Financial Guaranty Insurance Company
125 Park Avenue
New York, New York 10017
(212) 312-3000 (800) 352-0001
SURETY BOND
Form 9140
Page 1 of 4
Issuer: Home Equity Loan Trust 2005-HS1
Policy Number:
05030097
Control Number:
0010001
Insured Obligations:
$550,000,000 in aggregate principal amount of Home Equity Loan-Backed Term
Notes, Series 2005-HS1, Class A-I-1, Class A-I-2, Class
A-I-3, Class A-I-4 and
Class A-I-5 (collectively,
the "Class I Notes")
Indenture Trustee: JPMorgan Chase Bank, N.A.
Financial Guaranty Insurance Company
("Financial
Guaranty"),
a New York stock
insurance company, in consideration of the right of Financial Guaranty to
receive monthly premiums as provided in the
Insurance Agreement (as defined
below) and subject to the terms of this
Surety Bond, hereby
unconditionally and
irrevocably agrees to pay each Group I Credit Enhancement Draw Amount (as
defined below) to the Indenture Trustee named above or its successor, as
indenture trustee for the Holders of the
Class I Notes, to the extent set forth
in the Indenture (as defined below). Capitalized terms used and not otherwise
defined herein shall have the meanings
assigned to such terms
in Appendix A to
the Indenture as in effect and executed on
the date hereof.
The following terms used herein shall have
the meanings assigned to them below:
"Final Maturity Date" shall mean for the Class
A-I-1 Notes and Class A-I-2
Notes, the payment date in July 2020,
for the Class A-I-3
Notes, the payment
date in February 2021, for the Class A-I-4 Notes and Class A-I-5 Notes, the
payment date in September 2035.
"Group I Credit Enhancement Draw Amount" shall
mean an amount, if any, equal to
on any Payment Date for the Class I Notes,
the sum of (a) the
amount by which
the Interest Distribution Amount for the Class I Notes on
such Payment
Date
exceeds the amount on deposit in the
Payment Account
available for interest
payments on the Class I Notes on such
Payment Date,
(b) any Liquidation Loss
Amount (other than any Excess Loss Amount)
with respect to the Group I Loans for
such Payment Date, to the extent not
distributed as part of the Liquidation Loss
Distribution Amount for the Class I Notes
or covered by a reduction of the Group
I Overcollateralization Amount on such Payment Date, (c)
any Excess Loss Amount
with respect to the Group I Loans on such
Payment Date, (d) the Guaranteed
Payment Amount, if applicable; and (e) any
Preference Amount (as defined in this
Surety Bond).
"Guaranteed Payment Amount" shall mean with respect to each class of Class
I
Notes, the aggregate outstanding Security
Balance of such Class of Class I Notes
on the related Final Maturity Date, after giving effect to all other
distributions of principal on such Class I
Notes on such Payment Date.
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"Deficiency Amount" shall mean for any Payment Date
the sum of the amounts set
forth in clauses (a), (b), (c) and (d) of the definition of "Group I Credit
Enhancement Draw Amount."
Financial Guaranty will pay a Deficiency Amount with respect to the Class I
Notes by 12:00 noon (New York City time) in
immediately available
funds to the
Indenture Trustee on the later of (i) the
second Business Day following the day
on which Financial Guaranty shall have Received
Notice that a Deficiency Amount
is due in respect of the Class I Notes and
(ii) the Payment
Date on which the
related Deficiency Amount is payable to the Holders of the Class I Notes
pursuant to the Indenture, for disbursement to the Holders of
the Class I Notes
in the same manner as other payments with respect to the Class I Notes are
required to be made.
Upon such payment, Financial Guaranty shall
be fully subrogated to the rights of
the Holders of the Class I Notes to
receive the amount so paid. Financial
Guaranty's obligations with respect to the
Class I Notes hereunder with respect
to each Payment Date shall be discharged
to the extent funds
consisting of the
related Deficiency Amount are received by
the Indenture Trustee on behalf of the
Holders of the Class I Notes for
payment to such
Holders, as provided in the
Indentur