The united states and you will Morgan Stanley are collectively known as “the fresh Functions

It Settlement Arrangement (“Agreement”) is actually joined on the between the You, acting from United states Agency of Fairness (“Service out-of Fairness”), and you will Morgan Stanley. “

A beneficial. The latest Service out of Justice held assessment of one’s packaging, business, profit, structuring, arrangement, and issuance regarding specific home-based financial-backed securities (“RMBS”) by the Morgan Stanley ranging from 2005 and you may 2007. Centered on men and women testing, the us believes that there is an enthusiastic evidentiary base to give up prospective court states of the United states facing Morgan Stanley getting abuses out-of federal guidelines to the brand new packing, purchases, marketing, structuring, plan, and issuance of those RMBS.

B. Morgan Stanley understands the details set-out on Statement out-of facts set forth within the Annex step one, attached and hereby provided.

C. The state of Ny try stepping into a contract which have Morgan Stanley to answer similar states the state provides against Morgan Stanley getting pass out-of state regulations concerning these RMBS.

Good. In this ten (15) business days out-of choosing created payment operating information throughout the Department off Justice, Morgan Stanley shall pay the Settlement Amount by the electronic fund transfer to your Agency of Fairness.

Covered Carry out

B. Brand new totality of one’s Payment Amount was a civil economic punishment retrieved pursuant with the financial institutions Change, Healing, and you will Administration Operate (“FIRREA”), a dozen You.S.C. 1833a.

Morgan Stanley will shell out an entire number of two billion, six-hundred million cash ($2,600,000,000) to answer pending and potential judge claims just like the set forth here about the new development, pooling, structuring, arranging, development, packaging, sales, underwriting, product sales, otherwise issuance out-of 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 have a glance at this web-site, 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.