Guaranty Agreement among Advanta Mortgage Holding Company, Advanta Mortgage Loan Trust 2000-2, and Ambac Assurance Corporation (August 22, 2000)

Summary

Advanta Mortgage Holding Company (AMHC) agrees to be jointly and severally liable with Advanta Mortgage Corp. USA, Advanta Conduit Receivables, Inc., and certain originators for financial obligations under the Pooling and Servicing Agreement and the Mortgage Loan Transfer Agreement. This means AMHC guarantees payment of specific financial obligations, such as advances and repurchase amounts, to the Advanta Mortgage Loan Trust 2000-2 and Ambac Assurance Corporation. The agreement ensures that if the other parties fail to pay, AMHC will cover these obligations, providing additional security for the Trust and the insurer.

EX-10.3 9 w39972ex10-3.txt GUARANTY DATED 8/22/00 TO AAC & ADVANTA MORTGAGE 1 EXHIBIT 10.3 2 August 22, 2000 Advanta Mortgage Loan Trust 2000-2 (the "Trust") c/o Bankers Trust Company of California, N.A. 1761 East St. Andrew Place Santa Ana, CA 92705 Ambac Assurance Corporation One State Street Plaza New York, New York 10004 Re: Pooling and Servicing Agreement dated as of August 1, 2000 (the "Pooling and Servicing Agreement") among Advanta Conduit Receivables, Inc., as sponsor (the "Sponsor"), Advanta Mortgage Corp. USA ("AMCUSA"), as master servicer (the "Master Servicer"), and Bankers Trust Company of California, N.A. as trustee (the "Trustee") and the Mortgage Loan Transfer Agreement dated as of August 1, 2000 (the "Transfer Agreement") among the Sponsor, the Trustee and the originators named therein (the "Originators") Ladies and Gentlemen: Pursuant to the Pooling and Servicing Agreement and the Transfer Agreement (together, the "Agreements"), AMCUSA in its capacity as Master Servicer, has undertaken certain financial obligations with respect to its servicing of the Mortgage Loans, including, but not limited to, the making of Delinquency Advances and Servicing Advances. In addition, the Sponsor and the Originators have, in the Agreements undertaken certain financial obligations, including, but not limited to, the payment of the Loan Purchase Price relating to the repurchase of non-qualifying Mortgage Loans, the payment of Substitution Amounts in connection with the substitution of Qualified Replacement Mortgages and the payment of certain expenses of the Trust. Any financial obligations of AMCUSA, the Sponsor or any Originator under either of the Agreements, whether or not specifically enumerated in this paragraph, are hereinafter referred to as the "Joint and Several Obligations"; provided, however, that "Joint and Several Obligations" shall mean only the financial obligations of AMCUSA, the Sponsor or any Originator under either of the Agreements (including the payment of money damages for a breach of any of AMCUSA's, the Sponsor's or any Originator's obligations under either of the Agreements, whether financial or otherwise) but shall not include any obligations not relating to the payment of money (e.g., the obligation to service the Mortgage Loans). 3 The Certificate Insurer has required the undersigned, Advanta Mortgage Holding Company ("AMHC"), the parent corporation of AMCUSA and the indirect corporate parent of the Sponsor, to acknowledge its joint-and-several liability with AMCUSA, the Sponsor and the Originators for the payment of the Joint and Several Obligations under the Agreements. Now, therefore, the Trust, the Certificate Insurer and AMHC do hereby agree that: (i) AMHC hereby agrees to be absolutely and unconditionally jointly and severally liable with AMCUSA, the Sponsor and the Originators to the Trust and the Certificate Insurer for the payment of the Joint and Several Obligations. (ii) AMHC may honor its obligations hereunder either by direct payment of any Joint and Several Obligations or by causing any Joint and Several Obligations to be paid to the Trust and the Certificate Insurer by AMCUSA, the Sponsor, any Originator or another affiliate of AMHC. [Remainder of Page Intentionally Left Blank] 4 Capitalized terms used herein and not defined herein shall have their respective meanings as set forth in the Agreements. Very truly yours, ADVANTA MORTGAGE HOLDING COMPANY By: /S/ Michael Coco ------------------------------ Name: Michael Coco Title: Vice President Acknowledged and Agreed: ADVANTA MORTGAGE LOAN TRUST, 2000-2, by Bankers Trust Company of California, N.A., as Trustee By: /S/ Hermi Alignay --------------------------------- Name: Hermi Alignay Title: Assistant Secretary Acknowledged: AMBAC ASSURANCE CORPORATION By: /S/ Michele Kearns --------------------------------- Name: Michele Kearns Title: First Vice President Dated: August 22, 2000 [Guaranty to the Trust]