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Security Agreement

 

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Title:

Security Agreement

Entities:

Banc of America Securities LLC; Citigroup Global Markets Inc.; Deutsche Bank Trust Company Americas; McGraw-Hill Companies Inc.; New Century Financial Corp.; International Swaps & Derivatives Association, Inc.; Mayer, Brown, Rowe & Maw

Date:

2003

Size:

Preview shows 52KB of 229KB total

Price:

$90

ID:

#292612

 

 

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Start of Preview


 

 


 

 

SECURED LIQUIDITY NOTE MORTGAGE WAREHOUSE PROGRAM

 

 


 

 

SECURITY AGREEMENT

 

 

between

 

 

VON KARMAN FUNDING LLC

 

 

and

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

 

as Collateral Agent

 

 

dated as of September 5, 2003

 

 


 


TABLE OF CONTENTS

 

              Page

ARTICLE I    

 

DEFINITIONS

        1
   

Section 1.01

   Definitions    1

ARTICLE II    

 

OBLIGATIONS SECURED

   1
   

Section 2.01

   Obligations Secured Hereby    1

ARTICLE III    

  REPRESENTATIONS AND WARRANTIES; COMPANY AGENTS AND DEPOSITARY AGENTS; COVENANTS    2
   

Section 3.01

   Representations and Warranties of the Company    2
   

Section 3.02

   Additional Representations and Warranties of the Company    6
   

Section 3.03

   Company Agents and Depositary Agents    6
   

Section 3.04

   Representations and Warranties of the Collateral Agent    7
   

Section 3.05

   Covenants of the Company    7

ARTICLE IV    

 

SECURED LIQUIDITY NOTES

   14
   

Section 4.01

   Conditions to Effectiveness    14
   

Section 4.02

   Issuance of Secured Liquidity Notes    17
   

Section 4.03

   Conditions Precedent to Issuance of Secured Liquidity Notes    17
   

Section 4.04

   Conversion to Extended Notes    19
   

Section 4.05

   Proceeds    19
   

Section 4.06

   Calculation of Extended Note Interest    19
   

Section 4.07

   Payment of Extended Note Interest    21
   

Section 4.08

   Payment of Senior Note Principal    21
   

Section 4.09

   Program Size    22

ARTICLE V    

 

ASSIGNMENT

        22
   

Section 5.01

   Assignment    22
   

Section 5.02

   Application of Assigned Collateral    24
   

Section 5.03

   Performance of Agreements    25
   

Section 5.04

   Amendments; Waivers    26
   

Section 5.05

   Location of Records    26
   

Section 5.06

   Notice of Default under Program Documents    26
   

Section 5.07

   Custody of Program Documents    26
   

Section 5.08

   Delivery of Assigned Collateral Including Eligible Investments    26

 

-i-


TABLE OF CONTENTS

(continued)

 

              Page

   

Section 5.09

   Deliveries of Mortgage Loans    27
   

Section 5.10

   No Liability    27

ARTICLE VI

 

COLLATERAL ACCOUNT; RESERVE FUND; PAYMENT OF ALLOCATED EXPENSES

   27
   

Section 6.01

   Establishment of Collateral Account    27
   

Section 6.02

   Assignment of Collateral Account    28
   

Section 6.03

   Withdrawals and Transfers from the Collateral Account, Reserve Fund    28
   

Section 6.04

   Eligible Investments    32
   

Section 6.05

   Reserve Fund, Market Value Reserve Account    32
   

Section 6.06

   Payment of Allocated Expenses    35
   

Section 6.07

   Market Value Events    35

ARTICLE VII

 

DEFAULT

        36
   

Section 7.01

   Events of Default    36
   

Section 7.02

   Rights of the Collateral Agent Upon Default    38
   

Section 7.03

   Realization upon Collateral; Remedies    39
   

Section 7.04

   Waiver of Stays, etc    40

ARTICLE VIII

 

ADDITIONAL COLLATERAL DISPOSITION PROVISIONS

   40
   

Section 8.01

   Disposition of Mortgage Loans    40
   

Section 8.02

   Release of Security Interest    41
   

Section 8.03

   Termination Event Auction    41

ARTICLE IX

 

THE COLLATERAL AGENT

   41
   

Section 9.01

   Appointment and Powers of Collateral Agent    41
   

Section 9.02

   Successor Collateral Agent    43
   

Section 9.03

   Qualifications of Collateral Agent; Collateral Account    44
   

Section 9.04

   Instructions    45
   

Section 9.05

   Duties of Collateral Agent    45

ARTICLE X

 

AMENDMENTS, MODIFICATIONS, WAIVERS AND CONSENTS

   45
   

Section 10.01

   Execution of Amendments, etc    45

ARTICLE XI

 

MISCELLANEOUS

        45
   

Section 11.01

   Sale of Certain Collateral    45

 

-ii-



 
              Page

   

Section 11.02

   Further Assurances    46
   

Section 11.03

   No Waiver; Cumulative Remedies    46
   

Section 11.04

   Notices, etc    46
   

Section 11.05

   Fees, Costs and Expenses, etc    47
   

Section 11.06

   Collateral Agent Appointed Attorney-in-Fact    48
   

Section 11.07

   Termination    48
   

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