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Pooling and Servicing Agreement

 

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Title:

Pooling and Servicing Agreement

Entities:

ACE Securities Corp Series 2005 SD1; Deutsche Bank Securities Inc.; Freddie Mac; McGraw-Hill Companies Inc.; National Westminster Bank plc; Wells Fargo Bank, NA; Federal National Mortgage Association

Date:

2005

Size:

Preview shows 38KB of 878KB total

Price:

$99

ID:

#1490342

 

 

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<PAGE>




ACE SECURITIES CORP.
Depositor


OCWEN FEDERAL BANK FSB
a Servicer


OPTION ONE MORTGAGE CORPORATION
a Servicer


SELECT PORTFOLIO SERVICING, INC.
a Servicer


WELLS FARGO BANK, N.A.
Master Servicer and Securities Administrator


HSBC BANK USA, NATIONAL ASSOCIATION
Trustee

POOLING AND SERVICING AGREEMENT

Dated as of January 1, 2005





ACE Securities Corp. Home Equity Loan Trust, Series 2005-SD1
Asset Backed Pass-Through Certificates




<PAGE>


<TABLE>
<CAPTION>


TABLE OF CONTENTS


ARTICLE I DEFINITIONS 4
<S> <C>
SECTION 1.01. Defined Terms..............................................................................4
Accepted Master Servicing Practices.........................................................................4
Accepted Servicing Practices................................................................................4
Account.....................................................................................................4
Accrued Certificate Interest................................................................................4
Adjustable Rate Mortgage Loan...............................................................................4
Adjustment Date.............................................................................................5
Administration Fees.........................................................................................5
Administration Fee Rate.....................................................................................5
Advance Facility............................................................................................5
Advance Financing Person....................................................................................5
Advance Reimbursement Amounts...............................................................................5
Affiliate...................................................................................................5
Aggregate Loss Severity Percentage..........................................................................5
Agreement...................................................................................................5
Amounts Held for Future Distribution........................................................................5
Arrearages..................................................................................................5
Assignment..................................................................................................6
Available Distribution Amount...............................................................................6
Balloon Mortgage Loan.......................................................................................6
Balloon Payment.............................................................................................6
Bankruptcy Code.............................................................................................6
Book-Entry Certificate......................................................................................7
Book-Entry Custodian........................................................................................7
Business Day................................................................................................7
Cap Contract................................................................................................7
Cash-Out Refinancing........................................................................................7
Certificate.................................................................................................7
Certificate Factor..........................................................................................7
Certificate Margin..........................................................................................7
Certificateholder...........................................................................................8
Certificate Owner...........................................................................................8
Certificate Principal Balance...............................................................................8
Certificate Register........................................................................................9
Class.......................................................................................................9
Class A-1 Certificate.......................................................................................9
Class A-1 Principal Distribution Amount.....................................................................9
Class CE Certificate........................................................................................9
Class M Certificates........................................................................................9
Class M-1 Certificate.......................................................................................9
Class M-1 Principal Distribution Amount.....................................................................9
</TABLE>



- i -
<PAGE>

<TABLE>
<CAPTION>

<S> <C>
Class M-2 Certificate.......................................................................................9
Class M-2 Principal Distribution Amount.....................................................................9
Class M-3 Certificate......................................................................................10
Class M-3 Principal Distribution Amount....................................................................10
Class M-4 Certificate......................................................................................10
Class M-4 Principal Distribution Amount....................................................................10
Class P Certificate........................................................................................11
Class R Certificates.......................................................................................11
Class R-I Interest.........................................................................................11
Class R-II Interest........................................................................................11
Closing Date...............................................................................................11
Code.......................................................................................................11
Collection Account.........................................................................................11
Commission.................................................................................................11
Corporate Trust Office.....................................................................................11
Corresponding Certificate..................................................................................12
Credit Enhancement Percentage..............................................................................12
Credit Risk Management Agreements..........................................................................12
Credit Risk Management Fee.................................................................................12
Credit Risk Management Fee Rate............................................................................12
Credit Risk Manager........................................................................................12
Custodial Agreement........................................................................................12
Custodian..................................................................................................13
Cut-off Date...............................................................................................13
Debt Service Reduction.....................................................................................13
Deficient Valuation........................................................................................13
Definitive Certificates....................................................................................13
Deleted Mortgage Loan......................................................................................13
Delinquency Percentage.....................................................................................13
Depositor..................................................................................................13
Depository.................................................................................................13
Depository Institution.....................................................................................13
Depository Participant.....................................................................................14
Determination Date.........................................................................................14
Directly Operate...........................................................................................14
Disqualified Organization..................................................................................14
Distribution Account.......................................................................................14
Distribution Date..........................................................................................15
Due Date...................................................................................................15
Due Period.................................................................................................15
Eligible Account...........................................................................................15
ERISA......................................................................................................15
Estate in Real Property....................................................................................15
Excess Liquidation Proceeds................................................................................15
Extraordinary Trust Fund Expense...........................................................................15
Extra Principal Distribution Amount........................................................................16
</TABLE>



- ii -
<PAGE>


<TABLE>
<CAPTION>

<S> <C>
Fannie Mae.................................................................................................16
FDIC.......................................................................................................16
Final Maturity Date........................................................................................16
Final Recovery Determination...............................................................................16
Fitch......................................................................................................16
Foreclosure Restricted Mortgage Loan.......................................................................16
Freddie Mac................................................................................................16
Gross Margin...............................................................................................16
Independent................................................................................................16
Independent Contractor.....................................................................................17
Index......................................................................................................17
Insurance Proceeds.........................................................................................17
Interest Accrual Period....................................................................................17
Interest Carry Forward Amount..............................................................................17
Interest Determination Date................................................................................17
Interest Distribution Amount...............................................................................18
Interest Remittance Amount.................................................................................18
Last Scheduled Distribution Date...........................................................................18
Late Collections...........................................................................................18
Liquidation Event..........................................................................................18
Liquidation Proceeds.......................................................................................18
Loan-to-Value Ratio........................................................................................19
London Business Day........................................................................................19
Loss Severity Percentage...................................................................................19
Marker Rate................................................................................................19
Master Servicer............................................................................................19
Master Servicer Certification..............................................................................19
Master Servicer Event of Default...........................................................................20
Master Servicer Fee Rate...................................................................................20
Master Servicing Fee.......................................................................................20
Maximum I-LTZZ Uncertificated Interest Deferral Amount.....................................................20
Maximum Mortgage Rate......................................................................................20
MERS.......................................................................................................20
MERS(R) System...............................................................................................20
Mezzanine Certificate......................................................................................20
MIN........................................................................................................20
Minimum Mortgage Rate......................................................................................20
MOM Loan...................................................................................................20
Monthly Payment............................................................................................21
Moody's....................................................................................................21
Mortgage...................................................................................................21
Mortgage File..............................................................................................21
Mortgage Loan..............................................................................................21
Mortgage Loan Documents....................................................................................21
Mortgage Loan Purchase Agreement...........................................................................21
Mortgage Loan Schedule.....................................................................................21
</TABLE>



- iii -
<PAGE>

<TABLE>
<CAPTION>

<S> <C>
Mortgage Note..............................................................................................24
Mortgage Rate..............................................................................................24
Mortgaged Property.........................................................................................24
Mortgagor..................................................................................................24
Net Monthly Excess Cashflow................................................................................24
Net Mortgage Rate..........................................................................................25
Net WAC Pass-Through Rate..................................................................................25
Net WAC Rate Carryover Amount..............................................................................25
New Lease..................................................................................................25
Nonrecoverable P&I Advance.................................................................................25
Nonrecoverable Servicing Advance...........................................................................26
Non-United States Person...................................................................................26
Notional Amount............................................................................................26
Offered Certificates.......................................................................................26
Officer's Certificate......................................................................................26
One-Month LIBOR............................................................................................26
One-Month LIBOR Pass-Through Rate..........................................................................27
Opinion of Counsel.........................................................................................27
Optional Termination Date..................................................................................27
Overcollateralization Amount...............................................................................27
Overcollateralization Increase Amount......................................................................28
Overcollateralization Reduction Amount.....................................................................28
Ownership Interest.........................................................................................28
P&I Advance................................................................................................28
Pass-Through Rate..........................................................................................28
Percentage Interest........................................................................................29
Periodic Rate Cap..........................................................................................29
Permitted Investments......................................................................................29
Permitted Transferee.......................................................................................31
Person.....................................................................................................31
Plan.......................................................................................................31
Prepayment Assumption......................................................................................31
Prepayment Charge..........................................................................................31
Prepayment Charge Schedule.................................................................................31
Prepayment Interest Excess.................................................................................32
Prepayment Interest Shortfall..............................................................................32
Prepayment Period..........................................................................................32
Principal Prepayment.......................................................................................33
Principal Distribution Amount..............................................................................33
Principal Remittance Amount................................................................................34
Purchase Price.............................................................................................33
Qualified Substitute Mortgage Loan.........................................................................34
Rate/Term Refinancing......................................................................................34
Rating Agency or Rating Agencies...........................................................................35
Realized Loss..............................................................................................35
Record Date................................................................................................36
</TABLE>



- iv -
<PAGE>

<TABLE>
<CAPTION>

<S> <C>
Reference Banks............................................................................................36
Refinanced Mortgage Loan...................................................................................36
Regular Certificate........................................................................................36
Regular Interest...........................................................................................36
Relief Act.................................................................................................36
Relief Act Interest Shortfall..............................................................................37
REMIC......................................................................................................37
REMIC I....................................................................................................37
REMIC I Interest Loss Allocation Amount....................................................................37
REMIC I Overcollateralization Amount.......................................................................37
REMIC I Principal Loss Allocation Amount...................................................................37
REMIC I Regular Interest...................................................................................38
REMIC I Regular Interest I-LTAA............................................................................38
REMIC I Regular Interest I-LTA1............................................................................38
REMIC I Regular Interest I-LTM1............................................................................38
REMIC I Regular Interest I-LTM2............................................................................38
REMIC I Regular Interest I-LTM3............................................................................38
REMIC I Regular Interest I-LTM4............................................................................38
REMIC I Regular Interest I-LTP.............................................................................39
REMIC I Regular Interest I-LTZZ............................................................................39
REMIC I Remittance Rate....................................................................................39
REMIC I Required Overcollateralization Amount..............................................................39
REMIC II...................................................................................................39
REMIC II Certificate.......................................................................................39
REMIC II Certificateholder.................................................................................39
REMIC Provisions...........................................................................................39
Remittance Report..........................................................................................39
Rents from Real Property...................................................................................39
REO Account................................................................................................40
REO Disposition............................................................................................40
REO Imputed Interest.......................................................................................40
REO Principal Amortization.................................................................................40
REO Property...............................................................................................40
Required Overcollateralization Amount......................................................................40
Reserve Fund...............................................................................................40
Reserve Interest Rate......................................................................................40
Residential Dwelling.......................................................................................41
Residual Certificate.......................................................................................41
Residual Interest..........................................................................................41
Responsible Officer........................................................................................41
S&P........................................................................................................41
Scheduled Principal Balance................................................................................41
Securities Act.............................................................................................42
Securities Administrator...................................................................................42
Seller.....................................................................................................42
Senior Interest Distribution Amount........................................................................42
</TABLE>




- v -
<PAGE>

<TABLE>
<CAPTION>

<S> <C>
Servicer...................................................................................................42
Servicer Event of Default..................................................................................42
Servicer Remittance Date...................................................................................42
Servicer Report............................................................................................42
Servicing Advances.........................................................................................42
Servicing Fee..............................................................................................43
Servicing Fee Rate.........................................................................................43
Servicing Officer..........................................................................................43
Single Certificate.........................................................................................43
Startup Day................................................................................................44
Stepdown Date..............................................................................................44
Subordinate Certificates...................................................................................44
Subsequent Recoveries......................................................................................44
Sub-Servicer...............................................................................................44
Sub-Servicing Agreement....................................................................................44
Substitution Shortfall Amount..............................................................................44
Tax Returns................................................................................................44
Telerate Page 3750.........................................................................................44
Termination Price..........................................................................................44
Terminator.................................................................................................44
Transfer...................................................................................................45
Transferee.................................................................................................45
Transferor.................................................................................................45
Trigger Event..............................................................................................45
Trust......................................................................................................45
Trust Fund.................................................................................................45
Trust REMIC................................................................................................45
Trustee....................................................................................................45
Uncertificated Balance.....................................................................................45
Uncertificated Interest....................................................................................46
Uninsured Cause............................................................................................46
United States Person.......................................................................................46
Value......................................................................................................46
Voting Rights..............................................................................................47
Wells Fargo................................................................................................47
SECTION 1.02. Allocation of Certain Interest Shortfalls.................................................47

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES 49

SECTION 2.01. Conveyance of the Mortgage Loans..........................................................49
SECTION 2.02. Acceptance of REMIC I by Trustee..........................................................50
SECTION 2.03. Repurchase or Substitution of Mortgage Loans..............................................50
SECTION 2.04. Representations and Warranties of the Master Servicer.....................................53
SECTION 2.05. Representations, Warranties and Covenants of the Servicer.................................54
SECTION 2.06. Issuance of the REMIC I Regular Interests and the Class R-I Interest......................60
</TABLE>



- vi -
<PAGE>

<TABLE>
<CAPTION>

<S> <C>
SECTION 2.07. Conveyance of the REMIC I Regular Interests; Acceptance of REMIC I by the Trustee.........60
SECTION 2.08. Issuance of Class R Certificates..........................................................60
SECTION 2.09. Establishment of the Trust................................................................61

ARTICLE III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS 62

SECTION 3.01. The Servicer to Act as a Servicer.........................................................62
SECTION 3.02. Sub-Servicing Agreements Between the Servicer and Sub-Servicers...........................64
SECTION 3.03. Successor Sub-Servicers...................................................................65
SECTION 3.04. No Contractual Relationship Between Sub-Servicer, Trustee or the Certificateholders.......65
SECTION 3.05. Assumption or Termination of Sub-Servicing Agreement by Successor Servicer................65
SECTION 3.06. Collection of Certain Mortgage Loan Payments..............................................66
SECTION 3.07. Collection of Taxes, Assessments and Similar Items; Servicing Accounts....................66
SECTION 3.08. Collection Account and Distribution Account...............................................67
SECTION 3.09. Withdrawals from the Collection Account and Distribution Account..........................70
SECTION 3.10. Investment of Funds in the Investment Accounts............................................72
SECTION 3.11. Maintenance of Hazard Insurance, Errors and Omissions and Fidelity Coverage and
Primary Mortgage Insurance................................................................74
SECTION 3.12. Enforcement of Due-on-Sale Clauses; Assumption Agreements.................................76
SECTION 3.13. Realization Upon Defaulted Mortgage Loans.................................................77
SECTION 3.14. Trustee to Cooperate; Release of Mortgage Files...........................................79
SECTION 3.15. Servicing Compensation....................................................................80
SECTION 3.16. Collection Account Statements.............................................................81

 

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