The usa and you can Morgan Stanley was together named “new Activities

This Settlement Arrangement (“Agreement”) are entered toward within United states, pretending from the United states Agency out of Fairness (“Institution away from Justice”), and you will Morgan Stanley. “

A. Brand new Department of Fairness presented assessment of packaging, product sales, profit, structuring, arrangement, and you may issuance out-of particular home-based financial-supported securities (“RMBS”) of the Morgan Stanley ranging from 2005 and 2007. Centered on the individuals analysis, the usa believes that there is an enthusiastic evidentiary base so you’re able to lose prospective legal says by United states up against Morgan Stanley to possess violations away from federal laws to the the fresh new packaging, income, product sales, structuring, plan, and issuance of those RMBS.

B. Morgan Stanley acknowledges the important points put down on Declaration away from activities established when you look at the Annex step one, connected and you will hereby integrated.

C. The state of New york are stepping into an agreement with Morgan Stanley to answer equivalent claims the state enjoys facing Morgan Stanley having ticket from state legislation in connection with these RMBS.

Good. Contained in this fifteen (15) business days away from getting composed fee running advice regarding the Company out-of Fairness, Morgan Stanley shall afford the Settlement Count of the electronic finance transfer on the Service of Fairness.

Secure Run

B. The fresh totality of one’s Payment Count is a municipal monetary punishment recovered pursuant into the financial institutions Change, Recuperation, and you may Administration Work (“FIRREA”), twelve You.S.C. 1833a.

Morgan Stanley should spend a whole quantity of two billion, six-hundred or so million cash ($2,600,000,000) to answer pending and possible court claims because the established herein concerning the newest development, pooling, structuring, arranging, formation, packaging, income, underwriting, marketing, or issuance off RMBS by Morgan Stanley (“‘Settlement Count”)

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., 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.