EX-10 2 ex10_7.txt EXHIBIT 10.7 Exhibit 10.7 [GRAPHIC OMITTED] To: Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust 9062 Old Annapolis Road Columbia, MD 21046 USA Attn: Chris Regnier Telephone: 410 884 2000 Fax: 410 715 2380 cc: Jonathan Hartwig Telephone: 704 683 4650 Fax: 704 719 5165 From: Bank of America, N.A. 233 South Wacker Drive - Suite 2800 Chicago Illinois 60606 U.S.A. Department: Swaps Operations Telephone: (+1) 312 234 2732 Fax: (+1) 866 255 1444 Date: 26th April 2007 Our Reference No: 5107833 / 5107832 Reference Name: Suzanne Buchta Internal Tracking No: 2533393 / 2533392 Dear Sir/Madam, The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust and Bank of America, N.A. (each a "party" and together "the parties") on the Trade Date specified below (the "Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified below (the "Agreement"). The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., (the "Definitions") are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of 30th April 2007, as amended and supplemented from time to time, between the parties. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. In this Confirmation "Party A" means Bank of America, N.A. and "Party B" means Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust. General Terms: The terms of the particular Transaction to which this Confirmation relates are as follows: Notional Amount: For each Calculation Period, the Notional Amount shall equal the lesser of: (i) the Scheduled Notional Amount for such Calculation Period as detailed in the Schedule of Notional Amounts attached hereto (ii) the Class Certificate Balance of the Class T-A-4 Certificates prior to distributions on the Distribution Date (as defined in the Pooling and Servicing Agreement dated 30th April 2007) related to the Calculation Period. The Supplemental Interest Trust Trustee shall make available each month via its website a statement containing the Class Certificate Balance of the Class T-A-4 Certificates for such Calculation Period. The Supplemental Interest Trust Trustee's internet website shall initially be located at www.ctslink.com and assistance in using the website can be obtained by calling the Supplemental Interest Trust Trustee's investor relations desk at (301) 815-6600. Trade Date: 15th March 2007 Effective Date: 25th August 2009 Termination Date: 25th May 2015 Fixed Amounts: Fixed Rate Payer: Party B Fixed Rate Payer Payment Dates: 30th April 2007 Fixed Amount: USD [_________] Floating Amounts: Floating Rate Payer: Party A Cap Rate I: Please refer to Cap Rate I in the Schedule of Notional Amounts attached hereto Cap Rate II: 10.07000 per cent Floating Rate Payer Payment Dates: Early Payments shall be applicable - 2 Business Day prior to each Floating Rate Payer Period End Date. Floating Rate Payer Period End Dates: The 25th of each Month, commencing on 25th September 2009 and ending on the Termination Date. No Adjustment. Floating Amount: The product of (a) the Notional Amount (b) the Floating Rate Day Count Fraction and (c) the Settlement Spread which shall be calculated in accordance with the following formula: If USD-LIBOR-BBA is greater than the Cap Rate I for the applicable Calculation Period, then Settlement Spread = (USD-LIBOR-BBA - applicable Cap Rate I) provided, however, that if USD-LIBOR-BBA for any Calculation Period is greater than the Cap Rate II then the USD-LIBOR-BBA for such Calculation Period shall be deemed to be the Cap Rate II. If 1 Month USD-LIBOR-BBA is less than or equal to the Cap Rate I for the applicable Calculation Period, then Settlement Spread = Zero. Floating Rate for initial Calculation Period: to be determined Floating Rate Option: USD-LIBOR-BBA Designated Maturity: 1 month Spread: None Floating Rate Day Count Fraction: Act/360 Reset Dates: First day of each Calculation Period. Business Days: New York Calculation Agent: Party A
Recording of Conversations: Each party to this Transaction acknowledges and agrees to the tape recording of conversations between the parties to this Transaction whether by one or other or both of the parties or their agents, and that any such tape recordings may be submitted in evidence in any Proceedings relating to the Agreement and/or this Transaction. Account Details: Party A: Payments to Bank of America, N.A: USD Fedwire Name: Bank of America, N.A. - New York ABA #: 026009593 Attn: BOFAUS3N Name: Bank of America, N.A. City: Charlotte Acct#: 6550219386 Attn: Rate Derivative Settlements Attn: BOFAUS6SGDS Party B: Wells Fargo Bank N.A. San Francisco, CA ABA: 121000248 ACCT: 3970771416 ACCT Name: SAS Clearing FFC: 53146703 Offices: The Office of Party A for this Transaction is: Charlotte - NC, United States Please send reset notices to fax no. (+1) 866 218 8487 The Office of Party B for this Transaction is: Wells Fargo Bank, N.A. 9062 Old Annapolis Rd Columbia, MD 21045 ATTN: Corporate Trust Services BAFC 2007-3 Trust Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by returning via telecopier an executed copy of this Confirmation in its entirety to the attention of Global FX and Derivative Operations (fax no.(+1) 866 255 1444). Accepted and confirmed as of the date first written: Bank of America, N.A. Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust /s/ Jennifer A. Zaugh ------------------------- Name: Jennifer A. Zaugh Title: AVP Authorised Signatory By: Raymond Delli Colli -------------------------- Name: Raymond Delli Colli Title: Vice President Calculation Period Scheduled to Commence on: Notional (USD) Cap Rate I 8/25/2009 1,356,451.00 6.44970 9/25/2009 6,662,317.00 6.44970 10/25/2009 11,762,467.00 6.44980 11/25/2009 16,664,865.00 6.44980 12/25/2009 21,377,167.00 6.44980 1/25/2010 25,906,735.00 6.44990 2/25/2010 30,260,643.00 6.44990 3/25/2010 34,445,693.00 6.44990 4/25/2010 38,468,426.00 6.45000 5/25/2010 38,468,426.00 6.45000 6/25/2010 38,468,426.00 6.45000 7/25/2010 38,468,426.00 6.45010 8/25/2010 40,005,318.00 6.45010 9/25/2010 41,770,433.00 6.45010 10/25/2010 43,442,980.00 6.45020 11/25/2010 45,026,964.00 6.45020 12/25/2010 46,526,228.00 6.45020 1/25/2011 47,944,459.00 6.45030 2/25/2011 49,285,194.00 6.45030 3/25/2011 50,000,000.00 6.45030 4/25/2011 48,793,311.00 6.45040 5/25/2011 46,845,319.00 6.45040 6/25/2011 44,952,545.00 6.45050 7/25/2011 43,113,578.00 6.45050 8/25/2011 41,327,038.00 6.45050 9/25/2011 39,591,582.00 6.45060 10/25/2011 37,905,898.00 6.45060 11/25/2011 36,268,708.00 6.45060 12/25/2011 34,678,765.00 6.45070 1/25/2012 33,134,851.00 6.45070 2/25/2012 31,635,781.00 6.45070 3/25/2012 30,180,316.00 6.45080 4/25/2012 28,767,413.00 6.45080 5/25/2012 27,825,243.00 6.45090 6/25/2012 26,910,519.00 6.45090 7/25/2012 26,022,493.00 6.45090 8/25/2012 25,160,434.00 6.45100 9/25/2012 24,323,631.00 6.45100 10/25/2012 23,511,392.00 6.45100 11/25/2012 22,723,044.00 6.45110 12/25/2012 21,957,930.00 6.45110 1/25/2013 21,215,412.00 6.45120 2/25/2013 20,494,867.00 6.45120 3/25/2013 19,795,690.00 6.45120 4/25/2013 19,117,291.00 6.45130 5/25/2013 18,653,363.00 6.45130 6/25/2013 18,200,623.00 6.45140 7/25/2013 17,758,803.00 6.45140 8/25/2013 17,327,640.00 6.45140 9/25/2013 16,906,878.00 6.45150 10/25/2013 16,496,268.00 6.45150 11/25/2013 16,095,567.00 6.45160 12/25/2013 15,704,535.00 6.45160 1/25/2014 15,322,941.00 6.45160 2/25/2014 14,950,557.00 6.45170 3/25/2014 14,587,164.00 6.45170 4/25/2014 14,232,545.00 6.45180 5/25/2014 14,232,545.00 6.45180 6/25/2014 14,232,545.00 6.45180 7/25/2014 14,232,545.00 6.45190 8/25/2014 14,232,545.00 6.45190 9/25/2014 14,232,545.00 6.45200 10/25/2014 14,232,545.00 6.45200 11/25/2014 14,232,545.00 6.45200 12/25/2014 14,232,545.00 6.45210 1/25/2015 14,232,545.00 6.45210 2/25/2015 14,232,545.00 6.45220 3/25/2015 14,232,545.00 6.45220 4/25/2015 14,232,545.00 6.45220 Our Reference Number: 5107833 / 5107832 Internal Tracking No: 2533393 / 2533392 [GRAPHICS OMITTED] To: Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust 9062 Old Annapolis Road Columbia, MD 21046 USA Attn: Chris Regnier Telephone: 410 884 2000 Fax: 410 715 2380 cc: Jonathan Hartwig Telephone: 704 683 4650 Fax: 704 719 5165 From: Bank of America, N.A. 233 South Wacker Drive - Suite 2800 Chicago Illinois 60606 U.S.A. Department: Swaps Operations Telephone: (+1) 312 234 2732 Fax: (+1) 866 255 1444 Date: 26th April 2007 Our Reference No: 5166798 / 5166797 Reference Name: Suzanne Buchta Internal Tracking No: 2620885 / 2620886 Dear Sir/Madam, The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust and Bank of America, N.A. (each a "party" and together "the parties") on the Trade Date specified below (the "Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified below (the "Agreement"). The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., (the "Definitions") are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of 30th April 2007, as amended and supplemented from time to time, between the parties. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. In this Confirmation "Party A" means Bank of America, N.A. and "Party B" means Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust. General Terms: The terms of the particular Transaction to which this Confirmation relates are as follows: Notional Amount: For each Calculation Period, the Notional Amount shall equal the lesser of: (i) the Scheduled Notional Amount for such Calculation Period as detailed in the Schedule of Notional Amounts attached hereto (ii) the Class Certificate Balance of the Class T-A-4 Certificates prior to distributions on the Distribution Date (as defined in the Pooling and Servicing Agreement dated 30th April 2007) related to the Calculation Period. The Supplemental Interest Trust Trustee shall make available each month via its website a statement containing the Class Certificate Balance of the Class T-A-4 Certificates for such Calculation Period. The Supplemental Interest Trust Trustee's internet website shall initially be located at www.ctslink.com and assistance in using the website can be obtained by calling the Supplemental Interest Trust Trustee's investor relations desk at (301) 815-6600. Trade Date: 17th April 2007 Effective Date: 25th September 2009 Termination Date: 25th May 2015 Fixed Amounts: Fixed Rate Payer: Party B Fixed Rate Payer Payment Dates: 30th April 2007 Fixed Amount: USD [_________] Floating Amounts: Floating Rate Payer: Party A Cap Rate I: Please refer to Cap Rate I in the Schedule of Notional Amounts attached hereto Cap Rate II: 10.07000 per cent Floating Rate Payer Payment Dates: Early Payments shall be applicable 2 Business Day prior to each Floating Rate Payer Period End Date. Floating Rate Payer Period End Dates: The 25th of each Month, commencing on 25th October 2009 and ending on the Termination Date. No Adjustment. Floating Amount: The product of (a) the Notional Amount (b) the Floating Rate Day Count Fraction and (c) the Settlement Spread which shall be calculated in accordance with the following formula: If USD-LIBOR-BBA is greater than the Cap Rate I for the applicable Calculation Period, then Settlement Spread = (USD-LIBOR-BBA applicable Cap Rate I) provided, however, that if USD-LIBOR-BBA for any Calculation Period is greater than the Cap Rate II then the USD-LIBOR-BBA for such Calculation Period shall be deemed to be the Cap Rate II. If 1 Month USD-LIBOR-BBA is less than or equal to the Cap Rate I for the applicable Calculation Period, then Settlement Spread = Zero. Floating Rate for initial Calculation Period: to be determined Floating Rate Option: USD-LIBOR-BBA Designated Maturity: 1 month Spread: None Floating Rate Day Count Fraction: Act/360 Reset Dates: First day of each Calculation Period. Business Days: New York Calculation Agent: Party A
Recording of Conversations: Each party to this Transaction acknowledges and agrees to the tape recording of conversations between the parties to this Transaction whether by one or other or both of the parties or their agents, and that any such tape recordings may be submitted in evidence in any Proceedings relating to the Agreement and/or this Transaction. Account Details: Party A: Payments to Bank of America, N.A: USD Fedwire Name: Bank of America, N.A. New York ABA #: 026009593 Attn: BOFAUS3N Name: Bank of America, N.A. City: Charlotte Acct#: 6550219386 Attn: Rate Derivative Settlements Attn: BOFAUS6SGDS Party B: Wells Fargo Bank N.A. San Francisco, CA ABA: 121000248 ACCT: 3970771416 ACCT Name: SAS Clearing FFC: 53146703 Offices: The Office of Party A for this Transaction is: Charlotte - NC, United States Please send reset notices to fax no. (+1) 866 218 8487 The Office of Party B for this Transaction is: Wells Fargo Bank, N.A. 9062 Old Annapolis Rd Columbia, MD 21045 ATTN: Corporate Trust Services BAFC 2007-3 Trust Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by returning via telecopier an executed copy of this Confirmation in its entirety to the attention of Global FX and Derivative Operations (fax no.(+1) 866 255 1444). Accepted and confirmed as of the date first written: Bank of America, N.A. Wells Fargo Bank, N.A., solely as Supplemental Interest Trust Trustee on behalf of Banc of America Funding 2007-3 Supplemental Interest Trust /s/ Jennifer A. Zaugh ------------------------- Name: Jennifer A. Zaugh Title: AVP Authorised Signatory By: Raymond Delli Colli -------------------------- Name: Raymond Delli Colli Title: Vice President Calculation Period Scheduled to Commence on: Notional (USD) Cap Rate I 9/25/2009 1,587,674.00 6.44970 10/25/2009 4,286,895.00 6.44980 11/25/2009 6,881,511.00 6.44980 12/25/2009 9,375,571.00 6.44980 1/25/2010 11,772,967.00 6.44990 2/25/2010 14,077,440.00 6.44990 3/25/2010 16,292,587.00 6.44990 4/25/2010 18,421,865.00 6.45000 5/25/2010 18,421,865.00 6.45000 6/25/2010 18,421,865.00 6.45000 7/25/2010 18,421,865.00 6.45010 8/25/2010 17,740,776.00 6.45010 9/25/2010 18,580,182.00 6.45010 10/25/2010 19,373,457.00 6.45020 11/25/2010 20,122,623.00 6.45020 12/25/2010 20,829,622.00 6.45020 1/25/2011 21,405,541.00 6.45030 2/25/2011 20,064,806.00 6.45030 3/25/2011 19,350,000.00 6.45030 4/25/2011 20,556,689.00 6.45040 5/25/2011 22,504,681.00 6.45040 6/25/2011 21,778,421.00 6.45050 7/25/2011 20,836,908.00 6.45050 8/25/2011 19,922,546.00 6.45050 9/25/2011 19,034,634.00 6.45060 10/25/2011 18,172,492.00 6.45060 11/25/2011 17,335,455.00 6.45060 12/25/2011 16,522,875.00 6.45070 1/25/2012 15,734,119.00 6.45070 2/25/2012 14,968,406.00 6.45070 3/25/2012 14,225,387.00 6.45080 4/25/2012 13,504,391.00 6.45080 5/25/2012 13,042,156.00 6.45090 6/25/2012 12,593,668.00 6.45090 7/25/2012 12,158,547.00 6.45090 8/25/2012 11,736,424.00 6.45100 9/25/2012 11,326,937.00 6.45100 10/25/2012 10,929,737.00 6.45100 11/25/2012 10,544,483.00 6.45110 12/25/2012 10,170,842.00 6.45110 1/25/2013 9,808,491.00 6.45120 2/25/2013 9,457,115.00 6.45120 3/25/2013 9,116,408.00 6.45120 4/25/2013 8,786,071.00 6.45130 5/25/2013 8,573,228.00 6.45130 6/25/2013 8,365,512.00 6.45140 7/25/2013 8,162,800.00 6.45140 8/25/2013 7,964,973.00 6.45140 9/25/2013 7,771,912.00 6.45150 10/25/2013 7,583,504.00 6.45150 11/25/2013 7,399,637.00 6.45160 12/25/2013 7,220,202.00 6.45160 1/25/2014 7,045,093.00 6.45160 2/25/2014 6,874,205.00 6.45170 3/25/2014 6,707,438.00 6.45170 4/25/2014 6,544,693.00 6.45180 5/25/2014 6,544,693.00 6.45180 6/25/2014 6,544,693.00 6.45180 7/25/2014 6,544,693.00 6.45190 8/25/2014 6,544,693.00 6.45190 9/25/2014 6,544,693.00 6.45200 10/25/2014 6,544,693.00 6.45200 11/25/2014 6,544,693.00 6.45200 12/25/2014 6,544,693.00 6.45210 1/25/2015 6,544,693.00 6.45210 2/25/2015 6,544,693.00 6.45220 3/25/2015 6,544,693.00 6.45220 4/25/2015 6,544,693.00 6.45220 Our Reference Number: 5166798 / 5166797 Internal Tracking No: 2620885 / 2620886