EXHIBIT 99.4
------------
The Class 2-A-1 Cap Contract
Exhibit 99.4
IXIS FINANCIAL PRODUCTS INC.
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▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇ / Phone: (▇▇▇) ▇▇▇-▇▇▇▇ / 6194
DATE: February 28, 2006
TO: Cap Trust,
IndyMac INDX Mortgage Loan Trust ▇▇▇▇-▇▇▇
▇/▇ ▇▇▇▇▇▇▇▇ Bank National Trust Company
▇▇▇▇ ▇▇▇▇ ▇▇. ▇▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇,
Attention: Trust Administration; IN06A2
FAX: (▇▇▇) ▇▇▇-▇▇▇▇
("Party B")
FROM: IXIS Financial Products Inc.
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▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇ / Phone: (▇▇▇) ▇▇▇-▇▇▇▇ / 6194
("Party A")
RE: Interest Rate Cap Transaction
Dear Sir or Madam:
The purpose of this letter agreement (this "Confirmation") is to confirm
the terms and conditions of the Transaction entered into between us on the
Trade Date specified below (the "Transaction").
The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. are
incorporated into this Confirmation. In the event of any inconsistency between
those definitions and provisions and this Confirmation, this Confirmation will
govern.
This Confirmation constitutes a "Confirmation" as referred to in, and
supplements, forms part of and is subject to, the ISDA Master Agreement dated
as of February 28, 2006, as amended and supplemented from time to time (the
"Agreement") between Party A and Party B. All provisions contained in the
Agreement govern this Confirmation except as expressly modified below.
1. The Cap Transaction to which this Confirmation relates is a Rate Cap
Transaction, the terms of which are as follow:
General Terms
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Trade Date: February 23, 2006
Effective Date: February 25, 2006
Termination Date: May 25, 2014, subject to adjustment in accordance with the
Following Business Day Convention
Notional Amount: See Amortization Schedule, Schedule A
Floating Amounts:
-----------------
Floating Rate Payer: Party A
Floating Rate: The greater of (a) 0% and (b) the lesser of (1) 0.845% and (2)
USD-LIBOR-BBA with a Designated Maturity of one month minus the
Strike Rate (as set forth in Schedule A).
Floating Rate Payer Period The 25th day of each month of each year, commencing on March 25,
End Dates: 2006 to and including the Termination Date, subject to adjustment
in accordance with the Following Business Day Convention.
Floating Rate Payer Early Payment, one (1) Business Day preceding each Floating Rate
Payment Dates: Payer Period End Date.
Spread: None
Floating Rate Day Actual/360
Count Fraction:
Reset Dates: The first day of each Calculation Period.
Compounding: Inapplicable
Business Days: Any day other than (i) a Saturday or a Sunday, or (ii) a day on which
banking institutions in (1) the city in which the Corporate Trust
Office is located or (2) the States of New York or California are
closed.
2. Procedural Terms:
-----------------
Calculation Agent: Party A
Offices: The Office of Party A for this Cap Transaction is New York.
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Account Details:
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Payments to Party A: CITIBANK N.A.
ABA# ▇▇▇-▇▇▇-▇▇▇
Account No.: ▇▇▇▇▇▇▇▇
A/C IXISFP
Payments to Party B: Deutsche Bank Trust Company Americas
ABA# ▇▇▇▇▇▇▇▇▇
Account# ▇▇▇▇▇▇▇▇
Account Name: NYLTD Funds Control/Stars West
Ref: IndyMac INDX 2006-AR2 (Class 2-A1 Certificates)
Please confirm that the foregoing correctly sets forth the terms and
conditions of our agreement by executing this Confirmation and returning it to
us by facsimile to:
IXIS Financial Products Inc.
(▇▇▇) ▇▇▇-▇▇▇▇ (fax)
Attn: Swap Operations
IXIS Financial Products Inc.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-----------------------------------
Authorized Signatory
By: /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
-----------------------------------
Authorized Signatory
Accepted and confirmed as of the Trade Date written above:
Cap Trust,
IndyMac INDX Mortgage Loan Trust 2006-AR2
By: Deustche Bank National Trust Company, not in its individual capacity, but
solely as Cap Trustee
By: /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
Title: Associate
SCHEDULE A to the Confirmation dated as of February 28, 2006, Amortization
Schedule: Amortization Schedule,
----------------------------- ----------------------------------- ---------------------
Calculation Period in
respect of the Payment Date
scheduled to occur on*: Notional Amount (USD) Strike Rate (%)
----------------------------- ----------------------------------- ---------------------
3/25/2006 182,180,862.86 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2006 177,557,694.49 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2006 173,349,974.16 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2006 169,369,412.82 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2006 165,474,716.19 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2006 161,664,001.16 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2006 157,935,414.09 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2006 154,286,975.71 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2006 150,717,048.78 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2006 147,223,080.06 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2007 143,802,884.32 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2007 140,451,938.44 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2007 137,157,414.74 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2007 133,920,017.39 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2007 130,752,803.83 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2007 127,654,348.90 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2007 124,623,136.01 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2007 121,657,682.50 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2007 118,756,528.82 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2007 115,918,113.52 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2007 113,141,150.27 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2007 110,423,613.64 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2008 107,763,774.29 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2008 105,158,017.38 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2008 102,596,031.98 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2008 100,078,416.60 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2008 97,615,729.06 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2008 95,206,850.02 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2008 92,850,585.90 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2008 90,545,769.95 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2008 88,291,253.55 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2008 86,085,805.41 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2008 83,928,415.56 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2008 81,817,477.65 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2009 79,751,623.57 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2009 77,727,304.05 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2009 75,736,549.85 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2009 73,773,249.91 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2009 71,853,231.73 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2009 69,973,133.34 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2009 68,034,044.40 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2009 66,060,128.32 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2009 64,133,263.56 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2009 62,576,972.01 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2009 61,070,648.76 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2009 59,600,048.98 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2010 58,162,778.44 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2010 56,757,153.37 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2010 55,376,379.21 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2010 54,021,718.85 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2010 52,690,051.23 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2010 51,390,704.94 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2010 50,123,044.83 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2010 48,886,304.07 9.445
----------------------------- ----------------------------------- ---------------------
----------------------------- ----------------------------------- ---------------------
Calculation Period in
respect of the Payment Date
scheduled to occur on*: Notional Amount (USD) Strike Rate (%)
----------------------------- ----------------------------------- ---------------------
9/25/2010 47,679,689.84 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2010 46,502,396.86 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2010 45,353,623.89 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2010 44,229,908.03 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2011 43,132,037.41 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2011 42,059,330.07 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2011 41,012,935.98 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2011 39,992,031.12 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2011 38,996,183.78 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2011 38,024,784.74 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2011 37,077,239.48 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2011 36,152,967.85 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2011 35,251,403.68 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2011 34,371,994.53 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2011 33,514,201.27 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2011 32,677,497.80 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2012 31,861,370.76 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2012 31,065,319.16 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2012 30,288,854.15 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2012 30,288,854.15 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2012 30,101,945.22 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2012 29,348,712.79 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2012 28,614,032.55 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2012 27,897,452.34 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2012 27,198,530.90 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2012 26,516,837.67 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2012 25,851,952.51 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2012 25,203,465.44 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2013 24,570,976.41 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2013 23,954,095.05 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2013 23,352,440.44 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2013 22,765,640.89 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2013 22,193,333.71 9.445
----------------------------- ----------------------------------- ---------------------
6/25/2013 21,635,164.99 9.445
----------------------------- ----------------------------------- ---------------------
7/25/2013 21,090,789.39 9.445
----------------------------- ----------------------------------- ---------------------
8/25/2013 20,559,869.96 9.445
----------------------------- ----------------------------------- ---------------------
9/25/2013 20,042,077.88 9.445
----------------------------- ----------------------------------- ---------------------
10/25/2013 19,537,092.34 9.445
----------------------------- ----------------------------------- ---------------------
11/25/2013 19,044,600.27 9.445
----------------------------- ----------------------------------- ---------------------
12/25/2013 18,564,296.20 9.445
----------------------------- ----------------------------------- ---------------------
1/25/2014 18,095,882.09 9.445
----------------------------- ----------------------------------- ---------------------
2/25/2014 17,639,067.09 9.445
----------------------------- ----------------------------------- ---------------------
3/25/2014 17,193,567.43 9.445
----------------------------- ----------------------------------- ---------------------
4/25/2014 16,759,106.21 9.445
----------------------------- ----------------------------------- ---------------------
5/25/2014 16,335,413.27 9.445
----------------------------- ----------------------------------- ---------------------