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(k) Validity of Mortgage Documents. The mortgage note and themortgage and any other agreement executed and delivered by a borrower or guarantor, ifapplicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid andbinding obligation of the maker thereof enforceable in accordance with its terms. All partiesto the mortgage note, the mortgage and any other such related agreement had legalcapacity to enter into the Mortgage Loan and to execute and deliver the mortgage note, themortgage and any such agreement, and the mortgage note, the mortgage and any othersuch related agreement have been duly and properly executed by such related parties. Nofraud, error, omission, misrepresentation, negligence or similar occurrence with respect to aMortgage Loan has taken place on the part of any Person, including, without limitation, theborrower, any appraiser, any builder or developer, or any other party involved in theorigination of the Mortgage Loan. B/C has reviewed all of the documents constituting themortgage file and has made such inquiries as it deems necessary to make and confirm theaccuracy of the representations set forth herein. To the best of B/C’s knowledge, except asdisclosed to SWMC in writing, all tax identifications and property descriptions are legallysufficient; and tax segregation, where required, has been completed.(l) Full Disbursement of Proceeds. There is no further requirement forfuture advances under the Mortgage Loan, and any and all requirements as to completion ofany on-site or off-site improvement and as to disbursements of any escrow funds thereforehave been complied with. All costs, fees and expenses incurred in making or closing theMortgage Loan and the recording of the mortgage were paid, and the borrower is notentitled to any refund of any amounts paid or due under the mortgage note or mortgage.All broker fees have been properly assessed to the borrower and no claims will arise as tobroker fees that are double charged and for which the borrower would be entitled toreimbursement.(m) Ownership. B/C has full right to sell the Mortgage Loan to SWMC freeand clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim orsecurity interest, and has full right and authority subject to no interest or participation of, oragreement with, any other party, to sell each Mortgage Loan pursuant to this Agreementand following the sale of each Mortgage Loan, SWMC will own such Mortgage Loan free andclear of any encumbrance, equity, participation interest, lien, pledge, charge, claim orsecurity interest except any such security interest created pursuant to the terms of thisAgreement.(n) Doing Business. All parties which have had any interest in theMortgage Loan, whether as mortgagee, assignee, pledgee or otherwise, are (or, during theperiod in which they held and disposed of such interest, were) (i) in compliance with anyand all applicable licensing requirements of the laws of the state wherein the mortgagedproperty is located, and (ii) either (A) organized under the laws of such state, (B) qualifiedto do business in such state, (C) a federal savings and loan association, a savings bank or anational bank having a principal office in such state, or (D) not doing business in such state.(o) Title Insurance. The Mortgage Loan is covered by either (i) anattorney’s opinion of title and abstract of title, the form and substance of which is acceptableto prudent mortgage lending institutions making mortgage loans in the area wherein themortgaged property is located or (ii) an ALTA lender’s title insurance policy or othergenerally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Macand each such title insurance policy is issued by a title insurer acceptable to Fannie Mae orFreddie Mac and qualified to do business in the jurisdiction where the mortgaged property islocated, insuring B/C, its successors and assigns, as to the first priority lien of the Mortgage,as applicable, in the original principal amount of the Mortgage Loan, with respect to aMortgage Loan (or to the extent a mortgage note provides for negative amortization, themaximum amount of negative amortization in accordance with the mortgage), subject onlyInitials:________ BC App Ver. 7.7 10/06/2014 Page 24