ALBA 2007 – 1 plc - Irish Stock Exchange

(k)
(l)
(m)
(n)
the total balance of all Mortgage Loans in the Mortgage Pool which are (i) more than 90 days in
arrears and (ii) in repossession does not together exceed 20 per cent. of the total balance of the
Mortgage Loans in the Mortgage Pool as at the previous Calculation Date, provided that the
then current ratings of the Notes, would not be adversely affected by such change;
following the conversion of a Mortgage Loan, the weighted average LTV of the Mortgage
Loans in the Mortgage Pool would not exceed the weighted average LTV of the Mortgage
Loans in the Mortgage Pool on the immediately preceding Calculation Date by more than 1 per
cent;
if the conversion of a Mortgage Loan relates to a change of the payment terms from repayment
to interest only, the Borrower has not been in the 3 months prior to the conversion in arrears on
payments due under the existing Mortgage Loan; and
there is no debit balance on any Principal Deficiency Ledger.
Ported Mortgage Loans
The Seller may make advances to Borrowers in relation to the Ported Mortgage Loans (the "Ported
Mortgage Loan Advances") and the Issuer may fund the Ported Mortgage Loan Advances (thereby
acquiring the beneficial title of such Ported Mortgage Loans). Prior to the funding and purchase of
such Ported Mortgage Loans, the Special Servicer (on behalf of the Issuer), acting as a prudent
residential mortgage lender and in accordance with the Oakwood Lending Criteria, the relevant
Mortgage Conditions and the conditions set out below, may agree to any request by the Seller to the
making of a Ported Mortgage Loan to a Borrower. Further, it will waive or refund any Ported
Mortgage Early Repayment Charge incurred by a Borrower in connection with the making of such
Ported Mortgage Loan in accordance with the Mortgage Conditions.
If the Special Servicer agrees to the Issuer funding and acquiring a Ported Mortgage Loan, it shall
promptly notify the Issuer, the Cash Manager and the Master Servicer. The Cash Manager will then
credit any Principal Funds in respect of the initial Mortgage Loan to which a Ported Mortgage Loan
relates (as identified by the Special Servicer) to the Ported Mortgage Loan Ledger. In addition, any
Ported Mortgage Early Repayment Charges shall also be credited by the Cash Manager to the Ported
Mortgage Loan Ledger pending payment to the relevant Borrower.
The Special Servicer will provide certain details to the Cash Manager and the Master Servicer
including, the identity of the Mortgage Loan which will be redeemed, the redemption date thereof, the
amount of any Ported Mortgage Early Repayment Charge in connection therewith, whether the Ported
Mortgage Early Repayment Charge will be waived or refunded (and, if so, as to the relevant amount
and whether in whole or in part) and, if refunded, the date of such refund (as and when it is known),
any decision by the Special Servicer not to make a Ported Mortgage Loan and/or not to refund a Ported
Mortgage Early Repayment Charge, whether there are sufficient amounts standing to the credit of the
Ported Mortgage Loan Ledger to make such advance (and the amount of any shortfall).
Prior to the making of such Ported Mortgage Loan Advances, the Special Servicer (on behalf of the
Issuer) will apply the Oakwood Lending Criteria and ensure the satisfaction of, inter alia, the following
conditions:
(a)
immediately prior to the making of any Ported Mortgage Loan Advance, the relevant Borrower
is not in material breach of any of the conditions of the relevant Borrower's existing Mortgage
Loan;