Preview
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022
EXHIBIT 7
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022
PROSPECTUS SUPPLEMENT
$1,089,851,000
(Approximate)
Asset-Backed Certificates, Series 2007-3
Nomura Home Equity Loan, Inc.,
Home Equity Loan Trust, Series 2007-3
Issuing Entity
Nomura Credit & Capital, Inc. Nomura Home Equity Loan, Inc.
Sponsor Depositor
Equity One, Inc. Wells Fargo Bank, N.A.
Ocwen Loan Servicing, LLC Master Servicerand SecuritiesAdministrator
Wells Fargo Bank, N.A.
Servicers
Consider carefully the Risk
Factors beginning on page S-16
The followingclasses of certificates
are beingoffered
pursuantto this prospectus
supplement and the
in this
prospectus supplement.
accompanying prospectus:
The certificateswill represent
ApproximateInitial
Certificate Pass-
Initial Underwriting
interestsin the Issuing Entity
Class Balance®
Principal Through Rate % Price to Public Discount
created for Series 2007-3 only."
. I-A-1 $ 245.105,000 (2) 100.00000% 0.20%
and willnot representmterestsin Floating
II-A-1 $ 423.527,000 ® 100.00000% 0.20%
Floating
or obligationsof Nomura Home II-A-2 $ 47.706,000 ® 100.00000% 0.20%
Floating
Loan, Inc., Nomura II-A-3 $ 116,569,000 ® 100.00000% 0.20%
Equity Floating
Credit the II-A-4 $ 6,233,000 ® 100.00000% 0.20%
& Capital, Inc., Floating
M-1 $ 52,088,000 ® 100.00000% 0.20%
Underwriters, the Master Floating
M-2 $ 46.365,000 ® 100.00000% 0.20%
the the Floating
Servicer, Servicers, ®
M-3 $ 28.620 000 Floating 100.00000% 0.20%
Securities Administrator, the M-4 25.186 000 (1® 100.00000% 0.20%
$ Floating
Trustee or anyof their
respective M-5 $ 24,041,000 (H) 100.00000% 0.20%
Floating
affiliates. M-6 $ 20,034,000 (12) 100.00000% 0.20%
Floating
M-7 $ 20,034,000 (B) N/A 0.20%
Floating
M-8 $ 18,889,000 (14 N/A 0.20%
Floating
M-9 $ 15,454,000 (13 N/A 0.20%
Floating
See next page for
footnotes.
The IssuingEntity willissue18 classesof 14 of
certificates, which areofferedhereby. Each classof offeredcertificates
will receivemonthly
distributions
of principal
interest, or both.The tableabove containsa list
of theclassesof offeredcertificates,
includingtheapproximate initial
certificate
principalbalanceof each class.
Creditenhancement forthe offeredcertificates
willbe providedby excess spread,
subordination, overcollateralization
and cross-collateralization.
In
the certificates
addition, offeredherebymay benefit
from net swap paymentspursuant to an interest
rateswap agreement and certain
payments made
pursuantto an interest
rate cap agreement.
The trustwillconsistof one-to-four
conventional, family,fixedrateand adjustable-rate
mortgage loans securedby first
liensor second lienson
residential
real properties.
Lehman BrothersInc.,Greenwich CapitalMarkets,Inc.and Mern11 Lynch, Pierce,Fenner& Smith Incorporated
(the will
"Underwriters") buy the
offeredcertificates
from the Depositor ata priceequal to approximately 99.08% of the aggregatecertificate
principalbalanceof the offered
certificates
beforedeductingexpenses estimatedto be $1,051,635.
The Underwriters will offerthe offered (other
certificates than the Class M-7, Class M-8 and Class M-9 at
Certificates) the prices
indicatedabove. The Class M-7, ClassM-8 and Class M-9 Certificateswillbe offered from time to time in negotiatedtransactions or
otherwise at varyingprices to bedetermined at thetime of sale.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR
DISAPPROVED OF THE OFFERED CERTIFICATES OR DETERMINED THAT THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS
IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING.
ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
LEHMAN BROTHERS
D RBS Greenwich Capital
Merrill Lynch & Co.
The date of thisprospectussupplement is April27, 2007
For use with thebase prospectusdated April 18, 2006
CONFIDENTIAL NOM_LBFII 3156100
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022
(1) Approximate.
(2) The per annum pass-through
rate on the Class I-A-1
Certificates
will
equal the least of (i) the sum of One-Month
LIBOR for
that distribution
date plus (A)
on or prior
to the first
possible
optionaltermination
date, 0.24% or (B)
after the first
possible
optional
termination
date, two times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(3) The per annum pass-through
rate on the Class II-A-1
Certificates
willequal the least of (i) the sum of One-Month
LIBOR for
that distribution
date plus (A)
on or prior
to the first
possible
optionaltermination
date, 0.14% or (B)
after the first
possible
optional
termination
date, two times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(4) The per annum pass-through
rate on the Class II-A-2
Certificates
willequal the least of (i) the sum of One-Month
LIBOR for
that distribution
date plus (A)
on or prior
to the first
possible
optionaltermination
date, 0.24% or (B)
after the first
possible
optional
termination
date, two times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(5) The per annum pass-through
rate on the Class II-A-3
Certificates
willequal the least of (i) the sum of One-Month
LIBOR for
that distribution
date plus (A)
on or prior
to the first
possible
optionaltermination
date, 0.32% or (B)
after the first
possible
optional
termination
date, two times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(6) The per annum pass-through
rate on the Class Il-A-4
Certificates
willequal the least of (i) the sum of One-Month
LIBOR for
that distribution
date plus (A)
on or prior
to the first
possible
optionaltermination
date, 0.45% or (B)
after the first
possible
optional
termination
date, two times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(7) The per annum pass-through
rate on the Class M-1
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 0.55% or (B)
after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(8) The per annum pass-through
rate on the Class M-2
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 0.73% or (B)
after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(9) The per annum pass-through
rate on the Class M-3
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 0.90% or (B)
after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(10) The per annum pass-through
rate on the Class M-4
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 1.40% or (B)
after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(11) The per annum pass-through
rate on the Class M-5
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 1.75% or (B)
after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(12) The per annum pass-through
rate on the Class M-6
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 2.25%or (B)after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(13) The per annum pass-through
rate on the Class M-7
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 2.50%or (B)after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
(14) The per annum pass-through
rate on the Class M-8
Certificates
willequal the least of (i)
the sum of One-MonthLIBOR for
that distribution
date plus (A)
on or prior
to the first
possibleoptional
termination
date, 2.50%or (B)after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
..
11
CONFIDENTIAL NOM_LBFII 3156101
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022
(15) The per annum pass-through
rate on the Class M-9
Certificates
will the sum of One-Month
equal the least of (i) LIBOR for
that distribution on or prior
date plus (A) to the first
possibleoptional
termination
date, 2.50%or (B)after the first
possible
optional
terminationdate, one and one-half
times the applicable
certificate
margin, the applicable
(ii) Net Funds Cap and (iii)
the applicable
Maximum Cap.
CONFIDENTIAL NOM_LBFII 3156102
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013
NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022
TABLE OF CONTENTS
PROSPECTUS SUPPLEMENT PROSPECTUS
SUMMARY....................................................................................................
S-1 RISK FACTORS...........................................................................................
4
TRANSACTION STRUCTURE...............................................................
S-15 DESCRIPTION OF THE TRUST FUNDS.............................................. 27
RISK FACTORS.........................................................................................
S-16 CASH FLOW AGREEMENTS.................................................................
45
THE MORTGAGE POOL......................................................................... S-39
USE OF PROCEEDS..................................................................................
45
DESCRIPTION OF THE CERTIFICATES............................................
S-89 YTELD AND PREPAYMENT CONSIDERATIONS..............................
46
THE INTEREST RATE SWAP AGREEMENT...................................
S-123 STATIC POOL INFORMATION.............................................................
49
THE INTEREST RATE CAP AGREEMENT......................................
S-130 DESCRIPTION OF THE SECURITIES..................................................
49
THE SWAP PROVIDER AND THE INTEREST RATE CAP DESCRIPTION OF THE AGREEMENTS..............................................
71
PROVIDER.......................................................................................
S-135 DESCRIPTION OF CREDIT SUPPORT ................................................ 99
YIELD, PREPAYMENT AND MATURITY DERIVATIVES RELATED TO THE SECURITIES...........................
104
CONSIDERATIONS........................................................................
S-136 CERTAIN LEGAL ASPECTS OF THE LOANS ................................. 105
THE SPONSOR........................................................................................ S-160
FEDERAL INCOME TAX CONSEQUENCES....................................
123
STATIC POOL INFORMATION..........................................................
S-160 ERISA CONSIDERATIONS...................................................................
156
ISSUING ENTITY....................................................................................
S-161 LEGAL INVESTMENT...........................................................................
165
THE DEPOSITOR....................................................................................
S-161 METHOD OF DISTRIBUTION..............................................................
166
SERVICING..............................................................................................
S-162 ADDITIONAL INFORMATION............................................................
167
THE MASTER SERVICER, SECURITIES INCORPORATION OF CERTAIN DOCUMENTS
ADMINISTRATOR AND CUSTODIAN......................................
S-176 BY REFERENCE .....................................................................................168
POOLING AND SERVICING AGREEMENT.....................................
S-179 LEGAL MATTERS ..................................................................................169
THE CREDIT RISK MANAGER...........................................................
S-191 FINANCIAL INFORMATION................................................................
169
USE OF PROCEEDSS-............................................................................ S-192
RATING.....................................................................................................
169
FEDERAL INCOME TAX CONSEQUENCES....................................
S-192 REPORTS TO SECURITYHOLDERS..................................................
169
ERISA CONSIDERATIONS...................................................................
S-196 INDEX OF DEFINED TERMS...............................................................
171
LEGAL INVESTMENT...........................................................................
S-197
METHOD OF DISTRIBUTION.............................................................
S-199
LEGAL MATTERS..................................................................................
S-200
RATINGS...................................................................................................
S-201
LEGAL PROCEEDINGS........................................................................
S-202
AFFILIATIONS, RELATIONSHIPS AND RELATED
TRANSACTIONS............................................................................
S-202
AVAILABLE INFORMATION..............................................................
S-202
REPORTS TO CERTIFICATEHOLDERS..........................................
S-203
INCORPORATION OF INFORMATION BY REFERENCE............
S-203
INDEX OF DEFINED TERMS...............................................................
S-204
ANNEX I.........................................................................................................I-1
IV
CONFIDENTIAL
Preview
FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022 EXHIBIT 7 FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022 PROSPECTUS SUPPLEMENT $1,089,851,000 (Approximate) Asset-Backed Certificates, Series 2007-3 Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2007-3 Issuing Entity Nomura Credit & Capital, Inc. Nomura Home Equity Loan, Inc. Sponsor Depositor Equity One, Inc. Wells Fargo Bank, N.A. Ocwen Loan Servicing, LLC Master Servicerand SecuritiesAdministrator Wells Fargo Bank, N.A. Servicers Consider carefully the Risk Factors beginning on page S-16 The followingclasses of certificates are beingoffered pursuantto this prospectus supplement and the in this prospectus supplement. accompanying prospectus: The certificateswill represent ApproximateInitial Certificate Pass- Initial Underwriting interestsin the Issuing Entity Class Balance® Principal Through Rate % Price to Public Discount created for Series 2007-3 only." . I-A-1 $ 245.105,000 (2) 100.00000% 0.20% and willnot representmterestsin Floating II-A-1 $ 423.527,000 ® 100.00000% 0.20% Floating or obligationsof Nomura Home II-A-2 $ 47.706,000 ® 100.00000% 0.20% Floating Loan, Inc., Nomura II-A-3 $ 116,569,000 ® 100.00000% 0.20% Equity Floating Credit the II-A-4 $ 6,233,000 ® 100.00000% 0.20% & Capital, Inc., Floating M-1 $ 52,088,000 ® 100.00000% 0.20% Underwriters, the Master Floating M-2 $ 46.365,000 ® 100.00000% 0.20% the the Floating Servicer, Servicers, ® M-3 $ 28.620 000 Floating 100.00000% 0.20% Securities Administrator, the M-4 25.186 000 (1® 100.00000% 0.20% $ Floating Trustee or anyof their respective M-5 $ 24,041,000 (H) 100.00000% 0.20% Floating affiliates. M-6 $ 20,034,000 (12) 100.00000% 0.20% Floating M-7 $ 20,034,000 (B) N/A 0.20% Floating M-8 $ 18,889,000 (14 N/A 0.20% Floating M-9 $ 15,454,000 (13 N/A 0.20% Floating See next page for footnotes. The IssuingEntity willissue18 classesof 14 of certificates, which areofferedhereby. Each classof offeredcertificates will receivemonthly distributions of principal interest, or both.The tableabove containsa list of theclassesof offeredcertificates, includingtheapproximate initial certificate principalbalanceof each class. Creditenhancement forthe offeredcertificates willbe providedby excess spread, subordination, overcollateralization and cross-collateralization. In the certificates addition, offeredherebymay benefit from net swap paymentspursuant to an interest rateswap agreement and certain payments made pursuantto an interest rate cap agreement. The trustwillconsistof one-to-four conventional, family,fixedrateand adjustable-rate mortgage loans securedby first liensor second lienson residential real properties. Lehman BrothersInc.,Greenwich CapitalMarkets,Inc.and Mern11 Lynch, Pierce,Fenner& Smith Incorporated (the will "Underwriters") buy the offeredcertificates from the Depositor ata priceequal to approximately 99.08% of the aggregatecertificate principalbalanceof the offered certificates beforedeductingexpenses estimatedto be $1,051,635. The Underwriters will offerthe offered (other certificates than the Class M-7, Class M-8 and Class M-9 at Certificates) the prices indicatedabove. The Class M-7, ClassM-8 and Class M-9 Certificateswillbe offered from time to time in negotiatedtransactions or otherwise at varyingprices to bedetermined at thetime of sale. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE OFFERED CERTIFICATES OR DETERMINED THAT THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. LEHMAN BROTHERS D RBS Greenwich Capital Merrill Lynch & Co. The date of thisprospectussupplement is April27, 2007 For use with thebase prospectusdated April 18, 2006 CONFIDENTIAL NOM_LBFII 3156100 FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022 (1) Approximate. (2) The per annum pass-through rate on the Class I-A-1 Certificates will equal the least of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optionaltermination date, 0.24% or (B) after the first possible optional termination date, two times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (3) The per annum pass-through rate on the Class II-A-1 Certificates willequal the least of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optionaltermination date, 0.14% or (B) after the first possible optional termination date, two times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (4) The per annum pass-through rate on the Class II-A-2 Certificates willequal the least of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optionaltermination date, 0.24% or (B) after the first possible optional termination date, two times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (5) The per annum pass-through rate on the Class II-A-3 Certificates willequal the least of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optionaltermination date, 0.32% or (B) after the first possible optional termination date, two times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (6) The per annum pass-through rate on the Class Il-A-4 Certificates willequal the least of (i) the sum of One-Month LIBOR for that distribution date plus (A) on or prior to the first possible optionaltermination date, 0.45% or (B) after the first possible optional termination date, two times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (7) The per annum pass-through rate on the Class M-1 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 0.55% or (B) after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (8) The per annum pass-through rate on the Class M-2 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 0.73% or (B) after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (9) The per annum pass-through rate on the Class M-3 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 0.90% or (B) after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (10) The per annum pass-through rate on the Class M-4 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 1.40% or (B) after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (11) The per annum pass-through rate on the Class M-5 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 1.75% or (B) after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (12) The per annum pass-through rate on the Class M-6 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 2.25%or (B)after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (13) The per annum pass-through rate on the Class M-7 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 2.50%or (B)after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. (14) The per annum pass-through rate on the Class M-8 Certificates willequal the least of (i) the sum of One-MonthLIBOR for that distribution date plus (A) on or prior to the first possibleoptional termination date, 2.50%or (B)after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. .. 11 CONFIDENTIAL NOM_LBFII 3156101 FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022 (15) The per annum pass-through rate on the Class M-9 Certificates will the sum of One-Month equal the least of (i) LIBOR for that distribution on or prior date plus (A) to the first possibleoptional termination date, 2.50%or (B)after the first possible optional terminationdate, one and one-half times the applicable certificate margin, the applicable (ii) Net Funds Cap and (iii) the applicable Maximum Cap. CONFIDENTIAL NOM_LBFII 3156102 FILED: NEW YORK COUNTY CLERK 08/04/2022 06:34 PM INDEX NO. 650337/2013 NYSCEF DOC. NO. 2093 RECEIVED NYSCEF: 08/04/2022 TABLE OF CONTENTS PROSPECTUS SUPPLEMENT PROSPECTUS SUMMARY.................................................................................................... S-1 RISK FACTORS........................................................................................... 4 TRANSACTION STRUCTURE............................................................... S-15 DESCRIPTION OF THE TRUST FUNDS.............................................. 27 RISK FACTORS......................................................................................... S-16 CASH FLOW AGREEMENTS................................................................. 45 THE MORTGAGE POOL......................................................................... S-39 USE OF PROCEEDS.................................................................................. 45 DESCRIPTION OF THE CERTIFICATES............................................ S-89 YTELD AND PREPAYMENT CONSIDERATIONS.............................. 46 THE INTEREST RATE SWAP AGREEMENT................................... S-123 STATIC POOL INFORMATION............................................................. 49 THE INTEREST RATE CAP AGREEMENT...................................... S-130 DESCRIPTION OF THE SECURITIES.................................................. 49 THE SWAP PROVIDER AND THE INTEREST RATE CAP DESCRIPTION OF THE AGREEMENTS.............................................. 71 PROVIDER....................................................................................... S-135 DESCRIPTION OF CREDIT SUPPORT ................................................ 99 YIELD, PREPAYMENT AND MATURITY DERIVATIVES RELATED TO THE SECURITIES........................... 104 CONSIDERATIONS........................................................................ S-136 CERTAIN LEGAL ASPECTS OF THE LOANS ................................. 105 THE SPONSOR........................................................................................ S-160 FEDERAL INCOME TAX CONSEQUENCES.................................... 123 STATIC POOL INFORMATION.......................................................... S-160 ERISA CONSIDERATIONS................................................................... 156 ISSUING ENTITY.................................................................................... S-161 LEGAL INVESTMENT........................................................................... 165 THE DEPOSITOR.................................................................................... S-161 METHOD OF DISTRIBUTION.............................................................. 166 SERVICING.............................................................................................. S-162 ADDITIONAL INFORMATION............................................................ 167 THE MASTER SERVICER, SECURITIES INCORPORATION OF CERTAIN DOCUMENTS ADMINISTRATOR AND CUSTODIAN...................................... S-176 BY REFERENCE .....................................................................................168 POOLING AND SERVICING AGREEMENT..................................... S-179 LEGAL MATTERS ..................................................................................169 THE CREDIT RISK MANAGER........................................................... S-191 FINANCIAL INFORMATION................................................................ 169 USE OF PROCEEDSS-............................................................................ S-192 RATING..................................................................................................... 169 FEDERAL INCOME TAX CONSEQUENCES.................................... S-192 REPORTS TO SECURITYHOLDERS.................................................. 169 ERISA CONSIDERATIONS................................................................... S-196 INDEX OF DEFINED TERMS............................................................... 171 LEGAL INVESTMENT........................................................................... S-197 METHOD OF DISTRIBUTION............................................................. S-199 LEGAL MATTERS.................................................................................. S-200 RATINGS................................................................................................... S-201 LEGAL PROCEEDINGS........................................................................ S-202 AFFILIATIONS, RELATIONSHIPS AND RELATED TRANSACTIONS............................................................................ S-202 AVAILABLE INFORMATION.............................................................. S-202 REPORTS TO CERTIFICATEHOLDERS.......................................... S-203 INCORPORATION OF INFORMATION BY REFERENCE............ S-203 INDEX OF DEFINED TERMS............................................................... S-204 ANNEX I.........................................................................................................I-1 IV CONFIDENTIAL