Exhibit 99.4
RBC Mortgage Loan Purchase Agreement
EXECUTION VERSION
MORTGAGE LOAN PURCHASE AGREEMENT
(RBC LOANS)
Mortgage Loan Purchase Agreement (this "Agreement"), dated as of May
1, 2007, between Royal Bank of Canada, acting through its branch located at ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ (the "Seller") and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital
I Inc. (the "Purchaser").
The Seller agrees to sell, and the Purchaser agrees to purchase,
certain mortgage loans listed on Exhibit 1 hereto (the "Mortgage Loans") as
described herein. The Purchaser will convey the Mortgage Loans to a trust (the
"Trust") created pursuant to a Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of May 1, 2007, between the Purchaser, as
depositor, Capmark Finance Inc., as CapMark Master Servicer (together with its
successors and assigns, the "Master Servicer"), Prudential Asset Resources,
Inc., as Prudential Master Servicer, ▇▇▇▇▇ Fargo Bank, N.A., as ▇▇▇▇▇ Fargo
Master Servicer, Centerline Servicing, Inc. (formerly ARCap Servicing, Inc.), as
Special Servicer, The Bank of New York Trust Company, National Association, as
Trustee, and LaSalle Bank National Association, as Paying Agent, Certificate
Registrar, Authenticating Agent and Custodian. In exchange for the Mortgage
Loans and certain other mortgage loans (the "Other Mortgage Loans") to be
purchased by the Purchaser, the Trust will issue to the Depositor pass-through
certificates to be known as ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Commercial Mortgage
Pass-Through Certificates, Series 2007-IQ14 (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-1A, Class A-2, Class A-2FL Class A-3, Class
A-AB, Class A-4, Class A-5FL, Class A-M, Class A-MFL, Class A-J, Class A-JFL,
and Class B Certificates (the "Public Certificates") will be sold by the
Purchaser to ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated, LaSalle Financial Services,
Inc., ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated, RBC Capital Markets
Corporation, ▇▇▇▇▇▇▇, Sachs & Co. and Greenwich Capital Markets, Inc.
(collectively, the "Underwriters"), pursuant to an Underwriting Agreement,
between the Purchaser and the Underwriters, dated May 18, 2007 (the
"Underwriting Agreement"), and the Class X, 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 Q, Class S, Class EI, Class R-I, Class R-II and Class R-III Certificates
(collectively, the "Private Certificates") will be sold by the Purchaser to
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated (in such capacity, the "Initial Purchaser")
pursuant to a Certificate Purchase Agreement, between the Purchaser and the
Initial Purchaser, dated May 18, 2007 (the "Certificate Purchase Agreement").
The Underwriters will offer the Public Certificates for sale publicly pursuant
to a Prospectus dated February 6, 2007, as supplemented by a Prospectus
Supplement dated May 18, 2007 (together, the "Prospectus Supplement"), and the
Initial Purchaser will offer the Private Certificates (other than the Class EI,
Class R-I, Class R-II and Class R-III Certificates) for sale in transactions
exempt from the registration requirements of the Securities Act of 1933 pursuant
to a Private Placement Memorandum, dated as of May 18, 2007 (the "Memorandum").
In consideration of the mutual agreements contained herein, the
Seller and the Purchaser hereby agree as follows:
Section 1. Agreement to Purchase. The Seller agrees to sell, and the
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 from time to time prior to the
Closing Date to reflect the actual Mortgage Loans accepted by the Purchaser
pursuant to the terms hereof. The Mortgage Loans and the Other 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 approximately $4,904,869,086. The sale of the
Mortgage Loans shall take place on May 30, 2007 or such other date as shall be
mutually acceptable to the parties hereto (the "Closing Date"). The purchase
price to be paid by the Purchaser for the Mortgage Loans shall equal the amount
set forth as such purchase price in the ▇▇▇▇ of Sale. The purchase price shall
be paid to the Seller by wire transfer in immediately available funds on the
Closing Date.
Notwithstanding anything to the contrary in this Agreement, with
respect to the Mortgage Loans originated or acquired by the Seller and subject
to defeasance, the Seller shall retain the right to designate and establish the
successor borrower and to purchase or cause the purchase on behalf of the
related borrower of the related defeasance collateral ("Seller Defeasance Rights
and Obligations"). In the event the Master Servicer receives notice of a
defeasance request with respect to a Mortgage Loan originated or acquired by the
Seller and subject to defeasance, the Master Servicer shall provide upon receipt
of such notice, written notice of such defeasance request to the Seller or its
assignee. Until such time as the Seller provides written notice to the contrary,
notice of a defeasance of a Mortgage Loan with Seller Defeasance Rights and
Obligations shall be delivered to the Seller pursuant to the notice provisions
of the Pooling and Servicing Agreement.
On the Closing Date, the 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 15), and the Trustee shall succeed to such
right, title and interest in and to the Mortgage Loans and the Purchaser's
rights under this Agreement (to the extent set forth in Section 15).
Section 2. Conveyance of Mortgage Loans. 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, the Seller does hereby transfer, assign, set over and otherwise convey
to the Purchaser, without recourse, all the right, title and interest of the
Seller, with the understanding that a Servicing Rights Purchase Agreement, dated
May 30, 2007, will be executed by the 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, the Seller shall deliver to the Custodian on behalf of the Trustee,
on behalf of the Purchaser, on or prior to the Closing Date, the Mortgage Note
(as described in clause (a) below) 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 4 in favor of the Trustee,
the Custodian, the Master Servicer and the Special Servicer to empower the
Trustee, the Custodian, the Master Servicer and, in the event of the failure or
incapacity of the Trustee, the Custodian and the applicable Master Servicer, the
Special Servicer, to submit for recording, at the expense of the 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). The Seller
agrees to reasonably cooperate with the Trustee, the Custodian, the Master
Servicer 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 that is 180 days following the delivery of
notice of such absence to the 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 Custodian shall submit such
documents for recording, at the Seller's expense, after the periods set forth
above; provided, however, the Custodian shall not submit such assignments for
recording if the Seller produces evidence that it has sent any such assignment
for recording and certifies that the Seller is awaiting its return from the
applicable recording office. In addition, not later than the 30th day following
the Closing Date, the Seller shall deliver to the Custodian on behalf of the
Trustee each of the remaining documents or instruments specified below (with
such exceptions and additional time periods as are permitted by this Section)
with respect to each Mortgage Loan (each, a "Mortgage File"). (The Seller
acknowledges that the term "without recourse" does not modify the duties of the
Seller under Section 5 hereof.)
All Mortgage Files, or portions thereof, delivered prior to the
Closing Date are to be held by the Custodian on behalf of the Trustee in escrow
on behalf of the 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:
(a) The original Mortgage Note bearing all intervening endorsements,
endorsed on its face or by allonge attached thereto in blank or endorsed "Pay to
the order of The Bank of New York Trust Company, National Association, as
Trustee for ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2007-IQ14, without recourse, representation or warranty" or
if the original Mortgage Note is not included therein, then a lost note
affidavit and indemnity, with a copy of the Mortgage Note attached thereto;
(b) 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 90th 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, the 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 Authorized Person's Certificate (as defined below) of the
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;
(c) The originals of all agreements modifying a Money Term or other
material modification, consolidation and extension agreements, if any, with
evidence of recording thereon (if applicable) 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 90th 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 the Seller together with
(i) in the case of a delay caused by the public recording office, an Authorized
Person's Certificate of the 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;
(d) An original Assignment of Mortgage for each Mortgage Loan, in
form and substance acceptable for recording (except for recording information
not yet available if the instrument being recorded has not been returned from
the applicable recording office), signed by the holder of record in blank or in
favor of "The Bank of New York Trust Company, National Association, as Trustee
for ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2007-IQ14";
(e) Originals of all intervening assignments of Mortgage, 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 the Seller,
or in the case of an original blanket intervening assignment of Mortgage
retained by the Seller, a copy thereof certified by the Seller or, if any
original intervening assignment of Mortgage has not yet been returned on or
prior to the 90th 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 Authorized
Person's Certificate of the 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;
(f) If the related Assignment of Leases is separate from the
Mortgage, the original of such Assignment of Leases with evidence of recording
thereon or certified by a title insurance company or escrow company to be a true
copy thereof; provided that if such Assignment of Leases has not been returned
on or prior to the 90th day following the Closing Date because of a delay caused
by the applicable public recording office where such Assignment of Leases has
been delivered for recordation or because such original Assignment of Leases has
been lost, the Seller shall deliver or cause to be delivered to the Trustee a
true and correct copy of such Assignment of Leases submitted for recording,
together with, (i) in the case of a delay caused by the public recording office,
an Authorized Person's Certificate (as defined below) of the Seller stating that
such Assignment of Leases has been sent to the appropriate public recording
official for recordation or (ii) in the case of an original Assignment of Leases
that has been lost after recordation, a certification by the appropriate county
recording office where such Assignment of Leases is recorded that such copy is a
true and complete copy of the original recorded Assignment of Leases, in each
case together with an original assignment of such Assignment of Leases, in
recordable form (except for recording information not yet available if the
instrument being recorded has not been returned from the applicable recording
office), signed by the holder of record in blank or in favor of "The Bank of New
York Trust Company, National Association, as Trustee for ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital
I Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-IQ14," which
assignment may be effected in the related Assignment of Mortgage;
(g) The original or a copy of each guaranty, if any, constituting
additional security for the repayment of such Mortgage Loan;
(h) The original Title Insurance Policy, or in the event such
original Title Insurance Policy has not been issued, a binder, actual
"marked-up" title commitment, pro forma policy, or an agreement to provide any
of the foregoing pursuant to binding escrow instructions executed by the title
company or its authorized agent with the original Title Insurance Policy to
follow within 180 days of the Closing Date, or a copy of any of the foregoing
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 with
the original Title Insurance Policy to follow within 180 days of the Closing
Date;
(i) (A) Copies of UCC financing statements (together with all
assignments thereof) filed in connection with a Mortgage Loan and (B) UCC-2 or
UCC-3 financing statements assigning such UCC financing statements to the
Trustee delivered in connection with the Mortgage Loan;
(j) 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.
(k) Copies of any loan agreements, lock-box agreements and
intercreditor agreements, if any, related to any Mortgage Loan;
(l) Either (A) the original of each letter of credit, if any,
constituting additional collateral for such Mortgage Loan (other than letters of
credit representing tenant security deposits which have been collaterally
assigned to the lender), which shall be assigned and delivered to the Trustee
(and delivered to the Custodian on the Trustee's behalf) on behalf of the Trust
with a copy to be held by the Master Servicer, and applied, drawn, reduced or
released in accordance with documents evidencing or securing the applicable
Mortgage Loan and the Pooling and Servicing Agreement or (B) the original of
each letter of credit, if any, constituting additional collateral for such
Mortgage Loan (other than letters of credit representing tenant security
deposits which have been collaterally assigned to the lender), which shall be
held by the Master Servicer on behalf of the Trustee, with a copy to be held by
the Custodian on behalf of the Trustee, and applied, drawn, reduced or released
in accordance with documents evidencing or securing the applicable Mortgage Loan
and the Pooling and Servicing Agreement (it being understood that the Seller has
agreed (a) that the proceeds of such letter of credit belong to the Trust, (b)
to 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 Custodian on behalf
of the Trustee) and (c) to indemnify the Trust for any liabilities, charges,
costs, fees or other expenses accruing from the failure of the Seller to assign
the letter of credit hereunder). In the case of clause (B) above, any letter of
credit held by the Master Servicer shall be held in its capacity as agent of the
Trust, and if the Master Servicer sells its rights to service the applicable
Mortgage Loan, the 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 Master
Servicer. The Master Servicer has agreed to indemnify the Trust for any loss
caused by the ineffectiveness of such assignment;
(m) The original or a copy of the environmental indemnity agreement,
if any, related to any Mortgage Loan;
(n) Copies of third-party management agreements, if any, 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;
(o) The original of any Environmental Insurance Policy or, if the
original is held by the related Mortgagor, a copy thereof;
(p) A copy of any affidavit and indemnification agreement in favor
of the lender;
(q) With respect to hospitality properties, a copy of any franchise
agreement, franchise comfort letter and applicable assignment or transfer
documents;
"Authorized Person'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, any Assistant Treasurer or any other person duly authorized to
certify matters relating to the Seller's U.S. commercial mortgage-backed
securities business.
The Assignment of Mortgage, intervening assignments of Mortgage and
assignment of Assignment of Leases referred to in clauses (d), (e) and (f) 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, the 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 in blank or 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 statements may 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 the Seller to the Purchaser and from the
Purchaser to the Trustee on behalf of the Certificateholders.
If the Seller cannot deliver, or cause to be delivered, as to any
Mortgage Loan, any of the documents and/or instruments referred to in clauses
(b), (c), (e) or (f), with evidence of recording thereon, because of a delay
caused by the public recording office where such document or instrument has been
delivered for recordation within such 90-day period, but the Seller delivers a
photocopy thereof (to the extent available, certified by the appropriate county
recorder's office to be a true and complete copy of the original thereof
submitted for recording or, if such certification is not available, together
with an Authorized Person's Certificate of the Seller stating that such document
has been sent to the appropriate public recording official for recordation), to
the Custodian on behalf of the Trustee within such 90-day period, the Seller
shall then deliver within 180 days after the Closing Date the recorded document
(or within such longer period after the Closing Date as the Custodian on behalf
of the Trustee may consent to, which consent shall not be withheld so long as
the Seller is, as certified in writing to the Custodian on behalf of the Trustee
no less often than monthly, in good faith attempting to obtain from the
appropriate county recorder's office such original or photocopy).
The Trustee, as assignee or transferee of the 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 the
Seller.
Within 90 days following the Closing Date, the Seller shall deliver
and the Purchaser, the Custodian on behalf of the Trustee or the agents of
either may submit or cause to be submitted for recordation at the expense of the
Seller, in the appropriate public office for real property records, each
assignment referred to in clauses (d) and (f)(ii) above (with recording
information in blank if such information is not yet available). Within 15 days
following the Closing Date, the Seller shall deliver and the Purchaser, the
Custodian on behalf of the Trustee or the agents of either may submit or cause
to be submitted for filing, at the expense of the Seller, in the appropriate
public office for Uniform Commercial Code financing statements, the assignment
referred to in clause (i) above. If any such document or instrument is lost or
returned unrecorded or unfiled, as the case may be, because of a defect therein,
the Seller shall prepare a substitute therefor or cure such defect, and the
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.
As to each Mortgage Loan secured by a Mortgaged Property with
respect to which the related Mortgagor has entered into a franchise agreement
and each Mortgage Loan secured by a Mortgaged Property with respect to which a
letter of credit is in place, the Seller shall provide a notice on or prior to
the date that is thirty (30) days after the Closing Date to the franchisor or
the issuing financial institution, as applicable, of the transfer of such
Mortgage Loan to the Trust pursuant to the Pooling and Servicing Agreement, and
inform such parties that any notices to the Mortgagor's lender pursuant to such
franchise agreement or letter of credit should thereafter be forwarded to the
Master Servicer and, with respect to each franchise agreement, provide a
franchise comfort letter to the franchisor on or prior to the date that is
thirty (30) days after the Closing Date. After the Closing Date, with respect to
any letter of credit that has not yet been assigned to the Trust, upon the
written request of the Master Servicer, the Seller will draw on such letter of
credit as directed by the Master Servicer in such notice to the extent the
Seller has the right to do so.
Documents that are in the possession of the Seller, its agents or
its subcontractors that relate to the servicing of any Mortgage Loans and that
are not required to be a part of the Mortgage File and are reasonably necessary
for the ongoing administration and/or servicing of the applicable Mortgage Loan
(the "Servicing File") shall be delivered by the Seller to or at the direction
of the Master Servicer, on behalf of the Purchaser, on or prior to the 75th day
after the Closing Date.
The Servicing File shall include, to the extent required to be (and
actually) delivered to the 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 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
Mortgagor/sponsor and any guarantors, any letters of credit, any intercreditor
agreements and any Environmental Insurance Policies; provided, however, the
Seller shall not be required to deliver any draft documents, attorney-client
privileged communications, internal correspondence or credit analysis. Each of
the foregoing items shall be delivered by the Seller in electronic form, to the
extent such document is available in such form and such form is reasonably
acceptable to the Master Servicer.
Upon the sale of the Mortgage Loans by the Seller to the 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 the 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 the
Seller shall immediately vest in the Purchaser and its assigns, and shall be
delivered promptly by the Seller to or on behalf of either the Custodian (on
behalf of the Trustee) or the Master Servicer as set forth herein, subject to
the requirements of the Primary Servicing Agreement. The Seller's and
Purchaser's records shall reflect the transfer of each Mortgage Loan from the
Seller to the Purchaser and its assigns as a sale.
It is the express intent of the parties hereto that the conveyance
of the Mortgage Loans and related property to the Purchaser by the Seller as
provided in this Section 2 be, and be construed as, an absolute sale of the
Mortgage Loans and related property (other than the servicing rights thereto).
It is, further, not the intention of the parties that such conveyance be deemed
a pledge of the Mortgage Loans and related property by the Seller to the
Purchaser to secure a debt or other obligation of the 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 the 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:
(i) this Agreement shall be deemed to be a security agreement; and
(ii) the conveyance provided for in this Section 2 shall be deemed
to be a grant by the Seller to the Purchaser of a security interest in all
of the 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 (other than the servicing rights thereto), 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.
The possession by the 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 9-305 and 9-115
thereof) as in force in the relevant jurisdiction. Notwithstanding the
foregoing, the Seller makes no representation or warranty as to the perfection
of any such security interest.
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, the
Purchaser or its designee, as applicable, for the purpose of perfecting such
security interest under applicable law.
The 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, the 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, the 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.
Notwithstanding anything to the contrary contained herein, and
subject to Section 2(a), the Purchaser shall not be required to purchase any
Mortgage Loan as to which any Mortgage Note (endorsed as described in clause (a)
above) or lost note affidavit and indemnity 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 the 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 the Purchaser's or its successors' and assigns' rights in respect
thereof pursuant to Section 5.
Section 3. Examination of Mortgage Files and Due Diligence Review.
The Seller shall (i) deliver to the Purchaser on or before the Closing Date a
diskette acceptable to the Purchaser that contains such information about the
Mortgage Loans as may be reasonably requested by the Purchaser, (ii) deliver to
the Purchaser investor files (collectively the "Collateral Information") with
respect to the assets proposed to be included in the Mortgage Pool and made
available at the Purchaser's headquarters in New York, and (iii) otherwise
reasonably cooperate with the 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 the 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 the Purchaser or the Trustee to cause the
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 of this Agreement.
On or prior to the Closing Date, the Seller shall allow
representatives of any of the Purchaser, each Underwriter, the Initial
Purchaser, the Trustee, the Custodian, the Special Servicer and each Rating
Agency to examine and audit all books, records and files pertaining to the
Mortgage Loans, the Seller's underwriting procedures and the 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 the
Seller during normal business hours and shall not be conducted in a manner that
is disruptive to the Seller's normal business operations upon reasonable prior
advance notice. In the course of such examinations and audits, the Seller will
make available to such representatives of any of the Purchaser, each
Underwriter, the Initial Purchaser, the Trustee, the Custodian, 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
the Seller shall cooperate fully with any such examination and audit in all
material respects. On or prior to the Closing Date, the Seller shall provide the
Purchaser with all material information regarding the Seller's financial
condition and access to knowledgeable financial or accounting officers for the
purpose of answering questions with respect to the Seller's financial condition,
financial statements as provided to the Purchaser or other developments
affecting the Seller's ability to consummate the transactions contemplated
hereby or otherwise affecting the Seller in any material respect. Within 45 days
after the Closing Date, the Seller shall provide the Master Servicer with any
additional information identified by the Master Servicer, as necessary to
complete the CMSA Property File, to the extent that such information is
available.
The Purchaser may exercise any of its rights hereunder through one
or more designees or agents; provided the Purchaser has provided the Seller with
prior notice of the identity of such designee or agent.
The Purchaser shall keep confidential any information regarding the
Seller and the Mortgage Loans that has been delivered into the 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 the Purchaser is required by law or court order to
disclose such information. If the Purchaser is required to disclose in the
Memorandum or the Prospectus Supplement confidential information regarding the
Seller as described in the preceding sentence, the Purchaser shall provide to
the Seller a copy of the proposed form of such disclosure prior to making such
disclosure and the Seller shall promptly, and in any event within two Business
Days, notify the Purchaser of any inaccuracies therein, in which case the
Purchaser shall modify such form in a manner that corrects such inaccuracies. If
the Purchaser is required by law or court order to disclose confidential
information regarding the Seller as described in the second preceding sentence,
the Purchaser shall notify the Seller and cooperate in the 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, the Purchaser is compelled as a matter of
law to disclose such information, the Purchaser shall, prior to making such
disclosure, advise and consult with the Seller and its counsel as to such
disclosure and the nature and wording of such disclosure and the Purchaser shall
use reasonable efforts to obtain confidential treatment therefor.
Notwithstanding the foregoing, if reasonably advised by counsel that the
Purchaser is required by a regulatory agency or court order to make such
disclosure immediately, then the Purchaser shall be permitted to make such
disclosure without prior review by the Seller.
Section 4. Representations and Warranties of the Seller and the
Purchaser.
(a) To induce the Purchaser to enter into this Agreement, the Seller
hereby makes for the benefit of the 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 the Purchaser as of the date hereof that:
(i) The Seller is duly organized and is validly existing as a
Canadian chartered bank acting through its branch located at ▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ , is in good standing and has the
requisite power and authority and legal right to own the Mortgage Loans
and to transfer and convey the Mortgage Loans to the 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.
(ii) This Agreement has been duly and validly authorized, executed
and delivered by the Seller, and assuming the due authorization, execution
and delivery hereof by the Purchaser, this Agreement constitutes the
valid, legal and binding agreement of the 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.
(iii) 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 the Seller with this Agreement, or the
consummation by the Seller of any transaction contemplated hereby, other
than (1) such qualifications as may be required under state securities or
blue sky laws, (2) the filing or recording of financing statements,
instruments of assignment and other similar documents necessary in
connection with the Seller's sale of the Mortgage Loans to the Purchaser,
(3) such consents, approvals, authorizations, qualifications,
registrations, filings or notices as have been obtained and (4) where the
lack of such consent, approval, authorization, qualification,
registration, filing or notice would not have a material adverse effect on
the performance by the Seller under this Agreement.
(iv) Neither the transfer of the Mortgage Loans to the Purchaser,
nor the execution, delivery or performance of this Agreement by the
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 the Seller's articles of organization or by-laws, (B) any
term or provision of any material agreement, contract, instrument or
indenture to which the 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 (iii), any law, rule,
regulation, order, judgment, writ, injunction or decree of any court or
governmental authority having jurisdiction over the 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 the 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 the Seller, or in
any material impairment of the right or ability of the Seller to carry on
its business substantially as now conducted.
(v) There are no actions or proceedings against, or investigations
of, the Seller pending or, to the Seller's knowledge, threatened in
writing against the 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 the
Purchaser or the execution or delivery by, or enforceability against, the
Seller of this Agreement or have an effect on the financial condition of
the Seller that would materially and adversely affect the ability of the
Seller to perform its obligations under this Agreement.
(vi) On the Closing Date, the sale of the Mortgage Loans pursuant to
this Agreement will effect a transfer by the Seller of all of its right,
title and interest in and to the Mortgage Loans to the Purchaser.
(vii) To the Seller's knowledge, the Loan Seller Information (as
defined in that certain indemnification agreement, dated as of May 18,
2007, between the Seller, the Purchaser, the Underwriters and the Initial
Purchaser (the "Indemnification Agreement")) contained in the Disclosure
Information (as defined in the Indemnification Agreement) taken together
as a whole, the Memorandum and the Prospectus Supplement as of the Time of
Sale (as defined in the Indemnification Agreement) (i) 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 and (ii) (other
than the Memorandum) complies with the requirements of and contains all of
the applicable information required by Regulation AB (as defined in the
Indemnification Agreement).
To induce the Purchaser to enter into this Agreement, the Seller
hereby covenants that the foregoing representations and warranties and those set
forth on Exhibit 2 hereto 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,
provided that any representations and warranties made as of a specified date
shall be true and correct in all material respects as of such specified date.
Each of the representations, warranties and covenants made by the
Seller pursuant to this Section 4(a) 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.
(b) To induce the Seller to enter into this Agreement, the Purchaser
hereby represents and warrants to the Seller as of the date hereof:
(i) The 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.
(ii) The 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. The
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 the Seller, constitutes the valid and binding
obligation of the 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.
(iii) 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 the Purchaser with this Agreement, or the
consummation by the Purchaser of any transaction contemplated hereby that
has not been obtained or made by the Purchaser.
(iv) Neither the purchase of the Mortgage Loans nor the execution,
delivery and performance of this Agreement by the Purchaser will violate
the 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 the Purchaser is a
party or that may be applicable to the Purchaser or its assets.
(v) The 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, injunction, order or
decree of any court, or order or regulation of any federal, state or
municipal government agency having jurisdiction over the Purchaser or its
assets, which violation could materially and adversely affect the
condition (financial or otherwise) or the operation of the Purchaser or
its assets or could materially and adversely affect its ability to perform
its obligations and duties hereunder.
(vi) There are no actions or proceedings against, or investigations
of, the Purchaser pending or, to the Purchaser's knowledge, threatened
against the 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 the Purchaser that would
materially and adversely affect the ability of the Purchaser to perform
its obligation under this Agreement.
(vii) The Purchaser has not dealt with any broker, investment
banker, agent or other person, other than the Seller, the Underwriters,
the Initial Purchaser 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 the Seller to enter into this Agreement, the 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 the Purchaser
pursuant to this Section 4(b) shall survive the purchase of the Mortgage Loans.
Section 5. Remedies Upon Breach of Representations and Warranties
Made by the Seller.
(a) It is hereby acknowledged that the Seller shall make for the
benefit of the Trustee on behalf of the holders of the Certificates, by way of
the 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).
(b) It is hereby further acknowledged that if any document required
to be delivered to the Custodian on behalf of the Trustee pursuant to Section 2
is not delivered as and when required (and including the expiration of any grace
or cure period), is 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 the 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 such defect or breach, either (i) materially and adversely affects the
interests of the holders of the Certificates in the related Mortgage Loan, or
(ii) both (A) the document 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 (such a document defect described
in the preceding clause (i) or (ii), a "Material Document Defect" and such a
breach described in the preceding clause (i) or (ii) a "Material Breach"), the
party discovering such Material Document Defect or Material Breach shall
promptly notify, in writing, the other party; provided that any breach of the
representation and warranty contained in paragraph (38) 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 at
the time of origination 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 becoming aware of any such Material Document Defect or Material
Breach, the Master Servicer shall, and the Special Servicer may, request that
the Seller, not later than 90 days from the 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 the Seller is diligently attempting to effect such correction
or cure, as certified by the Seller in an Authorized Person'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, at the end of the initial 90-day period, 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 the 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 the Seller pursuant to Section 2.2
of the Pooling and Servicing Agreement or otherwise nor possession of such
certification or schedule by the Seller shall, in and of itself, constitute
delivery of notice of any Material Document Defect or knowledge or awareness by
the Seller of any Material Document Defect listed therein.
The Seller hereby covenants and agrees that, if any such Material
Document Defect or Material Breach cannot be corrected or cured in all material
aspects within the above cure periods, the Seller shall, on or before the
termination of such cure periods, either (i) repurchase the affected Mortgage
Loan or REO Mortgage Loan from the Purchaser or its assignee at the Purchase
Price as defined in the Pooling and Servicing Agreement, or (ii) if within the
two-year period commencing on the Closing Date, 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,
such repurchase or substitution must occur within 90 days from the earlier of
the date the Seller discovered or was notified of the breach or defect. The
Seller agrees that any substitution shall be completed in accordance with the
terms and conditions of the Pooling and Servicing Agreement.
If (i) a Mortgage Loan is to be repurchased or replaced in
connection with a Material Document Defect or Material Breach as contemplated
above, (ii) such Mortgage Loan is cross-collateralized and cross-defaulted with
one or more other Mortgage Loans in the Trust and (iii) the applicable document
defect or breach does not constitute a Material Document Defect or Material
Breach, as the case may be, as to such other 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 other Mortgage Loan for purposes of the
above provisions, and the Seller shall be obligated to repurchase or replace
each such other Mortgage Loan in accordance with the provisions above, unless,
in the case of such breach or document defect, both of the following conditions
would be satisfied if the Seller were to repurchase or replace only those
Mortgage Loans as to which a Material Breach had occurred without regard to this
paragraph (the "Affected Loan(s)"): (1) 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 (determined as
provided in the definition of Debt Service Coverage Ratio in the Pooling and
Servicing Agreement, except that net cash flow for such four calendar quarters,
rather than year-end, shall be used) is equal to the greater of (x) the debt
service coverage ratio for all such Mortgage Loans (including the Affected
Loan(s)) set forth under the heading "NCF DSCR" in Appendix II to the Final
Prospectus Supplement and (y) 1.25x, and (2) the Loan-to-Value Ratio for all
such other Mortgage Loans (excluding the Affected Loan(s)) is not greater than
the lesser of (x) the current loan-to-value ratio for all such Mortgage Loans
(including the Affected Loan(s)) set forth under the heading "Cut-Off Date LTV"
in Appendix II to the Final Prospectus Supplement and (y) 75%. The determination
of the Master Servicer as to whether either of the conditions set forth above
has been satisfied shall be conclusive and binding in the absence of manifest
error. The Master Servicer will be entitled to cause, or direct the Seller to
cause, to be delivered to the Master Servicer at the Seller's expense (i) an
Appraisal of any or all of the related Mortgaged Properties for purposes of
determining whether the condition set forth in clause (2) above has been
satisfied, in each case at the expense of the Seller if the scope and cost of
the Appraisal is approved by the Seller (such approval not to be unreasonably
withheld) and (ii) an Opinion of Counsel that not requiring the repurchase of
each such Cross-Collateralized Loan will not result in an Adverse REMIC Event.
With respect to any Mortgage Loan that is cross-defaulted and/or
cross-collateralized with any other Mortgage Loan conveyed hereunder, to the
extent that the Seller is required to repurchase or substitute for such Mortgage
Loan (each, a "Repurchased Loan") in the manner prescribed above while the
Trustee (as assignee of the Purchaser) continues to hold any other Mortgage Loan
that is cross-collateralized and/or cross-defaulted (each, a
"Cross-Collateralized Loan") with such Repurchased Loan, the Seller and the
Purchaser hereby agree to modify, prior to such repurchase or substitution, the
related Mortgage Loan documents in a manner such that such affected Repurchased
Loan, on the one hand, and any related Crossed-Collateralized Loans held by the
Trustee, on the other, would no longer be cross-defaulted or
cross-collateralized with one another; provided that the Seller shall have
furnished the Trustee, at the expense of the Seller, a nondisqualification
opinion that such modification shall not cause an Adverse REMIC Event; provided,
further, that if such nondisqualification opinion cannot be furnished, the
Seller and the Purchaser agree that such repurchase or substitution of only the
Repurchased Loan, notwithstanding anything to the contrary herein, shall not be
permitted and the Seller shall repurchase or substitute for the Repurchased Loan
and all related Crossed-Collateralized Loans. Any reserve or other cash
collateral or letters of credit securing the Cross-Collateralized Loans shall be
allocated between such Mortgage Loans in accordance with the Mortgage Loan
documents. All other terms of the Mortgage Loans shall remain in full force and
effect, without any modification thereof.
Upon occurrence (and after any applicable cure or grace period), 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: (i) the absence from the Mortgage File of the
original signed Mortgage Note, unless the Mortgage File contains a signed lost
note affidavit and indemnity and a copy of the Mortgage Note; (ii) the absence
from the Mortgage File of the item called for by paragraph (b) of the definition
of Mortgage File; or (iii) the absence from the Mortgage File of the item called
for by paragraph (h) of the definition of Mortgage File. 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 the Seller for the
cure of the Material Document Defect or repurchase or replacement of the related
Mortgage Loan.
If the 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 Loan from the Trust or (iii) to replace such Mortgage
Loan with a Qualifying Substitute Mortgage Loan, then provided that (x) the
period of time provided for the Seller to correct, repurchase or cure has
expired and (y) 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 Section 9.5, Section 9.12,
Section 9.15 and Section 9.36, as applicable, of the Pooling and Servicing
Agreement, while pursuing the repurchase claim. The Seller acknowledges and
agrees that any modification of the Mortgage Loan pursuant to such a work-out
shall not constitute a defense to any repurchase claim nor shall such
modification or work-out change the Purchase Price due from the Seller for any
repurchase claim. Any sale of the Mortgage Loan, or foreclosure upon such
Mortgage Loan and sale of the REO Property, to a Person other than the Seller
shall be without (i) recourse of any kind (either express or implied) by such
Person against the Seller and (ii) representation or warranty of any kind
(either express or implied) by the Seller to or for the benefit of such Person.
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
the Seller for repurchase of the REO Mortgage Loan or REO Property. In such an
event, the Master Servicer or Special Servicer, as applicable, shall be required
to notify the Seller of the discovery of the Material Document Defect or
Material Breach and the Seller shall be required to follow the procedures set
forth in this Agreement to correct or cure such Material Document Defect or
Material Breach or purchase the REO Property at the Purchase Price. If the
Seller fails to correct or cure the Material Document Defect or Material Breach
or purchase the REO Property, then the provisions above regarding notice of
offers related to such REO Property and the Seller's right to purchase such REO
Property shall apply. If a court of competent jurisdiction issues a final order
that the Seller is or was obligated to repurchase the related Mortgage Loan or
REO Mortgage Loan or the Seller otherwise accepts liability, then, after the
expiration of any applicable appeal period, but in no event later than the
termination of the Trust pursuant to Section 9.30 of the Pooling and Servicing
Agreement, the Seller will be obligated to pay to the Trust the difference
between any Liquidation Proceeds received upon such liquidation (including those
arising from any sale to the Seller) and the Purchase Price; provided that the
prevailing party in such action shall be entitled to recover all costs, fees and
expenses (including reasonable attorneys' fees) related thereto.
In connection with any liquidation or sale of a Mortgage Loan or REO
Property as described above, the Special Servicer will not receive a Liquidation
Fee in connection with such liquidation or sale or any portion of the Work-Out
Fee that accrues after the Seller receives notice of a Material Document Defect
or Material Breach until a final determination has been made, as set forth in
the prior paragraph, as to whether the Seller is or was obligated to repurchase
such related Mortgage Loan or REO Property. Upon such determination, the Special
Servicer will be entitled: (i) with respect to a determination that the Seller
is or was obligated to repurchase, to collect a Liquidation Fee, if due in
accordance with the definition thereof, based upon the full Purchase Price of
the related Mortgage Loan or REO Property, with such Liquidation Fee payable by
the Seller or (ii) with respect to a determination that Seller is not or was not
obligated to repurchase (or the Trust decides that it will no longer pursue a
claim against the Seller for repurchase), (A) to collect a Liquidation Fee based
upon the Liquidation Proceeds as received upon the actual sale or liquidation of
such Mortgage Loan or REO Property, and (B) to collect any accrued and unpaid
Work-Out Fee, based on amounts that were collected for as long as the related
Mortgage Loan was a Rehabilitated Mortgage Loan, in each case with such amount
to be paid from amounts in the Certificate Account.
The obligations of the Seller set forth in this Section 5(b) to cure
a Material Document Defect or a Material Breach or repurchase or replace a
defective Mortgage Loan constitute the sole remedies of the 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 the Purchaser's rights or remedies upon breach of any other
representation or warranty or covenant by the Seller set forth in this Agreement
(other than those set forth in Exhibit 2).
Notwithstanding the foregoing, in the event that there is a breach
of the representation and warranty set forth in paragraph 41 of Exhibit 2
attached hereto because the underlying loan documents do not provide for the
payment by the Mortgagor of reasonable costs and expenses associated with the
defeasance or assumption of a Mortgage Loan by the Mortgagor, the Seller hereby
covenants and agrees to pay such reasonable costs and expenses, to the extent an
amount is due and not paid by the related Mortgagor. The parties hereto
acknowledge that the payment of such reasonable costs and expenses shall be the
Seller's sole obligation with respect to the breaches discussed in the previous
sentence. The Seller shall have no obligation to pay for any of the foregoing
costs if the applicable Mortgagor has an obligation to pay for such costs.
The Seller hereby agrees that it will pay for any expense incurred
by the applicable Master Servicer or the Special Servicer, as applicable, in
connection with modifying a Mortgage Loan pursuant to Section 2.3 of the Pooling
and Servicing Agreement in order for such Mortgage Loan to be a "qualified
substitute mortgage loan" within the meaning of the Treasury Regulations
promulgated under the Code. Upon a breach of the representation and warranty set
forth in paragraph 37 of Exhibit 2 attached hereto, if such Mortgage Loan is
modified so that it becomes a "qualified substitute mortgage loan", such breach
will be cured and the Seller will not be obligated to repurchase or otherwise
remedy such breach.
(c) The Pooling and Servicing Agreement shall provide that the
Trustee (or the applicable Master Servicer or the Special Servicer on its
behalf) shall give written notice within three Business Days to the Seller of
its discovery of any Material Document Defect or Material Breach and prompt
written notice to the Seller in the event that any Mortgage Loan becomes a
Specially Serviced Mortgage Loan (as defined in the Pooling and Servicing
Agreement).
(d) If the Seller repurchases any Mortgage Loan pursuant to this
Section 5, the Purchaser or its assignee, following receipt by the Trustee of
the Purchase Price therefor, promptly shall deliver or cause to be delivered to
the 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 the Seller in the same
manner such that the Loan 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.
Section 6. Closing. The closing of the sale of the Mortgage Loans
shall be held at the offices of Cadwalader, ▇▇▇▇▇▇▇▇▇▇ & ▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇ at 9:00 a.m., New York time, on the Closing
Date.
The obligation of the Seller and the Purchaser to close shall be
subject to the satisfaction of each of the following conditions on or prior to
the Closing Date:
(a) All of the representations and warranties of the Seller and the
Purchaser specified in Section 4 of this Agreement (including, without
limitation, the representations and warranties set forth on Exhibit 2 to this
Agreement) shall be true and correct as of 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.
(b) All Closing Documents specified in Section 7 of this Agreement,
in such forms as are agreed upon and reasonably acceptable to the Seller or the
Purchaser, as applicable, shall be duly executed and delivered by all
signatories as required pursuant to the respective terms thereof.
(c) The Seller shall have delivered and released to the Purchaser or
its designee all documents required to be delivered to the Purchaser as of the
Closing Date pursuant to Section 2 of this Agreement.
(d) The result of the examination and audit performed by the
Purchaser and its affiliates pursuant to Section 3 hereof shall be satisfactory
to the Purchaser and its affiliates in their sole determination and the parties
shall have agreed to the form and contents of the Loan Seller Information (as
defined in the Indemnification Agreement) to be disclosed in the Memorandum and
the Prospectus Supplement.
(e) 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
the Seller and the 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.
(f) The Seller shall have paid all fees and expenses payable by it
to the Purchaser pursuant to Section 8 hereof.
(g) 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.
(h) No Underwriter shall have terminated the Underwriting Agreement
and the Initial Purchaser shall not have terminated the Certificate Purchase
Agreement, and neither the Underwriters nor the Initial Purchaser shall have
suspended, delayed or otherwise cancelled the Closing Date.
(i) The Seller shall have received the purchase price for the
Mortgage Loans pursuant to Section 1 hereof.
Each party agrees to use its best efforts to perform its respective
obligations hereunder in a manner that will enable the Purchaser to purchase the
Mortgage Loans on the Closing Date.
Section 7. Closing Documents. The Closing Documents shall consist of
the following:
(a) This Agreement duly executed by the Purchaser and the Seller.
(b) A certificate of the Seller, executed by a duly authorized
officer of the Seller and dated the Closing Date, and upon which the Purchaser
and its successors and assigns may rely, to the effect that: (i) the
representations and warranties of the 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) the 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.
(c) True, complete and correct copies of the Seller's articles of
organization and by-laws.
(d) A certificate of confirmation for the Seller issued by Canada's
Office of the Superintendent of Financial Institutions and a certificate of
licensing of the Seller issued by the Comptroller of the Currency of the United
States dated not earlier than 30 days prior to the Closing Date.
(e) A certificate of an Authorized Person, dated the Closing Date,
and upon which the Purchaser may rely, to the effect that each individual who,
as an officer or representative of the 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.
(f) An opinion of counsel (which, other than as to the opinion
described in paragraph (vi) below, may be in-house counsel) to the Seller, dated
the Closing Date, substantially to the effect of the following (with such
changes and modifications as the Purchaser may approve and subject to such
counsel's reasonable qualifications):
(i) The Seller is validly existing under Canadian law and has full
corporate power and authority to enter into and perform its obligations
under this Agreement.
(ii) This Agreement has been duly authorized, executed and delivered
by the Seller.
(iii) No consent, approval, authorization or order of any federal
court or governmental agency or body is required for the consummation by
the Seller of the transactions contemplated by the terms of this Agreement
except any approvals as have been obtained.
(iv) Neither the execution, delivery or performance of this
Agreement by the Seller, nor the consummation by the 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 the 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 the 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 the 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 the 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 the Seller, or in
any material impairment of the right or ability of the Seller to carry on
its business substantially as now conducted.
(v) To his or her knowledge, there are no legal or governmental
actions, investigations or proceedings pending to which the Seller is a
party, or threatened against the Seller, (a) asserting the invalidity of
this Agreement or (b) which materially and adversely affect the
performance by the Seller of its obligations under, or the validity or
enforceability of, this Agreement.
(vi) This Agreement is a valid, legal and binding agreement of the
Seller, enforceable against the 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 laws of the states thereof, and the banking laws of Canada, and the laws of
the provinces and territories thereof, as applicable.
(g) Such other opinions of counsel as any Rating Agency may request
in connection with the sale of the Mortgage Loans by the Seller to the Purchaser
or the Seller's execution and delivery of, or performance under, this Agreement.
(h) A letter from Deloitte & Touche LLP, certified public
accountants, dated May 18, 2007, 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 the Seller.
(i) Such further certificates, opinions and documents as the
Purchaser may reasonably request.
(j) An officer's certificate of the Purchaser, dated as of the
Closing Date, with the resolutions of the Purchaser authorizing the transactions
described herein attached thereto, together with certified copies of the
charter, by-laws.
(k) Such other certificates of the Purchaser's officers or others
and such other documents to evidence fulfillment of the conditions set forth in
this Agreement as the Seller or its counsel may reasonably request.
(l) An executed ▇▇▇▇ of Sale in the form attached hereto as
Exhibit 3.
Section 8. Costs. The Seller shall pay the Purchaser the costs and
expenses as agreed upon by the Seller and the Purchaser in a separate Letter of
Understanding dated May 18, 2007.
Section 9. Exchange Act Reporting Information. The Seller hereby
agrees to deliver to the Purchaser and the Trustee any disclosure information
relating to any event specifically related to the Seller reasonably determined
in good faith by the Purchaser as required to be reported on Form 8-K, Form 10-D
or Form 10-K by the Trust (in formatting reasonably appropriate for inclusion in
such form), including, without limitation, the disclosure required under Items
1117 and 1119 of Regulation AB and Item 1.03 to Form 8-K. The Seller shall use
its best efforts to deliver proposed disclosure language relating to any event
described under Items 1117 and 1119 of Regulation AB and Item 1.03 to Form 8-K
to the Trustee and the Purchaser within one Business Day and in any event no
later than two Business Days of the Seller becoming aware of such event and
shall provide disclosure relating to any other event reasonably determined by
the Purchaser as required to be disclosed on Form 8-K, Form 10-D or Form 10-K
within two Business Days following the Purchaser's request for such disclosure
language. The obligation of the Seller to provide the above-referenced
disclosure materials will terminate upon notice or other written confirmation
from the Purchaser or the Trustee that the Trustee has filed a Form 15 with
respect to the Trust as to that fiscal year in accordance with Section 13.8 of
the Pooling and Servicing Agreement or the reporting requirements with respect
to the Trust under the Securities Exchange Act of 1934, as amended, have
otherwise been automatically suspended. The Seller hereby acknowledges that the
information to be provided by it pursuant to this Section will be used in the
preparation of reports meeting the reporting requirements of the Trust under
Section 13(a) and/or Section 15(d) of the Securities Exchange Act of 1934, as
amended.
Section 10. 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 the Purchaser, addressed to ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I
Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇ ▇▇▇▇▇▇, with a
copy to ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ (or such other address as may hereafter be furnished in
writing by the Purchaser), or (ii) if to the Seller, addressed to the Seller at
Royal Bank of Canada, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇,
Attention: ▇▇▇▇ ▇▇▇▇▇▇▇, facsimile number (▇▇▇) ▇▇▇-▇▇▇▇, with a copy to Seller
at ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇ ▇▇▇▇▇▇,
facsimile number (▇▇▇)▇▇▇-▇▇▇▇.
Section 11. 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 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 which prohibits or renders void or
unenforceable any provision hereof.
Section 12. Further Assurances. The Seller and the 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.
Section 13. 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.
Section 14. 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.
Section 15. Benefits of Mortgage Loan Purchase Agreement. This
Agreement shall inure to the benefit of and shall be binding upon the Seller,
the 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 (a) each Underwriter shall be a
third party beneficiary of the Seller's representations and warranties set forth
in Section 4(a)(vii) and (b) the rights and obligations of the Purchaser
pursuant to Sections 2, 4(a) (other than clause (vii)), 5, 11 and 12 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 the 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.
Section 16. 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 the Seller under this Agreement shall not be assigned
by the Seller without the prior written consent of the Purchaser, except that
any person into which the Seller may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Seller is a party, or any person succeeding to the entire business of the Seller
shall be the successor to the Seller hereunder.
Section 17. 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, 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.
IN WITNESS WHEREOF, the Purchaser and the Seller have caused this
Agreement to be executed by their respective duly authorized officers as of the
date first above written.
ROYAL BANK OF CANADA
By: //s// ▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇
Title: Authorized Signatory
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By: //s// ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-----------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Executive Director
EXHIBIT 1
MORTGAGE LOAN SCHEDULE
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
Royal Bank of Canada
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Mortgage Loan No. CMSA Loan No. CMSA Property No. Mortgage Loan Seller(1) Property Name
------------------------------------------------------------------------------------------------------------------------------------
7 7 ▇-▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ Mall Steadfast
11 11 11-001 RBC ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇ ▇▇ ▇▇-▇▇▇ ▇▇▇ CLT Industrial Complex
22 22 22-001 RBC ▇▇▇▇▇▇▇ Mall Shopping Center Fox
29 29 29-001 RBC Escondido Gateway
38 38 38-001 RBC University Center
45 45 45-001 RBC Mesa Shores
51 51 51-001 RBC ▇▇▇▇▇▇▇▇▇▇▇ 57
57 57 57-001 RBC ▇▇▇▇ ▇▇▇▇ ▇▇▇▇
65 65 65-001 RBC Escondido Valley Center
68 68 68-001 RBC Villas of ▇▇ ▇▇▇▇▇▇
▇▇ ▇▇ ▇▇-▇▇▇ ▇▇▇ US Storage Centers- South Bay
73 73 73-001 RBC ▇▇▇▇▇ ▇▇▇▇▇
▇▇ ▇▇ ▇▇-▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇▇ Safeway
88 88 88-001 RBC A American Ingelwood
101 101 101-001 RBC Spartansburg Medical ▇▇▇▇▇▇
▇▇▇ ▇▇▇ ▇▇▇-▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ II
136 136 136-001 RBC Addison Plaza
153 153 153-001 RBC Stow-A-Way Self Storage
167 167 167-001 RBC A American El Cajon
170 RBC Valley Storage Portfolio Roll-Up
170 170 170-001 RBC Valley Storage Hagerstown (E)
171 171 171-001 RBC Valley Storage Martinsburg (E)
202 202 202-001 RBC Southgate Apartments
222 222 222-001 RBC Washington Point I
244 244 244-001 RBC Berkeley Self Storage
310 310 310-001 RBC Morningstar Mini Storage
342 342 342-001 RBC CFC Self Storage
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Mortgage Loan No. Loan Group Cross-Collateralization(2) Original Balance Cut-Off Date Balance(3)
------------------------------------------------------------------------------------------------------------------------------------
7 1 No $98,000,000 $98,000,000
11 1 No $58,800,000 $58,800,000
16 1 No $37,000,000 $37,000,000
22 1 No $31,200,000 $31,200,000
29 1 No $24,755,000 $24,755,000
38 1 No $20,031,000 $20,031,000
45 1 No $18,872,000 $18,872,000
51 1 No $17,500,000 $17,500,000
57 1 No $15,200,000 $15,200,000
65 1 No $14,126,000 $14,126,000
68 1 No $13,600,000 $13,600,000
69 1 No $13,500,000 $13,500,000
73 1 No $12,775,000 $12,775,000
76 1 No $12,000,000 $12,000,000
88 1 No $10,500,000 $10,500,000
101 1 No $9,012,000 $9,012,000
108 1 No $8,621,000 $8,621,000
136 1 No $7,400,000 $7,400,000
153 1 No $6,500,000 $6,500,000
167 1 No $5,800,000 $5,800,000
$5,738,000 $5,734,848
170 1 Yes $3,025,000 $3,021,848
171 1 Yes $2,713,000 $2,713,000
202 1 No $4,780,000 $4,770,923
222 1 No $4,296,000 $4,296,000
244 1 No $3,600,000 $3,593,224
310 1 No $2,500,000 $2,497,269
342 1 No $2,090,000 $2,090,000
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Mortgage Loan No. NOI DSCR(4) NCF DSCR(4) Post IO Period NCF DSCR(4) Cut-Off Date LTV(4)
------------------------------------------------------------------------------------------------------------------------------------
7 1.18 1.15 NAP 75.9%
11 1.44 1.32 NAP 79.5%
16 1.33 1.24 NAP 73.7%
22 1.26 1.19 NAP 74.3%
29 1.22 1.19 NAP 77.8%
38 1.25 1.18 NAP 75.7%
45 1.24 1.20 NAP 80.1%
51 1.63 1.47 1.20 77.4%
57 1.04 1.04 0.91 80.0%
65 1.24 1.19 NAP 79.4%
68 1.33 1.27 NAP 73.1%
69 1.55 1.54 1.31 63.6%
73 1.36 1.18 NAP 76.0%
76 1.29 1.19 NAP 80.0%
88 1.34 1.32 NAP 68.9%
101 2.06 1.81 NAP 63.0%
108 1.25 1.19 NAP 80.9%
136 1.51 1.42 NAP 79.6%
153 1.61 1.58 1.30 71.1%
167 1.23 1.21 NAP 74.4%
1.25 1.21 NAP 78.5%
170 1.25 1.21 NAP 78.5%
171 1.25 1.21 NAP 78.5%
202 1.19 1.15 NAP 78.2%
222 1.29 1.19 NAP 79.6%
244 1.32 1.30 NAP 52.8%
310 1.50 1.44 NAP 63.2%
342 1.53 1.46 1.21 79.8%
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Mortgage Loan No. Balloon LTV(4) Street Address City State
------------------------------------------------------------------------------------------------------------------------------------
7 75.9% ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇
11 79.5% ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇
16 73.7% ▇▇▇▇-▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
/ ▇▇▇▇-▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇
22 74.3% ▇▇▇▇-▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇
29 77.8% ▇▇▇-▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇
38 75.7% ▇▇▇▇-▇▇▇▇ ▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇
45 80.1% ▇▇▇▇-▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇
51 72.0% ▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇
57 79.3% ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇
65 79.4% ▇▇▇▇-▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇
68 73.1% ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇
69 59.6% ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇
73 76.0% ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇
76 80.0% 12402-12532 ▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇
▇▇ 52.8% ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇
101 63.0% ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇
108 80.9% ▇▇▇-▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇
136 79.6% ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇
153 63.9% ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇. ▇▇▇▇▇▇▇▇ ▇▇
167 57.0% ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇. ▇▇ ▇▇▇▇▇ ▇▇
66.3%
170 66.3% ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ ▇▇. ▇▇▇▇▇▇▇▇▇▇ ▇▇
171 66.3% ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇
202 73.3% ▇▇▇-▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇ ▇▇
222 79.6% ▇▇▇-▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇
244 44.8% ▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇
310 53.0% ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇
342 70.4% ▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Zip Code Property Type Property Sub-Type Units/SF(5) Year Built
------------------------------------------------------------------------------------------------------------------------------------
7 98208 Retail Anchored 514,160 1970
11 21202 Office Urban 279,712 2004
16 28208 Industrial Warehouse 582,862 1981, 1996-1998
22 98208 Retail Shadow Anchored 124,493 1985-1988
29 92025 Retail Anchored 89,625 2002-2003
38 80525 Retail Anchored 161,875 1963
45 85024 Retail Shadow Anchored 107,349 1984-1998
51 02322 Industrial Warehouse 425,628 1974
57 77027 Office Urban 165,399 1974
65 92029 Retail Shadow Anchored 46,075 1989
68 75070 Multifamily Garden 248 2002
69 90260 Self Storage Self Storage 81,423 2000
73 80288 Mixed Use Office/Retail 101,452 1981
76 80127 Retail Shadow Anchored 35,959 1999-2000
88 90304 Self Storage Self Storage 99,481 1987
101 29303 Office Medical 64,800 1986
108 80233 Retail Shadow Anchored 45,200 1996
136 75001 Retail Unanchored 32,184 1999
153 92374 Self Storage Self Storage 126,785 1979, 2003
167 92021 Self Storage Self Storage 64,414 1989
170 21740 Self Storage Self Storage 58,707 1987
171 25401 Self Storage Self Storage 55,950 1991
202 60050 Multifamily Garden 64 1970
222 80233 Retail Shadow Anchored 36,442 1996
244 94702 Self Storage Self Storage 35,941 1988
310 27510 Self Storage Self Storage 61,525 2002, 2005
342 79705 Self Storage Self Storage 58,912 1998
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Year Renovated Percent Leased(6) Percent Leased as of Date(6) Security Type(7) Lien Position
------------------------------------------------------------------------------------------------------------------------------------
7 2005 88.0% 04/13/2007 Fee First
11 NAP 96.9% 04/16/2007 Leasehold First
16 NAP 85.7% 08/30/2006 Fee First
22 2005 100.0% 04/05/2007 Fee First
29 NAP 100.0% 03/14/2007 Leasehold First
38 1982, 1999 89.0% 01/12/2007 Fee First
45 NAP 92.9% 03/21/2007 Fee First
51 NAP 87.5% 03/01/2007 Fee First
57 1997 85.4% 12/01/2006 Fee First
65 NAP 97.3% 03/15/2007 Fee First
68 NAP 95.2% 09/30/2006 Fee First
69 NAP 90.1% 02/08/2007 Fee First
73 NAP 90.8% 01/11/2007 Fee First
76 NAP 96.1% 12/22/2006 Fee First
88 NAP 81.7% 03/08/2007 Fee First
101 NAP 100.0% 03/01/2007 Leasehold First
108 NAP 100.0% 12/01/2006 Fee First
136 NAP 91.0% 02/06/2007 Fee First
153 NAP 89.7% 01/18/2007 Fee First
167 NAP 87.1% 01/29/2007 Fee First
170 2000 84.4% 02/21/2007 Fee First
171 NAP 89.7% 02/21/2007 Fee First
202 2003 96.9% 01/22/2007 Fee First
222 NAP 100.0% 01/31/2007 Fee First
244 NAP 80.7% 01/21/2007 Fee First
310 NAP 82.2% 02/04/2007 Leasehold First
342 NAP 97.9% 02/26/2007 Fee First
------------------------------------------------------------------------------------------------------------------------------------
Mortgage . Cut-Off Date Balance First Payment First Payment
Loan No. Related Borrower List per Unit or SF Note Date Date (P&I) (8) Date (IO) (8)
------------------------------------------------------------------------------------------------------------------------------------
7 NAP $191 04/18/2007 NAP 06/01/2007
11 NAP $210 04/24/2007 NAP 06/01/2007
16 NAP $63 02/23/2007 NAP 04/01/2007
22 22, 29, 38, 45, 65, 73, 76, 108 $251 04/10/2007 NAP 06/01/2007
29 22, 29, 38, 45, 65, 73, 76, 108 $276 03/19/2007 NAP 05/01/2007
38 22, 29, 38, 45, 65, 73, 76, 108 $124 04/11/2007 NAP 06/01/2007
45 22, 29, 38, 45, 65, 73, 76, 108 $176 03/26/2007 NAP 05/01/2007
51 NAP $41 03/14/2007 05/01/2012 05/01/2007
57 NAP $92 01/30/2007 03/01/2011 03/01/2007
65 22, 29, 38, 45, 65, 73, 76, 108 $307 03/20/2007 NAP 05/01/2007
68 NAP $54,839 11/29/2006 NAP 01/01/2007
69 NAP $166 04/04/2007 06/01/2012 06/01/2007
73 22, 29, 38, 45, 65, 73, 76, 108 $126 04/03/2007 NAP 06/01/2007
76 22, 29, 38, 45, 65, 73, 76, 108 $334 04/05/2007 NAP 06/01/2007
88 88, 167, 252, 296, 305, 317 $106 04/03/2007 06/01/2007 NAP
101 NAP $139 04/16/2007 NAP 06/01/2007
108 22, 29, 38, 45, 65, 73, 76, 108 $191 03/22/2007 NAP 05/01/2007
136 NAP $230 03/01/2007 NAP 05/01/2007
153 NAP $51 03/01/2007 05/01/2010 05/01/2007
167 88, 167, 252, 296, 305, 317 $90 04/03/2007 06/01/2007 NAP
03/07/2007 05/01/2007 NAP
170 170, 171 $50 03/07/2007 05/01/2007 NAP
171 170, 171 $50 04/12/2007 06/01/2007 NAP
202 NAP $74,546 02/22/2007 04/01/2007 NAP
222 NAP $118 04/09/2007 NAP 06/01/2007
244 NAP $100 02/15/2007 04/01/2007 NAP
310 NAP $41 03/01/2007 05/01/2007 NAP
342 NAP $35 04/03/2007 06/01/2009 06/01/2007
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Maturity Date Due Date Grace Period(9) ARD Loan Lockbox Status Lockbox Type
------------------------------------------------------------------------------------------------------------------------------------
7 05/01/2017 1 5 No None NAP
11 05/01/2017 1 5 No In-Place Hard
16 03/01/2017 1 15 No None NAP
22 05/01/2017 1 8 No None NAP
29 04/01/2017 1 8 No None NAP
38 05/01/2017 1 8 No None NAP
45 04/01/2017 1 8 No None NAP
51 04/01/2017 1 5 No None NAP
57 02/01/2012 1 5 No None NAP
65 04/01/2017 1 8 No None NAP
68 12/01/2016 1 5 No None NAP
69 05/01/2017 1 5 No None NAP
73 05/01/2017 1 8 No None NAP
76 05/01/2017 1 8 No None NAP
88 05/01/2017 1 5 No None NAP
101 05/01/2015 1 5 No None NAP
108 04/01/2017 1 8 No None NAP
136 04/01/2017 1 8 No None NAP
153 04/01/2017 1 5 No None NAP
167 05/01/2017 1 5 No None NAP
04/01/2017 None NAP
170 04/01/2017 1 5 No None NAP
171 05/01/2017 1 5 No None NAP
202 03/01/2012 1 5 No None NAP
222 05/01/2017 1 10 No None NAP
244 03/01/2017 1 5 No None NAP
310 04/01/2017 1 5 No None NAP
342 05/01/2017 1 5 No None NAP
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Original Term Remaining Term Original Amort. Remaining Mortgage Monthly
Loan No. to Maturity to Maturity Term(10) Amort Term Rate Payment (P&I)
------------------------------------------------------------------------------------------------------------------------------------
7 120 120 IO IO 5.480% NAP
11 120 120 IO IO 5.550% NAP
16 120 118 IO IO 5.800% NAP
22 120 120 IO IO 5.560% NAP
29 120 119 IO IO 5.570% NAP
38 120 120 IO IO 5.630% NAP
45 120 119 IO IO 5.580% NAP
51 120 119 360 360 5.480% $99,144
57 60 57 360 360 6.580% $96,875
65 120 119 IO IO 5.570% NAP
68 120 115 IO IO 5.680% NAP
69 120 120 360 360 6.080% $81,635
73 120 120 IO IO 5.630% NAP
76 120 120 IO IO 5.580% NAP
88 120 120 300 300 5.605% $65,139
101 96 96 IO IO 5.410% NAP
108 120 119 IO IO 5.570% NAP
136 120 119 IO IO 5.450% NAP
153 120 119 360 360 5.640% $37,479
167 120 120 300 300 5.605% $35,982
120 119 360 359 5.760% $17,672
170 120 119 360 359 5.760% $17,672
171 120 120 360 360 5.790% $15,901
202 60 58 360 358 5.830% $28,138
222 120 120 IO IO 5.610% NAP
244 120 118 360 358 5.870% $21,284
310 120 119 360 359 5.510% $14,210
342 120 120 360 360 5.750% $12,197
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Monthly Payment (IO) Third Most Recent NOI Third Most Recent NOI End Date Second Most Recent NOI
------------------------------------------------------------------------------------------------------------------------------------
7 $453,749 NAP NAP $3,362,613
11 $275,727 NAP NAP NAP
16 $181,317 $2,719,551 12/31/2004 $2,974,056
22 $146,568 $1,882,248 12/31/2004 $1,830,433
29 $116,500 $1,701,787 12/31/2004 $1,711,711
38 $95,284 $1,214,471 12/31/2004 $1,690,181
45 $88,974 $1,281,932 12/31/2004 $1,463,336
51 $81,027 $1,646,381 12/31/2004 $1,038,209
57 $84,504 NAP NAP $414,094
65 $66,479 $955,331 12/31/2004 $871,475
68 $65,267 NAP NAP $634,708
69 $69,350 $1,174,388 12/31/2004 $1,200,701
73 $60,768 $810,027 12/31/2004 $834,770
76 $56,575 $732,977 12/31/2004 $755,856
88 NAP $994,989 12/31/2004 $985,628
101 $41,193 $1,038,567 12/31/2004 $1,083,193
108 $40,572 $633,127 12/31/2004 $501,051
136 $34,075 $589,191 12/31/2004 $486,764
153 $30,974 $568,926 12/31/2004 $635,668
167 NAP $568,320 12/31/2004 $546,958
NAP
170 NAP NAP NAP $255,273
171 NAP NAP NAP $182,255
202 NAP $273,096 12/31/2004 $238,548
222 $20,363 $376,606 12/31/2004 $344,420
244 NAP NAP NAP $425,905
310 NAP $112,359 12/31/2004 $102,989
342 $10,154 $153,386 12/31/2004 $154,082
------------------------------------------------------------------------------------------------------------------------------------
Mortgage
Loan No. Second Most Recent NOI End Date Most Recent NOI Most Recent NOI End Date Underwritten EGI Underwritten Expenses
------------------------------------------------------------------------------------------------------------------------------------
7 12/31/2005 $4,384,777 12/31/2006 $10,633,931 $4,182,560
11 NAP -$38,986 12/31/2006 $7,878,560 $3,103,904
16 12/31/2005 $2,748,768 TTM 9/30/2006 $3,680,339 $787,555
22 12/31/2005 $2,241,206 12/31/2006 $2,690,852 $482,319
29 12/31/2005 $1,759,897 TTM 11/30/2006 $2,284,359 $574,512
38 12/31/2005 $1,408,237 12/31/2006 $1,895,143 $460,466
45 12/31/2005 $1,407,622 12/31/2006 $1,810,269 $489,897
51 12/31/2005 $1,277,230 12/31/2006 $2,553,924 $966,494
57 12/31/2005 $863,038 T-10 Annualized 10/31/2006 $2,733,860 $1,680,631
65 12/31/2005 $1,023,008 TTM 11/30/2006 $1,269,943 $268,459
68 12/31/2005 $1,269,693 T-12 12/31/2006 $1,985,232 $942,821
69 12/31/2005 $1,295,704 TTM 1/31/2007 $1,829,965 $537,742
73 12/31/2005 $999,705 TTM 11/30/2006 $1,717,364 $728,142
76 12/31/2005 $821,657 12/31/2006 $1,355,813 $504,613
88 12/31/2005 $1,032,931 12/31/2006 $1,500,114 $450,406
101 12/31/2005 $1,100,341 12/31/2006 $1,473,005 $454,382
108 12/31/2005 $628,651 12/31/2006 $972,131 $362,308
136 12/31/2005 $738,162 12/12/2006 $899,050 $281,507
153 12/31/2005 $621,535 TTM 10/31/2006 $1,045,736 $446,031
167 12/31/2005 $539,456 12/31/2006 $774,341 $243,051
$855,471 $350,241
170 12/31/2005 $269,194 12/31/2006 $451,530 $186,945
171 12/31/2005 $230,419 12/31/2006 $403,941 $163,296
202 12/31/2005 $424,576 12/31/2006 $582,128 $179,634
222 12/31/2005 $320,143 12/31/2006 $553,311 $239,064
244 12/31/2005 $349,195 12/31/2006 $707,792 $369,814
310 12/31/2005 $106,469 TTM 11/30/2006 $619,870 $364,590
342 12/31/2005 $245,120 12/31/2006 $389,651 $203,292
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Underwritable NOI Underwritten Reserves Underwritable Cash Flow Balloon Balance Current Value(11)
------------------------------------------------------------------------------------------------------------------------------------
7 $6,451,371 $200,407 $6,250,964 $98,000,000 $129,200,000
11 $4,774,656 $391,597 $4,383,059 $58,800,000 $74,000,000
16 $2,892,784 $194,585 $2,698,199 $37,000,000 $50,200,000
22 $2,208,584 $117,173 $2,091,361 $31,200,000 $42,000,000
29 $1,709,846 $49,249 $1,660,597 $24,755,000 $31,800,000
38 $1,434,677 $81,364 $1,353,313 $20,031,000 $26,460,000
45 $1,320,372 $40,602 $1,279,770 $18,872,000 $23,550,000
51 $1,587,430 $159,796 $1,427,634 $16,275,775 $22,600,000
57 $1,053,229 $0 $1,053,229 $15,058,171 $19,000,000
65 $991,495 $53,910 $947,575 $14,126,000 $17,800,000
68 $1,042,411 $49,600 $992,811 $13,600,000 $18,600,000
69 $1,292,223 $12,213 $1,280,010 $12,659,906 $21,230,000
73 $989,222 $126,149 $863,073 $12,775,000 $16,800,000
76 $878,200 $43,193 $808,007 $12,000,000 $15,000,000
88 $1,049,668 $14,327 $1,035,341 $8,051,956 $15,250,000
101 $1,018,623 $123,013 $895,610 $9,012,000 $14,300,000
108 $609,823 $32,347 $577,476 $8,621,000 $10,650,000
136 $617,543 $55,614 $582,475 $7,400,000 $9,300,000
153 $599,704 $12,855 $586,849 $5,841,683 $9,140,000
167 $531,289 $9,662 $521,627 $4,447,747 $7,800,000
$505,230 $18,080 $487,150 $4,844,740 $7,310,000
170 $264,585 $9,687 $254,898 $2,552,711 $3,890,000
171 $240,645 $8,393 $232,252 $2,292,028 $3,420,000
202 $402,494 $12,800 $389,694 $4,469,457 $6,100,000
222 $314,781 $22,754 $291,493 $4,296,000 $5,400,000
244 $337,978 $5,201 $332,777 $3,049,699 $6,800,000
310 $255,280 $9,274 $246,006 $2,093,740 $3,950,000
342 $186,359 $8,837 $177,522 $1,845,188 $2,620,000
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Loan No. Source of Value(11) Valuation Date Largest Tenant(12) Lease Expiration Date % NSF
------------------------------------------------------------------------------------------------------------------------------------
7 Appraisal 06/09/2008 Sears 02/28/2009 22.4%
11 Appraisal 03/29/2007 Reznick, Fedder, & Silver 12/31/2016 24.1%
16 Appraisal 12/27/2006 Eagle Global Logistics 10/31/2008 12.4%
22 Appraisal 03/15/2007 Michael's Stores, Inc #9810 02/28/2013 17.6%
29 Appraisal 02/19/2007 ▇▇▇▇▇▇ & ▇▇▇▇▇ 04/10/2013 27.9%
38 Appraisal 02/15/2007 King Soopers 08/17/2010 29.6%
45 Appraisal 02/22/2007 Neste Development Nevada, LLC 06/30/2013 25.9%
51 Appraisal 02/01/2007 Record Keeper 12/31/2010 28.2%
57 Appraisal 12/12/2007 Corporate Office Centers 08/31/2011 13.2%
65 Appraisal 02/19/2007 VIP Oriental Buffet 03/31/2015 23.8%
68 Appraisal 10/31/2006 NAP NAP NAP
69 Appraisal 02/13/2007 NAP NAP NAP
73 Appraisal 03/13/2007 ▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Construction Corp. 06/30/2008 7.6%
76 Appraisal 03/06/2007 Hallmark Global Services #84 2/28/2010 11.7%
88 Appraisal 02/13/2007 NAP NAP NAP
101 Appraisal 03/13/2007 Spartan Internal Medical-SRHS 12/31/2017 26.9%
108 Appraisal 02/21/2007 Petco 07/31/2011 31.0%
136 Appraisal 01/21/2007 Palm Beach Tan 07/31/2010 9.7%
153 Appraisal 01/04/2007 NAP NAP NAP
167 Appraisal 02/21/2007 NAP NAP NAP
170 Appraisal 01/08/2007 NAP NAP NAP
171 Appraisal 02/08/2007 NAP NAP NAP
202 Appraisal 02/07/2007 NAP NAP NAP
222 Appraisal 02/21/2007 Longs Drug Stores California 02/28/2025 63.0%
244 Appraisal 01/10/2007 NAP NAP NAP
310 Appraisal 01/16/2007 NAP NAP NAP
342 Appraisal 02/21/2007 NAP NAP NAP
------------------------------------------------------------------------------------------------------------------------------------
Mortgage
Loan No. Second Largest Tenant(12) Lease Expiration Date % NSF Third Largest Tenant(12) Lease Expiration Date
------------------------------------------------------------------------------------------------------------------------------------
7 ▇▇▇▇▇ & Barry's 07/31/2014 15.2% Regal Cineplex 06/30/2021
11 Aon Service Corporation 08/30/2016 20.0% ▇▇▇▇ ▇▇▇▇▇ LLP 11/30/2020
16 ▇▇▇▇▇▇▇ Logistics 11/30/2013 7.3% Forward Air, Inc 07/31/2009
22 Petco Store #244 05/31/2014 11.2% Pier 1 Imports (U.S.), Inc. 01/31/2013
29 Michaels 04/30/2013 26.6% Calumet Photographic, Inc. 03/31/2008
38 ▇▇▇▇▇ Mart, Inc. 05/31/2013 22.9% Office Max Store 07/31/2014
45 Michaels Stores, Inc 02/28/2008 18.6% Trader Joe's Company 08/31/2007
51 Polar Beverages 12/31/2010 23.6% Excel 10/31/2009
57 EMS Pipeline Service 07/31/2012 9.6% Telwest Network Services 11/30/2008
65 Fed-Ex Kinkos 07/31/2008 14.8% Hot Spring Spa of North Cnty. 11/30/2010
68 NAP NAP NAP NAP NAP
69 NAP NAP NAP NAP NAP
73 Builder MT (prev. Tundra Education) 04/30/2009 7.0% Avisa, Inc. 01/31/2008
76 ▇▇▇ ▇▇▇▇▇ Village Wine & Spirits 02/14/2009 11.5% Washington Mutual 5/31/2007
88 NAP NAP NAP NAP NAP
101 ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, III MD 12/31/2007 13.9% Regional OB-Gyn Svcs & Lab - SRHSD 12/31/2014
108 Party America 08/15/2016 18.8% Hollywood Video 08/31/2007
136 Dickies 01/31/2015 9.3% Chipotle Mexican Grill 01/05/2011
153 NAP NAP NAP NAP NAP
167 NAP NAP NAP NAP NAP
170 NAP NAP NAP NAP NAP
171 NAP NAP NAP NAP NAP
202 NAP NAP NAP NAP NAP
222 Washtime Laundry 10/31/2013 9.6% CU Service Network of Colorado 05/31/2008
244 NAP NAP NAP NAP NAP
310 NAP NAP NAP NAP NAP
342 NAP NAP NAP NAP NAP
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Insurance Escrow Tax Escrow Capital Expenditure TI/LC Escrow
Loan No. % NSF in Place in Place(13) Escrow in Place (14) Escrow in Place(15)
------------------------------------------------------------------------------------------------------------------------------------
7 12.6% No No No Yes
11 17.4% Yes Yes Yes No
16 7.0% No No Yes Yes
22 8.0% No No No No
29 8.4% No No No No
38 14.5% No No No No
45 9.3% No No No No
51 18.8% Yes Yes Yes Yes
57 7.1% Yes Yes Yes Yes
65 10.9% No No No No
68 NAP Yes Yes Yes No
69 NAP No Yes Yes No
73 6.8% No No No No
76 8.7% No No No No
88 NAP No No No No
101 12.5% No No No No
108 16.7% No No No No
136 8.7% Yes Yes Yes Yes
153 NAP No Yes Yes No
167 NAP No No No No
170 NAP Yes Yes Yes No
171 NAP No Yes No No
202 NAP Yes Yes Yes No
222 7.6% No No No No
244 NAP Yes Yes Yes No
310 NAP No No Yes No
342 NAP Yes No Yes No
------------------------------------------------------------------------------------------------------------------------------------
Initial Capital Monthly Capital Current
Expenditure Expenditure Capital
Mortgage Other Escrow Springing Escrow Escrow Escrow Expenditure
Loan No. Description(16) Description(17) Requirement(18) Requirement(19) Escrow Balance(20)
------------------------------------------------------------------------------------------------------------------------------------
7 Earnout; Rent Abatement Tax, Insurance $0 $0 $0
11 Debt Service Reserve TI/LC $0 $2,331 $0
16 NAP Tax, Insurance $582,960 $0 $0
22 NAP Tax, Insurance $0 $0 $0
29 NAP Tax, Insurance $0 $0 $0
38 Special tenant escrow - Big 5 Tax, Insurance, Other $0 $0 $0
45 NAP Tax, Insurance $0 $0 $0
51 Earnout Reserve NAP $0 $4,796 $0
57 Earnout Escrow CapEx, TI/LC $165,357 $0 $165,758
65 NAP Tax, Insurance $0 $0 $0
68 NAP NAP $0 $4,133 $16,532
69 NAP Insurance $0 $1,018 $0
73 NAP Tax, Insurance $0 $0 $0
76 NAP Tax, Insurance $0 $0 $0
88 NAP Tax, Insurance $0 $0 $0
101 NAP Tax, Insurance, TI/LC $0 $0 $0
108 NAP Tax, Insurance, Other $0 $0 $0
136 NAP NAP $0 $401 $0
153 NAP Insurance $0 $1,071 $0
167 NAP Tax, Insurance $0 $0 $0
170 NAP NAP $0 $807 $0
171 NAP NAP $0 $0 $0
202 NAP NAP $0 $1,067 $0
222 NAP Tax, Insurance $0 $0 $0
244 NAP NAP $0 $550 $550
310 NAP Tax, Insurance $0 $773 $0
342 NAP Tax, Insurance $0 $736 $0
------------------------------------------------------------------------------------------------------------------------------------
Mortgage Initial TI/LC Monthly TI/LC Current TI/LC Environmental Interest
Loan No. Escrow Requirement(21) Escrow Requirement(22) Escrow Balance(23) Insurance Accrual Method
------------------------------------------------------------------------------------------------------------------------------------
7 $5,414,276 $0 $0 No Actual/360
11 $0 $0 $0 No Actual/360
16 $300,000 LOC $0 $0 No Actual/360
22 $0 $0 $0 No Actual/360
29 $0 $0 $0 No Actual/360
38 $0 $0 $0 No Actual/360
45 $0 $0 $0 No Actual/360
51 $0 $8,521 $0 No Actual/360
57 $1,011,639 $0 $1,014,093 No Actual/360
65 $0 $0 $0 No Actual/360
68 $0 $0 $0 No Actual/360
69 $0 $0 $0 No Actual/360
73 $0 $0 $0 No Actual/360
76 $0 $0 $0 No Actual/360
88 $0 $0 $0 No Actual/360
101 $0 $0 $0 No Actual/360
108 $0 $0 $0 No Actual/360
136 $0 $1,360 $0 No Actual/360
153 $0 $0 $0 No Actual/360
167 $0 $0 $0 No Actual/360
Actual/360
170 $0 $0 $0 No Actual/360
171 $0 $0 $0 No Actual/360
202 $0 $0 $0 No Actual/360
222 $0 $0 $0 No Actual/360
244 $0 $0 $0 No Actual/360
310 $0 $0 $0 No Actual/360
342 $0 $0 $0 No Actual/360
------------------------------------------------------------------------------------------------------------------------------------
Prepayment Code(25)
Mortgage -------------------------------------------------------------------- YM Administrative Mortgage
Loan No. Seasoning(24) LO DEF DEF/YM1 DEF/YM YM2 YM1 YM 5% 4% 3% 2% 1% Open Formula(26) Cost Rate (27) Loan No.
------------------------------------------------------------------------------------------------------------------------------------
7 0 24 89 7 2.026 7
11 0 24 92 4 2.026 11
16 2 26 90 4 H 2.026 16
22 0 24 89 7 2.026 22
29 1 25 88 7 2.026 29
38 0 24 89 7 2.026 38
45 1 25 88 7 2.026 45
51 1 25 91 4 2.026 51
57 3 23 12 12 11 2 2.026 57
65 1 25 88 7 2.026 65
68 5 29 87 4 2.026 68
69 0 24 35 61 2.026 69
73 0 24 89 7 2.026 73
76 0 24 89 7 2.026 76
88 0 24 59 37 2.026 88
101 0 24 47 25 2.026 101
108 1 25 88 7 2.026 108
136 1 25 91 4 2.026 136
153 1 34 82 4 2.026 153
167 0 24 59 37 2.026 167
1 25 91 4 2.026
170 1 25 91 4 2.026 170
171 0 24 92 4 2.026 171
202 2 26 31 3 2.026 202
222 0 24 92 4 2.026 222
244 2 26 90 4 2.026 244
310 1 25 91 4 2.026 310
342 0 24 92 4 2.026 342
EXHIBIT 2
REPRESENTATIONS AND WARRANTIES REGARDING
INDIVIDUAL MORTGAGE LOANS
(1) Mortgage Loan Schedule. The information set forth in the Mortgage Loan
Schedule is 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 the Purchaser of the Mortgage Loans, the Seller had good title
to, and was the sole owner of, each Mortgage Loan. The Seller has full right,
power and authority to transfer and assign each of the Mortgage Loans to or at
the direction of the Purchaser and has validly and effectively conveyed (or
caused to be conveyed) to the Purchaser or its designee all of the 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.
Upon the consummation of the transactions contemplated by this Agreement, the
Seller will have validly and effectively conveyed to the Purchaser all legal and
beneficial interest in and to each Mortgage Loan free and clear of any pledge,
lien, charge, security interest or other encumbrance. The sale of the Mortgage
Loans to the Purchaser or its designee does not require the Seller to obtain any
governmental or regulatory approval or consent that has not been obtained. None
of the Mortgage Loan documents restricts the Seller's right to transfer the
Mortgage Loan to the Purchaser or to the Trustee.
(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 or operation 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) being
herein referred to as 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. If an Assignment of Leases exists with
respect to any Mortgage Loan (whether as a part of the related Mortgage or
separately), then the related Mortgage or related Assignment of Leases, subject
to applicable law, provides for, upon an event of default under the Mortgage
Loan, the appointment of a receiver for the collection of rents or for the
related mortgagee to enter into possession to collect the rents or for rents to
be paid directly to the mortgagee.
(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 and none of the Mortgage Loans has been materially
modified since May 14, 2007.
(7) Condition of Property; Condemnation. With respect to (i) the Mortgaged
Properties securing the Mortgage Loans that were the subject of an engineering
report issued after the first day of the month that is 18 months prior to the
Closing Date, each Mortgaged Property is, to the Seller's knowledge, free and
clear of any damage (or adequate reserves therefor have been established based
on the engineering report) that would materially and adversely affect its value
as security for the related Mortgage Loan and (ii) the Mortgaged Properties
securing the Mortgage Loans that were not the subject of an engineering report
18 months prior to the Closing 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. The
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 the
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 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 a comparable form as adopted in the applicable
jurisdiction) lender's title insurance policy, a pro forma 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 the 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. Such Title Policy contains no
exclusion for, or it affirmatively insures access to a public road.
(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 that must be satisfied as a condition to
disbursements of any funds escrowed for such purpose have been complied with on
or before the Closing Date, 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 the Seller, the 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) With respect to the Mortgaged Properties securing the Mortgage
Loans that were the subject of an environmental site assessment after the first
day of the month that is 18 months prior to the Closing Date, an environmental
site assessment, or an update of a previous such report, was performed with
respect to each Mortgaged Property in connection with the origination or the
acquisition 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 the Purchaser, and the 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. In connection with the
origination of each Mortgage Loan, each environmental consultant has represented
in such Environmental Report or in a supplement letter that the environmental
assessment of the applicable Mortgaged Property was conducted utilizing
generally accepted Phase I industry standards using the American Society for
Testing and Materials (ASTM) Standard Practice E 1527-00.
(ii) With respect to the Mortgaged Properties securing the Mortgage
Loans that were not the subject of an environmental site assessment meeting ASTM
Standards after the first day of the month that is 18 months prior to the
Closing 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, use or
operation 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, material or waste 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 Resource Conservation and Recovery 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 as amended (42
U.S.C. ▇▇.▇▇. 1251 et seq.) and any regulations promulgated pursuant
thereto.
(13) Loan Document Status. Each Mortgage Note, Mortgage, Assignment of
Leases 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 with respect to similarly situated properties in the locality of the
Mortgaged Property (so-called "All Risk" coverage) in an amount not less than
the lesser of the principal balance of the related Mortgage Loan and the
replacement cost of the improvements located at the Mortgaged Property, and
contains no provisions for a deduction for depreciation, and not less than the
amount necessary to avoid the operation of any co-insurance provisions with
respect to the Mortgaged Property; (b) a business interruption or rental loss
insurance policy, in an amount at least equal to six months of operations of the
Mortgaged Property; (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, for properties of similar
types 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. For each Mortgaged Property located in a Zone 3 or
Zone 4 seismic zone, either: (i) a seismic report which indicated a PML of less
than 20% was prepared, based on a 450- or 475-year lookback with a 10%
probability of exceedance in a 50-year period, in connection with the
origination of the Mortgage Loan secured by such Mortgaged Property or (ii) the
improvements for the Mortgaged Property are insured against earthquake damage.
(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 delinquent or unpaid
until the date on which interest or penalties would be first payable thereon.
(16) Mortgagor Bankruptcy. No Mortgagor is, to the 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:
(a) 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 the 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;
(b) 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;
(c) The Mortgagor's interest in such Ground Lease is assignable to
the Purchaser and the Trustee as its assignee 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 the 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;
(d) 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 the Seller
has received no notice that an event of default has occurred thereunder,
and, to the 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;
(e) 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.
(f) 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;
(g) 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;
(h) 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;
(i) 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;
(j) 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; and
(k) Such Ground Lease may not be amended or modified or any such
amendment or modification will not be effective against the mortgagee
without the prior written consent of the mortgagee under such Mortgage
Loan, and any such action without such consent is not binding on such
mortgagee, its successors or assigns; provided, however, that termination
or cancellation without such consent may be binding on the mortgagee if
(i) an event of default occurs under the Ground Lease, (ii) notice is
provided to the mortgagee and (iii) such default is curable by the
mortgagee as provided in the Ground Lease but remains uncured beyond the
applicable cure period.
(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 the 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, except, in each case, for liens insured against by the
Title Policy referred to herein, 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 Laws. Except as otherwise specifically disclosed in
an exception on Schedule A attached hereto to another representation and
warranty made by the seller in this Exhibit 2, at origination, each Mortgage
Loan complied with all applicable federal, state and local statutes and
regulations. Each Mortgage Loan complied with (or is exempt from) 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 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 Mortgagor 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.1.860G-2(b)(2) 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. The loan documents require the
related Mortgagor to bear the cost of such opinion.
(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 the 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 the Seller elsewhere in this Exhibit 2 or
the exceptions listed in Schedule A attached hereto.
(28) Inspections. The Seller (or if the 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 the 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. The
Seller has no knowledge that any of the Mortgaged Properties is encumbered by
any lien (other than a Permitted Encumbrance) junior to the lien of the related
Mortgage.
(31) Actions Concerning Mortgage Loans. To the knowledge of the 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 the 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 the 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 the 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) 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 the
Purchaser.
(35) 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.
(36) 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.
(37) REMIC Eligibility. Each Mortgage Loan is a "qualified mortgage" as
such term is defined in Section 860G(a)(3) of the Code (without regard to
Treasury Regulations Section 1.860G-2(f)(2), which treats certain defective
mortgage loans as qualified mortgages).
(38) 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 of the Seller.
(39) [Reserved].
(40) 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.
(41) 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 (i) the
defeasance of such Mortgage Loan and the release of the related Mortgaged
Property, and (ii) the approval of an assumption of such Mortgage Loan.
(42) Defeasance. No Mortgage Loan provides that it can be defeased until a
date that is more than two years after the Closing Date or provides 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.
(43) Authorized to do Business. To the extent required under applicable
law as of the date of origination, and necessary for the enforceability or
collectability of the Mortgage Loan, the originator of such Mortgage Loan was
authorized to do business in the jurisdiction in which the related Mortgaged
Property is located at all times when it originated and held the Mortgage Loan.
(44) Terrorism Insurance. With respect to each Mortgage Loan that has a
Stated 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 from coverage. 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 the Mortgage Loan Seller's knowledge, does not as of the date hereof,
specifically exclude acts of terrorism from coverage. 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.
(45) Operating Statements and Rent Rolls. In the case of each Mortgage
Loan, the related Mortgage Loan Documents require the related Mortgagor, in some
cases at the request of the lender, to provide to the holder of such Mortgage
Loan operating statements and rent rolls not less frequently than annually
(except if the Mortgage Loan has an outstanding principal balance of less than
or equal to $3,500,000 as of the Cut-Off Date or the related Mortgaged Property
has only one tenant, in either of which cases, the Mortgage Loan Documents
require the Mortgagor, in some cases at the request of the lender, to provide to
the holder of such Mortgage Loan operating statements and (if there is more than
one tenant) rent rolls and/or financial statements of the Mortgagor annually),
and such other information as may be required therein.
(46) An appraisal of the related Mortgaged Property was conducted in
connection with the origination of such Mortgage Loan, and such appraisal
satisfied the guidelines in Title XI of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as in effect on the date such Mortgage
Loan was originated.
SCHEDULE A
EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES
LISTED IN EXHIBIT 2 REGARDING INDIVIDUAL MORTGAGE LOANS
05.14.2007
SCHEDULE III
▇▇▇▇ ▇▇▇▇-▇▇▇▇
▇▇▇▇▇ ▇▇▇▇ ▇▇ ▇▇▇▇▇▇ Loans (RBC Pool 2)
Exceptions to Representations and Warranties
1. Mortgage Loan Schedule
2. Whole Loan; Ownership of Mortgage Loans.
3. Payment Record.
4. Lien; Valid Assignment.
5. Assignment of Leases and Rents.
6. Mortgage Status; Waivers and Modifications
7. Condition of Property; Condemnation.
8. Title Insurance
9. No Holdbacks.
10. Mortgage Provisions.
11. Trustee under Deed of Trust.
12. Environmental Conditions.
▇ ▇▇▇▇▇▇▇▇▇▇▇ 57 (108516) ($17,500,000): Stand-alone environmental
policy required in lieu of Phase I; non-cancelable 15 year term; $5
million in policy limits with maximum $50,000 deductible
13. Loan Document Status.
14. Insurance.
o All RBC-originated Loans: The loan documents for various mortgaged
properties generally require property insurance against fire and other
hazards that would be covered by a standard extended and all-risk
insurance policy issued and do not specifically mention windstorm,
hail, lightning, explosion, riot, riot attending a strike, civil
commotion, aircraft, vehicles and smoke
15. Taxes and Assessments.
16. Mortgagor Bankruptcy.
17. Leasehold Estate.
o Escondido Gateway (108529) ($24,755,000) Part Fee/ Part Leasehold; Fee
Not Subordinated; Portion of mortgaged property that is subject to
leasehold is small strip of unimproved land at rear of property
(approximately 5% of project area); Latest expiration of leasehold
interest is 05.31.2100 (loan matures 04.01.2017); Variations: No
provision regarding new lease in bankruptcy
18. Escrow Deposits.
19. LTV Ratio.
20. Mortgage Loan Modifications.
21. Advancement of Funds by the Seller.
22. No Mechanics' Liens.
23. Compliance with Usury Laws.
24. Cross-collateralization.
25. Releases of Mortgage Property.
o CLT Industrial Portfolio (107187) ($37,000,000): Borrower permitted to
release up to 5 of 11 parcels comprising mortgaged property subject to
certain conditions, including (i) payment of release price equal to
115% of allocated loan amount of release parcel, together with
prepayment consideration required by Note; (ii) Remaining parcels'
debt service coverage ratio shall be greater of (a) 1.20x, (b) DSCR
for 12 months prior to closing, or (c) DSCR for entirety of property
(including release parcels) for 12 month period prior to release;
(iii) None of remaining properties shall be a single tenant property,
and leases on remaining parcels shall have average remaining lease
term of 5 years
26. No Equity Participation or Contingent Interest.
27. No Material Default.
28. Inspections.
29. Local Law Compliance.
30. Junior Liens
31. Actions Concerning Mortgage Loans. 32. Servicing.
33. Licenses and Permits.
34. Collateral in Trust.
35. Due on Sale.
36. Non-Recourse Exceptions.
o Everett Mall Steadfast (109362) ($98,000,000): No warm body carve-out
guarantor (Beacon Bay Holdings, LLC); As of 12.31.06, such guarantor
had a stated net worth of approximately $117 million and liquidity of
approximately $7 million
o CLT Industrial Portfolio (107187) ($37,000,000): No warm body
carve-out guarantor (▇▇▇▇▇▇▇ Real Estate Company):As of 12.31.06, such
guarantor had a stated net worth of approximately $117 million and
liquidity of approximately $7 million
o Everett Mall Shopping Center Fox (109320) ($31,200,000): No warm body
carve-out guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such
guarantor had a stated net worth of approximately $255 million and
liquidity of approximately $30 million
o Escondido Gateway (108529) ($24,755,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such guarantor
had a stated net worth of approximately $255 million and liquidity of
approximately $30 million
o University Center (109281) ($20,031,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such guarantor
had a stated net worth of approximately $255 million and liquidity of
approximately $30 million
o Mesa Shores (108905) ($18,872,000): No warm body carve-out guarantor
(Fox General Indemnitor, LLC); As of 4.20.06, such guarantor had a
stated net worth of approximately $255 million and liquidity of
approximately $30 million
o Escondido Valley Center (108832) ($14,126,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such guarantor
had a stated net worth of approximately $255 million and liquidity of
approximately $30 million
o US Storage Centers- South Bay (107893) ($13,500,000): No warm body
carve-out guarantor (Grayburn Properties, Inc.); As of 4.20.06, such
guarantor had a stated net worth of approximately $255 million and
liquidity of approximately $30 million
o Union Plaza (109259) ($12,775,000): No warm body carve-out guarantor
(Fox General Indemnitor, LLC); As of 4.20.06, such guarantor had a
stated net worth of approximately $255 million and liquidity of
approximately $30 million
o ▇▇▇ ▇▇▇▇▇ Safeway (109278) ($12,000,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such guarantor
had a stated net worth of approximately $255 million and liquidity of
approximately $30 million
o Spartansburg Medical Office (109358) ($9,012,000): No carve-out
guarantor (SPE Borrower only on carve-outs)
o Washington Point II (108834) ($8,621,000): No warm body carve-out
guarantor (Fox General Indemnitor, LLC); As of 4.20.06, such guarantor
had a stated net worth of approximately $255 million and liquidity of
approximately $30 million
o Morningstar Mini Storage (107186) ($2,500,000): No warm body carve-out
guarantor (Morningstar Properties, LLC); As of 12.31.06, such
guarantor had a stated net worth of approximately $1,900,000 and
liquidity of approximately $450,000
37. REMIC Eligibility.
38. Prepayment Premiums.
39. Reserved
40. Single-Purpose Entity.
41. Defeasance and Assumption Costs.
42. Defeasance.
43. Authorized to do Business.
44. Terrorism Insurance.
45. Operating Statements and Rent Rolls .
SCHEDULE IV
Exceptions to Ground Lease Representations and Warranties
o Escondido Gateway (108529) ($24,755,000) Part Fee/ Part Leasehold; Fee Not
Subordinated; Portion of mortgaged property that is subject to leasehold is
small strip of unimproved land at rear of property (approximately 5% of
project area); Latest expiration of leasehold interest is 05.31.2100 (loan
matures 04.01.2017); Variations: No provision regarding new lease in
bankruptcy
EXHIBIT 3
▇▇▇▇ OF SALE
1. Parties. The parties to this ▇▇▇▇ of Sale are the following:
Seller: Royal Bank of Canada
Purchaser: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc.
2. Sale. For value received, the Seller hereby conveys to the
Purchaser, without recourse, all right, title and interest in and to the
Mortgage Loans identified on Exhibit 1 (other than the servicing rights thereto)
(the "Mortgage Loan Schedule") to the Mortgage Loan Purchase Agreement, dated as
of May 1, 2007 (the "Mortgage Loan Purchase Agreement"), between the Seller and
the 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. $_____ (including accrued interest).
4. Definitions. Terms used but not defined herein shall have the
meanings assigned to them in the Mortgage Loan Purchase Agreement.
IN WITNESS WHEREOF, each of the parties hereto has caused this ▇▇▇▇
of Sale to be duly executed and delivered on this 30th day of May, 2007.
SELLER: ROYAL BANK OF CANADA
By:
-----------------------------------
Name:
Title:
PURCHASER: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ CAPITAL I INC.
By:
-----------------------------------
Name:
Title:
EXHIBIT 4
FORM OF LIMITED POWER OF ATTORNEY
THIS DOCUMENT PREPARED BY,
AND AFTER RECORDING RETURN TO:
Capmark Finance Inc.
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Centerline Servicing, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇'▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
The Bank of New York Trust Company, National Association
▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
LaSalle Bank National Association
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
LIMITED POWER OF ATTORNEY
Know all persons by these presents; that the undersigned in its
capacity as Seller, having an address of ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
▇▇▇▇▇, Attention: ▇▇▇▇▇ ▇▇▇▇▇▇ (the "Seller"), being duly empowered and
authorized to do so, does hereby make, constitute and appoint Capmark Finance
Inc., having an address of ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (the
"Master Servicer"), Centerline Servicing, Inc. (formerly ARCap Servicing, Inc.),
having an address of ▇▇▇▇ ▇▇▇▇▇ ▇'▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇,
Attention: ▇▇▇ ▇. ▇▇▇▇▇ (the "Special Servicer"), The Bank of New York Trust
Company, National Association, having an address of Corporate Trust Office, ▇
▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇, Attention: Corporate Trust
Services (CMBS) -- ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Series 2007-IQ14 (the
"Trustee") and LaSalle Bank National Association, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: Global Securities and Trust
Services- ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I Inc., Series 2007-IQ14 (the "Custodian") as
the true and lawful attorneys-in-fact for the undersigned, in its name, place
and stead, and for its use and benefit:
1. To empower the Trustee, the Custodian, the Capmark Master
Servicer and, in the event of the failure or incapacity of the Trustee, the
Custodian and the Capmark Master Servicer, the Special Servicer, to submit for
recording, at the expense of the Seller, any mortgage loan documents required to
be recorded as described in the Pooling and Servicing Agreement, dated as of May
1, 2007 (the "Pooling and Servicing Agreement"), among ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital I
Inc., as Depositor, the Capmark Master Servicer, the Prudential Master Servicer,
the ▇▇▇▇▇ Fargo Master Servicer, the Special Servicer, the Trustee and the
Paying Agent with respect to the Trust and any intervening assignments with
evidence of recording thereon that are required to be included in the Mortgage
File (so long as original counterparts have previously been delivered to the
Trustee).
2. This power of attorney shall be limited to the above-mentioned
exercise of power.
3. This instrument is to be construed and interpreted as a limited
power of attorney. The enumeration of specific items, rights, acts or powers
herein is not intended to, nor does it give rise to, and it is not intended to
be construed as, a general power of attorney.
4. The rights, power of authority of said attorney herein granted
shall commence and be in full force and effect on the date hereof and such
rights, powers and authority shall remain in full force and effect until the
termination of 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.
IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of May 2007.
Witnessed by: ROYAL BANK OF CANADA
By:
------------------------------ ----------------------------------
Print Name: Name:
Title:
STATE OF______________________)
COUNTY OF_____________________)
On __________________________, before me, a Notary Public in and for said
county, personally appeared ________________________________, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her authorized capacity, and that by his/her
signature on the instrument the person acted and executed the instrument.
Witness my hand and official seal.
---------------------------------------
Commission Expires: