So it Payment Agreement (“Agreement”) are entered towards the between your All of us, acting from All of us Service from Justice (“Institution out of Justice”), and you may Morgan Stanley. “

An excellent. New Service off Justice held evaluation of one’s packing, deals, product sales, structuring, plan, and you will issuance from certain home-based financial-recognized securities (“RMBS”) from the Morgan Stanley ranging from 2005 and you may 2007. According to those people research, the united states thinks that there surely is a keen evidentiary basis to lose potential legal states because of the You against Morgan Stanley to possess violations of government rules in connection with the fresh packaging, selling, business, structuring, plan, and you may issuance of them RMBS.

B. Morgan Stanley recognizes the facts set-out regarding Declaration away from facts set forth for the Annex 1, connected and you can hereby provided.

C. The state of Ny are getting into a binding agreement which have Morgan Stanley to respond to comparable says the state has actually up against Morgan Stanley getting violation off condition legislation to the such RMBS.

A. Within ten (15) working days away from choosing authored payment running rules about Agencies out-of Fairness, Morgan Stanley shall afford the Payment Amount by electronic fund transfer for the Institution away from Fairness.

Safeguarded Run

B. This new totality of your own Settlement Count try a municipal financial penalty recovered pursuant to your loan providers Change, have a peek at the web-site Recuperation, and you will Enforcement Work (“FIRREA”), several U.S.C. § 1833a.

Morgan Stanley will shell out a whole quantity of one or two mil, six-hundred mil dollars ($dos,600,000,000) to resolve pending and you will possible legal says since the established here to the brand new production, pooling, structuring, arranging, creation, packing, sales, underwriting, marketing, or issuance regarding RMBS by Morgan Stanley (“‘Settlement Matter”)

2. . “” as used herein is defined as, prior to , the creation, pooling, structuring, arranging, formation, packaging, marketing, underwriting, sale, or issuance of the RMBS identified in Annex 2 by Morgan Stanley and its current or former subsidiaries and affiliates, including but not limited to Morgan Stanley & Co., Inc., Morgan Stanley Credit Corporation, Morgan Stanley Mortgage Capital Holding LLC, Morgan Stanley ABS Capital I, Inc., Morgan Stanley Capital I, Inc., Saxon Asset Securities Company and Saxon Mortgage Services, inc. The includes representations, disclosures, or non-disclosures to RMBS investors made about or in connection with the activities set forth above, where the representation or non-disclosure involves information about or obtained during the process of originating, acquiring, securitizing, underwriting, or servicing residential mortgage loans included in the RMBS identified in Annex 2. The does not include: (i) conduct relating to the origination of residential mortgages, except representations or non-disclosures to investors in the RMBS listed in Annex 2 about origination of, or about information obtained in the course of originating, such loans; (ii) representations or non-disclosures made in connection with collateralized debt obligations, other derivative securities, or the secondary trading by Morgan Stanley of RMBS, except to the extent that the representations or non-disclosures are related to the offering materials for the underlying RMBS listed in Annex 2; and (iii) the servicing of residential mortgage loans, except representations or non-disclosures to investors in the RMBS listed in Annex 2 about servicing, or information obtained in the course of servicing, such loans.

3. Cooperation. Until the date upon which all investigations and any prosecution arising out of the arc concluded by the Department of Justice, whether or not they are concluded within the term of this Agreement, Morgan Stanley shall, subject to applicable laws or regulations: (a) cooperate fully with the Department of Justice (including the Federal Bureau of Investigation) and any other law enforcement agency designated by the Department of Justice regarding matters arising out of the ; (b) assist the Department of Justice in any investigation or prosecution arising out of the by providing logistical and technical support for any meeting, interview, deposition or other sworn testimony, grand jury proceeding, or any trial or other court proceeding; (e) use its best efforts to secure the attendance and truthful statements or testimony of any officer, director, agent, or employee of any of the entities released in Paragraph 4 at any meeting or interview, deposition or other sworn testimony, or before the grand jury or at any trial or other court proceeding regarding matters arising out of the : and (d) provide the Department of Justice, upon request, all non-privileged information, documents, records, or other tangible evidence regarding matters arising out of the about which the Department of Justice or any designated law enforcement agency inquires.