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CUSTODIAL AGREEMENT
 
 
Among:
 
 
DB STRUCTURED PRODUCTS, INC., as Buyer
 
ASPEN FUNDING CORP., as Buyer
 
NEWPORT FUNDING CORP., as Buyer
 
NYMC LOAN CORPORATION, as Seller
 
NEW YORK MORTGAGE TRUST, INC., as Guarantor
 
 
and
 
 
LASALLE BANK NATIONAL ASSOCIATION, as Custodian,
 
Dated as of December 13, 2005
 

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TABLE OF CONTENTS
 

Section 1
Definitions
 1
Section 2
Delivery of Mortgage File
 6
Section 3
Trust Receipt and Loan Schedule and Exception Report
 8
Section 4
Obligations of the Custodian
 9
Section 5
Release of Purchased Loans
 10
Section 6
Fees and Expenses of Custodian
 12
Section 7
Removal or Resignation of Custodian
 13
Section 8
Examination of Mortgage Files
 13
Section 9
Insurance of Custodian
 13
Section 10
Representations and Warranties
 14
Section 11
Statements
 14
Section 12
No Adverse Interest of Custodian
 15
Section 13
Indemnification of Custodian
 15
Section 14
Concerning the Custodian
 16
Section 15
Term of Custodial Agreement
 16
Section 16
Notices
 17
Section 17
GOVERNING LAW
 17
Section 18
Authorized Representatives
 17
Section 19
Amendment
 17
Section 20
Cumulative Rights
 17
Section 21
Binding Upon Successors
 17
Section 22
Entire Agreement; Severability
 18
Section 23
Execution In Counterparts
 18
Section 24
Tax Reports
 18
Section 25
Assignment
 18
Section 26
Transmission of Mortgage Files
 19
Section 27
Submission To Jurisdiction; Waivers
 19
Section 28
Confidentiality
 20

 
ANNEXES

Annex 1
Required Fields for Loan Schedule

Annex 1-A
Required Fields for Loan Schedule with respect to Wet-Ink Mortgage Loans

Annex 2
Form of Trust Receipt

Annex 3
Form of Notice of Sale and Request for Release

Annex 4
Review Procedures

Annex 5
Request For Release and Receipt

Annex 6
Authorized Representatives of Buyers

Annex 7
Authorized Representatives of Seller

Annex 8
Authorized Representatives of Guarantor

Annex 9
Authorized Representatives of Custodian

Annex 10
Form of Lost Note Affidavit

Annex 11
Notice of Assignment

Annex 12
(Third Party) Transmittal Letter

Annex 13
Attorney’s Bailee Letter

Annex 14
Exception Codes

 
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Annex 15
List of Unapproved Settlement Agents

Annex 16
Mortgage File Submission Package

Annex 17
Form of Escrow Letter

Annex 18
Notice By Assignee To Custodian Of The Buyer’s Default

EXHIBITS

Exhibit A
Form of Transaction Notice

 
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CUSTODIAL AGREEMENT
 
CUSTODIAL AGREEMENT (this “Custodial Agreement”) dated as of December 13, 2005,
made by and among:
 

(i)
NYMC LOAN CORPORATION (“Seller”);

 

(ii)
NEW YORK MORTGAGE TRUST, INC. (“Guarantor”)

 

(iii)
LASALLE BANK NATIONAL ASSOCIATION, as custodian for Buyers (in such capacity,
the “Custodian”);

 

(iv)
DB STRUCTURED PRODUCTS, INC. (including its successors in interest, “DBSP”)

 

(v)
ASPEN FUNDING CORP. (including its successors in interest, “Aspen”); and

 

(vi)
NEWPORT FUNDING CORP. (including its successors in interest, “Newport” and
collectively with DBSP and Aspen, the “Buyers” and individually, a “Buyer”).

 
RECITALS
 
Seller, Buyers and Guarantor are parties to the Master Repurchase Agreement,
dated as of December 13, 2005 (as amended, supplemented or otherwise modified
and in effect from time to time, the “Repurchase Agreement”), pursuant to which
Buyers and Seller have agreed, subject to the terms and conditions of the
Repurchase Agreement, to enter into Transactions (as defined therein) in which
Buyers have agreed to purchase from time to time from Seller certain Loans, with
a simultaneous agreement by Seller to repurchase such Loans.
 
It is a condition precedent to the effectiveness of the Repurchase Agreement
that the parties hereto execute and deliver this Custodial Agreement to provide
for the appointment of the Custodian as custodian hereunder. Accordingly, the
parties hereto agree as follows:
 
Section 1.  Definitions.
 
Unless otherwise defined herein, terms defined in the Repurchase Agreement shall
have their respective assigned meanings when used herein, and the following
terms shall have the following meanings:
 
“Acceptable Attorney” shall mean any attorney-at-law to which the Custodian has
sent an Attorney’s Bailee Letter, except for an attorney whom Buyers have
notified the Custodian and the Seller in writing that such attorney is not
reasonably satisfactory to Buyers.
 
“Acquisition Guidelines” means (i) NYMC’s loan acquisition guidelines set forth
in Exhibit C to the Repurchase Agreement and (ii) certain acquisition guidelines
of third parties listed in Exhibit G to the Repurchase Agreement in accordance
with which NYMC acquires Loans, as the same may be amended from time to time in
accordance with the terms of the Repurchase Agreement.
 
“Additional Documents” shall have the meaning specified in Section 2(b) hereof.
 

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“AM Funded Wet-Ink Mortgage Loans” shall mean Wet-Ink Mortgage Loans that will
be funded before 10:30 a.m. (New York City time) on any Business Day.
 
“Applicable Guide” shall mean with respect to Fannie Mae or Freddie Mac, the
applicable guide published by either Fannie Mae or Freddie Mac setting forth the
requirements each Loan needs to satisfy in order to be eligible for purchase by
Fannie Mae or Freddie Mac, as such guide may be amended or supplemented from
time to time or any other set of criteria established by Fannie Mae or Freddie
Mac that a Loan must satisfy in order to be eligible for purchase by Fannie Mae
or Freddie Mac.

“Approved Purchaser” shall mean any third party purchaser of a Mortgage Loan,
except for any person whom the Buyer has notified the Custodian and the Seller
in writing that such person is not reasonably satisfactory to the Buyer.
 
“Approved Title Insurance Company” shall mean a title insurance company that has
not been disapproved by Buyers in their sole discretion in a written notice to
the Custodian by the Buyer.
 
“Assignment of Mortgage” shall mean with respect to any Mortgage, an assignment
of the Mortgage, notice of transfer or equivalent instrument in recordable form
(excluding only the name of the assignee), reflecting the assignment and pledge
of the Mortgage.
 
“Attorney’s Bailee Letter” shall mean a letter substantially in the form of
Annex 13 hereto.
 
“Authorized Representative” shall have the meaning specified in Section 18
hereof.
 
“Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day
upon which the banking institutions in the State of New York or any of
Custodian, Seller or Buyers are authorized or obligated by law or executive
order to be closed.
 
“Computer Tape” shall mean a computer tape or other electronic medium generated
by or on behalf of Seller and delivered or transmitted to Buyers and Custodian
which provides information relating to the Purchased Loans, including the
information set forth in the Loan Schedule, in a format acceptable to Buyers and
the Custodian.
 
“Custodial Delivery Failure” shall have the meaning specified in Section 13
hereof.
 
“Daily Aged Report” shall have the meaning set forth in Section 3(g) hereof.
 
“Disbursement Account” shall mean the Disbursement Account established by the
Disbursement Agent in accordance with the Disbursement Agreement.
 
“Disbursement Agent” shall mean Deutsche Bank National Trust Company and any
successor thereto.
 
“Disbursement Agreement” shall mean the Disbursement Agreement among the
Disbursement Agent, Seller, Guarantor and Buyers dated as of December 13, 2005,
as the same may be amended, supplemented or otherwise modified from time to
time.
 
“Dry Mortgage Loan” shall mean a first or second lien Mortgage Loan which is
underwritten in accordance with the Underwriting Guidelines which Mortgage File
contains all required Mortgage Loan Documents and is received by the Custodian.
 
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“Electronic Agent” shall mean MERSCORP, Inc.
 
“Electronic Tracking Agreement” shall mean the Electronic Tracking Agreement,
dated as of the date hereof, among Seller, Buyers, Servicer, the Electronic
Agent and MERS, as the same may be amended, supplemented or otherwise modified
from time to time.
 
“Electronic Transmission” shall mean the delivery of information in an
electronic format acceptable to the applicable recipient thereof. An Electronic
Transmission shall be considered written notice for all purposes hereof (except
when a request or notice by its terms requires execution).
 
“Escrow Letter” shall mean an escrow or closing letter from Seller to the
Settlement Agent in the form of Annex 17.
 
“Event of Default” shall have the meaning provided in Section 19 of the
Repurchase Agreement.
 
“Exception” shall mean, with respect to any Mortgage Loan, any of the following:
(a) any variance from the requirements of Annex 4 hereof with respect to the
Mortgage Files (taking into consideration the Seller’s right to deliver
certified copies in lieu of original documents in certain circumstances); (b)
any Exception identified on Annex 14 hereto or as otherwise reasonably
determined by Buyers; or (c) any Mortgage Loan with respect to which a
Responsible Officer of the Custodian receives written notice or has actual
knowledge of a lien or security interest in favor of a Person other than any
Buyer with respect to such Mortgage Loan.
 
“Loan” means (i) a first lien or second lien, fixed rate or adjustable rate,
closed-end, wet or dry-funded, home equity residential mortgage loan either
originated in accordance with the Underwriting Guidelines or acquired in
accordance with the Acquisition Guidelines and in each case, meets the
representations and warranties attached as Exhibit B to the Repurchase Agreement
and deemed by Buyers to be eligible for securitization in the normal course of
business, (ii) such other type of loan, lease or other receivable as shall be
agreed upon by the parties in writing, or (iii) any interest in, or secured by,
any such loan, lease or other receivable.
 
“Loan Schedule” shall mean a computer-readable transmission in a standardized
text format delivered by the Seller to Buyers, the Custodian and the
Disbursement Agent incorporating the fields identified on Annex 1, with respect
to Dry Mortgage Loans, or Annex 1-A, with respect to Wet-Ink Mortgage Loans, or
as otherwise mutually agreed upon by Buyers, Seller and the Custodian.
 
“Loan Schedule and Exception Report” shall mean in the case of each Mortgage
Loan, a computer-readable transmission containing the following information to
be delivered by the Custodian to the related Buyer pursuant to this Custodial
Agreement: the Mortgage Loan number, Mortgagor’s name, a code indicating whether
the Mortgage Loan is a MERS Designated Mortgage Loan, and if so, the MERS
Identification Number, codes indicating Exceptions and, with respect to any
Mortgage Files which have been released (i) to the Seller pursuant to Section
5(a) hereof pursuant to a Request for Release and Receipt, (ii) as described in
Section 5(b) hereof, or (iii) pursuant to an Attorney Bailee Letter as described
in Section 5(c) hereof, the date such Mortgage Files were released and to whom
they were released. The Custodian shall incorporate all current data provided by
Seller to the Custodian into the Loan Schedule and Exception Report.
 
“Margin Deficit” shall have the meaning assigned thereto in the Repurchase
Agreement.
 
“MERS” shall mean Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.
 
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“MERS Designated Mortgage Loan” shall mean any Mortgage Loan as to which the
related Mortgage or Assignment of Mortgage has been recorded in the name of
MERS, as agent for the holder from time to time of the Mortgage Note and which
is identified as a MERS Mortgage Loan on the related Loan Schedule.
 
“MERS Identification Number” shall mean the eighteen digit number permanently
assigned to each MERS Mortgage Loan.
 
“Midday Funded Wet-Ink Mortgage Loans” shall mean Wet-Ink Mortgage Loans that
will be funded after 10:30 a.m. (New York City time), but on or prior to 1:30
p.m. (New York City time) on any Business Day.
 
“Mortgage” shall mean the mortgage, deed of trust or other instrument, which
creates a valid lien on the fee simple or leasehold estate in such real
property.
 
“Mortgage File” shall mean, as to each Mortgage Loan, those documents listed on
Annex 16 hereto that are delivered to the Custodian or which at any time come
into the possession of the Custodian.
 
“Mortgage Loan” shall mean a Loan which the Custodian has been instructed to
hold for Buyers pursuant to this Custodial Agreement.
 
“Mortgage Loan Documents” shall mean, with respect to a Mortgage Loan, the
documents comprising the Mortgage File for such Mortgage Loan.
 
“Mortgage Note” shall mean the original executed promissory note or other
evidence of the indebtedness of a Mortgagor with respect to a Mortgage Loan and
secured by the related Mortgaged Property.
 
“Mortgaged Property” means the real property (including all improvements,
buildings, fixtures, building equipment and personal property affixed thereto
and all additions, alterations and replacements made at any time with respect to
the foregoing) and all other collateral securing repayment of the debt evidenced
by a Mortgage Note.
 
“Mortgagor” means the obligor on a Mortgage Note.
 
“Notice and Information” shall have the meaning specified in Section 2(a)(i)
hereof.
 
“Notice of Sale and Request for Release” shall mean a notice to the Custodian
and Buyers in the form of Annex 3 hereto that certain of the Mortgage Loans are
being sold and specifying the date of such sale and the amount of the Repurchase
Price being paid off with the proceeds of such sale and requesting that certain
documents with respect to such Mortgage Loans be delivered to the related third
party purchaser.
 
“NYMC” shall mean The New York Mortgage Company, LLC and any successors or
permitted assigns.
 
“Officer’s Certificate” shall mean a certificate signed by a Responsible Officer
of the Person delivering such certificate and delivered as required by this
Custodial Agreement.
 
“Opinion of Counsel” shall mean a written opinion letter of counsel in form and
substance reasonably acceptable to the party receiving such opinion letter.
 
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“Person” means any legal person, including any individual, corporation,
partnership, association, joint stock company, trust, limited liability company,
unincorporated organization, governmental entity or other entity of similar
nature.
 
“PM Funded Wet-Ink Mortgage Loans” shall mean Wet-Ink Mortgage Loans that will
be funded after 1:30 p.m. (New York City time) but on or prior to 4:30 p.m. (New
York City time) on any Business Day.
 
“Pricing Side Letter” means the pricing side letter, dated as of December 13,
2005, among Seller, Guarantor and Buyers, as the same may be amended,
supplemented or modified from time to time.
 
“Program Documents” shall have the meaning assigned thereto in the Repurchase
Agreement.
 
“Purchase Date” means the date on which a Transaction is entered into pursuant
to the Repurchase Agreement.
 
“Purchased Loan” means a Loan purchased by a Buyer in a Transaction pursuant to
the Repurchase Agreement.
 
“Purchase Price” shall have the meaning assigned thereto in the Pricing Side
Letter.
 
“Repurchase Price” means the price at which Purchased Loans are to be
transferred from the related Buyer to Seller upon termination of a Transaction,
which will be determined in each case according to the Repurchase Agreement.
 
“Rescission” shall mean the right of a Mortgagor to rescind the related Mortgage
Note and related documents pursuant to applicable law and regulation.
 
“Responsible Officer” shall mean, as to any Person, the chief executive officer
or, with respect to financial matters, the chief financial officer of such
Person; provided, that in the event any such officer is unavailable at any time
he or she is required to take any action hereunder, Responsible Officer shall
mean any officer authorized to act on such officer’s behalf as demonstrated by a
certificate of corporate resolution. With respect to the Custodian, Responsible
Officer shall mean any managing director, director, associate, principal, vice
president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Custodian customarily performing
functions similar to those performed by any of the above designated officers and
also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject.
 
“Review Procedures” shall have the meaning specified in Section 3(a) hereof.
 
“Servicer” means Cenlar F.S.B. and any successor thereto.
 
“Settlement Agent” shall mean, with respect to any Wet-Ink Mortgage Loan, the
Person specified in the Transaction Notice (which may be a title company, escrow
company or attorney in accordance with local law and practice in the
jurisdiction where the related Wet-Ink Mortgage Loan is being originated and
which is not listed as an Unapproved Settlement Agent on Annex 15 attached
hereto as revised from time to time by Buyers) to which the proceeds of the
related Purchase Price with respect to such Wet-Ink Mortgage Loan are to be
distributed by the Disbursement Agent.
 
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“Transaction” shall mean a transaction pursuant to which Seller transfers to the
related Buyer certain Loans against the transfer of funds by the related Buyer,
with a simultaneous agreement by the related Buyer to transfer to Seller such
Loans on a date certain, against the transfer of funds by Seller.
 
“Transaction Notice” means a written request of Seller to enter into a
Transaction, in the form attached hereto as Exhibit A or such other form as
shall be mutually agreed upon among Seller and Buyers which is delivered to the
related Buyer, the Disbursement Agent and the Custodian.
 
“Transmittal Letter” shall mean a letter substantially in the form of Annex 12
hereto.
 
“Trust Receipt” shall mean the trust receipt in the form annexed hereto as Annex
2 delivered to the related Buyer by the Custodian covering the Mortgage Loans
subject to this Custodial Agreement from time to time, as reflected on the Loan
Schedule and Exception Report attached thereto in accordance with Section 3.
 
“Underwriting Guidelines” shall mean NYMC’s loan underwriting guidelines set
forth as Exhibit D to the Repurchase Agreement and (ii) certain underwriting
guidelines of third parties listed in Exhibit G to the Repurchase Agreement in
accordance with which NYMC underwrites Loans, as the same may be amended from
time to time in accordance with terms of the Repurchase Agreement.
 
“Wet-Ink Mortgage Loan” means a first lien or second lien Loan that is sold to
the related Buyer simultaneously with the origination thereof by The New York
Mortgage Company, LLC, which origination is in accordance with the Underwriting
Guidelines and is funded in part or in whole with proceeds of the sale of the
Loan to the related Buyer paid directly to a Settlement Agent and for which all
of the Mortgage Loan Documents specified in Annex 16 have not been delivered to
Custodian in accordance with Section 2 of this Agreement. For the avoidance of
doubt Wet-Ink Mortgage Loans shall include each Wet-Ink Conforming Loan, Wet-Ink
Alt-A Loan, Wet-Ink HELOC, Wet-Ink Subprime Loan, Wet-Ink Jumbo Loan and Wet-Ink
Small Balance Commercial Loan.
 
“Wire Instruction Data” shall mean the applicable information provided relating
to funding for the origination of a Wet-Ink Mortgage Loan, which data shall
include the amount of the related wire transfer and related depository
information as required by Buyers.
 
Section 2.  Delivery of Mortgage File.
 
(a)  The Seller shall from time to time deliver Mortgage Files to the Custodian
to be held hereunder, which shall be reviewed by the Custodian as provided in
Section 3.
 
(i)  With respect to each Transaction, the Seller shall provide written notice,
in the form of a Transaction Notice together with the related Loan Schedule and
a Computer Tape (collectively, the “Notice and Information”), to the related
Buyer, Custodian and Disbursement Agent, as applicable, with respect to such
Mortgage Loans which are to be purchased.
 
(ii)  With respect to Dry Mortgage Loans, Seller shall deliver to the related
Buyer and the Custodian, no later than 11:00 a.m. (New York City time) two (2)
Business Days prior to the requested Purchase Date (a “Notice Date”), (a) the
related Notice and Information and (b) the related Mortgage File.
 
(iii)  With respect to Wet-Ink Mortgage Loans, Seller shall notify the related
Buyer of an estimate of the Purchase Price of such Wet-Ink Mortgage Loans no
later than prior to 3:00 p.m. (New York City time) one (1) Business Day prior to
the requested Purchase Date.
 
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(iv)  With respect to any AM Funded Wet-Ink Mortgage Loans, prior to 5:00 p.m.
(New York City time) one (1) Business Day prior to the requested Purchase Date
(also a “Notice Date”), Seller shall deliver, by facsimile or Electronic
Transmission (a) the related Notice and Information to the related Buyer, the
Disbursement Agent and the Custodian, and (b) copies of the Escrow Letters with
respect to such Wet-Ink Mortgage Loans which are to be purchased to the
Custodian.
 
(v)  With respect to Midday Funded Wet-Ink Mortgage Loans, prior to 12:30 (New
York City time) on the requested Purchase Date (also a “Notice Date”), Seller
shall deliver, by facsimile or Electronic Transmission (a) the related Notice
and Information to the related Buyer, the Disbursement Agent and the Custodian,
and (b) copies of the Escrow Letters with respect to such Wet-Ink Mortgage Loans
which are to be purchased to the Custodian.
 
(vi)  With respect to PM Funded Wet-Ink Mortgage Loans, prior to 3:00 p.m. (New
York City time) on the requested Purchase Date (also a “Notice Date”), Seller
shall deliver, by facsimile or Electronic Transmission (a) the related Notice
and Information to the related Buyer, the Disbursement Agent and the Custodian,
and (b) copies of the Escrow Letters with respect to such Wet-Ink Mortgage Loans
which are to be purchased to the Custodian.
 
Notwithstanding anything herein to the contrary, in the event that more than 250
Mortgage Files are to be delivered on any Purchase Date, the Custodian shall
have such additional time to complete its review of such Mortgage Files in
excess of 250 as agreed between the Custodian and the Seller. In such event, the
Seller shall deliver the Mortgage Files to the Custodian so that the Custodian
shall have the time required to complete its review and issue the required Trust
Receipts on the Purchase Date.
 
(b)  From time to time, the Seller shall forward to the Custodian additional
original documents or additional documents evidencing any assumption,
modification, consolidation or extension of a Mortgage Loan approved by the
Seller, or other documents with respect to a Mortgage Loan (such additional
documents, “Additional Documents”), in accordance with the terms of the
Repurchase Agreement, and upon receipt thereof, the Custodian shall hold such
Additional Documents for the Buyers hereunder. The Custodian shall receive such
Additional Documents, but shall not be required to review any such Additional
Documents other than to determine that such Additional Documents appear on their
face to be the documents required to be delivered.
 
With respect to any documents which have been delivered or are being delivered
to recording offices for recording and have not been returned to the Seller in
time to permit their delivery hereunder at the time required, in lieu of
delivering such original documents, the Seller shall deliver to the Custodian a
copy thereof certified by the Seller, originating Lender, Settlement Agent,
title company or escrow closing company as a true, correct and complete copy of
the original which has been transmitted for recordation. The Seller shall
deliver such original documents to the Custodian promptly when they are received
if the related Mortgage Loan is then subject to this Custodial Agreement.
 
(c)  With respect to any Mortgage Loan, if the Custodian has identified such
Mortgage Loan as having any Exception or if the Seller has knowledge of any
Exception, the Seller shall promptly and diligently notify Buyers of any such
Exception and shall promptly and diligently attempt to cure any such Exception.
 
(d)  The parties hereto acknowledge and agree that the Seller may cause The New
York Mortgage Company, LLC, on Seller’s behalf, to deliver the Mortgage Files
and the other documents required to be delivered hereunder to the Custodian and
the other parties hereto.
 
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Section 3.  Trust Receipt and Loan Schedule and Exception Report.
 
(a)  If the Custodian has received a Mortgage File for a Mortgage Loan
identified on the Loan Schedule as provided in the preceding section, the
Custodian shall review the documents required to be delivered pursuant to
Section 2(a)(ii) above and Annex 16 and shall indicate on its records that
Custodian maintains possession of such documents for Buyers hereunder.
 
(b)  Not later than 12:00 noon (New York City time) on each Purchase Date, with
respect to Dry Mortgage Loans, and not later than 5:00 p.m. (New York City time)
on each Purchase Date with respect to Wet-Ink Mortgage Loans, the Custodian
shall deliver to the related Buyer, (i) in accordance with the delivery
procedures set forth below in Section 3(e), a Trust Receipt in respect of all
Loans (including Wet-Ink Mortgage Loans) sold to such Buyer on such Purchase
Date and any prior Purchase Date and held by Custodian hereunder to such Buyer,
(ii) via facsimile or Electronic Transmission, a Loan Schedule and Exception
Report for Loans which are not Wet-Ink Mortgage Loans to the related Buyer, and
(iii) via facsimile or Electronic Transmission, a detailed listing of all
Wet-Ink Mortgage Loans to the related Buyer, Seller and Disbursement Agent,
which shall be attached to the related Trust Receipt. Each Loan Schedule and
Exception Report and detailed listing of Wet-Ink Mortgage Loans delivered by
Custodian to the related Buyer shall supersede and cancel the Loan Schedule and
Exception Report and detailed listing of Wet-Ink Mortgage Loans previously
delivered by Custodian to the related Buyer hereunder, and shall replace the
then existing Loan Schedule and Exception Report and detailed listing of Wet-Ink
Mortgage Loans to be attached to the Trust Receipt. In no event shall Custodian
list any Loan on a Loan Schedule and Exception Report if Custodian has not yet
reviewed the related Mortgage File.
 
(c)  (i)  With respect to Wet-Ink Mortgage Loans, the delivery of the
Transaction Notice and Loan Schedule to the Custodian by the Seller shall be
deemed to constitute required documents with respect to the related Wet-Ink
Mortgage Loan (and shall be deemed to be a certification by such Seller that
such Mortgage Loan is a Wet-Ink Mortgage Loan) and the Mortgage File shall not
be required to be delivered with respect to such Wet-Ink Mortgage Loan on the
related Purchase Date. Notwithstanding the foregoing, the Seller shall deposit
with the Custodian the Mortgage File for such Wet-Ink Mortgage Loan as soon as
possible and, in any event, within seven (7) Business Days after the date the
Purchase is made with respect to such Wet-Ink Mortgage Loan. The Custodian shall
notify the related Buyer within one (1) Business Day of the failure by the
Seller to deliver any document by the time provided in the previous sentence.
 
(ii)  If the Custodian receives the Mortgage File with respect to Wet-Ink
Mortgage Loans by 1:30 p.m. (New York City time) on a Business Day, the
Custodian shall deliver the related Trust Receipt and Loan Schedule and
Exception Report to the related Buyer, in accordance with Section 3(e) below, no
later than 5:00 p.m. (New York City time) on that Business Day; provided that if
the Custodian receives the Mortgage File after 1:30 p.m. (New York City time) on
a Business Day, the Custodian shall make such delivery by no later than the
following Business Day.
 
(iii)  The Seller hereby represents, warrants and covenants to Buyers and
Custodian that the Seller and any person or entity acting on behalf of the
Seller that has possession of any of the Mortgage File for such Wet-Ink Mortgage
Loan prior to the deposit thereof with Custodian will hold such documents in
trust for Buyers.
 
(d)  The delivery of each Trust Receipt and Loan Schedule and Exception Report
to Buyers as provided below shall be the Custodian’s representation that, other
than the Exceptions listed: (i) all documents in respect of such Mortgage Loan
required to be delivered at such time pursuant to Section 2(a)(i), and (ii) of
this Custodial Agreement, and the documents listed in Sections (i), (ii), (iii),
(iv) and, (v) of Annex 16 (and if actually delivered to the Custodian, the
documents listed at Sections (vi) - (xi) of Annex 16 ), have been delivered and
are in the possession of the Custodian as part of the Mortgage File for such
Mortgage Loan; (ii) all such documents have been reviewed by the Custodian in
accordance with the review procedures attached hereto as Annex 4 (the “Review
Procedures”) and appear on their face to be regular and to relate to such
Mortgage Loan and to satisfy the requirements set forth in Section 2 of this
Custodial Agreement; and (iii) each Mortgage Loan identified in such Loan
Schedule and Exception Report is being held by the Custodian as bailee for the
Buyer and/or its designees pursuant to this Custodial Agreement.
 
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(e)  The Custodian shall deliver each original Trust Receipt and Loan Schedule
and Exception Report to Buyers at 60 Wall Street, New York, New York, 10005,
Attention: Vincent D’Amore (telephone: (212) 250-7328) on each Purchase Date, or
day that mortgage files are released following any sale of the related Mortgage
Loan, by overnight delivery using a nationally recognized overnight delivery
service at the Seller’s expense. Alternatively, a Trust Receipt and Loan
Schedule and Exception Report may be delivered electronically to the related
Buyers on the related Purchase Date; provided that the Custodian shall deliver
the original Trust Receipt and Loan Schedule and Exception Report to the related
Buyers by overnight mail pursuant to the preceding sentence. Each Trust Receipt
and Loan Schedule and Exception Report subsequently delivered by the Custodian
to Buyers shall supersede and cancel the Trust Receipt and Loan Schedule and
Exception Report previously delivered by the Custodian to Buyers hereunder, and
shall replace the then existing Loan Schedule and Exception Report and the then
existing Trust Receipt; provided that any Trust Receipt issued in respect of
Wet-Ink Mortgage Loans shall only supercede any Trust Receipt previously issued
in respect of such Wet-Ink Mortgage Loans, any Trust Receipt issued in respect
of Dry Mortgage Loans shall only supercede any Trust Receipt previously issued
in respect such Dry Mortgage Loans.
 
(f)  In connection with any Trust Receipt and Loan Schedule and Exception Report
delivered hereunder by the Custodian, the Custodian makes no representations as
to and shall not be responsible to verify (A) the validity, legality,
enforceability, due authorization, recordability, sufficiency, or genuineness of
any of the documents contained in each Mortgage File or (B) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan. Subject to
the following sentence, the Seller and Buyers hereby give the Custodian notice
that from and after the Purchase Date, Buyers shall own (or, alternatively, have
a security interest in) each Mortgage Loan identified on a Loan Schedule and
Exception Report until such time that the Custodian receives written notice from
the Buyer that the Buyer no longer owns or has a security interest in such
Mortgage Loan.
 
(g)  No later than 5:00 p.m. (New York City time) on each Business Day,
Custodian shall also deliver to Seller and the related Buyer, by electronic
transmission, a daily aging report setting forth such information with respect
to the Purchased Loans as may be reasonably required by the related Buyer (the
“Daily Aged Report”). Custodian shall monitor each Loan on a daily basis in
order that all information set forth on the Daily Aged Report is accurate as of
the time such Daily Aged Report is delivered. Disbursement Agent shall provide
to Custodian all information in its possession that Custodian requires in order
to complete and deliver each Daily Aged Report.
 
Section 4.  Obligations of the Custodian.
 
(a)  The Custodian shall maintain continuous custody of all items constituting
the Mortgage Files in secure facilities in accordance with customary standards
for such custody and shall reflect in its records the interest of Buyers
therein. Each Mortgage Note (and Assignment of Mortgage) shall be maintained in
fire resistant facilities.
 
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(b)  With respect to the documents constituting each Mortgage File, the
Custodian shall (i) act exclusively as the bailee of, and custodian for, Buyers,
(ii) hold all documents constituting such Mortgage File received by it for the
exclusive use and benefit of Buyers, and (iii) make disposition thereof only in
accordance with the terms of this Custodial Agreement or with written
instructions furnished by Buyers; provided, however, that in the event of a
conflict between the terms of this Custodial Agreement and the written
instructions of Buyers, the Buyers’ written instructions shall control.
 
(c)  In the event that (i) a Buyer, the Seller or the Custodian shall be served
by a third party with any type of levy, attachment, writ or court order with
respect to any Mortgage File or any document included within a Mortgage File or
(ii) a third party shall institute any court proceeding by which any Mortgage
File or a document included within a Mortgage File shall be required to be
delivered otherwise than in accordance with the provisions of this Custodial
Agreement, the party receiving such service shall promptly deliver or cause to
be delivered to the other parties to this Custodial Agreement copies of all
court papers, orders, documents and other materials concerning such proceedings.
The Custodian shall, to the extent permitted by law or any court order continue
to hold and maintain all the Mortgage Files that are the subject of such
proceedings pending a final, nonappealable order of a court of competent
jurisdiction permitting or directing disposition thereof. Upon final
determination of such court, the Custodian shall dispose of such Mortgage File
or any document included within such Mortgage File as directed by Buyers which
shall give a direction consistent with such determination. Expenses of the
Custodian (including reasonable attorneys’ fees and related expenses) incurred
as a result of such proceedings shall be borne by the Seller.
 
(d)  Buyers hereby acknowledges that the Custodian shall not be responsible for
the validity of Buyers’ ownership interest or the validity and perfection of the
Buyers’ security interest in the Purchased Loans under the Repurchase Agreement,
other than the Custodian’s obligation to take possession of Mortgage Loans as
set forth in Section 2 hereof.
 
(e)  During the term of this Custodial Agreement, if the Custodian discovers any
nonconformity with the review criteria in Annex 4 with respect to any Mortgage
File, the Custodian shall, by means of the Loan Schedule and Exception Report,
give written or electronic specification of such nonconformity to Buyers and the
Seller.
 
Section 5.  Release of Purchased Loans.
 
(a)  From time to time until the Custodian is otherwise notified in writing by
an Authorized Representative of a Buyer (and a copy thereof shall be sent by
Buyers to Seller), the Custodian is hereby authorized upon receipt of written
request of the Seller to release Mortgage Files relating to Mortgage Loans in
the possession of the Custodian to the Seller, or its designee, for the purpose
of servicing or correcting documentary deficiencies relating thereto against a
request for release of Mortgage Files and receipt (a “Request for Release and
Receipt”) executed by the Seller in the form of Annex 5 hereto, which Request
for Release and Receipt must also be executed by Buyers in the event that more
than five (5) Mortgage Files would be released following such requested release.
The Custodian shall not restrict such releases, but shall promptly notify Buyers
of the occurrence of each such release of Mortgage Files and shall keep track of
each such release of Mortgage Files. The Seller or its designee shall return to
the Custodian each Mortgage File previously released by the Custodian within ten
(10) calendar days after receipt thereof other than for any Mortgage Loan which
has been paid in full by the related Mortgagor or any Mortgage Loan as to which
the related Mortgage File has been released pursuant to Section 5(c) to an
Acceptable Attorney pursuant to an Attorney’s Bailee Letter. The Seller hereby
further represents and warrants to Buyers that any such request by the Seller
for release of Purchased Loans shall be solely for the purposes set forth in the
Request for Release and Receipt and that the Seller has requested such release
in compliance with all terms and conditions of such release set forth in the
Repurchase Agreement. Notwithstanding anything to the contrary contained in the
foregoing, any request for release of Mortgage Notes shall be deemed to be a
representation by the Seller (upon which the Custodian may rely) that such
release is being requested only for the purpose of (i) ultimate sale or exchange
or (ii) presentation, collection, renewal or registration of transfer.
 
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(b)  (i)  From time to time until otherwise notified in writing by Buyers (and a
copy thereof shall be sent by Buyers to Seller), the Custodian is hereby
authorized upon receipt of written request of the Seller at least two (2)
Business Days prior to the date of the anticipated sale, to release Mortgage
Files in the possession of the Custodian to a third-party purchaser (subject to
the written consent of Buyers if such third party purchaser is not an Approved
Purchaser) for the purpose of resale thereof against a Notice of Sale and
Request for Release executed by the Seller and Buyers (in their discretion) in
the form of Annex 3 hereto. On such Notice of Sale and Request for Release, the
Seller shall indicate the Mortgage Loans to be sold, such information to be
provided in electronic medium acceptable to the Seller and the Custodian, the
approximate amount of sale proceeds anticipated to be received, the date of such
anticipated sale, the name and address of the third-party purchaser, whether the
shipment is made pursuant to the sale of the Mortgage Loans to a third party or
pursuant to the formation of a mortgage pool supporting a mortgage-backed or
asset-backed security (an “MBS”), and the preferred method and date of delivery.
For the avoidance of doubt, under no circumstances shall any Buyer have any
obligation to consent to any such Notice of Sale and Request for Release after
the occurrence of a Default or an Event of Default.
 
(ii)  Any transmittal of a Mortgage File for a Mortgage Loan in the possession
of the Custodian in connection with the sale thereof to a third-party purchaser
will be under cover of a Transmittal Letter substantially in the form attached
hereto as Annex 12 duly completed by the Custodian and executed by the
Custodian. Promptly upon receipt by Buyers of the full amount of the takeout
proceeds (constituting not less than the “Payoff Amount”) with respect to such
Mortgage Loan into the account set forth in such Transmittal Letter, Buyers
shall notify the Custodian thereof in writing and Custodian shall reflect in its
records the release and sale of such Mortgage Loan. Any Payoff Amount sent by a
third-party purchaser of Mortgage Loans shall be sent to the account designated
by Buyers.
 
(c)  (i)  From time to time until otherwise notified in writing by Buyers, which
notice shall be given by Buyers only following the occurrence of an Event of
Default (and a copy thereof shall be sent by Buyers to Seller), and as
appropriate for the foreclosure of any of the Mortgage Loans, the Custodian is
hereby authorized, upon receipt of a Request for Release and Receipt from the
Seller to send to an Acceptable Attorney copies or originals of the Mortgage
Files listed in the Request for Release and Receipt. The Custodian shall not
send to an Acceptable Attorney an original Mortgage File unless the Custodian
shall have retained a complete and accurate copy of such Mortgage File. The
Custodian may destroy any such copies retained upon receipt of written
instructions from Buyers to destroy such copies. In accordance with the terms of
the Attorney’s Bailee Letter, the Acceptable Attorney to whom such Mortgage
Files are sent is instructed to acknowledge receipt of each such document by
faxing to Buyers and the Custodian a list of such Mortgage Files confirming that
such Acceptable Attorney is holding the same as bailee of Buyers under the
applicable Attorney’s Bailee Letter, for receipt as soon as possible and in any
event no later than three (3) Business Days following receipt thereof by such
Acceptable Attorney. Buyers may, by written notice to the Custodian and the
Seller, respectively, exclude any attorney-at-law with whom Buyers are not
reasonably satisfied, from being an Acceptable Attorney. The Custodian shall
promptly notify Buyers that it has released any Mortgage File to an Acceptable
Attorney.
 
(ii)  In accordance with each Attorney’s Bailee Letter, no later than three (3)
Business Days prior to the foreclosure of any Mortgage Loan, the Acceptable
Attorney party thereto shall notify the Seller of the scheduled date of
foreclosure of each such Mortgage Loan (the “Scheduled Foreclosure Date”), and
of any subsequent changes to the Scheduled Foreclosure Date. The Seller hereby
agrees in any event to promptly notify the Custodian and Buyer in writing upon
completion of any foreclosure. On the date of foreclosure, such Mortgage Loan
shall be deemed deleted from any Trust Receipt then outstanding.
 
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(d)  From time to time until the Custodian is otherwise notified by Buyers, and
with the prior written consent of Buyers (and a copy thereof shall be sent by
Buyers to Seller), the Seller may substitute for one or more Eligible Mortgage
Loans constituting the Purchased Loans one or more substitute Eligible Mortgage
Loans having aggregate Purchase Prices equal to or greater than the Purchase
Prices of the Mortgage Loans being substituted for, or obtain the release of one
or more Mortgage Loans constituting Purchased Loans hereunder; provided that,
after giving effect to such substitution or release, no Margin Deficit shall
occur, which determination shall be made solely by the Buyer in accordance with
the Repurchase Agreement. In connection with any such requested substitution or
release, the Seller will provide notice to the Custodian and Buyers no later
than 12:00 p.m. (New York City time), on the date of such request, specifying
the Mortgage Loans to be substituted for or released and the substitute Mortgage
Loans to be purchased in substitution therefor, if any, and shall deliver with
such notice a revised Loan Schedule indicating any substitute Mortgage Loans. If
the Custodian and Buyers have received notice in accordance with the preceding
sentence, the Custodian will effect the requested substitution or release no
later than 3:00 p.m. (New York City time), two (2) Business Days following the
day on which such request was made after the Custodian has certified to Buyers
on such Business Day that the matters set forth in Section 3(a) hereof with
respect to any substitute Mortgage Loans are true and correct. Each such
substitution or release shall be deemed to be a representation and warranty by
the Seller that any substitute Mortgage Loans are eligible for purchase under
the Repurchase Agreement and that after giving effect to such substitution or
release, no Margin Deficit shall occur.
 
(e)  So long as no Event of Default has occurred and is continuing and to the
extent written notice has been provided to the Custodian, the Custodian and
Buyers shall take such steps as they may reasonably be directed from time to
time by the Seller in writing, which the Seller deems necessary and appropriate,
to transfer promptly and deliver to the Seller any Mortgage File in the
possession of the Custodian relating to any Mortgage Loan previously purchased
by Buyers but which the Seller, with the written consent of Buyers, has notified
the Custodian has ceased to be subject to the terms of the Repurchase Agreement,
or any Mortgage Loan in respect of which the Seller has paid the applicable
Repurchase Price in full.
 
(f)  The Custodian shall provide a notice to Buyers as to any Mortgage Loan
which (i) has been released to the Seller pursuant to Section 5(a) hereof in
excess of ten (10) calendar days; (ii) has been released under Section 5(b)
hereof under any Transmittal Letter in excess of the time period stated in such
Transmittal Letter for release.
 
Section 6.  Fees and Expenses of Custodian.
 
The Custodian shall charge such fees for its services under this Custodial
Agreement as are set forth in a separate agreement between the Custodian and the
Seller, the payment of which fees, together with the Custodian’s expenses
incurred in connection herewith, shall be solely the obligation of the Seller.
The failure of Seller to pay any such fees shall not excuse the performance by
Custodian of any of its obligations hereunder. The obligations of the Seller
under this Section 6 shall survive the termination of this Custodial Agreement
and the resignation or removal of the Custodian.
 
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Section 7.  Removal or Resignation of Custodian.
 
(a)  The Custodian may at any time resign and terminate its obligations under
this Custodial Agreement upon at least 60 days’ prior written notice to the
Seller and Buyers. Promptly after receipt of notice of the Custodian’s
resignation, Buyers shall appoint, by written instrument, a successor custodian,
subject to written approval by Seller (which approval shall not be unreasonably
withheld). One original counterpart of such instrument of appointment shall be
delivered to each of the Buyers, the Seller, the Custodian and the successor
custodian. If the successor Custodian shall not have been appointed within 60
days of the Custodian’s providing such notice, the Custodian may petition any
court of competent jurisdiction to appoint a successor Custodian.
 
(b)  Buyers (with the consent of Seller, which consent shall not be unreasonably
withheld), upon at least 30 days’ prior written notice to the Custodian, may
remove and discharge the Custodian (or any successor custodian thereafter
appointed) from the performance of its obligations under this Custodial
Agreement. Promptly after the giving of notice of removal of the Custodian,
Buyers shall appoint, by written instrument, a successor custodian, which
appointment shall be reasonably acceptable to the Seller. One original
counterpart of such instrument of appointment shall be delivered to each of the
Buyers, the Seller, the Custodian and the successor custodian.
 
(c)  In the event of any such resignation or removal, the Custodian shall,
promptly upon the simultaneous surrender of any outstanding Trust Receipts held
by Buyer, transfer to the successor custodian, as directed in writing, all the
Mortgage Files being administered under this Custodial Agreement. The cost of
the shipment of Mortgage Files arising out of the resignation of the Custodian
shall be at the expense of the Custodian unless such resignation is due to the
nonpayment of its fees and expenses hereunder, in which case such expense shall
be paid by the Seller; and any cost of shipment arising out of the removal of
the Custodian by Buyers or the Seller for cause shall be at the expense of the
Custodian. The cost of shipment arising out of the removal of the Custodian by
Buyers or the Seller without cause shall be at the expense of the Seller. The
Seller shall be responsible for the fees and expenses of the successor custodian
and the fees and expenses for endorsing the Mortgage Notes and assigning the
Mortgages to the successor custodian if required pursuant to this paragraph.
 
Section 8.  Examination of Mortgage Files.
 
Upon reasonable prior notice to the Custodian (which shall be two (2) Business
Days or such shorter period of time agreed to by the Custodian and Buyers) and
upon reasonable terms and conditions and at the Seller’s expense, Buyers and
each of its respective agents, accountants, attorneys and auditors will be
permitted during normal business hours to examine, inspect, and make copies of
the Mortgage Files, documents, records and other papers in the possession of or
under the control of the Custodian relating to any or all of the Mortgage Loans.
 
Section 9.  Insurance of Custodian.
 
At its own expense, the Custodian shall maintain at all times during the
existence of this Custodial Agreement and keep in full force and effect fidelity
insurance, theft of documents insurance, forgery insurance and errors and
omissions insurance. All such insurance shall be in amounts, with standard
coverage and subject to deductibles, all as is customary for insurance typically
maintained by institutions which act as custodian of assets substantially
similar to the Purchased Loans and act in a collateral agent capacity. The
minimum coverage under any such bond and insurance policies shall be at least
equal to the corresponding amounts required by Fannie Mae or Freddie Mac in the
Applicable Guide. Upon request, Buyers or the Seller shall be entitled to
receive a certificate of the respective insurer that such insurance is in full
force and effect.
 
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Section 10.  Representations and Warranties.
 
The Custodian represents and warrants to Buyers that:
 
(a)  The Custodian is (i) a national banking association duly organized, validly
existing and in good standing under laws of the United States and (ii) duly
qualified and in good standing and in possession of all requisite authority,
power, licenses, permits and franchises in order to execute, deliver and comply
with its obligations under the terms of this Custodial Agreement.
 
(b)  The Custodian has all requisite right, power and authority to execute and
deliver this Custodial Agreement and to perform all of its duties as the
Custodian hereunder.
 
(c)  The execution, delivery and performance of this Custodial Agreement have
been duly authorized by all necessary corporate action on the part of the
Custodian, and neither the execution and delivery of this Custodial Agreement by
the Custodian in the manner contemplated herein nor the Custodian’s performance
of and compliance with the terms hereof will violate, contravene or create a
default under any charter document or bylaw of the Custodian.
 
(d)  Neither the execution and delivery of this Custodial Agreement by the
Custodian, nor its performance of and compliance with its obligations and
covenants hereunder, require the consent or approval of any governmental
authority or, if such consent or approval is required, it has been obtained.
 
(e)  This Custodial Agreement, when executed and delivered by the Custodian,
will constitute valid, legal and binding obligations of the Custodian,
enforceable against the Custodian in accordance with their respective terms,
except as the enforcement thereof may be limited by applicable debtor relief
laws and that certain equitable remedies may not be available regardless of
whether enforcement is sought in equity or at law.
 
(f)  The Custodian is not an Affiliate of the Seller or Guarantor.
 
(g)  At all times the Custodian shall be a corporation or association organized
and doing business under the laws of the United States of America or of any
State, and shall be authorized under such laws to exercise corporate trust
powers, subject to supervision or examination by the United States of America or
any such State, and shall have (x) a short-term, unsecured debt rated at least
P-1 by Moody’s Investors Service, Inc. (or such lower rating as may be
acceptable to Seller and Buyer) and (y) a short term deposit rating of at least
A-1 from Standard & Poor’s Ratings Services (or such lower rating as may be
acceptable to Seller and Buyer).
 
(h)  The Custodian shall at all times have a combined capital and surplus of at
least $50,000,000 as set forth in its then most recent published annual report
of condition.
 
Section 11.  Statements.
 
Upon the request of Buyers or the Seller, the Custodian shall provide Buyers or
the Seller, as applicable, with a list of all the Mortgage Loans for which the
Custodian holds a Mortgage File pursuant to this Custodial Agreement. Such list
shall be in the form of a Loan Schedule and Exception Report. Upon the request
of Buyers, the Custodian shall provide Buyers with any reports or information
reasonably requested by Buyers.
 
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Section 12.  No Adverse Interest of Custodian.
 
By execution of this Custodial Agreement, the Custodian represents and warrants
that it currently holds, and during the existence of this Custodial Agreement
shall hold, no adverse interest, by way of security or otherwise, in any
Mortgage Loan, and hereby waives and releases any such interest which it may
have in any Mortgage Loan as of the date hereof. The Mortgage Loans shall not be
subject to any security interest, lien or right to set-off by Custodian or any
third party claiming through Custodian, and Custodian shall not pledge,
encumber, hypothecate, transfer, dispose of, or otherwise grant any third party
interest in, the Mortgage Loans.
 
Section 13.  Indemnification of Custodian.
 
The Seller and Guarantor, jointly and severally, agree to reimburse, indemnify
and hold the Custodian and its directors, officers, agents and employees
harmless against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, or out-of-pocket expenses of any
kind or nature whatsoever, including reasonable attorney’s fees, that may be
imposed on, incurred by, or asserted against it or them in any way relating to
or arising out of this Custodial Agreement or any action taken or not taken by
it or them hereunder unless such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, or out-of-pocket expenses were
imposed on, incurred by or asserted against the Custodian because of the breach
by the Custodian of its obligations hereunder, or caused by the negligence, lack
of good faith or willful misconduct on the part of the Custodian or any of its
directors, officers, agents or employees. The foregoing indemnification shall
survive any resignation or removal of the Custodian or the termination or
assignment of this Custodial Agreement.
 
In the event that the Custodian fails to produce a Mortgage Note, Assignment of
Mortgage or any other document related to a Mortgage Loan that was in its
possession pursuant to Section 2 within two (2) Business Days after written
request therefor by Buyers or the Seller in accordance with the terms and
conditions of this Custodial Agreement; provided that (i) Custodian previously
delivered to Buyers a Trust Receipt and a Loan Schedule and Exception Report
which did not list such document as an Exception on the related Purchase Date;
(ii) such document is not outstanding pursuant to a Request for Release and
Receipt in the form annexed hereto as Annex 5; and (iii) such document was held
by the Custodian on behalf of the Seller or the Buyer, as applicable (a
“Custodial Delivery Failure”), then the Custodian shall (a) with respect to any
missing Mortgage Note, promptly deliver to the Buyer or the Seller, upon
request, a Lost Note Affidavit in the form of Annex 10 hereto and (b) with
respect to any missing document related to such Mortgage Loan, including but not
limited to a missing Mortgage Note, indemnify the Seller and Buyer in accordance
with the succeeding paragraph of this Section 13. Notwithstanding the foregoing,
in the event that the Custodian fails to produce a Mortgage Note with respect to
a Mortgage Loan requested pursuant to Section 5(b) hereof which was not
otherwise released by the Custodian pursuant to the terms of this Custodial
Agreement, the Custodian shall then promptly (but no later than two (2) Business
Days following such request) provide the Buyer or the Seller, as applicable,
with a Lost Note Affidavit. In the event that such original Mortgage Note is
subsequently found and delivered to the Buyers or the Seller, as applicable,
such party shall return the Lost Note Affidavit to the Custodian. For the
avoidance of doubt, the Custodian shall not release to the Seller any Mortgage
Note or the related Mortgage File, unless the Buyers shall otherwise consent or
direct, until the Buyer(s) have received the related Repurchase Price together
with any and all other Obligations then due and payable, and the Buyers have so
notified the Custodian.
 
The Custodian agrees to indemnify and hold the Buyer and Seller, and their and
their respective present or former affiliates, directors, officers, employees,
agents, representatives and designees harmless against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, or
out-of-pocket expenses, including reasonable attorney’s fees, that may be
imposed on, incurred by, or asserted against it or them in any way relating to
or arising out of a Custodial Delivery Failure or the Custodian’s negligence,
lack of good faith or misconduct or any breach of the conditions,
representations or warranties contained herein. The foregoing indemnification
shall survive any termination or assignment of this Custodial Agreement.
 
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Section 14.  Concerning the Custodian.
 
In the absence of bad faith on the part of the Custodian, the Custodian may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any request, instruction, certificate, opinion
or other document furnished to the Custodian, reasonably believed by the
Custodian to be genuine and to have been signed or presented by the proper party
or parties and conforming to the requirements of this Custodial Agreement; but
in the case of any Mortgage Loan Document or other request, instruction,
document or certificate which by any provision hereof is specifically required
to be furnished to the Custodian, the Custodian shall be under a duty to examine
the same in accordance with the requirements of this Custodial Agreement.
 
The Custodian undertakes to perform such duties and only such duties as are
specifically set forth in this Custodial Agreement. The Custodian shall not have
any duties or responsibilities except those expressly set forth in this
Custodial Agreement.
 
The Custodian shall not be liable for any error of judgment made in good faith
by an officer or officers of the Custodian, unless it shall be conclusively
determined by a court of competent jurisdiction that the Custodian was grossly
negligent in ascertaining the pertinent facts.
 
The Custodian shall not be liable with respect to any action taken or omitted to
be taken by it in good faith in accordance with any direction of the Seller or
Buyers given under this Custodial Agreement.
 
None of the provisions of this Custodial Agreement shall require the Custodian
to expend or risk its own funds or otherwise to incur any liability, financial
or otherwise, in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers if it shall have reasonable grounds for
believing that repayment of such funds or indemnity satisfactory to it against
such risk or liability is not assured to it.
 
The Custodian may consult with nationally recognized counsel and the written
advice or any written opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it
hereunder in good faith and in accordance with such advice or opinion of
counsel.
 
Any entity into which the Custodian may be merged or converted or with which it
may be consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Custodian shall be a party, or any entity succeeding
to the business of the Custodian shall be the successor of the Custodian
hereunder without the execution or filing of any paper with any parties hereto
or any further act on the part of any of the parties hereto except where an
instrument or transfer or assignment is required by law to effect such
succession, anything herein to the contrary notwithstanding.
 
Section 15.  Term of Custodial Agreement.
 
Promptly after written notice from Buyers of the termination of the Repurchase
Agreement and payment in full of all amounts owing to Buyers thereunder, the
Custodian shall deliver all documents remaining in the Mortgage Files to the
Seller, and this Custodial Agreement shall thereupon terminate.
 
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Section 16.  Notices.
 
All demands, notices and communications hereunder shall be in writing and shall
be deemed to have been duly given when received by the recipient party at the
address shown on its signature page hereto, or at such other addresses as may
hereafter be furnished to each of the other parties by like notice. Any such
demand, notice or communication hereunder shall be deemed to have been received
on the date delivered to or received at the premises of the addressee. Any
demand, notice or communication hereunder shall be (i) sent by telecopy, (ii)
delivered in person, (iii) transmitted by a recognized private (overnight)
courier service, or (iv) by Electronic Transmission. The Custodian’s office is
located at the address set forth on its signature page hereto, and each party
hereto agrees to notify each other party if its address should change.
 
Section 17.  GOVERNING LAW.
 
THIS CUSTODIAL AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).
 
Section 18.  Authorized Representatives.
 
Each individual designated as an authorized representative of a Buyer or its
successors or assigns, the Seller, the Guarantor and the Custodian, respectively
(an “Authorized Representative”), is authorized to give and receive notices,
requests and instructions and to deliver certificates and documents in
connection with this Custodial Agreement on behalf of Buyers, the Seller, the
Guarantor and the Custodian, as the case may be, and the specimen signature for
each such Authorized Representative, initially authorized hereunder, is set
forth on Annexes 6, 7, 8 and 9 hereof, respectively. From time to time, Buyers,
the Seller, the Guarantor or the Custodian or their respective successors or
permitted assigns may, by delivering to the others a revised annex, change the
information previously given pursuant to this Section 18, but each of the
parties hereto shall be entitled to rely conclusively on the then current annex
until receipt of a superseding annex.
 
Section 19.  Amendment.
 
This Custodial Agreement may be amended from time to time by written agreement
signed by the Seller, Guarantor, Buyers and the Custodian.
 
Section 20.  Cumulative Rights.
 
The rights, powers and remedies of the Custodian and Buyers under this Custodial
Agreement shall be in addition to all rights, powers and remedies given to the
Custodian and Buyers by virtue of any statute or rule of law, the Repurchase
Agreement or any other agreement, all of which rights, powers and remedies shall
be cumulative and may be exercised successively or concurrently without
impairing Buyers’ ownership or security interest in the Purchased Loans.
 
Section 21.  Binding Upon Successors.
 
Subject to the provisions of Section 25, all rights of the Custodian, the
Seller, Guarantor and Buyers under this Custodial Agreement shall inure to the
benefit of the Custodian, the Seller, Guarantor and Buyers and their successors
and permitted assigns.
 
17

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Section 22.  Entire Agreement; Severability.
 
This Custodial Agreement and the other Program Documents contain the entire
agreement with respect to the Purchased Loans among the Custodian, Buyers,
Guarantor and the Seller. If any of the provisions of this Custodial Agreement
shall be held invalid or unenforceable, this Custodial Agreement shall be
construed as if not containing such provisions, and the rights and obligations
of the parties hereto shall be construed and enforced accordingly.
 
Section 23.  Execution In Counterparts.
 
This Custodial Agreement may be executed in counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement.
 
Section 24.  Tax Reports.
 
The Custodian shall not be responsible for the preparation or filing of any
reports or returns relating to federal, state or local income taxes with respect
to this Custodial Agreement, other than in respect of the Custodian’s
compensation or for reimbursement of expenses.
 
Section 25.  Assignment.
 
This Agreement may not be assigned in whole or in part by Seller, Custodian or
Guarantor without the prior written consent of Buyers. Buyers shall have free
and unrestricted use of the Mortgage Loans and may engage in financing,
repurchase, purchase and sale, sale, or similar transactions with the Mortgage
Loans and otherwise pledge, repledge, transfer, hypothecate or rehypothecate the
Mortgage Loans and all rights of Buyers under the Repurchase Agreement (and this
Custodial Agreement) to any assignee designated by Buyers (each, an “Assignee”).
The Seller hereby irrevocably consents to any such assignment. Upon receipt of
written notice to the Custodian of any such assignment in the form attached
hereto as Annex 11, the Custodian shall mark its records to reflect the pledge
or assignment of the Mortgage Loans by Buyers to the Assignee. The Custodian’s
records shall reflect the pledge or assignment of the Mortgage Loans by Buyers
to the Assignee until such time as the Custodian receives written instructions
from the Buyer with consent from the Assignee that the Mortgage Loans are no
longer pledged or assigned by the Buyer to the Assignee, at which time the
Custodian shall change its records to reflect the release of the pledge or
assignment of the Mortgage Loans, and that the Custodian is holding the Mortgage
Loans, as custodian for, and for the benefit of, Buyers.
 
If at any time after a Buyer shall have made such an assignment or pledge, the
Assignee shall deliver to the Custodian a notice in the form of Annex 18 to the
Custodian of the Buyer’s default under an agreement between Buyer and Assignee
relating to the financing by Assignee of the Buyer’s advances with respect to
the Mortgage Loans (a “Default Notice”), Assignee may, subject to any
limitations in any such agreement between Assignee and such Buyer, (i) require
Custodian to act with respect to the related Mortgage Loans solely in the
capacity of custodian for, and bailee of, Assignee, but nevertheless subject to
and only in accordance with the terms of this Custodial Agreement, (ii) require
Custodian to hold such Mortgage Loans for the exclusive use and benefit of
Assignee, and (iii) assume the rights of the Buyer under this Agreement to
furnish instructions to the Custodian as to the disposition of such Mortgage
Loans and such rights shall be exercisable solely by Assignee. In adddition,
within three (3) Business Days of Custodian’s receipt of such Default Notice
executed by the Buyer and receipt by the Custodian of the Trust Receipt from the
Assignee, the Custodian shall deliver, in accordance with the written
instructions of the Assignee, a Trust Receipt issued in the name of the Assignee
and to the place indicated in any such written direction from the Assignee.
Custodian shall assume that any assignment from Buyer(s) to the Assignee is
subject to no limitations that are not expressly set forth in this Agreement.
Until such time as the Custodian receives a Default Notice that ther exists an
event of default with respect to a pledge or assignment of its interest in the
Mortgage Loans and Mortgage Files, the Custodian shall take directions solely
from Buyer and shall have no responsibility or obligation to accept,
achknowledge or act upon notice or communications from or otherwise deal in any
way with such Assignee.
 
18

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Section 26.  Transmission of Mortgage Files.
 
Prior to any shipment of any Mortgage Files, or other Mortgage Loan Documents
hereunder, the Seller shall deliver to the Custodian written instructions as to
the method of shipment and shipper(s) the Custodian is to utilize in connection
with the transmission of Mortgage Files or other Mortgage Loan Documents in the
performance of the Custodian’s duties hereunder. The Seller shall arrange for
the provision of such services at its sole cost and expense (or, at the
Custodian’s option, reimburse the Custodian for all costs and expenses incurred
by the Custodian consistent with such instructions) and will maintain such
insurance against loss or damage to Mortgage Files or other Mortgage Loan
Documents as the Seller deems appropriate. Without limiting the generality of
the provisions of Section 13 above, it is expressly agreed that in no event
shall the Custodian have any liability for any losses or damages to any person,
including without limitation, the Seller, arising out of actions of the
Custodian consistent with the instructions of the Seller. In the event the
Custodian does not receive such written instructions, the Custodian shall be
authorized and shall be indemnified as provided herein to utilize a nationally
recognized courier service.
 
Section 27.  SUBMISSION TO JURISDICTION; WAIVERS.
 
EACH OF BUYER, SELLER, GUARANTOR AND CUSTODIAN HEREBY IRREVOCABLY AND
UNCONDITIONALLY:
 
(a)  SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT AND THE OTHER PROGRAM DOCUMENTS, OR FOR RECOGNITION
AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF
MANHATTAN, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;
 
(b)  CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS
AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT
OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND
AGREES NOT TO PLEAD OR CLAIM THE SAME;
 
(c)  AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE
EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY
SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH
UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH EACH OTHER PARTY
HERETO SHALL HAVE BEEN NOTIFIED;
 
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(d)  AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN
ANY OTHER JURISDICTION; AND
 
(e)  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT, ANY OTHER REPURCHASE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.
 
Section 28.   Confidentiality.
 
Custodian hereby acknowledges and agrees that (i) all written or
computer-readable information provided by any Buyer or Seller regarding any
Buyer or Seller and (ii) the terms of this Agreement and the Repurchase
Agreement (the “Confidential Information”), shall be kept confidential and shall
not be divulged to any Person other than the parties hereto without the related
Buyer’s and Seller’s prior written consent except to the extent that (i)
Custodian reasonably deems necessary to do so in working with legal counsel,
auditors, taxing authorities or other governmental agencies or regulatory bodies
or in order to comply with any applicable federal or state laws, (ii) any
portion of the Confidential Information is in the public domain other than due
to a breach of this covenant by Custodian, or (iii) to the extent that Custodian
is required to disclose Confidential Information pursuant to the requirements of
any legal proceeding, Custodian shall notify each Buyer and Seller within one
(1) Business Day of its knowledge of such legally required disclosure so that
each Buyer or Seller may seek an appropriate protective order and/or waive
Custodian’s compliance with this Agreement. Notice shall be both by telephone
and in writing. In the absence of a protective order or waiver, Custodian may
disclose the relevant Confidential Information if, in the written opinion of its
counsel, failure to disclose such Confidential Information would subject
Custodian to liability for contempt, censure or other legal penalty or
liability.
 
[SIGNATURE PAGE FOLLOWS]
 
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IN WITNESS WHEREOF, this Custodial Agreement was duly executed by the parties
hereto as of the day and year first above written.

NYMC MORTGAGE LOAN CORPORATION,
as Seller
 
By: /s/ Steven B. Schnall
Name: Steven B. Schnall
Title: Chief Executive Officer
 
Address for Notices for the Seller:
 
1301 Avenue of the Americas
7th Floor
New York, New York 10019
Attention: Chief Executive Officer
Telephone No.: (212) 634-9400
Facsimile No.: (212) 655-6269
 
With a copy to:
Attention: General Counsel
Contact information as above.
 
NEW YORK MORTGAGE TRUST, INC.,
as Guarantor
 
By: /s/ Steven B. Schnall
Name: Steven B. Schnall
Title: Chief Executive Officer
 
Address for Notices for the Guarantor:
 
1301 Avenue of the Americas
7th Floor
New York, New York 10019
Attention: Chief Executive Officer
Telephone No.: (212) 634-9400
Facsimile No.: (212) 655-6269
 
With a copy to:
Attention: General Counsel
Contact information as above
 
LASALLE BANK NATIONAL ASSOCIATION,
as Custodian
 
By: /s/ Mark J. Jerva
Name: Mark J. Jerva
Title: Vice President
Address for Notices for the Custodian:
 
LaSalle Bank NA
Collateral Services
Attn: Mark J. Jerva
2571 Busse Rd. Suite 200
Elk Grove Village, IL 60007
Telephone No.: 847-766-6421
Facsimile No.: 847-766-3456
 
DB STRUCTURED PRODUCTS, INC.,
as Buyer
 
By: /s/ Vincent D'Amore
Name: Vincent D'Amore
Title: Authorized Signature
 
By: /s/ Frank Byrne
Name: Frank Byrne
Title: Managing Director
Address for Notices for the Buyers:
 
60 Wall Street
New York, NY 10005
Attention: Vincent D’Amore
Telephone No.: (212) 250-7328
Facsimile No.: (212) 797-5160

 

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ASPEN FUNDING CORP.,
as Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
 
NEWPORT FUNDING CORP., as Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 

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Annex 1
to Custodial Agreement
 
REQUIRED FIELDS FOR LOAN SCHEDULE
 
Global Asset Securitization
 
Asset-Backed Securities
 
Field List
     
***All Contracts***
***Variable Rate Contracts***
Loan Id
Gross Margin
Borrower Name
Minimum Rate
Property Street Address
Maximum Rate
Property City
Lifetime Rate Cap
Property State
Lifetime Rate Floor
Property Zip Code
Initial Periodic Rate Cap
Property County
Subsequent Periodic Rate Cap
Original Balance
Periodic Rate Floor
Current Balance
Periodic Payment Cap
Property Value
Negative Amortization Flag
Sales Price / BPO
Negative Amortization Cap
Original P&I
Initial Rate Teaser Period
Current P&I
Initial Payment Teaser Period
Payment Frequency
Rate Adjustment Period
Original Coupon
Payment Adjustment Period
Current Coupon
First Rate Adjustment Date
As-of / Cut-Off Date
First Payment Adjustment Date
Origination Date
Next Rate Adjustment Date
First Payment Date
Next Payment Adjustment Date
Maturity Date
Months to Next Rate Adjustment
Paid Thru Date or Next Payment Due Date
Months to Next Payment Adjustment
Original Term
 
Stated Remaining Term
 
Seasoning
 
Original Subject LTV
 
Current Subject LTV
 
Original Combined LTV (if any 2nd Liens)
 
Current Combined LTV (if any 2nd Liens)
 
Simultaneous Second (Y/N)
 
Senior Balance (if junior lien)
 
Junior Balance (if loan has simultaneous second)
 
Adjustment Type (Fixed or Adjustable)
 
Index Type (6 Month Libor, 1 Year CMT, etc.)
 
Product Type (6 month ARM, 2/28, 3/27, etc.)
 
Property Type
 
Number of Units
 
Occupancy Type
 
Purpose
 

 

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Documentation Level
 
Lien Position
 
Balloon Flag
 
PMI Company
 
PMI Coverage Level
 
Lender Paid MI (Y/N)
 
PMI Fee
 
Prepayment Penalty Term
 
Prepayment Penalty Number of Months Interest
 
Prepayment Detail
 
High Cost (Section 32) Loan
 
Delinquency Status
 
FICO or Credit Score
 
Credit Grade
 
Days Delinquent
 
Times 30 Days Delinquent over Last 1 Year
 
Times 60 Days Delinquent over Last 1 Year
 
Times 90 Days Delinquent over Last 1 Year
 
12 Months Pay History
 
Front Debt to Income Ratio
 
Back Debt to Income Ratio
 
MERS Identification Number if applicable
 

 

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Annex 1-A
To Custodial Agreement
 
REQUIRED FIELDS FOR LOAN SCHEDULE
WITH RESPECT TO WET-INK MORTGAGE LOANS

Field Name
 
Description
Loan Id
 
Client Loan Identification number right justified
Lname
 
Primary Borrower Name (Last, First)
LNAmount
 
Original Face Amount of Note
BankName
 
Name of Receiving Bank
Faddress
 
Funding Address
Fcity
 
Funding City
Fstate
 
Funding State
Filler1
 
1419663
AcctName
 
Account Name of Beneficiary
AcctPhone
 
Phone Number of Beneficiary
AcctAddress
 
Address of Beneficiary
ABANum
 
ABA Number
FundAmt
 
Wire Amount or Check Amount
Fundtext
 
Customer Account Number
FEFFDate
 
Funding Effective Date
FundRef
 
DB Disbursement A/C #
FNAME2
 
2nd fund wire Name
FCITY2
 
2nd fund wire City
MERS Identification Number
 
Number provided by MERS
Settlement Agent
 
Name of Settlement Agent

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Annex 2
to Custodial Agreement
 
[WET-INK MORTGAGE LOAN][DRY MORTGAGE LOAN] TRUST RECEIPT
 
Overnight Courier Tracking No.______
# of Loans:_______
Original Quantity $____
Product Type ______
 
DB Structured Products, Inc.
Aspen Funding Corp.
Newport Funding Corp.
60 Wall Street
New York, NY 10005
Attention: Vincent D’Amore
 

 
Re:
Custodial Agreement, dated as of December 13, 2005 (the “Custodial Agreement”),
among NYMC Loan Corporation, as Seller, New York Mortgage Trust, Inc., LaSalle
Bank National Association, as Custodian, and DB Structured Products, Inc.
(“DBSP”), Aspen Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and
collectively with DBSP and Aspen, the “Buyers” and individually a “Buyer”).

 
Ladies and Gentlemen:
 
In accordance with the provisions of Section 3 of the above-referenced Custodial
Agreement (capitalized terms not otherwise defined herein having the meanings
ascribed to them in the Custodial Agreement, or if not defined in the Custodial
Agreement, then in that certain Master Repurchase Agreement, dated as of
December 13, 2005 among the Seller, the Guarantor and the Buyers (the
“Repurchase Agreement”)), the undersigned, as the Custodian, hereby certifies as
to each Mortgage Loan described in the attached Loan Schedule and Exception
Report all matters (subject to the Exceptions listed therein) set forth in
Section 3 of the Custodial Agreement, subject to the limitation set forth in
Section 3(b) of the Custodial Agreement.
 
The delivery of this Trust Receipt and attached Loan Schedule and Exception
Report evidences that, other than the Exceptions listed as part of the Exception
Report (i) the Custodian has reviewed all documents required to be delivered in
respect of each Mortgage Loan listed herein pursuant to [FOR DRY LOANS:
[Sections 2(a)(i) and (ii)]] [FOR WET-INK LOANS: [Sections 2(a)(iii) - (vi)]] of
this Custodial Agreement [FOR DRY LOANS: [and the documents listed in Sections
(i), (ii), (iii), (iv) and (v) of Annex 16 (and if actually delivered to the
Custodian the documents listed in Sections (vi) - (xi of Annex 16)] [FOR WET-INK
LOANS; [ and the document listed in Section (xii) of Annex 16 (and if actually
delivered to the Custodian the documents listed in Section (i) - (xi) of Annex
16] and such documents other than the Exceptions listed herein are in the
possession of the Custodian as part of the Mortgage File for such Mortgage Loan,
(ii) the Custodian is holding each Mortgage Loan identified on the Loan Schedule
and Exception Report attached hereto, pursuant to the Custodial Agreement, as
the bailee of and custodian for the Buyer and (iii) such documents have been
reviewed by the Custodian and appear on their face to be regular and to relate
to such Mortgage Loan and satisfy the requirements set forth in Section 3(a) of
the Custodial Agreement and the Review Procedures.
 

--------------------------------------------------------------------------------

The Custodian makes no representations as to, and shall not be responsible to
verify, (i) the validity, legality, enforceability, due authorization,
recordability, sufficiency, or genuineness of any of the documents contained in
each Mortgage File or (ii) the collectability, insurability, effectiveness or
suitability of any such Mortgage Loan.
 
On each date the Custodian delivers to the Buyer a Trust Receipt, it shall
supersede the Trust Receipt, previously delivered by the Custodian to the Buyer
hereunder. The most recently delivered Trust Receipt, shall control and be
binding upon the parties hereto.
 
THIS TRUST RECEIPT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”). ANY RESALE OR TRANSFER OF THIS TRUST RECEIPT OR ANY
INTEREST HEREIN WITHOUT REGISTRATION HEREOF UNDER THE ACT MAY ONLY BE MADE IN A
TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT.
 

        LASALLE BANK NATIONAL ASSOCIATION,   as Custodian   
   
   
    By:      

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Name:   Title:

 

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Annex 3
to Custodial Agreement
 
FORM OF NOTICE OF SALE AND REQUEST FOR RELEASE
 
Date: __________, ____
 
The undersigned, NYMC Loan Corporation (the “Seller”), hereby provides notice of
the proposed sale of the below referenced mortgage loans to ____________________
(the “Approved Purchaser”). Such Mortgage Loans have previously been delivered
to LASALLE BANK NATIONAL ASSOCIATION acting as agent, bailee and custodian (in
such capacity “Custodian”) for the exclusive benefit of [DB STRUCTURED PRODUCTS,
INC.] [ASPEN FUNDING CORP.] [NEWPORT FUNDING CORP.] (the “Buyer”) pursuant to
the Custodial Agreement dated as of December 13, 2005 made by and among the
Seller, New York Mortgage Trust, Inc. (the “Guarantor”), the Custodian and DB
Structured Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport
Funding Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
individually a “Buyer”). The closing date for such sale is [________, ____] and
the anticipated purchase proceeds to be paid to the Buyer directly is
$[___________] (if amount is zero, remaining Purchased Loans are sufficient to
not result in a Margin Deficit).
 
The Seller requests release from the Custodian of the following described
documentation for the identified Mortgage Loans, possession of which shall be
delivered to the Approved Purchaser in connection with the sale thereof.

 
Mortgagor Name
 
Loan Number
 
Note Amount
 
Loan Document
Delivered
                                     

Please send the referenced documentation to:
 
[NAME OF APPROVED PURCHASER]
[ADDRESS]
[TELEPHONE]
[ATTENTION:]
 
Please deliver documents to the Approved Purchaser via __________________,
accompanied by a transmittal letter in the form of Annex 12.
 
Capitalized terms not otherwise defined herein are defined in that certain
Master Repurchase Agreement (the “Repurchase Agreement”), dated as of December
13, 2005, among the Sellers, the Guarantor and the Buyers.
 

        [_____________]  
   
   
    By:      

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Name:   Title:

 

--------------------------------------------------------------------------------

Acknowledged and Consented to as of this __ day of ________, 200 :
 
DB STRUCTURED PRODUCTS, INC.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
ASPEN FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
NEWPORT FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 

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Annex 4
to Custodial Agreement
 
REVIEW PROCEDURES
 
This Annex sets forth the Custodian’s review procedures for each item listed
below delivered by the Seller pursuant to the Custodial Agreement (the
“Agreement”) to which this Annex is attached. Capitalized terms used herein and
not defined herein shall have the meanings ascribed to them in the Agreement.
 
1.    The Mortgage Note and the Mortgage each appear to bear an original
signature or signatures purporting to be the signature or signatures of the
Person or Persons named as the maker and Mortgagor or grantor, or in the case of
copies of the Mortgage permitted under Section 2(b) of the Agreement, that such
copies bear a reproduction of such signature.
 
2.    The amount of the Mortgage Note is the same as the amount specified on the
related Mortgage and Mortgage Loan Schedule.
 
3.    The original mortgagee is the same as the payee on the Mortgage Note.
 
4.    The Mortgage contains a legal description other than address, city and
state on the first page and has evidence of recording thereon; provided that
Custodian shall have no responsibility for the accuracy or completeness of such
legal description.
 
5.    The notary section (acknowledgment) is present and attached to the related
Mortgage and is signed.
 
6.    None of the original Mortgage Note, the copy of the Mortgage delivered
pursuant to the Repurchase Agreement, or the original Assignment of Mortgage
contain any notations on their face which appear in the good faith judgment of
Custodian to evidence any claims, liens, security interests, encumbrances or
restrictions on transfer or any other alterations which appear irregular on
their face, or if altered, such alterations have the initials of the person(s)
named as the Mortgagor.
 
7.    The Mortgage Note is endorsed in blank by the original payor or the last
endorsee.
 
8.    Each original Assignment of Mortgage in blank and any intervening
assignment of mortgage, if applicable, appears to bear the original signature of
the named mortgagee or beneficiary including any subsequent assignors (and any
other necessary party), as applicable, or in the case of copies permitted under
Section 2(b) of the Agreement with respect to intervening Assignments of
Mortgage, that such copies appear to bear a reproduction of such signature or
signatures and such copies have been certified by an officer of the Seller, a
title company or escrow closing company as true, complete and correct copies of
any originals, and the intervening Assignments of Mortgage evidence a complete
chain of assignment and transfer of the related Mortgage from the originating
Person to the Seller or, in the case of a MERS Designated Mortgage Loan to MERS.
 
9.    The date of each intervening assignment is on or after the date of the
related Mortgage and/or the immediately preceding assignment, as the case may
be.
 
10.    The notary section (acknowledgment) is present and attached to each
intervening assignment and is signed.
 

--------------------------------------------------------------------------------

11.    Based upon a review of the Mortgage Note, the Mortgage Loan number, the
Mortgagor’s name, the address of the Mortgaged Property, the original amount of
the Mortgage Note, the original mortgage interest rate, the date of the Mortgage
Note, the first payment date and the maturity date and any other fields as
mutually agreed upon as set forth in the Loan Schedule delivered by the Seller
to the Custodian are correct.
 
12.    The Mortgage File contains the original policy of title insurance (or a
commitment for title insurance, if the policy is being held by the title
insurance company pending recordation of the Mortgage) or attorney’s opinion of
title.
 
13.    In the event that any of the Loans are MERS Designated Mortgage Loans,
with respect to each MERS Designated Mortgage Loan, Custodian shall verify the
“MERS Identification Number” by comparing such MERS Identification Number to the
information in the Mortgage/deed of trust. Custodian will rely solely on the
information provided by the Electronic Agent which information will be provided
to the Custodian in accordance with the Electronic Tracking Agreement.
 
In the case of Wet-Ink Mortgage Loans, with respect to which seven (7) or fewer
Business Days have passed from the related Purchase Date, the review procedures
shall be as follows:
 
1.    To the extent any items listed in Annex 16 are available, the procedures
set forth above.
 
2.    To the extent the items listed in Annex 16 are not available, the original
Transaction Notice with a loan listing attached has been received and matches
the facsimile copy previously delivered.
 
3.    The Escrow Letter is present.
 
4.    Based upon a review of the Escrow Letter, the loan amount, loan number (if
available), property address and closing agent’s name each match the information
listed in the corresponding field in the Loan Schedule.
 

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Annex 5
to Custodial Agreement
 
REQUEST FOR RELEASE AND RECEIPT
 
Date: __________, ____
 
The undersigned, NYMC Loan Corporation (the “Seller”), acknowledges receipt from
LASALLE BANK NATIONAL ASSOCIATION acting as bailee of, and custodian for, (in
such capacity, the “Custodian”) the exclusive benefit of [DB STRUCTURED
PRODUCTS, INC.] [ASPEN FUNDING CORP.] [NEWPORT FUNDING CORP.] (the “Buyer”)
(capitalized terms not otherwise defined herein are defined in that certain
Custodial Agreement, dated as of December 13, 2005 (the “Custodial Agreement”)
or if not defined in the Custodial Agreement, then in that certain Master
Repurchase Agreement dated as of December 13, 2005 among the Seller, New York
Mortgage Trust, Inc., as Guarantor and DB Structured Products, Inc. (“DBSP”),
Aspen Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively
with DBSP and Aspen, the “Buyers” and individually a “Buyer”) (the “Repurchase
Agreement”)), of the following described documentation for the identified
Mortgage Loan, possession of which is entrusted to the Seller solely for the
purpose referenced below:
 

 
Mortgagor Name
 
Loan Number
 
Note Amount
 
Mtg. Loan Document
                                     

Reason for Requesting File (check one)
 
_____ 1.    Mortgage Loan Paid in Full.
 
_____ 2.    Correction of Document Deficiencies.
 
_____ 3.    Mortgage Required for Servicing.
 
_____ 4.    Foreclosure.
 
_____ 5.    Other [Describe].
 
If item 2, 3, 4 or 5 is checked, it is hereby acknowledged that a security
interest pursuant to the Uniform Commercial Code in the Purchased Loans
hereinabove described and in the proceeds of said Purchased Loans has been
granted to the Buyer pursuant to the Repurchase Agreement.
 
If item 2, 3, 4 or 5 is checked, in consideration of the aforesaid delivery by
the Custodian, the Seller hereby agrees to hold said Purchased Loans in trust
for the Buyer as provided under and in accordance with all provisions of the
Custodial Agreement and to return said Purchased Loans to the Custodian no later
than the close of business on the tenth calendar day following the date hereof
or, if such day is not a Business Day, on the immediately succeeding Business
Day.
 
This request also constitutes a trust receipt. Seller herby promises and
declares to the Custodian and the Buyers that Seller will safeguard and hold the
Purchased Loans shipped to Seller pursuant to this request in trust, and as
agent and bailee, for the Buyers and the Buyers shall continue to have and
Seller will defend, a first and prior security interest in all such Purchased
Loans pursuant to the Repurchase Agreement.
 

--------------------------------------------------------------------------------

Please deliver the requested file to [ADDRESS], Attention: _____________, via
overnight courier.
 

        [_____________]  
   
   
    By:      

--------------------------------------------------------------------------------

Name:   Title:

 
[In the event that more than 5 Mortgage Files are being released.]
 
Acknowledged and Consented to as of this __ day of ____________, 200_:
 
DB STRUCTURED PRODUCTS, INC.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
ASPEN FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
NEWPORT FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Documents returned to Custodian:
 
______________________________________
 
By:___________________________________
  Name:
  Title:
 
Date:__________________________________
 

--------------------------------------------------------------------------------

Annex 6
to Custodial Agreement
 
AUTHORIZED REPRESENTATIVES OF BUYERS
 
 
 
DB STRUCTURED PRODUCTS, INC.:
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

       
 
ASPEN FUNDING CORP.:
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

 
 
NEWPORT FUNDING CORP.:
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

 

--------------------------------------------------------------------------------

Annex 7
to Custodial Agreement
 
AUTHORIZED REPRESENTATIVES OF SELLER
 
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

 

--------------------------------------------------------------------------------

Annex 8
to Custodial Agreement
 
 
AUTHORIZED REPRESENTATIVES OF GUARANTOR
 
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

 

--------------------------------------------------------------------------------

Annex 9
to Custodial Agreement
 
 
AUTHORIZED REPRESENTATIVES OF CUSTODIAN
 
 

Name    Specimen Signature       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________   
__________________________________       __________________________________  
__________________________________ 

 

--------------------------------------------------------------------------------

Annex 10
to Custodial Agreement
 
FORM OF LOST NOTE AFFIDAVIT
 
I, as ___________________________ (title) (hereinafter called “Deponent”) of
LASALLE BANK NATIONAL ASSOCIATION (the “Custodian”), am authorized to make this
Lost Note Affidavit (this “Affidavit”) on behalf of the Custodian. In connection
with the administration of the Mortgage Loans held by the Custodian on behalf of
[DB STRUCTURED PRODUCTS, INC.] [ASPEN FUNDING CORP.] [NEWPORT FUNDING CORP.]
(the “Buyer”), Deponent being duly sworn, deposes and says that:
 
1.    Custodian’s address is:
 
______________________
______________________
 
2.    Custodian previously delivered to the Buyer a Loan Schedule and Exception
Report and an Exception Report with respect to that certain Mortgage Note made
by ________, in favor of ________ in an original principal balance of $_______,
secured by a Mortgage on a property located at ___________, which did not
indicate such Mortgage Note is missing;
 
3.    Such Mortgage Note was assigned or sold to the Buyer by [_____________]
pursuant to the terms and provisions of a Master Repurchase Agreement dated and
effective as of December 13, 2005;
 
4.    Such Mortgage Note is not outstanding pursuant to a Request for Release of
Documents;
 
5.    Aforesaid Mortgage Note (hereinafter called the “Original”) has been lost;
 
6.    Deponent has made or has caused to be made diligent search for the
Original and has been unable to find or recover same;
 
7.    The Custodian was the Custodian of the Original at the time of loss;
 
8.    Deponent agrees that, if said Original should ever come into Custodian’s
possession, custody or power, Custodian will immediately and without
consideration surrender the Original to the Buyer;
 
9.    Attached hereto is a true and correct copy of (i) the Mortgage Note,
endorsed in blank by the Mortgagee, as provided by [_____________], or its
designee and (ii) the Mortgage which secures the Mortgage Note, which Mortgage
Note is recorded at __________________;
 
10.    Deponent hereby agrees that the Custodian (a) shall indemnify and hold
harmless the Buyer, its successors, and assigns, against any loss, liability or
damage, including reasonable attorney’s fees, resulting from the unavailability
of any Originals, including but not limited to any loss, liability or damage
arising from (i) any false statement contained in this Affidavit, (ii) any claim
of any party that it has already purchased a mortgage loan evidenced by the
Originals or any interest in such mortgage loan, (iii) any claim of any Buyer
with respect to the existence of terms of a Mortgage Loan evidenced by the
Originals, (iv) the issuance of new instrument in lieu thereof and (v) any claim
whether or not based upon or arising from honoring or refusing to honor the
Original when presented by anyone (items (i) through (iv) above are hereinafter
referred to as the “Losses”), and (b) if required by any rating agency in
connection with placing such Originals into a structured and rated transaction,
shall obtain a surety bond from an insurer acceptable to the applicable rating
agency in an amount acceptable to such rating agency to cover any Losses with
respect to such Originals
 

--------------------------------------------------------------------------------

11.    This Affidavit is intended to be relied on by the Buyer, its successors,
and assigns and the Custodian represents and warrants that it has the authority
to perform its obligations under this Affidavit.
 
 
EXECUTED THIS ____ day of _______, ____, on behalf of the Custodian by:
 
___________________________________
Signature
 
___________________________________
Typed Name
 
On this _________ day of _______________________, ____, before me appeared
____________________________________________, to me personally known, who being
duly sworn did say that she/he is the ______________________________ of
______________________, and that said Lost Note Affidavit was signed and sealed
on behalf of such corporation and said _____________________________
acknowledged this instrument to be the free act and deed of said corporation.
 
 
_____________________________________
Notary Public in and for the
State of ____________________________.
 
My Commission expires: _______________.
 

--------------------------------------------------------------------------------

Annex 11
to Custodial Agreement
 
NOTICE OF ASSIGNMENT
 
To: [_____________]
 
From: ___________________________________
Date: ___________________________________
 
You are hereby notified that as of [date] the undersigned has assigned all of
its right, title and interest in and to the Mortgage Loans identified in the
schedule attached hereto to [Assignee’s name and address]. You are hereby
instructed to hold such Mortgage Loans pursuant to the terms of the Custodial
Agreement, dated as of December 13, 2005 (the “Custodial Agreement”), among NYMC
Loan Corporation (the “Seller”), New York Mortgage Trust, Inc. (the
“Guarantor”), LaSalle Bank National Association (the “Custodian”) and DB
Structured Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport
Funding Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
individually a “Buyer”), for the sole and exclusive benefit of [name of
Assignee] subject to the terms of the Custodial Agreement by which [name of
Assignee] hereby agrees to be bound.
 
When you have received written instructions from the Buyer with the Assignee’s
consent thereon that the Mortgage Loans are no longer assigned by the Buyer to
the Assignee, you shall change your records to reflect the release of the pledge
of the Mortgage Loans and that you are holding the Mortgage Loans as custodian
for, and for the benefit of, the Buyer.
 
DB STRUCTURED PRODUCTS, INC., Buyer
 
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Date:
 
ASPEN FUNDING CORP., Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Date:
 

--------------------------------------------------------------------------------

NEWPORT FUNDING CORP., Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Date:
 
[NAME OF ASSIGNEE]
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Date:
 

--------------------------------------------------------------------------------

Annex 12
to Custodial Agreement
 
(THIRD PARTY) TRANSMITTAL LETTER
 
[Custodian Letterhead]
 
[Approved Purchaser]
__________________________
__________________________
 
Re: ______________________________
 
Ladies and Gentlemen:
 
Attached please find those Mortgage Loans listed separately on the attached
schedule, which Mortgage Loans are owned by _______________ and are being
delivered to you for purchase.
 
Capitalized terms used herein and not otherwise defined shall have the meanings
set forth in that certain Custodial Agreement dated as of December 13, 2005, by
and among NYMC Loan Corporation (the “Seller”), New York Mortgage Trust, Inc.
(the “Guarantor”), LaSalle Bank National Association (the “Custodian”) and DB
Structured Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport
Funding Corp. (“Newport” and collectively with DBSP and Aspen, the “Buyers” and
individually a “Buyer”), and if not defined in the Custodial Agreement, then in
that certain Master Repurchase Agreement (the “Repurchase Agreement”), dated as
of December 13, 2005, among the Sellers, the Guarantor and the Buyers.
 
The Mortgage Loans comprise a portion of the “Purchased Loans.” Each of the
Mortgage Loans is subject to an ownership and/or security interest in favor of
the Buyer, which security interest shall be automatically released upon
remittance of the purchase price for such Mortgage Loan (the “Payoff Amount”) by
wire transfer to the following account:
 
WIRE INSTRUCTIONS:
 
[Bank Name:
City, State:
 
ABA #:
Account #:
 
Account Name:
Attention:  ]
 
Pending the purchase of each Mortgage Loan and until the Payoff Amount is
received, the aforesaid ownership and/or security interest therein will remain
in full force and effect, and you shall hold possession of such Purchased Loans
and the documentation evidencing same as custodian, agent and bailee for and on
behalf of the Buyer. In the event that any Mortgage Loan is unacceptable for
purchase, return the rejected item directly to the Custodian at its address set
forth below. In no event shall any Mortgage Loan be returned to, or sales
proceeds remitted to, the Seller. The Mortgage Loan must be so returned or
Payoff Amount remitted in full no later than ten (10) days from the date hereof.
If you are unable to comply with the above instructions, please so advise the
undersigned Custodian immediately.
 

--------------------------------------------------------------------------------

NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS LETTER, YOU
CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE BUYER ON THE TERMS
DESCRIBED IN THIS LETTER. THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF
THE ENCLOSED MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE
ENCLOSED COPY OF THIS LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO
DOES NOT NULLIFY SUCH CONSENT.
 
 
Very truly yours,
 
______________________
as Custodian
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
Address: ___________________
  ___________________
 
DB STRUCTURED PRODUCTS, INC.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
ASPEN FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
NEWPORT FUNDING CORP.
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
 
RECEIPT ACKNOWLEDGED:
 
[APPROVED PURCHASER]
 
By________________________
Name:
Title:
Date: ________________

--------------------------------------------------------------------------------

Annex 13
to Custodial Agreement
ATTORNEY’S BAILEE LETTER
[Letterhead of Seller]
 
________ __, ____
 
Name of Attorney
[Address]
 

Custodian: 
LaSalle Bank National Association
2571 Busse Rd, Suite 200
Elk Grove Village, IL 60007
Attention: Mark Jerva
Facsmile No.: (847) 766-3456
Telephone No.: (847) 766-6421
 
    Buyer:
DB Structured Products, Inc.
Aspen Funding Corp.
Newport Funding Corp.
60 Wall Street
New York, NY 10005
Attention: Vincent D’Amore
Facsmile No.: (212) 797-5160
Telephone No.: (212) 250-7328
Seller:
NYMC Loan Corporation
1301 Avenue of the Americas
7th Floor
New York, NY 10019
Attn: Chief Executive Officer
Facsimile: (212)655-6269
Telephone: (212) 634-9400

 
Dear Sir or Madam:
 
From time to time, we, NYMC Loan Corporation (the “Seller”), will send to you
(or have sent to you) mortgage loans for which you have agreed to commence and
prosecute a foreclosure action. In connection with such foreclosure activities,
[copies of]1  one or more of the documents evidencing or otherwise relating to
such mortgage loans (“Documents”) will be delivered to you.
 
[DB Structured Products, Inc.] [Aspen Funding Corp.] [Newport Funding Corp.]
(the “Buyer”), has financed the sale to us or origination of such mortgage
loans, and with such sale or origination we granted an ownership and/or security
interest in the Documents referred to below and the mortgage loans to which such
Documents relate to the Buyer. LaSalle Bank National Association (the
“Custodian”) is acting as custodian for the Buyer in connection with the
Documents.
 
Whenever we send you Documents to be covered by this letter agreement, we will
send such Documents to you under a transmittal letter identifying the specific
documents delivered, and the mortgage loan(s) to which they relate, with a space
at the end of the letter for you to sign and to acknowledge your receipt of such
Documents. Upon your receipt of any such Documents, you hereby agree to fax to
the Buyer and the Custodian, no later than three (3) Business Days after your
receipt thereof, our transmittal letter, signed in the acknowledgment space by
you, pursuant to which you (i) acknowledge receipt of the Documents listed in
the transmittal letter, and (ii) acknowledge that with respect to such listed
documents you are acting as bailee of the Buyer in accordance with the terms of
this Attorney’s Bailee Letter.
 

--------------------------------------------------------------------------------

1    For Acceptable Attorneys to whom copies of the Documents are sent.
 

--------------------------------------------------------------------------------

By signing this letter agreement below where indicated, (a) you agree that on
and after the date hereof until you are otherwise notified by the Buyer or the
Custodian, any Documents delivered to you as described above will be held by you
as bailee for the Buyer, (b) you certify that, as of the date of your receipt of
any Documents, you have not received notice of any interest of any other person
or entity in such Documents or the related mortgage loans, (c) you agree that
you will commence and diligently prosecute foreclosure proceedings with respect
to the mortgage loan to which any such Documents relate and (d) you certify that
if either you or your law firm has any security interest in the Documents or the
mortgage loan to which those Documents relate you agree to waive any interest
you or your firm may acquire therein at any time, whether arising pursuant to
law or otherwise or to refuse delivery of such Documents and return them
immediately to the Custodian.
 
The Seller and the Buyer hereby irrevocably instruct you that any Documents in
your possession are to be held by you as bailee for the Buyer, as provided
herein until they are returned to the Custodian at the address noted above
together with a copy of this letter agreement; provided that if the Buyer or the
Custodian notifies you that the Buyer’s interest in any of above-referenced
mortgage loans has been released or did not attach (the “Release Notice”), from
the date of such Release Notice you will hold the Documents relating to such
mortgage loan (and no others) as bailee for the Seller, in which case you will
follow the Seller’s instructions regarding such Documents, and such Documents
shall be released to the Seller at the address noted above, or its designee,
upon conclusion of the foreclosure action, instead of returning them to the
Custodian; and provided further that prior to the date of any Release Notice,
notwithstanding anything herein or elsewhere to the contrary, if you receive
instructions from the Buyer or the Custodian which do not comport with
instructions you may have received from the Seller, including, without
limitation, instructions to deliver the Documents to the Custodian, the Buyer or
any other person or entity, you shall abide by the instructions of the Custodian
or Buyer.
 
You agree to immediately give telephonic notice (followed by written notice) to
the Custodian if you receive notice or any inquiry from any other person or
entity of or with respect to any interest in the Documents or the related
mortgage loan and you agree that you shall immediately notify each such person
in writing, with a copy to the Custodian, of the prior interest of the Buyer
therein.
 
This letter agreement supersedes any letter agreement or other agreement or
arrangement that may exist between you and the Seller. Notwithstanding any
contrary understanding with you, the Seller or any other person or entity, or
any instructions to you from the Seller, the Seller or any other person or
entity, you shall abide by the terms of this letter. No deviation in performance
of the terms of any previous letter agreement between you and any of the
undersigned shall alter any of your duties or responsibilities as set forth
herein.
 
Because time is of the essence, please promptly sign and date the enclosed copy
of this letter agreement and return it via overnight delivery service to the
Custodian at the above address and via telecopier, send a copy of this executed
letter agreement to the Seller. It is important that the Custodian receive a
copy of this letter agreement executed by you. Thank you for your cooperation in
assisting us with this project.
 

--------------------------------------------------------------------------------

NOTE: BY ACCEPTING THE MORTGAGE LOANS DELIVERED TO YOU WITH THIS LETTER, YOU
CONSENT TO BE THE CUSTODIAN, AGENT AND BAILEE FOR THE BUYER ON THE TERMS
DESCRIBED IN THIS LETTER. THE CUSTODIAN REQUESTS THAT YOU ACKNOWLEDGE RECEIPT OF
THE ENCLOSED MORTGAGE LOANS AND THIS LETTER BY SIGNING AND RETURNING THE
ENCLOSED COPY OF THIS LETTER TO THE CUSTODIAN; HOWEVER, YOUR FAILURE TO DO SO
DOES NOT NULLIFY SUCH CONSENT.
 
Very truly yours,
 
NYMC LOAN CORPORATION, Seller
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
DB STRUCTURED PRODUCTS, INC., Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
ASPEN FUNDING CORP., Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
NEWPORT FUNDING CORP., Buyer
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
ACKNOWLEDGED AND AGREED:
 
By:___________________________________
 
Print Name:_____________________________
 
Date:__________________________________
 

--------------------------------------------------------------------------------

Rider A
[Letterhead of _____________________]
 
________________ ___, _____
 
 
Name of Attorney
[Address]
 

Re:
Mortgagor:

 
Address of Property:

 
Loan Number:

 
Dear ___________________:
 
We refer to that certain letter (the “Attorney’s Bailee Letter”), dated
________________, ____, from us to you and signed by us and by DB Structured
Products, Inc. (“DBSP”), Aspen Funding Corp. (“Aspen”), Newport Funding Corp.
(“Newport” and collectively with DBSP and Aspen, the “Buyers” and individually a
“Buyer”), describing the terms under which you agreed to hold certain mortgage
loan documents to be sent to you from time to time under the Attorney’s Bailee
Letter.
 
The following documents evidencing or otherwise relating to the above-referenced
mortgage loans (collectively, the “Documents”) are being sent to you under cover
of this letter for the purpose of commencement and prosecution of a foreclosure
action:
 
[LIST ONLY THOSE DOCUMENTS THAT ARE BEING SENT]
 
 

 
(i)
The [original] [copy of the] Mortgage Note.

 

 
(ii)
The [original] [copy] of the guarantee executed in connection with the Mortgage
Note.

 

 
(iii)
The [original] [copy of the] Mortgage with evidence of recording thereon, or a
certified copy thereof.

 

 
(iv)
The [originals] [copies] of all assumption, modification, consolidation or
extension agreements (if any) with evidence of recording thereon, or certified
copies thereof.

 

 
(v)
An [original] [copy of the] Assignment of Mortgage to “LaSalle Bank National
Association, as Custodian”.

 

 
(vi)
The [originals] [copies] of [identify any particular] intervening assignments of
mortgage with evidence of recording thereon, or certified copies thereof.

 

 
(vii)
The [original] [copy of the] [attorney’s opinion of title and abstract of title]
or [the original mortgagee title insurance policy], [or if the original
mortgagee title insurance policy has not been issued, the irrevocable commitment
to issue the mortgagee title insurance policy [as marked by the title company or
its authorized agent]], [or the preliminary title report for appropriate
jurisdictions].

 

 
(viii)
The [original] [copy] of any security agreement, chattel mortgage or equivalent
document executed in connection with the Mortgage Loan.

 

--------------------------------------------------------------------------------

 
(ix)
The [original] [copy of the] power of attorney or other authorizing instrument
[with evidence of recording thereon].

 

 
(x)
[Identify any other documents which may be sent].

 
Please sign this letter in the space provided below to indicate your
acknowledgment of receipt of the documents listed above with respect to the
mortgage loan(s) identified above, and to confirm that you will hold such
documents as bailee for the Buyer under and in accordance with the terms of the
Attorney’s Bailee Letter. As required by the Attorney’s Bailee Letter, please
fax to the Buyer and the Custodian (with a copy to us), a copy of this letter
signed by you, not later than three (3) business days after your receipt of this
letter. We appreciate your cooperation.
 
 
Sincerely yours,
 
_________________________________
By:
Name:
Title:
 
ACKNOWLEDGMENT:
 
I acknowledge receipt of the Documents as listed above in this letter and of
notice of the ownership and/or security interests in such documents described in
the Attorney’s Bailee Letter referred to above. I confirm the certifications
made by me in the Attorney’s Bailee Letter with respect to such documents and
agree to act as bailee for the Buyer with respect to such documents on the terms
set forth in the Attorney’s Bailee Letter and to comply in all other respects
with the terms of the Attorney’s Bailee Letter.
 
 
Print Name:
 
Date:
 

--------------------------------------------------------------------------------

Annex 14
to Custodial Agreement

Exception Codes

               
0021
TYPED NAME AND/OR TITLE IS MISSING OR INCORRECT
0201
DATE IS MISSING OR INCORRECT
0202
FIRST ADJUST DATE IS MISSING OR INCORRECT
0203
AMOUNT IS INCORRECT
0204
MORTGAGE MARGIN IS MISSING OR INCORRECT
0205
ARM INDEX IS MISSING OR INCORRECT
0206
ARM ANNUAL CAP IS MISSING OR INCORRECT
0207
ARM LIFE CAP IS MISSING OR INCORRECT
0208
ARM FLOOR IS MISSING OR INCORRECT
0209
I/O PERIOD FROM I/O ADDENDUM IS MISSING OR INCORRECT
0210
I/O PYMT FROM I/O ADDENDUM IS MISSING OR INCORRECT
0211
PENALTY PD FROM PREPYMT ADDENDUM IS MISSING OR INCORRECT
0212
LATE CHARGE (DAY&%) AS "DAYS/%" IS MISSING OR INCORRECT
0213
ARMADJ DATE IS MISSING OR INCORRECT
0214
INITIAL CAP IS MISSING OR INCORRECT
0215
ARMLOOKBACK IS MISSING OR INCORRECT
0216
ARM ROUND PERCENTAGE IS MISSING OR INCORRECT
0217
PREPAYMENT NOTE ADDENDUM IS MISSING
0218
INTEREST ONLY ADDENDUM IS MISSING
0219
COMPLETE DATA NOT RECEIVED
0409
PROPERTY ADDRESS IS MISSING OR INCORRECT
0410
ZIP CODE IS INCORRECT
0411
MISC. INFORMATION
0700
SIGNATURE IS MISSING OR INCORRECT
0702
DOCUMENT IS MISSING
0703
BAILEE LETTER IS MISSING
0804
LENDER NAME IS MISSING OR INCORRECT
1000
STOCK POWER NOT EXECUTED IN BLANK
1604
ASSIGNEE IS MISSING OR DOES NOT AGREE WITH NOTE ENDORSEMENT
1605
ASSIGNOR IS MISSING OR DOES NOT AGREE WITH NOTE ENDORSEMENT
1608
REC. INFORMATION OR LEGAL DESC. IS MISSING OR DOES NOT AGREE
1613
ORIGINAL MORTGAGE AMOUNT IS MISSING OR INCORRECT
1614
MIN NUMBER IS MISSING ON MORTGAGE OR DEED OF TRUST
1615
MERS REGISTRATION NOT VERIFIED
1616
COPY OF RECORDED DOCUMENT IN FILE
1617
MIN NUMBER IS INCORRECT
1619
ORIGINAL IN FILE BUT NOT RECORDED
2309
NOTARY INFORMATION IS MISSING OR INCORRECT
2517
CORPORATE SEAL IS MISSING
2706
LOAN AMOUNT- ALPHA AND NUMERIC ARE MISSING OR DO NOT AGREE
2709
INTEREST RATE- ALPHA AND NUMERIC ARE MISSING OR DO NOT AGREE
3114
CASE NUMBER IS INCORRECT
3115
RIDER(S) REFERENCED HEREIN NOT ATTACHED

3303
INTEREST RATE IS MISSING OR INCORRECT

 

--------------------------------------------------------------------------------

 
3307
MONTHLY P&I IS MISSING OR INCORRECT
3310
CANCELLED ENDORSEMENT NOT INITIALED
3311
ENDORSEMENT(S) IS NOT SIGNED
3312
ENDORSEMENT(S) IS MISSING OR INCORRECT
3313
ENDORSEMENT(S) IS INCOMPLETE
3314
ENDORSEMENT TO TRUSTEE IS MISSING
3316
ENDORSEMENT LENDER NAME IS MISSING OR INCORRECT
3317
TYPING CORRECTIONS NOT INITIALED BY BORROWERS
3319
EXTRA ENDORSEMENT SHOULD BE CANCELLED
3406
DATE OF FIRST PAYMENT IS INCORRECT
3407
MATURITY DATE IS INCORRECT
3510
COPY ONLY IN FILE
3511
IMAGE ONLY
4182
LEGAL DESCRIPTION IS MISSING
4301
ASSIGNMENT IS NOT IN RECORDABLE FORM
4901
TITLE COMMITMENT OR PRELIMINARY REPORT IN FILE
4906
SCHEDULE A MTG. DESCRIPTION HAS INCORRECT MORTGAGE AMOUNT
4907
SCHEDULE A MTG DESCRIPTION HAS INCORRECT DATE OF MORTGAGE
4911
SCHEDULE A MTG DESCRIPTION HAS INCORRECT RECORDING DATE
4920
INSURED AMOUNT DOES NOT MATCH ORIGINAL AMOUNT ON MORTGAGE
4921
AGENT SIGNATURE MISSING ON TPOL
5307
CERTIFIED COPY OF DOCUMENT IN FILE
5339
OPEN ENDORSEMENT IS MISSING
5344
ENDORSEMENT(S) IS A COPY
5345
ENDORSEMENT(S) IS ILLEGIBLE
5348
DOCUMENT INCOMPLETE OR PAGES MISSING
5352
2 ORIGINAL NOTES IN FILE
5359
INVALID ENDORSEMENT CHAIN
5367
BORROWER'S SIGNATURE ILLEGIBLE
5368
FHA/VA PROOF OF INSURANCE SCREEN PRINT IN FILE
5369
LNA NOT IN PROPER FORM
6000
DOCUMENT FIELD IS MISSING OR INCORRECT
FINL
FINAL PACKAGE RECEIVED, REVIEWED AND REJECTED
 
 
 
 
 
 
 
 

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Annex 15
to Custodial Agreement
 
LIST OF UNAPPROVED SETTLEMENT AGENTS
 
None.
 

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Annex 16
to Custodial Agreement
 
MORTGAGE FILE SUBMISSION PACKAGE
 
With respect to each Mortgage Loan being offered by the Seller for sale to
Buyers, pursuant to the Repurchase Agreement, such Seller shall deliver and
release to Custodian the following documents:
 
(i)  Either (A) the original Mortgage Note bearing all intervening endorsements
from the originator to the Seller endorsed, “Pay to the order of ____________,
without recourse” and signed in the name of the last endorsee (the “Last
Endorsee”) by an authorized Person (in the event that the Loan was acquired by
the Last Endorsee in a merger, the signature must be in the following form:
“[Last Endorsee], successor by merger to [name of predecessor]”; in the event
that the Loan was acquired or originated by the Last Endorsee while doing
business under another name, the signature must be in the following form: “[Last
Endorsee], formerly known as [previous name]”) or (B) with respect to any lost
Mortgage Note, a lost note affidavit (with indemnification) stating that the
original Mortgage Note was lost or destroyed, together with a copy of such
Mortgage Note; (if applicable), the original assumption agreement, together with
the original of any surety agreement or guaranty agreement relating to the
Mortgage Note or any such assumption agreement, and if the Mortgage Note has
been signed by a third party on behalf of the Mortgagor, the original power of
attorney or other instrument that authorized and empowered such Entity to sign
or a copy of such power of attorney together with an officer's certificate from
the Seller (or a certificate from the county recorder's office or the Settlement
Agent) certifying that such copy presents a true and correct reproduction of the
original and that such original has been duly recorded or delivered for
recordation in the appropriate records of the jurisdiction in which the related
Mortgaged Property is located;
 
(ii)  A Mortgage meeting one of the following requirements:
 
(A)    The original Mortgage bearing evidence that the Mortgage has been duly
recorded in the records of the jurisdiction in which the Mortgaged Property is
located; or
 
(B)    If the original Mortgage has been submitted for recordation, a copy of
the Mortgage together with either (i) an officer's certificate of the Seller,
Settlement Agent, title company or escrow closing company (which may be a
blanket officer's certificate of the Seller covering all such Mortgage Loans),
or (ii) a certificate from the county recorder's office, certifying that such
copy represents a true and correct reproduction of the original, or (iii) a
stamped certificate from the related title company or Settlement Agent
certifying that such copy represents a true and correct reproduction of the
original, in such case that such original has been duly recorded or delivered
for recordation in the appropriate records of the jurisdiction in which the
Mortgaged Property is located, and, with respect to MERS Designated Mortgage
Loans, if any, the Mortgage names MERS as the “mortgagee” or “beneficiary”
thereof and the Custodian has confirmed that each MERS Designated Mortgage Loan
has been issued a MERS Identification Number. A conformed recorded copy will
follow as soon as the same is received by the Seller;
 
 
(iii)  All original intervening Assignments or Mortgage duly executed and
acknowledged and in recordable form, evidencing the unbroken chain of mortgage
assignments from the originator of the Mortgage Loan to the Last Endorsee, or in
the case of a MERS Designated Mortgage Loan to MERS, and/or if any such
intervening Assignment of Mortgage has been submitted for recordation, a copy of
each such intervening Assignment of Mortgage, together with either (i) an
officer’s certificate of the Seller, Settlement Agent, title company or escrow
closing company (which may be a blanket officer’s certificate of the Seller
covering all such Mortgage Loans), (ii) a certificate from the recorder’s
office, certifying that such copy represents a true and correct reproduction of
the original, or (iii) a stamped certificate from the related title company,
Settlement Agent or escrow closing company certifying that such copy represents
a true and correct reproduction of the original, in such case that such original
has been duly recorded or delivered for recordation in the appropriate records
of the jurisdiction in which the Mortgaged Property is located;
 

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(iv)  Except with respect to a MERS Designated Mortgage Loan, an original
Assignment of Mortgage to “_________________”, in form and substance acceptable
for recording and signed in the name of the Last Endorsee (in the event that the
Loan was acquired by the Last Endorsee in a merger, the signature must be in the
following form: “[Last Endorsee], successor by merger to [name of predecessor]
“; in the event that the Loan was acquired or originated while doing business
under another name, the signature must be in the following form: “[Last
Endorsee], formerly known as [previous name]”), in recordable form; provided,
however that no such Assignment of Mortgage shall be required to be delivered or
recorded if the related Mortgage names the Custodian, as mortgagee (or as
beneficiary if the related Mortgage is a deed of Trust or similar instrument)
and such Mortgage specifies that the Custodian assumes no duties,
responsibilities or liabilities as an originator or Buyer in respect of such
Mortgage;
 
(v)  the original or certified copy of the policy of title insurance (or a
commitment for title insurance, if the policy is being held by the title
insurance company pending recordation of the Mortgage) or attorney’s opinion of
title;
 
(vi)  the blanket assignment of all other collateral securing the Loan,
including all rights under applicable guarantees and insurance policies, if any;
 
(vii)  the original of the guarantee executed in connection with the Mortgage
Note, if any;
 
(viii)  the original of any security agreement, chattel mortgage or equivalent
document executed in connection with the Mortgage Loan, if any;
 
(ix)  the certificate of the secured creditor impaired property insurance policy
or the commercial real estate pollution liability insurance policy, if any,
issued with respect to such Mortgage Loan;
 
(x)  the original power of attorney, if any;
 
(xi)  an original executed copy of the Uniform Commercial Code (UCC) financing
statement (UCC-1), if any, and, an original, if any, UCC financing statement
changes (UCC-3), bearing the file stamp of the relevant filing office(s) and a
certified copy of the assignment of the UCC financing statement (UCC-3) from the
Last Endorsee in blank; and
 
(xii)  the Escrow Letter.
 

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Annex 17
to Custodial Agreement
 
 
FORM OF ESCROW LETTER
[Date]
 
[Name of Settlement Agent]
[Street Address]
[City, State and Zip Code]
[Attn: ____________]
 
 
Re:    Master Repurchase Agreement, dated as of December 13, 2005 (the
“Repurchase Agreement”), by and among NYMC Loan Corporation as Seller, New York
Mortgage Trust, Inc., as Guarantor and DB Structured Products, Inc. (“DBSP”),
Aspen Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively
with DBSP and Aspen, the “Buyers” and individually a “Buyer”).
 
The following loan is scheduled to fund today:
 
Loan Amount: [  ]
 
Loan Number (if applicable): [  ]
 
Property Address: [  ]
 
If the mortgage loan is not funded by 5:00 p.m. New York City time on the
business day on which you receive the closing funds, you are to return the
closing funds via federal funds wire transfer to the related Buyer, no later
than 5:00 p.m. New York time on the following business day, as follows:
 
ABA: 026-003-780
Acct #: 10-642785-0008
Acct. Name: Newport Funding Corp.
Attn: Siegfried Rader Ph. 212-474-7737
 
ABA: 026-003-780
Acct #: 10-536680-0008
Acct. Name: Aspen Funding Corp.
Attn: Siegfried Rader Ph. 212-474-7737
 
ABA:
Acct #:
Acct Name: DPX
Attn: Roger Smith Ph: 212-474-8453
 
Very truly yours,
 
NYMC LOAN CORPORATION
 
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 

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ACKNOWLEDGED AND AGREED:
 
[Settlement Agent]
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 

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Annex 18
to Custodial Agreement
 
 
[NOTICE BY ASSIGNEE TO CUSTODIAN OF
THE BUYER’S DEFAULT]
[Date]
 
[Custodian]
 
[Address]
 
 

 
Re:
Default by Buyer

 
Notice is hereby given that _____________________ (the “Buyer”) has materially
defaulted in its obligations under an agreement between Assignee and the Buyer
relating to the financing by Assignee of the Buyer’s advances with respect to
the Mortgage Loans described on Schedule 1 hereto. Assignee hereby (i) directs
that Custodian act with respect to the related mortgage files solely in the
capacity of custodian for, and bailee of, Assignee, (ii) directs that Custodian
hold such mortgage files solely for the exclusive use and benefit of Assignee
and (iii) assumes the rights of the Buyer to furnish instructions to the
Custodian as to the disposition of such mortgage files and such rights shall be
exercisable solely by Assignee.
 
Please acknowledge the foregoing by signing below and returing a copy of this
notice to us at [address].
 
 
Very truly yours,
 
NYMC LOAN CORPORATION
 
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
[ASSIGNEE]
 
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
RECEIPT ACKNOWLEDGED:
 
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 
cc: [Buyer]
 

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EXHIBIT A
 
FORM OF TRANSACTION NOTICE
 
____________, 200_
 
DB Structured Products, Inc.
Aspen Funding Corp.
Newport Funding Corp.
60 Wall Street
New York, NY 10005
Attention: Vincent D’Amore
 
Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705
Attention: Trust Administration-NS03DA
 
LaSalle Bank National Association
__________________
__________________
Attention: __________________
 
Transaction No._____________
 
Ladies and Gentlemen:
 
The undersigned executes and delivers this notice (the “Notice”) pursuant to the
requirements of the Master Repurchase Agreement, dated as of December 13, 2005
(the “Repurchase Agreement”), among DB Structured Products, Inc. (“DBSP”), Aspen
Funding Corp. (“Aspen”), Newport Funding Corp. (“Newport” and collectively with
DBSP and Aspen, the “Buyers” and individually a “Buyer”), NYMC Loan Corporation
as Seller (the “Seller”) and New York Mortgage Trust, Inc. as Guarantor, in
connection with the submission for sale thereunder on _________ __, 200__ (the
“Purchase Date”) of the Purchased Loans identified on the Schedule attached
hereto. All capitalized terms used in this Notice without definition shall have
the same meanings herein as they have in the Repurchase Agreement.
 
The Seller hereby represents and certifies to [DB Structured Products, Inc.]
[Aspen Funding Corp.] [Newport Funding Corp.] (the “Buyer”) as follows:
 
1.    As of this date, the Seller is in compliance with all of the terms and
conditions of the Program Documents.
 
2.    The Seller’s representations and warranties set forth in the Program
Documents are true and accurate as of the date of this Notice.
 
3.    All of the conditions set forth in Section 10 of the Repurchase Agreement
to the proposed Transaction to which this Notice relates have been satisfied.
 

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4.    Upon payment by Buyer of the Purchase Price in respect of the Transaction
involving the Purchased Loans, all of the right (including the power to convey
title thereto), title and interest in and to each Purchased Loan shall be
transferred, assigned, set over and otherwise conveyed to the Buyer.
 
5.    [There are no security interests relating to or affecting any or all of
the Purchased Loans.][Prior to the sale of the Purchased Loans pursuant to the
Repurchase Agreement, [________________] had a security interest in such
Purchased Loans and has entered into a Security Release Certification, the
original of which is attached hereto.]
 
6.    The general terms of the sale are:
 
A.    Aggregate outstanding principal balance of the Purchased Loans  as of the
Purchase Date: _________
 
B.    Purchase Date: ___________
 
C.    Pricing Rate: ___________
 
D.    Total outstanding Purchase Price of all Transactions under the Repurchase
Agreement: ___________
 
E.    Aggregate original principal balance of Purchased Loans: __________
 
Wire Instructions For Seller:
 
[Bank Name:
City, State:
 
ABA #:
Account #:
 
Account Name:
Attention:  ]
 
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Notice
as of the date first above written.
 
NYMC LOAN CORPORATION, as Seller
 
By:___________________________________
Name:_________________________________
Title:__________________________________
 

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