortgage
indebtedness, which is
pari-passu with the SBC ▇▇▇▇▇▇▇
Estates Loan. The pari-passu
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
portion of the Loan will be
securitized in a future
securization.
-------------------------------------------------------------------------------------------------------------
9
No Additional Advances ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ Lender retained a funding
obligation of $14,000,000 in
connection with an earnout on
Monmouth Mall.
-------------------------------------------------------------------------------------------------------------
14
Insurance 44590 CVS Arcadia Terrorism is excluded, however,
the Tenant, CVS, is investment
grade rated and is obligated to
rebuild the Improvements
following any form of casualty
and cannot ▇▇▇▇▇ rent.
44202 Sugarcreek Plaza The Tenant, Wal-Mart, provides
terrorism coverage for their
occupancy with $100,000,000
coverage with a $1,000,000
deductible.
44714 CVS Rockwall Terrorism is excluded, however,
the Tenant, CVS, is investment
grade rated and is obligated to
rebuild the Improvements
following any form of casualty
and cannot ▇▇▇▇▇ rent.
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25
Releases of Mortgaged Property 44429 Mervyn's Portfolio A. The Loan provides for the
release of (i) any of eight
certain REA properties upon
payment of 100% of the allocated
loan amount, if certain rights
are exercised pursuant to the
REA and (ii) three years after
the closing date, one or more
properties upon payment of 115%
of the allocated loan amount
with yield maintenance and
achieving a 1.23x DSCR and 59%
LTV.
B. The Loan provides for the
release of certain outparcels.
C. The related Mortgagor may obtain
substitution of property upon (a)
the satisfaction of certain legal
and underwriting requirements
and/or (b) the payment of a release
price and prepayment consideration
in connection therewith. In
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addition, Lender shall have
received confirmation in writing
from the Rating Agencies to the
effect that such substitution will
not result in a withdrawal,
qualification or downgrade of the
respective ratings in effect
immediately prior to such
substitution for any class of
securities issued in connection
with the securitization that are
then outstanding. No more than 10
substitutions are permitted.
45519 Intown C Mortgage Loan provides for the
release of one or more
properties upon defeasance or
prepayment as applicable of 110%
of the allocated loan amount and
achieving certain debt service
coverage and LTV hurdles.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ The Loan provides that Borrower
may obtain a release of the
Expansion Parcel provide no
Expansion Earnout has occurred.
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29
Local Law Compliance 45035 Timekeeper Building The restaurant tenant has a
current public assembly permit
33 for 120 persons, but the space is
Licenses and Permits configured for 245 persons and
requires an updated certificate
of occupancy and public assembly
permit. There is a holdback to
bring the Mortgaged Property back
into compliance.
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30
Junior Liens 44429 Mervyn's Portfolio The Mortgaged Property secures a
$64,190,000 B Note that is
pari-passu with the Loan.
▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ The Mortgaged Property secures a
$98,231,280 B Note that is
pari-passu with the Loan.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ Borrower may incur an additional
$14,000,000 as a pari passu
earn-out in connection with
expansion of mall, subject to
minimum DSCR of 1.1 and maximum
LTV of 70% and other constraints
described in Loan documents.
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36 43005 Anthem Health Tenant in common interests are
Due on Sale transferable on predetermined
conditions.
44934 ▇▇▇▇▇ Fargo Indiana Tenant in common interests are
Center transferable on predetermined
conditions.
41781 Ace Hardware Interests in the Delaware
Statutory Trust borrower are
transferable on predetermined
conditions.
45519 Intown C The related Mortgagor has the
right under the Loan to incur
additional debt subject to a 80%
LTV, and 1.20x DSCR limitations
and an intercreditor agreement
acceptable to the Lender.
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38
Non-Recourse Exceptions 43473 ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇. Non-recourse provisions go to
the related Mortgagor and to
Milestone Properties, LLC, but
not to a "natural person".
43005 Anthem Health Non-recourse provisions go to
the related Mortgagor and to
Inland Real Estate Investment
Corporation, but not to a
"natural person".
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Bangor Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
44429 Mervyn's Portfolio Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
44462 NorthGate Shopping Non-recourse provisions go to
Center the related Mortgagor and to
Inland Real Estate Investment
Corporation, but not to a
"natural person".
44650 Seekonk Power Center Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
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"natural person".
44653 Lake View Tech Center Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
44934 ▇▇▇▇▇ Fargo Indiana Non-recourse provisions go to
Center the related Mortgagor and to
Inland Real Estate Investment
Corporation, but not to a
"natural person".
45042 ▇▇▇▇▇▇▇ Island Plaza Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Non-recourse provisions go to
Shopping Center the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
41781 Ace Hardware HQ Non-recourse provisions go to
the related Mortgagor and to
Inland Real Estate Investment
Corp., but not to a "natural
person".
44929 SBC ▇▇▇▇▇▇▇ Estates Non-recourse provisions go to
the related Mortgagor and to
Inland Western Retail Real
Estate Trust, Inc., but not to a
"natural person".
▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ Non-recourse provisions go to
the related Mortgagor and to
Vornado Realty LP, but not to a
"natural person".
44942 ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ Non-recourse provisions go to
the related Mortgagor and to The
Hampshire Generational Fund,
LLC, but not to a "natural
person".
44999 ▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Non-recourse provisions go to
the related Mortgagor and to The
Hampshire Generational Fund,
LLC, but not to a "natural
person".
45519 Intown C Non-recourse provisions go to
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the related Mortgagor and to
Intown Holding Company, L.L.C.,
but not to a "natural person".
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List of Mortgage Loans Subject to Secured Creditor Impaired Property
Policies [OR PLL POLICIES]
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LOAN NO. LOAN NAME
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Schedule B
List of Mortgagors that are Third-Party Beneficiaries Under Section 5.5
NONE
5-1