Titan Europe 2007-1 (NHP) Limited - Irish Stock Exchange

will have a greater effect on the principal payments on the Notes, and therefore on their yield, than would
principal payments on non-balloon mortgage loans.
Additionally, if the Advance Provider or the Backup Advance Provider, the Servicer or the Special Servicer
is reimbursed out of general collections on the Libra Loan for an Advance that it has determined is not
recoverable out of collections on the Libra Loan, then that drawing or advance (together with accrued interest
thereon) will be deemed, to the fullest extent possible, to be reimbursed first out of payments and other
collections of principal otherwise distributable on the Notes, prior to being deemed reimbursed out of payments
and other collections of interest otherwise distributable on the Notes.
The Libra Loan requires the payment of Prepayment Charges and/or Yield Maintenance Premia, which
could be a deterrent to prepayments. Although the payment of a Prepayment Charge would be required in
connection with a voluntary prepayment of the Libra Loan during certain periods of time, there can be no
assurance that the Borrower would refrain from prepaying the Libra Loan due to the existence of such
Prepayment Charges or that such Prepayment Charges would be held to be enforceable if challenged.
The timing of changes in the rate of prepayment on the Libra Loan may significantly affect the actual yield
to maturity experienced by an investor even if the average rate of principal payments experienced over time is
consistent with such investor’s expectation. In general, the earlier a prepayment of principal on the Libra Loan,
the greater the effect on such investor’s yield to maturity. As a result, the effect on such investor’s yield of
principal payments occurring at a rate higher (or lower) than the rate anticipated by the investor during the
period immediately following the issuance of the Notes would not be fully offset by a subsequent like reduction
(or increase) in the rate of principal payments.
The Libra Loan accrues interest at a floating rate.
The Issuer is not aware of any publicly available statistics that set forth principal prepayment experience or
prepayment forecasts of commercial mortgage loans over an extended period of time, either fixed-rate loans or
floating rate mortgage loans. The rate of principal prepayments with respect to floating rate mortgage loans has
fluctuated in recent years. As is the case with fixed-rate mortgage loans, floating rate mortgage loans may be
subject to a greater rate of principal prepayments in a declining interest rate environment. For example, if
prevailing interest rates fall significantly, floating rate mortgage loans could be subject to higher prepayment
rates than if prevailing interest rates remain constant because the availability of fixed-rate mortgage loans at
competitive interest rates may encourage mortgagors to re-finance their floating rate mortgage loans to “lock in”
lower fixed interest rate. No assurances can be given as to the rate of prepayments under the Libra Loan in
stable or changing interest rate environments.
The yield on any class of Notes could also be affected by trends in the level of LIBOR and the incurrence of
prepayments and defaults.
No representation is made as to the particular factors that will affect the rate of prepayment of the Libra
Loan, the relative importance of any such factors, the percentage of the principal balance of the Libra Loan that
will be paid as at any date or the overall rate of prepayments on the Libra Loan. An investor is urged to make an
investment decision with respect to any class of Notes based on the anticipated yield to maturity of such class of
Notes resulting from its purchase price and such investor’s own determination as to anticipated loan prepayment
rates under a variety of scenarios. The extent to which any class of Notes is purchased at a discount or a
premium and the degree to which the timing of payments on such class of Notes is sensitive to prepayments will
determine the extent to which the yield to maturity of such class of Notes may vary from the anticipated yield.
An investor should carefully consider the associated risks, including, in the case of any Notes purchased at a
discount, the risk that a slower than anticipated rate of principal payments on the Libra Loan could result in an
actual yield to such investor that is lower than the anticipated yield and, in the case of any Notes purchased at a
premium, the risk that a faster than anticipated rate of principal payments could result in an actual yield to such
investor that is lower than the anticipated yield.
An investor should consider the risk that rapid rates of prepayments on the Libra Loan, and therefore of
amounts distributable in reduction of the principal balance of Notes, may coincide with periods of low
prevailing interest rates. During such periods, the effective interest rates on securities in which an investor may
choose to reinvest such amounts distributed to it may be lower than the applicable pass-through rate.
Conversely, slower rates of prepayments on the Libra Loan, and therefore, of amounts distributable in reduction
of principal balance of the Notes entitled to distributions of principal, may coincide with periods of high
prevailing interest rates. During such periods, the amount of principal distributions resulting from prepayments
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