exv10w24



 





Exhibit 10.24





 

 


INDENTURE




between




OPTION ONE OWNER TRUST 2007-5A

as Issuer



and




WELLS FARGO BANK, N.A.

as Indenture Trustee




Dated as of January 1, 2007




OPTION ONE OWNER TRUST 2007-5A

MORTGAGE-BACKED NOTES





 

 




 









 





	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 
	DEFINITIONS

	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	2	 
	Section 1.02 Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	GENERAL PROVISIONS WITH RESPECT TO THE NOTES

	 
	 	 	 	 
	Section 2.01 Method of Issuance and Form of Notes
	 	 	9	 
	Section 2.02 Execution, Authentication, Delivery and Dating
	 	 	9	 
	Section 2.03 Registration; Registration of Transfer and Exchange
	 	 	10	 
	Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes
	 	 	11	 
	Section 2.05 Persons Deemed Noteholders
	 	 	12	 
	Section 2.06 Payment of Principal and/or Interest; Defaulted Interest
	 	 	12	 
	Section 2.07 Cancellation
	 	 	12	 
	Section 2.08 Conditions Precedent to the Authentication of the Notes
	 	 	13	 
	Section 2.09 Release of Collateral
	 	 	14	 
	Section 2.10 Additional Note Principal Balance
	 	 	15	 
	Section 2.11 Tax Treatment
	 	 	15	 
	Section 2.12 Limitations on Transfer of the Notes
	 	 	15	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	COVENANTS
	 
	 	 	 	 
	Section 3.01 Payment of Principal and/or Interest
	 	 	16	 
	Section 3.02 Maintenance of Office or Agency
	 	 	16	 
	Section 3.03 Money for Payments to Be Held in Trust
	 	 	16	 
	Section 3.04 Existence
	 	 	18	 
	Section 3.05 Protection of Collateral
	 	 	18	 
	Section 3.06 Negative Covenants
	 	 	19	 
	Section 3.07 Performance of Obligations; Servicing of Loans
	 	 	20	 
	Section 3.08 Reserved
	 	 	21	 
	Section 3.09 Annual Statement as to Compliance
	 	 	21	 
	Section 3.10 Covenants of the Issuer
	 	 	21	 
	Section 3.11 Servicer’s Obligations
	 	 	22	 
	Section 3.12 Restricted Payments
	 	 	22	 
	Section 3.13 Treatment of Notes as Debt for All Purposes
	 	 	22	 
	Section 3.14 Notice of Events of Default
	 	 	22	 
	Section 3.15 Further Instruments and Acts
	 	 	22	 






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	ARTICLE IV

	 
	 	 	 	 
	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	Section 4.01 Satisfaction and Discharge of Indenture
	 	 	22	 
	Section 4.02 Application of Trust Money
	 	 	24	 
	Section 4.03 Repayment of Moneys Held by Paying Agent
	 	 	24	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	REMEDIES

	 
	 	 	 	 
	Section 5.01 Events of Default
	 	 	24	 
	Section 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	26	 
	Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee

	 	 	26	 
	Section 5.04 Remedies; Priorities
	 	 	28	 
	Section 5.05 Optional Preservation of the Collateral
	 	 	30	 
	Section 5.06 Limitation of Suits
	 	 	30	 
	Section 5.07 Unconditional Rights of Noteholders to Receive Principal and/or Interest
	 	 	31	 
	Section 5.08 Restoration of Rights and Remedies
	 	 	31	 
	Section 5.09 Rights and Remedies Cumulative
	 	 	31	 
	Section 5.10 Delay or Omission Not a Waiver
	 	 	31	 
	Section 5.11 Control by Noteholders
	 	 	32	 
	Section 5.12 Waiver of Past Defaults
	 	 	32	 
	Section 5.13 Undertaking for Costs
	 	 	33	 
	Section 5.14 Waiver of Stay or Extension Laws
	 	 	33	 
	Section 5.15 Action on Notes
	 	 	33	 
	Section 5.16 Performance and Enforcement of Certain Obligations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	THE INDENTURE TRUSTEE

	 
	 	 	 	 
	Section 6.01 Duties of Indenture Trustee
	 	 	34	 
	Section 6.02 Rights of Indenture Trustee
	 	 	35	 
	Section 6.03 Individual Rights of Indenture Trustee
	 	 	36	 
	Section 6.04 Indenture Trustee’s Disclaimer
	 	 	36	 
	Section 6.05 Notices of Default
	 	 	36	 
	Section 6.06 Reports by Indenture Trustee to Holders
	 	 	36	 
	Section 6.07 Compensation and Indemnity
	 	 	36	 
	Section 6.08 Replacement of Indenture Trustee
	 	 	37	 
	Section 6.09 Successor Indenture Trustee by Merger
	 	 	38	 
	Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 	 	38	 
	Section 6.11 Eligibility
	 	 	40	 






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	ARTICLE VII

	 
	 	 	 	 
	NOTEHOLDERS’ LISTS AND REPORTS

	 
	 	 	 	 
	Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders
	 	 	40	 
	Section 7.02 Preservation of Information
	 	 	40	 
	Section 7.03 144A Information
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	ACCOUNTS, DISBURSEMENTS AND RELEASES

	 
	 	 	 	 
	Section 8.01 Collection of Money
	 	 	40	 
	Section 8.02 Trust Accounts; Distributions
	 	 	41	 
	Section 8.03 General Provisions Regarding Trust Accounts
	 	 	41	 
	Section 8.04 The Paying Agent
	 	 	42	 
	Section 8.05 Release of Collateral
	 	 	42	 
	Section 8.06 Opinion of Counsel
	 	 	43	 
	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 
	Section 9.01 Supplemental Indentures Without the Consent of the Noteholders
	 	 	43	 
	Section 9.02 Supplemental Indentures with Consent of Noteholders
	 	 	44	 
	Section 9.03 Execution of Supplemental Indentures
	 	 	45	 
	Section 9.04 Effect of Supplemental Indentures
	 	 	45	 
	Section 9.05 Reference in Notes to Supplemental Indentures
	 	 	45	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	REDEMPTION OF NOTES; PUT OPTION

	 
	 	 	 	 
	Section 10.01 Redemption
	 	 	46	 
	Section 10.02 Form of Redemption Notice
	 	 	46	 
	Section 10.03 Notes Payable on Redemption Date
	 	 	46	 
	Section 10.04 Put Option
	 	 	47	 
	Section 10.05 Form of Put Option Notice
	 	 	47	 
	Section 10.06 Notes Payable on Put Date
	 	 	47	 
	 
	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 11.01 Compliance Certificates and Opinions, etc.
	 	 	47	 
	Section 11.02 Form of Documents Delivered to Indenture Trustee
	 	 	48	 
	Section 11.03 Acts of Noteholders
	 	 	48	 
	Section 11.04 Notices, etc., to Indenture Trustee and Issuer
	 	 	49	 






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	Section 11.05 Notices to Noteholders; Waiver
	 	 	49	 
	Section 11.06 Effect of Headings and Table of Contents
	 	 	50	 
	Section 11.07 Successors and Assigns
	 	 	50	 
	Section 11.08 Separability
	 	 	50	 
	Section 11.09 Benefits of Indenture
	 	 	50	 
	Section 11.10 Legal Holidays
	 	 	50	 
	Section 11.11 GOVERNING LAW
	 	 	50	 
	Section 11.12 Counterparts
	 	 	50	 
	Section 11.13 Recording of Indenture
	 	 	50	 
	Section 11.14 Trust Obligation
	 	 	51	 
	Section 11.15 No Petition
	 	 	51	 
	Section 11.16 Inspection
	 	 	51	 
	Section 11.17 Limitation on Liability
	 	 	51	 






EXHIBITS




EXHIBIT A    Form of Notes



EXHIBIT B-1 Form of Rule 144A Transferor Certificate



EXHIBIT B-2 Form of Transferee Certificate for Institutional Accredited Investor



EXHIBIT B-3 Form of Rule 144A Transferee Certificate



EXHIBIT C    Form of Securities Legend



iv









 








INDENTURE




          INDENTURE dated as of January 1, 2007 (the “Indenture”), between OPTION ONE OWNER TRUST
2007-5A, a Delaware statutory trust, as Issuer (the “Issuer”), and WELLS FARGO BANK, N.A., as
Indenture Trustee (the “Indenture Trustee”).




W I T N E S S E T H T H A T:




          In consideration of the mutual covenants herein contained, the Issuer has duly authorized the
execution and delivery of this Indenture to provide for the issuance of Notes, issuable as provided
in this Indenture. All covenants and agreements made by the Issuer herein are for the benefit and
security of the Noteholders.




GRANTING CLAUSE




          Subject to the terms of this Indenture, the Issuer hereby Grants on the Closing Date, to the
Indenture Trustee, as Indenture Trustee for the benefit of the Noteholders, all of the Issuer’s
right, title and interest, whether now owned or hereafter acquired, in and to: (i) such Loans as
from time to time are subject to the Sale and Servicing Agreement as listed in the Loan Schedule,
as the same may be amended or supplemented on each Transfer Date and by the removal of Deleted
Loans and Unqualified Loans and by the addition of Qualified Substitute Loans, together with the
Servicer’s Loan Files and the Custodial Loan Files relating thereto and all proceeds thereof, (ii)
the Mortgages and security interests in the Mortgaged Properties, (iii) all payments in respect of
interest and principal with respect to each Loan received on or after the related Transfer Cut-off
Date, (iv) such assets as from time to time are identified as Foreclosure Property, (v) such assets
and funds as are from time to time deposited in or credited to the Distribution Account, Collection
Account and the Transfer Obligation Account, including, without limitation, amounts on deposit in
or credited to such accounts that are invested in Permitted Investments (including, without
limitation, all security entitlements (as defined in Section 8-102(17) of the UCC) of the Issuer
therein), (vi) lenders’ rights under all Mortgage Insurance Policies and to any Mortgage Insurance
Proceeds, (vii) Net Liquidation Proceeds and Released Mortgaged Property Proceeds, (viii) all
right, title and interest of the Trust (but none of the obligations) in and to the obligations of
Hedging Counterparties under Hedging Instruments; (ix) all right, title and interest of each of the
Depositor, the Loan Originators and the Trust in and under the Basic Documents including, without
limitation, the obligations of the Loan Originators under the Loan Purchase and Contribution
Agreement and/or the Master Disposition Confirmation Agreement, and all proceeds of any of the
foregoing, (x) all right, title and interest of the Issuer in and to the Sale and Servicing
Agreement, including the Issuer’s right to cause either Loan Originator to repurchase related Loans
from the Issuer under certain circumstances described therein, (xi) all other Property of the Trust
from time to time and (xii) all present and future claims, demands, causes of action and choses in
action in respect of any or all of the foregoing and all payments on or under and all
proceeds of every kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other
liquid property, all cash and noncash proceeds (each as defined in Section 9-102(a) of the UCC),
accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
insurance proceeds, payment intangibles, securities accounts, condemnation awards, rights to
payment of any and every kind and other forms of




 









 








obligations and receivables, instruments and other property which at any time constitute all or
part of or are included in the proceeds of any of the foregoing
(collectively, the “Collateral”).



          The foregoing Grant is made in trust to secure the payment of principal of and interest on,
and any other amounts owing in respect of, the Notes, and to secure compliance with the provisions
of this Indenture, all as provided in this Indenture.




          The Indenture Trustee, as Indenture Trustee on behalf of the Noteholders, acknowledges such
Grant, accepts the trusts hereunder and agrees to perform its duties required in this Indenture to
the best of its ability to the end that the interests of the Noteholders may adequately and
effectively be protected.




ARTICLE I




DEFINITIONS




          Section 1.01 Definitions. (a) Except as otherwise specified herein, the following
terms have the respective meanings set forth below for all purposes of this Indenture.




          “Act” has the meaning specified in Section 11.03(a) hereof.




          “Additional Note Principal Balance” As defined in the Sale and Servicing Agreement.




          “Administration Agreement” means the Administration Agreement dated as of January 1,
2007, between the Issuer and the Administrator.




          “Administrator” means Option One Mortgage Corporation, or any successor Administrator
under the Administration Agreement.




          “Authorized Officer” means, with respect to the Issuer, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who
is identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from time to time
thereafter) and, so long as the Administration Agreement is in effect, any Vice President or more
senior officer of the Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration
Agreement and who is identified on the list of Authorized Officers delivered by the Administrator
to the
Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time
to time thereafter).




          “Basic Documents” As defined in the Sale and Servicing Agreement.




          “Certificate of Trust” means the certificate of trust of the Issuer substantially in
the form of Exhibit C to the Trust Agreement.




          “Change of Control” means the acquisition by any Person, or two or more Persons
acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities




2









 








and Exchange Commission under the Securities Exchange Act of 1934) of outstanding shares of voting
stock of either Loan Originator at any time if after giving effect to such acquisition (i) such
Person or Persons owns twenty percent (20%) or more of such outstanding voting stock or (ii) H&R
Block, Inc. does not own more than fifty percent (50%) of such outstanding shares of voting stock.



          “Clean-up Call Date” As defined in the Sale and Servicing Agreement.




          “Closing”
means January 31, 2007.


          “Collateral” has the meaning specified in
the Granting Clause of this Indenture.


          “Commission” means the Securities and
Exchange Commission.




          “Corporate Trust Office” means the principal office of the Indenture Trustee at which
at any particular time its corporate trust business shall be administered, which office at date of
execution of this Indenture is located, for note transfer purposes, at Sixth Street and Marquette
Avenue, Minneapolis, Minnesota 55479, Attention: Option One Owner Trust 2007-5A, telecopy number:
(612) 667-6282, telephone number: (800) 344-5128, and for all other purposes, at 9062 Old Annapolis
Road, Columbia, Maryland 21045, Attention: Option One Owner Trust 2007-5A, telecopy number: (410)
715-2380, telephone number: (410) 884-2000, or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or the principal corporate
trust office of any successor Indenture Trustee at the address designated by such successor
Indenture Trustee by notice to the Noteholders and the Issuer.




          “Default” means any occurrence that is, or with notice or the lapse of time or both
would become, an Event of Default.




          “Depositor” shall mean Option One Loan Warehouse Corporation, a Delaware corporation;
in its capacity as depositor under the Sale and Servicing Agreement, or any successor in interest
thereto.




          “Depository Institution” means any depository institution or trust company, including
the Indenture Trustee, that (a) is incorporated under the laws of the United States of America or
any State thereof, (b) is subject to supervision and examination by federal or state banking
authorities and (c) has outstanding unsecured commercial paper or other short-term unsecured debt
obligations that are rated at a rating
to which the Majority Noteholders consent in writing.




          “Event of Default” has the meaning specified in Section 5.01 hereof.




          “Exchange Act” means the Securities Exchange Act of 1934, as amended.




          “Executive Officer” means, with respect to (i) the Depositor, the Servicer, the Loan
Originators or any Affiliate of any of the foregoing, the President, any Vice President or the
Treasurer of such corporation; and with respect to any partnership, any general partner thereof,
(ii) the Note Registrar, any Responsible Officer of the Indenture Trustee, (iii) any other




3









 








corporation, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary or the Treasurer of such
entity and (iv) any partnership, any general partner thereof.



          “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a lien upon and a security interest in and right of
set-off against, deposit, set over and confirm pursuant to this Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal and interest
payments in respect of the Collateral and all other moneys payable thereunder, to give and receive
notices and other communications, to make waivers or other agreements, to exercise all rights and
options, to bring Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or receive thereunder or
with respect thereto.




          “Holder” means the Person in whose name a Note is registered on the Note Register.




          “ICA Owner” means “beneficial owner” as such term is used in Section 3(c)(1) of the
Investment Company Act of 1940, as amended (other than any persons who are excluded from such term
or from the 100-beneficial owner test of Section 3(c)(1) by law or regulations adopted by the
Securities and Exchange Commission).




          “Indenture” means this Indenture and any amendments hereto.




          “Indenture Trustee” means Wells Fargo Bank, N.A., a national banking association, as
Indenture Trustee under this Indenture, or any successor Indenture Trustee hereunder.




          “Issuer” means Option One Owner Trust 2007-5A.




          “Issuer Order” and “Issuer Request” mean a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.




          “Loan Originator” has the meaning given to such term in the Sale and Servicing
Agreement.




          “Majority Certificateholders” As defined in the Sale and Servicing
Agreement.




          “Maturity Date” means, with respect to the Notes, 364 days after the commencement of
the Revolving Period.




          “Maximum Note Principal Balance” As defined in the Note Purchase Agreement.




          “Note” means any Note authorized by and authenticated and delivered under this
Indenture.




4









 








          “Note Interest Rate” means for each Accrual Period, a per annum interest rate equal to
One-Month LIBOR for the related LIBOR Determination Date plus the LIBOR Margin and, if applicable,
the Default LIBOR Margin for such Accrual Period.




          “Note Principal Balance” As defined in the Sale and Servicing Agreement.




          “Note Purchase Agreement” means the Note Purchase Agreement dated as of January 1,
2007, among the Issuer, the Depositor and Citigroup Global Markets Realty Corp.




          “Note Redemption Amount” As defined in the Sale and Servicing Agreement.




          “Note Register” and “Note Registrar” have the respective meanings specified in
Section 2.03 hereof.




          “Noteholder” means the Person in whose name a Note is registered on the Note Register.




          “Officer’s Certificate” means a certificate signed by any Authorized Officer of the
Issuer or the Administrator, under the circumstances described in, and otherwise complying with,
the applicable requirements of Section 11.01 hereof, and delivered to the Indenture Trustee. Unless
otherwise specified, any reference in this Indenture to an Officer’s Certificate shall be to an
Officer’s Certificate of any Authorized Officer of the Issuer or the Administrator.




          “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be an employee of or counsel to the Issuer, and
which opinion or opinions shall be addressed to the Indenture Trustee, as Indenture Trustee, and
shall comply with any applicable requirements of
Section 11.01 hereof and shall be in form and
substance satisfactory to the Initial Noteholder.




          “Outstanding” means, with respect to any Note and as of the date of determination, any
Note theretofore authenticated and delivered under this Indenture except:





     (i) Notes theretofore canceled by the Note Registrar or delivered to the Note
Registrar for cancellation;




     (ii) Notes or portions thereof the payment for which money in the necessary amount has
theretofore been deposited with the Indenture Trustee or any Paying Agent in trust for the
Noteholders (provided, however, that if such Notes are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision for such notice
satisfactory to the Indenture Trustee has been made); and




     (iii) Notes in exchange for or in lieu of which other Notes have been authenticated
and delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee
is presented that any such Notes are held by a bona fide purchaser; provided, however, that
in determining whether the Noteholders representing the requisite Percentage Interests of
the Outstanding Notes have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any
other obligor upon the Notes, the Depositor or



5









 





any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Indenture Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Notes that the Indenture Trustee actually knows to be owned in such manner
shall be disregarded. Notes owned in such manner that have been pledged in good faith may
be regarded as Outstanding if the pledgee certifies to the Indenture Trustee (y) that the
pledgee has the right so to act with respect to such Notes and (z) that the pledgee is not
the Issuer, any other obligor upon the Notes, the Depositor or any Affiliate of any of the
foregoing Persons.



          “Owner Trustee” means Wilmington Trust Company, not in its individual capacity but
solely as Owner Trustee under the Trust Agreement, or any successor Owner Trustee under the Trust
Agreement.




          “Paying Agent” means (unless the Paying Agent is the Servicer) a Person that meets the
eligibility standards for the Indenture Trustee specified in
Section 6.11 hereof and is authorized
by the Issuer to make payments to and distributions from the Collection Account and the
Distribution Account, including payment of principal of or interest on the Notes on behalf of the
Issuer. The initial Paying Agent shall be the Servicer; provided that if the Servicer is terminated
as Paying Agent for any reason, the Indenture Trustee shall be the Paying Agent until another
Paying Agent is appointed by the Initial Noteholder pursuant to
Section 8.04 herein. The Indenture
Trustee shall be entitled to reasonable additional compensation for assuming the role of Paying
Agent.




          “Payment Date” As defined in the Sale and Servicing Agreement.




          “Percentage Interest” means, with respect to any Note and as of any date of
determination, the percentage equal to a fraction, the numerator of which is the principal balance
of such Note as of such date of determination and the denominator of which is the Note Principal
Balance.




          “Person” As defined in the Sale and Servicing Agreement.




          “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered
under Section 2.04 hereof in
lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as
the mutilated, lost, destroyed or stolen Note.




          “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.




          “Record Date” As defined in the Sale and Servicing Agreement.




          “Redemption Date” means in the case of a redemption of the Notes pursuant to Section
10.01 hereof, the Payment Date specified by the Servicer pursuant
to such Section 10.01.




6









 








          “Registered Holder” means the Person in the name of which a Note is registered on the
Note Register on the applicable Record Date.




          “Revolving Period” As defined in the Sale and Servicing Agreement.




          “Sale Agent” has the meaning assigned to such term in Section 5.11 hereof.




          “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of
January 1, 2007, among the Issuer, the Depositor, the Servicer, the Loan Originators and the
Indenture Trustee on behalf of the Noteholders.




          “Servicer” shall mean Option One Mortgage Corporation, in its capacity as servicer
under the Sale and Servicing Agreement, and any successor servicer thereunder.




          “State” means any one of the States of the United States of America or the District of
Columbia.




          “Termination Price” As defined in the Sale and Servicing Agreement.




          “Transfer Date” As defined in the Sale and Servicing Agreement.




          “Trust Agreement” means the Trust Agreement dated as of January 1, 2007, between the
Depositor and the Owner Trustee.




          “Trust Certificate” has the meaning assigned to such term in Section 1.1 of the Trust
Agreement.




          “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force on the date
hereof, unless otherwise specifically provided.




          (b) Except as otherwise specified herein or as the context may otherwise require, capitalized
terms used but not otherwise defined herein have the respective meanings set forth in the Sale and
Servicing Agreement for all purposes of this Indenture.




          Section 1.02 Rules of Construction. Unless the context otherwise requires:





     (i) a term has the meaning assigned to it;




     (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;




     (iii) “or” is not exclusive;




     (iv) “including” means including without limitation;




     (v) words in the singular include the plural and words in the plural include the
singular; and



7









 






     (vi) any agreement, instrument or statute defined or referred to herein or in any instrument
or certificate delivered in connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented (as provided in such agreements) and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments
incorporated therein; references to a Person are also to its permitted successors and assigns.



8









 





ARTICLE II




GENERAL PROVISIONS WITH RESPECT TO THE NOTES




          Section 2.01 Method of Issuance and Form of Notes.




          (a) The Notes shall be designated generally as the “Option One Owner Trust 2007-5A
Mortgage-Backed Notes” of the Issuer. Each Note shall bear upon its face the designation so
selected for the Notes. All Notes shall be identical in all respects except for the denominations
thereof. All Notes issued under this Indenture shall be in all respects equally and ratably
entitled to the benefits thereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the terms and
provisions of this Indenture.




          The Notes may be typewritten, printed, lithographed or engraved or
produced by any combination of these methods, all as determined by the officers executing
such Notes, as evidenced by their execution of such Notes.




          Each Note shall be dated the date of its authentication.




          The terms of the Notes shall be set forth in this Indenture.




          The Notes shall be in definitive form and shall bear a legend substantially in the form of
Exhibit C attached hereto.




          Section 2.02 Execution, Authentication, Delivery and Dating. The Notes shall be executed on
behalf of the Issuer by an Authorized Officer of the Owner Trustee or the Administrator. The
signature of any such Authorized Officer on the Notes may be manual or facsimile.




          Notes bearing the manual or facsimile signature of individuals who were at any time
Authorized Officers of the Owner Trustee or the Administrator shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Notes or did not hold such offices at the date of such Notes.




          Subject to the satisfaction of the conditions set forth in Section 2.08 hereof, the Indenture
Trustee shall upon Issuer Order authenticate and deliver the Notes.




          The Notes that are authenticated and delivered by the Indenture Trustee to or upon the order
of the Issuer on the Closing Date shall be dated as of such Closing Date. All other Notes that are
authenticated after the Closing Date for any other purpose under the Indenture shall be dated the
date of their authentication. The Notes shall be issued in such denominations as may be agreed by
the Issuer and the Initial Noteholder.




          No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in
the form provided for herein executed by the Indenture Trustee by the manual




9









 








signature of one of its authorized signatories, and such certificate upon any Note shall be
conclusive evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.



          Section 2.03 Registration; Registration of Transfer and Exchange. The Issuer shall
cause to be kept a register (the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Indenture Trustee initially shall be the “Note Registrar”
for the purpose of registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of the Note Registrar.




          If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar,
the Issuer will give the Indenture Trustee prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and
addresses of the Noteholders and the principal amounts and number of the Notes.




          Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in Section 3.02 hereof, the Issuer shall execute, and the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name
of the designated transferee or transferees, one or more new Notes in any authorized
denominations, of a like aggregate Note Principal Balance.




          At the option of the Holder, Notes may be exchanged for other Notes in any authorized
denominations, of a like aggregate principal amount, upon surrender of the Notes to be exchanged
at such office or agency. Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the
Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive.




          All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or exchange.




          Every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed by, or be accompanied by a written instrument of transfer in the form attached to the
form of Note attached as Exhibit A hereto duly executed by the Holder thereof or such Holder’s
attorney duly authorized in writing, with such signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Securities Transfer Agents’ Medallion Program
(“STAMP”).




          No service charge shall be made to a Noteholder for any registration of transfer or exchange
of Notes, but the Issuer may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or




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exchange of Notes, other than exchanges pursuant to Section 9.05 hereof not involving any
transfer.



          The preceding provisions of this Section 2.03 notwithstanding, the Issuer shall not be
required to make, and the Note Registrar need not register, transfers or exchanges of Notes
selected for redemption or of any Note for a period of 15 days preceding the due date for any
payment with respect to such Note.




          Section 2.04 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note is
surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Issuer and Indenture Trustee such security or indemnity as may reasonably be required by it to hold
the Issuer and the Indenture Trustee, as applicable, harmless, then, in the absence of notice to
the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired by a bona
fide purchaser, an Authorized Officer of the Owner Trustee or the Administrator on behalf of the
Issuer shall execute, and upon its written request the Indenture Trustee shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note; provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within seven days shall be due and payable, or shall have been
called for redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed,
lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note
pursuant to the proviso to the preceding sentence, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such original Note, the Issuer
shall be entitled to recover such replacement Note (or such payment) from the Person to which it
was delivered or any Person taking such replacement Note from such Person to which such replacement
Note was delivered or any assignee of such Person, except a bona fide purchaser, and the Issuer and
the Indenture Trustee shall be entitled to recover upon the security or indemnity provided therefor
to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee
in connection therewith.




          Upon the issuance of any replacement Note under this Section 2.04, the Issuer may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) connected therewith.




          Every replacement Note issued pursuant to this Section 2.04 in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.




          The provisions of this Section 2.04 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.




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          Section 2.05 Persons Deemed Noteholders. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in the name of which any Note is registered (as of the day
of determination) as the Noteholder for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Issuer, the Indenture Trustee
or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.




          Section 2.06 Payment of Principal and/or Interest; Defaulted Interest.




          (a) The Notes shall accrue interest at the Note Interest Rate, and such interest shall be
payable on each Payment Date, subject to Section 3.01 hereof. Any installment of interest or
principal, if any, payable on any Note that is punctually paid or duly provided for by the Issuer
on the applicable Payment Date shall be paid to the Person in the name of which such Note (or one
or more Predecessor Notes) is registered on the next preceding Record Date based on the Percentage
Interest represented by its respective Note, without preference or priority of any kind, and,
except as otherwise provided in the next succeeding sentence, shall be made by wire transfer of
immediately available funds to the account of such Noteholder, if such Noteholder shall own of
record Notes having a Percentage Interest of at least 20% and shall have so notified the Paying
Agent and the Indenture Trustee, and otherwise by check mailed to the address of such Noteholder
appearing in the Note Register no less than five days preceding the related Record Date. The final
installment of principal payable with respect to such Note shall be payable as provided in Section
2.06(b) below. The funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.03 hereof.




          (b) The principal of each Note shall be payable in installments on each Payment Date as
provided in Sections 5.01 and 5.02 of the Sale and Servicing Agreement and Section 5.04(b) hereof.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and
payable, if not previously paid, on the earlier of (i) the Maturity Date, (ii) the Redemption
Date, (iii) the Final Put Date and (iv) the date on which an Event of Default shall have occurred
and be continuing, if the Indenture Trustee or the Majority Noteholders shall have declared the
Notes to be immediately due and payable in the manner provided in Section 5.02 hereof.




          All principal payments on the Notes shall be made pro rata to the Noteholders based on their
respective Percentage Interests. The Paying Agent shall notify the Person in the name of which a
Note is registered at the close of business on the Record Date preceding the Payment Date on which
the Issuer expects that the final installment of principal of and interest on such Note will be
paid. Such notice shall be mailed or transmitted by facsimile prior to such final Payment Date and
shall specify that such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and surrendered for payment
of such installment. Notices in connection with redemptions of Notes shall be provided to
Noteholders as set forth in Section 10.02 hereof.




          Section 2.07 Cancellation. All Notes surrendered for payment, registration of transfer,
exchange or redemption shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall promptly be canceled by the Indenture




12









 








Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall promptly be canceled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this
Section 2.07, except as expressly permitted by this Indenture. All canceled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed
or returned to it; provided, however, that such Issuer Order is timely and the Notes have not been
previously disposed of by the Indenture Trustee.



          Section 2.08 Conditions Precedent to the Authentication of the Notes. The Notes may be
authenticated by the Indenture Trustee upon receipt by the Indenture Trustee of the following:




          (a) An Issuer Order authorizing authentication of such Notes by the Indenture Trustee;




          (b) All of the items of Collateral which are to be delivered pursuant to the Basic Documents
to the Indenture Trustee or its designee by the related Closing Date shall have been delivered;




          (c) An executed counterpart of each Basic Document;




          (d) One or more Opinions of Counsel addressed to the Indenture Trustee to the effect that:





     (i) all conditions precedent provided for in this Indenture relating to the
authentication of the Notes have been complied with;




     (ii) the Owner Trustee has power and authority to execute, deliver and perform its
obligations under the Trust Agreement;




     (iii) the Issuer has been duly formed, is validly existing as a statutory trust
under the laws of the State of Delaware, 12 Del. C. Section 3801 et seq., and has power,
authority and legal right to execute and deliver this Indenture, the Note Purchase
Agreement, the Custodial Agreement, the Administration Agreement and the Sale and
Servicing Agreement;




     (iv) assuming due authorization, execution and delivery hereof by the Indenture
Trustee, the Indenture is a valid, legal and binding obligation of the Issuer,
enforceable in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, arrangement, moratorium, fraudulent or preferential conveyance and other
similar laws of general application affecting the rights of creditors generally and to
general principles of equity (regardless of whether such enforcement is considered in a
Proceeding in equity or at law);




     (v) the Notes, when executed and authenticated as provided herein and delivered
against payment therefor, will be the valid, legal and binding obligations of the



13









 






Issuer pursuant to the terms of this Indenture, entitled to the benefits of this
Indenture, and will be enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization, arrangement, moratorium, fraudulent or preferential
conveyance and other similar laws of general application affecting the rights of
creditors generally and to general principles of equity (regardless of whether such
enforcement is considered in a Proceeding in equity or at law);




     (vi) Reserved;




     (vii) this Indenture is not required to be qualified under the Trust Indenture
Act;




     (viii) no authorization, approval or consent of any governmental body having
jurisdiction in the premises which has not been obtained by the issuer is required to be
obtained by the Issuer for the valid issuance and delivery of the Notes, except that no
opinion need be expressed with respect to any such authorizations, approvals or consents
as may be required under any state securities or “blue sky” laws; and




     (ix) any other matters that the Indenture Trustee may reasonably request.



          (e) An Officer’s Certificate complying with the requirements of Section 11.01 hereof and
stating that:





     (i) the Issuer is not in Default under this Indenture and the issuance of the Notes
applied for will not result in any breach of any of the terms, conditions or provisions
of, or constitute a default under, the Trust Agreement, any indenture, mortgage, deed of
trust or other agreement or instrument to which the Issuer is a party or by which it is
bound, or any order of any court or administrative agency entered in any Proceeding to
which the Issuer is a party or by which it may be bound or to which it may be subject,
and that all conditions precedent provided in this Indenture relating to the
authentication and delivery of the Notes applied for have been complied with;




     (ii) the Issuer is the owner of all of the Loans, has not assigned any interest or
participation in the Loans (or, if any such interest or participation has been assigned,
it has been released) and has the right to Grant all of the Loans to the Indenture
Trustee;




     (iii) the Issuer has Granted to the Indenture Trustee all of its right, title and
interest in and to the Collateral, and has delivered or caused the same to be delivered
to the Indenture Trustee; and




     (iv) all conditions precedent provided for in this Indenture relating to the
authentication of the Notes have been complied with.



          Section 2.09 Release of Collateral. (a) Except as otherwise provided by the terms of
the Basic Documents, the Indenture Trustee shall release the Collateral from the lien of this
Indenture only upon receipt of an Issuer Request accompanied by the written consent of the Majority
Noteholders in accordance with the procedures set forth in the Custodial Agreement. To the extent
it deems necessary, the Indenture Trustee may seek direction from the Initial Noteholder with
regard to the release of Collateral other than the Custodial Loan File.




14









 








          (b) The Indenture Trustee shall, if requested by the Servicer, temporarily release or cause
the Custodian temporarily to release to the Servicer the Custodial Loan File pursuant to the
provisions of Section 5(b) of the Custodial Agreement upon compliance by the Servicer with the
provisions thereof; provided, however, that the Custodian’s records shall indicate the Issuer’s
pledge to the Indenture Trustee under the Indenture.




          Section 2.10 Additional Note Principal Balance. In the event of payment of Additional
Note Principal Balance by the Noteholders as provided in Section 2.01 (c) of the Sale and Servicing
Agreement, each Noteholder shall, and is hereby authorized to, record on the schedule attached to
its Note the date and amount of any Additional Note Principal Balance advanced by it, and each
repayment thereof; provided that failure to make any such recordation on such schedule or any error
in such schedule shall not adversely affect any Noteholder’s rights with respect to its Additional
Note Principal Balance and its right to receive interest payments in respect of the Additional Note
Principal Balance held by such Noteholder.




          Absent manifest error, the Note Principal Balance of each Note as set forth in the notations
made by the related Noteholder on such Note shall be binding upon the Indenture Trustee and the
Issuer; provided that failure by a Noteholder to make such recordation on its Note or any error in
such notation shall not adversely affect any Noteholder’s rights with respect to its Note
Principal Balance and its right to receive principal and interest payments in respect thereof.




          Section 2.11 Tax Treatment. The Issuer has entered into this Indenture, and the Notes
will be issued, with the intention that for all purposes, including federal, state and local
income, single business and franchise tax purposes, the Notes will qualify as indebtedness of the
Issuer secured by the Collateral. The Issuer, by entering into this Indenture, and each Noteholder,
by its acceptance of a Note, agree to treat the Notes for all purposes, including federal, state
and local income, single business and franchise tax purposes, as indebtedness of the Issuer. The
Indenture Trustee will have no responsibility for filing or preparing any tax returns.




          Section 2.12 Limitations on Transfer of the Notes.




          (a) The Notes have not been and will not be registered under the Securities Act and will not
be listed on any exchange. No transfer of a Note shall be made unless such transfer is made
pursuant to an effective registration statement under
the Securities Act and all applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities laws. In order to
assure compliance with the Securities Act and state securities laws, any transfer of a Note shall
be made (A) in reliance on Rule 144A under the Securities Act, in which case, the Indenture
Trustee shall require that the transferor deliver a certification substantially in the form of
Exhibit B-1 hereto and that the transferee deliver a certification substantially in the form of
Exhibit B-3 hereto, or (B) to an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act that is not a “qualified
institutional buyer,” in which case the Indenture Trustee shall require that the transferee
deliver a certification substantially in the form of Exhibit B-2 hereto. The Indenture Trustee
shall not make any transfer or re-registration of the Notes if after such transfer or
re-registration, there would be more than five Noteholders. Each Noteholder




15









 








shall, by its acceptance of a Note, be deemed to have represented and warranted that the number of
ICA Owners with respect to all of its Notes shall not exceed four.



          (b) The Note Registrar shall not register the transfer of any Note unless the Indenture
Trustee has received a certificate from the transferee to the effect that either (i) the
transferee is not an employee benefit plan or other retirement plan or arrangement subject to
Title I of the Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the
Internal Revenue Code of 1986, as amended (each, a “Plan”), and is not acting on behalf of or
investing the assets of a Plan or (ii) if the transferee is a Plan or is acting on behalf of or
investing the assets of a Plan, either that no prohibited transaction within the meaning of
Section 406(a) of ERISA or Section 4975 of the Code would occur upon the transfer of the Note or
that the conditions for exemptive relief under a prohibited transaction exemption has been
satisfied, including, but not limited to, Prohibited Transaction Class Exemption (“PTCE”) 96-23
(relating to transactions effected by an “in-house asset manager”), PTCE 95-60 (relating to
transactions involving insurance company general accounts), PTCE 91-38 (relating to transactions
involving bank collective investment funds), PTCE 90-1 (relating to transactions involving
insurance company pooled separate accounts) and PTCE 84-14 (relating to transactions effected by a
“qualified professional asset manager”).




ARTICLE III




COVENANTS




          Section 3.01 Payment of Principal and/or Interest. The Issuer will duly and punctually
pay (or will cause to be paid duly and punctually) the principal of and interest on the Notes in
accordance with the terms of the Notes, this Indenture and the Sale and Servicing Agreement.
Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest
and/or principal shall be considered as having been paid by the Issuer to such Noteholder for all
purposes of this Indenture. The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral, as provided in this
Indenture. The
Issuer shall not otherwise be liable for payments on the Notes. If any other provision of this
Indenture shall be deemed to conflict with the provisions of this Section 3.01, the provisions of
this Section 3.01 shall control.




          Section 3.02 Maintenance of Office or Agency. The Indenture Trustee shall maintain at
the Corporate Trust Office an office or agency where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served. The Indenture Trustee shall give prompt written notice to the
Issuer of the location, and of any change in the location, of any such office or agency.




          Section 3.03 Money for Payments to Be Held in Trust. As provided in Section 8.02(a)
and (b) hereof, all payments of amounts due and payable with respect to any Notes that are to be
made from amounts withdrawn from the Distribution Account pursuant to Section 8.02(c) hereof shall
be made on behalf of the Issuer by the Indenture Trustee or by the Paying Agent, and no amounts so
withdrawn from the Distribution Account for payments of Notes shall be paid over to the Issuer
except as provided in this Section 3.03.




16









 








          Any Paying Agent shall be appointed by the Initial Noteholder with written notice thereof to
the Indenture Trustee. The Issuer shall not appoint any Paying Agent (other than the Indenture
Trustee or Servicer) which is not, at the time of such appointment, a Depository Institution.




          The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section 3.03, that such Paying Agent will:





     (i) hold all sums held by it for the payment of amounts due with respect to the Notes
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and pay such sums to such Persons
as herein provided;




     (ii) give the Indenture Trustee notice of any Default by the Issuer (or any other
obligor upon the Notes) of which it has actual knowledge in the making of any payment
required to be made with respect to the Notes;




     (iii) at any time during the continuance of any such Default, upon the written request
of the Majority Noteholders or the Indenture Trustee, forthwith pay to the Indenture
Trustee all sums so held in trust by such Paying Agent;




     (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee
all sums held by it in trust for the payment of Notes if at any time it ceases to meet the
standards required to be met by a Paying Agent at the time of its appointment; and




     (v) comply with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed thereon and
with respect to any applicable reporting requirements in connection therewith; provided,
however, that with respect to withholding and reporting requirements applicable to original
issue discount (if any) on the Notes, the Issuer shall have first provided the calculations
pertaining thereto to the Indenture Trustee.



          The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.




          Subject to applicable laws with respect to escheat of funds or abandoned property, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of any amount due with
respect to any Note and remaining unclaimed for two years after such amount has become due and
payable shall be discharged from such trust and be paid to the Issuer on Issuer Request; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the




17









 








Issuer), and all liability of the Indenture Trustee or such Paying Agent with respect to such
trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying
Agent, before being required to make any such repayment, shall at the expense and direction of the
Issuer cause to be published, once in a newspaper of general circulation in the City of New York
customarily published in the English language on each Business Day, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be repaid to the
Issuer. The Indenture Trustee shall also adopt and employ any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of such repayment to
Noteholders whose Notes have been called but have not been surrendered for redemption or whose
right to or interest in moneys due and payable but not claimed at the last address of record for
each such Noteholder determinable from the records of the Indenture Trustee or of any Paying
Agent). Any costs and expenses of the Indenture Trustee and the Paying Agent incurred in the
holding of such funds shall be charged against such funds. Monies so held shall not bear interest.



          Section 3.04 Existence. (a) Subject to subparagraph (b) of this Section 3.04, the
Issuer will keep in full effect its existence, rights and franchises as a statutory trust under the
laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other State or of the United States of America, in which case the
Issuer will keep in full effect its existence, rights and franchises under the laws of such other
jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the Notes and the
Collateral. The Issuer shall comply in all respects with the covenants contained in the Trust
Agreement, including without limitation, the “special purpose entity” set forth in Section 4.1
thereof.




          (b) Any successor to the Owner Trustee appointed pursuant to Section 10.2 of the Trust
Agreement shall be the successor Owner Trustee under this Indenture without the execution or
filing of any paper, instrument or further act to be done on the part of the parties hereto.




          (c) Upon any consolidation or merger of or other succession to the Owner Trustee, the Person
succeeding to the Owner Trustee under the Trust Agreement may exercise every right and power of
the Owner Trustee under this Indenture with the same effect as if such Person had been named as
the Owner Trustee herein.




          Section 3.05 Protection of Collateral. The Issuer will from time to time execute and
deliver all such reasonable supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments, and will take such
other action necessary or advisable to:





     (i) provide further assurance with respect to the Grant of all or any portion of the
Collateral;




     (ii) maintain or preserve the lien and security interest (and the priority thereof)
of this Indenture or carry out more effectively the purposes hereof;



18









 






     (iii) perfect, publish notice of or protect the validity of any Grant made or to be
made by this Indenture;




     (iv) enforce any rights with respect to the Collateral; and




     (v) preserve and defend title to the Collateral and the rights of the Indenture
Trustee and the Noteholders in such Collateral against the claims of all Persons and
parties.



          The Issuer hereby designates the Administrator, its agent and attorney-in-fact to execute any
financing statement, continuation statement or other instrument required to be executed pursuant
to this Section 3.05.




          Section 3.06 Negative Covenants. Without the written consent of the Majority
Noteholders, so long as any Notes are Outstanding, the Issuer shall not:





     (i) except as expressly permitted by the Basic Documents, sell, transfer, exchange
or otherwise dispose of any of the properties or assets of the Issuer, including those
included in any part of the Trust Estate, unless directed to do so by the Noteholders as
permitted herein;




     (ii) claim any credit on, or make any deduction from the principal or interest
payable in respect of, the Notes (other than amounts properly withheld from such payments
under the Code) or assert any claim against any present or former Noteholder by reason of
the payment of the taxes levied or assessed upon any part of the Trust Estate;




     (iii) engage in any business or activity other than as expressly permitted by this
Indenture and the other Basic Documents, other than in connection with, or relating to,
the issuance of Notes pursuant to this Indenture, or amend this Indenture as in effect on
the Closing Date other than in accordance with Article IX hereof;




     (iv) issue any debt obligations except under this Indenture;




     (v) incur or assume any indebtedness or guaranty any indebtedness of any Person,
except for such indebtedness as may be incurred by the Issuer in connection with the
issuance of the Notes pursuant to this Indenture;




     (vi) dissolve or liquidate in whole or in part or merge or consolidate with any
other Person;




     (vii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated
or discharged, or permit any Person to be released from any covenants or obligations with
respect to the Notes except as may expressly be permitted hereby, (B) except as provided
in the Basic Documents, permit any lien, charge, excise, claim, security interest,
mortgage or other encumbrance to be created on or extend to or otherwise arise upon or
burden the Trust Estate or any part thereof or any interest therein



19









 






or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that
arise by operation of law, in each case, on any Mortgaged Property and arising solely as
a result of an action or omission of the related Borrowers) or (C) except as provided in
the Basic Documents, permit any Person other than itself, the Owner Trustee and the
Noteholders to have any right, title or interest in the Trust Estate;




     (viii) remove the Administrator without the prior written consent of the Majority
Noteholders; or




     (ix) take any other action or fail to take any action which may cause the Trust to
be taxable as (a) an association pursuant to Section 7701 of the Code and the
corresponding regulations, or (b) as a taxable mortgage pool pursuant to Section 7701(i)
of the Code.



          Section 3.07 Performance of Obligations; Servicing of Loans. (a) The Issuer will not
take any action and will use its best efforts not to permit any action to be
taken by others that would release any Person from any of such Person’s material covenants or
obligations under any instrument or agreement included in the Collateral or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly provided in the Basic
Documents or such other instrument or agreement.




          (b) The Issuer may contract with or otherwise obtain the assistance of other Persons
(including, without limitation, the Administrator under the Administration Agreement) to assist it
in performing its duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be deemed to
be action taken by the Issuer. Initially, the Issuer has contracted with the Servicer and the
Administrator to assist the Issuer in performing its duties under this Indenture.




          (c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, in the Basic Documents and in the instruments and agreements included
in the Collateral, including but not limited to (i) filing or causing to be filed all UCC
financing statements and continuation statements required to be filed by the terms of this
Indenture and the Sale and Servicing Agreement and (ii) recording or causing to be recorded all
Mortgages, Assignments of Mortgage, all intervening Assignments of Mortgage and all assumption and
modification agreements required to be recorded by the terms of the Sale and Servicing Agreement,
in accordance with and within the time periods provided for in this Indenture and/or the Sale and
Servicing Agreement, as applicable. Except as otherwise expressly provided therein, the Issuer
shall not waive, amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee and the Majority Noteholders.




          (d) If the Issuer shall have knowledge of the occurrence of a Servicing Event of Default, the
Issuer shall promptly notify the Indenture Trustee and the Initial Noteholder thereof, and shall
specify in such notice the action, if any, the Issuer is taking with respect to such default. If a
Servicing Event of Default shall arise from the failure of the Servicer to




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perform any of its duties or obligations under the Sale and Servicing Agreement with respect to
the Loans, the Issuer shall take all reasonable steps available to it to remedy such failure.



          (e) Reserved.




          (f) Upon any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee. As soon as a
successor servicer is appointed, the Issuer shall notify the Indenture Trustee of such
appointment, specifying in such notice the name and address of such successor servicer.




          (g) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the Indenture Trustee
hereunder, the Issuer agrees (i) that it will not, without the prior written consent of the
Indenture Trustee, amend, modify, waive, supplement, terminate or surrender, or agree to any
amendment, modification, supplement, termination, waiver or surrender of, the terms of any
Collateral (except to the extent otherwise permitted by the Sale and Servicing Agreement) or the
Basic Documents, or waive timely performance or observance by the Servicer or the Depositor under
the Sale and Servicing Agreement; and (ii) that any such amendment shall not (A) increase or
reduce in any manner the amount of, or accelerate or delay the timing of, distributions that are
required to be made for the benefit of the Noteholders or (B) reduce the aforesaid percentage of
the Notes that is required to consent to any such amendment, without the consent of Noteholders
evidencing 100% Percentage Interests of the Outstanding Notes. If any such amendment,
modification, supplement or waiver shall so be consented to by the Indenture Trustee, the Issuer
agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in
its own name and at its own expense, such agreements, instruments, consents and other documents as
the Indenture Trustee may deem necessary or appropriate in the circumstances.




          Section 3.08 Reserved.




          Section 3.09 Annual Statement as to Compliance. So long as the Notes are Outstanding,
the Issuer will deliver to the Indenture Trustee, within 90 days after the end of each fiscal year
of the Issuer (commencing with the fiscal year beginning on May 1, 2007), an Officer’s Certificate
stating, as to the Authorized Officer signing such Officer’s Certificate, that:





     (i) a review of the activities of the Issuer during such year and of its performance
under this Indenture has been made under such Authorized Officer’s supervision; and




     (ii) to the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has materially complied with all conditions and covenants under this Indenture
throughout such year, or, if there has been a default in its compliance with any such
condition or covenant, specifying each such default known to such Authorized Officer and
the nature and status thereof.



          Section 3.10 Covenants of the Issuer. All covenants of the Issuer in this Indenture are
covenants of the Issuer and are not covenants of the Owner Trustee. The Owner Trustee is, and any
successor Owner Trustee under the Trust Agreement will be, entering into this Indenture solely as
Owner Trustee under the Trust Agreement and not in its respective individual




21









 








capacity, and in no case whatsoever shall the Owner Trustee or any such successor Owner Trustee be
personally liable on, or for any loss in respect of, any of the statements, representations,
warranties or obligations of the Issuer hereunder, as to all of which the parties hereto agree to
look solely to the property of the Issuer.



          Section 3.11 Servicer’s Obligations. The Issuer shall cause the Servicer
to comply with the Sale and Servicing Agreement.




          Section 3.12 Restricted Payments. The Issuer shall not, directly or indirectly, (i)
pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership or equity interest or security in
or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or cause to be made, (x)
distributions to the Servicer, the Indenture Trustee, the Owner Trustee and the Noteholders and the
holders of the Trust Certificates as contemplated by, and to the extent funds are available for
such purpose under, the Sale and Servicing Agreement or the Trust Agreement and (y) payments to the
Administrator pursuant to Section 4 of the Administration Agreement. The Issuer will not, directly
or indirectly, make or cause to be made payments to or distributions from the Distribution Account
except in accordance with this Indenture and the Basic Documents.




          Section 3.13 Treatment of Notes as Debt for All Purposes. The Issuer shall, and shall
cause the Administrator to, treat the Notes as indebtedness for all purposes.




          Section 3.14 Notice of Events of Default. The Issuer shall give the Indenture Trustee
and the Initial Noteholder prompt written notice of each Event of Default hereunder and each
default on the part of the Servicer or a Loan Originator of their respective obligations under any
of the Basic Documents.




          Section 3.15 Further Instruments and Acts. Upon request of the Indenture Trustee, the
Issuer will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.




ARTICLE IV




SATISFACTION AND DISCHARGE




          Section 4.01 Satisfaction and Discharge of Indenture. This Indenture shall cease to be
of further effect with respect to the Notes (except as to (i) rights of registration of transfer
and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.03, 3.04
and 3.10 hereof, (v) the rights, obligations and immunities of the Indenture Trustee hereunder
(including the rights of the Indenture Trustee under Section 6.07 hereof and the obligations of the
Indenture Trustee under Section 4.02 hereof) and (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee payable to all or any
of them), and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute




22









 








proper instruments satisfactory to it, and prepared and delivered to it by the Issuer,
acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when all of
the following have occurred:



          (A) either





	 	(1)	 	all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.04 hereof and (ii) Notes for
the payment of which money has theretofore been deposited in trust or
segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from such trust, as provided in Section 3.03 hereof)
shall have been delivered to the Indenture Trustee for cancellation; or
	 
	 	(2)	 	all Notes not theretofore delivered to the Indenture Trustee for
cancellation






	 	a.	 	shall have become due and payable, or
	 
	 	b.	 	are to be called for redemption within one year under
arrangements satisfactory to the Indenture Trustee for the
giving of notice of redemption by the Indenture Trustee in the
name, and at the expense, of the Issuer,
	 
	 	c.	 	and the Issuer, in the case of clause a. or b. above, has
irrevocably deposited or caused irrevocably to be deposited with
the Indenture Trustee cash or direct obligations of or
obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in
trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore
delivered to the Indenture Trustee for cancellation when due to
the applicable Maturity Date or the Redemption Date (if Notes
shall have been called for redemption pursuant to Section 10.01
hereof), as the case may be; and





          (B) the latest of (a) the payment in full of all outstanding obligations under the Notes, (b)
the payment in full of all unpaid Trust Fees and Expenses and (c) the date on which the Issuer has
paid or caused to be paid all other sums payable hereunder by the Issuer; and




          (C) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel, each meeting the applicable requirements of Section 11.01 hereof and, subject to Section 11.02 hereof, each stating that all conditions
precedent herein provided for, relating to the satisfaction and discharge of this Indenture with
respect to the Notes, have been complied with.




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          Section 4.02 Application of Trust Money. All moneys deposited with the Indenture
Trustee pursuant to Sections 3.03 and 4.01 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, to the Noteholders for the
payment or redemption of which such moneys have been deposited with the Indenture Trustee, of all
sums due and to become due thereon for principal and/or interest; but such moneys need not be
segregated from other funds except to the extent required herein or in the Sale and Servicing
Agreement or required by law.




          Section 4.03 Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any
Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect
to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and
applied according to Section 3.03 hereof and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.




ARTICLE V




REMEDIES




          Section 5.01 Events of Default. “Event of Default,” wherever used herein, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):




          (a) notwithstanding any insufficiency of funds in the Distribution Account for payment
thereof on the related Payment Date, default in the payment of any interest on any Note when the
same becomes due and payable; or




          (b) notwithstanding any insufficiency of funds in the Distribution Account for payment
thereof on the related Payment Date, default in the payment of any installment of the
Overcollateralization Shortfall of any Note (i) on any Payment Date or (ii) on the Maturity Date,
or, to the extent that there are funds available in the Distribution Account therefor, default in
the payment of any installment of the principal of any Note from such available funds, as a result
of the occurrence of a Rapid Amortization Trigger; or




          (c) the occurrence of a Servicer Event of Default; or




          (d) default in the observance or performance of any covenant or agreement of the Issuer made
in any Basic Document to which it is a party (other than a covenant or agreement, a default in the
observance or performance of which is
elsewhere in this Section 5.01 specifically dealt with), or any representation or warranty of
the Issuer made in any Basic Document to which it is a party or in any certificate or other
writing delivered pursuant thereto or in connection therewith proving to have been incorrect in
any material respect as of the time when the same shall have been made, and such default shall
continue or not be cured, or the circumstance or condition in respect of which such
misrepresentation or warranty was incorrect




24









 








shall not have been eliminated or otherwise cured, for a period of 30 days after there shall have
been given, by registered or certified mail, to the Issuer by the Indenture Trustee, or to the
Issuer, the Depositor and the Indenture Trustee by Noteholders evidencing at least 25% Percentage
Interests of the Outstanding Notes, a written notice specifying such default or incorrect
representation or warranty and requiring it to be remedied and stating that such notice is a notice
of Default hereunder; or



          (e) default in the observance or performance of any covenant or agreement of the Depositor or
a Loan Originator made in any Basic Document to which it is a party or any representation or
warranty of the Depositor (except as otherwise expressly provided in the Basic Documents with
respect to representations and warranties regarding the Loans) or a Loan Originator made in any
Basic Document to which they are a party, proving to have been incorrect in any material respect as
of the time when the same shall have been made, and such default shall continue or not be cured, or
the circumstance or condition in respect of which such misrepresentation or warranty was incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days (or five days in the
case of the failure of a Loan Originator to make a payment in respect of the Transfer Obligation)
after there shall have been given, by registered or certified mail, to the Issuer and the Depositor
by the Indenture Trustee, or to the Issuer, the Depositor and the Indenture Trustee by Noteholders
evidencing at least 25% Percentage Interests of the Outstanding Notes, a written notice specifying
such Default or incorrect representation or warranty and requiring it to be remedied and stating
that such notice is a notice of Default hereunder; or




          (f) default in the observance or performance of any covenant or agreement of a Loan Originator
made in any repurchase agreement, loan and security agreement or other similar credit facility
agreement entered into by the Loan Originator and any third party for borrowed funds in excess of
$10,000,000, including any default which entitles any party to require acceleration or prepayment
of any indebtedness thereunder; or




          (g) the filing of a decree or order for relief by a court having jurisdiction over the Issuer,
the Depositor or a Loan Originator or all or substantially all of the Collateral in an involuntary
case under any applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or the appointing of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer, the Depositor or a Loan Originator or for all or
substantially all of the Collateral, or the ordering of the winding-up or liquidation of the
affairs of the Issuer, the Depositor or a Loan Originator, and such decree or order shall remain
unstayed and in effect for a period of 60 consecutive days; or




          (h) the commencement by the Issuer, the Depositor or a Loan Originator of a voluntary case
under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter
in effect, or the consent by the Issuer, the Depositor or a Loan Originator to the entry of an
order for relief in an involuntary case under any such law, or the consent by the Issuer to the
appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of the Issuer, the Depositor or a Loan Originator or for any
substantial part of the Collateral, or the making by the Issuer, the Depositor or a Loan Originator
of any general assignment for the benefit of creditors, or the failure by the Issuer, the Depositor
or a Loan Originator generally to pay its respective debts as such debts become due, or the taking




25









 








of any action by the Issuer, the Depositor or a Loan Originator in furtherance of any of the
foregoing; or



          (i) a Change of Control of a Loan Originator; or




          (j) the Notes shall be Outstanding on the day after the end of the Revolving Period.




          The Issuer shall deliver to the Indenture Trustee, within five days after the occurrence
thereof, written notice in the form of an Officer’s Certificate of any event which with the giving
of notice and the lapse of time would become an Event of Default under clauses (d) or (e) above,
the status of such event and what action the Issuer or the Depositor, as applicable, is taking or
proposes to take with respect thereto.




          Section 5.02 Acceleration of Maturity; Rescission and Annulment. If an Event of
Default should occur and be continuing, then and in every such case the Indenture Trustee, at the
direction or upon the prior written consent of the Majority Noteholders, may declare all the Notes
to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture
Trustee if given by Noteholders), and upon any such declaration, the unpaid principal amount of
such Notes, together with accrued and unpaid interest thereon through the date of acceleration,
shall become immediately due and payable.




          At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the moneys due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Majority Noteholders, by written notice to the Issuer
and the Indenture Trustee, may rescind and annul such declaration and its consequences if:




          (a) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:





	 	1.	 	all payments of principal of and/or interest on all Notes and all other amounts that
would then be due hereunder or upon such Notes if the Event of Default giving rise to
such acceleration had not occurred; and
	 
	 	2.	 	all sums paid or advanced by the Indenture Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel; and





          (b) all Events of Default, other than the nonpayment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided in Section 5.12
hereof. No such rescission shall affect any subsequent default or impair any right consequent
thereto.




          Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee. (a) The Issuer covenants that if (i) default is made in the payment of any interest on
any Note when the same becomes due and payable, and such default continues for a period of five
days, or (ii) default is made in the payment of the principal of or any installment of the
principal of




26









 








any Note when the same becomes due and payable, the Issuer will, upon demand of the Indenture
Trustee, pay to the Indenture Trustee, for the benefit of the Noteholders, the whole amount then
due and payable on such Notes for principal and/or interest, with interest upon the overdue
principal and, to the extent payment at such rate of interest shall be legally enforceable, upon
overdue installments of interest at the rate borne by the Notes and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its
agents and counsel.



          (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee shall at the direction of the Majority Noteholders, subject to Section 5.06(c)
institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment or final decree, and may enforce the same against the Issuer or other
obligor upon such Notes and collect in the manner provided by law out of the property of the
Issuer or other obligor upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable.




          (c) If an Event of Default occurs and is continuing, the Indenture Trustee shall at the
direction of the Majority Noteholders, as more particularly provided in Section 5.04 hereof,
subject to Section 5.06(c) hereof, proceed to protect and enforce its rights and the rights of the
Noteholders by such appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.




          (d) In case there shall be pending, relative to the Issuer or any other obligor upon the
Notes or any Person having or claiming an ownership interest in the Collateral, Proceedings under
Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency
or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar
official shall have been appointed for or taken possession of the Issuer or its property or
such other obligor or Person, or in case of any other comparable judicial Proceedings relative to
the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such
other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall
then be due and payable as therein expressed or by declaration or otherwise and irrespective of
whether the Indenture Trustee shall have made any demand pursuant to the provisions of this
Section 5.03, shall be entitled and empowered by intervention in such Proceedings or otherwise:





     (i) to file and prove a claim or claims for the whole amount of principal and/or
interest owing and unpaid in respect of the Notes and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the Indenture
Trustee (including any claim for reasonable compensation to the Indenture Trustee, each
predecessor Indenture Trustee, and its agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the
Indenture Trustee and each predecessor Indenture Trustee, except as a result of
negligence or bad faith) and of the Noteholders allowed in such Proceedings;



27









 






     (ii) unless prohibited by applicable law and regulations, to vote on behalf of the
Noteholders in any election of a trustee, a standby trustee or Person performing similar
functions in any such Proceedings;




     (iii) to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute all amounts received with respect to the claims of the
Noteholders and the Indenture Trustee on their behalf; and




     (iv) to file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Indenture Trustee or the Noteholders
allowed in any judicial proceedings relative to the Issuer, its creditors and its
property; and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make payments to
the Indenture Trustee and, in the event that the Indenture Trustee shall consent to the
making of payments directly to such Noteholders, to pay to the Indenture Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee,
each predecessor Indenture Trustee and their respective agents, attorneys and counsel,
and all other expenses and liabilities incurred and all advances made by the Indenture
Trustee and each predecessor Indenture Trustee except as a result of negligence or bad
faith.



          (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except,
as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person.




          (f) All rights of action and of asserting claims under this Indenture, or under any of the
Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the
production thereof in any trial or other Proceedings relative thereto, and any such action or
Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents, attorneys and counsel, shall be for the ratable benefit of the Noteholders.




          (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving
the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a
party), the Indenture Trustee shall be held to represent all the Noteholders, and it shall not be
necessary to make any Noteholder a party to any such Proceedings.




          Section 5.04 Remedies; Priorities. (a) If an Event of Default shall have occurred and
be continuing, the Indenture Trustee, at the direction of the Majority Noteholders shall, do one or
more of the following (subject to Section 5.05 hereof):




28









 









     (i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect
thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon such Notes moneys adjudged due;




     (ii) institute Proceedings from time to time for the complete or partial foreclosure
of this Indenture with respect to the Collateral;




     (iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Indenture Trustee
or the Noteholders; and




     (iv) sell the Collateral or any portion thereof or rights or interest therein in a
commercially reasonable manner, at one or more public or private sales called and conducted
in any manner permitted by law; provided, however, that the Indenture Trustee may not sell
or otherwise liquidate the Collateral following an Event of Default, unless (A) the Holders
of 100% Percentage Interests of the Outstanding Notes consent thereto, (B) the proceeds of
such sale or liquidation distributable to the Noteholders are sufficient to discharge in
full all amounts then due and unpaid upon such Notes for principal and/or interest or (C)
the Indenture Trustee determines that the Collateral will not continue to provide
sufficient funds for the payment of principal of and interest on the Notes as they would
have become due if the Notes had not been declared due and payable, and the Indenture
Trustee obtains the consent of Holders of not less than 66-2/3% Percentage Interests of the
Outstanding Notes. In determining such sufficiency or
insufficiency with respect to clause (B) and (C) of this subsection (a)(iv), the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an independent
investment banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Collateral for such purpose.



          (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it
shall pay out the money or property in the following order:





     FIRST: in the following order of priority: (a) to the Indenture Trustee, an amount
equal to all unreimbursed Indenture Trustee Fees and indemnities and any other amounts
payable to the Indenture Trustee pursuant to the Basic Documents and to the Indenture
Trustee or Sale Agents, as applicable, all reasonable fees and expenses incurred by them
and their agents and representatives in connection with the enforcement of the remedies
provided for in this Article V, (b) to the Custodian, an amount equal to all unpaid
Custodian Fees and indemnities and any other amounts payable to the Custodian pursuant to
the Basic Documents, (c) to the Owner Trustee, an amount equal to all unreimbursed Owner
Trustee Fees and indemnities and any other amounts payable to the Owner Trustee pursuant to
the Basic Documents, and (d) to the Servicer, an amount equal to (i) all unreimbursed
Servicing Compensation and (ii) all unreimbursed Nonrecoverable Servicing Advances;




     SECOND: the Hedge Funding Requirement to the appropriate Hedging Counterparties;



29









 






     THIRD: to the Noteholders pro rata, all amounts in respect of interest due and owing
under the Notes;




     FOURTH: to the Noteholders pro rata, all amounts in respect of unpaid principal of
the Notes;




     FIFTH: to the Purchaser or any other Indemnified Party (as each such term is defined
in the Note Purchase Agreement), amounts in respect of Issuer/Depositor Indemnities (as
defined in the Trust Agreement) and to the Initial Noteholder, amounts in respect of Due
Diligence Fees (as set forth in Section 11.15 of the Sale and Servicing Agreement) until
such amounts are paid in full;




     SIXTH: to the Owner Trustee, for any amounts to be distributed pro rata to the
holders of the Trust Certificates pursuant to the Trust Agreement.



          The Indenture Trustee may fix a record date and payment date for any payment to be made to
the Noteholders pursuant to this Section 5.04. At least 15 days before such record date, the
Indenture Trustee shall mail to each Noteholder and the Issuer a notice that states the record
date, the payment date and the amount to be paid.




          Section 5.05 Optional Preservation of the Collateral. If the Notes have
been declared to be due and payable under Section 5.02 hereof following an Event of Default
and such declaration and its consequences have not been rescinded and annulled, the Indenture
Trustee may, but need not, elect to maintain possession of the Collateral. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the Collateral. In determining
whether to maintain possession of the Collateral, the Indenture Trustee may, but need not, obtain
and rely upon an opinion of an Independent investment banking or accounting firm of national
reputation as to the feasibility of such proposed action and as to the sufficiency of the
Collateral for such purpose.




          Section 5.06 Limitation of Suits. No Noteholder shall have any right to institute any
Proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:




          (a) such Noteholder has previously given written notice to the Indenture Trustee of a
continuing Event of Default;




          (b) the Noteholders evidencing not less than 25% Percentage Interests of the Outstanding
Notes have made written request to the Indenture Trustee to institute such Proceeding in respect
of such Event of Default in its own name as Indenture Trustee hereunder;




          (c) such Noteholder or Noteholders have offered to the Indenture Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in complying with such request;




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          (d) the Indenture Trustee for 30 days after its receipt of such notice, request and offer of
indemnity has failed to institute such Proceeding; and




          (e) no direction inconsistent with such written request has been given to the Indenture
Trustee during such 30-day period by the Majority Noteholders.




          It is understood and intended that no one or more Noteholders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other Noteholders or to obtain or to seek to obtain
priority or preference over any other Noteholders or to enforce any right under this Indenture,
except in the manner herein provided.




          In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, neither of which evidences Percentage Interests
of the Outstanding Notes greater than 50%, the Indenture Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Indenture and shall have no obligation or liability to any such group of Noteholders for such
action or inaction.




          Section 5.07 Unconditional Rights of Noteholders to Receive Principal
and/or Interest. Notwithstanding any other provisions in this Indenture, any Noteholder shall
have the right, which is absolute and unconditional, to receive payment of the principal of and
interest, if any, on such Note on or after the applicable Maturity Date thereof expressed in such
Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date) and to
institute suit for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Noteholder.




          Section 5.08 Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such Proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.




          Section 5.09 Rights and Remedies Cumulative. No right or remedy herein conferred upon
or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy.




          Section 5.10 Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee or any Noteholder to exercise any right or remedy accruing upon any Default or Event of
Default shall impair any such right or remedy or constitute a waiver of any such Default




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or Event of Default or an acquiescence therein. Every right and remedy given by this Article V or
by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as
often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may
be.



          Section 5.11 Control by Noteholders. The Majority Noteholders shall have the right to
direct the time, method and place of conducting any Proceeding for any remedy available to the
Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the
Indenture Trustee; provided, however, that:




          (a) such direction shall not be in conflict with any rule of law or with this Indenture;




          (b) subject to the express terms of Section 5.04(a)(iv) hereof, any direction to the
Indenture Trustee to sell or liquidate the Collateral shall be by Holders of Notes representing
Percentage Interests of the Outstanding Notes of not less than 100%;




          (c) if the conditions set forth in Section 5.05 hereof have been satisfied and the Indenture
Trustee elects to retain the Collateral pursuant to such Section, then any direction to the
Indenture Trustee by Holders of Notes representing Percentage Interests of the Outstanding Notes
of less than 100% to sell or liquidate the Collateral shall be of no force and effect; and




          (d) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee
that is not inconsistent with such direction.




          In connection with any sale of the Collateral in accordance with paragraph (c) above, the
Majority Noteholders may, in their sole discretion appoint agents to effect the sale of the
Collateral (such agents, “Sale Agents”), which Sale Agents may be Affiliates of any Noteholder.
The Sale Agents shall be entitled to reasonable compensation in connection with such activities
from the proceeds of such sale.




          Notwithstanding the rights of the Noteholders set forth in this Section 5.11, subject to
Section 6.01 hereof, the Indenture Trustee need not take any action that it determines might
involve it in liability or might materially adversely affect the rights of any Noteholders not
consenting to such action.




          Section 5.12 Waiver of Past Defaults. The Majority Noteholders may waive any past
Default or Event of Default and its consequences, except a Default (a) in the payment of principal
of or interest on any of the Notes or (b) in respect of a covenant or provision hereof that cannot
be modified or amended without the consent of each Noteholder. In the case of any such waiver, the
Issuer, the Indenture Trustee and Noteholders shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereto.




          Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and
not to have occurred, and any Event of Default arising therefrom shall be deemed to have been
cured and not to have occurred, for every purpose of this Indenture; but no such




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waiver shall extend to any subsequent or other Default or Event of Default or impair any right
consequent thereto.



          Section 5.13 Undertaking for Costs. All parties to this Indenture agree, and each
Noteholder by such Noteholder’s acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted
by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section 5.13 shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any
suit instituted by any
Noteholder, or group of Noteholders, in each case holding in the aggregate Percentage
Interests of the Outstanding Notes of more than 10% or (c) any suit instituted by any Noteholder
for the enforcement of the payment of principal of or interest on any Note on or after the
respective due dates expressed in such Note and in this Indenture (or, in the case of redemption,
on or after the Redemption Date).




          Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.




          Section 5.15 Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Collateral or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04(b) hereof.




          Section 5.16 Performance and Enforcement of Certain Obligations.




          (a) Promptly following a request from the Indenture Trustee to do so and at the
Administrator’s expense, the Issuer shall take all such lawful action as the Indenture Trustee may
request to compel or secure the performance and observance by the Loan Originators and the
Servicer, as applicable, of each of their obligations to the Issuer under or in connection with
the Sale and Servicing Agreement or the Loan Purchase and Contribution Agreement, and to exercise
any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in
connection with the Sale and Servicing Agreement to the extent and in the manner directed by the
Indenture Trustee, including the transmission of notices of default on the part of a Loan
Originator or the Servicer thereunder and the institution of legal or administrative actions or




33









 








proceedings to compel or secure performance by the Loan Originator or the Servicer of each of
their obligations under the Sale and Servicing Agreement and the Loan Purchase and Contribution
Agreement.



          (b) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at
the direction (which direction shall be in writing or by telephone, confirmed in writing promptly
thereafter) of the Majority Noteholders shall, subject to Section 5.06(c) exercise all rights,
remedies, powers, privileges and claims of
the Issuer against the applicable Loan Originator or the Servicer under or in connection with
the Sale and Servicing Agreement or the Loan Purchase and Contribution Agreement, including the
right or power to take any action to compel or secure performance or observance by the applicable
Loan Originator or the Servicer, as the case may be, of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval, extension, or waiver
under the Sale and Servicing Agreement, and any right of the Issuer to take such action shall be
suspended.




ARTICLE VI




THE INDENTURE TRUSTEE




          Section 6.01 Duties of Indenture Trustee. (a) If an Event of Default has occurred and
is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs.





     (b) Except during the continuance of an Event of Default:




     (i) the Indenture Trustee shall undertake to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Indenture Trustee; and




     (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Indenture Trustee and conforming
to the requirements of this Indenture; provided, however, that the Indenture Trustee
shall examine the certificates and opinions to determine whether or not they conform to
the requirements of this Indenture to the extent specifically set forth herein.



          (c) The Indenture Trustee may not be relieved from liability for its own negligent action,
its own negligent failure to act or its own willful misconduct, except that:





     (i) this paragraph does not limit the effect of paragraph (b) of this Section
6.01;




     (ii) the Indenture Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer unless it is proved that the Indenture Trustee was
negligent in ascertaining the pertinent facts;



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     (iii) the Indenture Trustee shall not be liable with respect to any action it takes
or omits to take in good faith in accordance with a direction received by it
pursuant to Section 5.11 hereof; and




     (iv) Reserved.



          (d) Reserved.




          (e) The Indenture Trustee shall not be liable for interest on any money received by it and
held in a Trust Account except as may be provided in the Sale and Servicing Agreement or as the
Indenture Trustee may agree in writing with the Issuer.




          (f) Money held in trust by the Indenture Trustee shall be segregated from other funds except
to the extent permitted by law or the terms of this Indenture or the Sale and Servicing Agreement.




          (g) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability 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 to believe
that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it; provided, however, that the Indenture Trustee shall not refuse or fail
to perform any of its duties hereunder solely as a result of nonpayment of its normal fees and
expenses and provided, further, that nothing in this Section 6.01(g) shall be construed to limit
the exercise by the Indenture Trustee of any right or remedy permitted under this Indenture or
otherwise in the event of the Issuer’s failure to pay the Indenture Trustee’s fees and expenses
pursuant to Section 6.07 hereof.




          (h) Every provision of this Indenture relating to the conduct or affecting the liability of
or affording protection to the Indenture Trustee shall be subject to the provisions of this
Section 6.01.




          (i) The Indenture Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Event of Default (other than an Event of Default pursuant to Section 5.01 (a) or
(b) hereof) unless a Responsible Officer of the Indenture Trustee shall have received written
notice thereof or otherwise shall have actual knowledge thereof. In the absence of receipt of
notice or such knowledge, the Indenture Trustee may conclusively assume that there is no Event of
Default.




          Section 6.02 Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper person.
The Indenture Trustee need not investigate any fact or matter stated in the document.




          (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of
Counsel.




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          (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee.




          (d) The Indenture Trustee shall not be liable for (i) any action it takes or omits to take in
good faith which it believes to be authorized or within its rights or powers; provided, however,
that such action or omission by the Indenture Trustee does not constitute willful misconduct,
negligence or bad faith; or (ii) any action or inaction on the part of the Custodian.




          (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.




          Section 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with
like rights. However, the Indenture Trustee must comply with Section 6.11 hereof.




          Section 6.04 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the
Notes, shall not be accountable for the Issuer’s use of the proceeds from the Notes, or responsible
for any statement of the Issuer in the Indenture or in any document issued in connection with the
sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication.




          Section 6.05 Notices of Default. If a Default occurs and is continuing and if it is
actually known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail
to each Noteholder and each party to the Master Disposition Confirmation Agreement notice of the
Default within two Business Days after it receives actual notice of such occurrence.




          Section 6.06 Reports by Indenture Trustee to Holders. The Indenture Trustee shall
deliver to each Noteholder such information specifically requested by each Noteholder and in the
Indenture Trustee’s possession and as may be reasonably required to enable such Noteholder to
prepare its federal and state income tax returns.




          Section 6.07 Compensation and Indemnity. As compensation for its services hereunder,
the Indenture Trustee shall be entitled to receive, on each Payment Date, the Indenture Trustee’s
Fee pursuant to Section 8.02(c) hereof (which compensation shall not be limited by any law on
compensation of a trustee of an express trust) and shall be entitled to reimbursement by the
Servicer for all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses shall include the
reasonable compensation
and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel,
accountants and experts. The Issuer agrees to cause the Servicer to indemnify the Indenture
Trustee, the Paying Agent and their officers, directors, employees and agents against any and all
loss, liability or expense (including reasonable attorneys’ fees) incurred by it or them




36









 










in connection with the administration of this trust and the performance of its or their duties
under the Basic Documents. The Indenture Trustee shall notify the Issuer and the Servicer promptly
of any claim for which it may seek indemnity. Failure by the Indenture Trustee so to notify the
Issuer and the Servicer shall not relieve the Issuer or the Servicer of its or their obligations
hereunder. The Issuer shall, or shall cause the Servicer to, defend any such claim; provided,
however, that if the defendants with respect to any such claim include the Issuer and/or the
Servicer and the Indenture Trustee, and the Indenture Trustee shall have reasonably concluded that
there may be legal defenses available to it which are different from or in addition to those
defenses available to the Issuer or the Servicer, as the case may be, the Indenture Trustee shall
have the right, at the expense of the Servicer, to select separate counsel to assert such legal
defenses and to otherwise defend itself against such claim. Neither the Issuer nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through the Indenture Trustee’s own willful misconduct, negligence or bad faith.



          The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section 6.07 shall
survive the discharge of this Indenture and the termination or resignation of the Indenture
Trustee. When the Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(f) or (g) hereof with respect to the Issuer, the expenses are intended to constitute
expenses of administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.




          Notwithstanding anything in this Section 6.07 to the contrary, all amounts due the Indenture
Trustee hereunder shall be payable in the first instance by the Servicer and, if not paid by the
Servicer within 60 days after payment is requested from the Servicer by the Indenture Trustee, in
accordance with the priorities set forth in Section 5.01 of the Sale and Servicing Agreement.




          Section 6.08 Replacement of Indenture Trustee. No resignation or removal of the
Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until
the acceptance of appointment by the successor Indenture Trustee pursuant to this Section 6.08. The
Indenture Trustee may resign at any time by so notifying the Issuer. The Majority Noteholders may
remove the Indenture Trustee (with the consent of the Majority Certificateholders, not to be
unreasonably withheld) by so notifying the Indenture Trustee and may appoint a successor Indenture
Trustee; provided, that all of the reasonable costs and expenses incurred by the Indenture Trustee
in connection with such removal shall be reimbursed to it prior to the effectiveness of such
removal. The Issuer shall remove the Indenture Trustee if:




          (a) the Indenture Trustee fails to comply with Section 6.11 hereof;




          (b) the Indenture Trustee is adjudged a bankrupt or insolvent;




          (c) a receiver or other public officer takes charge of the Indenture Trustee or its property;
or




          (d) the Indenture Trustee otherwise becomes incapable of acting.




          If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of
Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein





37









 




as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor
Indenture Trustee.




          A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have
all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor
Indenture Trustee.




          If a successor Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the
Majority Noteholders may petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee.




          If the Indenture Trustee fails to comply with Section 6.11 hereof, any Noteholder
may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.




          Notwithstanding the replacement of the Indenture Trustee pursuant to this Section
6.08, the Issuer’s and the Administrator’s obligations under Section 6.07 hereof
shall continue for the benefit of the retiring Indenture Trustee.




          Section 6.09 Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the resulting, surviving
or transferee corporation without any further act shall be the successor Indenture Trustee;
provided, however, that such corporation or banking association shall otherwise be qualified and
eligible under Section 6.11 hereof. The Indenture Trustee shall provide the Majority
Noteholders prior written notice of any such transaction.




          In case at the time such successor or successors by merger, conversion or consolidation to
the Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall
have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been authenticated, any
successor to the Indenture Trustee may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all such
cases such certificates shall have the full force which it is anywhere in the Notes or in this
Indenture provided that the certificate of the Indenture Trustee shall have.




          Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.




          (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Collateral may at the
time be located, the Indenture Trustee shall have the power and may




38









 




execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of the Trust, and to vest
in such Person or Persons, in such capacity and for the benefit of the Noteholders, such title to
the Collateral, or any part hereof, and, subject to the other provisions of this Section
6.10, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the
terms of eligibility as a successor trustee under Section 6.11 hereof and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be required under
Section 6.08 hereof.




          (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:





     (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction
in which any particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Collateral or any portion
thereof in any such jurisdiction) shall be exercised and performed singly by such separate
trustee or co-trustee, but solely at the direction of the Indenture Trustee;




     (ii) no trustee hereunder shall be personally liable by reason of any act or omission
of any other trustee hereunder; and




     (iii) the Indenture Trustee may at any time accept the resignation of or remove any
separate trustee or co-trustee.



          (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as effectively as if given
to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, jointly with the Indenture Trustee, subject to all the provisions of
this Indenture, specifically including every provision of this Indenture relating to the conduct
of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee.




          (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture
Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.




39









 





          Section 6.11 Eligibility. The Indenture Trustee shall (i) have a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition or (ii) otherwise be acceptable in writing to the Majority Noteholders.




ARTICLE VII




NOTEHOLDERS’ LISTS AND REPORTS




          Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five
days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of
the Noteholders as of such Record Date, (b) at such other times as the Indenture Trustee may
request in writing, within 30 days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such
list shall be required to be furnished.




          Section 7.02 Preservation of Information. The Indenture Trustee shall preserve, in as
current a form as is reasonably practicable, the names and addresses of the Noteholders contained
in the most recent list furnished to the Indenture Trustee as provided in Section 7.01
hereof and the names and addresses of Noteholders received by the Indenture Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided
in such Section 7.01 upon receipt of a new list so furnished.




          Section 7.03 144A Information.




          (a) To permit compliance with the Securities Act in connection with the sale of the Notes
sold in reliance on Rule 144A, the Issuer shall furnish to the Indenture Trustee the information
required to be delivered under Rule 144A(d)(4) under the Securities Act, if the Issuer is neither
a reporting company under Section 13 or Section 15(d) of the United States Securities Exchange Act
of 1934, as amended, nor exempt from reporting pursuant to Rule 12g3-2(b) under the Exchange Act.




          (b) The Indenture Trustee, to the extent it has any such information in its possession, shall
provide to any Noteholder and any prospective transferee designated by any such Noteholder
information regarding the Notes and the Loans and such other information as shall be necessary to
satisfy the condition to eligibility set forth in Rule 144A(d)(4) under the Securities Act for
transfer of any such Note without registration thereof under the Securities Act pursuant to the
registration exemption provided by Rule 144A under the Securities Act.




ARTICLE VIII




ACCOUNTS, DISBURSEMENTS AND RELEASES




          Section 8.01 Collection of Money. General. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect,
directly and without intervention or assistance of any intermediary, all money and other




40









 




property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except
as otherwise expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the Collateral, the
Indenture Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate Proceedings. Any such action
shall be without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V hereof.




          Section 8.02 Trust Accounts: Distributions, (a) On or prior to the Closing Date, the
Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee
for the benefit of the Noteholders, or on behalf of the Owner Trustee for the benefit of the
Securityholders, the Trust Accounts as provided in the Sale and Servicing Agreement. The Servicer
shall deposit amounts into each of the Trust Accounts in accordance with the terms hereof, the
Sale and Servicing Agreement and the Payment Statements.




          (b) Collection Account. With respect to the Collection Account, the Paying Agent
shall make such withdrawals and distributions as specified in Section 5.01(c)(l) of the
Sale and Servicing Agreement in accordance with the terms thereof.




          (c) Distribution Account. With respect to the Distribution Account, the Paying Agent
shall make (i) such deposits as specified in Sections 5.01(c)(2)(A),. 5.01(c)(2)(B), 5.05(e),
5.05(f), 5.05(g), and 5.05(h) of the Sale and Servicing Agreement and (ii) such
withdrawals and distributions as specified in Section 5.01(c)(3) of the Sale and Servicing
Agreement in accordance with the terms thereof.




          (d) Transfer Obligation Account. With respect to the Transfer Obligation Account, the
Paying Agent shall make (i) such deposits as specified in Section 5.01(c)(3)(vii) of the
Sale and Servicing Agreement and (ii) such withdrawals and distributions as specified in
Sections 5.05(d), 5.05(e), 5.05(f), 5.05(g), 5.05(h), and 5.05(i) of the Sale and
Servicing Agreement in accordance with the terms thereof.




          (e) Reserved.




          (f) Advance Account. With respect to the Advance Account, the Issuer shall cause the
Servicer to make such withdrawals specified in Section 2.06 of the Sale and Servicing
Agreement.




          Section 8.03 General Provisions Regarding Trust Accounts. (a) All or a portion of the
funds in the Collection Account and the Transfer Obligation Account shall be invested in Permitted
Investments in accordance with the provisions of Section 5.03(b) of the Sale and Servicing
Agreement. The Indenture Trustee will not make any investment of any funds or sell any investment
held in the Collection Account or the Transfer Obligation Account (other than in Permitted
Investments in accordance with Section 5.03(b) of the Sale and Servicing Agreement) unless
the security interest Granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further action by any




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\


Person, as evidenced by an Opinion of Counsel delivered to the Indenture Trustee by the Initial
Noteholder or the Servicer, as the case may be.




          (b) Subject to Section 6.01 (c) hereof, the Indenture Trustee shall not in any way be
held liable by reason of any insufficiency in the Collection Account or the Transfer Obligation
Account resulting from any loss on any Eligible Investment included therein.




          (c) If (i) the Initial Noteholder or the Servicer, as the case may be, shall have failed to
give investment directions for any funds on deposit in the Collection Account or the Transfer
Obligation Account to the Indenture Trustee by 2:00 p.m. New York City time (or such other time as
may be agreed by the Issuer and Indenture Trustee) on any Business Day unless the Servicer is then
acting as Paying Agent with respect to such accounts or (ii) a Default or Event of Default shall
have occurred and be continuing with respect to the Notes but the Notes shall not have been
declared due and payable pursuant to Section 5.02 hereof or (iii) if such Notes shall have
been declared due and payable following an Event of Default, amounts collected or receivable from
the Collateral are being applied in accordance with Section 5.05 hereof as if there had
not been such a declaration, then the Indenture Trustee shall, to the fullest extent practicable,
invest and reinvest funds in the Collection Account and the Transfer Obligation Account in one or
more Permitted Investments specified in item (3) in the definition thereof.




          Section 8.04 The Paying Agent. The initial Paying Agent shall be the Servicer. The
Paying Agent may be removed by the Initial Noteholder in its sole discretion at any time. Upon
removal of the Paying Agent, the Initial Noteholder will appoint a successor Paying Agent within
30 days; provided that the Indenture Trustee will be the Paying Agent until such successor is
appointed. Upon receiving written notice from the Initial Noteholder that the Paying Agent has
been terminated, the Indenture Trustee will immediately terminate the Paying Agent’s access to any
and all Trust Accounts.




          Section 8.05 Release of Collateral. (a) Subject to the payment of its reasonable fees
and expenses pursuant to Section 6.07 hereof, the Indenture Trustee may, and when required
by the provisions of this Indenture shall, execute instruments acceptable to it and prepared and
delivered to it by the Issuer to release property from the lien of this Indenture, or convey the
Indenture Trustee’s interest in the same, without recourse, representation or warranty in a manner
as provided in the Custodial Agreement and under circumstances that are not inconsistent with the
provisions of this Indenture and the other Basic Documents. No party relying upon an instrument
executed by the Indenture Trustee as provided in this Article VIII shall be bound to
ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.




          (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due to the Noteholders (and their Affiliates), the Initial Noteholder, the Sales Agents, the
Indenture Trustee, the Owner Trustee and the Custodian under the Basic Documents have been paid,
release any remaining portion of the Collateral that secured the Notes from the lien of this
Indenture and release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Trust Accounts. At such time as the lien of this Indenture is released, the
Indenture Trustee shall cause a termination statement to be filed in any jurisdiction where a UCC
financing statement has been filed hereunder with respect to the Collateral. The




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Indenture Trustee shall release property from the lien of this Indenture pursuant to this
subsection (b) only upon receipt of an Issuer Request accompanied by an Officer’s
Certificate and an Opinion of Counsel meeting the applicable requirements of Section 11.01
hereof.




          Section 8.06 Opinion of Counsel. Except to the extent specifically permitted by the
terms of the Basic Documents, the Indenture Trustee shall receive at least seven Business Days’
prior notice when requested by the Issuer to take any action pursuant to Section 8.05(a)
hereof, accompanied by copies of any instruments involved, and the Indenture Trustee may also
require, as a condition to such action, an Opinion of Counsel, in form and substance satisfactory
to the Indenture Trustee, from the Issuer concluding that all conditions precedent to the taking of
such action have been complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the provisions of this
Indenture; provided, however, that such Opinion of Counsel shall not be required to express an
opinion as to the fair value of the Collateral. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such action.




ARTICLE IX




SUPPLEMENTAL INDENTURES




          Section 9.01 Supplemental Indentures Without the Consent of the Noteholders. Without
the consent of any Noteholder but with prior notice to the Majority Noteholders, the Issuer and
the Indenture Trustee, at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Indenture Trustee, for any of the following
purposes:





     (i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Indenture
Trustee any property subject or required to be subjected to the lien of this Indenture,
or to subject to the lien of this Indenture additional property;




     (ii) to evidence the succession, in compliance with the applicable provisions
hereof, of another Person to the Issuer, and the assumption by any such successor of the
covenants of the Issuer herein and in the Notes contained;




     (iii) to add to the covenants of the Issuer, for the benefit of the Noteholders, or
to surrender any right or power herein conferred upon the Issuer;




     (iv) to convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee;




     (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture that may be inconsistent with any other provision herein or in any
supplemental indenture or to make any other provisions with respect to matters or
questions arising under this Indenture or in any supplemental indenture; provided,
however, that such action shall not adversely affect the interests of the Noteholders; or



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     (vi) to evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Notes and to add to or change any of the provisions
of this Indenture as shall be necessary to facilitate the administration of the trusts
hereunder by more than one trustee, pursuant to the requirements of Article VI hereof.



          The Indenture Trustee is hereby authorized to join in the execution of any such supplemental
indenture and to make any further appropriate agreements and stipulations that may be therein
contained.




          Section 9.02 Supplemental Indentures with Consent of Noteholders. The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, also may, with the consent of the Majority
Noteholders, by Act of such Noteholders delivered to the Issuer and the Indenture Trustee, enter
into an indenture or indentures supplemental hereto for the purpose of adding any provisions to,
or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying
in any manner the rights of any Noteholder under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of each Noteholder affected thereby:




          (a) change the date of payment of any installment of principal of or interest on any Note, or
reduce the principal balance thereof, the interest rate thereon or the Termination Price with
respect thereto, change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Collateral to payment of principal of or
interest on the Notes, or change any place of payment where, or the coin or currency in which, any
Note or the interest thereon is payable, or impair the right to institute suit for the enforcement
of the provisions of this Indenture requiring the application of funds available therefor, as
provided in Article V hereof, to the payment of any such amount due on the Notes on or
after the respective due dates thereof (or, in the case of redemption, on or after the Redemption
Date);




          (b) reduce the Percentage Interest, the consent of the Holders of which is required for any
such supplemental indenture, or the consent of the Holders of which is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults hereunder and their
consequences provided for in this Indenture;




          (c) modify or alter the provisions of the definition of the term “Outstanding” or “Percentage
Interest”;




          (d) reduce the Percentage Interest of the Outstanding Notes, the consent of the Holders of
which is required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the
Collateral pursuant to Section 5.04 hereof;




          (e) modify any provision of this Section 9.02 except to increase any percentage
specified herein or to provide that certain additional provisions of this Indenture or the Basic
Documents cannot be modified or waived without the consent of the Holder of each Outstanding Note
affected thereby;




          (f) modify any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any Note on any




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Payment Date (including the calculation of any of the individual components of such calculation)
or to adversely affect the rights of the Noteholders to the benefit of any provisions for the
mandatory redemption of the Notes contained herein; or




          (g) permit the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Collateral or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or deprive any Noteholder of the security provided by the lien of this Indenture.




          The Indenture Trustee may in its discretion determine whether or not any Notes would be
affected by any supplemental indenture and any such determination shall be conclusive upon each
Noteholder, whether theretofore or thereafter authenticated and delivered hereunder. The
Indenture Trustee shall not be liable for any such determination made in good faith.




          In connection with requesting the consent of the Noteholders pursuant to this Section
9.02, the Indenture Trustee shall mail to the Holders of the Notes to which such amendment or
supplemental indenture relates a notice prepared by the Issuer setting forth in general terms the
substance of such supplemental indenture. It shall not be necessary for any Act of Noteholders
under this Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof.




          Section 9.03 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or
the modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Sections 6.01 and 6.02 hereof, shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Indenture Trustee may, but shall not
be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s
own rights, duties, liabilities or immunities under this Indenture or otherwise.




          Section 9.04 Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be
deemed to be modified and amended in accordance therewith with respect to the Notes affected
thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.




          Section 9.05 Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX
may, and if required by the Indenture Trustee shall, bear a notation in form approved by the
Indenture Trustee as to any matter provided for in such supplemental indenture. If the Issuer or
the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of
the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and




45









 




executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes.




ARTICLE X




REDEMPTION OF NOTES; PUT OPTION




          Section 10.01 Redemption. The Servicer may, at its option, effect an early redemption
of the Notes on any Payment Date on or after the Clean-up Call Date. The Servicer shall effect
such early termination in the manner specified in and subject to the provisions of Section
10.02 of the Sale and Servicing Agreement.




          The Servicer shall furnish the Indenture Trustee with notice of any such redemption in order
to facilitate the Indenture Trustee’s compliance with its obligation to notify the Noteholders of
such redemption in accordance with Section 10.02 hereof.




          Section 10.02 Form of Redemption Notice. Notice of redemption under Section
10.01 hereof shall be by first-class mail, postage prepaid, or by facsimile mailed or
transmitted not later than 10 days prior to the applicable Redemption Date to each Noteholder, as
of the close of business on the Record Date preceding the applicable Redemption Date, at such
Noteholder’s address or facsimile number appearing in the Note Register.




          All notices of redemption shall state:





     (i) the Redemption Date;




     (ii) that on the Redemption Date Noteholders shall receive the Note Redemption
Amount; and




     (iii) the place where such Notes are to be surrendered for payment of the
Termination Price (which shall be the office or agency of the Issuer to be maintained as
provided in Section 3.02 hereof).



          Notice of redemption of the Notes shall be given by the Indenture Trustee in the name of the
Issuer and at the expense of the Servicer. Failure to give to any Noteholder notice of redemption,
or any defect therein, shall not impair or affect the validity of the redemption of any other
Note.




          Section 10.03 Notes Payable on Redemption Date. The Notes to be redeemed shall,
following notice of redemption as required by Section 10.02 hereof (in the case of
redemption pursuant to Section 10.01) hereof, on the Redemption Date become due and
payable at the Note Redemption Amount and (unless the Issuer shall default in the payment of the
Note Redemption Amount) no interest shall accrue thereon for any period after the date to which
accrued interest is calculated for purposes of calculating the Note Redemption Amount. The Issuer
may not redeem the Notes unless all outstanding obligations under the Notes have been paid in
full.




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          Section 10.04 Put Option. The Majority Noteholders may, at their option, put all or
any portion of the Note Principal Balance of the Notes to the Issuer on any date upon giving notice
in the manner set forth in Section 10.05. On each Put Date, the Issuer shall purchase the
Note Principal Balance in the manner specified in and subject to the provisions of Section 10.04 of
the Sale and Servicing Agreement.




          Section 10.05 Form of Put Option Notice. Notice of exercise of a Put Option under
Section 10.04 hereof shall be given by the Majority Noteholders (including to the
Indenture Trustee) by first-class mail, postage prepaid, or by facsimile mailed or transmitted not
later than 5 days prior to the date on which the Notes shall be repurchased by the Issuer.




          Section 10.06 Notes Payable on Put Date. The Note Principal Balance to be put to the
Issuer shall, following notice of the exercise of the Put Option as required by Section 10.05
hereof, on the Put Date become due and payable at the Note Redemption Amount and (unless the
Issuer shall default in the payment of the Note Redemption Amount) no interest shall accrue thereon
for any period after the date to which accrued interest is calculated for purposes of calculating
the Note Redemption Amount.




ARTICLE XI




MISCELLANEOUS




          Section 11.01 Compliance Certificates and Opinions, etc. Upon any application or
request by the Issuer to the Indenture Trustee to take any action under any provision of this
Indenture (except with respect to the Servicer’s servicing activity in the ordinary course of its
business), the Issuer shall furnish to the Indenture Trustee (i) an Officer’s Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with and (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with.




          Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:





	 	(1)	 	a statement that each signatory of such certificate or
opinion has read or has caused to be read such covenant or condition and the
definitions herein relating thereto;
	 
	 	(2)	 	a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;
	 
	 	(3)	 	a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to enable
such signatory to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
	 
	 	(4)	 	a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with.





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          Section 11.02 Form of Documents Delivered to Indenture Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified
Person, it is not necessary that all such matters be certified by, or covered by the opinion of,
only one such Person, or that they be so certified or covered by only one document, but one such
Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters
in one or several documents.




          Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as
it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon which such officer’s
certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Servicer, a Loan Originator, the
Issuer or the Administrator, stating that the information with respect to such factual matters is
in the possession of the Servicer, the Loan Originator, the Issuer or the Administrator, unless
such counsel knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to such matters are erroneous.




          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.




          Whenever in this Indenture, in connection with any application or certificate or report to
the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of
the granting of such application, or as evidence of the Issuer’s compliance with any term hereof,
it is intended that the truth and accuracy, at the time of the granting of such application or at
the effective date of such certificate or report (as the case may be), of the facts and opinions
stated in such document shall in such case be conditions precedent to the right of the Issuer to
have such application granted or to the sufficiency of such certificate or report. The foregoing
shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth
and accuracy of any statement or opinion contained in any such document as provided in Article
VI hereof.




          Section 11.03 Acts of Noteholders, (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to
the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 6.01 hereof)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section 11.03.




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          (b) The fact and date of the execution by any Person of any such instrument or
writing may be proved in any manner that the Indenture Trustee deems sufficient.




          (c) The ownership of Notes shall be proved by the Note Register.




          (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
any Noteholder shall bind the Holder of every Note issued upon the registration thereof or in
exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done
by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action
is made upon such Note.




          Section 11.04 Notices, etc., to Indenture Trustee and Issuer. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders or other documents
provided or permitted by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon, given
or furnished to or filed with:





     (i) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing (including by
facsimile) to or with the Indenture Trustee at P.O. Box 98, Columbia, Maryland 21046,
Attention: Option One Owner Trust 2007-5A, with a copy to it at its Corporate Trust
Office, or




     (ii) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient
for every purpose hereunder if in writing and made, given, furnished, filed or
transmitted via facsimile to the Issuer at: Option One Owner Trust 2007-5A, c/o
Wilmington Trust Company as Owner Trustee, One Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890, Attention: Corporate Trust Department, telecopy
number: (302) 636-4144, telephone number: (302) 636-1000, or at any other address or
facsimile number previously furnished in writing to the Indenture Trustee by the Issuer
or the Administrator. The Issuer shall promptly transmit any notice received by it from
the Noteholders to the Indenture Trustee.



          Section 11.05 Notices to Noteholders: Waiver. Where this Indenture provides for
notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the
manner herein provided shall conclusively be presumed to have duly been given.




          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be




49









 




filed with the Indenture Trustee but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such a waiver.




          In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.




          Section 11.06 Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.




          Section 11.07 Successors and Assigns. All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not.
All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees
and agents.




          Section 11.08 Separability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.




          Section 11.09 Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder, and the Noteholders, and any other party secured hereunder, and any other Person with
an ownership interest in any part of the Collateral, any benefit or any legal or equitable right,
remedy or claim under this Indenture.




          Section 11.10 Legal Holidays. In any case where the date on which any payment is due
shall not be a Business Day, then (notwithstanding any other provision of the Notes or this
Indenture) payment need not be made on such date, but may be made on the next succeeding Business
Day with the same force and effect as if made on the date on which nominally due, and no interest
shall accrue for the period from and after any such nominal date.




          Section 11.11 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, OTHER THAN
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.




          Section 11.12 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.




          Section 11.13 Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at
its expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee




50









 




or any other counsel reasonably acceptable to the Indenture Trustee; provided, however, that the
expense of such Opinion of Counsel shall in no event be an expense of the Indenture Trustee) to
the effect that such recording is necessary either for the protection of the Noteholders or any
other Person secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.




          Section 11.14 Trust Obligation. No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes
or, except as expressly provided for in Article VI hereof, under this Indenture or any
certificate or other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee, agent or “control person” within the meaning of the Securities Act and the Exchange Act,
of the Indenture Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor
or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may expressly have agreed (it being understood that the Indenture Trustee and the Owner
Trustee have no such obligations in their individual capacity) and except that any such partner,
owner or beneficiary of the Issuer shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture, in the performance of
any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.




          Section 11.15 No Petition. The Indenture Trustee, by entering into this Indenture,
and each Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time
institute against the Depositor or the Issuer, or join in any institution against the Depositor or
the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or similar law, in
connection with any obligations relating to the Notes, this Indenture or any of the Basic
Documents.




          Section 11.16 Inspection. The Issuer agrees that, on reasonable prior notice, it will
permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to
examine all the books of account, records, reports and other papers of the Issuer, to make copies
and extracts therefrom, to cause such books to be audited by Independent certified public
accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers, employees, and Independent certified public accountants, all at such reasonable times
and as often as may reasonably be requested and at the expense of the Servicer. The Indenture
Trustee shall and shall cause its representatives to hold in confidence all such information
except to the extent disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the Indenture Trustee may
reasonably determine that such disclosure is consistent with its obligations hereunder.




          Section 11.17 Limitation on Liability. It is expressly understood and agreed by the
parties hereto that (a) this Indenture is executed and delivered by Wilmington Trust Company, not
individually or personally, but solely as Owner Trustee of Option One Owner Trust 2007-5A,




51









 




in the exercise of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the Issuer is made and
intended not as personal representations, undertakings and agreements by Wilmington Trust Company
but is made and intended for the purpose for binding only the Issuer, (c) nothing herein contained
shall be construed as creating any liability on Wilmington Trust Company, individually or
personally, to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any Person claiming by,
through or under the parties hereto and (d) under no circumstances shall Wilmington Trust Company
be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for
the breach or failure of any obligation, representation, warranty or covenant made or undertaken by
the Issuer under this Indenture or any other related documents.





52










 









          IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to
be duly executed by their respective officers, thereunto duly authorized and duly attested, all as
of the day and year first above written.




	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2007-5A
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wilmington Trust Company not in its	 	 
	 

	 	 	 	individual capacity but solely as Owner	 	 
	 

	 	 	 	Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michele C. Harra	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Michele C. Harra	 	 
	 

	 	 	 	Title: Financial Services Officer	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as Indenture Trustee
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Darron C. Woodus	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Darron C. Woodus	 	 
	 

	 	 	 	Title: Assistant Vice President	 	 






Indenture (Option One Owner Trust 2007-5A)







53









 








	 	 	 	 	 	 	 
	STATE OF Maryland

	)	 	 	 	 	 
	 

	 )ss.:
	 	 	 
	COUNTY OF Howard

	)	 	 	 	 	 






          BEFORE ME, the undersigned authority, a Notary Public in and for said county and state,
on this day personally appeared Darron Woodus, known to me to be the person and officer whose name
is subscribed to the foregoing instrument and acknowledged to me that the same was the act of WELLS
FARGO BANK, N.A., and that such person executed the same as the act of said corporation for the
purpose and consideration therein stated.




          GIVEN UNDER MY HAND AND SEAL OF OFFICE, this        day of January, 2007.




	 	 	 	 	 
	 

	 	/s/ Jennifer Richardson	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 
	 
	 	 	 	 
	(Seal)
	 	JENNIFER RICHARDSON	 	 
	 
	 	NOTARY PUBLIC	 	 
	My commission expires:
	 	ANNE ARUNDEL COUNTY	 	 
	 
	 	MARYLAND	 	 
	     4-1-2010
	 	MY COMMISSION EXPIRES APR. 1, 2010	 	 






Indenture (Option One Owner Trust 2007-5A)







54









 








	 	 	 	 	 	 	 
	STATE OF delaware

	 	)	 	 	 	 
	 

	 	  )ss:
	 	 
	COUNTY OF new castle

	 	)	 	 	 	 






          BEFORE ME, the undersigned authority, a Notary Public in and for said county
and state, on this day personally appeared Michele Harra, known to me to be
the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me
that the same was the act of the said Wilmington Trust Company, a Delaware banking corporation,
not in its individual capacity, but solely as Owner Trustee on behalf of OPTION ONE OWNER TRUST
2007-5A, a Delaware statutory trust, and that such person executed the same as the act of said
statutory trust for the purpose and consideration therein expressed, and in the capacities therein
stated.




          GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 29 day of January, 2007.




	 	 	 	 	 	 	 
	 

	 	 	 	/s/ Robert J. Perkins	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Notary Public	 	 
	 
	 	 	 	 	 	 
	(Seal)
	 	 	 	 	 	 
	 
	 	ROBERT J. PERKINS	 	 	 	 
	My commission expires:
	 	Notary Public - State of Delaware	 	 	 	 
	 
	 	My Comm. Expires May 30, 2008	 	 	 	 
	 


	 	 	 	 	 	 






Indenture (Option One Owner Trust 2007-5A)







55









 








EXHIBIT A




FORM OF NOTE



THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE MAXIMUM NOTE
PRINCIPAL BALANCE SHOWN ON THE FACE HEREOF. ANY PURCHASER OF THIS NOTE MAY ASCERTAIN THE
OUTSTANDING PRINCIPAL AMOUNT HEREOF BY INQUIRY OF THE INDENTURE TRUSTEE.



THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR
ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.



THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
NOTE ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE 1933
ACT, (B) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE 1933 ACT,
TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A
UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A OR (C) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)(1),
(2),(3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933
ACT, IN EACH CASE IN COMPLIANCE WITH THE REQUIREMENTS OF THE INDENTURE AND APPLICABLE STATE
SECURITIES LAWS.



THIS NOTE MAY NOT BE TRANSFERRED UNLESS THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM THE
TRANSFEREE TO THE EFFECT THAT EITHER (I) THE TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (EACH, A
“PLAN”), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN OR (II) IF THE TRANSFEREE
IS A PLAN OR IS ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN, EITHER THAT NO PROHIBITED
TRANSACTION WITHIN THE MEANING OF SECTION 406(a) OF





56









 







ERISA OR SECTION 4975 OF THE CODE WOULD OCCUR UPON THE TRANSFER OF THE NOTE OR THAT THE CONDITIONS
FOR EXEMPTIVE RELIEF UNDER A PROHIBITED TRANSACTION EXEMPTION HAS BEEN SATISFIED INCLUDING BUT NOT
LIMITED TO, PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 96-23 (RELATING TO TRANSACTIONS
EFFECTED BY AN “IN-HOUSE ASSET MANAGER”), PTCE 95-60 (RELATING TO TRANSACTIONS INVOLVING INSURANCE
COMPANY GENERAL ACCOUNTS), PTCE 91-38 (RELATING TO TRANSACTIONS INVOLVING BANK COLLECTIVE
INVESTMENT FUNDS), PTCE 90-1 (RELATING TO TRANSACTIONS INVOLVING INSURANCE COMPANY POOLED SEPARATE
ACCOUNTS) AND PTCE 84-14 (RELATING TO TRANSACTIONS EFFECTED BY A “QUALIFIED PROFESSIONAL ASSET
MANAGER”).




57









 








Maximum Note Principal Balance: $                    

Initial Percentage Interest: ___%

No.___




OPTION ONE OWNER TRUST 2007-5A




MORTGAGE-BACKED NOTES




          OPTION ONE OWNER TRUST 2007-5A, a Delaware statutory trust (the
“Issuer”), for value received, hereby promises to pay to                                                            ,
or registered assigns (the “Noteholder”), the principal sum of                                         
($___) or so much thereof as may be advanced and outstanding hereunder and to pay
interest on such principal sum or such part thereof as shall remain unpaid from time to time, at
the rate and at the times provided in the Sale and Servicing Agreement and the Indenture.
Principal of this Note is payable on each Payment Date in an amount equal to the result obtained
by multiplying (i) the Percentage Interest of this Note by (ii) the principal amount distributed
in respect of such Payment Date.




          The Outstanding Note Principal Balance of this Note bears interest at the Note Interest Rate.
On each Payment Date amounts in respect of interest on this Note will be paid in an amount equal
to the result obtained by multiplying (i) the Percentage Interest of this Note by (ii) the
aggregate amount paid in respect of interest on the Notes with respect to such Payment Date.




          Capitalized terms used but not defined herein have the meanings set forth in the Indenture
(the “Indenture”), dated as of January 1, 2007 between the Issuer and Wells Fargo Bank, N.A., as
Indenture Trustee (the “Indenture Trustee”) or, if not defined therein, the Sale and Servicing
Agreement (the “Sale and Servicing Agreement”), dated as of January 1, 2007 among the
Issuer, the Depositor, the Servicer, the Loan Originators and the Indenture Trustee on behalf of
the Noteholders.




          By its acceptance of this Note, each Noteholder covenants and agrees, until the earlier of
(a) the termination of the Revolving Period and (b) the Maturity Date, on each Transfer Date to
advance amounts in respect of Additional Note Principal Balance hereunder to the Issuer, subject
to and in accordance with the terms of the Indenture, the Sale and Servicing Agreement and the
Note Purchase Agreement.




          In the event of an advance of Additional Note Principal Balance by the Noteholders as
provided in Section 2.01(c) of the Sale and Servicing Agreement, each Noteholder shall,
and is hereby authorized to, record on the schedule attached to its Note the date and amount of
any Additional Note Principal Balance advanced by it, and each repayment thereof; provided that
failure to make any such recordation on such schedule or any error in such schedule shall not
adversely affect any Noteholder’s rights with respect to its Additional Note Principal Balance and
its right to receive interest payments in respect of the Additional Note Principal Balance held by
such Noteholder.




58









 








          Absent manifest error, the Note Principal Balance of each Note as set forth in the notations
made by the related Noteholder on such Note shall be binding upon the Indenture Trustee and the
Issuer; provided that failure by a Noteholder to make such recordation on its Note or any error in
such notation shall not adversely affect any Noteholder’s rights with respect to its Note
Principal Balance and its right to receive principal and interest payments in respect thereof.




          The Servicer may, at its option, effect an early redemption of the Notes for an amount equal
to the Note Redemption Amount on any Payment Date on or after the Clean-up Call Date. The Servicer
shall effect such early termination by providing notice thereof to the Indenture Trustee and Owner
Trustee and by purchasing all of the Loans at a purchase price, payable in cash, equal to the
Termination Price.




          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.




          The statements in the legend set forth above are an integral part of the terms of this Note
and by acceptance hereof each Holder of this Note agrees to be subject to and bound by the terms
and provisions set forth in such legend.




          Unless the Certificate of authentication hereon shall have been executed by an authorized
officer of the Indenture Trustee, by manual signature, this Note shall not entitle the Noteholder
hereof to any benefit under the Indenture or the Sale and Servicing Agreement and/or be valid for
any purpose.




          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK AND WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW.




59









 








          IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.




Date: January       , 2007




	 	 	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2007-5A
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Wilmington Trust Company, not in its	 	 
	 

	 	 	 	individual capacity but solely as Owner	 	 
	 

	 	 	 	Trustee under the Trust Agreement	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 






INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION




          This is one of the Notes designated above and referred to in the within-mentioned
Indenture.




Date: January       , 2007




	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., not in its individual
	 	 	capacity but solely as Indenture Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 






60









 






[Reverse of Note]




          This Note is one of the duly authorized Notes of the Issuer, designated as its
Mortgage-Backed Notes (herein called the “Notes”), all issued under the Indenture. Reference is
hereby made to the Indenture and all indentures supplemental thereto, and the Sale and Servicing
Agreement for a statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes. To the extent that any provision of this Note
contradicts or is inconsistent with the provisions of the Indenture or the Sale and Servicing
Agreement, the provisions of the Indenture or the Sale and Servicing Agreement, as applicable,
shall control and supersede such contradictory or inconsistent provision herein. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement.




          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied in accordance
with the Indenture and the Sale and Servicing Agreement.




          The entire unpaid principal amount of this Note shall be due and payable on the earlier of
the Maturity Date, the Redemption Date and the Final Put Date, if any, pursuant to
Articles X of the Sale and Servicing Agreement and the Indenture. Notwithstanding the foregoing, the
entire unpaid principal amount of the Notes shall be due and payable on the date on which an Event
of Default shall have occurred and be continuing and the Indenture Trustee, at the direction or
upon the prior written consent of the Majority Noteholders, has declared the Notes to be
immediately due and payable in the manner provided in Section 5.02 of the Indenture. All
principal payments on the Notes shall be made pro rata to the Holders of the Notes entitled
thereto.




          The Collateral secures this Note and all other Notes equally and ratably without prejudice,
priority or distinction between any Note and any other Note. The Notes are non-recourse
obligations of the Issuer and are limited in right of payment to amounts available from the
Collateral, as provided in the Indenture. The Issuer shall not otherwise be liable for payments on
the Notes, and none of the owners, agents, officers, directors, employees, or successors or
assigns of the Issuer shall be personally liable for any amounts payable, or performance due,
under the Notes or the Indenture.




          Any installment of interest or principal on this Note shall be paid on the applicable Payment
Date to the Person in whose name this Note (or one or more Predecessor Notes) is registered in the
Note Register as of the close of business on the related Record Date by wire transfer in
immediately available funds to the account specified in writing by the related Noteholder to the
extent provided by the Indenture and otherwise by check mailed to the Noteholder.




          Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. Any increase in the principal




61









 







amount of this Note (or any one or more Predecessor Notes) effected by payments to the
Issuer of Additional Note Principal Balances shall be binding upon the Issuer and shall inure to
the benefit of all future Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon.




          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in the form
attached hereto duly executed by, the Holder hereof or such Holder’s attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Securities Transfer Agent’s Medallion Program (“STAMP”), and thereupon one or
more new Notes of authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Note, but the Issuer may require the Noteholder to pay
a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any such registration of transfer or exchange.




          Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of
the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any
certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee
or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee or “control
person” within the meaning of the 1933 Act and the Exchange Act of the Indenture Trustee or the
Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or
the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed
and except that any such partner, owner or beneficiary shall be fully liable, to the extent
provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity.




          Each Noteholder, by acceptance of a Note or a beneficial interest in a Note, covenants and
agrees by accepting the benefits of the Indenture that such Noteholder will not at any time
institute against the Issuer, or join in any institution against the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating to the Notes or the
Basic Documents.




          The Issuer has entered into the Indenture and this Note is issued with the intention that,
for federal, state and local income, single business and franchise tax purposes, the Notes will
qualify as indebtedness of the Issuer secured by the Collateral. Each Noteholder, by acceptance of
a Note, agrees to treat the Notes for federal, state and local income, single business and
franchise tax purposes as indebtedness of the Issuer. Each Noteholder, by its acceptance of a
Note, represents and warrants that the number of ICA Owners with respect to all of its Notes shall
not exceed four.




62









 








          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.




          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Majority Noteholders.
The Indenture also contains provisions permitting the Holders of Notes representing specified
Percentage Interests of the Outstanding Notes, on behalf of all of the Noteholders, to waive
compliance by the Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any
one or more Predecessor Notes) shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note.
The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set
forth in the Indenture without the consent of any Noteholder.




          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.




          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.




          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.




          Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of the Issuer in its individual capacity, the Owner Trustee in its individual
capacity, any owner of a beneficial interest in the Issuer, or any of their respective partners,
beneficiaries, agents, officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of principal of or interest
on this Note or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Indenture. The Holder of this Note by its acceptance hereof
agrees that, except as expressly provided in the Basic Documents, in the case of an Event of
Default under the Indenture, the Holder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this Note.




63









 








ASSIGNMENT




Social Security or taxpayer I.D. or other identifying number of assignee:




          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:



 



(name and address of assignee)



the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Note on the books kept for registration thereof, with full power of
substitution in the premises.




Dated:                     




	 	 	 	 	 
	 

	 	 	 	*/
	 

	 	 	 	 
	 

	 	Signature Guaranteed:	 	 
	 
	 	 	 	 
	 

	 	 	 	*/
	 

	 	 	 	 




 




*/NOTICE: The signature to this assignment must correspond with the name of the registered owner
as it appears on the face of the within Note in every particular, without alteration, enlargement
or any change whatever. Such signature must be guaranteed by an “eligible guarantor institution”
meeting the requirements of STAMP.




64









 








Schedule to Note

dated as of January, 2007

of OPTION ONE OWNER TRUST 2007-5A




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date of advance	 	Amount of	 	 	 	 	 	 	 	 	 	 
	of Additional	 	advance of	 	 	 	 	 	 	 	 	 	 
	Note Principal	 	Additional Note	 	 	Percentage	 	 	Aggregate Note	 	 	Note Principal	 
	Balance	 	Principal Balance	 	 	Interest	 	 	Principal Balance	 	 	Balance of Note	 
	 
	 	 	 	 	 	 	100	%	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 





65









 






EXHIBIT B-l




FORM OF RULE 144A TRANSFEROR CERTIFICATE




Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services — Option One Owner Trust 2007-5A




          Re:     Option One Owner Trust 2007-5A




          Reference is hereby made to the Indenture dated as of January 1, 2007 (the “Indenture”)
between Option One Owner Trust 2007-5A (the “Trust”) and Wells Fargo Bank, N.A. (the “Indenture
Trustee”). Capitalized terms used but not defined herein shall have the meanings given to them in
the Sale and Servicing Agreement dated as of January 1, 2007 among the Trust, Option One Loan
Warehouse Corporation (the “Depositor”), Option One Mortgage Corporation (the “Servicer” and a
“Loan Originator”), Option One Mortgage Capital Corporation (a “Loan Originator”, and together with
Option One Mortgage Corporation the “Loan Originators”) and the Indenture Trustee.




          The undersigned (the “Transferor”) has requested a transfer of $                      current
principal balance Notes to [insert name of transferee].




          In connection with such request, and in respect of such Notes, the Transferor hereby certifies
that such Notes are being transferred in accordance with (i) the transfer restrictions set forth in
the Indenture and the Notes and (ii) Rule 144A under the Securities Act of 1933, as amended to a
purchaser that the Transferor reasonably believes is a “qualified institutional buyer” within the
meaning of Rule 144A purchasing for its own account or for the account of a “qualified
institutional buyer,” which purchaser is aware that the sale to it is being made in reliance upon
Rule 144A, in a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other applicable jurisdiction.




          This certificate and the statements contained herein are made for your benefit and the
benefit of the Depositor.




	 	 	 	 	 	 	 
	 	 	 
	[Name of Transferor]	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:	, 	 	 	 
	 

	 	 	 	 	 	 






66









 







EXHIBIT B-2




FORM OF TRANSFEREE CERTIFICATE FOR

INSTITUTIONAL ACCREDITED INVESTOR




Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services — Option One Owner Trust 2007-5A




          Re:     Option One Owner Trust 2007-5A




          In connection with our proposed purchase of $                      Note Principal
Balance Mortgage-Backed Notes (the “Offered Notes”) issued by Option One Owner Trust 2007-5A, we
confirm that:





	(1)	 	We understand that the Offered Notes have not been, and will not be, registered under the
Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws, and
may not be sold except as permitted in the following sentence. We agree, on our own
behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if
we should sell any Offered Notes we will do so only (A) pursuant to a registration
statement which has been declared effective under the 1933 Act, (B) for so long as the
Offered Notes are eligible for resale pursuant to Rule 144A under the 1933 Act, to a
Person we reasonably believe is a “qualified institutional buyer” as defined in Rule 144A
that purchases for its own account or for the account of a qualified institutional buyer to
whom notice is given that the transfer is being made in reliance on Rule 144A or (C) to
an institutional “accredited investor” within the meaning of subparagraph (a)(l), (2), (3)
or (7) of Rule 501 under the 1933 Act (an “Institutional Accredited Investor”) that is
acquiring the Offered Notes for its own account, or for the account of such an
Institutional Accredited Investor, for investment purposes and not with a view to, or for
offer or sale in connection with, any distribution in violation of the 1933 Act, in each
case in compliance with the requirements of the Indenture dated as of January 1, 2007
between Option One Owner Trust 2007-5A and Wells Fargo Bank, N.A., as Indenture
Trustee, and applicable state securities laws; and we further agree, in the capacities
stated above, to provide to any person purchasing any of the Offered Notes from us a notice
advising such purchaser that resales of the Offered Notes are restricted as stated herein.
	 
	(2)	 	We understand that, in connection with any proposed resale of any Offered Notes to an
Institutional Accredited Investor, we will be required to furnish to the Indenture Trustee
and the Depositor a certification from such transferee as provided in Section 2.12 of the
Indenture to confirm that the proposed sale is being made pursuant to an exemption from,
or in a transaction not subject to, the registration requirements of the 1933 Act and
applicable state securities laws. We further understand that the Offered Notes purchased
by us will bear a legend to the foregoing effect.




67









 












	(3)	 	We are acquiring the Offered Notes for investment purposes and not with a view to, or
for offer or sale in connection with, any distribution in violation of the 1933 Act. We
have such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of our investment in the Offered Notes, and we and any
account for which we are acting are each able to bear the economic risk of such
investment.
	 
	(4)	 	We are an Institutional Accredited Investor and we are acquiring the Offered Notes
purchased by us for our own account or for one or more accounts (each of which is an
Institutional Accredited Investor) as to each of which we exercise sole investment
discretion.
	 
	(5)	 	We have received such information as we deem necessary in order to make our
investment decision.
	 
	(6)	 	We either (i) are not, and are not acquiring the Offered Notes on behalf of or with the
assets of, an employee benefit plan or other retirement plan or arrangement subject to
Title I of ERISA or Section 4975 of the Code, or (ii) are, or are acquiring the Offered
Notes on behalf of or with the assets of, an employee benefit plan or other retirement plan
or arrangement subject to Title I of ERISA of Section 4975 of the Code and either no
prohibited transaction within the meaning of Section 406(a) of ERISA or Section 4975 of
the Code will occur upon the transfer of the Note or the conditions for exemptive relief
under a prohibited transaction exemption has been satisfied, including but not limited to,
Prohibited Transaction Class Exemption (“PTCE”) 96-23 (relating to transactions
effected by an “in-house asset manager”), PTCE 95-60 (relating to transactions involving
insurance company general accounts), PTCE 91-38 (relating to transactions involving
bank collective investment funds), PTCE 90-1 (relating to transactions involving
insurance company pooled separate accounts), and PTCE 84-14 (relating to transactions
effected by a “qualified professional asset manager”).





          Terms used in this letter which are not otherwise defined herein have the respective meanings
assigned thereto in the Indenture.




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          You and the Depositor are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.




	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Name of Transferor]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:                     , ___
	 	 	 	 	 	 






69









 






EXHIBIT B-3




FORM OF RULE 144A TRANSFEREE CERTIFICATE




Wells Fargo Bank, N.A.

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust Services — Option One Owner Trust 2007-5A




          Re:     Option One Owner Trust 2007-5A




          1. The undersigned is the ___of                      (the “Investor”), a
[corporation duly organized] and existing under the laws of                      on behalf of
which he makes this affidavit.




          2. The Investor either (i) is not, and is not acquiring the Option One Owner Trust
2007-5A Notes (the “Notes”) on behalf of or with the assets of, an employee benefit plan or
other retirement plan or arrangement subject to Title I of ERISA or Section 4975 of the Code,
or (ii) is, or is acquiring the Notes on behalf of or with the assets of, an employee benefit
plan or other retirement plan or arrangement subject to Title I of ERISA of Section 4975 of the Code
and either no prohibited transaction within the meaning of Section 406(a) of ERISA or Section 4975
of the Code would occur upon the transfer of the Note or the conditions for exemptive relief
under a prohibited transaction exemption has been satisfied, including but not limited to,
Prohibited Transaction Class Exemption (“PTCE”) 96-23 (relating to transactions effected by an
“in-house asset manager”), PTCE 95-60 (relating to transactions involving insurance company
general accounts), PTCE 91-38 (relating to transactions involving bank collective investment
funds), PTCE 90-1 (relating to transactions involving insurance company pooled separate
accounts), and PTCE 84-14 (relating to transactions effected by a “qualified professional
asset manager”).




          3. The Investor understands that the Notes have not been, and will not be, registered
under the Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws,
and may not be sold except as permitted in the following sentence. The Investor agrees, on its own
behalf and on behalf of any accounts for which it is acting as hereinafter stated, that if it
should sell any Notes it will do so only (A) pursuant to a registration statement which has been
declared effective under the 1933 Act, (B) for so long as the Notes are eligible for resale pursuant to
Rule 144A under the 1933 Act, to a Person it reasonably believes is a “qualified institutional
buyer” as defined in Rule 144A that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the transfer is being made in reliance on
Rule 144A or (C) to an institutional “accredited investor” within the meaning of subparagraph (a)
(1), (2), (3) or (7) of Rule 501 under the 1933 Act (an “Institutional Accredited Investor”) that
is acquiring the Notes for its own account, or for the account of such an Institutional
Accredited Investor, for investment purposes and not with a view to, or for offer or sale in connection
with, any distribution in violation of the 1933 Act, in each case in compliance with the
requirements of the Indenture dated as of January 1, 2007 between Option One Owner Trust 2007-5 A and Wells
Fargo Bank, N.A., as Indenture Trustee, and applicable state securities laws; and the Investor
further agrees, in the capacities stated above, to provide to any person purchasing any of the





70









 







Notes from it a notice advising such purchaser that resales of the Notes are restricted as
stated herein.




[FOR TRANSFERS IN RELIANCE UPON RULE 144A]




          4. The Investor is a “qualified institutional buyer” (as such term is defined under Rule 144A
under the Securities Act of 1933, as amended (the “1933 Act”), and is acquiring the Notes for its
own account or as a fiduciary or agent for others (which others also are “qualified institutional
buyers”). The Investor is familiar with Rule 144A under the 1933 Act, and is aware that the
transferor of the Notes and other parties intend to rely on the statements made herein and the
exemption from the registration requirements of the 1933 Act provided by Rule 144A.




	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Name of Transferor]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:                     , ___
	 	 	 	 	 	 






71









 






EXHIBIT C



THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”),
OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.



THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
NOTE ONLY (A) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
1933 ACT, (B) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE 1933
ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE 1933 ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A OR (C) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A) (1),
(2), (3) OR (7) OF RULE 501 UNDER THE 1933 ACT THAT IS ACQUIRING THE NOTE FOR ITS OWN ACCOUNT, OR
FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE 1933
ACT, IN EACH CASE IN COMPLIANCE WITH THE REQUIREMENTS OF THE INDENTURE AND APPLICABLE STATE
SECURITIES LAWS.



THIS NOTE MAY NOT BE TRANSFERRED UNLESS THE INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM THE
TRANSFEREE TO THE EFFECT THAT EITHER (I) THE TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER
RETIREMENT PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974, AS AMENDED, OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (EACH, A
“PLAN”), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN OR (II) IF THE TRANSFEREE
IS A PLAN, OR IS ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN, THE CONDITIONS FOR
EXEMPTIVE RELIEF UNDER AT LEAST ONE OF THE FOLLOWING PROHIBITED TRANSACTION CLASS EXEMPTIONS HAVE
BEEN SATISFIED: PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 96-23 (RELATING TO TRANSACTIONS
EFFECTED BY AN “IN-HOUSE ASSET MANAGER”), PTCE 95-60 (RELATING TO TRANSACTIONS INVOLVING INSURANCE
COMPANY GENERAL ACCOUNTS), PTCE 91-38 (RELATING TO TRANSACTIONS INVOLVING BANK COLLECTIVE
INVESTMENT FUNDS), PTCE 90-1 (RELATING TO TRANSACTIONS INVOLVING INSURANCE COMPANY POOLED SEPARATE
ACCOUNTS) AND PTCE 84-14 (RELATING TO TRANSACTIONS EFFECTED BY A “QUALIFIED PROFESSIONAL ASSET
MANAGER”).





72