(a) Master Refinance and Servicing Agreement:
The bank executes a Master Refinance and Servicing Agreement with TMRC before it may avail refinance loans from TMRC. The Master Refinance and Servicing Agreement sets out the general terms and conditions governing the pledge of mortgage loans to TMRC and incorporates a declaration by the bank that it holds the mortgage loans pledged to TMRC, the mortgage instruments and all monies received but not paid to TMRC in trust for TMRC. The charges over the property used to secure the mortgage loans continue to be registered in the name of the bank.

(b) Refinance Contract:
Members requesting funding will be able to do so by providing written instructions to TMRC.

TMRC provides members with confirmations of advances, reflecting the terms of the associated advance and commitments. All information provided to TMRC may be reviewed by TMRC when considering each request for an advance. Members should be aware of the representations and warranties in their borrowing agreements regarding the accuracy of information submitted to TMRC, and the possible contractual consequences of the breach of such representations and warranties.

TMRC’s obligation to release funds on advance commitments is subject to the continued eligibility of the member for advances as determined by TMRC under applicable law. Advance proceeds will be credited to the member’s requested bank account. For each refinance of a group of loans by TMRC, the bank executes a Refinance Contract by which the bank pledges the mortgage loans to TMRC. By virtue of such agreement the bank conveys, assigns and transfers the mortgage loans to TMRC.

(c) Refinance Value:
TMRC refinances the mortgage loans at book balance of the mortgage loan after deduction of (a) 25% and (b) any unearned interest (if any).

(d) TMRC Rate:
Products and services are priced in accordance with applicable regulations, taking into account the cost of raising funds in the capital markets. TMRC prices advances at or above the marginal cost of raising matching maturity funds in the marketplace, including the administrative and operating costs associated with making advances. TMRC prices its credit products consistently to all members applying for advances. However, TMRC may price advances on a differential basis,based on tenor, volume, or other reasonable criteria applied consistently to all members.

(e) Review Date:
The review date represents the last date of the refinance period. On this date the bank has the option to roll-over the loans at the then prevailing TMRC rate or to settle the loans.

(f) Right of First Refusal:
As the owner of the mortgage loans TMRC has the right to sell at any time these loans either to the bank for which it had refinanced these loans or to a third party. Provided that prior to any sale to a third party, TMRC will first offer the mortgage loans for sale to the bank for which it had refinanced the loans.

(g) Compulsory Replacement:
Upon the loan becoming defective and/or in default the bank is required to replace the defective loan with qualified collateral.

(h) Payment of TMRC Installment:
For mortgage loans refinanced by TMRC, the bank is required to collect the monthly mortgage installments from the borrowers and remit to TMRC, TMRC’s installment based on the contracted TMRC rate. Irrespective of whether the borrower pays the monthly mortgage installments, the bank is required to remit to TMRC the required payment based on the schedule of payments agreed between TMRC and the bank at the point of refinancing the loans. Payments to TMRC can be on a monthly/quarterly or semi-annual basis (depending on negotiations of banks with TMRC).

(i) Accounting Records:
The bank shall establish and maintain accounting records in accordance with any applicable instructions issued by TMRC and BoT.

(j) Reports:
The bank shall prepare and submit to TMRC defective loans and partial prepayments reports on monthly/quarterly basis.

(k) Audit:
TMRC shall have the right to examine or request the bank to appoint authorized agents to examine and audit all records pertaining to the mortgage loans refinanced by TMRC.

(l) Prepayment of Advances:
Prepayments will be subject to a prepayment fee negotiated in advance. In the event that, for any reason, such a loan becomes due and payable prior to its originally scheduled maturity date, TMRC will charge a prepayment fee sufficient to render TMRC indifferent to such prepayment. Prepayment fees are due and payable on the date the advance is prepaid.