Preview
FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018
NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018
FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018
NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018
EXECUTION COPY
SERVICING AGREEMENT
among
NYCTL 2017-A TRUST,
Issuer,
TOWER CAPITAL MANAGEMENT, LLC
Servicer,
and
THE BANK OF NEW YORK MELLON,
Paying Agent and Collateral Agent and Custodian
Dated as of June 1, 2017
OlISUSA:766849957.4
FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018
NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018
TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS..................................................................................................
. 1
.....................................
Section 1.01 Definitions 1
...............................................................................................
Section 1.02 Certain Calculations ..............................................................................
15
Section 1.03 Other Definitional Provisions................................................................
15
ARTICLE II GENERAL OBLIGATIONS OF SERVICER................................................
16
Section 2.01 Duties and Responsibilities As to Servicing .........................................
16
Section 2.02 Asset Administration.............................................................................
20
...........
Section 2.03 Employee Dishonesty Policy and Errors and Omissions Insurance...... 22
Section 2.04 Maintenance and Release of Tax Lien Documentation.........................
23
Section 2.05 Financial Statements and Related 25
Information......................................
Section 2.06 Annual Certification by Officer.............................................................
. .. 25
..........
Section 2.07 Covenant Not to Cause Bankruptcy ......................................................
25
Section 2.08 Performance Criterion; Transfer of Tax Liens ......................................
26
Section 2.09 Permitted Charge-Offs...........................................................................
26
Section 2.10 Permitted Liquidations ..........................................................................
27
Section 2.11 Overpayments........................................................................................
, . 27
........
Section 2.12 Allocation of Payments .........................................................................
28
Section 2.13 Second Sale Tax Liens ..........................................................................
28
ARTICLE III 28
TERM..............................................................................................................
.28
Section 3.01 Term of Servicing Agreement; Early Termination ...............................
28
Section 3.02 Actions of Servicer Upon Early Termination........................................
29
ARTICLE IV REPRESENTATIONS AND WARRANTIES...............................................
29
Section 4.01 Servicer's Representations and Warranties...........................................
29
. .........
Section 4.02 Issuer's Representations and Warranties............................................... .....................
31
Section 4.03 Notice of Incorrect Representations or Warranties 31
...............................
ARTICLE V COMPENSATION, SERVICING FEES AND OTHER CHARGES........................
31
Section 5.01 Servicing Fees 31
.......................................................................................
Section 5.02 No Violation of Laws or 32
Regulations....................................................
Section 5.03 No Other Servicing Fees .......................................................................
32
Section 5.04 Payment of Lien Administration Expenses...........................................
.. 32
„ ..................
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TABLE OF CONTENTS
(continued)
Page
ARTICLE VI [RESERVED] .................................................................................................
32
ARTICLE VII COLLECTION OF PAYMENTS...................................................................
32
Section 7.01 General ..................................................................................................
32
Section 7.02 Deposits .................................................................................................
33
Section 7.03 Forbearance 33
...........................................................................................
Section 7.04 Servicer to Prepare and Deliver Servicer Payment Date Statement
and Lien Status Report ..........................................................................
34
ARTICLE VIII PROTECTION OF SECURITY .....................................................................
36
Section 8.01 Inspection of REO Properties in Certain Circumstances ......................
36
Section 8.02 Properties With Respect to Which Foreclosure Is Permitted and
Has Begun .............................................................................................
36
Section 8.03 Notice of Liens and Other Actions........................................................
37
.......
ARTICLE IX REALIZATION AND FORECLOSURE.......................................................
37
.........,.„.................,......,.................
Section 9.01 Realization Upon Tax Liens..................................................................
37
...............,....................,....................
Section 9.02 Foreclosure Procedural Requirements...................................................
39
Section 9.03 Restrictions on Purchases of REO Property and Tax Liens ..................
39
Section 9.04 Conveyance Documents ........................................................................
40
ARTICLE X REO PROPERTIES ........................................................................................
41
Section 10.01 Title to REO Properties; Management of REO Properties....................
41
Section 10.02 Acquisition of REO Property 42
................................................................
Section 10.03 Taxes, Assessments and Similar Items..................................................
43
Section 10.04 Maintenance of Insurance Policies........................................................
43
Section 10.05 Sale of REO Properties and Tax Liens..................................................
44
ARTICLE XI REDEMPTIONS IN FULL AND SIMILAR LIQUIDATIONS.................... 45
.............,......
Section 11.01 Redemptions in Full ..............................................................................
45
Section 11.02 Liquidation Other Than Redemptions-In-Full.......................................
45
ARTICLE XII ACCOUNTING ..............................................................................................
46
Section 12.01 Liquidations...........................................................................................
46
Section 12.02 REO Property ........................................................................................
46
ARTICLE XIII ACCOUNTING SYSTEM .............................................................................
46
Section 13.01 General ..................................................................................................
46
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TABLE OF CONTENTS
(continued)
Page
Section 13.02 Monthly Accounting Cycle ...................................................................
46
ARTICLE XIV TERMINATION.............................................................................................
. 46
.......................................................
Section 14.01 Termination for Cause...........................................................................
46
......................................................................
Section 14.02 [Reserved.].............................................................................................
48
. ..,..............
Section 14.03 Servicer's Duties Upon Termination.....................................................
48
.............................
Section 14.04 Payment of Servicing Fees Upon Termination .....................................
48
Section 14.05 Successor Servicer.................................................................................
49
Section 14.06 Rating Agency Confirmation ................................................................
49
ARTICLE XV MISCELLANEOUS PROVISIONS...............................................................
49
. .....................
Section 15.01 Assignment and Delegation of Duties by Servicer................................
49
Section 15.02 Independent Contractor.........................................................................
51
............................
Section 15.03 All Funds and Records to be Held for Benefit of The Indenture
Trustee...................................................................................................
51
Section 15.04 Assignment by Issuer to Indenture 51
Trustee...........................................
.................,.............„......,..
Section 15.05 Assignment by The 52
Issuer..................................................................... ...
......................
Section 15.06 Indemnification......................................................................................
52
Section 15.07 Notice of Significant 52
Changes...............................................................
......................................................
Section 15.08 Controlling Law; Choice of Forum .......................................................
53
Section 15.09 Indulgences Not Waivers ......................................................................
53
Section 15.10 54
Notices...................................................................................................
.......................
Section 15.11 Titles Not to Affect Interpretation.........................................................
.. 58
............................
Attorneys'
Section 15.12 Fees......................................................................................
58
Section 15.13 Electronic Reporting..............................................................................
58
..............................................
Section 15.14 Provisions Separable .............................................................................
58
Section 15.15 Entire Servicing Agreement; Amendment............................................
.............,....., 58
...............
Section 15.16 Counterparts ..........................................................................................
59
Section 15.17 No Recourse ..........................................................................................
59
Section 15.18 Limitation on Liability of The Issuer Trustee .......................................
59
Section 15.19 Investigations 60
Clause.............................................................................
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EXHIBIT A TAX LIEN SCHEDULE A-1
EXHIBIT B KEY PERSONNEL B-1
EXHIBIT C SERVICING FEES C-1
EXHlBIT D FORM OF MONTHLY ACCOUNTING REPORT D-1
EXHIBIT E FORM OF REO/FORECLOSURE STATUS REPORT E-1
EXHIBIT F FORM OF REO PROPERTY INSPECTION REPORT F-1
EXHIBIT G [RESERVED] G-1
EXHIBIT H FORM OF LIQUIDATION REPORT H-1
EXHIBIT I FORECLOSURE AND LIQUIDATION GUIDELINES I-1
EXHIBIT 3 FORM OF INDENTURE J-1
EXHIBIT K NON-RESIDENTIAL PROPERTIES K-1
EXHIBIT L FORM OF POWER OF ATTORNEY L-1
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This Servicing Agreement, dated as of June 1, 2017 (this "Servicing Agreement"),
"Issuer"
by and among NYCTL 2017-A TRUST, a Delaware statutory trust (the "Issuer"), TOWER
CAPITAL MANAGEMENT, LLC, a Delaware limited liability company (the "Servicer"), and
THE BANK OF NEW YORK MELLON, a New York banking corporation, as Paying Agent and
Collateral Agent and Custodian, recites and provides as follows:
WHEREAS, pursuant to the Purchase Agreements, the City is selling various Tax Liens to
the Issuer;
WHEREAS, the parties hereto contemplate that the Issuer will pay the purchase price for
the Tax Liens out of the net proceeds of the Bonds proposed to be issued under the Indenture or
by providing other Consideration on the Closing Date;
WHEREAS, concurrently herewith, the Issuer, the Servicer, the Co-Servicer and the Bank
have entered into the Paying Agent and Custody Agreement, to provide for certain arrangements
in respect of the Tax Liens and Collections by the Servicer and the Co-Servicer thereon; and
WHEREAS, the Issuer desires to provide for the servicing of a portion of the Tax Liens by
the Servicer, and the Servicer is willing to provide such services, all upon the terms and subject to
the conditions set forth herein;
NOW, THEREFORE, based upon the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01 Definitions. All of the capitalized terms used herein shall have the
meanings given them in the Indenture or the Paying Agent and Custody Agreement, as applicable,
or as set forth below except where otherwise expressly defined or where the context clearly
indicates another definition is intended, and such meanings are equally applicable to the singular
and the plural forms of such terms, as the context may require.
"Adjusted Net Collections": For any period, Net Collections excluding any Collections
resulting from the repurchase by the City from the Issuer, on or before the second Payment Date
after the applicable Sale Date, of Defective Tax Liens.
"Adjusted Redemptive Value": With respect to any Tax Lien, Eligible Substitute Tax Lien
or Deleted Tax Lien and any date of calculation, (i)the Tax Lien Principal Balance thereof plus
all accrued interest thereon and recoverable Lien Administration Expenses on such date, as of such
date of calculation, exclusive of, in the case of the Bankruptcy Tax Liens where a Property Owner
was in Bankruptcy as of the applicable Sale Date, the 5% surcharge and any interest rate increases
pursuant to Section 11-332 of Chapter 3 of Title 11 of the City Admin. Code, the costs of notice
and advertisement and any other penalty amounts, or (ii) in the case of a Tax Lien that has been
the subject of a judicial modification in a Bankruptcy Proceeding, the amount fixed by the
applicable bankruptcy court.
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"Affidavit": A sworn statement submitted by a Person desiring to be a Responsible
Purchaser pursuant to Section 9.03 hereof declaring that such person meets the criteria contained
in subparagraphs (i) through (vi) of Section 9.03(c) hereof. Such sworn statement shall provide
that the statements contained therein are subject to audit by a City Representative.
"Affiliate": With respect to any specified Person, any other Person controlling or
"Affiliate"
controlled by or under common control with such specified Person. In addition, an
with respect to a Responsible Purchaser shall also include (A) any other Person controlling or
controlled by or under common control with the Responsible Purchaser or any Affiliate; (B) any
other Person who has, directly or indirectly, a five percent (5%) or greater ownership interest in
the Responsible Purchaser; (C) any other Person in which: (i) the Responsible Purchaser, (ii)a
partner who has, directly or indirectly, a five percent (5%) or greater ownership interest in the
Responsible Purchaser, or (iii)a shareholder who has, directly or indirectly a five percent (5%) or
greater ownership interest in,the Responsible Purchaser, has a fivepercent (5%) or greater interest;
or (D) any Person who is a Family Member, a nominee of an Affiliate, or serves in the capacity of
"ownership"
a straw-buyer for an Affiliate. For purposes of this definition, the term includes
"control"
beneficial ownership effected by ownership of intermediate entities and the term means
the power to direct the management and policies of such Person directly or indirectly, whether
"controlling"
through the ownership of voting securities, by contract or otherwise. The terms and
"controlled"
have meanings correlative to the foregoing.
"Applicable Percentage": As to any Tax Lien, 100% if the Lien to-Value Ratio of such
Tax Lien as of the applicable Sale Date is lessthan or equal to 50%, 80% ifthe Lien to Value Ratio
of such Tax Lien as of the applicable Sale Date is greater than 50% and less than or equal to 100%,
and 40% ifthe Lien to-Value Ratio of such Tax Lien as of the applicable Sale Date is greater than
100%.
"Asset Plans": As defined in Section 2.02(a) hereof.
"Bank": The Bank of New York Mellon, not in itsindividual capacity, but solely as Paying
Agent and as Collateral Agent and Custodian under the Paying Agent and Custody Agreement.
"Bankrupt": A Person (i) which has filed a voluntary petition for relief under the
Bankruptcy Code, or (ii) which has had instituted against it an involuntary case under the
Bankruptcy Code (collectively, a "Bankruptcy Proceeding") which shall have resulted in an order
for relief having been issued or which remains undismissed for a period of 30 days and, in either
case, which Person remains subject to such Bankruptcy Proceeding as of the applicable date of
determination.
"Bankruptcy Code": The United States Bankruptcy Code, 11 U.S.C. Section 101 et seq.
"Bankruptcy Tax Liens": As of any given date of determination, Tax Liens with respect
to which the related Property Owners are Bankrupt.
"Bondholder"
or "Holder": A Person whose name appears as the holder of a Bond on the
Bond Register maintained by the Bond Registrar pursuant to the Indenture.
"Bonds": Any bonds issued by the Issuer pursuant to the Indenture.
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"Business Day": A day other than a Saturday, Sunday, or a day on which commercial
banking institutions in the City, the city of Wilmington, Delaware or the city in which the
Corporate Trust Office is located are authorized or obligated by Law to be closed.
"CERCLA": The Comprehensive Environmental Response, Compensation and Liability
Act of 1980, 42 U.S.C. Section 9601 (et seq.).
"C_ity": The City of New York.
"City Admin. Code": The Administrative Code of the City.
"City Representative": An agency, department, individual or individuals designated by the
City of New York to perform the functions of the City or the City's Department of Finance
contained in Section 9.03 hereof.
"Closing Date": The date on which Consideration for the Tax Liens will be provided by
the Issuer to the City or, ifBonds are issued, the date of issuance of the Bonds, which shall be the
same as the date on which such Consideration for the Tax Liens is provided.
"Collateral Agent and Custodian": During the Pre-Closing Period and the Post-Indenture
Period, the Bank, when acting in such capacity under the Paying Agent and Custody Agreement,
and at all other times the Indenture Trustee, when acting in such capacity under the Indenture.
"Collateral Agent and Custodian's Tax Lien File": All documents, instruments and other
papers deposited with and held by the Collateral Agent and Custodian as to any Tax Lien pursuant
to the terms of the Indenture or the Paying Agent and Custody Agreement, as applicable.
"Collection Period": With respect to any Payment Date, the period beginning with the
Determination Date immediately preceding the Determination Date to which such Payment Date
relates and ending on the day preceding the Determination Date to which such Payment Date
relates, except that (i)the firstCollection Period with respect to the First Sale Tax Liens shall begin
on the applicable First Sale Date and (ii)the firstCollection Period with respect to the Second Sale
Tax Liens shall begin on the applicable Second Sale Date and in each case shall end on the day
preceding the Determination Date related to the first Payment Date.
"Collections": For a Collection Period and a Tax Lien, the amount actually collected
during such Collection Period with respect to such Tax Lien or related REO Property, whether as
a redemption by the Property Owner, proceeds of foreclosure, deposit into the Bond Account or
the Collection Account, as applicable, of the Defective Tax Lien Deposit Amount or the
Substitution Amount, proceeds of the sale of the Tax Lien, Gross REO Proceeds or otherwise.
"Consideration": Cash or cash equivalent in immediately available funds, or other
of'
consideration acceptable to the Commissioner of Finance of the City of New York, or any
combination thereof, in payment for the Tax Liens.
"Conveyance": A transfer of fee title, or the creation of a leasehold estate in real property,
or the creation of any right to the use or occupancy of real property, or right to the collection or
enjoyment of rents or issues in real property, or the assignment of any such right or interest.
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"Co-Servicer": MTAG Services, LLC, or itspermitted successors or assigns as servicer
under the Co-Servicer Agreement.
"Co-Servicer Agreement": The servicing agreement, dated as of June 1, 2017, amon
Preview
FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 EXECUTION COPY SERVICING AGREEMENT among NYCTL 2017-A TRUST, Issuer, TOWER CAPITAL MANAGEMENT, LLC Servicer, and THE BANK OF NEW YORK MELLON, Paying Agent and Collateral Agent and Custodian Dated as of June 1, 2017 OlISUSA:766849957.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS.................................................................................................. . 1 ..................................... Section 1.01 Definitions 1 ............................................................................................... Section 1.02 Certain Calculations .............................................................................. 15 Section 1.03 Other Definitional Provisions................................................................ 15 ARTICLE II GENERAL OBLIGATIONS OF SERVICER................................................ 16 Section 2.01 Duties and Responsibilities As to Servicing ......................................... 16 Section 2.02 Asset Administration............................................................................. 20 ........... Section 2.03 Employee Dishonesty Policy and Errors and Omissions Insurance...... 22 Section 2.04 Maintenance and Release of Tax Lien Documentation......................... 23 Section 2.05 Financial Statements and Related 25 Information...................................... Section 2.06 Annual Certification by Officer............................................................. . .. 25 .......... Section 2.07 Covenant Not to Cause Bankruptcy ...................................................... 25 Section 2.08 Performance Criterion; Transfer of Tax Liens ...................................... 26 Section 2.09 Permitted Charge-Offs........................................................................... 26 Section 2.10 Permitted Liquidations .......................................................................... 27 Section 2.11 Overpayments........................................................................................ , . 27 ........ Section 2.12 Allocation of Payments ......................................................................... 28 Section 2.13 Second Sale Tax Liens .......................................................................... 28 ARTICLE III 28 TERM.............................................................................................................. .28 Section 3.01 Term of Servicing Agreement; Early Termination ............................... 28 Section 3.02 Actions of Servicer Upon Early Termination........................................ 29 ARTICLE IV REPRESENTATIONS AND WARRANTIES............................................... 29 Section 4.01 Servicer's Representations and Warranties........................................... 29 . ......... Section 4.02 Issuer's Representations and Warranties............................................... ..................... 31 Section 4.03 Notice of Incorrect Representations or Warranties 31 ............................... ARTICLE V COMPENSATION, SERVICING FEES AND OTHER CHARGES........................ 31 Section 5.01 Servicing Fees 31 ....................................................................................... Section 5.02 No Violation of Laws or 32 Regulations.................................................... Section 5.03 No Other Servicing Fees ....................................................................... 32 Section 5.04 Payment of Lien Administration Expenses........................................... .. 32 „ .................. OIRSUSA:766849~)57.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 TABLE OF CONTENTS (continued) Page ARTICLE VI [RESERVED] ................................................................................................. 32 ARTICLE VII COLLECTION OF PAYMENTS................................................................... 32 Section 7.01 General .................................................................................................. 32 Section 7.02 Deposits ................................................................................................. 33 Section 7.03 Forbearance 33 ........................................................................................... Section 7.04 Servicer to Prepare and Deliver Servicer Payment Date Statement and Lien Status Report .......................................................................... 34 ARTICLE VIII PROTECTION OF SECURITY ..................................................................... 36 Section 8.01 Inspection of REO Properties in Certain Circumstances ...................... 36 Section 8.02 Properties With Respect to Which Foreclosure Is Permitted and Has Begun ............................................................................................. 36 Section 8.03 Notice of Liens and Other Actions........................................................ 37 ....... ARTICLE IX REALIZATION AND FORECLOSURE....................................................... 37 .........,.„.................,......,................. Section 9.01 Realization Upon Tax Liens.................................................................. 37 ...............,....................,.................... Section 9.02 Foreclosure Procedural Requirements................................................... 39 Section 9.03 Restrictions on Purchases of REO Property and Tax Liens .................. 39 Section 9.04 Conveyance Documents ........................................................................ 40 ARTICLE X REO PROPERTIES ........................................................................................ 41 Section 10.01 Title to REO Properties; Management of REO Properties.................... 41 Section 10.02 Acquisition of REO Property 42 ................................................................ Section 10.03 Taxes, Assessments and Similar Items.................................................. 43 Section 10.04 Maintenance of Insurance Policies........................................................ 43 Section 10.05 Sale of REO Properties and Tax Liens.................................................. 44 ARTICLE XI REDEMPTIONS IN FULL AND SIMILAR LIQUIDATIONS.................... 45 .............,...... Section 11.01 Redemptions in Full .............................................................................. 45 Section 11.02 Liquidation Other Than Redemptions-In-Full....................................... 45 ARTICLE XII ACCOUNTING .............................................................................................. 46 Section 12.01 Liquidations........................................................................................... 46 Section 12.02 REO Property ........................................................................................ 46 ARTICLE XIII ACCOUNTING SYSTEM ............................................................................. 46 Section 13.01 General .................................................................................................. 46 -ii- ol lsusA:766849957.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 TABLE OF CONTENTS (continued) Page Section 13.02 Monthly Accounting Cycle ................................................................... 46 ARTICLE XIV TERMINATION............................................................................................. . 46 ....................................................... Section 14.01 Termination for Cause........................................................................... 46 ...................................................................... Section 14.02 [Reserved.]............................................................................................. 48 . ..,.............. Section 14.03 Servicer's Duties Upon Termination..................................................... 48 ............................. Section 14.04 Payment of Servicing Fees Upon Termination ..................................... 48 Section 14.05 Successor Servicer................................................................................. 49 Section 14.06 Rating Agency Confirmation ................................................................ 49 ARTICLE XV MISCELLANEOUS PROVISIONS............................................................... 49 . ..................... Section 15.01 Assignment and Delegation of Duties by Servicer................................ 49 Section 15.02 Independent Contractor......................................................................... 51 ............................ Section 15.03 All Funds and Records to be Held for Benefit of The Indenture Trustee................................................................................................... 51 Section 15.04 Assignment by Issuer to Indenture 51 Trustee........................................... .................,.............„......,.. Section 15.05 Assignment by The 52 Issuer..................................................................... ... ...................... Section 15.06 Indemnification...................................................................................... 52 Section 15.07 Notice of Significant 52 Changes............................................................... ...................................................... Section 15.08 Controlling Law; Choice of Forum ....................................................... 53 Section 15.09 Indulgences Not Waivers ...................................................................... 53 Section 15.10 54 Notices................................................................................................... ....................... Section 15.11 Titles Not to Affect Interpretation......................................................... .. 58 ............................ Attorneys' Section 15.12 Fees...................................................................................... 58 Section 15.13 Electronic Reporting.............................................................................. 58 .............................................. Section 15.14 Provisions Separable ............................................................................. 58 Section 15.15 Entire Servicing Agreement; Amendment............................................ .............,....., 58 ............... Section 15.16 Counterparts .......................................................................................... 59 Section 15.17 No Recourse .......................................................................................... 59 Section 15.18 Limitation on Liability of The Issuer Trustee ....................................... 59 Section 15.19 Investigations 60 Clause............................................................................. -iii- -n I- ollSUSA:7668499S7.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 EXHIBIT A TAX LIEN SCHEDULE A-1 EXHIBIT B KEY PERSONNEL B-1 EXHIBIT C SERVICING FEES C-1 EXHlBIT D FORM OF MONTHLY ACCOUNTING REPORT D-1 EXHIBIT E FORM OF REO/FORECLOSURE STATUS REPORT E-1 EXHIBIT F FORM OF REO PROPERTY INSPECTION REPORT F-1 EXHIBIT G [RESERVED] G-1 EXHIBIT H FORM OF LIQUIDATION REPORT H-1 EXHIBIT I FORECLOSURE AND LIQUIDATION GUIDELINES I-1 EXHIBIT 3 FORM OF INDENTURE J-1 EXHIBIT K NON-RESIDENTIAL PROPERTIES K-1 EXHIBIT L FORM OF POWER OF ATTORNEY L-1 -iv- OI ISUSA'766849957.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 This Servicing Agreement, dated as of June 1, 2017 (this "Servicing Agreement"), "Issuer" by and among NYCTL 2017-A TRUST, a Delaware statutory trust (the "Issuer"), TOWER CAPITAL MANAGEMENT, LLC, a Delaware limited liability company (the "Servicer"), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Paying Agent and Collateral Agent and Custodian, recites and provides as follows: WHEREAS, pursuant to the Purchase Agreements, the City is selling various Tax Liens to the Issuer; WHEREAS, the parties hereto contemplate that the Issuer will pay the purchase price for the Tax Liens out of the net proceeds of the Bonds proposed to be issued under the Indenture or by providing other Consideration on the Closing Date; WHEREAS, concurrently herewith, the Issuer, the Servicer, the Co-Servicer and the Bank have entered into the Paying Agent and Custody Agreement, to provide for certain arrangements in respect of the Tax Liens and Collections by the Servicer and the Co-Servicer thereon; and WHEREAS, the Issuer desires to provide for the servicing of a portion of the Tax Liens by the Servicer, and the Servicer is willing to provide such services, all upon the terms and subject to the conditions set forth herein; NOW, THEREFORE, based upon the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: ARTICLE I DEFINITIONS Section 1.01 Definitions. All of the capitalized terms used herein shall have the meanings given them in the Indenture or the Paying Agent and Custody Agreement, as applicable, or as set forth below except where otherwise expressly defined or where the context clearly indicates another definition is intended, and such meanings are equally applicable to the singular and the plural forms of such terms, as the context may require. "Adjusted Net Collections": For any period, Net Collections excluding any Collections resulting from the repurchase by the City from the Issuer, on or before the second Payment Date after the applicable Sale Date, of Defective Tax Liens. "Adjusted Redemptive Value": With respect to any Tax Lien, Eligible Substitute Tax Lien or Deleted Tax Lien and any date of calculation, (i)the Tax Lien Principal Balance thereof plus all accrued interest thereon and recoverable Lien Administration Expenses on such date, as of such date of calculation, exclusive of, in the case of the Bankruptcy Tax Liens where a Property Owner was in Bankruptcy as of the applicable Sale Date, the 5% surcharge and any interest rate increases pursuant to Section 11-332 of Chapter 3 of Title 11 of the City Admin. Code, the costs of notice and advertisement and any other penalty amounts, or (ii) in the case of a Tax Lien that has been the subject of a judicial modification in a Bankruptcy Proceeding, the amount fixed by the applicable bankruptcy court. FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 "Affidavit": A sworn statement submitted by a Person desiring to be a Responsible Purchaser pursuant to Section 9.03 hereof declaring that such person meets the criteria contained in subparagraphs (i) through (vi) of Section 9.03(c) hereof. Such sworn statement shall provide that the statements contained therein are subject to audit by a City Representative. "Affiliate": With respect to any specified Person, any other Person controlling or "Affiliate" controlled by or under common control with such specified Person. In addition, an with respect to a Responsible Purchaser shall also include (A) any other Person controlling or controlled by or under common control with the Responsible Purchaser or any Affiliate; (B) any other Person who has, directly or indirectly, a five percent (5%) or greater ownership interest in the Responsible Purchaser; (C) any other Person in which: (i) the Responsible Purchaser, (ii)a partner who has, directly or indirectly, a five percent (5%) or greater ownership interest in the Responsible Purchaser, or (iii)a shareholder who has, directly or indirectly a five percent (5%) or greater ownership interest in,the Responsible Purchaser, has a fivepercent (5%) or greater interest; or (D) any Person who is a Family Member, a nominee of an Affiliate, or serves in the capacity of "ownership" a straw-buyer for an Affiliate. For purposes of this definition, the term includes "control" beneficial ownership effected by ownership of intermediate entities and the term means the power to direct the management and policies of such Person directly or indirectly, whether "controlling" through the ownership of voting securities, by contract or otherwise. The terms and "controlled" have meanings correlative to the foregoing. "Applicable Percentage": As to any Tax Lien, 100% if the Lien to-Value Ratio of such Tax Lien as of the applicable Sale Date is lessthan or equal to 50%, 80% ifthe Lien to Value Ratio of such Tax Lien as of the applicable Sale Date is greater than 50% and less than or equal to 100%, and 40% ifthe Lien to-Value Ratio of such Tax Lien as of the applicable Sale Date is greater than 100%. "Asset Plans": As defined in Section 2.02(a) hereof. "Bank": The Bank of New York Mellon, not in itsindividual capacity, but solely as Paying Agent and as Collateral Agent and Custodian under the Paying Agent and Custody Agreement. "Bankrupt": A Person (i) which has filed a voluntary petition for relief under the Bankruptcy Code, or (ii) which has had instituted against it an involuntary case under the Bankruptcy Code (collectively, a "Bankruptcy Proceeding") which shall have resulted in an order for relief having been issued or which remains undismissed for a period of 30 days and, in either case, which Person remains subject to such Bankruptcy Proceeding as of the applicable date of determination. "Bankruptcy Code": The United States Bankruptcy Code, 11 U.S.C. Section 101 et seq. "Bankruptcy Tax Liens": As of any given date of determination, Tax Liens with respect to which the related Property Owners are Bankrupt. "Bondholder" or "Holder": A Person whose name appears as the holder of a Bond on the Bond Register maintained by the Bond Registrar pursuant to the Indenture. "Bonds": Any bonds issued by the Issuer pursuant to the Indenture. -2- oil susA.766849967.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 "Business Day": A day other than a Saturday, Sunday, or a day on which commercial banking institutions in the City, the city of Wilmington, Delaware or the city in which the Corporate Trust Office is located are authorized or obligated by Law to be closed. "CERCLA": The Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601 (et seq.). "C_ity": The City of New York. "City Admin. Code": The Administrative Code of the City. "City Representative": An agency, department, individual or individuals designated by the City of New York to perform the functions of the City or the City's Department of Finance contained in Section 9.03 hereof. "Closing Date": The date on which Consideration for the Tax Liens will be provided by the Issuer to the City or, ifBonds are issued, the date of issuance of the Bonds, which shall be the same as the date on which such Consideration for the Tax Liens is provided. "Collateral Agent and Custodian": During the Pre-Closing Period and the Post-Indenture Period, the Bank, when acting in such capacity under the Paying Agent and Custody Agreement, and at all other times the Indenture Trustee, when acting in such capacity under the Indenture. "Collateral Agent and Custodian's Tax Lien File": All documents, instruments and other papers deposited with and held by the Collateral Agent and Custodian as to any Tax Lien pursuant to the terms of the Indenture or the Paying Agent and Custody Agreement, as applicable. "Collection Period": With respect to any Payment Date, the period beginning with the Determination Date immediately preceding the Determination Date to which such Payment Date relates and ending on the day preceding the Determination Date to which such Payment Date relates, except that (i)the firstCollection Period with respect to the First Sale Tax Liens shall begin on the applicable First Sale Date and (ii)the firstCollection Period with respect to the Second Sale Tax Liens shall begin on the applicable Second Sale Date and in each case shall end on the day preceding the Determination Date related to the first Payment Date. "Collections": For a Collection Period and a Tax Lien, the amount actually collected during such Collection Period with respect to such Tax Lien or related REO Property, whether as a redemption by the Property Owner, proceeds of foreclosure, deposit into the Bond Account or the Collection Account, as applicable, of the Defective Tax Lien Deposit Amount or the Substitution Amount, proceeds of the sale of the Tax Lien, Gross REO Proceeds or otherwise. "Consideration": Cash or cash equivalent in immediately available funds, or other of' consideration acceptable to the Commissioner of Finance of the City of New York, or any combination thereof, in payment for the Tax Liens. "Conveyance": A transfer of fee title, or the creation of a leasehold estate in real property, or the creation of any right to the use or occupancy of real property, or right to the collection or enjoyment of rents or issues in real property, or the assignment of any such right or interest. -3- Ol-1SUSA:766849957.4 FILED: QUEENS COUNTY CLERK 05/08/2018 09:48 PM INDEX NO. 703731/2018 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 05/08/2018 "Co-Servicer": MTAG Services, LLC, or itspermitted successors or assigns as servicer under the Co-Servicer Agreement. "Co-Servicer Agreement": The servicing agreement, dated as of June 1, 2017, amon