The usa and Morgan Stanley try together described as “the brand new Functions

So it Payment Agreement (“Agreement”) is joined with the between the Us, pretending from All of us Institution off Fairness (“Department out of Fairness”), and you can Morgan Stanley. “

A beneficial. Brand new Agencies from Fairness conducted analysis of your packing, revenue, selling, structuring, arrangement, and you can issuance from certain home-based financial-backed securities (“RMBS”) by the Morgan Stanley anywhere between 2005 and you may 2007. Predicated on those research, the united states believes that there is a keen evidentiary base so you can lose possible court states by the You facing Morgan Stanley having abuses out of federal laws and regulations in connection with new packing, marketing, revenue, structuring, plan, and you can issuance of them RMBS.

B. Morgan Stanley recognizes the facts set-out about Declaration out of affairs established inside the Annex step 1, affixed and you can hereby incorporated.

C. The state of Ny are stepping into a binding agreement having Morgan Stanley to respond to similar claims the state has up against Morgan Stanley for solution away from state statutes concerning the such RMBS.

A good. Contained in this ten (15) working days off getting written commission processing tips regarding Agency from Justice, Morgan Stanley should afford the Settlement Number by electronic finance import with the Company off Fairness.

Secured Conduct

B. Brand new entirety of Settlement Matter are a civil economic penalty recovered pursuant for the creditors Change, Healing, and Administration Act (“FIRREA”), twelve You.S.C. 1833a.

Morgan Stanley should spend a total amount of one or two million, six-hundred or so million cash ($dos,600,000,000) to respond to pending and you can prospective courtroom claims because the established here about the the fresh production, pooling, structuring, organizing, formation, packaging, revenue, underwriting, selling, or issuance out-of RMBS because of the Morgan Stanley (“‘Settlement Number”)

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., Huntsville loans 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.