IMPAC SECURED ASSETS CORP.,
Depositor,
IMPAC FUNDING CORPORATION
Master Servicer,
and
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION
Trustee
---------------------------------
POOLING AND SERVICING AGREEMENT
Dated as of December 1, 1999
---------------------------------
Mortgage Pass-Through Certificates
Series 1999-2
================================================================================
TABLE OF CONTENTS
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ARTICLE I
DEFINITIONS................................................................3
1.01. Defined Terms.......................................................3
Accrued Certificate Interest...............................................3
Advance ..................................................................4
Aggregate Stated Principal Balance.........................................4
Agreement..................................................................4
Anniversary................................................................4
Assignment.................................................................4
Available Distribution Amount..............................................4
Balloon Loan...............................................................4
Balloon Payment............................................................5
Bankruptcy Amount..........................................................5
Bankruptcy Code............................................................5
Bankruptcy Loss............................................................5
Book-Entry Certificate.....................................................5
Business Day...............................................................5
Cash Liquidation...........................................................5
Certificate................................................................6
Certificate Account........................................................6
Certificate Account Deposit Date...........................................6
Certificateholder" or "Holder..............................................6
Certificate Owner..........................................................6
Certificate Principal Balance..............................................6
Certificate Register.......................................................7
Class .....................................................................7
Class A Certificate........................................................7
Class A-7 Priority Amount..................................................7
Class A-7 Priority Percentage..............................................8
Class A-7 Prepayment Priority Percentage...................................8
Class A-7 Shift Percentage.................................................8
Class B Certificate........................................................8
Class B Percentage.........................................................8
Class B-1 Certificate......................................................8
Class B-1 Percentage.......................................................8
Class B-1 Prepayment Distribution Trigger..................................9
Class B-2 Certificate......................................................9
Class B-2 Percentage.......................................................9
Class B-2 Prepayment Distribution Trigger..................................9
Class B-3 Certificate......................................................9
Class B-3 Percentage.......................................................9
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Class B-3 Prepayment Distribution Trigger.................................10
Class M Certificate.......................................................10
Class M Percentage........................................................10
Class M-1 Certificate.....................................................10
Class M-1 Percentage......................................................10
Class M-1-X Certificate...................................................10
Class M-2 Certificate.....................................................10
Class M-2 Percentage......................................................11
Class M-2 Prepayment Distribution Trigger.................................11
Class M-2-X Certificate...................................................11
Class M-3 Certificate.....................................................11
Class M-3 Percentage......................................................11
Class M-3 Prepayment Distribution Trigger.................................11
Closing Date..............................................................12
Code .....................................................................12
Collateral Value..........................................................12
Commission................................................................12
Compensating Interest.....................................................12
Corporate Trust Office....................................................12
Curtailment...............................................................12
Custodial Account.........................................................13
Cut-off Date..............................................................13
Debt Service Reduction....................................................13
Defaulted Mortgage Loan...................................................13
Deficient Valuation.......................................................13
Definitive Certificate....................................................13
Deleted Mortgage Loan.....................................................13
Depositor.................................................................13
Depository................................................................13
Depository Participant....................................................14
Determination Date........................................................14
Discount Fraction.........................................................14
Discount Mortgage Loan....................................................14
Disqualified Organization.................................................14
Distribution Date.........................................................14
Due Date .................................................................14
Due Period................................................................15
Eligible Account..........................................................15
Eligible Funds............................................................15
Event of Default..........................................................15
Excess Bankruptcy Loss....................................................15
Excess Fraud Loss.........................................................15
Excess Proceeds...........................................................15
Excess Special Hazard Loss................................................16
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Extraordinary Events......................................................16
Extraordinary Losses......................................................16
Fannie Mae................................................................16
FDIC .....................................................................16
Fraud Loss Amount.........................................................17
Fraud Losses..............................................................17
Freddie Mac...............................................................17
Funding Date..............................................................17
Initial Certificate Principal Balance.....................................17
Initial Notional Amount...................................................17
Insurance Policy..........................................................17
Insurance Proceeds........................................................18
Interest Accrual Period...................................................18
Interest Only Certificate.................................................18
Late Collections..........................................................18
LIBOR .................................................................18
LIBOR Business Day........................................................18
Liquidation Proceeds......................................................18
Loan-to-Value Ratio.......................................................18
Lost Note Affidavit.......................................................19
Maturity Date.............................................................19
Master Servicer...........................................................19
Monthly Payment...........................................................19
Moody's .................................................................19
Mortgage .................................................................19
Mortgage File.............................................................19
Mortgage Loan.............................................................19
Mortgage Loan Purchase Agreement..........................................19
Mortgage Loan Schedule....................................................20
Mortgage Note.............................................................21
Mortgage Rate.............................................................21
Mortgaged Property........................................................21
Mortgagor.................................................................21
Net Mortgage Rate.........................................................21
Non-Discount Mortgage Loan................................................21
Nonrecoverable Advance....................................................21
Non-United States Person..................................................22
Notional Amount...........................................................22
Officers' Certificate.....................................................22
Opinion of Counsel........................................................22
Original Senior Percentage................................................23
OTS ......................................................................23
Outstanding Mortgage Loan.................................................23
Ownership Interest........................................................23
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Pass-Through Rate.........................................................23
Percentage Interest.......................................................24
Permitted Investment......................................................24
Permitted Transferee......................................................25
Person ...................................................................25
Pool Strip Rate...........................................................25
Prepayment Distribution Percentage........................................26
Prepayment Distribution Trigger...........................................27
Prepayment Interest Shortfall.............................................27
Prepayment Period.........................................................27
Primary Hazard Insurance Policy...........................................27
Primary Insurance Policy..................................................27
Principal Only Certificates...............................................27
Principal Prepayment......................................................28
Principal Prepayment in Full..............................................28
Purchase Price............................................................28
Qualified Insurer.........................................................28
Qualified Substitute Mortgage Loan........................................28
Radian ...................................................................29
Radian Insured Loans......................................................29
Radian PMI Policy.........................................................29
Radian PMI Policy Rate....................................................29
Rate Adjustment Date......................................................29
Rating Agency.............................................................29
Realized Loss.............................................................30
Record Date...............................................................30
Regular Certificate.......................................................30
Relief Act................................................................30
REMIC ....................................................................30
REMIC Provisions..........................................................31
Remittance Report.........................................................31
REO Acquisition...........................................................31
REO Disposition...........................................................31
REO Imputed Interest......................................................31
REO Proceeds..............................................................32
REO Property..............................................................32
Request for Release.......................................................32
Reserve Banks.............................................................32
Reserve Interest Rate.....................................................32
Residual Certificate......................................................32
Responsible Officer.......................................................32
Seller ...................................................................33
Senior Accelerated Distribution Percentage................................33
Senior Interest Distribution Amount.......................................34
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Senior Percentage.........................................................34
Senior Principal Distribution Amount......................................34
Servicing Account.........................................................34
Servicing Advances........................................................34
Servicing Fees............................................................34
Servicing Fee Rate........................................................35
Servicing Officer.........................................................35
Single Certificate........................................................35
Special Deposit...........................................................35
Special Hazard Amount.....................................................35
Special Hazard Loss.......................................................36
Special Hazard Percentage.................................................36
Standard & Poor's.........................................................36
Startup Day...............................................................36
Stated Principal Balance..................................................36
Subordinate Certificate...................................................36
Subordinate Percentage....................................................36
Subordinate Principal Distribution Amount.................................37
Sub-Servicer..............................................................37
Sub-Servicer Remittance Date..............................................37
Sub-Servicing Account.....................................................37
Sub-Servicing Agreement...................................................37
Tax Returns...............................................................37
Transfer .................................................................38
Transferor................................................................38
Trust Fund................................................................38
Trustee .................................................................38
Trustee's Fee.............................................................38
Trustee Fee Rate..........................................................38
Uncertificated Principal Balance..........................................38
Uncertificated REMIC I Accrued Interest...................................38
Uncertificated REMIC I IO Notional Amount.................................39
Uncertificated REMIC I IO Regular Interests...............................39
Uncertificated REMIC I Pass-Through Rate..................................40
Uncertificated REMIC I Regular Interest N.................................40
Uncertificated REMIC I Regular Interest O.................................40
Uncertificated REMIC I Regular Interest P.................................40
Uncertificated REMIC I Regular Interest Q.................................40
Uncertificated REMIC I Regular Interest S.................................41
Uncertificated REMIC I Regular Interest T.................................41
Uncertificated REMIC I Regular Interest U.................................41
Uncertificated REMIC I Regular Interest W.................................41
Uncertificated REMIC I Regular Interest X.................................41
Uncertificated REMIC I Regular Interest Y.................................41
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Uncertificated REMIC I Regular Interests..................................42
Uncertificated REMIC I IO Regular Interest Distribution Amount............42
Uncertificated REMIC I Regular Interest N Distribution Amount.............42
Uncertificated REMIC I Regular Interest O Distribution Amount.............42
Uncertificated REMIC I Regular Interest P Distribution Amount.............42
Uncertificated REMIC I Regular Interest Q Distribution Amount.............42
Uncertificated REMIC I Regular Interest S Distribution Amount.............42
Uncertificated REMIC I Regular Interest T Distribution Amount.............42
Uncertificated REMIC I Regular Interest U Distribution Amount.............42
Uncertificated REMIC I Regular Interest W Distribution Amount.............43
Uncertificated REMIC I Regular Interest X Distribution Amount.............43
Uncertificated REMIC I Regular Interest Y Distribution Amount.............43
Uncertificated REMIC I Regular Interest Distribution Amounts..............43
Uninsured Cause...........................................................43
United States Person......................................................43
Voting Rights.............................................................44
Wendover .................................................................44
1.02 Determination of LIBOR.............................................44
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF CERTIFICATES.........................................45
2.01. Conveyance of Mortgage Loans.......................................45
2.02. Acceptance of the Trust Fund by the Trustee........................48
2.03. Representations, Warranties and Covenants of the Master Servicer
and the Depositor..................................................49
2.04. Representations and Warranties of the Seller.......................51
2.05. Issuance of Certificates Evidencing Interests in the REMIC I
Certificates.......................................................53
2.06. Conveyance of Uncertificated REMIC I Regular Interests;
Acceptance by the Trustee..........................................53
2.07. Issuance of Certificates Evidencing Interest in REMIC II...........54
ARTICLE III
ADMINISTRATION AND SERVICING
OF THE TRUST FUND.........................................................55
3.01. Master Servicer to Act as Master Servicer..........................55
3.02. Sub-Servicing Agreements Between Master Servicer and
Sub-Servicers......................................................56
3.03. Successor Sub-Servicers............................................57
3.04. Liability of the Master Servicer...................................57
3.05. No Contractual Relationship Between Sub-Servicers and Trustee
or Certificateholders..............................................58
3.06. Assumption or Termination of Sub-Servicing Agreements by Trustee...58
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3.07. Collection of Certain Mortgage Loan Payments.......................59
3.08. Sub-Servicing Accounts.............................................60
3.09. Collection of Taxes, Assessments and Similar Items; Servicing
Accounts......................... .................................61
3.10. Custodial Account..................................................61
3.11. Permitted Withdrawals From the Custodial Account...................62
3.12. Permitted Investments..............................................63
3.13. Maintenance of Primary Hazard Insurance. ..........................64
3.14. Enforcement of Due-on-Sale Clauses; Assumption Agreements..........66
3.15. Realization Upon Defaulted Mortgage Loans..........................67
3.16. Trustee to Cooperate; Release of Mortgage Files....................68
3.17. Servicing Compensation.............................................70
3.18. Maintenance of Certain Servicing Policies..........................70
3.19. Annual Statement as to Compliance..................................71
3.20. Annual Independent Public Accountants' Servicing Statement.........71
3.21. Access to Certain Documentation....................................72
3.22. Title, Conservation and Disposition of REO Property................72
3.23. Additional Obligations of the Master Servicer......................74
3.24 Optional Purchase of Defaulted Mortgage Loans......................75
3.25. Additional Obligations of the Depositor............................75
3.26. Periodic Filings with the Securities and Exchange Commission;
Additional Information.............................................75
ARTICLE IV
PAYMENTS TO CERTIFICATEHOLDERS............................................77
4.01. Certificate Account; Distributions.................................77
4.02. Statements to Certificateholders...................................85
4.03. Remittance Reports; Advances by the Master Servicer................88
4.04. Allocation of Realized Losses......................................89
4.05. Information Reports to Be Filed by the Master Servicer.............91
4.06. Compliance with Withholding Requirements...........................91
ARTICLE V
THE CERTIFICATES..........................................................93
5.01. The Certificates...................................................93
5.02. Registration of Transfer and Exchange of Certificates..............95
5.03. Mutilated, Destroyed, Lost or Stolen Certificates.................100
5.04. Persons Deemed Owners.............................................100
5.05. Rule 144A Information.............................................100
ARTICLE VI
THE DEPOSITOR AND THE MASTER SERVICER....................................101
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6.01. Liability of the Depositor and the Master Servicer................101
6.02. Merger, Consolidation or Conversion of the Depositor or the
Master Servicer ..................................................101
6.03. Limitation on Liability of the Depositor, the Master Servicer
and Others...................... .................................101
6.04. Limitation on Resignation of the Master Servicer..................102
6.05. Sale and Assignment of Master Servicing...........................103
ARTICLE VII
DEFAULT..................................................................104
7.01. Events of Default.................................................104
7.02. Trustee to Act; Appointment of Successor..........................106
7.03. Notification to Certificateholders................................107
7.04. Waiver of Events of Default.......................................107
7.05. List of Certificateholders........................................107
ARTICLE VIII
CONCERNING THE TRUSTEE...................................................108
8.01. Duties of Trustee.................................................108
8.02. Certain Matters Affecting the Trustee.............................109
8.03. Trustee Not Liable for Certificates or Mortgage Loans.............110
8.04. Trustee May Own Certificates......................................111
8.05. Trustee's Fees....................................................111
8.06. Eligibility Requirements for Trustee..............................111
8.07. Resignation and Removal of the Trustee............................112
8.08. Successor Trustee.................................................113
8.09. Merger or Consolidation of Trustee................................113
8.10. Appointment of Co-Trustee or Separate Trustee.....................114
SECTION 8.11. Appointment of Custodians..............................115
ARTICLE IX
TERMINATION..............................................................116
9.01. Termination Upon Repurchase or Liquidation of All Mortgage
Loans or upon Purchase of Certificates............................116
9.03. Additional Termination Requirements...............................119
ARTICLE X
REMIC PROVISIONS.........................................................121
10.01. REMIC Administration..............................................121
10.02. Prohibited Transactions and Activities............................124
10.03. Master Servicer and Trustee Indemnification.......................124
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ARTICLE XI
MISCELLANEOUS PROVISIONS.................................................125
11.01. Amendment.........................................................125
11.02. Recordation of Agreement; Counterparts............................126
11.03. Limitation on Rights of Certificateholders........................127
11.04. Governing Law.....................................................127
11.05. Notices...........................................................128
11.06. Severability of Provisions........................................128
11.07. Successors and Assigns; Third Party Beneficiary...................128
11.08. Article and Section Headings......................................128
11.09. Notice to Rating Agencies.........................................129
Signatures
Acknowledgments
Exhibit A Form of Class A Certificate
Exhibit B-1 Form of Class M Certificate
Exhibit B-2 Form of Class B Certificate
Exhibit B-3 Form of Class R-I and Class R-II Certificate
Exhibit C [Reserved]
Exhibit D [Reserved]
Exhibit E Form of Remittance Report
Exhibit F [Reserved]
Exhibit G-1 Form of Investor Representation Letter
Exhibit G-2 Form of Transferor Representation Letter
Exhibit G-3 Form of Rule 144A Investment Representation
Exhibit G-4 Transferor Certificate for Transfers of Residual Certificates
Exhibit G-5 Transfer Affidavit and Agreement for Transfers of Residual
Certificates
Exhibit G-6 Form of Investor Representation Letter for Insurance Companies
Exhibit H Mortgage Loan Schedule
Exhibit I Seller Representations and Warranties
Exhibit J Form of Notice Under Section 3.25
Exhibit K Schedule of Discount Fractions
Exhibit L Form of Custodial Agreement
ix
This Pooling and Servicing Agreement, dated and effective as of
December 1, 1999, among Impac Secured Assets Corp., as depositor (the
"Depositor"), Impac Funding Corporation, as master servicer (the "Master
Servicer"), and Norwest Bank Minnesota, National Association, as trustee (the
"Trustee").
PRELIMINARY STATEMENT:
The Depositor intends to sell mortgage pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Mortgage Loans (as defined herein). As provided herein, the Trustee will
make, in accordance with Section 10.01, an election to treat the entire
segregated pool of assets described in the definition of REMIC I (as defined
herein), and subject to this Agreement (including the Mortgage Loans), as a real
estate mortgage investment conduit (a "REMIC") for federal income tax purposes
and such segregated pool of assets will be designated as "REMIC I." The
Uncertificated REMIC I Regular Interests will be "regular interests" in REMIC I
and the Class R-I Certificates will be the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions (as defined herein) under the
federal income tax law. A segregated pool of assets consisting of the
Uncertificated REMIC I Regular Interests will be designated as "REMIC II," and
the Trustee will make, in accordance with Section 10.01, a separate REMIC
election with respect thereto. The Class A-1, Class A-2, Class A-3, Class A-4,
Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class M-1, Class M-1-X,
Class M-2, Class M-2-X, Class M-3, Class B-1, Class B-2 and Class B-3
Certificates will be "regular interests" in REMIC II, and the Class R-II
Certificates will be the sole class of "residual interests" therein for purposes
of the REMIC Provisions (as defined herein) under federal income tax law.
The following table irrevocably sets forth the designation, the
Uncertificated REMIC I Pass- Through Rate, the initial Uncertificated Balance
and, solely for purposes of satisfying Treasury regulation Section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each of the REMIC I
Regular Interests. None of the REMIC I Regular Interests will be certificated.
Uncertificated REMIC I Initial Uncertificated
Latest Possible
Designation Pass-Through Rate Principal Balance
Maturity Date(1)
----------- ----------------- -----------------
----------------
Uncertificated REMIC I 9.00% $68,900,000.00
January 25, 2030
Regular Interest N
Uncertificated REMIC I 9.00% $70,000,000.00
January 25, 2030
Regular Interest O
Uncertificated REMIC I 9.00% $33,548,430.00
January 25, 2030
Regular Interest P
Uncertificated REMIC I 9.00% $36,500,000.00
January 25, 2030
Regular Interest Q
Uncertificated REMIC I 0.00% $2,741,660.00
January 25, 2030
Regular Interest S
Uncertificated REMIC I 9.00% $100.00
January 25, 2030
Regular Interest T
-2-
Uncertificated REMIC I 9.00% $9,434,000.00
January 25, 2030
Regular Interest U
Uncertificated REMIC I 9.00% $4,027,000.00
January 25, 2030
Regular Interest W
REMIC I Regular Interest X 9.00% $1,725,000.00
January 25, 2030
REMIC I Regular Interest Y 9.00% $3,222,457.00
January 25, 2030
REMIC I IO Regular Interest Variable(2) $(3)
January 25, 2030
___________________________
(1) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date immediately following the latest
possible maturity date for the Mortgage Loans has been designated as the
"latest possible maturity date" for each REMIC I Regular Interest.
(2) Calculated in accordance with the definition of "Uncertificated REMIC I
Pass-Through Rate" herein.
(3) Based on the Uncertificated REMIC I IO Notional Amount.
The following table sets forth the designation, initial Pass-Through
Rate, aggregate initial Certificate Principal Balance and certain features for
each Class of Certificates comprising the certificated interests in the Trust
Fund created hereunder.
Aggregate Initial
Certificate
Initial
Pass-Through Principal
Maturity Ratings
Designation Type Rate Balance
Designations Date S&P DCR
- ----------- ------- --------------- ------------------
------------------------------ ----------------- -------- ---
Class A-1 Senior 7.35% $68,900,000.00
Senior/Fixed Rate January 25, 2030 AAA AAA
Class A-2 Senior Adjustable Rate $70,000,000.00
Senior/Floating Rate January 25, 2030 AAA AAA
Class A-3 Senior Adjustable Rate $33,548,430.00
Senior/Floating Rate January 25, 2030 AAA AAA
Class A-4 Senior Adjustable Rate $0(1)
Senior/Interest Only/ January 25, 2030 AAAr AAA
Inverse
Floating Rate
Class A-5 Senior 9.00% $0(1) Senior/Interest
Only/Fixed Rate January 25, 2030 AAAr AAA
Class A-6 Senior 9.00% $0(1) Senior/Interest
Only/Fixed Rate January 25, 2030 AAAr AAA
Class A-7 Senior 7.50% $36,500,000.00
Senior/Lockout/Fixed Rate January 25, 2030 AAA AAA
Class A-8 Senior 0.00% $2,741,660.00
Senior/Principal Only January 25, 2030 AAAr AAA
Class A-9 Senior 9.00% $0(1) Senior/Interest
Only/Fixed Rate January 25, 2030 AAAr AAA
Class R-I Senior 9.00% $100.00
Senior/Residual January 25, 2030 AAA AAA
Class R-II Senior 9.00% $100.00
Senior/Residual January 25, 2030 AAA AAA
Class M-1 Mezzanine 8.00% $9,434,000.00
Mezzanine/Fixed Rate January 25, 2030 N/A AA
Class M-1-X Mezzanine 9.00% 0(1)
Mezzanine/Interest Only/ January 25, 2030 N/A AA
Fixed
Rate
Class M-2 Mezzanine 8.25% $4,207,000.00
Mezzanine/Fixed Rate January 25, 2030 N/A A
Class M-2-X Mezzanine 9.00% 0(1)
Mezzanine/Interest Only/ January 25, 2030 N/A A
Fixed
Rate
Class M-3 Mezzanine 9.00% $1,725,000.00
Mezzanine/Fixed Rate January 25, 2030 N/A BBB
Class B-1 Subordinate 9.00% $1,265,000.00
Subordinate/Fixed Rate January 25, 2030 N/A BB
Class B-2 Subordinate 9.00% $575,000.00
Subordinate/Fixed Rate January 25, 2030 N/A B
Class B-3 Subordinate 9.00% $1,382,456.99
Subordinate/Fixed Rate January 25, 2030 N/A N/A
___________________________
-3-
(1) Based on the related Notional Amount.
Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the Distribution Date immediately following the maturity date for
the Mortgage Loan with the latest maturity date in the Mortgage Pool has been
designated as the "latest possible maturity date" for the Certificates.
As of the Cut-off Date, the Mortgage Loans have an aggregate Stated
Principal Balance equal to approximately $230,098,747.
In consideration of the mutual agreements herein contained, the Depositor,
the Master Servicer and the Trustee agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms.
Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the meanings specified in this
Article.
"Accrued Certificate Interest": With respect to each Distribution
Date, (a) as to any Certificate other than the Interest Only Certificates and
the Principal Only Certificates, interest accrued during the related Interest
Accrual Period at the related Pass-Through Rate on the Certificate Principal
Balance thereof immediately prior to such Distribution Date; (b) as to any
Interest Only Certificate (other than the Class A-9 Certificates), interest
accrued during the related Interest Accrual Period at the then-applicable
Pass-Through Rate on the related Notional Amount thereof immediately prior to
such Distribution Date; and (c) as to the Class A-9 Certificates, the aggregate
amount of interest accrued during the related Interest Accrual Period at the
then applicable Uncertificated REMIC I Pass-Through Rate on each Uncertificated
REMIC I IO Regular Interest on the related Uncertificated REMIC I IO Notional
Amount thereof immediately prior to such Distribution Date. Accrued Certificate
Interest will be calculated on the basis of a 360-day year consisting of twelve
30-day months. In each case Accrued Certificate Interest on any Class of
Certificates will be reduced by the amount of (i) Prepayment Interest
Shortfalls, if any, which are not covered by the Master Servicer with a payment
of Compensating Interest pursuant to Section 3.23 with respect to such
Distribution Date, (ii) the interest portion (adjusted to the related Net
Mortgage Rate) of Realized Losses (including Excess Special Hazard Losses,
Excess Fraud Losses, Excess Bankruptcy Losses and Extraordinary Losses) not
allocated solely to one or more Classes of Certificates pursuant to Section 4.04
and (iii) any other interest shortfalls not covered by the subordination
provided by the Class M Certificates or Class B Certificates, including interest
that is not collectible from the Mortgagor pursuant to the Relief Act or similar
legislation or regulations
-4-
as in effect from time to time, with all such reductions in clauses (i) through
(iii) allocated among all of the Certificates in proportion to their respective
amounts of Accrued Certificate Interest payable on such Distribution Date which
would have resulted absent such reductions. In addition to that portion of the
reductions described in the preceding sentence that are allocated to any Class
of Class M Certificates or Class B Certificates, Accrued Certificate Interest on
any Class of the Class M Certificates or Class B Certificates, as applicable,
will be reduced by the interest portion (adjusted to the related Net Mortgage
Rate) of the portion of Realized Losses that are allocated solely to the Class M
and Class B Certificates, as applicable, pursuant to Section 4.04. The Principal
Only Certificates do not have a Pass-Through Rate and are not entitled to
Accrued Certificate Interest.
"Advance": As to any Mortgage Loan, any advance made by the Master
Servicer on any Distribution Date pursuant to Section 4.03.
"Aggregate Stated Principal Balance": As of any date of determination,
the aggregate Stated Principal Balance of the Mortgage Loans.
"Agreement": This Pooling and Servicing Agreement and all amendments
hereof.
"Anniversary": Each anniversary of December 1, 1999.
"Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect of
record the sale of the Mortgage.
"Available Distribution Amount": With respect to any Distribution
Date, an amount equal to (a) the sum of (i) the balance on deposit in the
Custodial Account as of the close of business on the related Determination Date
and (ii) the aggregate amount of any Advances made and all amounts required to
be paid by the Master Servicer pursuant to Sections 3.13 and 3.23 by deposits
into the Certificate Account on the immediately preceding Certificate Account
Deposit Date, reduced by (b) the sum, as of the close of business on the related
Determination Date, of (i) Monthly Payments collected but due during a Due
Period subsequent to the Due Period ending on the first day of the month of the
related Distribution Date, (ii) all interest or other income earned on deposits
in the Custodial Account or the Certificate Account, (iii) any other amounts
reimbursable or payable to the Trustee, Master Servicer or any Sub-Servicer
pursuant to Section 3.11, (iv) the Servicing Fees payable on such Distribution
Date and (v) Insurance Proceeds, Liquidation Proceeds, Principal Prepayments,
REO Proceeds and the proceeds of Mortgage Loan purchases made pursuant to
Section 2.02, 2.04, 3.14, 3.22 or 3.24, in each case received or made in the
month of such Distribution Date.
"Balloon Loan": Each of the Mortgage Loans identified in the Mortgage
Loan Schedule as having an original term to maturity that is shorter than the
related amortization term.
-5-
"Balloon Payment": With respect to any Balloon Loan, the related
Monthly Payment payable on the stated maturity date of such Balloon Loan.
"Bankruptcy Amount": As of any date of determination prior to the
first Anniversary, an amount equal to the excess, if any, of (A) $125,285 over
(B) the aggregate amount of Bankruptcy Losses allocated solely to one or more
specific Classes of Certificates in accordance with Section 4.04. As of any date
of determination on or after the first Anniversary, an amount equal to the
excess, if any, of the lesser of (a) the Bankruptcy Amount calculated as of the
close of business on the Business Day immediately preceding the most recent
Anniversary coinciding with or preceding such date of determination (or, if such
date of determination is an Anniversary, the Business Day immediately preceding
such date of determination) (for purposes of this definition, the "Relevant
Anniversary") and (b) the greater of (i) $75,000 and (ii) 0.0006 times the
aggregate principal balance of all the Mortgage Loans in the Mortgage Pool as of
the Relevant Anniversary having a Loan-to-Value Ratio at origination which
exceeds 75%.
The Bankruptcy Amount may be further reduced by the Master Servicer
(including accelerating the manner in which such coverage is reduced) provided
that prior to any such reduction, the Master Servicer shall (i) obtain written
confirmation from each Rating Agency that such reduction shall not reduce the
rating assigned to any Class of Certificates by such Rating Agency below the
lower of the then-current rating or the rating assigned to such Certificates as
of the Closing Date by such Rating Agency and (ii) provide a copy of such
written confirmation to the Trustee.
"Bankruptcy Code": The Bankruptcy Code of 1978, as amended.
"Bankruptcy Loss": With respect to any Mortgage Loan, a Deficient
Valuation or Debt Service Reduction.
"Book-Entry Certificate": Any Certificate registered in the name of
the Depository or its nominee.
"Business Day": Any day other than a Saturday, a Sunday or a day on
which banking institutions in California, Maryland or New York (and such other
state or states in which the Custodial Account or the Certificate Account are at
the time located) or in the city in which the Corporate Trust Office of the
Trustee is located are authorized or obligated by law or executive order to
close.
"Cash Liquidation": As to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition occurred, a determination by the
Master Servicer that it has received all Insurance Proceeds, Liquidation
Proceeds and other payments or cash recoveries which the
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Master Servicer reasonably and in good faith expects to be finally recoverable
with respect to such Mortgage Loan.
"Certificate": Any Class A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class M-1, Class M-1-X, Class
M-2, Class M-2-X, Class M-3, Class B-1, Class B-2, Class B-3, Class R-I or Class
R-II Certificate.
"Certificate Account": The trust account or accounts created and
maintained pursuant to Section 4.01, which shall be entitled "Norwest Bank
Minnesota, National Association, in trust for registered holders of Impac
Secured Assets Corp., Mortgage Pass-Through Certificates, Series 1999- 2, and
which account or accounts must each be an Eligible Account.
"Certificate Account Deposit Date": With respect to any Distribution
Date, the third Business Day immediately preceding such Distribution Date.
"Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that only a
Permitted Transferee shall be a holder of a Residual Certificate for any
purposes hereof and, solely for the purposes of giving any consent pursuant to
this Agreement, any Certificate registered in the name of the Depositor or the
Master Servicer or any affiliate thereof shall be deemed not to be outstanding
and the Voting Rights to which such Certificate is entitled shall not be taken
into account in determining whether the requisite percentage of Voting Rights
necessary to effect any such consent has been obtained, except as otherwise
provided in Section 11.01. The Trustee shall be entitled to rely upon a
certification of the Depositor or the Master Servicer in determining if any
Certificates are registered in the name of the respective affiliate. All
references herein to "Holders" or "Certificateholders" shall reflect the rights
of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee shall be required to recognize as a
"Holder" or "Certificateholder" only the Person in whose name a Certificate is
registered in the Certificate Register.
"Certificate Owner": With respect to a Book-Entry Certificate, the
Person who is the beneficial owner of such Certificate, as reflected on the
books of an indirect participating brokerage firm for which a Depository
Participant acts as agent, if any, and otherwise on the books of a Depository
Participant, if any, and otherwise on the books of the Depository.
"Certificate Principal Balance": With respect to any Certificate other
than an Interest Only Certificate, on any date of determination, an amount equal
to (i) the Initial Certificate Principal Balance of such Certificate as
specified on the face thereof, minus (ii) the sum of (a) the aggregate of all
amounts previously distributed with respect to such Certificate (or any
predecessor Certificate) and applied to reduce the Certificate Principal Balance
thereof pursuant to Section 4.01, and (b) the aggregate of all reductions in
Certificate Principal Balance deemed to have occurred in connection
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with Realized Losses which were previously allocated to such Certificate (or any
predecessor Certificate) pursuant to Section 4.04. With respect to each Class M
Certificate, on any date of determination, an amount equal to (i) the Initial
Certificate Principal Balance of such Class M Certificate as specified on the
face thereof, minus (ii) the sum of (x) the aggregate of all amounts previously
distributed with respect to such Certificate (or any predecessor Certificate)
and applied to reduce the Certificate Principal Balance thereof pursuant to
Section 4.01 and (y) the aggregate of all reductions in Certificate Principal
Balance deemed to have occurred in connection with Realized Losses which were
previously allocated to such Certificate (or any predecessor Certificate)
pursuant to Section 4.04; provided, that if the Certificate Principal Balances
of all of the Class B Certificates have been reduced to zero, the Certificate
Principal Balance of each Class M Certificate of those Class M Certificates
outstanding with the highest numerical designation at any given time shall
thereafter be calculated to equal the Percentage Interest evidenced by such
Certificate times the excess, if any, of (A) the then aggregate Stated Principal
Balance of the Mortgage Loans over (B) the then aggregate Certificate Principal
Balance of all Certificates of all other Classes then outstanding. With respect
to each Class B Certificate, on any date of determination, an amount equal to
(i) the Initial Certificate Principal Balance of such Class B Certificate as
specified on the face thereof, minus (ii) the sum of (x) the aggregate of all
amounts previously distributed with respect to such Certificate (or any
predecessor Certificate) and applied to reduce the Certificate Principal Balance
thereof pursuant to Section 4.01 and (y) the aggregate of all reductions in
Certificate Principal Balance deemed to have occurred in connection with
Realized Losses which were previously allocated to such Certificate (or any
predecessor Certificate) pursuant to Section 4.04; provided, that the
Certificate Principal Balance of each Class B Certificate of those Class B
Certificates outstanding with the highest numerical designation at any given
time shall be calculated to equal the Percentage Interest evidenced by such
Certificate times the excess, if any, of (A) the then aggregate Stated Principal
Balance of the Mortgage Loans over (B) the then aggregate Certificate Principal
Balance of all Certificates of all other Classes then outstanding. The Interest
Only Certificates have no Certificate Principal Balance.
"Certificate Register": The register maintained pursuant to Section
5.02.
"Class": Collectively, all of the Certificates bearing the same
designation.
"Class A Certificate": Any one of the Class A-1, Class A-2, Class A-3,
Class A-4, Class A-5, Class A-6, Class A-7, Class A-8 or Class A-9 Certificates,
each executed, authenticated and delivered by the Trustee substantially in the
form annexed hereto as Exhibit A and each evidencing an interest designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions.
"Class A-7 Priority Amount": For any Distribution Date, the lesser of
(i) the Certificate Principal Balance of the Class A-7 Certificates and (ii) the
sum of (x) the product of (1) the Class A-7 Priority Percentage, (2) the Class
A-7 Shift Percentage, and (3) the amounts described
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in Section 4.01(c)(ii)(Y)(A) (without giving effect to the Senior Percentage)
and (y) the product of (1) the Class A-7 Priority Percentage, (2) the Class A-7
Prepayment Priority Percentage and (3) the amounts described in Section
4.01(c)(ii)(Y)(B) and (C) (in each case without giving effect to the Senior
Percentage or the Senior Accelerated Distribution Percentage).
"Class A-7 Priority Percentage" With respect to any Distribution Date,
the lesser of (i) 100% and (ii) a fraction equal to (x) the sum of (a) the
Certificate Principal Balance of the Class A-7 Certificates immediately prior to
such Distribution Date and (b) $17,000,000 divided by (y) the aggregate Stated
Principal Balance of the Mortgage Loans (other than the related Discount
Fraction of each Discount Mortgage Loan).
"Class A-7 Prepayment Priority Percentage" With respect to any
Distribution Date, the percentage indicated below:
Class A-7 Prepayment
Month of Distribution Date Priority Percentage
-------------------------- -------------------
January 2000 through December 2004......... 0%
January 2005 through December 2005......... 30%
January 2006 through December 2006......... 40%
January 2007 through December 2007......... 60%
January 2008 through December 2008......... 80%
January 2009 and thereafter................ 100%
"Class A-7 Shift Percentage" With respect to any Distribution Date on
or prior to the Distribution Date occurring in December 2004, 0%, and
thereafter, 100%.
"Class B Certificate": Any one of the Class B-1 Certificates, Class
B-2 Certificates or Class B-3 Certificates.
"Class B Percentage": The Class B-1 Percentage, Class B-2 Percentage
and Class B-3 Percentage.
"Class B-1 Certificate": Any one of the Class B-1 Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-2, subordinate to the Class A Certificates and the
Class M Certificates with respect to distributions and the allocation of
Realized Losses as set forth in Section 4.04 and evidencing an interest
designated as a "regular interest" in REMIC II for purposes of the REMIC
Provisions.
"Class B-1 Percentage": With respect to any Distribution Date, the
lesser of 100% and a fraction, expressed as a percentage, the numerator of which
is the aggregate Certificate Principal Balance of the Class B-1 Certificates
immediately prior to such Distribution Date and the
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denominator of which is the aggregate Stated Principal Balance of all of the
Mortgage Loans (or related REO Properties) (other than the related Discount
Fraction of each Discount Mortgage Loan) immediately prior to such Distribution
Date.
"Class B-1 Prepayment Distribution Trigger": With respect to any
Distribution Date, a test that shall be satisfied if the fraction (expressed as
a percentage) equal to the sum of the Certificate Principal Balances of the
Class B-1 Certificates, Class B-2 Certificates and Class B-3 Certificates
immediately prior to such Distribution Date divided by the aggregate Stated
Principal Balance of all of the Mortgage Loans (or related REO Properties)
immediately prior to such Distribution Date is greater than or equal to 1.40%.
"Class B-2 Certificate": Any one of the Class B-2 Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-2, subordinate to the Class A Certificates, Class M
Certificates and Class B-1 Certificates with respect to distributions and the
allocation of Realized Losses as set forth in Section 4.04 and evidencing an
interest designated as a "regular interest" in REMIC II for purposes of the
REMIC Provisions.
"Class B-2 Percentage": With respect to any Distribution Date, the
lesser of 100% and a fraction, expressed as a percentage, the numerator of which
is the aggregate Certificate Principal Balance of the Class B-2 Certificates
immediately prior to such Distribution Date and the denominator of which is the
aggregate Stated Principal Balance of all of the Mortgage Loans (and related REO
Properties) (other than the related Discount Fraction of each Discount Mortgage
Loan) immediately prior to such Distribution Date.
"Class B-2 Prepayment Distribution Trigger": With respect to any
Distribution Date, a test that shall be satisfied if the fraction (expressed as
a percentage) equal to the sum of the Certificate Principal Balances of the
Class B-2 Certificates and Class B-3 Certificates immediately prior to such
Distribution Date divided by the aggregate Stated Principal Balance of all of
the Mortgage Loans (and related REO Properties) immediately prior to such
Distribution Date is greater than or equal to 0.85%.
"Class B-3 Certificate": Any one of the Class B-3 Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-2, subordinate to the Class A Certificates, Class M
Certificates, Class B-1 Certificates and Class B-2 Certificates with respect to
distributions and the allocation of Realized Losses as set forth in Section 4.04
and evidencing an interest designated as a "regular interest" in REMIC II for
purposes of the REMIC Provisions.
"Class B-3 Percentage": With respect to any Distribution Date, the
lesser of 100% and a fraction, expressed as a percentage, the numerator of which
is the aggregate Certificate Principal Balance of the Class B-3 Certificates
immediately prior to such Distribution Date and the
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denominator of which is the aggregate Stated Principal Balance of all of the
Mortgage Loans (and related REO Properties) (other than the related Discount
Fraction of each Discount Mortgage Loan) immediately prior to such Distribution
Date.
"Class B-3 Prepayment Distribution Trigger": With respect to any
Distribution Date, a test that shall be satisfied if the fraction (expressed as
a percentage) equal to the aggregate Certificate Principal Balance of the Class
B-3 Certificates immediately prior to such Distribution Date divided by the
aggregate Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) immediately prior to such Distribution Date is greater than or equal
to 0.60%.
"Class M Certificate": Any one of the Class M-1 Certificates, Class
M-1-X Certificates, Class M-2 Certificates, Class M-2-X Certificates or Class
M-3 Certificates.
"Class M Percentage": The Class M-1 Percentage, Class M-2 Percentage
and Class M-3 Percentage.
"Class M-1 Certificate": Any one of the Class M-1 Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-1, subordinate to the Class A Certificates with
respect to distributions and the allocation of Realized Losses as set forth in
Section 4.04 and evidencing an interest designated as a "regular interest" in
REMIC II for purposes of the REMIC Provisions.
"Class M-1 Percentage": With respect to any Distribution Date, the
lesser of 100% and a fraction, expressed as a percentage, the numerator of which
is the aggregate Certificate Principal Balance of the Class M-1 Certificates
immediately prior to such date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) (other than the related Discount Fraction of each Discount Mortgage
Loan) immediately prior to such Distribution Date.
"Class M-1-X Certificate": Any one of the Class M-1-X Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-1, subordinate to the Class A Certificates with
respect to distributions and the allocation of Realized Losses as set forth in
Section 4.04 and evidencing an interest designated as a "regular interest" in
REMIC II for purposes of the REMIC Provisions.
"Class M-2 Certificate": Any one of the Class M-2 Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-1, subordinate to the Class A, Class M-1 and Class
M-1-X Certificates with respect to distributions and the allocation of Realized
Losses as set forth in Section 4.04 and evidencing an interest designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions.
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"Class M-2 Percentage": With respect to any Distribution Date, the
lesser of 100% and a fraction, expressed as a percentage, the numerator of which
is the aggregate Certificate Principal Balance of the Class M-2 Certificates
immediately prior to such date and the denominator of which is the aggregate
Stated Principal Balance of all of the Mortgage Loans (or related REO
Properties) (other than the related Discount Fraction of each Discount Mortgage
Loan) immediately prior to such Distribution Date.
"Class M-2 Prepayment Distribution Trigger": With respect to any
Distribution Date, a test that shall be satisfied if the fraction (expressed as
a percentage) equal to the sum of the Certificate Principal Balances of the
Class M-2 Certificates, Class M-3 Certificates, Class B-1 Certificates, Class
B-2 Certificates and Class B-3 Certificates immediately prior to such
Distribution Date divided by the aggregate Stated Principal Balance of all of
the Mortgage Loans (or related REO Properties) immediately prior to such
Distribution Date is greater than or equal to 3.90%.
"Class M-2-X Certificate": Any one of the Class M-2-X Certificates
executed, authenticated and delivered by the Trustee substantially in the form
annexed hereto as Exhibit B-1, subordinate to the Class A, Class M-1 and Class
M-1-X Certificates with respect to distributions and the allocation of Realized
Losses as set forth in Section 4.04 and evidencing an interest designated as a
"regular interest" in REMIC II for purposes of the REMIC Provisions.
"Class M-3 Certificate": Any one of the Class M-3 Certificates
executed, authenticated and delivered by the
