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Bank of America Mort Sec Inc Mort Pass Thr Cert Ser 1999-2 · 8-K · For 3/25/99 · EX-4

Filed On 6/3/99   ·   SEC File 333-67267-01   ·   Accession Number 914121-99-544

  in   Show  and 
  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 6/03/99  Bank of America Mort Sec...1999-2 8-K{5,7}    3/25/99    2:274                                    Cadwalader Wickersh..LLP

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         5      9K 
 2: EX-4        Pooling and Servicing Agreement                      269± 1,101K 


EX-4   ·   Pooling and Servicing Agreement
Exhibit Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page
"Pooling and Servicing Agreement
2The Certificates
4Preliminary Statement
5Section 1.01 Defined Terms
"1933 Act
"Agreement
"Authenticating Agents
"Ba Servicer
"Class Certificate Balance
"Code
"Compensating Interest
"Component Interest Distribution Amount
"Component Rate
"Definitive Certificates
"Depositor
"Distribution Date
"Erisa
"Escrow Account
"Fractional Interest
"Interest Distribution Amount
"Lower-Tier Distribution Amount
"Lower-Tier Remic
"Mortgage Loans
"Nmc Servicer
"Non-PO Principal Amount
"Paying Agent
"Permitted Investments
"Plan
"Rating Agency
"Regular Certificates
"Remic
"Reo Disposition Period
"Restricted Classes
"Similar Law
"Substitution Adjustment Amount
"Tax Matters Person
"Trust Estate
"Trustee
"Upper-Tier Remic
"Section 2.01 Conveyance of Mortgage Loans
"Section 2.02 Acceptance by the Trustee of the Mortgage Loans
"Section 2.05 Representations and Warranties of the Depositor as to the Mortgage Loans
"Section 2.06 Designation of Interests in the REMICs
"Section 2.07 Designation of Start-up Day
"Section 2.08 REMIC Certificate Maturity Date
"Section 2.09 Execution and Delivery of Certificates
"Section 3.01 Servicers to Service Mortgage Loans
"Section 3.02 Subservicing; Enforcement of the Obligations of Servicers
"Section 3.03 Fidelity Bond; Errors and Omissions Insurance
"Section 3.04 Access to Certain Documentation
"Section 3.05 Maintenance of Primary Mortgage Insurance Policy; Claims
"Section 3.06 Rights of the Depositor and the Trustee in Respect of the Servicers
"Section 3.07 Trustee to Act as Servicer
"Section 3.08 Collection of Mortgage Loan Payments; Servicer Custodial Accounts; Certificate Account and Upper-Tier Certificate Account
"Section 3.09 Collection of Taxes, Assessments and Similar Items; Escrow Accounts
"Section 3.10 Access to Certain Documentation and Information Regarding the Mortgage Loans
"Section 3.11 Permitted Withdrawals from the Servicer Custodial Accounts, Certificate Account and Upper-Tier Certificate Account
"Section 3.12 Maintenance of Hazard Insurance
"Section 3.13 Enforcement of Due-On-Sale Clauses; Assumption Agreements
"Section 3.14 Realization Upon Defaulted Mortgage Loans; REO Property
"Section 3.15 Trustee to Cooperate; Release of Mortgage Files
"Section 3.16 Documents, Records and Funds in Possession of the Servicers to be Held for the Trustee
"Section 3.17 Servicing Compensation
"Section 3.18 Annual Statement as to Compliance
"Section 3.19 Annual Independent Public Accountants' Servicing Statement; Financial Statements
"Section 3.20 Advances
"Section 3.21 Modifications, Waivers, Amendments and Consents
"Section 3.22 Reports to the Securities and Exchange Commission
"Section 4.01 Servicer's Certificate
"Section 5.01 Distributions
"Section 5.02 Priorities of Distribution
"Section 5.03 Allocation of Losses
"Section 5.04 Statements to Certificateholders
"Section 5.05 Tax Returns and Reports to Certificateholders
"Section 5.06 Tax Matters Person
"Section 5.07 Rights of the Tax Matters Person in Respect of the Trustee
"Section 5.08 REMIC Related Covenants
"Section 6.01 The Certificates
"Section 6.02 Registration of Transfer and Exchange of Certificates
"Section 6.03 Mutilated, Destroyed, Lost or Stolen Certificates
"Section 6.04 Persons Deemed Owners
"Section 7.01 Respective Liabilities of the Depositor and the Servicers
"Section 7.02 Merger or Consolidation of the Depositor or a Servicer
"Section 7.03 Limitation on Liability of the Depositor, the Servicers and Others
"Section 7.04 Depositor and Servicers Not to Resign
"Section 8.01 Events of Default
"Section 8.02 Remedies of Trustee
"Section 8.03 Directions by Certificateholders and Duties of Trustee During Event of Default
"Section 8.04 Action upon Certain Failures of a Servicer and upon Event of Default
"Section 8.05 Trustee to Act; Appointment of Successor
"Section 8.06 Notification to Certificateholders
"Section 9.01 Duties of Trustee
"Section 9.02 Certain Matters Affecting the Trustee
"Section 9.03 Trustee Not Liable for Certificates or Mortgage Loans
"Section 9.04 Trustee May Own Certificates
"Section 9.05 Eligibility Requirements for Trustee
"Section 9.06 Resignation and Removal of Trustee
"Section 9.07 Successor Trustee
"Section 9.08 Merger or Consolidation of Trustee
"Section 9.09 Appointment of Co-Trustee or Separate Trustee
"Section 9.10 Authenticating Agents
"Section 9.11 Trustee's Fees and Expenses
"Section 9.12 [RESERVED]
"Section 9.13 Paying Agents
"Section 9.14 Limitation of Liability
"Section 9.17 Waiver of Bond Requirement
"Section 9.18 Waiver of Inventory, Accounting and Appraisal Requirement
"Section 9.19 Year 2000 Compliance
"Section 10.01 Termination upon Purchase by the Depositor or Liquidation of All Mortgage Loans
"Section 10.02 Additional Termination Requirements
"Section 11.01 Amendment
"Section 11.02 Recordation of Agreement
"Section 11.03 Limitation on Rights of Certificateholders
"Section 11.04 Governing Law
"Section 11.05 Notices
"Section 11.06 Severability of Provisions
"Section 11.07 Certificates Nonassessable and Fully Paid
"Section 11.08 Access to List of Certificateholders
"Section 11.09 Recharacterization
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================================================================================ BANK OF AMERICA MORTGAGE SECURITIES, INC., as Depositor, NATIONSBANC MORTGAGE CORPORATION, as Servicer, BANK OF AMERICA, FSB, as Servicer, and THE BANK OF NEW YORK, as Trustee POOLING AND SERVICING AGREEMENT Dated March 25, 1999 ----------------------- Mortgage Pass-Through Certificates Series 1999-2 ================================================================================
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TABLE OF CONTENTS PRELIMINARY STATEMENT....................................................... ARTICLE I DEFINITIONS Section 1.01 Defined Terms................................................. Section 1.03 Interest Calculations......................................... ARTICLE II CONVEYANCE OF MORTGAGE LOANS ORIGINAL ISSUANCE OF CERTIFICATES Section 2.01 Conveyance of Mortgage Loans.................................. Section 2.02 Acceptance by the Trustee of the Mortgage Loans............... Section 2.03 Representations, Warranties and Covenants of the NMC Servicer. Section 2.04 Representations, Warranties and Covenants of the BA Servicer.. Section 2.05 Representations and Warranties of the Depositor as to the Mortgage Loans.............................................. Section 2.06 Designation of Interests in the REMICs........................ Section 2.07 Designation of Start-up Day................................... Section 2.08 REMIC Certificate Maturity Date............................... Section 2.09 Execution and Delivery of Certificates........................ ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS Section 3.01 Servicers to Service Mortgage Loans........................... Section 3.02 Subservicing; Enforcement of the Obligations of Servicers..... Section 3.03 Fidelity Bond; Errors and Omissions Insurance................. Section 3.04 Access to Certain Documentation............................... Section 3.05 Maintenance of Primary Mortgage Insurance Policy; Claims...... Section 3.06 Rights of the Depositor and the Trustee in Respect of the Servicers................................................... Section 3.07 Trustee to Act as Servicer.................................... Section 3.08 Collection of Mortgage Loan Payments; Servicer Custodial Accounts; Certificate Account and Upper-Tier Certificate Account..................................................... Section 3.09 Collection of Taxes, Assessments and Similar Items; Escrow Accounts.................................................... Section 3.10 Access to Certain Documentation and Information Regarding the Mortgage Loans.............................................. Section 3.11 Permitted Withdrawals from the Servicer Custodial Accounts, Certificate Account and Upper-Tier Certificate Account...... Section 3.12 Maintenance of Hazard Insurance............................... Section 3.13 Enforcement of Due-On-Sale Clauses; Assumption Agreements..... Section 3.14 Realization Upon Defaulted Mortgage Loans; REO Property....... Section 3.15 Trustee to Cooperate; Release of Mortgage Files............... Section 3.16 Documents, Records and Funds in Possession of the Servicers to be Held for the Trustee..................................... Section 3.17 Servicing Compensation........................................ Section 3.18 Annual Statement as to Compliance............................. Section 3.19 Annual Independent Public Accountants' Servicing Statement; Financial Statements........................................ Section 3.20 Advances...................................................... Section 3.21 Modifications, Waivers, Amendments and Consents............... Section 3.22 Reports to the Securities and Exchange Commission............. ARTICLE IV SERVICER'S CERTIFICATE Section 4.01 Servicer's Certificate........................................ ARTICLE V PAYMENTS AND STATEMENTS TO CERTIFICATEHOLDERS; REMIC ADMINISTRATION Section 5.01 Distributions................................................. Section 5.02 Priorities of Distribution.................................... Section 5.03 Allocation of Losses.......................................... Section 5.04 Statements to Certificateholders.............................. Section 5.05 Tax Returns and Reports to Certificateholders................. Section 5.06 Tax Matters Person............................................ Section 5.07 Rights of the Tax Matters Person in Respect of the Trustee.... Section 5.08 REMIC Related Covenants....................................... ARTICLE VI THE CERTIFICATES Section 6.01 The Certificates.............................................. Section 6.02 Registration of Transfer and Exchange of Certificates......... Section 6.03 Mutilated, Destroyed, Lost or Stolen Certificates............. Section 6.04 Persons Deemed Owners......................................... ARTICLE VII THE DEPOSITOR AND THE SERVICERS Section 7.01 Respective Liabilities of the Depositor and the Servicers..... Section 7.02 Merger or Consolidation of the Depositor or a Servicer........ Section 7.03 Limitation on Liability of the Depositor, the Servicers and Others...................................................... Section 7.04 Depositor and Servicers Not to Resign......................... ARTICLE VIII DEFAULT Section 8.01 Events of Default............................................. Section 8.02 Remedies of Trustee........................................... Section 8.03 Directions by Certificateholders and Duties of Trustee During Event of Default............................................ Section 8.04 Action upon Certain Failures of a Servicer and upon Event of Default..................................................... Section 8.05 Trustee to Act; Appointment of Successor...................... Section 8.06 Notification to Certificateholders............................ ARTICLE IX THE TRUSTEE Section 9.01 Duties of Trustee............................................. Section 9.02 Certain Matters Affecting the Trustee......................... Section 9.03 Trustee Not Liable for Certificates or Mortgage Loans......... Section 9.04 Trustee May Own Certificates.................................. Section 9.05 Eligibility Requirements for Trustee.......................... Section 9.06 Resignation and Removal of Trustee............................ Section 9.07 Successor Trustee............................................. Section 9.08 Merger or Consolidation of Trustee............................ Section 9.09 Appointment of Co-Trustee or Separate Trustee................. Section 9.10 Authenticating Agents......................................... Section 9.11 Trustee's Fees and Expenses................................... Section 9.12 [RESERVED].................................................... Section 9.13 Paying Agents................................................. Section 9.14 Limitation of Liability....................................... Section 9.15 Trustee May Enforce Claims Without Possession of Certificates. Section 9.16 Suits for Enforcement......................................... Section 9.17 Waiver of Bond Requirement.................................... Section 9.18 Waiver of Inventory, Accounting and Appraisal Requirement..... Section 9.19 Year 2000 Compliance.......................................... ARTICLE X TERMINATION Section 10.01 Termination upon Purchase by the Depositor or Liquidation of All Mortgage Loans......................................... Section 10.02 Additional Termination Requirements.......................... ARTICLE XI MISCELLANEOUS PROVISIONS Section 11.01 Amendment.................................................... Section 11.02 Recordation of Agreement..................................... Section 11.03 Limitation on Rights of Certificateholders................... Section 11.04 Governing Law................................................ Section 11.05 Notices...................................................... Section 11.06 Severability of Provisions................................... Section 11.07 Certificates Nonassessable and Fully Paid.................... Section 11.08 Access to List of Certificateholders......................... Section 11.09 Recharacterization...........................................
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EXHIBITS Exhibit A-1 - Form of Face of Class A-1 Certificate Exhibit A-2 - Form of Face of Class A-2 Certificate Exhibit A-3 - Form of Face of Class A-3 Certificate Exhibit A-4 - Form of Face of Class A-4 Certificate Exhibit A-5 - Form of Face of Class A-5 Certificate Exhibit A-6 - Form of Face of Class A-6 Certificate Exhibit A-7 - Form of Face of Class A-7 Certificate Exhibit A-8 - Form of Face of Class A-8 Certificate Exhibit A-9 - Form of Face of Class A-9 Certificate Exhibit A-10 - Form of Face of Class A-10 Certificate Exhibit A-11 - Form of Face of Class A-11 Certificate Exhibit A-12 - Form of Face of Class A-12 Certificate Exhibit A-13 - Form of Face of Class A-13 Certificate Exhibit A-14 - Form of Face of Class A-14 Certificate Exhibit A-PO - Form of Face of Class A-PO Certificate Exhibit A-R - Form of Face of Class A-R Certificate Exhibit A-LR - Form of Face of Class A-LR Certificate Exhibit B-1 - Form of Face of Class B-1 Certificate Exhibit B-2 - Form of Face of Class B-2 Certificate Exhibit B-3 - Form of Face of Class B-3 Certificate Exhibit B-4 - Form of Face of Class B-4 Certificate Exhibit B-5 - Form of Face of Class B-5 Certificate Exhibit B-6 - Form of Face of Class B-6 Certificate Exhibit C - Form of Reverse of all Certificates Exhibit D-1 - BA Mortgage Loan Schedule Exhibit D-2 - NMC Mortgage Loan Schedule Exhibit E - Request for Release of Documents Exhibit F - Form of Certification of Establishment of Account Exhibit G-1 - Form of Transferor's Certificate Exhibit G-2A - Form 1 of Transferee's Certificate Exhibit G-2B - Form 2 of Transferee's Certificate Exhibit H - Form of Transferee Representation Letter - for ERISA Restricted Certificates Exhibit I - Form of Affidavit Regarding Transfer of - Residual Certificates Exhibit J - Contents of Servicing File Exhibit K - PAC and TAC Tables
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POOLING AND SERVICING AGREEMENT THIS POOLING AND SERVICING AGREEMENT, dated March 25, 1999, is hereby executed by and among BANK OF AMERICA MORTGAGE SECURITIES, INC., as depositor (together with its permitted successors and assigns, the "DEPOSITOR"), NATIONSBANC MORTGAGE CORPORATION, as servicer (together with its permitted successors and assigns, the "NMC SERVICER"), BANK OF AMERICA, FSB, as servicer (together with its permitted successors and assigns, the "BA SERVICER" and, together with the NMC Servicer, the "SERVICERS"), and THE BANK OF NEW YORK, as trustee (together with its permitted successors and assigns, the "TRUSTEE"). W I T N E S S E T H T H A T: In consideration of the mutual agreements herein contained, the Depositor, the NMC Servicer, the BA Servicer and the Trustee agree as follows: PRELIMINARY STATEMENT In exchange for the Certificates, the Depositor hereby conveys the Trust Estate to the Trustee to create the Trust. The Trust Estate for federal income tax purposes will be treated as two separate real estate mortgage investment conduits (the "UPPER-TIER REMIC" and the "LOWER-TIER REMIC," respectively, and each, a "REMIC"). The Class A Certificates (other than the Class A-14, Class A-R and Class A-LR Certificates) and the Class B Certificates are referred to collectively as the "REGULAR CERTIFICATES" and shall constitute "regular interests" in the Upper-Tier REMIC. The Class A-14 PAC IO A Component, the Class A-14 PAC IO B Component, the Class A-14 PAC Component, the Class A-14 TAC IO Component and the Class A-14 TAC Component (collectively, the "Components") shall also constitute "regular interests" in the Upper-Tier REMIC. The Uncertificated Lower-Tier Interests shall constitute the "regular interests" in the Lower-Tier REMIC. The Class A-R Certificate shall be the "residual interest" in the Upper-Tier REMIC and the Class A-LR Certificate shall be the "residual interest" in the Lower-Tier REMIC. The Certificates will represent the entire beneficial ownership interest in the Trust. The "latest possible maturity date" for federal income tax purposes of all interests created hereby will be the REMIC Certificate Maturity Date. The following table sets forth characteristics of the Certificates and the Components, together with the minimum denominations and integral multiples in excess thereof in which the Classes of Certificates shall be issuable (except that one Certificate of each Class of Certificates may be issued in any amount in excess of the minimum denomination):
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============== =============== ============= ============== =============== Integral Initial Class Multiples Certificate Pass-Through Minimum in Excess Classes Balance Rate Denomination of Minimum -------------- --------------- ------------- -------------- --------------- Class A-1 $100,000,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-2 $100,000,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-3 $26,800,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-4 $4,826,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-5 $7,621,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-6 $6,009,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-7 $8,456,429.00 6.90% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-8 $3,382,571.00 5.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-9 $325,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-10 $11,199,000.00 6.50% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-11 $50,559,000.00 5.75% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-12 $48,883,000.00 5.90% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-13 $76,367,000.00 6.35% $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-14 $35,184,000.00 (1) $1,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-PO $748.966.00 (2) $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class A-R $100.00 6.50% $100 N/A -------------- --------------- ------------- -------------- --------------- Class A-LR $100.00 6.50% $100 N/A -------------- --------------- ------------- -------------- --------------- Class B-1 $10,758,098.00 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class B-2 $3,752,825.00 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class B-3 $1,751,319.00 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class B-4 $1,751,319.00 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class B-5 $1,000,754.00 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Class B-6 $1,001,140.77 6.50% $25,000 $1 -------------- --------------- ------------- -------------- --------------- Components Initial Component Component Rate Balance or Notional Amount -------------- --------------- ------------- -------------- --------------- Class A-14 $5,833,731.00 6.50% N/A N/A PAC IO A -------------- --------------- ------------- -------------- --------------- Class A-14 $4,512,277.00 6.50% N/A N/A PAC IO B -------------- --------------- ------------- -------------- --------------- Class A-14 $4,948,000.00 6.50% N/A N/A PAC -------------- --------------- ------------- -------------- --------------- Class A-14 $1,762,315.00 6.50% N/A N/A TAC IO -------------- --------------- ------------- -------------- --------------- Class A-14 $30,236,000.00 6.50% N/A N/A TAC ============== =============== ============= ============== =============== --------------- (1) The Class A-14 Certificates will be deemed for purposes of the distribution of interest and principal to consist of five Components as described in the table. The Components are not severable. (2) The Class A-PO Certificates will be Principal-Only Certificates and will not bear interest. ARTICLE I DEFINITIONS Section 1.01 DEFINED TERMS. Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the meanings specified in this Article: 1933 ACT: The Securities Act of 1933, as amended. ACCRETION TERMINATION DATE: For (a) the Class A-10 Certificates will be the earlier to occur of (i) the Distribution Date following the Distribution Date on which the Class Certificate Balance of the Class A-13 Certificates and the Component Balance of the Class A-14 TAC Component have been reduced to zero or (ii) the Senior Credit Support Depletion Date and (b) the Class A-14 TAC Component will be the earlier to occur of (i) the Distribution Date following the Distribution Date on which the Class Certificate Balance of the Class A-13 Certificates has been reduced to zero or (ii) the Senior Credit Support Depletion Date. ACCRUAL COMPONENT: The Class A-14 TAC Component. ACCRUAL DISTRIBUTION AMOUNT: For any Distribution Date and the Class A-10 Certificates and the Accrual Component prior to the applicable Accretion Termination Date, an amount with respect to such Class or Component equal to the sum of (i) the amount allocated but not currently distributable as interest to such Class or Component pursuant to Section 5.02(a)(i) that is attributable to clause (i) of the definition of "Interest Distribution Amount" or "Component Interest Distribution Amount," as applicable, and (ii) the amount allocated but not currently distributable as interest to such Class or Component pursuant to Section 5.02(a)(i) that is attributable to clause (ii) of the definition of "Interest Distribution Amount" or "Component Interest Distribution Amount," as applicable. ACCRUED CERTIFICATE INTEREST: For any Distribution Date and each interest-bearing Class (other than the Class A-14 Certificates), one month's interest accrued during the related Interest Accrual Period at the applicable Pass-Through Rate on the applicable Class Certificate Balance. For any Distribution Date and the Class A-14 Certificates, the sum of Accrued Component Interest for each Component. ACCRUED COMPONENT INTEREST: For any Distribution Date and each Component, one month's interest accrued during the related Interest Accrual Period at the applicable Component Rate on the applicable Component Balance or Notional Amount. ADJUSTED POOL AMOUNT: With respect to any Distribution Date, the Cut-Off Date Pool Principal Balance of the Mortgage Loans minus the sum of (i) all amounts in respect of principal received in respect of the Mortgage Loans (including, without limitation, amounts received as Monthly Payments, Periodic Advances, Principal Prepayments, Liquidation Proceeds and Substitution Adjustment Amounts) and distributed to Holders of Certificates on such Distribution Date and all prior Distribution Dates and (ii) the principal portion of all Realized Losses (other than Debt Service Reductions) incurred on the Mortgage Loans from the Cut-Off Date through the end of the month preceding such Distribution Date. ADJUSTED POOL AMOUNT (PO PORTION): With respect to any Distribution Date, the sum of the amounts, calculated as follows, with respect to all Outstanding Mortgage Loans: the product of (i) the PO Percentage for each such Mortgage Loan and (ii) the remainder of (A) the Cut-Off Date Principal Balance of such Mortgage Loan minus (B) the sum of (x) all amounts in respect of principal received in respect of such Mortgage Loan (including, without limitation, amounts received as Monthly Payments, Periodic Advances, Principal Prepayments, Liquidation Proceeds and Substitution Adjustment Amounts) and distributed to Holders of the Certificates on such Distribution Date and all prior Distribution Dates and (y) the principal portion of any Realized Loss (other than a Debt Service Reduction) incurred on such Mortgage Loan from the Cut-Off Date through the end of the month preceding such Distribution Date. ADVANCE: A Periodic Advance or a Servicing Advance. AGREEMENT: This Pooling and Servicing Agreement together with all amendments hereof and supplements hereto. AMOUNT HELD FOR FUTURE DISTRIBUTION: As to any Distribution Date, the total of the amounts held in the Servicer Custodial Accounts at the close of business on the preceding Determination Date on account of (i) Principal Prepayments and Liquidation Proceeds received or made in the month of such Distribution Date and (ii) payments which represent receipt of Monthly Payments in respect of a Due Date or Due Dates subsequent to the related Due Date. APPRAISED VALUE: With respect to any Mortgaged Property, either (i) the lesser of (a) the appraised value determined in an appraisal obtained by the originator at origination of such Mortgage Loan and (b) the sales price for such property, except that, in the case of Mortgage Loans the proceeds of which were used to refinance an existing mortgage loan, the Appraised Value of the related Mortgaged Property is the appraised value thereof determined in an appraisal obtained at the time of refinancing, or (ii) the appraised value determined in an appraisal made at the request of a Mortgagor subsequent to origination in order to eliminate the Mortgagor's obligation to keep a Primary Insurance Policy in force. ASSIGNMENT OF MORTGAGE: An individual assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to give record notice of the sale of the Mortgage. AUTHENTICATING AGENTS: As defined in Section 9.10. BA MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement, dated March 25, 1999, between the BA Seller, as seller, and the Depositor, as purchaser. BA MORTGAGE LOANS: The Mortgage Loans serviced by the BA Servicer and identified on EXHIBIT D-1 as such Exhibit is amended from time to time to reflect the addition of Substitute Mortgage Loans and the deletion of Defective Mortgage Loans pursuant to the provisions of this Agreement. BA SELLER: Bank of America, FSB, a federal savings bank, or its successor in interest, as seller of the BA Mortgage Loans under the BA Mortgage Loan Purchase Agreement. BA SERVICER: Bank of America, FSB, a federal savings bank, or its successor in interest, in its capacity as servicer of the BA Mortgage Loans, or any successor servicer appointed as herein provided. BA SERVICER CUSTODIAL ACCOUNT: The separate Eligible Account or Accounts created and maintained by the BA Servicer pursuant to Section 3.08(b). BANKRUPTCY LOSS: Any Deficient Valuation or Debt Service Reduction. BANKRUPTCY LOSS AMOUNT: As of any Distribution Date, the Initial Bankruptcy Loss Amount less the aggregate amount of Bankruptcy Losses previously incurred during the period from the Cut-Off Date through the last day of the month preceding the month of such Distribution Date; provided, however, that such amount may be reduced from time to time with the written consent of the Rating Agencies provided that such reduction does not result in a downgrading to the current rating of the Certificates. BOOK-ENTRY CERTIFICATE: All Classes of Certificates other than the Physical Certificates. BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the State of North Carolina, the State of New York, the State of California, the State of Virginia, the state in which the servicing offices of either Servicer are located or the state in which the Corporate Trust Office is located are required or authorized by law or executive order to be closed. BUYDOWN AGREEMENT: An agreement governing the application of Buydown Funds with respect to a Mortgage Loan. BUYDOWN FUNDS: Money advanced by a builder, seller or other interested party to reduce a Mortgagor's Monthly Payment during the initial years of a Mortgage Loan. CERTIFICATE: Any of the Bank of America Mortgage Securities, Inc. Mortgage Pass-Through Certificates, Series 1999-2 that are issued pursuant to this Agreement. CERTIFICATE ACCOUNT: The separate Eligible Account created and maintained by the Trustee pursuant to Section 3.08(c) in the name of the Trustee for the benefit of the Certificateholders and designated "The Bank of New York, in trust for registered holders of Bank of America Mortgage Securities, Inc. Mortgage Pass-Through Certificates, Series 1999-2." Funds in the Certificate Account shall be held in trust for the Certificateholders for the uses and purposes set forth in this Agreement. CERTIFICATE BALANCE: With respect to any Certificate at any date, the maximum dollar amount of principal to which the Holder thereof is then entitled hereunder, such amount being equal to the product of the Percentage Interest of such Certificate and the Class Certificate Balance of the Class of Certificates of which such Certificate is a part. CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person who is the beneficial owner of a Book-Entry Certificate. With respect to any Definitive Certificate, the Certificateholder of such Certificate. CERTIFICATE REGISTER: The register maintained pursuant to Section 6.02. CERTIFICATE REGISTRAR: The registrar appointed pursuant to Section 6.02. CERTIFICATEHOLDER: The Person in whose name a Certificate is registered in the Certificate Register, except that, solely for the purpose of giving any consent pursuant to this Agreement, any Certificate registered in the name of the Depositor, either Servicer or any affiliate thereof shall be deemed not to be outstanding and the Percentage Interest and Voting Rights evidenced thereby shall not be taken into account in determining whether the requisite amount of Percentage Interests or Voting Rights, as the case may be, necessary to effect any such consent has been obtained, unless such entity is the registered owner of the entire Class of Certificates, provided that the Trustee shall not be responsible for knowing that any Certificate is registered in the name of such an affiliate unless one of its Responsible Officers has actual knowledge. CLASS: As to the Certificates, the Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-PO, Class A-R, Class A-LR, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates, as the case may be. CLASS A CERTIFICATES: The Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class A-8, Class A-9, Class A-10, Class A-11, Class A-12, Class A-13, Class A-14, Class A-PO, Class A-R and Class A-LR Certificates. CLASS A-3 PERCENTAGE: As to any Distribution Date, the percentage equivalent (carried to six places rounded up) of a fraction the numerator of which is the Class Certificate Balance of the Class A-3 Certificates immediately prior to such date and the denominator of which is the aggregate of the Class Certificate Balances of all Classes of Senior Certificates (other than the Class A-PO Certificates) immediately prior to such date. CLASS A-3 PRINCIPAL DISTRIBUTION AMOUNT: As to any Distribution Date, the lesser of (i) the Class Certificate Balance of the Class A-3 Certificates and (ii) the product of (a) the Class A-3 Shift Percentage, (b) the Class A-3 Percentage and (c) the Senior Principal Distribution Amount. CLASS A-3 SHIFT PERCENTAGE: As to any Distribution Date, the percentage indicated below: DISTRIBUTION DATE OCCURRING IN CLASS A-3 SHIFT PERCENTAGE ------------------------------ -------------------------- April 1999 through March 2004.................. 0% April 2004 through March 2005.................. 30% April 2005 through March 2006.................. 40% April 2006 through March 2007.................. 60% April 2007 through March 2008.................. 80% April 2008 and thereafter...................... 100% CLASS A-9 LOSS ALLOCATION AMOUNT: With respect to any Distribution Date after the Senior Credit Support Depletion Date, the lesser of (a) the Class Certificate Balance of the Class A-9 Certificates with respect to such Distribution Date prior to any reduction for the Class A-9 Loss Allocation Amount and (b) the sum of the Class A-14 PAC Component Loss Amount and the Class A-14 TAC Component Loss Amount with respect to such Distribution Date. CLASS A-14 PAC COMPONENT LOSS AMOUNT: With respect to any Distribution Date after the Senior Credit Support Depletion Date, the amount, if any, by which the Component Balance of the Class A-14 PAC Component would be reduced as a result of the allocation of any Realized Loss (other than an Excess Loss) to such Component pursuant to Section 5.03(a)(ii)(1) or the allocation of any reduction pursuant to Section 5.03(b) to such Component, in each case without regard to the operation of Section 5.03(f). CLASS A-14 PAC IO A NOTIONAL AMOUNT: As to any Distribution Date and the Class A-14 PAC IO A Component, 11.53846154% of the Class Certificate Balance of the Class A-11 Certificates immediately prior to such date. CLASS A-14 PAC IO B NOTIONAL AMOUNT: As to any Distribution Date and the Class A-14 PAC IO B Component, 9.23076923% of the Class Certificate Balance of the Class A-12 Certificates immediately prior to such date. CLASS A-14 TAC COMPONENT LOSS AMOUNT: With respect to any Distribution Date after the Senior Credit Support Depletion Date, the amount, if any, by which the Component Balance of the Class A-14 TAC Component would be reduced as a result of the allocation of any Realized Loss (other than an Excess Loss) to such Component pursuant to Section 5.03(a)(ii)(1) or the allocation of any reduction pursuant to Section 5.03(b) to such Component, in each case without regard to the operation of Section 5.03(f). CLASS A-14 TAC IO NOTIONAL AMOUNT: As to any Distribution Date and the Class A-14 TAC IO Component, 2.30769231% of the Class Certificate Balance of the Class A-13 Certificates immediately prior to such date. CLASS A-PO DEFERRED AMOUNT: As to any Distribution Date prior to the Senior Credit Support Depletion Date, the aggregate of the applicable PO Percentage of each Realized Loss, other than an Excess Loss, to be allocated to the Class A-PO Certificates on such Distribution Date or previously allocated to the Class A-PO Certificates and not yet paid to the Holders of the Class A-PO Certificates pursuant to Section 5.02(a)(iii). CLASS B CERTIFICATES: The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and Class B-6 Certificates. CLASS CERTIFICATE BALANCE: With respect to any Class (other than the Class A-14 Certificates) and any date of determination, the Initial Class Certificate Balance of such Class (plus, in the case of the Class A-10 Certificates, any Accrual Distribution Amounts previously allocated thereto) minus the sum of (i) all distributions of principal made with respect thereto, (ii) all Realized Losses allocated thereto pursuant to Section 5.03(a), (iii) all other reductions in Class Certificate Balance previously allocated thereto pursuant to Section 5.03(b) and (iv) in the case of the Class A-9 Certificates, any reduction allocated thereto pursuant to Section 5.03(f). The Class Certificate Balance of the Class A-14 Certificates will equal the sum of the Component Balances of the Class A-14 PAC Component and the Class A-14 TAC Component. CLASS INTEREST SHORTFALL: For any Distribution Date and each interest-bearing Class (other than the Class A-14 Certificates), the amount by which Accrued Certificate Interest for such Class (as reduced pursuant to Section 5.02(c)) exceeds the amount of interest actually distributed on such Class (or, in the case of the Class A-10 Certificates prior to the applicable Accretion Termination Date, the amount included in the Accrual Distribution Amount pursuant to clause (i) of the definition thereof, but not distributed as interest on the Class A-10 Certificates) on such Distribution Date pursuant to clause (i) of the definition of "Interest Distribution Amount". CLASS UNPAID INTEREST SHORTFALL: As to any Distribution Date and each interest-bearing Class (other than the Class A-14 Certificates), the amount by which the aggregate Class Interest Shortfalls for such Class on prior Distribution Dates exceeds the amount of interest actually distributed on such Class (or, in the case of the Class A-10 Certificates prior to the applicable Accretion Termination Date, the amount included in the Accrual Distribution Amount pursuant to clause (ii) of the definition thereof, but not distributed as interest on the Class A-10 Certificates) on such prior Distribution Dates pursuant to clause (ii) of the definition of "Interest Distribution Amount". CLOSING DATE: March 25, 1999. CODE: The Internal Revenue Code of 1986, as amended. COMPENSATING INTEREST: As defined in Section 3.17. COMPONENT BALANCE: With respect to the Class A-14 PAC Component and Class A-14 TAC Component, and any date of determination, the Initial Component Balance of such Component (plus, in the case of the Class A-14 TAC Component, any Accrual Distribution Amounts previously allocated thereto) minus the sum of (i) all distributions of principal made with respect thereto, (ii) all Realized Losses allocated thereto pursuant to Section 5.03(a) and (iii) all other reductions in Component Balance previously allocated thereto pursuant to Section 5.03(b); provided, however, that the Component Balance of such Component will not be reduced pursuant to clauses (ii) and (iii) in accordance with the provisions of Section 5.03(f). The Class A-14 PAC IO A Component, the Class A-14 PAC IO B Component and the Class A-14 TAC IO Component are interest-only Components and have no Component Balance. COMPONENT INTEREST DISTRIBUTION AMOUNT: For any Distribution Date and each Component, the sum of (i) the Accrued Component Interest, subject to reduction pursuant to Section 5.02(c), and (ii) any Component Unpaid Interest Shortfall for such Component. COMPONENT INTEREST SHORTFALL: For any Distribution Date and each Component, the amount by which Accrued Component Interest for such Component (as reduced pursuant to Section 5.02(c)) exceeds the amount of interest actually distributed on such Component (or, in the case of the Class A-14 TAC Component prior to the applicable Accretion Termination Date, the amount included in the Accrual Distribution Amount pursuant to clause (i) of the definition thereof, but not distributed as interest on the Class A-14 TAC Component) on such Distribution Date pursuant to clause (i) of the definition of "Component Interest Distribution Amount." COMPONENT RATE: As to each Component, the per annum rate set forth in the Preliminary Statement. COMPONENT UNPAID INTEREST SHORTFALL: As to any Distribution Date and Component, the amount by which the aggregate Component Interest Shortfalls for such Component on prior Distribution Dates exceeds the amount of interest actually distributed on such Component (including, in the case of the Class A-14 TAC Component prior to the applicable Accretion Termination Date, the amount included in the Accrual Distribution Amount pursuant to clause (ii) of the definition thereof, but not distributed as interest on the Class A-14 TAC Component) on such prior Distribution Dates pursuant to clause (ii) of the definition of "Component Interest Distribution Amount." CORPORATE TRUST OFFICE: The principal office of the Trustee at which at any particular time its certificate transfer services are conducted, which office at the date of the execution of this instrument is located at 101 Barclay Street - 12E, New York, New York 10286, Attention: Corporate Trust - MBS (Fax: (212) 815-5309). CORRESPONDING UPPER-TIER CLASS, CLASSES, COMPONENT OR COMPONENTS: As to the following Uncertificated Lower-Tier Interests, the Corresponding Upper-Tier Class, Classes, Component or Components, as follows: UNCERTIFICATED LOWER-TIER Corresponding Upper-Tier Class, INTEREST Classes, Component or Components Class A-L1 Interest Class A-1 Certificates, Class A-2 Certificates, Class A-3 Certificates, Class A-4 Certificates, Class A-5 Certificates, Class A-6 Certificates, Class A-9 Certificates, Class A-10 Certificates, Class A14 PAC Component and Class A-14 TAC Component Class A-L7 Interest Class A-7 Certificates Class A-L8 Interest Class A-8 Certificates Class A-L11 Interest Class A-11 Certificates and Class A-14 PAC IO A Component Class A-L12 Interest Class A-12 Certificates and Class A-14 PAC IO B Component Class A-L13 Interest Class A-13 Certificates and Class A-14 TAC IO Component Class A-LPO Interest Class A-PO Certificates Class A-LUR Interest Class A-R Certificate Class B-L1 Interest Class B-1 Certificates Class B-L2 Interest Class B-2 Certificates Class B-L3 Interest Class B-3 Certificates Class B-L4 Interest Class B-4 Certificates Class B-L5 Interest Class B-5 Certificates Class B-L6 Interest Class B-6 Certificates CUSTODIAN: Any Custodian appointed by the Trustee in accordance with the terms of this Agreement. CUSTOMARY SERVICING PROCEDURES: With respect to each Servicer, procedures (including collection procedures) that such Servicer customarily employs and exercises in servicing and administering mortgage loans for its own account and which are in accordance with accepted mortgage servicing practices of prudent lending institutions servicing mortgage loans of the same type as the Mortgage Loans in the jurisdictions in which the related Mortgaged Properties are located. CUT-OFF DATE: March 1, 1999. CUT-OFF DATE POOL PRINCIPAL BALANCE: The aggregate of the Cut-Off Date Principal Balances of the Mortgage Loans which is $500,376,622.26. CUT-OFF DATE PRINCIPAL BALANCE: As to any Mortgage Loan, the unpaid principal balance thereof as of the close of business on the Cut-Off Date, reduced by all installments of principal due on or prior thereto whether or not paid. DEBT SERVICE REDUCTION: As to any Mortgage Loan and any Determination Date, the excess of (i) the Monthly Payment due on the related Due Date under the terms of such Mortgage Loan over (ii) the amount of the monthly payment of principal and/or interest required to be paid with respect to such Due Date by the Mortgagor as established by a court of competent jurisdiction (pursuant to an order which has become final and nonappealable) as a result of a proceeding initiated by or against the related Mortgagor under the Bankruptcy Code, as amended from time to time (11 U.S.C.); provided that no such excess shall be considered a Debt Service Reduction so long as (a) the related Servicer is pursuing an appeal of the court order giving rise to any such modification and (b)(1) such Mortgage Loan is not in default with respect to payment due thereunder in accordance with the terms of such Mortgage Loan as in effect on the Cut-Off Date or (2) Monthly Payments are being advanced by the related Servicer in accordance with the terms of such Mortgage Loan as in effect on the Cut-Off Date. DEBT SERVICE REDUCTION MORTGAGE LOAN: Any Mortgage Loan that became the subject of a Debt Service Reduction. DEFECTIVE MORTGAGE LOAN: Any Mortgage Loan which is required to be cured, repurchased or substituted for pursuant to Sections 2.02 or 2.05. DEFICIENT VALUATION: As to any Mortgage Loan and any Determination Date, the excess of (i) the then outstanding indebtedness under such Mortgage Loan over (ii) the secured valuation thereof established by a court of competent jurisdiction (pursuant to an order which has become final and nonappealable) as a result of a proceeding initiated by or against the related Mortgagor under the Bankruptcy Code, as amended from time to time (11 U.S.C.), pursuant to which such Mortgagor retained such Mortgaged Property; provided that no such excess shall be considered a Deficient Valuation so long as (a) the related Servicer is pursuing an appeal of the court order giving rise to any such modification and (b)(1) such Mortgage Loan is not in default with respect to payments due thereunder in accordance with the terms of such Mortgage Loan as in effect on the Cut-Off Date or (2) Monthly Payments are being advanced by the related Servicer in accordance with the terms of such Mortgage Loan as in effect on the Cut-Off Date. DEFICIENT VALUATION MORTGAGE LOAN: Any Mortgage Loan that became the subject of a Deficient Valuation. DEFINITIVE CERTIFICATES: As defined in Section 6.02(c)(iii). DEPOSITOR: Bank of America Mortgage Securities, Inc., a Delaware corporation, or its successor in interest, as depositor of the Trust Estate. DEPOSITORY: The Depository Trust Company, the nominee of which is Cede & Co., as the registered Holder of the Book-Entry Certificates or any successor thereto appointed in accordance with this Agreement. The Depository shall at all times be a "clearing corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of the State of New York. DEPOSITORY PARTICIPANT: A broker, dealer, bank or other financial institution or other Person for whom from time to time a Depository effects book-entry transfers and pledges of securities deposited with the Depository. DETERMINATION DATE: As to any Distribution Date, the 16th day of the month of the related Distribution Date or, if such 16th day is not a Business Day, the Business Day immediately preceding such 16th day. DISCOUNT MORTGAGE LOAN: Any Mortgage Loan with a Net Mortgage Interest Rate that is less than 6.50% per annum. DISTRIBUTION DATE: The 25th day of each month beginning in April 1999 (or, if such day is not a Business Day, the next Business Day). DUE DATE: As to any Distribution Date and each Mortgage Loan, the first day in the calendar month of such Distribution Date. ELIGIBLE ACCOUNT: Any of (i) an account or accounts maintained with (a) NationsBank, N.A. or any successor thereto, (b) Bank of America, FSB, or (c) a federal or state chartered depository institution or trust company the short-term unsecured debt obligations of which (or, in the case of a depository institution or trust company that is the principal subsidiary of a holding company, the debt obligations of such holding company) have the highest short-term ratings of each Rating Agency at the time any amounts are held on deposit therein, or (ii) an account or accounts in a depository institution or trust company in which such accounts are insured by the FDIC (to the limits established by the FDIC) and the uninsured deposits in which accounts are otherwise secured such that, as evidenced by an Opinion of Counsel delivered to the Trustee and to each Rating Agency, the Certificateholders have a claim with respect to the funds in such account or a perfected first priority security interest against any collateral (which shall be limited to Permitted Investments) securing such funds that is superior to claims of any other depositors or creditors of the depository institution or trust company in which such account is maintained, or (iii) a trust account or accounts maintained with the trust department of a federal or state chartered depository institution or trust company, acting in its fiduciary capacity or (iv) any other account acceptable to each Rating Agency. Eligible Accounts may bear interest and may include, if otherwise qualified under this definition, accounts maintained with the Trustee. ERISA: The Employee Retirement Income Security Act of 1974, as amended. ERISA RESTRICTED CERTIFICATES: The Class A-9 and Class B Certificates. ESCROW ACCOUNT: As defined in Section 3.09. ESCROW PAYMENTS: The amounts constituting taxes, assessments, Primary Insurance Policy premiums, fire and hazard insurance premiums and other payments as may be required to be escrowed by the Mortgagor with the mortgagee pursuant to the terms of any Mortgage Note or Mortgage. EVENT OF DEFAULT: As defined in Section 8.01. EXCESS LOSSES: For any Distribution Date, the amount of any (i) Fraud Losses in excess of the Fraud Loss Amount, (ii) Special Hazard Losses in excess of the Special Hazard Loss Amount or (iii) Bankruptcy Losses in excess of the Bankruptcy Loss Amount. EXCESS PROCEEDS: With respect to any Liquidated Mortgage Loan, the amount, if any, by which the sum of any Liquidation Proceeds of such Mortgage Loan received in the calendar month in which such Mortgage Loan became a Liquidated Mortgage Loan, net of any amounts previously reimbursed to the related Servicer as Nonrecoverable Advance(s) with respect to such Mortgage Loan pursuant to Section 3.11(a)(iii), exceeds (i) the unpaid principal balance of such Liquidated Mortgage Loan as of the Due Date in the month in which such Mortgage Loan became a Liquidated Mortgage Loan plus (ii) accrued interest at the Mortgage Interest Rate from the Due Date as to which interest was last paid or for which a Periodic Advance was made (and not reimbursed) up to the Due Date applicable to the Distribution Date immediately following the calendar month during which such liquidation occurred. FDIC: The Federal Deposit Insurance Corporation, or any successor thereto. FHLMC: The Federal Home Loan Mortgage Corporation, or any successor thereto. FINAL DISTRIBUTION DATE: The Distribution Date on which the final distribution in respect of the Certificates will be made pursuant to Section 10.01. FINANCIAL MARKET SERVICE: Bloomberg Financial Service and any other financial information provider designated by the Depositor by written notice to the Trustee. FIRREA: The Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended. FITCH: Fitch IBCA, Inc., or any successor thereto. FNMA: Fannie Mae, or any successor thereto. FRACTIONAL INTEREST: As defined in Section 5.02(d). FRAUD LOSS: Realized Losses on Mortgage Loans as to which a loss is sustained by reason of a default arising from fraud, dishonesty or misrepresentation in connection with the related Mortgage Loan, including a loss by reason of the denial of coverage under any related Primary Insurance Policy because of such fraud, dishonesty or misrepresentation. FRAUD LOSS AMOUNT: For each Distribution Date occurring during the period from the Closing Date through the first anniversary of the Cut-Off Date, the Initial Fraud Loss Amount reduced by the amount of Fraud Losses allocated to the Certificates. Thereafter, the Fraud Loss Amount shall be equal to the lesser of (i) the Initial Fraud Loss Amount reduced by the amount of Fraud Losses allocated to the Certificates and (ii) for each Distribution Date occurring (a) during the period from the day after the first anniversary through the third anniversary of the Cut-Off Date, 1% of the Pool Stated Principal Balance, (b) during the period from the day after the third anniversary through the fifth anniversary of the Cut-Off Date, 0.5% of the Pool Stated Principal Balance, and (c) after the fifth anniversary of the Cut-Off Date, zero. HOLDER: A Certificateholder. INDEPENDENT: When used with respect to any specified Person means such a Person who (i) is in fact independent of the Depositor and the Servicers, (ii) does not have any direct financial interest or any material indirect financial interest in the Depositor or either Servicer or in an affiliate of any of them, and (iii) is not connected with the Depositor or either Servicer as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. INDIRECT DEPOSITORY PARTICIPANT: A broker, dealer, bank or other financial institution or other Person maintaining a custodial relationship with a Depository Participant. INITIAL BANKRUPTCY LOSS AMOUNT: $145,566.42. INITIAL CLASS CERTIFICATE BALANCE: As to each Class of Certificates, the Class Certificate Balance set forth in the Preliminary Statement. INITIAL COMPONENT BALANCE: As to the Class A-14 PAC Component and the Class A-14 TAC Component, the Component Balance set forth in the Preliminary Statement. The Class A-14 PAC IO A Component, the Class A-14 PAC IO B Component and the Class A-14 TAC IO Component are interest-only Components and have no Initial Component Balance. INITIAL FRAUD LOSS AMOUNT: $5,003,766.22. INITIAL SPECIAL HAZARD AMOUNT: $5,093,858.04. INSURANCE POLICY: With respect to any Mortgage Loan included in the Trust Estate, any related insurance policy, including all riders and endorsements thereto in effect, including any replacement policy or policies for any Insurance Policies. INSURANCE PROCEEDS: Proceeds paid by an insurer pursuant to any Insurance Policy, in each case other than any amount included in such Insurance Proceeds in respect of Insured Expenses. INSURED EXPENSES: Expenses covered by an Insurance Policy or any other insurance policy with respect to the Mortgage Loans. INTEREST ACCRUAL PERIOD: As to any Distribution Date and each Class of Certificates (other than the Class A-14 and Class A-PO Certificates) and each Component, the period from and including the first day of the calendar month preceding the calendar month of such Distribution Date to but not including the first day of the calendar month of such Distribution Date. INTEREST DISTRIBUTION AMOUNT: For any Distribution Date and each interest-bearing Class (other than the Class A-14 Certificates), the sum of (i) the Accrued Certificate Interest, subject to reduction pursuant to Section 5.02(c) and (ii) any Class Unpaid Interest Shortfall for such Class. For any Distribution Date and the Class A-14 Certificates, the sum of the Component Interest Distribution Amounts. LIQUIDATED MORTGAGE LOAN: With respect to any Distribution Date, a defaulted Mortgage Loan (including any REO Property) that was liquidated in the calendar month preceding the month of such Distribution Date and as to which the related Servicer has certified (in accordance with this Agreement) that it has received all proceeds it expects to receive in connection with the liquidation of such Mortgage Loan including the final disposition of an REO Property. LIQUIDATION PROCEEDS: Amounts, including Insurance Proceeds, received in connection with the partial or complete liquidation of defaulted Mortgage Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts received in connection with any condemnation or partial release of a Mortgaged Property and any other proceeds received in connection with an REO Property, less the sum of related unreimbursed Servicing Fees and Advances. LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan and any date of determination, the fraction, expressed as a percentage, the numerator of which is the outstanding principal balance of the related Mortgage Loan at the date of determination and the denominator of which is the Appraised Value of the related Mortgaged Property. LOWER-TIER DISTRIBUTION AMOUNT: As defined in Section 5.02(a). LOWER-TIER REMIC: As defined in the Preliminary Statement, the assets of which consist of the Mortgage Loans, such amounts as shall from time to time be held in the Certificate Account, the insurance policies, if any, relating to a Mortgage Loan and property which secured a Mortgage Loan and which has been acquired by foreclosure or deed in lieu of foreclosure. MONTHLY PAYMENT: The scheduled monthly payment on a Mortgage Loan due on any Due Date allocable to principal and/or interest on such Mortgage Loan which, unless otherwise specified herein, shall give effect to any related Debt Service Reduction and any Deficient Valuation that affects the amount of the monthly payment due on such Mortgage Loan. MORTGAGE: The mortgage, deed of trust or other instrument creating a first lien on a Mortgaged Property securing a Mortgage Note or creating a first lien on a leasehold interest. MORTGAGE FILE: The mortgage documents listed in Section 2.01 pertaining to a particular Mortgage Loan and any additional documents required to be added to the Mortgage File pursuant to this Agreement. MORTGAGE INTEREST RATE: As to any Mortgage Loan, the per annum rate of interest at which interest accrues on the principal balance of such Mortgage Loan in accordance with the terms of the related Mortgage Note. MORTGAGE LOAN PURCHASE AGREEMENT: Each of the BA Mortgage Loan Purchase Agreement and the NMC Mortgage Loan Purchase Agreement. MORTGAGE LOAN SCHEDULE: The list of Mortgage Loans (as from time to time amended by the applicable Servicer to reflect the addition of Substitute Mortgage Loans and the deletion of Defective Mortgage Loans pursuant to the provisions of this Agreement) transferred to the Trustee as part of the Trust Estate and from time to time subject to this Agreement, attached hereto as EXHIBIT D-1 and EXHIBIT D-2, setting forth the following information with respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii) a code indicating whether the Mortgaged Property is owner-occupied; (iii) the property type for each Mortgaged Property; (iv) the original months to maturity or the remaining months to maturity from the Cut-Off Date; (v) the Loan-to-Value Ratio at origination; (vi) the Mortgage Interest Rate; (vii) the date on which the first Monthly Payment was due on the Mortgage Loan, and, if such date is not the Due Date currently in effect, such Due Date; (viii) the stated maturity date; (ix) the amount of the Monthly Payment as of the Cut-Off Date; (x) the paid-through date; (xi) the original principal amount of the Mortgage Loan; (xii) the principal balance of the Mortgage Loan as of the close of business on the Cut-Off Date, after application of payments of principal due on or before the Cut-Off Date, whether or not collected, and after deduction of any payments collected of scheduled principal due after the Cut-Off Date; (xiii) a code indicating the purpose of the Mortgage Loan; (xiv) a code indicating the documentation style; and (xv) the Appraised Value. With respect to the Mortgage Loans in the aggregate, the Mortgage Loan Schedule shall set forth the following information, as of the Cut-Off Date: (i) the number of Mortgage Loans; (ii) the current aggregate outstanding principal balance of the Mortgage Loans; (iii) the weighted average Mortgage Rate of the Mortgage Loans; and (iv) the weighted average months to maturity of the Mortgage Loans. MORTGAGE LOANS: Such of the mortgage loans transferred and assigned to the Trustee pursuant to Section 2.01 as from time to time are held as a part of the Trust Estate (including any Substitute Mortgage Loans and REO Property), the Mortgage Loans originally so held being identified in the Mortgage Loan Schedule. MORTGAGE NOTE: The originally executed note or other evidence of indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan, together with all riders thereto and amendments thereof. MORTGAGED PROPERTY: The underlying property securing a Mortgage Loan. MORTGAGOR: The obligor on a Mortgage Note. NET MORTGAGE INTEREST RATE: As to any Mortgage Loan and Distribution Date, such Mortgage Loan's Mortgage Interest Rate thereon on the first day of the month preceding the month of the related Distribution Date reduced by the related Servicing Fee Rate and the Trustee Fee Rate. NMC MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement, dated March 25, 1999, between the NMC Seller, as seller, and the Depositor, as purchaser. NMC MORTGAGE LOANS: The Mortgage Loans serviced by the NMC Servicer and identified on EXHIBIT D-2 as such Exhibit is amended from time to time to reflect the addition of Substitute Mortgage Loans and the deletion of Defective Mortgage Loans pursuant to the provisions of this Agreement. NMC SELLER: NationsBanc Mortgage Corporation, a Texas corporation, or its successor in interest, as seller of the NMC Mortgage Loans under the NMC Mortgage Loan Purchase Agreement. NMC SERVICER: NationsBanc Mortgage Corporation, a Texas corporation, or its successor in interest, in its capacity as servicer of the NMC Mortgage Loans, or any successor servicer appointed as herein provided. NMC SERVICER CUSTODIAL ACCOUNT: The separate Eligible Account or Accounts created and maintained by the NMC Servicer pursuant to Section 3.08(b). NON-PO PERCENTAGE: As to any Discount Mortgage Loan, a fraction (expressed as a percentage), the numerator of which is the Net Mortgage Interest Rate of such Discount Mortgage Loan and the denominator of which is 6.50%. As to any Mortgage Loan that is not a Discount Mortgage Loan, 100%. NON-PO PRINCIPAL AMOUNT: As to any Distribution Date, the sum of the applicable Non-PO Percentage of (a) the principal portion of each Monthly Payment (without giving effect, prior to the reduction of the Bankruptcy Loss Amount to zero, to any reductions thereof caused by any Debt Service Reductions) due on each Mortgage Loan on the related Due Date, (b) the Stated Principal Balance, as of the date of repurchase, of each Mortgage Loan that was repurchased by the Depositor pursuant to this Agreement as of such Distribution Date, (c) any Substitution Adjustment Amount in connection with a Defective Mortgage Loan received with respect to such Distribution Date, (d) any Liquidation Proceeds allocable to recoveries of principal of Mortgage Loans that are not yet Liquidated Mortgage Loans received during the calendar month preceding the month of such Distribution Date, (e) with respect to each Mortgage Loan that became a Liquidated Mortgage Loan during the calendar month preceding the month of such Distribution Date, the amount of Liquidation Proceeds allocable to principal received during the calendar month preceding the month of such Distribution Date with respect to such Mortgage Loan and (f) all Principal Prepayments received during the calendar month preceding the month of such Distribution Date. NON-SUPPORTED INTEREST SHORTFALLS: As to any Distribution Date, the amount, if any, by which the aggregate of Prepayment Interest Shortfalls exceeds Compensating Interest for such Distribution Date. NON-U.S. PERSON: A Person other than a U.S. Person. NONRECOVERABLE ADVANCE: Any portion of an Advance previously made or proposed to be made in respect of a Mortgage Loan which has not been previously reimbursed and which, in the good faith judgment of the related Servicer, will not or, in the case of a proposed Advance, would not be ultimately recoverable from the related Mortgagor, related Liquidation Proceeds, or other recoveries in respect of the related Mortgage Loan. NOTIONAL AMOUNT: As to any Distribution Date, the Class A-14 PAC IO A Notional Amount, the Class A-14 PAC IO B Notional Amount or the Class A-14 TAC IO Notional Amount. OFFERED CERTIFICATES: The Class A, Class B-1, Class B-2 and Class B-3 Certificates. OFFICER'S CERTIFICATE: A certificate signed by the Chairman of the Board, Vice Chairman of the Board, President or a Vice President and by the Treasurer, the Secretary or one of the Assistant Treasurers or Assistant Secretaries, or any other duly authorized officer of the Depositor or either Servicer, as the case may be, and delivered to the Trustee. OPINION OF COUNSEL: A written opinion of counsel acceptable to the Trustee, who may be counsel for the Depositor or a Servicer, except that any opinion of counsel relating to the qualification of the Trust Estate as two separate REMICs or compliance with the REMIC Provisions must be an opinion of Independent counsel. ORIGINAL FRACTIONAL INTEREST: With respect to each of the following Classes of Subordinate Certificates, the corresponding percentage described below, as of the Closing Date: Class B-1 1.85% Class B-2 1.10% Class B-3 0.75% Class B-4 0.40% Class B-5 0.20% Class B-6 0.00% ORIGINAL SUBORDINATE CERTIFICATE BALANCE: $20,015,455.77. OTS: The Office of Thrift Supervision. OUTSTANDING MORTGAGE LOAN: As to any Due Date, a Mortgage Loan which was not the subject of a Principal Prepayment in Full prior to such Due Date, which did not become a Liquidated Mortgage Loan prior to such Due Date and which was not purchased from the Trust prior to such Due Date pursuant to Sections 2.02 or 2.05. OWNERSHIP INTEREST: As to any Certificate, any ownership or security interest in such Certificate, including any interest in such Certificate as the Holder thereof and any other interest therein, whether direct or indirect, legal or beneficial, as owner or as pledgee. PAC PRINCIPAL AMOUNT: As to any Distribution Date and for the Class A-11 or Class A-12 Certificates or the Class A-14 PAC Component, the amount, if any, that would reduce the Class Certificate Balance or Component Balance thereof to the balance shown in the tables set forth in EXHIBIT K with respect to such Distribution Date. PASS-THROUGH RATE: As to each Class of interest-bearing Certificates (other than the Class A-14 Certificates), the per annum rate set forth in the Preliminary Statement. PAYING AGENT: As defined in Section 9.13. PERCENTAGE INTEREST: As to any Certificate, the percentage obtained by dividing the initial Certificate Balance of such Certificate by the Initial Class Certificate Balance of the Class of which such Certificate is a part. PERIODIC ADVANCE: The payment required to be made by a Servicer with respect to any Distribution Date pursuant to Section 3.20, the amount of any such payment being equal to the aggregate of Monthly Payments (net of the Servicing Fee) on the Mortgage Loans (including any REO Property) serviced by such Servicer that were due on the related Due Date and not received as of the close of business on the related Determination Date, less the aggregate amount of any such delinquent payments that such Servicer has determined would constitute a Nonrecoverable Advance if advanced. PERMITTED INVESTMENTS: One or more of the following: (i) obligations of or guaranteed as to principal and interest by the United States, FHLMC, FNMA or any agency or instrumentality of the United States when such obligations are backed by the full faith and credit of the United States; provided that such obligations of FHLMC or FNMA shall be limited to senior debt obligations and mortgage participation certificates other than investments in mortgage-backed or mortgage participation securities with yields evidencing extreme sensitivity to the rate of principal payments on the underlying mortgages, which shall not constitute Permitted Investments hereunder; (ii) repurchase agreements on obligations specified in clause (i) maturing not more than one month from the date of acquisition thereof with a corporation incorporated under the laws of the United States or any state thereof rated not lower than "A-1" by S&P and "F-1" by Fitch; (iii) federal funds, certificates of deposit, demand deposits, time deposits and bankers' acceptances (which shall each have an original maturity of not more than 90 days and, in the case of bankers' acceptances, shall in no event have an original maturity of more than 365 days or a remaining maturity of more than 30 days) denominated in United States dollars of any U.S. depository institution or trust company incorporated under the laws of the United States or any state thereof, rated not lower than "A-1" by S&P and "F-1" by Fitch; (iv) commercial paper (having original maturities of not more than 365 days) of any corporation incorporated under the laws of the United States or any state thereof which is rated not lower than "A-1" by S&P and "F-1" by Fitch; (v) investments in money market funds (including funds of the Trustee or its affiliates, or funds for which an affiliate of the Trustee acts as advisor, as well as funds for which the Trustee and its affiliates may receive compensation) rated either "AAAm" or "AAAm G" by S&P, and "AAA" by Fitch or otherwise approved in writing by each Rating Agency; and (vi) other obligations or securities that are acceptable to each Rating Agency and, as evidenced by an Opinion of Counsel obtained by either Servicer, will not affect the qualification of either of the REMICs as a REMIC; provided, however, that no instrument shall be a Permitted Investment if it represents either (a) the right to receive only interest payments with respect to the underlying debt instrument or (b) the right to receive both principal and interest payments derived from obligations underlying such instrument and the principal and interest with respect to such instrument provide a yield to maturity greater than 120% of the yield to maturity at par of such underlying obligations. PERMITTED TRANSFEREE: Any Person other than (i) the United States, or any State or any political subdivision thereof, or any agency or instrumentality of any of the foregoing, (ii) a foreign government, international organization or any agency or instrumentality of either of the foregoing, (iii) an organization which is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by Section 511 of the Code on unrelated business taxable income) (except certain farmers' cooperatives described in Code Section 521), (iv) rural electric and telephone cooperatives described in Code Section 1381(a)(2)(C) and (v) any other Person so designated by either Servicer based on an Opinion of Counsel to the effect that any transfer to such Person may cause the Trust or any other Holder of a Residual Certificate to incur tax liability that would not be imposed other than on account of such transfer. The terms "United States," "State" and "international organization" shall have the meanings set forth in Code Section 7701 or successor provisions. PERSON: Any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. PHYSICAL CERTIFICATES: The Class B-4, Class B-5, Class B-6, Class A-R and Class A-LR Certificates. PLAN: As defined in Section 6.02(e). PO PERCENTAGE: As to any Discount Mortgage Loan, 100% minus the Non-PO Percentage for such Mortgage Loan. As to any Mortgage Loan that is not a Discount Mortgage Loan, 0%. PO PRINCIPAL AMOUNT: As to any Distribution Date, the sum of the applicable PO Percentage of (a) the principal portion of each Monthly Payment (without giving effect, prior to the reduction of the Bankruptcy Loss Amount to zero, to any reductions thereof caused by any Debt Service Reductions) due on each Mortgage Loan on the related Due Date, (b) the Stated Principal Balance, as of the date of repurchase, of each Mortgage Loan that was repurchased by the related Seller or the Depositor pursuant to this Agreement as of such Distribution Date, (c) any Substitution Adjustment Amount in connection with any Defective Mortgage Loan received with respect to such Distribution Date, (d) any Liquidation Proceeds allocable to recoveries of principal of Mortgage Loans that are not yet Liquidated Mortgage Loans received during the calendar month preceding the month of such Distribution Date, (e) with respect to each Mortgage Loan that became a Liquidated Mortgage Loan during the calendar month preceding the month of such Distribution Date, the amount of Liquidation Proceeds allocable to principal received with respect to such Mortgage Loan during the calendar month preceding the month of such Distribution Date with respect to such Mortgage Loan and (f) all Principal Prepayments received during the calendar month preceding the month of such Distribution Date. POOL DISTRIBUTION AMOUNT: As to any Distribution Date, the excess of (a) the sum of (i) the aggregate of (A) the interest portion of any Monthly Payment (net of the Servicing Fee) and the principal portion of any Monthly Payment due on the Due Date in the month in which such Distribution Date occurs and which is received prior to the related Determination Date and (B) all Periodic Advances and payments of Compensating Interest made by the Servicers in respect of such Distribution Date deposited to the Servicer Custodial Accounts pursuant to Section 3.08(b)(vii); (ii) all Liquidation Proceeds received during the preceding calendar month and deposited to the Servicer Custodial Accounts pursuant to Section 3.08(b)(iii); (iii) all Principal Prepayments received during the month preceding the month of such Distribution Date and deposited to the Servicer Custodial Accounts pursuant to Section 3.08(b)(i) during such period; (iv) in connection with Defective Mortgage Loans, as applicable, the aggregate of the Repurchase Prices and Substitution Adjustment Amounts deposited on the related Remittance Date pursuant to Section 3.08(b)(vi); and (v) any other amounts in the Servicer Custodial Accounts deposited therein pursuant to Sections 3.08(b)(iv), (v) and (viii) in respect of such Distribution Date; over (b) any (i) amounts permitted to be withdrawn from the Servicer Custodial Accounts pursuant to clauses (i) through (vii), inclusive, of Section 3.11(a) and (ii) amounts permitted to be withdrawn from the Certificate Account pursuant to clauses (i) and (ii) of Section 3.11(b). POOL STATED PRINCIPAL BALANCE: As to any Distribution Date, the aggregate Stated Principal Balances of all Mortgage Loans that were Outstanding Mortgage Loans immediately following the Due Date in the month of such Distribution Date. PREPAYMENT INTEREST SHORTFALL: As to any Distribution Date and each Mortgage Loan subject to a Principal Prepayment received during the calendar month preceding such Distribution Date, the amount, if any, by which one month's interest at the related Mortgage Interest Rate (net of the Servicing Fee) on such Principal Prepayment exceeds the amount of interest paid in connection with such Principal Prepayment. PRIMARY INSURANCE POLICY: Each policy of primary mortgage guaranty insurance or any replacement policy therefor with respect to any Mortgage Loan, in each case issued by an insurer acceptable to FNMA or FHLMC. PRINCIPAL-ONLY CERTIFICATES: Any Class of Certificates entitled to distributions of principal, but to no distributions of interest. The Class A-