EX-99.7 12 v090060_ex99-7.htm
HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018
Fax: (212) 525-5517

 
DATE:
September 28, 2007
   
TO:
Lehman XS Trust Mortgage Pass-Through Certificates,
 
Series 2007-18N
 
c/o U.S. Bank National Association
 
One Federal Street, 3rd Floor
 
Boston, MA 02110
 
("Party B")
   
FROM:
HSBC BANK USA, NATIONAL ASSOCIATION
 
452 Fifth Avenue
 
New York, NY 10018
 
 ("Party A")
   
   
RE:
Interest Rate Cap Transaction


Dear Sir or Madam:

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between us on the Trade Date specified below (the “Transaction”).
 
The definitions and provisions contained in the 2000 ISDA Definitions as published by the International Swaps and Derivatives Association, Inc. are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.
 
This Confirmation constitutes a “Confirmation” as referred to in, and supplements, forms part of and is subject to, the ISDA Master Agreement dated as of September 28, 2007, as amended and supplemented from time to time (the “Agreement”) between Party A and Party B. All provisions contained in the Agreement govern this Confirmation except as expressly modified below.
 
1.
The Cap Transaction to which this Confirmation relates is a Rate Swap Transaction, the terms of which are as follow:

 


HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018
Fax: (212) 525-5517
 
 
General Terms
 
     
 
Trade Date:
September 25, 2007
     
 
Effective Date:
September 25, 2010
     
 
Termination Date:
September 25, 2012, subject to adjustment in accordance with the Following Business Day Convention
     
 
Notional Amount:
See Amortization Schedule, Schedule A
     
 
Fixed Amounts:
 
     
 
Fixed Rate Payer:
Party B
     
 
Fixed Rate Payer Payment Dates:
Early Payment, one (1) Business Day preceding each Fixed Rate Payer Period End Date.
     
 
Fixed Amount
USD 127,000; Lehman Brothers Holdings Inc. (on behalf of Party B) shall pay to Party A the Fixed Amount on or prior to September 28, 2007. This Upfront Payment is included in the net amount of USD 16,000 payable to Party A by Lehman Brothers Holdings Inc. (on behalf of Party B).
     
 
Floating Amounts:
 
     
 
Floating Rate Payer:
Party A
     
 
Floating Rate Payer Period End Dates:
The 25th day of each month of each year, commencing on August 25, 2010 to and including the Termination Date, subject to adjustment in accordance with the Following Business Day Convention.
     
 
Floating Rate Payer Payment Dates:
Early Payment, one (1) Business Day preceding each Floating Rate Payer Period End Date.
     
 
Cap Rate:
With respect to each Calculation Period, as set out in Schedule A attached hereto.
     
 
Floating Rate Option:
USD-LIBOR-BBA
     
 
Designated Maturity:
One month
     
 
Spread:
None
 
2


HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018
Fax: (212) 525-5517
 
 
Floating Rate Day Count Fraction:
Actual/360
     
 
Reset Dates:
The first day of each Calculation Period.
     
 
Compounding:
Inapplicable
     
 
Business Day:
Any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in (1) the city in which the Corporate Trust Office of Party B is located or (2) the States of New York, Maryland, Minnesota, Colorado or Illinois are closed.
     
     
2.
Procedural Terms:
 
     
 
Calculation Agent:
Party A
     
 
Offices:
The Office of Party A for the Swap Transaction is New York
     
 
Account Details:
 
     
 
Payments to Party A:
HSBC Bank USA, National Association
ABA # 021-001-088
For credit to Department 299
A/C: 000-04929-8
HSBC Derivative Products Group
     
 
Payments to Party B:
U.S. Bank Corporate Trust Services
ABA# 091-000-022
DDA# 173-103-321-118
Ref: LXS 2007-18N // Interest Rate Cap Account
Attn: J. Byrnes

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HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018
Fax: (212) 525-5517
 

Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by executing this Confirmation and returning to us by fax/telex to 212 525 5517 to the attention of Christian McGreevy:
 
Fax Number : 212 525 5517
Telephone Number : 212 525 8710


 
HSBC BANK USA, NATIONAL ASSOCIATION
 
By: ________________________________________      
Authorized Signatory
 

 
HSBC BANK USA, NATIONAL ASSOCIATION
 
By: ________________________________________      
Authorized Signatory
 

 
Accepted and confirmed as of the Trade Date written above:
 
U.S. BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE ON BEHALF OF THE TRUST, LEHMAN XS TRUST MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-18N

By:________________________________
Name:
Title:
 

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HSBC Bank USA, National Association
452 Fifth Avenue
New York, NY 10018
Fax: (212) 525-5517
 

SCHEDULE A to the Confirmation dated as of September 28, 2007,
Re: Reference Number 487221hn
Amortization Schedule, subject to adjustment in accordance with the Following Business Day Convention
From and Including
To but Excluding
Notional Amount (USD)
Fixed Rate (%)
9/25/2010
10/25/2010
12,666,086.00
6.75
10/25/2010
11/25/2010
12,295,153.00
6.75
11/25/2010
12/25/2010
11,935,083.00
6.75
12/25/2010
1/25/2011
11,585,558.00
6.75
1/25/2011
2/25/2011
11,246,269.00
6.75
2/25/2011
3/25/2011
10,916,916.00
6.75
3/25/2011
4/25/2011
10,597,208.00
6.75
4/25/2011
5/25/2011
10,286,863.00
6.75
5/25/2011
6/25/2011
9,985,607.00
6.75
6/25/2011
7/25/2011
9,693,173.00
6.75
7/25/2011
8/25/2011
9,409,304.00
6.75
8/25/2011
9/25/2011
9,133,747.00
6.75
9/25/2011
10/25/2011
8,866,260.00
6.75
10/25/2011
11/25/2011
8,606,607.00
6.75
11/25/2011
12/25/2011
8,354,558.00
6.75
12/25/2011
1/25/2012
8,109,891.00
6.75
1/25/2012
2/25/2012
82,647,098.00
6.75
2/25/2012
3/25/2012
80,226,734.00
6.75
3/25/2012
4/25/2012
77,877,251.00
6.75
4/25/2012
5/25/2012
75,596,575.00
6.75
5/25/2012
6/25/2012
73,382,689.00
6.75
6/25/2012
7/25/2012
71,233,638.00
6.75
7/25/2012
8/25/2012
69,147,523.00
6.75
8/25/2012
9/25/2012
67,122,501.00
6.75

 

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