Document:

<PAGE>

                                                                  EXECUTION COPY

             STRUCTURED ASSET SECURITIES CORPORATION, as Depositor,

                 AURORA LOAN SERVICES INC., as Master Servicer,

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
                           as Securities Administrator

                                       and

                            HSBC Bank USA, as Trustee

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

                                 TRUST AGREEMENT

                            Dated as of June 1, 2003

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

                     STRUCTURED ASSET SECURITIES CORPORATION
                       MORTGAGE PASS-THROUGH CERTIFICATES
                                 SERIES 2003-22A

<PAGE>

                                                  Table of Contents
<TABLE>
<CAPTION>
                                                                                                               Page
<S>                <C>                                                                                         <C>
Article I          DEFINITIONS...................................................................................6

         Section 1.01.         Definitions.......................................................................6

         Section 1.02.         Calculations Respecting Mortgage Loans...........................................38

Article II          DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES..............................................39

         Section 2.01.         Creation and Declaration of Trust Fund; Conveyance of Mortgage Loans.............39

         Section 2.02.         Acceptance of Trust Fund by Trustee: Review of Documentation for Trust Fund......42

         Section 2.03.         Representations and Warranties of the Depositor..................................44

         Section 2.04.         Discovery of Breach..............................................................46

         Section 2.05.         Repurchase, Purchase or Substitution of Mortgage Loans...........................46

         Section 2.06.         Grant Clause.....................................................................47

Article III        THE CERTIFICATES.............................................................................48

         Section 3.01.         The Certificates.................................................................48

         Section 3.02.         Registration.....................................................................49

         Section 3.03.         Transfer and Exchange of Certificates............................................49

         Section 3.04.         Cancellation of Certificates.....................................................55

         Section 3.05.         Replacement of Certificates......................................................55

         Section 3.06.         Persons Deemed Owners............................................................56

         Section 3.07.         Temporary Certificates...........................................................56

         Section 3.08.         Appointment of Paying Agent......................................................56

         Section 3.09.         Book-Entry Certificates..........................................................57

Article IV         ADMINISTRATION OF THE TRUST FUND.............................................................58

         Section 4.01.         Collection Account...............................................................58

         Section 4.02.         Application of Funds in the Collection Account...................................60

         Section 4.03.         Reports to Certificateholders....................................................62

         Section 4.04.         Certificate Account..............................................................65

         Section 4.05.         [Reserved].......................................................................66

         Section 4.06.         [Reserved].......................................................................66
</TABLE>

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                                                 Table of Contents
                                                    (continued)
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<S>                <C>                                                                                         <C>
Article V         DISTRIBUTIONS TO HOLDERS OF CERTIFICATES......................................................66

         Section 5.01.         Distributions Generally..........................................................66

         Section 5.02.         Distributions from the Certificate Account.......................................67

         Section 5.03.         Allocation of Realized Losses....................................................72

         Section 5.04.         Advances by Master Servicer and the Securities Administrator.....................74

         Section 5.05.         Compensating Interest Payments...................................................75

Article VI        CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR; EVENTS OF DEFAULT....................75

         Section 6.01.         Duties of Trustee and Securities Administrator...................................75

         Section 6.02.         Certain Matters Affecting the Trustee and the Securities Administrator...........78

         Section 6.03.         Trustee and Securities Administrator Not Liable for Certificates.................79

         Section 6.04.         Trustee and Securities Administrator May Own Certificates........................80

         Section 6.05.         Eligibility Requirements for Trustee and Securities Administrator................80

         Section 6.06.         Resignation and Removal of Trustee and Securities Administrator..................80

         Section 6.07.         Successor Trustee and Successor Securities Administrator.........................81

         Section 6.08.         Merger or Consolidation of Trustee or Securities Administrator...................82

         Section 6.09.         Appointment of Co-Trustee, Separate Trustee or Custodian.........................82

         Section 6.10.         Authenticating Agents............................................................84

         Section 6.11.         Indemnification of Trustee and Securities Administrator..........................84

         Section 6.12.         Fees and Expenses of Securities Administrator, Trustee and Custodian.............85

         Section 6.13.         Collection of Monies.............................................................85

         Section 6.14.         Events of Default; Securities Administrator To Act; Appointment of Successor.....86

         Section 6.15.         Additional Remedies of Trustee Upon Event of Default.............................90

         Section 6.16.         Waiver of Defaults...............................................................90

         Section 6.17.         Notification to Holders..........................................................91

         Section 6.18.         Directions by Certificateholders and Duties of Trustee During Event of Default...91

         Section 6.19.         Action Upon Certain Failures of the Master Servicer and Upon Event of Default....91

         Section 6.20.         Preparation of Tax Returns and Other Reports.....................................92
</TABLE>

                                                         ii

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                                                 Table of Contents
                                                    (continued)
<TABLE>
<CAPTION>
                                                                                                               Page
<S>                <C>                                                                                         <C>
Article VII        PURCHASE AND TERMINATION OF THE TRUST FUND...................................................93

         Section 7.01.         Termination of Trust Fund Upon Repurchase or Liquidation of All Mortgage
                               Loans............................................................................93

         Section 7.02.         Procedure Upon Termination of Trust Fund.........................................94

         Section 7.03.         Additional Requirements under the REMIC Provisions...............................95

Article VIII       RIGHTS OF CERTIFICATEHOLDERS.................................................................96

         Section 8.01.         Limitation on Rights of Holders..................................................96

         Section 8.02.         Access to List of Holders........................................................96

         Section 8.03.         Acts of Holders of Certificates..................................................97

Article IX         ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER........................98

         Section 9.01.         Duties of the Master Servicer....................................................98

         Section 9.02.         Master Servicer Fidelity Bond and Master Servicer Errors and Omissions
                               Insurance Policy.................................................................98

         Section 9.03.         Master Servicer's Financial Statements and Related Information...................99

         Section 9.04.         Power to Act; Procedures.........................................................99

         Section 9.05.         Servicing Agreements Between the Master Servicer and Servicers;
                               Enforcement of Servicers' Obligations...........................................101

         Section 9.06.         Collection of Taxes, Assessments and Similar Items..............................102

         Section 9.07.         Termination of Servicing Agreements; Successor Servicers........................102

         Section 9.08.         Master Servicer Liable for Enforcement..........................................103

         Section 9.09.         No Contractual Relationship Between Servicers and Trustee or Depositor..........103

         Section 9.10.         Assumption of Servicing Agreement by Securities Administrator...................103

         Section 9.11.         "Due-on-Sale" Clauses; Assumption Agreements....................................104

         Section 9.12.         Release of Mortgage Files.......................................................104

         Section 9.13.         Documents, Records and Funds in Possession of Master Servicer To Be Held
                               for Trustee.....................................................................105

         Section 9.14.         Representations and Warranties of the Master Servicer...........................107

         Section 9.15.         Closing Certificate and Opinion.................................................109
</TABLE>

                                                        iii
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                                                 Table of Contents
                                                    (continued)
<TABLE>
<CAPTION>
                                                                                                               Page
<S>                <C>                                                                                         <C>
         Section 9.16.         Standard Hazard and Flood Insurance Policies....................................109

         Section 9.17.         Presentment of Claims and Collection of Proceeds................................110

         Section 9.18.         Maintenance of the Primary Mortgage Insurance Policies..........................110

         Section 9.19.         Trustee To Retain Possession of Certain Insurance Policies and Documents........110

         Section 9.20.         Realization Upon Defaulted Mortgage Loans.......................................111

         Section 9.21.         Compensation to the Master Servicer.............................................111

         Section 9.22.         REO Property....................................................................112

         Section 9.23.         [Reserved]......................................................................113

         Section 9.24.         Reports to the Trustee and the Securities Administrator.........................113

         Section 9.25.         Annual Officer's Certificate as to Compliance...................................113

         Section 9.26.         Annual Independent Accountants' Servicing Report................................114

         Section 9.27.         Merger or Consolidation.........................................................115

         Section 9.28.         Resignation of Master Servicer..................................................115

         Section 9.29.         Assignment or Delegation of Duties by the Master Servicer.......................115

         Section 9.30.         Limitation on Liability of the Master Servicer and Others.......................116

         Section 9.31.         Indemnification; Third-Party Claims.............................................117

Article X          REMIC ADMINISTRATION........................................................................117

         Section 10.01.        REMIC and Grantor Trust Administration..........................................117

         Section 10.02.        Prohibited Transactions and Activities..........................................120

         Section 10.03.        Indemnification with Respect to Certain Taxes and Loss of REMIC Status..........120

         Section 10.04.        REO Property....................................................................120

Article XI         MISCELLANEOUS PROVISIONS....................................................................121

         Section 11.01.        Binding Nature of Agreement; Assignment.........................................121

         Section 11.02.        Entire Agreement................................................................121

         Section 11.03.        Amendment.......................................................................122

         Section 11.04.        Voting Rights...................................................................123

         Section 11.05.        Provision of Information........................................................123

         Section 11.06.        Governing Law...................................................................123

         Section 11.07.        Notices.........................................................................124
</TABLE>

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                                                    (continued)
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<CAPTION>
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<S>                <C>                                                                                         <C>
         Section 11.08.        Severability of Provisions......................................................124

         Section 11.09.        Indulgences; No Waivers.........................................................124

         Section 11.10.        Headings Not To Affect Interpretation...........................................124

         Section 11.11.        Benefits of Agreement...........................................................125

         Section 11.12.        Special Notices to the Rating Agencies..........................................125

         Section 11.13.        Counterparts....................................................................126

         Section 11.14.        Transfer of Servicing...........................................................126
</TABLE>

                                                         v

<PAGE>

                                   ATTACHMENTS

Exhibit A      Forms of Certificates
Exhibit B-1    Form of Initial Certification
Exhibit B-2    Form of Interim Certification
Exhibit B-3    Form of Final Certification
Exhibit B-4    Form of Endorsement
Exhibit C      Request for Release of Documents and Receipt
Exhibit D-l    Form of Residual Certificate Transfer Affidavit (Transferee)
Exhibit D-2    Form of Residual Certificate Transfer Affidavit (Transferor)
Exhibit E      Servicing Agreements
Exhibit F      Form of Rule 144A Transfer Certificate
Exhibit G      Form of Purchaser's Letter for Institutional Accredited Investors
Exhibit H      Form of ERISA Transfer Affidavit
Exhibit I      Monthly Remittance Advice
Exhibit J      Monthly Electronic Data Transmission
Exhibit K      Custodial Agreements
Exhibit L-1    Form of Transfer Certificate for Transfer from Restricted Global
               Security to Regulation S
               Global Security
Exhibit L-2    Form of Transfer Certificate for Transfer from Regulation S
               Global Security to Restricted
               Global Security
Exhibit M      Form of Certification to be Provided to the Depositor and the
               Master Servicer by the Trustee

Schedule A     Mortgage Loan Schedule
Schedule B     Employee Mortgage Loan Schedule

<PAGE>

         This TRUST AGREEMENT, dated as of June 1, 2003 (the "Agreement"), is by
and among STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as
depositor (the "Depositor"), AURORA LOAN SERVICES INC., as master servicer (the
"Master Servicer"), and WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, a
national banking corporation, as securities administrator (the "Securities
Administrator") and HSBC BANK USA, a New York state banking corporation, as
trustee (the "Trustee").

                              PRELIMINARY STATEMENT

         The Depositor has acquired the Mortgage Loans from Lehman Brothers
Holdings Inc. (the "Seller"), and at the Closing Date is the owner of the
Mortgage Loans and the other property being conveyed by it to the Trustee for
inclusion in the Trust Fund. On the Closing Date, the Depositor will acquire the
Certificates from the Trust Fund as consideration for its transfer to the Trust
Fund of the Mortgage Loans and the other property constituting the Trust Fund.
The Depositor has duly authorized the execution and delivery of this Agreement
to provide for the conveyance to the Trustee of the Mortgage Loans and the other
property constituting the Trust Fund. All covenants and agreements made by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
herein with respect to the Mortgage Loans and the other property constituting
the Trust Fund are for the benefit of the Holders from time to time of the
Certificates. The Depositor, the Securities Administrator and the Master
Servicer are entering into this Agreement, and the Trustee is accepting the
Trust Fund created hereby, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged.

         As provided herein, the Trustee shall elect that the Trust Fund (other
than the rights to Prepayment Penalty Amounts) be treated for federal income tax
purposes as comprising three real estate mortgage investment conduits (each a
"REMIC" or, in the alternative, the Lower Tier REMIC, the Middle Tier REMIC and
the Upper Tier REMIC). Each Certificate, other than the Class R Certificate and
the Class P Certificates, represents ownership of a regular interest in the
Upper Tier REMIC for purposes of the REMIC Provisions. The Class R Certificate
represents ownership of the sole class of residual interest in each of the Lower
Tier REMIC, the Middle Tier REMIC and the Upper Tier REMIC for purposes of the
REMIC Provisions. The Upper Tier REMIC shall hold as assets the several classes
of uncertificated Middle Tier REMIC Regular Interests. Each Middle Tier REMIC
Regular Interest is hereby designated as a regular interest in the Middle Tier
REMIC. The Middle Tier REMIC shall hold as assets the several classes of
uncertificated Lower Tier REMIC Regular Interests. Each Lower Tier REMIC Regular
Interest is hereby designated as a regular interest in the Lower Tier REMIC. The
Lower Tier REMIC shall hold as assets all property of the Trust Fund other than
the Lower Tier REMIC Interests, the Middle Tier REMIC Interests and the right to
Prepayment Penalty Amounts.

Lower Tier REMIC

         The following table specifies the class designation, interest rate, and
principal amount for each class of Lower Tier REMIC Interests.

<PAGE>

<TABLE>
<CAPTION>
 Lower Tier Class            Lower Tier           Initial Class or Principal        Related Pool or
   Designation             Interest Rate                    Amount                      Pools
-----------------          -------------          --------------------------        ---------------
<S>                        <C>                    <C>                               <C>
Class LT-1A                     (1)                             $18,538.8497           Pool 1
Class LT-1B                     (2)                            $331,059.8497           Pool 1
Class LT-2A                     (1)                            $186,722.9773           Pool 2
Class LT-2B                     (3)                          $3,334,242.9773           Pool 2
Class LT-3A                     (1)                            $128,849.7870           Pool 3
Class LT-3B                     (4)                          $2,300,819.7870           Pool 3
Class LT-4A                     (1)                             $19,184.2964           Pool 4
Class LT-4B                     (5)                            $342,514.2964           Pool 4
Class LT-Z                      (1)                        $624,201,758.2192           N/A
Class LT-R                      (6)                               (6)                  N/A
</TABLE>
---------------------
  (1)     For any Distribution Date, the interest rate for the Class LT-1A,
          Class LT-2A, Class LT-3A, Class LT-4A and Class LT-Z Interests shall
          be a per annum rate equal to the weighted average of the Net Mortgage
          Rates of all of the Mortgage Loans at the beginning of the related Due
          Period, weighted on the basis of their respective Scheduled Principal
          Balances.

  (2)     For any Distribution Date, the interest rate for the Class LT-1B
          Interest shall be a per annum rate equal to the Net WAC for Pool 1 for
          such Distribution Date.

  (3)     For any Distribution Date, the interest rate for the Class LT-2B
          Interest shall be a per annum rate equal to the Net WAC for Pool 2 for
          such Distribution Date.

  (4)     For any Distribution Date, the interest rate for the Class LT-3B
          Interest shall be a per annum rate equal to the Net WAC for Pool 3 for
          such Distribution Date.

  (5)     For any Distribution Date, the interest rate for the Class LT-4B
          Interest shall be a per annum rate equal to the Net WAC for Pool 4 for
          such Distribution Date.

  (6)     The Class LT-R Interest shall represent the sole class of residual
          interest in the Lower Tier REMIC. The Class LT-R Interest will not
          have a principal amount or an interest rate. The Class LT-R Interest
          shall be represented by the Class R Certificate.

         Distributions shall be deemed to be made to the Lower Tier REMIC
Regular Interests first, so as to keep the Uncertificated Principal Balance of
each Lower Tier REMIC Regular Interest ending with the designation "B" equal to
1% of the aggregate Scheduled Principal Balance of the Mortgage Loans in the
related Mortgage Pool; second, to each Lower Tier REMIC Regular Interest ending
with the designation "A" so that the Uncertificated Principal Balance of each
such Lower Tier REMIC Regular Interest is equal to 1% of the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool over (y) the aggregate Class Principal Amounts of the Certificate
Group related to such Mortgage Pool (except that if 1% of any such excess is
greater than the principal amount of the corresponding Lower Tier REMIC Regular
Interest ending with the designation "A", the least amount of principal shall be
distributed to such Lower Tier REMIC Regular Interests such that the Lower Tier
REMIC Subordinated Balance Ratio is maintained); and finally, any remaining
principal to the Class LT-Z Interest. Realized Losses shall be applied after all
distributions have been made on each Distribution Date first, so as to keep the
Uncertificated Principal Balance of each Lower Tier REMIC Regular Interest
ending with the designation "B" equal to 1% of the aggregate Scheduled Principal
Balance of the Mortgage Loans in the related Mortgage Pool; second, to each
Lower Tier REMIC Regular Interest ending with the designation "A" so that the

                                        2
<PAGE>

Uncertificated Principal Balance of each such Lower Tier REMIC Regular Interest
is equal to 1% of the excess of (x) the aggregate Scheduled Principal Balance of
the Mortgage Loans in the related Mortgage Pool over (y) the aggregate Class
Principal Amounts of the Certificate Group related to such Mortgage Pool (except
that if 1% of any such excess is greater than the principal amount of the
corresponding Lower Tier REMIC Regular Interest ending with the designation "A",
the least amount of Realized Losses shall be allocated to such Lower Tier REMIC
Regular Interests such that the Lower Tier REMIC Subordinated Balance Ratio is
maintained); and third, the remaining Realized Losses shall be allocated to the
Class LT-Z Interest. All computations with respect to any Lower Tier REMIC
Interest shall be taken out to eight decimal places.

Middle Tier REMIC

         The following table specifies the class designation, interest rate,
principal amount and Classes of Corresponding Certificates for each class of
Middle Tier REMIC Interest:
<TABLE>
<CAPTION>
       Middle-Tier                                       Pass-Through            Corresponding
      REMIC Interest           Initial Balance               Rate                 Certificates
      --------------           ---------------               ----                 ------------
<S>                            <C>                       <C>                      <C>
  MT-1A                            $31,252,000.00            (1)                        1-A, 1-AX
  MT-1R                               $100.00                (1)                                R
  MT-2A1                          $299,752,000.00            (2)                       2-A1, 2-AX
  MT-2A2                           $15,000,000.00            (2)                       2-A2, 2-AX
  MT-3A                           $217,197,000.00            (3)                        3-A, 3-AX
  MT-4A                            $32,333,000.00            (4)                        4-A, 4-AX
  MT-B1                            $21,132,000.00            (5)                               B1
  MT-B2                             $5,045,000.00            (5)                               B2
  MT-B3                             $3,783,000.00            (5)                               B3
  MT-B4                             $1,891,000.00            (5)                               B4
  MT-B5                             $1,891,000.00            (5)                               B5
  MT-B6                             $1,587,591.04            (5)                               B6
  MT-R                                  (6)                  (6)                                R
</TABLE>
---------------------------

    (1)   For any Distribution Date, the interest rate for each of the Class
          MT-1A Interest and the Class MT-1R Interest shall be a per annum rate
          equal to the Net WAC for Pool 1 for such Distribution Date.

    (2)   For any Distribution Date, the interest rate for the Class MT-2A1
          Interest and the Class MT-2A2 Interest shall be a per annum rate equal
          to the Net WAC for Pool 2 for such Distribution Date.

    (3)   For any Distribution Date, the interest rate for the Class MT-3A
          Interest shall be a per annum rate equal to the Net WAC for Pool 3 for
          such Distribution Date.

    (4)   For any Distribution Date, the interest rate for the Class MT-4A
          Interest shall be a per annum rate equal to the Net WAC for Pool 4 for
          such Distribution Date.

    (5)   For any Distribution Date, the Class MT-B1 Interest, Class MT-B2
          Interest, Class MT-B3 Interest, Class MT-B4 Interest, Class MT-B5
          Interest and Class MT-B6 Interest will bear interest at a per annum
          rate equal to the weighted average of the pass-through rates on the
          Lower Tier REMIC Regular Interests ending with the designation "A",
          weighted on the basis of the Uncertificated Principal Balance of each
          such Lower Tier REMIC Regular Interest immediately preceding the
          Distribution Date; provided that for purposes of such weighted
          average, the pass-through rate of each such Lower Tier REMIC Regular
          Interest shall be subject to a cap and floor equal to the pass-through
          rate of the Lower Tier REMIC Regular Interest that ends with the
          designation "B" and is related to the same Mortgage Pool.

    (6)   The Class MT-R Interest shall represent the sole class of residual
          interest in the Middle Tier REMIC. The Class MT-R Interest will not
          have a principal amount or an interest rate. The Class MT-R Interest
          shall be represented by the Class R Certificate.

                                        3
<PAGE>

Principal and interest shall be payable to, and shortfalls, losses and
prepayments are allocable to, the Middle Tier REMIC Regular Interests as such
amounts are payable and allocable to the Corresponding Certificates.
Notwithstanding the preceding sentence, (i) the first $0.04 of losses with
respect to principal on the Mortgage Loans shall be allocated to the Class MT-B6
Interest and (ii) immediately preceding any payment to the Class R Certificate
pursuant to Section 5.02(e) attributable to principal received with respect to
any Mortgage Loan, a payment shall be treated as made to the Class MT-B6
Interest in reduction of the principal balance thereof, if any, to zero.

Upper Tier REMIC

The following table specifies the Class designation, Certificate Interest Rate,
initial Class Principal Amount or Class Notional Amount, and minimum
denomination (by dollar amount or Percentage Interest) for each Class of
Certificates representing the interests in the Trust Fund created hereunder.
Each Certificate, other than the Class R Certificate and the Class P
Certificates, represents ownership of regular interests in the Upper Tier REMIC
for purposes of the REMIC provisions. For federal income tax purposes, the Class
2-AX Certificates will represent two separate regular interests, each with an
interest rate equal to 4.08%. One of those regular interests will have a
notional amount equal to the product of (x) a fraction, the numerator of which
is the excess, if any, of (i) the Net WAC for Pool 2 for the related
Distribution Date over (ii) 4.08% and the denominator of which is 4.08% and (y)
the Class Principal Amount of the Class 2-A1 Certificates immediately prior to
such Distribution Date. The other regular interest represented by the Class 2-AX
Certificates will have a notional amount equal to the product of (x) a fraction,
the numerator of which is the excess, if any, of (i) the Net WAC for Pool 2 for
the related Distribution Date over (ii) 4.25% and the denominator of which is
4.08% and (y) the Class Principal Amount of the Class 2-A2 Certificates
immediately prior to such Distribution Date.

                                        4
<PAGE>

<TABLE>
<CAPTION>
                                                        Initial Class
                                                      Principal Amount
                                 Certificate              or Class                      Minimum
    Class Designation           Interest Rate          Notional Amount                Denomination
    -----------------           -------------          ---------------                ------------
<S>                             <C>                    <C>                            <C>
Class 1-A                         4.15%(1)                      $31,252,000               $25,000
Class 1-AX                         4.15%                      $6,961,969(2)            $1,000,000
Class 2-A1                        4.08%(3)                     $299,752,000               $25,000
Class 2-A2                        4.25%(3)                      $15,000,000               $25,000
Class 2-AX                         4.08%                     $82,143,633(4)            $1,000,000
Class 3-A                         4.42%(5)                     $217,197,000               $25,000
Class 3-AX                        4.42%(6)                   $41,965,766(6)            $1,000,000
Class 4-A                         3.06%(7)                      $32,333,000               $25,000
Class 4-AX                        3.06%(8)                   $23,201,268(8)            $1,000,000
Class B1                             (9)                        $21,132,000              $100,000
Class B2                             (9)                         $5,045,000              $100,000
Class B3                             (9)                         $3,783,000              $100,000
Class B4                             (9)                         $1,891,000              $250,000
Class B5                             (9)                         $1,891,000              $250,000
Class B6                             (9)                         $1,587,591              $250,000
Class R                             (10)                           $100                      $100
Class P-I                           (11)                            (11)                      25%
Class P-II                          (11)                            (11)                      25%
</TABLE>
---------------------------

(1)  For any Distribution Date on or before the Distribution Date in February
     2006, the Certificate Interest Rate for the Class 1-A Certificates shall be
     a per annum rate equal to 4.15%, subject to a maximum rate equal to the Net
     WAC for Pool 1 for such Distribution Date. For any Distribution Date after
     the Distribution Date in February 2006, the Certificate Interest Rate for
     the Class 1-A Certificates shall be a per annum rate equal to the Net WAC
     for Pool 1 for such Distribution Date.

(2)  The Class 1-AX Certificates are Notional Certificates. For any Distribution
     Date on or before the Distribution Date in February 2006, the Class
     Notional Amount of the Class 1-AX Certificates will be equal to the product
     of (i) a fraction, the numerator of which is the excess, if any, of (1) the
     Net WAC for Pool 1 for the related Distribution Date over (2) 4.15% and the
     denominator of which is 4.15% and (ii) the Class Principal Amount of the
     Class 1-A Certificates immediately prior to such Distribution Date. For any
     Distribution Date after the Distribution Date in February 2006, the Class
     1-AX Certificates shall have a Class Notional Amount of zero.

(3)  For any Distribution Date on or before the Distribution Date in April 2008,
     the Certificate Interest Rate for the Class 2-A1 and Class 2-A2
     Certificates shall be a per annum rate equal to 4.08% and 4.25%,
     respectively, subject in each case to a maximum rate equal to the Net WAC
     for Pool 2 for such Distribution Date. For any Distribution Date after the
     Distribution Date in April 2008, the Certificate Interest Rate for the
     Class 2-A1 and Class 2-A2 Certificates shall be a per annum rate equal to
     the Net WAC for Pool 2 for such Distribution Date.

(4)  The Class 2-AX Certificates are Notional Certificates. For any Distribution
     Date on or before the Distribution Date in April 2008, the Class Notional
     Amount of the Class 2-AX Certificates will be equal to the sum of (A) the
     product of (i) a fraction, the numerator of which is the excess, if any, of
     (1) the Net WAC for Pool 2 for the related Distribution Date over (2) 4.08%
     and the denominator of which is 4.08% and (ii) the Class Principal Amount
     of the Class 2-A1 Certificates immediately prior to such Distribution Date
     and (B) the product of (i) a fraction, the numerator of which is the
     excess, if any, of (1) the Net WAC for Pool 2 for the related Distribution
     Date over (2) 4.25% and the denominator of which is 4.08% and (ii) the
     Class Principal Amount of the Class 2-A1 Certificates immediately prior to
     such Distribution Date. For any Distribution Date after the Distribution
     Date in April 2008, the Class 2-AX Certificates shall have a Class Notional
     Amount of zero.

                                        5
<PAGE>

(5)  For any Distribution Date on or before the Distribution Date in April 2008,
     the Certificate Interest Rate for the Class 3-A Certificates shall be a per
     annum rate equal to 4.42%, subject to a maximum rate equal to the Net WAC
     for Pool 3 for such Distribution Date. For any Distribution Date after the
     Distribution Date in April 2008, the Certificate Interest Rate for the
     Class 3-A Certificates shall be a per annum rate equal to the Net WAC for
     Pool 3 for such Distribution Date.

(6)  The Class 3-AX Certificates are Notional Certificates. For any Distribution
     Date on or before the Distribution Date in April 2008, the Class Notional
     Amount of the Class 3-AX Certificates will be equal to the product of (i) a
     fraction, the numerator of which is the excess, if any, of (1) the Net WAC
     for Pool 3 for the related Distribution Date over (2) 4.42% and the
     denominator of which is 4.42% and (ii) the Class Principal Amount of the
     Class 3-A Certificates immediately prior to such Distribution Date. For any
     Distribution Date after the Distribution Date in April 2008, the Class 3-AX
     Certificates shall have a Class Notional Amount of zero.

(7)  For any Distribution Date on or before the Distribution Date in February
     2010, the Certificate Interest Rate for the Class 4-A Certificates shall be
     a per annum rate equal to 3.06%, subject to a maximum rate equal to the Net
     WAC for Pool 4 for such Distribution Date. For any Distribution Date after
     the Distribution Date in February 2010, the Certificate Interest Rate for
     the Class 4-A Certificates shall be a per annum rate equal to the Net WAC
     for Pool 4 for such Distribution Date.

(8)  The Class 4-AX Certificates are Notional Certificates. For any Distribution
     Date on or before the Distribution Date in February 2010, the Class
     Notional Amount of the Class 4-AX Certificates will be equal to the product
     of (i) a fraction, the numerator of which is the excess, if any, of (1) the
     Net WAC for Pool 4 for the related Distribution Date over (2) 3.06% and the
     denominator of which is 3.06% and (ii) the Class Principal Amount of the
     Class 3-A Certificates immediately prior to such Distribution Date. For any
     Distribution Date after the Distribution Date in February 2010, the Class
     4-AX Certificates shall have a Class Notional Amount of zero.

(9)  For any Distribution Date, the Class B1, Class B2, Class B3, Class B4,
     Class B5 and Class B6 Certificates shall bear interest at a per annum rate
     equal to the Average Rate for such Distribution Date.

(10) For any Distribution Date, the Certificate Interest Rate on the Class R
     Certificates shall be a per annum rate equal to the Net WAC for Pool 1 for
     such Distribution Date.

(11) The Class P-I and Class P-II Certificates will be entitled to receive
     Prepayment Penalty Amounts paid by borrowers upon voluntary full or partial
     prepayment of the Mortgage Loans in Pool 1 and Pool 3, respectively. The
     Class P-I and Class P-II Certificates will be issued in definitive, fully
     registered form.

         As of the Cut-off Date, the Mortgage Loans had an aggregate Scheduled
Principal Balance of $630,863,691.04.

         For purposes hereof, each pool of Mortgage Loans constitutes a fully
separate and distinct sub-trust.

         In consideration of the mutual agreements herein contained, the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
hereby agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

         Section 1.01. Definitions.

         The following words and phrases, unless the context otherwise requires,
shall have the following meanings:

                                        6
<PAGE>

         Accepted Servicing Practices: With respect to any Mortgage Loan, as
applicable, either (x) those customary mortgage master servicing practices of
prudent mortgage servicing institutions that master service mortgage loans of
the same type and quality as such Mortgage Loan in the jurisdiction where the
related Mortgaged Property is located, to the extent applicable to the
Securities Administrator or the Master Servicer or (y) as provided in the
applicable Servicing Agreement, to the extent applicable to the related
Servicer.

         Accountant: A person engaged in the practice of accounting who (except
when this Agreement provides that an Accountant must be Independent) may be
employed by or affiliated with the Depositor or an Affiliate of the Depositor.

         Accretion Directed Certificate: Not applicable.

         Accretion Termination Date: Not applicable.

         Accrual Amount: As to any Class of Accrual Certificates and each
Distribution Date through the Credit Support Depletion Date, the sum of (x) any
amount of Accrued Certificate Interest allocable to such Class pursuant to
Section 5.02(a)(ii) on such Distribution Date and (y) any Interest Shortfall
allocable to such Class pursuant to Section 5.02(a)(iii) on such Distribution
Date. As to any Class of Accrual Certificates and each Distribution Date after
the Credit Support Depletion Date, zero.

         Accrual Certificate: Not applicable.

         Accrual Component: Not applicable.

         Accrual Period: With respect to any Distribution Date and any Class of
Certificates or any Class of Lower-Tier Interests, the one-month period
beginning immediately following the end of the preceding Accrual Period (or from
the Cut-off Date, in the case of the first Accrual Period) and ending on the
last day of the month immediately preceding the month in which such Distribution
Date occurs.

         Accrued Certificate Interest: As to any Class of Certificates and any
Distribution Date, the product of the Certificate Interest Rate for such Class
of Certificates and the Class Principal Amount (or Class Notional Amount) of
such Class of Certificates immediately preceding such Distribution Date, as
reduced by such Class's share of the interest portion of (i) any Excess Losses
for the related Mortgage Pool or Mortgage Pools for such Distribution Date and
(ii) any Relief Act Reduction for the related Mortgage Pool or Mortgage Pools
for such Distribution Date, in each case allocable among the Senior Certificates
of the related Certificate Group pro rata based on the Accrued Certificate
Interest otherwise distributable thereto, and allocable to the Subordinate
Certificates pro rata based on interest accrued at the related Net WAC on their
respective Apportioned Principal Balances. Interest shall be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

         Act: As defined in Section 3.03(c).

         Additional Collateral: Not applicable.

         Additional Collateral Servicing Agreement: Not applicable.

                                        7
<PAGE>

         Adjustable Rate Mortgage Loan: Any Mortgage Loan as to which the
related Mortgage Note provides for the adjustment of the Mortgage Rate.

         Advance: An advance of the aggregate of payments of principal and
interest (net of the Master Servicing Fee and the applicable Servicing Fee) on
one or more Mortgage Loans that were due on the Due Date in the related Due
Period and not received as of the close of business on the related Determination
Date, required to be made by or on behalf of the Master Servicer and the related
Servicer (or by the Securities Administrator solely in its capacity as successor
Master Servicer in accordance with Section 6.14) pursuant to Section 5.04.

         Affiliate: With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

         Aggregate Master Servicing Compensation: As to any Distribution Date,
all income and gain realized from the investment of funds in the Collection
Account during the period from and including the Deposit Date in the calendar
month immediately preceding the month in which such Distribution Date occurs, to
but excluding the Deposit Date relating to such Distribution Date.

         Aggregate Principal Balance: The aggregate of the Scheduled Principal
Balances for all Mortgage Loans at any date of determination.

         Aggregate Subordinate Percentage: With respect to any Distribution
Date, the sum of the Class Principal Amounts of the Subordinate Certificates
immediately prior to such date divided by the sum of the Pool Balances for all
of the Mortgage Pools for the immediately preceding Distribution Date.

         Aggregate Voting Interests: The aggregate of the Voting Interests of
all the Certificates under this Agreement.

         Agreement: This Trust Agreement and all amendments and supplements
hereto.

         AP Percentage: Not applicable.

         AP Principal Distribution Amount: Not applicable.

         Apportioned Principal Balance: As to any Class of Subordinate
Certificates and any Distribution Date, the Class Principal Amount of such Class
immediately prior to such Distribution Date multiplied by a fraction, the
numerator of which is the applicable Group Subordinate Amount for such date and
the denominator of which is the sum of the Group Subordinate Amounts for all
Mortgage Pools for such date.

                                        8
<PAGE>

         Appraised Value: With respect to any Mortgage Loan, the amount set
forth in an appraisal made in connection with the origination of such Mortgage
Loan as the value of the related Mortgaged Property.

         Associated Mortgage Loan: Not applicable.

         Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument, in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
the sale of the Mortgage to the Trustee, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering the Mortgage Loans secured by Mortgaged Properties located in the same
jurisdiction, if permitted by law; provided, however, that the Trustee shall not
be responsible for determining whether any such assignment is in recordable
form.

         Aurora: Aurora Loan Services Inc. or its successor in interest, in its
capacity as a Servicer.

         Authenticating Agent: Any authenticating agent appointed by the Trustee
pursuant to Section 6.10.

         Authorized Officer: Any Person who may execute an Officer's Certificate
on behalf of the Depositor.

         Available Distribution Amount: As to each Mortgage Pool and on any
Distribution Date, the sum of the following amounts:

             (i) the total amount of all cash received by the Master Servicer
         through the Remittance Date applicable to each Servicer and deposited
         with the Securities Administrator by the Master Servicer by the Deposit
         Date for such Distribution Date on the Mortgage Loans of such Mortgage
         Pool (including proceeds of any Insurance Policy and any other credit
         support relating to such Mortgage Loans), plus all Advances made by the
         Master Servicer or any Servicer (or the Securities Administrator,
         solely in its capacity as successor Master Servicer) for such
         Distribution Date, any Compensating Interest Payment for such date and
         Mortgage Pool, any amounts received with respect to any Additional
         Collateral or Surety Bond related thereto and any amounts paid by any
         Servicer in respect of Prepayment Interest Shortfalls in respect of the
         related Mortgage Loans for such date, but not including:

                  (A) all amounts distributed pursuant to Section 5.02 on prior
             Distribution Dates;

                  (B) all Scheduled Payments of principal and interest collected
             but due on a date subsequent to the related Due Period;

                  (C) all Principal Prepayments received or identified by the
             applicable Servicer after the applicable Prepayment Period
             (together with any interest payments received with such prepayments
             to the extent that they represent the payment of interest accrued
             on the related Mortgage Loans for the period subsequent to the
             applicable Prepayment Period);

                                        9
<PAGE>

                  (D) any other unscheduled collection, including Net
             Liquidation Proceeds and Insurance Proceeds, received by the Master
             Servicer after the applicable Prepayment Period;

                  (E) all fees and amounts due or reimbursable to the Master
             Servicer, the Trustee, the Securities Administrator (other than the
             Securities Administrator Fee), the Custodian or a Servicer pursuant
             to the terms of this Agreement, the applicable Custodial Agreement
             or the applicable Servicing Agreement;

                  (F) any Retained Interest;

                  (G) Prepayment Interest Excess to the extent not offset by
             Prepayment Interest Shortfalls; and

             (ii) any other payment made by the Master Servicer, any Servicer,
         the Seller, the Depositor, or any other Person with respect to such
         Distribution Date (including the Purchase Price with respect to any
         Mortgage Loan purchased by the Seller, the Depositor or any other
         Person).

         Average Rate: With respect to any Distribution Date, the weighted
average of the Net WAC applicable to each of the Mortgage Pools for such date,
weighted on the basis of the Group Subordinate Amount for such Mortgage Pool for
such date.

         Balloon Mortgage Loan: Not applicable.

         Balloon Payment: Not applicable.

         Bank: Lehman Brothers Bank, FSB and its successors and assigns.

         Bankruptcy: As to any Person, the making of an assignment for the
benefit of creditors, the filing of a voluntary petition in bankruptcy,
adjudication as a bankrupt or insolvent, the entry of an order for relief in a
bankruptcy or insolvency proceeding, the seeking of reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief, or
seeking, consenting to or acquiescing in the appointment of a trustee, receiver
or liquidator, dissolution, or termination, as the case may be, of such Person
pursuant to the provisions of either the United States Bankruptcy Code of 1986,
as amended, or any other similar state laws.

         Bankruptcy Coverage Termination Date: As to any Mortgage Pool, the
Distribution Date on which the Bankruptcy Loss Limit has been reduced to zero
(or less than zero).

         Bankruptcy Loss Limit: As of the Cut-off Date, $100,000.00, which
amount shall be reduced from time to time by the amount of Bankruptcy Losses
that are allocated to the Certificates.

                                       10
<PAGE>

         Bankruptcy Losses: With respect to the Mortgage Loans in the related
Mortgage Pool, losses that are incurred as a result of Deficient Valuations and
any reduction, in a bankruptcy proceeding, of the amount of the Scheduled
Payment on a Mortgage Loan other than as a result of a Deficient Valuation.

         Blanket Mortgage: The mortgage or mortgages encumbering a Cooperative
Property.

         Book-Entry Certificates: Beneficial interests in Certificates
designated as "Book-Entry Certificates" in this Agreement, ownership and
transfers of which shall be evidenced or made through book entries by a Clearing
Agency as described in Section 3.09; provided, that after the occurrence of a
condition whereupon book-entry registration and transfer are no longer permitted
and Definitive Certificates are to be issued to Certificate Owners, such
Book-Entry Certificates shall no longer be "Book-Entry Certificates." As of the
Closing Date, all of the Classes of Certificates listed in the second table of
the Preliminary Statement, other than the Class R Certificates, will constitute
Book-Entry Certificates.

         Business Day: Any day other than (i) a Saturday or a Sunday, (ii) a day
on which banking institutions in Colorado, Minnesota, Maryland, New York or, if
other than New York, the city in which the Corporate Trust Office of the Trustee
is located, or (iii) with respect to any Remittance Date or any Servicer
reporting date, the States specified in the definition of "Business Day" in the
applicable Servicing Agreement, are authorized or obligated by law or executive
order to be closed.

         Certificate: Any one of the certificates signed and countersigned by
the Trustee in substantially the forms attached hereto as Exhibit A.

         Certificate Account: The account maintained by the Securities
Administrator in accordance with the provisions of Section 4.04.

         Certificate Group: The Group 1 Certificates, the Group 2 Certificates,
the Group 3 Certificates or the Group 4 Certificates, as applicable.

         Certificate Interest Rate: With respect to each Class of Certificates,
the applicable per annum rate specified or determined as provided in the
Preliminary Statement hereto.

         Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the owner of such Book-Entry Certificate, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly or as an indirect participant, in accordance with
the rules of such Clearing Agency).

         Certificate Principal Amount: With respect to any Certificate other
than a Notional Certificate, at the time of determination, the maximum specified
dollar amount of principal to which the Holder thereof is then entitled
hereunder, such amount being equal to the initial principal amount set forth on
the face of such Certificate (plus, in the case of any Negative Amortization
Certificate, any Deferred Interest allocated thereto on previous Distribution
Dates, and plus, in the case of any Accrual Certificate, its Percentage Interest
of any related Accrual Amount for each previous Distribution Date), less the
amount of all principal distributions previously made with respect to such
Certificate, and all Realized Losses allocated to such Certificate and, in the
case of a Subordinate Certificate, any Subordinate Certificate Writedown Amount
allocated to such Certificates. For purposes of Article V hereof, unless
specifically provided to the contrary, Certificate Principal Amounts shall be
determined as of the close of business of the immediately preceding Distribution
Date, after giving effect to all distributions made on such date. Notional
Certificates are issued without Certificate Principal Amounts.

                                       11
<PAGE>

         Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed pursuant to Section 3.02.

         Class: All Certificates bearing the same class designation, and, in the
case of the Lower Tier REMIC or Middle Tier REMIC, all Lower Tier REMIC
Interests or Middle Tier REMIC Interests bearing the same designation.

         Class AP Certificate: None.

         Class AP Deferred Amount: Not applicable.

         Class B Certificate: Any Class B1, Class B2, Class B3, Class B4, Class
B5 or Class B6 Certificate.

         Class LT-R Interest: The sole residual interest in the Lower Tier
REMIC.

         Class MT-R Interest: The sole residual interest in the Middle Tier
REMIC.

         Class Notional Amount: With respect to each Class of Notional
Certificates the applicable class notional amount calculated as provided in the
Preliminary Statement hereto.

         Class Percentage: With respect to each Class of Subordinate
Certificates, for each Distribution Date, the percentage obtained by dividing
the Class Principal Amount of such Class immediately prior to such Distribution
Date by the sum of the Class Principal Amounts of all Certificates immediately
prior to such date.

         Class Principal Amount: With respect to each Class of Certificates
other than any Class of Notional Certificates, the aggregate of the Certificate
Principal Amounts of all Certificates of such Class at the date of
determination. With respect to each Class of Notional Certificates, zero.

         Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. As
of the Closing Date, the Clearing Agency shall be The Depository Trust Company.

         Clearing Agency Participant: A broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects
book-entry transfers and pledges of securities deposited with the Clearing
Agency.

         Clearstream: Clearstream Banking, societe anonyme, and any successor
thereto.

         Closing Date: June 30, 2003.

                                       12
<PAGE>

         Code: The Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

         Collection Account: A separate account established and maintained by
the Master Servicer pursuant to Section 4.01.

         Compensating Interest Payment: With respect to each Mortgage Pool and
any Distribution Date, an amount equal to the excess of (x) the aggregate of any
Prepayment Interest Shortfalls with respect to such Mortgage Pool and such
Distribution Date over (y) the aggregate of any amounts required to be paid by
the applicable Servicer in respect of such shortfalls but not paid.

         Component: Not applicable.

         Component Certificate: Not applicable.

         Component Interest Rate: Not applicable.

         Component Notional Amount: Not applicable.

         Component Principal Amount: Not applicable.

         Component Writedown Amount: Not applicable.

         Conventional Loan: A Mortgage Loan that is not insured by the United
States Federal Housing Administration or guaranteed by the United States
Veterans Administration.

         Converted Mortgage Loan: Not applicable.

         Convertible Mortgage Loan: Not applicable.

         Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

         Cooperative Loan: Any Mortgage Loan secured by Cooperative Shares and a
Proprietary Lease.

         Cooperative Loan Documents: As to any Cooperative Loan, (i) the
Cooperative Shares, together with a stock power in blank; (ii) the original
executed Security Agreement and the assignment of the Security Agreement
endorsed in blank; (iii) the original executed Proprietary Lease and the
assignment of the Proprietary Lease endorsed in blank; (iv) the original
executed Recognition Agreement and the assignment of the Recognition Agreement
(or a blanket assignment of all Recognition Agreements) endorsed in blank; (v)
the executed UCC-1 financing statement with evidence of recording thereon, which
has been filed in all places required to perfect the security interest in the
Cooperative Shares and the Proprietary Lease; and (vi) executed UCC-3 financing
statements (or copies thereof) or other appropriate UCC financing statements
required by state law, evidencing a complete and unbroken line from the
mortgagee to the Trustee with evidence of recording thereon (or in a form
suitable for recordation).

                                       13
<PAGE>

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, that includes the allocation of individual dwelling
units to the holders of the Cooperative Shares of the Cooperative Corporation.

         Cooperative Shares: Shares issued by a Cooperative Corporation.

         Cooperative Unit: A single-family dwelling located in a Cooperative
Property.

         Corporate Trust Office: With respect to the Trustee, the principal
corporate trust office of the Trustee located at 452 Fifth Avenue, New York, New
York 10018, Attention: SASCO 2003-22A, or at such other address as the Trustee
may designate from time to time by notice to the Certificateholders, the
Depositor, the Master Servicer and the Securities Administrator or the principal
corporate trust office of any successor Trustee. With respect to the Securities
Administrator for purposes of presentment of Certificates for registration of
transfer, exchange or final payment, Wells Fargo Bank Minnesota, National
Association, 6th Avenue and Marquette, Minneapolis, Minnesota 55479, Attention:
SASCO 2003-22A.

         Corresponding Certificates: With respect to any class of Middle Tier
REMIC Interests, the Class of Certificates so designated in the Preliminary
Statement hereto.

         Corresponding Class: With respect to any Class of Certificates, the
class or classes of Middle Tier REMIC Interests so designated in the Preliminary
Statement hereto.

         Corresponding Component:  None.

         Credit Score: With respect to any Mortgage Loan, a numerical assessment
of default risk with respect to the Mortgagor under such Mortgage Loan,
determined on the basis of a methodology developed by Fair, Isaac & Co., Inc.

         Credit Support Depletion Date: The Distribution Date on which, after
giving effect to all distributions on such date, the aggregate Certificate
Principal Amount of the Subordinate Certificates is reduced to zero.

         Credit Support Percentage: As to any Class of Subordinate Certificates
and any Distribution Date, the sum of the Class Percentages of all Classes of
Certificates that rank lower in priority than such Class.

         Custodial Agreement: Each custodial agreement attached as Exhibit K
hereto, and any custodial agreement subsequently executed by the Trustee
substantially in the form thereof.

         Custodian: Each custodian appointed by the Trustee pursuant to a
Custodial Agreement, and any successor thereto. The initial Custodians are
LaSalle Bank National Association and U.S. Bank, National Association.

                                       14
<PAGE>

         Cut-off Date: June 1, 2003.

         Cut-off Date Aggregate Principal Balance: With respect to the Mortgage
Loans in the Trust Fund on the Closing Date, the Aggregate Principal Balance for
all such Mortgage Loans as of the Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
of the Scheduled Payment that the related Mortgagor is obligated to pay on any
Due Date as a result of any proceeding under Bankruptcy law or any similar
proceeding.

         Deferred Interest: With respect to any Class of Negative Amortization
Certificates and any Distribution Date, the lesser of (x) the applicable
Interest Distribution Amount for such date (without giving effect to any
Deferred Interest) and (y) the aggregate Mortgage Loan Negative Amortization, if
any, for the related Due Period.

         Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then outstanding indebtedness under such Mortgage Loan, which valuation
results from a proceeding under Bankruptcy law or any similar proceeding.

         Definitive Certificate: A Certificate of any Class issued in
definitive, fully registered, certificated form.

         Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the
Trust Fund pursuant to the terms hereof or as to which one or more Qualifying
Substitute Mortgage Loans are substituted therefor.

         Deposit Date: With respect to each Distribution Date, the Business Day
immediately preceding such Distribution Date.

         Depositor: Structured Asset Securities Corporation, a Delaware
corporation having its principal place of business in New York, or its
successors in interest.

         Designated Rate: Not applicable.

         Determination Date: With respect to each Distribution Date, the
Remittance Date immediately preceding such Distribution Date.

         Discount Mortgage Loan: Not applicable.

         Disqualified Organization: Either (i) the United States, (ii) any state
or political subdivision thereof, (iii) any foreign government, (iv) any
international organization, (v) any agency or instrumentality of any of the
foregoing, (vi) any tax-exempt organization (other than a cooperative described
in section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of
the Code unless such organization is subject to the tax imposed by section 511
of the Code, (vii) any organization described in section 1381(a)(2)(C) of the
Code, (viii) any "electing large partnership" described in section 775 of the
Code, or (ix) any other entity designated as a Disqualified Organization by
relevant legislation amending the REMIC Provisions and in effect at or proposed
to be effective as of the time of the determination. In addition, a corporation
will not be treated as an instrumentality of the United States or of any state
or political subdivision thereof if all of its activities are subject to tax
and, with the exception of the Federal Home Loan Mortgage Corporation, a
majority of its board of directors is not selected by such governmental unit.

                                       15
<PAGE>

         Distribution Date: The 25th day of each month, or, if such 25th day is
not a Business Day, the next succeeding Business Day commencing in July 2003.

         Due Date: With respect to any Mortgage Loan, the date on which a
Scheduled Payment is due under the related Mortgage Note.

         Due Period: With respect to any Distribution Date, the period
commencing on the second day of the month immediately preceding the month in
which such Distribution Date occurs and ending on the first day of the month in
which such Distribution Date occurs.

         Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company acceptable to
the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial
paper or other short term debt or deposit obligations of such holding company or
depository institution, as the case may be) have been rated by each Rating
Agency in its highest short-term rating category, or (iii) a segregated trust
account or accounts (which shall be a "special deposit account") maintained with
the Trustee, the Securities Administrator or any other federal or state
chartered depository institution or trust company, acting in its fiduciary
capacity, in a manner acceptable to the Trustee and the Rating Agencies.
Eligible Accounts may bear interest.

         Eligible Investments: Any one or more of the following obligations or
securities:

             (i)      direct obligations of, and obligations fully guaranteed
         as to timely payment of principal and interest by, the United States
         of America or any agency or instrumentality of the United States of
         America the obligations of which are backed by the full faith and
         credit of the United States of America ("Direct Obligations");

             (ii)     federal funds, or demand and time deposits in,
         certificates of deposits of, or bankers' acceptances issued by, any
         depository institution or trust company (including U.S. subsidiaries of
         foreign depositories and the Trustee or any agent of the Trustee or the
         Securities Administrator, acting in its respective commercial capacity)
         incorporated or organized under the laws of the United States of
         America or any state thereof and subject to supervision and examination
         by federal or state banking authorities, so long as at the time of
         investment or the contractual commitment providing for such investment
         the commercial paper or other short-term debt obligations of such
         depository institution or trust company (or, in the case of a
         depository institution or trust company which is the principal
         subsidiary of a holding company, the commercial paper or other
         short-term debt or deposit obligations of such holding company or
         deposit institution, as the case may be) have been rated by each Rating
         Agency in its highest short-term rating category or one of its two
         highest long-term rating categories;

                                       16
<PAGE>

             (iii)   repurchase agreements collateralized by Direct Obligations
         or securities guaranteed by GNMA, FNMA or FHLMC with any registered
         broker/dealer subject to Securities Investors' Protection Corporation
         jurisdiction or any commercial bank insured by the FDIC, if such
         broker/dealer or bank has an uninsured, unsecured and unguaranteed
         obligation rated by each Rating Agency in its highest short-term rating
         category;

             (iv)     securities bearing interest or sold at a discount issued
         by any corporation incorporated under the laws of the United States of
         America or any state thereof which have a credit rating from each
         Rating Agency, at the time of investment or the contractual commitment
         providing for such investment, at least equal to one of the two highest
         short-term credit ratings of each Rating Agency; provided, however,
         that securities issued by any particular corporation will not be
         Eligible Investments to the extent that investment therein will cause
         the then outstanding principal amount of securities issued by such
         corporation and held as part of the Trust Fund to exceed 20% of the sum
         of the Aggregate Principal Balance and the aggregate principal amount
         of all Eligible Investments in the Certificate Account; provided,
         further, that such securities will not be Eligible Investments if they
         are published as being under review with negative implications from
         either Rating Agency;

             (v)      commercial paper (including both non interest-bearing
         discount obligations and interest-bearing obligations payable on demand
         or on a specified date not more than 180 days after the date of
         issuance thereof) rated by each Rating Agency in its highest short-term
         ratings;

             (vi)     a Qualified GIC;

             (vii)    certificates or receipts representing direct ownership
         interests in future interest or principal payments on obligations of
         the United States of America or its agencies or instrumentalities
         (which obligations are backed by the full faith and credit of the
         United States of America) held by a custodian in safekeeping on behalf
         of the holders of such receipts; and

             (viii)   any other demand, money market fund, common trust fund or
         time deposit or obligation, or interest-bearing or other security or
         investment (including those managed or advised by the Securities
         Administrator or an Affiliate thereof), (A) rated in the highest rating
         category by each Rating Agency (if rated by such Rating Agency) or (B)
         that would not adversely affect the then current rating by either
         Rating Agency of any of the Certificates. Such investments in this
         subsection (viii) may include money market mutual funds for which the
         Trustee, the Securities Administrator, the Master Servicer or an
         affiliate thereof serves as an investment advisor, administrator,
         shareholder servicing agent, and/or custodian or subcustodian,
         notwithstanding that (i) any such Person or an Affiliate thereof
         charges and collects fees and expenses from such funds for services
         rendered, (ii) any such Person or an Affiliate thereof charges and
         collects fees and expenses for services rendered pursuant to this
         Agreement, and (iii) services performed for such funds and pursuant to
         this Agreement may converge at any time. The Trustee specifically
         authorizes any such Person or an Affiliate thereof to charge and
         collect from the Trust Fund such fees as are collected from all
         investors in such funds for services rendered to such funds (but not to
         exceed investment earnings thereon);

                                       17
<PAGE>

provided, however, that (x) no such instrument shall be an Eligible Investment
if such instrument evidences either (i) a right to receive only interest
payments with respect to the obligations underlying such instrument, or (ii)
both principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations and (y) each such investment must
be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code.

         Employee Mortgage Loan: Each Mortgage Loan listed on Schedule B hereto.

         ERISA: The Employee Retirement Income Security Act of 1974, as amended,
and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Labor regulations issued pursuant
thereto in temporary or final form.

         ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

         ERISA-Restricted Certificate: Any Class R, Class B4, Class B5 or Class
B6 Certificate or any Certificate with a rating below the lowest applicable
rating permitted under the Underwriter's Exemption.

         Escrow Account: Any account established and maintained by a Servicer
pursuant to the applicable Servicing Agreement.

         Euroclear: JPMorgan Chase Bank, Brussels office, as operator of the
Euroclear System.

         Event of Default: Any one of the conditions or circumstances enumerated
in Section 6.14(a).

         Excess Loss: Any Bankruptcy Loss, or portion thereof, in excess of the
then-applicable Bankruptcy Loss Limit, any Fraud Loss, or portion thereof, in
excess of the then-applicable Fraud Loss Limit, and any Special Hazard Loss, or
portion thereof, in excess of the then-applicable Special Hazard Loss Limit.

         FDIC: The Federal Deposit Insurance Corporation or any successor
thereto.

         FHLMC: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.

                                       18
<PAGE>

         Final Scheduled Distribution Date: For the certificates (other than the
Class 1-AX, Class 2-AX, Class 3-AX and Class 4-AX Certificates) is the
Distribution Date in June 2033; for the Class 1-AX Certificates is the
Distribution Date in February 2006; for the Class 2-AX Certificates is the
Distribution Date in April 2008; for the Class 3-AX Certificates is the
Distribution Date in April 2008 and for the Class 4-AX Certificates is the
Distribution Date in February 2010.

         Financial Intermediary: A broker, dealer, bank or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Clearing Agency Participant.

         Fitch: Not applicable.

         FNMA: The Federal National Mortgage Association, a federally chartered
and privately owned corporation organized and existing under the Federal
National Mortgage Association Charter Act, or any successor thereto.

         Fraud Loss: Any Realized Loss on a Liquidated Mortgage Loan sustained
by reason of a default arising from fraud, dishonesty or misrepresentation in
connection with the related Mortgage Loan, as reported by the applicable
Servicer to the Master Servicer.

         Fraud Loss Limit: With respect to any Distribution Date (x) prior to
the first anniversary of the Cut-off Date, $12,617,274.00 less the aggregate of
Fraud Losses since the Cut-off Date, from the first to the fifth anniversary of
the Cut-off Date, an amount equal to (1) the lesser of (a) the Fraud Loss Limit
as of the most recent anniversary of the Cut-off Date and (b) 1% of the
aggregate principal balance of all the Mortgage Loans as of the most recent
anniversary of the Cut-off Date less (2) the aggregate of Fraud Losses since the
most recent anniversary of the Cut-off Date. On or after the fifth anniversary
of the Cut-off Date, the Fraud Loss Limit shall be zero.

         Global Securities: The global certificates representing the Book-Entry
Certificates.

         GNMA: The Government National Mortgage Association, a wholly owned
corporate instrumentality of the United States within HUD.

         Grantor Trust I: That certain "grantor trust" (within the meaning of
the Grantor Trust Provisions) consisting of the Grantor Trust I Assets.

         Grantor Trust I Assets: Any Prepayment Penalty Amounts collected with
respect to Pool 1.

         Grantor Trust II: That certain "grantor trust" (within the meaning of
the Grantor Trust Provisions) consisting of the Grantor Trust II Assets.

         Grantor Trust II Assets: Any Prepayment Penalty Amounts collected with
respect to Pool 3.

         Grantor Trust Provisions: Subpart E of Subchapter J of the Code,
including Treasury regulation section 301.7701-4(c)(2).

                                       19
<PAGE>

         Group 1: All of the Group 1 Certificates.

         Group 1 Certificate: Any Class 1-A, Class 1-AX or Class R Certificate.

         Group 2: All of the Group 2 Certificates.

         Group 2 Certificate: Any Class 2-A1, Class 2-A2 or Class 2-AX
Certificate.

         Group 3: All of the Group 3 Certificates.

         Group 3 Certificate: Any Class 3-A or Class 3-AX Certificate.

         Group 4: All of the Group 4 Certificates.

         Group 4 Certificate: Any Class 4-A or Class 4-AX Certificate.

         Group Subordinate Amount: With respect to any Mortgage Pool and any
Distribution Date, the excess, if any, of the Pool Balance of such Mortgage Pool
for the immediately preceding Distribution Date over the sum of the aggregate of
the Certificate Principal Amounts of the Senior Certificates of the related
Certificate Group immediately prior to the related Distribution Date.

         Holder or Certificateholder: The registered owner of any Certificate as
recorded on the books of the Certificate Registrar except that, solely for the
purposes of taking any action or giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Depositor, the Trustee, the Master
Servicer, any Servicer or any Affiliate thereof shall be deemed not to be
outstanding in determining whether the requisite percentage necessary to effect
any such consent has been obtained, except that, in determining whether the
Trustee shall be protected in relying upon any such consent, only Certificates
which a Responsible Officer of the Trustee knows to be so owned shall be
disregarded. The Trustee may request and conclusively rely on certifications by
the Depositor, the Master Servicer and any Servicer in determining whether any
Certificates are registered to an Affiliate of the Depositor, the Master
Servicer or such Servicer.

         HUD: The United States Department of Housing and Urban Development, or
any successor thereto.

         Independent: When used with respect to any Accountants, a Person who is
"independent" within the meaning of Rule 2-01(b) of the Securities and Exchange
Commission's Regulation S-X. When used with respect to any other Person, a
Person who (a) is in fact independent of another specified Person and any
Affiliate of such other Person, (b) does not have any material direct financial
interest in such other Person or any Affiliate of such other Person, and (c) is
not connected with such other Person or any Affiliate of such other Person as an
officer, employee, promoter, underwriter, trustee, partner, director or Person
performing similar functions.

         Initial LIBOR Rate: Not applicable.

                                       20
<PAGE>

         Initial Net Mortgage Rate: Not applicable.

         Initial Senior Enhancement Percentage: 5.60%.

         Insurance Policy: Any Primary Mortgage Insurance Policy and any
standard hazard insurance policy, flood insurance policy, earthquake insurance
policy or title insurance policy relating to the Mortgage Loans or the Mortgaged
Properties, to be in effect as of the Closing Date or thereafter during the term
of this Agreement.

         Insurance Proceeds: Amounts paid by the insurer under any Insurance
Policy, other than amounts (i) to cover expenses incurred by or on behalf of the
applicable Servicer in connection with procuring such proceeds, (ii) to be
applied to restoration or repair of the related Mortgaged Property, or (iii)
required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note.

         Interest Distribution Amount: Not applicable.

         Interest Shortfall: With respect to any Class of Certificates and any
Distribution Date, any Accrued Certificate Interest not distributed (or added to
principal) with respect to any previous Distribution Date, other than any Net
Prepayment Interest Shortfalls.

         Intervening Assignments: The original intervening assignments of the
Mortgage, notice of transfer or equivalent instrument.

         Latest Possible Maturity Date: The Distribution Date in June 2033.

         Lehman Brothers Holdings: Lehman Brothers Holdings Inc., or any
successor in interest.

         LIBOR:  Not applicable.

         LIBOR Certificate: Not applicable.

         LIBOR Component: Not applicable.

         LIBOR Determination Date: Not applicable.

         Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the
Master Servicer or the applicable Servicer has determined that all amounts that
it expects to recover on behalf of the Trust Fund from or on account of such
Mortgage Loan have been recovered.

         Liquidation Expenses: Expenses that are incurred by the Master Servicer
or any Servicer in connection with the liquidation of any defaulted Mortgage
Loan and are not recoverable under the applicable Primary Mortgage Insurance
Policy, including, without limitation, foreclosure and rehabilitation expenses,
legal expenses and unreimbursed amounts expended pursuant to Sections 9.06, 9.16
or 9.22.

                                       21
<PAGE>

         Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the
related Mortgaged Property (including any Additional Collateral) if the
Mortgaged Property (including such Additional Collateral) is acquired in
satisfaction of the Mortgage Loan, including any amounts remaining in the
related Escrow Account.

         Loan-to-Value Ratio: With respect to any Mortgage Loan, the ratio of
the principal balance of such Mortgage Loan at origination, or such other date
as is specified, to the Original Value thereof.

         London Business Day: Not applicable.

         Lower Tier REMIC: The Lower Tier REMIC as described in the Preliminary
Statement hereto.

         Lower Tier REMIC Interest: Any one of the classes of Lower Tier REMIC
Interests described in the Preliminary Statement hereto.

         Lower Tier REMIC Regular Interest: Any of the LT-1A Interest, LT-1B
Interest, LT-2A Interest, LT-2B Interest, LT-3A Interest, LT-3B Interest, LT-4A
Interest, LT-4B Interest and LT-Z Interest.

         Lower Tier REMIC Subordinated Balance Ratio: The ratio among the
Uncertificated Principal Balances of each of the Lower Tier REMIC Regular
Interests ending with the designation "A" that is equal to the ratio among, with
respect to each such Lower Tier REMIC Regular Interest, the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool over (y) the aggregate Class Principal Amounts of the Senior
Certificates of the Certificate Group related to such Mortgage Pool.

         Maintenance: With respect to any Cooperative Unit, the rent or fee paid
by the Mortgagor to the Cooperative Corporation pursuant to the Proprietary
Lease.

         Master Servicer: Aurora Loan Services Inc., or any successor in
interest, or if any successor master servicer shall be appointed as herein
provided, then such successor master servicer.

         Master Servicing Fee: As to any Distribution Date and each Mortgage
Loan, an amount equal to the product of the Master Servicing Fee Rate and the
Scheduled Principal Balance of such Mortgage Loan as of the first day of the
related Due Period. The Master Servicing Fee for any Mortgage Loan shall be
payable in respect of any Distribution Date solely from the interest portion of
the Scheduled Payment or other payment or recovery with respect to such Mortgage
Loan.

         Master Servicing Fee Rate: With respect to each Mortgage Loan (other
than any Participation), 0.000% per annum.

         Material Defect: As defined in Section 2.02(c) hereof.

                                       22
<PAGE>

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
Corporation, or any successor in interest thereto.

         MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage,
or an Assignment of Mortgage, has been or will be recorded in the name of MERS,
as agent for the holder from time to time of the Mortgage Note.

         Middle Tier REMIC: The Middle Tier REMIC as described in the
Preliminary Statement hereto.

         Middle Tier REMIC Interest: Any one of the classes of Middle Tier REMIC
Interests described in the Preliminary Statement hereto.

         Middle Tier REMIC Regular Interest: Any of the MT-1A Interest, MT-1R
Interest, MT-2A1 Interest, MT-2A2 Interest, MT-3A Interest, MT-4A Interest,
MT-B1 Interest, MT-B2 Interest, MT-B3 Interest, MT-B4 Interest, MT-B5 Interest
and MT-B6 Interest.

         Moody's: Moody's Investors Service, Inc, or any successor in interest.

         Mortgage: A mortgage, deed of trust or other instrument encumbering a
fee simple interest in real property securing a Mortgage Note, together with
improvements thereto.

         Mortgage 100(SM) Loan: Not applicable.

         Mortgage File: The mortgage documents listed in Section 2.01(b)
pertaining to a particular Mortgage Loan required to be delivered to the Trustee
or a Custodian pursuant to this Agreement.

         Mortgage Loan: A Mortgage and the related notes or other evidences of
indebtedness secured by each such Mortgage conveyed, transferred, sold, assigned
to or deposited with the Trustee pursuant to Section 2.01 or Section 2.05,
including without limitation, each Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time. In addition, as used herein the term
"Mortgage Loan" includes the Participations, except where otherwise specified or
where the context requires otherwise.

         Mortgage Loan Sale Agreement: The agreement, dated as of June 1, 2003,
for the sale of certain Mortgage Loans by Lehman Brothers Holdings Inc. to the
Depositor.

         Mortgage Loan Schedule: The schedule attached hereto as Schedule A,
which shall identify each Mortgage Loan, as such schedule may be amended from
time to time to reflect the addition of Mortgage Loans to, or the deletion of
Mortgage Loans from, the Trust Fund. The Depositor shall be responsible for
providing the Trustee, the Master Servicer and the Securities Administrator with
all amendments to the Mortgage Loan Schedule.

         Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage under a Mortgage Loan.

         Mortgage Pool: Either Pool 1, Pool 2, Pool 3 or Pool 4.

                                       23
<PAGE>

         Mortgage Rate: As to any Mortgage Loan, the per annum rate at which
interest accrues on such Mortgage Loan.

         Mortgaged Property: Either of (x) the fee simple interest in real
property, together with improvements thereto including any exterior improvements
to be completed within 120 days of disbursement of the related Mortgage Loan
proceeds, or (y) in the case of a Cooperative Loan, the related Cooperative
Shares and Proprietary Lease, securing the indebtedness of the Mortgagor under
the related Mortgage Loan.

         Mortgagor: The obligor on a Mortgage Note.

         Negative Amortization Certificate: None.

         Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
the related Liquidation Proceeds net of unreimbursed expenses incurred in
connection with liquidation or foreclosure and unreimbursed Advances, Servicing
Advances and Servicing Fees received and retained in connection with the
liquidation of such Mortgage Loan.

         Net Mortgage Rate: With respect to any Mortgage Loan, the Mortgage Rate
thereof reduced by the sum of the applicable Servicing Fee Rate, the Master
Servicing Fee Rate, the Securities Administrator Fee Rate and the Retained
Interest Rate (if applicable).

         Net Prepayment Interest Shortfall: With respect to each Mortgage Pool
and any Distribution Date, the excess, if any, of any Prepayment Interest
Shortfalls with respect to the Mortgage Loans in such Mortgage Pool for such
date over the sum of any amounts paid by the applicable Servicer with respect to
such shortfalls and any amount that is required to be paid by the Master
Servicer in respect of such shortfalls pursuant to this Agreement.

         Net WAC: With respect to each Mortgage Pool and any Distribution Date,
the weighted average of Net Mortgage Rates of the Mortgage Loans in the related
Mortgage Pool at the beginning of the related Due Period, weighted on the basis
of their Scheduled Principal Balances.

         Non-AP Percentage: Not applicable.

         Non-AP Senior Certificate: Not applicable.

         Non-Book-Entry Certificate: Any Certificate other than a Book-Entry
Certificate.

         Non-Discount Mortgage Loan: Not applicable.

         Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage
Loan.

         Non-permitted Foreign Holder: As defined in Section 3.03(f).

         Non-U.S. Person: Any person other than (i) a citizen or resident of the
United States; (ii) a corporation (or entity treated as a corporation for tax
purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia; (iii) a partnership (or entity treated as a partnership for tax

                                       24
<PAGE>

purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations); (iv) an estate whose
income is includible in gross income for United States income tax purposes
regardless of its source; or (v) a trust, if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more U.S. Persons have authority to control all substantial decisions of
the trust. Notwithstanding the last clause of the preceding sentence, to the
extent provided in Treasury regulations, certain trusts in existence on August
20, 1996, and treated as U.S. Persons prior to such date, may elect to continue
to be U.S. Persons.

         Notional Amount: With respect to any Notional Certificate and any
Distribution Date, such Certificate's Percentage Interest of the Class Notional
Amount of such Class of Certificates for such Distribution Date.

         Notional Certificate: Any Class 1-AX, Class 2-AX, Class 3-AX or Class
4-AX Certificate.

         Notional Component: None.

         Offering Document: Either of the private placement memorandum dated
June 25, 2003 relating to the Class B4, Class B5 and Class B6 Certificates, or
the Prospectus.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, any Vice Chairman, the President, any Vice President or any Assistant
Vice President of a Person, and in each case delivered to the Trustee.

         Opinion of Counsel: A written opinion of counsel, reasonably acceptable
in form and substance to the Trustee, and who may be in-house or outside counsel
to the Depositor, the Master Servicer or the applicable Servicer but which must
be Independent outside counsel with respect to any such opinion of counsel
concerning the transfer of any Residual Certificate or concerning certain
matters with respect to ERISA, or the taxation, or the federal income tax
status, of each REMIC. For purpose of Section 2.01(c)(i), the Opinion of Counsel
referred to therein may take the form of a memorandum of law or other acceptable
assurance.

         Original Credit Support Percentage: With respect to each Class of
Subordinate Certificates, the Credit Support Percentage for such Class of
Certificates on the Closing Date.

         Original Group Subordinate Amount: As to any Mortgage Pool, the Group
Subordinate Amount for such Mortgage Pool on the Closing Date.

         Original Value: The lesser of (a) the Appraised Value of a Mortgaged
Property at the time the related Mortgage Loan was originated and (b) if the
Mortgage Loan was made to finance the acquisition of the related Mortgaged
Property, the purchase price paid for the Mortgaged Property by the Mortgagor at
the time the related Mortgage Loan was originated.

         Parent Power(SM) Loan: Not applicable.

         Participation Agreement: Not applicable.

                                       25
<PAGE>

         Participation: Not applicable.

         Participation Schedule: Not applicable.

         Participation Master Servicer: Not applicable.

         Paying Agent: Any paying agent appointed pursuant to Section 3.08.

         Percentage Interest: With respect to any Certificate and the related
Class, such Certificate's percentage interest in the undivided beneficial
ownership interest in the Trust Fund evidenced by all Certificates of the same
Class as such Certificate. With respect to any Certificate other than a Notional
Certificate, the Percentage Interest evidenced thereby shall equal the initial
Certificate Principal Amount thereof divided by the initial Class Principal
Amount of all Certificates of the same Class. With respect to any Notional
Certificate, the Percentage Interest evidenced thereby shall be as specified on
the face thereof.

         Person: Any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         Placement Agent: Lehman Brothers Inc.

         Plan Asset Regulations: The Department of Labor regulations set forth
in 29 C.F.R. 2510.3-101.

         Pool 1: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 1.

         Pool 2: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 2.

         Pool 3: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 3.

         Pool 4: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 4.

         Pool Balance: As to each Mortgage Pool and any Distribution Date, the
sum of the Scheduled Principal Balance of each Mortgage Loan included in such
Mortgage Pool.

         Pledged Asset Loan-to-Value Ratio: Not applicable.

         Pledged Asset Mortgage Loan: Not applicable.

         Prepayment Interest Excess: With respect to any Distribution Date and
any Principal Prepayment in full received on the Mortgage Loans serviced by
Aurora from the first day through the sixteenth day of the month during which
such Distribution Date occurs, all amounts paid in respect of interest at the
applicable Net Mortgage Rate on such Principal Prepayment in full.

                                       26
<PAGE>

         Prepayment Interest Shortfall: With respect to any Distribution Date
and (x) any Principal Prepayment in part and, with respect to those Mortgage
Loans serviced by Servicers other than Aurora, any Principal Prepayment in full
and (y) any Principal Prepayment in full with respect to those Mortgage Loans
serviced by Aurora if received on or after the seventeenth day of the month
immediately preceding the month of such Distribution Date but on or before the
last day of the month immediately preceding the month of such Distribution Date,
the difference between (i) one full month's interest at the applicable Mortgage
Rate (after giving effect to any applicable Relief Act Reduction), as reduced by
the applicable Servicing Fee Rate, the Master Servicing Fee Rate and the
applicable Retained Interest Rate, if any, on the outstanding principal balance
of such Mortgage Loan immediately prior to such prepayment and (ii) the amount
of interest actually received with respect to such Mortgage Loan in connection
with such Principal Prepayment.

         Prepayment Penalty Amounts: With respect to any Distribution Date, all
premiums or charges paid by the obligors under the related Mortgage Notes due to
Principal Prepayments collected by the applicable Servicer during the
immediately preceding Prepayment Period, if any.

         Prepayment Period: With respect to those Mortgage Loans serviced by
Servicers other than Aurora, any Distribution Date and any Principal Prepayment,
whether in part or in full (including any liquidation), the calendar month
immediately preceding the month in which such Distribution Date occurs. With
respect to any Distribution Date and a Principal Prepayment in full (including
any liquidation) with respect to those Mortgage Loans serviced by Aurora, the
period from the seventeenth day of the month immediately preceding the month of
such Distribution Date to the sixteenth day of the month of such Distribution
Date. With respect to those Mortgage Loans serviced by Aurora, any Distribution
Date and any Principal Prepayment in part, the calendar month immediately
preceding the month in which such Distribution Date occurs.

         Primary Mortgage Insurance Policy: Mortgage guaranty insurance, if any,
on an individual Mortgage Loan, as evidenced by a policy or certificate.

         Principal Amount Schedules: Not applicable.

         Principal Only Certificate: Not applicable.

         Principal Prepayment: Any Mortgagor payment of principal (other than a
Balloon Payment) or other recovery of principal on a Mortgage Loan that is
recognized as having been received or recovered in advance of its scheduled Due
Date and applied to reduce the principal balance of the Mortgage Loan in
accordance with the terms of the Mortgage Note or the applicable Servicing
Agreement.

         Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

                                       27
<PAGE>

         Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Cooperative Shares.

         Prospectus: The prospectus supplement dated June 25, 2003, together
with the accompanying prospectus dated March 20, 2003, relating to the Senior
Certificates and the Class B1, Class B2 and Class B3 Certificates.

         Purchase Price: With respect to the repurchase of a Mortgage Loan
pursuant to this Agreement, an amount equal to the sum of (a) 100% of the unpaid
principal balance of such Mortgage Loan, (b) accrued interest thereon at the
Mortgage Rate, from the date as to which interest was last paid to (but not
including) the Due Date immediately preceding the related Distribution Date and
(c) any unreimbursed Servicing Advances with respect to such Mortgage Loan and
(d) any costs and damages incurred by the Trust Fund in connection with any
violation by such Mortgage Loan of any predatory- or abusive-lending law. The
Master Servicer or the applicable Servicer (or the Securities Administrator, if
applicable) shall be reimbursed from the Purchase Price for any Mortgage Loan or
related REO Property for any Advances made with respect to such Mortgage Loan
that are reimbursable to the Master Servicer, such Servicer or the Securities
Administrator under this Agreement or the applicable Servicing Agreement, as
well as any unreimbursed Servicing Advances and accrued and unpaid Master
Servicing Fees or Servicing Fees, as applicable.

         QIB:  As defined in Section 3.03(c).

         Qualified GIC: A guaranteed investment contract or surety bond
providing for the investment of funds in the Collection Account or the
Certificate Account and insuring a minimum, fixed or floating rate of return on
investments of such funds, which contract or surety bond shall:

         (a) be an obligation of an insurance company or other corporation whose
long-term debt is rated by each Rating Agency in one of its two highest rating
categories or, if such insurance company has no long-term debt, whose claims
paying ability is rated by each Rating Agency in one of its two highest rating
categories, and whose short-term debt is rated by each Rating Agency in its
highest rating category;

         (b) provide that the Trustee may exercise all of the rights under such
contract or surety bond without the necessity of taking any action by any other
Person;

         (c) provide that if at any time the then current credit standing of the
obligor under such guaranteed investment contract is such that continued
investment pursuant to such contract of funds would result in a downgrading of
any rating of the Certificates, the Trustee shall terminate such contract
without penalty and be entitled to the return of all funds previously invested
thereunder, together with accrued interest thereon at the interest rate provided
under such contract to the date of delivery of such funds to the Trustee;

         (d) provide that the Trustee's interest therein shall be transferable
to any successor trustee hereunder; and

                                       28
<PAGE>

         (e) provide that the funds reinvested thereunder and accrued interest
thereon be returnable to the Collection Account or the Certificate Account, as
the case may be, not later than the Business Day prior to any Distribution Date.

         Qualified Insurer: An insurance company duly qualified as such under
the laws of the states in which the related Mortgaged Properties are located,
duly authorized and licensed in such states to transact the applicable insurance
business and to write the insurance provided and whose claims paying ability is
rated by each Rating Agency in its highest rating category or whose selection as
an insurer will not adversely affect the rating of the Certificates.

         Qualifying Substitute Mortgage Loan: In the case of a Mortgage Loan
substituted for a Deleted Mortgage Loan, a Mortgage Loan that, on the date of
substitution, (i) has a Scheduled Principal Balance (together with that of any
other mortgage loan substituted for the same Deleted Mortgage Loan) as of the
Due Date in the month in which such substitution occurs not in excess of the
Scheduled Principal Balance of the related Deleted Mortgage Loan; provided,
however, that, to the extent that the Scheduled Principal Balance of such
Mortgage Loan is less than the Scheduled Principal Balance of the related
Deleted Mortgage Loan, then such differential in principal amount, together with
interest thereon at the applicable Mortgage Rate net of the Master Servicing Fee
and the applicable Servicing Fee from the date as to which interest was last
paid through the end of the Due Period in which such substitution occurs, shall
be paid by the party effecting such substitution to the Master Servicer for
deposit into the Collection Account, and shall be treated as a Principal
Prepayment hereunder; (ii) has a Net Mortgage Rate not lower than the Net
Mortgage Rate of the related Deleted Mortgage Loan and will be a Discount
Mortgage Loan if the Deleted Mortgage Loan was a Discount Mortgage Loan or a
Non-Discount Mortgage Loan if the Deleted Mortgage Loan was a Non-Discount
Mortgage Loan; (iii) has a remaining stated term to maturity not longer than,
and not more than one year shorter than, the remaining term to stated maturity
of the related Deleted Mortgage Loan; (iv) (A) has a Loan-to-Value Ratio as of
the date of such substitution of not greater than 80%, provided, however, that
if the related Deleted Mortgage Loan has a Loan-to-Value Ratio of greater than
80%, then the Loan-to-Value Ratio of such substitute Mortgage Loan may be
greater than 80% but shall not be greater than the Loan-to-Value Ratio of the
related Deleted Mortgage Loan and (B) the addition of such substitute Mortgage
Loan does not increase the weighted average Loan-to-Value Ratio of the related
Mortgage Pool by more than 5%; (v) will comply with all of the representations
and warranties relating to Mortgage Loans set forth herein, as of the date as of
which such substitution occurs; (vi) is not a Cooperative Loan unless the
related Deleted Mortgage Loan was a Cooperative Loan; (vii) if applicable, has
the same index as and a margin not less than that of the related Deleted
Mortgage Loan; (viii) has not been delinquent for a period of more than 30 days
more than once in the twelve months immediately preceding such date of
substitution; (ix) is covered by a Primary Mortgage Insurance Policy if the
related Deleted Mortgage Loan is so covered, and the Loan-to-Value Ratio of such
Mortgage Loan is greater than 80%; (x) has a Credit Score not greater than 20
points lower than the Credit Score of the related Deleted Mortgage Loan,
provided, however, that if the Deleted Mortgage Loan does not have a Credit
Score, then such substitute Mortgage Loan shall have a Credit Score equal to or
greater than 700; (xi) has its initial adjustment date after the related Reset
Date; and (xii) has a gross margin no less than the related Deleted Mortgage
Loan. In the event that either one mortgage loan is substituted for more than
one Deleted Mortgage Loan or more than one mortgage loan is substituted for one
or more Deleted Mortgage Loans, then (a) the Scheduled Principal Balance

                                       29
<PAGE>

referred to in clause (i) above shall be determined such that the aggregate
Scheduled Principal Balance of all such substitute Mortgage Loans shall not
exceed the aggregate Scheduled Principal Balance of all Deleted Mortgage Loans
and (b) each of (1) the rate referred to in clause (ii) above, (2) the remaining
term to stated maturity referred to in clause (iii) above, (3) the Loan-to-Value
Ratio referred to in clause (iv) above and (4) the Credit Score referred to in
clause (x) above shall be determined on a weighted average basis, provided that
the final scheduled maturity date of any Qualifying Substitute Mortgage Loan
shall not exceed the Final Scheduled Distribution Date of any Class of
Certificates. Whenever a Qualifying Substitute Mortgage Loan is substituted for
a Deleted Mortgage Loan pursuant to this Agreement, the party effecting such
substitution shall certify such qualification in writing to the Trustee and the
Master Servicer.

         Rating Agency: Each of S&P or Moody's.

         Realized Loss: (a) with respect to each Liquidated Mortgage Loan, an
amount equal to (i) the unpaid principal balance of such Mortgage Loan as of the
date of liquidation, plus (ii) interest at the applicable Net Mortgage Rate from
the date as to which interest was last paid up to the last day of the month of
such liquidation, minus (iii) Liquidation Proceeds received, net of amounts that
are reimbursable to the Master Servicer or the applicable Servicer with respect
to such Mortgage Loan (other than Advances of principal and interest) including
expenses of liquidation and (b) with respect to each Mortgage Loan that has
become the subject of a Deficient Valuation, the difference between the unpaid
principal balance of such Mortgage Loan immediately prior to such Deficient
Valuation and the unpaid principal balance of such Mortgage Loan as reduced by
the Deficient Valuation. In determining whether a Realized Loss on a Liquidated
Mortgage Loan is a Realized Loss of interest or principal, Liquidation Proceeds
shall be allocated, first, to payment of expenses related to such Liquidated
Mortgage Loan (including payment of any Retained Interest), then to accrued
unpaid interest and finally to reduce the principal balance of the Mortgage
Loan.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the related Cooperative Corporation and the originator of such
Mortgage Loan to establish the rights of such originator in the related
Cooperative Property.

         Record Date: With respect to any Distribution Date and each Class of
Certificates, the close of business on the last Business Day of the month
immediately preceding the month in which such Distribution Date occurs.

         Redemption Certificate: None.

         Reference Banks: Not applicable.

         Regulation S: Regulation S promulgated under the Act or any successor
provision thereto, in each case as the same may be amended from time to time;
and all references to any rule, section or subsection of, or definition or term
contained in, Regulation S means such rule, section, subsection, definition or
term, as the case may be, or any successor thereto, in each case as the same may
be amended from time to time.

         Regulation S Global Security: The meaning specified in Section 3.01(c).

                                       30
<PAGE>

         Relief Act Reduction: With respect to any Mortgage Loan as to which
there has been a reduction in the amount of interest collectible thereon as a
result of application of the Solders' and Sailors' Civil Relief Act of 1940, as
amended, or any similar state law, any amount by which interest collectible on
such Mortgage Loan for the Due Date in the related Due Period is less than
interest accrued thereon for the applicable one-month period at the Mortgage
Rate without giving effect to such reduction.

         REMIC: Each of the Lower Tier REMIC, the Middle Tier REMIC and the
Upper Tier REMIC, as described in the Preliminary Statement hereto.

         REMIC Provisions: The provisions of the federal income tax law relating
to real estate mortgage investment conduits, which appear at sections 860A
through 86OG of Subchapter M of Chapter 1 of the Code, and related provisions,
and regulations, including proposed regulations and rulings, and administrative
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.

         Remittance Date: The day in each month on which each Servicer is
required to remit payments to the account maintained by the Master Servicer, as
specified in the applicable Servicing Agreement, which is the 18th day of each
month (or if such 18th day is not a Business Day, the next succeeding Business
Day).

         REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan or otherwise treated as having been acquired pursuant to the REMIC
Provisions.

         Repurchase Price: As defined in Section 7.01 hereof.

         Reserve Interest Rate: Not applicable.

         Reset Date: With respect to Pool 1, February 2006, with respect to Pool
2, April 2008, with respect to Pool 3, April 2008 and with respect to Pool 4,
February 2010.

         Residual Certificate: Any Class R Certificate.

         Responsible Officer: When used with respect to the Trustee or the
Securities Administrator, any Vice President, Assistant Vice President, the
Secretary, any assistant secretary, any Trust Officer, the Treasurer, or any
assistant treasurer, working in its corporate trust department and having direct
responsibility for the administration of this Agreement.

         Restricted Certificate: Any Class B4, Class B5 or Class B6 Certificate
but excluding any Regulation S Global Security.

         Restricted Global Security: The meaning specified in Section 3.01(c).

         Retained Interest: Interest in respect of each Employee Mortgage Loan,
retained in each case by the Retained Interest Holder at the Retained Interest
Rate.

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<PAGE>

         Retained Interest Holder: Lehman Brothers Holdings or any successor in
interest by assignment or otherwise.

         Retained Interest Rate: For each Due Period, 0.00% per annum; provided,
however, if the Mortgagor of the Employee Mortgage Loan ceases to be an employee
of Lehman Brothers Inc. or its Affiliates, 0.25% per annum.

         Rounding Account: Not applicable.

         S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
or any successor in interest.

         Scheduled Payment: Each scheduled payment of principal and interest (or
of interest only, if applicable) to be paid by the Mortgagor on a Mortgage Loan,
as reduced (except where otherwise specified herein) by the amount of any
related Debt Service Reduction (excluding all amounts of principal and interest
that were due on or before the Cut-off Date whenever received) and, in the case
of an REO Property, an amount equivalent to the Scheduled Payment that would
have been due on the related Mortgage Loan if such Mortgage Loan had remained in
existence. In the case of any bi-weekly payment Mortgage Loan, all payments due
on such Mortgage Loan during any Due Period shall be deemed collectively to
constitute the Scheduled Payment due on such Mortgage Loan in such Due Period.

         Scheduled Principal Amount: As to any Distribution Date, an amount
equal to the amount described in clause (i)(b) of the definition of Senior
Principal Distribution Amount.

         Scheduled Principal Balance: With respect to (i) any Mortgage Loan as
of any Distribution Date, the principal balance of such Mortgage Loan at the
close of business on the Cut-off Date, after giving effect to principal payments
due on or before the Cut-off Date, whether or not received, less an amount equal
to principal payments due after the Cut-off Date and on or before the Due Date
in the related Due Period, whether or not received from the Mortgagor or
advanced by the applicable Servicer or the Master Servicer, and all amounts
allocable to unscheduled principal payments (including Principal Prepayments,
Net Liquidation Proceeds, Insurance Proceeds and condemnation proceeds, in each
case to the extent identified and applied prior to or during the applicable
Prepayment Period) and (ii) any REO Property as of any Distribution Date, the
Scheduled Principal Balance of the related Mortgage Loan on the Due Date
immediately preceding the date of acquisition of such REO Property by or on
behalf of the Trustee (reduced by any amount applied as a reduction of principal
on the Mortgage Loan). With respect to any Mortgage Loan as of the Cut-off Date,
as specified in the Mortgage Loan Schedule or the Participation Schedule, as the
case may be.

         Securities Administrator: Wells Fargo Bank Minnesota, National
Association, not in its individual capacity but solely as Securities
Administrator, or any successor in interest, or if any successor Securities
Administrator shall be appointed as herein provided, then such successor
Securities Administrator.

         Securities Administrator Fee: As to any Distribution Date and each
Mortgage Loan, an amount equal to the product of the Securities Administrator
Fee Rate and the Scheduled Principal Balance of such Mortgage Loan as of the
first day of the related Due Period.

                                       32
<PAGE>

         Securities Administrator Fee Rate: 0.0080% per annum.

         Security Agreement: With respect to any Cooperative Loan, the agreement
between the owner of the related Cooperative Shares and the originator of the
related Mortgage Note that defines the terms of the security interest in such
Cooperative Shares and the related Proprietary Lease.

         Seller: Lehman Brothers Holdings or any successor in interest.

         Senior Certificate: Any Class 1-A, Class 2-A1, Class 2-A2, Class 3-A,
Class 4-A or Class R Certificate.

         Senior Enhancement Percentage: For each Mortgage Pool for any
Distribution Date the percentage equivalent of a fraction, the numerator of
which is the sum of the Class Principal Amounts of the Subordinate Certificates
and the denominator of which is the sum of the Pool Balances for each Mortgage
Pool for the immediately preceding Distribution Date.

         Senior Percentage: With respect to each Mortgage Pool and any
Distribution Date, the percentage equivalent of the fraction, the numerator of
which is the aggregate of the Certificate Principal Amounts of the Class 1-A and
Class R Certificates, in the case of Pool 1, the Class 2-A1 and Class 2-A2
Certificates, in the case of Pool 2, the Class 3-A Certificates, in the case of
Pool 3, the Class 4-A Certificates, in the case of Pool 4, in each case
immediately prior to such Distribution Date and the denominator of which is the
related Pool Balance for the immediately preceding Distribution Date.

         Senior Prepayment Percentage: With respect to each Mortgage Pool and
any Distribution Date occurring during the seven years beginning on the first
Distribution Date, 100%, except as described herein below. With respect to each
Mortgage Pool and for any Distribution Date occurring on or after the seventh
anniversary of the first Distribution Date, the related Senior Percentage plus
the following percentage of the related Subordinate Percentage for such
Distribution Date: for any Distribution Date in the first year thereafter, 70%;
for any Distribution Date in the second year thereafter, 60%; for any
Distribution Date in the third year thereafter, 40%; for any Distribution Date
in the fourth year thereafter, 20%; and for any subsequent Distribution Date,
0%; provided, however, (i) if on any of the foregoing Distribution Dates the
Senior Enhancement Percentage is less than the Initial Senior Enhancement
Percentage, the Senior Prepayment Percentage for each Mortgage Pool on such
Distribution Date shall once again equal 100%, (ii) unless the condition
described in (i) has occurred, if on any Distribution Date before the
Distribution Date in July 2006, prior to giving effect to any distributions on
such Distribution Date, the Senior Enhancement Percentage for such Distribution
Date is greater than or equal to twice the Initial Senior Enhancement
Percentage, then the Senior Prepayment Percentage for each Mortgage Pool for
such Distribution Date will equal the related Senior Percentage plus 50% of the
related Subordinate Percentage for such Mortgage Pool and (iii) unless the
condition described in (i) has occurred, if on any Distribution Date on or after
the Distribution Date in July 2006, prior to giving effect to any distributions
on such Distribution Date, the Senior Enhancement Percentage for such
Distribution Date is greater than or equal to twice the Initial Senior
Enhancement Percentage, then the Senior Prepayment Percentage for each Mortgage
Pool on such Distribution Date will equal the related Senior Percentage.

                                       33
<PAGE>

         Notwithstanding the foregoing, no decrease in the Senior Prepayment
Percentage for any Mortgage Pool below the respective levels in effect for the
most recent prior period set forth in the paragraph above shall be effective on
any Distribution Date if, as of the first Distribution Date as to which any such
decrease applies, (i) the average outstanding principal balance on such
Distribution Date and for the preceding five Distribution Dates of all Mortgage
Loans in the related Mortgage Pool that were delinquent 60 days or more
(including for this purpose any Mortgage Loans in foreclosure and the Scheduled
Payments that would have been due on Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund if the related
Mortgage Loan had remained in existence) is greater than or equal to 50% of the
applicable Group Subordinate Amount immediately prior to such Distribution Date
or (ii) cumulative Realized Losses with respect to the Mortgage Loans in the
related Mortgage Pool exceed (a) with respect to the Distribution Date prior to
the third anniversary of the first Distribution Date, 20% of the related
Original Group Subordinate Amount, (b) with respect to the Distribution Date on
or after the third anniversary and prior to the sixth anniversary of the first
Distribution Date, 30% of the related Original Group Subordinate Amount, (c)
with respect to the Distribution Date on or after the sixth anniversary and
prior to the seventh anniversary of the first Distribution Date, 35% of the
related Original Group Subordinate Amount, (d) with respect to the Distribution
Date on or after the seventh anniversary and prior to the eighth anniversary of
the first Distribution Date, 40% of the related Original Group Subordinate
Amount, (e) with respect to the Distribution Date on or after the eighth
anniversary and prior to the ninth anniversary of the first Distribution Date,
45% of the related Original Group Subordinate Amount, and (f) with respect to
the Distribution Date on or after the ninth anniversary of the first
Distribution Date or thereafter, 50% of the related Original Group Subordinate
Amount. After the Class Principal Amount of each Class of Senior Certificates in
any Certificate Group has been reduced to zero, the Senior Prepayment Percentage
for the related Mortgage Pool shall be 0%.

         Senior Principal Distribution Amount: For each Certificate Group and
any Distribution Date, the sum of the following amounts:

             (i)      the product of (a) the related Senior Percentage for such
         date and (b) the principal portion of each Scheduled Payment (without
         giving effect to any Debt Service Reduction occurring prior to the
         Bankruptcy Coverage Termination Date), on each Mortgage Loan in the
         related Mortgage Pool due during the related Due Period;

             (ii)     the product of (a) the related Senior Prepayment
         Percentage for such date and (b) each of the following amounts: (1)
         each Principal Prepayment on the Mortgage Loans in the related Mortgage
         Pool collected during the related Prepayment Period, (2) each other
         unscheduled collection, including Insurance Proceeds and Net
         Liquidation Proceeds (other than with respect to any Mortgage Loan in
         the related Mortgage Pool that was finally liquidated during the
         related Prepayment Period) representing or allocable to recoveries of
         principal received during the related Prepayment Period, and (3) the
         principal portion of all proceeds of the purchase of any Mortgage Loan
         in the related Mortgage Pool (or, in the case of a permitted
         substitution, amounts representing a principal adjustment) actually
         received by the Securities Administrator during the related Prepayment
         Period;

                                       34
<PAGE>

             (iii)    with respect to unscheduled recoveries allocable to
         principal of any Mortgage Loan in the related Mortgage Pool that was
         finally liquidated during the related Prepayment Period, the lesser of
         (a) the related net Liquidation Proceeds allocable to principal and (b)
         the product of the related Senior Prepayment Percentage for such date
         and the Scheduled Principal Balance of such related Mortgage Loan at
         the time of liquidation; and

             (iv)     any amounts described in clauses (i) through (iii) for
         any previous Distribution Date that remain unpaid.

If on any Distribution Date the Class Principal Amount of each Class of Senior
Certificates in any Certificate Group has been reduced to zero, the Senior
Principal Distribution Amount for such Certificate Group for such date
(following such reduction) and each subsequent Distribution Date shall be zero.

         Servicer: Any Servicer that has entered into any of the Servicing
Agreements attached as Exhibit E hereto, or any successor in interest.
Initially, the Servicers are Aurora, Cendant Mortgage Corporation, Colonial
Savings, F.A., National City Mortgage Co., Wells Fargo Home Mortgage, Inc.

         Servicing Advances: Expenditures incurred by a Servicer in connection
with the liquidation or foreclosure of a Mortgage Loan which are eligible for
reimbursement under the applicable Servicing Agreement.

         Servicing Agreement: Each Servicing Agreement between a Servicer and
the Seller, dated as of June 1, 2003, attached hereto in Exhibit E, and any
other servicing agreement entered into between a successor servicer and the
Seller or the Trustee pursuant to the terms hereof.

         Servicing Fee: The Servicing Fee specified in the applicable Servicing
Agreement.

         Servicing Fee Rate: With respect to a Servicer, the rate specified in
the applicable Servicing Agreement.

         Servicing Officer: Any officer of the Master Servicer involved in or
responsible for the administration and servicing or master servicing of the
Mortgage Loans whose name appears on a list of servicing officers furnished by
the Master Servicer to the Trustee, as such list may from time to time be
amended.

         Special Hazard Loss: With respect to the Mortgage Loans, (x) any
Realized Loss arising out of any direct physical loss or damage to a Mortgaged
Property which is caused by or results from any cause, exclusive of any loss
covered by a hazard policy or a flood insurance policy required to be maintained
in respect of such Mortgaged Property and any loss caused by or resulting from
(i) normal wear and tear, (ii) conversion or other dishonest act on the part of
the Trustee, the Master Servicer, any Servicer or any of their agents or
employees, or (iii) errors in design, faulty workmanship or faulty materials,
unless the collapse of the property or a part thereof ensues, or (y) any
Realized Loss arising from or related to the presence or suspected presence of
hazardous wastes, or hazardous substances on a Mortgaged Property unless such
loss is covered by a hazard policy or flood insurance policy required to be
maintained in respect of such Mortgaged Property, in any case, as reported by
any Servicer to the Master Servicer.

                                       35
<PAGE>

         Special Hazard Loss Limit: As of the Cut-off Date, $15,140,729.00,
which amount shall be reduced from time to time to an amount equal on any
Distribution Date to the lesser of (a) the greatest of (i) 1% of the aggregate
of the Scheduled Principal Balances of the Mortgage Loans; (ii) twice the
Scheduled Principal Balance of the Mortgage Loan having the highest Scheduled
Principal Balance, and (iii) the aggregate Scheduled Principal Balances of the
Mortgage Loans secured by Mortgaged Properties located in the single California
postal zip code area having the highest aggregate Scheduled Principal Balance of
Mortgage Loans of any such postal zip code area and (b) the Special Hazard Loss
Limit as of the Closing Date less the amount, if any, of Special Hazard Losses
incurred with respect to Mortgage Loans since the Closing Date.

         Specified Rating: Not applicable.

         Startup Day: The day designated as such pursuant to Section 10.01(b)
hereof.

         Subordinate Certificate: Any Class B Certificate.

         Subordinate Certificate Writedown Amount: As to any Distribution Date,
the amount by which (i) the sum of the Class Principal Amounts of all the
Certificates (after giving effect to the distribution of principal and the
allocation of Realized Losses in reduction of the Certificate Principal Amounts
of the Certificates on such Distribution Date) exceeds (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans for such Distribution Date.

         Subordinate Class Percentage: With respect to any Distribution Date and
any Class of Subordinate Certificates, the percentage obtained by dividing the
Class Principal Amount of such Class immediately prior to such Distribution Date
by the aggregate Certificate Principal Amount of all Subordinate Certificates
immediately prior to such Distribution Date.

         Subordinate Component Percentage: Not applicable.

         Subordinate Percentage: With respect to each Mortgage Pool and any
Distribution Date, the difference between 100% and the related Senior Percentage
for such Distribution Date.

         Subordinate Prepayment Percentage: With respect to each Mortgage Pool
and any Distribution Date, the difference between 100% and the related Senior
Prepayment Percentage for such Distribution Date.

         Subordinate Principal Distribution Amount: For each Mortgage Pool and
any Distribution Date, the sum of the following:

             (i)      the product of (a) the related Subordinate Percentage for
         such date and (b) the principal portion of each Scheduled Payment
         (without giving effect to any Debt Service Reduction occurring prior to
         the applicable Bankruptcy Coverage Termination Date) on each Mortgage
         Loan in the related Mortgage Pool due during the related Due Period;

                                       36
<PAGE>

             (ii)     the product of (a) the related Subordinate Prepayment
         Percentage for such date and (b) each of the following amounts: (1)
         each Principal Prepayment on the Mortgage Loans in the related Mortgage
         Pool collected during the related Prepayment Period, (2) each other
         unscheduled collection, including Insurance Proceeds and Net
         Liquidation Proceeds (other than with respect to any Mortgage Loan in
         the related Mortgage Pool that was finally liquidated during the
         related Prepayment Period) representing or allocable to recoveries of
         principal received during the related Prepayment Period, and (3) the
         principal portion of all proceeds of the purchase of any Mortgage Loan
         in the related Mortgage Pool (or, in the case of a permitted
         substitution, amounts representing a principal adjustment) actually
         received by the Securities Administrator during the related Prepayment
         Period;

             (iii)    with respect to unscheduled recoveries allocable to
         principal of any Mortgage Loan in the related Mortgage Pool that was
         finally liquidated during the related Prepayment Period, the related
         net Liquidation Proceeds allocable to principal less any related amount
         paid pursuant to subsection (iii) of the definition of Senior Principal
         Distribution Amount for the related Certificate Group; and

             (iv)     any amounts described in clauses (i) through (iii) for any
         previous Distribution Date that remain unpaid;

         Surety: Not applicable.

         Surety Bond: Not applicable.

         Tax Matters Person: Not applicable.

         Title Insurance Policy: A title insurance policy maintained with
respect to a Mortgage Loan.

         Transfer Agreement: As defined in the Mortgage Loan Sale Agreement.

         Transferor: Each seller of Mortgage Loans to Lehman Brothers Holdings
pursuant to a Transfer Agreement.

         Trust Fund: The corpus of the trust created pursuant to this Agreement,
consisting of the Mortgage Loans (other than any Retained Interest), the
assignment of the Depositor's rights under the Mortgage Loan Sale Agreement and
the Participation Agreement, the Participations, the Additional Collateral, such
amounts as shall from time to time be held in the Collection Account, the
Certificate Account, any Escrow Account, the Insurance Policies, any REO
Property and the other items referred to in, and conveyed to the Trustee under,
Section 2.01(a).

         Trust Rate: Not applicable.

         Trustee: HSBC Bank USA, a New York state banking corporation, not in
its individual capacity, but solely in its capacity as trustee for the benefit
of the Certificateholders under this Agreement, and any successor thereto, and
any corporation or national banking association resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any
successor trustee as may from time to time be serving as successor trustee
hereunder.

                                       37
<PAGE>

         Trustee Fee: Not applicable.

         Trustee Fee Rate: Not applicable.

         Undercollateralization Distribution: As defined in Section 5.02(f)(ii).

         Undercollateralized Group: With respect to any Distribution Date, the
Senior Certificates of any Certificate Group as to which the aggregate
Certificate Principal Amount thereof, after giving effect to distributions
pursuant to Sections 5.02(a) and (b) on such date, is greater than the Pool
Balance of the related Mortgage Pool for such Distribution Date.

         Underwriter's Exemption: Prohibited Transaction Exemption 91-14, 56
Fed. Reg. 7413 (1991), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

         Upper Tier REMIC: One of the separate REMICs as described in the
Preliminary Statement hereto.

         Voting Interests: The portion of the voting rights of all the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement
until the Class Notional Amount of each Class of Notional Certificates has been
reduced to zero, 93% of all Voting Interests shall be allocated to the
Certificates other than the Notional Certificates and the Class P Certificates,
5% of all Voting Interests shall be allocated to the Notional Certificates, 1%
shall be allocated to the Class P-I Certificates and 1% shall be allocated to
the Class P-II Certificates. After the Class Notional Amount of each Class of
Notional Certificates has been reduced to zero, 99% of all Voting Interests
shall be allocated to the remaining Classes of Certificates other than the Class
P Certificates. Voting Interests allocated to the Notional Certificates shall be
allocated among the Classes of such Certificates (and among the Certificates of
each such Class) in proportion to their Class Notional Amounts (or Notional
Amounts). Voting Interests shall be allocated among the other Classes of
Certificates (and among the Certificates of each such Class) in proportion to
their Class Principal Amounts (or Certificate Principal Amounts).

         Section 1.02. Calculations Respecting Mortgage Loans.

         Calculations required to be made pursuant to this Agreement with
respect to any Mortgage Loan in the Trust Fund shall be made based upon current
information as to the terms of the Mortgage Loans and reports of payments
received from the Mortgagor on such Mortgage Loans and distributions to be made
to the Certificateholders as supplied to the Securities Administrator by the
Master Servicer. The Securities Administrator shall not be required to
recompute, verify or recalculate the information supplied to it by the Master
Servicer.

                                       38
<PAGE>

                                   ARTICLE II

                              DECLARATION OF TRUST;
                            ISSUANCE OF CERTIFICATES

         Section 2.01. Creation and Declaration of Trust Fund; Conveyance of
Mortgage Loans.

         (a) Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby transfer, assign, set over, deposit with and otherwise
convey to the Trustee, without recourse, subject to Sections 2.02, 2.04, 2.05
and 2.06, in trust, all the right, title and interest of the Depositor in and to
the Mortgage Loans (including the Participations). Such conveyance includes,
without limitation, the right to all distributions of principal and interest
received on or with respect to the Mortgage Loans on and after the Cut-off Date
(other than payments of principal and interest due on or before such date), and
all such payments due after such date but received prior to such date and
intended by the related Mortgagors to be applied after such date, together with
all of the Depositor's right, title and interest in and to the Collection
Account and all amounts from time to time credited to and the proceeds of the
Collection Account, the Certificate Account and all amounts from time to time
credited to and the proceeds of the Certificate Account, any Escrow Account
established pursuant to Section 9.06 hereof and all amounts from time to time
credited to and the proceeds of any such Escrow Account, any REO Property and
the proceeds thereof, the Depositor's rights under any Insurance Policies
related to the Mortgage Loans, and the Depositor's security interest in any
collateral pledged to secure the Mortgage Loans, including the Mortgaged
Properties and any Additional Collateral, and any proceeds of the foregoing, to
have and to hold, in trust; and the Trustee declares that, subject to the review
provided for in Section 2.02, it has received and shall hold the Trust Fund, as
trustee, in trust, for the benefit and use of the Holders of the Certificates
and for the purposes and subject to the terms and conditions set forth in this
Agreement, and, concurrently with such receipt, has caused to be executed,
authenticated and delivered to or upon the order of the Depositor, in exchange
for the Trust Fund, Certificates in the authorized denominations evidencing the
entire ownership of the Trust Fund.

         Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby assign to the Trustee all of its rights and interest under
the Mortgage Loan Sale Agreement; including all rights of the Seller under the
applicable Servicing Agreement to the extent assigned under the Mortgage Loan
Sale Agreement. The Trustee hereby accepts such assignment, and shall be
entitled to exercise all rights of the Depositor under the Mortgage Loan Sale
Agreement as if, for such purpose, it were the Depositor. The foregoing sale,
transfer, assignment, set-over, deposit and conveyance does not and is not
intended to result in creation or assumption by the Trustee of any obligation of
the Depositor, the Seller, or any other Person in connection with the Mortgage
Loans or any other agreement or instrument relating thereto except as
specifically set forth herein.

         In addition, with respect to any Pledged Asset Mortgage Loan, the
Depositor does hereby transfer, assign, set-over and otherwise convey to the
Trustee without recourse (except as provided herein) (i) its rights as assignee
under any security agreements, pledge agreements or guarantees relating to the
Additional Collateral supporting any Pledged Asset Mortgage Loan, (ii) its
security interest in and to any Additional Collateral, (iii) its right to
receive payments in respect of any Pledged Asset Mortgage Loan pursuant to the
Additional Collateral Servicing Agreement, and (iv) its rights as beneficiary
under the Surety Bond in respect of any Pledged Asset Mortgage Loan.
Notwithstanding anything to the contrary in this Agreement, the Trust Fund shall
not obtain title to or beneficial ownership of any Additional Collateral as a
result of or in lieu of the disposition thereof or otherwise.

                                       39
<PAGE>

         (b) In connection with such transfer and assignment, the Depositor does
hereby deliver to, and deposit with, or cause to be delivered to and deposited
with, the Trustee, and/or any custodian acting on the Trustee's behalf, if
applicable, the following documents or instruments with respect to each Mortgage
Loan (each a "Mortgage File") so transferred and assigned (other than the
Participations):

             (i)      with respect to each Mortgage Loan, the original Mortgage
         Note endorsed without recourse in proper form to the order of the
         Trustee, or in blank (in each case, with all necessary intervening
         endorsements as applicable);

             (ii)     the original of any guarantee, security agreement or
         pledge agreement relating to any Additional Collateral and executed in
         connection with the Mortgage Note, assigned to the Trustee;

             (iii)    with respect to each Mortgage Loan other than a
         Cooperative Loan, the original recorded Mortgage with evidence of
         recording indicated thereon and the original recorded power of
         attorney, if the Mortgage was executed pursuant to a power of attorney,
         with evidence of recording thereon or, if such Mortgage or power of
         attorney has been submitted for recording but has not been returned
         from the applicable public recording office, has been lost or is not
         otherwise available, a copy of such Mortgage or power of attorney, as
         the case may be, certified to be a true and complete copy of the
         original submitted for recording. If, in connection with any Mortgage
         Loan, the Depositor cannot deliver the Mortgage with evidence of
         recording thereon on or prior to the Closing Date because of a delay
         caused by the public recording office where such Mortgage has been
         delivered for recordation or because such Mortgage has been lost, the
         Depositor shall deliver or cause to be delivered to the Trustee (or its
         custodian), in the case of a delay due to recording, a true copy of
         such Mortgage, pending delivery of the original thereof, together with
         an Officer's Certificate of the Depositor certifying that the copy of
         such Mortgage delivered to the Trustee (or its custodian) is a true
         copy and that the original of such Mortgage has been forwarded to the
         public recording office, or, in the case of a Mortgage that has been
         lost, a copy thereof (certified as provided for under the laws of the
         appropriate jurisdiction) and a written Opinion of Counsel acceptable
         to the Trustee and the Depositor that an original recorded Mortgage is
         not required to enforce the Trustee's interest in the Mortgage Loan;

            (iv)     the original of each assumption, modification or
         substitution agreement, if any, relating to the Mortgage Loans, or, as
         to any assumption, modification or substitution agreement which cannot
         be delivered on or prior to the Closing Date because of a delay caused
         by the public recording office where such assumption, modification or
         substitution agreement has been delivered for recordation, a photocopy
         of such assumption, modification or substitution agreement, pending
         delivery of the original thereof, together with an Officer's
         Certificate of the Depositor certifying that the copy of such
         assumption, modification or substitution agreement delivered to the
         Trustee (or its custodian) is a true copy and that the original of such
         agreement has been forwarded to the public recording office;

                                       40
<PAGE>

             (v)      with respect to each Non-MERS Mortgage Loan other than a
         Cooperative Loan, the original Assignment of Mortgage for each Mortgage
         Loan;

             (vi)     if applicable, such original intervening assignments of
         the Mortgage, notice of transfer or equivalent instrument (each, an
         "Intervening Assignment"), as may be necessary to show a complete chain
         of assignment from the originator, or, in the case of an Intervening
         Assignment that has been lost, a written Opinion of Counsel acceptable
         to the Trustee that such original Intervening Assignment is not
         required to enforce the Trustee's interest in the Mortgage Loans;

             (vii)    the original Primary Mortgage Insurance Policy or
         certificate, if private mortgage guaranty insurance is required;

             (viii)   with respect to each Mortgage Loan other than a
         Cooperative Loan, the original mortgagee title insurance policy or
         attorney's opinion of title and abstract of title;

             (ix)     the original of any security agreement, chattel mortgage
         or equivalent executed in connection with the Mortgage or as to any
         security agreement, chattel mortgage or their equivalent that cannot be
         delivered on or prior to the Closing Date because of a delay caused by
         the public recording office where such document has been delivered for
         recordation, a photocopy of such document, pending delivery of the
         original thereof, together with an Officer's Certificate of the
         Depositor certifying that the copy of such security agreement, chattel
         mortgage or their equivalent delivered to the Trustee (or its
         custodian) is a true copy and that the original of such document has
         been forwarded to the public recording office; and

             (x)      with respect to any Cooperative Loan, the Cooperative Loan
         Documents.

         The parties hereto acknowledge and agree that the form of endorsement
attached hereto as Exhibit B-4 is intended to effect the transfer to the
Trustee, for the benefit of the Certificateholders, of the Mortgage Notes and
the Mortgages.

         With respect to each Participation, the Depositor does hereby deliver
to, and deposit with, or cause to be delivered to and deposited with, the
Trustee, and/or any custodian acting on the Trustee's behalf, a copy of the
Participation Agreement and the original Participation issued to the Trustee.

                                       41
<PAGE>

         (c) (i) Assignments of Mortgage with respect to each Non-MERS Mortgage
         Loan other than a Cooperative Loan shall be recorded; provided,
         however, that such Assignments need not be recorded if, in the Opinion
         of Counsel (which must be from Independent counsel) acceptable to the
         Trustee and the Rating Agencies, recording in such states is not
         required to protect the Trustee's interest in the related Non-MERS
         Mortgage Loans. Subject to the preceding sentence, as soon as
         practicable after the Closing Date (but in no event more than 3 months
         thereafter except to the extent delays are caused by the applicable
         recording office), the Trustee (or its Custodian), at the expense of
         the Depositor and with the cooperation of the applicable Servicer,
         shall cause to be properly recorded by such Servicer in each public
         recording office where the related Mortgages are recorded each
         Assignment of Mortgage referred to in subsection (b)(v) above with
         respect to a Non-MERS Mortgage Loan. With respect to each Cooperative
         Loan, the Trustee (or its Custodian), at the expense of the Depositor
         and with the cooperation of the applicable Servicer, shall cause such
         Servicer to take such actions as are necessary under applicable law in
         order to perfect the interest of the Trustee in the related Mortgaged
         Property.

             (ii) With respect to each MERS Mortgage Loan, the Trustee (or its
         applicable Custodian), at the expense of the Depositor and with the
         cooperation of the applicable Servicer, shall cause to be taken such
         actions by such Servicer as are necessary to cause the Trustee to be
         clearly identified as the owner of each such Mortgage Loan on the
         records of MERS for purposes of the system of recording transfers of
         beneficial ownership of mortgages maintained by MERS.

         (d) In instances where a Title Insurance Policy is required to be
delivered to the Trustee, or to the applicable Custodian on behalf of the
Trustee, under clause (b)(viii) above and is not so delivered, the Depositor
will provide a copy of such Title Insurance Policy to the Trustee, or to the
applicable Custodian on behalf of the Trustee, as promptly as practicable after
the execution and delivery hereof, but in any case within 180 days of the
Closing Date.

         (e) For Mortgage Loans (if any) that have been prepaid in full after
the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of
delivering the above documents, herewith delivers to the Trustee, or to the
applicable Custodian on behalf of the Trustee, an Officer's Certificate which
shall include a statement to the effect that all amounts received in connection
with such prepayment that are required to be deposited in the applicable
Collection Account pursuant to Section 4.01 have been so deposited. All original
documents that are not delivered to the Trustee or the applicable Custodian on
behalf of the Trustee shall be held by the Master Servicer or the applicable
Servicer in trust for the benefit of the Trustee and the Certificateholders.

         Section 2.02. Acceptance of Trust Fund by Trustee: Review of
Documentation for Trust Fund.

         (a) The Trustee or the applicable Custodian on behalf of the Trustee,
by execution and delivery hereof, acknowledges receipt of the Participations and
the Mortgage Files pertaining to the Mortgage Loans listed on the Mortgage Loan
Schedule, subject to review thereof by the Trustee, or by the applicable
Custodian on behalf of the Trustee, under this Section 2.02. The Trustee, or the
applicable Custodian on behalf of the Trustee, will execute and deliver to the
Trustee, the Depositor and the Master Servicer on the Closing Date an Initial
Certification in the form annexed hereto as Exhibit B-1 (or in the form annexed
to the applicable Custodial Agreement as Exhibit B-1, as applicable).

                                       42
<PAGE>

         (b) Within 45 days after the Closing Date, the applicable Custodian
will, on behalf of the Trustee and for the benefit of Holders of the
Certificates, review each Mortgage File to ascertain that all required documents
set forth in Section 2.01 have been received and appear on their face to contain
the requisite signatures by or on behalf of the respective parties thereto, and
shall deliver to the Trustee, the Depositor and the Master Servicer an Interim
Certification in the form annexed hereto as Exhibit B-2 (or in the form annexed
to the applicable Custodial Agreement as Exhibit B-2, as applicable) to the
effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan prepaid in full or any Mortgage Loan specifically
identified in such certification as not covered by such certification), (i) all
of the applicable documents specified in Section 2.01(b) are in its possession
and (ii) such documents have been reviewed by it and appear to relate to such
Mortgage Loan. The Trustee, or the applicable Custodian on behalf of the
Trustee, shall make sure that the documents are executed and endorsed, but shall
be under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that the same are valid,
binding, legally effective, properly endorsed, genuine, enforceable or
appropriate for the represented purpose or that they have actually been recorded
or are in recordable form or that they are other than what they purport to be on
their face. Neither the Trustee nor any Custodian shall have any responsibility
for verifying the genuineness or the legal effectiveness of or authority for any
signatures of or on behalf of any party or endorser.

         (c) If in the course of the review described in paragraph (b) above the
Trustee or the applicable Custodian discovers any document or documents
constituting a part of a Mortgage File that is missing, does not appear regular
on its face (i.e., is mutilated, damaged, defaced, torn or otherwise physically
altered) or appears to be unrelated to the Mortgage Loans identified in the
Mortgage Loan Schedule (each, a "Material Defect"), the Trustee, or the
applicable Custodian on behalf of the Trustee, shall promptly identify the
Mortgage Loan to which such Material Defect relates in the Interim Certificate
delivered to the Depositor or the Master Servicer (and to the Trustee). Within
90 days of its receipt of such notice, the Depositor shall be required to cure
such Material Defect (and, in such event, the Depositor shall provide the
Trustee with an Officer's Certificate confirming that such cure has been
effected). If the Depositor does not so cure such Material Defect, it shall, if
a loss has been incurred with respect to such Mortgage Loan that would, if such
Mortgage Loan were not purchased from the Trust Fund, constitute a Realized
Loss, and such loss is attributable to the failure of the Depositor to cure such
Material Defect, repurchase the related Mortgage Loan from the Trust Fund at the
Purchase Price. A loss shall be deemed to be attributable to the failure of the
Depositor to cure a Material Defect if, as determined by the Depositor, upon
mutual agreement with the Servicer acting in good faith, absent such Material
Defect, such loss would not have been incurred. Within the two-year period
following the Closing Date, the Depositor may, in lieu of repurchasing a
Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan a
Qualifying Substitute Mortgage Loan subject to the provisions of Section 2.05.
The failure of the Trustee or the applicable Custodian to give the notice
contemplated herein within 45 days after the Closing Date shall not affect or
relieve the Depositor of its obligation to repurchase any Mortgage Loan pursuant
to this Section 2.02 or any other Section of this Agreement requiring the
repurchase of Mortgage Loans from the Trust Fund.

         (d) Within 180 days following the Closing Date, the Trustee, or the
applicable Custodian, shall deliver to the Trustee, the Depositor and the Master
Servicer a Final Certification substantially in the form annexed hereto as
Exhibit B-3 (or in the form annexed to the applicable Custodial Agreement as
Exhibit B-3, as applicable) evidencing the completeness of the Mortgage Files in
its possession or control, with any exceptions noted thereto.

                                       43
<PAGE>

         (e) Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Fund, the Trustee or the Certificateholders of any
unsatisfied duty, claim or other liability on any Mortgage Loan or to any
Mortgagor.

         (f) Each of the parties hereto acknowledges that the applicable
Custodian shall perform the applicable review of the Mortgage Loans and deliver
the respective certifications thereof as provided in this Section 2.02.

         Section 2.03. Representations and Warranties of the Depositor.

         (a) The Depositor hereby represents and warrants to the Trustee, for
the benefit of Certificateholders, the Master Servicer and the Securities
Administrator, as of the Closing Date or such other date as is specified, that:

             (i)      the Depositor is a corporation duly organized, validly
         existing and in good standing under the laws governing its creation and
         existence and has full corporate power and authority to own its
         property, to carry on its business as presently conducted, to enter
         into and perform its obligations under this Agreement, and to create
         the trust pursuant hereto;

             (ii)     the execution and delivery by the Depositor of this
         Agreement have been duly authorized by all necessary corporate action
         on the part of the Depositor; neither the execution and delivery of
         this Agreement, nor the consummation of the transactions herein
         contemplated, nor compliance with the provisions hereof, will conflict
         with or result in a breach of, or constitute a default under, any of
         the provisions of any law, governmental rule, regulation, judgment,
         decree or order binding on the Depositor or its properties or the
         certificate of incorporation or bylaws of the Depositor;

             (iii)    the execution, delivery and performance by the Depositor
         of this Agreement and the consummation of the transactions contemplated
         hereby do not require the consent or approval of, the giving of notice
         to, the registration with, or the taking of any other action in respect
         of, any state, federal or other governmental authority or agency,
         except such as has been obtained, given, effected or taken prior to the
         date hereof;

             (iv)     this Agreement has been duly executed and delivered by the
         Depositor and, assuming due authorization, execution and delivery by
         the Trustee, the Securities Administrator and the Master Servicer,
         constitutes a valid and binding obligation of the Depositor enforceable
         against it in accordance with its terms except as such enforceability
         may be subject to (A) applicable bankruptcy and insolvency laws and
         other similar laws affecting the enforcement of the rights of creditors
         generally and (B) general principles of equity regardless of whether
         such enforcement is considered in a proceeding in equity or at law;

                                       44
<PAGE>

             (v)      there are no actions, suits or proceedings pending or, to
         the knowledge of the Depositor, threatened or likely to be asserted
         against or affecting the Depositor, before or by any court,
         administrative agency, arbitrator or governmental body (A) with respect
         to any of the transactions contemplated by this Agreement or (B) with
         respect to any other matter which in the judgment of the Depositor will
         be determined adversely to the Depositor and will if determined
         adversely to the Depositor materially and adversely affect it or its
         business, assets, operations or condition, financial or otherwise, or
         adversely affect its ability to perform its obligations under this
         Agreement; and

             (vi)     immediately prior to the transfer and assignment of the
         Mortgage Loans to the Trustee, the Depositor was the sole owner of
         record and holder of each Mortgage Loan, and the Depositor had good and
         marketable title thereto, and had full right to transfer and sell each
         Mortgage Loan to the Trustee free and clear, subject only to (1) liens
         of current real property taxes and assessments not yet due and payable
         and, if the related Mortgaged Property is a condominium unit, any lien
         for common charges permitted by statute, (2) covenants, conditions and
         restrictions, rights of way, easements and other matters of public
         record as of the date of recording of such Mortgage acceptable to
         mortgage lending institutions in the area in which the related
         Mortgaged Property is located and specifically referred to in the
         lender's Title Insurance Policy or attorney's opinion of title and
         abstract of title delivered to the originator of such Mortgage Loan,
         and (3) such other matters to which like properties are commonly
         subject which do not, individually or in the aggregate, materially
         interfere with the benefits of the security intended to be provided by
         the Mortgage, of any encumbrance, equity, participation interest, lien,
         pledge, charge, claim or security interest, and had full right and
         authority, subject to no interest or participation of, or agreement
         with, any other party, to sell and assign each Mortgage Loan pursuant
         to this Agreement.

         (b) The representations and warranties of each Transferor with respect
to the related Mortgage Loans in the applicable Transfer Agreement, which have
been assigned to the Trustee hereunder, were made as of the date specified in
the applicable Transfer Agreement (or underlying agreement, if such Transfer
Agreement is in the form of an assignment of a prior agreement). To the extent
that any fact, condition or event with respect to a Mortgage Loan constitutes a
breach of both (i) a representation or warranty of the applicable Transferor
under the applicable Transfer Agreement and (ii) a representation or warranty of
Lehman Brothers Holdings under the Mortgage Loan Sale Agreement, the only right
or remedy of the Trustee or of any Certificateholder shall be the Trustee's
right to enforce the obligations of the applicable Transferor under any
applicable representation or warranty made by it. The Trustee acknowledges that
Lehman Brothers Holdings shall have no obligation or liability with respect to
any breach of a representation or warranty made by it with respect to the
Mortgage Loans if the fact, condition or event constituting such breach also
constitutes a breach of a representation or warranty made by the applicable
Transferor in the applicable Transfer Agreement, without regard to whether such
Transferor fulfills its contractual obligations in respect of such
representation or warranty. The Trustee further acknowledges that the Depositor
shall have no obligation or liability with respect to any breach of any
representation or warranty with respect to the Mortgage Loans (except as set
forth in Section 2.03(a)(vi)) under any circumstances.

                                       45
<PAGE>

         Section 2.04. Discovery of Breach.

         It is understood and agreed that the representations and warranties (i)
set forth in Section 2.03, (ii) of Lehman Brothers Holdings set forth in the
Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
hereunder and (iii) of each Transferor, assigned by Lehman Brothers Holdings to
the Depositor pursuant to the Mortgage Loan Sale Agreement and assigned to the
Trustee by the Depositor hereunder shall each survive delivery of the Mortgage
Files and the Assignment of Mortgage of each Mortgage Loan to the Trustee and
shall continue throughout the term of this Agreement. Upon discovery by either
the Depositor, the Master Servicer or the Trustee of a breach of any of such
representations and warranties that adversely and materially affects the value
of the related Mortgage Loan, the party discovering such breach shall give
prompt written notice to the other parties. Within 90 days of the discovery of a
breach of any representation or warranty given to the Trustee by the Depositor,
any Transferor, Lehman Brothers Holdings and assigned to the Trustee, the
Depositor, such Transferor, Lehman Brothers Holdings, as applicable, shall
either (a) cure such breach in all material respects, (b) repurchase such
Mortgage Loan or any property acquired in respect thereof from the Trustee at
the Purchase Price or (c) within the two year period following the Closing Date,
substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage Loan.
In the event of discovery of a breach of any representation and warranty of any
Transferor assigned to the Trustee, the Trustee shall enforce its rights under
the applicable Transfer Agreement and the Mortgage Loan Sale Agreement for the
benefit of Certificateholders. As provided in the Mortgage Loan Sale Agreement,
if any Transferor substitutes for a Mortgage Loan for which there is a breach of
any representations and warranties in the related Transfer Agreement which
adversely and materially affects the value of such Mortgage Loan and such
substitute mortgage loan is not a Qualifying Substitute Mortgage Loan, under the
terms of the Mortgage Loan Sale Agreement, Lehman Brothers Holdings will, in
exchange for such substitute Mortgage Loan, (i) provide the applicable Purchase
Price for the affected Mortgage Loan or (ii) within two years of the Closing
Date, substitute such affected Mortgage Loan with a Qualifying Substitute
Mortgage Loan.

         Section 2.05. Repurchase, Purchase or Substitution of Mortgage Loans.

         (a) With respect to any Mortgage Loan repurchased by the Depositor
pursuant to this Agreement, by Lehman Brothers Holdings pursuant to the
applicable Mortgage Loan Sale Agreement or by any Transferor pursuant to the
applicable Transfer Agreement, the principal portion of the funds received by
the Master Servicer in respect of such repurchase of a Mortgage Loan will be
considered a Principal Prepayment and shall be deposited in the Collection
Account pursuant to Section 4.01. The Trustee, upon receipt of the full amount
of the Purchase Price for a Deleted Mortgage Loan, or upon receipt of the
Mortgage File for a Qualifying Substitute Mortgage Loan substituted for a
Deleted Mortgage Loan (and any applicable Substitution Amount), shall cause the
applicable Custodian to release and reassign to the Depositor, Lehman Brothers
Holdings or the applicable Transferor, as applicable, the related Mortgage File
for the Deleted Mortgage Loan and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, representation or
warranty, as shall be necessary to vest in such party or its designee or
assignee title to any Deleted Mortgage Loan released pursuant hereto, free and
clear of all security interests, liens and other encumbrances created by this
Agreement, which instruments shall be prepared by the Trustee (or its
custodian), and the Trustee shall have no further responsibility with respect to
the Mortgage File relating to such Deleted Mortgage Loan.

                                       46
<PAGE>

         (b) With respect to each Qualifying Substitute Mortgage Loan to be
delivered to the Trustee (or its applicable Custodian) pursuant to the terms of
this Article II in exchange for a Deleted Mortgage Loan: (i) the Depositor, the
applicable Transferor, or Lehman Brothers Holdings, as applicable, must deliver
to the Trustee (or its custodian) the Mortgage File for the Qualifying
Substitute Mortgage Loan containing the documents set forth in Section 2.01(b)
along with a written certification certifying as to the delivery of such
Mortgage File and containing the granting language set forth in Section 2.01(a);
and (ii) the Depositor will be deemed to have made, with respect to such
Qualified Substitute Mortgage Loan, each of the representations and warranties
made by it with respect to the related Deleted Mortgage Loan. As soon as
practicable after the delivery of any Qualifying Substitute Mortgage Loan
hereunder, (i) the Master Servicer, at the expense of the Depositor and at the
direction and with the cooperation of the applicable Servicer, shall (i) with
respect to a Qualifying Substitute Mortgage Loan that is a Non-MERS Mortgage
Loan, cause the Assignment of Mortgage to be recorded by such Servicer if
required pursuant to Section 2.01(c)(i), or (ii) with respect to a Qualifying
Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such
actions by such Servicer as are necessary to cause the Trustee to be clearly
identified as the owner of each such Mortgage Loan on the records of MERS if
required pursuant to Section 2.01(c)(ii).

         (c) Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Qualifying Substitute Mortgage
Loan for a Deleted Mortgage Loan shall be made unless the Trustee has received
an Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC Provisions. The Depositor shall cause the
Mortgage Loan Schedule to be amended in accordance with the terms of this
Agreement.

         Section 2.06. Grant Clause.

         It is intended that the conveyance of the Depositor's right, title and
interest in and to property constituting the Trust Fund pursuant to this
Agreement shall constitute, and shall be construed as, a sale of such property
and not a grant of a security interest to secure a loan. However, if such
conveyance is deemed to be in respect of a loan, it is intended that: (i) the
rights and obligations of the parties shall be established pursuant to the terms
of this Agreement; (ii) the Depositor hereby grants to the Trustee for the
benefit of the Holders of the Certificates a first priority security interest in
all of the Depositor's right, title and interest in, to and under, whether now
owned or hereafter acquired, the Trust Fund and all proceeds of any and all
property constituting the Trust Fund to secure payment of the Certificates; and
(iii) this Agreement shall constitute a security agreement under applicable law.
If such conveyance is deemed to be in respect of a loan and the Trust created by
this Agreement terminates prior to the satisfaction of the claims of any Person
holding any Certificate, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent
for the benefit of such Person, and all proceeds shall be distributed as herein
provided.

                                       47
<PAGE>

                                  ARTICLE III

                                THE CERTIFICATES

         Section 3.01. The Certificates.

         (a) The Certificates shall be issuable in registered form only and
shall be securities governed by Article 8 of the New York Uniform Commercial
Code. The Book-Entry Certificates will be evidenced by one or more certificates,
beneficial ownership of which will be held in the dollar denominations in
Certificate Principal Amount or Notional Principal Amount, as applicable, or in
the Percentage Interests, specified herein. Each Class of Book-Entry
Certificates shall be issued in the minimum denominations in Certificate
Principal Amount (or Notional Amount) or Percentage Interest specified in the
Preliminary Statement hereto and in integral multiples of $1 or 5% (in the case
of Certificates issued in Percentage Interests) in excess thereof. Each Class of
Non-Book Entry Certificates other than the Residual Certificate shall be issued
in definitive, fully registered form in the minimum denominations in Certificate
Principal Amount (or Notional Amount) specified in the Preliminary Statement
hereto and in integral multiples of $1 in excess thereof. The Residual
Certificate shall be issued as a single Certificate and maintained in
definitive, fully registered form in a minimum denomination equal to 100% of the
Percentage Interest of such Class. The Certificates may be issued in the form of
typewritten certificates. One Certificate of each Class of Certificates other
than any Class of Residual Certificates may be issued in any denomination in
excess of the minimum denomination.

         (b) The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Each Certificate shall, on
original issue, be authenticated by the Authenticating Agent upon the order of
the Depositor upon receipt by the Trustee of the Mortgage Files described in
Section 2.01. No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such Certificate
a certificate of authentication substantially in the form provided for herein,
executed by an authorized officer of the Trustee or the Authenticating Agent, if
any, by manual signature, and such certification upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. At any time and from time to time after the execution
and delivery of this Agreement, the Depositor may deliver Certificates executed
by the Depositor to the Trustee or the Authenticating Agent for authentication
and the Trustee or the Authenticating Agent shall authenticate and deliver such
Certificates as in this Agreement provided and not otherwise.

         (c) The Class B4, Class B5 or Class B6 Certificates offered and sold in
reliance on the exemption from registration under Rule 144A shall be issued
initially in the form of one or more permanent global Certificates in
definitive, fully registered form without interest coupons with the applicable
legends set forth in Exhibit A added to the forms of such Certificates (each, a
"Restricted Global Security"), which shall be deposited on behalf of the
subscribers for such Certificates represented thereby with the Trustee, as
custodian for DTC and registered in the name of a nominee of DTC, duly executed
and authenticated by the Trustee as hereinafter provided. The aggregate
principal amounts of the Restricted Global Securities may from time to time be
increased or decreased by adjustments made on the records of the Trustee or DTC
or its nominee, as the case may be, as hereinafter provided.

                                       48
<PAGE>

         The Class B4, Class B5 or Class B6 Certificates sold in offshore
transactions in reliance on Regulation S shall be issued initially in the form
of one or more permanent global Certificates in definitive, fully registered
form without interest coupons with the applicable legends set forth in Exhibit A
hereto added to the forms of such Certificates (each, a "Regulation S Global
Security"), which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC, duly executed and authenticated by
the Trustee as hereinafter provided. The aggregate principal amounts of the
Regulation S Global Securities may from time to time be increased or decreased
by adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

         (d) The Class B4, Class B5, or Class B6 Certificates sold to an
"accredited investor" under Rule 501(a)(1), (2), (3) or (7) under the Act shall
be issued initially in the form of one or more Definitive Certificates.

         Section 3.02. Registration.

         The Securities Administrator is hereby appointed, and hereby accepts
its appointment as, the initial Certificate Registrar in respect of the
Certificates and shall maintain books for the registration and for the transfer
of Certificates (the "Certificate Register"). A registration book shall be
maintained for the Certificates collectively. The Certificate Registrar may
resign or be discharged or removed and a new successor may be appointed in
accordance with the procedures and requirements set forth in Sections 6.06 and
6.07 hereof with respect to the resignation, discharge or removal of the Trustee
and the appointment of a successor trustee. The Certificate Registrar may
appoint, by a written instrument delivered to the Holders and the Master
Servicer, any bank or trust company to act as co-registrar under such conditions
as the Certificate Registrar may prescribe; provided, however, that the
Certificate Registrar shall not be relieved of any of its duties or
responsibilities hereunder by reason of such appointment.

         Section 3.03. Transfer and Exchange of Certificates.

         (a) A Certificate (other than Book-Entry Certificates which shall be
subject to Section 3.09 hereof) may be transferred by the Holder thereof only
upon presentation and surrender of such Certificate at the office of the
Certificate Registrar duly endorsed or accompanied by an assignment duly
executed by such Holder or his duly authorized attorney in such form as shall be
satisfactory to the Certificate Registrar. Upon the transfer of any Certificate
in accordance with the preceding sentence, the Trustee shall execute, and the
Trustee or any Authenticating Agent shall authenticate and deliver to the
transferee, one or more new Certificates of the same Class and evidencing, in
the aggregate, the same aggregate Certificate Principal Amount as the
Certificate being transferred. No service charge shall be made to a
Certificateholder for any registration of transfer of Certificates, but the
Certificate Registrar may require payment of a sum sufficient to cover any tax
or governmental charge that may be imposed in connection with any registration
of transfer of Certificates.

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<PAGE>

         (b) A Certificate may be exchanged by the Holder thereof for any number
of new Certificates of the same Class, in authorized denominations, representing
in the aggregate the same Certificate Principal Amount as the Certificate
surrendered, upon surrender of the Certificate to be exchanged at the office of
the Certificate Registrar duly endorsed or accompanied by a written instrument
of transfer duly executed by such Holder or his duly authorized attorney in such
form as is satisfactory to the Certificate Registrar. Certificates delivered
upon any such exchange will evidence the same obligations, and will be entitled
to the same rights and privileges, as the Certificates surrendered. No service
charge shall be made to a Certificateholder for any exchange of Certificates,
but the Certificate Registrar may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any
exchange of Certificates. Whenever any Certificates are so surrendered for
exchange, the Trustee shall execute, and the Trustee or the Authenticating Agent
shall authenticate, date and deliver the Certificates which the
Certificateholder making the exchange is entitled to receive.

         (c) By acceptance of a Restricted Certificate or a Regulation S Global
Security, whether upon original issuance or subsequent transfer, each Holder of
such a Certificate acknowledges the restrictions on the transfer of such
Certificate set forth thereon and agrees that it will transfer such a
Certificate only as provided herein. In addition, each Holder of a Regulation S
Global Security shall be deemed to have represented and warranted to the
Trustee, the Certificate Registrar and any of their respective successors that:
(i) such Person is not a U.S. person within the meaning of Regulation S and was,
at the time the buy order was originated, outside the United States and (ii)
such Person understands that such Certificates have not been registered under
the Securities Act of 1933, as amended (the "Act"), and that (x) until the
expiration of the 40-day distribution compliance period (within the meaning of
Regulation S), no offer, sale, pledge or other transfer of such Certificates or
any interest therein shall be made in the United States or to or for the account
or benefit of a U.S. person (each as defined in Regulation S), (y) if in the
future it decides to offer, resell, pledge or otherwise transfer such
Certificates, such Certificates may be offered, resold, pledged or otherwise
transferred only (A) to a person which the seller reasonably believes is a
"qualified institutional buyer" (a "QIB") as defined in Rule 144A under the Act,
that is purchasing such Certificates for its own account or for the account of a
qualified institutional buyer to which notice is given that the transfer is
being made in reliance on Rule 144A or (B) in an offshore transaction (as
defined in Regulation S) in compliance with the provisions of Regulation S, in
each case in compliance with the requirements of this Agreement; and it will
notify such transferee of the transfer restrictions specified in this Section.

         The following restrictions shall apply with respect to the transfer and
registration of transfer of a Restricted Certificate to a transferee that takes
delivery in the form of a Definitive Certificate:

             (i)      The Certificate Registrar shall register the transfer of a
         Restricted Certificate if the requested transfer is (x) to the
         Depositor or the Placement Agent, an affiliate (as defined in Rule 405
         under the Act) of the Depositor or the Placement Agent or (y) being
         made to a QIB by a transferor that has provided the Trustee with a
         certificate in the form of Exhibit F hereto; and

             (ii)     The Certificate Registrar shall register the transfer of a
         Restricted Certificate if the requested transfer is being made to an
         "accredited investor" under Rule 501(a)(1), (2), (3) or (7) under the
         Act by a transferor who furnishes to the Trustee a letter of the
         transferee substantially in the form of Exhibit G hereto.

                                       50
<PAGE>

         (d) No transfer of an ERISA-Restricted Certificate in the form of a
Definitive Certificate shall be made to any Person unless the Trustee and the
Certificate Registrar have received (A) a certificate substantially in the form
of Exhibit H (or Exhibit D-1 in the case of the Class R Certificate) hereto from
such transferee, or (B) an Opinion of Counsel satisfactory to the Trustee and
the Depositor to the effect that the purchase and holding of such a Certificate
will not constitute or result in the assets of the Trust Fund being deemed to be
"plan assets" subject to the prohibited transaction provisions of ERISA, Section
4975 of the Code or substantially similar rules under state, local or other
federal law ("Similar Law") and will not subject the Trustee, the Master
Servicer, the Securities Administrator, any Servicer or the Depositor to any
obligation in addition to those undertaken in the Agreement; provided, however,
that the Trustee and the Certificate Registrar will not require such certificate
or opinion in the event that, as a result of a change of law or otherwise,
counsel satisfactory to the Trustee and the Certificate Registrar has rendered
an Opinion of Counsel to the effect that the purchase and holding of an
ERISA-Restricted Certificate (other than the Class R Certificate) by a Plan or a
Person that is purchasing or holding such a Certificate with the assets of a
Plan will not constitute or result in a prohibited transaction under ERISA,
Section 4975 of the Code or Similar Law. Each transferee of an ERISA-Restricted
Certificate that is a Book Entry Certificate shall be deemed to have made the
representations set forth in Exhibit H. The preparation and delivery of the
certificate and opinions referred to above shall not be an expense of the Trust
Fund, the Trustee, the Securities Administrator or the Depositor.
Notwithstanding the foregoing, no opinion or certificate shall be required for
the initial issuance of the ERISA-Restricted Certificates.

         Neither the Trustee nor the Certificate Registrar shall have any
obligations to monitor transfers of Book-Entry Certificates that are
ERISA-Restricted Certificates or Restricted Global Securities or any liability
for transfers of such Certificates in violation of the transfer restrictions.

         Notwithstanding anything to the contrary herein, any purported transfer
of an ERISA-Restricted Certificate in the form of a Definitive Certificate to or
on behalf of an employee benefit plan subject to Title I of ERISA, a plan
subject to Section 4975 of the Code or a plan subject to Similar Law without the
delivery to the Trustee and the Certificate Registrar of a certificate
substantially in the form of Exhibit H (or Exhibit D-1 in the case of the Class
R Certificate) or an Opinion of Counsel satisfactory to the Trustee as described
above shall be void and of no effect. Neither the Trustee nor the Certificate
Registrar shall have any liability to any Person for any registration of
transfer of any ERISA-Restricted Certificate that is in fact not permitted by
this Section 3.03(d) or for making any payments due on such Certificate to the
Holder thereof or taking any other action with respect to such Holder under the
provisions of this Agreement so long as the transfer was registered in
accordance with the foregoing requirements. The Trustee and the Certificate
Registrar shall be entitled, but not obligated, to recover from any Holder of
any ERISA-Restricted Certificate that was in fact an employee benefit plan
subject to Title I of ERISA, a plan subject to Section 4975 of the Code or a
plan subject to Similar Law, or a Person acting on behalf of any such plan at
the time it became a Holder or, at such subsequent time as it became such a plan
or Person acting on behalf of such a plan, all payments made on such
ERISA-Restricted Certificate at and after either such time. Any such payments so
recovered by the Trustee or the Certificate Registrar shall be paid and
delivered by the Trustee or the Certificate Registrar to the last preceding
Holder of such Certificate that is not such a plan or Person acting on behalf of
a plan.

                                       51
<PAGE>

         (e) As a condition of the registration of transfer or exchange of any
Certificate, the Certificate Registrar may require the certified taxpayer
identification number of the owner of the Certificate and the payment of a sum
sufficient to cover any tax or other governmental charge imposed in connection
therewith; provided, however, that the Certificate Registrar shall have no
obligation to require such payment or to determine whether or not any such tax
or charge may be applicable. No service charge shall be made to the
Certificateholder for any registration, transfer or exchange of Certificate.

         (f) Notwithstanding anything to the contrary contained herein, no
Residual Certificate may be owned, pledged or transferred, directly or
indirectly, by or to (i) a Disqualified Organization or (ii) an individual,
corporation or partnership or other person unless, in the case of clause (ii),
such person is (A) not a Non-U.S. Person or (B) is a Non-U.S. Person that holds
a Residual Certificate in connection with the conduct of a trade or business
within the United States and has furnished the transferor and the Trustee with
an effective Internal Revenue Service Form W-8ECI or successor form at the time
and in the manner required by the Code (any such person who is not covered by
clause (A) or (B) above is referred to herein as a "Non-permitted Foreign
Holder").

         Prior to and as a condition of the registration of any transfer, sale
or other disposition of a Residual Certificate, the proposed transferee shall
deliver to the Trustee or the Certificate Registrar an affidavit in
substantially the form attached hereto as Exhibit D-1 representing and
warranting, among other things, that such transferee is neither a Disqualified
Organization, an agent or nominee acting on behalf of a Disqualified
Organization, nor a Non-permitted Foreign Holder (any such transferee, a
"Permitted Transferee"), and the proposed transferor shall deliver to the
Trustee an affidavit in substantially the form attached hereto as Exhibit D-2.
In addition, the Trustee or the Certificate Registrar may (but shall have no
obligation to) require, prior to and as a condition of any such transfer, the
delivery by the proposed transferee of an Opinion of Counsel, addressed to the
Depositor, the Trustee and the Certificate Registrar satisfactory in form and
substance to the Depositor, that such proposed transferee or, if the proposed
transferee is an agent or nominee, the proposed beneficial owner, is not a
Disqualified Organization, agent or nominee thereof, or Non-permitted Foreign
Holder. Notwithstanding the registration in the Certificate Register of any
transfer, sale, or other disposition of a Residual Certificate to a Disqualified
Organization, an agent or nominee thereof, or Non-permitted Foreign Holder, such
registration shall be deemed to be of no legal force or effect whatsoever and
such Disqualified Organization, agent or nominee thereof, or Non-permitted
Foreign Holder shall not be deemed to be a Certificateholder for any purpose
hereunder, including, but not limited to, the receipt of distributions on such
Residual Certificate. Neither the Trustee nor the Certificate Registrar shall be
under any liability to any person for any registration or transfer of a Residual
Certificate to a Disqualified Organization, agent or nominee thereof, or
Non-permitted Foreign Holder or for the maturity of any payments due on such
Residual Certificate to the Holder thereof or for taking any other action with
respect to such Holder under the provisions of the Agreement, so long as the
transfer was effected in accordance with this Section 3.03(f), unless the
Trustee or the Certificate Registrar shall have actual knowledge at the time of
such transfer or the time of such payment or other action that the transferee is
a Disqualified Organization, agent or nominee thereof, or Non-permitted Foreign

                                       52
<PAGE>

Holder. The Trustee or the Certificate Registrar shall be entitled to recover
from any Holder of a Residual Certificate that was a Disqualified Organization,
agent or nominee thereof, or Non-permitted Foreign Holder at the time it became
a Holder or any subsequent time it became a Disqualified Organization, agent or
nominee thereof, or Non-permitted Foreign Holder, all payments made on such
Residual Certificate at and after either such times (and all costs and expenses,
including but not limited to attorneys' fees, incurred in connection therewith).
Any payment (not including any such costs and expenses) so recovered by the
Trustee or the Certificate Registrar shall be paid and delivered to the last
preceding Holder of such Residual Certificate.

         If any purported transferee shall become a registered Holder of a
Residual Certificate in violation of the provisions of this Section 3.03(f),
then upon receipt of written notice to the Trustee or the Certificate Registrar
that the registration of transfer of such Residual Certificate was not in fact
permitted by this Section 3.03(f), the last preceding Permitted Transferee shall
be restored to all rights as Holder thereof retroactive to the date of such
registration of transfer of such Residual Certificate. Neither the Trustee nor
the Certificate Registrar shall be under any liability to any Person for any
registration of transfer of a Residual Certificate that is in fact not permitted
by this Section 3.03(f), for making any payment due on such Certificate to the
registered Holder thereof or for taking any other action with respect to such
Holder under the provisions of this Agreement so long as the transfer was
registered upon receipt of the affidavit described in the preceding paragraph of
this Section 3.03(f).

         (g) Each Holder of a Residual Certificate, by such Holder's acceptance
thereof, shall be deemed for all purposes to have consented to the provisions of
this section.

         (h) Notwithstanding any provision to the contrary herein, so long as a
Global Security representing any of the Class B4, Class B5 or Class B6
Certificates remains outstanding and is held by or on behalf of DTC, transfers
of a Global Security representing any such Certificates, in whole or in part,
shall only be made in accordance with Section 3.01 and this Section 3.03(h).

                 (A) Subject to clauses (B) and (C) of this Section 3.03(h),
             transfers of a Global Security representing any of the Class B4,
             Class B5 or Class B6 Certificates shall be limited to transfers of
             such Global Security, in whole or in part, to nominees of DTC or to
             a successor of DTC or such successor's nominee.

                 (B) Restricted Global Security to Regulation S Global Security.
             If a holder of a beneficial interest in a Restricted Global
             Security deposited with or on behalf of DTC wishes at any time to
             exchange its interest in such Restricted Global Security for an
             interest in a Regulation S Global Security, or to transfer its
             interest in such Restricted Global Security to a Person who wishes
             to take delivery thereof in the form of an interest in a Regulation
             S Global Security, such holder, provided such holder is not a U.S.
             person, may, subject to the rules and procedures of DTC, exchange
             or cause the exchange of such interest for an equivalent beneficial
             interest in the Regulation S Global Security. Upon receipt by the
             Certificate Registrar, of (I) instructions from DTC directing the

                                       53
<PAGE>

             Certificate Registrar, to be credited a beneficial interest in a
             Regulation S Global Security in an amount equal to the beneficial
             interest in such Restricted Global Security to be exchanged but not
             less than the minimum denomination applicable to such holder's
             Certificates held through a Regulation S Global Security, (II) a
             written order given in accordance with DTC's procedures containing
             information regarding the participant account of DTC and, in the
             case of a transfer pursuant to and in accordance with Regulation S,
             the Euroclear or Clearstream account to be credited with such
             increase and (III) a certificate in the form of Exhibit A hereto
             given by the holder of such beneficial interest stating that the
             exchange or transfer of such interest has been made in compliance
             with the transfer restrictions applicable to the Global Securities,
             including that the holder is not a U.S. person, and pursuant to and
             in accordance with Regulation S, the Certificate Registrar, shall
             reduce the principal amount of the Restricted Global Security and
             increase the principal amount of the Regulation S Global Security
             by the aggregate principal amount of the beneficial interest in the
             Restricted Global Security to be exchanged, and shall instruct
             Euroclear or Clearstream, as applicable, concurrently with such
             reduction, to credit or cause to be credited to the account of the
             Person specified in such instructions a beneficial interest in the
             Regulation S Global Security equal to the reduction in the
             principal amount of the Restricted Global Security.

                 (C) Regulation S Global Security to Restricted Global Security.
             If a holder of a beneficial interest in a Regulation S Global
             Security deposited with or on behalf of DTC wishes at any time to
             transfer its interest in such Regulation S Global Security to a
             Person who wishes to take delivery thereof in the form of an
             interest in a Restricted Global Security, such holder may, subject
             to the rules and procedures DTC, exchange or cause the exchange of
             such interest for an equivalent beneficial interest in a Restricted
             Global Security. Upon receipt by the Certificate Registrar, of (I)
             instructions from DTC directing the Certificate Registrar, to cause
             to be credited a beneficial interest in a Restricted Global
             Security in an amount equal to the beneficial interest in such
             Regulation S Global Security to be exchanged but not less than the
             minimum denomination applicable to such holder's Certificates held
             through a Restricted Global Security, to be exchanged, such
             instructions to contain information regarding the participant
             account with DTC to be credited with such increase, and (II) a
             certificate in the form of Exhibit L-2 hereto given by the holder
             of such beneficial interest and stating, among other things, that
             the Person transferring such interest in such Regulation S Global
             Security reasonably believes that the Person acquiring such
             interest in a Restricted Global Security is a QIB, is obtaining
             such beneficial interest 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 jurisdiction, then
             the Certificate Registrar, will reduce the principal amount of the
             Regulation S Global Security and increase the principal amount of
             the Restricted Global Security by the aggregate principal amount of

                                       54
<PAGE>

             the beneficial interest in the Regulation S Global Security to be
             transferred and the Certificate Registrar, shall instruct DTC,
             concurrently with such reduction, to credit or cause to be credited
             to the account of the Person specified in such instructions a
             beneficial interest in the Restricted Global Security equal to the
             reduction in the principal amount of the Regulation S Global
             Security.

                 (D) Other Exchanges. In the event that a Global Security is
             exchanged for Certificates in definitive registered form without
             interest coupons, pursuant to Section 3.09(c) hereof, such
             Certificates may be exchanged for one another only in accordance
             with such procedures as are substantially consistent with the
             provisions above (including certification requirements intended to
             insure that such transfers comply with Rule 144A, comply with Rule
             501(a)(1), (2), (3) or (7) or are to non-U.S. persons in compliance
             with Regulation S under the Act, as the case may be), and as may be
             from time to time adopted by the Certificate Registrar.

                 (E) Restrictions on U.S. Transfers. Transfers of interests in
             the Regulation S Global Security to U.S. persons (as defined in
             Regulation S) shall be limited to transfers made pursuant to the
             provisions of Section 3.03(h)(C).

         Section 3.04. Cancellation of Certificates.

         Any Certificate surrendered for registration of transfer or exchange
shall be cancelled and retained in accordance with normal retention policies
with respect to cancelled certificates maintained by the Trustee or the
Certificate Registrar.

                                       55
<PAGE>

         Section 3.05. Replacement of Certificates.

         If (i) any Certificate is mutilated and is surrendered to the Trustee
or any Authenticating Agent or (ii) the Trustee or any Authenticating Agent
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Trustee or the Authenticating Agent
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Depositor and any Authenticating
Agent that such destroyed, lost or stolen Certificate has been acquired by a
bona fide purchaser, the Trustee shall execute and the Trustee or any
Authenticating Agent shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor and Certificate Principal Amount. Upon the issuance of any new
Certificate under this Section 3.05, the Trustee and Authenticating Agent may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee or the Authenticating Agent) connected
therewith. Any replacement Certificate issued pursuant to this Section 3.05
shall constitute complete and indefeasible evidence of ownership in the
applicable Trust Fund, as if originally issued, whether or not the lost, stolen
or destroyed Certificate shall be found at any time.

         Section 3.06. Persons Deemed Owners.

         Subject to the provisions of Section 3.09 with respect to Book-Entry
Certificates, the Depositor, the Securities Administrator, the Master Servicer,
the Trustee, the Certificate Registrar and any agent of any of them may treat
the Person in whose name any Certificate is registered upon the books of the
Certificate Registrar as the owner of such Certificate for the purpose of
receiving distributions pursuant to Sections 5.01 and 5.02 and for all other
purposes whatsoever, and neither the Depositor, the Securities Administrator,
the Master Servicer, the Trustee, the Certificate Registrar nor any agent of any
of them shall be affected by notice to the contrary.

         Section 3.07. Temporary Certificates.

         (a) Pending the preparation of definitive Certificates, upon the order
of the Depositor, the Trustee shall execute and the Authenticating Agent shall
authenticate and deliver temporary Certificates that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Certificates in lieu of which they
are issued and with such variations as the authorized officers executing such
Certificates may determine, as evidenced by their execution of such
Certificates.

         (b) If temporary Certificates are issued, the Depositor will cause
definitive Certificates to be prepared without unreasonable delay. After the
preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the office or agency of the Certificate Registrar without charge
to the Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Trustee shall execute and the Authenticating Agent shall
authenticate and deliver in exchange therefor a like aggregate Certificate
Principal Amount of definitive Certificates of the same Class in the authorized
denominations. Until so exchanged, the temporary Certificates shall in all
respects be entitled to the same benefits under this Agreement as definitive
Certificates of the same Class.

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<PAGE>

         Section 3.08. Appointment of Paying Agent.

         The Trustee may appoint a Paying Agent (which may be the Trustee) for
the purpose of making distributions to Certificateholders hereunder. The
Securities Administrator is hereby appointed, and hereby accepts its appointment
as Paying Agent in respect of the Certificates. The Trustee shall cause such
Paying Agent (if other than the Trustee) to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee that such
Paying Agent will hold all sums held by it for the payment to Certificateholders
in an Eligible Account in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be paid to the Certificateholders. All
funds remitted by the Trustee to any such Paying Agent for the purpose of making
distributions shall be paid to Certificateholders on each Distribution Date and
any amounts not so paid shall be returned on such Distribution Date to the
Trustee. If the Paying Agent is not the Trustee, the Trustee shall cause to be
remitted to the Paying Agent on or before the Business Day prior to each
Distribution Date, by wire transfer in immediately available funds, the funds to
be distributed on such Distribution Date. Any Paying Agent shall be either a
bank or trust company or otherwise authorized under law to exercise corporate
trust powers.

         Section 3.09. Book-Entry Certificates.

         (a) Each Class of Book-Entry Certificates, upon original issuance,
shall be issued in the form of one or more typewritten Certificates representing
the Book-Entry Certificates, to be delivered to The Depository Trust Company,
the initial Clearing Agency, by, or on behalf of, the Depositor. The Book-Entry
Certificates shall initially be registered on the Certificate Register in the
name of the nominee of the Clearing Agency, and no Certificate Owner will
receive a definitive certificate representing such Certificate Owner's interest
in the Book-Entry Certificates, except as provided in Section 3.09(c). Unless
Definitive Certificates have been issued to Certificate Owners of Book-Entry
Certificates pursuant to Section 3.09(c):

             (i)      the provisions of this Section 3.09 shall be in full force
         and effect;

             (ii)     the Depositor, the Securities Administrator, the Master
         Servicer, the Paying Agent, the Certificate Registrar and the Trustee
         may deal with the Clearing Agency for all purposes (including the
         making of distributions on the Book-Entry Certificates) as the
         authorized representatives of the Certificate Owners and the Clearing
         Agency shall be responsible for crediting the amount of such
         distributions to the accounts of such Persons entitled thereto, in
         accordance with the Clearing Agency's normal procedures;

             (iii)    to the extent that the provisions of this Section 3.09
         conflict with any other provisions of this Agreement, the provisions of
         this Section 3.09 shall control; and

                                       57
<PAGE>

             (iv)     the rights of Certificate Owners shall be exercised only
         through the Clearing Agency and the Clearing Agency Participants and
         shall be limited to those established by law and agreements between
         such Certificate Owners and the Clearing Agency and/or the Clearing
         Agency Participants. Unless and until Definitive Certificates are
         issued pursuant to Section 3.09(c), the initial Clearing Agency will
         make book-entry transfers among the Clearing Agency Participants and
         receive and transmit distributions of principal of and interest on the
         Book-Entry Certificates to such Clearing Agency Participants.

         (b) Whenever notice or other communication to the Certificateholders is
required under this Agreement, unless and until Definitive Certificates shall
have been issued to Certificate Owners pursuant to Section 3.09(c), the Trustee
shall give all such notices and communications specified herein to be given to
Holders of the Book-Entry Certificates to the Clearing Agency.

         (c) If (i) (A) the Depositor advises the Certificate Registrar in
writing that the Clearing Agency is no longer willing or able to discharge
properly its responsibilities with respect to the Book-Entry Certificates, and
(B) the Trustee or the Depositor is unable to locate a qualified successor, (ii)
the Depositor, at its option, advises the Trustee in writing that it elects to
terminate the book-entry system through the Clearing Agency or (iii) after the
occurrence of an Event of Default, Certificate Owners representing beneficial
interests aggregating not less than 50% of the Class Principal Amount of a Class
of Book-Entry Certificates identified as such to the Trustee by an Officer's
Certificate from the Clearing Agency advise the Trustee and the Clearing Agency
through the Clearing Agency Participants in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Certificate Owners of a Class of Book-Entry Certificates, the Trustee
shall notify or cause the Certificate Registrar to notify the Clearing Agency to
effect notification to all Certificate Owners, through the Clearing Agency, of
the occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners requesting the same. Upon surrender to the
Trustee of the Book-Entry Certificates by the Clearing Agency, accompanied by
registration instructions from the Clearing Agency for registration, the Trustee
shall issue the Definitive Certificates. Neither the Transferor nor the Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Certificates all references herein to
obligations imposed upon or to be performed by the Clearing Agency shall be
deemed to be imposed upon and performed by the Trustee, to the extent
applicable, with respect to such Definitive Certificates and the Trustee shall
recognize the holders of the Definitive Certificates as Certificateholders
hereunder.

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<PAGE>

                                   ARTICLE IV

                        ADMINISTRATION OF THE TRUST FUND

         Section 4.01. Collection Account.

         (a) On the Closing Date, the Master Servicer shall open and shall
thereafter maintain a segregated account held in trust (the "Collection
Account"), entitled "Aurora Loan Services Inc., as Master Servicer, in trust for
the benefit of the Holders of Structured Asset Securities Corporation Mortgage
Pass-Through Certificates, Series 2003-22A." The Collection Account shall relate
solely to the Certificates issued by the Trust Fund hereunder, and funds in such
Collection Account shall not be commingled with any other monies.

         (b) The Collection Account shall be an Eligible Account. If an existing
Collection Account ceases to be an Eligible Account, the Master Servicer shall
establish a new Collection Account that is an Eligible Account within 30 days
and transfer all funds on deposit in such existing Collection Account into such
new Collection Account.

         (c) The Master Servicer shall give to the Trustee and the Securities
Administrator prior written notice of the name and address of the depository
institution at which the Collection Account is maintained and the account number
of such Collection Account. No later than 2:00 p.m. New York City time on each
Deposit Date, the entire amount on deposit in the Collection Account (subject to
permitted withdrawals set forth in Section 4.02), not including any amounts
which are to be excluded from the Available Distribution Amount for such
Distribution Date pursuant to clauses (A) through (G) of paragraph (i) of the
definition thereof (other than any amounts due or reimbursable to the Trustee or
the Securities Administrator pursuant to this Agreement), shall be remitted to
the Securities Administrator for deposit into the Certificate Account by wire
transfer in immediately available funds. The Master Servicer, at its option, may
choose to make daily remittances from the Collection Account to the Securities
Administrator for deposit into the Certificate Account.

         (d) The Master Servicer shall deposit or cause to be deposited into the
Collection Account, no later than the Business Day following the Closing Date,
any amounts representing Scheduled Payments on the Mortgage Loans due after the
Cut-off Date and received by the Master Servicer on or before the Closing Date.
Thereafter, the Master Servicer shall deposit or cause to be deposited in the
Collection Account on the applicable Remittance Date the following amounts
received or payments made by it (other than in respect of principal of and
interest on the Mortgage Loans due on or before the Cut-Off Date):

             (i)      all payments on account of principal, including Principal
         Prepayments and late collections, on the Mortgage Loans;

             (ii)     all payments on account of interest on the Mortgage Loans
         (other than payments due prior to the Cut-off Date), net of the
         applicable Servicing Fee and Master Servicing Fee with respect to each
         such Mortgage Loan, but only to the extent of the amount permitted to
         be withdrawn or withheld from the Collection Account in accordance with
         Sections 5.04 and 9.21;

             (iii)    any unscheduled payment or other recovery with respect to
         a Mortgage Loan not otherwise specified in this paragraph (d),
         including all Net Liquidation Proceeds with respect to the Mortgage
         Loans and REO Property, and all amounts received in connection with the
         operation of any REO Property, net of any unpaid Servicing Fees and
         Master Servicing Fees with respect to such Mortgage Loans, but only to
         the extent of the amount permitted to be withdrawn or withheld from the
         Collection Account in accordance with Sections 5.04 and 9.21; provided
         that if the applicable Servicer is also the Retained Interest Holder
         with respect to any Mortgage Loan, payments on account of interest on
         the Mortgage Loans as to which such Servicer is the Retained Interest
         Holder may also be made net of the related Retained Interest with
         respect to each such Mortgage Loan.

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             (iv)     all Insurance Proceeds;

             (v)      all Advances made by the Master Servicer or the applicable
         Servicer pursuant to Section 5.04 or the applicable Servicing
         Agreement; and

             (vi)     all proceeds of any Mortgage Loan purchased by any Person.

         (e) Funds in the Collection Account may be invested in Eligible
Investments (selected by and at the written direction of the Master Servicer)
which shall mature not later than the earlier of (a) the Deposit Date (except
that if such Eligible Investment is an obligation of the Trustee or the Paying
Agent, if other than the Trustee, and such Collection Account is maintained with
the Trustee or the Paying Agent, if other than the Trustee, then such Eligible
Investment shall mature not later than such applicable Distribution Date) or (b)
the day on which the funds in such Collection Account are required to be
remitted to the Securities Administrator for deposit into the Certificate
Account, and any such Eligible Investment shall not be sold or disposed of prior
to its maturity. All such Eligible Investments shall be made in the name of the
Master Servicer in trust for the benefit of the Trustee and Holders of
Structured Asset Securities Corporation, Mortgage Pass-Through Certificates,
Series 2003-22A. All income and gain realized from any such investment shall be
for the benefit of the Master Servicer, while such Collection Account is
maintained by the Master Servicer, and shall be subject to its withdrawal or
order from time to time and shall not be part of the Trust Fund. The amount of
any losses incurred in respect of any such investments shall be deposited in
such Collection Account by the Master Servicer out of its own funds, without any
right of reimbursement therefor, immediately as realized. The foregoing
requirements for deposit in the Collection Account are exclusive, it being
understood and agreed that, without limiting the generality of the foregoing,
payments of interest on funds in the Collection Account and payments in the
nature of late payment charges or assumption fees need not be deposited by the
Master Servicer in the Collection Account and may be retained by the Master
Servicer or the applicable Servicer as additional servicing compensation. If the
Master Servicer deposits in the Collection Account any amount not required to be
deposited therein, it may at any time withdraw such amount from such Collection
Account.

         Section 4.02. Application of Funds in the Collection Account.

         The Master Servicer may, from time to time, make, or cause to be made,
withdrawals from the Collection Account for the following purposes:

             (i)      to reimburse itself or any Servicer for Advances made by
         it or by such Servicer pursuant to Section 5.04 or the applicable
         Servicing Agreement; the Master Servicer's right to reimburse itself
         pursuant to this subclause (i) is limited to amounts received on or in
         respect of particular Mortgage Loans (including, for this purpose,
         Liquidation Proceeds and amounts representing Insurance Proceeds with
         respect to the property subject to the related Mortgage) which
         represent late recoveries (net of the applicable Servicing Fee and the
         Master Servicing Fee) of payments of principal or interest respecting
         which any such Advance was made, it being understood, in the case of
         any such reimbursement, that the Master Servicer's or Servicer's right
         thereto shall be prior to the rights of the Certificateholders;

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             (ii)     to reimburse itself or any Servicer for any Servicing
         Advances made by it or by such Servicer that it or such Servicer
         determines in good faith will not be recoverable from amounts
         representing late recoveries of payments of principal or interest
         respecting the particular Mortgage Loan as to which such Servicing
         Advance was made or from Liquidation Proceeds or Insurance Proceeds
         with respect to such Mortgage Loan, it being understood, in the case of
         any such reimbursement, that such Master Servicer's or Servicer's right
         thereto shall be prior to the rights of the Certificateholders;

             (iii)    to reimburse itself or any Servicer from Liquidation
         Proceeds for Liquidation Expenses and for amounts expended by it
         pursuant to Sections 9.20 and 9.22(a) or the applicable Servicing
         Agreement in good faith in connection with the restoration of damaged
         property and, to the extent that Liquidation Proceeds after such
         reimbursement exceed the unpaid principal balance of the related
         Mortgage Loan, together with accrued and unpaid interest thereon at the
         applicable Mortgage Rate less the applicable Servicing Fee and the
         Master Servicing Fee for such Mortgage Loan to the Due Date next
         succeeding the date of its receipt of such Liquidation Proceeds, to pay
         to itself out of such excess the amount of any unpaid assumption fees,
         late payment charges or other Mortgagor charges on the related Mortgage
         Loan and to retain any excess remaining thereafter as additional
         servicing compensation, it being understood, in the case of any such
         reimbursement or payment, that such Master Servicer's or Servicer's
         right thereto shall be prior to the rights of the Certificateholders;

             (iv)     in the event it has elected not to pay itself the Master
         Servicing Fee out of any Mortgagor payment on account of interest or
         other recovery with respect to a particular Mortgage Loan prior to the
         deposit of such Mortgagor payment or recovery in the Collection
         Account, to pay to itself the Master Servicing Fee for each
         Distribution Date and any unpaid Master Servicing Fees for prior
         Distribution Dates, as reduced pursuant to Section 5.05, from any
         Mortgagor payment as to interest or such other recovery with respect to
         that Mortgage Loan, as is permitted by this Agreement;

             (v)      to reimburse itself or any Servicer for expenses incurred
         by and recoverable by or reimbursable to it or such Servicer pursuant
         to Section 9.04, 9.06, 9.16 or 9.22(a) or pursuant to the applicable
         Servicing Agreement, and to reimburse itself for any expenses
         reimbursable to it pursuant to Section 10.01(c);

             (vi)     to pay to the applicable Person, with respect to each
         Mortgage Loan or REO Property acquired in respect thereof that has been
         repurchased by such Person pursuant to this Agreement, all amounts
         received thereon and not distributed on the date on which the related
         repurchase was effected;

             (vii)    subject to Section 5.04, to pay to itself income earned on
         the investment of funds deposited in the Collection Account;

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             (viii)   to make payments to the Securities Administrator for
         deposit into the Certificate Account in the amounts and in the manner
         provided for in Section 4.04;

             (ix)     to make distributions of the Retained Interest to the
         Retained Interest Holder on each Distribution Date (other than any
         Retained Interest not deposited into the Collection Account in
         accordance with Section 4.01(d)(iii));

             (x)      to make payment to itself, the Trustee, any Custodian, the
         Securities Administrator and others pursuant to any provision of this
         Agreement;

             (xi)     to withdraw funds deposited in error in the Collection
         Account;

             (xii)    to clear and terminate any Collection Account pursuant to
         Section 7.02;

             (xiii)   to reimburse a successor Master Servicer (solely in its
         capacity as successor Master Servicer, including the Securities
         Administrator), for any fee or advance occasioned by a termination of
         the Master Servicer, and the assumption of such duties by the
         Securities Administrator or a successor Master Servicer appointed by
         the Securities Administrator pursuant to Section 6.14, in each case to
         the extent not reimbursed by the terminated Master Servicer, it being
         understood, in the case of any such reimbursement or payment, that the
         right of the Master Servicer or the Securities Administrator thereto
         shall be prior to the rights of the Certificateholders; and

             (xiv)    to reimburse any Servicer for such amounts as are due
         thereto under the applicable Servicing Agreement and have not been
         retained by or paid to such Servicer to the extent provided in such
         Servicing Agreement.

         If provided in the related Servicing Agreement, each Servicer shall be
entitled to retain as additional servicing compensation any Prepayment Interest
Excess (to the extent not offset by Prepayment Interest Shortfalls). The
Servicers of the Participations shall be entitled to retain as additional
servicing compensation any Prepayment Penalty Amounts received with respect to
the Participations.

         In connection with withdrawals pursuant to subclauses (i), (iii), (iv)
and (vi) above, the Master Servicer's or Servicer's entitlement thereto is
limited to collections or other recoveries on the related Mortgage Loan. The
Master Servicer shall therefore keep and maintain a separate accounting for each
Mortgage Loan it master services for the purpose of justifying any withdrawal
from the Collection Account it maintains pursuant to such subclause (i), (iii),
(iv) and (vi).

         In the event that the Master Servicer fails on any Deposit Date to
remit to the Securities Administrator any amounts required to be so remitted to
the Securities Administrator pursuant to subclause (viii) by such date, the
Master Servicer shall pay the Securities Administrator, for the account of the
Securities Administrar, interest calculated at the "prime rate" (as published in
the "Money Rates" section of The Wall Street Journal) on such amounts not timely
remitted for the period from and including that Deposit Date to but not
including the related Distribution Date.

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         Section 4.03. Reports to Certificateholders.

         (a) On each Distribution Date, the Securities Administrator shall have
prepared (based solely on information provided by the Master Servicer) and shall
make available to the Trustee and each Certificateholder a written report
setting forth the following information, by Mortgage Pool and Certificate Group
(on the basis of Mortgage Loan level information obtained from the applicable
Servicer and the Master Servicer):

             (i)      the aggregate amount of the distribution to be made on
         such Distribution Date to the Holders of each Class of Certificates,
         other than any Class of Notional Certificates, to the extent
         applicable, allocable to principal on the Mortgage Loans, including
         Liquidation Proceeds and Insurance Proceeds, stating separately the
         amount attributable to scheduled principal payments and unscheduled
         payments in the nature of principal in each Mortgage Pool;

             (ii)     the aggregate amount of the distribution to be made on
         such Distribution Date to the Holders of each Class of Certificates
         allocable to interest, including any Accrual Amount added to the Class
         Principal Amount of any Class of Accrual Certificates;

             (iii)    the amount, if any, of any distribution to the Holders of
         a Residual Certificate;

             (iv)     (A) the aggregate amount of any Advances required to be
         made by or on behalf of the Master Servicer or any Servicer (or, if
         applicable, the Securities Administrator, solely in its capacity as
         successor Master Servicer) with respect to such Distribution Date, (B)
         the aggregate amount of such Advances actually made, and (C) the
         amount, if any, by which (A) above exceeds (B) above;

             (v)      the Aggregate Principal Balance of the Mortgage Loans and
         the Pool Balance of each Mortgage Pool for such Distribution Date,
         after giving effect to payments allocated to principal reported under
         clause (i) above;

             (vi)     the Class Principal Amount (or Class Notional Amount) of
         each Class of Certificates, to the extent applicable, as of such
         Distribution Date after giving effect to payments allocated to
         principal reported under clause (i) above (and to the addition of any
         Accrual Amount in the case of any Class of Accrual Certificates),
         separately identifying any reduction of any of the foregoing
         Certificate Principal Amounts due to Realized Losses:

             (vii)    any Realized Losses realized with respect to the Mortgage
         Loans (x) in the applicable Prepayment Period and (y) in the aggregate
         since the Cut-off Date, stating separately the amount of Special Hazard
         Losses, Fraud Losses and Bankruptcy Losses and the aggregate amount of
         such Realized Losses, and the remaining Special Hazard Loss Amount,
         Fraud Loss Amount and Bankruptcy Loss Amount;

             (viii)   the amount of the Master Servicing Fees, Servicing Fees
         and Securities Administrator Fee paid during the Due Period to which
         such distribution relates;

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<PAGE>

             (ix)     the number and aggregate Scheduled Principal Balance of
         Mortgage Loans, as reported to the Securities Administrator by the
         Master Servicer, (a) remaining outstanding (b) delinquent one month,
         (c) delinquent two months, (d) delinquent three or more months, and (e)
         as to which foreclosure proceedings have been commenced as of the close
         of business on the last Business Day of the calendar month immediately
         preceding the month in which such Distribution Date occurs;

             (x)      the deemed aggregate principal balance of all REO
         Properties as of the close of business on the last Business Day of the
         calendar month immediately preceding the month in which such
         Distribution Date occurs;

             (xi)     with respect to substitution of Mortgage Loans in the
         preceding calendar month, the aggregate Scheduled Principal Balance of
         all such Deleted Mortgage Loans, and of all Qualifying Substitute
         Mortgage Loans;

             (xii)    the aggregate outstanding Interest Shortfalls and Net
         Prepayment Interest Shortfalls, if any, for each Class of Certificates,
         after giving effect to the distribution made on such Distribution Date;

             (xiii)   the Certificate Interest Rate applicable to such
         Distribution Date with respect to each Class of Certificates; and

             (xiv)    if applicable, the amount of any shortfall (i.e., the
         difference between the aggregate amounts of principal and interest
         which Certificateholders would have received if there were sufficient
         available amounts in the Certificate Account and the amounts actually
         distributed).

         In the case of information furnished pursuant to subclauses (i), (ii)
and (viii) above, the amounts shall be expressed as a dollar amount per $1,000
of original principal amount of Certificates.

         The Securities Administrator shall make such report and additional loan
level information (and, at its option, any additional files containing the same
information in an alternative format) available each month to the Trustee,
Certificateholders and the Rating Agencies via the Securities Administrator's
internet website. The Trustee's internet website shall initially be located at
www.ctslink.com. Assistance in using the website can be obtained by calling the
Securities Administrator's customer service desk at (301) 815-6600. All parties
that are unable to use the website are entitled to have a paper copy mailed to
them via first class mail by calling the customer service desk and indicating
such. The Securities Administrator shall have the right to change the way such
statements are distributed in order to make such distribution more convenient
and/or more accessible to the above parties and the Securities Administrator
shall provide timely and adequate notification to all above parties regarding
any such changes.

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<PAGE>

         The foregoing information and reports shall be prepared and determined
by the Securities Administrator based solely on Mortgage Loan data provided to
the Securities Administrator by the Master Servicer no later than four Business
Days prior to the Distribution Date. In preparing or furnishing the Mortgage
Loan data to the Securities Administrator, the Master Servicer shall be entitled
to rely conclusively on the accuracy of the information or data regarding the
Mortgage Loans and the related REO Property that has been provided to the Master
Servicer by each Servicer, and the Master Servicer shall not be obligated to
verify, recompute, reconcile or recalculate any such information or data. The
Securities Administrator shall be entitled to conclusively rely on the Mortgage
Loan data provided by the Master Servicer and shall have no liability for any
errors in such Mortgage Loan data.

         On each Distribution Date, the Securities Administrator shall also
provide or make available to the Depositor a copy of the above described written
report, to the following address: Lehman Brothers Inc., 745 Seventh Avenue, 7th
Floor, New York, New York 10019, Attention: Michael Hitzmann, or to such other
address as the Depositor may designate.

         (b) Upon the reasonable advance written request of any
Certificateholder that is a savings and loan, bank or insurance company, which
request, if received by the Trustee or the Securities Administrator, will be
promptly forwarded to the Master Servicer, the Master Servicer shall provide, or
cause to be provided, (or, to the extent that such information or documentation
is not required to be provided by a Servicer under the applicable Servicing
Agreement, shall use reasonable efforts to obtain such information and
documentation from such Servicer, and provide) to such Certificateholder such
reports and access to information and documentation regarding the Mortgage Loans
as such Certificateholder may reasonably deem necessary to comply with
applicable regulations of the Office of Thrift Supervision or its successor or
other regulatory authorities with respect to investment in the Certificates;
provided, however, that the Master Servicer shall be entitled to be reimbursed
by such Certificateholder for such Master Servicer's actual expenses incurred in
providing such reports and access.

         (c) Within 90 days, or such shorter period as may be required by
statute or regulation, after the end of each calendar year, the Securities
Administrator shall have prepared and shall make available, upon written
request, to each Person who at any time during the calendar year was a
Certificateholder of record, and make available to Certificate Owners
(identified as such by the Clearing Agency) in accordance with applicable
regulations, a report summarizing the items provided to Certificateholders
pursuant to Section 4.03(a) on an annual basis as may be required to enable such
Holders to prepare their federal income tax returns. Such information shall
include the amount of original issue discount accrued on each Class of
Certificates and information regarding the expenses of the Trust Fund. The
Securities Administrator shall be deemed to have satisfied this requirement if
it forwards such information in any other format permitted by the Code. The
Master Servicer shall provide the Securities Administrator with such Mortgage
Loan level information as is necessary for the Securities Administrator to
prepare such reports.

         Section 4.04. Certificate Account.

         (a) The Securities Administrator shall establish and maintain in its
name, as trustee, a trust account (the "Certificate Account"), to be held in
trust for the benefit of the Certificateholders until disbursed pursuant to the
terms of this Agreement. The Certificate Account shall be an Eligible Account.
If the existing Certificate Account ceases to be an Eligible Account, the
Trustee shall establish a new Certificate Account that is an Eligible Account
within 20 Business Days and transfer all funds on deposit in such existing
Certificate Account into such new Certificate Account. The Certificate Account
shall relate solely to the Certificates issued hereunder and funds in the
Certificate Account shall be held separate and apart from and shall not be
commingled with any other monies including, without limitation, other monies of
the Securities Administrator held under this Agreement.

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<PAGE>

         (b) The Securities Administrator shall cause to be deposited into the
Certificate Account on the day on which, or, if such day is not a Business Day,
the Business Day immediately following the day on which, any monies are remitted
by the Master Servicer to the Securities Administrator all such amounts. The
Securities Administrator shall make withdrawals from the Certificate Account
only for the following purposes:

             (i)      to withdraw amounts deposited in the Certificate Account
         in error;

             (ii)     to pay itself any investment income earned with respect to
         funds in the Certificate Account invested in Eligible Investments as
         set forth in subsection (c) below, and to make payments to itself prior
         to making distributions pursuant to Section 5.02 for any expenses or
         other indemnification owing to the Trustee and others pursuant to any
         provision of this Agreement;

             (iii)    to make payments of the Master Servicing Fee (to the
         extent not already withheld or withdrawn from the Collection Account by
         the Master Servicer) to the Master Servicer;

             (iv)     to make distributions to the Certificateholders pursuant
         to Article V; and

             (v)      to clear and terminate the Certificate Account pursuant to
         Section 7.02.

         (c) The Securities Administrator may invest, or cause to be invested,
funds held in the Certificate Account, which funds, if invested, shall be
invested in Eligible Investments (which may be obligations of the Securities
Administrator). All such investments must mature no later than the next
Distribution Date, and shall not be sold or disposed of prior to their maturity.
All such Eligible Investments will be made in the name of the Securities
Administrator (in its capacity as such) or its nominee. All income and gain
realized from any such investment shall be paid to the Securities Administrator
and shall be subject to its withdrawal on order from time to time. The amount of
any losses incurred in respect of any such investments shall be paid by the
Securities Administrator for deposit in the Certificate Account out of its own
funds, without any right of reimbursement therefor, immediately as realized.
Funds held in the Certificate Account that are not invested shall be held in
cash.

         Section 4.05. [Reserved]

         Section 4.06. [Reserved].

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                                   ARTICLE V
                    DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

         Section 5.01. Distributions Generally.

         (a) Subject to Section 7.01 with respect to the final distribution on
the Certificates, on each Distribution Date the Trustee or the Paying Agent
shall make distributions in accordance with this Article V. Such distributions
shall be made by check mailed to each Certificateholder's address as it appears
on the Certificate Register of the Certificate Registrar or, upon written
request made to the Securities Administrator at least five Business Days prior
to the related Distribution Date to any Certificateholder, by wire transfer in
immediately available funds to an account specified in the request and at the
expense of such Certificateholder; provided, however, that the final
distribution in respect of any Certificate shall be made only upon presentation
and surrender of such Certificate at the Corporate Trust Office. Wire transfers
may be made at the expense of the Holder requesting such wire transfer by
deducting a wire transfer fee from the related distribution. Notwithstanding
such final payment of principal of any of the Certificates, each Residual
Certificate will remain outstanding until the termination of each REMIC and the
payment in full of all other amounts due with respect to the Residual
Certificate and at such time such final payment in retirement of the Residual
Certificate will be made only upon presentation and surrender of such
Certificate at the Corporate Trust Office of the Certificate Registrar. If any
payment required to be made on the Certificates is to be made on a day that is
not a Business Day, then such payment will be made on the next succeeding
Business Day.

         (b) All distributions or allocations made with respect to
Certificateholders within each Class on each Distribution Date shall be
allocated among the outstanding Certificates in such Class equally in proportion
to their respective initial Certificate Principal Amounts (or initial Notional
Amounts).

         Section 5.02. Distributions from the Certificate Account.

         (a) On each Distribution Date, the Securities Administrator (or the
Paying Agent on behalf of the Trustee) shall withdraw from the Certificate
Account, to the extent of funds available therefor, the Available Distribution
Amount with respect to each Mortgage Pool, and shall distribute such amount in
the following order of priority based on the report of the Securities
Administrator:

             (i)      to payment of the Securities Administrator Fee for such
         Distribution Date;

             (ii)     from the remaining Available Distribution Amount for each
         Mortgage Pool, to each Class of Senior Certificates in the related
         Certificate Group, the Accrued Certificate Interest thereon for such
         Distribution Date, as reduced by such Class's allocable share of any
         Net Prepayment Interest Shortfalls for the related Mortgage Pool for
         such Distribution Date; provided, however, that any shortfall in
         available amounts for a Mortgage Pool shall be allocated among the
         Classes of the related Certificate Group in proportion to the amount of
         Accrued Certificate Interest (as so reduced) that would otherwise be
         distributable thereon;

             (iii)    from the remaining Available Distribution Amount for each
         Mortgage Pool, to each Class of Senior Certificates in the related
         Certificate Group, any related Interest Shortfall for such Distribution
         Date; provided, however, that any shortfall in available amounts for
         each Mortgage Pool shall be allocated among the Classes of the related
         Certificate Group in proportion to the Interest Shortfall for each such
         Class on such Distribution Date;

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             (iv)     from the remaining Available Distribution Amount for each
         Mortgage Pool, to the Senior Certificates of the related Certificate
         Group (other than any Class of Notional Certificates) in reduction of
         the Class Principal Amounts thereof, as follows.

                      (A)  sequentially, to the Class R and Class 1-A
             Certificates, from the Available Distribution Amount for Pool 1,
             the Senior Principal Distribution Amount for Pool 1 for such
             Distribution Date, until the Class Principal Amounts have been
             reduced to zero;

                      (B)  pro rata, to the Class 2-A1 and Class 2-A2
             Certificates from the Available Distribution Amount for Pool 2 for
             such Distribution Date, the Senior Principal Distribution Amount
             for such Mortgage Pool for such Distribution Date, until the Class
             Principal Amount thereof has been reduced to zero;

                      (C)  to the Class 3-A Certificates from the Available
             Distribution Amount for Pool 3 for such Distribution Date in an
             amount up to the Senior Principal Distribution Amount for such
             Mortgage Pool for such Distribution Date until the Class Principal
             Amount thereof has been reduced to zero;

                      (D) to the Class 4-A Certificates from the Available
             Distribution Amount for Pool 4 for such Distribution Date in an
             amount up to the Senior Principal Distribution Amount for such
             Mortgage Pool for such Distribution Date until the Class Principal
             Amount thereof has been reduced to zero; and

             (v)      from the remaining Available Distribution Amount for each
         Mortgage Pool, subject to the prior distribution of amounts pursuant to
         Section 5.02(f) in the case of clauses (C), (F), (I), (L), (O) and (R)
         below, to the Subordinated Certificates, in the following order of
         priority:

                      (A) to the Class B1 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

                      (B) to the Class B1 Certificates, any Interest Shortfall
             for such Class on such Distribution Date;

                      (C) to the Class B1 Certificates, in reduction of the
             Class Principal Amount thereof, such Class's Subordinate Class
             Percentage of each Subordinate Principal Distribution Amount for
             such Distribution Date, except as provided in Section 5.02(c),
             until the Certificate Principal Balance thereof has been reduced to
             zero;

                      (D) to the Class B2 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

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                      (E) to the Class B2 Certificates, any Interest Shortfall
             for such Class on such Distribution Date;

                      (F) to the Class B2 Certificates, in reduction of the
             Certificate Principal Amount thereof, such Class's Subordinate
             Class Percentage of each Subordinate Principal Distribution Amount
             for such Distribution Date, except as provided in Section 5.02(c),
             until the Class Principal Amount thereof has been reduced to zero;

                      (G) to the Class B3 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

                      (H) to the Class B3 Certificates, any Interest Shortfall
             for such Class on such Distribution Date;

                      (I) to the Class B3 Certificates, in reduction of the
             Certificate Principal Amount thereof, such Class's Subordinate
             Class Percentage of each Subordinate Principal Distribution Amount
             for such Distribution Date, except as provided in Section 5.02(c),
             until the Class Principal Amount thereof has been reduced to zero;

                      (J) to the Class B4 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

                      (K) to the Class B4 Certificates, any Interest Shortfall
             for such Class on such Distribution Date;

                      (L) to the Class B4 Certificates, in reduction of the
             Certificate Principal Amount thereof, such Class's Subordinate
             Class Percentage of each Subordinate Principal Distribution Amount
             for such Distribution Date, except as provided in Section 5.02(c),
             until the Certificate Principal Balance thereof has been reduced to
             zero;

                      (M) to the Class B5 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

                      (N) to the Class B5 Certificates, any Interest Shortfall
             for such Class on such Distribution Date;

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                      (O) to the Class B5 Certificates, in reduction of the
             Certificate Principal Amount thereof, such Class's Subordinate
             Class Percentage of each Subordinate Principal Distribution Amount
             for such Distribution Date, except as provided in Section 5.02(c),
             until the Class Principal Balance thereof has been reduced to zero;

                      (P) to the Class B6 Certificates, the Accrued Certificate
             Interest thereon for such Distribution Date, as reduced by such
             Class's allocable share of any Net Prepayment Interest Shortfalls
             for such Distribution Date;

                      (Q) to the Class B6 Certificates, any Interest Shortfall
             for such Class on such Distribution Date; and

                      (R) to the Class B6 Certificates, in reduction of the
             Certificate Principal Amount thereof, such Class's Subordinate
             Class Percentage of each Subordinate Principal Distribution Amount
             for such Distribution Date, except as provided in Section 5.02(c),
             until the Certificate Principal Balance thereof has been reduced to
             zero.

         (b) Net Prepayment Interest Shortfalls for each Mortgage Pool shall be
allocated among the Certificates of the related Certificate Group pro rata based
on (i) in the case of the related Senior Certificates, the Accrued Certificate
Interest otherwise distributable thereon, and (ii) in the case of the
Subordinate Certificates, interest accrued on the related Apportioned Principal
Balances.

         (c) (i) If on any Distribution Date the Credit Support Percentage for
the Class B1 Certificates is less than the Original Credit Support Percentage
for such Class, then, notwithstanding anything to the contrary in Section
5.02(a), no distribution of amounts described in clauses (ii) and (iii) of the
definition of Subordinate Principal Distribution Amount will be made in respect
of the Class B2, Class B3, Class B4, Class B5 or Class B6 Certificates on such
Distribution Date; (ii) If on any Distribution Date the Credit Support
Percentage for the Class B2 Certificates is less than the Original Credit
Support Percentage for such Class, then, notwithstanding anything to the
contrary in Section 5.02(a), no distribution of amounts described in clauses
(ii) and (iii) of the definition of Subordinate Principal Distribution Amount
will be made in respect of the Class B3, Class B4, Class B5 or Class B6
Certificates on such Distribution Date; (iii) If on any Distribution Date the
Credit Support Percentage for the Class B3 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B4, Class B5 or Class
B6 Certificates on such Distribution Date; (iv) If on any Distribution Date the
Credit Support Percentage for the Class B4 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B5 or Class B6
Certificates on such Distribution Date; and (v) If on any Distribution Date the
Credit Support Percentage for the Class B5 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B6 Certificates on such
Distribution Date.

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         Any amount not distributed in respect of any Class on any Distribution
Date pursuant to the immediately preceding paragraph will be allocated among the
remaining Subordinate Classes in proportion to their respective Certificate
Principal Amounts.

         (d) On each Distribution Date, the Paying Agent shall distribute to
Holders of the Class P-I Certificates and Class P-II Certificates any Prepayment
Penalty Amounts remitted to the Certificate Account related to Pool 1 and Pool
3, respectively, for such Distribution Date.

         (e) On each Distribution Date, the Paying Agent shall distribute to the
Holder of the Class R Certificate any amounts remaining for such Distribution
Date after application of all amounts described in paragraph (a) and (d) of this
Section 5.02. Any distributions pursuant to this paragraph (e) shall not reduce
the Class Principal Amount of the Class R Certificate.

         (f) (i) On each Distribution Date prior to the Credit Support Depletion
Date but on or after the date on which the aggregate Certificate Principal
Amount of the Senior Certificates of any Certificate Group has been reduced to
zero, amounts otherwise distributable as principal on each Class of Subordinate
Certificates in accordance with the priorities set forth in Section 5.02(a)(v),
in reverse order of priority, in respect of such Class's Subordinate Class
Percentage of the Subordinate Principal Distribution Amount for the Mortgage
Pool relating to such retired Senior Certificates, shall be distributed as
principal to the Senior Certificates (other than any Notional Certificates)
remaining outstanding in accordance with the priorities set forth in Section
5.02(a)(iv), until the Class Principal Amounts thereof have been reduced to
zero, provided that on such Distribution Date (a) the Aggregate Subordinate
Percentage for such Distribution Date is less than 200% of the Aggregate
Subordinate Percentage as of the Cut-off Date or (b) the average outstanding
principal balance of the Mortgage Loans in Pool 1 (if the aggregate Certificate
Principal Amount of the Senior Certificates of Group 2, Group 3 or Group 4 has
been reduced to zero), Pool 2 (if the aggregate Certificate Principal Amount of
the Senior Certificates of Group 1, Group 3 or Group 4 has been reduced to
zero), Pool 3 (if the aggregate Certificate Principal Amount of the Senior
Certificates of Group 1, Group 2 or Group 4 has been reduced to zero) or Pool 4
(if the aggregate Certificate Principal Amount of the Senior Certificates of
Group 1, Group 2 or Group 3 has been reduced to zero) that are delinquent 60
days or more for the last six months as a percentage of the related Group
Subordinate Amount is greater than or equal to 50%.

                      (A) On each Distribution Date on which the aggregate
             Certificate Principal Amount of the Senior Certificates of two or
             more Certificate Groups has been reduced to zero, any amounts
             distributable pursuant to this Section 5.02(f)(i) will be
             allocated, as to each applicable Class of Subordinate Certificates,
             in proportion to such Class's Subordinate Class Percentage of the
             Subordinate Principal Distribution Amount for the Mortgage Pool
             relating to each such retired Certificate Group.

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                      (B) On each Distribution Date on which the Senior
             Certificates of two or more Certificate Groups remain outstanding,
             any amounts distributable pursuant to this Section 5.02(f)(i) will
             be distributed in proportion to the aggregate Certificate Principal
             Amounts of such Certificates of each such Certificate Group.

             (ii)     (A) On any Distribution Date on which any Certificate
         Group constitutes an Undercollateralized Group, all amounts otherwise
         distributable as principal on the Subordinate Certificates, in reverse
         order of priority (other than amounts necessary to pay unpaid Interest
         Shortfalls) (or, following the Credit Support Depletion Date, such
         other amounts described in the immediately following sentence), will be
         distributed as principal to the Senior Certificates (other than any
         Notional Certificates) of such Undercollateralized Group in accordance
         with the priorities set forth in Section 5.02(a)(iv), until the
         aggregate Certificate Principal Amount of such Senior Certificates
         equals the Pool Balance of the related Mortgage Pool (such
         distribution, an "Undercollateralization Distribution"). In the event
         that any Certificate Group constitutes an Undercollateralized Group on
         any Distribution Date following the Credit Support Depletion Date,
         Undercollateralization Distributions will be made from the excess of
         the Available Distribution Amount for the other such Mortgage Pools not
         related to an Undercollateralized Group remaining after all required
         amounts have been distributed to the Senior Certificates of the other
         Certificate Groups. In addition, the amount of any unpaid Interest
         Shortfalls with respect to an Undercollateralized Group on any
         Distribution Date (including any Interest Shortfalls for such
         Distribution Date) will be distributed to the Senior Certificates of
         such Undercollateralized Group prior to the payment of any
         Undercollateralization Distributions from amounts otherwise
         distributable as principal on the Subordinate Certificates, in reverse
         order of priority (or, following the Credit Support Depletion Date, as
         provided in the preceding sentence).

                      (B) If on any Distribution Date two or more Certificate
Groups are Undercollateralized Groups and one or more Certificate Group is not
an Undercollateralized Group, the distributions described in paragraph (ii)(A)
above will be made in proportion to the amount by which the aggregate
Certificate Principal Amount of the Senior Certificates, after giving effect to
distributions pursuant to Sections 5.02(a) and (b) on such Distribution Date, of
each Undercollateralized Group exceeds the Pool Balance of the related Mortgage
Pool for such Distribution Date.

         Section 5.03. Allocation of Realized Losses.

         (a) On any Distribution Date, the principal portion of each Realized
Loss (other than any Excess Loss) in respect of a Mortgage Loan shall be
allocated in the following order of priority:

first, to the Class B6 Certificates, until the Class Principal Amount thereof
     has been reduced to zero;

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second, to the Class B5 Certificates, until the Class Principal Amount thereof
     has been reduced to zero;

third, to the Class B4 Certificates, until the Class Principal Amount thereof
     has been reduced to zero;

fourth, to the Class B3 Certificates, until the Class Principal Amount thereof
     has been reduced to zero;

fifth, to the Class B2 Certificates, until the Class Principal Amount thereof
     has been reduced to zero;

sixth, to the Class B1 Certificates, until the Class Principal Amount thereof
     has been reduced to zero; and

seventh, to the Classes of Senior Certificates of the related Certificated
     Group, pro rata, in accordance with their Class Principal Amounts;
     provided, that any such loss allocated to any Class of Accrual Certificates
     shall be allocated (subject to Section 5.03(c)) on the basis of the lesser
     of (x) the Class Principal Amount thereof immediately prior to the
     applicable Distribution Date and (y) the Class Principal Amount thereof on
     the Closing Date (as reduced by any Realized Losses previously allocated
     thereto); provided further, that any such loss that would otherwise be
     allocated to the Class 2-A1 Certificates shall instead be allocated to the
     Class 2-A2 Certificates until the Class Principal Amount thereof has been
     reduced to zero.

Notwithstanding the foregoing, the first $0.04 of principal portion of Realized
Losses shall not be allocated to any Class of Certificates.

         (b) With respect to any Distribution Date, the principal portion of any
Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to the
Subordinate Certificates (without regard to which Mortgage Pool experienced the
loss) and the Senior Certificates of the related Certificate Group and on the
basis of the Apportioned Principal Balances of the Classes of Subordinate
Certificates and Class Principal Amounts of the Senior Certificates; provided,
that any such loss allocated to any Class of Accrual Certificates (and any
Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis
of the lesser of (x) the Class Principal Amount thereof immediately prior to the
applicable Distribution Date and (y) the Class Principal Amount thereof on the
Closing Date (as reduced by any Realized Losses previously allocated thereto).

         (c) Any Realized Losses allocated to a Class of Certificates pursuant
to Section 5.03(a) or (b) shall be allocated among the Certificates of such
Class in proportion to their respective Certificate Principal Amounts. Any
allocation of Realized Losses pursuant to this paragraph (c) shall be
accomplished by reducing the Certificate Principal Amount of the related
Certificates on the related Distribution Date in accordance with Section
5.03(d).

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         (d) Realized Losses allocated in accordance with this Section 5.03
shall be allocated on the Distribution Date in the month following the month in
which such loss was incurred and, in the case of the principal portion thereof,
after giving effect to distributions made on such Distribution Date.

         (e) On each Distribution Date, the Subordinate Certificate Writedown
Amount for such date shall effect a corresponding reduction in the Certificate
Principal Amount of the lowest ranking Class of outstanding Subordinate
Certificates, which reduction shall occur on such Distribution Date after giving
effect to distributions made on such Distribution Date.

         (f) In the event that there is a recovery of an amount in respect of
principal of a Mortgage Loan, which amount had previously been allocated as a
Realized Loss to one or more Classes of Certificates, each outstanding Class to
which any portion of such Realized Loss had previously been allocated shall be
entitled to receive, on the Distribution Date in the month following the month
in which such recovery is received, its pro rata share (based on the Class
Principal Amount thereof) of such recovery, up to the amount of the portion of
such Realized Loss previously allocated to such Class. In the event that the
total amount of such recovery exceeds the amount of Realized Loss allocated to
the outstanding Classes in accordance with the preceding provisions, each
outstanding Class of Certificates shall be entitled to receive its pro rata
share of the amount of such excess, up to the amount of any unrecovered Realized
Loss previously allocated to such Class. Any such recovery allocated to a Class
of Certificates shall not further reduce the Certificate Principal Amount of
such Certificate. Any such amounts not otherwise allocated to any Class of
Certificates, pursuant to this subsection shall be treated as Principal
Prepayments for purposes of this Agreement.

         Section 5.04. Advances by Master Servicer and the Securities
Administrator.

         (a) Advances shall be made in respect of each Deposit Date as provided
herein. If, on any Determination Date, the Master Servicer determines that any
Scheduled Payments due during the related Due Period (other than Balloon
Payments) have not been received, the Master Servicer shall, or shall cause the
applicable Servicer to, advance such amount, less an amount, if any, to be set
forth in an Officer's Certificate to be delivered to the Trustee and the
Securities Administrator on such Determination Date, which if advanced the
Master Servicer or such Servicer has determined would not be recoverable from
amounts received with respect to such Mortgage Loan, including late payments,
Liquidation Proceeds, Insurance Proceeds or otherwise. The Securities
Administrator shall be able to rely conclusively on any non-recoverability
determination made by the Master Servicer. If the Master Servicer determines
that an Advance is required, it shall on the Deposit Date immediately following
such Determination Date either (i) remit to the Securities Administrator from
its own funds (or funds advanced by the applicable Servicer) for deposit in the
Securities Administrator Account immediately available funds in an amount equal
to such Advance, (ii) cause to be made an appropriate entry in the records of
the Collection Account that funds in such account being held for future
distribution or withdrawal have been, as permitted by this Section 5.04, used by
the Master Servicer to make such Advance, and remit such immediately available
funds to the Securities Administrator for deposit in the Certificate Account or

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(iii) make Advances in the form of any combination of clauses (i) and (ii)
aggregating the amount of such Advance. Any funds being held in the Collection
Account for future distribution to Certificateholders and so used shall be
replaced by the Master Servicer from its own funds by remittance to the
Securities Administrator for deposit in the Securities Administrator Account on
or before any future Deposit Date to the extent that funds in the Certificate
Account on such Deposit Date shall be less than payments to Certificateholders
required to be made on the related Distribution Date. The Securities
Administrator shall be entitled to conclusively rely upon any determination by
the Master Servicer that an Advance, if made, would constitute a non-recoverable
advance. The Master Servicer and each Servicer shall be entitled to be
reimbursed from the Collection Account for all Advances made by it as provided
in Section 4.02.

         (b) In the event that the Master Servicer fails for any reason to make
an Advance required to be made pursuant to Section 5.04(a) on or before the
Deposit Date, the Securities Administrator, solely in its capacity as successor
Master Servicer pursuant to Section 6.14, shall, on or before the related
Distribution Date, deposit in the Certificate Account an amount equal to the
excess of (a) Advances required to be made by the Master Servicer or any
Servicer that would have been deposited in such Certificate Account over (b) the
amount of any Advance made by the Master Servicer or such Servicer with respect
to such Distribution Date; provided, however, that the Securities Administrator
shall be required to make such Advance only if it is not prohibited by law from
doing so and it has determined that such Advance would be recoverable from
amounts to be received with respect to such Mortgage Loan, including late
payments, Liquidation Proceeds, Insurance Proceeds, or otherwise. The Securities
Administrator shall be entitled to be reimbursed from the Certificate Account
for Advances made by it pursuant to this Section 5.04 as if it were the Master
Servicer.

         Section 5.05. Compensating Interest Payments.

         The amount of the Aggregate Master Servicing Compensation payable to
the Master Servicer in respect of any Distribution Date shall be reduced by the
amount of any Compensating Interest Payment for such Distribution Date, but only
to the extent such Compensating Interest Payment is not actually made by the
applicable Servicer on the applicable Remittance Date. Such amount shall not be
treated as an Advance and shall not be reimbursable to the Master Servicer.

                                   ARTICLE VI
   CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR; EVENTS OF DEFAULT

         Section 6.01. Duties of Trustee and Securities Administrator.

         (a) The Trustee, except during the continuance of an Event of Default
(of which a Responsible Officer of the Trustee shall have actual knowledge), and
the Securities Administrator undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement. Any permissive right of
the Trustee or the Securities Administrator provided for in this Agreement shall
not be construed as a duty of the Trustee or the Securities Administrator. If an
Event of Default (of which a Responsible Officer of the Trustee or the
Securities Administrator shall have actual knowledge) has occurred and has not
otherwise been cured or waived, the Trustee or the Securities Administrator
shall exercise such of the rights and powers vested in it by this Agreement 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 unless the Securities Administrator is acting as Master Servicer, in
which case it shall use the same degree of care and skill as the Master Servicer
hereunder.

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         (b) Each of the Trustee and the Securities Administrator, upon receipt
of all resolutions, certificates, statements, opinions, reports, documents,
orders or other instruments furnished to the Trustee or the Securities
Administrator which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they are in
the form required by this Agreement; provided, however, that neither the Trustee
not the Securities Administrator shall be responsible for the accuracy or
content of any such resolution, certificate, statement, opinion, report,
document, order or other instrument furnished by the Master Servicer, to the
Trustee or the Securities Administrator, as applicable, pursuant to this
Agreement, and neither the Trustee nor the Securities Administrator shall be
required to recalculate or verify any numerical information furnished to the
Trustee or the Securities Administrator pursuant to this Agreement.

         (c) Neither the Trustee nor the Securities Administrator shall have any
liability arising out of or in connection with this Agreement, except for its
negligence or willful misconduct. No provision of this Agreement shall be
construed to relieve the Trustee or the Securities Administrator from liability
for its own negligent action, its own negligent failure to act or its own
willful misconduct; provided, however, that:

             (i)      Neither the Trustee nor the Securities Administrator shall
         be personally liable with respect to any action taken, suffered or
         omitted to be taken by it in good faith in accordance with the consent
         or direction of Holders of Certificates as provided in Section 6.18
         hereof;

             (ii)     For all purposes under this Agreement, the Trustee shall
         not be deemed to have notice of any Event of Default (other than
         resulting from a failure by the Master Servicer (i) to remit funds (or
         to make Advances) or (ii) to furnish information to the Trustee when
         required to do so) unless a Responsible Officer of the Trustee has
         actual knowledge thereof or unless written notice of any event which is
         in fact such a default is received by the Trustee at the Corporate
         Trust Office, and such notice references the Holders of the
         Certificates and this Agreement;

             (iii)    For all purposes under this Agreement, the Securities
         Administrator shall not be deemed to have notice of any Event of
         Default (other than resulting from a failure by the Master Servicer to
         remit funds or to furnish information to the Securities Administrator
         when required to do so) unless a Responsible Officer of the Securities
         Administrator has actual knowledge thereof or unless written notice of
         any event which is in fact such a default is received by the Securities
         Administrator at the address provided in Section 11.07, and such notice
         references the Holders of the Certificates and this Agreement; and

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<PAGE>

             (iv)     No provision of this Agreement shall require the Trustee
         or the Securities Administrator to expend or risk its own funds or
         otherwise incur any 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 for believing that
         repayment of such funds or adequate indemnity against such risk or
         liability is not reasonably assured to it, and none of the provisions
         contained in this Agreement shall in any event require the Trustee or
         the Securities Administrator to perform, or be responsible for the
         manner of performance of, any of the obligations of the Master Servicer
         under this Agreement except, with respect to the Securities
         Administrator, during such time, if any, as the Securities
         Administrator shall be the successor to, and be vested with the rights,
         duties, powers and privileges of, the Master Servicer in accordance
         with the terms of this Agreement.

         (d) The Trustee shall have no duty hereunder with respect to any
complaint, claim, demand, notice or other document it may receive or which may
be alleged to have been delivered to or served upon it by the parties as a
consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall use its best efforts to remit to the Master Servicer upon
receipt any such complaint, claim, demand, notice or other document (i) which is
delivered to the Corporate Trust Office of the Trustee, (ii) of which a
Responsible Officer has actual knowledge, and (iii) which contains information
sufficient to permit the Trustee to make a determination that the real property
to which such document relates is a Mortgaged Property.

         (e) Neither the Trustee or the Securities Administrator shall be
personally liable with respect to any action taken, suffered or omitted to be
taken by it in good faith in accordance with the direction of Certificateholders
of any Class holding Certificates which evidence, as to such Class, Percentage
Interests aggregating not less than 25% as to the time, method and place of
conducting any proceeding for any remedy available to the Trustee or the
Securities Administrator, as applicable, or exercising any trust or power
conferred upon the Trustee or the Securities Administrator, as applicable, under
this Agreement.

         (f) Neither the Trustee nor the Securities Administrator shall be held
liable by reason of any insufficiency in any account (including without
limitation the Securities Administrator Account and the Certificate Account)
held by or on behalf of the Trustee or the Securities Administrator resulting
from any investment loss on any Eligible Investment included therein (except to
the extent that the Trustee is the obligor and has defaulted thereon).

         (g) Except as otherwise provided herein, neither the Trustee nor the
Securities Administrator shall have any duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any re-recording, re-filing or re-depositing of any thereof,
(B) to see to any insurance, (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Collection Account or the Certificate
Account, or (D) to confirm or verify the contents of any reports or certificates
of the Master Servicer delivered to the Trustee or the Securities Administrator
pursuant to this Agreement believed by the Trustee or the Securities
Administrator, as applicable, to be genuine and to have been signed or presented
by the proper party or parties.

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<PAGE>

         (h) Neither the Securities Administrator nor the Trustee shall be
liable in its individual capacity for an error of judgment made in good faith by
a Responsible Officer or other officers of the Trustee or the Securities
Administrator, as applicable, unless it shall be proved that the Trustee or the
Securities Administrator, as applicable, was negligent in ascertaining the
pertinent facts.

         (i) Notwithstanding anything in this Agreement to the contrary, neither
the Securities Administrator nor the Trustee shall be liable for special,
indirect or consequential losses or damages of any kind whatsoever (including,
but not limited to, lost profits), even if the Trustee or the Securities
Administrator, as applicable, has been advised of the likelihood of such loss
or damage and regardless of the form of action.

         (j) Neither the Securities Administrator nor the Trustee shall be
responsible for the acts or omissions of the other or any Servicer, Custodian or
the Master Servicer, it being understood that this Agreement shall not be
construed to render any of them agents of one another.

         Section 6.02. Certain Matters Affecting the Trustee and the Securities
Administrator.

         Except as otherwise provided in Section 6.01:

             (i)      Each of the Trustee and the Securities Administrator may
         request, and may rely and shall be protected in acting or refraining
         from acting upon any resolution, Officer's Certificate, certificate of
         auditors, Opinion of Counsel or any other certificate, statement,
         instrument, opinion, report, notice, request, consent, order, approval,
         bond or other paper or document believed by it to be genuine and to
         have been signed or presented by the proper party or parties;

             (ii)     Each of the Trustee and the Securities Administrator may
         consult with counsel and any advice of its counsel or Opinion of
         Counsel shall be full and complete authorization and protection in
         respect of any action taken or suffered or omitted by it hereunder in
         good faith and in accordance with such advice or Opinion of Counsel;

             (iii)    Neither the Trustee nor the Securities Administrator shall
         be personally liable for any action taken, suffered or omitted by it in
         good faith and reasonably believed by it to be authorized or within the
         discretion or rights or powers conferred upon it by this Agreement;

             (iv)     Unless an Event of Default shall have occurred and be
         continuing, neither the Trustee nor the Securities Administrator shall
         be bound to make any investigation into the facts or matters stated in
         any resolution, certificate, statement, instrument, opinion, report,
         notice, request, consent, order, approval, bond or other paper or
         document (provided the same appears regular on its face), unless
         requested in writing to do so by Holders of at least a majority in
         Class Principal Amount (or Class Notional Amount) of each Class of
         Certificates; provided, however, that, if the payment within a
         reasonable time to the Trustee or the Securities Administrator, as
         applicable, of the costs, expenses or liabilities likely to be incurred
         by it in the making of such investigation is, in the opinion of the
         Trustee, not reasonably assured to the Trustee by the security afforded
         to it by the terms of this Agreement, the Trustee or the Securities
         Administrator, as applicable, may require reasonable indemnity against
         such expense or liability or payment of such estimated expenses as a
         condition to proceeding. The reasonable expense thereof shall be paid
         by the Holders requesting such investigation;

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<PAGE>

             (v)      Each of the Trustee and the Securities Administrator may
         execute any of the trusts or powers hereunder or perform any duties
         hereunder either directly or by or through agents, custodians, or
         attorneys, which agents, custodians or attorneys shall have any and all
         of the rights, powers, duties and obligations of the Trustee and the
         Securities Administrator, respectively, conferred on them by such
         appointment provided that each of the Trustee and the Securities
         Administrator shall continue to be responsible for its duties and
         obligations hereunder to the extent provided herein, and provided
         further that neither the Trustee nor the Securities Administrator shall
         be responsible for any misconduct or negligence on the part of any such
         agent or attorney appointed with due care by the Trustee or the
         Securities Administrator, as applicable;

             (vi)     Neither the Trustee nor the Securities Administrator shall
         be under any obligation to exercise any of the trusts or powers vested
         in it by this Agreement or to institute, conduct or defend any
         litigation hereunder or in relation hereto, in each case at the
         request, order or direction of any of the Certificateholders pursuant
         to the provisions of this Agreement, unless such Certificateholders
         shall have offered to the Trustee or the Securities Administrator, as
         applicable, reasonable security or indemnity against the costs,
         expenses and liabilities which may be incurred therein or thereby;

             (vii)    The right of the Trustee and the Securities Administrator
         to perform any discretionary act enumerated in this Agreement shall not
         be construed as a duty, and neither the Trustee nor the Securities
         Administrator shall be answerable for other than its negligence or
         willful misconduct in the performance of such act; and

             (viii)   Neither the Trustee nor the Securities Administrator shall
         be required to give any bond or surety in respect of the execution of
         the Trust Fund created hereby or the powers granted hereunder.

         Section 6.03. Trustee and Securities Administrator Not Liable for
Certificates.

         The Trustee and the Securities Administrator make no representations as
to the validity or sufficiency of this Agreement or of the Certificates (other
than the certificate of authentication on the Certificates) or of any Mortgage
Loan, or related document save that the Trustee and the Securities Administrator
each represent that, assuming due execution and delivery by the other parties
hereto, this Agreement has been duly authorized, executed and delivered by it
and constitutes its valid and binding obligation, enforceable against it in
accordance with its terms except that such enforceability may be subject to (A)
applicable bankruptcy and insolvency laws and other similar laws affecting the
enforcement of the rights of creditors generally, and (B) general principles of
equity regardless of whether such enforcement is considered in a proceeding in
equity or at law. Neither the Trustee nor the Securities Administrator shall be
accountable for the use or application by the Depositor of funds paid to the
Depositor in consideration of the assignment of the Mortgage Loans to the Trust
Fund by the Depositor or for the use or application of any funds deposited into
the Collection Account, the Certificate Account, any Escrow Account or any other
fund or account maintained with respect to the Certificates. Neither the Trustee
nor the Securities Administrator shall be responsible for the legality or
validity of this Agreement or the validity, priority, perfection or sufficiency
of the security for the Certificates issued or intended to be issued hereunder.
Except as otherwise provided herein, neither the Trustee nor the Securities
Administrator shall have any responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to record this Agreement.

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<PAGE>

         Section 6.04. Trustee and Securities Administrator May Own
Certificates.

         The Trustee, the Securities Administrator and any Affiliate or agent of
the Trustee or Securities Administrator in its individual or any other capacity
may become the owner or pledgee of Certificates and may transact banking and
trust with the other parties hereto with the same rights it would have if it
were not Trustee, Securities Administrator or such agent.

         Section 6.05. Eligibility Requirements for Trustee and Securities
Administrator.

         Each of the Trustee and the Securities Administrator hereunder shall at
all times be (i) an institution insured by the FDIC and (ii) a corporation or
national banking association, organized and doing business under the laws of any
State or the United States of America, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or national banking association publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then, for the purposes of this
Section, the combined capital and surplus of such corporation or national
banking association shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time either the Trustee or the Securities Administrator shall cease to be
eligible in accordance with provisions of this Section, the Trustee or the
Securities Administrator, as applicable, shall resign immediately in the manner
and with the effect specified in Section 6.06.

         Section 6.06. Resignation and Removal of Trustee and Securities
Administrator.

         (a) Each of the Trustee and the Securities Administrator may at any
time resign and be discharged from the trust hereby created by giving written
notice thereof to the Trustee or the Securities Administrator, as applicable,
the Depositor and the Master Servicer. Upon receiving such notice of
resignation, the Depositor will promptly appoint a successor trustee or
successor Securities Administrator, as applicable, by written instrument, one
copy of which instrument shall be delivered to the resigning Trustee or
resigning Securities Administrator, as applicable, one copy to the successor
trustee or to the successor securities administrator, as applicable, one copy to
the Master Servicer. If no successor trustee or successor securities
administrator, as applicable shall have been so appointed and shall have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or resigning Securities Administrator, as
applicable, may petition any court of competent jurisdiction for the appointment
of a successor trustee.

         (b) If at any time (i) either the Trustee or the Securities
Administrator shall cease to be eligible in accordance with the provisions of
Section 6.05 and shall fail to resign after written request therefor by the
Depositor, (ii) the Trustee or the Securities Administrator shall become
incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver
of the Trustee or the Securities Administrator or of either of their property
shall be appointed, or any public officer shall take charge or control of the
Trustee or the Securities Administrator or of either of their property or
affairs for the purpose of rehabilitation, conservation or liquidation, (iii) a
tax is imposed or threatened with respect to the Trust Fund by any state in
which the Trustee or the Trust Fund held by the Trustee is located, or (iv) the
continued use of the Trustee or the Securities Administrator would result in a
downgrading of the rating by the Rating Agencies of any Class of Certificates
with a rating, then the Depositor shall remove the Trustee or the Securities
Administrator, as applicable, and appoint a successor trustee or successor
securities administrator, as applicable, by written instrument, one copy of
which instrument shall be delivered to the Trustee or the Securities
Administrator, as applicable, so removed, one copy to the successor trustee or
the successor securities administrator, as applicable, and one copy to the
Master Servicer.

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         (c) The Holders of more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates may at any time upon 30
days' written notice to the Trustee, the Securities Administrator and the
Depositor remove the Trustee or the Securities Administrator by such written
instrument, signed by such Holders or their attorney-in-fact duly authorized,
one copy of which instrument shall be delivered to the Depositor, one copy to
the Trustee or Securities Administrator, as applicable, so removed and one copy
to the Master Servicer; the Depositor shall thereupon use its best efforts to
appoint a mutually acceptable successor trustee or successor securities
administrator, as applicable, in accordance with this Section.

         (d) Any resignation or removal of the Trustee or Securities
Administrator and appointment of a successor trustee or successor securities
administrator pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee or successor
securities administrator, as applicable, as provided in Section 6.07.

         Section 6.07. Successor Trustee and Successor Securities Administrator.

         (a) Any successor trustee or successor securities administrator
appointed as provided in Section 6.06 shall execute, acknowledge and deliver to
the Depositor, the Master Servicer and to its predecessor trustee or predecessor
securities administrator, as applicable, an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee or predecessor securities administrator, as applicable,
shall become effective and such successor trustee or successor securities
administrator, as applicable, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee or
securities administrator, as applicable, herein. The predecessor trustee or
predecessor securities administrator, as applicable shall deliver to the
successor trustee (or assign to the successor trustee its interest under each
Custodial Agreement, to the extent permitted thereunder) or predecessor
securities administrator, as applicable, all Mortgage Files and documents and
statements related to each Mortgage Files held by it hereunder, and shall duly
assign, transfer, deliver and pay over to the successor trustee the entire Trust
Fund, together with all necessary instruments of transfer and assignment or
other documents properly executed necessary to effect such transfer and such of
the record or copies thereof maintained by the predecessor trustee in the
administration hereof as may be requested by the successor trustee and shall
thereupon be discharged from all duties and responsibilities under this
Agreement. In addition, the Master Servicer and the predecessor trustee or
predecessor securities administrator, as applicable, shall execute and deliver
such other instruments and do such other things as may reasonably be required to
more fully and certainly vest and confirm in the successor trustee or securities
administrator, as applicable all such rights, powers, duties and obligations.

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         (b) No successor trustee or securities administrator, as applicable,
shall accept appointment as provided in this Section unless at the time of such
appointment such successor trustee or securities administrator, as applicable,
shall be eligible under the provisions of Section 6.05.

         (c) Upon acceptance of appointment by a successor trustee or successor
securities administrator, as applicable, as provided in this Section, the Master
Servicer shall mail notice of the succession of such trustee or securities
administrator, as applicable and to all Holders of Certificates at their
addresses as shown in the Certificate Register and to the Rating Agencies. The
expenses of such mailing shall be borne by the Master Servicer.

         Section 6.08. Merger or Consolidation of Trustee or Securities
Administrator. Any Person into which the Trustee or Securities Administrator may
be merged or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Trustee or Securities
Administrator shall be a party, or any Persons succeeding to the business of the
Trustee or the Securities Administrator, shall be the successor to the Trustee
or the Securities Administrator hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding, provided that such Person shall be
eligible under the provisions of Section 6.05.

         Section 6.09. Appointment of Co-Trustee, Separate Trustee or Custodian.

         (a) Notwithstanding any other provisions hereof, at any time, the
Trustee, the Depositor or the Certificateholders evidencing more than 50% of the
Class Principal Amount (or Class Notional Amount) of each Class of Certificates
shall each have the power from time to time to appoint one or more Persons to
act either as co-trustees jointly with the Trustee, or as separate trustees, or
as custodians, for the purpose of holding title to, foreclosing or otherwise
taking action with respect to any Mortgage Loan outside the state where the
Trustee has its principal place of business where such separate trustee or
co-trustee is necessary or advisable (or the Trustee has been advised by the
Master Servicer that such separate trustee or co-trustee is necessary or
advisable) under the laws of any state in which a property securing a Mortgage
Loan is located or for the purpose of otherwise conforming to any legal
requirement, restriction or condition in any state in which a property securing
a Mortgage Loan is located or in any state in which any portion of the Trust
Fund is located. The separate trustees, co-trustees, or custodians so appointed
shall be trustees or custodians for the benefit of all the Certificateholders
and shall have such powers, rights and remedies as shall be specified in the
instrument of appointment; provided, however, that no such appointment shall, or
shall be deemed to, constitute the appointee an agent of the Trustee. The
obligation of the Trustee to make Advances pursuant to Section 5.04 and 6.14
hereof shall not be affected or assigned by the appointment of a co-trustee.

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

             (i)      all powers, duties, obligations and rights conferred upon
         the Trustee in respect of the receipt, custody and payment of moneys
         shall be exercised solely by the Trustee;

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             (ii)     all other rights, powers, duties and obligations conferred
         or imposed upon the Trustee shall be conferred or imposed upon and
         exercised or performed by the Trustee and such separate trustee,
         co-trustee, or custodian jointly, except to the extent that under any
         law of any jurisdiction in which any particular act or acts are to be
         performed the 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 Trust Fund or any
         portion thereof in any such jurisdiction, shall be exercised and
         performed by such separate trustee, co-trustee, or custodian;

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

             (iv)     the Trustee or the Certificateholders evidencing more than
         50% of the Aggregate Voting Interests of the Certificates may at any
         time accept the resignation of or remove any separate trustee,
         co-trustee or custodian, so appointed by it or them, if such
         resignation or removal does not violate the other terms of this
         Agreement.

         (c) Any notice, request or other writing given to the 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, co-trustee or custodian shall refer to this Agreement 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, either jointly with the Trustee or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Trustee. Every such instrument shall be filed with the Trustee.

         (d) Any separate trustee, co-trustee or custodian may, at any time,
constitute the 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 Agreement on its behalf and in its name. The Trustee shall not
be responsible for any action or inaction of any separate trustee, co-trustee or
custodian. If any separate trustee, co-trustee or custodian 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 Trustee, to
the extent permitted by law, without the appointment of a new or successor
trustee.

         (e) No separate trustee, co-trustee or custodian hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.05 hereunder and no notice to Certificateholders of the appointment shall be
required under Section 6.07 hereof.

         (f) The Trustee agrees to instruct the co-trustees, if any, to the
extent necessary to fulfill the Trustee's obligations hereunder.

         (g) The Trust Fund shall pay the reasonable compensation of the
co-trustees to the extent, and in accordance with the standards, specified in
Section 6.12 hereof (which compensation shall not reduce any compensation
payable to the Trustee under such Section).

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         Section 6.10. Authenticating Agents.

         (a) The Trustee may appoint one or more Authenticating Agents which
shall be authorized to act on behalf of the Trustee in authenticating
Certificates. The Trustee hereby appoints the Securities Administrator to act as
the initial Authenticating Agent, and the Securities Administrator hereby
accepts such appointment. Wherever reference is made in this Agreement to the
authentication of Certificates by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication on
behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent must be a corporation organized and doing business
under the laws of the United States of America or of any state, having a
combined capital and surplus of at least $15,000,000, authorized under such laws
to do a trust business and subject to supervision or examination by federal or
state authorities.

         (b) Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the Authenticating Agent without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

         (c) Any Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and the Depositor.
The Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.10, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 6.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee. Any Authenticating Agent shall be
entitled to reasonable compensation for its services and, if paid by the
Trustee, it shall be a reimbursable expense to the extent provided in Section
6.12.

         Section 6.11. Indemnification of Trustee and Securities Administrator.

         The Trustee and the Securities Administrator and their respective
directors, officers, employees and agents shall be entitled to indemnification
from the Trust Fund for any loss, liability or expense incurred in connection
with any legal proceeding or incurred without negligence or willful misconduct
on their part, arising out of, or in connection with, the acceptance or
administration of the trusts created hereunder or in connection with the
performance of their duties hereunder or under the Certificates, any Custodial
Agreement or any Servicing Agreement, including any applicable fees and expenses
payable pursuant to Section 6.12 and the costs and expenses of defending
themselves against any claim in connection with the exercise or performance of
any of their powers or duties hereunder, provided that:

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             (i)      with respect to any such claim, the Trustee or the
         Securities Administrator, as applicable, shall have given the
         Depositor, the Master Servicer and the Holders written notice thereof
         promptly after the Trustee or the Securities Administrator, as
         applicable, shall have knowledge thereof; provided that failure to so
         notify shall not relieve the Trust Fund of the obligation to indemnify
         the Trustee or the Securities Administrator;

             (ii)     while maintaining control over its own defense, the
         Trustee or the Securities Administrator, as applicable, shall cooperate
         and consult fully with the Depositor in preparing such defense; and

             (iii)    notwithstanding anything to the contrary in this Section
         6.11, the Trust Fund shall not be liable for settlement of any such
         claim by the Trustee or the Securities Administrator, as applicable,
         entered into without the prior consent of the Depositor, which consent
         shall not be unreasonably withheld; and

             (iv)     any such loss, liability or expense indemnified by the
         Trust Fund must constitute an "unanticipated expense" within the
         meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

         The provisions of this Section 6.11 shall survive any termination of
this Agreement and the resignation or removal of the Trustee or the Securities
Administrator, as applicable, and shall be construed to include, but not be
limited to any loss, liability or expense under any environmental law.

         Section 6.12. Fees and Expenses of Securities Administrator, Trustee
and Custodian.

         The Securities Administrator shall be entitled to (a) the Securities
Administrator Fee, and is authorized to pay itself the amount of income or gain
earned from investment of funds in the Securities Administrator Account and (b)
reimbursement of all reasonable expenses, disbursements and advancements
incurred or made by the Securities Administrator in accordance with this
Agreement (including fees and expenses of its counsel and all persons not
regularly in its employment), except any such expenses, disbursements and
advancements that either (i) arise from its negligence, bad faith or willful
misconduct or (ii) do not constitute "unanticipated expenses" within the meaning
of Treasury Regulations Section 1.860G-1(b)(3)(ii). The Trustee shall be
compensated as separately agreed with the Securities Administrator. The
Custodian shall be compensated as separately agreed with the Depositor.

         Section 6.13. Collection of Monies.

         Except as otherwise expressly provided in this Agreement, the Trustee
may demand payment or delivery of, and shall receive and collect, all money and
other property payable to or receivable by the Trustee pursuant to this
Agreement. The Trustee shall hold all such money and property received by it as
part of the Trust Fund and shall distribute it as provided in this Agreement. If
the Trustee shall not have timely received amounts to be remitted with respect
to the Mortgage Loans from the Master Servicer, the Trustee shall request the
Master Servicer to make such distribution as promptly as practicable or legally
permitted. If the Trustee shall subsequently receive any such amount, it may
withdraw such request.

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         Section 6.14. Events of Default; Securities Administrator To Act;
Appointment of Successor.

         (a) The occurrence of any one or more of the following events shall
constitute an "Event of Default":

             (i)      Any failure by the Master Servicer to furnish the
         Securities Administrator the Mortgage Loan data sufficient to prepare
         the reports described in Section 4.03(a) which continues unremedied for
         a period of two (2) Business Days after the date upon which written
         notice of such failure shall have been given to such Master Servicer by
         the Trustee or the Securities Administrator or to such Master Servicer,
         the Securities Administrator and the Trustee by the Holders of not less
         than 25% of the Class Principal Amount (or Class Notional Amount) of
         each Class of Certificates affected thereby; or

             (ii)     Any failure on the part of the Master Servicer duly to
         observe or perform in any material respect any other of the covenants
         or agreements on the part of such Master Servicer contained in this
         Agreement which continues unremedied for a period of 30 days (or 15
         days, in the case of a failure to maintain any Insurance Policy
         required to be maintained pursuant to this Agreement) after the date on
         which written notice of such failure, requiring the same to be
         remedied, shall have been given to such Master Servicer by the Trustee,
         or to such Master Servicer and the Trustee by the Holders of not less
         than 25% of the Class Principal Amount (or Class Notional Amount) of
         each Class of Certificates affected thereby; or

             (iii)    A decree or order of a court or agency or supervisory
         authority having jurisdiction for the appointment of a conservator or
         receiver or liquidator in any insolvency, readjustment of debt,
         marshalling of assets and liabilities or similar proceedings, or for
         the winding-up or liquidation of its affairs, shall have been entered
         against the Master Servicer, and such decree or order shall have
         remained in force undischarged or unstayed for a period of 60 days or
         any Rating Agency reduces or withdraws or threatens to reduce or
         withdraw the rating of the Certificates because of the financial
         condition or loan servicing capability of such Master Servicer; or

             (iv)     The Master Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities, voluntary liquidation
         or similar proceedings of or relating to such Master Servicer or of or
         relating to all or substantially all of its property; or

             (v)      The Master Servicer shall admit in writing its inability
         to pay its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors or voluntarily suspend
         payment of its obligations; or

             (vi)     The Master Servicer shall be dissolved, or shall dispose
         of all or substantially all of its assets, or consolidate with or merge
         into another entity or shall permit another entity to consolidate or
         merge into it, such that the resulting entity does not meet the
         criteria for a successor servicer as specified in Section 9.27 hereof;
         or

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             (vii)    If a representation or warranty set forth in Section 9.14
         hereof shall prove to be incorrect as of the time made in any respect
         that materially and adversely affects the interests of the
         Certificateholders, and the circumstance or condition in respect of
         which such representation or warranty was incorrect shall not have been
         eliminated or cured within 60 days after the date on which written
         notice of such incorrect representation or warranty shall have been
         given to the Master Servicer by the Trustee or to the Master Servicer
         and the Trustee by the Holders of not less than 25% of the Aggregate
         Certificate Principal Amount of each Class of Certificates; or

             (viii)   A sale or pledge of the any of the rights of the Master
         Servicer hereunder or an assignment of this Agreement by the Master
         Servicer or a delegation of the rights or duties of the Master Servicer
         hereunder shall have occurred in any manner not otherwise permitted
         hereunder and without the prior written consent of the Trustee and
         Certificateholders holding more than 50% of the Class Principal Amount
         (or Class Notional Amount) of each Class of Certificates;

             (ix)     The Master Servicer has notice or actual knowledge that
         any Servicer at any time is not either an FNMA- or FHLMC-approved
         Seller/Servicer, and the Master Servicer has not terminated the rights
         and obligations of such Servicer under the applicable Servicing
         Agreement and replaced such Servicer with an FNMA- or FHLMC-approved
         servicer within 60 days of the date the Master Servicer receives such
         notice or actual knowledge; or

             (x)      Any failure of the Master Servicer to remit to the
         Securities Administrator any payment required to be made to the
         Securities Administrator for the benefit of Certificateholders under
         the terms of this Agreement, including any Advance, on any Deposit
         Date, which such failure continues unremedied after 1:00 p.m. Eastern
         Standard Time one Business Day after the date upon which notice of such
         failure shall have been given to the Master Servicer and the Trustee by
         the Securities Administrator.

         If an Event of Default described in clauses (i) through (ix) of this
Section 6.14 shall occur, then, in each and every case, subject to applicable
law, so long as any such Event of Default shall not have been remedied within
any period of time prescribed by this Section 6.14, the Trustee, by notice in
writing to the Master Servicer may, and shall, if so directed by
Certificateholders evidencing more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates, terminate all of the
rights and obligations of the Master Servicer hereunder and in and to the
Mortgage Loans and the proceeds thereof. If an Event of Default described in
clause (x) of this Section 6.14 shall occur, then, in each and every case,
subject to applicable law, so long as such Event of Default shall not have been
remedied within the time period prescribed by clause (x) of this Section 6.14,
the Trustee, by notice in writing to the Master Servicer, shall promptly
terminate all of the rights and obligations of the Master Servicer hereunder and
in and to the Mortgage Loans and the proceeds thereof. On or after the receipt
by the Master Servicer of such written notice, all authority and power of the
Master Servicer, and only in its capacity as Master Servicer under this

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Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass
to and be vested in the Securities Administrator and upon receipt of written
notice by the Securities Administrator from the Trustee pursuant to and under
the terms of this Agreement; and the Securities Administrator is hereby
authorized and empowered to execute and deliver, on behalf of the defaulting
Master Servicer as attorney-in-fact or otherwise, any and all documents and
other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related documents or otherwise. The defaulting Master Servicer agrees to
cooperate with the Trustee and the Securities Administrator in effecting the
termination of the defaulting Master Servicer's responsibilities and rights
hereunder as Master Servicer including, without limitation, notifying Servicers
of the assignment of the master servicing function and providing the Securities
Administrator or its designee all documents and records in electronic or other
form reasonably requested by it to enable the Securities Administrator or its
designee to assume the defaulting Master Servicer's functions hereunder and the
transfer to the Securities Administrator for administration by it of all amounts
which shall at the time be or should have been deposited by the defaulting
Master Servicer in the Collection Account maintained by such defaulting Master
Servicer and any other account or fund maintained with respect to the
Certificates or thereafter received with respect to the Mortgage Loans. The
Master Servicer being terminated shall bear all costs of a master servicing
transfer, including but not limited to those of the Trustee and Securities
Administrator reasonably allocable to specific employees and overhead, legal
fees and expenses, accounting and financial consulting fees and expenses, and
costs of amending the Agreement, if necessary. The Securities Administrator
shall be entitled to be reimbursed from the Master Servicer (or by the Trust, if
the Master Servicer is unable to fulfill its obligations hereunder) for all
costs associated with the transfer of servicing from the predecessor Master
Servicer, including, without limitation, any costs or expenses associated with
the complete transfer of all servicing data and the completion, correction or
manipulation of such servicing data as may be required by the Securities
Administrator to correct any errors or insufficiencies in the servicing data or
otherwise to enable the Securities Administrator to master service the Mortgage
Loans properly and effectively. If the terminated Master Servicer does not pay
such reimbursement within thirty (30) days of its receipt of an invoice
therefor, such reimbursement shall be an expense of the Trust and the Securities
Administrator shall be entitled to withdraw such reimbursement from amounts on
deposit in the Certificate Account pursuant to Section 4.04; provided that the
terminated Master Servicer shall reimburse the Trust for any such expense
incurred by the Trust; and provided, further, that the Trustee shall decide
whether and to what extent it is in the best interest of the Certificateholders
to pursue any remedy against any party obligated to make such reimbursement.

         Notwithstanding the termination of its activities as Master Servicer,
each terminated Master Servicer shall continue to be entitled to reimbursement
to the extent provided in Section 4.02(i), (ii), (iii), (iv), (v), (vi), (vii),
(ix) and (xi) to the extent such reimbursement relates to the period prior to
such Master Servicer's termination.

         If any Event of Default shall occur of which a Responsible Officer of
the Trustee has actual knowledge, the Trustee, upon becoming aware of the
occurrence thereof through the proper execution of its duties under this
Agreement, shall promptly notify the Securities Administrator and the Rating
Agencies of the nature and extent of such Event of Default. The Trustee or the
Securities Administrator shall immediately give written notice to the Master
Servicer upon such Master Servicer's failure to remit funds on the Deposit Date.

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         (b) On and after the time the Master Servicer receives a notice of
termination from the Trustee pursuant to Section 6.14(a) or the Trustee receives
the resignation of the Master Servicer evidenced by an Opinion of Counsel
pursuant to Section 9.28 and within a period of time not to exceed 90 days after
the Securities Administrator receives written notice from the Trustee pursuant
to Section 6.14(a) or Section 9.28, the Securities Administrator, unless another
master servicer shall have been appointed, shall be the successor in all
respects to the Master Servicer in its capacity as such under this Agreement and
the transactions set forth or provided for herein and shall have all the rights
and powers and be subject to all the responsibilities, duties and liabilities
relating thereto and arising thereafter placed on the Master Servicer hereunder,
including the obligation to make Advances; provided, however, that any failure
to perform such duties or responsibilities caused by the Master Servicer's or
the Trustee's failure to provide information required by this Agreement shall
not be considered a default by the Securities Administrator hereunder. In
addition, the Securities Administrator shall have no responsibility for any act
or omission of the Master Servicer prior to the issuance of any notice of
termination and within a period of time not to exceed 90 days after the
Securities Administrator receives written notice from the Trustee pursuant to
Section 6.14(a) or Section 9.28, as applicable. The Securities Administrator
shall have no liability relating to the representations and warranties of the
Master Servicer set forth in Section 9.14. In the Securities Administrator's
capacity as such successor, the Securities Administrator shall have the same
limitations on liability herein granted to the Master Servicer. As compensation
therefor, the Securities Administrator shall be entitled to receive all
compensation payable to the Master Servicer under this Agreement, including the
Master Servicing Fee. The Securities Administrator shall be entitled to be
reimbursed from the Master Servicer (or by the Trust Fund if the Master Servicer
is unable to fulfill its obligations hereunder) for all costs associated with
the transfer of master servicing from the prececessor master servicer,
including, without limitation, any costs or expenses associated with the
complete transfer of all master servicing data and the completion, correction or
manipulation of such master servicing data as may be required by the Securities
Administrator to correct any errors or insufficiencies in the master servicing
data or otherwise to enable the Securities Administrator to master service the
Mortgage Loans properly and effectively.

         (c) Notwithstanding the above, the Securities Administrator may, if it
shall be unwilling to continue to so act, or shall, if it is unable to so act,
request the Trustee to appoint, petition a court of competent jurisdiction to
appoint, or appoint on its own behalf any established housing and home finance
institution servicer, master servicer, servicing or mortgage servicing
institution having a net worth of not less than $15,000,000 and meeting such
other standards for a successor master servicer as are set forth in this
Agreement, as the successor to such Master Servicer in the assumption of all of
the responsibilities, duties or liabilities of a master servicer, like the
Master Servicer. Any entity designated by the Trustee or the Securities
Administrator as a successor master servicer may be an Affiliate of the Trustee
or the Securities Administrator; provided, however, that, unless such Affiliate
meets the net worth requirements and other standards set forth herein for a
successor master servicer, the Trustee or the Securities Administrator, in its
individual capacity shall agree, at the time of such designation, to be and
remain liable to the Trust Fund for such Affiliate's actions and omissions in
performing its duties hereunder. In connection with such appointment and
assumption, the Trustee or the Securities Administrator may make such

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arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted to the Master Servicer
hereunder. The Trustee, the Securities Administrator and such successor shall
take such actions, consistent with this Agreement, as shall be necessary to
effectuate any such succession and may make other arrangements with respect to
the servicing to be conducted hereunder which are not inconsistent herewith. The
Master Servicer shall cooperate with the Trustee, the Securities Administrator
and any successor master servicer in effecting the termination of the Master
Servicer's responsibilities and rights hereunder including, without limitation,
notifying Mortgagors of the assignment of the master servicing functions and
providing the Securities Administrator and successor master servicer, as
applicable, all documents and records in electronic or other form reasonably
requested by it to enable it to assume the Master Servicer's functions hereunder
and the transfer to the Trustee, the Securities Administrator or such successor
master servicer, as applicable, all amounts which shall at the time be or should
have been deposited by the Master Servicer in the Collection Account and any
other account or fund maintained with respect to the Certificates or thereafter
be received with respect to the Mortgage Loans. Neither the Trustee, the
Securities Administrator nor any other successor master servicer shall be deemed
to be in default hereunder by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof caused by (i) the
failure of the Master Servicer to deliver, or any delay in delivering, cash,
documents or records to it, (ii) the failure of the Master Servicer to cooperate
as required by this Agreement, (iii) the failure of the Master Servicer to
deliver the Mortgage Loan data to the Securities Administrator as required by
this Agreement or (iv) restrictions imposed by any regulatory authority having
jurisdiction over the Master Servicer. Neither the Securities Administrator nor
any other successor master servicer shall be deemed to be in default hereunder
by reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof caused by (i) the failure of the terminated
Master Servicer to deliver, or any delay in delivering cash, documents or
records to it, or (ii) the failure of the terminated Master Servicer to
cooperate as required by this Agreement.

         Section 6.15. Additional Remedies of Trustee Upon Event of Default.

         During the continuance of any Event of Default, so long as such Event
of Default shall not have been remedied, the Trustee, in addition to the rights
specified in Section 6.14, shall have the right, in its own name and as trustee
of an express trust, to take all actions now or hereafter existing at law, in
equity or by statute to enforce its rights and remedies and to protect the
interests, and enforce the rights and remedies, of the Certificateholders
(including the institution and prosecution of all judicial, administrative and
other proceedings and the filings of proofs of claim and debt in connection
therewith). Except as otherwise expressly provided in this Agreement, no remedy
provided for by this Agreement shall be exclusive of any other remedy, and each
and every remedy shall be cumulative and in addition to any other remedy, and no
delay or omission to exercise any right or remedy shall impair any such right or
remedy or shall be deemed to be a waiver of any Event of Default.

         Section 6.16. Waiver of Defaults.

         35% or more of the Aggregate Voting Interests of Certificateholders may
waive any default or Event of Default by the Master Servicer in the performance
of its obligations hereunder, except that a default in the making of any
required deposit to the Certificate Account that would result in a failure of
the Trustee to make any required payment of principal of or interest on the
Certificates may only be waived with the consent of 100% of the affected
Certificateholders. Upon any such waiver of a past default, such default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent thereon
except to the extent expressly so waived.

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         Section 6.17. Notification to Holders.

         Upon termination of the Master Servicer or appointment of a successor
to the Master Servicer, in each case as provided herein, the Trustee shall
promptly mail notice thereof by first class mail to the Securities Administrator
and the Certificateholders at their respective addresses appearing on the
Certificate Register. The Trustee shall also, within 45 days after the
occurrence of any Event of Default known to a Responsible Officer of the
Trustee, give written notice thereof to the Securities Administrator and the
Certificateholders, unless such Event of Default shall have been cured or waived
prior to the issuance of such notice and within such 45-day period.

         Section 6.18. Directions by Certificateholders and Duties of Trustee
During Event of Default.

         Subject to the provisions of Section 8.01 hereof, during the
continuance of any Event of Default, Holders of Certificates evidencing not less
than 25% of the Class Principal Amount (or Class Notional Amount) of each Class
of Certificates may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Agreement; provided, however, that
the Trustee shall be under no obligation to pursue any such remedy, or to
exercise any of the trusts or powers vested in it by this Agreement (including,
without limitation, (i) the conducting or defending of any administrative action
or litigation hereunder or in relation hereto and (ii) the terminating of the
Master Servicer or any successor master servicer from its rights and duties as
master servicer hereunder) at the request, order or direction of any of the
Certificateholders, unless such Certificateholders shall have offered to the
Trustee reasonable security or indemnity against the cost, expenses and
liabilities which may be incurred therein or thereby; and, provided further,
that, subject to the provisions of Section 8.01, the Trustee shall have the
right to decline to follow any such direction if the Trustee, in accordance with
an Opinion of Counsel, determines that the action or proceeding so directed may
not lawfully be taken or if the Trustee in good faith determines that the action
or proceeding so directed would involve it in personal liability or be unjustly
prejudicial to the non-assenting Certificateholders.

         Section 6.19. Action Upon Certain Failures of the Master Servicer and
Upon Event of Default.

         In the event that a Responsible Officer of the Trustee shall have
actual knowledge of any action or inaction of the Master Servicer that would
become an Event of Default upon the Master Servicer's failure to remedy the same
after notice, the Trustee shall give notice thereof to the Master Servicer. For
all purposes of this Agreement, in the absence of actual knowledge by a
Responsible Officer of the Trustee, the Trustee shall not be deemed to have
knowledge of any failure of the Master Servicer or any other Event of Default
unless notified in writing by the Depositor, the Securities Administrator, the
Master Servicer or a Certificateholder.

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         Section 6.20. Preparation of SEC Reports.

         (a) The Depositor shall prepare or cause to be prepared the initial
current report on Form 8-K. Thereafter, within 15 days after each Distribution
Date, the Securities Administrator shall, in accordance with industry standards,
file with the Securities and Exchange Commission (the "Commission") via the
Electronic Data Gathering and Retrieval System (EDGAR), a Form 8-K with a copy
of the statement to the Certificateholders for such Distribution Date as an
exhibit thereto. Prior to January 31, 2004, the Securities Administrator shall,
in accordance with industry standards, file a Form 15 Suspension Notification
with respect to the Trust Fund, if applicable. Prior to March 31, 2004, the
Securities Administrator shall file (but will not execute) a Form 10-K, in
substance conforming to industry standards, with respect to the Trust Fund. The
Form 10-K shall include the certification required pursuant to Rule 13a-14 under
the Securities and Exchange Act of 1934, as amended (the "Form 10-K
Certification") signed by an appropriate party or parties (which Form 10-K
Certification the Securities Administrator shall not be required to sign). The
Depositor hereby grants to the Securities Administrator a limited power of
attorney to execute and file each such document on behalf of the Depositor. Such
power of attorney shall continue until either the earlier of (i) receipt by the
Securities Administrator from the Depositor of written termination of such power
of attorney and (ii) the termination of the Trust Fund. The Depositor agrees to
promptly furnish to the Securities Administrator, from time to time upon
request, such further information, reports, and financial statements within its
control related to this Agreement and the Mortgage Loans as the Securities
Administrator reasonably deems appropriate to prepare and file all necessary
reports with the Commission. The Securities Administrator shall have no
responsibility to file any items other than those specified in this section and
the Trustee shall have no responsibility whatsoever under this Section 6.20(a).

         (b) If so requested, the Securities Administrator shall sign a
certification (in the form attached hereto as Exhibit M) for the benefit of the
Person(s) signing the Form 10-K Certification regarding certain aspects of such
Form 10-K Certification (provided, however, that the Securities Administrator
shall not be required to undertake an analysis of the accountant's report
attached as an exhibit to the Form 10-K), which certification shall be delivered
to such Person(s) not later than five Business Days prior to the date on which
the Form 10-K is required to be filed with the Commission.

         (c) If so requested, the Master Servicer shall sign a certification for
the benefit of the Person(s) signing the Form 10-K Certification regarding
certain aspects of such Form 10-K Certification (provided, however, that the
Master Servicer shall not be required to undertake an analysis of the
accountant's report attached as an exhibit to the Form 10-K).

         (d) Each person (including their officers or directors) that signs any
Form 10-K Certification shall be entitled to indemnification from the Trust Fund
for any liability or expense incurred by it in connection with such
certification, other than any liability or expense attributable to such Person's
own bad faith, negligence or willful misconduct. The provisions of this
subsection shall survive any termination of this Agreement and the resignation
or removal of such Person.

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                                  ARTICLE VII

                            PURCHASE AND TERMINATION
                                OF THE TRUST FUND

         Section 7.01. Termination of Trust Fund Upon Repurchase or Liquidation
of All Mortgage Loans.

         (a) The respective obligations and responsibilities of the Trustee, the
Securities Administrator and the Master Servicer created hereby (other than the
obligation of the Trustee to make payments to Certificateholders as set forth in
Section 7.02, the obligation of the Master Servicer to make a final remittance
to the Securities Administrator for deposit into the Certificate Account
pursuant to Section 4.01 and the obligations of the Master Servicer to the
Securities Administrator and Trustee pursuant to Sections 9.10 and 9.14), shall
terminate on the earlier of (i) the final payment or other liquidation of the
last Mortgage Loan remaining in the Trust Fund and the disposition of all REO
Property and (ii) the sale of all remaining property held by the Trust Fund in
accordance with Section 7.01(b); provided, however, that in no event shall the
Trust Fund created hereby continue beyond the expiration of 21 years from the
death of the last survivor of the descendants of Joseph P. Kennedy, the late
Ambassador of the United States to the Court of St. James's, living on the date
hereof. Any termination of the Trust Fund shall be carried out in such a manner
so that the termination of each REMIC included therein shall qualify as a
"qualified liquidation" under the REMIC Provisions.

         (b) On any Distribution Date occurring after the date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans in the Trust Fund is
less than 10% of the Principal Balance of the Mortgage Loans in the Trust Fund
(determined in the aggregate rather than by pool) as of the Cut-off Date, the
Master Servicer may, upon written direction to the Trustee, cause the Trustee to
sell (or arrange for the sale of) the assets of the Trust Fund. Upon the
repurchase of the Mortgage Loans in the Trust Fund, the Master Servicer shall,
upon written direction to the Trustee, cause each REMIC included in the Trust
Fund to adopt a plan of complete liquidation pursuant to Section 7.03 hereof to
sell all of its property. The property of the Trust Fund shall be sold at a
price (the "Repurchase Price") equal to: (i) 100% of the unpaid principal
balance of each Mortgage Loan on the day of such purchase plus interest accrued
thereon at the applicable Mortgage Rate with respect to any Mortgage Loan to the
Due Date in the Due Period immediately preceding the related Distribution Date
to the date of such repurchase, (ii) the fair market value of any REO Property
and any other property held by any REMIC, such fair market value to be
determined by an appraiser or appraisers appointed by the Master Servicer with
the consent of the Trustee, (iii) any unreimbursed Servicing Advances with
respect to each Mortgage Loan and (iv) any costs and damages incurred by the
Trust Fund in connection with any violation by any Mortgage Loan of any
predatory- or abusive-lending law. Upon the repurchase of the Mortgage Loans,
the Trust Fund shall terminate in accordance with the terms of this Agreement.

         Section 7.02. Procedure Upon Termination of Trust Fund.

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         (a) Notice of any termination pursuant to the provisions of Section
7.01, specifying the Distribution Date upon which the final distribution shall
be made, shall be given promptly by the Trustee by first class mail to
Certificateholders mailed (x) no later than five Business Days after the Trustee
has received notice from the Master Servicer of its intent to exercise its right
to cause the termination of the Trust Fund pursuant to Section 7.01(b) or (y)
upon the final payment or other liquidation of the last Mortgage Loan or REO
Property in the Trust Fund. Such notice shall specify (A) the Distribution Date
upon which final distribution on the Certificates of all amounts required to be
distributed to Certificateholders pursuant to Section 5.02 will be made upon
presentation and surrender of the Certificates at the Corporate Trust Office,
and (B) that the Record Date otherwise applicable to such Distribution Date is
not applicable, distribution being made only upon presentation and surrender of
the Certificates at the office or agency of the Trustee therein specified. The
Trustee shall give such notice to the Securities Administrator, the Master
Servicer, the Depositor and the Certificate Registrar at the time such notice is
given to Holders of the Certificates. Upon any such termination, the duties of
the Certificate Registrar with respect to the Certificates shall terminate and
the Trustee shall terminate, or request the Master Servicer to terminate, the
Collection Account it maintains, the Certificate Account and any other account
or fund maintained with respect to the Certificates, subject to the Trustee's
obligation hereunder to hold all amounts payable to Certificateholders in trust
without interest pending such payment.

         (b) In the event that all of the Holders do not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee may take appropriate steps to contact
the remaining Certificateholders concerning surrender of such Certificates, and
the cost thereof shall be paid out of the amounts distributable to such Holders.
If within two years after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee shall, subject to applicable state law
relating to escheatment, hold all amounts distributable to such Holders for the
benefit of such Holders. No interest shall accrue on any amount held by the
Trustee and not distributed to a Certificateholder due to such
Certificateholder's failure to surrender its Certificate(s) for payment of the
final distribution thereon in accordance with this Section.

         (c) Any reasonable expenses incurred by the Trustee and the Securities
Administrator in connection with any termination or liquidation of the Trust
Fund shall be paid from proceeds received from the liquidation of the Trust
Fund, but only to the extent that such expenses constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

         Section 7.03. Additional Requirements under the REMIC Provisions.

         (a) Any termination of the Trust Fund shall be effected in accordance
with the following additional requirements, unless the Trustee seeks (at the
request of the Master Servicer), and subsequently receives, an Opinion of
Counsel (at the expense of the Master Servicer), addressed to the Trustee to the
effect that the failure of the Trust Fund to comply with the requirements of
this Section 7.03 will not (i) result in the imposition of taxes on any REMIC
under the REMIC Provisions or (ii) cause any REMIC established hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding:

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             (i)      The Trustee shall sell all of the assets of the Trust Fund
         for cash and, within 90 days of such sale, shall distribute the
         proceeds of such sale to the Certificateholders in complete liquidation
         of the Trust Fund, the Lower Tier REMIC, the Middle Tier REMIC and the
         Upper Tier REMIC; and

             (ii)     The Securities Administrator shall attach a statement to
         the final Federal income tax return for each of the Lower Tier REMIC,
         the Middle Tier REMIC and the Upper Tier REMIC stating that pursuant to
         Treasury Regulation ss. 1.860F-1, the first day of the 90-day
         liquidation period for each such REMIC was the date on which the
         Trustee sold the assets of the Trust Fund.

         (b) By its acceptance of a Residual Certificate, each Holder thereof
hereby (i) authorizes the Trustee and the Securities Administrator to take the
action described in paragraph (a) above and (ii) agrees to take such other
action as may be necessary to facilitate liquidation of each REMIC created under
this Agreement, which authorization shall be binding upon all successor Residual
Certificateholders.

                                  ARTICLE VIII

                          RIGHTS OF CERTIFICATEHOLDERS

         Section 8.01. Limitation on Rights of Holders.

         (a) The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or this Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or
take any action or proceeding in any court for a partition or winding up of this
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them. Except as otherwise expressly provided herein, no
Certificateholder, solely by virtue of its status as a Certificateholder, shall
have any right to vote or in any manner otherwise control the Master Servicer or
the operation and management of the Trust Fund, or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Certificates, be construed so as to constitute the Certificateholders
from time to time as partners or members of an association, nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

         (b) No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless
also the Holders of Certificates evidencing not less than 25% of the Class
Principal Amount (or Class Notional Amount) of Certificates of each Class shall
have made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the

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Trustee such reasonable indemnity as it may require against the cost, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for sixty
days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding and
no direction inconsistent with such written request has been given such Trustee
during such sixty-day period by such Certificateholders; it being understood and
intended, and being expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing of any provision of this Agreement to affect, disturb or prejudice the
rights of the Holders of any other of such Certificates, or to obtain or seek to
obtain priority over or preference to any other such Holder, or to enforce any
right under this Agreement, except in the manner herein provided and for the
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section, each and every Certificateholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

         Section 8.02. Access to List of Holders.

         (a) If the Trustee is not acting as Certificate Registrar, the
Certificate Registrar will furnish or cause to be furnished to the Trustee,
within fifteen days after receipt by the Certificate Registrar of a request by
the Trustee in writing, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Certificateholders of each Class as
of the most recent Record Date.

         (b) If three or more Holders or Certificate Owners (hereinafter
referred to as "Applicants") apply in writing to the Trustee, and such
application states that the Applicants desire to communicate with other Holders
with respect to their rights under this Agreement or under the Certificates and
is accompanied by a copy of the communication which such Applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, afford such Applicants reasonable access during the normal
business hours of the Trustee to the most recent list of Certificateholders held
by the Trustee or shall, as an alternative, send, at the Applicants' expense,
the written communication proffered by the Applicants to all Certificateholders
at their addresses as they appear in the Certificate Register.

         (c) Every Holder or Certificate Owner, if the Holder is a Clearing
Agency, by receiving and holding a Certificate, agrees with the Depositor, the
Securities Administrator, the Master Servicer, the Certificate Registrar and the
Trustee that neither the Depositor, the Securities Administrator, the Master
Servicer, the Certificate Registrar nor the Trustee shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Certificateholders hereunder, regardless of the source from which such
information was derived.

         Section 8.03. Acts of Holders of Certificates.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Agreement to be given or taken by
Holders or Certificate Owner, if the Holder is a Clearing Agency, may be
embodied in and evidenced by one or more instruments of substantially similar

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tenor signed by such Holders in person or by agent 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 Trustee, the
Securities Administrator and, where expressly required herein, to the Master
Servicer. Such instrument or instruments (as the action embodies therein and
evidenced thereby) are herein sometimes referred to as an "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agents shall be sufficient for
any purpose of this Agreement and conclusive in favor of the Trustee, the
Securities Administrator and Master Servicer, if made in the manner provided in
this Section. Each of the Trustee, the Securities Administrator and Master
Servicer shall promptly notify the others of receipt of any such instrument by
it, and shall promptly forward a copy of such instrument to the others.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments or deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by an officer of a corporation or a member of a partnership on
behalf of such corporation or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the individual
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

         (c) The ownership of Certificates (whether or not such Certificates
shall be overdue and notwithstanding any notation of ownership or other writing
thereon made by anyone other than the Trustee) shall be proved by the
Certificate Register, and neither the Trustee, the Securities Administrator, the
Master Servicer nor the Depositor shall be affected by any notice to the
contrary.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Certificate shall bind every future
Holder of the same Certificate and the Holder of every Certificate issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Trustee, the
Securities Administrator or the Master Servicer in reliance thereon, whether or
not notation of such action is made upon such Certificate.

                                   ARTICLE IX

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
                             BY THE MASTER SERVICER

         Section 9.01. Duties of the Master Servicer.

         The Certificateholders, by their purchase and acceptance of the
Certificates, appoint Aurora Loan Services Inc., as Master Servicer. For and on
behalf of the Depositor, the Trustee and the Certificateholders, the Master
Servicer shall master service the Mortgage Loans in accordance with the
provisions of this Agreement and the provisions of the applicable Servicing
Agreement.

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         Section 9.02. Master Servicer Fidelity Bond and Master Servicer Errors
and Omissions Insurance Policy.

         (a) The Master Servicer, at its expense, shall maintain in effect a
Fidelity Bond and an Errors and Omissions Insurance Policy, affording coverage
with respect to all directors, officers, employees and other Persons acting on
such Master Servicer's behalf, and covering errors and omissions in the
performance of the Master Servicer's obligations hereunder. The Errors and
Omissions Insurance Policy and the Fidelity Bond shall be in such form and
amount that would meet the requirements of FNMA or FHLMC if it were the
purchaser of the Mortgage Loans. The Master Servicer shall (i) require each
Servicer to maintain an Errors and Omissions Insurance Policy and a Fidelity
Bond in accordance with the provisions of the applicable Servicing Agreement,
(ii) cause each Servicer to provide to the Master Servicer certificates
evidencing that such policy and bond is in effect and to furnish to the Master
Servicer any notice of cancellation, non-renewal or modification of the policy
or bond received by it, as and to the extent provided in the applicable
Servicing Agreement, and (iii) furnish copies of the certificates and notices
referred to in clause (ii) to the Trustee upon its request. The Fidelity Bond
and Errors and Omissions Insurance Policy may be obtained and maintained in
blanket form.

         (b) The Master Servicer shall promptly report to the Trustee any
material changes that may occur in the Master Servicer Fidelity Bond or the
Master Servicer Errors and Omissions Insurance Policy and shall furnish to the
Trustee, on request, certificates evidencing that such bond and insurance policy
are in full force and effect. The Master Servicer shall promptly report to the
Trustee all cases of embezzlement or fraud, if such events involve funds
relating to the Mortgage Loans. The total losses, regardless of whether claims
are filed with the applicable insurer or surety, shall be disclosed in such
reports together with the amount of such losses covered by insurance. If a bond
or insurance claim report is filed with any of such bonding companies or
insurers, the Master Servicer shall promptly furnish a copy of such report to
the Trustee. Any amounts relating to the Mortgage Loans collected by the Master
Servicer under any such bond or policy shall be promptly remitted by the Master
Servicer to the Trustee for deposit into the Certificate Account. Any amounts
relating to the Mortgage Loans collected by any Servicer under any such bond or
policy shall be remitted to the Master Servicer to the extent provided in the
applicable Servicing Agreement.

         Section 9.03. Master Servicer's Financial Statements and Related
Information.

         For each year this Agreement is in effect, the Master Servicer shall
submit to the Trustee, each Rating Agency and the Depositor a copy of its annual
unaudited financial statements on or prior to the last day of February of each
year commencing on February 28, 2004. Such financial statements shall include a
balance sheet, income statement, statement of retained earnings, statement of
additional paid-in capital, statement of changes in financial position and all
related notes and schedules and shall be in comparative form, certified by a
nationally recognized firm of Independent Accountants to the effect that such
statements were examined and prepared in accordance with generally accepted
accounting principles applied on a basis consistent with that of the preceding
year.

         Section 9.04. Power to Act; Procedures.

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         (a) The Master Servicer shall master service the Mortgage Loans and
shall have full power and authority, subject to the REMIC Provisions and the
provisions of Article X hereof, and each Servicer shall have full power and
authority (to the extent provided in the applicable Servicing Agreement) to do
any and all things that it may deem necessary or desirable in connection with
the servicing and administration of the Mortgage Loans, including but not
limited to the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the applicable Servicing Agreement, as applicable; provided
that the Master Servicer shall not take, or knowingly permit any Servicer to
take, any action that is inconsistent with or prejudices the interests of the
Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee and the Certificateholders under this
Agreement. The Master Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of any Servicer, when the Master Servicer or a Servicer, as the case
may be, believes it is appropriate in its best judgment to register any Mortgage
Loan with MERS, or cause the removal from the registration of any Mortgage Loan
on the MERS system, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording of
a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns. The Master Servicer shall represent and protect the
interests of the Trust Fund in the same manner as it protects its own interests
in mortgage loans in its own portfolio in any claim, proceeding or litigation
regarding a Mortgage Loan and shall not make or knowingly permit any Servicer to
make any modification, waiver or amendment of any term of any Mortgage Loan that
would cause any REMIC included in the Trust Fund to fail to qualify as a REMIC
or result in the imposition of any tax under Section 860F(a) or Section 860G(d)
of the Code. Without limiting the generality of the foregoing, the Master
Servicer in its own name or in the name of a Servicer, and each Servicer, to the
extent such authority is delegated to such Servicer by the Master Servicer under
the applicable Servicing Agreement, is hereby authorized and empowered by the
Trustee when the Master Servicer or a Servicer, as the case may be, believes it
appropriate in its best judgment and in accordance with Accepted Servicing
Practices and the applicable Servicing Agreement, to execute and deliver, on
behalf of itself and the Certificateholders, the Trustee or any of them, any and
all instruments of satisfaction or cancellation, or of partial or full release
or discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties. The Trustee shall furnish
the Master Servicer or a Servicer, upon request, with any powers of attorney
prepared by the Master Servicer or such Servicer empowering the Master Servicer
or such Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Mortgage Loans or the Mortgaged Property, in
accordance with the applicable Servicing Agreement and this Agreement, and the
Trustee shall execute and deliver such other documents, as the Master Servicer
may request, necessary or appropriate to enable the Master Servicer to master
service the Mortgage Loans and carry out its duties hereunder and to allow each

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Servicer to service the Mortgage Loans, in each case in accordance with Accepted
Servicing Practices (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Master Servicer or the applicable Servicer). If
the Master Servicer or the Trustee has been advised that it is likely that the
laws of the state in which action is to be taken prohibit such action if taken
in the name of the Trustee or that the Trustee would be adversely affected under
the "doing business" or tax laws of such state if such action is taken in its
name, then upon request of the Trustee, the Master Servicer shall join with the
Trustee in the appointment of a co-trustee pursuant to Section 6.09 hereof. In
the performance of its duties hereunder, the Master Servicer shall be an
independent contractor and shall not, except in those instances where it is
taking action in the name of the Trustee, be deemed to be the agent of the
Trustee.

         (b) In master servicing and administering the Mortgage Loans, the
Master Servicer shall employ procedures and exercise the same care that it
customarily employs and exercises in master servicing and administering loans
for its own account, giving due consideration to Accepted Servicing Practices
where such practices do not conflict with this Agreement. Consistent with the
foregoing, the Master Servicer may, and may permit any Servicer to, in its
discretion (i) waive any late payment charge or any prepayment charge or penalty
interest in connection with the prepayment of a Mortgage Loan and (ii) extend
the due dates for payments due on a Mortgage Note for a period not greater than
120 days; provided, however, that the maturity of any Mortgage Loan shall not be
extended past the date on which the final payment is due on the latest maturing
Mortgage Loan as of the Cut-off Date. In the event of any extension described in
clause (ii) above, the Master Servicer shall make or cause to be made Advances
on the related Mortgage Loan in accordance with the provisions of Section 5.04
on the basis of the amortization schedule of such Mortgage Loan without
modification thereof by reason of such extension. Notwithstanding anything to
the contrary in this Agreement, the Master Servicer shall not, unless default by
the related Mortgagor is, in the reasonable judgment of the Master Servicer or
the related Servicer, reasonably foreseeable, make or knowingly permit such
Servicer to make any modification, waiver or amendment of any material term of
any Mortgage Loan (including but not limited to the interest rate, the principal
balance, the amortization schedule, or any other term affecting the amount or
timing of payments on the Mortgage Loan or the collateral therefor) unless the
Master Servicer or the related Servicer shall have provided or caused to be
provided to the Trustee an Opinion of Counsel (at the expense of the party
seeking the modification) in writing to the effect that such modification,
waiver or amendment would not be treated as giving rise to a new debt instrument
for federal income tax purposes and would not adversely affect the status of any
REMIC provided for herein.

         Section 9.05. Servicing Agreements Between the Master Servicer and
Servicers; Enforcement of Servicers' Obligations.

         (a) Each Servicing Agreement requires the applicable Servicer to
service the Mortgage Loans in accordance with the provisions thereof. References
in this Agreement to actions taken or to be taken by the Master Servicer include
such actions taken or to be taken by a Servicer pursuant to a Servicing
Agreement. Any fees, costs and expenses and other amounts payable to such
Servicers shall be deducted from amounts remitted to the Master Servicer by the
applicable Servicer (to the extent permitted by the applicable Servicing
Agreement) and shall not be an obligation of the Trust, the Trustee or the
Master Servicer.

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         (b) The Master Servicer shall not be required to (i) take any action
with respect to the servicing of any Mortgage Loan that the related Servicer is
not required to take under the related Servicing Agreement and (ii) cause a
Servicer to take any action or refrain from taking any action if the related
Servicing Agreement does not require the Servicer to take such action or refrain
from taking such action; in both cases notwithstanding any provision of this
Agreement that requires the Master Servicer to take such action or cause the
Servicer to take such action.

         (c) The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of each Servicer under the
related Servicing Agreement, and shall use its reasonable best efforts to
enforce the obligations of each Servicer under the related Servicing Agreement
and shall, upon its obtaining actual knowledge of the failure of a Servicer to
perform its obligations in accordance with the related Servicing Agreement, to
the extent that the non-performance of any such obligations would have a
material adverse effect on a Mortgage Loan, the Trust Fund or
Certificateholders, terminate the rights and obligations of such Servicer
thereunder to the extent and in the manner permitted by the related Servicing
Agreement and either act as servicer of the related Mortgage Loans or enter into
a Servicing Agreement with a successor Servicer. Such enforcement, including,
without limitation, the legal prosecution of claims, termination of Servicing
Agreements and the pursuit of other appropriate remedies, shall be in such form
and carried out to such an extent and at such time as the Master Servicer, in
its good faith business judgment, would require were it the owner of the related
Mortgage Loans. The Master Servicer shall pay the costs of such enforcement at
its own expense, and shall be reimbursed therefor initially only (i) from a
general recovery resulting from such enforcement only to the extent, if any,
that such recovery exceeds all amounts due in respect of the related Mortgage
Loans or (ii) from a specific recovery of costs, expenses or attorneys' fees
against the party against whom such enforcement is directed, and then, to the
extent that such amounts are insufficient to reimburse the Master Servicer for
the costs of such enforcement, (iii) from the Collection Account.

         Section 9.06. Collection of Taxes, Assessments and Similar Items.

         (a) To the extent provided in the applicable Servicing Agreement, the
Master Servicer shall cause each Servicer to establish and maintain one or more
custodial accounts at a depository institution (which may be a depository
institution with which the Master Servicer or any Servicer establishes accounts
in the ordinary course of its servicing activities), the accounts of which are
insured to the maximum extent permitted by the FDIC (each, an "Escrow Account")
and shall deposit therein any collections of amounts received with respect to
amounts due for taxes, assessments, water rates, Standard Hazard Insurance
Policy premiums or any comparable items for the account of the Mortgagors.
Withdrawals from any Escrow Account may be made (to the extent amounts have been
escrowed for such purpose) only in accordance with the applicable Servicing
Agreement. Each Servicer shall be entitled to all investment income not required
to be paid to Mortgagors on any Escrow Account maintained by such Servicer. The
Master Servicer shall make (or cause to be made) to the extent provided in the
applicable Servicing Agreement advances to the extent necessary in order to
effect timely payment of taxes, water rates, assessments, Standard Hazard
Insurance Policy premiums or comparable items in connection with the related
Mortgage Loan (to the extent that the Mortgagor is required, but fails, to pay
such items), provided that it has determined that the funds so advanced are
recoverable from escrow payments, reimbursement pursuant to Section 4.02(v) or
otherwise.

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         (b) Costs incurred by the Master Servicer or by Servicers in effecting
the timely payment of taxes and assessments on the properties subject to the
Mortgage Loans may be added to the amount owing under the related Mortgage Note
where the terms of the Mortgage Note so permit; provided, however, that the
addition of any such cost shall not be taken into account for purposes of
calculating the distributions to be made to Certificateholders. Such costs, to
the extent that they are unanticipated expenses within the meaning of Treasury
Regulations Section 1.860G-1(b)(3)(ii) shall be recoverable by the Master
Servicer pursuant to Section 4.02(v).

         Section 9.07. Termination of Servicing Agreements; Successor Servicers.

         (a) The Master Servicer shall be entitled to terminate the rights and
obligations of any Servicer under the applicable Servicing Agreement in
accordance with the terms and conditions of such Servicing Agreement and without
any limitation by virtue of this Agreement; provided, however, that in the event
of termination of any Servicing Agreement by the Master Servicer or the related
Servicer, the Master Servicer shall either act as Servicer of the related
Mortgage Loans, or enter into a Servicing Agreement with a successor Servicer.

         (b) If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces. The Master Servicer shall use reasonable efforts to have the
successor Servicer assume liability for the representations and warranties made
by the terminated Servicer in respect of the related Mortgage Loans, and in the
event of any such assumption by the successor Servicer, the Trustee or the
Master Servicer, as applicable, may, in the exercise of its business judgment,
release the terminated Servicer from liability for such representations and
warranties.

         Section 9.08. Master Servicer Liable for Enforcement.

         Notwithstanding any Servicing Agreement, the Master Servicer shall
remain obligated and liable to the Trustee and the Certificateholders in
accordance with the provisions of this Agreement, to the extent of its
obligations hereunder, without diminution of such obligation or liability by
virtue of such Servicing Agreements or arrangements. The Master Servicer shall
use commercially reasonable efforts to ensure that the Mortgage Loans are
serviced in accordance with the provisions of this Agreement and shall use
commercially reasonable efforts to enforce the provisions of each Servicing
Agreement for the benefit of the Certificateholders. The Master Servicer shall
be entitled to enter into any agreement with the Servicers for indemnification
of the Master Servicer and nothing contained in this Agreement shall be deemed
to limit or modify such indemnification. Except as expressly set forth herein,
the Master Servicer shall have no liability for the acts or omissions of any
Servicer in the performance by such Servicer of its obligations under the
related Servicing Agreement.

         Section 9.09. No Contractual Relationship Between Servicers and Trustee
or Depositor.

         Any Servicing Agreement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Servicer in
its capacity as such and not as an originator shall be deemed to be between such
Servicer, the Seller and the Master Servicer, and the Trustee, the Securities
Administrator and the Depositor shall not be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to such
Servicer except as set forth in Section 9.10 hereof.

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         Section 9.10. Assumption of Servicing Agreement by Securities
Administrator.

         (a) In the event the Master Servicer shall for any reason no longer be
the Master Servicer (including by reason of any Event of Default under this
Agreement), after a period not to exceed ninety days after the Securities
Administrator receives written notice from the Trustee pursuant to Section 6.14
or Section 9.28, as applicable, the Securities Administrator shall thereupon
assume all of the rights and obligations of such Master Servicer hereunder and
enforce the rights under each Servicing Agreement entered into with respect to
the Mortgage Loans. The Securities Administrator, its designee or any successor
master servicer appointed by the Securities Administrator or the Trustee shall
be deemed to have assumed all of the Master Servicer's interest herein and
therein to the same extent as if such Servicing Agreement had been assigned to
the assuming party, except that the Master Servicer shall not thereby be
relieved of any liability or obligations of the Master Servicer under such
Servicing Agreement accruing prior to its replacement as Master Servicer, and
shall be liable to the Securities Administrator, and hereby agrees to indemnify
and hold harmless the Securities Administrator from and against all costs,
damages, expenses and liabilities (including reasonable attorneys' fees)
incurred by the Securities Administrator as a result of such liability or
obligations of the Master Servicer and in connection with the Securities
Administrator's assumption (but not its performance, except to the extent that
costs or liability of the Securities Administrator are created or increased as a
result of negligent or wrongful acts or omissions of the Master Servicer prior
to its replacement as Master Servicer) of the Master Servicer's obligations,
duties or responsibilities thereunder; provided that the Master Servicer shall
not indemnify or hold harmless the Securities Administrator against negligent or
willful misconduct of the Securities Administrator.

         (b) The Master Servicer that has been terminated shall, upon request of
the Securities Administrator but at the expense of such Master Servicer or at
the expense of the Trust Fund, deliver to the assuming party all documents and
records relating to each Servicing Agreement and the related Mortgage Loans and
an accounting of amounts collected and held by it and otherwise use its best
efforts to effect the orderly and efficient transfer of each Servicing Agreement
to the assuming party.

         Section 9.11. "Due-on-Sale" Clauses; Assumption Agreements.

         (a) To the extent provided in the applicable Servicing Agreement, to
the extent Mortgage Loans contain enforceable due-on-sale clauses, and to the
extent that the Master Servicer has knowledge of the conveyance of a Mortgaged
Property, the Master Servicer shall use its reasonable best efforts to cause the
Servicers to enforce such clauses in accordance with the applicable Servicing
Agreement. If applicable law prohibits the enforcement of a due-on-sale clause
or such clause is otherwise not enforced in accordance with the applicable
Servicing Agreement, and, as a consequence, a Mortgage Loan is assumed, the
original Mortgagor may be released from liability in accordance with the
applicable Servicing Agreement.

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         (b) The Master Servicer or the related Servicer, as the case may be,
shall be entitled to approve a request from a Mortgagor for the granting of an
easement thereon in favor of another Person or any alteration or demolition of
the related Mortgaged Property if it has determined, exercising its good faith
business judgment in the same manner as it would if it were the owner of the
related Mortgage Loan, that the security for, and the timely and full
collectability of, such Mortgage Loan would not be materially adversely affected
thereby. Any fee collected by the Master Servicer or the related Servicer for
processing such a request will be retained by the Master Servicer or such
Servicer as additional servicing compensation.

         Section 9.12. Release of Mortgage Files.

         (a) Upon (i) becoming aware of the payment in full of any Mortgage
Loan, (ii) the receipt by the Master Servicer of a notification that payment in
full has been or will be escrowed in a manner customary for such purposes, or
(iii) in the case of a Mortgage Loan as to which the related Mortgaged Property
is located in California, receipt by the Master Servicer of notification from
the Servicer that the Servicer reasonably expects that payment in full will be
received promptly, the Master Servicer will, or will cause the applicable
Servicer to, promptly notify the Trustee (or the applicable Custodian) by a
certification (which certification shall include a statement to the effect that
all amounts received or to be received in connection with such payment that are
required to be deposited in the Collection Account maintained by the Master
Servicer pursuant to Section 4.01 have been or will be so deposited) of a
Servicing Officer and shall request the Trustee or the applicable Custodian, to
deliver to the applicable Servicer the related Mortgage File. In lieu of sending
a hard copy certification of a Servicing Officer, the Master Servicer may, or
may cause the Servicer to, deliver the request for release in a mutually
agreeable electronic format. To the extent that such a request, on its face,
originates from a Servicing Officer, no signature shall be required. Upon
receipt of such certification and request, the Trustee or the applicable
Custodian, shall promptly release the related Mortgage File to the applicable
Servicer and neither the Trustee nor the Custodian shall have any further
responsibility with regard to such Mortgage File. The Master Servicer is
authorized, and each Servicer, to the extent such authority is delegated to such
Servicer by the Master Servicer under the applicable Servicing Agreement, is
authorized, to give, as agent for the Trustee, as the mortgagee under the
Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
assignment of mortgage without recourse) regarding the Mortgaged Property
subject to the Mortgage, which instrument of satisfaction or assignment, as the
case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Collection Account.

         (b) From time to time and as appropriate for the servicing or
foreclosure of, or other legal proceedings relating to, any Mortgage Loan and in
accordance with Accepted Servicing Practices and the applicable Servicing
Agreement, the Trustee shall execute such pleadings, request for trustee's sale
or other documents as shall be prepared and furnished to the Trustee by the
Master Servicer, or by a Servicer (in form reasonably acceptable to the Trustee)
and as are necessary to the prosecution of any such proceedings. The Trustee or
the Custodian, shall, upon request of the Master Servicer, or of a Servicer, and
delivery to the Trustee or the applicable Custodian, of a trust receipt signed
by a Servicing Officer substantially in the form annexed hereto as Exhibit C or
in the form annexed to the applicable Custodial Agreement as Exhibit C, release
the related Mortgage File held in its possession or control to the Master
Servicer (or the applicable Servicer). Such trust receipt shall obligate the

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Master Servicer or applicable Servicer to return the Mortgage File to the
Trustee or Custodian, as applicable, when the need therefor by the Master
Servicer or applicable Servicer no longer exists unless (i) the Mortgage Loan
shall be liquidated, in which case, upon receipt of a certificate of a Servicing
Officer similar to that herein above specified, the trust receipt shall be
released by the Trustee or the Custodian, as applicable, to the Master Servicer
(or the applicable Servicer) or (ii) the Mortgage File has been delivered
directly or through a Servicer to an attorney, or to a public trustee or other
public official as required by law, for purposes of initiating or pursuing legal
action or other proceedings for the foreclosure of the Mortgaged Property either
judicially or non-judicially, and the Master Servicer has delivered directly or
through a Servicer to the Trustee a certificate of a Servicing Officer
certifying as to the name and address of the Person to which such Mortgage File
or such document was delivered and the purpose or purposes of such delivery.

         Section 9.13. Documents, Records and Funds in Possession of Master
Servicer To Be Held for Trustee.

         (a) The Master Servicer shall transmit, or cause the applicable
Servicer to transmit, to the Trustee such documents and instruments coming into
the possession of the Master Servicer or such Servicer from time to time as are
required by the terms hereof to be delivered to the Trustee including notifying
the Trustee and the Securities Administrator in the event that any Mortgagor of
any Employee Mortgage Loan ceases to be an employee of Lehman Brothers Inc. or
its Affiliates. Any funds received by the Master Servicer or by a Servicer in
respect of any Mortgage Loan or which otherwise are collected by the Master
Servicer or by a Servicer as Liquidation Proceeds or Insurance Proceeds in
respect of any Mortgage Loan shall be held for the benefit of the Trustee and
the Certificateholders subject to the Master Servicer's right to retain or
withdraw from the Collection Account the Master Servicing Fee and other amounts
provided in this Agreement, and to the right of each Servicer to retain its
Servicing Fee and other amounts as provided in the applicable Servicing
Agreement. The Master Servicer shall, and shall (to the extent provided in the
applicable Servicing Agreement) cause each Servicer to, provide access to
information and documentation regarding the Mortgage Loans to the Trustee, its
agents and accountants at any time upon reasonable request and during normal
business hours, and to Certificateholders that are savings and loan
associations, banks or insurance companies, the Office of Thrift Supervision,
the FDIC and the supervisory agents and examiners of such Office and Corporation
or examiners of any other federal or state banking or insurance regulatory
authority if so required by applicable regulations of the Office of Thrift
Supervision or other regulatory authority, such access to be afforded without
charge but only upon reasonable request in writing and during normal business
hours at the offices of the Master Servicer designated by it. In fulfilling such
a request the Master Servicer shall not be responsible for determining the
sufficiency of such information.

         (b) All Mortgage Files and funds collected or held by, or under the
control of, the Master Servicer, or any Servicer, in respect of any Mortgage
Loans, whether from the collection of principal and interest payments or from
Liquidation Proceeds or Insurance Proceeds, shall be held by the Master
Servicer, or by such Servicer, for and on behalf of the Trustee and the
Certificateholders and shall be and remain the sole and exclusive property of
the Trustee; provided, however, that the Master Servicer and each Servicer shall
be entitled to setoff against, and deduct from, any such funds any amounts that
are properly due and payable to the Master Servicer or such Servicer under this
Agreement or the applicable Servicing Agreement and shall be authorized to remit
such funds to the Securities Administrator in accordance with this Agreement.

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         (c) The Master Servicer hereby acknowledges that concurrently with the
execution of this Agreement, the Trustee shall own or, to the extent that a
court of competent jurisdiction shall deem the conveyance of the Mortgage Loans
from the Seller to the Depositor not to constitute a sale, the Trustee shall
have a security interest in the Mortgage Loans and in all Mortgage Files
representing such Mortgage Loans and in all funds now or hereafter held by, or
under the control of, a Servicer or the Master Servicer that are collected by
such Servicer or the Master Servicer in connection with the Mortgage Loans,
whether as scheduled installments of principal and interest or as full or
partial prepayments of principal or interest or as Liquidation Proceeds or
Insurance Proceeds or otherwise, and in all proceeds of the foregoing and
proceeds of proceeds (but excluding any fee or other amounts to which such
Servicer is entitled under the applicable Servicing Agreement, or the Master
Servicer or the Depositor is entitled to hereunder); and the Master Servicer
agrees that so long as the Mortgage Loans are assigned to and held by the
Trustee, all documents or instruments constituting part of the Mortgage Files,
and such funds relating to the Mortgage Loans which come into the possession or
custody of, or which are subject to the control of, the Master Servicer or any
Servicer shall be held by the Master Servicer or such Servicer for and on behalf
of the Trustee as the Trustee's agent and bailee for purposes of perfecting the
Trustee's security interest therein as provided by the applicable Uniform
Commercial Code or other laws.

         (d) The Master Servicer agrees that it shall not, and shall not
authorize any Servicer to, create, incur or subject any Mortgage Loans, or any
funds that are deposited in any custodial account, Escrow Account or the
Collection Account, or any funds that otherwise are or may become due or payable
to the Trustee, to any claim, lien, security interest, judgment, levy, writ of
attachment or other encumbrance, nor assert by legal action or otherwise any
claim or right of setoff against any Mortgage Loan or any funds collected on, or
in connection with, a Mortgage Loan.

         Section 9.14. Representations and Warranties of the Master Servicer.

         (a) The Master Servicer hereby represents and warrants to the
Depositor, the Securities Administrator and the Trustee, for the benefit of the
Certificateholders, as of the Closing Date that:

             (i)      it is validly existing and in good standing under the
         jurisdiction of its formation, and as Master Servicer has full power
         and authority to transact any and all business contemplated by this
         Agreement and to execute, deliver and comply with its obligations under
         the terms of this Agreement, the execution, delivery and performance of
         which have been duly authorized by all necessary corporate action on
         the part of the Master Servicer;

             (ii)     the execution and delivery of this Agreement by the Master
         Servicer and its performance and compliance with the terms of this
         Agreement will not (A) violate the Master Servicer's charter or bylaws,
         (B) violate any law or regulation or any administrative decree or order
         to which it is subject or (C) constitute a default (or an event which,
         with notice or lapse of time, or both, would constitute a default)
         under, or result in the breach of, any material contract, agreement or
         other instrument to which the Master Servicer is a party or by which it
         is bound or to which any of its assets are subject, which violation,
         default or breach would materially and adversely affect the Master
         Servicer's ability to perform its obligations under this Agreement;

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             (iii)    this Agreement constitutes, assuming due authorization,
         execution and delivery hereof by the other respective parties hereto, a
         legal, valid and binding obligation of the Master Servicer, enforceable
         against it in accordance with the terms hereof, except as such
         enforcement may be limited by bankruptcy, insolvency, reorganization,
         moratorium and other laws affecting the enforcement of creditors'
         rights in general, and by general equity principles (regardless of
         whether such enforcement is considered in a proceeding in equity or at
         law);

             (iv)     the Master Servicer is not in default with respect to any
         order or decree of any court or any order or regulation of any federal,
         state, municipal or governmental agency to the extent that any such
         default would materially and adversely affect its performance
         hereunder;

             (v)      the Master Servicer is not a party to or bound by any
         agreement or instrument or subject to any charter provision, bylaw or
         any other corporate restriction or any judgment, order, writ,
         injunction, decree, law or regulation that may materially and adversely
         affect its ability as Master Servicer to perform its obligations under
         this Agreement or that requires the consent of any third person to the
         execution of this Agreement or the performance by the Master Servicer
         of its obligations under this Agreement;

             (vi)     no litigation is pending or, to the best of the Master
         Servicer's knowledge, threatened against the Master Servicer which
         would prohibit its entering into this Agreement or performing its
         obligations under this Agreement;

             (vii)    the Master Servicer, or an affiliate thereof the primary
         business of which is the servicing of conventional residential mortgage
         loans, is an FNMA- and FHLMC- approved seller/servicer;

             (viii)   no consent, approval, authorization or order of any court
         or governmental agency or body is required for the execution, delivery
         and performance by the Master Servicer of or compliance by the Master
         Servicer with this Agreement or the consummation of the transactions
         contemplated by this Agreement, except for such consents, approvals,
         authorizations and orders (if any) as have been obtained;

             (ix)     the consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Master
         Servicer; and

             (x)      the Master Servicer has obtained an Errors and Omissions
         Insurance Policy and a Fidelity Bond in accordance with Section 9.02,
         each of which is in full force and effect, and each of which provides
         at least such coverage as is required hereunder.

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         (b) It is understood and agreed that the representations and warranties
set forth in this Section 9.14 shall survive the execution and delivery of this
Agreement. The Master Servicer shall indemnify the Depositor, the Securities
Administrator and the Trustee and hold them harmless against any loss, damages,
penalties, fines, forfeitures, legal fees and related costs, judgments, and
other costs and expenses resulting from any claim, demand, defense or assertion
based on or grounded upon, or resulting from, a breach of the Master Servicer's
representations and warranties contained in Section 9.14(a). Notwithstanding
anything in this Agreement to the contrary, the Master Servicer shall not be
liable for special, indirect or consequential losses or damages of any kind
whatsoever (including, but not limited to, lost profits). It is understood and
agreed that the enforcement of the obligation of the Master Servicer set forth
in this Section to indemnify the Depositor, the Securities Administrator and the
Trustee as provided in this Section constitutes the sole remedy (other than as
set forth in Section 6.14) of the Depositor, the Securities Administrator and
the Trustee, respecting a breach of the foregoing representations and
warranties. Such indemnification shall survive any termination of the Master
Servicer as Master Servicer hereunder, and any termination of this Agreement.

         Any cause of action against the Master Servicer relating to or arising
out of the breach of any representations and warranties made in this Section
shall accrue upon discovery of such breach by any of the Depositor, the Master
Servicer, the Securities Administrator or the Trustee or notice thereof by any
one of such parties to the other parties.

         (c) It is understood and agreed that the representations and warranties
of the Depositor set forth in Sections 2.03(a)(i) through (vi) shall survive the
execution and delivery of this Agreement. The Depositor shall indemnify the
Master Servicer and hold it harmless against any loss, damages, penalties,
fines, forfeitures, legal fees and related costs, judgments, and other costs and
expenses resulting from any claim, demand, defense or assertion based on or
grounded upon, or resulting from, a breach of the Depositor's representations
and warranties contained in Sections 2.03(a)(i) through (vi). It is understood
and agreed that the enforcement of the obligation of the Depositor set forth in
this Section to indemnify the Master Servicer as provided in this Section
constitutes the sole remedy of the Master Servicer respecting a breach by the
Depositor of the representations and warranties in Sections 2.03(a)(i) through
(vi).

         Any cause of action against the Depositor relating to or arising out of
the breach of the representations and warranties made in Sections 2.03(a)(i)
through (vi) shall accrue upon discovery of such breach by either the Depositor
or the Master Servicer or notice thereof by any one of such parties to the other
parties.

         Section 9.15. Closing Certificate and Opinion.

         On or before the Closing Date, the Master Servicer shall cause to be
delivered to the Depositor and Lehman Brothers Inc. an Opinion of Counsel, dated
the Closing Date, in form and substance reasonably satisfactory to the Depositor
and Lehman Brothers Inc., as to the due authorization, execution and delivery of
this Agreement by the Master Servicer and the enforceability thereof.

         Section 9.16. Standard Hazard and Flood Insurance Policies.

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         For each Mortgage Loan (other than a Cooperative Loan), the Master
Servicer shall maintain, or cause to be maintained by each Servicer, standard
fire and casualty insurance and, where applicable, flood insurance, all in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. It is understood and agreed that such insurance shall
be with insurers meeting the eligibility requirements set forth in the
applicable Servicing Agreement and that no earthquake or other additional
insurance is to be required of any Mortgagor or to be maintained on property
acquired in respect of a defaulted loan, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance.

         Pursuant to Section 4.01, any amounts collected by the Master Servicer,
or by any Servicer, under any insurance policies maintained pursuant to this
Section 9.16 (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or released to the Mortgagor in
accordance with the Master Servicer's or the Servicer's normal servicing
procedures and Accepted Servicing Practices) shall be deposited into the
Collection Account, subject to withdrawal pursuant to Section 4.02. Any cost
incurred by the Master Servicer or any Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or such
Servicer pursuant to Section 4.02(v).

         Section 9.17. Presentment of Claims and Collection of Proceeds.

         The Master Servicer shall, or shall cause each Servicer (to the extent
provided in the applicable Servicing Agreement) to, prepare and present on
behalf of the Trustee and the Certificateholders all claims under the Insurance
Policies with respect to the Mortgage Loans, and take such actions (including
the negotiation, settlement, compromise or enforcement of the insured's claim)
as shall be necessary to realize recovery under such policies. Any proceeds
disbursed to the Master Servicer (or disbursed to a Servicer and remitted to the
Master Servicer) in respect of such policies or bonds shall be promptly
deposited in the Collection Account upon receipt, except that any amounts
realized that are to be applied to the repair or restoration of the related
Mortgaged Property or released to the Mortgagor in accordance with the Master
Servicer's or the Servicer's normal servicing procedures need not be so
deposited (or remitted).

         Section 9.18. Maintenance of the Primary Mortgage Insurance Policies.

         (a) The Master Servicer shall not take, or knowingly permit any
Servicer (consistent with the applicable Servicing Agreement) to take, any
action that would result in non-coverage under any applicable Primary Mortgage
Insurance Policy of any loss which, but for the actions of such Master Servicer
or Servicer, would have been covered thereunder. To the extent that coverage is
available, the Master Servicer shall use its best reasonable efforts to keep in
force and effect, or to cause each Servicer to keep in force and effect (to the
extent that the Mortgage Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Mortgage Loan in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. The Master Servicer shall not, and shall not permit
any Servicer to, cancel or refuse to renew any such Primary Mortgage Insurance
Policy that is in effect at the date of the initial issuance of the Certificates
and is required to be kept in force hereunder except as required by a applicable
law or in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable.

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         (b) The Master Servicer agrees to present, or to cause each Servicer to
present, on behalf of the Trustee and the Certificateholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to
take such reasonable action as shall be necessary to permit recovery under any
Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
Pursuant to Section 4.01, any amounts collected by the Master Servicer or any
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 4.02.

         Section 9.19. Trustee To Retain Possession of Certain Insurance
Policies and Documents.

         The Trustee (or its custodian, if any, as directed by the Trustee),
shall retain possession and custody of the originals of the Primary Mortgage
Insurance Policies or certificate of insurance if applicable and any
certificates of renewal as to the foregoing as may be issued from time to time
as contemplated by this Agreement. Until all amounts distributable in respect of
the Certificates have been distributed in full and the Master Servicer otherwise
has fulfilled its obligations under this Agreement, the Trustee (or its
custodian, if any, as directed by the Trustee) shall also retain possession and
custody of each Mortgage File in accordance with and subject to the terms and
conditions of this Agreement. The Master Servicer shall promptly deliver or
cause to be delivered to the Trustee (or its custodian, if any, as directed by
the Trustee), upon the execution or receipt thereof the originals of the Primary
Mortgage Insurance Policies and any certificates of renewal thereof, and such
other documents or instruments that constitute portions of the Mortgage File
that come into the possession of the Master Servicer from time to time.

         Section 9.20. Realization Upon Defaulted Mortgage Loans.

         The Master Servicer shall use its reasonable best efforts to, or to
cause each Servicer to, foreclose upon, repossess or otherwise comparably
convert the ownership of Mortgaged Properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments, all in
accordance with the applicable Servicing Agreement. Alternatively, the Master
Servicer may take, or authorize any Servicer to take, other actions in respect
of a defaulted Mortgage Loan, which may include (i) accepting a short sale (a
payoff of the Mortgage Loan for an amount less than the total amount
contractually owed in order to facilitate a sale of the Mortgaged Property by
the Mortgagor) or permitting a short refinancing (a payoff of the Mortgage Loan
for an amount less than the total amount contractually owed in order to
facilitate refinancing transactions by the Mortgagor not involving a sale of the
Mortgaged Property), (ii) arranging for a repayment plan or (iii) agreeing to a
modification in accordance with Section 9.04. In connection with such
foreclosure or other conversion or action, the Master Servicer shall, consistent
with Section 9.18, follow such practices and procedures as it shall reasonably
determine to be in the best interests of the Trust Fund and the
Certificateholders and which shall be consistent with its customary practices in
performing its general mortgage servicing activities; provided that the Master

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Servicer shall not be liable in any respect hereunder if the Master Servicer is
acting in connection with any such foreclosure or other conversion or action in
a manner that is consistent with the provisions of this Agreement. Neither the
Master Servicer, nor any Servicer, shall be required to expend its own funds or
incur other reimbursable charges in connection with any foreclosure, or
attempted foreclosure which is not completed, or toward the correction of any
default on a related senior mortgage loan, or towards the restoration of any
property unless it shall determine (i) that such restoration and/or foreclosure
will increase the proceeds of liquidation of the Mortgage Loan to the
Certificateholders after reimbursement to itself for such expenses or charges
and (ii) that such expenses and charges will be recoverable to it through
Liquidation Proceeds or Insurance Proceeds (as provided in Section 4.02).

         Section 9.21. Compensation to the Master Servicer.

         The Master Servicer shall (i) be entitled, at its election, either (a)
to pay itself the Master Servicing Fee, as reduced pursuant to Section 5.05, in
respect of the Mortgage Loans out of any Mortgagor payment on account of
interest prior to the deposit of such payment in the Collection Account it
maintains or (b) to withdraw from the Collection Account, subject to Section
5.05, the Master Servicing Fee to the extent permitted by Section 4.02(iv). The
Master Servicer shall also be entitled, at its election, either (a) to pay
itself the Master Servicing Fee in respect of each delinquent Mortgage Loan
master serviced by it out of Liquidation Proceeds in respect of such Mortgage
Loan or other recoveries with respect thereto to the extent permitted in Section
4.02 or (b) to withdraw from the Collection Account it maintains the Master
Servicing Fee in respect of each Liquidated Mortgage Loan to the extent of such
Liquidation Proceeds or other recoveries, to the extent permitted by Section
4.02. Servicing compensation in the form of assumption fees, if any, late
payment charges, as collected, if any, or otherwise shall be retained by the
Master Servicer (or the applicable Servicer) and shall not be deposited in the
Collection Account. If the Master Servicer does not retain or withdraw the
Master Servicing Fee from the Collection Account as provided herein, the Master
Servicer shall be entitled to direct the Trustee to pay the Master Servicing Fee
to such Master Servicer by withdrawal from the Certificate Account to the extent
that payments have been received with respect to the applicable Mortgage Loan.
The Master Servicer shall be required to pay all expenses incurred by it in
connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement. Pursuant to Section
4.01(e), all income and gain realized from any investment of funds in the
Collection Account shall be for the benefit of the Master Servicer as additional
compensation. The provisions of this Section 9.21 are subject to the provisions
of Section 6.14(b).

         Section 9.22. REO Property.

         (a) In the event the Trust Fund acquires ownership of any REO Property
in respect of any Mortgage Loan, the deed or certificate of sale shall be issued
to the Trustee, or to its nominee, on behalf of the Certificateholders. The
Master Servicer shall use its reasonable best efforts to sell, or, to the extent
provided in the applicable Servicing Agreement, cause the applicable Servicer to
sell, any REO Property as expeditiously as possible and in accordance with the
provisions of this Agreement and the related Servicing Agreement, as applicable,
but in all events within the time period, and subject to the conditions set
forth in Article X hereof. Pursuant to its efforts to sell such REO Property,
the Master Servicer shall protect and conserve, or cause the applicable Servicer
to protect and conserve, such REO Property in the manner and to such extent
required by the applicable Servicing Agreement, subject to Article X hereof.

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         (b) The Master Servicer shall deposit or cause to be deposited all
funds collected and received by it, or recovered from any Servicer, in
connection with the operation of any REO Property in the Collection Account.

         (c) The Master Servicer and the applicable Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Advances as well as any unpaid Master Servicing Fees or
Servicing Fees from Liquidation Proceeds received in connection with the final
disposition of such REO Property; provided, that (without limitation of any
other right of reimbursement that the Master Servicer or any Servicer shall have
hereunder) any such unreimbursed Advances as well as any unpaid Master Servicing
Fees or Servicing Fees may be reimbursed or paid, as the case may be, prior to
final disposition, out of any net rental income or other net amounts derived
from such REO Property.

         (d) The Liquidation Proceeds from the final disposition of the REO
Property, net of any payment to the Master Servicer and the applicable Servicer
as provided above, shall be deposited in the Collection Account on or prior to
the Determination Date in the month following receipt thereof and be remitted by
wire transfer in immediately available funds to the Trustee for deposit into the
Certificate Account on the next succeeding Deposit Date.

         Section 9.23. [Reserved].

         Section 9.24. Reports to the Trustee and the Securities Administrator.

         (a) Not later than 30 days after each Distribution Date, the Master
Servicer shall forward to the Trustee and the Securities Administrator a
statement, deemed to have been certified by a Servicing Officer, setting forth
the status of the Collection Account maintained by the Master Servicer as of the
close of business on the related Distribution Date, indicating that all
distributions required by this Agreement to be made by the Master Servicer have
been made (or if any required distribution has not been made by the Master
Servicer, specifying the nature and status thereof) and showing, for the period
covered by such statement, the aggregate of deposits into and withdrawals from
the Collection Account maintained by the Master Servicer. Copies of such
statement shall be provided by the Master Servicer to the Depositor, Attention:
Contract Finance, and, upon request, any Certificateholders (or by the
Securities Administrator at the Master Servicer's expense if the Master Servicer
shall fail to provide such copies (unless (i) the Master Servicer shall have
failed to provide the Securities Administrator with such statement or (ii) the
Securities Administrator shall be unaware of the Master Servicer's failure to
provide such statement)).

         (b) Not later than two Business Days following each Distribution Date,
the Master Servicer shall deliver to the Person designated by the Depositor, in
a format consistent with other electronic loan level reporting supplied by the
Master Servicer in connection with similar transactions, "loan level"
information with respect to the Mortgage Loans as of the related Determination
Date, to the extent that such information has been provided to the Master
Servicer by the Servicers or by the Depositor.

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         (c) All information, reports and statements prepared by the Master
Servicer under this Agreement shall be based on information supplied to the
Master Servicer by the Servicers without independent verification thereof and
the Master Servicer shall be entitled to rely on such information.

         Section 9.25. Annual Officer's Certificate as to Compliance.

         (a) The Master Servicer shall deliver to the Trustee, the Securities
Administrator and the Rating Agencies five Business Days after March 15 of each
year commencing on March 21, 2004, an Officer's Certificate, certifying that
with respect to the period ending on the immediately preceding December 31; (i)
such Servicing Officer has reviewed the activities of such Master Servicer
during the preceding calendar year or portion thereof and its performance under
this Agreement; (ii) to the best of such Servicing Officer's knowledge, based on
such review, such Master Servicer has performed and fulfilled its duties,
responsibilities and obligations under this Agreement in all material respects
throughout such year, or, if there has been a default in the fulfillment of any
such duties, responsibilities or obligations, specifying each such default known
to such Servicing Officer and the nature and status thereof, (iii) nothing has
come to the attention of such Servicing Officer to lead such Servicing Officer
to believe that any Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing Agreement in all material
respects throughout such year, or, if there has been a material default in the
performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof, and (iv) the Master Servicer has received from each Servicer
such Servicer's annual certificate of compliance and a copy of such Servicer's
annual audit report, in each case to the extent required under the applicable
Servicing Agreement, or, if any such certificate or report has not been received
by the Master Servicer, the Master Servicer is using its best reasonable efforts
to obtain such certificate or report.

         (b) Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee with
such statement or (ii) the Trustee shall be unaware of the Master Servicer's
failure to provide such statement).

         Section 9.26. Annual Independent Accountants' Servicing Report.

         If the Master Servicer has, during the course of any fiscal year,
directly serviced any of the Mortgage Loans, then the Master Servicer at its
expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Trustee, the Rating Agencies and the
Depositor on or before the last day of February of each year commencing on
February 28, 2004, to the effect that, with respect to the most recently ended
fiscal year, such firm has examined certain records and documents relating to
the Master Servicer's performance of its servicing obligations under this
Agreement and pooling and servicing and trust agreements in material respects
similar to this Agreement and to each other and that, on the basis of such
examination conducted substantially in compliance with the audit program for
mortgages serviced for FHLMC or the Uniform Single Attestation Program for
Mortgage Bankers, such firm is of the opinion that the Master Servicer's
activities have been conducted in compliance with this Agreement, or that such

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examination has disclosed no material items of noncompliance except for (i) such
exceptions as such firm believes to be immaterial, (ii) such other exceptions as
are set forth in such statement and (iii) such exceptions that the Uniform
Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages Serviced by FHLMC requires it to report. Copies of such statements
shall be provided to any Certificateholder upon request by the Master Servicer,
or by the Trustee at the expense of the Master Servicer if the Master Servicer
shall fail to provide such copies. If such report discloses exceptions that are
material, the Master Servicer shall advise the Trustee whether such exceptions
have been or are susceptible of cure, and will take prompt action to do so.

         To the extent that the Master Servicer receives an Annual Independent
Accountants' Servicing Report from any Servicer, the Master Servicer shall
forward a copy of such report to the Securities Administrator and the Trustee.
If the report is not received from the Servicer, the Trustee may request that
the Master Servicer contact the applicable Servicer to obtain such report. The
Master Servicer will not be liable for the failure of a Servicer to provide such
report.

         Section 9.27. Merger or Consolidation.

         Any Person into which the Master Servicer may be merged or
consolidated, or any Person resulting from any merger, conversion, other change
in form or consolidation to which the Master Servicer shall be a party, or any
Person succeeding to the business of the Master Servicer, shall be the successor
to the Master Servicer hereunder, without the execution or filing of any paper
or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding; provided, however, that the successor or resulting
Person to the Master Servicer shall be a Person that shall be qualified and
approved to service mortgage loans for FNMA or FHLMC and shall have a net worth
of not less than $15,000,000.

         Section 9.28. Resignation of Master Servicer.

         Except as otherwise provided in Sections 9.27 and 9.29 hereof, the
Master Servicer shall not resign from the obligations and duties hereby imposed
on it unless it or the Trustee or the Securities Administrator determines that
the Master Servicer's duties hereunder are no longer permissible under
applicable law or are in material conflict by reason of applicable law with any
other activities carried on by it and cannot be cured. Any such determination
permitting the resignation of the Master Servicer shall be evidenced by an
Opinion of Counsel that shall be Independent to such effect delivered to the
Trustee and the Securities Administrator. In the event such determination of
ineligibility of the Master Servicer to continue in the capacity of master
servicer is made by the Master Servicer or the Trustee, no such resignation
shall become effective until a period of time not to exceed ninety days after
the Securities Administrator receives written notice thereof from the Trustee
and until the Securities Administrator shall have assumed, or a successor master
servicer shall have been appointed by the Trustee or the Securities
Administrator, as applicable, and until such successor shall have assumed, the
Master Servicer's responsibilities and obligations under this Agreement. Notice
of such resignation shall be given promptly by the Master Servicer to the
Depositor.

         Section 9.29. Assignment or Delegation of Duties by the Master
Servicer.

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         Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its rights, benefits or privileges hereunder to any
other Person, or delegate to or subcontract with, or authorize or appoint any
other Person to perform any of the duties, covenants or obligations to be
performed by the Master Servicer hereunder; provided, however, that the Master
Servicer shall have the right without the prior written consent of the Trustee,
the Securities Administrator, the Depositor or the Rating Agencies to delegate
or assign to or subcontract with or authorize or appoint an Affiliate of the
Master Servicer to perform and carry out any duties, covenants or obligations to
be performed and carried out by the Master Servicer hereunder. In no case,
however, shall any such delegation, subcontracting or assignment to an Affiliate
of the Master Servicer relieve the Master Servicer of any liability hereunder.
Notice of such permitted assignment shall be given promptly by the Master
Servicer to the Depositor, the Securities Administrator and the Trustee. If,
pursuant to any provision hereof, the duties of the Master Servicer are
transferred to a successor master servicer, the entire amount of the Master
Servicing Fees and other compensation payable to the Master Servicer pursuant
hereto, including amounts payable to or permitted to be retained or withdrawn by
the Master Servicer pursuant to Section 9.21 hereof, shall thereafter be payable
to such successor master servicer.

         Section 9.30. Limitation on Liability of the Master Servicer and
Others.

         (a) The Master Servicer undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement.

         (b) No provision of this Agreement shall be construed to relieve the
Master Servicer from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that the duties
and obligations of the Master Servicer shall be determined solely by the express
provisions of this Agreement, the Master Servicer shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Agreement; no implied covenants or obligations shall be read into this
Agreement against the Master Servicer and, in absence of bad faith on the part
of the Master Servicer, the Master Servicer may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Master Servicer and
conforming to the requirements of this Agreement.

         (c) Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master Servicer shall be under any liability to the
Trustee or the Certificateholders for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement, or for errors
in judgment; provided, however, that this provision shall not protect the Master
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Master Servicer and any director, officer,
employee or agent of the Master Servicer shall be entitled to indemnification by
the Trust Fund and will be held harmless against any loss, liability or expense
incurred in connection with any legal action relating to this Agreement or the
Certificates other than any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or negligence in the performance of his or its
duties hereunder or by reason of reckless disregard of his or its obligations
and duties hereunder. The Master Servicer and any director, officer, employee or
agent of the Master Servicer may rely in good faith on any document of any kind

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prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Master Servicer shall be under no obligation to appear
in, prosecute or defend any legal action that is not incidental to its duties to
master service the Mortgage Loans in accordance with this Agreement and that in
its opinion may involve it in any expenses or liability; provided, however, that
the Master Servicer may in its sole discretion undertake any such action that it
may deem necessary or desirable in respect to this Agreement and the rights and
duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Fund and the Master Servicer shall be entitled to be reimbursed therefor
out of the Collection Account it maintains as provided by Section 4.02.
Notwithstanding anything herein to the contrary, neither the Master Servicer nor
the Trustee shall have any liability for the servicing of the Additional
Collateral, including, without limitation, the perfection, continuation, partial
release, release, termination, realization upon, substitution, foreclosure,
sale, or any other matter with respect to the Additional Collateral, or the
enforcement of the Additional Collateral Servicing Agreement.

         Section 9.31. Indemnification; Third-Party Claims.

         The Master Servicer agrees to indemnify the Depositor, the Securities
Administrator and the Trustee, and hold them harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor,
the Securities Administrator and the Trustee may sustain as a result of the
failure of the Master Servicer to perform its duties and master service the
Mortgage Loans in compliance with the terms of this Agreement. The Depositor,
the Securities Administrator and the Trustee shall immediately notify the Master
Servicer if a claim is made by a third party with respect to this Agreement or
the Mortgage Loans entitling the Depositor, the Securities Administrator or the
Trustee to indemnification hereunder, whereupon the Master Servicer shall assume
the defense of any such claim and pay all expenses in connection therewith,
including counsel fees, and promptly pay, discharge and satisfy any judgment or
decree which may be entered against it or them in respect of such claim.

                                   ARTICLE X

                              REMIC ADMINISTRATION

         Section 10.01. REMIC and Grantor Trust Administration.

         (a) As set forth in the Preliminary Statement hereto, the Trustee shall
elect REMIC status in accordance with the REMIC Provisions with respect to each
of the Lower Tier REMIC, the Middle Tier REMIC and the Upper Tier REMIC. The
Trustee shall make such elections on Forms 1066 (which forms shall be prepared
by the Securities Administrator) or other appropriate federal tax or information
return for the taxable year ending on the last day of the calendar year in which
the Certificates are issued. For the purposes of such elections, each of the
Lower Tier REMIC Regular Interests is hereby designated as a regular interest in
the Lower Tier REMIC. Each of the Middle Tier REMIC Regular Interests is hereby
designated as a regular interest in the Middle Tier REMIC. Each Certificate,
other than the Class R Certificate and the Class P Certificates, is hereby
designated as a regular interest in the Upper Tier REMIC. The Class LT-R

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Interest is hereby designated as the sole residual interest in the Lower Tier
REMIC. The Class MT-R Interest is hereby designated as the sole residual
interest in the Middle Tier REMIC. The Class R Certificate evidences ownership
of the Class LT-R Interest and the Class MT-R Interest and is also hereby
designated as the sole residual interest in the Upper Tier REMIC. The Class P
Certificates shall be neither regular interests nor residual interests in any
REMIC created hereunder. It is the intention of the parties hereto that the
segregated pool of assets consisting of any collections of Prepayment Penalty
Amounts with respect to Pool 1 constitute a grantor trust for federal income tax
purposes. The Trustee, by its execution and delivery hereof, acknowledges the
assignment to it of the Grantor Trust I Assets and declares that it holds and
will hold such assets in trust for the exclusive use and benefit of all present
and future Holders of the Class P-I Certificates. The rights of Holders of the
Class P-I Certificates to receive distributions from the proceeds of the Grantor
Trust I Assets, and all ownership interests of such Holders in and to such
distributions, shall be as set forth in this Agreement. It is the intention of
the parties hereto that the segregated pool of assets consisting of any
collections of Prepayment Penalty Amounts with respect to Pool 3 constitute a
grantor trust for federal income tax purposes. The Trustee, by its execution and
delivery hereof, acknowledges the assignment to it of the Grantor Trust II
Assets and declares that it holds and will hold such assets in trust for the
exclusive use and benefit of all present and future Holders of the Class P-II
Certificates. The rights of Holders of the Class P-II Certificates to receive
distributions from the proceeds of the Grantor Trust II Assets, and all
ownership interests of such Holders in and to such distributions, shall be as
set forth in this Agreement.

         (b) The Closing Date is hereby designated as the "Startup Day" of each
REMIC within the meaning of section 86OG(a)(9) of the Code. The latest possible
maturity date for purposes of Treasury Regulation 1.860G-1(a)(4) is the "Latest
Possible Maturity Date".

         (c) The Securities Administrator shall pay any and all tax related
expenses (not including taxes) of each REMIC, including but not limited to any
professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) are attributable to the
negligence or willful misconduct of the Securities Administrator in fulfilling
its duties hereunder (including its duties as tax return preparer). The
Securities Administrator shall be entitled to reimbursement from the Certificate
Account of the expenses to the extent (x) provided in clause (i) above and (y)
such expenses are "unanticipated expenses" within the meaning of Treasury
Regulations Section 1.860G-1(b)(3)(ii).

         (d) The Securities Administrator shall prepare and file, and the
Trustee shall sign, all of each REMIC's federal and state tax and information
returns as such REMIC's direct representative. The Securities Administrator
shall prepare and file, and the Trustee shall sign, all of the tax returns in
respect of Grantor Trust I and Grantor Trust II. The Securities Administrator
shall comply with such requirement by filing Form 1041. The expenses of
preparing and filing such returns shall be borne by the Securities
Administrator. If any Disqualified Organization acquires any Ownership Interest
in a Residual Certificate, then the Securities Administrator will upon request
provide to the Internal Revenue Service, and to the persons specified in
Sections 860E(e)(3) and (6) of the Code, such information as required in Section
860D(a)(6)(B) of the Code needed to compute the tax imposed under Section
860E(e) of the Code on transfers of residual interests to disqualified
organizations and the Securities Administrator will be reimbursed by the Trust
for all expenses incurred therewith.

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         (e) The Securities Administrator or its designee shall perform on
behalf of each REMIC and Grantor Trust I and Grantor Trust II all reporting and
other tax compliance duties that are the responsibility of such REMIC or Grantor
Trust I or Grantor Trust II under the Code, the REMIC Provisions, or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, if required by the Code, the REMIC
Provisions, or other such guidance, the Securities Administrator shall provide
(i) to the Treasury or other governmental authority such information as is
necessary for the application of any tax relating to the transfer of a Residual
Certificate to any disqualified person or organization and (ii) to the
Certificateholders such information or reports as are required by the Code or
REMIC Provisions.

         (f) The Trustee, the Securities Administrator, the Master Servicer and
the Holders of Certificates shall take any action or cause any REMIC hereunder
to take any action necessary to maintain the status of such REMIC as a REMIC
under the REMIC Provisions and shall assist each other as necessary to maintain
such status. Neither the Trustee, the Securities Administrator, the Master
Servicer nor the Holder of any Residual Certificate shall knowingly take any
action, cause any REMIC to take any action or fail to take (or fail to cause to
be taken) any action that, under the REMIC Provisions, if taken or not taken, as
the case may be, could (i) endanger the status of any such REMIC as a REMIC or
(ii) result in the imposition of a tax upon any such REMIC (including but not
limited to the tax on prohibited transactions as defined in Code Section
860F(a)(2) and the tax on prohibited contributions set forth on Section 860G(d)
of the Code) (either such event, an "Adverse REMIC Event") unless the Trustee,
the Securities Administrator and the Master Servicer have received an Opinion of
Counsel (at the expense of the party seeking to take such action) to the effect
that the contemplated action will not endanger such status or result in the
imposition of such a tax. In addition, prior to taking any action with respect
to any such REMIC or the assets therein, or causing any such REMIC to take any
action, which is not expressly permitted under the terms of this Agreement, any
Holder of a Residual Certificate will consult with the Trustee, the Securities
Administrator and the Master Servicer, or their respective designees, in
writing, with respect to whether such action could cause an Adverse REMIC Event
to occur with respect to such REMIC, and no such Person shall take any such
action or cause such REMIC to take any such action as to which the Trustee, the
Securities Administrator or the Master Servicer has advised it in writing that
an Adverse REMIC Event could occur.

         (g) The Securities Administrator shall prepare or cause to be prepared
on behalf of the Trust Fund, based upon information calculated in accordance
with this Agreement pursuant to instructions given by the Depositor, the Trustee
shall sign and the Securities Administrator shall file, federal tax return and
appropriate state income tax returns and such other returns as may be required
by applicable law relating to the Trust Fund, and shall file any other documents
to the extent required by applicable state tax law (to the extent such documents
are in the Securities Administrator's possession). The Securities Administrator
shall forward copies to the Depositor of all such returns and Form 1099
supplemental tax information and such other information within the control of
the Securities Administrator as the Depositor may reasonably request in writing,

                                      119
<PAGE>

and shall forward to the Trustee for distribution to each Certificateholder such
forms and furnish such information within the control of the Securities
Administrator as are required by the Code and the REMIC Provisions to be
furnished to them, and will prepare and furnish to the Trustee for distribution
to Certificateholders Form 1099 (supplemental tax information) (or otherwise
furnish information within the control of the Securities Administrator) to the
extent required by applicable law. The Master Servicer will indemnify the
Securities Administrator and the Trustee for any liability of or assessment
against the Securities Administrator or the Trustee, as applicable, resulting
from any error in any of such tax or information returns directly resulting from
errors in the information provided by such Master Servicer.

         (h) The Securities Administrator shall prepare and file with the
Internal Revenue Service ("IRS"), on behalf of each of the Lower Tier REMIC, the
Middle Tier REMIC and the Upper Tier REMIC, an application on IRS Form SS-4. The
Securities Administrator, upon receipt from the IRS of the Notice of Taxpayer
Identification Number Assigned for each REMIC, shall promptly forward copies of
such notices to the Trustee, the Master Servicer and the Depositor. The
Securities Administrator will file an IRS Form 8811 for the REMICs created
hereunder.

         (i) Each Holder of a Residual Certificate shall pay when due any and
all taxes imposed on the related REMIC by federal or state governmental
authorities. To the extent that such Trust taxes are not paid by a Residual
Certificateholder, the Securities Administrator shall pay any remaining REMIC
taxes out of current or future amounts otherwise distributable to the Holder of
the Residual Certificate in such REMIC or, if no such amounts are available, out
of other amounts held in the Collection Account, and shall reduce amounts
otherwise payable to holders of regular interests in such REMIC, as the case may
be.

         (j) The Securities Administrator shall, for federal income tax
purposes, maintain books and records with respect to each REMIC on a calendar
year and on an accrual basis.

         (k) No additional contributions of assets shall be made to any REMIC,
except as expressly provided in this Agreement with respect to Qualified
Substitute Mortgage Loans.

         (l) Neither the Securities Administrator nor the Master Servicer shall
enter into any arrangement by which any REMIC will receive a fee or other
compensation for services.

         (m) Upon the request of any Rating Agency, the Securities Administrator
shall deliver to such Rating Agency an Officer's Certificate stating the
Securities Administrator's compliance with the provisions of this Section 10.01.

         Section 10.02. Prohibited Transactions and Activities.

         Neither the Depositor, the Master Servicer nor the Trustee shall sell,
dispose of, or substitute for any of the Mortgage Loans, except in a disposition
pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the
Trust Fund, (iii) the termination of each REMIC pursuant to Article VII of this
Agreement, (iv) a substitution pursuant to Article II of this Agreement, or (v)
a repurchase of Mortgage Loans pursuant to Article II of this Agreement, nor
acquire any assets for any REMIC, nor sell or dispose of any investments in the

                                      120
<PAGE>

Certificate Account for gain, nor accept any contributions to any REMIC after
the Closing Date, unless it has received an Opinion of Counsel (at the expense
of the party causing such sale, disposition, or substitution) that such
disposition, acquisition, substitution, or acceptance will not (a) affect
adversely the status of such REMIC as a REMIC or of the Certificates other than
the Residual Certificates as the regular interests therein, (b) affect the
distribution of interest or principal on the Certificates, (c) result in the
encumbrance of the assets transferred or assigned to the Trust Fund (except
pursuant to the provisions of this Agreement) or (d) cause such REMIC to be
subject to a tax on prohibited transactions or prohibited contributions pursuant
to the REMIC Provisions.

         Section 10.03. Indemnification with Respect to Certain Taxes and Loss
of REMIC Status.

         In the event that a REMIC fails to qualify as a REMIC, loses its status
as a REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to the
negligent performance by the Trustee or the Securities Administrator, as
applicable, of its duties and obligations set forth herein, the Trustee or the
Securities Administrator, as applicable, shall indemnify the Holder of the
Residual Certificate against any and all losses, claims, damages, liabilities or
expenses ("Losses") resulting from such negligence; provided, however, that
neither the Trustee nor the Securities Administrator shall be liable for any
such Losses attributable to the action or inaction of the Master Servicer, the
Depositor, or the Holder of such Residual Certificate, as applicable, nor for
any such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Trustee or the Securities Administrator, as
applicable, has relied. The foregoing shall not be deemed to limit or restrict
the rights and remedies of the Holder of such Residual Certificate now or
hereafter existing at law or in equity. Notwithstanding the foregoing, however,
in no event shall the Trustee or the Securities Administrator have any liability
(1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than arising out of a
negligent performance by the Trustee or the Securities Administrator,
respectively, of its duties and obligations set forth herein, and (3) for any
special or consequential damages to Certificateholders (in addition to payment
of principal and interest on the Certificates).

         Section 10.04. REO Property.

         (a) Notwithstanding any other provision of this Agreement, the Master
Servicer, acting on behalf of the Trustee hereunder, shall not (except to the
extent provided in the applicable Servicing Agreement), permit any Servicer to,
rent, lease, or otherwise earn income on behalf of any REMIC with respect to any
REO Property which might cause such REO Property to fail to qualify as
"foreclosure" property within the meaning of section 860G(a)(8) of the Code or
result in the receipt by any REMIC of any "income from non-permitted assets"
within the meaning of section 860F(a)(2) of the Code or any "net income from
foreclosure property" which is subject to tax under the REMIC Provisions unless
the Master Servicer has advised, or has caused the applicable Servicer to
advise, the Trustee in writing to the effect that, under the REMIC Provisions,
such action would not adversely affect the status of any REMIC as a REMIC and
any income generated for such REMIC by the REO Property would not result in the
imposition of a tax upon such REMIC.

                                       121
<PAGE>

         (b) The Master Servicer shall make, or shall cause the applicable
Servicer to make, reasonable efforts to sell any REO Property for its fair
market value. In any event, however, the Master Servicer shall, or shall cause
the applicable Servicer to, dispose of any REO Property within three years from
the end of the calendar year of its acquisition by the Trust Fund unless the
Trustee has received a grant of extension from the Internal Revenue Service to
the effect that, under the REMIC Provisions and any relevant proposed
legislation and under applicable state law, the applicable REMIC may hold REO
Property for a longer period without adversely affecting the REMIC status of
such REMIC or causing the imposition of a Federal or state tax upon such REMIC.
If the Trustee has received such an extension, then (a) the Trustee shall
provide a copy of such extension to the Master Servicer and the Securities
Administrator and (b) the Trustee, or the Master Servicer, acting on its behalf
hereunder, shall, or shall cause the applicable Servicer to, continue to attempt
to sell the REO Property for its fair market value for such period longer than
three years as such extension permits (the "Extended Period"). If the Trustee
has not received such an extension and the Trustee, or the Master Servicer
acting on behalf of the Trustee hereunder, or the applicable Servicer is unable
to sell the REO Property within 33 months after its acquisition by the Trust
Fund or if the Trustee has received such an extension, and the Trustee, or the
Master Servicer acting on behalf of the Trustee hereunder, is unable to sell the
REO Property within the period ending three months before the close of the
Extended Period, the Master Servicer shall, or shall cause the applicable
Servicer to, before the end of the three year period or the Extended Period, as
applicable, (i) purchase such REO Property at a price equal to the REO
Property's fair market value or (ii) auction the REO Property to the highest
bidder (which may be the Master Servicer) in an auction reasonably designed to
produce a fair price prior to the expiration of the three-year period or the
Extended Period, as the case may be.

                                       122
<PAGE>

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01. Binding Nature of Agreement; Assignment.

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

         Section 11.02. Entire Agreement.

         This Agreement contains the entire agreement and understanding among
the parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof.

         Section 11.03. Amendment.

         (a) This Agreement may be amended from time to time by the Depositor,
the Master Servicer, the Securities Administrator and the Trustee, without
notice to or the consent of any of the Holders, (i) to cure any ambiguity, (ii)
to cause the provisions herein to conform to or be consistent with or in
furtherance of the statements made with respect to the Certificates, the Trust
Fund or this Agreement in any Offering Document; or to correct or supplement any
provision herein which may be inconsistent with any other provisions herein,
(iii) to make any other provisions with respect to matters or questions arising
under this Agreement or (iv) to add, delete, or amend any provisions to the
extent necessary or desirable to comply with any requirements imposed by the
Code and the REMIC Provisions. No such amendment effected pursuant to the
preceding sentence shall, as evidenced by an Opinion of Counsel, adversely
affect the status of any REMIC created pursuant to this Agreement, nor shall
such amendment effected pursuant to clause (iii) of such sentence adversely
affect in any material respect the interests of any Holder. Prior to entering
into any amendment without the consent of Holders pursuant to this paragraph,
the Trustee may require an Opinion of Counsel (at the expense of the party
requesting such amendment) to the effect that such amendment is permitted under
this paragraph. Any such amendment shall be deemed not to adversely affect in
any material respect any Holder, if the Trustee receives written confirmation
from each Rating Agency that such amendment will not cause such Rating Agency to
reduce, qualify or withdraw the then current rating assigned to the Certificates
(and any Opinion of Counsel requested by the Trustee in connection with any such
amendment may rely expressly on such confirmation as the basis therefor).

         (b) This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of not less than 66 2/3% of the Class Principal
Amount (or Percentage Interest) of each Class of Certificates affected thereby
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any

                                       123
<PAGE>

manner the rights of the Holders; provided, however, that no such amendment
shall be made unless the Trustee receives an Opinion of Counsel, at the expense
of the party requesting the change, that such change will not adversely affect
the status of any REMIC as a REMIC or cause a tax to be imposed on such REMIC;
and provided further, that no such amendment may (i) reduce in any manner the
amount of, or delay the timing of, payments received on Mortgage Loans which are
required to be distributed on any Certificate, without the consent of the Holder
of such Certificate or (ii) reduce the aforesaid percentages of Class Principal
Amount (or Percentage Interest) of Certificates of each Class, the Holders of
which are required to consent to any such amendment without the consent of the
Holders of 100% of the Class Principal Amount (or Class Notional Amount) of each
Class of Certificates affected thereby. For purposes of this paragraph,
references to "Holder" or "Holders" shall be deemed to include, in the case of
any Class of Book-Entry Certificates, the related Certificate Owners.

         (c) Promptly after the execution of any such amendment, the Trustee
shall furnish written notification of the substance of such amendment to each
Holder, the Depositor and to the Rating Agencies.

         (d) It shall not be necessary for the consent of Holders under this
Section 11.03 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Holders shall be subject to such reasonable regulations as
the Trustee may prescribe.

         (e) Notwithstanding anything to the contrary in any Servicing
Agreement, the Trustee shall not consent to any amendment of any Servicing
Agreement except pursuant to the standards provided in this Section with respect
to amendment of this Agreement.

         Section 11.04. Voting Rights.

         Except to the extent that the consent of all affected
Certificateholders is required pursuant to this Agreement, with respect to any
provision of this Agreement requiring the consent of Certificateholders
representing specified percentages of aggregate outstanding Certificate
Principal Amount (or Notional Amount), Certificates owned by the Depositor, the
Securities Administrator, the Master Servicer, the Trustee or any Servicer or
Affiliates thereof are not to be counted so long as such Certificates are owned
by the Depositor, the Master Servicer, the Securities Administrator, the Trustee
or any Servicer or Affiliates thereof.

         Section 11.05. Provision of Information.

         (a) For so long as any of the Certificates of any Series or Class are
"restricted securities" within the meaning of Rule 144(a)(3) under the Act, each
of the Depositor and the Trustee agree to cooperate with each other to provide
to any Certificateholders and to any prospective purchaser of Certificates
designated by such Certificateholder, upon the request of such Certificateholder
or prospective purchaser, any information required to be provided to such holder
or prospective purchaser to satisfy the condition set forth in Rule 144A(d)(4)
under the Act. Any reasonable, out-of-pocket expenses incurred by the Trustee or
the Securities Administrator in providing such information shall be reimbursed
by the Depositor.

                                       124
<PAGE>

         (b) The Securities Administrator will make available to any person to
whom a Prospectus was delivered, upon the request of such person specifying the
document or documents requested, (i) a copy (excluding exhibits) of any report
on Form 8-K or Form 10-K filed with the Securities and Exchange Commission
pursuant to Section 6.20(c) and (ii) a copy of any other document incorporated
by reference in the Prospectus to the extent in the possession of the Securities
Administrator. Any reasonable out-of-pocket expenses incurred by the Securities
Administrator in providing copies of such documents shall be reimbursed by the
Depositor.

         Section 11.06. Governing Law.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK (OTHER THAN SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW).

         Section 11.07. Notices.

         All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given when delivered to such party at the
relevant address, facsimile number or electronic mail address set forth below
(or at such other address, facsimile number or electronic mail address as such
party may designate from time to time by written notice in accordance with this
Section 11.07): received by (a) in the case of the Depositor, Structured Asset
Securities Corporation, 745 Seventh Avenue, 7th Floor, New York, New York 10019,
Attention: Mark Zusy, (b) in the case of the Securities Administrator, Wells
Fargo Bank Minnesota, National Association, P.O. Box 98, Columbia, Maryland
21046 (or, for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland
21045) (SASCO 2003-22A) or for purposes of presentment of Certificates for
transfer, exchange and/or payment, the Securities Administrator's Corporate
Trust Office, (c) in the case of the Certificate Registrar, its Corporate Trust
Office, (d) in the case of the Trustee, HSBC Bank USA, 452 Fifth Avenue, New
York, New York 10018, Attention: Issuer Services and (e) in the case of the
Master Servicer, Aurora Loan Services Inc., 2530 South Parker Road, Suite 601,
Aurora, Colorado 80014; Attention: Master Servicing or as to each party such
other address as may hereafter be furnished by such party to the other parties
in writing. Any notice required or permitted to be mailed to a Holder shall be
given by first class mail, postage prepaid, at the address of such Holder as
shown in the Certificate Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Holder receives such notice.

         Section 11.08. Severability of Provisions.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

                                       125
<PAGE>

         Section 11.09. Indulgences; No Waivers.

         Neither the failure nor any delay on the part of a party to exercise
any right, remedy, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy,
power or privilege preclude any other or further exercise of the same or of any
other right, remedy, power or privilege, nor shall any waiver of any right,
remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed
by the party asserted to have granted such waiver.

         Section 11.10. Headings Not To Affect Interpretation.

         The headings contained in this Agreement are for convenience of
reference only, and they shall not be used in the interpretation hereof.

         Section 11.11. Benefits of Agreement.

         Nothing in this Agreement or in the Certificates, express or implied,
shall give to any Person, other than the parties to this Agreement and their
successors hereunder and the Holders of the Certificates, any benefit or any
legal or equitable right, power, remedy or claim under this Agreement, except to
the extent specified in Sections 11.14.

         Section 11.12. Special Notices to the Rating Agencies.

         (a) The Depositor shall give prompt notice to the Rating Agencies of
the occurrence of any of the following events of which it has notice:

             (i)      any amendment to this Agreement pursuant to Section 11.03;

             (ii)     any Assignment by the Master Servicer of its rights
         hereunder or delegation of its duties hereunder;

             (iii)    the occurrence of any Event of Default described in
         Section 6.14;

             (iv)     any notice of termination given to the Master Servicer
         pursuant to Section 6.14 and any resignation of the Master Servicer
         hereunder;

             (v)      the appointment of any successor to any Master Servicer
         pursuant to Section 6.14; and

             (vi)     the making of a final payment pursuant to Section 7.02.

         (b) All notices to the Rating Agencies provided for this Section shall
be in writing and sent by first class mail, telecopy or overnight courier, as
follows:

         If to Moody's, to:

         Moody's Investors Service, Inc.
         99 Church Street
         New York, New York 10007

         If to S&P, to:

         Standard & Poor's
         55 Water Street
         New York, New York  10041

                                       126
<PAGE>

         (c) The Securities Administrator shall provide or make available to the
Rating Agencies reports prepared pursuant to Section 4.03. In addition, the
Securities Administrator shall, at the expense of the Trust Fund, make available
to each Rating Agency such information as such Rating Agency may reasonably
request regarding the Certificates or the Trust Fund, to the extent that such
information is reasonably available to the Securities Administrator.

         Section 11.13. Counterparts.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, and all of which together shall
constitute one and the same instrument.

         Section 11.14. Transfer of Servicing.

         The Seller agrees that it shall provide written notice to the Trustee,
the Securities Administrator and the Master Servicer thirty days prior to any
transfer or assignment by the Seller of its rights under any Servicing Agreement
or of the servicing thereunder or delegation of its rights or duties thereunder
or any portion thereof to any Person other than the initial Servicer under such
Servicing Agreement; provided that the Seller shall not be required to provide
prior notice of any transfer of servicing that occurs within three months
following the Closing Date to an entity that is a Servicer on the Closing Date.
In addition, the ability of the Seller to transfer or assign its rights and
delegate its duties under a Servicing Agreement or to transfer the servicing
thereunder to a successor servicer shall be subject to the following conditions:

             (i) Such successor servicer must be qualified to service loans for
         FNMA or FHLMC;

             (ii)     Such successor servicer must satisfy the seller/servicer
         eligibility standards in the applicable Servicing Agreement, exclusive
         of any experience in mortgage loan origination, and must be reasonably
         acceptable to the Master Servicer, whose approval shall not be
         unreasonably withheld;

             (iii)    Such successor servicer must execute and deliver to the
         Trustee and the Master Servicer an agreement, in form and substance
         reasonably satisfactory to the Trustee, the Securities Administrator
         and the Master Servicer, that contains an assumption by such successor
         servicer of the due and punctual performance and observance of each
         covenant and condition to be performed and observed by the applicable
         Servicer under the applicable Servicing Agreement or, in the case of a
         transfer of servicing to a party that is already a Servicer pursuant to
         this Agreement, an agreement to add the related Mortgage Loans to the
         Servicing Agreement already in effect with such Servicer;

                                       127
<PAGE>

             (iv)     If the successor servicer is not a Servicer of Mortgage
         Loans at the time of such transfer, there must be delivered to the
         Trustee and the Securities Administrator a letter from each Rating
         Agency to the effect that such transfer of servicing will not result in
         a qualification, withdrawal or downgrade of the then-current rating of
         any of the Certificates;

             (v)      The Seller shall, at its cost and expense, take such
         steps, or cause the terminated Servicer to take such steps, as may be
         necessary or appropriate to effectuate and evidence the transfer of the
         servicing of the Mortgage Loans to such successor servicer, including,
         but not limited to, the following: (A) to the extent required by the
         terms of the Mortgage Loans and by applicable federal and state laws
         and regulations, the Seller shall cause the prior Servicer to timely
         mail to each obligor under a Mortgage Loan any required notices or
         disclosures describing the transfer of servicing of the Mortgage Loans
         to the successor servicer; (B) prior to the effective date of such
         transfer of servicing, the Seller shall cause the prior Servicer to
         transmit to any related insurer notification of such transfer of
         servicing; (C) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to deliver to the
         successor servicer all Mortgage Loan Documents and any related records
         or materials; (D) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to transfer to the
         successor servicer, or, if such transfer occurs after a Remittance Date
         but before the next succeeding Deposit Date, to the Master Servicer,
         all funds held by the applicable Servicer in respect of the Mortgage
         Loans; (E) on or prior to the effective date of such transfer of
         servicing, the Seller shall cause the prior Servicer to, after the
         effective date of the transfer of servicing to the successor servicer,
         continue to forward to such successor servicer, within one Business Day
         of receipt, the amount of any payments or other recoveries received by
         the prior Servicer, and to notify the successor servicer of the source
         and proper application of each such payment or recovery; and (F) the
         Seller shall cause the prior Servicer to, after the effective date of
         transfer of servicing to the successor servicer, continue to cooperate
         with the successor servicer to facilitate such transfer in such manner
         and to such extent as the successor servicer may reasonably request.

                                       128
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Securities Administrator, the
Trustee and the Master Servicer have caused their names to be signed hereto by
their respective officers hereunto duly authorized as of the day and year first
above written.

                                  STRUCTURED ASSET SECURITIES
                                    CORPORATION, as Depositor

                                  By: __________________________________________
                                      Name:  Michael C. Hitzmann
                                      Title: Vice President

                                  HSBC BANK USA, not in its individual capacity,
                                      but solely as Trustee

                                  By: __________________________________________
                                      Name:
                                      Title:

                                  WELLS FARGO BANK MINNESOTA,
                                      NATIONAL ASSOCIATION,
                                      as Securities Administrator

                                  By: __________________________________________
                                      Name:  Stacey M. Taylor
                                      Title: Assistant Vice President

                                  AURORA LOAN SERVICES INC.,
                                      as Master Servicer

                                  By: __________________________________________
                                      Name:  E. Todd Whittemore
                                      Title: Executive Vice President

Solely for purposes of Section 11.14,
accepted and agreed to by:

LEHMAN BROTHERS HOLDINGS INC.

By:___________________________
   Name:  Stanley P. Labanowski
   Title: Authorized Signatory

<PAGE>

                                    EXHIBIT A
                                    ---------

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   EXHIBIT B-1
                                   -----------

                          FORM OF INITIAL CERTIFICATION

                                                                  ______________
                                                                       Date
HSBC Bank USA
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

        Re:   Trust Agreement (the "Trust Agreement"), dated as of June 1, 2003
              among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer, Wells Fargo Bank
              Minnesota, National Association, as Securities Administrator and
              HSBC Bank USA, as Trustee, with respect to Structured Asset
              Securities Corporation Mortgage Pass-Through Certificates, Series
              2003-22A

Ladies and Gentlemen:

         In accordance with Section 2.02(a) of the Trust Agreement, subject to
review of the contents thereof, the undersigned, as Custodian on behalf of the
Trustee, hereby certifies that it (or its custodian) has received the documents
listed in Section 2.01(b) of the Trust Agreement for each Mortgage File
pertaining to each Mortgage Loan listed on Schedule A, to the Trust Agreement,
subject to any exceptions noted on Schedule I hereto.

         Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Trust
Agreement. This Certificate is subject in all respects to the terms of Section
2.02 of the Trust Agreement and the Trust Agreement sections cross-referenced
therein.

                                                     [Custodian], on behalf of
                                                     HSBC Bank USA,
                                                     as Trustee

                                                     By:________________________
                                                        Name:
                                                        Title:

<PAGE>

                                   EXHIBIT B-2
                                   -----------

                          FORM OF INTERIM CERTIFICATION

                                                               _________________
                                                                      Date
HSBC Bank USA
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

       Re:    Trust Agreement (the "Trust Agreement"), dated as of June 1, 2003
              among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer, Wells Fargo Bank
              Minnesota, National Association, as Securities Administrator and
              HSBC Bank USA, as Trustee, with respect to Structured Asset
              Securities Corporation Mortgage Pass-Through Certificates, Series
              2003-22A

Ladies and Gentlemen:

         In accordance with Section 2.02(b) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents identified above and has
determined that each such document appears regular on its face and appears to
relate to the Mortgage Loan identified in such document.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said Trust Agreement including, but not limited
to, Section 2.02(b).

                                                     [Custodian], on behalf of
                                                     HSBC Bank USA,
                                                     as Trustee
                                                     By:________________________
                                                        Name:
                                                        Title:

<PAGE>

                                   EXHIBIT B-3
                                   -----------

                           FORM OF FINAL CERTIFICATION

                                                                 _______________
                                                                       Date

HSBC Bank USA
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

      Re:     Trust Agreement (the "Trust Agreement"), dated as of June 1, 2003
              among Structured Asset Securities Corporation, as Depositor,
              Aurora Loan Services Inc., as Master Servicer, Wells Fargo Bank
              Minnesota, National Association, as Securities Administrator and
              HSBC Bank USA, as Trustee, with respect to Structured Asset
              Securities Corporation Mortgage Pass-Through Certificates, Series
              2003-22A

Ladies and Gentlemen:

         In accordance with Section 2.02(d) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said Trust Agreement.

                                                     [Custodian], on behalf of
                                                     HSBC Bank USA,
                                                     as Trustee

                                                     By:________________________
                                                        Name:
                                                        Title:

<PAGE>

                                   EXHIBIT B-4
                                   -----------

                               FORM OF ENDORSEMENT

         Pay to the order of HSBC Bank USA, as trustee (the "Trustee") under the
Trust Agreement dated as of June 1, 2003, among Structured Asset Securities
Corporation, as Depositor, Aurora Loan Services Inc., as Master Servicer, Wells
Fargo Bank Minnesota, National Association, as Securities Administrator and the
Trustee relating to Structured Asset Securities Corporation Mortgage
Pass-Through Certificates, Series 2003-22A, without recourse.

                                         _______________________________________
                                                     [current signatory on note]

                                         By:____________________________________
                                            Name:
                                            Title:

<PAGE>

                                    EXHIBIT C
                                    ---------

                  REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

                                                                ________________
                                                                      Date

[Addressed to Trustee
or, if applicable, custodian]

         In connection with the administration of the mortgages held by you as
Trustee under a certain Trust Agreement dated as of June 1, 2003 among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer, Wells Fargo Bank Minnesota, National Association, as
Securities Administrator and you, as Trustee (the "Trust Agreement"), the
undersigned Master Servicer hereby requests a release of the Mortgage File held
by you as Trustee with respect to the following described Mortgage Loan for the
reason indicated below.

         Mortgagor's Name:

         Address:

         Loan No.:

         Reason for requesting file:

1.       Mortgage Loan paid in full. (The Master Servicer hereby certifies that
         all amounts received in connection with the loan have been or will be
         credited to the Collection Account or the Certificate Account
         (whichever is applicable) pursuant to the Trust Agreement.)

2.       The Mortgage Loan is being foreclosed.

3.       Mortgage Loan substituted. (The Master Servicer hereby certifies that a
         Qualifying Substitute Mortgage Loan has been assigned and delivered to
         you along with the related Mortgage File pursuant to the Trust
         Agreement.)

4.       Mortgage Loan repurchased. (The Master Servicer hereby certifies that
         the Purchase Price has been credited to the Collection Account or the
         Certificate Account (whichever is applicable) pursuant to the Trust
         Agreement.)

5.       Other. (Describe)

<PAGE>

         The undersigned acknowledges that the above Mortgage File will be held
by the undersigned in accordance with the provisions of the Trust Agreement and
will be returned to you within ten (10) days of our receipt of the Mortgage
File, except if the Mortgage Loan has been paid in full, or repurchased or
substituted for a Qualifying Substitute Mortgage Loan (in which case the
Mortgage File will be retained by us permanently) and except if the Mortgage
Loan is being foreclosed (in which case the Mortgage File will be returned when
no longer required by us for such purpose).

         Capitalized terms used herein shall have the meanings ascribed to them
in the Trust Agreement.

                                         _______________________________________
                                              [Name of Master Servicer]

                                         By:____________________________________
                                            Name:
                                            Title: Servicing Officer

                                       C-2
<PAGE>

                                   EXHIBIT D-1
                                   -----------

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

STATE OF                    )
                            )  ss.:
COUNTY OF                   )

                  [NAME OF OFFICER], _________________ being first duly sworn,
deposes and says:

                  That he [she] is [title of officer] ________________________
of [name of Purchaser] _________________________________________ (the
"Purchaser"), a _______________________ [description of type of entity] duly
organized and existing under the laws of the [State of __________] [United
States], on behalf of which he [she] makes this affidavit.

1.       That the Purchaser's Taxpayer Identification Number is ______________.

2.       That the Purchaser is not a "disqualified organization" within the
         meaning of Section 860E(e)(5) of the Internal Revenue Code of 1986, as
         amended (the "Code") and will not be a "disqualified organization" as
         of __________________ [date of transfer], and that the Purchaser is not
         acquiring a Residual Certificate (as defined in the Agreement) for the
         account of, or as agent (including a broker, nominee, or other
         middleman) for, any person or entity from which it has not received an
         affidavit substantially in the form of this affidavit. For these
         purposes, a "disqualified organization" means the United States, any
         state or political subdivision thereof, any foreign government, any
         international organization, any agency or instrumentality of any of the
         foregoing (other than an instrumentality if all of its activities are
         subject to tax and a majority of its board of directors is not selected
         by such governmental entity), any cooperative organization furnishing
         electric energy or providing telephone service to persons in rural
         areas as described in Code Section 1381(a)(2)(C), any "electing large
         partnership" within the meaning of Section 775 of the Code, or any
         organization (other than a farmers' cooperative described in Code
         Section 521) that is exempt from federal income tax unless such
         organization is subject to the tax on unrelated business income imposed
         by Code Section 511.

3.       That the Purchaser is not, and on __________________ [date of transfer]
         will not be, an employee benefit plan subject to Title I of the
         Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
         Section 4975 of the Code or substantially similar rules under state,
         local or federal law ("Similar Law"), the trustee of any such plan or a
         person acting on behalf of any such plan or investing the assets of any
         such plan to acquire a Residual Certificate.

<PAGE>

4.       That the Purchaser hereby acknowledges that under the terms of the
         Trust Agreement (the "Agreement") among Structured Asset Securities
         Corporation, HSBC Bank USA, as Trustee, Wells Fargo Bank Minnesota,
         National Association, as Securities Administrator and Aurora Loan
         Services Inc., as Master Servicer, dated as of June 1, 2003, no
         transfer of a Residual Certificate shall be permitted to be made to any
         person unless the Depositor and the Trustee have received a certificate
         from such transferee containing the representations in paragraphs 2, 3
         and 4 hereof.

5.       That the Purchaser does not hold REMIC residual securities as nominee
         to facilitate the clearance and settlement of such securities through
         electronic book-entry changes in accounts of participating
         organizations (such entity, a "Book-Entry Nominee").

6.       That the Purchaser does not have the intention to impede the assessment
         or collection of any federal, state or local taxes legally required to
         be paid with respect to such Residual Certificate, and that the
         Purchaser has provided financial statements or other financial
         information requested by the transferor in connection with the transfer
         of the Residual Certificate in order to permit the transferor to assess
         the financial capability of the Purchaser to pay such taxes.

7.       That the Purchaser will not transfer a Residual Certificate to any
         person or entity (i) as to which the Purchaser has actual knowledge
         that the requirements set forth in paragraph 2, paragraph 5 or
         paragraph 9 hereof are not satisfied or that the Purchaser has reason
         to believe does not satisfy the requirements set forth in paragraph 6
         hereof, and (ii) without obtaining from the prospective Purchaser an
         affidavit substantially in this form and providing to the Trustee a
         written statement substantially in the form of Exhibit D-2 to the
         Agreement.

8.       That the Purchaser understands that, as the holder of a Residual
         Certificate, the Purchaser may incur tax liabilities in excess of any
         cash flows generated by the interest and that it intends to pay taxes
         associated with holding such Residual Certificate as they become due.

9.       That the Purchaser (i) is a U.S. Person or (ii) is a Non-U.S. Person
         that holds a Residual Certificate in connection with the conduct of a
         trade or business within the United States and has furnished the
         transferor and the Trustee with an effective Internal Revenue Service
         Form W-8 ECI (Certificate of Foreign Person's Claim for Exemption From
         Withholding on Income Effectively Connected with the Conduct of a Trade
         or Business in the United States) or successor form at the time and in
         the manner required by the Code. "Non-U.S. Person" means any person
         other than (i) a citizen or resident of the United States; (ii) a
         corporation (or entity treated as a corporation for tax purposes)
         created or organized in the United States or under the laws of the
         United States or of any state thereof, including, for this purpose, the
         District of Columbia; (iii) a partnership (or entity treated as a
         partnership for tax purposes) organized in the United States or under
         the laws of the United States or of any state thereof, including, for
         this purpose, the District of Columbia (unless provided otherwise by
         future Treasury regulations); (iv) an estate whose income is includible
         in gross income for United States income tax purposes regardless of its

                                       D-2
<PAGE>

         source; (v) a trust, if a court within the United States is able to
         exercise primary supervision over the administration of the trust and
         one or more U.S. Persons have authority to control all substantial
         decisions of the trust or; (vi) and, to the extent provided in Treasury
         regulations, certain trusts in existence prior to August 20, 1996 that
         are treated as United States persons prior to such date and elect to
         continue to be treated as United States persons.

10.      That the Purchaser agrees to such amendments of the Trust Agreement as
         may be required to further effectuate the restrictions on transfer of
         any Residual Certificate to such a "disqualified organization," an
         agent thereof, a Book-Entry Nominee, or a person that does not satisfy
         the requirements of paragraph 6 and paragraph 9 hereof.

11.      That the Purchaser consents to the designation of the Securities
         Administrator as its agent to act as "tax matters person" of the Trust
         Fund pursuant to the Trust Agreement.

         Terms used in this transfer affidavit which are not otherwise defined
herein have the respective meanings assigned thereto in the Trust Agreement.

                                       D-3
<PAGE>

         IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[title of officer] this _____ day of __________, 20__.

                                         _______________________________________
                                              [name of Purchaser]

                                         By:____________________________________
                                            Name:
                                            Title:

                  Personally appeared before me the above-named [name of
officer] ________________, known or proved to me to be the same person who
executed the foregoing instrument and to be the [title of officer]
_________________ of the Purchaser, and acknowledged to me that he [she]
executed the same as his [her] free act and deed and the free act and deed of
the Purchaser.

                  Subscribed and sworn before me this _____ day of __________,
20__.

NOTARY PUBLIC

_________________________________

COUNTY OF________________________

STATE OF_________________________

My commission expires the _____ day of __________, 20__.

                                       D-4
<PAGE>

                                   EXHIBIT D-2
                                   -----------

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

                                                             ___________________
                                                                     Date

              Re:  Structured Asset Securities Corporation Mortgage Pass-Through
                   -------------------------------------------------------------
                   Certificates, Series 2003-22A
                   -----------------------------

                  _______________________ (the "Transferor") has reviewed the
attached affidavit of _____________________________ (the "Transferee"), and has
no actual knowledge that such affidavit is not true and has no reason to believe
that the information contained in paragraph 6 thereof is not true, and has no
reason to believe that the Transferee has the intention to impede the assessment
or collection of any federal, state or local taxes legally required to be paid
with respect to a Residual Certificate. In addition, the Transferor has
conducted a reasonable investigation at the time of the transfer and found that
the Transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the Transferee will not continue to pay
its debts as they become due.

                                                     Very truly yours,

                                                     ___________________________
                                                     Name:
                                                     Title:

<PAGE>

                                    EXHIBIT E
                                    ---------

                              SERVICING AGREEMENTS

                             See Exhibits 99.2-99.6

<PAGE>

                                    EXHIBIT F
                                    ---------

                     FORM OF RULE 144A TRANSFER CERTIFICATE

         Re:      Structured Asset Securities Corporation Mortgage Pass-Through
                  Certificates, Series 2003-22A
                  -----------------------------------------

                  Reference is hereby made to the Trust Agreement (the "Trust
Agreement"), dated as of June 1, 2003 among Structured Asset Securities
Corporation, as Depositor, Aurora Loan Services Inc., as Master Servicer, Wells
Fargo Bank Minnesota, National Association, as Securities Administrator and HSBC
Bank USA, as Trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Trust Agreement.

                  This letter relates to $_________ initial Certificate
Principal Amount of Class Certificates which are held in the form of Definitive
Certificates registered in the name of (the "Transferor"). The Transferor has
requested a transfer of such Definitive Certificates for Definitive Certificates
of such Class registered in the name of [insert name of transferee].

                  In connection with such request, and in respect of such
Certificates, the Transferor hereby certifies that such Certificates are being
transferred in accordance with (i) the transfer restrictions set forth in the
Trust Agreement and the Certificates and (ii) Rule 144A under the Securities Act
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 the benefit of the Trustee, the Securities Administrator, the Placement
Agent and the Depositor.

                                                     ___________________________
                                                          [Name of Transferor]

                                                     By:________________________
                                                        Name:
                                                        Title:

Dated: __________________, ________

<PAGE>

                                    EXHIBIT G
                                    ---------

                         FORM OF PURCHASER'S LETTER FOR
                        INSTITUTIONAL ACCREDITED INVESTOR

                                                              __________________
                                                                     Date

Dear Sirs:

         In connection with our proposed purchase of $______________ principal
amount of Structured Asset Securities Corporation Mortgage Pass-Through
Certificates, Series 2003-22A (the "Privately Offered Certificates") of
Structured Asset Securities Corporation (the "Depositor") which are held in the
form of Definitive Certificates, we confirm that:

1.       We understand that the Privately Offered Certificates have not been,
         and will not be, registered under the Securities Act of 1933, as
         amended (the "Securities Act"), 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 Privately Offered Certificates within two years of the
         later of the date of original issuance of the Privately Offered
         Certificates or the last day on which such Privately Offered
         Certificates are owned by the Depositor or any affiliate of the
         Depositor (which includes the Placement Agent) we will do so only (A)
         to the Depositor, (B) to "qualified institutional buyers" (within the
         meaning of Rule 144A under the Securities Act) in accordance with Rule
         144A under the Securities Act ("QIBs"), (C) pursuant to the exemption
         from registration provided by Rule 144 under the Securities Act, or (D)
         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 QIB (an "Institutional Accredited Investor") which, prior
         to such transfer, delivers to the Trustee under the Trust Agreement
         (the "Trust Agreement"), dated as of June 1, 2003 among Structured
         Asset Securities Corporation, as Depositor, Aurora Loan Services Inc.,
         as Master Servicer, Wells Fargo Bank Minnesota, National Association,
         as Securities Administrator and HSBC Bank USA, as Trustee, a signed
         letter in the form of this letter; and we further agree, in the
         capacities stated above, to provide to any person purchasing any of the
         Privately Offered Certificates from us a notice advising such purchaser
         that resales of the Privately Offered Certificates are restricted as
         stated herein.

2.       We understand that, in connection with any proposed resale of any
         Privately Offered Certificates to an Institutional Accredited Investor,
         we will be required to furnish to the Trustee, the Certificate
         Registrar and the Depositor a certification from such transferee in the
         form hereof 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 Securities Act. We further understand that the
         Privately Offered Certificates purchased by us will bear a legend to
         the foregoing effect.

<PAGE>

3.       We are acquiring the Privately Offered Certificates for investment
         purposes and not with a view to, or for offer or sale in connection
         with, any distribution in violation of the Securities 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
         Privately Offered Certificates, 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
         Privately Offered Certificates 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.       If we are acquiring ERISA-Restricted Certificates, we understand that
         in accordance with ERISA, the Code, Similar Law and the Underwriter's
         Exemption, no Plan and no person acting on behalf of such a Plan may
         acquire such Certificate except in accordance with Section 3.03(d) of
         the Trust Agreement.

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

                                       G-2
<PAGE>

         The Depositor, the Securities Administrator and the Trustee 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.

                                                     Very truly yours,

                                                     ___________________________
                                                          [Purchaser]

                                                     By_________________________
                                                       Name:
                                                       Title:

                                       G-3
<PAGE>

                                    EXHIBIT H
                                    ---------

                       [FORM OF ERISA TRANSFER AFFIDAVIT]

STATE OF NEW YORK    )
                     )  ss.:
COUNTY OF NEW YORK   )

                  The undersigned, being first duly sworn, deposes and says as
follows:

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 (x) is not, and on ___________ [date of transfer]
         will not be, an employee benefit plan subject to Title I of the
         Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
         Section 4975 of the Internal Revenue Code of 1986, as amended (the
         "Code") or substantially similar rules under state, local or other
         federal law ("Similar Law"), the trustee of any such plan or a person
         acting on behalf of any such plan or investing the assets of any such
         plan; or (y) if the Certificate has been the subject of an
         ERISA-Qualifying Underwriting, is an insurance company that is
         purchasing the Certificate with funds contained in an "insurance
         company general account" as defined in Section V(e) of Prohibited
         Transaction Class Exemption ("PTCE") 95-60 and the purchase and holding
         of the Certificate are covered under Sections I and III of PTCE 95-60.

3.       The Investor hereby acknowledges that under the terms of the Trust
         Agreement (the "Agreement") among Structured Asset Securities
         Corporation, as Depositor, Aurora Loan Services Inc., as Master
         Servicer, Wells Fargo Bank Minnesota, National Association, as
         Securities Administrator and HSBC Bank USA, as Trustee, dated as of
         June 1, 2003, no transfer of the ERISA-Restricted Certificates (other
         than the Class R Certificate) shall be permitted to be made to any
         person unless the Depositor, the Certificate Registrar and Trustee have
         received an affidavit from such transferee in the form hereof or an
         opinion of counsel as provided herein.

4.       Capitalized terms used but not defined herein shall have the meanings
         given to such terms in the Trust Agreement.

<PAGE>

                  IN WITNESS WHEREOF, the Investor has caused this instrument to
be executed on its behalf, pursuant to proper authority, by its duly authorized
officer, duly attested, this ____ day of _______________, 20__.

                                                     ___________________________
                                                          [Investor]

                                                     By:________________________
                                                        Name:
                                                        Title:

ATTEST:

___________________________

STATE OF             )
                     )  ss.:
COUNTY OF            )

                  Personally appeared before me the above-named
___________________, known or proved to me to be the same person who executed
the foregoing instrument and to be the _________________ of the Investor, and
acknowledged that he executed the same as his free act and deed and the free act
and deed of the Investor.

                  Subscribed and sworn before me this _____ day of ___________
20___.

                                                   _____________________________
                                                   NOTARY PUBLIC

                                                   My commission expires the
                                                   ____ day of __________, 20__.

<PAGE>

                                    EXHIBIT I
                                    ---------

                            MONTHLY REMITTANCE ADVICE

                             [INTENTIONALLY OMITTED]

<PAGE>

                                    EXHIBIT J
                                    ---------

                      MONTHLY ELECTRONIC DATA TRANSMISSION
                             [INTENTIONALLY OMITTED]

<PAGE>

                                    EXHIBIT K
                                    ---------

                               CUSTODIAL AGREEMENT

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   EXHIBIT L-1

                          FORM OF TRANSFER CERTIFICATE
                  FOR TRANSFER FROM RESTRICTED GLOBAL SECURITY
                         TO REGULATION S GLOBAL SECURITY
                      (Transfers pursuant to ss. 3.03(h)(B)
                                of the Agreement)

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

                  Re:  Structured Asset Securities Corporation Mortgage Loan
                       Trust Mortgage Pass-Through Certificates, Series 2003-22A

         Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer, Wells Fargo Bank Minnesota, National Association, as
Securities Administrator and HSBC Bank, USA, as Trustee, dated as of June 1,
2003. Capitalized terms used but not defined herein shall have the meanings
given to them in the Agreement.

         This letter relates to U.S. $____________________ aggregate principal
amount of Securities which are held in the form of a Restricted Global Security
with DTC in the name of [name of transferor]______________________________ (the
"Transferor") to effect the transfer of the Securities in exchange for an
equivalent beneficial interest in a Regulation S Global Security.

         In connection with such request, the Transferor does hereby certify
that such transfer has been effected in accordance with the transfer
restrictions set forth in the Agreement and the Securities and in accordance
with Rule 904 of Regulation S, and that:

                  a. the offer of the Securities was not made to a person in the
                  United States;

                  b. at the time the buy order was originated, the transferee
                  was outside the United States or the Transferor and any person
                  acting on its behalf reasonably believed that the transferee
                  was outside the United States;

                  c. no directed selling efforts have been made in contravention
                  of the requirements of Rule 903 or 904 of Regulation S, as
                  applicable;

                  d. the transaction is not part of a plan or scheme to evade
                  the registration requirements of the United States Securities
                  Act of 1933, as amended; and

                  e. the transferee is not a U.S. person (as defined in
                  Regulation S).

                                      L-1-1
<PAGE>

         The Depositor, the Securities Administrator and the Trustee 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
proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation S.

                                                     ___________________________
                                                     [Name of Transferor]

                                                     By: _______________________
                                                         Name:
                                                         Title:

Date:___________________________________  ______,

                                      L-1-2
<PAGE>

                                   EXHIBIT L-2

                    FORM OF TRANSFER CERTIFICATE FOR TRANSFER
                        FROM REGULATION S GLOBAL SECURITY
                          TO RESTRICTED GLOBAL SECURITY
                      (Transfers pursuant to ss. 3.03(h)(C)
                                of the Agreement)
                    ----------------------------------------

              Re:  Structured Asset Securities Corporation Mortgage
                   Pass-Through Certificates, Series 2003-22A

         Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services
Inc., as Master Servicer, Wells Fargo Bank Minnesota, National Association, as
Securities Administrator and HSBC Bank, USA as Trustee, dated as of June 1,
2003. Capitalized terms used but not defined herein shall have the meanings
given to them in the Agreement.

         This letter relates to U.S. $___________________ aggregate principal
amount of Securities which are held in the form of a Regulations S Global
Security in the name of [name of transferor]______________________________(the
"Transferor") to effect the transfer of the Securities in exchange for an
equivalent beneficial interest in a Restricted Global Security.

         In connection with such request, and in respect of such Securities, the
Transferor does hereby certify that such Securities are being transferred in
accordance with (i) the transfer restrictions set forth in the Agreement and the
Securities and (ii) Rule 144A under the United States Securities Act of 1933, as
amended, to a transferee that the Transferor reasonably believes is purchasing
the Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a qualified institutional buyer within the meaning of 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
jurisdiction.

                                                     ___________________________
                                                     [Name of Transferor]

                                                     By:________________________
                                                        Name:
                                                        Title:

Date:___________________________________  ______,

                                      L-2-1
<PAGE>

                                    EXHIBIT M
                     FORM OF CERTIFICATION TO BE PROVIDED TO
                      THE DEPOSITOR AND THE MASTER SERVICER
                         BY THE SECURITIES ADMINISTRATOR

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services Inc.
2530 South Parker Road, Suite 601
Aurora, Colorado 80014

Re:      Structured Asset Securities Corporation,
         Mortgage Pass-Through Certificates, Series 2003-22A

I, [[Identify the certifying individual]], a [[title]] of Wells Fargo Bank
Minnesota, National Association, as Securities Administrator, hereby certify to
Aurora Loan Services, Inc., as master servicer (the "Master Servicer"), and its
officers, directors and affiliates, and with the knowledge and intent that they
will rely upon this certification, that:

(i)      I have reviewed the annual report on Form 10-K for the fiscal year [[
         ]], and all reports on Form 8-K containing distribution reports filed
         in respect of periods included in the year covered by that annual
         report, relating to the above referenced trust;

(ii)     Based on my knowledge, the information in these distribution reports
         prepared by the Securities Administrator, taken as a whole, does not
         contain any untrue statement of a material fact or omit to state
         material fact necessary to make the statements made, in light of the
         circumstances under which such statements were made, not misleading as
         of the last day of the period covered by that annual report; and

(iii)    Based on my knowledge, the distribution information required to be
         provided by Securities Administrator under the Trust Agreement is
         included in these reports.

Date:

                                                     Wells Fargo Bank Minnesota,
                                                     National Association, as
                                                     Securities Administrator

                                                     By:     ___________________
                                                     Name:   ___________________
                                                     Title:  ___________________

                                        1
<PAGE>

                                   SCHEDULE A
                                   -----------

                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

<PAGE>

                                   SCHEDULE B
                                   ----------

                         EMPLOYEE MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]<PAGE>

                                                                  EXECUTION COPY

================================================================================

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                    Depositor

              CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC,
                                     Seller

                            LITTON LOAN SERVICING LP,
                                    Servicer

                                       and

                         U.S BANK NATIONAL ASSOCIATION,
                                     Trustee

                         POOLING AND SERVICING AGREEMENT

                            Dated as of June 1, 2003

                                 2003-CB3 Trust

         C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                             PAGE
<S>                                                                                                          <C>
ARTICLE I             DEFINITIONS..........................................................................    12

     Section 1.01          Defined Terms...................................................................    12

     Section 1.02          Accounting......................................................................    52

ARTICLE II            CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES......................    52

     Section 2.01          Conveyance of Mortgage Loans....................................................    53

     Section 2.02          Acceptance by Trustee...........................................................    55

     Section 2.03          Repurchase or Substitution of Mortgage Loans by the Seller......................    56

     Section 2.04          Representations and Warranties of the Seller with Respect to the Mortgage
                           Loans...........................................................................    59

     Section 2.05          Representations, Warranties and Covenants of the Servicer.......................    60

     Section 2.06          Representations and Warranties of the Depositor.................................    62

     Section 2.07          Issuance of Certificates and the Uncertificated Regular Interests...............    64

     Section 2.08          Representations and Warranties of the Seller....................................    64

     Section 2.09          Covenants of the Seller.........................................................    66

ARTICLE III           ADMINISTRATION AND SERVICING OF THE TRUST FUND.......................................    67

     Section 3.01          Servicer to Act as Servicer.....................................................    67

     Section 3.02          Collection of Mortgage Loan Payments............................................    69

     Section 3.03          Realization Upon Defaulted Mortgage Loans.......................................    69

     Section 3.04          Collection Account and Distribution Account.....................................    70

     Section 3.05          Permitted Withdrawals From the Collection Account...............................    72

     Section 3.06          Establishment of Escrow Account; Deposits in Escrow Account.....................    73

     Section 3.07          Permitted Withdrawals From Escrow Account.......................................    73

     Section 3.08          Payment of Taxes, Insurance and Other Charges; Collections Thereunder...........    74

     Section 3.09          Transfer of Accounts............................................................    75

     Section 3.10          Maintenance of Hazard Insurance.................................................    75

     Section 3.11          Maintenance of Mortgage Impairment Insurance Policy.............................    76

     Section 3.12          Fidelity Bond, Errors and Omissions Insurance...................................    76

     Section 3.13          Title, Management and Disposition of REO Property...............................    77
</TABLE>

                                        i

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                             PAGE
<S>                                                                                                          <C>
     Section 3.14          Due-on-Sale Clauses; Assumption and Substitution Agreements.....................    79

     Section 3.15          Notification of Adjustments.....................................................    80

     Section 3.16          Optional Purchases of Mortgage Loans by Servicer................................    80

     Section 3.17          Trustee to Cooperate; Release of Files..........................................    81

     Section 3.18          Servicing Compensation..........................................................    82

     Section 3.19          Annual Statement as to Compliance...............................................    82

     Section 3.20          Annual Independent Certified Public Accountants' Reports........................    83

     Section 3.21          Access to Certain Documentation and Information Regarding the Mortgage
                           Loans...........................................................................    83

     Section 3.22          Reserved........................................................................    83

     Section 3.23          Obligations of the Servicer in Respect of Compensating Interest.................    83

     Section 3.24          Obligations of the Servicer in Respect of Mortgage Interest Rates and
                           Monthly Payments................................................................    84

     Section 3.25          Investment of Funds in the Collection Account and the Distribution Account......    84

     Section 3.26          Liability of Servicer; Indemnification..........................................    85

     Section 3.27          Reports of Foreclosure and Abandonment of Mortgaged Properties..................    86

     Section 3.28          Protection of Assets............................................................    86

     Section 3.29          Periodic Filings................................................................    87

     Section 3.30          Advance Facility................................................................    89

ARTICLE IV            FLOW OF FUNDS........................................................................    91

     Section 4.01          Interest Distributions..........................................................    91

     Section 4.02          Distributions of Principal and Monthly Excess Cashflow Amounts..................    92

     Section 4.03          Allocation of Losses............................................................    97

     Section 4.04          Method of Distribution..........................................................    98

     Section 4.05          Distributions on Book-Entry Certificates........................................    98

     Section 4.06          Statements......................................................................    98

     Section 4.07          Remittance Reports; Advances....................................................   101
</TABLE>

                                       ii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                             PAGE
<S>                                                                                                          <C>
     Section 4.08          REMIC Distributions.............................................................   103

ARTICLE V             THE CERTIFICATES.....................................................................   107

     Section 5.01          The Certificates................................................................   107

     Section 5.02          Registration of Transfer and Exchange of Certificates...........................   107

     Section 5.03          Mutilated, Destroyed, Lost or Stolen Certificates...............................   112

     Section 5.04          Persons Deemed Owners...........................................................   113

     Section 5.05          Appointment of Paying Agent.....................................................   113

ARTICLE VI            THE SELLER, THE SERVICER AND THE DEPOSITOR...........................................   113

     Section 6.01          Liability of the Seller, the Servicer and the Depositor.........................   113

     Section 6.02          Merger or Consolidation of, or Assumption of the Obligations of, the
                           Seller, the Servicer or the Depositor...........................................   114

     Section 6.03          Limitation on Liability of the Servicer and Others..............................   114

     Section 6.04          Servicer Not to Resign..........................................................   115

     Section 6.05          Delegation of Duties............................................................   115

ARTICLE VII           DEFAULT..............................................................................   118

     Section 7.01          Servicer Events of Termination..................................................   118

     Section 7.02          Trustee to Act; Appointment of Successor........................................   120

     Section 7.03          Waiver of Defaults..............................................................   121

     Section 7.04          Notification to Certificateholders..............................................   121

     Section 7.05          Survivability of Servicer Liabilities...........................................   122

ARTICLE VIII          THE TRUSTEE..........................................................................   122

     Section 8.01          Duties of Trustee...............................................................   122

     Section 8.02          Certain Matters Affecting the Trustee...........................................   124

     Section 8.03          Trustee Not Liable for Certificates or Mortgage Loans...........................   125

     Section 8.04          Trustee May Own Certificates....................................................   126

     Section 8.05          Seller to Pay Trustee Fees and Expenses.........................................   126

     Section 8.06          Eligibility Requirements for Trustee............................................   126

     Section 8.07          Resignation or Removal of Trustee...............................................   127

     Section 8.08          Successor Trustee...............................................................   128

     Section 8.09          Merger or Consolidation of Trustee..............................................   128
</TABLE>

                                       iii

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                                             PAGE
<S>                                                                                                          <C>
     Section 8.10          Appointment of Co-Trustee or Separate Trustee...................................   128

     Section 8.11          Limitation of Liability.........................................................   130

     Section 8.12          Trustee May Enforce Claims Without Possession of Certificates...................   130

     Section 8.13          Suits for Enforcement...........................................................   130

     Section 8.14          Waiver of Bond Requirement......................................................   130

     Section 8.15          Waiver of Inventory, Accounting and Appraisal Requirement.......................   131

     Section 8.16          Compliance with National Housing Act of 1934....................................   131

ARTICLE IX            REMIC AND GRANTOR TRUST ADMINISTRATION...............................................   131

     Section 9.01          REMIC Administration............................................................   131

     Section 9.02          Prohibited Transactions and Activities..........................................   134

     Section 9.03          Indemnification with Respect to Certain Taxes and Loss of REMIC Status..........   134

     Section 9.04          REO Property....................................................................   135

     Section 9.05          Grantor Trust Administration....................................................   136

ARTICLE X             TERMINATION..........................................................................   136

     Section 10.01         Termination.....................................................................   136

     Section 10.02         Additional Termination Requirements.............................................   138

ARTICLE XI            MISCELLANEOUS PROVISIONS.............................................................   138

     Section 11.01         Amendment.......................................................................   138

     Section 11.02         Recordation of Agreement; Counterparts..........................................   140

     Section 11.03         Limitation on Rights of Certificateholders......................................   140

     Section 11.04         Governing Law; Jurisdiction.....................................................   141

     Section 11.05         Notices.........................................................................   141

     Section 11.06         Severability of Provisions......................................................   142

     Section 11.07         Article and Section References..................................................   142

     Section 11.08         Notice to the Rating Agencies...................................................   142

     Section 11.09         Further Assurances..............................................................   143

     Section 11.10         Section 11.10   Benefits of Agreement...........................................   143

     Section 11.11         Acts of Certificateholders......................................................   143
</TABLE>

                                       iv

<PAGE>

                                    EXHIBITS:

<TABLE>
<S>               <C>
Exhibit A-1       Form of Class AF-1 Certificates
Exhibit A-2       Form of Class AV-1 Certificates
Exhibit A-3       Form of Class A-IO Certificates
Exhibit B-1       Form of Class B-1 Certificates
Exhibit B-2       Form of Class B-2 Certificates
Exhibit B-3       Form of Class B-3 Certificates
Exhibit C-1-1     Form of Class R Certificate
Exhibit C-1-2     Form of Class R-X Certificates
Exhibit C-2       Form of Class M-1 Certificates
Exhibit C-3       Form of Class M-2 Certificates
Exhibit C-4       Form of Class X Certificates
Exhibit C-5       Form of Class N Certificates
Exhibit D-1       Mortgage Loan Schedule for Group I Mortgage Loans
Exhibit D-2       Mortgage Loan Schedule for Group II Mortgage Loans
Exhibit E         Form of Request for Release of Documents
Exhibit F-1       Form of Trustee's Initial Certification
Exhibit F-2       Form of Trustee's Final Certification
Exhibit F-3       Form of Receipt of Mortgage Note
Exhibit G         Mortgage Loan Purchase Agreement
Exhibit H         Form of Lost Note Affidavit
Exhibit I         Form of ERISA Representation
Exhibit J         Form of Investment Letter
Exhibit K         Form of Residual Certificate Transfer Affidavit
Exhibit L         Form of Transferor Certificate
Exhibit M         [Reserved]
Exhibit N         Blanket Letter of Representations
Exhibit O         [Reserved]
Exhibit P         Monthly Information Provided by Servicer
Exhibit Q         Form of Officer's Certificate with Respect to Prepayments
Exhibit R         Form of Notice of Prepayment Penalty Inconsistency
Exhibit S         Form of Certification
Exhibit T         Form of Certification to be Provided by Trustee
Exhibit U         Schedule of Mortgage Loan without Title Policies
</TABLE>

                                        v

<PAGE>

         This Pooling and Servicing Agreement is dated as of June 1, 2003 (the
"Agreement"), among MERRILL LYNCH MORTGAGE INVESTORS, INC., as depositor (the
"Depositor"), CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC, as seller
(the "Seller"), LITTON LOAN SERVICING LP, as servicer (the "Servicer"), and U.S.
BANK NATIONAL ASSOCIATION, as trustee (the "Trustee").

                              PRELIMINARY STATEMENT

         The Depositor intends to sell pass-through certificates (collectively,
the "Certificates"), to be issued hereunder in multiple Classes, which in the
aggregate will evidence the entire beneficial ownership interest in the Trust
Fund created hereunder. The Certificates will consist of twelve Classes of
Certificates, designated as (i) the Class AF-1, Class AV-1 and Class A-IO
Certificates, (ii) the Class M-1 and Class M-2 Certificates, (iii) the Class
B-1, Class B-2 and Class B-3 Certificates, (iv) the Class N Certificates, (v)
the Class X Certificates, (vi) the Class R Certificates and the Class R-X
Certificates.

         As provided herein, the Trustee shall elect that the Trust Fund be
treated for federal income tax purposes as eight separate real estate mortgage
investment conduits (each a "REMIC" or, in the alternative, "REMIC 1," "REMIC
2," "REMIC 3," "REMIC 4," "REMIC 5," "REMIC 6," "REMIC 7" and "REMIC 8"
respectively). The REMIC 8 Regular Interests represent all of the "regular
interests in REMIC 8. The REMIC 7 Regular Interests represent all of the
"regular interests in REMIC 7. The REMIC 6 Regular Interests represent all of
the "regular interests" in REMIC 6. The REMIC 5 Regular Interests represent all
of the "regular interests" in REMIC 5. The REMIC 4 Regular Interests represent
all of the "regular interests" in REMIC 4. Each Class of Cap Carryover
Certificates (other than the Class B-1, Class B-2 and Class B-3 Certificates)
represents beneficial ownership of the Corresponding REMIC 4 Regular Interest
and the right to receive Carryover Amounts. The Class B-1 Certificates represent
beneficial ownership of the REMIC 6 Regular Interest and the right to receive
Carryover Amounts. The Class B-2 Certificates represent beneficial ownership of
the REMIC 7 Regular Interest and the right to receive Carryover Amounts. The
Class B-3 Certificates represent beneficial ownership of the REMIC 8 Regular
Interest and the right to receive Carryover Amounts. The Class N and Class X
Certificates together represent beneficial ownership of the REMIC 5 X/N
Interest, subject to the obligation to pay Carryover Amounts. Each of the Class
R-1, Class R-2, Class R-3 and Class R-4 Interests, represented collectively by
the Class R Certificates, represents the sole Class of "residual interest" in
REMIC 1, REMIC 2, REMIC 3 and REMIC 4, respectively, for purposes of the REMIC
Provisions. Each of the Class R-5, Class R-6, Class R-7 and Class R-8 Interests,
represented collectively by the Class R-X Certificates, represent the sole Class
of "residual interest" in REMIC 5, REMIC 6, REMIC 7 and REMIC 8, respectively,
for purposes of the REMIC provisions. The REMIC 3 Regular Interests represent
all of the "regular interests" in REMIC 3. The REMIC 2 Regular Interests
represent all of the "regular interests" in REMIC 2. The REMIC 1 Regular
Interests represent all of the "regular interests" in REMIC 1. The REMIC 1
Regular Interests will be held as assets of REMIC 2. The REMIC 2 Regular
Interests, other than the REMIC 2 IO Interests, will be held as assets of REMIC
3. The REMIC 3 Regular Interests and the REMIC 2 IO Interests will be held as
assets of REMIC 4. The REMIC 4 X/N Interest will be held as the sole asset of
REMIC 5. The REMIC 5 X/N Interest will be held as an asset of the Grantor Trust,
which will also hold the rights of the Cap Carryover Certificates to receive
their respective Carryover Amounts. The

<PAGE>

REMIC 4 B-1 Interest will be held as the sole asset of REMIC 6. The REMIC 4 B-2
Interest will be held as the sole asset of REMIC 7. The REMIC 4 B-3 Interest
will be held as the sole asset of REMIC 8. The "latest possible maturity date"
for federal income tax purposes of all interests created hereby will be the
Distribution Date on July 25, 2033.

REMIC 1

         The following table specifies the class designation, interest rate, and
initial principal amount for each class of REMIC 1 Interests.

<TABLE>
<CAPTION>
Designation              Interest Rate           Initial Principal Amount           Related Loan Group
-----------              -------------           ------------------------           ------------------
<S>                      <C>                     <C>                                <C>
 LT1-I-1                      (1)                     $17,157,000.00                   Loan Group I
 LT1-I-2                      (1)                     $15,881,000.00                   Loan Group I
 LT1-I-3                      (1)                     $14,700,000.00                   Loan Group I
 LT1-I-4                      (1)                     $13,606,000.00                   Loan Group I
 LT1-I-5                      (1)                     $12,593,000.00                   Loan Group I
 LT1-I-6                      (1)                     $11,657,000.00                   Loan Group I
 LT1-I-7                      (1)                     $10,789,000.00                   Loan Group I
 LT1-I-8                      (1)                     $ 9,985,000.00                   Loan Group I
 LT1-I-9                      (1)                     $ 9,243,000.00                   Loan Group I
 LT1-I-10                     (1)                     $ 8,554,000.00                   Loan Group I
 LT1-I-11                     (1)                     $ 7,918,000.00                   Loan Group I
 LT1-I-12                     (1)                     $ 7,328,000.00                   Loan Group I
 LT1-I-13                     (1)                     $ 6,782,000.00                   Loan Group I
 LT1-I-14                     (1)                     $ 6,278,000.00                   Loan Group I
 LT1-I-15                     (1)                     $ 5,810,000.00                   Loan Group I
 LT1-I-16                     (1)                     $ 5,377,000.00                   Loan Group I
 LT1-I-17                     (1)                     $ 4,976,000.00                   Loan Group I
 LT1-I-18                     (1)                     $ 4,606,000.00                   Loan Group I
 LT1-I-19                     (1)                     $ 4,262,000.00                   Loan Group I
 LT1-I-20                     (1)                     $ 3,945,000.00                   Loan Group I
 LT1-I-21                     (1)                     $ 3,651,000.00                   Loan Group I
 LT1-I-22                     (1)                     $ 3,379,000.00                   Loan Group I
 LT1-I-23                     (1)                     $ 3,127,000.00                   Loan Group I
 LT1-I-24                     (1)                     $ 2,894,000.00                   Loan Group I
 LT1-I-25                     (1)                     $ 2,678,000.00                   Loan Group I
 LT1-I-26                     (1)                     $ 2,478,000.00                   Loan Group I
 LT1-I-27                     (1)                     $ 2,294,000.00                   Loan Group I
 LT1-I-28                     (1)                     $ 2,123,000.00                   Loan Group I
 LT1-I-29                     (1)                     $ 1,964,000.00                   Loan Group I
 LT1-I-30                     (1)                     $24,326,000.00                   Loan Group I
 LT1-I-X                      (1)                     $       817.63                   Loan Group I
 LT1-II-1                     (2)                     $ 4,920,000.00                   Loan Group II
 LT1-II-2                     (2)                     $ 4,555,000.00                   Loan Group II
 LT1-II-3                     (2)                     $ 4,218,000.00                   Loan Group II
</TABLE>

                                        2

<PAGE>

<TABLE>
<S>                      <C>                     <C>                                <C>
 LT1-II-4                     (2)                     $ 3,905,000.00                   Loan Group II
 LT1-II-5                     (2)                     $ 3,616,000.00                   Loan Group II
 LT1-II-6                     (2)                     $ 3,348,000.00                   Loan Group II
 LT1-II-7                     (2)                     $ 3,099,000.00                   Loan Group II
 LT1-II-8                     (2)                     $ 2,870,000.00                   Loan Group II
 LT1-II-9                     (2)                     $ 2,657,000.00                   Loan Group II
 LT1-II-10                    (2)                     $ 2,460,000.00                   Loan Group II
 LT1-II-11                    (2)                     $ 2,277,000.00                   Loan Group II
 LT1-II-12                    (2)                     $ 2,109,000.00                   Loan Group II
 LT1-II-13                    (2)                     $ 1,953,000.00                   Loan Group II
 LT1-II-14                    (2)                     $ 1,807,000.00                   Loan Group II
 LT1-II-15                    (2)                     $ 1,674,000.00                   Loan Group II
 LT1-II-16                    (2)                     $ 1,549,000.00                   Loan Group II
 LT1-II-17                    (2)                     $ 1,435,000.00                   Loan Group II
 LT1-II-18                    (2)                     $ 1,328,000.00                   Loan Group II
 LT1-II-19                    (2)                     $ 1,229,000.00                   Loan Group II
 LT1-II-20                    (2)                     $ 1,139,000.00                   Loan Group II
 LT1-II-21                    (2)                     $ 1,054,000.00                   Loan Group II
 LT1-II-22                    (2)                     $   975,000.00                   Loan Group II
 LT1-II-23                    (2)                     $   904,000.00                   Loan Group II
 LT1-II-24                    (2)                     $   836,000.00                   Loan Group II
 LT1-II-25                    (2)                     $   774,000.00                   Loan Group II
 LT1-II-26                    (2)                     $   717,000.00                   Loan Group II
 LT1-II-27                    (2)                     $   663,000.00                   Loan Group II
 LT1-II-28                    (2)                     $   614,000.00                   Loan Group II
 LT1-II-29                    (2)                     $   569,000.00                   Loan Group II
 LT1-II-30                    (2)                     $ 7,704,000.00                   Loan Group II
 LT1-II-X                     (2)                     $       950.07                   Loan Group II
 R-1                          (3)                                 (3)                  N/A
</TABLE>

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

(1) For any Distribution Date, the interest rate for each REMIC 1 Regular
    Interest containing "I" in its designation shall be a per annum rate equal
    to Group I Net Rate for such Distribution Date.

(2) For any Distribution Date, the interest rate for each REMIC 1 Regular
    Interest containing "II" in its designation shall be a per annum rate equal
    to Group II Net Rate for such Distribution Date.

(3) The Class R-1 Interest shall represent the sole class of residual interest
    in REMIC 1. The Class R-1 Interest will not have a principal amount or an
    interest rate. The Class R-1 Interest shall be represented by the Class R
    Certificate.

                                        3

<PAGE>

REMIC 2

         The following table specifies the class designation, interest rate, and
initial principal amount for each class of REMIC 2 Interests.

<TABLE>
<CAPTION>
                                                                 Initial Principal
                                                                 Amount or Initial
                                                                     Notional
Designation        Interest Rate     Adjustment Period            Principal Amount       Related Loan Group
-----------        -------------     -----------------           ------------------      ------------------
<S>                <C>               <C>                         <C>                     <C>
 LT2-I-1                 (1)           July 2003                   $17,157,000.00           Loan Group I
 LT2-I-2                 (1)           August 2003                 $15,881,000.00           Loan Group I
 LT2-I-3                 (1)           September 2003              $14,700,000.00           Loan Group I
 LT2-I-4                 (1)           October 2003                $13,606,000.00           Loan Group I
 LT2-I-5                 (1)           November 2003               $12,593,000.00           Loan Group I
 LT2-I-6                 (1)           December 2003               $11,657,000.00           Loan Group I
 LT2-I-7                 (1)           January 2004                $10,789,000.00           Loan Group I
 LT2-I-8                 (1)           February 2004               $ 9,985,000.00           Loan Group I
 LT2-I-9                 (1)           March 2004                  $ 9,243,000.00           Loan Group I
 LT2-I-10                (1)           April 2004                  $ 8,554,000.00           Loan Group I
 LT2-I-11                (1)           May 2004                    $ 7,918,000.00           Loan Group I
 LT2-I-12                (1)           June 2004                   $ 7,328,000.00           Loan Group I
 LT2-I-13                (1)           July 2004                   $ 6,782,000.00           Loan Group I
 LT2-I-14                (1)           August 2004                 $ 6,278,000.00           Loan Group I
 LT2-I-15                (1)           September 2004              $ 5,810,000.00           Loan Group I
 LT2-I-16                (1)           October 2004                $ 5,377,000.00           Loan Group I
 LT2-I-17                (1)           November 2004               $ 4,976,000.00           Loan Group I
 LT2-I-18                (1)           December 2004               $ 4,606,000.00           Loan Group I
 LT2-I-19                (1)           January 2005                $ 4,262,000.00           Loan Group I
 LT2-I-20                (1)           February 2005               $ 3,945,000.00           Loan Group I
 LT2-I-21                (1)           March 2005                  $ 3,651,000.00           Loan Group I
 LT2-I-22                (1)           April 2005                  $ 3,379,000.00           Loan Group I
 LT2-I-23                (1)           May 2005                    $ 3,127,000.00           Loan Group I
 LT2-I-24                (1)           June 2005                   $ 2,894,000.00           Loan Group I
 LT2-I-25                (1)           July 2005                   $ 2,678,000.00           Loan Group I
 LT2-I-26                (1)           August 2005                 $ 2,478,000.00           Loan Group I
 LT2-I-27                (1)           September 2005              $ 2,294,000.00           Loan Group I
 LT2-I-28                (1)           October 2005                $ 2,123,000.00           Loan Group I
 LT2-I-29                (1)           November 2005               $ 1,964,000.00           Loan Group I
 LT2-I-30                (1)           December 2005               $24,326,000.00           Loan Group I
 LT2-I-X                 (2)           N/A                         $       817.63           Loan Group I
 LT2-I-1-IO              (3)           July 2003                   $17,157,000.00(8)        Loan Group I
 LT2-I-2-IO              (3)           August 2003                 $15,881,000.00(8)        Loan Group I
 LT2-I-3-IO              (3)           September 2003              $14,700,000.00(8)        Loan Group I
</TABLE>

                                        4

<PAGE>

<TABLE>
<S>                <C>               <C>                         <C>                       <C>
 LT2-I-4-IO              (3)           October 2003              $13,606,000.00(8)         Loan Group I
 LT2-I-5-IO              (3)           November 2003             $12,593,000.00(8)         Loan Group I
 LT2-I-6-IO              (3)           December 2003             $11,657,000.00(8)         Loan Group I
 LT2-I-7-IO              (3)           January 2004              $10,789,000.00(8)         Loan Group I
 LT2-I-8-IO              (3)           February 2004             $ 9,985,000.00(8)         Loan Group I
 LT2-I-9-IO              (3)           March 2004                $ 9,243,000.00(8)         Loan Group I
 LT2-I-10-IO             (3)           April 2004                $ 8,554,000.00(8)         Loan Group I
 LT2-I-11-IO             (3)           May 2004                  $ 7,918,000.00(8)         Loan Group I
 LT2-I-12-IO             (3)           June 2004                 $ 7,328,000.00(8)         Loan Group I
 LT2-I-13-IO             (3)           July 2004                 $ 6,782,000.00(8)         Loan Group I
 LT2-I-14-IO             (3)           August 2004               $ 6,278,000.00(8)         Loan Group I
 LT2-I-15-IO             (3)           September 2004            $ 5,810,000.00(8)         Loan Group I
 LT2-I-16-IO             (3)           October 2004              $ 5,377,000.00(8)         Loan Group I
 LT2-I-17-IO             (3)           November 2004             $ 4,976,000.00(8)         Loan Group I
 LT2-I-18-IO             (3)           December 2004             $ 4,606,000.00(8)         Loan Group I
 LT2-I-19-IO             (3)           January 2005              $ 4,262,000.00(8)         Loan Group I
 LT2-I-20-IO             (3)           February 2005             $ 3,945,000.00(8)         Loan Group I
 LT2-I-21-IO             (3)           March 2005                $ 3,651,000.00(8)         Loan Group I
 LT2-I-22-IO             (3)           April 2005                $ 3,379,000.00(8)         Loan Group I
 LT2-I-23-IO             (3)           May 2005                  $ 3,127,000.00(8)         Loan Group I
 LT2-I-24-IO             (3)           June 2005                 $ 2,894,000.00(8)         Loan Group I
 LT2-I-25-IO             (3)           July 2005                 $ 2,678,000.00(8)         Loan Group I
 LT2-I-26-IO             (3)           August 2005               $ 2,478,000.00(8)         Loan Group I
</TABLE>

                                        5

<PAGE>

<TABLE>
<S>                <C>               <C>                         <C>                       <C>
 LT2-I-27-IO             (3)           September 2005            $ 2,294,000.00(8)         Loan Group I
 LT2-I-28-IO             (3)           October 2005              $ 2,123,000.00(8)         Loan Group I
 LT2-I-29-IO             (3)           November 2005             $ 1,964,000.00(8)         Loan Group I
 LT2-I-30-IO             (3)           December 2005             $24,326,000.00(8)         Loan Group I
 LT2-II-1                (4)           July 2003                 $ 4,920,000.00            Loan Group II
 LT2-II-2                (4)           August 2003               $ 4,555,000.00            Loan Group II
 LT2-II-3                (4)           September 2003            $ 4,218,000.00            Loan Group II
 LT2-II-4                (4)           October 2003              $ 3,905,000.00            Loan Group II
 LT2-II-5                (4)           November 2003             $ 3,616,000.00            Loan Group II
 LT2-II-6                (4)           December 2003             $ 3,348,000.00            Loan Group II
 LT2-II-7                (4)           January 2004              $ 3,099,000.00            Loan Group II
 LT2-II-8                (4)           February 2004             $ 2,870,000.00            Loan Group II
 LT2-II-9                (4)           March 2004                $ 2,657,000.00            Loan Group II
 LT2-II-10               (4)           April 2004                $ 2,460,000.00            Loan Group II
 LT2-II-11               (4)           May 2004                  $ 2,277,000.00            Loan Group II
 LT2-II-12               (4)           June 2004                 $ 2,109,000.00            Loan Group II
 LT2-II-13               (4)           July 2004                 $ 1,953,000.00            Loan Group II
 LT2-II-14               (4)           August 2004               $ 1,807,000.00            Loan Group II
 LT2-II-15               (4)           September 2004            $ 1,674,000.00            Loan Group II
 LT2-II-16               (4)           October 2004              $ 1,549,000.00            Loan Group II
 LT2-II-17               (4)           November 2004             $ 1,435,000.00            Loan Group II
 LT2-II-18               (4)           December 2004             $ 1,328,000.00            Loan Group II
 LT2-II-19               (4)           January 2005              $ 1,229,000.00            Loan Group II
 LT2-II-20               (4)           February 2005             $ 1,139,000.00            Loan Group II
 LT2-II-21               (4)           March 2005                $ 1,054,000.00            Loan Group II
 LT2-II-22               (4)           April 2005                $   975,000.00            Loan Group II
 LT2-II-23               (4)           May 2005                  $   904,000.00            Loan Group II
 LT2-II-24               (4)           June 2005                 $   836,000.00            Loan Group II
 LT2-II-25               (4)           July 2005                 $   774,000.00            Loan Group II
 LT2-II-26               (4)           August 2005               $   717,000.00            Loan Group II
 LT2-II-27               (4)           September 2005            $   663,000.00            Loan Group II
 LT2-II-28               (4)           October 2005              $   614,000.00            Loan Group II
 LT2-II-29               (4)           November 2005             $   569,000.00            Loan Group II
 LT2-II-30               (4)           December 2005             $ 7,704,000.00            Loan Group II
 LT2-II-X                (5)           N/A                       $       950.07            Loan Group II
 LT2-II-1-IO             (6)           July 2003                 $ 4,920,000.00(8)         Loan Group II
 LT2-II-2-IO             (6)           August 2003               $ 4,555,000.00(8)         Loan Group II
 LT2-II-3-IO             (6)           September 2003            $ 4,218,000.00(8)         Loan Group II
</TABLE>

                                        6

<PAGE>

<TABLE>
<S>                <C>               <C>                         <C>                      <C>
 LT2-II-4-IO             (6)           October 2003              $3,905,000.00(8)         Loan Group II
 LT2-II-5-IO             (6)           November 2003             $3,616,000.00(8)         Loan Group II
 LT2-II-6-IO             (6)           December 2003             $3,348,000.00(8)         Loan Group II
 LT2-II-7-IO             (6)           January 2004              $3,099,000.00(8)         Loan Group II
 LT2-II-8-IO             (6)           February 2004             $2,870,000.00(8)         Loan Group II
 LT2-II-9-IO             (6)           March 2004                $2,657,000.00(8)         Loan Group II
 LT2-II-10-IO            (6)           April 2004                $2,460,000.00(8)         Loan Group II
 LT2-II-11-IO            (6)           May 2004                  $2,277,000.00(8)         Loan Group II
 LT2-II-12-IO            (6)           June 2004                 $2,109,000.00(8)         Loan Group II
 LT2-II-13-IO            (6)           July 2004                 $1,953,000.00(8)         Loan Group II
 LT2-II-14-IO            (6)           August 2004               $1,807,000.00(8)         Loan Group II
 LT2-II-15-IO            (6)           September 2004            $1,674,000.00(8)         Loan Group II
 LT2-II-16-IO            (6)           October 2004              $1,549,000.00(8)         Loan Group II
 LT2-II-17-IO            (6)           November 2004             $1,435,000.00(8)         Loan Group II
 LT2-II-18-IO            (6)           December 2004             $1,328,000.00(8)         Loan Group II
 LT2-II-19-IO            (6)           January 2005              $1,229,000.00(8)         Loan Group II
 LT2-II-20-IO            (6)           February 2005             $1,139,000.00(8)         Loan Group II
 LT2-II-21-IO            (6)           March 2005                $1,054,000.00(8)         Loan Group II
 LT2-II-22-IO            (6)           April 2005                $  975,000.00(8)         Loan Group II
 LT2-II-23-IO            (6)           May 2005                  $  904,000.00(8)         Loan Group II
 LT2-II-24-IO            (6)           June 2005                 $  836,000.00(8)         Loan Group II
 LT2-II-25-IO            (6)           July 2005                 $  774,000.00(8)         Loan Group II
 LT2-II-26-IO            (6)           August 2005               $  717,000.00(8)         Loan Group II
 LT2-II-27-IO            (6)           September 2005            $  663,000.00(8)         Loan Group II
 LT2-II-28-IO            (6)           October 2005              $  614,000.00(8)         Loan Group II
 LT2-II-29-IO            (6)           November 2005             $  569,000.00(8)         Loan Group II
 LT2-II-30-IO            (6)           December 2005             $7,704,000.00(8)         Loan Group II
</TABLE>

                                        7

<PAGE>

<TABLE>
<S>                      <C>           <C>                                    <C>          <C>
 R-2                     (7)           N/A                                    (7)          N/A
</TABLE>

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

(1) For any Distribution Date during or prior to the related Adjustment Period,
    the interest rate for each REMIC 2 Interest related to Loan Group I that
    does not contain "IO" in its designation (other than the LT2-I-X Interest)
    shall be a per annum rate equal to the Group I Net Rate for such
    Distribution Date minus 3.00%. For any Distribution Date after the related
    Adjustment Period, the interest rate for each such REMIC 2 Interest shall be
    the Group I Net Rate.

(2) For any Distribution Date, the interest rate for the LT2-I-X Interest shall
    be a per annum rate equal to the Group I Net Rate for such Distribution
    Date.

(3) For any Distribution Date during or prior to the related Adjustment Period,
    the interest rate for each REMIC 2 Interest related to Loan Group I that
    contains an "IO" in its designation shall be a per annum rate equal to
    3.00%. For any Distribution Date after the related Adjustment Period, the
    interest rate for each such REMIC 2 Interest shall be 0.00%.

(4) For any Distribution Date during or prior to the related Adjustment Period,
    the interest rate for each REMIC 2 Interest related to Loan Group II that
    does not contain "IO" in its designation (other than the LT2-II-X Interest)
    shall be the greater of (i) a per annum rate equal to the Group II Net Rate
    for such Distribution Date minus 3.00% and (ii) 0.00%. For any Distribution
    Date after the related Adjustment Period, the interest rate for each such
    REMIC 2 Interest shall be the Group II Net Rate.

(5) For any Distribution Date, the interest rate for the LT2-II-X Interest shall
    be a per annum rate equal to the Group II Net Rate for such Distribution
    Date.

(6) For any Distribution Date during or prior to the related Adjustment Period,
    the interest rate for each REMIC 2 Interest related to Loan Group II that
    contains an "IO" in its designation shall be a per annum rate equal to 3.00%
    subject to a cap equal to the Group II Net Rate. For any Distribution Date
    after the related Adjustment Period, the interest rate for each such REMIC 2
    Interest shall be 0.00%.

(7) The Class R-2 Interest shall represent the sole class of residual interest
    in REMIC 2. The Class R-2 Interest will not have a principal amount or an
    interest rate. The Class R-2 Interest shall be represented by the Class R
    Certificate.

(8) The REMIC 2 IO Interests are interest-only interests and are not entitled to
    payments of principal.

REMIC 3

         The following table specifies the class designation, interest rate, and
initial principal amount for each class of REMIC 3 Interests.

<TABLE>
<CAPTION>
                                                                                    Related Loan
                                                                                   Group or Related
Designation              Interest Rate           Initial Principal Amount            Certificate
-----------              -------------           ------------------------          ----------------
<S>                      <C>                     <C>                               <C>
 LT3-AF1                      (1)                  $48,508,500.00000000               Class AF-1
 LT3-AV1                      (1)                  $13,970,500.00000000               Class AV-1
 LT3-M1                       (1)                  $ 3,712,500.00000000               Class M-1
 LT3-M2                       (1)                  $ 3,712,500.00000000               Class M-2
 LT3-B1                       (1)                  $ 1,856,250.00000000               Class B-1
 LT3-B2                       (1)                  $   928,125.00000000               Class B-2
 LT3-B3                       (1)                  $   742,500.00000000               Class B-3
 LT3-X1                       (1)                  $74,914,508.85000000                  N/A
 LT3-IA                       (1)                  $     3,632.78176300               Loan Group I
</TABLE>

                                        8

<PAGE>

<TABLE>
<S>                      <C>                     <C>                               <C>
 LT3-IB                       (2)                $     23,036.18176300             Loan Group I
 LT3-IIA                      (1)                $      1,044.69500700             Loan Group II
 LT3-IIB                      (3)                $      6,632.89500700             Loan Group II
 LT3-X2                       (1)                $148,311,037.29646000                  N/A
 R-3                          (4)                                   (4)                 N/A
</TABLE>

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

(1) For any Distribution Date, the interest rate for the LT3-AF1 Interest, the
    LT3-AV1 Interest, the LT3-M1 Interest, the LT3-M2 Interest, the LT3-B1
    Interest, the LT3-B2 Interest, the LT3-B3 Interest, the LT3-X1 Interest, the
    LT3-IA Interest, the LT3-IIA Interest and the LT3-X2 Interest shall be a per
    annum rate equal to the weighted average interest rate of the REMIC 2
    Regular Interests (other than the REMIC 2 IO Interests) for such
    Distribution Date, weighted on the basis of their respective principal
    balances.

(2) For any Distribution Date, the interest rate for the LT3-IB Interest shall
    be a per annum rate equal to the Group I Cap for such Distribution Date
    which shall be the numeric equivalent of the weighted average interest rate
    of the REMIC 2 Regular Interests related to Loan Group I (other than any
    REMIC 2 IO Interest) for such Distribution Date weighted on the basis of
    their respective principal balances.

(3) For any Distribution Date, the interest rate for the LT3-IIB Interest shall
    be a per annum rate equal to the Group II Cap for such Distribution Date
    which shall be the numeric equivalent of the weighted average interest rate
    of the REMIC 2 Regular Interests related to Loan Group II (other than any
    REMIC 2 IO Interest) for such Distribution Date weighted on the basis of
    their respective principal balances.

(4) The Class R-3 Interest shall represent the sole class of residual interest
    in REMIC 3. The Class R-3 Interest will not have a principal amount or an
    interest rate. The Class R-3 Interest shall be represented by the Class R
    Certificate.

         All computations with respect to any REMIC 3 Interest shall be taken
out to eight decimal places.

         REMIC 4

         The sole assets of REMIC 4 shall be the REMIC 3 Regular Interests and
the REMIC 2 IO Interests. REMIC 4 shall issue the REMIC 4 Regular Interests,
which shall represent the regular interests in REMIC 4, and the Class R-4
Interest, which shall represent the sole class of residual interest in REMIC 4.

         REMIC 5

         The sole asset of REMIC 5 shall be the REMIC 4 X/N Interest. The sole
regular interest in REMIC 5 will be the REMIC 5 X/N Interest. The residual
interest in REMIC 5 will be the Class R-5 Interest, which will be represented by
the Class R-X Certificate.

         REMIC 6

          The sole asset of REMIC 6 shall be the REMIC 4 B-1 Interest. The sole
regular interest in REMIC 6 will be the REMIC 6 B-1 Interest. The residual
interest in REMIC 6 will be the Class R-6 Interest, which will be represented by
the Class R-X Certificate.

                                        9

<PAGE>

         REMIC 7

          The sole asset of REMIC 7 shall be the REMIC 4 B-2 Interest. The sole
regular interest in REMIC 7 will be the REMIC 7 B-2 Interest. The residual
interest in REMIC 7 will be the Class R-7 Interest, which will be represented by
the Class R-X Certificate.

         REMIC 8

         The sole asset of REMIC 8 shall be the REMIC 4 B-3 Interest. The sole
regular interest in REMIC 8 will be the REMIC 8 B-3 Interest. The residual
interest in REMIC 8 will be the Class R-8 Interest, which will be represented by
the Class R-X Certificate.

         The following table sets forth (or describes) the Class designation,
Pass-Through Rate and Original Class Certificate Principal Balance or Original
Notional Amount, for each Class of Certificates comprising the interests in the
Trust Fund created hereunder:

<TABLE>
<CAPTION>
                      Original Class
                        Certificate                 Pass-Through           Assumed Final
Class                Principal Balance                  Rate               Maturity Dates
-----                -----------------              ------------           --------------
<S>                  <C>                            <C>                   <C>
 AF-1                $194,034,000.00                      (1)             December 25, 2032
 AV-1                $ 55,882,000.00                      (2)             February 25, 2033
 A-IO                $296,689,000.00 (3)                3.00%(4)          December 25, 2005
 M-1                 $ 14,850,000.00                      (5)             November 25, 2032
 M-2                 $ 14,850,000.00                      (6)             September 25, 2032
 B-1                 $  7,425,000.00                      (7)             April 25, 2032
 B-2                 $  3,712,500.00                      (8)             June 25, 2031
 B-3                 $  2,970,000.00                      (9)             August 25, 2030
 N                   $          1.00 (10)               0.00%                    N/A
 X                        N/A        (10)                N/A                     N/A
 R                        N/A                            N/A                     N/A
 R-X                      N/A                            N/A                     N/A
 Total               $293,723,500.00 (11)
</TABLE>

(1)      Interest will accrue on the Class AF-1 Certificates during each
         Interest Accrual Period at a rate equal to the lesser of: (i) the Class
         AF-1 Pass-Through Rate and (ii) the Group I Cap for such Distribution
         Date.

(2)      Interest will accrue on the Class AV-1 Certificates at a rate equal to
         the least of: (i) the Class AV-1 Pass-Through Rate, (ii) the Group II
         Cap for such Distribution Date and (iii) the Maximum Rate Cap for such
         Distribution Date.

(3)      Initial aggregate Notional Amount. The Class A-IO is made up of two
         components, Component A-IO-1 and Component A-IO-2, each of which has a
         separate notional amount.

(4)      No interest will accrue on the Class A-IO Certificates for Distribution
         Dates after the Distribution Date in December 2005. The Pass-Through
         Rate on Component A-IO-2 on any Distribution Date will be subject to a
         cap equal to the Group II Net Rate.

(5)      Interest will accrue on the Class M-1 Certificates at a rate equal to
         the lesser of: (i) the Class M-1 Pass-Through Rate and (ii) the
         Subordinate Rate Cap for such Distribution Date.

(6)      Interest will accrue on the Class M-2 Certificates at a rate equal to
         the lesser of: (i) the Class M-2 Pass-Through Rate and (ii) the
         Subordinate Rate Cap for such Distribution Date.

(7)      Interest will accrue on the Class B-1 Certificates at a rate equal to
         the lesser of: (i) the Class B-1 Pass-Through Rate and (ii) the
         Subordinate Rate Cap for such Distribution Date.

                                       10

<PAGE>

(8)      Interest will accrue on the Class B-2 Certificates at a rate equal to
         the lesser of: (i) the Class B-2 Pass-Through Rate and (ii) the
         Subordinate Rate Cap for such Distribution Date.

(9)      Interest will accrue on the Class B-3 Certificates at a rate equal to
         the lesser of: (i) the Class B-3 Pass-Through Rate and (ii) the
         Subordinate Rate Cap for such Distribution Date.

(10)     The Class N and Class X Certificates, collectively, represent the
         beneficial ownership of the REMIC 5 X/N Interest, subject to the
         obligation to make payments in respect of Carryover Amounts.

(11)     Exclusive of the Class A-IO Notional Amount and the Class N Notional
         Amount. The Class N Original Notional Amount is $1.00.

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.01        Defined Terms.

         Whenever used in this Agreement or in the Preliminary Statement, the
following words and phrases, unless the context otherwise requires, shall have
the meanings specified in this Article. Unless otherwise specified, interest on
the Class AV-1 and Class B-3 Certificates will be calculated on the basis of the
actual number of days in the related Interest Accrual Period and a 360-day year.
Interest on the Class A-F1, Class A-IO, Class M-1, Class M-2, Class B-1, Class
B-2, Class N and Class X Certificates will be calculated on the basis of a
360-day year consisting of twelve 30-day months.

         "1933 Act":  The Securities Act of 1933, as amended.

         "60+ Day Delinquent Loan": Each Mortgage Loan with respect to which any
portion of a Monthly Payment is, as of the last day of the prior Collection
Period, two months or more past due, each Mortgage Loan in foreclosure, all REO
Property and each Mortgage Loan for which the Mortgagor has filed for bankruptcy
after the Closing Date.

         "Account":  Any of the Collection Account, and Distribution Account.

         "Accrued Certificate Interest": With respect to each Distribution Date
and Class of Certificates, an amount equal to the interest accrued at the
applicable rate set forth or described for such Class in the table in the
Preliminary Statement during the related Interest Accrual Period on the
Certificate Principal Balance or Notional Amount of such Class of Certificates,
reduced by such Class's Interest Percentage of Relief Act Interest Shortfalls
for such Distribution Date.

         "Actuarial Mortgage Loan": Any Mortgage Loan other than a Simple
Interest Mortgage Loan.

         "Adjustment Date": With respect to each Group II Mortgage Loan, each
adjustment date, on which the Mortgage Interest Rate of a Group II Mortgage Loan
changes pursuant to the related Mortgage Note. The first Adjustment Date
following the Cut-off Date as to each Group II Mortgage Loan is set forth in the
Mortgage Loan Schedule.

         "Adjustment Period":  As defined in the Preliminary Statement.

                                       11

<PAGE>

         "Advance": As to any Actuarial Mortgage Loan or REO Property, any
advance made by the Servicer in respect of any Distribution Date pursuant to
Section 4.07.

         "Adverse REMIC Event":  As defined in Section 9.01(f) hereof.

         "Affiliate": With respect to any Person, any other Person controlling,
controlled by or under common control with such Person. For purposes of this
definition, "control" means the power to direct the management and policies of a
Person, directly or indirectly, whether through ownership of voting securities,
by contract or otherwise and "controlling" and "controlled" shall have meanings
correlative to the foregoing.

         "Agency Insurance Agreements": Collectively, the FHA Insurance
Contracts and VA Guaranty Agreements.

         "Agreement": This Pooling and Servicing Agreement and all amendments
and supplements hereto.

         "Applicable Regulations": As to any Mortgage Loan, all federal, state
and local laws, statutes, rules and regulations applicable thereto, including
with respect to each FHA Loan, the FHA Regulations and the related FHA Insurance
Contract and with respect to each VA Loan, the VA Regulations and the related VA
Guaranty Agreement.

         "Applied Realized Loss Amount": With respect to each Distribution Date,
the excess, if any, of (a) the aggregate of the Certificate Principal Balances
of the Certificates (after giving effect to all distributions on such
Distribution Date) over (b) the Pool Balance as of the end of the related
Collection Period.

         "Arrearage": With respect to a Delinquent Mortgage Loan, the total
amount of scheduled monthly payments due thereon on or before the Cut-off Date
that were not received prior to the Cut-off Date but for which advances of
principal and interest were made, plus any unreimbursed Servicing Advances as of
the Cut-off Date.

         "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect of
record the sale of the Mortgage.

         "Assumed Final Maturity Date": As to each Class of Certificates, the
date set forth as such in the Preliminary Statement.

         "Available Funds": As to any Distribution Date, an amount equal to the
excess of (i) the sum of (a) the aggregate of the Monthly Payments due during
the related Collection Period and received by the Trustee one Business Day prior
to the related Distribution Date, (b) Liquidation Proceeds, Insurance Proceeds,
Principal Prepayments, Substitution Adjustment Amounts, the Purchase Price for
any repurchased Mortgage Loan, the Termination Price with respect to the
termination of the Trust pursuant to Section 10.01 hereof, any Reimbursement
Amount deposited to the Collection Account and other unscheduled recoveries of
principal and interest (excluding prepayment penalties and amounts received in
respect of Arrearages) in respect of the Mortgage Loans during the related
Prepayment Period, (c) the aggregate of any amounts received in

                                       12

<PAGE>

respect of an REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) any Compensating Interest for
such Distribution Date, and (e) the aggregate of any Advances made by the
Servicer for such Distribution Date over (ii) the sum of (a) amounts
reimbursable or payable to the Servicer pursuant to Section 3.05, (b) Stayed
Funds, (c) the Servicing Fee and (d) amounts deposited in the Collection Account
or the Distribution Account, as the case may be, in error.

         "Balloon Mortgage Loan": A Mortgage Loan that provides for the payment
of the unamortized principal balance of such Mortgage Loan in a single payment
at the maturity of such Mortgage Loan that is substantially greater than the
preceding monthly payment.

         "Balloon Payment": A payment of the unamortized principal balance of a
Mortgage Loan in a single payment at the maturity of such Mortgage Loan that is
substantially greater than the preceding Monthly Payment.

         "Bankruptcy Code":  Title 11 of the United States Code, as amended.

         "Book-Entry Certificates": Any of the Certificates that shall be
registered in the name of the Depository or its nominee, the ownership of which
is reflected on the books of the Depository or on the books of a Person
maintaining an account with the Depository (directly, as a "Depository
Participant," or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.02 hereof). On the Closing
Date, the Class AF-1, Class AV-1, Class A-IO, Class M-1, Class M-2, Class B-1,
Class B-2 and Class B-3 Certificates shall be Book-Entry Certificates.

         "Business Day": Any day other than a Saturday, a Sunday or a day on
which banking institutions in the State of Delaware, the State of New York, the
State of Texas or in the city in which the Corporate Trust Office of the Trustee
is located are authorized or obligated by law or executive order to be closed.

         "Cap": Any of the Group I Cap, the Group II Cap, the Maximum Rate Cap
or the Subordinate Rate Cap.

         "Cap Carryover Certificates": The Class AV-1, Class M-1, Class M-2,
Class B-1, Class B-2 and Class B-3 Certificates.

         "Carryover Amount": If on any Distribution Date, the Accrued
Certificate Interest for (a) the Class AV-1 Certificates is based upon the Group
II Cap or (b) the Class M-1, Class M-2, Class B-1, Class B-2 or Class B-3
Certificates is based on the Subordinate Rate Cap, the excess of (i) the amount
of interest such Certificate would have been entitled to receive on such
Distribution Date based on the related Pass-Through Rate (up to but not
exceeding the Maximum Rate Cap in the case of the Class AV-1 Certificates), over
(ii) the amount of interest such Certificate was entitled to receive on such
Distribution Date based on the applicable Cap, together with the unpaid portion
of any such excess from prior Distribution Dates (and interest accrued thereon
at the then applicable Pass-Through Rate on such Certificate).

         "Certificate":  Any Regular Certificate or Residual Certificate.

                                       13

<PAGE>

         "Certificate Custodian": Initially, U.S. Bank National Association;
thereafter any other Certificate Custodian acceptable to the Depository and
selected by the Trustee.

         "Certificate Owner": With respect to each Book-Entry Certificate, any
beneficial owner thereof.

         "Certificate Principal Balance": With respect to any Class of
Certificates (other than the Class A-IO, Class N, Class X and Residual
Certificates) and any Distribution Date, the Original Class Certificate
Principal Balance reduced by the sum of (i) all amounts actually distributed in
respect of principal of such Class on all prior Distribution Dates and (ii)
Applied Realized Loss Amounts allocated thereto. The Class A-IO, Class N, Class
X and Residual Certificates do not have a Certificate Principal Balance. With
respect to any Certificate (other than a Class A-IO, Class N or a Residual
Certificate) of a Class and any Distribution Date, the portion of the
Certificate Principal Balance of such Class represented by such Certificate
equal to the product of the Percentage Interest evidenced by such Certificate
and the Certificate Principal Balance of such Class.

         "Certificate Register" and "Certificate Registrar": The register
maintained and registrar appointed pursuant to Section 5.02 hereof.

         "Certificateholder" or "Holder": The Person in whose name a Certificate
is registered in the Certificate Register, except that a Disqualified
Organization or Disqualified Non-U.S. Person shall not be a Holder of a Residual
Certificate for any purpose hereof.

         "Class": Collectively, Certificates or REMIC Regular Interests which
have the same priority of payment and bear the same class designation and the
form of which is identical except for variation in the Percentage Interest
evidenced thereby.

         "Class AF-1 Pass-Through Rate": For each Distribution Date (i) on or
prior to the Optional Termination Date, 2.879% per annum, and (ii) following the
Optional Termination Date, 3.379% per annum, subject in either case to a cap
equal to the Group I Cap.

          "Class A-IO Notional Amount": With respect to any Distribution Date,
the sum of the Notional Amount of Component A-IO-1 and Component A-IO-2. With
respect to each of Component A-IO-1 and Component A-IO-2 and any Distribution
Date through the Distribution Date in December 2005, the Notional Amount of each
Component shall be an amount equal to the lesser of (a) the amount listed in the
notional schedule for the related Component below and (b) the aggregate
Principal Balance of the Group I Mortgage Loans or the Group II Mortgage Loans,
as applicable, before the application of any principal payments for the related
Due Date. With respect to each of Component A-IO-1 and Component A-IO-2 and any
Distribution Date after the December 2005 Distribution Date, zero.

                                       14

<PAGE>

<TABLE>
<CAPTION>
                                       MAXIMUM                    MAXIMUM
                                   COMPONENT A-IO-1           COMPONENT A-IO-2           MAXIMUM CLASS A-IO
DISTRIBUTION DATE IN:              NOTIONAL AMOUNT             NOTIONAL AMOUNT            NOTIONAL AMOUNT
---------------------              ----------------           ----------------           ------------------
<S>                                <C>                        <C>                        <C>
   July 2003                       $230,361,000.00             $66,328,000.00             $296,689,000.00
   August 2003                      213,204,000.00              61,408,000.00              274,612,000.00
   September 2003                   197,323,000.00              56,853,000.00              254,176,000.00
   October 2003                     182,623,000.00              52,635,000.00              235,258,000.00
   November 2003                    169,017,000.00              48,730,000.00              217,747,000.00
   December 2003                    156,424,000.00              45,114,000.00              201,538,000.00
   January 2004                     144,767,000.00              41,766,000.00              186,533,000.00
   February 2004                    133,978,000.00              38,667,000.00              172,645,000.00
   March 2004                       123,993,000.00              35,797,000.00              159,790,000.00
   April 2004                       114,750,000.00              33,140,000.00              147,890,000.00
   May 2004                         106,196,000.00              30,680,000.00              136,876,000.00
   June 2004                         98,278,000.00              28,403,000.00              126,681,000.00
   July 2004                         90,950,000.00              26,294,000.00              117,244,000.00
   August 2004                       84,168,000.00              24,341,000.00              108,509,000.00
   September 2004                    77,890,000.00              22,534,000.00              100,424,000.00
   October 2004                      72,080,000.00              20,860,000.00               92,940,000.00
   November 2004                     66,703,000.00              19,311,000.00               86,014,000.00
   December 2004                     61,727,000.00              17,876,000.00               79,603,000.00
   January 2005                      57,121,000.00              16,548,000.00               73,669,000.00
   February 2005                     52,859,000.00              15,319,000.00               68,178,000.00
   March 2005                        48,914,000.00              14,180,000.00               63,094,000.00
   April 2005                        45,263,000.00              13,126,000.00               58,389,000.00
   May 2005                          41,884,000.00              12,151,000.00               54,035,000.00
   June 2005                         38,757,000.00              11,247,000.00               50,004,000.00
   July 2005                         35,863,000.00              10,411,000.00               46,274,000.00
   August 2005                       33,185,000.00               9,637,000.00               42,822,000.00
   September 2005                    30,707,000.00               8,920,000.00               39,627,000.00
   October 2005                      28,413,000.00               8,257,000.00               36,670,000.00
   November 2005                     26,290,000.00               7,643,000.00               33,933,000.00
   December 2005                     24,326,000.00               7,074,000.00               31,400,000.00
</TABLE>

         "Class A-IO Pass-Through Rate": For each Distribution Date (i) on or
prior to the Distribution Date in December 2005, 3.00% per annum on each
Component of the Class A-IO Certificates, subject, in the case of the Component
A-IO-2, to a cap equal to the Group II Net Rate and (ii) after the Distribution
Date in December 2005, 0%.

         "Class AV-1 Certificate Margin": For each Distribution Date (i) on or
prior to the Optional Termination Date, 0.340% per annum, and (ii) following the
Optional Termination Date, 0.680% per annum.

         "Class AV-1 Pass-Through Rate": For each Distribution Date, the least
of (i) LIBOR as of the related LIBOR Determination Date, plus the Class AV-1
Certificate Margin, (ii) the Group II Cap and (iii) the Maximum Rate Cap.

         "Class A Certificate": Any one of the Certificates with an "A"
designated on the face thereof substantially in the form annexed hereto as
Exhibits A-1, A-2 and A-3, executed by the Trustee on behalf of the Trust and
authenticated and delivered by the Certificate Registrar, representing the right
to distributions as set forth herein and therein.

                                       15

<PAGE>

         "Class A Certificateholders": Collectively, the Holders of the Class A
Certificates.

         "Class A Interest Carry Forward Amount": For any Distribution Date, the
sum of the Interest Carry Forward Amounts for the Class A Certificates for such
Distribution Date.

         "Class A Principal Distribution Amount": As of any Distribution Date
(a) prior to the Stepdown Date or with respect to which a Trigger Event is in
effect, the Principal Distribution Amount and (b) on or after the Stepdown Date
and as long as a Trigger Event is not in effect, the excess of (x) the sum of
the Certificate Principal Balances of the Class A Certificates immediately prior
to such Distribution Date over (y) the lesser of (A) the product of (i) 68.50%
and (ii) the Pool Balance as of the last day of the related Collection Period
and (B) the Pool Balance as of the last day of the related Collection Period
minus the product of 0.50% and the Pool Balance on the Cut-off Date.

         "Class B Certificate": Any one of the Certificates with a "B"
designated on the face thereof substantially in the form annexed hereto as
Exhibit B-1, Exhibit B-2 and Exhibit B-3, executed by the Trustee on behalf of
the Trust and authenticated and delivered by the Certificate Registrar,
representing the right to distributions as set forth herein and therein.

         "Class B Certificateholders": Collectively, the Holders of the Class B
Certificates.

         "Class B-1 Applied Realized Loss Amount": As to the Class B-1
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Distribution Amount on such Distribution Date, but prior to the
application of the Class B-1 Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the excess of (i) the Applied Realized Loss Amount as
of such Distribution Date over (ii) the Class B-2 Applied Realized Loss Amount
and the Class B-3 Applied Realized Loss Amount, in each case as of such
Distribution Date.

         "Class B-1 Pass-Through Rate": For each Distribution Date (i) on or
prior to the Optional Termination Date, 5.553% per annum, and (ii) following the
Optional Termination Date, 6.053% per annum, subject in either case to a cap
equal to the Subordinate Rate Cap.

         "Class B-1 Principal Distribution Amount": As of any Distribution Date
on or after the Stepdown Date and as long as a Trigger Event is not in effect,
the excess of (x) the sum of (i) the sum of the Certificate Principal Balances
of the Class A Certificates (after taking into account the payment of the Class
A Principal Distribution Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
payment of the Class M-1 Principal Distribution Amount on such Distribution
Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the payment of the Class M-2 Principal Distribution
Amount on such Distribution Date), and (iv) the Certificate Principal Balance of
the Class B-1 Certificates immediately prior to such Distribution Date over (y)
the lesser of (A) the product of (i) 93.50% and (ii) the Pool Balance as of the
last day of the related Collection Period and (B) the Pool Balance as of the
last day of the related Collection Period minus the product of 0.50% and the
Pool Balance on the Cut-off Date.

         "Class B-1 Realized Loss Amortization Amount": As to the Class B-1
Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-1

                                       16

<PAGE>

Certificates as of such Distribution Date and (y) the excess of (i) the Monthly
Excess Cashflow Amount over (ii) the sum of the amounts described in Section
4.02(b)(i) through (xi) hereof, in each case for such Distribution Date.

         "Class B-2 Applied Realized Loss Amount": As to the Class B-2
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Distribution Amount on such Distribution Date, but prior to the
application of the Class B-2 Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the excess of (i) the Applied Realized Loss Amount as
of such Distribution Date over (ii) the Class B-3 Applied Realized Loss Amount
as of such Distribution Date.

         "Class B-2 Pass-Through Rate": For each Distribution Date (i) on or
prior to the Optional Termination Date, 6.385% per annum, and (ii) following the
Optional Termination Date, 6.885% per annum, subject in either case to a cap
equal to the Subordinate Rate Cap.

         "Class B-2 Principal Distribution Amount": As of any Distribution Date
on or after the Stepdown Date and as long as a Trigger Event is not in effect,
the excess of (x) the sum of (i) the sum of the Certificate Principal Balances
of the Class A Certificates (after taking into account the payment of the Class
A Principal Distribution Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
payment of the Class M-1 Principal Distribution Amount on such Distribution
Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the payment of the Class M-2 Principal Distribution
Amount on such Distribution Date), (iv) the Certificate Principal Balance of the
Class B-1 Certificates (after taking into account the payment of the Class B-1
Principal Distribution Amount on such Distribution Date) and (v) the Certificate
Principal Balance of the Class B-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 96.00% and (ii)
the Pool Balance as of the last day of the related Collection Period and (B) the
Pool Balance as of the last day of the related Collection Period minus the
product of 0.50% and the Pool Balance on the Cut-off Date.

         "Class B-2 Realized Loss Amortization Amount": As to the Class B-2
Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-2 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (xiv) hereof, in each
case for such Distribution Date.

         "Class B-3 Applied Realized Loss Amount": As to the Class B-3
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Distribution Amount on such Distribution Date, but prior to the
application of the Class B-3 Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the Applied Realized Loss Amount as of such
Distribution Date.

         "Class B-3 Certificate Margin": For each Distribution Date (i) on or
prior to the Optional Termination Date, 4.000% per annum, and (ii) following the
Optional Termination Date, 6.000% per annum.

                                       17

<PAGE>

         "Class B-3 Principal Distribution Amount": As of any Distribution Date
on or after the Stepdown Date and as long as a Trigger Event is not in effect,
the excess of (x) the sum of (i) the sum of the Certificate Principal Balances
of the Class A Certificates (after taking into account the payment of the Class
A Principal Distribution Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
payment of the Class M-1 Principal Distribution Amount on such Distribution
Date), (iii) the Certificate Principal Balance of the Class M-2 Certificates
(after taking into account the payment of the Class M-2 Principal Distribution
Amount on such Distribution Date), (iv) the Certificate Principal Balance of the
Class B-1 Certificates (after taking into account the payment of the Class B-1
Principal Distribution Amount on such Distribution Date), (v) the Certificate
Principal Balance of the Class B-2 Certificates (after taking into account the
payment of the Class B-2 Principal Distribution Amount on such Distribution
Date) and (vi) the Certificate Principal Balance of the Class B-3 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 98.00% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date.

         "Class B-3 Pass-Through Rate": For each Distribution Date, LIBOR as of
the related LIBOR Determination Date, plus the Class B-3 Certificate Margin,
subject to a cap equal to the Subordinate Rate Cap.

         "Class B-3 Realized Loss Amortization Amount": As to the Class B-3
Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class B-3 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (xvii) hereof, in each
case for such Distribution Date.

         "Class M Certificate": Any one of the Certificates with an "M"
designated on the face thereof substantially in the form annexed hereto as
Exhibit C-2 and Exhibit C-3, executed by the Trustee on behalf of the Trust and
authenticated and delivered by the Certificate Registrar, representing the right
to distributions as set forth herein and therein.

         "Class M Certificateholders": Collectively, the Holders of the Class M
Certificates.

         "Class M-1 Applied Realized Loss Amount": As to the Class M-1
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Distribution Amount on such Distribution Date, but prior to the
application of the Class M-1 Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the excess of (i) the Applied Realized Loss Amount as
of such Distribution Date over (ii) the sum of the Class M-2 Applied Realized
Loss Amount, the Class B-1 Applied Realized Loss Amount, the Class B-2 Applied
Realized Loss Amount and the Class B-3 Applied Realized Loss Amount, in each
case as of such Distribution Date.

         "Class M-1 Pass-Through Rate": For each Distribution Date (i) on or
prior to the Optional Termination Date, 4.271% per annum, and (ii) following the
Optional Termination Date, 4.771% per annum, subject to a cap equal to the
Subordinate Rate Cap.

                                       18

<PAGE>

         "Class M-1 Principal Distribution Amount": As of any Distribution Date
on or after the Stepdown Date and as long as a Trigger Event is not in effect,
the excess of (x) the sum of (i) the Certificate Principal Balances of the Class
A Certificates (after taking into account the payment of the Class A Principal
Distribution Amount on such Distribution Date) and (ii) the Certificate
Principal Balance of the Class M-1 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 78.50% and (ii)
the Pool Balance as of the last day of the related Collection Period and (B) the
Pool Balance as of the last day of the related Collection Period minus the
product of 0.50% and the Pool Balance on the Cut-off Date.

         "Class M-1 Realized Loss Amortization Amount": As to the Class M-1
Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-1 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (v) hereof, in each case
for such Distribution Date.

         "Class M-2 Applied Realized Loss Amount": As to the Class M-2
Certificates and as of any Distribution Date, the lesser of (x) the Certificate
Principal Balance thereof (after taking into account the distribution of the
Principal Distribution Amount on such Distribution Date, but prior to the
application of the Class M-2 Applied Realized Loss Amount, if any, on such
Distribution Date) and (y) the excess of (i) the related Applied Realized Loss
Amount as of such Distribution Date over (ii) the sum of the Class B-1 Applied
Realized Loss Amount, the Class B-2 Applied Realized Loss Amount and the Class
B-3 Applied Realized Loss Amount, in each case as of such Distribution Date.

         "Class M-2 Pass-Through Rate": For each Distribution Date (i) on or
prior to the Optional Termination Date, 4.562% per annum, and (ii) following the
Optional Termination Date, 5.062% per annum, subject in either case to a cap
equal to the Subordinate Rate Cap.

         "Class M-2 Principal Distribution Amount": As of any Distribution Date
on or after the Stepdown Date and as long as a Trigger Event is not in effect,
the excess of (x) the sum of (i) the sum of the Certificate Principal Balances
of the Class A Certificates (after taking into account the payment of the Class
A Principal Distribution Amount on such Distribution Date), (ii) the Certificate
Principal Balance of the Class M-1 Certificates (after taking into account the
payment of the Class M-1 Principal Distribution Amount on such Distribution
Date) and (iii) the Certificate Principal Balance of the Class M-2 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 88.50% and (ii) the Pool Balance as of the last day of the
related Collection Period and (B) the Pool Balance as of the last day of the
related Collection Period minus the product of 0.50% and the Pool Balance on the
Cut-off Date.

         "Class M-2 Realized Loss Amortization Amount": As to the Class M-2
Certificates and as of any Distribution Date, the lesser of (x) the Unpaid
Realized Loss Amount for the Class M-2 Certificates as of such Distribution Date
and (y) the excess of (i) the Monthly Excess Cashflow Amount over (ii) the sum
of the amounts described in Section 4.02(b)(i) through (viii) hereof, in each
case for such Distribution Date.

         "Class N Certificate": Any one of the Certificates with an "N"
designated on the face thereof substantially in the form annexed hereto as
Exhibit C-5, executed by the Trustee on

                                       19

<PAGE>

behalf of the Trust and authenticated and delivered by the Certificate
Registrar, representing the right to distributions as set forth herein and
therein.

         "Class N Notional Amount": As of any date, the Notional Amount of the
Class N Certificates.

         "Class R Certificate": The Class R Certificate executed by the Trustee
on behalf of the Trust, and authenticated and delivered by the Certificate
Registrar, substantially in the form annexed hereto as Exhibit C-1-1 and
evidencing the ownership of the Residual Interest in each of REMIC 1, REMIC 2,
REMIC 3 and REMIC 4. The Class R Certificate represents the ownership of the
Class R-1 Interest, Class R-2 Interest, Class R-3 Interest and Class R-4
Interest.

         "Class R Excess Interest Amount": For any Distribution Date, .01% of
the Monthly Excess Interest Amount for such Distribution Date.

         "Class R Excess Interest Carryforward Amount": For any Distribution
Date, the excess of the Class R Excess Interest Amount for all prior
Distribution Dates over all amounts previously distributed to the Class R
Certificates in respect of Class R Excess Interest Amounts or Class R Excess
Interest Carryforward Amounts.

         "Class R-1 Interest":  The uncertificated residual interest in REMIC 1.

         "Class R-2 Interest":  The uncertificated residual interest in REMIC 2.

         "Class R-3 Interest":  The uncertificated residual interest in REMIC 3.

         "Class R-4 Interest":  The uncertificated residual interest in REMIC 4.

         "Class R-5 Interest":  The uncertificated residual interest in REMIC 5.

         "Class R-6 Interest":  The uncertificated residual interest in REMIC 6.

         "Class R-7 Interest":  The uncertificated residual interest in REMIC 7.

         "Class R-8 Interest":  The uncertificated residual interest in REMIC 8.

         "Class R-X Certificate": The Class R-X Certificate executed by the
Trustee on behalf of the Trust, and authenticated and delivered by the
Certificate Registrar, substantially in the form annexed hereto as Exhibit C-1-2
and evidencing the ownership of the Residual Interest in each of REMIC 5, REMIC
6, REMIC 7 and REMIC 8. The Class R-X Certificate represents the ownership of
the Class R-5 Interest, Class R-6 Interest, Class R-7 Interest and Class R-8
Interest.

         "Class X": Any one of the Class X Certificates as designated on the
face thereof substantially in the form annexed hereto as Exhibit C-4, executed
by the Trustee on behalf of the Trust and authenticated and delivered by the
Certificate Registrar, representing the right to distributions as set forth
herein and therein.

                                       20

<PAGE>

         "Class X/N Interest": An uncertificated interest in the Trust held by
the Trustee on behalf of the holders of the Class X and Class N Certificates,
representing ownership of the REMIC 5 Class X/N Interest, and which is entitled
to all distributions in respect of the REMIC 5 X/N Interest less the amount of
any Carryover Amounts paid pursuant to Section 4.02(b)(xxi) or (xxii).

         "Class X Distributable Amount": With respect to any Distribution Date,
the excess of (i) the aggregate of amounts distributable on the Class X/N
Interest for such Distribution Date, over (ii) the aggregate of amounts
distributable to the Class N Certificates pursuant to Section 4.02(b).

         "Closing Date":  June 27, 2003.

         "Code": The Internal Revenue Code of 1986, as it may be amended from
time to time.

         "Collection Account": The account or accounts created and maintained by
the Servicer pursuant to Section 3.04, which shall be entitled "Collection
Account, Litton Loan Servicing LP, as Servicer for the Trust under the Pooling
and Servicing Agreement dated as of June 1, 2003 among Merrill Lynch Mortgage
Investors, Inc., as Depositor, Credit-Based Asset Servicing and Securitization
LLC, as Seller, Litton Loan Servicing LP, as Servicer, and U.S. Bank National
Association, as Trustee, in trust for registered Holders of 2003-CB3 Trust,
C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3," and which must
be an Eligible Account.

         "Collection Period": With respect to any Distribution Date, the period
from the second day of the calendar month preceding the month in which such
Distribution Date occurs through the first day of the month in which such
Distribution Date occurs.

         "Combined Loan-to-Value Ratio": As of any date and Mortgage Loan, the
fraction, expressed as a percentage, the numerator of which is the Principal
Balance of the Mortgage Loan as of the Cut-off Date plus the principal balance
of any related senior mortgage loan, if any, at origination of the Mortgage Loan
and the denominator of which is the Value of the related Mortgaged Property.

         "Compensating Interest":  As defined in Section 3.23 hereof.

         "Component A-IO-1": An interest-only component represented by the Class
A-IO Certificates bearing interest at the rate specified in the definition of
"Class A-IO Pass Through Rate" on the notional amount specified in the
definition of "Component A-IO-1 Notional Amount."

         "Component A-IO-2": An interest-only component represented by the Class
A-IO Certificates bearing interest at the rate specified in the definition of
"Class A-IO Pass Through Rate" on the notional amount specified in the
definition of "Component A-IO-2 Notional Amount."

         "Component A-IO-1 Notional Amount": With respect to any Distribution
Date through the Distribution Date in December 2005, an amount equal to the
lesser of (a) the amount listed in the notional schedule for Component A-IO-1
specified in the definition of "Class A-IO Notional Amount" and (b) the
aggregate Principal Balance of the Group I Mortgage Loans, before the

                                       21

<PAGE>

application of any principal payments for the related Due Date. With respect to
each of the Distribution Dates after the December 2005 Distribution Date, zero.

         "Component A-IO-2 Notional Amount": With respect to any Distribution
Date through the Distribution Date in December 2005, an amount equal to the
lesser of (a) the amount listed in the notional schedule for Component A-IO-2
specified in the definition of "Class A-IO Notional Amount" and (b) the
aggregate Principal Balance of the Group II Mortgage Loans, before the
application of any principal payments for the related Due Date. With respect to
each of the Distribution Dates after the December 2005 Distribution Date, zero.

         "Condemnation Proceeds": All awards or settlements in respect of a
taking of a Mortgaged Property by exercise of the power of eminent domain or
condemnation.

         "Conventional Mortgage Loan": Any Mortgage Loan that is neither an FHA
Loan nor a VA Loan.

         "Corporate Trust Office": With respect to the Trustee, the principal
corporate trust office of the Trustee at which at any particular time its
corporate trust business in connection with this Agreement shall be
administered, which office at the date of the execution of this instrument is
located at 180 East Fifth Street, St. Paul, Minnesota 55101, Attention:
Corporate Trust, or at such other address as the Trustee may designate from time
to time by notice to the Certificateholders, the Depositor, the Servicer and the
Seller.

         "Corresponding Cap Carryover Certificate" and "Corresponding REMIC 4
Regular Interest": For any REMIC 4 Regular Interest set forth below, the
corresponding Cap Carryover Certificate set forth below, and for any Cap
Carryover Certificate set forth below, the corresponding REMIC 4 Regular
Interest set forth below:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Corresponding Cap Carryover Certificate          Corresponding REMIC 4 Regular Interest
---------------------------------------------------------------------------------------
<S>                                              <C>
         Class AV-1 Certificate                           REMIC 4 AV-1 Interest
---------------------------------------------------------------------------------------
         Class M-1 Certificate                            REMIC 4 M-1 Interest
---------------------------------------------------------------------------------------
         Class M-2 Certificate                            REMIC 4 M-2 Interest
---------------------------------------------------------------------------------------
         Class B-1 Certificate                            REMIC 4 B-1 Interest
---------------------------------------------------------------------------------------
         Class B-2 Certificate                            REMIC 4 B-2 Interest
---------------------------------------------------------------------------------------
         Class B-3 Certificate                            REMIC 4 B-3 Interest
---------------------------------------------------------------------------------------
</TABLE>

         "Custodial Agreement": The Custodial Agreement, dated as of June 1,
2003, among the Trustee, the Servicer and the Custodian, as the same may be
amended or supplemented pursuant to the terms thereof.

                                       22

<PAGE>

         "Custodian": The Bank of New York, a New York banking corporation, or
any successor custodian appointed pursuant to the terms of the Custodial
Agreement.

         "Cut-off Date":  June 1, 2003.

         "Cut-off Date Principal Balance": With respect to any Mortgage Loan,
the unpaid principal balance thereof as of the Cut-off Date after application of
funds received or advanced on or before such date (or as of the applicable date
of substitution with respect to an Eligible Substitute Mortgage Loan).

         "Debt Service Reduction": With respect to any Mortgage Loan, a
reduction in the scheduled Monthly Payment for such Mortgage Loan by a court of
competent jurisdiction in a proceeding under the Bankruptcy Code, except such a
reduction resulting from a Deficient Valuation.

         "Defective Mortgage Loan": A Mortgage Loan replaced or to be replaced
by one or more Eligible Substitute Mortgage Loans.

         "Deficient Valuation": With respect to any Mortgage Loan, a valuation
of the related Mortgaged Property by a court of competent jurisdiction in an
amount less than the then outstanding principal balance of the Mortgage Loan,
which valuation results from a proceeding initiated under the Bankruptcy Code.

         "Definitive Certificates":  As defined in Section 5.02(c) hereof.

         "Delinquent": Any Mortgage Loan with respect to which the Monthly
Payment and/or any Escrow Payment due on a Due Date is not made by the close of
business on the next scheduled Due Date for such Mortgage Loan or any Mortgage
Loan with respect to which any Servicing Advances made on or before the Cut-off
Date has not been reimbursed by the related Mortgagor.

         "Depositor": Merrill Lynch Mortgage Investors, Inc., a Delaware
corporation, or any successor in interest.

         "Depository": The initial depository shall be The Depository Trust
Company, whose nominee is Cede & Co., or any other organization registered as a
"clearing agency" pursuant to Section 17A of the Securities Exchange Act of
1934, as amended. The Depository shall initially be the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(3) of the Uniform Commercial Code of
the State of New York.

         "Depository Participant": A broker, dealer, bank or other financial
institution or other person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

         "Determination Date": With respect to any Distribution Date, the 10th
day of the calendar month in which such Distribution Date occurs or, if such
10th day is not a Business Day, the Business Day immediately preceding such 10th
day.

                                       23

<PAGE>

         "Directly Operate": With respect to any REO Property, the furnishing or
rendering of services to the tenants thereof, the management or operation of
such REO Property, the holding of such REO Property primarily for sale to
customers, the performance of any construction work thereon or any use of such
REO Property in a trade or business conducted by the Trust other than through an
Independent Contractor; provided, however, that the Trustee (or the Servicer
under this Agreement) shall not be considered to Directly Operate an REO
Property solely because the Trustee (or the Servicer under this Agreement)
establishes rental terms, chooses tenants, enters into or renews leases, deals
with taxes and insurance, or makes decisions as to repairs or capital
expenditures with respect to such REO Property.

         "Disqualified Non-U.S. Person": With respect to a Residual Certificate,
any (A) non-U.S. Person or agent thereof or (B) U.S. Person with respect to whom
income from a Residual Certificate is attributable to a foreign permanent
establishment or fixed base, within the meaning of an applicable income tax
treaty, of such Person or any other U.S. Person.

         "Disqualified Organization": A "disqualified organization" under
Section 860E of the Code, which as of the Closing Date is any of: (i) the United
States, any state or political subdivision thereof, any possession of the United
States, any foreign government, any international organization, or any agency or
instrumentality of any of the foregoing, (ii) any organization (other than a
cooperative described in Section 521 of the Code) which is exempt from the tax
imposed by Chapter 1 of the Code unless such organization is subject to the tax
imposed by Section 511 of the Code, (iii) any organization described in Section
1381(a)(2)(C) of the Code, or (iv) any other Person so designated by the Trustee
based upon an Opinion of Counsel provided by nationally recognized counsel to
the Trustee that the holding of an ownership interest in a Residual Certificate
by such Person may cause the Trust Fund or any Person having an ownership
interest in any Class of Certificates (other than such Person) to incur
liability for any federal tax imposed under the Code that would not otherwise be
imposed but for the transfer of an ownership interest in a Residual Certificate
to such Person. A corporation will not be treated as an instrumentality of the
United States or of any state or political subdivision thereof if all of its
activities are subject to tax and a majority of its board of directors is not
selected by a governmental unit. The term "United States," "state" and
"international organization" shall have the meanings set forth in Section 7701
of the Code.

         "Distribution Account": The trust account or accounts created and
maintained by the Trustee pursuant to Section 3.04(b) which shall be entitled
"Distribution Account, U.S. Bank National Association, as Trustee, in trust for
the registered Holders of 2003-CB3 Trust, C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2003-CB3" and which must be an Eligible Account.

         "Distribution Date": The 25th day of any calendar month, or if such
25th day is not a Business Day, the Business Day immediately following such 25th
day, commencing in July 2003.

         "Due Date": With respect to each Mortgage Loan and any Distribution
Date, the day of the calendar month in which such Distribution Date occurs on
which the Monthly Payment for such Mortgage Loan was due, exclusive of any grace
period.

                                       24

<PAGE>

         "Eligible Account": Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company the
short-term unsecured debt obligations of which (or, in the case of a depository
institution or trust company that is the principal subsidiary of a holding
company, the short-term unsecured debt obligations of such holding company) are
rated "A-1" (or the equivalent) by each of the Rating Agencies at the time any
amounts are held on deposit therein, (ii) an account or accounts the deposits in
which are fully insured by the FDIC (to the limits established by such
corporation), the uninsured deposits in which account are otherwise secured such
that, as evidenced by an Opinion of Counsel delivered to the Trustee and to each
Rating Agency, the Certificateholders will have a claim with respect to the
funds in such account or a perfected first priority security interest against
such collateral (which shall be limited to Permitted Investments) securing such
funds that is superior to claims of any other depositors or creditors of the
depository institution with which such account is maintained, (iii) a trust
account or accounts maintained with the trust department of a federal or state
chartered depository institution, national banking association or trust company
acting in its fiduciary capacity or (iv) an account otherwise acceptable to each
Rating Agency without reduction or withdrawal of their then current ratings of
the Certificates as evidenced by a letter from each Rating Agency to the
Trustee. Eligible Accounts may bear interest.

         "Eligible Substitute Mortgage Loan": A mortgage loan substituted for a
Defective Mortgage Loan pursuant to the terms of this Agreement which must, on
the date of such substitution, (i) have an outstanding principal balance, after
application of all scheduled payments of principal and interest due during or
prior to the month of substitution, not in excess of, and not more than 5% less
than, the outstanding principal balance of the Defective Mortgage Loan as of the
Due Date in the calendar month during which the substitution occurs, (ii) have a
Mortgage Interest Rate, with respect to a Group I Mortgage Loan, not less than
the Mortgage Interest Rate of the Defective Mortgage Loan and not more than 1%
in excess of the Mortgage Interest Rate of such Defective Mortgage Loan, (iii)
if a Group II Mortgage Loan, have a Maximum Loan Rate not less than the Maximum
Loan Rate for the Defective Mortgage Loan, (iv) if a Group II Mortgage Loan,
have a Minimum Loan Rate not less than the Minimum Loan Rate of the Defective
Mortgage Loan, (v) if a Group II Mortgage Loan, have a Gross Margin equal to or
greater than the Gross Margin of the Defective Mortgage Loan, (vi) if a Group II
Mortgage Loan, have the same Index as the Defective Mortgage Loan, (vii) if a
Group II Mortgage Loan, have a next Adjustment Date not more than two months
later than the next Adjustment Date on the Defective Mortgage Loan, except in
the case of any Mortgage Loan which has an Arrearage due to the application of
any related forbearance plan with respect to such Mortgage Loan, an Eligible
Substitute Mortgage Loan must have all Adjustment Dates occurring during the
same Interest Accrual Period during which Adjustment Dates occur with respect to
the substituted Mortgage Loan, (viii) have a remaining term to maturity not
greater than (and not more than one year less than) that of the Defective
Mortgage Loan, (ix) be current as of the date of substitution, (x) have a
Combined Loan-to-Value Ratio as of the date of substitution equal to or lower
than the Combined Loan-to-Value Ratio of the Defective Mortgage Loan as of such
date, (xi) have a risk grading determined by the Seller at least equal to the
risk grading assigned on the Defective Mortgage Loan, (xii) have been
reunderwritten by the Seller in accordance with the same underwriting criteria
and guidelines as the Defective Mortgage Loan, (xiii) have the same Due Date as
the Defective Mortgage Loan and (xiv) conform to each representation and
warranty set forth in Section 2.04 hereof applicable to the Defective Mortgage
Loan. In the event that one or more mortgage loans are substituted for one or
more Defective

                                       25

<PAGE>

Mortgage Loans, the amounts described in clause (i) hereof shall be determined
on the basis of aggregate principal balances, the Mortgage Interest Rates
described in clause (ii) hereof shall be determined on the basis of weighted
average Mortgage Interest Rates, the risk gradings described in clause (xi)
hereof shall be satisfied as to each such mortgage loan, the terms described in
clause (viii) hereof shall be determined on the basis of weighted average
remaining term to maturity, the Combined Loan-to-Value Ratios described in
clause (x) hereof shall be satisfied as to each such mortgage loan and, except
to the extent otherwise provided in this sentence, the representations and
warranties described in clause (xiv) hereof must be satisfied as to each
Eligible Substitute Mortgage Loan or in the aggregate, as the case may be.

         "ERISA": The Employee Retirement Income Security Act of 1974, as
amended.

         "ERISA-Restricted Certificates": Any of the Class M-1, Class M-2, Class
B-1, Class B-2, Class B-3, Class N, Class X, Class R and Class R-X Certificates.

         "Escrow Account": The account or accounts created and maintained
pursuant to Section 3.06.

         "Escrow Payments": The amounts constituting ground rents, taxes,
assessments, water rates, mortgage insurance premiums, fire and hazard insurance
premiums and other payments required to be escrowed by the Mortgagor with the
mortgagee pursuant to any Mortgage Loan.

         "Estate in Real Property": A fee simple estate in a parcel of real
property.

         "Expense Fee Rate": The sum of (i) the Trustee Fee Rate and (ii) the
Servicing Fee Rate.

         "Extended Period":  As defined in Section 9.04(b).

         "Extra Principal Distribution Amount": As of any Distribution Date, the
lesser of (x) 99.99% of the Monthly Excess Interest Amount for such Distribution
Date and (y) the Overcollateralization Deficiency for such Distribution Date.

         "FDIC": Federal Deposit Insurance Corporation or any successor thereto.

         "FHA": The Federal Housing Administration, an agency within HUD.

         "FHA Approved Mortgagee": Those institutions which are approved by FHA
to act as servicer and mortgagee of record pursuant to FHA Regulations.

         "FHA Insurance Contract" or "FHA Insurance": The contractual obligation
of FHA respecting the insurance of an FHA Loan pursuant to the National Housing
Act, as amended.

         "FHA Loan": A Mortgage Loan which is the subject of an FHA Insurance
Contract as evidenced by a Mortgage Insurance Certificate.

         "FHA Regulations": Regulations promulgated by HUD under the National
Housing Act, codified in 24 Code of Federal Regulations, and other HUD issuances
relating to FHA Loans, including the related handbooks, circulars, notices and
mortgagee letters.

                                       26

<PAGE>

         "Fidelity Bond": Shall have the meaning assigned thereto in Section
3.12.

         "Final Recovery Determination": With respect to any defaulted Mortgage
Loan or any REO Property (other than a Mortgage Loan or REO Property purchased
by the Seller or the Servicer pursuant to or as contemplated by Section 2.03 or
10.01), a determination made by the Servicer that all Insurance Proceeds,
Liquidation Proceeds and other payments or recoveries which the Servicer, in its
reasonable good faith judgment, expects to be finally recoverable in respect
thereof have been so recovered. The Servicer shall maintain records, prepared by
a Servicing Officer, of each Final Recovery Determination made thereby.

         "Fitch": Fitch Ratings and its successors, and if such company shall
for any reason no longer perform the functions of a securities rating agency,
"Fitch" shall be deemed to refer to any other "nationally recognized statistical
rating organization" as set forth on the most current list of such organizations
released by the Securities and Exchange Commission.

         "Foreclosure Price": The amount reasonably expected to be received from
the sale of the related Mortgaged Property net of any expenses associated with
foreclosure proceedings.

         "Grantor Trust": That portion of the Trust exclusive of REMIC 1, REMIC
2, REMIC 3, REMIC 4, REMIC 5, REMIC 6, REMIC 7 and REMIC 8 which holds (a) the
REMIC 5 X/N Interest, (b) the right of the Cap Carryover Certificates to receive
Carryover Amounts and (c) the obligation of the Class X/N Interest to pay such
Carryover Amounts.

         "Gross Margin": With respect to each Group II Mortgage Loan, the fixed
percentage, if any, set forth in the related Mortgage Note that is added to the
Index on each Adjustment Date in accordance with the terms of the related
Mortgage Note used to determine the Mortgage Interest Rate for such Mortgage
Loan.

         "Group I Cap": With respect to any Distribution Date, a per annum rate
equal to 12 times the quotient of (x) the total scheduled interest on the Group
I Mortgage Loans for the related Interest Accrual Period at their Net Mortgage
Interest Rates, net of the interest on the Component A-IO-1 and (y) the
aggregate principal balance of the Group I Mortgage Loans.

         "Group I Group Subordinate Amount": the excess of the aggregate
principal amount of the Group I Mortgage Loans over the aggregate principal
amount of the Class AF-1 Certificates.

         "Group I Interest Remittance Amount": As of any Determination Date, the
sum, without duplication, of (i) all interest collected or advanced with respect
to Monthly Payments due during the related Collection Period on the Group I
Mortgage Loans (less the Servicing Fee, amounts available for reimbursement of
Advances and Servicing Advances pursuant to Section 3.05 and expenses
reimbursable pursuant to Section 6.03), (ii) the portion of any full or partial
Principal Prepayment related to interest with respect to a Group I Mortgage Loan
received during the related Prepayment Period, (iii) all Compensating Interest
paid by the Servicer on such Determination Date with respect to the Group I
Mortgage Loans, (iv) the portion of any payment in connection with any Purchase
Price, Net Liquidation Proceeds or Insurance Proceeds relating to interest with
respect to the Group I Mortgage Loans received during the related Prepayment
Period, (v) the portion of any Substitution Adjustment Amount relating to
interest with respect to the Group I Mortgage Loans received on or prior to such
Determination Date and not yet

                                       27

<PAGE>

distributed, (vi) with respect to the related Distribution Date on which the
Trust is to be terminated in accordance with the Section 10.01 hereof, that
portion of the Termination Price with respect to the Group I Mortgage Loans in
respect of interest and (vii) the portion of any Reimbursement Amount related to
the Group I Mortgage Loans received during the related Prepayment Period.

         "Group I Mortgage Loan": A Mortgage Loan in Loan Group I.

         "Group I Net Rate": With respect to any Distribution Date, a per annum
rate equal to 12 times the quotient of (x) the total scheduled interest on the
Group I Mortgage Loans for the related Interest Accrual Period at their Net
Mortgage Interest Rates and (y) the aggregate principal balance of the Group I
Mortgage Loans.

         "Group I Principal Distribution Amount": As of any Distribution Date,
the product of the Group I Principal Allocation Percentage and the Class A
Principal Distribution Amount.

         "Group I Principal Allocation Percentage": As of any Distribution Date,
a fraction expressed as a percentage, the numerator of which is the Principal
Remittance Amount allocable to the Group I Mortgage Loans of the related
Collection Period and the denominator of which is equal to the Principal
Remittance Amount for such Distribution Date.

         "Group Subordinate Amount": In the case of Loan Group I, the Group I
Group Subordinate Amount, and, in the case of Loan Group II, the Group II Group
Subordinate Amount.

         "Group II Cap": With respect to any Distribution Date, a per annum rate
(subject to adjustment based on the actual number of days elapsed in the related
Interest Accrual Period) equal to 12 times the quotient of (x) the total
scheduled interest on the Group II Mortgage Loans for the related Interest
Accrual Period at the Net Mortgage Interest Rates, net of the interest on the
Component A-IO-2 and (y) the aggregate principal balance of the Group II
Mortgage Loans.

         "Group II Group Subordinate Amount": the excess of the aggregate
principal amount of the Group II Mortgage Loans over the aggregate principal
amount of the Class AV-1 Certificates.

         "Group II Interest Remittance Amount": As of any Determination Date,
the sum, without duplication, of (i) all interest collected or advanced with
respect to Monthly Payments due during the related Collection Period on the
Group II Mortgage Loans (less the Servicing Fee, amounts available for
reimbursement of Advances and Servicing Advances pursuant to Section 3.05 and
expenses reimbursable pursuant to Section 6.03), (ii) the portion of any full or
partial Principal Prepayment related to interest with respect to a Group II
Mortgage Loan received during the related Prepayment Period, (iii) all
Compensating Interest paid by the Servicer on such Determination Date with
respect to the Group II Mortgage Loans, (iv) the portion of any payment in
connection with any Purchase Price, Net Liquidation Proceeds or Insurance
Proceeds relating to interest with respect to the Group II Mortgage Loans
received during the related Prepayment Period, (v) the portion of any
Substitution Adjustment Amount relating to interest with respect to the Group II
Mortgage Loans received on or prior to such Determination Date and not yet
distributed, (vi) with respect to the related Distribution Date on which the
Trust is to

                                       28

<PAGE>

be terminated in accordance with Section 10.01 hereof, that portion of the
Termination Price with respect to the Group II Mortgage Loans in respect of
interest and (vii) the portion of any Reimbursement Amount related to the Group
II Mortgage Loans received during the related Prepayment Period.

         "Group II Mortgage Loan":  A Mortgage Loan in Loan Group II.

         "Group II Net Rate": With respect to any Distribution Date, a per annum
rate (subject to adjustment based on the actual number of days elapsed in the
related Interest Accrual Period) equal to 12 times the quotient of (x) the total
scheduled interest on the Group II Mortgage Loans for the related Interest
Accrual Period at their Net Mortgage Interest Rates and (y) the aggregate
principal balance of the Group II Mortgage Loans.

         "Group II Principal Distribution Amount": As of any Distribution Date,
the product of the Group II Principal Allocation Percentage and the Class A
Principal Distribution Amount.

         "Group II Principal Allocation Percentage": As of any Distribution
Date, a fraction expressed as a percentage, the numerator of which is the
Principal Remittance Amount allocable to the Group II Mortgage Loans of the
related Collection Period and the denominator of which is equal to the Principal
Remittance Amount for such Distribution Date.

         "HUD": The United States Department of Housing and Urban Development,
or any successor thereto and including the Federal Housing Commissioner and the
Secretary of Housing and Urban Development where appropriate under the FHA
Regulations.

         "Independent": When used with respect to any specified Person, any such
Person who (i) is in fact independent of the Depositor, the Servicer and their
respective Affiliates, (ii) does not have any direct financial interest in or
any material indirect financial interest in the Depositor or the Servicer or any
Affiliate thereof, and (iii) is not connected with the Depositor or the Servicer
or any Affiliate thereof as an officer, employee, promoter, underwriter,
trustee, partner, director or Person performing similar functions; provided,
however, that a Person shall not fail to be Independent of the Depositor or the
Servicer or any Affiliate thereof merely because such Person is the beneficial
owner of 1% or less of any Class of securities issued by the Depositor or the
Servicer or any Affiliate thereof, as the case may be.

         "Independent Contractor": Either (i) any Person (other than the
Servicer) that would be an "independent contractor" with respect to the Trust
Fund within the meaning of Section 856(d)(3) of the Code if the Trust Fund were
a real estate investment trust (except that the ownership tests set forth in
that section shall be considered to be met by any Person that owns, directly or
indirectly, 35 percent or more of any Class of Certificates), so long as the
Trust Fund does not receive or derive any income from such Person and provided
that the relationship between such Person and the Trust Fund is at arm's length,
all within the meaning of Treasury Regulation Section 1.856-4(b)(5), or (ii) any
other Person (including the Servicer) if the Trustee has received an Opinion of
Counsel, which Opinion of Counsel shall be an expense of the Trust Fund, to the
effect that the taking of any action in respect of any REO Property by such
Person, subject to any conditions therein specified, that is otherwise herein
contemplated to be taken by an Independent Contractor will not cause such REO
Property to cease to qualify as "foreclosure

                                       29

<PAGE>

property" within the meaning of Section 860G(a)(8) of the Code (determined
without regard to the exception applicable for purposes of Section 860D(a) of
the Code), or cause any income realized in respect of such REO Property to fail
to qualify as Rents from Real Property.

         "Index": With respect to each Group II Mortgage Loan and with respect
to each related Adjustment Date, the index as specified in the related Mortgage
Note.

         "Initial Certificate Principal Balance": With respect to any
Certificate of a Class other than a Class A-IO, Class N, Class X or Residual
Certificate, the amount designated "Initial Certificate Principal Balance" on
the face thereof.

         "Initial Notional Amount": With respect to any Class A-IO or Class N
Certificate, the amount designated "Initial Notional Amount" on the face
thereof.

         "Initial Overcollateralization Amount":  $2,967,267.70

         "Insurance Proceeds": Proceeds of any title policy, hazard policy or
other insurance policy covering a Mortgage Loan, to the extent such proceeds are
not to be applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the procedures that the Servicer
would follow in servicing mortgage loans held for its own account, subject to
the terms and conditions of the related Mortgage Note and Mortgage.

         "Interest Accrual Period": With respect to any Distribution Date and
(i) with respect to the Class AV-1 and the Class B-3 Certificates, the period
from the preceding Distribution Date through the day prior to the current
Distribution Date (or, in the case of the first Distribution Date, the period
from the Closing Date through July 24, 2003), and (ii) with respect to the Class
AF-1, Class M-1, Class M-2, Class B-1, Class B-2, Class N and Class X
Certificates, the calendar month immediately preceding the month in which such
Distribution Date occurs.

         "Interest Carry Forward Amount": For any Class of Certificates (other
than the Class X and Residual Certificates) and any Distribution Date, the sum
of (a) the excess, if any, of the Accrued Certificate Interest and any Interest
Carry Forward Amount for each Class for the prior Distribution Date, over the
amount in respect of interest actually distributed on such Class on such prior
Distribution Date and (b) interest on such excess at the applicable Pass-Through
Rate (x) with respect to the Class AV-1 and Class B-3 Certificates, on the basis
of the actual number of days elapsed on the basis of a 360-day year since the
prior Distribution Date, and (y) with respect to the Class AF-1, A-IO, Class
M-1, Class M-2, Class B-1, Class B-2 and Class N Certificates, on the basis of a
360-day year consisting of twelve 30-day months.

         "Interest Percentage": With respect to any Class of Certificates and
any Distribution Date, the ratio (expressed as a decimal carried to six places)
of the Accrued Certificate Interest for such Class to the sum of the Accrued
Certificate Interest for all Classes of Certificates, in each case with respect
to such Distribution Date.

         "Interest Remittance Amount": As of any Determination Date, the sum of
the Group I Interest Remittance Amount and the Group II Interest Remittance
Amount.

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<PAGE>

         "Late Collections": With respect to any Mortgage Loan, all amounts
received subsequent to the Determination Date immediately following any related
Collection Period, whether as late payments of Monthly Payments or as Insurance
Proceeds, Liquidation Proceeds or otherwise, which represent late payments or
collections of principal and/or interest due (without regard to any acceleration
of payments under the related Mortgage and Mortgage Note) but delinquent on a
contractual basis for such Collection Period and not previously recovered.

         "LIBOR": With respect to each Interest Accrual Period, the rate
determined by the Trustee on the related LIBOR Determination Date on the basis
of the offered rate for one-month United States dollar deposits, as such rate
appears on the Telerate Page 3750, as of 11:00 a.m. (London time) on such LIBOR
Determination Date. If no such quotations are available on an LIBOR
Determination Date, LIBOR for the related Interest Accrual Period will be
established by the Trustee as follows:

                  (i)      If on such LIBOR Determination Date two or more
Reference Banks provide quotations as to the rate at which deposits in U.S.
Dollars are offered as of 11:00 a.m. (London time) to prime banks in the London
interbank market for a period of one month in amounts approximately equal to the
aggregate Certificate Principal Balance of the Class AV-1 and Class B-3
Certificates, LIBOR for the related Interest Accrual Period shall be the
arithmetic mean of such offered quotations (rounded upwards if necessary to the
nearest whole multiple of 0.001%);

                  (ii)     If on such LIBOR Determination Date fewer than two
Reference Banks provide such offered quotations, LIBOR for the related Interest
Accrual Period shall be the arithmetic mean of the rates quoted by one or more
major banks in New York City, selected by the Trustee after consultation with
the Depositor, as of 11:00 a.m., New York City time, on such date for loans in
U.S. Dollars to leading European banks for a period of one month in amounts
approximately equal to the aggregate Certificate Principal Balance of the Class
AV-1 and Class B-3 Certificates; and

                  (iii)    If no such quotations can be obtained, LIBOR for the
related Interest Accrual Period shall be LIBOR for the prior Distribution Date.

         "LIBOR Business Day": Any day on which banks in London, England and The
City of New York are open and conducting transactions in foreign currency and
exchange.

         "LIBOR Determination Date": With respect to the Offered Certificates
(other than the Class AF-1, Class A-IO, Class M-1, Class M-2, Class B-1 and
Class B-2 Certificates), (i) for the first Distribution Date, the second LIBOR
Business Day preceding the Closing Date and (ii) for each subsequent
Distribution Date, the second LIBOR Business Day prior to the immediately
preceding Distribution Date.

         "Liquidated Mortgage Loan": As to any Distribution Date, any Mortgage
Loan in respect of which the Servicer has determined, in accordance with the
servicing procedures specified herein, as of the end of the related Prepayment
Period, that all Liquidation Proceeds and Insurance Proceeds which it expects to
recover with respect to the liquidation of the Mortgage Loan or disposition of
the related REO Property have been recovered.

                                       31

<PAGE>

         "Liquidation Event": With respect to any Mortgage Loan, any of the
following events: (i) such Mortgage Loan is paid in full; (ii) a Final Recovery
Determination is made as to such Mortgage Loan; or (iii) such Mortgage Loan is
removed from the Trust Fund by reason of its being purchased, sold or replaced
pursuant to or as contemplated by Section 2.03 or Section 10.01. With respect to
any REO Property, either of the following events: (i) a Final Recovery
Determination is made as to such REO Property; or (ii) such REO Property is
removed from the Trust Fund by reason of its being sold or purchased pursuant to
Section 3.13 or Section 10.01.

         "Liquidation Proceeds": The amount (other than amounts received in
respect of the rental of any REO Property prior to REO Disposition) received by
the Servicer in connection with (i) the taking of all or a part of a Mortgaged
Property by exercise of the power of eminent domain or condemnation or (ii) the
liquidation of a defaulted Mortgage Loan by means of a trustee's sale,
foreclosure sale or otherwise.

         "Liquidation Report": The report with respect to a Liquidated Mortgage
Loan in such form and containing such information as is agreed to by the
Servicer and the Trustee.

         "Loan Group": Either Loan Group I or Loan Group II, as the context
requires.

         "Loan Group Balance": Either the Group I Loan Balance or the Group II
Loan Balance, as applicable.

         "Loan Group I": The pool of Mortgage Loans identified in Exhibit D-1 of
the Mortgage Loan Schedule as having been assigned to Loan Group I.

         "Loan Group II": The pool of Mortgage Loans identified in Exhibit D-2
of the Mortgage Loan Schedule as having been assigned to Loan Group II.

         "Loan Guaranty Certificate": The certificate evidencing a VA Guaranty
Agreement.

         "Losses": As defined in Section 9.03.

         "Lost Note Affidavit": With respect to any Mortgage Loan as to which
the original Mortgage Note has been permanently lost or destroyed and has not
been replaced, an affidavit from the Seller certifying that the original
Mortgage Note has been lost, misplaced or destroyed (together with a copy of the
related Mortgage Note and indemnifying the Trust against any loss, cost or
liability resulting from the failure to deliver the original Mortgage Note) in
the form of Exhibit H hereto.

         "Majority Certificateholders": The Holders of Certificates evidencing
at least 51% of the Voting Rights.

         "Majority Class R Certificateholders": The Holders of Class R
Certificates evidencing at least a 51% Percentage Interest in the Class R
Certificates.

         "Marker Interest": Each of the LT3-AF1 Interest, the LT3-AV1 Interest,
the LT3-M1 Interest, the LT3-M2 Interest, the LT3-B1 Interest, the LT3-B2
Interest and the LT3-B3 Interest.

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<PAGE>

         "Maximum Loan Rate": With respect to each Group II Mortgage Loan, the
percentage set forth in the related Mortgage Note as the maximum Mortgage
Interest Rate thereunder.

         "Maximum Rate Cap": With respect to any Distribution Date, a per annum
rate (subject to adjustment based on the actual number of days elapsed in the
related Interest Accrual Period) equal to the 12 times the quotient of (x) the
total scheduled interest that would have accrued on the Group II Mortgage Loans
at their maximum net lifetime mortgage interest rates, net of the interest on
the Component A-IO-2 Certificate and (y) the aggregate principal balance of the
Group II Mortgage Loans.

         "Minimum Loan Rate": With respect to each Group II Mortgage Loan, the
percentage set forth in the related Mortgage Note as the minimum Mortgage
Interest Rate thereunder.

         "Monthly Excess Cashflow Amount": The sum of the Monthly Excess
Interest Amount, the Overcollateralization Release Amount and (without
duplication) any portion of the Principal Distribution Amount remaining after
principal distributions on the Offered Certificates.

         "Monthly Excess Interest Amount": With respect to each Distribution
Date, the amount, if any, by which the Interest Remittance Amount for such
Distribution Date exceeds the aggregate amount distributed on such Distribution
Date pursuant to paragraphs (i) through (viii) under Section 4.01.

         "Monthly Payment": With respect to any Mortgage Loan, the scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the related Mortgagor from time to time under the related Mortgage Note,
determined: (a) after giving effect to (i) any Deficient Valuation and/or Debt
Service Reduction with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act or similar state laws; (b) without giving effect to any extension
granted or agreed to by the Servicer pursuant to Section 3.01; and (c) on the
assumption that all other amounts, if any, due under such Mortgage Loan are paid
when due.

         "Moody's": Moody's Investors Service, Inc. and its successors, and if
such company shall for any reason no longer perform the functions of a
securities rating agency, "Moody's" shall be deemed to refer to any other
"nationally recognized statistical rating organization" as set forth on the most
current list of such organizations released by the Securities and Exchange
Commission.

         "Mortgage": The mortgage, deed of trust or other instrument creating a
first or second lien on, or first or second priority security interest in, a
Mortgaged Property securing a Mortgage Note.

         "Mortgage File": The mortgage documents listed in Section 2.01
pertaining to a particular Mortgage Loan and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

         "Mortgage Insurance Certificate": The certificate evidencing an FHA
Insurance Contract.

                                       33

<PAGE>

         "Mortgage Interest Rate": With respect to each Mortgage Loan, the
annual rate at which interest accrues on such Mortgage Loan from time to time in
accordance with the provisions of the related Mortgage Note, which rate (i) in
the case of each Group I Mortgage Loan shall remain constant at the rate set
forth in the Mortgage Loan Schedule as the Mortgage Interest Rate in effect
immediately following the Cut-off Date and (ii) in the case of each Group II
Mortgage Loan (A) as of any date of determination until the first Adjustment
Date following the Cut-off Date shall be the rate set forth in the Mortgage Loan
Schedule as the Mortgage Interest Rate in effect immediately following the
Cut-off Date and (B) as of any date of determination thereafter shall be the
rate as adjusted on the most recent Adjustment Date, to equal the sum, rounded
to the nearest 0.125% as provided in the Mortgage Note, of the Index, determined
as set forth in the related Mortgage Note, plus the related Gross Margin subject
to the limitations set forth in the related Mortgage Note. With respect to each
Mortgage Loan that becomes an REO Property, as of any date of determination, the
annual rate determined in accordance with the immediately preceding sentence as
of the date such Mortgage Loan became an REO Property.

         "Mortgage Loan": Each mortgage loan transferred and assigned to the
Trustee pursuant to Section 2.01 or Section 2.03(d) as from time to time held as
a part of the Trust Fund, the Mortgage Loans so held being identified in the
Mortgage Loan Schedule and set forth in Exhibits D-1 and D-2 attached hereto.

         "Mortgage Loan Purchase Agreement": The agreement between the Seller
and the Depositor, dated as of June 27, 2003, regarding the transfer of the
Mortgage Loans by the Seller to or at the direction of the Depositor.

         "Mortgage Loan Schedule": As of any date (i) with respect to the
Mortgage Loans, the list of such Mortgage Loans included in the Trust Fund on
such date, separately identifying the Group I Mortgage Loans and the Group II
Mortgage Loans, attached hereto as Exhibits D-1 and D-2. The Mortgage Loan
Schedule shall be prepared by the Seller and shall set forth the following
information with respect to each Mortgage Loan:

(1)      the Seller's Mortgage Loan identifying number;

(2)      the city, state, and zip code of the Mortgaged Property;

(3)      the type of Residential Dwelling constituting the Mortgaged Property or
a designation that the Mortgaged Property is a multi-family property;

(4)      the occupancy status of the Mortgaged Property at origination;

(5)      the original months to maturity;

(6)      the date of origination;

(7)      the first payment date;

(8)      the stated maturity date;

(9)      the stated remaining months to maturity;

                                       34

<PAGE>

(10)     the original principal amount of the Mortgage Loan;

(11)     the Principal Balance of each Mortgage Loan as of the Cut-off Date;

(12)     the Arrearage of the Mortgage Loan as of the Cut-off Date;

(13)     the Mortgage Interest Rate of the Mortgage Loan as of the Cut-off Date;

(14)     the current principal and interest payment of the Mortgage Loan as of
the Cut-off Date;

(15)     the contractual interest paid to date of the Mortgage Loan;

(16)     if the Mortgage Loan is not owner-financed, the Combined Loan-to-Value
Ratio at origination;

(17)     a code indicating the loan performance status of the Mortgage Loan as
of the Cut-off Date;

(18)     a code indicating whether the Mortgage Loan is a Simple Interest
Mortgage Loan or an Actuarial Mortgage Loan;

(19)     a code indicating whether the Mortgaged Property is in bankruptcy or in
its forbearance period as of the Cut-off Date;

(20)     a code indicating whether the Mortgage Loan is conventional, insured by
the FHA or guaranteed by the VA;

(21)     a code indicating the Index that is associated with such Mortgage Loan;

(22)     the Gross Margin;

(23)     the Periodic Rate Cap;

(24)     the Minimum Loan Rate;

(25)     the Maximum Loan Rate;

(26)     a code indicating whether the Mortgage Loan has a prepayment penalty
and the type of prepayment penalty;

(27)     the first Adjustment Date immediately following the Cut-off Date;

(28)     the rate adjustment frequency;

(29)     the payment adjustment frequency;

(30)     a code indicating whether the Mortgage Loan is owner-financed; and

(31)     a code indicating whether the Mortgage Loan is a second lien.

                                       35

<PAGE>

         The Mortgage Loan Schedule shall set forth the following information,
as of the Cut-off Date, with respect to the Mortgage Loans in the aggregate, for
each Loan Group: (1) the number of Mortgage Loans; (2) the current Principal
Balance of the Mortgage Loans; (3) the weighted average Mortgage Interest Rate
of the Mortgage Loans; and (4) the weighted average maturity of the Mortgage
Loans. The Mortgage Loan Schedule shall be amended from time to time by the
Seller in accordance with the provisions of this Agreement. With respect to any
Eligible Substitute Mortgage Loan, Cut-off Date shall refer to the related
Cut-off Date for such Mortgage Loan, determined in accordance with the
definition of Cut-off Date herein.

         "Mortgage Note": The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

         "Mortgage Pool": The pool of Mortgage Loans, identified on Exhibits D-1
and D-2 from time to time, and any REO Properties acquired in respect thereof.

         "Mortgaged Property": The underlying property securing a Mortgage Loan,
including any REO Property, consisting of an Estate in Real Property improved by
a Residential Dwelling or multi-family dwelling.

         "Mortgagor": The obligor on a Mortgage Note.

         "Net Liquidation Proceeds": With respect to any Liquidated Mortgage
Loan or any other disposition of related Mortgaged Property (including REO
Property) the related Liquidation Proceeds net of Advances, Servicing Advances,
Servicing Fees, unreimbursed Arrearages and any other accrued and unpaid
servicing fees received and retained in connection with the liquidation of such
Mortgage Loan or Mortgaged Property.

         "Net Mortgage Interest Rate": With respect to any Mortgage Loan, the
Mortgage Interest Rate borne by such Mortgage Loan minus the Expense Fee Rate.

         "New Lease": Any lease of REO Property entered into on behalf of the
Trust, including any lease renewed or extended on behalf of the Trust if the
Trust has the right to renegotiate the terms of such lease.

         "Nonrecoverable Advance": Any Advance or Servicing Advance previously
made or proposed to be made in respect of a Mortgage Loan or REO Property that,
in the good faith business judgment of the Servicer, will not or, in the case of
a proposed Advance or Servicing Advance, would not be ultimately recoverable
from Late Collections on such Mortgage Loan or REO Property as provided herein.

         "Notional Amount": With respect to the Class A-IO Certificates, Class
A-IO Notional Amount. With respect to Component A-IO-1, the Component A-IO-1
Notional Amount. With respect to Component A-IO-2, the Component A-IO-2 Notional
Amount. With respect to the Class N Certificates, an amount equal to the
Original Class N Notional Amount reduced by the aggregate distributions made to
the Class N Certificates pursuant to Section 4.02(b)(xxiii).

         "Offered Certificates": The Class AF-1, Class AV-1, Class A-IO, Class
M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates.

                                       36

<PAGE>

         "Officers' Certificate": A certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), and by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Servicer, the Seller or the
Depositor, as applicable.

         "Opinion of Counsel": A written opinion of counsel, who may, without
limitation, be a salaried counsel for the Depositor or the Servicer except that
any opinion of counsel relating to (a) the qualification of any REMIC as a REMIC
or (b) compliance with the REMIC Provisions must be an opinion of Independent
counsel.

         "Optional Termination Date": The first Distribution Date on which the
Servicer may opt to terminate the Mortgage Pool pursuant to Section 10.01.

         "Original Class A-IO Notional Amount": The Notional Amount of the Class
A-IO Certificates on the Closing Date, as set forth opposite such Class in the
Preliminary Statement.

         "Original Class N Notional Amount": The Notional Amount of the Class N
Certificates on the Closing Date, as set forth opposite such Class in the
Preliminary Statement.

         "Original Class Certificate Principal Balance": With respect to each
Class of Certificates, the Certificate Principal Balance thereof on the Closing
Date, as set forth opposite such Class in the Preliminary Statement, except with
respect to the Class A-IO, Class N, Class X and Residual Certificates, which
have an Original Class Certificate Principal Balance of zero.

         "Original Notional Amount": The Original Class A-IO Notional Amount or
the Original Class N Notional Amount, as the case may be.

         "Overcollateralization Amount": As of any Distribution Date, the
excess, if any, of (x) the Pool Balance as of the last day of the immediately
preceding Collection Period over (y) the aggregate Certificate Principal
Balances of all Classes of Offered Certificates (after taking into account all
distributions of principal on such Distribution Date).

         "Overcollateralization Deficiency": As of any Distribution Date, the
excess, if any, of (x) the Targeted Overcollateralization Amount for such
Distribution Date over (y) the Overcollateralization Amount for such
Distribution Date, calculated for this purpose after taking into account the
reduction on such Distribution Date of the Certificate Principal Balances of all
Classes of Offered Certificates resulting from the distribution of the Principal
Distribution Amount (but not the Extra Principal Distribution Amount) on such
Distribution Date, but prior to taking into account any Applied Realized Loss
Amounts on such Distribution Date.

         "Overcollateralization Release Amount": With respect to any
Distribution Date after the Stepdown Date on which a Trigger Event is not in
effect, the lesser of (x) the Principal Remittance Amount for such Distribution
Date and (y) the excess, if any, of (i) the Overcollateralization Amount for
such Distribution Date, assuming that 100% of the Principal Remittance Amount is
applied as a principal payment on the Offered Certificates on such Distribution
Date, over (ii) the Targeted Overcollateralization Amount for such Distribution
Date. With respect to any Distribution Date on which a Trigger Event is in
effect, the Overcollateralization Release Amount will be zero.

                                       37

<PAGE>

         "Ownership Interest": As to any Certificate, any ownership or security
interest in such Certificate, including any interest in such Certificate as the
Holder thereof and any other interest therein, whether direct or indirect, legal
or beneficial, as owner or as pledgee.

         "Pass-Through Rate": Any of the Class AF-1 Pass-Through Rate, the Class
AV-1 Pass-Through Rate, the Class A-IO Pass-Through Rate, the Class M-1
Pass-Through Rate, the Class M-2 Pass-Through Rate, Class B-1 Pass-Through Rate,
the Class B-2 Pass-Through Rate and the Class B-3 Pass-Through Rate. With
respect to the Class N Certificates, the Pass-Through Rate is 0.00% per annum.

         "Paying Agent":  Any paying agent appointed pursuant to Section 5.05.

         "Percentage Interest": With respect to any Certificate (other than a
Class A-IO, Class N, Class X or Residual Certificate), a fraction, expressed as
a percentage, the numerator of which is the Initial Certificate Principal
Balance represented by such Certificate and the denominator of which is the
Original Class Certificate Principal Balance of the related Class. With respect
to a Class A-IO or Class N Certificate, the undivided percentage interest
obtained by dividing the Initial Notional Amount evidenced by such Certificate
by the Original Class A-IO Notional Amount or Original Class N Notional Amount,
as the case may be, of such Class. With respect to a Class X or Residual
Certificate, the portion of the Class evidenced thereby, expressed as a
percentage, as stated on the face of such Certificate; provided, however, that
the sum of all such percentages for each such Class totals 100%.

         "Periodic Rate Cap": With respect to each Group II Mortgage Loan and
any Adjustment Date therefor, the fixed percentage set forth in the related
Mortgage Note, which is the maximum amount by which the Mortgage Interest Rate
for such Mortgage Loan may increase or decrease (without regard to the Maximum
Loan Rate or the Minimum Loan Rate) on such Adjustment Date from the Mortgage
Interest Rate in effect immediately prior to such Adjustment Date.

         "Permitted Investments": Any one or more of the following obligations
or securities acquired at a purchase price of not greater than par, regardless
of whether issued or managed by the Depositor, the Servicer, the Trustee or any
of their respective Affiliates or for which an Affiliate of the Trustee serves
as an advisor:

         (i)      direct obligations of, or obligations fully guaranteed as to
timely payment of principal and interest by, the United States or any agency or
instrumentality thereof, provided such obligations are backed by the full faith
and credit of the United States;

         (ii)     (A) demand and time deposits in, certificates of deposit of,
bankers' acceptances issued by or federal funds sold by any depository
institution or trust company (including the Trustee or its agents acting in
their respective commercial capacities) incorporated under the laws of the
United States of America or any state thereof and subject to supervision and
examination by federal and/or state authorities, so long as, at the time of such
investment or contractual commitment providing for such investment, such
depository institution or trust company or its ultimate parent has a short-term
uninsured debt rating in one of the two highest available rating categories of
S&P and Moody's and the highest available rating category of

                                       38

<PAGE>

Fitch and provided that each such investment has an original maturity of no more
than 365 days and (B) any other demand or time deposit or deposit which is fully
insured by the FDIC;

         (iii)    repurchase obligations with a term not to exceed 30 days with
respect to any security described in clause (i) above and entered into with a
depository institution or trust company (acting as principal) rated A or higher
by S&P and Fitch and rated A2 or higher by Moody's, provided, however, that
collateral transferred pursuant to such repurchase obligation must be of the
type described in clause (i) above and must (A) be valued daily at current
market prices plus accrued interest or (B) pursuant to such valuation, be equal,
at all times, to 105% of the cash transferred by the Trustee in exchange for
such collateral and (C) be delivered to the Trustee or, if the Trustee is
supplying the collateral, an agent for the Trustee, in such a manner as to
accomplish perfection of a security interest in the collateral by possession of
certificated securities;

         (iv)     securities bearing interest or sold at a discount that are
issued by any corporation incorporated under the laws of the United States of
America or any State thereof and that are rated by each Rating Agency in its
highest long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment;

         (v)      commercial paper (including both non-interest-bearing discount
obligations and interest-bearing obligations payable on demand or on a specified
date not more than 30 days after the date of acquisition thereof) that is rated
by each Rating Agency in its highest short-term unsecured debt rating available
at the time of such investment;

         (vi)     units of money market funds registered under the Investment
Company Act of 1940 including funds managed or advised by the Trustee or
affiliates thereof having the highest rating category by the applicable Rating
Agency; and

         (vii)    if previously confirmed in writing to the Trustee, any other
demand, money market or time deposit, or any other obligation, security or
investment, as may be acceptable to the Rating Agencies in writing as a
permitted investment of funds backing securities having ratings equivalent to
its highest initial rating of the Class A Certificates;

provided, that (i) no instrument described hereunder shall evidence either the
right to receive (a) only interest with respect to the obligations underlying
such instrument or (b) both principal and interest payments derived from
obligations underlying such instrument and the interest and principal payments
with respect to such instrument provide a yield to maturity at par greater than
120% of the yield to maturity at par of the underlying obligations and (ii) each
such investment must be a "permitted investment" within the meaning of Section
1.860G(a)(5) of the Code.

         "Permitted Transferee": Any transferee of a Residual Certificate other
than a Disqualified Organization or a Disqualified Non-U.S. Person.

         "Person": Any individual, corporation, partnership, joint venture,
association, joint stock company, trust, limited liability company,
unincorporated organization or government or any agency or political subdivision
thereof.

                                       39
<PAGE>

         "Pool Balance": As of any date of determination, the aggregate
Principal Balance of the Mortgage Loans.

         "Prepayment Interest Shortfall": With respect to any Distribution Date,
for each Mortgage Loan that was during the related Prepayment Period the subject
of a Principal Prepayment in full that was applied by the Servicer to reduce the
outstanding principal balance of such loan on a date preceding the related Due
Date, an amount equal to interest at the applicable Mortgage Interest Rate (net
of the Servicing Fee Rate) on the amount of such Principal Prepayment for the
number of days commencing on the date on which the prepayment is applied and
ending on the last day of the related Prepayment Period.

         "Prepayment Period": With respect to any Distribution Date, the
calendar month preceding the month in which such Distribution Date occurs.

         "Primary Insurance Policy": Each policy of primary guaranty mortgage
insurance issued by a Qualified Insurer in effect with respect to any Mortgage
Loan, or any replacement policy therefor obtained by the Servicer pursuant to
Section 3.08.

         "Principal Balance": As to any Mortgage Loan and any day, other than a
Liquidated Mortgage Loan, the related Cut-off Date Principal Balance, minus the
sum of (i) all collections and other amounts credited against the principal
balance of any such Mortgage Loan, (ii) the principal portion of Advances, (iii)
any Deficient Valuation and (iv) any principal reduction resulting from a
Servicer Modification. For purposes of this definition, a Liquidated Mortgage
Loan shall be deemed to have a Principal Balance equal to the Principal Balance
of the related Mortgage Loan as of the final recovery of related Liquidation
Proceeds and a Principal Balance of zero thereafter. As to any REO Property and
any day, the Principal Balance of the related Mortgage Loan immediately prior to
such Mortgage Loan becoming REO Property minus any REO Principal Amortization
received with respect thereto on or prior to such day.

         "Principal Distribution Amount": As to any Distribution Date, the sum
of (i) the Principal Remittance Amount minus, for Distribution Dates occurring
on and after the Stepdown Date and for which a Trigger Event is not in effect,
the Overcollateralization Release Amount, if any, and (ii) the Extra Principal
Distribution Amount, if any.

         "Principal Prepayment": Any payment of principal made by the Mortgagor
on a Mortgage Loan which is received in advance of its scheduled Due Date and
which is not accompanied by an amount of interest representing the full amount
of scheduled interest due on any Due Date in any month or months subsequent to
the month of prepayment.

         "Principal Remittance Amount": With respect to any Distribution Date,
to the extent of funds available therefor, the sum (less amounts available for
reimbursement of Advances and Servicing Advances pursuant to Section 3.05 and
expenses reimbursable pursuant to Section 6.03) of: (i) each payment of
principal on a Mortgage Loan due during the related Collection Period and
received by the Servicer on or prior to the related Determination Date, and any
Advances with respect thereto, (ii) the portion of all full and partial
Principal Prepayments or Insurance Proceeds allocable to principal received by
the Servicer during the related Prepayment Period, (iii) the Net Liquidation
Proceeds allocable to principal actually collected by the Servicer

                                       40

<PAGE>

during the related Prepayment Period, (iv) with respect to Defective Mortgage
Loans repurchased with respect to such Prepayment Period, the portion of the
Purchase Price allocable to principal, (v) any Substitution Adjustment Amounts
received on or prior to the previous Determination Date and not yet distributed
and (vi) on the Distribution Date on which the Trust is to be terminated in
accordance with Section 10.01 hereof, that portion of the Termination Price in
respect of principal.

         "Private Certificates": Any of the Class N, Class X and Residual
Certificates.

         "Property Insurance Proceeds": Proceeds of any title policy, hazard
policy or other insurance policy covering a Mortgage Loan, to the extent such
proceeds are received by the Servicer and are not to be applied to the
restoration of the related Mortgaged Property or released to the Mortgagor in
accordance with the Servicer's servicing procedures, subject to the terms and
conditions of the related Mortgage Note and Mortgage.

         "Prospectus Supplement": That certain Prospectus Supplement dated June
25, 2003 relating to the public offering of the Offered Certificates.

         "Purchase Price": With respect to any Mortgage Loan or REO Property to
be purchased pursuant to or as contemplated by Section 2.03 or 10.01, and as
confirmed by a certification from a Servicing Officer of the Servicer to the
Trustee, an amount equal to the sum of (i) 100% of the Principal Balance thereof
as of the date of purchase (or such other price as provided in Section 10.01),
(ii) in the case of (x) a Mortgage Loan, accrued interest on such Principal
Balance at the applicable Mortgage Interest Rate in effect from time to time
from the Due Date as to which interest was last covered by a payment by the
Mortgagor or an Advance by the Servicer, which payment or Advance had as of the
date of purchase been distributed pursuant to Section 4.01, through the end of
the calendar month in which the purchase is to be effected, and (y) an REO
Property, its fair market value, determined in good faith by the Servicer, (iii)
any unreimbursed Servicing Advances and Advances and any unpaid Servicing Fees
allocable to such Mortgage Loan or REO Property, (iv) any amounts previously
withdrawn from the Collection Account in respect of such Mortgage Loan or REO
Property pursuant to Section 3.13, and (v) in the case of a Mortgage Loan
required to be purchased pursuant to Section 2.03, (x) any costs and damages
incurred by the Trust in connection with any violation by such Mortgage Loan of
any predatory and abusive lending law and (y) expenses reasonably incurred or to
be incurred by the Servicer or the Trustee in respect of the breach or defect
giving rise to the purchase obligation.

         "Qualified Insurer": Any insurance company acceptable to Fannie Mae or
Freddie Mac.

         "Rating Agency or Rating Agencies": Fitch, Moody's and S&P, or their
respective successors. If such agencies or their successors are no longer in
existence, "Rating Agencies" shall be such nationally recognized statistical
rating organizations as set forth on the most current list of such organizations
released by the Securities and Exchange Commission and designated by the
Depositor, notice of which designation shall be given to the Trustee and the
Servicer.

         "Realized Loss": With respect to a Liquidated Mortgage Loan, the amount
by which the remaining unpaid Principal Balance of the Mortgage Loan plus
accrued and unpaid interest thereon at the Mortgage Interest Rate through the
last day of the month of liquidation, exceeds

                                       41

<PAGE>

the amount of Net Liquidation Proceeds applied to the principal balance of the
related Mortgage Loan. With respect to any Mortgage Loan, a Deficient Valuation
or a reduction in the Principal Balance thereof resulting from a Servicer
Modification.

         "Realized Loss Amortization Amount": Any of the Class M-1 Realized Loss
Amortization Amount, the Class M-2 Realized Loss Amortization Amount, the Class
B-1 Realized Loss Amortization Amount, the Class B-2 Realized Loss Amortization
Amount and the Class B-3 Realized Loss Amortization Amount.

         "Record Date": With respect to the Class AF-1, Class A-IO, Class M-1,
Class M-2, Class B-1, Class B-2, Class N, Class X and Class R Certificates, the
last Business Day of the month immediately preceding the month in which the
related Distribution Date occurs (or, in the case of the first Distribution
Date, the Closing Date). With respect to the Class AV-1 and Class B-3
Certificates, the Business Day immediately preceding such Distribution Date;
provided, however, that if any such Certificate becomes a Definitive
Certificate, the Record Date for such Certificate shall be the last Business Day
of the month immediately preceding the month in which the related Distribution
Date occurs.

         "Reference Banks": Those banks (i) with an established place of
business in London, England, (ii) not controlling, under the control of or under
common control with the Depositor or the Trustee, (iii) that have been
designated as such by the Trustee, after consultation with the Servicer and (iv)
that are engaged in transactions in the London interbank market.

         "Regular Certificate": Any of the Offered Certificates, the Class N
Certificates and the Class X Certificates.

         "Reimbursement Amount": As defined in Section 2.03.

         "Related Documents": With respect to any Mortgage Loan, the related
Mortgage Notes, Mortgages and other related documents.

         "Relief Act": The Soldiers' and Sailors Civil Relief Act of 1940, as
amended.

         "Relief Act Interest Shortfall": With respect to any Distribution Date,
for any Mortgage Loan with respect to which there has been a reduction in the
amount of interest collectible thereon for the most recently ended Collection
Period as a result of the application of the Relief Act or similar state laws,
the amount by which (i) interest collectible on such Mortgage Loan during such
Collection Period is less than (ii) one month's interest on the Principal
Balance of such Mortgage Loan at the Mortgage Interest Rate for such Mortgage
Loan before giving effect to the application of the Relief Act or similar state
laws.

         "REMIC": A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

         "REMIC Provisions": Provisions of the federal income tax law relating
to real estate mortgage investment conduits which appear at Section 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
regulations and rulings promulgated thereunder, as the foregoing may be in
effect from time to time.

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<PAGE>

         "REMIC Regular Interest": As defined in the Preliminary Statement.

         "REMIC 1": As defined in the Preliminary Statement.

         "REMIC 1 Interest": Each of the REMIC 1 Regular Interests and the Class
R-1 Interest.

         "REMIC 1 Regular Interest": Each "regular interest" in REMIC 1
designated as such as described in the Preliminary Statement.

         "REMIC 2":  As defined in the Preliminary Statement.

         "REMIC 2 Interest": Each of the REMIC 2 Regular Interests and the Class
R-2 Interest.

         "REMIC 2 IO Interests": Each of the LT2-I-1-IO Interest, LT2-I-2-IO
Interest, LT2-I-3-IO Interest, LT2-I-4-IO Interest, LT2-I-5-IO Interest,
LT2-I-6-IO Interest, LT2-I-7-IO Interest, LT2-I-8-IO Interest, LT2-I-9-IO
Interest, LT2-I-10-IO Interest, LT2-I-11-IO Interest, LT2-I-12-IO Interest,
LT2-I-13-IO Interest, LT2-I-14-IO Interest, LT2-I-15-IO Interest, LT2-I-16-IO
Interest, LT2-I-17-IO Interest, LT2-I-18-IO Interest, LT2-I-19-IO Interest,
LT2-I-20-IO Interest, LT2-I-21-IO Interest, LT2-I-22-IO Interest, LT2-I-23-IO
Interest, LT2-I-24-IO Interest, LT2-I-25-IO Interest, LT2-I-26-IO Interest,
LT2-I-27-IO Interest, LT2-I-28-IO Interest, LT2-I-29-IO Interest, LT2-I-30-IO
Interest, LT2-II-1-IO Interest, LT2-II-2-IO Interest, LT2-II-3-IO Interest,
LT2-II-4-IO Interest, LT2-II-5-IO Interest, LT2-II-6-IO Interest, LT2-II-7-IO
Interest, LT2-II-8-IO Interest, LT2-II-9-IO Interest, LT2-II-10-IO Interest,
LT2-II-11-IO Interest, LT2-II-12-IO Interest, LT2-II-13-IO Interest,
LT2-II-14-IO Interest, LT2-II-15-IO Interest, LT2-II-16-IO Interest,
LT2-II-17-IO Interest, LT2-II-18-IO Interest, LT2-II-19-IO Interest,
LT2-II-20-IO Interest, LT2-II-21-IO Interest, LT2-II-22-IO Interest,
LT2-II-23-IO Interest, LT2-II-24-IO Interest, LT2-II-25-IO Interest,
LT2-II-26-IO Interest, LT2-II-27-IO Interest, LT2-II-28-IO Interest,
LT2-II-29-IO Interest and LT2-II-30-IO Interest.

         "REMIC 2 Regular Interest": Each "regular interest" in REMIC 2
designated as such as described in the Preliminary Statement.

         "REMIC 3": As defined in the Preliminary Statement.

         "REMIC 3 Interest": Each of the REMIC 3 Regular Interests and the Class
R-3 Interest.

         "REMIC 3 Regular Interest": Each "regular interest" in REMIC 3
designated as such as described in the Preliminary Statement.

         "REMIC 3 Subordinated Balance Ratio": The ratio among the principal
balances of the Class LT3-IA Interest and the Class LT3-IIA Interest that is
equal to the ratio among, with respect to each such REMIC 3 Regular Interest,
the Group Subordinate Amount for the related Mortgage Group.

         "REMIC 4": As defined in the Preliminary Statement.

         "REMIC 4 Interest": Each of the REMIC 4 Regular Interests and the Class
R-4 Interest.

                                       43

<PAGE>

         "REMIC 4 Regular Interest": Each of the Class AF-1 Certificates, the
REMIC 4 AV-1 Interest, the REMIC 4 M-1 Interest, the REMIC 4 M-2 Interest, the
REMIC 4 B-1 Interest, the REMIC 4 B-2 Interest, the REMIC 4 B-3 Interest, the
Class A-IO Certificates and the REMIC 4 X/N Interest.

          "REMIC 4 AV-1 Interest": An uncertificated "regular interest" in REMIC
4 having the same rights to payments as the Class AV-1 Certificates other than
the right to any payments in respect of Carryover Amounts.

         "REMIC 4 M-1 Interest": An uncertificated "regular interest" in REMIC 4
having the same rights to payments as the Class M-1 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 4 M-2 Interest": An uncertificated "regular interest" in REMIC 4
having the same rights to payments as the Class M-2 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 4 B-1 Interest": An uncertificated "regular interest" in REMIC 4
having the same rights to payments as the Class B-1 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 4 B-2 Interest": An uncertificated "regular interest" in REMIC 4
having the same rights to payments as the Class B-2 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 4 B-3 Interest": An uncertificated "regular interest" in REMIC 4
having the same rights to payments as the Class B-3 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 4 X/N Interest": An uncertificated "regular interest" in REMIC 4
held by REMIC 5 having an initial principal balance of $2,967,267.70 and bearing
interest at the REMIC 4 X/N Interest Distributable Interest Rate on a notional
balance equal to 99.99% of the aggregate of the Principal Balance of the
Mortgage Loans outstanding as of the beginning of the related Interest Accrual
Period. The REMIC 4 Class X/N Interest shall be entitled to all prepayment
penalties (including amounts deposited in connection with the full or partial
waiver of such prepayment penalties pursuant to Section 3.01).

         "REMIC 4 X/N Interest Current Interest: As of any Distribution Date,
the interest accrued during the related Interest Accrual Period at the REMIC 4
X/N Interest Distributable Interest Rate on a notional amount equal to 99.99% of
the aggregate of the Principal Balance of the Mortgage Loans outstanding as of
the beginning of such Interest Accrual Period (such amount of interest
representing a "specified portion" (within the meaning of Treasury Regulations
Section 1.860G-1(a)(2)(i)(C)) of interest payments on the REMIC 3 Regular
Interests (other than the LT3-IB Interest and the LT3-IIB Interest)).

         "REMIC 4 X/N Interest Distributable Interest Rate": The excess, if any,
of (a) the weighted average of the interest rates on the REMIC 3 Regular
Interests over (b) two times the weighted average of the interest rates on the
Marker Interests and the LT3-X1 Interest (treating for

                                       44

<PAGE>

purposes of this clause (b) the interest rate on each of the Marker Interests as
being capped at the Pass-Through Rate of the Related Certificate of such Marker
Interest (as described in the Preliminary Statement) and treating the LT3-X1
Interest as being capped at zero). The averages described in the preceding
sentence shall be weighted on the basis of the respective principal balances of
the relevant REMIC 3 Regular Interests immediately prior to any date of
determination.

         "REMIC 5": As defined in the Preliminary Statement.

         "REMIC 5 Interest": Each of the REMIC 5 Regular Interests and the Class
R-5 Interest.

         "REMIC 5 Regular Interest": The REMIC 5 X/N Interest.

         "REMIC 5 X/N Interest": An uncertificated "regular interest" in REMIC 4
held by the Trustee on behalf of the holders of the Class X and Class N
Certificates and entitled to all payments in respect of the REMIC 4 X/N
Interest.

         "REMIC 6": As defined in the Preliminary Statement.

         "REMIC 6 Interest": Each of the REMIC 6 Regular Interests and the Class
R-6 Interest.

         "REMIC 6 Regular Interest": The REMIC 6 B-1 Interest.

         "REMIC 6 B-1 Interest": An uncertificated "regular interest" in REMIC 6
having the same rights to payments as the Class B-1 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 7": As defined in the Preliminary Statement.

         "REMIC 7 Interest": Each of the REMIC 7 Regular Interests and the Class
R-7 Interest.

         "REMIC 7 Regular Interest": The REMIC 7 B-2 Interest.

         "REMIC 7 B-2 Interest": An uncertificated "regular interest" in REMIC 7
having the same rights to payments as the Class B-2 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "REMIC 8": As defined in the Preliminary Statement.

         "REMIC 8 Interest": Each of the REMIC 8 Regular Interests and the Class
R-8 Interest.

         "REMIC 8 Regular Interest": The REMIC 8 B-3 Interest.

         "REMIC 8 B-3 Interest": An uncertificated "regular interest" in REMIC 8
having the same rights to payments as the Class B-3 Certificates other than the
right to any payments in respect of Carryover Amounts.

         "Remittance Report": A report prepared by the Servicer and delivered to
the Trustee pursuant to Section 4.07, containing the information attached hereto
as Exhibit P.

                                       45

<PAGE>

         "Rents from Real Property": With respect to any REO Property, gross
income of the character described in Section 856(d) of the Code.

         "REO Disposition": The sale or other disposition of an REO Property on
behalf of the Trust Fund.

         "REO Principal Amortization": With respect to any REO Property, for any
calendar month, the aggregate of all amounts received in respect of such REO
Property during such calendar month, whether in the form of rental income, sale
proceeds (including, without limitation, that portion of the Termination Price
paid in connection with a purchase of all of the Mortgage Loans and REO
Properties pursuant to Section 10.01 that is allocable to such REO Property) or
otherwise, net of any portion of such amounts (i) payable pursuant to Section
3.13 in respect of the proper operation, management and maintenance of such REO
Property or (ii) payable or reimbursable to the Servicer pursuant to Section
3.13 for unpaid Servicing Fees in respect of the related Mortgage Loan and
unreimbursed Servicing Advances and Advances in respect of such REO Property or
the related Mortgage Loan.

         "REO Property": A Mortgaged Property acquired by the Servicer on behalf
of the Trust Fund through foreclosure or deed-in-lieu of foreclosure, as
described in Section 3.13.

         "Request for Release": A release signed by a Servicing Officer, in the
form of Exhibit E attached hereto.

         "Residential Dwelling": Any one of the following: (i) a one-family
dwelling, (ii) a two- to four-family dwelling, (iii) a one-family dwelling unit
in a Fannie Mae eligible condominium project, (iv) a one-family dwelling in a
planned unit development, which is not a co-operative, or (v) a mobile or
manufactured home (as defined in 42 United States Code, Section 5402(6)).

         "Residual Certificates": The Class R Certificates and the Class R-X
Certificates .

         "Residual Interest": The sole Class of "residual interests" in each
REMIC within the meaning of Section 860G(a)(2) of the Code.

         "Responsible Officer": When used with respect to the Trustee, any
officer assigned to the Corporate Trust Division (or any successor thereto),
including any Vice President, Assistant Vice President, Trust Officer, any
Assistant Secretary, any trust officer or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and in each case having direct responsibility for the
administration of this Agreement.

         "S&P": Standard & Poor's, a division of The McGraw-Hill Companies,
Inc., and its successors, and if such company shall for any reason no longer
perform the functions of a securities rating agency, "S&P" shall be deemed to
refer to any other "nationally recognized statistical rating organization" as
set forth on the most current list of such organizations released by the
Securities and Exchange Commission.

         "Seller": Credit-Based Asset Servicing and Securitization LLC, or its
successor in interest, in its capacity as seller under the Mortgage Loan
Purchase Agreement.

                                       46

<PAGE>

         "Senior Certificates": The Class AF-1, Class AV-1 and Class A-IO
Certificates.

         "Senior Enhancement Percentage": For any Distribution Date, the
percentage obtained by dividing (x) the sum of (i) the aggregate Certificate
Principal Balances of the Class M and Class B Certificates and (ii) the
Overcollateralization Amount, in each case before taking into account the
distribution of the Principal Distribution Amount on such Distribution Date by
(y) the Pool Balance as of the last day of the related Collection Period.

         "Senior Specified Enhancement Percentage": On any date of determination
thereof, 31.50%.

         "Servicer": Litton Loan Servicing LP, a Delaware limited partnership,
or any successor servicer appointed as herein provided, in its capacity as
Servicer hereunder.

         "Servicer Affiliate": A Person (i) controlling, controlled by or under
common control with the Servicer or which is 50% or more owned by the Servicer
and (ii) which is qualified to service residential mortgage loans.

         "Servicer Event of Termination": One or more of the events described in
Section 7.01.

         "Servicer Modification": A modification to the terms of a Mortgage
Loan, in accordance with the terms of Section 3.01, as to which the Mortgagor is
in default or as to which, in the judgment of the Servicer, default is
reasonably foreseeable.

         "Servicer Remittance Date": With respect to any Distribution Date, one
Business Day prior to such Distribution Date.

         "Servicing Advances": All customary, reasonable and necessary "out of
pocket" costs and expenses incurred by the Servicer in the performance of its
servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration and protection of the Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of the REO Property and (iv) compliance with the
obligations under Section 3.08.

         "Servicing Fee": With respect to each Mortgage Loan (including each REO
Property) and for any calendar month, an amount equal to one month's interest
(or in the event of any payment of interest which accompanies a Principal
Prepayment in full made by the Mortgagor during such calendar month, interest
for the number of days covered by such payment of interest) at the Servicing Fee
Rate on the same principal amount on which interest on such Mortgage Loan
accrues for such calendar month.

         "Servicing Fee Rate": With respect to each Mortgage Loan, 0.50% per
annum.

         "Servicing Officer": Any officer of the Servicer involved in, or
responsible for, the administration and servicing of Mortgage Loans, whose name
and specimen signature appear on a list of servicing officers furnished by the
Servicer to the Trustee and the Depositor on the Closing Date, as such list may
from time to time be amended.

                                       47

<PAGE>

         "Servicing Rights Pledgee": One or more lenders, selected by the
Servicer, to which the Servicer will pledge and assign all of its right, title
and interest in, to and under this Agreement, including Wachovia Bank, National
Association, as the representative of certain lenders.

         "Servicing Standard": Shall mean the standards set forth in Section
3.01.

         "Simple Interest Method": The method of allocating a payment to
principal and interest, pursuant to which the portion of such payment that is
allocated to interest is equal to the product of the fixed rate of interest
multiplied by the unpaid principal balance multiplied by the period of time
elapsed since the preceding payment of interest was made and divided by either
360 or 365, as specified in the related Mortgage Note, and the remainder of such
payment is allocated to principal.

         "Simple Interest Mortgage Loan": Any Mortgage Loan under which the
portion of a payment allocable to interest and the portion of such payment
allocable to principal is determined in accordance with the Simple Interest
Method.

         "Special Hazard Loss": Any Realized Losses that result from direct
physical damage to Mortgaged Properties caused by natural disasters and other
hazards (i) which are not covered by hazard insurance policies (such as
earthquakes) and (ii) for which claims have been submitted and rejected by the
related hazard insurer and any shortfall in insurance proceeds for partial
damage due to the application of the co-insurance clauses contained in hazard
insurance policies.

         "Startup Day": As defined in Section 9.01(b) hereof.

         "Stayed Funds": Any payment required to be made under the terms of the
Certificates and this Agreement but which is not remitted by the Servicer
because the Servicer is the subject of a proceeding under the Bankruptcy Code
and the making of such remittance is prohibited by Section 362 of the Bankruptcy
Code.

         "Stepdown Date": The later to occur of (x) the earlier to occur of (A)
the Distribution Date in July 2006 and (B) the Distribution Date on which the
aggregate Certificate Principal Balance of the Class A Certificates is reduced
to zero, and (y) the first Distribution Date on which the Senior Enhancement
Percentage is greater than or equal to the Senior Specified Enhancement
Percentage.

         "Subordinate Rate Cap": With respect to any Distribution Date, a per
annum rate equal to the weighted average of the Group I Cap and the Group II
Cap, weighted on the basis of the Group I Group Subordinate Amount and the Group
II Group Subordinate Amount, respectively.

         "Subordinated Certificates": The Class M-1, Class M-2, Class B-1, Class
B-2, Class B-3, Class N, Class X and Class R Certificates.

         "Subsequent Overcollateralization Amount": As of any Distribution Date,
after the application of principal payments and Applied Realized Loss Amounts,
an amount equal to the excess, if any of (a) the Pool Balance over (b) the sum
of (i) the Certificate Principal Balance of each Class of Offered Certificates
and (ii) the Remaining Initial Overcollateralization Amount.

                                       48

<PAGE>

         "Substitution Adjustment Amount": As defined in Section 2.03(d) hereof.

         "Targeted Overcollateralization Amount": As of any Distribution Date,
(x) prior to the Stepdown Date, 1.00% of the Pool Balance on the Cut-off Date
and (y) on and after the Stepdown Date, (i) if a Trigger Event has not occurred,
the lesser of (a) 1.00% of the Pool Balance on the Cut-off Date and (b) the
greater of (A) 2.00% of the Pool Balance as of the last day of the related
Collection Period and (B) 0.50% of the Pool Balance on the Cut-off Date and (ii)
if a Trigger Event has occurred, the Targeted Overcollateralization Amount for
the immediately preceding Distribution Date.

         "Tax Matters Person": The tax matters person appointed pursuant to
Section 9.01(e) hereof.

         "Tax Returns": The federal income tax returns on Internal Revenue
Service Form 1066, U.S. Real Estate Mortgage Investment Conduit Income Tax
Return, including Schedule Q thereto, Quarterly Notice to Residual Interest
Holders of the REMIC Taxable Income or Net Loss Allocation, or any successor
forms, to be filed on behalf of the Trust for each of the eight REMICs created
pursuant to this Agreement under the REMIC Provisions, together with any and all
other information reports or returns that may be required to be furnished to the
Certificateholders or filed with the Internal Revenue Service or any other
governmental taxing authority under any applicable provisions of federal, state
or local tax laws.

         "Telerate Page 3750": The display page currently so designated on the
Moneyline Telerate Service (or such other page as may replace the Telerate Page
3750 page on that service for the purpose of displaying London interbank offered
rates of major banks).

         "Termination Price": As defined in Section 10.01(a) hereof.

         "Trigger Event": With respect to any Distribution Date, if (i) the
six-month rolling average of 60+ Day Delinquent Loans equals or exceeds 47% of
the Senior Enhancement Percentage or (ii) the aggregate amount of Realized
Losses incurred since the Cut-off Date through the last day of the related
Collection Period divided by the Pool Balance as of the Cut-off Date exceeds the
applicable percentages set forth below with respect to such Distribution Date:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN                    PERCENTAGE
------------------------------                    ----------
<S>                                               <C>
July 2006 through June 2007                         2.25%
July 2007 through June 2008                         3.75%
July 2008 through June 2009                         5.00%
July 2009 and thereafter                            6.00%
</TABLE>

         "Trust": 2003-CB3 Trust, the trust created hereunder.

         "Trust Fund": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to a portion of which eight REMIC elections are to be made, such
entire Trust Fund consisting of: (i) such Mortgage Loans as from time to time
are subject to this Agreement, together with the Mortgage Files relating

                                       49

<PAGE>

thereto, and together with all collections thereon and proceeds thereof, (ii)
any REO Property, together with all collections thereon and proceeds thereof,
(iii) the Trustee's rights with respect to the Mortgage Loans under all
insurance policies required to be maintained pursuant to this Agreement and any
proceeds thereof, (iv) the Depositor's rights under the Mortgage Loan Purchase
Agreement (including any security interest created thereby) and (v) the
Collection Account, the Distribution Account and any REO Account and such assets
that are deposited therein from time to time and any investments thereof,
together with any and all income, proceeds and payments with respect thereto.
Notwithstanding the foregoing, however, the Trust Fund specifically excludes all
payments and other collections of principal and interest representing Arrearage.

         "Trustee": U.S. Bank National Association, a national banking
association organized and existing under the laws of the United States, or any
successor Trustee appointed as herein provided.

         "Trustee Fee": With respect to any Distribution Date, the product of
(x) one-twelfth of the Trustee Fee Rate and (y) the aggregate of the Principal
Balances of all Mortgage Loans as of the opening of business on the first day of
the related Collection Period.

         "Trustee Fee Rate": With respect to any Distribution Date, 0.0105% per
annum.

         "Underwriters": Merrill Lynch, Pierce, Fenner & Smith Incorporated and
J.P. Morgan Securities Inc., as underwriters with respect to the Offered
Certificates.

         "United States Person" or "U.S. Person": (i) A citizen or resident of
the United States, (ii) a corporation, partnership or other entity treated as a
corporation or partnership for United States federal income tax purposes
organized in or under the laws of the United States or any state thereof or the
District of Columbia (unless, in the case of a partnership, Treasury regulations
provide otherwise) or (iii) an estate the income of which is includible in gross
income for United States tax purposes, regardless of its source, or (iv) a trust
if a court within the United States is able to exercise primary supervision over
the administration of the trust and one or more United States persons have
authority to control all substantial decisions of the trust. Notwithstanding the
preceding sentence, to the extent provided in Treasury regulations, certain
Trusts in existence on August 20, 1996, and treated as United States persons
prior to such date, that elect to continue to be treated as United States
persons will also be a U.S. Person.

         "Unpaid Realized Loss Amount": For any Class M-1, Class M-2, Class B-1,
Class B-2 and Class B-3 Certificates and as to any Distribution Date, the excess
of (x) the cumulative amount of related Applied Realized Loss Amounts with
respect to such Class for all prior Distribution Dates over (y) the cumulative
amount of related Realized Loss Amortization Amounts with respect to such Class
for all prior Distribution Dates.

         "VA": The United States Department of Veterans Affairs.

         "VA Approved Lender": Those institutions that are approved by the VA to
act as servicer and mortgagee of record pursuant to VA Regulations.

                                       50

<PAGE>

         "VA Guaranty Agreements": With respect to a VA Loan, the agreements
evidencing the guaranty of such Mortgage Loan by the VA.

         "VA Loan": A Mortgage Loan guaranteed by the VA.

         "VA Regulations": Any and all regulations promulgated by the VA under
the Servicemen's Readjustment Act of 1944, as amended.

         "Value": With respect to any Mortgaged Property, the lower of the value
thereof as determined by an independent appraisal made at the time of the
origination of the related Mortgage Loan or the sale price, if the appraisal is
not available; except that, with respect to any Mortgage Loan that is a purchase
money mortgage loan, the lesser of (i) the value thereof as determined by an
independent appraisal made at the time of the origination of such Mortgage Loan,
if any, and (ii) the sales price of the related Mortgaged Property.

         "Voting Rights": The portion of the voting rights of all of the
Certificates which is allocated to any Certificate. The Voting Rights allocated
among Holders of the Offered Certificates (other than the Class A-IO
Certificates) shall be 98%, and shall be allocated among each such Class
according to the fraction, expressed as a percentage, the numerator of which is
the aggregate Certificate Principal Balance of all the Certificates of such
Class then outstanding and the denominator of which is the aggregate Certificate
Principal Balance of all the Offered Certificates then outstanding. The Voting
Rights allocated to each such Class of Certificates shall be allocated among all
holders of each such Class in proportion to the outstanding Certificate
Principal Balance of such Certificates; provided, however, that any Certificate
registered in the name of the Servicer, the Depositor or the Trustee or any of
their respective affiliates shall not be included in the calculation of Voting
Rights; provided that only such Certificates as are known by a Responsible
Officer of the Trustee to be so registered will be so excluded. On each
Distribution Date (a) prior to the date on which the Notional Amount of the
Class N Certificates is reduced to zero, the percentage of all the Voting Rights
allocated among the Holders of the Class N and Class X Certificates,
respectively, shall be 1% and (b) on and after the date on which the Notional
Amount of the Class N Certificates is reduced to zero, the percentage of all the
Voting Rights allocated among the Holders of the Class N Certificates shall be
0% and the percentage of all the Voting Rights allocated among the Holder of the
Class X Certificates shall be 2%. The Class A-IO and Residual Certificates shall
have no Voting Rights.

         "Weighted Average Net Mortgage Rate": With respect to either or both of
Loan Group I or Loan Group II, the weighted average (based on Principal Balance
as of the first day of the related Collection Period or, in the case of the
first Distribution Date, the Cut-Off Date) of the Net Mortgage Interest Rates of
the Mortgage Loans of such Loan Group or Groups, expressed as an annual rate and
calculated on the basis of twelve months consisting of 30 days each and a
360-day year.

         "Written Order to Authenticate": A written order by which the Depositor
directs the Trustee to execute, authenticate and deliver the Certificates.

                                       51

<PAGE>

         Section 1.02 Accounting.

         Unless otherwise specified herein, for the purpose of any definition or
calculation, whenever amounts are required to be netted, subtracted or added or
any distributions are taken into account such definition or calculation and any
related definitions or calculations shall be determined without duplication of
such functions.

                                   ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.01 Conveyance of Mortgage Loans.

         The Depositor, concurrently with the execution and delivery hereof,
does hereby transfer, assign, set over and otherwise convey to the Trustee, on
behalf of the Trust, without recourse for the benefit of the Certificateholders
all the right, title and interest of the Depositor, including any security
interest therein for the benefit of the Depositor, in and to (i) each Mortgage
Loan identified on the Mortgage Loan Schedule, including the related Cut-off
Date Principal Balance, all interest accruing thereon after the Cut-off Date and
all collections in respect of interest and principal due after the Cut-off Date;
(ii) property which secured each such Mortgage Loan and which has been acquired
by foreclosure or deed in lieu of foreclosure; (iii) its interest in any
insurance policies in respect of the Mortgage Loans; (iv) all proceeds of any of
the foregoing; (v) the rights of the Depositor under the Mortgage Loan Purchase
Agreement, and (vi) all other assets included or to be included in the Trust
Fund; provided, however, so long as the Servicer is an FHA Approved Mortgagee,
the Commissioner of HUD shall have no obligation to recognize or deal with any
person other than the Servicer with respect to FHA Insurance. Such assignment
includes all interest and principal due to the Depositor or the Servicer after
the Cut-off Date with respect to the Mortgage Loans.

         In connection with such transfer and assignment, the Seller, on behalf
of the Depositor, does hereby deliver to, and deposit with the Trustee, or its
designated agent (the "Custodian"), the following documents or instruments with
respect to each Mortgage Loan (a "Mortgage File") so transferred and assigned:

                           (i)      the original Mortgage Note including any
riders thereto, endorsed either (A) in blank or (B) in the following form: "Pay
to the order of U.S. Bank National Association, as Trustee under the Pooling and
Servicing Agreement, dated as of June 1, 2003, among Credit-Based Asset
Servicing and Securitization LLC, Merrill Lynch Mortgage Investors, Inc., Litton
Loan Servicing LP and U.S. Bank National Association, C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2003-CB3, without recourse," or with respect
to any lost Mortgage Note, an original Lost Note Affidavit, together with a copy
of the related Mortgage Note;

                           (ii)     the original Mortgage including any riders
thereto, with evidence of recording thereon, and the original recorded power of
attorney, if the Mortgage was executed pursuant to a power of attorney, with
evidence of recording thereon or, if such Mortgage or

                                       52

<PAGE>

power of attorney has been submitted for recording but has not been returned
from the applicable public recording office, has been lost or is not otherwise
available, a copy of such Mortgage or power of attorney, as the case may be,
certified to be a true and complete copy of the original submitted for
recording;

                           (iii)    an original Assignment of Mortgage, in form
and substance acceptable for recording. The Mortgage shall be assigned either
(A) in blank or (B) to "U.S. Bank National Association, as Trustee under the
Pooling and Servicing Agreement, dated as of June 1, 2003, among Credit-Based
Asset Servicing and Securitization LLC, Merrill Lynch Mortgage Investors, Inc.,
Litton Loan Servicing LP and U.S. Bank National Association, C-BASS Mortgage
Loan Asset-Backed Certificates, Series 2003-CB3, without recourse";

                           (iv)     an original or copy of any intervening
assignment of Mortgage showing a complete chain of assignments;

                           (v)      the original or a certified copy of lender's
title insurance policy except with respect to those Mortgage Loans identified on
Exhibit U hereto;

                           (vi)     the original or copies of each assumption,
modification, written assurance or substitution agreement, if any;

                           (vii)    for each FHA Loan, the original Mortgage
Insurance Certificate; and

                           (viii)   for each VA Loan, the original Loan Guaranty
Certificate.

         The Trustee agrees to execute and deliver (or cause the Custodian to
execute and deliver) to the Depositor on or prior to the Closing Date an
acknowledgment of receipt of the original Mortgage Note (with any exceptions
noted), substantially in the form attached as Exhibit F-3 hereto.

         The Servicer shall within 90 days following the Closing Date, with
respect to each Mortgage Loan that is subject to the provisions of the
Homeownership and Equity Protection Act of 1994, place or cause to be placed a
legend on the original Mortgage Note indicating the satisfaction of the
provisions of such Act and the regulations issued thereunder, to the effect that
the Mortgage Loan is subject to special truth in lending rules.

         The Servicer shall promptly (and in no event later than thirty days
following the Closing Date) submit or cause to be submitted for recording, at
the Servicer's expense and at no expense to the Trust Fund or the Trustee, in
the appropriate public office for real property records, each Assignment
referred to in Sections 2.01(iii) and (iv) above. In the event that any such
Assignment is lost or returned unrecorded because of a defect therein, the
Seller shall promptly prepare or cause to be prepared a substitute Assignment or
cure or cause to be cured such defect, as the case may be, and thereafter cause
each such Assignment to be duly recorded.

         If any of the documents referred to in Section 2.01(ii), (iii) or (iv)
above has as of the Closing Date been submitted for recording but either (x) has
not been returned from the applicable public recording office or (y) has been
lost or such public recording office has

                                       53

<PAGE>

retained the original of such document, the obligations of the Seller to deliver
such documents shall be deemed to be satisfied upon (1) delivery to the Trustee
or the Custodian no later than the Closing Date, of a copy of each such document
certified by the Seller in the case of (x) above or the applicable public
recording office in the case of (y) above to be a true and complete copy of the
original that was submitted for recording and (2) if such copy is certified by
the Seller, delivery to the Trustee or the Custodian, promptly upon receipt
thereof of either the original or a copy of such document certified by the
applicable public recording office to be a true and complete copy of the
original. The Seller shall deliver or cause to be delivered to the Trustee or
the Custodian promptly upon receipt thereof any other documents constituting a
part of a Mortgage File received with respect to any Mortgage Loan, including,
but not limited to, any original documents evidencing an assumption or
modification of any Mortgage Loan.

         Upon discovery or receipt of notice of any materially defective
document in, or that a document is missing from, a Mortgage File, the Seller
shall have 120 days to cure such defect or 150 days following the Closing Date,
in the case of missing Mortgages or Assignments or deliver such missing document
to the Trustee or the Custodian. If the Seller does not cure such defect or
deliver such missing document within such time period, the Seller shall either
repurchase or substitute for such Mortgage Loan in accordance with Section 2.03.

         The Seller shall cause the Assignments of Mortgage which were delivered
in blank to be completed and shall cause all Assignments referred to in Section
2.01(iii) hereof and, to the extent necessary, in Section 2.01(iv) hereof to be
recorded; provided, however, the Seller need not cause to be recorded any
Assignment which relates to a Mortgage Loan in any jurisdiction under the laws
of which, as evidenced by an Opinion of Counsel delivered by the Seller to the
Trustee and the Rating Agencies, the recordation of such assignment is not
necessary to protect the Trustee's interest, on behalf of the Trust, in the
related Mortgage Loan. The Seller shall be required to deliver such assignments
for recording within 30 days of the Closing Date. The Seller shall furnish the
Trustee, or its designated agent, with a copy of each assignment of Mortgage
submitted for recording. In the event that any such Assignment is lost or
returned unrecorded because of a defect therein, the Seller shall promptly have
a substitute Assignment prepared or have such defect cured, as the case may be,
and thereafter cause each such Assignment to be duly recorded. In the event that
any Mortgage Note is endorsed in blank as of the Closing Date, promptly
following the Closing Date the Seller shall cause to be completed such
endorsements "Pay to the order of U.S. Bank National Association, as Trustee
under the Pooling and Servicing Agreement, dated as of June 1, 2003, among
Credit-Based Asset Servicing and Securitization LLC, Merrill Lynch Mortgage
Investors, Inc., Litton Loan Servicing LP and U.S. Bank National Association,
C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3, without
recourse."

         The Depositor herewith delivers to the Trustee executed copies of the
Mortgage Loan Purchase Agreement.

         Section 2.02 Acceptance by Trustee.

         The Trustee acknowledges the receipt of, subject to the provisions of
Section 2.01 and subject to the review described below and any exceptions noted
on the exception report described in the next paragraph below, the documents
referred to in Section 2.01 above and all

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other assets included in the definition of "Trust Fund" and declares that it
holds and will hold such documents and the other documents delivered to it
constituting a Mortgage File, and that it holds or will hold all such assets and
such other assets included in the definition of "Trust Fund" in trust for the
exclusive use and benefit of all present and future Certificateholders.

         The Trustee agrees, for the benefit of the Certificateholders, to
review (or cause the Custodian to review) each Mortgage File within 60 days
after the Closing Date (or, with respect to any document delivered after the
Startup Day, within 60 days of receipt and with respect to any Qualified
Substitute Mortgage, within 60 days after the assignment thereof) and to certify
(or cause the Custodian to certify) in substantially the form attached hereto as
Exhibit F-1 that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in the exception report annexed thereto as not being covered by such
certification), (i) all documents required to be delivered to it pursuant to
Section 2.01 of this Agreement are in its possession, (ii) such documents have
been reviewed by it and have not been mutilated, damaged or torn and relate to
such Mortgage Loan and (iii) based on its examination and only as to the
foregoing, the information set forth in the Mortgage Loan Schedule that
corresponds to items (1), (2), (3), (5), (13) and (26) (in the case of (26),
only as to whether there is a prepayment penalty) of the Mortgage Loan Schedule
accurately reflects information set forth in the Mortgage File. It is herein
acknowledged that, in conducting such review, the Trustee (or the Custodian, as
applicable) is under no duty or obligation to inspect, review or examine any
such documents, instruments, certificates or other papers to determine that they
are genuine, enforceable, or appropriate for the represented purpose or that
they have actually been recorded or that they are other than what they purport
to be on their face.

         Prior to the first anniversary date of this Agreement the Trustee shall
deliver (or cause the Custodian to deliver) to the Depositor and the Servicer a
final certification in the form annexed hereto as Exhibit F-2 evidencing the
completeness of the Mortgage Files, with any applicable exceptions noted
thereon.

         If in the process of reviewing the Mortgage Files and making or
preparing, as the case may be, the certifications referred to above, the Trustee
(or the Custodian, as applicable) finds any document or documents constituting a
part of a Mortgage File to be missing or defective in any material respect, at
the conclusion of its review the Trustee (upon its notification by the
Custodian) shall so notify the Seller, the Depositor and the Servicer. In
addition, upon the discovery by the Seller, Depositor, the Trustee or the
Servicer (or upon receipt by the Trustee of written notification of such breach)
of a breach of any of the representations and warranties made by the Seller in
the related Mortgage Loan Purchase Agreement in respect of any Mortgage Loan
which materially adversely affects such Mortgage Loan or the interests of the
related Certificateholders in such Mortgage Loan, the party discovering such
breach shall give prompt written notice to the other parties.

         The Depositor and the Trustee intend that the assignment and transfer
herein contemplated constitute a sale of the Mortgage Loans and the Related
Documents, conveying good title thereto free and clear of any liens and
encumbrances, from the Depositor to the Trustee and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have

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granted and does hereby grant to the Trustee, on behalf of the Trust, a first
priority perfected security interest in all of the Depositor's right, title and
interest in and to the Mortgage Loans and the Related Documents, and that this
Agreement shall constitute a security agreement under applicable law.

         Section 2.03 Repurchase or Substitution of Mortgage Loans by the
Seller.

                  (a)      Upon discovery or receipt of written notice of any
materially defective document in, or that a document is missing from, a Mortgage
File or of the breach by the Seller of any representation, warranty or covenant
under the Mortgage Loan Purchase Agreement or in Section 2.04 in respect of any
Mortgage Loan which materially adversely affects the value of such Mortgage Loan
or the interest therein of the Certificateholders, the Trustee (or the
Custodian, as applicable) shall promptly notify the Seller, the Servicer and the
Trustee of such defect, missing document or breach and request that the Seller
deliver such missing document or cure such defect or breach within 120 days or
150 days following the Closing Date, in the case of missing Mortgages or
Assignments from the date the Seller was notified of such missing document,
defect or breach, and if the Seller does not deliver such missing document or
cure such defect or breach in all material respects during such period, the
Trustee shall enforce the Seller's obligation under the Mortgage Loan Purchase
Agreement and cause the Seller to repurchase such Mortgage Loan from the Trust
Fund at the Purchase Price on or prior to the Determination Date following the
expiration of such 120 day period (subject to Section 2.03(e)); provided that,
in connection with any such breach that could not reasonably have been cured
within such 120 day or 150 day period, if the Seller shall have commenced to
cure such breach within such 120 day or 150 day period, the Seller shall be
permitted to proceed thereafter diligently and expeditiously to cure the same
within the additional period provided under the Mortgage Loan Purchase
Agreement. The Purchase Price for the repurchased Mortgage Loan shall be
deposited in the Collection Account, and the Trustee, upon receipt of written
certification from the Servicer of such deposit, shall release to the Seller the
related Mortgage File and shall execute and deliver such instruments of transfer
or assignment, in each case without recourse, as the Seller shall furnish to it
and as shall be necessary to vest in the Seller any Mortgage Loan released
pursuant hereto and the Trustee shall have no further responsibility with regard
to such Mortgage File. In lieu of repurchasing any such Mortgage Loan as
provided above, the Seller may cause such Mortgage Loan to be removed from the
Trust Fund (in which case it shall become a Defective Mortgage Loan) and
substitute one or more Eligible Substitute Mortgage Loans in the manner and
subject to the limitations set forth in Section 2.03(d). In addition to the
foregoing, in the case of a breach of the Seller's representation set forth in
Section 3.01(f) of the Mortgage Loan Purchase Agreement, the Seller shall
reimburse the Trust for all costs or damages incurred by the Trust as a result
of the violation of such law (such amount, the "Reimbursement Amount"). The
Reimbursement Amount shall be delivered to the Servicer for deposit into the
Collection Account within 10 days from the date the Seller was notified by the
Trustee of the amount of such costs and damages. It is understood and agreed
that the obligation of the Seller to pay the Reimbursement Amount and to either
cure or repurchase (or substitute for) any Mortgage Loan as to which a document
is missing, a material defect in a constituent document exists or as to which
such a breach has occurred and is continuing shall constitute the sole remedy
against the Seller respecting such omission, defect or breach available to the
Trustee and the Trustee on behalf of the Certificateholders.

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                  (b)      A Mortgage Loan that has an Arrearage cannot be
substituted for a Mortgage Loan that does not have an Arrearage.

                  (c)      Within 90 days of the earlier of discovery by the
Servicer or receipt of notice by the Servicer of the breach of any
representation, warranty or covenant of the Servicer set forth in Section 2.05
which materially and adversely affects the interests of the Certificateholders
in any Mortgage Loan, the Servicer shall cure such breach in all material
respects.

                  (d)      Any substitution of Eligible Substitute Mortgage
Loans for Defective Mortgage Loans made pursuant to Section 2.03(a) must be
effected prior to the last Business Day that is within two years after the
Closing Date. As to any Defective Mortgage Loan for which the Seller substitutes
a Eligible Substitute Mortgage Loan or Loans, such substitution shall be
effected by the Seller delivering to the Trustee for such Eligible Substitute
Mortgage Loan or Loans, the Mortgage Note, the Mortgage, the Assignment to the
Trustee, and such other documents and agreements, with all necessary
endorsements thereon, as are required by Section 2.01, together with an
Officers' Certificate providing that each such Eligible Substitute Mortgage Loan
satisfies the definition thereof and specifying the Substitution Adjustment
Amount (as described below), if any, in connection with such substitution. The
Trustee shall acknowledge receipt for such Eligible Substitute Mortgage Loan or
Loans and, within ten Business Days thereafter, shall review such documents as
specified in Section 2.02 and deliver (or cause the Custodian to deliver) to the
Servicer, with respect to such Eligible Substitute Mortgage Loan or Loans, a
certification substantially in the form attached hereto as Exhibit F-1, with any
applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee shall deliver (or cause the Custodian to deliver) to
the Servicer a certification substantially in the form of Exhibit F-2 hereto
with respect to such Eligible Substitute Mortgage Loan or Loans, with any
applicable exceptions noted thereon. Monthly Payments due with respect to
Eligible Substitute Mortgage Loans in the month of substitution are not part of
the Trust Fund and will be retained by the Seller. For the month of
substitution, distributions to Certificateholders will reflect the collections
and recoveries in respect of such Defective Mortgage Loan in the Collection
Period preceding the month of substitution and the Depositor or the Seller, as
the case may be, shall thereafter be entitled to retain all amounts subsequently
received in respect of such Defective Mortgage Loan. The Seller shall give or
cause to be given written notice to the Certificateholders that such
substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
the removal of such Defective Mortgage Loan from the terms of this Agreement and
the substitution of the Eligible Substitute Mortgage Loan or Loans and shall
deliver a copy of such amended Mortgage Loan Schedule to the Trustee. Upon such
substitution, such Eligible Substitute Mortgage Loan or Loans shall constitute
part of the Mortgage Pool and shall be subject in all respects to the terms of
this Agreement and, in the case of a substitution effected by the Seller, the
Mortgage Loan Purchase Agreement, including, in the case of a substitution
effected by the Seller all applicable representations and warranties thereof
included in the Mortgage Loan Purchase Agreement and all applicable
representations and warranties thereof set forth in Section 2.04, in each case
as of the date of substitution.

         For any month in which the Seller substitutes one or more Eligible
Substitute Mortgage Loans for one or more Defective Mortgage Loans, the Servicer
will determine the amount (the "Substitution Adjustment Amount"), if any, by
which the aggregate Purchase Price of all such

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<PAGE>

Defective Mortgage Loans exceeds the aggregate, as to each such Eligible
Substitute Mortgage Loan, of the principal balance thereof as of the date of
substitution, together with one month's interest on such principal balance at
the applicable Net Mortgage Interest Rate. On the date of such substitution, the
Seller will deliver or cause to be delivered to the Servicer for deposit in the
Collection Account an amount equal to the Substitution Adjustment Amount, if
any, and the Trustee, upon receipt of the related Eligible Substitute Mortgage
Loan or Loans and certification by the Servicer of such deposit, shall release
to the Seller the related Mortgage File or Files and shall execute and deliver
such instruments of transfer or assignment, in each case without recourse, as
the Seller shall deliver to it and as shall be necessary to vest therein any
Defective Mortgage Loan released pursuant hereto.

         In addition, the Seller shall obtain at its own expense and deliver to
the Trustee an Opinion of Counsel to the effect that such substitution will not
cause (a) any federal tax to be imposed on the Trust Fund, including without
limitation, any federal tax imposed on "prohibited transactions" under Section
860F(a)(l) of the Code or on "contributions after the startup date" under
Section 860G(d)(l) of the Code, or (b) any REMIC formed under this Agreement to
fail to qualify as a REMIC at any time that any Certificate is outstanding. If
such Opinion of Counsel can not be delivered, then such substitution may only be
effected at such time as the required Opinion of Counsel can be given.

                  (e)      Upon discovery by the Seller, the Servicer or the
Trustee that any Mortgage Loan does not constitute a "qualified mortgage" within
the meaning of Section 860G(a)(3) of the Code, the party discovering such fact
shall within two Business Days give written notice thereof to the other parties.
In connection therewith, the Seller shall repurchase or, subject to the
limitations set forth in Section 2.03(d), substitute one or more Eligible
Substitute Mortgage Loans for the affected Mortgage Loan within 90 days of the
earlier of discovery or receipt of such notice with respect to such affected
Mortgage Loan. In addition, upon discovery that a Mortgage Loan is defective in
a manner that would cause it to be a "defective obligation" within the meaning
of Treasury regulations relating to REMICs, the Seller shall cure the defect or
make the required purchase or substitution no later than 90 days after the
discovery of the defect. Any such repurchase or substitution shall be made in
the same manner as set forth in Section 2.03(a), if made by the Seller. The
Trustee shall reconvey to the Seller the Mortgage Loan to be released pursuant
hereto in the same manner, and on the same terms and conditions, as it would a
Mortgage Loan repurchased for breach of a representation or warranty.

         Notwithstanding anything to the contrary contained herein, the parties
hereto acknowledge that the functions of the Trustee with respect to the
custody, acceptance, inspection and release of the Mortgage Files pursuant to
Sections 2.01, 2.02 and 2.03 and preparation and delivery of the certifications
in the form of Exhibit F-1 and Exhibit F-2 shall be performed by the Custodian
pursuant to the terms and conditions of the Custodial Agreement. The fees and
expenses of the Custodian shall be paid by the Servicer.

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         Section 2.04 Representations and Warranties of the Seller with Respect
to the Mortgage Loans.

         The Seller hereby represents and warrants to the Trustee for the
benefit of the Certificateholders that as of the Closing Date or as of such
other date specifically provided herein:

                  (a)      The representations and warranties made by the Seller
pursuant to Section 3.01 of the Mortgage Loan Purchase Agreement are hereby
being made to the Trustee and are true and correct as of the Closing Date.

                  (b)      Any written agreement between the Mortgagor in
respect of a Mortgage Loan and the Servicer modifying such Mortgagor's
obligation to make payments under the Mortgage Loan (such modified Mortgage
Loan, a "Modified Mortgage Loan") involved the application of the Seller's
underwriting standards or some assessment of the Mortgagor's ability to repay
the Modified Mortgage Loan.

         With respect to the representations and warranties set forth in this
Section 2.04 that are made to the best of the Seller's knowledge or as to which
the Seller has no knowledge, if it is discovered by the Depositor, the Seller,
the Servicer or the Trustee that the substance of such representation and
warranty is inaccurate and such inaccuracy materially and adversely affects the
value of the related Mortgage Loan or the interest therein of the
Certificateholders then, notwithstanding the Seller's lack of knowledge with
respect to the substance of such representation and warranty being inaccurate at
the time the representation or warranty was made, such inaccuracy shall be
deemed a breach of the applicable representation or warranty.

         Upon discovery by the Depositor, the Seller, the Servicer or the
Trustee of a breach of any of the representations and warranties contained in
this Section that materially and adversely affects the value of any Mortgage
Loan or the interest therein of the Certificateholders, the party discovering
the breach shall give prompt written notice to the others and in no event later
than two Business Days from the date of such discovery. Within ninety days of
its discovery or its receipt of notice of any such missing or materially
defective documentation or any such breach of a representation or warranty, the
Seller shall promptly deliver such missing document or cure such defect or
breach in all material respects, or in the event such defect or breach cannot be
cured, the Seller shall repurchase the affected Mortgage Loan or cause the
removal of such Mortgage Loan from the Trust Fund and substitute for it one or
more Eligible Substitute Mortgage Loans, in either case, in accordance with
Section 2.03.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.04 shall survive delivery of the Mortgage Files to the
Trustee and shall inure to the benefit of the Certificateholders notwithstanding
any restrictive or qualified endorsement or assignment. It is understood and
agreed that the obligations of the Seller set forth in Section 2.03(a) to cure,
substitute for or repurchase a Mortgage Loan pursuant to the Mortgage Loan
Purchase Agreement and to reimburse the Trust the Reimbursement Amount,
constitute the sole remedies available to the Certificateholders or to the
Trustee on their behalf respecting a breach of the representations and
warranties contained in this Section 2.04.

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         Section 2.05 Representations, Warranties and Covenants of the Servicer.

         The Servicer hereby represents, warrants and covenants to the Trustee,
for the benefit of each of the Trustee and the Certificateholders and to the
Depositor that as of the Closing Date or as of such date specifically provided
herein:

                           (i)      The Servicer is duly organized, validly
existing, and in good standing under the laws of the jurisdiction of its
formation and has all licenses necessary to carry on its business as now being
conducted, except for such licenses, certificates and permits the absence of
which, individually or in the aggregate, would not have a material adverse
effect on the ability of the Servicer to conduct its business as it is presently
conducted, and is licensed, qualified and in good standing in the states where
the Mortgaged Property is located if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by the Servicer
or to ensure the enforceability or validity of each Mortgage Loan; the Servicer
has the power and authority to execute and deliver this Agreement and to perform
in accordance herewith; the execution, delivery and performance of this
Agreement (including all instruments of transfer to be delivered pursuant to
this Agreement) by the Servicer and the consummation of the transactions
contemplated hereby have been duly and validly authorized; this Agreement
evidences the valid, binding and enforceable obligation of the Servicer, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights generally; and all
requisite corporate action has been taken by the Servicer to make this Agreement
valid and binding upon the Servicer in accordance with its terms;

                           (ii)     The consummation of the transactions
contemplated by this Agreement are in the ordinary course of business of the
Servicer and will not result in the breach of any term or provision of the
certificate of formation or the partnership agreement of the Servicer or result
in the breach of any term or provision of, or conflict with or constitute a
default under or result in the acceleration of any obligation under, any
agreement, indenture or loan or credit agreement or other instrument to which
the Servicer or its property is subject, or result in the violation of any law,
rule, regulation, order, judgment or decree to which the Servicer or its
property is subject;

                           (iii)    The Servicer is an approved seller/servicer
of conventional mortgage loans for Fannie Mae, and is an FHA Approved Mortgagee
in good standing to service mortgages, is a VA Approved Lender and has not been
suspended as a mortgagee or servicer by the FHA or VA and has the facilities,
procedures and experienced personnel necessary for the sound servicing of
mortgage loans of the same type as the Mortgage Loans. The Servicer is, and
shall remain for as long as it is servicing the Mortgage Loans hereunder, in
good standing as a FHA Approved Mortgagee and a VA Approved Lender and to
service mortgage loans for HUD, Fannie Mae or Freddie Mac, and no event has
occurred, including but not limited to a change in insurance coverage, which
would make the Servicer unable to comply with HUD, Fannie Mae, Freddie Mac, FHA
or VA eligibility requirements or which would require notification to any of
HUD, Fannie Mae, Freddie Mac, FHA or VA;

                           (iv)     This Agreement, and all documents and
instruments contemplated hereby which are executed and delivered by the
Servicer, constitute and will constitute valid,

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<PAGE>

legal and binding obligations of the Servicer, enforceable in accordance with
their respective terms, except as the enforcement thereof may be limited by
applicable bankruptcy laws and general principles of equity;

                           (v)      The Servicer does not believe, nor does it
have any reason or cause to believe, that it cannot perform each and every
covenant contained in this Agreement;

                           (vi)     There is no action, suit, proceeding or
investigation pending or, to its knowledge, threatened against the Servicer
that, either individually or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of the Servicer, or in any material impairment of the right or ability of
the Servicer to carry on its business substantially as now conducted, or in any
material liability on the part of the Servicer, or that would draw into question
the validity or enforceability of this Agreement or of any action taken or to be
taken in connection with the obligations of the Servicer contemplated herein, or
that would be likely to impair materially the ability of the Servicer to perform
under the terms of this Agreement;

                           (vii)    No consent, approval or order of any court
or governmental agency or body is required for the execution, delivery and
performance by the Servicer of or compliance by the Servicer with this Agreement
or the consummation of the transactions contemplated by this Agreement, except
for such consents, approvals, authorizations and orders, if any, that have been
obtained;

                           (viii)   Neither this Agreement nor any information,
certificate of an officer, statement furnished in writing or report delivered to
the Trustee by the Servicer in connection with the transactions contemplated
hereby contains or will contain any untrue statement of a material fact or omits
or will omit to state a material fact necessary in order to make the statements
contained therein, in light of the circumstances under which they were made, not
misleading; and

                           (ix)     The Servicer has fully furnished in
accordance with the Fair Credit Reporting Act and its implementing regulations,
accurate and complete information on the Mortgagor credit files to Equifax,
Experian and Trans Union Credit Information Company on a monthly basis.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.05 shall survive delivery of the Mortgage
Files to the Trustee and shall inure to the benefit of the Trustee, the
Depositor and the Certificateholders. Upon discovery by any of the Depositor,
the Servicer, the Seller or the Trustee of a breach of any of the foregoing
representations, warranties and covenants which materially and adversely affects
the value of any Mortgage Loan or the interests therein of the
Certificateholders, the party discovering such breach shall give prompt written
notice (but in no event later than two Business Days following such discovery)
to the other parties hereto.

         Section 2.06 Representations and Warranties of the Depositor.

         The Depositor represents and warrants to the Trust and the Trustee on
behalf of the Certificateholders as follows:

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                           (i)      This agreement constitutes a legal, valid
and binding obligation of the Depositor, enforceable against the Depositor in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect affecting the enforcement of creditors' rights in general
and except as such enforceability may be limited by general principles of equity
(whether considered in a proceeding at law or in equity);

                           (ii)     Immediately prior to the sale and assignment
by the Depositor to the Trustee on behalf of the Trust of each Mortgage Loan,
the Depositor had good and marketable title to each Mortgage Loan (insofar as
such title was conveyed to it by the Seller) subject to no prior lien, claim,
participation interest, mortgage, security interest, pledge, charge or other
encumbrance or other interest of any nature;

                           (iii)    As of the Closing Date, the Depositor has
transferred all right, title interest in the Mortgage Loans to the Trustee on
behalf of the Trust;

                           (iv)     The Depositor has not transferred the
Mortgage Loans to the Trustee on behalf of the Trust with any intent to hinder,
delay or defraud any of its creditors;

                           (v)      The Depositor has been duly incorporated and
is validly existing as a corporation in good standing under the laws of the
State of Delaware, with full corporate power and authority to own its assets and
conduct its business as presently being conducted;

                           (vi)     The Depositor is not in violation of its
certificate of incorporation or by-laws or in default in the performance or
observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, loan agreement, note, lease or
other instrument to which the Depositor is a party or by which it or its
properties may be bound, which default might result in any material adverse
changes in the financial condition, earnings, affairs or business of the
Depositor or which might materially and adversely affect the properties or
assets, taken as a whole, of the Depositor;

                           (vii)    The execution, delivery and performance of
this Agreement by the Depositor, and the consummation of the transactions
contemplated thereby, do not and will not result in a material breach or
violation of any of the terms or provisions of, or, to the knowledge of the
Depositor, constitute a default under, any indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which the Depositor is a
party or by which the Depositor is bound or to which any of the property or
assets of the Depositor is subject, nor will such actions result in any
violation of the provisions of the certificate of incorporation or by-laws of
the Depositor or, to the best of the Depositor's knowledge without independent
investigation, any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Depositor or any of its
properties or assets (except for such conflicts, breaches, violations and
defaults as would not have a material adverse effect on the ability of the
Depositor to perform its obligations under this Agreement);

                           (viii)   To the best of the Depositor's knowledge
without any independent investigation, no consent, approval, authorization,
order, registration or qualification of or with any court or governmental agency
or body of the United States or any other jurisdiction is

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required for the issuance of the Certificates, or the consummation by the
Depositor of the other transactions contemplated by this Agreement, except such
consents, approvals, authorizations, registrations or qualifications as (a) may
be required under State securities or Blue Sky laws, (b) have been previously
obtained or (c) the failure of which to obtain would not have a material adverse
effect on the performance by the Depositor of its obligations under, or the
validity or enforceability of, this Agreement; and

                           (ix)     There are no actions, proceedings or
investigations pending before or, to the Depositor's knowledge, threatened by
any court, administrative agency or other tribunal to which the Depositor is a
party or of which any of its properties is the subject: (a) which if determined
adversely to the Depositor would have a material adverse effect on the business,
results of operations or financial condition of the Depositor; (b) asserting the
invalidity of this Agreement or the Certificates; (c) seeking to prevent the
issuance of the Certificates or the consummation by the Depositor of any of the
transactions contemplated by this Agreement, as the case may be; (d) which might
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, this Agreement.

         Section 2.07 Issuance of Certificates and the Uncertificated Regular
Interests.

         The Trustee acknowledges the assignment to it of the Mortgage Loans and
the delivery to it (or the Custodian, as bailee and Custodian of the Trustee) of
the Mortgage Files, subject to the provisions of Sections 2.01 and 2.02, and the
Trustee acknowledges the assignment to it of all other assets included in the
Trust Fund, receipt of which is hereby acknowledged. Concurrently with such
assignment and delivery and in exchange therefor, the Trustee, pursuant to the
Written Order to Authenticate executed by an officer of the Depositor, has
executed, and the Certificate Registrar has authenticated and delivered to or
upon the order of the Depositor, the Certificates (other than the Class X and
Residual Certificates) in minimum dollar denominations or $25,000 and integral
dollar multiples of $1 in excess. The Class X and Class R Certificates are
issuable only in minimum Percentage Interests of 10%. The Class R-X Certificates
are issuable only in minimum Percentage Interests of 50%. The Trustee
acknowledges the issuance of the uncertificated REMIC 1 Regular Interests, the
uncertificated REMIC 2 Regular Interests, the uncertificated REMIC 3 Regular
Interests, the uncertificated REMIC 4 Regular Interests, the uncertificated
REMIC 5 Regular Interests, the uncertificated REMIC 6 Regular Interests, the
uncertificated REMIC 7 Regular Interests and the uncertificated REMIC 8 Regular
Interests and declares that it holds the REMIC 1 Regular Interests as assets of
REMIC 2, the REMIC 2 Regular Interests (other than the REMIC 2 IO Interests) as
assets of REMIC 3, the REMIC 3 Regular Interests and the REMIC 2 IO Interests as
assets of REMIC 4, the REMIC 4 X/N Interest as the asset of REMIC 5, the REMIC 4
B-1 Interest as the asset of REMIC 6, the REMIC 4 B-2 Interest as the asset of
REMIC 7 and the REMIC 4 B-3 Interest as the asset of REMIC 8. The Trustee
acknowledges the issuance of the uncertificated REMIC 5 X/N Interest, beneficial
ownership of which is evidenced by the Class X/N Interest, and declares that it
holds the same as assets of the Grantor Trust on behalf of the Holders of the
Class N and Class X Certificates. The interests evidenced by the Certificates
constitute the entire beneficial ownership interest in the Trust Fund.

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         Section 2.08 Representations and Warranties of the Seller.

         The Seller hereby represents and warrants to the Trust and the Trustee
on behalf of the Certificateholders that as of the Closing Date or as of such
date specifically provided herein:

                           (i)      The Seller is duly organized, validly
existing and in good standing as a limited liability company under the laws of
the State of Delaware and has the power and authority to own its assets and to
transact the business in which it is currently engaged. The Seller is duly
qualified to do business and is in good standing in each jurisdiction in which
the character of the business transacted by it or properties owned or leased by
it requires such qualification and in which the failure to so qualify would have
a material adverse effect on (a) its business, properties, assets or condition
(financial or other), (b) the performance of its obligations under this
Agreement, (c) the value or marketability of the Mortgage Loans, or (d) its
ability to foreclose on the related Mortgaged Properties.

                           (ii)     The Seller has the power and authority to
make, execute, deliver and perform this Agreement and to consummate all of the
transactions contemplated hereunder and has taken all necessary action to
authorize the execution, delivery and performance of this Agreement. When
executed and delivered, this Agreement will constitute the Seller's legal, valid
and binding obligations enforceable in accordance with its terms, except as
enforcement of such terms may be limited by (1) bankruptcy, insolvency,
reorganization, receivership, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by the availability of equitable
remedies, (2) general equity principles (regardless of whether such enforcement
is considered in a proceeding in equity or at law) or (3) public policy
considerations underlying the securities laws, to the extent that such policy
considerations limit the enforceability of the provisions of this Agreement
which purport to provide indemnification from securities laws liabilities.

                           (iii)    The Seller holds all necessary licenses,
certificates and permits from all governmental authorities necessary for
conducting its business as it is presently conducted, except for such licenses,
certificates and permits the absence of which, individually or in the aggregate,
would not have a material adverse effect on the ability of the Seller to conduct
its business as it is presently conducted. It is not required to obtain the
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any governmental authority, bureau or
agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement, except for such consents, licenses, approvals
or authorizations, or registrations or declarations as shall have been obtained
or filed, as the case may be, prior to the Closing Date.

                           (iv)     The execution, delivery and performance of
this Agreement by the Seller will not conflict with or result in a breach of, or
constitute a default under, any provision of any existing law or regulation or
any order or decree of any court applicable to the Seller or any of its
properties or any provision of its Limited Liability Company Agreement, or
constitute a material breach of, or result in the creation or imposition of any
lien, charge or encumbrance upon any of its properties pursuant to any mortgage,
indenture, contract or other agreement to which it is a party or by which it may
be bound.

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                           (v)      No certificate of an officer, written
statement or report delivered pursuant to the terms hereof by the Seller
contains any untrue statement of a material fact or omits to state any material
fact necessary to make the certificate, statement or report not misleading.

                           (vi)     The transactions contemplated by this
Agreement are in the ordinary course of the Seller's business.

                           (vii)    The Seller is not insolvent, nor will the
Seller be made insolvent by the transfer of the Mortgage Loans to the Depositor,
nor is the Seller aware of any pending insolvency.

                           (viii)   The Seller is not in violation of, and the
execution and delivery of this Agreement by it and its performance and
compliance with the terms of this Agreement will not constitute a violation with
respect to any order or decree of any court, or any order or regulation of any
federal, state, municipal or governmental agency having jurisdiction, which
violation would materially and adversely affect the Seller's condition
(financial or otherwise) or operations or any of the Seller's properties, or
materially and adversely affect the performance of any of its duties hereunder.

                           (ix)     There are no actions or proceedings against,
or investigations of, the Seller pending or, to its knowledge, threatened,
before any court, administrative agency or other tribunal (i) that, if
determined adversely, would prohibit the Seller from entering into this
Agreement, (ii) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (iii) that, if determined adversely, would
prohibit or materially and adversely affect the Seller's performance of any of
its respective obligations under, or the validity or enforceability of, this
Agreement.

                           (x)      The Seller did not transfer the Mortgage
Loans to the Depositor with any intent to hinder, delay or defraud any of its
creditors.

                           (xi)     The Seller acquired title to the Mortgage
Loans in good faith, without notice of any adverse claims.

                           (xii)    The transfer, assignment and conveyance of
the Mortgage Notes and the Mortgages by the Seller to the Depositor are not
subject to the bulk transfer laws or any similar statutory provisions in effect
in any applicable jurisdiction.

         Section 2.09 Covenants of the Seller.

                  (a)      The Seller hereby covenants that except for the
transfer hereunder, the Seller will not sell, pledge, assign or transfer to any
other Person, or grant, create, incur, assume or suffer to exist any lien on any
Mortgage Loan, or any interest therein; the Seller will notify the Trustee, as
assignee of the Depositor, of the existence of any lien on any Mortgage Loan
immediately upon discovery thereof, and the Seller will defend the right, title
and interest of the Trust, as assignee of the Depositor, in, to and under the
Mortgage Loans, against all claims of third parties claiming through or under
the Seller; provided, however, that nothing in this Section 2.09 shall prevent
or be deemed to prohibit the Seller from suffering to exist upon any of the

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Mortgage Loans any liens for municipal or other local taxes and other
governmental charges if such taxes or governmental charges shall not at the time
be due and payable or if the Seller shall currently be contesting the validity
thereof in good faith by appropriate proceedings and shall have set aside on its
books adequate reserves with respect thereto.

                  (b)      The Seller hereby covenants that neither it nor any
Affiliate of the Seller will directly solicit any Mortgagor hereunder to
refinance the related Mortgage Loan. For the purposes of the foregoing, neither
the Seller nor any Affiliate of the Seller shall be deemed to directly solicit
any Mortgagor if the Seller responds to a request from a Mortgagor regarding a
refinancing or if the Mortgagor receives marketing materials which are generally
disseminated.

                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF THE TRUST FUND

         Section 3.01 Servicer to Act as Servicer.

         The Servicer, as independent contract servicer, shall service and
administer the Mortgage Loans in accordance with this Agreement and the normal
and usual standards of practice of prudent mortgage servicers, and shall have
full power and authority, acting alone, to do or cause to be done any and all
things in connection with such servicing and administration which the Servicer
may deem necessary or desirable and consistent with the terms of this Agreement
including, in the case of FHA Loans and VA Loans, taking all actions that a
mortgagee is permitted or required to take by the FHA or the VA, as the case may
be (the "Servicing Standards").

         Consistent with the terms of this Agreement, the Servicer may waive,
modify or vary any term of any Mortgage Loan or consent to the postponement of
strict compliance with any such term or in any manner grant indulgence to any
Mortgagor if in the Servicer's reasonable and prudent determination such waiver,
modification, postponement or indulgence is not materially adverse to the
Certificateholders; provided, however, that the Servicer shall not make future
advances and (unless the Mortgagor is in default with respect to the Mortgage
Loan or such default is, in the judgment of the Servicer, reasonably
foreseeable) the Servicer shall not permit any modification with respect to any
Mortgage Loan that would (i) change the Mortgage Interest Rate, defer or forgive
the payment thereof of any principal or interest payments, reduce the
outstanding principal amount (except for actual payments of principal) or extend
the final maturity date with respect to such Mortgage Loan, (ii) in the case of
FHA Loans and VA Loans, affect the FHA Insurance Contract or VA Guaranty
Agreement, as the case may be, with respect to such Mortgage Loan, (iii) affect
adversely the status of any REMIC constituting part of the Trust Fund as a REMIC
or (iv) cause any REMIC to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions. Notwithstanding the foregoing,
the Servicer shall not permit any modification with respect to any Mortgage Loan
that would both (x) effect an exchange or reissuance of such Mortgage Loan under
Section 1.860G-2(b) of the Treasury Regulations and (y) cause any REMIC
constituting part of the Trust Fund to fail to qualify as a REMIC under the Code
or the imposition of any tax on "prohibited transactions" or "contributions"
after the Startup Day under the REMIC Provisions. Without

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limiting the generality of the foregoing, the Servicer shall continue, and is
hereby authorized and empowered to execute and deliver on behalf of itself, and
the Trustee, all instruments of satisfaction or cancellation, or of partial or
full release, discharge and all other comparable instruments, with respect to
the Mortgage Loans and with respect to the Mortgaged Property. The Servicer
shall make all required Servicing Advances and shall service and administer the
Mortgage Loans in accordance with Applicable Regulations, and shall provide to
the Mortgagors any reports required to be provided to them thereby. If
reasonably required by the Servicer, the Trustee shall furnish the Servicer with
any powers of attorney and other documents necessary or appropriate to enable
the Servicer to carry out its servicing and administrative duties under this
Agreement.

         In servicing and administering FHA Loans and VA Loans, the Servicer
shall comply strictly with the National Housing Act, the FHA Regulations, the
Servicemen's Readjustment Act and the VA Regulations and administrative
guidelines issued thereunder or pursuant thereto (insofar as the same apply to
any Mortgage Loan) and, to the extent permitted hereunder, promptly discharge
all of the obligations of the mortgagee thereunder and under each Mortgage
including the timely giving of notices, the essence hereof being that the full
benefits of each FHA Insurance Contract and VA Guaranty Agreement inure to the
Trustee, on behalf of the Certificateholders.

         In servicing and administering the Mortgage Loans, the Servicer shall
employ procedures including collection procedures and exercise the same care
that it customarily employs and exercises in servicing and administering
mortgage loans for its own account giving due consideration to accepted mortgage
servicing practices of prudent lending institutions, the FHA Insurance Contracts
and the VA Guaranty Agreements, where applicable, and the Certificateholders'
reliance on the Servicer.

         The Servicer shall give prompt notice to the Trustee of any action, of
which the Servicer has actual knowledge, which action purports to (i) assert a
claim against the Trust Fund or (ii) assert jurisdiction over the Trust Fund.

         Notwithstanding anything in this Agreement to the contrary, in the
event of a Principal Prepayment in full of a Mortgage Loan, the Servicer may not
waive any prepayment penalty or portion thereof required by the terms of the
related Mortgage Note unless (i) the Servicer determines that such waiver would
maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking into
account the value of such prepayment penalty, or (ii) (A) the enforceability
thereof is limited (1) by bankruptcy, insolvency, moratorium, receivership, or
other similar law relating to creditors' rights generally or (2) due to
acceleration in connection with a foreclosure or other involuntary payment, or
(B) the enforceability is otherwise limited or prohibited by applicable law. In
the event of a Principal Prepayment in full with respect to any Mortgage Loan,
the Servicer shall deliver to the Trustee an Officer's Certificate substantially
in the form of Exhibit Q no later than the third Business Day following the
immediately succeeding Determination Date with a copy to the Class X
Certificateholder. If the Servicer has waived or does not collect all or a
portion of a prepayment penalty relating to a Principal Prepayment in full due
to any action or omission of the Servicer, other than as provided above, the
Servicer shall, within 90 days of the date on which the Principal Prepayment in
full is remitted to the Trustee, deliver to the Trustee the amount of such
prepayment penalty (or such portion thereof as had

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been waived for deposit) into the Distribution Account for distribution in
accordance with the terms of this Agreement.

         The Trustee shall prepare and deliver to the Depositor and the owner of
the Class N and Class X Certificates, on a monthly basis, a statement setting
forth the amounts received with respect to prepayment penalties.

         Section 3.02 Collection of Mortgage Loan Payments.

         Continuously from the date hereof until the principal and interest on
all Mortgage Loans are paid in full, the Servicer will diligently collect all
payments due under each Mortgage Loan when the same shall become due and payable
and shall, to the extent such procedures shall be consistent with this Agreement
and the terms and provisions of any related Primary Insurance Policy and
Applicable Regulations, follow such collection procedures as it follows with
respect to mortgage loans comparable to the Mortgage Loans and held for its own
account. Further, the Servicer will take special care in ascertaining and
estimating annual ground rents, taxes, assessments, water rates, fire and hazard
insurance premiums, mortgage insurance premiums, and all other charges that, as
provided in the Mortgage, will become due and payable to that end that the
installments payable by the Mortgagors will be sufficient to pay such charges as
and when they become due and payable.

         Section 3.03 Realization Upon Defaulted Mortgage Loans.

         In the event that any payment due under any Conventional Mortgage Loan
is not paid when the same becomes due and payable, or in the event the Mortgagor
fails to perform any other covenant or obligation under the Mortgage Loan and
such failure continues beyond any applicable grace period, the Servicer shall
take such action as it shall deem to be in the best interest of the
Certificateholders. In the event that any payment due under any FHA Loan becomes
delinquent, the Servicer shall take all such actions as are in the best
interests of the Certificateholders and permitted under any applicable FHA loss
mitigation proceedings, including, but not limited to, requesting the FHA to
accept an assignment of such FHA Loan, and, upon the Servicer's determination
that foreclosure is in the best interest of the Certificateholders, commencing
foreclosure proceedings. With respect to each VA Loan, the Servicer shall
diligently seek to mitigate losses by utilizing all remedies available in the VA
Regulations. With respect to any defaulted Mortgage Loan, the Servicer shall
have the right to review the status of the related forbearance plan and, subject
to the second paragraph of Section 3.01, may modify such forbearance plan;
including, extending the Mortgage Loan repayment date for a period of one year
or reducing the Loan Rate up to 50 basis points.

         In connection with a foreclosure or other conversion, the Servicer
shall exercise such rights and powers vested in it hereunder and use the same
degree of care and skill in its exercise as prudent mortgage servicers would
exercise or use under the circumstances in the conduct of their own affairs and
consistent with Applicable Regulations and the servicing standards set forth in
the Fannie Mae Guide, including, without limitation, advancing funds for the
payment of taxes and insurance premiums with respect to first lien Mortgage
Loans.

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         Notwithstanding the foregoing provisions of this Section 3.03, with
respect to any Mortgage Loan as to which the Servicer has received actual notice
of, or has actual knowledge of, the presence of any toxic or hazardous substance
on the related Mortgaged Property, the Servicer shall not either (i) obtain
title to such Mortgaged Property as a result of or in lieu of foreclosure or
otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property if, as a result of any such action, the
Trust Fund would be considered to hold title to, to be a mortgagee-in-possession
of, or to be an owner or operator of such Mortgaged Property within the meaning
of the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended from time to time, or any comparable law, unless the Servicer
has also previously determined, based on its reasonable judgment and a prudent
report prepared by a Person who regularly conducts environmental audits using
customary industry standards, that:

         A.       such Mortgaged Property is in compliance with applicable
environmental laws or, if not, that it would be in the best economic interest of
the Certificateholders to take such actions as are necessary to bring the
Mortgaged Property into compliance therewith; and

         B.       there are no circumstances present at such Mortgaged Property
relating to the use, management or disposal of any hazardous substances,
hazardous materials, hazardous wastes, or petroleum-based materials for which
investigation, testing, monitoring, containment, clean-up or remediation could
be required under any federal, state or local law or regulation, or that if any
such materials are present for which such action could be required, that it
would be in the best economic interest of the Certificateholders to take such
actions with respect to the affected Mortgaged Property.

         The cost of the environmental audit report contemplated by this Section
3.03 shall be advanced by the Servicer, subject to the Servicer's right to be
reimbursed therefor from the Collection Account as provided in Section 3.05(ii).

         If the Servicer determines, as described above, that it is in the best
economic interest of the Certificateholders to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials, hazardous
wastes, or petroleum-based materials affecting any such Mortgaged Property, then
the Servicer shall take such action as it deems to be in the best economic
interest of the Certificateholders. The cost of any such compliance,
containment, cleanup or remediation shall be advanced by the Servicer, subject
to the Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.05(ii).

         Section 3.04 Collection Account and Distribution Account.

                  (a)      The Servicer shall segregate and hold all funds
collected and received pursuant to each Mortgage Loan separate and apart from
any of its own funds and general assets and shall establish and maintain one or
more Collection Accounts. Each Collection Account shall be an Eligible Account.

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         The Servicer shall deposit in the Collection Account on a daily basis
within two Business Days of receipt, and retain therein, the following payments
and collections received or made by it after the Cut-off Date with respect to
the Mortgage Loans:

                           (i)      all payments on account of principal,
including Principal Prepayments, on the Mortgage Loans;

                           (ii)     all payments on account of interest on the
Mortgage Loans adjusted to the Mortgage Interest Rate less the Servicing Fee
Rate;

                           (iii)    all proceeds from a Cash Liquidation;

                           (iv)     all Insurance Proceeds including amounts
required to be deposited pursuant to Section 3.10, other than proceeds to be
held in the Escrow Account and applied to the restoration or repair of the
Mortgaged Property or released to the Mortgagor in accordance with the
Servicer's normal servicing procedures, the loan documents or applicable law;

                           (v)      all Condemnation Proceeds affecting any
Mortgaged Property which are not released to the Mortgagor in accordance with
the Servicer's normal servicing procedures, the loan documents or applicable
law; and

                           (vi)     any amounts required to be deposited by the
Servicer in connection with any REO Property pursuant to Section 3.13.

         Any interest paid on funds deposited in the Collection Account, subject
to Section 3.25, shall accrue to the benefit of the Servicer and the Servicer
shall be entitled to retain and withdraw such interest from the Collection
Account pursuant to Section 3.05(v). The foregoing requirements for deposit from
the Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, payments in the nature of late
payment charges, prepayment charges that are not prepayment penalties, and
assumption fees need not be deposited by the Servicer in the Collection Account.

                  (b)      On behalf of the Trust Fund, the Trustee shall
establish and maintain one or more accounts (such account or accounts, the
"Distribution Account"), held in trust for the benefit of the
Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to
the Trustee in immediately available funds for deposit in the Distribution
Account by the close of business New York time on the Servicer Remittance Date,
that portion of the Available Funds (calculated without regard to the references
in the definition thereof to amounts that may be deposited to the Distribution
Account from a different source as provided herein) then on deposit in the
Collection Account. Amounts in the Distribution Account shall be deemed to be
held on behalf of the related REMICs and the Grantor Trust in accordance with
the REMIC distributions set forth in Section 4.08.

                  (c)      Funds in the Collection Account and the Distribution
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.25. The Servicer shall give notice to the
Trustee certifying the location of the Collection Account maintained by it when
established and prior to any change thereof. The Trustee shall give notice

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to the Servicer and the Depositor of the location of the Distribution Account
when established and prior to any change thereof.

                  (d)      In the event the Servicer shall deliver to the
Trustee for deposit in the Distribution Account any amount not required to be
deposited therein, it may at any time request that the Trustee withdraw such
amount from the Distribution Account and remit to the Servicer any such amount,
any provision herein to the contrary notwithstanding. In addition, the Servicer
shall deliver to the Trustee from time to time for deposit, and the Trustee
shall so deposit, in the Distribution Account in respect of REMIC 1:

                           (i)      any Advances, as required pursuant to
Section 4.07;

                           (ii)     any Stayed Funds, as soon as permitted by
the federal bankruptcy court having jurisdiction in such matters;

                           (iii)    any prepayment penalties or amounts in
connection with the waiver of such prepayment penalties, in each case required
to be deposited pursuant to Section 3.01;

                           (iv)     any amounts required to be deposited in the
Distribution Account pursuant to Sections 2.03, 3.04, 3.15, 3.16, 3.23 or 4.07;
and

                           (v)      any amounts required to be deposited by the
Servicer pursuant to Section 3.11 in connection with the deductible clause in
any blanket hazard insurance policy, such deposit being made from the Servicer's
own funds, without reimbursement therefor.

                  (e)      Promptly upon receipt of any Stayed Funds, whether
from the Servicer, a trustee in bankruptcy, or federal bankruptcy court or other
source, the Trustee shall notify the Servicer of such receipt and deposit such
funds in the Distribution Account, subject to withdrawal thereof as permitted
hereunder.

         Section 3.05 Permitted Withdrawals From the Collection Account.

         The Servicer may, from time to time, withdraw from the Collection
Account for the following purposes:

                           (i)      to remit to the Trustee for deposit in the
Distribution Account the amounts required to be so remitted pursuant to Section
3.04(b) or permitted to be so remitted pursuant to the first sentence of Section
3.04(d) or clause (i) of first sentence of the second paragraph of Section
4.07(b);

                           (ii)     to reimburse itself for Advances and
Servicing Advances; the Servicer's right to reimburse itself pursuant to this
subclause (ii) being limited to amounts received on the related Mortgage Loan
which represent payments of (a) principal and/or interest respecting which any
such Advance was made or (b) Condemnation Proceeds, Insurance Proceeds or
Liquidation Proceeds respecting which any such Servicing Advance was made or
from amounts held from time to time in the Collection Account to the extent such
amounts are not then required to be distributed;

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                           (iii)    to reimburse itself for unreimbursed
Servicing Advances, any unpaid Servicing Fees and for unreimbursed Advances to
the extent that such amounts are deemed to be Nonrecoverable Advances, and to
reimburse itself for such amounts to the extent that such amounts are
nonrecoverable from the disposition of REO Property pursuant to Section 3.03 or
Section 3.13 hereof;

                           (iv)     to reimburse itself for any amounts paid
pursuant to Section 3.03 (and not otherwise previously reimbursed);

                           (v)      to pay to itself as servicing compensation
(a) any interest earned on funds in the Collection Account (all such interest to
be withdrawn monthly not later than each Servicer Remittance Date) and (b) the
Servicing Fee from that portion of any payment or recovery as to interest to a
particular Mortgage Loan to the extent not retained pursuant to Section
3.04(ii);

                           (vi)     to pay or reimburse itself for any amounts
payable or paid pursuant to Section 3.26 or Section 6.03 (and not otherwise
previously reimbursed) and to reimburse itself as set forth in Section 9.01(c);
and

                           (vii)    to clear and terminate the Collection
Account upon the termination of this Agreement.

         The foregoing requirements for withdrawal from the Collection Account
shall be exclusive. In the event the Servicer shall deposit in the Collection
Account any amount not required to be deposited therein, it may at any time
withdraw such amount from the Collection Account, any provision herein to the
contrary notwithstanding.

         Section 3.06 Establishment of Escrow Account; Deposits in Escrow
Account.

         The Servicer shall segregate and hold all funds collected and received
pursuant to each Mortgage Loan which constitute Escrow Payments separate and
apart from any of its own funds and general assets and shall establish and
maintain one or more Escrow Accounts, in the form of time deposit or demand
accounts. A copy of such letter agreement shall be furnished to the Trustee upon
request. The Escrow Account shall be an Eligible Account.

         The Servicer shall deposit in the Escrow Account on a daily basis
within two Business Days of receipt, and retain therein, (i) all Escrow Payments
collected on account of the Mortgage Loans, for the purpose of effecting timely
payment of any such items as required under the terms of this Agreement, and
(ii) all Insurance Proceeds which are to be applied to the restoration or repair
of any Mortgaged Property. The Servicer shall make withdrawals therefrom only to
effect such payments as are required under this Agreement, and for such other
purposes as shall be set forth in, or in accordance with, Section 3.07. The
Servicer shall be entitled to retain any interest paid on funds deposited in the
Escrow Account by the depository institution other than interest on escrowed
funds required by law to be paid to the Mortgagor and, to the extent required by
the related Mortgage Loan or Applicable Regulations, the Servicer shall pay
interest on escrowed funds to the Mortgagor notwithstanding that the Escrow
Account is non-interest bearing or that interest paid thereon is insufficient
for such purposes.

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         Section 3.07 Permitted Withdrawals From Escrow Account.

         Withdrawals from the Escrow Account may be made by the Servicer (i) to
effect timely payments of ground rents, taxes, assessments, water rates, fire,
flood and hazard insurance premiums, Primary Insurance Policy premiums, if
applicable, and comparable items, (ii) to reimburse the Servicer for any
Servicing Advance made by the Servicer with respect to a related Mortgage Loan
but only from amounts received on the related Mortgage Loan which represent late
payments or Late Collections of Escrow Payments thereunder, (iii) to refund to
the Mortgagor any funds as may be determined to be overages, (iv) for transfer
to the Collection Account in accordance with the terms of this Agreement, (v)
for application to restoration or repair of the Mortgaged Property, (vi) to pay
to the Servicer, or to the Mortgagor to the extent required by the related
Mortgage Loan or Applicable Regulations, any interest paid on the funds
deposited in the Escrow Account, (vii) to clear and terminate the Escrow Account
on the termination of this Agreement, (viii) to transfer to the Collection
Account any insurance proceeds, or (ix) in the case of FHA Loans and VA Loans,
for transfer to the Collection Account, fire and hazard insurance proceeds and
Escrow Payments with respect to any Mortgage Loan where the FHA or VA, as the
case may be, has directed application of such funds as a credit against the
proceeds of the FHA Insurance Contract or the VA Guaranty Agreement. As part of
its servicing duties, the Servicer shall pay to the Mortgagor interest on funds
in the Escrow Account, to the extent required by the related Mortgage Loan or
Applicable Regulations, and to the extent that interest earned on funds in the
Escrow Account is insufficient, shall pay such interest from its own funds,
without any reimbursement therefor.

         In the event the Servicer shall deposit in the Escrow Account any
amount not required to be deposited therein, it may at any time withdraw such
amount from the Escrow Account, any provision herein to the contrary
notwithstanding.

         Section 3.08 Payment of Taxes, Insurance and Other Charges; Collections
Thereunder.

         With respect to each first lien Mortgage Loan, the Servicer shall
maintain accurate records reflecting the status of ground rents, taxes,
assessments, water rates and other charges which are or may become a lien upon
the Mortgaged Property and the status of Primary Insurance Policy premiums and
fire, flood and hazard insurance coverage and shall obtain, from time to time,
all bills for the payment of such charges (including renewal premiums) and shall
effect payment thereof prior to the applicable penalty or termination date and
at a time appropriate for securing maximum discounts allowable, employing for
such purpose deposits of the Mortgagor in the Escrow Account which shall have
been estimated and accumulated by the Servicer in amounts sufficient for such
purposes, as allowed under the terms of the Mortgage or Applicable Regulations.
To the extent that a Mortgage does not provide for Escrow Payments, the Servicer
(i) shall determine whether any such payments are made by the Mortgagor in a
manner and at a time that is necessary to avoid the loss of the Mortgaged
Property due to a tax sale or the foreclosure as a result of a tax lien and (ii)
shall ensure that all insurance required to be maintained on the Mortgaged
Property pursuant to this Agreement is maintained. If any such payment has not
been made and the Servicer receives notice of a tax lien with respect to the
Mortgage Loan being imposed, the Servicer will, to the extent required to avoid
loss of the Mortgaged Property, advance or cause to be advanced funds necessary
to discharge such lien on the Mortgaged Property. The Servicer assumes full
responsibility for the payment of all such bills and shall effect payments of
all such

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bills irrespective of the Mortgagor's faithful performance in the payment of
same or the making of the Escrow Payments and shall make Servicing Advances from
its own funds to effect such payments.

         The Servicer, on behalf of the Trustee, as mortgagee, will maintain in
full force and effect (to the extent a Mortgage Loan has a Primary Insurance
Policy) a Primary Insurance Policy issued by a Qualified Insurer with respect to
each Mortgage Loan for which such coverage is required. Such coverage will be
maintained until the Combined Loan-to-Value Ratio of the related Mortgage Loan
is reduced to 80% or less. The Servicer will not cancel or refuse to renew any
Primary Insurance Policy in effect on the Closing Date that is required to be
kept in force under this Agreement unless a replacement Primary Insurance Policy
for such cancelled or non-renewed policy is obtained from and maintained with a
Qualified Insurer. The Servicer shall not take any action which would result in
non-coverage under any applicable Primary Insurance Policy of any loss which,
but for the actions of the Servicer, would have been covered thereunder. In
connection with any assumption or substitution agreement entered into or to be
entered into pursuant to Section 3.14, the Servicer shall promptly notify the
insurer under the related Primary Insurance Policy, if any, of such assumption
or substitution of liability in accordance with the terms of such policy and
shall take all actions which may be required by such insurer as a condition to
the continuation of coverage under the Primary Insurance Policy. If such Primary
Insurance Policy is terminated as a result of such assumption or substitution of
liability, the Servicer shall obtain a replacement Primary Insurance Policy as
provided above.

         In connection with its activities as servicer, the Servicer agrees to
prepare and present, on behalf of itself and the Trustee, claims to the insurer
under any Primary Insurance Policy in a timely fashion in accordance with the
terms of such policies and, in this regard, to take such action as shall be
necessary to permit recovery under any Primary Insurance Policy respecting a
defaulted Mortgage Loan. Pursuant to Section 3.04, any amounts collected by the
Servicer under any Primary Insurance Policy shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.05.

         Section 3.09 Transfer of Accounts.

         The Servicer may transfer the Collection Account or the Escrow Account
to a different depository institution from time to time. Upon such transfer, the
Servicer shall deliver to the Trustee and the Depositor, a certification or
letter agreement, as the case may be, as required pursuant to Sections 3.04 and
3.06.

         Section 3.10 Maintenance of Hazard Insurance.

         The Servicer shall cause to be maintained for each first lien Mortgage
Loan fire and hazard insurance with extended coverage as is customary in the
area where the Mortgaged Property is located in an amount which is at least
equal to the lesser of (i) the amount necessary to fully compensate for any
damage or loss to the improvements which are a part of such property on a
replacement cost basis, (ii) the Principal Balance of the Mortgage Loan, in each
case in an amount not less than such amount as is necessary to prevent the
Mortgagor and/or the Mortgagee from becoming a co-insurer or (iii) the amount
required under applicable HUD/FHA regulations. If the Mortgaged Property is in
an area identified in the Federal Register by the

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Flood Emergency Management Agency as having special flood hazards and flood
insurance has been made available, the Servicer will cause to be maintained a
flood insurance policy meeting the requirements of the current guidelines of the
Federal Insurance Administration with a generally acceptable insurance carrier,
in an amount representing coverage not less than the least of (i) the Principal
Balance of the Mortgage Loan, (ii) the maximum insurable value of the
improvements securing such Mortgage Loan or (iii) the maximum amount of
insurance which is available under the Flood Disaster Protection Act of 1973, as
amended. The Servicer shall also maintain on the REO Property for the benefit of
the Certificateholders, (x) fire and hazard insurance with extended coverage in
an amount which is at least equal to the replacement cost of the improvements
which are a part of such property, (y) public liability insurance and, (z) to
the extent required and available under the Flood Disaster Protection Act of
1973, as amended, flood insurance in an amount as provided above. Any amounts
collected by the Servicer under any such policies other than amounts to be
deposited in the Escrow Account and applied to the restoration or repair of the
Mortgaged Property or REO Property, or released to the Mortgagor in accordance
with the Servicer's normal servicing procedures, shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 3.05. It is
understood and agreed that no earthquake or other additional insurance is
required to be maintained by the Servicer or the Mortgagor or maintained on
property acquired in respect of the Mortgage Loan, other than pursuant to such
Applicable Regulations as shall at any time be in force and as shall require
such additional insurance. All such policies shall be endorsed with standard
mortgagee clauses with loss payable to the Servicer and shall provide for at
least thirty days prior written notice of any cancellation, reduction in the
amount of or material change in coverage to the Servicer. The Servicer shall not
interfere with the Mortgagor's freedom of choice in selecting either his
insurance carrier or agent, provided, however, that the Servicer shall not
accept any such insurance policies from insurance companies unless such
companies currently reflect a general policy rating of B:VI or better in Best's
Key Rating Guide and are licensed to do business in the state wherein the
property subject to the policy is located.

         Section 3.11 Maintenance of Mortgage Impairment Insurance Policy.

         In the event that the Servicer shall obtain and maintain a blanket
policy issued by an insurer that has a general policy rating of B:VI or better
in Best's Key Rating Guide insuring against hazard losses on all of the Mortgage
Loans, then, to the extent such policy provides coverage in an amount equal to
the amount required pursuant to Section 3.10 and otherwise complies with all
other requirements of Section 3.10, it shall conclusively be deemed to have
satisfied its obligations as set forth in Section 3.10, it being understood and
agreed that such policy may contain a deductible clause, in which case the
Servicer shall, in the event that there shall not have been maintained on the
related Mortgaged Property or REO Property a policy complying with Section 3.10,
and there shall have been a loss which would have been covered by such policy,
deliver to the Trustee for deposit in the Distribution Account the amount not
otherwise payable under the blanket policy because of such deductible clause,
which amount shall not be reimbursable to the Servicer from the Trust Fund. In
connection with its activities as servicer of the Mortgage Loans, the Servicer
agrees to prepare and present, on behalf of the Trustee, claims under any such
blanket policy in a timely fashion in accordance with the terms of such policy.
Upon request of the Trustee, the Servicer shall cause to be delivered to the
Trustee a certified true copy of such policy and a statement from the insurer
thereunder that such policy

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shall in no event be terminated or materially modified without thirty days prior
written notice to the Trustee.

         Section 3.12 Fidelity Bond, Errors and Omissions Insurance.

         The Servicer shall maintain, at its own expense, a blanket fidelity
bond (the "Fidelity Bond") and an errors and omissions insurance policy, with
broad coverage with financially responsible companies on all officers, employees
or other persons acting in any capacity with regard to the Mortgage Loans to
handle funds, money, documents and papers relating to the Mortgage Loans. The
Fidelity Bond and errors and omissions insurance shall be in the form of the
Mortgage Banker's Blanket Bond and shall protect and insure the Servicer against
losses, including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such persons. Such Fidelity Bond shall also protect and insure
the Servicer against losses in connection with the failure to maintain any
insurance policies required pursuant to this Agreement and the release or
satisfaction of a Mortgage Loan without having obtained payment in full of the
indebtedness secured thereby. No provision of this Section 3.12 requiring the
Fidelity Bond and errors and omissions insurance shall diminish or relieve the
Servicer from its duties and obligations as set forth in this Agreement. The
minimum coverage under any such bond and insurance policy shall be at least
equal to the corresponding amounts required by Fannie Mae in the Fannie Mae MBS
Selling and Servicing Guide or by Freddie Mac in the Freddie Mac Servicer's
Guide. Upon request of the Trustee, the Servicer shall cause to be delivered to
the requesting party a certified true copy of the Fidelity Bond and errors and
omissions insurance policy and a statement from the surety and the insurer that
such Fidelity Bond and errors and omissions insurance policy shall in no event
be terminated or materially modified without thirty days' prior written notice
to the Trustee.

         Section 3.13 Title, Management and Disposition of REO Property.

                  (a)      In the event that title to a Mortgaged Property is
acquired in foreclosure or by deed in lieu of foreclosure, the deed or
certificate of sale shall be taken (pursuant to a limited power of attorney to
be provided by the Trustee to the Servicer) in the name of the Trustee, on
behalf of the Certificateholders, or in the event the Trustee is not authorized
or permitted to hold title to real property in the state where the REO Property
is located, or would be adversely affected under the "doing business" or tax
laws of such state by so holding title, the deed or certificate of sale shall be
taken in the name of such Person or Persons as shall be consistent with an
Opinion of Counsel obtained by the Servicer from an attorney duly licensed to
practice law in the state where the REO Property is located. Any Person or
Persons holding such title other than the Trustee shall acknowledge in writing
that such title is being held as nominee for the benefit of the Trustee.

                  (b)      In the event that the Trust Fund acquires any REO
Property as aforesaid or otherwise in connection with a default or imminent
default on a Mortgage Loan, the Servicer shall dispose of such REO Property
before the end of the third calendar year beginning after the year of its
acquisition by the Trust Fund for purposes of Section 860G(a)(8) of the Code or,
at the expense of the Trust Fund, request from the Internal Revenue Service,
more than 60 days before the day on which the above-mentioned grace period would
otherwise expire, an extension of the above-mentioned grace period, unless the
Servicer obtains an Opinion of Counsel,

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addressed to the Servicer and the Trustee, to the effect that the holding by the
Trust Fund of such REO Property subsequent to such period will not: (i) result
in the imposition of any tax on "prohibited transactions" as defined in Section
860F of the Code; or (ii) cause any REMIC constituting part of the Trust Fund to
fail to qualify as a REMIC at any time that any Certificates are outstanding, in
which case the Trust Fund may continue to hold such REO Property (subject to any
conditions contained in such Opinion of Counsel). The Servicer shall be entitled
to be reimbursed from the Collection Account for any costs incurred in obtaining
such Opinion of Counsel, as provided in Section 3.05.

         Subject to compliance with applicable laws and regulations as shall at
any time be in force, and notwithstanding any other provisions of this
Agreement, no REO Property acquired by the Trust Fund shall be rented (or
allowed to continue to be rented) or otherwise used by or on behalf of the Trust
Fund in such a manner or pursuant to any terms that would: (i) cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code; or (ii) subject any REMIC constituting part of
the Trust Fund to the imposition of any federal income taxes on the income
earned from such REO Property, including any taxes imposed by reason of Sections
860F or 860G(c) of the Code, unless the Servicer has agreed to indemnify and
hold harmless the Trust Fund with respect to the imposition of any such taxes.

         The Servicer shall manage, conserve, protect and operate each REO
Property for the Certificateholders and the Trust Fund solely for the purpose of
its prompt disposition and sale in a manner which does not cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by the related REMIC of
any "income from non-permitted assets" within the meaning of Section
860F(a)(2)(B) of the Code, or any "net income from foreclosure property" which
is subject to taxation under the REMIC Provisions. The Servicer shall cause each
REO Property to be inspected promptly upon the acquisition of title thereto and
shall cause each REO Property to be inspected at least annually thereafter. The
Servicer shall make or cause to be made a written report of each such
inspection. Such reports shall be retained in the Mortgage Servicing File and
copies thereof shall be forwarded by the Servicer to the Trustee upon request.
The Servicer shall attempt to sell the same (and may temporarily rent the same)
on such terms and conditions as the Servicer deems to be in the best interest of
the Certificateholders and the Trust Fund.

         With respect to each REO Property, the Servicer shall account
separately for each REO Property with respect to all funds collected and
received in connection with the operation of such REO Property.

         The Servicer shall deposit or cause to be deposited, on a daily basis,
within two Business Days of receipt, in the Collection Account, all revenues
received with respect to each REO Property and shall withdraw therefrom funds
necessary for the proper operation, management and maintenance of the related
REO Property, including the cost of maintaining any hazard insurance pursuant to
Section 3.10 hereof and the fees of any managing agent acting on behalf of the
Servicer.

         The Servicer shall furnish to the Trustee, on each Servicer Remittance
Date, an operating statement for each REO Property covering the operation of
each REO Property for the previous

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month. Such operating statement shall be accompanied by such other information
as the Trustee shall reasonably request.

         The Servicer shall use its best efforts to dispose of the REO Property
as promptly as is practically consistent with protecting the Certificateholders'
interests.

         Each REO Disposition shall be carried out by the Servicer at such price
and upon such terms and conditions as the Servicer deems to be in the best
interest of the Certificateholders. If as of the date title to any REO Property
was acquired by the Servicer there were outstanding unreimbursed Servicing
Advances with respect to the REO Property or the related Mortgage Loan, the
Servicer, upon an REO Disposition of such REO Property, shall be entitled to
reimbursement for any related unreimbursed Servicing Advances from proceeds
received in connection with such REO Disposition. The proceeds from the REO
Disposition, net of any payment to the Servicer as provided above, shall be
deposited in the Collection Account for distribution on the succeeding Servicer
Remittance Date in accordance with Section 4.01.

         Any REO Disposition shall be for cash only (unless changes in the REMIC
Provisions made subsequent to the Startup Day allow a sale for other
consideration and an Opinion of Counsel is obtained by the Servicer to the
effect that such sale shall not cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC).

         Section 3.14 Due-on-Sale Clauses; Assumption and Substitution
Agreements.

         When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, to the extent it has knowledge of such conveyance
or prospective conveyance, exercise its rights to accelerate the maturity of the
related Mortgage Loan under any "due-on-sale" clause contained in the related
Mortgage or Mortgage Note; provided, however, that the Servicer shall not
exercise any such right if the "due-on-sale" clause, in the reasonable belief of
the Servicer, is not enforceable under applicable law. An Opinion of Counsel at
the expense of the Servicer (which expense shall constitute a Servicing Advance)
delivered to the Trustee and the Depositor to the foregoing effect shall
conclusively establish the reasonableness of such belief. In such event, the
Servicer shall make reasonable efforts to enter into an assumption and
modification agreement with the Person to whom such property has been or is
about to be conveyed, pursuant to which such Person becomes liable under the
Mortgage Note and, unless prohibited by applicable law or the Mortgage, the
Mortgagor remains liable thereon. If the foregoing is not permitted under
applicable law, the Servicer is authorized to enter into a substitution of
liability agreement with such Person, pursuant to which the original Mortgagor
is released from liability and such Person is substituted as Mortgagor and
becomes liable under the Note. The Mortgage Loan, as assumed, shall conform in
all respects to the requirements, representations and warranties of this
Agreement. The Servicer shall notify the Trustee that any such assumption or
substitution agreement has been completed by forwarding to the Trustee (or the
Custodian, as the case may be) the original copy of such assumption or
substitution agreement (indicating the Mortgage File to which it relates) which
copy shall be added by the Trustee (or the Custodian, as the case may be) to the
related Mortgage File and which shall, for all purposes, be considered a part of
such Mortgage File to the same extent as all other documents and instruments
constituting a part thereof. The Servicer shall be responsible for recording any
such assumption or substitution agreements. In connection with any such

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assumption or substitution agreement, the Monthly Payment on the related
Mortgage Loan shall not be changed but shall remain as in effect immediately
prior to the assumption or substitution, the stated maturity or outstanding
principal amount of such Mortgage Loan shall not be changed nor shall any
required monthly payments of principal or interest be deferred or forgiven. Any
fee collected by the Servicer for consenting to any such conveyance or entering
into an assumption or substitution agreement shall be retained by or paid to the
Servicer as additional servicing compensation.

         Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or any assumption which the Servicer may be
restricted by law from preventing, for any reason whatsoever.

         Section 3.15 Notification of Adjustments.

         On each Adjustment Date, the Servicer shall make Mortgage Interest Rate
adjustments for each Group II Mortgage Loan in compliance with the requirements
of the related Mortgage and Mortgage Note and Applicable Regulations. The
Servicer shall execute and deliver the notices required by each Mortgage and
Mortgage Note and Applicable Regulations regarding Mortgage Interest Rate
adjustments. The Servicer also shall provide timely notification to the Trustee
of all applicable data and information regarding such Mortgage Interest Rate
adjustments and the Servicer's methods of implementing such Mortgage Interest
Rate adjustments. Upon the discovery by the Servicer, the Trustee that the
Servicer has failed to adjust or has incorrectly adjusted a Mortgage Interest
Rate or a Monthly Payment pursuant to the terms of the related Mortgage Note and
Mortgage, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any interest loss caused
thereby without reimbursement therefor; provided, however, the Servicer shall be
held harmless with respect to any Mortgage Interest Rate adjustments made by any
servicer prior to the Servicer.

         Section 3.16 Optional Purchases of Mortgage Loans by Servicer.

         The Servicer (or an affiliate of the Servicer) may, at its option,
repurchase a Mortgage Loan or REO Property which becomes 120 or more days
Delinquent or for which the Servicer has accepted a deed in lieu of foreclosure,
during the period commencing on the first day of the calendar quarter succeeding
the calendar quarter in which the Initial Delinquency Date occurred with respect
to such Mortgage Loan and ending on the last Business Day of such calendar
quarter. If the Servicer (or an affiliate of the Servicer) does not exercise its
purchase right with respect to a Mortgage Loan during the period specified in
the preceding sentence, such Mortgage Loan shall thereafter again become
eligible for purchase pursuant to the preceding sentence only after the Mortgage
Loan ceases to be 120 days or more Delinquent and thereafter becomes 120 days
Delinquent again. The "Initial Delinquency Date" of a Mortgage Loan shall mean
the date on which the Mortgage Loan first became 120 days Delinquent. Prior to
repurchase pursuant to this Section 3.16, the Servicer shall be required to
continue to make monthly advances pursuant to Section 4.07. The Servicer shall
not use any procedure in selecting Mortgage Loans to be repurchased which is
materially adverse to the interests of the Certificateholders. The Servicer
shall purchase such (i) delinquent Mortgage Loan at a price equal to the
Principal Balance of the

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Mortgage Loan plus accrued interest thereon at the Mortgage Interest Rate from
the date to which interest has last been paid to the Trust Fund to the date of
purchase plus any unreimbursed Servicing Advances and Advances or (ii) REO
Property at its fair market value as determined in good faith by the Servicer.
Any such repurchase of a Mortgage Loan or REO Property pursuant to this Section
3.16(a) shall be accomplished by delivery to the Trustee for deposit in the
Distribution Account of the amount of the purchase price. The Trustee shall
immediately effectuate the conveyance of such delinquent Mortgage Loan or REO
Property to the Servicer to the extent necessary, including the prompt delivery
of all documentation to the Servicer.

         Section 3.17 Trustee to Cooperate; Release of Files.

                  (a)      Upon the payment in full of any Mortgage Loan
(including any liquidation of such Mortgage Loan through foreclosure or
otherwise, or the receipt by the Servicer of a notification that payment in full
will be escrowed in a manner customary for such purposes), the Servicer shall
deliver to the Trustee (or the Custodian as the case may be) two executed copies
of a completed "Request for Release" in the form of Exhibit E. Upon receipt of
such Request for Release of Documents, the Trustee (or the Custodian as the case
may be) shall promptly release the related Mortgage File, in trust to (i) the
Servicer, or (ii) such other party identified in the related Request for
Release. Upon any such payment in full, or the receipt of such notification that
such funds have been placed in escrow, the Servicer shall direct the Trustee in
writing to execute an instrument of satisfaction (or assignment of Mortgage
without recourse) regarding the Mortgaged Property relating to such Mortgage,
which instrument of satisfaction or assignment, as the case may be, shall be
delivered to the Person or Persons entitled thereto against receipt therefor of
payment in full, it being understood and agreed that no expense incurred in
connection with such instrument of satisfaction or assignment, as the case may
be, shall be chargeable to the Collection Account. In lieu of executing any such
satisfaction or assignment, as the case may be, the Servicer may prepare and
submit to the Trustee a satisfaction (or assignment without recourse, if
requested by the Person or Persons entitled thereto) in form for execution by
the Trustee with all requisite information completed by the Servicer; in such
event, the Trustee shall execute and acknowledge such satisfaction or
assignment, as the case may be, and deliver the same with the related Mortgage
File, as aforesaid.

                  (b)      From time to time and as appropriate in the servicing
of any Mortgage Loan, including, without limitation, foreclosure or other
comparable conversion of a Mortgage Loan or collection under any insurance
policy relating to a Mortgage Loan, the Trustee shall (except in the case of the
payment or liquidation pursuant to which the related Mortgage File is released
to an escrow agent or an employee, agent or attorney of the Trustee), upon
written request of the Servicer and delivery to the Trustee (or the Custodian,
as the case may be) of two executed copies of a "Request for Release" in the
form of Exhibit E signed by a Servicing Officer, release the related Mortgage
File to the Servicer and shall execute such documents as shall be necessary to
the prosecution of any such proceedings, including, without limitation, an
assignment without recourse of the related Mortgage to the Servicer. Such
receipt shall obligate the Servicer to return the Mortgage File to the Trustee
(or the Custodian, as the case may be) when the need therefor by the Servicer no
longer exists unless the Mortgage Loan shall be liquidated, in which case, upon
receipt of a Request for Release evidencing such liquidation, the receipt shall
be released by the Trustee (or the Custodian, as the case may be) to the
Servicer.

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                  (c)      Subject to Section 3.01, the Servicer shall have the
right to accept applications of Mortgagors for consent to (i) partial releases
of Mortgages, (ii) alterations, (iii) removal, demolition or division of
properties subject to Mortgages and (iv) second mortgage subordination
agreements. No application for approval shall be considered by the Servicer
unless: (w) it has received an Opinion of Counsel, addressed to the Trustee
(which opinion shall not be an expense of the Trustee or the Trust Fund) that
such sale, disposition, substitution, acquisition or contribution will not
affect adversely the status of any REMIC constituting part of the Trust Fund as
a REMIC or cause any REMIC constituting part of the Trust Fund to be subject to
a tax on "prohibited transactions" or "contributions" pursuant to the REMIC
Provisions; (x) the provisions of the related Note and Mortgage have been
complied with; (y) the Combined Loan-to-Value Ratio and debt-to-income ratio
after any release does not exceed the maximum Combined Loan-to-Value Ratio and
debt-to-income ratio established in accordance with the underwriting standards
of the Mortgage Loans; and (z) the lien priority of the related Mortgage is not
affected. Upon receipt by the Trustee of a Servicing Officer's certificate
setting forth the action proposed to be taken in respect of a particular
Mortgage Loan and certifying that the criteria set forth in the immediately
preceding sentence have been satisfied, the Trustee shall execute and deliver to
the Servicer the consent or partial release so requested by the Servicer. A
proposed form of consent or partial release, as the case may be, shall accompany
any Servicing Officer's certificate delivered by the Servicer pursuant to this
paragraph.

         Section 3.18 Servicing Compensation.

         As compensation for its activities hereunder, the Servicer shall be
entitled to retain the amount of the Servicing Fee with respect to each Mortgage
Loan (including REO Properties). The Servicer shall be entitled to retain
additional servicing compensation in the form of release fees, bad check
charges, assumption fees, modification or extension fees, late payment charges,
or any other service-related fees, Insurance Proceeds and Liquidation Proceeds
not required to be deposited in the Collection Account or the Distribution
Account and similar items, to the extent collected from Mortgagors.

         Section 3.19 Annual Statement as to Compliance.

                  (a)      The Servicer, at its own expense, will deliver to the
Trustee and the Depositor, not later than March 15 of each year commencing in
2004, a Servicing Officer's certificate stating, as to each signer thereof, that
(i) a review of the activities of the Servicer during such preceding fiscal year
(or such shorter period in the case of the first such report) and of performance
under this Agreement has been made under such officers' supervision, and (ii) to
the best of such officers' knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement for such year, or, if there
has been a default in the fulfillment of all such obligations, specifying each
such default known to such officers and the nature and status thereof including
the steps being taken by the Servicer to remedy such default.

                  (b)      Delivery of such reports, information and documents
to the Trustee is for informational purposes only and their receipt of such
shall not constitute constructive notice of any information contained therein or
determinable, from information contained therein, including the Servicer's
compliance with any of its covenants hereunder (as to which the Trustee are
entitled to rely exclusively on Officers' Certificates).

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         Section 3.20 Annual Independent Certified Public Accountants' Reports.

                  (a)      Not later than March 15 of each year commencing in
2004, the Servicer, at its expense, shall cause a nationally recognized firm of
independent certified public accountants to furnish to the Trustee and the
Depositor a report stating that (i) it has obtained a letter of representation
regarding certain matters from the management of the Servicer which includes an
assertion that the Servicer has complied with certain minimum residential
mortgage loan servicing standards, identified in either the Uniform Single
Attestation Program for Mortgage Bankers established by the Mortgage Bankers
Association of America or the Audit Program for Mortgages serviced by Freddie
Mac, with respect to the servicing of residential mortgage loans during the most
recently completed fiscal year and (ii) on the basis of an examination conducted
by such firm in accordance with standards established by the American Institute
of Certified Public Accountants, such representation is fairly stated in all
material respects, subject to such exceptions and other qualifications that may
be appropriate. Immediately upon receipt of such report, the Servicer shall
furnish a copy of such report to the Trustee, the Depositor and each Rating
Agency. Copies of such statement shall be provided by the Trustee to any
Certificateholder upon request at the Servicer's expense, provided that such
statement is delivered by the Servicer to the Trustee.

                  (b)      Delivery of such reports, information and documents
to the Trustee is for informational purposes only and their receipt of such
shall not constitute constructive notice of any information contained therein or
determinable, from information contained therein, including the Servicer's
compliance with any of its covenants hereunder (as to the Trustee is entitled to
rely exclusively on Officers' Certificates).

         Section 3.21 Access to Certain Documentation and Information Regarding
the Mortgage Loans.

         The Servicer shall provide to the Trustee, Certificateholders that are
federally insured savings and loan associations, the Office of Thrift
Supervision, the FDIC and the supervisory agents and examiners of each of the
foregoing (which, in the case of supervisory agents and examiners, may be
required by applicable state and federal regulations) access to the
documentation regarding the Mortgage Loans, such access being afforded without
charge but only upon reasonable request and during normal business hours at the
offices of the Servicer designated by it.

         Section 3.22 Reserved.

         Section 3.23 Obligations of the Servicer in Respect of Compensating
Interest.

         Not later than the close of business on each Servicer Remittance Date,
the Servicer shall deliver to the Trustee for deposit in the Distribution
Account an amount ("Compensating Interest") equal to the lesser of (A) the
aggregate of the Prepayment Interest Shortfalls on the Actuarial Mortgage Loans
for the related Distribution Date resulting from Principal Prepayments on the
Actuarial Mortgage Loans during the related Prepayment Period and (B) 50% of its
aggregate Servicing Fee received in the related Collection Period. The Servicer
shall apply Compensating Interest to offset any Prepayment Interest Shortfalls
on the Actuarial Mortgage

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Loans. The Servicer shall not have the right to reimbursement for any amounts
remitted to the Trustee in respect of Compensating Interest. Such amounts so
remitted shall be included in the Available Funds and distributed therewith on
the next Distribution Date. The Servicer shall not be obligated to pay
Compensating Interest with respect to Prepayment Interest Shortfalls on Simple
Interest Mortgage Loans or Relief Act Interest Shortfalls.

         Section 3.24 Obligations of the Servicer in Respect of Mortgage
Interest Rates and Monthly Payments.

         In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Interest Rates, Monthly Payments or Principal Balances that were made
by the Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Servicer, upon discovery or receipt of
notice thereof, immediately shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any such shortfall and
shall indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and
any successor servicer in respect of any such liability. Such indemnities shall
survive the termination or discharge of this Agreement.

         Section 3.25 Investment of Funds in the Collection Account and the
Distribution Account.

                  (a)      The Servicer may direct any depository institution
maintaining the Collection Account to invest the funds in the Collection Account
in one or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, (i) no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other than the Trustee
is the obligor thereon, and (ii) no later than the date on which such funds are
required to be withdrawn from such account pursuant to this Agreement, if the
Trustee is the obligor thereon. All such Permitted Investments shall be held to
maturity, unless payable on demand. Any investment of funds in the Collection
Account shall be made in the name of the Trustee or the Servicer, as applicable
(in its capacity as such) or in the name of a nominee of the Trustee. The
Trustee shall be entitled to sole possession (except with respect to investment
direction of funds held in the Collection Account) over each such investment and
the income thereon, and any certificate or other instrument evidencing any such
investment shall be delivered directly to the Trustee or its agent, together
with any document of transfer necessary to transfer title to such investment to
the Trustee or its nominee. In the event amounts on deposit in the Collection
Account are at any time invested in a Permitted Investment payable on demand,
the Trustee shall at the direction of the Servicer:

                  (x)      consistent with any notice required to be given
                           thereunder, demand that payment thereon be made on
                           the last day such Permitted Investment may otherwise
                           mature hereunder in an amount equal to the lesser of
                           (1) all amounts then payable thereunder and (2) the
                           amount required to be withdrawn on such date; and

                  (y)      demand payment of all amounts due thereunder promptly
                           upon determination by a Responsible Officer of the
                           Trustee that such Permitted

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                           Investment would not constitute a Permitted
                           Investment in respect of funds thereafter on deposit
                           in the Collection Account.

                  (b)      All income and gain realized from the investment of
funds in the Collection Account shall be for the benefit of the Servicer. The
Servicer shall deposit in the Collection Account the amount of any loss incurred
in respect of any such Permitted Investment made with funds in such account
immediately upon realization of such loss. Funds on deposit in the Distribution
Account will remain uninvested.

                  (c)      Except as otherwise expressly provided in this
Agreement, if any default occurs in the making of a payment due under any
Permitted Investment, or if a default occurs in any other performance required
under any Permitted Investment, the Trustee may and, subject to Section 8.01 and
Section 8.02(a)(v), upon the request of the Holders of Certificates representing
more than 50% of the Voting Rights allocated to any Class of Certificates, shall
take such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate proceedings.

         Except as set forth in clause (b) above with respect to the
Distribution Account, the Trustee shall not in any way be held liable by reason
of any insufficiency in any Account held by the Trustee resulting from any
investment loss on any Permitted Investment included therein (except to the
extent that the Trustee is the obligor and has defaulted thereon).

         Section 3.26 Liability of Servicer; Indemnification.

                  (a)      Subject to clause (b) below and Section 6.03, the
Servicer (except the Trustee if it is required to succeed the Servicer
hereunder) indemnifies and holds the Trustee, the Seller, the Depositor and each
Certificateholder harmless against any and all claims, losses, penalties, fines,
forfeitures, reasonable legal fees and related costs, judgments, and any other
costs, fees and expenses that the Trustee, the Depositor and any
Certificateholder may sustain in any way related to the failure of the Servicer
to perform its duties and service the Mortgage Loans in compliance with the
Servicing Standards. The Servicer shall immediately notify the Trustee, the
Depositor and each Certificateholder if a claim is made that may result in such
claims, losses, penalties, fines, forfeitures, legal fees or related costs,
judgments, or any other costs, fees and expenses, and the Servicer shall assume
(with the consent of the Trustee) the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the Servicer, Trustee, the Depositor and/or Certificateholder in respect
of such claim. The provisions of this Section 3.26 shall survive the termination
of this Agreement and the payment of the outstanding Certificates.

                  (b)      None of the Depositor, the Seller, the Servicer, or
any of the directors, officers, employees or agents of the Depositor, the Seller
or the Servicer shall be under any liability to the Trust Fund or the
Certificateholders for any action taken, or for refraining from the taking of
any action, in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Depositor, the
Seller or the Servicer or any such Person against any breach of warranties or
representations made herein, or against any specific liability imposed on the
Servicer for a breach of the Servicing Standard, or against

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any liability which would otherwise be imposed by reason of its respective
willful misfeasance, bad faith, fraud or negligence in the performance of its
duties or by reasons of negligent disregard of its respective obligations or
duties hereunder.

         The Depositor, the Servicer, the Seller and any director, officer,
employee or agent of the Depositor, the Seller or the Servicer, may rely in good
faith on any document of any kind which, prima facie, is properly executed and
submitted by any appropriate Person with respect to any matters arising
hereunder. The Depositor, the Servicer, the Seller, and any director, officer,
employee or agent of the Depositor, the Seller or the Servicer shall be
indemnified and held harmless by the Trust Fund against any loss, liability or
expense incurred in connection with any legal action relating to this Agreement
or the Certificates, other than any loss, liability or expense incurred in
connection with any legal action incurred by reason of its respective
misfeasance, bad faith, fraud or negligence, a breach of a representation or
warranty hereunder or (in the case of the Servicer) a breach of the Servicing
Standard in the performance of its respective duties or by reason of negligent
disregard of its respective obligations or duties hereunder. Neither the
Depositor, the Seller nor the Servicer shall be under any obligation to appear
in, prosecute or defend any legal action unless such action is related to its
respective duties under this Agreement and in its opinion does not expose it to
any expense or liability; provided, however, that the Depositor, the Seller or
the Servicer may in its discretion undertake any action related to its
obligations hereunder which it may deem necessary or desirable with respect to
this Agreement and the rights and duties of the parties hereto and the interests
of the Certificateholders hereunder.

         Section 3.27 Reports of Foreclosure and Abandonment of Mortgaged
Properties.

         On or before the last day of February of each year beginning in 2004,
the Servicer shall file the reports of foreclosure and abandonment of any
Mortgaged Property required by Section 6050J of the Code with the Internal
Revenue Service and provide an Officer's Certificate certifying its compliance
with this Section 3.27 to the Trustee. The reports from the Servicer shall be in
form and substance sufficient to meet the reporting requirements imposed by such
Section 6050J.

         Section 3.28 Protection of Assets.

                  (a)      Except for transactions and activities entered into
in connection with the securitization that is the subject of this Agreement, the
Trust is not authorized and has no power to:

                                    (1)      borrow money or issue debt;

                                    (2)      merge with another entity,
reorganize, liquidate or sell assets; or

                                    (3)      engage in any business or
activities.

                  (b)      Each party to this Agreement agrees that it will not
file an involuntary bankruptcy petition against the Trustee or the Trust Fund or
initiate any other form of insolvency proceeding until after the Certificates
have been paid.

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         Section 3.29 Periodic Filings.

                  (a)      The Trustee and the Servicer shall reasonably
cooperate with the Depositor in connection with the Trust's satisfying the
reporting requirements under the Exchange Act. The Trustee shall prepare and
file (via the Securities and Exchange Commission's Electronic Data Gathering and
Retrieval System) on behalf of the Trust any Current Reports on Form 8-K and
Annual Reports on Form 10-K (and the Servicer shall sign any Form 10-K)
customary for similar securities as required by the Exchange Act and the rules
and regulations of the Securities and Exchange Commission thereunder.

                  (b)      Each Form 8-K shall be filed by the Trustee within 15
days after each Distribution Date (commencing on the Distribution Date occurring
in July 2003 and ending with the Distribution Date following the filing of the
Form 15 Suspension Notification as set forth in Section 3.29(h) hereof),
including a copy of the statement set forth in Section 4.06(a) hereof for such
Distribution Date as an exhibit thereto. Prior to March 30th of each year (or
such earlier date as may be required by the Exchange Act and the rules and
regulations of the Securities and Exchange Commission), the Trustee shall file a
Form 10-K, in substance as required by applicable law or applicable Securities
and Exchange Commission staff's interpretations. Such Form 10-K shall include as
exhibits the Servicer's annual statement of compliance described under Section
3.19 and the accountant's report described under Section 3.20, in each case to
the extent they have been timely delivered to the Trustee. If they are not so
timely delivered, the Trustee shall file an amended Form 10-K including such
documents as exhibits reasonably promptly after they are delivered to the
Trustee. The Trustee shall have not liability with respect to (a) any failure to
properly prepare or file such periodic reports resulting from or relating to the
Trustee's inability or failure to obtain any information not resulting from its
own negligence, willful misconduct or bad faith or (b) any inaccuracy in such
periodic reports resulting from incorrect information provided to the Trustee by
the Servicer in a Remittance Report or otherwise. The Form 10-K shall also
include a certification in the form attached hereto as Exhibit S (the
"Certification"), which shall be signed by the senior officer of the Servicer in
charge of servicing.

                  (c)      The Trustee shall sign a certification (in the form
attached hereto as Exhibit T) for the benefit of the Servicer and its officers,
directors and Affiliates regarding certain aspects of the Certification
(provided, however, that the Trustee shall not undertake an analysis of the
accountant's report attached as an exhibit to the Form 10-K). No later than the
20th day prior to the latest date on which the Form 10-K is permitted to be
filed, without regard to extension (or if such day is not a Business Day, the
immediately preceding Business Day), the Trustee shall deliver to the Servicer
(i) such certification and (ii) a completed Form 10-K to be executed by the
Servicer. No later than the 10th day prior to the latest date on which the Form
10-K is permitted to be filed, without regard to extension (or if such day is
not a Business Day, the immediately preceding Business Day), the Servicer shall
deliver the signed Form 10-K and the signed Certification to be filed to the
Trustee.

                  (d)      In addition, the Trustee shall indemnify and hold
harmless the Depositor, the Servicer and each of its officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon (i) a breach of the Trustee's

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obligations under this Section 3.29(c), (ii) the Trustee's negligence, bad faith
or willful misconduct in connection therewith or (iii) any inaccuracy in
Trustee's certification other than losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments
and other costs and expenses arising out of the Servicer's breach of its
obligations under this Agreement. If the indemnification provided for herein is
unavailable or insufficient to hold harmless the Servicer and its officers,
directors and Affiliates, then the Trustee shall contribute to the amount paid
or payable by the Servicer, its officers, directors or Affiliates as a result of
the losses, claims, damages or liabilities of the Servicer, its officers,
directors or Affiliates in such proportion as is appropriate to reflect the
relative fault of the Servicer and its officers, directors and Affiliates on the
one hand and the Trustee on the other.

                  (e)      The Servicer shall indemnify and hold harmless the
Trustee and its officers, directors and Affiliates from and against any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments and other costs and expenses arising out of the
Servicer's failure to sign and deliver either the Certification or the Form 10-K
within the time frame provided in Section 3.29(c), other than any losses,
damages, penalties, fines, forfeitures, reasonable and necessary legal fees and
related costs, judgments and other costs and expenses arising out of the
Trustee's breach of its obligations under this Agreement. If the indemnification
provided for herein is unavailable or insufficient to hold harmless the Trustee
and its officers, directors and Affiliates, then the Servicer shall contribute
to the amount paid or payable by the Trustee, its officers, directors or
Affiliates as a result of the losses, claims, damages or liabilities of the
Trustee, its officers, directors or Affiliates in such proportion as is
appropriate to reflect the relative fault of the Trustee and its officers,
directors and Affiliates on the one hand and the Servicer on the other.

                  (f)      Upon any filing with the Securities and Exchange
Commission, the Trustee shall promptly deliver to the Depositor and the Servicer
a copy of any such executed report, statement or information.

                  (g)      Prior to January 30 of the first year in which the
Trustee is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust.

                  (h)      If the Securities and Exchange Commission issues
additional interpretative guidance or promulgates additional rules or
regulations, or if other changes in applicable law occur, that would require the
reporting arrangements, or the allocation of responsibilities with respect
thereto, described in this Section 3.29, to be conducted differently than as
described, the Depositor, Servicer and Trustee will reasonably cooperate to
amend the provisions of this Section 3.29 in order to comply with such amended
reporting requirements and such amendment of this Section 3.29. Any such
amendment shall be made in accordance with the first paragraph of Section 11.01
without further consent of the Certificateholders and without the requirement to
deliver (i) notice in writing to the Depositor, the Servicer and the Trustee
from the Rating Agencies that such action will not result in the reduction or
withdrawal of the rating of any outstanding Class of Certificates with respect
to which it is a Rating Agency, or (ii) an Opinion of Counsel delivered to the
Servicer and the Trustee. Such amendment may result in the reduction of the
reports filed by the Trustee on behalf of the Trust under the Exchange Act.
Notwithstanding the foregoing, none of the Depositor, Servicer or Trustee shall
be obligated to

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enter into any amendment pursuant to this Section 3.29 that adversely affects
its obligations and immunities under this Agreement.

         Section 3.30 Advance Facility.

                  (a)      The Servicer is hereby authorized to enter into a
financing or other facility (any such arrangement, an "Advance Facility"), the
documentation for which complies with Section 3.30(e) below, under which (1) the
Servicer assigns or pledges its rights under this Agreement to be reimbursed for
any or all Advances and/or Servicing Advances to (i) a Person, which may be a
special-purpose bankruptcy-remote entity (an "SPV"), (ii) a Person, which may
simultaneously assign or pledge such rights to an SPV or (iii) a lender (a
"Lender"), which, in the case of any Person or SPV of the type described in
either of the preceding clauses (i) or (ii), may directly or through other
assignees and/or pledgees, assign or pledge such rights to a Person, which may
include a trustee acting on behalf of holders of debt instruments (any such
Person or any such Lender, an "Advance Financing Person"), and/or (2) an Advance
Financing Person agrees to fund all the Advances and/or Servicing Advances
required to be made by the Servicer pursuant to this Agreement. No consent of
the Trustee, Certificateholders or any other party shall be required before the
Servicer may enter into an Advance Facility nor shall the Trustee or the
Certificateholders be a third party beneficiary of any obligation of an Advance
Financing Person to the Servicer. Notwithstanding the existence of any Advance
Facility under which an Advance Financing Person agrees to fund Advances and/or
Servicing Advances, (A) the Servicer (i) shall remain obligated pursuant to this
Agreement to make Advances and/or Servicing Advances pursuant to and as required
by this Agreement and (ii) shall not be relieved of such obligations by virtue
of such Advance Facility and (B) neither the Advance Financing Person nor any
Servicer's Assignee (as hereinafter defined) shall have any right to proceed
against or otherwise contact any Mortgagor for the purpose of collecting any
payment that may be due with respect to any related Mortgage Loan or enforcing
any covenant of such Mortgagor under the related Mortgage Loan documents.

                  (b)      If the Servicer enters into an Advance Facility, the
Servicer and the related Advance Financing Person shall deliver to the Trustee
at the address set forth in Section 11.05 hereof a written notice (an "Advance
Facility Notice"), stating (a) the identity of the Advance Financing Person and
(b) the identity of the Person (the "Servicer's Assignee") that will, subject to
Section 3.30(c) hereof, have the right to make withdrawals from the Collection
Account pursuant to Section 3.05 hereof to reimburse previously unreimbursed
Advances and/or Servicing Advances ("Advance Reimbursement Amounts"). Advance
Reimbursement Amounts (i) shall consist solely of amounts in respect of Advances
and/or Servicing Advances for which the Servicer would be permitted to reimburse
itself in accordance with Section 3.05 hereof, assuming the Servicer had made
the related Advance(s) and/or Servicing Advance(s) and (ii) shall not consist of
amounts payable to a successor Servicer in accordance with Section 3.05 hereof
to the extent permitted under Section 3.30(e) below.

                  (c)      Notwithstanding the existence of an Advance Facility,
the Servicer, on behalf of the Advance Financing Person, shall be entitled to
receive reimbursements of Advances and/or Servicing Advances in accordance with
Section 3.05 hereof, which entitlement may be terminated by the Advance
Financing Person pursuant to a written notice to the Trustee in the manner set
forth in Section 11.05 hereof. Upon receipt of such written notice, the Servicer
shall

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no longer be entitled to receive reimbursement for any Advance Reimbursement
Amounts and the Servicer's Assignee shall immediately have the right to receive
from the Collection Account all Advance Reimbursement Amounts. Notwithstanding
the foregoing, and for the avoidance of doubt, (i) the Servicer and/or the
Servicer's Assignee shall only be entitled to reimbursement of Advance
Reimbursement Amounts hereunder pursuant to Section 3.05 of this Agreement and
shall not otherwise be entitled to make withdrawals or receive amounts that
shall be deposited in the Distribution Account pursuant to Section 3.04(b)
hereof, and (ii) none of the Trustee or the Certificateholders shall have any
right to, or otherwise be entitled to, receive any Advance Reimbursement Amounts
to which the Servicer or Servicer's Assignee, as applicable, shall be entitled
pursuant to Section 3.05 hereof. An Advance Facility may be terminated by the
joint written direction of the Servicer and the related Advance Financing
Person. Written notice of such termination shall be delivered to the Trustee in
the manner set forth in Section 11.05 hereof. The Trustee shall have no duty or
liability with respect to the calculation of any Advance Reimbursement Amount
and shall be entitled to rely without independent investigation on the Advance
Facility Notice and on such Servicer's report of the amount of Advance
Reimbursement Amounts that were included in the remittance from such Servicer to
the Trustee pursuant to Section 4.07. Such Servicer shall maintain and provide
to any successor Servicer a detailed accounting on a loan-by-loan basis as to
amounts advanced by, pledged or assigned to, and reimbursed to any Advance
Financing Person. The successor Servicer shall be entitled to rely on any such
information provided by the predecessor Servicer, and the successor Servicer
shall not be liable for any errors in such information.

                  (d)      An Advance Financing Person who receives an
assignment or pledge of rights to receive Advance Reimbursement Amounts and/or
whose obligations are limited to the funding of Advances and/or Servicing
Advances pursuant to an Advance Facility shall not be required to meet the
criteria for qualification as a Sub-Servicer.

                  (e)      As between a predecessor Servicer and its Advance
Financing Person, on the one hand, and a successor Servicer and its Advance
Financing Person, if any, on the other hand, Advance Reimbursement Amounts on a
loan-by-loan basis with respect to each Mortgage Loan as to which a Advance
and/or Servicing Advance shall have been made and be outstanding shall be
allocated on a "first-in, first out" basis. In the event the Servicer's Assignee
shall have received some or all of an Advance Reimbursement Amount related to
Advances and/or Servicing Advances that were made by a Person other than such
predecessor Servicer or its related Advance Financing Person in error, then such
Servicer's Assignee shall be required to remit any portion of such Advance
Reimbursement Amount to each Person entitled to such portion of such Advance
Reimbursement Amount. Without limiting the generality of the foregoing, the
Servicer shall remain entitled to be reimbursed by the Advance Financing Person
for all Advances and/or Servicing Advances funded by the Servicer to the extent
the related Advance Reimbursement Amounts have not been assigned or pledged to
such Advance Financing Person or Servicer's Assignee.

                  (f)      For purposes of any certification of a Servicing
Officer of the Servicer made pursuant to Section 4.07(d), any Nonrecoverable
Advance or Nonrecoverable Servicing Advance referred to therein may have been
made by such Servicer or any predecessor Servicer. In making its determination
that any Advance or Servicing Advance theretofore made has become a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, the Servicer shall

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apply the same criteria in making such determination regardless of whether such
Advance or Servicing Advance shall have been made by the Servicer or any
predecessor Servicer.

                  (g)      The Trustee shall not, as a result of the existence
of any Advance Facility, have any additional responsibility to track or monitor
Advance Reimbursement Amounts or any Advance Facility, and, except as expressly
provided in Section 3.30(a) above, is not and shall not be obligated to make any
payment with respect to any Advance Reimbursement Amount. The Servicer hereby
indemnifies the Trustee, the Fund and any successor Servicer, as applicable,
from and against any claims, losses, liabilities or damages resulting from any
claim by the related Advancing Person, except to the extent that such claim,
loss, liability or damage resulted from or arose out of negligence, recklessness
or willful misconduct on the part of the Trustee or the successor Servicer, or
failure by the successor Servicer or the Trustee to remit funds as required by
this Agreement or the commission of an act or omission to act by the successor
Servicer or the Trustee, and the passage of any applicable cure or grace period,
such that an Event of Default under this Agreement occurs or such entity is
subject to termination for cause under this Agreement.

                                   ARTICLE IV

                                  FLOW OF FUNDS

         Section 4.01 Interest Distributions.

         On each Distribution Date, the Trustee shall withdraw from the
Distribution Account the Interest Remittance Amount and apply it in the
following order of priority (based upon the Mortgage Loan information provided
to it in the Remittance Report, upon which the Trustee may conclusively rely),
and the calculations required to be made by the Trustee, to the extent
available:

                           (i)      to the Trustee, the Trustee Fee for such
Distribution Date;

                           (ii)     concurrently, as follows:

                                    (A)      from the Group I Interest
Remittance Amount, sequentially to Component A-IO-1 and the Class AF-1
Certificates, the applicable Accrued Certificate Interest for such Distribution
Date; and

                                    (B)      from the Group II Interest
Remittance Amount, sequentially to Component A-IO-2 and the Class AV-1
Certificates, the applicable Accrued Certificate Interest for such Distribution
Date;

                           (iii)    concurrently, as follows:

                                    (A)      from the Group I Interest
Remittance Amount, sequentially to Component A-IO-1 and the Class AF-1
Certificates, the applicable Interest Carry Forward Amount for such Distribution
Date for Component A-IO-1 and the Class AF-1 Certificates, respectively; and

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                                    (B)      from the Group II Interest
Remittance Amount, sequentially to Component A-IO-2 and the Class AV-1
Certificates, the applicable Interest Carry Forward Amount for such Distribution
Date for Component A-IO-2 and the Class AV-1 Certificates;

                           (iv)     concurrently, as follows:

                                    (A)      if the Group I Interest Remittance
Amount is insufficient to pay the Accrued Certificate Interest and the Interest
Carry Forward Amount to the Class AF-1 Certificates and Component A-IO-1 for
such Distribution Date pursuant to clauses (ii)(A) and (iii)(A) above,
concurrently from the remaining Group II Interest Remittance Amount following
distributions pursuant to clauses (ii)(B) and (iii)(B) above, to Component
A-IO-1 and the Class AF-1 Certificates, sequentially, to cover such shortfall
for such Distribution Date; and

                                    (B)      if the Group II Interest Remittance
Amount is insufficient to pay the Accrued Certificate Interest and the Interest
Carry Forward Amount to the Class AV-1 Certificates and Component A-IO-2 for
such Distribution Date pursuant to clauses (ii)(B) and (iii)(B) above,
concurrently from the remaining Group I Interest Remittance Amount following
distributions pursuant to clauses (ii)(A) and (iii)(A) above, to Component
A-IO-2 and the Class AV-1 Certificates, sequentially, to cover such shortfall
for such Distribution Date;

                           (v)      to the Class M-1 Certificates, the Accrued
Certificate Interest thereon for such Distribution Date;

                           (vi)     to the Class M-2 Certificates, the Accrued
Certificate Interest thereon for such Distribution Date;

                           (vii)    to the Class B-1 Certificates, the Accrued
Certificate Interest thereon for such Distribution Date;

                           (viii)   to the Class B-2 Certificates, the Accrued
Certificate Interest thereon for such Distribution Date;

                           (ix)     to the Class B-3 Certificates, the Accrued
Certificate Interest thereon for such Distribution Date; and

                           (x)      the amount, if any, of the Interest
Remittance Amount remaining after application with respect to the priorities set
forth above will be applied as described under Section 4.02(b) hereof.

         Section 4.02 Distributions of Principal and Monthly Excess Cashflow
Amounts.

                  (a)      On each Distribution Date, the Trustee shall make the
following distributions in the following order of priority (based upon the
Mortgage Loan information provided to it in the Remittance Report), and the
calculations required to be made by the Trustee, to the extent of the Principal
Distribution Amount:

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                           (i)      before the Stepdown Date or with respect to
which a Trigger Event is in effect, sequentially, as follows:

                                    (A)      concurrently, as follows:

                                             (1)   sequentially, the Group I
Principal Distribution Amount to the Class AF-1 Certificates, until the
Certificate Principal Balances thereof have been reduced to zero; and

                                             (2)   sequentially, the Group II
Principal Distribution Amount to the Class AV-1 Certificates, until the
Certificate Principal Balances thereof have been reduced to zero;

                                    (B)      concurrently, as follows:

                                             (1)   the Group I Principal
Distribution Amount remaining after distributions pursuant to priority (A)(1)
above, sequentially, to the Class AV-1 Certificates, until the Certificate
Principal Balances thereof have been reduced to zero; and

                                             (2)   the Group II Principal
Distribution Amount remaining after distributions pursuant to priority (A)(2)
above, sequentially, to the Class AF-1 Certificates, until the Certificate
Principal Balances thereof have been reduced to zero;

                                    (C)      to the Holders of the Class M-1
Certificates, 100% of the remaining Principal Distribution Amount for such
Distribution Date, until the Certificate Principal Balance of the Class M-1
Certificates has been reduced to zero;

                                    (D)      to the Holders of the Class M-2
Certificates, 100% of the remaining Principal Distribution Amount, until the
Certificate Principal Balance of the Class M-2 Certificates has been reduced to
zero;

                                    (E)      to the Holders of the Class B-1
Certificates, 100% of the remaining Principal Distribution Amount, until the
Certificate Principal Balance of the Class B-1 Certificates has been reduced to
zero;

                                    (F)      to the Holders of the Class B-2
Certificates, 100% of the remaining Principal Distribution Amount, until the
Certificate Principal Balance of the Class B-2 Certificates has been reduced to
zero

                                    (G)      to the Holders of the Class B-3
Certificates, 100% of the remaining Principal Distribution Amount, until the
Certificate Principal Balance of the Class B-3 Certificates has been reduced to
zero; and

                                    (H)      any amount of the Principal
Distribution Amount remaining after making all of the distributions in clauses
(A), (B), (C), (D), (E), (F) and (G) shall be applied as set forth in Section
4.02(b).

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                           (ii)     on or after the Stepdown Date and as long as
a Trigger Event is not in effect:

                                    (A)      concurrently as follows:

                                             (1)   sequentially, the Group I
Principal Distribution Amount to the Class AF-1 Certificates, until the
Certificate Principal Balances thereof have been reduced to zero; and

                                             (2)   the Group II Principal
Distribution Amount to the Class AV-1 Certificates, until the Certificate
Principal Balances thereof have been reduced to zero;

                                    (B)      concurrently, as follows:

                                             (1)   the Group I Principal
Distribution Amount remaining after distributions pursuant to priority (A)(1)
above, to the Class AV-1 Certificates, until the Certificate Principal Balances
thereof have been reduced to zero; and

                                             (2)   the Group II Principal
Distribution Amount remaining after distributions pursuant to priority (A)(2)
above, to the Class AF-1 Certificates, until the Certificate Principal Balances
thereof have been reduced to zero;

                                    (C)      the lesser of (x) the excess of (i)
the Principal Distribution Amount over (ii) the sum of the amount distributed to
the Class A Certificates in clauses (A) and (B) above and (y) the Class M-1
Principal Distribution Amount will be distributed to the Class M-1 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero;

                                    (D)      the lesser of (x) the excess of (i)
the Principal Distribution Amount over (ii) the sum of the amount distributed to
the Class A Certificates in clauses (A) and (B) above and the amount distributed
to the Class M-1 Certificates in clause (C) above and (y) the Class M-2
Principal Distribution Amount will be distributed to the Class M-2 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero;

                                    (E)      the lesser of (x) the excess of (i)
the Principal Distribution Amount over (ii) the sum of the amount distributed to
the Class A Certificates pursuant to clauses (A) and (B) above, the amount
distributed to the Class M-1 Certificates pursuant to clause (C) above and the
amount distributed to the Class M-2 Certificates pursuant to clause (D) above
and (y) the Class B-1 Principal Distribution Amount will be distributed to the
Class B-1 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero;

                                    (F)      the lesser of (x) the excess of (i)
the Principal Distribution Amount over (ii) the sum of the amount distributed to
the Class A Certificates pursuant to clauses (A) and (B) above, the amount
distributed to the Class M-1 Certificates pursuant to clause (C) above, the
amount distributed to the Class M-2 Certificates pursuant to clause (D) above
and the amount distributed to the Class B-1 Certificates pursuant to clause (E)

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above and (y) the Class B-2 Principal Distribution Amount will be distributed to
the Class B-2 Certificates, until the Certificate Principal Balance thereof has
been reduced to zero;

                                    (G)      the lesser of (x) the excess of (i)
the Principal Distribution Amount over (ii) the sum of the amount distributed to
the Class A Certificates pursuant to clauses (A) and (B) above, the amount
distributed to the Class M-1 Certificates pursuant to clause (C) above, the
amount distributed to the Class M-2 Certificates pursuant to clause (D) above,
the amount distributed to the Class B-1 Certificates pursuant to clause (E)
above and the amount distributed to the Class B-2 Certificates pursuant to
clause (F) above and (y) the Class B-3 Principal Distribution Amount will be
distributed to the Class B-3 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; and

                                    (H)      any amount of the Principal
Distribution Amount remaining after making all of the distributions in clauses
(A), (B), (C), (D), (E), (F) and (G) above shall be applied as set forth in
Section 4.02(b).

                  (b)      On each Distribution Date, any Monthly Excess
Cashflow Amount shall be distributed, to the extent available, in the following
order of priority on such Distribution Date:

(i) to pay any remaining unpaid Accrued Certificate Interest for such
Distribution Date, pro rata, among the Class AF-1, Class AV-1 and Class A-IO
Certificates;

                           (ii)     to pay the remaining Interest Carry Forward
Amounts for the classes of Class A Certificates, if any, pro rata, among the
Class AF-1, Class AV-1 and Class A-IO Certificates;

                           (iii)    to pay the Extra Principal Distribution
Amount for such Distribution Date in accordance with Section 4.02(a);

                           (iv)     to pay any remaining unpaid Accrued
Certificate Interest for such Distribution Date for the Class M-1 Certificates;

                           (v)      to pay the Class M-1 Interest Carry Forward
Amount, if any;

                           (vi)     to pay the Class M-1 Realized Loss
Amortization Amount for such Distribution Date;

                           (vii)    to pay any remaining unpaid Accrued
Certificate Interest for such Distribution Date for the Class M-2 Certificates;

                           (viii)   to pay the Class M-2 Interest Carry Forward
Amount, if any;

                           (ix)     to pay the Class M-2 Realized Loss
Amortization Amount for such Distribution Date;

                           (x)      to pay any remaining unpaid Accrued
Certificate Interest for such Distribution Date for the Class B-1 Certificates;

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                           (xi)     to pay the Class B-1 Interest Carry Forward
Amount, if any;

                           (xii)    to pay the Class B-1 Realized Loss
Amortization Amount for such Distribution Date;

                           (xiii)   to pay any remaining unpaid Accrued
Certificate Interest for such Distribution Date for the Class B-2 Certificates;

                           (xiv)    to pay the Class B-2 Interest Carry Forward
Amount, if any;

                           (xv)     to pay the Class B-2 Realized Loss
Amortization Amount for such Distribution Date;

                           (xvi)    to pay any remaining unpaid Accrued
Certificate Interest for such Distribution Date for the Class B-3 Certificates;

                           (xvii)   to pay the Class B-3 Interest Carry Forward
Amount, if any;

                           (xviii)  to pay the Class B-3 Realized Loss
Amortization Amount for such Distribution Date;

                           (xix)    to pay the Class R Excess Interest Amount
for such Distribution Date;

                           (xx)     to pay the Class R Excess Interest
Carryforward Amount for such Distribution Date;

                           (xxi)    to the Class AV-1 Certificates, the
aggregate amount of any Carryover Amount due to such Certificates;

                           (xxii)   sequentially, to the Class M-1, Class M-2,
Class B-1, Class B-2 and Class B-3 Certificates, in that order, any Carryover
Amount due to such Certificates;

                           (xxiii)  to pay the Class N Certificates, from the
remaining amount distributable on the Class X/N Interest, (A) the Accrued
Certificate Interest for the Class N Certificates, (B) the unpaid Interest Carry
Forward Amount for the Class N Certificates and (C) any remaining Monthly Excess
Cashflow Amount to reduce the Class N Notional Amount, until the Class N
Notional Amount has been reduced to zero; and

                           (xxiv)   to the Class X Certificates, the Class X
Distributable Amount for such Distribution Date.

         On each Distribution Date, there shall be distributed to the Holders of
the Class R Certificates any remaining amount in the Distribution Account on
such date after the application pursuant to Sections 4.01, 4.02(a),
4.02(b)(i)-(xxiv) and 4.02(c).

                  (c)      On each Distribution Date, all prepayment penalties
(including amounts deposited in connection with the full or partial waiver of
such prepayment penalties pursuant to

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Section 3.01) shall be allocated to the Class N Certificates for so long as the
Notional Amount of the Class N Certificates is greater than zero pursuant to
Section 4.02(b)(xviii) above), and to the Class X Certificates after the Class N
Notional Amount has been reduced to zero.

                  (d)      Any amounts distributed to the Cap Carryover
Certificates in respect of Carryover Amounts pursuant to Sections 4.01(b)(xxi)
and (xxii) shall first be deemed distributed by REMIC 4 as a distribution in
respect of the REMIC 4 Class X/N Interest, then by REMIC 5 in respect of the
REMIC 5 Class X/N Interest and then distributed to the Cap Carryover
Certificates from the Grantor Trust as payments on notional principal contracts
in the nature of cap contracts.

                  (e)      Any amounts distributed to the Class B-1 Certificates
pursuant to Section 4.01 or this Section 4.02, other than Carryover Amounts,
shall be deemed distributed by REMIC 4 in respect of the REMIC 4 B-1 Interest,
then paid to REMIC 6 and distributed thereby as a distribution in respect of the
REMIC 6 B-1 Interest.

                  (f)      Any amounts distributed to the Class B-2 Certificates
pursuant to Section 4.01 or this Section 4.02, other than Carryover Amounts,
shall be deemed distributed by REMIC 4 in respect of the REMIC 4 B-2 Interest,
then paid to REMIC 7 and distributed thereby as a distribution in respect of the
REMIC 7 B-2 Interest.

                  (g)      Any amounts distributed to the Class B-3 Certificates
pursuant to Section 4.01 or this Section 4.02, other than Carryover Amounts,
shall be deemed distributed by REMIC 4 in respect of the REMIC 4 B-3 Interest,
then paid to REMIC 8 and distributed thereby as a distribution in respect of the
REMIC 8 B-3 Interest.

                  (h)      The principal distribution priorities among the Class
A Certificates in Section 4.02(a) will not apply to the Class A Certificates on
any Distribution Date on which the aggregate Certificate Principal Balance of
the Class A Certificates, assuming that 100% of the Principal Remittance Amount
is applied as a principal payment on the Class A Certificates on such
Distribution Date, would exceed the Pool Balance as of the last day of the
related Collection Period. On any such Distribution Date, the Principal
Distribution Amount will be distributed as principal, concurrently, to the Class
A Certificates, pro rata, in accordance with their respective Certificate
Principal Balances immediately prior to that Distribution Date.

         Section 4.03 Allocation of Losses.

         Realized Losses shall be allocated first against the Remaining Initial
Overcollateralization Amount and second to the Subsequent Overcollateralization
Amount, until the Overcollateralization Amount has been reduced to zero. If,
after giving effect to the distribution of the Principal Distribution Amount on
any Distribution Date the aggregate Certificate Principal Balance of the Offered
Certificates exceeds the Pool Balance as of the end of the related Collection
Period, such excess will be allocated against the Class B-3, Class B-2, Class
B-1, Class M-2 and Class M-1 Certificates, in that order, until the respective
Certificate Principal Balances thereof are reduced to zero.

         Special Hazard Losses will be allocated as described above, provided
that if the cumulative amount of such losses, as of any date of determination,
exceeds the greatest of (i) 1.0% of the Pool Balance as of the Cut-off Date,
(ii) two times the amount of the principal

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balance of the largest Mortgage Loan as of the date of determination and (iii)
an amount equal to the aggregate principal balances of the Mortgage Loans in the
largest zip-code concentration in the State of California as of the date of
determination, such losses will be allocated among the Class M-1, Class M-2,
Class B-1, Class B-2 and Class B-3 Certificates, pro rata, based on their
respective Certificate Principal Balances.

         Section 4.04 Method of Distribution.

         The Trustee shall make distributions in respect of a Distribution Date
to each Certificateholder of record on the related Record Date (other than as
provided in Section 10.01 respecting the final distribution), in the case of
Certificateholders of the Certificates, by wire transfer in immediately
available funds to the account of the Person entitled thereto if such Person
shall have so notified the Trustee in writing at least five Business Days prior
to the Record Date immediately prior to such Distribution Date and is the
registered owner of such Certificates the aggregate initial Certificate
Principal Balance or Notional Amount of which is in excess of $5,000,000, or by
check mailed by first class mail to the address of the Person entitled thereto,
as such name and address shall appear on the Certificate Register, provided that
the Trustee may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Distributions among Certificateholders shall be made in
proportion to the Percentage Interests evidenced by the Certificates held by
such Certificateholders.

         Section 4.05 Distributions on Book-Entry Certificates.

         Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, which shall credit the amount of such distribution to
the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the Certificate Owners that it represents and to each indirect
participating brokerage firm (a "brokerage firm" or "indirect participating
firm") for which it acts as agent. Each brokerage firm shall be responsible for
disbursing funds to the Certificate Owners that it represents. All such credits
and disbursements with respect to a Book-Entry Certificate are to be made by the
Depository and the Depository Participants in accordance with the provisions of
the Certificates. None of the Trustee, the Depositor, the Servicer or the Seller
shall have any responsibility therefor except as otherwise provided by
applicable law.

         Section 4.06 Statements.

                  (a)      On each Distribution Date, based, as applicable, on
the Mortgage Loan information contained in the Remittance Report, the Trustee
shall prepare and post on its website at www.usbank.com/abs, a statement as to
the distributions made on such Distribution Date:

                           (i)      the amount of the distribution made on such
Distribution Date to the Holders of each Class of Certificates allocable to
principal or reduction of Notional Amount, separately identified;

                           (ii)     the amount of the distribution made on such
Distribution Date to the Holders of each Class of Certificates allocable to
interest or Class X Distributable Amount, separately identified;

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                           (iii)    the Overcollateralization Amount, the
Overcollateralization Release Amount, the Overcollateralization Deficiency and
the Targeted Overcollateralization Amount as of such Distribution Date and the
Monthly Excess Interest Amount and Monthly Excess Cashflow Amount for such
Distribution Date;

                           (iv)     the aggregate amount of servicing
compensation received by the Servicer during the related Collection Period;

                           (v)      the aggregate amount of Advances for the
related Collection Period;

                           (vi)     the Pool Balance and the Loan Group Balance
for each Loan Group at the close of business at the end of the related
Collection Period;

                           (vii)    separately stated for each Loan Group, the
number, weighted average remaining term to maturity and weighted average
Mortgage Interest Rate of the Mortgage Loans as of the related Due Date;

                           (viii)   separately stated for each Loan Group, the
number and aggregate unpaid principal balance of Mortgage Loans (a) 30 to 59
days past due on a contractual basis, (b) 60 to 89 days past due on a
contractual basis, (c) 90 or more days past due on a contractual basis, (d) as
to which foreclosure proceedings have been commenced and (e) in bankruptcy as of
the close of business on the last day of the calendar month preceding such
Distribution Date;

                           (ix)     separately stated for each Loan Group, with
respect to any Mortgage Loan that became an REO Property during the preceding
calendar month, the loan number of such Mortgage Loan, the unpaid principal
balance and the Principal Balance of such Mortgage Loan as of the date it became
an REO Property;

                           (x)      separately stated for each Loan Group, the
book value of any REO Property as of the close of business on the last Business
Day of the calendar month preceding the Distribution Date, and, cumulatively,
the total number and cumulative principal balance of all REO Properties as of
the close of business of the last day of the preceding Collection Period;

                           (xi)     separately stated for each Loan Group, the
aggregate amount of Principal Prepayments made during the related Prepayment
Period;

                           (xii)    the aggregate amount of prepayment penalties
collected (including amounts deposited in connection with the full or partial
waiver of such prepayment penalties pursuant to Section 3.01) during the related
Collection Period and the amounts thereof allocable to the Class N Certificates
and the Class X Certificates;

                           (xiii)   separately stated for each Loan Group, the
aggregate amount of Realized Losses incurred during the related Collection
Period and the cumulative amount of Realized Losses;

                           (xiv)    the Certificate Principal Balance, or
Notional Amount, as applicable, of each Class of Certificates, after giving
effect to the distributions, and allocations of

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Realized Losses or Applied Realized Loss Amounts, as applicable, made on such
Distribution Date, separately identifying any reduction thereof due to
allocations of Realized Losses or Applied Realized Loss Amounts;

                           (xv)     the Accrued Certificate Interest in respect
of each Class of Offered Certificates for such Distribution Date, separately
identifying the portions thereof attributable to Carryover Amounts, and the
respective portions thereof, if any, remaining unpaid following the
distributions made in respect of such Certificates on such Distribution Date;

                           (xvi)    the aggregate amount of any Prepayment
Interest Shortfalls for such Distribution Date, to the extent not covered by
payments by the Servicer pursuant to Section 3.23;

                           (xvii)   [Reserved];

                           (xviii)  [Reserved];

                           (xix)    the amount of the Trustee Fee paid;

                           (xx)     the Carryover Amounts distributed on such
Distribution Date and the amounts remaining after giving effect to distributions
thereof on such Distribution Date;

                           (xxi)    any Overcollateralization Deficiency after
giving effect to the distribution of principal on such Distribution Date;

                           (xxii)   whether a Trigger Event has occurred and is
continuing, and the cumulative Realized Losses, as a percentage of the original
Pool Balance;

                           (xxiii)  the Available Funds;

                           (xxiv)   the rate at which interest accrues for each
Class of Certificates for such Distribution Date;

                           (xxv)    the Liquidation Report for such Distribution
Date;

                           (xxvi)   the aggregate Principal Balance of Mortgage
Loans purchased by the Servicer or Seller during the related Collection Period
and indicating the Section of this Agreement requiring or allowing the purchase
of each such Mortgage Loan; and

                           (xxvii)  the aggregate Principal Balance of the
Mortgage Loans repurchased by the Servicer (or an affiliate) during the related
Collection Period in connection with Section 3.16.

         Parties that are unable to use http://www.usbank.com/abs are entitled
to have a paper copy mailed to them via first class mail by calling the Trustee
at (800) 934-6802 and indicating such. The Trustee shall have the right to
change the way such statements are distributed in order to make such
distribution more convenient and/or more accessible to the above parties and the

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Trustee shall provide timely and adequate notification to all above parties
regarding any such changes.

         The Trustee may fully rely upon and shall have no liability with
respect to information with respect to the Mortgage Loans provided by the
Servicer.

         In the case of information furnished pursuant to subclauses (i) through
(iii) above, the amounts shall be expressed in a separate section of the report
as a dollar amount for each Class for each $1,000 original dollar amount as of
the Cut-off Date.

                  (b)      Within a reasonable period of time after the end of
each calendar year, the Trustee shall furnish to each Person who at any time
during the calendar year was a Certificateholder of a Regular Certificate, if
requested in writing by such Person, such information as is reasonably necessary
to provide to such Person a statement containing the information set forth in
subclauses (i), (ii), (xv) and (xx) above, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be prepared and furnished
by the Trustee to Certificateholders pursuant to any requirements of the Code as
are in force from time to time.

                  (c)      On each Distribution Date, the Trustee shall make
available to the Residual Certificateholders a copy of the reports made
available to the Regular Certificateholders in respect of such Distribution Date
with such other information as the Trustee deems necessary or appropriate. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be prepared and furnished to
Residual Certificateholders by the Trustee pursuant to any requirements of the
Code as from time to time in force.

         Section 4.07 Remittance Reports; Advances.

                  (a)      On the second Business Day following each
Determination Date but in no event less than four Business Days prior to the
related Distribution Date, the Servicer shall deliver to the Trustee by telecopy
(or by such other means as the Servicer and the Trustee may agree from time to
time) a Remittance Report with respect to the related Distribution Date. On the
same date, the Servicer shall forward to the Trustee by overnight mail a
computer readable magnetic tape or diskette or in such other medium as may be
agreed between the Servicer and the Trustee containing the information set forth
in such Remittance Report with respect to the related Distribution Date. Not
later than the close of business New York time on the Servicer Remittance Date,
the Servicer shall deliver or cause to be delivered to the Trustee in addition
to the information provided on the Remittance Report, such other information
reasonably available to it with respect to the Mortgage Loans as the Trustee may
reasonably request or order in order for the Trustee to perform the calculations
necessary to make the distributions contemplated by Section 4.01, 4.02 and 4.03
and to prepare the statements to Certificateholders contemplated by Section
4.06. The Trustee shall not be responsible to recompute, recalculate or verify
any information provided to it by the Servicer.

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                  (b)      The amount of Advances to be made by the Servicer for
any Distribution Date shall equal, subject to Section 4.07(d), the sum of (i)
the aggregate amount of Monthly Payments (net of the related Servicing Fee), due
during the related Collection Period in respect of the Actuarial Mortgage Loans,
which Monthly Payments were delinquent on a contractual basis as of the close of
business on the related Determination Date and (ii) with respect to each REO
Property, which REO Property was acquired during or prior to the related
Prepayment Period and as to which such REO Property an REO Disposition did not
occur during the related Prepayment Period, an amount equal to the excess, if
any, of the interest portion of Monthly Payments (net of the related Servicing
Fee) that would have been due on the related Due Date in respect of the related
Mortgage Loans, over the net income from such REO Property deposited in the
Collection Account pursuant to Section 3.13 for distribution on such
Distribution Date. For purposes of the preceding sentence, the Monthly Payment
on each Balloon Mortgage Loan with a delinquent Balloon Payment is equal to the
assumed monthly payment that would have been due on the related Due Date based
on the original principal amortization schedule for the such Balloon Mortgage
Loan. The Servicer shall not be obligated to make any Advance with respect to
Simple Interest Mortgage Loans or the principal portion of the Monthly Payments
that would have been due on the related Due Date with respect to REO Properties.

         On or before the close of business New York time on the Servicer
Remittance Date, the Servicer shall remit in immediately available funds to the
Trustee for deposit in the Distribution Account an amount equal to the aggregate
amount of Advances, if any, to be made in respect of the Mortgage Loans and REO
Properties for the related Distribution Date either (i) from its own funds or
(ii) from the Collection Account, to the extent of funds held therein for future
distribution (in which case it will cause to be made an appropriate entry in the
records of the Collection Account that amounts held for future distribution have
been, as permitted by this Section 4.07, used by the Servicer in discharge of
any such Advance) or (iii) in the form of any combination of (i) and (ii)
aggregating the total amount of Advances to be made by the Servicer with respect
to the Mortgage Loans and REO Properties. In addition, the Servicer shall have
the right to reimburse itself for any such Advance from amounts held from time
to time in the Collection Account to the extent such amounts are not then
required to be distributed. Any amounts held for future distribution and so used
shall be appropriately reflected in the Servicer's records and replaced by the
Servicer by deposit in the Collection Account on or before any future Servicer
Remittance Date to the extent that the Available Funds for the related
Distribution Date (determined without regard to Advances to be made on the
Servicer Remittance Date) shall be less than the total amount that would be
distributed to the Classes of Certificateholders pursuant to Section 4.01 and
4.02 on such Distribution Date if such amounts held for future distributions had
not been so used to make Advances. The Trustee will provide notice to the
Servicer by telecopy by the close of business on any Servicer Remittance Date in
the event that the amount remitted by the Servicer to the Trustee on such date
is less than the Advances required to be made by the Servicer for the related
Distribution Date, as set forth in the related Remittance Report.

                  (c)      The obligation of the Servicer to make such Advances
is mandatory, notwithstanding any other provision of this Agreement but subject
to (d) below, and, with respect to any Mortgage Loan or REO Property, shall
continue until the earlier of such time as the Trust acquires title to the
related Mortgaged Property or such Mortgage Loan is paid in full by the
Mortgagor or disposed of by the Trust, or until the recovery of all Liquidation
Proceeds thereon.

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                  (d)      Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Servicer if such Advance would, if made, constitute a Nonrecoverable Advance.
The determination by the Servicer that it has made a Nonrecoverable Advance or
that any proposed Advance, if made, would constitute a Nonrecoverable Advance,
shall be evidenced by an Officers' Certificate of the Servicer delivered to the
Depositor and the Trustee.

         Section 4.08 REMIC Distributions.

                  (a)      REMIC 8. All amounts deemed distributed in respect of
the REMIC 4 B-3 Interest shall be treated as received by REMIC 8 then
distributed by REMIC 8 in respect of the REMIC 8 B-3 Interest. All allocations
of Applied Realized Loss Amounts and Realized Loss Amortization Amounts to the
REMIC 4 B-3 Interest shall result in similar allocations to the REMIC 8 B-3
Interest.

                  (b)      REMIC 7. All amounts deemed distributed in respect of
the REMIC 4 B-2 Interest shall be treated as received by REMIC 7 then
distributed by REMIC 7 in respect of the REMIC 7 B-2 Interest. All allocations
of Applied Realized Loss Amounts and Realized Loss Amortization Amounts to the
REMIC 4 B-2 Interest shall result in similar allocations to the REMIC 7 B-2
Interest

                  (c)      REMIC 6. All amounts deemed distributed in respect of
the REMIC 4 B-1 Interest shall be treated as received by REMIC 6 then
distributed by REMIC 6 in respect of the REMIC 6 B-1 Interest. All allocations
of Applied Realized Loss Amounts and Realized Loss Amortization Amounts to the
REMIC 4 B-1 Interest shall result in similar allocations to the REMIC 6 B-1
Interest

                  (d)      REMIC 5. All amounts deemed distributed in respect of
the REMIC 4 X/N Interest shall be treated as received by REMIC 5 then
distributed by REMIC 5 in respect of the REMIC 5 X/N Interest. All allocations
of Applied Realized Loss Amounts and Realized Loss Amortization Amounts to the
REMIC 4 X/N Interest shall result in similar allocations to the REMIC 5 X/N
Interest.

                  (e)      REMIC 4. On each Distribution Date, REMIC 4 shall be
deemed to have received the amounts deemed distributed in respect of the REMIC 3
Regular Interests and the REMIC 2 IO Interests. Principal, interest, shortfalls
and Realized Losses shall be deemed paid to and allocated among the REMIC 4
Regular Interests in the same manner as such items (other than payments to the
Cap Carryover Certificates in respect of Carryover Amounts, which shall be
deemed paid in respect of the REMIC 4 X/N Interest) are paid or allocated in
respect of the related Certificates (the REMIC 4 AV-1 Interest being related to
the Class AV-1 Certificates, the REMIC 4 M-1 Interest being related to the Class
M-1 Certificates, the REMIC 4 M-2 Interest being related to the Class M-2
Certificates, the REMIC 4 B-1 Interest being related to the Class B-1
Certificates, the REMIC 4 B-2 Interest being related to the Class B-2
Certificates and the REMIC 4 B-3 Interest being related to the Class B-3
Certificates). On each Distribution Date, principal shall be paid to, Realized
Losses shall be allocated to and accrued but unpaid interest shall be added to
the principal amount of the REMIC 4 X/N Interest so that such principal amount
shall equal the excess of (i) the Pool Balance as of the close of the related
Collection

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Period over (ii) the aggregate Certificate Principal Balance of each Class of
Certificates on such Distribution Date after all principal payments have been
made and Realized Losses have been allocated to such Certificates (other than
the Class X or Class N Certificates). The portion of Available Funds remaining
in REMIC 4 on a Distribution Date shall be distributed to the Class R
Certificates in respect of the Class R-4 Interest.

                  (f)      REMIC 3. On each Distribution Date, REMIC 3 shall be
deemed to have received the amounts deemed distributed in respect of the REMIC 2
Regular Interests other than the REMIC 2 IO Interests. Amounts with respect to
interest shall accrue on the REMIC 3 Regular Interests at the rates specified in
the Preliminary Statement. Payments and Realized Losses shall be allocated among
the REMIC 3 Regular Interests so that (i) each of the Marker Interests shall
have a principal balance equal to 25% of the principal balance of the related
REMIC 4 Regular Interest (with the Class AF-1 Certificates being related to the
Class LT3-AF1 Interest, the REMIC 4 AV-1 Interest being related to the Class
LT3-AV1 Interest, the REMIC 4 M-1 Interest being related to the Class LT3-M1
Interest, the REMIC 4 M-2 Interest being related to the Class LT3-M2 Interest,
the REMIC 4 B-1 Interest being related to the Class LT3-B1 Interest, the REMIC 4
B-2 Interest being related to the Class LT3-B2 Interest and the REMIC 4 B-3
Interest being related to the Class LT3-B3 Interest), (ii) the Class LT3-X1
Interest has a principal balance equal to the excess of (x) 50% of the remaining
principal balance of the Mortgage Loans over (y) the aggregate principal balance
of the Marker Interests (if necessary to reflect an increase in
overcollateralization, accrued and unpaid interest on the Class LT3-X1 interest
may be added to its principal amount to achieve this result) and (iii) the
aggregate principal amount of the Class LT3-IA Interest, Class LT3-IB Interest,
Class LT3-IIA Interest, Class LT3-IIB Interest and the Class LT3-X2 Interest
shall equal 50% of the remaining principal balance of the Mortgage loans.
Distributions and Realized Losses allocated to the REMIC 3 Regular Interests
described in clause (iii) of the preceding sentence will be allocated among such
REMIC 3 Regular Interests in the following manner: (x) distributions shall be
deemed made to such REMIC 3 Regular Interests first, so as to keep the principal
balance of the each such REMIC 3 Regular Interest with the designation "B" equal
to .01% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Loan Group; second, to such REMIC 3 Regular Interests with the
designation "A" so that the uncertificated principal balance of each such REMIC
3 Regular Interest is equal to .01% of the excess of (I) the aggregate scheduled
principal balance of the Mortgage Loans in the related Loan Group over (II) the
aggregate principal balance of the Class AF-1 Certificates, in the case of Loan
Group I, or the Class AV-1 Certificates, in the case of Loan Group II (except
that if .01% of any such excess is greater than the principal amount of the
corresponding REMIC 3 Regular Interest with the designation "A", the least
amount of principal shall be distributed to such REMIC 3 Regular Interests with
the designation "A" such that the REMIC 3 Subordinated Balance Ratio is
maintained) and finally, any remaining distributions of principal to the Class
LT3-X2 Interest and (y) Realized Losses shall be allocated among the REMIC 3
Regular Interests described in clause (iii) of the preceding sentence in the
following manner: (x) Realized Losses shall be deemed allocated to such REMIC 3
Regular Interests first, so as to keep the principal balance of the each such
REMIC 3 Regular Interest with the designation "B" equal to .01% of the aggregate
scheduled principal balance of the Mortgage Loans in the related Loan Group;
second, to such REMIC 3 Regular Interests with the designation "A" so that the
uncertificated principal balance of each such REMIC 3 Regular Interest is equal
to .01% of the excess of (I) the aggregate scheduled principal balance of the
Mortgage Loans in the related Loan Group over (II) the aggregate principal
balance of the Class

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AF-1 Certificates, in the case of Loan Group I, or the Class AV-1 Certificates,
in the case of Loan Group II (except that if .01% of any such excess is greater
than the principal amount of the corresponding REMIC 3 Regular Interest with the
designation "A", the least amount of Realized Losses shall be allocated to such
REMIC 3 Regular Interests with the designation "A" such that the REMIC 3
Subordinated Balance Ratio is maintained) and finally, any remaining Realized
Losses to the Class LT3-X2 Interest. Notwithstanding the preceding two
sentences, however, Realized Losses not allocated to any Class of Certificates
will not be allocated to any REMIC 3 Regular Interests. All computations with
respect to the REMIC 3 Regular Interests shall be taken out to eight decimal
places. Any portion of Available Funds remaining in REMIC 3 on a Distribution
Date shall be distributed to the Class R Certificates in respect of the Class
R-3 Interest.

                  (g)      REMIC 2. On each Distribution Date, the REMIC 2
Regular Interests shall receive distributions of interest and principal equal in
the aggregate to amounts distributable pursuant to Sections 4.01 and 4.02 (other
than to the Class R Certificates) from amounts on deposit in the Distribution
Account. Such amounts with respect to interest shall accrue at the rate
specified in the Preliminary Statement with respect to each REMIC 2 Regular
Interest. Any shortfalls of interest on the Group I Mortgage Loans will be
allocated, first, to the Class LT2-I-X Interest, then to the remaining REMIC 2
Regular Interests (other than the REMIC 2 IO Interests) designated with a "I" in
numerical order and finally to the REMIC 2 Regular Interests designated with
both a "I" and an "IO". Any shortfalls of interest on the Group II Mortgage
Loans will be allocated, first, to the Class LT2-II-X Interest, then to the
remaining REMIC 2 Regular Interests (other than the REMIC 2 IO Interests)
designated with a "II" in numerical order and finally to the REMIC 2 Regular
Interests designated with both a "II" and an "IO". Amounts in reduction of
principal balance of the REMIC 2 Regular Interests in respect of Loan Group I
shall be allocated first, to the Class LT2-I-X Interest and then to the
remaining REMIC 2 Regular Interests (other than the REMIC 2 IO Interests) with
the designation "I" in numerical order, so that the principal balance of each
REMIC 2 Regular Interest (other than the REMIC 2 IO Interests) designated with a
"I" is equal to the principal balance of the REMIC 1 Regular Interest designated
with a "I" that has the same numerical designation. Amounts in reduction of
principal balance of the REMIC 2 Regular Interests in respect of Loan Group II
shall be allocated first, to the Class LT2-II-X Interest and then to the
remaining REMIC 2 Regular Interests (other than the REMIC 2 IO Interests) with
the designation "II" in numerical order, so that the principal balance of each
REMIC 2 Regular Interest (other than the REMIC 2 IO Interests) designated with a
"II" is equal to the principal balance of the REMIC 1 Regular Interest
designated with a "II" that has the same numerical designation. Realized Losses
in respect of principal shall be allocated in the same manner as amounts in
reduction of principal balance. Such amounts with respect to principal and any
Realized Losses with respect to principal shall reduce the principal balances of
the REMIC 2 Regular Interests so that (i) in the aggregate, such balances
correspond to the Pool Balance of the Mortgage Loans as of the last day of the
related Due Period, (ii) in the aggregate, the principal balances of the REMIC 2
Regular Interests with the designation "I" correspond to the Pool Balance of the
Group I Mortgage Loans as of the last day of the related Due Period and (iii) in
the aggregate, the principal balances of the REMIC 2 Regular Interests with the
designation "II" correspond to the Pool Balance of the Group II Mortgage Loans
as of the last day of the related Due Period. Amounts in the Distribution
Account deemed distributed in respect of the REMIC 2 Regular Interests shall be
treated as held by REMIC 3 (in the case of amounts deemed distributed in

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respect of REMIC 2 Regular Interests other than the REMIC 2 IO Interests) and by
REMIC 4 (in the case of amounts deemed distributed in respect of the REMIC 2 IO
Interests) for distribution in accordance with Section 4.08(f) and Section
4.08(e) respectively. Any amounts remaining in REMIC 2 on a Distribution Date
shall be distributed to the Class R Certificates in respect of the Class R-2
Interest.

                  (h)      REMIC 1. On each Distribution Date, the REMIC 1
Regular Interests shall receive distributions of interest and principal equal in
the aggregate to amounts distributable pursuant to Sections 4.01 and 4.02 (other
than to the Class R Certificates) from amounts on deposit in the Distribution
Account. Such amounts with respect to interest shall accrue at the rate
specified in the Preliminary Statement with respect to each REMIC 1 Regular
Interest. Any shortfalls of interest on the Group I Mortgage Loans will be
allocated, first, to the Class LT1-I-X Interest then to the remaining REMIC 1
Regular Interests designated with a "I" in numerical order. Any shortfalls of
interest on the Group II Mortgage Loans will be allocated, first, to the Class
LT1-II-X Interest then to the remaining REMIC 1 Regular Interests designated
with a "II" in numerical order. Amounts in reduction of principal balance of the
REMIC 1 Regular Interests in respect of Loan Group I shall be allocated first,
to the Class LT1-I-X Interest and then to the remaining REMIC 1 Regular
Interests with the designation "I" in numerical order. Amounts in reduction of
principal balance of the REMIC 1 Regular Interests in respect of Loan Group II
shall be allocated first, to the Class LT1-II-X Interest and then to the
remaining REMIC 1 Regular Interests with the designation "II" in numerical
order. Realized Losses in respect of principal shall be allocated in the same
manner as amounts in reduction of principal balance. Such amounts with respect
to principal and any Realized Losses with respect to principal shall reduce the
principal balances of the REMIC 1 Regular Interests so that (i) in the
aggregate, such balances correspond to the Pool Balance of the Mortgage Loans as
of the last day of the related Due Period, (ii) in the aggregate, the principal
balances of the REMIC 1 Regular Interests with the designation "I" correspond to
the Pool Balance of the Group I Mortgage Loans as of the last day of the related
Due Period and (iii) in the aggregate, the principal balances of the REMIC 1
Regular Interests with the designation "II" correspond to the Pool Balance of
the Group II Mortgage Loans as of the last day of the related Due Period.
Amounts in the Distribution Account deemed distributed in respect of the REMIC 1
Regular Interests shall be treated as held by REMIC 2 for distribution in
accordance with Section 4.08(g). Any amounts remaining in REMIC 1 on a
Distribution Date shall be distributed to the Class R Certificates in respect of
the Class R-1 Interest.

                  (i)      All prepayment penalties (including amounts deposited
in connection with the full or partial waiver of prepayment penalties pursuant
to Section 3.01) shall be distributed from REMIC 1 to REMIC 2 in respect of the
LT1-I-30 Interest (in the case or prepayment penalties in respect of Group I
Mortgage Loans) or the Class LT1-II-30 Interest (in the case of prepayment
penalties in respect of Group II Mortgage Loans), from REMIC 2 to REMIC 3 in
respect of the Class LT2-I-30 Interest (in the case of prepayment penalties in
respect of Group I Mortgage Loans) or the Class LT2-II-30 Interest (in the case
of prepayment penalties in respect of Group II Mortgage Loans), from REMIC 3 to
REMIC 4 in respect of the Class LT3-X1 Interest, from REMIC 4 to REMIC 5 in
respect of the REMIC 4 X/N Interest, and from REMIC 5 to the Class X/N Interest
in respect of the REMIC 5 X/N Interest.

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                  (j)      Notwithstanding anything to the contrary contained
herein, the above distributions in this Section 4.08 (other than on the
Certificates) are deemed distributions, and distributions of funds from the
Distribution Account shall be made only in accordance with Sections 4.01 and
4.02 hereof.

                                   ARTICLE V

                                THE CERTIFICATES

         Section 5.01 The Certificates.

         Each of the Class AF-1, Class AV-1, Class A-IO, Class M-1, Class M-2,
Class B-1, Class B-2, Class B-3, Class N, Class X, Class R and Class R-X
Certificates shall be substantially in the forms annexed hereto as exhibits, and
shall, on original issue, be executed by the Trustee and authenticated and
delivered by the Certificate Registrar to or upon the receipt of a Written Order
to Authenticate from the Depositor concurrently with the sale and assignment to
the Trustee of the Trust Fund. Each Class of the Offered Certificates shall be
initially evidenced by one or more Certificates representing a Percentage
Interest with a minimum dollar (or notional amount) denomination of $25,000 and
integral multiples of $1 in excess thereof. The Class N, Class X and Class R
Certificates are issuable only in minimum Percentage Interests of 10%. The Class
R-X Certificates are issuable only in minimum Percentage Interests of 50%.

         The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature on behalf of the Trustee by a Responsible Officer.
Certificates bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures were affixed, authorized to sign on behalf of
the Trustee shall bind the Trust, notwithstanding that such individuals or any
of them have ceased to be so authorized prior to the authentication and delivery
of such Certificates or did not hold such offices at the date of such
Certificate. No Certificate shall be entitled to any benefit under this
Agreement or be valid for any purpose, unless such Certificate shall have been
manually authenticated by the Certificate Registrar substantially in the form
provided for herein, and such authentication upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. Subject to Section 5.02(c), the Offered Certificates
shall be Book-Entry Certificates. The Class N, Class X, Class R and Class R-X
Certificates shall not be Book-Entry Certificates but shall be issued in fully
registered certificate form.

         Section 5.02 Registration of Transfer and Exchange of Certificates.

                  (a)      The Certificate Registrar shall cause to be kept at
the Corporate Trust Office of the Trustee a Certificate Register in which,
subject to such reasonable regulations as it may prescribe, the Certificate
Registrar shall provide for the registration of Certificates and of transfers
and exchanges of Certificates as herein provided. The Trustee shall initially
serve as Certificate Registrar for the purpose of registering Certificates and
transfers and exchanges of Certificates as herein provided. The Trustee as
Certificate Registrar shall be subject to the same standards of care,
limitations on liability and rights to indemnity as the Trustee, and the
provisions of Sections 8.01, 8.02, 8.03, 8.04, 8.05, 8.14, 8.15 and 8.16 shall
apply to the

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Certificate Registrar to the same extent as they apply to the Trustee. Any
Certificate Registrar appointed in accordance with this Section 5.02(a) may at
any time resign by giving at least 30 days' advance written notice of
resignation to the Trustee, the Servicer and the Depositor, such resignation to
become effective upon appointment of a successor Certificate Registrar.

         Upon surrender for registration of transfer of any Certificate at any
office or agency of the Certificate Registrar maintained for such purpose
pursuant to the foregoing paragraph and, in the case of a Residual Certificate,
upon satisfaction of the conditions set forth below, the Trustee on behalf of
the Trust shall execute and the Certificate Registrar shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Certificates of the same aggregate Percentage Interest.

         At the option of the Certificateholders, Certificates may be exchanged
for other Certificates in authorized denominations and the same aggregate
Percentage Interests, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for
exchange, the Trustee shall execute on behalf of the Trust and the Certificate
Registrar shall authenticate and deliver the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for registration of transfer or exchange shall (if so
required by the Trustee or the Certificate Registrar) be duly endorsed by, or be
accompanied by a written instrument of transfer satisfactory to the Trustee and
the Certificate Registrar duly executed by, the Holder thereof or his attorney
duly authorized in writing.

                  (b)      Upon original issuance, the Book-Entry Certificates
shall be issued in the form of one or more typewritten certificates, to be
delivered to the Depository, the initial Depository, by, or on behalf of, the
Depositor; or to, and deposited with the Certificate Custodian, on behalf of the
Depository, if directed to do so pursuant to instructions from the Depository.
Except as provided in paragraph (c) below, the Book-Entry Certificates shall at
all times remain registered in the name of the Depository or its nominee and at
all times: (i) registration of such Certificates may not be transferred by the
Trustee except to another Depository; (ii) the Depository shall maintain
book-entry records with respect to the Certificate Owners and with respect to
ownership and transfers of such Certificates; (iii) ownership and transfers of
registration of such Certificates on the books of the Depository shall be
governed by applicable rules established by the Depository; (iv) the Depository
may collect its usual and customary fees, charges and expenses from its
Depository Participants; (v) the Trustee shall for all purposes deal with the
Depository as representative of the Certificate Owners of the Certificates for
purposes of exercising the rights of Holders under this Agreement, and requests
and directions for and votes of such representative shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; (vi)
the Trustee may rely and shall be fully protected in relying upon information
furnished by the Depository with respect to its Depository Participants and
furnished by the Depository Participants with respect to indirect participating
firms and Persons shown on the books of such indirect participating firms as
direct or indirect Certificate Owners; and (vii) the direct participants of the
Depository shall have no rights under this Agreement under or with respect to
any of the Certificates held on their behalf by the Depository, and the
Depository may be treated by the Trustee and their agents, employees, officers
and directors as the absolute owner of the Certificates for all purposes
whatsoever.

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         All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owners. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners
that it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The parties hereto are
hereby authorized to execute a Letter of Representations with the Depository or
take such other action as may be necessary or desirable to register a Book-Entry
Certificate to the Depository. In the event of any conflict between the terms of
any such Letter of Representation and this Agreement, the terms of this
Agreement shall control.

                  (c)      If (i)(x) the Depository or the Depositor advises the
Trustee in writing that the Depository is no longer willing or able to discharge
properly its responsibilities as Depository and (y) the Trustee or the Depositor
is unable to locate a qualified successor, (ii) the Depositor, at its sole
option, with the consent of the Trustee, elects to terminate the book-entry
system through the Depository or (iii) after the occurrence of a Servicer Event
of Termination, the Certificate Owners of each Class of Book-Entry Certificates
representing Percentage Interests of such Classes aggregating not less than 51%
advises the Trustee and Depository through the Financial Intermediaries and the
Depository Participants in writing that the continuation of a book-entry system
through the Depository to the exclusion of definitive, fully registered
certificates (the "Definitive Certificates") to Certificate Owners is no longer
in the best interests of the Certificate Owners. Upon surrender to the
Certificate Registrar of the Book-Entry Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall, at the Depositor's expense, in the case of (ii) above, or the
Seller's expense, in the case of (i) and (iii) above, execute on behalf of the
Trust and the Certificate Registrar shall authenticate the Definitive
Certificates. Neither the Depositor nor the Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. Upon the issuance of Definitive
Certificates, the Trustee, the Certificate Registrar, the Servicer, any Paying
Agent and the Depositor shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

                  (d)      No transfer, sale, pledge or other disposition of any
Private Certificate shall be made unless such disposition is exempt from the
registration requirements of the Securities Act of 1933, as amended (the "1933
Act"), and any applicable state securities laws or is made in accordance with
the 1933 Act and laws. In the event of any such transfer, other than the initial
transfer of the Private Certificates by the Depositor, (i) unless such transfer
is made in reliance upon Rule 144A (as evidenced by the investment letter
delivered to the Certificate Registrar, in substantially the form attached
hereto as Exhibit J) under the 1933 Act, the Certificate Registrar and the
Depositor may require a written Opinion of Counsel (which may be in-house
counsel) acceptable to and in form and substance reasonably satisfactory to the
Certificate Registrar and the Depositor that such transfer may be made pursuant
to an exemption, describing the applicable exemption and the basis therefor,
from the 1933 Act or is being made pursuant to the 1933 Act, which Opinion of
Counsel shall not be an expense of the Certificate Registrar, the Trustee or the
Depositor or (ii) the Certificate Registrar shall require the transferor to
execute a transferor certificate (in substantially the form attached hereto as
Exhibit L) and the transferee to execute an investment letter (in substantially
the form attached hereto as Exhibit J) acceptable to and in form and substance
reasonably satisfactory to the Depositor and the Certificate Registrar
certifying to the Depositor and the Certificate Registrar the facts

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surrounding such transfer, which investment letter shall not be an expense of
the Certificate Registrar or the Depositor. The Holder of a Private Certificate
desiring to effect such transfer shall, and does hereby agree to, indemnify the
Certificate Registrar and the Depositor against any liability that may result if
the transfer is not so exempt or is not made in accordance with such federal and
state laws.

         No transfer of an ERISA-Restricted Certificate shall be made unless the
Certificate Registrar shall have received either (i) a representation from the
transferee of such Certificate, acceptable to and in form and substance
satisfactory to the Certificate Registrar and the Depositor, (such requirement
is satisfied only by the Certificate Registrar's receipt of a representation
letter from the transferee substantially in the form of Exhibit I hereto, as
appropriate), to the effect that such transferee is not an employee benefit plan
or arrangement subject to Title I of ERISA or a plan subject to Section 4975 of
the Code or provisions of other federal, state or local law substantially
similar to the foregoing provisions of ERISA or the Code ("Similar Law"), nor a
person acting on behalf of any such plan or arrangement nor using the assets of
any such plan or arrangement to effect such transfer or (ii) (except in the case
of a Class R, Class R-X, Class X or Class N Certificate), a representation that
the purchaser is an insurance company which is purchasing such Certificates with
funds contained in an "insurance company general account" (as such term is
defined in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60") and that the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60 or (iii) (except in the case of a Class R or
Class R-Q Certificate) in the case of any such ERISA Restricted Certificate
presented for registration in the name of an employee benefit plan subject to
Title I of ERISA or a plan or arrangement subject to Section 4975 of the Code
(or comparable provisions of any subsequent enactments or Similar Law), or a
trustee of any such plan or any other person acting on behalf of any such plan
or arrangement or using such plan's or arrangement's assets, an Opinion of
Counsel satisfactory to the Certificate Registrar, to the effect that the
purchase and holding of such ERISA Restricted Certificate will not result in the
assets of the Trust being deemed to be "plan assets" and subject to the
prohibited transaction provisions of ERISA, the Code or Similar Law and will not
subject the Certificate Registrar or the Trustee to any obligation in addition
to those expressly undertaken in this Agreement or to any liability. For
purposes of the Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3
Certificates, the representations in clause (i) or (ii) of the preceding
sentence shall be deemed to have been made to the Certificate Registrar by the
acceptance by a Certificate Owner of the beneficial interest in any such Class
of ERISA-Restricted Certificates, unless the Certificate Registrar shall have
received from the transferee an alternative representation acceptable in form
and substance to the Certificate Registrar and the Depositor. Notwithstanding
anything else to the contrary herein, any purported transfer of an
ERISA-Restricted Certificate to or on behalf of an employee benefit plan subject
to ERISA, the Code or Similar Law without the delivery to the Certificate
Registrar of an Opinion of Counsel satisfactory to the Certificate Registrar as
described above shall be void and of no effect.

         Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions and to
have irrevocably appointed the Depositor or its designee as its attorney-in-fact
to negotiate the terms of any mandatory sale under clause (v) below and to
execute all instruments of transfer and to do all other things necessary in

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connection with any such sale, and the rights of each Person acquiring any
Ownership Interest in a Residual Certificate are expressly subject to the
following provisions:

                           (i)      Each Person holding or acquiring any
Ownership Interest in a Residual Certificate shall be a Permitted Transferee and
shall promptly notify the Certificate Registrar of any change or impending
change in its status as a Permitted Transferee.

                           (ii)     No Person shall acquire an Ownership
Interest in a Residual Certificate unless such Ownership Interest is a pro rata
undivided interest.

                           (iii)    In connection with any proposed transfer of
any Ownership Interest in a Residual Certificate, the Certificate Registrar
shall as a condition to registration of the transfer, require delivery to it, in
form and substance satisfactory to it, of each of the following:

                                    (A)      an affidavit in the form of Exhibit
K hereto from the proposed transferee to the effect that, among other things,
such transferee is a Permitted Transferee and that it is not acquiring its
Ownership Interest in the Residual Certificate that is the subject of the
proposed transfer as a nominee, trustee or agent for any Person who is not a
Permitted Transferee; and

                                    (B)      a covenant of the proposed
transferee to the effect that the proposed transferee agrees to be bound by and
to abide by the transfer restrictions applicable to the Residual Certificates.

                           (iv)     Any attempted or purported transfer of any
Ownership Interest in a Residual Certificate in violation of the provisions of
this Section shall be absolutely null and void and shall vest no rights in the
purported transferee. If any purported transferee shall, in violation of the
provisions of this Section, become a Holder of a Residual Certificate, then the
prior Holder of such Residual Certificate that is a Permitted Transferee shall,
upon discovery that the registration of transfer of such Residual Certificate
was not in fact permitted by this Section, be restored to all rights as Holder
thereof retroactive to the date of registration of transfer of such Residual
Certificate. The Certificate Registrar shall be under no liability to any Person
for any registration of transfer of a Residual Certificate that is in fact not
permitted by this Section or for making any distributions due on such Residual
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the Certificate
Registrar received the documents specified in clause (iii). The Trustee shall be
entitled to recover from any Holder of a Residual Certificate that was in fact
not a Permitted Transferee at the time such distributions were made all
distributions made on such Residual Certificate. Any such distributions so
recovered by the Trustee shall be distributed and delivered by the Trustee to
the prior Holder of such Residual Certificate that is a Permitted Transferee.

                           (v)      If any Person other than a Permitted
Transferee acquires any Ownership Interest in a Residual Certificate in
violation of the restrictions in this Section, then the Certificate Registrar
shall have the right but not the obligation, without notice to the Holder of
such Residual Certificate or any other Person having an Ownership Interest
therein, to notify the Depositor to arrange for the sale of such Residual
Certificate. The proceeds of such sale, net

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of commissions (which may include commissions payable to the Depositor or its
affiliates in connection with such sale), expenses and taxes due, if any, will
be remitted by the Trustee to the previous Holder of such Residual Certificate
that is a Permitted Transferee, except that in the event that the Trustee
determines that the Holder of such Residual Certificate may be liable for any
amount due under this Section or any other provisions of this Agreement, the
Trustee may withhold a corresponding amount from such remittance as security for
such claim. The terms and conditions of any sale under this clause (v) shall be
determined in the sole discretion of the Trustee and it shall not be liable to
any Person having an Ownership Interest in a Residual Certificate as a result of
its exercise of such discretion.

                           (vi)     If any Person other than a Permitted
Transferee acquires any Ownership Interest in a Residual Certificate in
violation of the restrictions in this Section, then the Trustee will provide to
the Internal Revenue Service, and to the persons specified in Sections
860E(e)(3) and (6) of the Code, information needed to compute the tax imposed
under Section 860E(e)(5) of the Code on transfers of residual interests to
disqualified organizations. The Trustee shall be entitled to reasonable
compensation for providing such information from the person to whom it is
provided.

The foregoing provisions of this Section shall cease to apply to transfers
occurring on or after the date on which there shall have been delivered to the
Certificate Registrar, in form and substance satisfactory to the Certificate
Registrar, (i) written notification from each Rating Agency that the removal of
the restrictions on Transfer set forth in this Section will not cause such
Rating Agency to downgrade its rating of the Certificates and (ii) an Opinion of
Counsel to the effect that such removal will not cause any REMIC hereunder to
fail to qualify as a REMIC.

                  (e)      No service charge shall be made for any registration
of transfer or exchange of Certificates of any Class, but the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

         All Certificates surrendered for registration of transfer or exchange
shall be cancelled by the Certificate Registrar and disposed of pursuant to its
standard procedures.

         Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

         If (i) any mutilated Certificate is surrendered to the Certificate
Registrar or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate and (ii) there is delivered to
the Trustee, the Depositor and the Certificate Registrar such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or the Certificate Registrar that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute on behalf of the Trust, and the Certificate Registrar shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Certificate, a new Certificate of like tenor and Percentage Interest.
Upon the issuance of any new Certificate under this Section, the Trustee or the
Certificate Registrar may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee and the
Certificate Registrar) in connection therewith. Any duplicate Certificate issued
pursuant to this

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Section, shall constitute complete and indefeasible evidence of ownership in the
Trust, as if originally issued, whether or not the lost, stolen or destroyed
Certificate shall be found at any time.

         Section 5.04 Persons Deemed Owners.

         The Servicer, the Depositor, the Trustee, the Certificate Registrar,
any Paying Agent and any agent of the Servicer, the Depositor, the Certificate
Registrar, any Paying Agent or the Trustee may treat the Person, including a
Depository, in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving distributions pursuant to Section 4.01
and 4.02 and for all other purposes whatsoever, and none of the Servicer, the
Trust, the Trustee, any Paying Agent nor any agent of any of them shall be
affected by notice to the contrary.

         Section 5.05 Appointment of Paying Agent.

         The Paying Agent shall make distributions to Certificateholders from
the Distribution Account pursuant to Section 4.01 and 4.02 and shall report the
amounts of such distributions to the Trustee. The duties of the Paying Agent may
include the obligation (i) to withdraw funds from the Collection Account
pursuant to Section 3.05 and for the purpose of making the distributions
referred to above and (ii) to distribute statements and provide information to
Certificateholders as required hereunder. The Paying Agent hereunder shall at
all times be an entity duly incorporated and validly existing under the laws of
the United States of America or any state thereof, authorized under such laws to
exercise corporate trust powers and subject to supervision or examination by
federal or state authorities. The Paying Agent shall initially be the Trustee.
The Trustee may appoint a successor to act as Paying Agent, which appointment
shall be reasonably satisfactory to the Depositor and the Rating Agencies. The
Trustee as Paying Agent shall be subject to the same standards of care,
limitations on liability and rights to indemnity as the Trustee, and the
provisions of Sections 8.01, 8.02, 8.03, 8.04, 8.05, 8.14, 8.15 and 8.16 shall
apply to the Paying Agent to the same extent as they apply to the Trustee. Any
Paying Agent appointed in accordance with this Section 5.05 may at any time
resign by giving at least 30 days' advance written notice of resignation to the
Trustee, the Servicer and the Depositor, such resignation to become effective
upon appointment of a successor Paying Agent.

                                   ARTICLE VI

                   THE SELLER, THE SERVICER AND THE DEPOSITOR

         Section 6.01 Liability of the Seller, the Servicer and the Depositor.

         The Seller and the Servicer shall be liable in accordance herewith only
to the extent of the obligations specifically imposed upon and undertaken by the
Seller or Servicer, as the case may be, herein. The Depositor shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
upon and undertaken by the Depositor.

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         Section 6.02 Merger or Consolidation of, or Assumption of the
Obligations of, the Seller, the Servicer or the Depositor.

         Any entity into which the Seller, the Servicer or the Depositor may be
merged or consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Seller, the Servicer or the Depositor shall be a
party, or any corporation succeeding to the business of the Seller, the Servicer
or the Depositor, shall be the successor of the Seller, the Servicer or the
Depositor, as the case may be, hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding; provided, however, that the successor
Servicer shall satisfy all the requirements of Section 7.02 with respect to the
qualifications of a successor Servicer.

         Section 6.03 Limitation on Liability of the Servicer and Others.

         Neither the Servicer nor any of the directors or officers or employees
or agents of the Servicer shall be under any liability to the Trust or the
Certificateholders for any action taken or for refraining from the taking of any
action by the Servicer in good faith pursuant to this Agreement, or for errors
in judgment; provided, however, that this provision shall not protect the
Servicer or any such Person against any liability which would otherwise be
imposed by reason of its willful misfeasance, bad faith or gross negligence in
the performance of duties of the Servicer or by reason of its reckless disregard
of its obligations and duties of the Servicer hereunder; provided, further, that
this provision shall not be construed to entitle the Servicer to indemnity in
the event that amounts advanced by the Servicer to retire any senior lien exceed
Liquidation Proceeds (in excess of related liquidation expenses) realized with
respect to the related Mortgage Loan. The Servicer and any director or officer
or employee or agent of the Servicer may rely in good faith on any document of
any kind prima facie properly executed and submitted by any Person respecting
any matters arising hereunder. The Servicer and any director or officer or
employee or agent of the Servicer shall be indemnified by the Trust and held
harmless against any loss, liability or expense incurred in connection with any
legal action relating to this Agreement or the Certificates, other than any
loss, liability or expense incurred by reason of its willful misfeasance, bad
faith or negligence in the performance of duties hereunder or by reason of its
reckless disregard of obligations and duties hereunder. The Servicer may
undertake any such action which it may deem necessary or desirable in respect of
this Agreement, and the rights and duties of the parties hereto and the
interests of the Certificateholders hereunder. In such event, the reasonable
legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Trust and the Servicer shall be
entitled to pay such expenses from the proceeds of the Trust or to be reimbursed
therefor pursuant to Section 3.05 upon presentation to the Trustee of
documentation of such expenses, costs and liabilities. The Servicer's right to
indemnity or reimbursement pursuant to this Section shall survive any
resignation or termination of the Servicer pursuant to Section 6.04 or 7.01 with
respect to any losses, expenses, costs or liabilities arising prior to such
resignation or termination (or arising from events that occurred prior to such
resignation or termination). This paragraph shall apply to the Servicer solely
in its capacity as Servicer hereunder and in no other capacities.

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         Section 6.04 Servicer Not to Resign.

         Subject to the provisions of Section 7.01 and Section 6.02, the
Servicer shall not resign from the obligations and duties hereby imposed on it
except (i) upon determination that the performance of its obligations or duties
hereunder are no longer permissible under applicable law or are in material
conflict by reason of applicable law with any other activities carried on by it
or its subsidiaries or Affiliates, the other activities of the Servicer so
causing such a conflict being of a type and nature carried on by the Servicer or
its subsidiaries or Affiliates at the date of this Agreement or (ii) upon
satisfaction of the following conditions: (a) the Servicer has proposed a
successor servicer to the Trustee in writing and such proposed successor
servicer is reasonably acceptable to the Trustee; and (b) each Rating Agency
shall have delivered a letter to the Trustee prior to the appointment of the
successor servicer stating that the proposed appointment of such successor
servicer as Servicer hereunder will not result in the reduction or withdrawal of
the then current rating of the Regular Certificates or the ratings that are in
effect; provided, however, that no such resignation by the Servicer shall become
effective until such successor servicer or, in the case of (i) above, the
Trustee shall have assumed the Servicer's responsibilities and obligations
hereunder or the Trustee shall have designated a successor servicer in
accordance with Section 7.02. Any such resignation shall not relieve the
Servicer of responsibility for any of the obligations specified in Sections 7.01
and 7.02 as obligations that survive the resignation or termination of the
Servicer. Any such determination permitting the resignation of the Servicer
pursuant to clause (i) above shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee.

         The Trustee and the Depositor hereby specifically (i) consent to the
pledge and assignment by the Servicer of all the Servicer's right, title and
interest in, to and under this Agreement to the Servicing Rights Pledgee, for
the benefit of certain lenders, and (ii) provided that no Servicer Event of
Termination exists, agree that upon delivery to the Trustee by the Servicing
Rights Pledgee of a letter signed by the Servicer whereunder the Servicer shall
resign as Servicer under this Agreement, the Trustee shall appoint the Servicing
Rights Pledgee or its designee as successor Servicer, provided that at the time
of such appointment, the Servicing Rights Pledgee or such designee meets the
requirements of a successor Servicer pursuant to Section 7.02(a) and agrees to
be subject to the terms of this Agreement. If, pursuant to any provision hereof,
the duties of the Servicer are transferred to a successor, the entire amount of
the Servicing Fee and other compensation payable to the Servicer pursuant hereto
shall thereafter be payable to such successor.

         Section 6.05 Delegation of Duties.

                  (a)      In the ordinary course of business, the Servicer at
any time may delegate any of its duties hereunder to any Person, including any
of its Affiliates, who agrees to conduct such duties in accordance with
standards comparable to those set forth in Section 3.01. Such delegation shall
not relieve the Servicer of its liabilities and responsibilities with respect to
such duties and shall not constitute a resignation within the meaning of Section
6.04. The Servicer shall provide the Trustee and the Rating Agencies with 60
days prior written notice prior to the delegation of any of its duties to any
Person other than any of the Servicer's Affiliates or their respective
successors and assigns.

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                  (b)      The Servicer is hereby authorized to enter into a
financing or other facility (any such arrangement, an "Advance Facility"), the
documentation for which complies with Section 6.05(d) below, under which (1) the
Servicer assigns or pledges its rights under this Agreement to be reimbursed for
any or all Advances and/or Servicing Advances to (i) a special-purpose
bankruptcy-remote entity (an "SPV") (or to a Person, who simultaneously assigns
or pledges such rights to an SPV) or (ii) a lender (a "Lender"), which, in the
case of an SPV, in turn, directly or through other assignees and/or pledgees,
assigns or pledges such rights to a Person, which may include a trustee acting
on behalf of holders of debt instruments (any such Person or any such Lender, an
"Advance Financing Person"), and/or (2) an Advance Financing Person agrees to
fund all Advances and/or Servicing Advances required to be made by the Servicer
pursuant to this Agreement. No consent of the Trustee, Certificateholders or any
other party shall be required before the Servicer may enter into an Advance
Facility nor shall the Trustee or the Certificateholders be a third party
beneficiary of any obligation of an Advance Financing Person to the Servicer.
Notwithstanding the existence of any Advance Facility under which an Advance
Financing Person agrees to fund Advances and/or Servicing Advances, (A) the
Servicer (i) shall remain obligated pursuant to this Agreement to make Advances
and/or Servicing Advances pursuant to and as required by this Agreement and (ii)
shall not be relieved of such obligations by virtue of such Advance Facility and
(B) neither the Advance Financing Person nor any Servicer's Assignee (as
hereinafter defined) shall have any right to proceed against or otherwise
contact any Mortgagor for the purpose of collecting any payment that may be due
with respect to any related Mortgage Loan or enforcing the covenant of such
Mortgagor under the related Mortgage Loan documents.

                  (c)      If the Servicer enters into an Advance Facility, the
Servicer and the related Advance Financing Person shall deliver to the Trustee
at the address set forth in Section 11.05 hereof a written notice (an "Advance
Facility Notice"), stating (a) the identity of the Advance Financing Person and
(b) the identity of the Person (the "Servicer's Assignee") that will, subject to
Section 6.05(d) hereof, have the right to receive amounts available from the
Collection Account pursuant to Section 3.05 hereof to reimburse previously
unreimbursed Advances and/or Servicing Advances ("Advance Reimbursement
Amounts"). Advance Reimbursement Amounts (i) shall consist solely of amounts in
respect of Advances and/or Servicing Advances for which the Servicer would be
permitted to reimburse itself in accordance with Section 3.05 hereof, assuming
the Servicer had made the related Advance(s) and/or Servicing Advance(s) and
(ii) shall not consist of amounts payable to a successor Servicer in accordance
with Section 3.05 hereof to the extent permitted under Section 6.05(e) below.

                  (d)      Notwithstanding the existence of an Advance Facility,
the Servicer, on behalf of the Advance Facility Person and the Servicer's
Assignee, shall be entitled to receive reimbursements of Advances and/or
Servicing Advances in accordance with Section 3.11 hereof, which entitlement may
be terminated by the Advance Financing Person pursuant to a written notice to
the Trustee in the manner set forth in Section 11.05 hereof. Upon receipt of
such written notice, the Servicer shall no longer be entitled to receive
reimbursement for any Advance Reimbursement Amounts and the Servicer's Assignee
shall immediately have the right to receive from the Collection Account all
Advance Reimbursement Amounts to the same extent as the Servicer would have been
entitled to receive reimbursement. An Advance Facility may be terminated by the
joint written direction of the Servicer and the related Advance Financing
Person. Written notice of such termination shall be delivered to the Trustee in
the manner set

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<PAGE>

forth in Section 11.05 hereof. None of the Depositor or the Trustee shall, as a
result of the existence of any Advance Facility, have any additional duty or
liability with respect to the calculation or payment of any Advance
Reimbursement Amount, nor, as a result of the existence of any Advance Facility,
shall the Depositor or the Trustee have any additional responsibility to track
or monitor the administration of the Advance Facility or the payment of Advance
Reimbursement Amounts to the Servicer's Assignee. The Servicer shall indemnify
the Depositor, the Trustee, any successor Servicer and the Trust Fund resulting
from any claim by the related Advancing Financing Person, except to the extent
that such claim, loss, liability or damage resulted from or arose out of
negligence, recklessness or willful misconduct on the part of the Depositor, the
Trustee or any successor Servicer, as the case may be, or failure by the
successor Servicer or the Trustee to remit funds as required by this Agreement
or the commission of an act or omission to act by the successor Servicer or the
Trustee, as the case may be, and the passage of any applicable cure or grace
period, such that a Servicer Termination Event under this Agreement occurs or
such entity is subject to termination for cause under this Agreement. The
Servicer shall maintain and provide to any successor Servicer and, upon request,
the Trustee a detailed accounting on a loan-by-loan basis as to amounts advanced
by, pledged or assigned to, and reimbursed to any Advancing Financing Person.
The successor Servicer shall be entitled to rely on any such information
provided by the predecessor Servicer, and the successor Servicer shall not be
liable for any errors in such information.

                  (e)      As between a predecessor Servicer and its Advance
Financing Person, on the one hand, and a successor Servicer and its Advance
Financing Person, on the other hand, Advance Reimbursement Amounts with respect
to each Mortgage Loan as to which an Advance and/or Servicing Advance shall have
been made and be outstanding shall be allocated on a "first-in, first out"
basis. In the event that some or all of an Advance Reimbursement Amount related
to Advances and/or Servicing Advances that were made by a Person other than such
predecessor Servicer or its related Advance Financing Person shall have been
paid in error to the Servicer's Assignee related to such predecessor Servicer,
then such Servicer's Assignee shall be required to remit any portion of such
Advance Reimbursement Amount to each Person entitled to such portion of such
Advance Reimbursement Amount. Without limiting the generality of the foregoing,
the Servicer shall remain entitled to be reimbursed by the Advance Financing
Person for all Advances and/or Servicing Advances funded by the Servicer to the
extent the related Advance Reimbursement Amounts have not been assigned or
pledged to such Advance Financing Person or Servicer's Assignee.

                  (f)      For purposes of any certification of a Servicing
Officer of the Servicer made pursuant to Section 4.07(d), any Nonrecoverable
Advance or Nonrecoverable Servicing Advance referred to therein may have been
made by such Servicer or any predecessor Servicer. In making its determination
that any Advance or Servicing Advance theretofore made has become a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, the Servicer shall
apply the same criteria in making such determination regardless of whether such
Advance or Servicing Advance shall have been made by the Servicer or any
predecessor Servicer.

                  (g)      Any amendment to this Section 6.05 or to any other
provision of this Agreement that may be necessary or appropriate to effect the
terms of an Advance Facility as described generally in this Section 6.05,
including amendments to add provisions relating to a successor servicer, may be
entered into by the Trustee, the Depositor, the Seller and the Servicer

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without the consent of any Certificateholder, provided such amendment complies
with Section 11.01 hereof. All reasonable costs and expenses (including
attorneys' fees) of each party hereto of any such amendment shall be borne
solely by the Servicer. The parties hereto hereby acknowledge and agree that:
(a) the Advances and/or Servicing Advances financed by and/or pledged to an
Advance Financing Person under any Advance Facility are obligations owed to the
Servicer payable only from the cash flows and proceeds received under this
Agreement for reimbursement of Advances and/or Servicing Advances only to the
extent provided herein, and the Trustee and the Trust are not, as a result of
the existence of any Advance Facility, obligated or liable to repay any Advances
and/or Servicing Advances financed by the Advance Financing Person; (b) the
Servicer will be responsible for remitting to the Advance Financing Person the
applicable amounts collected by it as reimbursement for Advances and/or
Servicing Advances funded by the Advance Financing Person, subject to the
provisions of this Agreement; and (c) the Trustee shall not have any
responsibility to track or monitor the administration of the financing
arrangement between the Servicer and any Advance Financing Person.

                                  ARTICLE VII

                                     DEFAULT

         Section 7.01 Servicer Events of Termination.

                  (a)      If any one of the following events (each, a "Servicer
Event of Termination") shall occur and be continuing:

                           (i)      (A) The failure by the Servicer to make any
Advance; or (B) any other failure by the Servicer to deposit in the Collection
Account or Distribution Account any deposit required to be made under the terms
of this Agreement which continues unremedied for a period of one Business Day
after the date upon which written notice of such failure shall have been given
to the Servicer by the Trustee or by any Holder of a Regular Certificate
evidencing at least 25% of the Voting Rights; or

                           (ii)     The failure by the Servicer to make any
required Servicing Advance which failure continues unremedied for a period of 30
days, or the failure by the Servicer duly to observe or perform, in any material
respect, any other covenants, obligations or agreements of the Servicer as set
forth in this Agreement, which failure continues unremedied for a period of 30
days, after the date (A) on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Servicer by the Trustee or by
any Holder of a Regular Certificate evidencing at least 25% of the Voting Rights
or (B) actual knowledge of such failure by a Servicing Officer of the Servicer;
or

                           (iii)    The entry against the Servicer of a decree
or order by a court or agency or supervisory authority having jurisdiction in
the premises for the appointment of a trustee, conservator, receiver or
liquidator in any insolvency, conservatorship, receivership, readjustment of
debt, marshalling of assets and liabilities or similar proceedings, or for the
winding up or liquidation of its affairs, and the continuance of any such decree
or order unstayed and in effect for a period of 60 days; or

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                           (iv)     The Servicer shall voluntarily go into
liquidation, consent to the appointment of a conservator or receiver or
liquidator or similar person in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to
the Servicer or of or relating to all or substantially all of its property; or a
decree or order of a court or agency or supervisory authority having
jurisdiction in the premises for the appointment of a conservator, receiver,
liquidator or similar person in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Servicer and such decree or order shall have remained in force undischarged,
unbonded or unstayed for a period of 60 days; or the Servicer shall admit in
writing its inability to pay its debts generally as they become due, file a
petition to take advantage of any applicable insolvency or reorganization
statute, make an assignment for the benefit of its creditors or voluntarily
suspend payment of its obligations; or

                           (v)      The aggregate amount of cumulative Realized
Losses incurred since the Cut-off Date through the last day of the related
Collection Period divided by the Pool Balance as of the Cut-off Date exceeds the
applicable percentages set forth below with respect to such Distribution Date:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN    PERCENTAGE
------------------------------    ----------
<S>                               <C>
July 2006 through June 2007         2.25%
July 2007 through June 2008         3.75%
July 2008 through June 2009         5.00%
July 2009 and thereafter            6.00%
</TABLE>

                  (b)      Then, and in each and every such case, so long as a
Servicer Event of Termination shall not have been remedied within the applicable
grace period, (x) with respect solely to clause (i)(A) above, if such Advance is
not made by 2:00 P.M., New York time, on the Business Day immediately following
the Servicer Remittance Date, the Trustee may terminate all of the rights and
obligations of the Servicer under this Agreement and the Trustee, or a successor
servicer appointed in accordance with Section 7.02, shall immediately make such
Advance and assume, pursuant to Section 7.02, the duties of a successor Servicer
and (y) in the case of (i)(B), (ii), (iii), (iv) and (v) above, the Trustee
shall, at the direction of the Holders of each Class of Regular Certificates
evidencing Percentage Interests aggregating not less than 51%, by notice then
given in writing to the Servicer (and to the Trustee if given by Holders of
Certificates), terminate all of the rights and obligations of the Servicer as
servicer under this Agreement. Any such notice to the Servicer shall also be
given to each Rating Agency, the Depositor and the Seller. On or after the
receipt by the Servicer (and by the Trustee if such notice is given by the
Holders) of such written notice, all authority and power of the Servicer under
this Agreement, whether with respect to the Certificates or the Mortgage Loans
or otherwise, shall pass to and be vested in the Trustee pursuant to and under
this Section; and, without limitation, the Trustee is hereby authorized and
empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement of each Mortgage Loan and Related Documents or otherwise. The
Servicer agrees to cooperate with the Trustee (or the applicable successor
Servicer) in effecting the termination of the responsibilities and rights of the
Servicer hereunder, including, without limitation, the delivery to

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<PAGE>

the Trustee of all documents and records requested by it to enable it to assume
the Servicer's functions under this Agreement within ten Business Days
subsequent to such notice, the transfer within one Business Day subsequent to
such notice to the Trustee (or the applicable successor Servicer) for the
administration by it of all cash amounts that shall at the time be held by the
Servicer and to be deposited by it in the Collection Account, the Distribution
Account, any REO Account or any Escrow Account or that have been deposited by
the Servicer in such accounts or thereafter received by the Servicer with
respect to the Mortgage Loans or any REO Property received by the Servicer. All
reasonable costs and expenses (including attorneys' fees) incurred in connection
with transferring the servicing to the successor Servicer and amending this
Agreement to reflect such succession as Servicer pursuant to this Section shall
be paid by the predecessor Servicer (or if the predecessor Servicer is the
Trustee, the initial Servicer) upon presentation of reasonable documentation of
such costs and expenses.

         Section 7.02 Trustee to Act; Appointment of Successor.

                  (a)      Within 90 days of the time the Servicer (and the
Trustee, if notice is sent by the Holders) receives a notice of termination
pursuant to Section 7.01 or 6.04, the Trustee (or such other successor Servicer
as is approved in accordance with this Agreement) shall be the successor in all
respects to the Servicer in its capacity as servicer under this Agreement and
the transactions set forth or provided for herein and shall be subject to all
the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof arising on and after its succession.
As compensation therefor, the Trustee (or such other successor Servicer) shall
be entitled to such compensation as the Servicer would have been entitled to
hereunder if no such notice of termination had been given. Notwithstanding the
above, (i) if the Trustee is unwilling to act as successor Servicer or (ii) if
the Trustee is legally unable so to act, the Trustee shall appoint or petition a
court of competent jurisdiction to appoint, any established housing and home
finance institution, bank or other mortgage loan or home equity loan servicer
having a net worth of not less than $50,000,000 as the successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder; provided, that the appointment of any
such successor Servicer will not result in the qualification, reduction or
withdrawal of the ratings assigned to the Certificates or the ratings that are
in effect by the Rating Agencies as evidenced by a letter to such effect from
the Rating Agencies. Pending appointment of a successor to the Servicer
hereunder, unless the Trustee is prohibited by law from so acting, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the successor shall be entitled to receive
compensation out of payments on Mortgage Loans in an amount equal to the
compensation which the Servicer would otherwise have received pursuant to
Section 3.18 (or such other compensation as the Trustee and such successor shall
agree, not to exceed the Servicing Fee). The successor servicer shall be
entitled to withdraw from the Collection Account all costs and expenses
associated with the transfer of the servicing to the successor servicer. The
appointment of a successor servicer shall not affect any liability of the
predecessor Servicer which may have arisen under this Agreement prior to its
termination as Servicer to pay any deductible under an insurance policy pursuant
to Section 3.12 or to indemnify the parties indicated in Section 3.26 pursuant
to the terms thereof, nor shall any successor Servicer be liable for any acts or
omissions of the predecessor Servicer or for any breach by such Servicer of any
of its representations or warranties contained herein or in any related document
or agreement. The Trustee and such

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<PAGE>

successor shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession.

         In the event of a Servicer Event of Termination, notwithstanding
anything to the contrary above, the Trustee and the Depositor hereby agree that
upon delivery to the Trustee by the Servicing Rights Pledgee of a letter signed
by the Servicer within ten Business Days of when notification of such event
shall have been provided to the Trustee, whereunder the Servicer shall resign as
Servicer under this Agreement, the Servicing Rights Pledgee or its designee
shall be appointed as successor Servicer (provided that at the time of such
appointment the Servicing Rights Pledgee or such designee meets the requirements
of a successor Servicer set forth above) and the Servicing Rights Pledgee agrees
to be subject to the terms of this Agreement.

                  (b)      Any successor, including the Trustee, to the Servicer
as servicer shall during the term of its service as servicer continue to service
and administer the Mortgage Loans for the benefit of Certificateholders, and
maintain in force a policy or policies of insurance covering errors and
omissions in the performance of its obligations as Servicer hereunder and a
Fidelity Bond in respect of its officers, employees and agents to the same
extent as the Servicer is so required pursuant to Section 3.12.

         Section 7.03 Waiver of Defaults.

         The Holders of Certificates entitled to at least 66 2/3% of the Voting
Rights allocated to the Class of Certificates affected by a Servicer Event of
Termination may, on behalf of all Certificateholders, waive any events
permitting removal of the Servicer as servicer pursuant to this Article VII,
provided, however, that such Holders may not waive a default in making a
required distribution on a Certificate without the consent of the Holder of such
Certificate. Upon any waiver of a past default, such default shall cease to
exist and any Servicer Event of Termination arising therefrom shall be deemed to
have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent thereto
except to the extent expressly so waived. Notice of any such waiver shall be
given by the Trustee to the Rating Agencies.

         Section 7.04 Notification to Certificateholders.

                  (a)      On any termination or appointment of a successor the
Servicer pursuant to this Article VII or Section 6.04, the Trustee shall give
prompt written notice thereof to the Certificateholders at their respective
addresses appearing in the Certificate Register and each Rating Agency.

                  (b)      No later than 60 days after the occurrence of any
event which constitutes or which, with notice or a lapse of time or both, would
constitute a Servicer Event of Termination for five Business Days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to all Certificateholders notice of
such occurrence unless such default or Servicer Event of Termination shall have
been waived or cured. Such notice shall be given to the Rating Agencies promptly
after any such occurrence.

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         Section 7.05 Survivability of Servicer Liabilities.

         Notwithstanding anything herein to the contrary, upon termination of
the Servicer hereunder, any liabilities of the Servicer which accrued prior to
such termination shall survive such termination.

                                  ARTICLE VIII

                                   THE TRUSTEE

         Section 8.01 Duties of Trustee.

         The Trustee, prior to the occurrence of a Servicer Event of Termination
of which a Responsible Officer of the Trustee shall have actual knowledge and
after the curing of all Servicer Events of Termination which may have occurred,
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement. If a Servicer Event of Termination has occurred (which
has not been cured) of which a Responsible Officer has actual knowledge, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, 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.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement; provided, however, that that the
Trustee shall not be responsible for the accuracy or content of any resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Servicer, the Seller or the Depositor hereunder. If any such
instrument is found not to conform in any material respect to the requirements
of this Agreement, the Trustee shall notify the Certificateholders of such
instrument in the event that the Trustee, after so requesting, does not receive
a satisfactorily corrected instrument.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; provided, however, that:

                           (i)      prior to the occurrence of a Servicer Event
of Termination, and after the curing of all such Servicer Events of Termination
which may have occurred, the duties and obligations of the Trustee shall be
determined solely by the express provisions of this Agreement, the Trustee shall
not be liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or obligations
shall be read into this Agreement against the Trustee and, in the absence of bad
faith on the part of the Trustee, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Trustee and conforming to the
requirements of this Agreement;

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                           (ii)     the Trustee shall not be personally liable
for an error of judgment made in good faith by a Responsible Officer of the
Trustee unless it shall be proved that the Trustee was negligent in ascertaining
or investigating the facts related thereto;

                           (iii)    the Trustee shall not be personally liable
with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with the direction of the Majority Certificateholders
relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising or omitting to exercise any trust
or power conferred upon the Trustee under this Agreement; and

                           (iv)     the Trustee shall not be charged with
knowledge of any failure by the Servicer to comply with the obligations of the
Servicer referred to in clauses (i) and (ii) of Section 7.01(a) or any Servicer
Event of Termination unless a Responsible Officer of the Trustee at the
applicable Corporate Trust Office obtains actual knowledge of such failure or
the Trustee receives written notice of such failure from the Servicer or the
Majority Certificateholders. In the absence of such receipt of such notice, the
Trustee may conclusively assume that there is no Servicer Event of Termination.

         The Trustee shall not be required 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 there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of, any
of the obligations of the Servicer under this Agreement, except during such
time, if any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Servicer in accordance with the
terms of this Agreement.

         The Trustee shall not have any duty (A) to see any recording, filing,
or depositing of this Agreement or any agreement referred to herein or any
financing statement or continuation statement evidencing a security interest, or
to see to the maintenance of any such recording or filing or depositing or to
any rerecording, refiling or redepositing of any thereof, (B) to see to any
insurance or (C) to see to the payment or discharge of any tax, assessment, or
other governmental charge or any lien or encumbrance of any kind owing with
respect to, assessed or levied against, any part of the Trust Fund other than
from funds available in the Distribution Account.

         The Trustee shall have no duty hereunder with respect to any complaint,
claim, demand, notice or other document it may receive or which may be alleged
to have been delivered to or served upon it by the parties as a consequence of
the assignment of any Mortgage Loan hereunder; provided, however, that the
Trustee shall promptly remit to the Servicer upon receipt any such complaint,
claim, demand, notice or other document (i) which is delivered to the Trustee at
its Corporate Trust Office; (ii) of which a Responsible Officer has actual
knowledge and (iii) which contains information sufficient to permit the Trustee
to make a determination that the real property to which such document relates to
is a Mortgaged Property.

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         Section 8.02 Certain Matters Affecting the Trustee.

                  (a)      Except as otherwise provided in Section 8.01:

                           (i)      the Trustee may request and rely upon, and
shall be protected in acting or refraining from acting upon, any resolution,
Officer's Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document reasonably believed by it to be
genuine and to have been signed or presented by the proper party or parties;

                           (ii)     the Trustee may consult with counsel and any
advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it hereunder
in good faith and in accordance with such advice or Opinion of Counsel;

                           (iii)    the Trustee shall not be under any
obligation to exercise any of the rights or powers vested in it by this
Agreement, or to institute, conduct or defend any litigation hereunder or in
relation hereto, at the request, order or direction of the Certificateholders
pursuant to the provisions of this Agreement, unless such Certificateholders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby; the
right of the Trustee to perform any discretionary act enumerated in this
Agreement shall not be construed as a duty, and the Trustee shall not be
answerable for other than its negligence or willful misconduct in the
performance of any such act;

                           (iv)     the Trustee shall not be personally liable
for any action taken, suffered or omitted by it in good faith and believed by it
to be authorized or within the discretion or rights or powers conferred upon it
by this Agreement;

                           (v)      prior to the occurrence of a Servicer Event
of Termination and after the curing of all Servicer Events of Termination which
may have occurred, the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or documents, unless requested in writing to do so by the Majority
Certificateholder; provided, however, that if the payment within a reasonable
time to the Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the Trustee not
reasonably assured to the Trustee by the security afforded to it by the terms of
this Agreement, the Trustee may require reasonable indemnity against such cost,
expense or liability as a condition to such proceeding. The reasonable expense
of every such examination shall be paid by the Servicer or, if paid by the
Trustee shall be reimbursed by the Servicer upon demand. Nothing in this clause
(v) shall derogate from the obligation of the Servicer to observe any applicable
law prohibiting disclosure of information regarding the Mortgagors;

                           (vi)     the Trustee shall not be accountable, shall
have any liability or make any representation as to any acts or omissions
hereunder of the Servicer until such time as the Trustee may be required to act
as Servicer pursuant to Section 7.02;

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                           (vii)    the 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 and the Trustee shall not be
responsible for any misconduct or negligence on the part of any such agent,
attorney or custodian appointed by it with due care; and

                           (viii)   the right of the Trustee to perform any
discretionary act enumerated in this Agreement shall not be construed as a duty,
and the Trustee shall not be answerable for other than its negligence or willful
misconduct in the performance of such act.

         Section 8.03 Trustee Not Liable for Certificates or Mortgage Loans.

         The recitals contained herein and in the Certificates (other than the
authentication of the Trustee on the Certificates) shall be taken as the
statements of the Seller, and the Trustee does not assumes any responsibility
for the correctness of the same. The Trustee makes no representations as to the
validity or sufficiency of this Agreement or of the Certificates (other than the
signature and authentication of the Trustee on the Certificates) or of any
Mortgage Loan or Related Document. The Trustee shall not be accountable for the
use or application by the Servicer, or for the use or application of any funds
paid to the Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Collection Account by the Servicer. The Trustee shall not at
any time have any responsibility or liability for or with respect to the
legality, validity and enforceability of any Mortgage or any Mortgage Loan, or
the perfection and priority of any Mortgage or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency of the Trust
or its ability to generate the payments to be distributed to Certificateholders
under this Agreement, including, without limitation: the existence, condition
and ownership of any Mortgaged Property; the existence and enforceability of any
hazard insurance thereon (other than if the Trustee shall assume the duties of
the Servicer pursuant to Section 7.02); the validity of the assignment of any
Mortgage Loan to the Trustee or of any intervening assignment; the completeness
of any Mortgage Loan; the performance or enforcement of any Mortgage Loan (other
than if the Trustee shall assume the duties of the Servicer pursuant to Section
7.02); the compliance by the Depositor, the Seller or the Servicer with any
warranty or representation made under this Agreement or in any related document
or the accuracy of any such warranty or representation prior to the Trustee's
receipt of notice or other discovery of any non-compliance therewith or any
breach thereof; any investment of monies by or at the direction of the Servicer
or any loss resulting therefrom, it being understood that the Trustee shall
remain responsible for any Trust property that it may hold in its individual
capacity; the acts or omissions of any of the Servicer (other than if the
Trustee shall assume the duties of the Servicer pursuant to Section 7.02), or
any Mortgagor; any action of the Servicer (other than if the Trustee shall
assume the duties of the Servicer pursuant to Section 7.02), taken in the name
of the Trustee; the failure of the Servicer to act or perform any duties
required of it as agent of the Trustee hereunder; or any action by the Trustee
taken at the instruction of the Servicer (other than if the Trustee shall assume
the duties of the Servicer pursuant to Section 7.02); provided, however, that
the foregoing shall not relieve the Trustee of its obligation to perform its
duties under this Agreement. The Trustee shall not have any responsibility for
filing any financing or continuation statement in any public office at any time
or to otherwise perfect or maintain the perfection of any security interest or
lien granted to it hereunder.

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         Section 8.04 Trustee May Own Certificates.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not Trustee and may transact any banking and trust business with the
Seller, the Servicer, the Depositor or their Affiliates.

         Section 8.05 Seller to Pay Trustee Fees and Expenses.

         The Trustee shall withdraw from the Distribution Account on each
Distribution Date and pay to itself the Trustee Fee pursuant to Section 4.01(i)
and, to the extent the Interest Remittance Amount is at any time insufficient
for such purpose, the Seller shall pay such fees as reasonable compensation
(which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) for all services rendered by it
in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee, and the
Seller will pay or reimburse the Trustee upon their request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Agreement (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from such party's negligence or bad faith or which is
the responsibility of Certificateholders, the Trustee hereunder. Notwithstanding
any other provision of this Agreement, including Section 2.03(a) and Section
2.04, to the contrary, the Seller covenants and agrees to indemnify the Trustee
and its officers, directors, employees and agents from, and hold each of them
harmless against, any and all losses, liabilities, damages, claims or expenses
incurred in connection with any legal action relating to this Agreement, the
Certificates or incurred in connection with the administration of the Trust,
other than with respect to a party, any loss, liability or expense incurred by
reason of willful misfeasance, bad faith or negligence of such party in the
performance of its duties hereunder or by reason of such party's reckless
disregard of obligations and duties hereunder. Anything in this Agreement to the
contrary notwithstanding, in no event shall the Trustee be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but
not limited to lost profits), even if the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action. The
Trustee and any director, officer, employee or agent of the Trustee shall be
indemnified, to the extent not paid by the Seller pursuant to this Section, by
the Trust Fund and held harmless against any loss, liability or expense (not
including expenses, disbursements and advances incurred or made by the Trustee,
in the ordinary course of the Trustee's performance in accordance with the
provisions of this Agreement) incurred by the Trustee or such party arising out
of or in connection with the acceptance or administration of its duties under
this Agreement, other than any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or negligence in the performance by the Trustee
of its duties under this Agreement or by reason of the reckless disregard of the
Trustee's obligations and duties under this Agreement. This section shall
survive termination of this Agreement or the resignation or removal of any
Trustee hereunder.

         Section 8.06 Eligibility Requirements for Trustee.

         The Trustee hereunder shall at all times be a Department of Housing and
Urban Development and Federal Housing Administration approved mortgagee, an
entity duly organized

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and validly existing under the laws of the United States of America or any state
thereof, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least $50,000,000 and a minimum long-term
debt rating of BBB by Fitch and S&P and a long term debt rating of at least A1
or better by Moody's, and subject to supervision or examination by federal or
state authority. If such entity publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section 8.06, the combined
capital and surplus of such entity shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published.
The principal office of the Trustee (other than the initial Trustee) shall be in
a state with respect to which an Opinion of Counsel has been delivered to such
Trustee at the time such Trustee is appointed Trustee to the effect that the
Trust will not be a taxable entity under the laws of such state. In case at any
time the Trustee shall cease to be eligible in accordance with the provisions of
this Section 8.06, the Trustee shall resign immediately in the manner and with
the effect specified in Section 8.07.

         Section 8.07 Resignation or Removal of Trustee.

         The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice thereof to the Depositor, the Servicer
and each Rating Agency. Upon receiving such notice of resignation, the Depositor
shall promptly appoint a successor Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor Trustee. If no successor Trustee shall have been so
appointed and having accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

         If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.06 and shall fail to resign after written
request therefor by the Depositor, or if at any time the Trustee shall be
legally unable to act, or shall be adjudged a bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Depositor may remove the Trustee. If the Depositor or the Servicer removes the
Trustee under the authority of the immediately preceding sentence, the Depositor
shall promptly appoint a successor Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the Trustee so removed and
one copy to the successor Trustee.

         The Majority Certificateholders may at any time remove the Trustee by
written instrument or instruments delivered to the Servicer, the Depositor and
the Trustee; the Depositor shall thereupon use its best efforts to appoint a
successor Trustee in accordance with this Section.

         Any resignation or removal of the Trustee and appointment of a
successor Trustee pursuant to any of the provisions of this Section 8.07 shall
not become effective until acceptance of appointment by the successor Trustee as
provided in Section 8.08.

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         Section 8.08 Successor Trustee.

         Any successor Trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor, the Rating Agencies, the
Servicer and to its predecessor Trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor Trustee
shall become effective, and such successor Trustee, without any further act,
deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with like effect as if
originally named as Trustee. The Depositor, the Servicer and the predecessor
Trustee shall execute and deliver such instruments and do such other things as
may reasonably be required for fully and certainly vesting and confirming in the
successor Trustee all such rights, powers, duties and obligations.

         No successor Trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor Trustee shall
be eligible under the provisions of Section 8.06 and the appointment of such
successor Trustee shall not result in a downgrading of the Regular Certificates
by either Rating Agency, as evidenced by a letter from each Rating Agency.

         Upon acceptance of appointment by a successor Trustee as provided in
this Section 8.08, the successor Trustee shall mail notice of the appointment of
a successor Trustee hereunder to all Holders of Certificates at their addresses
as shown in the Certificate Register and to each Rating Agency.

         Section 8.09 Merger or Consolidation of Trustee.

         Any entity into which the Trustee may be merged or converted or with
which it may be consolidated, or any entity resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any entity
succeeding to the business of the Trustee, shall be the successor of the Trustee
hereunder, provided such entity shall be eligible under the provisions of
Section 8.06 and 8.08, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

         Section 8.10 Appointment of Co-Trustee or Separate Trustee.

         Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust or any Mortgaged Property may at the time be located, the
Depositor and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, 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
Certificateholders, such title to the Trust, or any part thereof, and, subject
to the other provisions of this Section 8.10, such powers, duties, obligations,
rights and trusts as the Servicer and the Trustee may consider necessary or
desirable. Any such co-trustee or separate trustee shall be subject to the
written approval of the Servicer. If the Servicer shall not have joined in such
appointment within 15 days after the receipt by it of a request so to do, or in
the case a Servicer Event of Termination shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment. No co-trustee
or

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separate trustee hereunder shall be required to meet the terms of eligibility as
a successor Trustee under Section 8.06, and no notice to Certificateholders of
the appointment of any co-trustee or separate trustee shall be required under
Section 8.08. The Servicer shall be responsible for the fees of any co-trustee
or separate trustee appointed hereunder.

         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 Trustee shall be conferred or imposed upon and
exercised or performed by the 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 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 (whether as Trustee hereunder or as successor to the
Servicer hereunder), the 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 Trust 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 Trustee;

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

                           (iii)    the Servicer and the Trustee, acting jointly
may at any time accept the resignation of or remove any separate trustee or
co-trustee except that following the occurrence of a Servicer Event of
Termination, the Trustee acting alone may accept the resignation or remove any
separate trustee or co-trustee.

         Any notice, request or other writing given to the 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 Agreement and the conditions
of this Article VIII. 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, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Depositor, the Rating Agencies and the Servicer.

         Any separate trustee or co-trustee may, at any time, constitute the
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
Agreement 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
Trustee, to the extent permitted by law, without the appointment of a new or
successor Trustee.

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         Section 8.11 Limitation of Liability.

         The Certificates are executed by the Trustee, not in its individual
capacity but solely as Trustee of the Trust, in the exercise of the powers and
authority conferred and vested in it by this Agreement. Each of the undertakings
and agreements made on the part of the Trustee in the Certificates is made and
intended not as a personal undertaking or agreement by the Trustee but is made
and intended for the purpose of binding only the Trust.

         Section 8.12 Trustee May Enforce Claims Without Possession of
Certificates.

                  (a)      All rights of action and claims under this Agreement
or the Certificates may be prosecuted and enforced by the Trustee without the
possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and such proceeding instituted by the Trustee shall
be brought in its own name or in its capacity as Trustee for the benefit of all
Holders of such Certificates, subject to the provisions of this Agreement. Any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursement and advances of the Trustee, its agents and
counsel, be for the ratable benefit of the Certificateholders in respect of
which such judgment has been recovered.

                  (b)      The Trustee shall afford the Seller, the Depositor,
the Servicer and each Certificateholder upon reasonable notice during normal
business hours, access to all records maintained by the Trustee in respect of
its duties hereunder and access to officers of the Trustee responsible for
performing such duties. The Trustee shall cooperate fully with the Seller, the
Servicer, the Depositor and such Certificateholder and shall make available to
the Seller, the Servicer, the Depositor and such Certificateholder for review
and copying at the expense of the party requesting such copies, such books,
documents or records as may be requested with respect to the Trustee's duties
hereunder. The Seller, the Depositor, the Servicer and the Certificateholders
shall not have any responsibility or liability for any action or failure to act
by the Trustee and are not obligated to supervise the performance of the Trustee
under this Agreement or otherwise.

         Section 8.13 Suits for Enforcement.

         In case a Servicer Event of Termination or other default by the
Servicer or the Seller hereunder shall occur and be continuing, the Trustee may
proceed to protect and enforce its rights and the rights of the
Certificateholders under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this Agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, and subject
to the foregoing, shall deem most effectual to protect and enforce any of the
rights of the Trustee and the Certificateholders.

         Section 8.14 Waiver of Bond Requirement.

         The Trustee shall be relieved of, and each Certificateholder hereby
waives, any requirement of any jurisdiction in which the Trust, or any part
thereof, may be located that the Trustee post a bond or other surety with any
court, agency or body whatsoever.

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         Section 8.15 Waiver of Inventory, Accounting and Appraisal Requirement.

         The Trustee shall be relieved of, and each Certificateholder hereby
waives, any requirement of any jurisdiction in which the Trust, or any part
thereof, may be located that the Trustee file any inventory, accounting or
appraisal of the Trust with any court, agency or body at any time or in any
manner whatsoever.

         Section 8.16 Compliance with National Housing Act of 1934.

         In performing its duties hereunder with respect to FHA Loans, the
Trustee shall comply with all requirements of the National Housing Act of 1934,
as amended.

                                   ARTICLE IX

                     REMIC AND GRANTOR TRUST ADMINISTRATION

         Section 9.01 REMIC Administration.

                  (a)      The Trustee shall make or cause to be made REMIC
elections for each of REMIC 1, REMIC 2, REMIC 3, REMIC 4, REMIC 5, REMIC 6,
REMIC 7 and REMIC 8 as set forth in the Preliminary Statement on Forms 1066 or
other appropriate federal tax or information return for the taxable year ending
on the last day of the calendar year in which the Certificates are issued. The
regular interests and residual interest in each REMIC shall be as designated in
the Preliminary Statement.

                  (b)      The Closing Date is hereby designated as the "Startup
Day" of each REMIC within the meaning of section 860G(a)(9) of the Code.

                  (c)      The Servicer shall pay any and all tax related
expenses (not including taxes) of each REMIC, including but not limited to any
professional fees or expenses related to audits or any administrative or
judicial proceedings with respect to such REMIC that involve the Internal
Revenue Service or state tax authorities, but only to the extent that (i) such
expenses are ordinary or routine expenses, including expenses of a routine audit
but not expenses of litigation (except as described in (ii)); or (ii) such
expenses or liabilities (including taxes and penalties) are attributable to the
negligence or willful misconduct of the Servicer in fulfilling its duties
hereunder. The Servicer shall be entitled to reimbursement of expenses to the
extent provided in clause (i) above from the Collection Account.

                  (d)      The Trustee shall prepare or cause to be prepared,
sign and file or cause to be filed, each REMIC's federal and state tax and
information returns as such REMIC's direct representative. The expenses of
preparing and filing such returns shall be borne by the Trustee.

                  (e)      The Holder of the Residual Certificates with respect
to each REMIC holding the largest Percentage Interest shall be the "tax matters
person" as defined in the REMIC Provisions (the "Tax Matters Person") with
respect to the applicable REMIC or REMICs, and the Trustee is irrevocably
designated as and shall act as attorney-in-fact and agent for such Tax Matters
Person for each REMIC. The Trustee, as agent for the Tax Matters Person, shall
perform, on behalf of each REMIC, all reporting and other tax compliance duties
that are the

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responsibility of such REMIC under the Code, the REMIC Provisions, or other
compliance guidance issued by the Internal Revenue Service or any state or local
taxing authority. Among its other duties, if required by the Code, the REMIC
Provisions, or other such guidance, the Trustee, as agent for the Tax Matters
Person, shall provide (i) to the Treasury or other governmental authority such
information as is necessary for the application of any tax relating to the
transfer of a Residual Certificate to any disqualified person or organization
and (ii) to the Certificateholders such information or reports as are required
by the Code or REMIC Provisions.

                  (f)      The Trustee, the Servicer, and the Holders of
Certificates shall take any action or cause any REMIC to take any action
necessary to create or maintain the status of such REMIC as a REMIC under the
REMIC Provisions and shall assist each other as necessary to create or maintain
such status. Neither the Trustee, the Servicer, nor the Holder of any Residual
Certificate shall take any action or cause any REMIC to take any action or fail
to take (or fail to cause to be taken) any action that, under the REMIC
Provisions, if taken or not taken, as the case may be, could (i) endanger the
status of such REMIC as a REMIC or (ii) result in the imposition of a tax upon
such REMIC (including but not limited to the tax on prohibited transactions as
defined in Code Section 860F(a)(2) and the tax on prohibited contributions set
forth on Section 860G(d) of the Code) (either such event, an "Adverse REMIC
Event") unless such action or failure to take such action is expressly permitted
under the terms of this Agreement or the Trustee and the Servicer have received
an Opinion of Counsel (at the expense of the party seeking to take such action)
to the effect that the contemplated action will not endanger such status or
result in the imposition of such a tax. In addition, prior to taking any action
with respect to any REMIC or the assets therein, or causing such REMIC to take
any action, which is not expressly permitted under the terms of this Agreement,
any Holder of a Residual Certificate will consult with the Trustee and the
Servicer, or their respective designees, in writing, with respect to whether
such action could cause an Adverse REMIC Event to occur with respect to such
REMIC, and no such Person shall take any such action or cause such REMIC to take
any such action as to which the Trustee or the Servicer has advised it in
writing that an Adverse REMIC Event could occur.

                  (g)      Each Holder of a Residual Certificate shall pay when
due its pro rata share of any and all taxes imposed on any REMIC by federal or
state governmental authorities. To the extent that such REMIC taxes are not paid
by Residual Certificateholders, the Trustee shall pay any remaining REMIC taxes
out of current or future amounts otherwise distributable to the Holder of the
Residual Certificate in each REMIC or, if no such amounts are available, out of
other amounts held in the Collection Account, and shall reduce amounts otherwise
payable to Holders of the REMIC Regular Interests or the Certificates, as the
case may be.

                  (h)      The Trustee, shall, for federal income tax purposes,
maintain or cause to be maintained books and records with respect to each REMIC
on a calendar year and on an accrual basis.

                  (i)      No additional contributions of assets shall be made
to any REMIC, except as expressly provided in this Agreement with respect to
Eligible Substitute Mortgage Loans.

                  (j)      Neither the Trustee nor the Servicer shall enter into
any arrangement by which any REMIC will receive a fee or other compensation for
services.

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                  (k)      On or before April 15 of each calendar year beginning
in 2004, the Servicer shall deliver to the Trustee and each Rating Agency an
Officer's Certificate stating the Servicer's compliance with the provisions of
this Section 9.01.

                  (l)      The Trustee shall treat the rights of the Cap
Carryover Certificates to receive Carryover Amounts as a right in interest rate
cap contracts written by the Class X and Class N Certificateholders, as
beneficial owners of the REMIC 5 X/N Interest, in favor of the Holders of the
Cap Carryover Certificates, and the Trustee shall account for such as property
held separate and apart from the regular interests it holds in each of the
REMICs created hereunder. This provision is intended to satisfy the requirements
of Treasury Regulations Section 1.860G-2(i) for the treatment of property rights
coupled with regular interests to be separately respected and shall be
interpreted consistent with such regulation. On each Distribution Date, to the
extent the Carryover Certificates receive payments in respect of Carryover
Amounts, such interest will be treated as distributed to the REMIC 4 X/N
Interest, then on the REMIC 5 X/N Interest and then paid to the respective Class
of Cap Carryover Certificates pursuant to the related interest rate cap
agreement.

                  (m)      [RESERVED]

                  (n)      In the event that the beneficial ownership of the
Class N Certificates and the Class X Certificates is held by a single Person for
federal income tax purposes, such Person shall be treated as the beneficial
owner of the Class X/N Interest and the REMIC 5 Regular Interest represented
thereby. In the event that beneficial ownership of the Class N and the Class X
Certificates is held by two or more Persons for tax purposes, the Trustee shall
treat the Class N Certificateholders and the Class X Certificateholders as
partners in a partnership that owns the Class X/N Interest for federal income
tax purposes and shall not treat the Class N and Class X Certificates as an
interest in any REMIC created hereunder. By acquiring the Class N Certificates
and the Class X Certificates, the respective Holders will agree to treat the
Class N Certificates and the Class X Certificates in the manner described in the
preceding sentence for federal income tax purposes in the event that the
beneficial ownership of the Class N Certificates and the Class X Certificates is
separated. In such event, (i) a separate capital account shall be established
and maintained for each Holder of a Class N or Class X Certificate in accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv), which shall be credited
with income or gain and debited by any expenses or losses and distributions
allocable to such Certificates, (ii) the Class N Certificates shall be allocated
income in an amount equal to interest at the Pass-Through Rate thereon and any
original issue discount that would be reportable thereon if the Class N
Certificate were a debt instrument issued on the date ownership of the Class N
and Class X Certificates is separated, with a principal balance equal to its
Notional Amount, (iii) the Class X and Class N Certificates shall be allocated
income with respect to all prepayment penalties (including amounts in connection
with the full or partial waiver of such prepayment penalties or premiums
pursuant to Section 3.01) in accordance with the allocation of such amounts
pursuant to Section 4.02(c), to the extent not allocated pursuant to Section
9.01(n)(ii) above, (iv) the Class X and Class N Certificates shall be allocated
accruals (under any reasonable method) of any "cap premiums" deemed received on
the date ownership of the Class X and Class N Certificates is separated in
respect of the obligation of the Class X/N Interest to pay Carryover Amounts,
and shall be allocated expense in respect of any actual payment of such
Carryover Amounts based on which one of such Classes economically bears such
expense, (v) the Class X Certificates shall be

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allocated all remaining income and any expenses and Realized Losses with respect
to the Class X/N Interest, until the capital account of the Class X Certificates
is reduced to zero, and any remaining expenses or losses shall be allocated to
the Class N Certificates, (vi) neither the Class N Certificates nor the Class X
Certificates shall be responsible for restoring any deficit to its capital
account, (vii) upon termination of the Trust Fund pursuant to Article X, all
amounts available for distribution to Holders of the Class N and Class X
Certificates shall be distributed in accordance with their positive capital
account balances, first to the Class N Certificates until their Notional Amount
and any accrued but unpaid interest thereon are reduced to zero, and then to the
Class X Certificates, and (viii) the Trustee shall maintain books and records
with respect to the partnership on a calendar year basis (unless a different
taxable year shall be required by the Code) and shall prepare or cause to be
prepared, and cause the Holder of the largest Percentage Interest of the Class X
Certificates to sign and file or cause to be filed all federal and state tax and
information returns for the partnership, and shall furnish or cause to be
furnished Schedule K-1 to the Holders of the Class N and Class X Certificates at
the time required by the Code. Unless otherwise directed by a majority of the
Percentage Interests of the Class X and Class N Certificates, the Trustee shall
not make an election under Section 754 of the Code. The Holder of the largest
Percentage Interest of the Class X Certificates, by acceptance of its Class X
Certificate, agrees to act as "tax matters partner" (within the meaning of
Section 6231(a)(7) of the Code) and to sign and timely file all federal and
state partnership tax and information returns prepared by the Trustee pursuant
to this Section 9.01(n).

         Section 9.02 Prohibited Transactions and Activities.

         Neither the Seller, the Depositor, the Servicer nor the Trustee shall
sell, dispose of, or substitute for any of the Mortgage Loans, except in a
disposition pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the
bankruptcy of the Trust Fund, (iii) the termination of any REMIC pursuant to
Article X of this Agreement, (iv) a substitution pursuant to Article II of this
Agreement or (v) a repurchase of Mortgage Loans pursuant to Article II of this
Agreement, nor acquire any assets for any REMIC constituting part of the Trust
Fund, nor sell or dispose of any investments in the Distribution Account for
gain, nor accept any contributions to any REMIC constituting part of the Trust
Fund after the Closing Date, unless it has received an Opinion of Counsel (at
the expense of the party causing such sale, disposition, or substitution) that
such disposition, acquisition, substitution, or acceptance will not (a) affect
adversely the status of such REMIC as a REMIC or of the interests therein other
than the Residual Certificates as the regular interests therein, (b) affect the
distribution of interest or principal on the Certificates, (c) result in the
encumbrance of the assets transferred or assigned to the Trust Fund (except
pursuant to the provisions of this Agreement) or (d) cause such REMIC to be
subject to a tax on prohibited transactions or prohibited contributions pursuant
to the REMIC Provisions.

         Section 9.03 Indemnification with Respect to Certain Taxes and Loss of
REMIC Status.

         In the event that any REMIC formed hereunder fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to the negligent performance by the Servicer of its duties and
obligations set forth herein, the Servicer shall indemnify the Holder of the
related Residual Certificate against any and all losses, claims, damages,
liabilities or expenses ("Losses") resulting from such negligence; provided,
however, that the Servicer shall

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not be liable for any such Losses attributable to the action or inaction of the
Trustee, the Depositor or the Holder of such Residual Certificate, as
applicable, nor for any such Losses resulting from misinformation provided by
the Holder of such Residual Certificate on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of such Residual Certificate now or hereafter existing at law or in
equity. Notwithstanding the foregoing, however, in no event shall the Servicer
have any liability (1) for any action or omission that is taken in accordance
with and in compliance with the express terms of, or which is expressly
permitted by the terms of, this Agreement, (2) for any Losses other than arising
out of a negligent performance by the Servicer of its duties and obligations set
forth herein, and (3) for any special or consequential damages to
Certificateholders (in addition to payment of principal and interest on the
Certificates).

         Section 9.04 REO Property.

                  (a)      Subject to compliance with applicable laws and
regulations as shall at any time be in force, and notwithstanding any other
provision of this Agreement, the Servicer, acting on behalf of the Trust
hereunder, shall not rent, lease, or otherwise earn income on behalf of any
REMIC constituting part of the Trust Fund with respect to any REO Property which
might cause such REO Property to fail to qualify as "foreclosure" property
within the meaning of section 860G(a)(8) of the Code or result in the receipt by
any REMIC constituting part of the Trust Fund of any "income from non-permitted
assets" within the meaning of section 860F(a)(2) of the Code or any "net income
from foreclosure property" which is subject to tax under the REMIC Provisions
unless the Servicer has advised, or has caused the applicable Servicer to
advise, the Trustee in writing to the effect that, under the REMIC Provisions,
such action would not adversely affect the status of any REMIC constituting part
of the Trust Fund as a REMIC and any income generated for such REMIC by the REO
Property would not result in the imposition of a tax upon such REMIC.

                  (b)      The Servicer shall make reasonable efforts to sell
any REO Property for its fair market value. In any event, however, the Servicer
shall dispose of any REO Property before the close of the third calendar year
beginning after the year of its acquisition by the Trust Fund unless the
Servicer has received a grant of extension from the Internal Revenue Service to
the effect that, under the REMIC Provisions and any relevant proposed
legislation and under applicable state law, any REMIC constituting part of the
Trust Fund may hold REO Property for a longer period without adversely affecting
its REMIC status or causing the imposition of a Federal or state tax upon any
REMIC. If the Servicer has received such an extension, then the Servicer shall
continue to attempt to sell the REO Property for its fair market value as
determined in good faith by the Servicer for such longer period as such
extension permits (the "Extended Period"). If the Servicer has not received such
an extension and the Servicer is unable to sell the REO Property within 33
months after its acquisition by the Trust Fund or if the Servicer has received
such an extension, and the Servicer is unable to sell the REO Property within
the period ending three months before the close of the Extended Period, the
Servicer shall, before the end of the applicable period, (i) purchase such REO
Property at a price equal to the REO Property's fair market value as determined
in good faith by the Servicer or (ii) auction the REO Property to the highest
bidder (which may be the Servicer) in an auction reasonably designed to produce
a fair price prior to the expiration of the applicable period.

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         Section 9.05 Grantor Trust Administration.

         The parties intend that the portions of the Trust Fund consisting of
the REMIC 5 X/N Interest, the right of the Cap Carryover Certificates to receive
Carryover Amounts and the obligation of the Class X/N Interest to pay such
Carryover Amounts, shall be treated as a "grantor trust" under the Code, and the
provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall furnish or cause to be
furnished (i) to the Holders of the Cap Carryover Certificates and (ii) to the
Holder of the Class X and Class N Certificates (if there is a single beneficial
owner thereof) or to itself on behalf of the partnership comprised of the
Holders of the Class X and Class N Certificates (if there are two or more
beneficial owners thereof), and shall file or cause to be filed with the
Internal Revenue Service together with Form 1041 or such other form as may be
applicable, their allocable shares of income with respect to the property held
by the Grantor Trust, at the time or times and in the manner required by the
Code.

                                   ARTICLE X

                                   TERMINATION

         Section 10.01 Termination.

                  (a)      The respective obligations and responsibilities of
the Seller, the Servicer, the Depositor, the Trustee and the Certificate
Registrar created hereby (other than the obligation of the Trustee to make
certain payments to Certificateholders after the final Distribution Date and the
obligation of the Servicer to send certain notices as hereinafter set forth)
shall terminate upon notice to the Trustee upon the earliest of (i) the
Distribution Date on which the Certificate Principal Balance of each Class of
Certificates has been reduced to zero, (ii) the final payment or other
liquidation of the last Mortgage Loan in the Trust, and (iii) the optional
purchase by the Servicer of the Mortgage Loans as described below.
Notwithstanding the foregoing, in no event shall the trust created hereby
continue beyond the expiration of 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late ambassador of the United
States to the Court of St. James, living on the date hereof.

         The Servicer may, at its option, terminate the Mortgage Loans in the
Trust Fund and retire the Certificates on the next succeeding Distribution Date
upon which the aggregate current Pool Balance is less than 10% of the aggregate
Pool Balance of the Mortgage Loans as of the Cut-off Date by purchasing all of
the outstanding (i) Mortgage Loans in the Trust Fund at a price equal to the sum
of the outstanding Principal Balance of the Mortgage Loans and except to the
extent previously advanced by the Servicer, accrued and unpaid interest thereon
at the weighted average of the Mortgage Interest Rates through the end of the
Collection Period preceding the final Distribution Date plus unreimbursed
Servicing Advances, Advances and any unpaid Servicing Fees allocable to such
Mortgage Loans plus any costs or damages incurred by the Trust Fund in
connection with any violation by such Mortgage Loan of any predatory or abusive
lending laws and (ii) REO Properties in the Trust Fund at a price equal to their
fair market value as determined in good faith by the Servicer (the "Termination
Price"). Notwithstanding the foregoing, the Servicer may not exercise its
optional purchase right unless any Reimbursement Amount owed to the Trust
pursuant to Section 2.03 hereof has been paid.

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         In connection with any such purchase pursuant to the preceding
paragraph, the Servicer shall deliver to the Trustee for deposit in the
Distribution Account all amounts then on deposit in the Collection Account (less
amounts permitted to be withdrawn by the Servicer pursuant to Section 3.07),
which deposit shall be deemed to have occurred immediately following such
purchase.

         Any such purchase shall be accomplished by delivery to the Trustee for
deposit into the Distribution Account as part of Available Funds on the
Determination Date before such Distribution Date of the Termination Price.

                  (b)      Notice of any termination, specifying the
Distribution Date (which shall be a date that would otherwise be a Distribution
Date) upon which the Certificateholders may surrender their Certificates to the
Trustee for payment of the final distribution and cancellation, shall be given
promptly by the Trustee upon the Trustee receiving notice of such date from the
Servicer, by letter to the Certificateholders mailed not earlier than the 15th
day of the month preceding the month of such final distribution and not later
than the 15th day of the month of such final distribution specifying (1) the
Distribution Date upon which final distribution of the Certificates will be made
upon presentation and surrender of such Certificates at the office or agency of
the Trustee therein designated, (2) the amount of any such final distribution
and (3) that the Record Date otherwise applicable to such Distribution Date is
not applicable, distributions being made only upon presentation and surrender of
the Certificates at the office or agency of the Trustee therein specified. Not
less than five (5) Business Days prior to such Determination Date relating to
such Distribution Date, the Trustee shall notify the Seller of the amount of any
unpaid Reimbursement Amount owed to the Trust.

                  (c)      Upon presentation and surrender of the Certificates,
the Trustee shall cause to be distributed to the Holders of the Certificates on
the Distribution Date for such final distribution, in proportion to the
Percentage Interests of their respective Class and to the extent that funds are
available for such purpose, an amount equal to the amount required to be
distributed to such Holders in accordance with the provisions of Sections 4.01
and 4.02 for such Distribution Date.

                  (d)      In the event that all Certificateholders shall not
surrender their Certificates for final payment and cancellation on or before
such final Distribution Date, the Trustee shall promptly following such date
cause all funds in the Distribution Account not distributed in final
distribution to Certificateholders to be withdrawn therefrom and credited to the
remaining Certificateholders by depositing such funds in a separate escrow
account for the benefit of such Certificateholders, and the Servicer (if the
Servicer has exercised its right to purchase the Mortgage Loans) or the Trustee
(in any other case) shall give a second written notice to the remaining
Certificateholders, to surrender their Certificates for cancellation and receive
the final distribution with respect thereto. If within nine months after the
second notice all the Certificates shall not have been surrendered for
cancellation, the Class R Certificateholders shall be entitled to all unclaimed
funds and other assets which remain subject hereto and the Trustee upon transfer
of such funds shall be discharged of any responsibility for such funds, and such
Certificateholders shall look to the Class R Certificateholders for payment.

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         Section 10.02 Additional Termination Requirements.

                  (a)      In the event that the Servicer exercises its purchase
option as provided in Section 10.01, the Trust shall be terminated in accordance
with the following additional requirements, unless the Trustee shall have been
furnished with an Opinion of Counsel to the effect that the failure of the Trust
to comply with the requirements of this Section will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust as defined in
Section 860F of the Code or (ii) cause any REMIC constituting part of the Trust
Fund to fail to qualify as a REMIC at any time that any Certificates are
outstanding:

                           (i)      The Trustee shall designate a date within 90
days prior to the final Distribution Date as the date of adoption of plans of
complete liquidation of each of the remaining REMICs included in the Trust Fund
and shall specify such date in the final federal income tax return of each
REMIC;

                           (ii)     After the date of adoption of such plans of
complete liquidation and at or prior to the final Distribution Date, the Trustee
shall sell all of the assets of the Trust to the Servicer for cash; and

                           (iii)    At the time of the making of the final
payment on the Certificates, the Trustee shall distribute or credit, or cause to
be distributed or credited in the following order of priority (A) (i) to the
Holders of each of the Class AF-1 and Class AV-1 Certificates, pro rata and (ii)
to the Class M-1, Class M-2, Class B-1, Class B-2 and Class B-3 Certificates,
the related Certificate Principal Balance, as applicable, plus one month's
interest thereon at the applicable Pass-Through Rate, (B) (i) to the Class R
Certificates, .01% of any remaining Monthly Excess Interest and (ii) to the
Class N and Class X Certificates in respect of the Class X/N Interest, the
amount of any remaining Monthly Excess Cash Flow Amounts not previously
distributed thereon and not distributed to the Class R Certificates, (C) to the
remaining REMIC Regular Interests the amounts allocable thereto pursuant to
Section 4.08 and (D) to the Class R Certificateholders, all cash on hand in
respect of the related REMIC or REMICs after such payment (other than cash
retained to meet claims) and the Trust shall terminate at such time.

                  (b)      By their acceptance of Certificates, the Holders
thereof hereby agree to appoint the Trustee as their attorney in fact to: (i)
designate such date of adoption of plans of complete liquidation and (ii) to
take such other action in connection therewith as may be reasonably required to
carry out such plans of complete liquidation all in accordance with the terms
hereof..

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

         Section 11.01 Amendment.

         This Agreement may be amended from time to time by the Seller, the
Depositor, the Servicer and the Trustee; and without the consent of the
Certificateholders, (i) to cure any ambiguity, (ii) to correct or supplement any
provisions herein which may be defective or inconsistent with any other
provisions herein, (iii) to make any other provisions with respect to

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matters or questions arising under this Agreement, which shall not be
inconsistent with the provisions of this Agreement or (iv) to comply with any
requirements imposed by the Code; provided, however, that any such action listed
in clause (i) through (iv) above shall not adversely affect in any respect the
interests of any Certificateholder, as evidenced by (i) notice in writing to the
Depositor, the Servicer and the Trustee from the Rating Agencies that such
action will not result in the reduction or withdrawal of the rating of any
outstanding Class of Certificates with respect to which it is a Rating Agency,
or (ii) an Opinion of Counsel delivered to the Servicer and the Trustee.

         In addition, this Agreement may be amended from time to time by Seller,
the Depositor, the Servicer and the Trustee, with the consent of the Majority
Certificateholders for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment or waiver shall (x) reduce in any manner the
amount of, or delay the timing of, payments on the Certificates which are
required to be made on any Certificate without the consent of the Holder of such
Certificate, (y) adversely affect in any material respect the interests of the
Holders of any Class of Certificates in a manner other than as described in
clause (x) above, without the consent of the Holders of Certificates of such
Class evidencing at least a 66 2/3% Percentage Interest in such Class, or (z)
reduce the percentage of Voting Rights required by clause (y) above without the
consent of the Holders of all Certificates of such Class then outstanding. Upon
approval of an amendment, a copy of such amendment shall be sent to the Rating
Agencies. Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel (at the expense
of the Person seeking such amendment) stating that the execution of such
amendment is authorized or permitted by this Agreement. The Trustee may, but
shall not be obligated to, enter into any such amendment which affects the
Trustee's own rights, duties or immunities under this Agreement.

         Notwithstanding any provision of this Agreement to the contrary, the
Trustee shall not consent to any amendment to this Agreement unless it shall
have first received an Opinion of Counsel, delivered by (and at the expense of)
the Person seeking such Amendment, to the effect that such amendment will not
result in the imposition of a tax on any REMIC constituting part of the Trust
Fund pursuant to the REMIC Provisions or cause any REMIC constituting part of
the Trust to fail to qualify as a REMIC at any time that any Certificates are
outstanding and that the amendment is being made in accordance with the terms
hereof.

         Promptly after the execution of any such amendment the Trustee shall
furnish, at the expense of the Person that requested the amendment if such
Person is the Seller or the Servicer (but in no event at the expense of the
Trustee), otherwise at the expense of the Trust, a copy of such amendment and
the Opinion of Counsel referred to in the immediately preceding paragraph to the
Servicer and each Rating Agency.

         It shall not be necessary for the consent of Certificateholders under
this Section 11.01 to approve the particular form of any proposed amendment;
instead it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.

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         Section 11.02 Recordation of Agreement; Counterparts.

         To the extent permitted by applicable law, this Agreement is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Servicer at the expense of the Trust, but only upon direction of
Certificateholders, accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall together constitute but
one and the same instrument.

         Section 11.03 Limitation on Rights of Certificateholders.

         The death or incapacity of any Certificateholder shall not (i) operate
to terminate this Agreement or the Trust, (ii) entitle such Certificateholder's
legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust, or (iii)
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them.

         Except as expressly provided for herein, no Certificateholder shall
have any right to vote or in any manner otherwise control the operation and
management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth or contained in the terms of the Certificates be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

         No Certificateholder shall have any right by virtue of any provision of
this Agreement to institute any suit, action or proceeding in equity or at law
upon or under or with respect to this Agreement, unless such Holder previously
shall have given to the Trustee a written notice of default and of the
continuance thereof, as herein provided, and unless also the Holders of
Certificates entitled to at least 25% of the Voting Rights shall have made
written request upon the Trustee to institute such action, suit or proceeding in
its own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee for 15 days after
its receipt of such notice, request and offer of indemnity, shall have neglected
or refused to institute any such action, suit or proceeding. It is understood
and intended, and expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, which priority or
preference is not otherwise provided for herein, or to enforce any right under
this Agreement, except in the manner herein provided and for the equal, ratable
and common

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benefit of all Certificateholders. For the protection and enforcement
of the provisions of this Section 11.03 each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

         Section 11.04 Governing Law; Jurisdiction.

         This Agreement shall be construed in accordance with the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws. With respect to any
claim arising out of this Agreement, each party irrevocably submits to the
exclusive jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in The City of New
York, and each party irrevocably waives any objection which it may have at any
time to the laying of venue of any suit, action or proceeding arising out of or
relating hereto brought in any such courts, irrevocably waives any claim that
any such suit, action or proceeding brought in any such court has been brought
in any inconvenient forum and further irrevocably waives the right to object,
with respect to such claim, suit, action or proceeding brought in any such
court, that such court does not have jurisdiction over such party, provided that
service of process has been made by any lawful means.

         Section 11.05 Notices.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by first
class mail, postage prepaid, or by express delivery service, to (a) in the case
of the Seller, Credit-Based Asset Servicing and Securitization LLC, 335 Madison
Avenue, 19th Floor, New York, New York 10017, Attention: Director - Mortgage
Finance (telecopy number (212) 850-7760), or such other address or telecopy
number as may hereafter be furnished to the Depositor and the Trustee in writing
by the Seller, (b) in the case of the Trustee, U.S. Bank National Association,
U.S. Bank National Association, 180 East Fifth Street, EP-MN-T2CT, St. Paul,
Minnesota 55101, Attention: Structured Finance - C-BASS 2003-CB3, or such other
address as may hereafter be furnished to the Depositor, the Seller and the
Servicer in writing by the Trustee, (c) in the case of the Depositor, Merrill
Lynch Mortgage Investors, Inc., 250 Vesey Street, 4 World Financial Center, 10th
Floor, New York, New York 10080, Attention: Asset-Backed Finance, or such other
address as may be furnished to the Seller, the Servicer and the Trustee in
writing by the Depositor, and (d) in the case of the Servicer, Litton Loan
Servicing LP, 4828 Loop Central Drive, Houston, Texas 77081, Attention: Janice
McClure, or such other address as may be furnished to the Seller, the Depositor
and the Trustee in writing by the Servicer. Any notice required or permitted to
be mailed to a Certificateholder shall be given by first class mail, postage
prepaid, at the address of such Holder as shown in the Certificate Register.
Notice of any Servicer Event of Termination shall be given by telecopy and by
certified mail. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have duly been given when mailed,
whether or not the Certificateholder receives such notice. A copy of any notice
required to be telecopied hereunder shall also be mailed to the appropriate
party in the manner set forth above.

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         Section 11.06 Severability of Provisions.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall for any reason whatsoever be held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

         Section 11.07 Article and Section References.

         All article and section references used in this Agreement, unless
otherwise provided, are to articles and sections in this Agreement.

         Section 11.08 Notice to the Rating Agencies.

                  (a)      Each of the Trustee and the Servicer shall be
obligated to use its best reasonable efforts promptly to provide notice to the
Rating Agencies with respect to each of the following of which a Responsible
Officer of the Trustee or the Servicer, as the case may be, has actual
knowledge:

                           (i)      any material change or amendment to this
Agreement;

                           (ii)     the occurrence of any Servicer Event of
Termination that has not been cured or waived;

                           (iii)    the resignation or termination of the
Servicer or the Trustee;

                           (iv)     the final payment to Holders of the
Certificates of any Class;

                           (v)      any change in the location of any Account;
and

                           (vi)     if the Trustee is acting as successor
Servicer pursuant to Section 7.02 hereof, any event that would result in the
inability of the Trustee to make Advances.

                           (vii)    In addition, the Servicer shall promptly
furnish to each Rating Agency copies of the following:

                                             (A)      each annual statement as
to compliance described in Section 3.19 hereof;

                                             (B)      each annual independent
public accountants' servicing report described in Section 3.20 hereof; and

                                             (C)      each notice delivered
pursuant to Section 7.01(a) hereof which relates to the fact that the Servicer
has not made an Advance.

         Any such notice pursuant to this Section 11.08 shall be in writing and
shall be deemed to have been duly given if personally delivered or mailed by
first class mail, postage prepaid, or by express delivery service to Moody's
Investors Service, Inc., 99 Church Street, New York, New

                                      141

<PAGE>

York 10007, Attention: Managing Director, Residential Mortgage-Backed
Securities; Fitch Ratings, One State Street Plaza, New York, New York 10004,
Attention: Managing Director, Residential Mortgage-Backed Securities; and
Standard & Poor's, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041, Attention: Mortgage Surveillance Group.

         Section 11.09 Further Assurances.

         Notwithstanding any other provision of this Agreement, neither the
Regular Certificateholders, nor the Trustee shall have any obligation to consent
to any amendment or modification of this Agreement unless they have been
provided reasonable security or indemnity against their out-of-pocket expenses
(including reasonable attorneys' fees) to be incurred in connection therewith.

         Section 11.10 Section 11.10 Benefits of Agreement.

         Nothing in this Agreement or in the Certificates, expressed or implied,
shall give to any Person, other than the Certificateholders and the parties
hereto and their successors hereunder, any benefit or any legal or equitable
right, remedy or claim under this Agreement.

         Section 11.11 Acts of Certificateholders.

                  (a)      Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Agreement to be given
or taken by the Certificateholders may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such
Certificateholders in person or by agent duly appointed in writing; and such
action shall become effective when such instrument or instruments are delivered
to the Trustee, the Seller and the Servicer. Such instrument or instruments (and
the action embodied therein and evidenced thereby) are herein sometimes referred
to as the "act" of the Certificateholders 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 Agreement
and conclusive in favor of the Trustee and the Trust, if made in the manner
provided in this Section 11.11.

                  (b)      The fact and date of the execution by any Person of
any such instrument or writing may be proved by the affidavit of a witness of
such execution or by the certificate of a notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Whenever such execution is by a signer acting in a capacity other than
his or her individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority.

                  (c)      Any request, demand, authorization, direction,
notice, consent, waiver or other action by any Certificateholder shall bind
every future Holder of such Certificate and the Holder of every Certificate
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by the
Trustee or the Trust in reliance thereon, whether or not notation of such action
is made upon such Certificate.

                                      142

<PAGE>

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                      143

<PAGE>

         IN WITNESS WHEREOF, the Seller, the Depositor, the Servicer and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto duly authorized, all as of the day and year first above written.

                              MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                     as Depositor

                              By:______________________________
                              Name:    Matthew Whalen
                              Title:   President

                              CREDIT-BASED ASSET SERVICING AND
                                   SECURITIZATION LLC, as Seller

                              By:______________________________
                              Name:    Stephanie Sparvero
                              Title:   Vice President

                              LITTON LOAN SERVICING LP, as Servicer

                              By:______________________________
                              Name:    Janice McClure
                              Title:   Senior Vice President

                              U.S. BANK NATIONAL ASSOCIATION, not in
                              its individual
                                     capacity but solely as Trustee for the
                                     2003-CB3 Trust, C-BASS Mortgage Loan
                                     Asset-Backed Certificates, Series 2003-CB3

                              By:______________________________
                              Name:    Sheryl Christopherson
                              Title:   Vice President

                                     A-1-1

<PAGE>

                                   EXHIBIT A-1

                      [FORM OF THE CLASS AF-1 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS AF-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                 <C>
Series 2003-CB3, Class AF-1         Original Class Certificate Principal Balance
                                    of the Class AF-1 Certificates as of the
                                    Closing Date: $194,034,000.00

Pass-Through Rate:  2.879%

Date of Pooling and Servicing
Agreement and                       Initial Certificate Principal Balance:
Cut-off Date:June 1, 2003           $194,034,000.00
First Distribution Date:            Servicer:  Litton Loan Servicing LP
July 25, 2003

No.                                 Trustee:  U.S. Bank National Association

CUSIP: 12489W GJ 7                  Closing Date:  June 27, 2003

ISIN: US12489WGJ71
</TABLE>

                                     A-1-2

<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AF-1 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AF-1 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Merrill Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), Credit-Based
Asset Servicing and Securitization LLC (the "Seller"), the Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AF-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AF-1 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class AF-1 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the

                                A-1-3

<PAGE>

pendency of such distribution and only upon presentation and surrender
of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class AF-1 Pass-Through Rate on each Distribution Date will the per
annum rate specified above, subject to increase as provided in the Agreement.
Interest will accrue on the Class AF-1 Certificates during each Interest Accrual
Period at a rate equal to the lesser of (i) the Class AF-1 Pass-Through Rate and
(ii) the Group I Cap for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AF-1 Certificates.

         The Class AF-1 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

                                A-1-4

<PAGE>

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                A-1-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                            U.S. BANK NATIONAL ASSOCIATION, as
                                            Trustee

                                            By:_________________________________
                                                        Authorized Officer

                     CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                            U.S. BANK NATIONAL ASSOCIATION,
                                                  as Certificate Registrar

                                            By:_________________________________
                                                        Authorized Signatory
Date of authentication: June 27, 2003

                                A-1-6

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors
                                                                        Act
JT TEN   -    as joint tenants with right of                            ________________
              survivorship and not as tenants                                (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     A-1-7

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
for the account of ___________________________________________________, account
number________________________________________________ , or, if mailed by check,
to_____________________________________________________________________________.
Applicable statements should be mailed to _____________________________________
This information is provided by___________________________,the assignee named
above, or_______________________________________________________,as its agent.

                                     A-1-8

<PAGE>

                                   EXHIBIT A-2

                      [FORM OF THE CLASS AV-1 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND
         CERTAIN OTHER PROPERTY.

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS AV-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                              <C>
Series 2003-CB3, Class AV-1      Original Class Certificate Principal Balance
                                 of the Class AV-1 Certificates as of the
                                 Closing Date: $55,882,000.00

Pass-Through Rate:  Variable

Date of Pooling and Servicing
Agreement                        Initial Certificate Principal Balance:
and Cut-off Date: June 1, 2003   $55,882,000.00
First Distribution Date:
July 25, 2003                    Servicer:  Litton Loan Servicing LP

No.                              Trustee:  U.S. Bank National Association

CUSIP: 12489W GK 4               Closing Date:  June 27, 2003

ISIN: US12489WGK45
</TABLE>

                                     A-2-1

<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class
AV-1 Certificates) in that certain beneficial ownership interest evidenced by
all the Class AV-1 Certificates in the Trust Fund created pursuant to a Pooling
and Servicing Agreement, dated as specified above (the "Agreement"), among
Merrill Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), Credit-Based
Asset Servicing and Securitization LLC (the "Seller"), the Servicer and the
Trustee, a summary of certain of the pertinent provisions of which is set forth
hereafter. To the extent not defined herein, the capitalized terms used herein
have the meanings assigned in the Agreement. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
AV-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class AV-1 Certificate becomes a Definitive Certificate,
the Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class AV-1 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the

                                     A-2-2

<PAGE>

pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose as
provided in the Agreement.

         The Class AV-1 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the sum of one month LIBOR plus the Class AV-1
Certificate Margin. Interest will accrue on the Class AV-1 Certificates during
each Interest Accrual Period at a rate equal to the lesser of (i) the Class AV-1
Pass-Through Rate and (ii) the Group II Cap for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class AV-1 Certificates.

         The Class AV-1 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

                                     A-2-3

<PAGE>

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     A-2-4

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Trustee

                                              By:_______________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                        as Certificate Registrar

                                              By:_______________________________
                                                        Authorized Signatory

Date of authentication: June 27, 2003

                                     A-2-5

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors Act

JT TEN   -    as joint tenants with right of                            __________________
              survivorship and not as tenants                               (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     A-2-6

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           ____________________________________
                                           Signature by or on behalf of assignor

                                           ____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
for the account of_____________________________________________________________,
account number_________________________________________________________________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________ This information is provided by
_______________________________________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     A-2-7

<PAGE>

                                   EXHIBIT A-3

                        [FORM OF CLASS A-IO CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS A-IO

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                             <C>
Series 2003-CB3, Class A-IO     Original Class Certificate Principal Balance of
                                the Class A-IO Certificates as of the Closing
                                Date: $296,689,000.00

Pass-Through Rate: 3.00%

Date of Pooling and Servicing
Agreement and                   Initial Notional Balance: $296,689,000.00
Cut-off Date: June 1, 2003
First Distribution Date:
July 25, 2003                   Servicer:  Litton Loan Servicing LP

No.                             Trustee:  U.S. Bank National Association

CUSIP: 12489W GL 2              Closing Date:  June 27, 2003

ISIN: US12489WGL28
</TABLE>

                                     A-3-1

<PAGE>

         THE NOTIONAL AMOUNT OF THIS CERTIFICATE WILL BE REDUCED IN
         THE MANNER DESCRIBED IN THE AGREEMENT. ACCORDINGLY, THE
         OUTSTANDING NOTIONAL AMOUNT OF THIS CERTIFICATE AT ANY TIME
         MAY BE LESS THAN THE INITIAL NOTIONAL AMOUNT REPRESENTED
         HEREBY.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Notional Amount of this Certificate
by the Original Class A-IO Notional Amount) in that certain beneficial ownership
interest evidenced by all the Class A-IO Certificates in the Trust Fund created
pursuant to a Pooling and Servicing Agreement, dated as specified above (the
"Agreement"), among Merrill Lynch Mortgage Investors, Inc. (hereinafter called
the "Depositor," which term includes any successor entity under the Agreement),
Credit-Based Asset Servicing and Securitization LLC (the "Seller"), the Servicer
and the Trustee a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-IO Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class A-IO Certificates
the aggregate Initial Notional Amount of which is in excess of $5,000,000, or by
check mailed by first class mail to the address of the Person entitled thereto,
as such name and address shall appear on the Certificate Register, provided that
the Certificate Registrar may deduct a reasonable wire transfer fee from any
payment made by wire transfer. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose as
provided in the Agreement.

                                A-3-2

<PAGE>

         The Notional Amount of the Class A-IO Certificates is comprised of two
components, the Component A-IO-1 and the Component A-IO-2. The Pass-Through Rate
on each of those components on each Distribution Date will be (i) for
Distribution Dates on or prior to the Distribution Date in October 2004, 3.00%;
provided that the Pass-Through Rate on Component A-IO-2 will be subject to a cap
equal to the Group II Net Rate.

         This Certificate is not entitled to distributions of principal.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class A-IO Certificates.

         The Class A-IO Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

                                A-3-3

<PAGE>

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                A-3-4

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Trustee

                                              By:_______________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                        as Certificate Registrar

                                              By:_______________________________
                                                        Authorized Signatory
Date of authentication:  June 27, 2003

                                     A-3-5

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors
                                                                        Act
JT TEN   -    as joint tenants with right of                            _______________
              survivorship and not as tenants                               (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     A-3-6

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           ____________________________________
                                           Signature by or on behalf of assignor

                                           ____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
for the account of_____________________________________________________________,
account number_________________________________________________________________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________ This information is provided by
_______________________________________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     A-3-7

<PAGE>

                                   EXHIBIT B-1

                         [FORM OF CLASS B-1 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A,
         CLASS M-1 AND CLASS M-2 CERTIFICATES AS DESCRIBED IN THE AGREEMENT
         REFERRED TO HEREIN.

         EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT REFERRED TO
         HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY OR TRANSFERRED TO ANY
         PERSON THAT HAS NOT DELIVERED A REPRESENTATION LETTER STATING EITHER
         (A) THAT THE TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION 4975 OF
         THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"), OR
         PROVISIONS OF OTHER FEDERAL, STATE OR LOCAL LAW WHICH IS, TO A MATERIAL
         EXTENT, SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
         (COLLECTIVELY, A "PLAN"), AND IS NOT ACTING ON BEHALF OF OR INVESTING
         THE ASSETS OF A PLAN OR (B) THE TRANSFEREE IS AN INSURANCE COMPANY AND
         THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE
         COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION V(E) OF
         PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 ("PTCE 95-60")) AND THAT
         THE PURCHASE AND HOLDING OF THE CERTIFICATE ARE COVERED UNDER SECTIONS
         I AND III OF PTCE 95-60. EACH PERSON WHO ACQUIRES THIS CERTIFICATE OR
         ANY INTEREST THEREIN SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS
         REQUIRED BY THE REPRESENTATION LETTER REFERRED TO IN THE PRECEDING
         SENTENCE, UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION

                                     B-1-1

<PAGE>

         LETTER REFERRED TO IN THE PRECEDING SENTENCE TO THE CERTIFICATE
         REGISTRAR. THE AGREEMENT PROVIDES THAT ANY ATTEMPTED OR PURPORTED
         TRANSFER IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL BE NULL AND
         VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
         BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
         INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
         SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
         (THE "CODE") AND CERTAIN OTHER PROPERTY.

                                     B-1-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS B-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                             <C>
Series 2003-CB3, Class B-1      Original Class Certificate Principal Balance
                                of the Class B-1 Certificates as of the
                                Closing Date: $7,425,000.00

Pass-Through Rate: 5.553%

Date of Pooling and Servicing
Agreement and                   Initial Certificate Principal Balance:
Cut-off Date: June 1, 2003      $7,425,000.00
First Distribution Date:
July 25, 2003                   Servicer:  Litton Loan Servicing LP

No.                             Trustee:  U.S. Bank National Association

CUSIP: 12489W GP 3              Closing Date:  June 27, 2003

ISIN: US12489WGP32
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-1
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-1 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                     B-1-3

<PAGE>

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-1 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-1 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class B-1 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class B-1 Pass-Through Rate on each Distribution Date will be the
per annum rate specified above, subject to increase as provided in the
Agreement. Interest will accrue on the Class B-1 Certificates during each
Interest Accrual Period at a rate equal to the lesser of (i) the Class B-1
Pass-Through Rate and (ii) the Subordinate Net WAC for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-1 Certificates.

         The Class B-1 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         This Certificate is subordinated in right of payment to the Class A,
Class M-1 and Class M-2 Certificates as described in the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to

                                     B-1-4

<PAGE>

the Voting Rights identified in the agreement. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

                                     B-1-5

<PAGE>

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     B-1-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Trustee

                                              By:_______________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                        as Certificate Registrar

                                              By:_______________________________
                                                        Authorized Signatory
Date of authentication: June 27, 2003

                                     B-1-7
<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors
                                                                        Act
JT TEN   -    as joint tenants with right of                            _______________
              survivorship and not as tenants                               (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     B-1-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           ____________________________________
                                           Signature by or on behalf of assignor

                                           ____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to_____________________________________________________________
for the account of_____________________________________________________________,
account number_________________________________________________________________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________ This information is provided by
_______________________________________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     B-1-9

<PAGE>

                                   EXHIBIT B-2

                         [FORM OF CLASS B-2 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
         CLASS A, CLASS M-1, CLASS M-2 AND CLASS B-1 CERTIFICATES AS
         DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
         ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES
         LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION
         OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION MAY BE MADE
         ONLY IN A TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION
         AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         AGREEMENT REFERRED TO HEREIN.

         EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT EXCEPT
         AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT REFERRED TO
         HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY OR
         TRANSFERRED TO ANY PERSON THAT HAS NOT DELIVERED A
         REPRESENTATION LETTER STATING EITHER (A) THAT THE TRANSFEREE
         IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
         "CODE"), OR PROVISIONS OF OTHER FEDERAL, STATE OR LOCAL LAW
         WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE FOREGOING
         PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), AND
         IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN
         OR (B) THE TRANSFEREE IS AN INSURANCE COMPANY

                                     B-2-1

<PAGE>

         AND THE SOURCE OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS
         AN "INSURANCE COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS
         DEFINED IN SECTION V(E) OF PROHIBITED TRANSACTION CLASS
         EXEMPTION 95-60 ("PTCE 95-60")) AND THAT THE PURCHASE AND
         HOLDING OF THE CERTIFICATE ARE COVERED UNDER SECTIONS I AND
         III OF PTCE 95-60. EACH PERSON WHO ACQUIRES THIS CERTIFICATE
         OR ANY INTEREST THEREIN SHALL BE DEEMED TO HAVE MADE THE
         REPRESENTATIONS REQUIRED BY THE REPRESENTATION LETTER
         REFERRED TO IN THE PRECEDING SENTENCE, UNLESS SUCH PERSON
         SHALL HAVE PROVIDED SUCH REPRESENTATION LETTER REFERRED TO IN
         THE PRECEDING SENTENCE TO THE CERTIFICATE REGISTRAR. THE
         AGREEMENT PROVIDES THAT ANY ATTEMPTED OR PURPORTED TRANSFER
         IN VIOLATION OF THESE TRANSFER RESTRICTIONS WILL BE NULL AND
         VOID AND WILL VEST NO RIGHTS IN ANY PURPORTED TRANSFEREE.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND
         CERTAIN OTHER PROPERTY.

                                     B-2-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS B-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                 <C>
Series 2003-CB3, Class B-2          Original Class Certificate Principal Balance
                                    of the Class B-2 Certificates as of the
                                    Closing Date:
                                    $3,712,500.00

Pass-Through Rate:  6.385%

Date of Pooling and Servicing
Agreement and                       Initial Certificate Principal Balance:
Cut-off Date: June 1, 2003          $3,712,500.00
First Distribution Date:
July 25, 2003                       Servicer:  Litton Loan Servicing LP

No.                                 Trustee:  U.S. Bank National Association

CUSIP: 12489W GQ 1                  Closing Date:  June 27, 2003

ISIN: US12489WGQ15
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-2
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-2 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                B-2-3

<PAGE>

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-2 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-2 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class B-2 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class B-2 Pass-Through Rate on each Distribution Date will be the
per annum rate specified above, subject to increase as provided in the
Agreement. Interest will accrue on the Class B-2 Certificates during each
Interest Accrual Period at a rate equal to the lesser of (i) the Class B-2
Pass-Through Rate and (ii) the Subordinate Net WAC for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-2 Certificates.

         The Class B-2 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         This Certificate is subordinated in right of payment to the Class A,
Class M-1, Class M-2 and Class B-1 Certificates as described in the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to

                                B-2-4

<PAGE>

the Voting Rights identified in the agreement. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such
Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or
in lieu hereof whether or not notation of such consent is made upon
this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of
any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws. Each Person who acquires this Certificate or an
interest therein shall be deemed to have made the representations required by
the representation letter referred to in this paragraph, unless such Person
shall have provided such representation letter referred to in this paragraph to
the Certificate Registrar.

                                B-2-5

<PAGE>

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                B-2-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Trustee

                                              By:_______________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                        as Certificate Registrar

                                              By:_______________________________
                                                        Authorized Signatory

Date of authentication: June 27, 2003

                                     B-2-7

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors
                                                                        Act
JT TEN   -    as joint tenants with right of                            _______________
              survivorship and not as tenants                               (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     B-2-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           ____________________________________
                                           Signature by or on behalf of assignor

                                           ____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to_____________________________________________________________
for the account of_____________________________________________________________,
account number_________________________________________________________________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________ This information is provided by
_______________________________________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     B-2-9

<PAGE>

                                   EXHIBIT B-3

                         [FORM OF CLASS B-3 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
         CLASS A, CLASS M-1, CLASS M-2, CLASS B-1 AND CLASS B-2
         CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED TO
         HEREIN.

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
         ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES
         LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION
         OF THIS CERTIFICATE WITHOUT SUCH REGISTRATION MAY BE MADE
         ONLY IN A TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION
         AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         AGREEMENT REFERRED TO HEREIN.

         EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT
         REFERRED TO HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY
         OR TRANSFERRED TO ANY PERSON THAT HAS NOT DELIVERED A
         REPRESENTATION LETTER STATING EITHER (A) THAT THE TRANSFEREE
         IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
         "CODE"), OR PROVISIONS OF OTHER FEDERAL, STATE OR LOCAL LAW
         WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE FOREGOING
         PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), AND
         IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN
         OR (B) THE TRANSFEREE IS AN INSURANCE COMPANY AND THE SOURCE
         OF FUNDS USED TO PURCHASE THIS

                                B-3-1

<PAGE>

         CERTIFICATE IS AN "INSURANCE COMPANY GENERAL ACCOUNT" (AS
         SUCH TERM IS DEFINED IN SECTION V(E) OF PROHIBITED
         TRANSACTION CLASS EXEMPTION 95-60 ("PTCE 95-60")) AND THAT
         THE PURCHASE AND HOLDING OF THE CERTIFICATE ARE COVERED UNDER
         SECTIONS I AND III OF PTCE 95-60. EACH PERSON WHO ACQUIRES
         THIS CERTIFICATE OR ANY INTEREST THEREIN SHALL BE DEEMED TO
         HAVE MADE THE REPRESENTATIONS REQUIRED BY THE REPRESENTATION
         LETTER REFERRED TO IN THE PRECEDING SENTENCE, UNLESS SUCH
         PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION LETTER
         REFERRED TO IN THE PRECEDING SENTENCE TO THE CERTIFICATE
         REGISTRAR. THE AGREEMENT PROVIDES THAT ANY ATTEMPTED OR
         PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER
         RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN
         ANY PURPORTED TRANSFEREE.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND
         CERTAIN OTHER PROPERTY.

                                B-3-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS B-3

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                 <C>
Series 2003-CB3, Class B-3          Original Class Certificate Principal Balance
                                    of the Class B-3 Certificates as of the
                                    Closing Date: $2,970,000.00

Pass-Through Rate:  Variable

Date of Pooling and Servicing
Agreement and                       Initial Certificate Principal Balance:
Cut-off Date: June 1, 2003          $2,970,000.00
First Distribution Date:
July 25, 2003                       Servicer:  Litton Loan Servicing LP

No.                                 Trustee: U.S. Bank National Association

CUSIP: 12489W GR 9                  Closing Date:  June 27, 2003, 2003

ISIN: US12489WGR97
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class B-3
Certificates) in that certain beneficial ownership interest evidenced by all the
Class B-3 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                B-3-3

<PAGE>

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Business Day immediately preceding such
Distribution Date (the "Record Date"), from funds in the Distribution Account in
an amount equal to the product of the Percentage Interest evidenced by this
Certificate and the amount required to be distributed to the Holders of Class
B-3 Certificates on such Distribution Date pursuant to the Agreement provided,
however, that if any Class B-3 Certificate becomes a Definitive Certificate, the
Record Date for such Certificate will be the last Business Day of the month
immediately preceding the month in which the related Distribution Date occurs.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class B-3 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class B-3 Pass-Through Rate on each Distribution Date will be a
rate per annum equal to the sum of one month LIBOR plus the Class B-3
Certificate Margin. Interest will accrue on the Class B-3 Certificates during
each Interest Accrual Period at a rate equal to the lesser of (i) the Class B-3
Pass-Through Rate and (ii) the Pool Cap for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class B-3 Certificates.

         The Class B-3 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         This Certificate is subordinated in right of payment to the Class A,
Class M-1, Class M-2, Class B-1 and Class B-2 Certificates as described in the
Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to

                                B-3-4

<PAGE>

the Voting Rights identified in the agreement. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such
Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or
in lieu hereof whether or not notation of such consent is made upon
this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Holders of
any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws. Each Person who acquires this Certificate or an
interest therein shall be deemed to have made the representations required by
the representation letter referred to in this paragraph, unless such Person
shall have provided such representation letter referred to in this paragraph to
the Certificate Registrar.

                                B-3-5

<PAGE>

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                B-3-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                              U.S. BANK NATIONAL ASSOCIATION, as
                                              Trustee

                                              By:_______________________________
                                                        Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                        as Certificate Registrar

                                              By:_______________________________
                                                        Authorized Signatory

Date of authentication: June 27, 2003

                                     B-3-7

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>           <C>                               <C>                     <C>
TEN COM  -    as tenants in common              UNIF GIFT MIN ACT  -    Custodian
                                                                        (Cust) (Minor)
TEN ENT  -    as tenants by the entireties                              under Uniform
                                                                        Gifts to Minors
                                                                        Act
JT TEN   -    as joint tenants with right of                            _______________
              survivorship and not as tenants                               (State)
              in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     B-3-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                           ____________________________________
                                           Signature by or on behalf of assignor

                                           ____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
for the account of_____________________________________________________________,
account number_________________________________________________________________,
or, if mailed by check, to_____________________________________________________.
Applicable statements should be mailed to_______________________________________
_______________________________________________ This information is provided by
_______________________________________________________________________________,
the assignee named above, or___________________________________________________,
as its agent.

                                     B-3-9
<PAGE>

                                  EXHIBIT C-1-1

                          [FORM OF CLASS R CERTIFICATE]

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED
         STATES PERSON.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS THE "RESIDUAL INTEREST" IN FOUR SEPARATE "REAL
         ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         THIS CLASS R CERTIFICATE IS SUBORDINATE TO THE OFFERED
         CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN
         AND IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS R CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS
         UNTIL SUCH TIME AS DESCRIBED IN THE AGREEMENT REFERRED TO
         HEREIN.

         THIS CLASS R CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933
         ACT"), OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE,
         TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
         SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A
         TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION OR
         QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF
         SECTION 5.02 OF THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS R CERTIFICATE MAY NOT BE PURCHASED BY OR
         TRANSFERRED TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE CODE OR PROVISIONS OF OTHER FEDERAL, STATE OR
         LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE
         FOREGOING PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A
         "PLAN"), OR A PERSON ACTING ON BEHALF OF OR INVESTING THE
         ASSETS OF A PLAN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R
         CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE
         PROVIDES (1) AN AFFIDAVIT TO THE CERTIFICATE REGISTRAR THAT
         SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR
         POLITICAL SUBDIVISION THEREOF, ANY

                                    C-1-1-1

<PAGE>

         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) WHICH IS
         EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
         ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE,
         (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE
         (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B) OR (C)
         BEING HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D)
         AN AGENT OF A DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH
         TRANSFER IS TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND (3) SUCH
         TRANSFEREE SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
         FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
         REGISTRATION IN THE CERTIFICATE REGISTER OR ANY TRANSFER, SALE OR OTHER
         DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED ORGANIZATION
         OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
         DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON
         SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
         HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS
         ON THIS CERTIFICATE. EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE
         OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS
         OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(D) OF THE
         AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED
         ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS
         CLASS R CERTIFICATE.

                                     C-1-1-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2003-CB3, CLASS R

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
<TABLE>
<S>                                          <C>
Series 2003-CB3, Class R                     Servicer:  Litton Loan Servicing LP

Date of Pooling and  Servicing Agreement     Trustee:  U.S. Bank National Association
and Cut-off Date: June 1, 2003
First Distribution Date:  July 25, 2003      Closing Date:  June 27, 2003

No.

Percentage Interest:  100%
</TABLE>

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that Residual Interest Investments, L.P. is the
registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class R Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Credit-Based Asset Servicing and Securitization LLC (the
"Seller"), the Servicer and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate

                                     C-1-1-3

<PAGE>

Registrar in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
R Certificates the aggregate Percentage Interest of which is in excess of a 66%
Percentage Interest of the Class R Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

         The Class R Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

                                     C-1-1-4

<PAGE>

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

         No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing the Certificate or interest therein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan.

         The Holder of this Certificate, by its acceptance hereof, shall be
deemed for all purposes to have consented to the provisions of Section 5.02 of
the Agreement and to any amendment of the Agreement deemed necessary by counsel
of the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause any REMIC
provided for in the Trust Agreement to cease to qualify as a REMIC or cause the
imposition of a tax upon the Trust.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

                                     C-1-1-5

<PAGE>

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-1-1-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                        U.S. BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:_________________________________
                                                 Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                        By:_________________________________
                                               Authorized Signatory

Date of authentication: June 27, 2003

                                     C-1-1-7

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>             <C>                                  <C>                      <C>
TEN COM         -  as tenants in common              UNIF GIFT MIN ACT        -  Custodian
                                                                                 (Cust) (Minor)
TEN ENT         -  as tenants by the entireties                                  under Uniform
                                                                                 Gifts to Minors
JT TEN          -  as joint tenants  with right of                               Act
                   survivorship and not as tenants                                 ________________
                   in common                                                          (State)
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     C-1-1-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto- ______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:

                                        _______________________________________
                                        Signature by or on behalf of assignor

                                        _______________________________________
                                        Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________
_______________________________________________________________________________
for the account of ________________________, account number ___________________,
or, if mailed by check, to______________________ Applicable statements should be
mailed to ______________________________________ This information is provided
by_________________________________________________________, the assignee named
above, or______________________________, as its agent.

                                     C-1-1-9

<PAGE>

                                  EXHIBIT C-1-2

                         [FORM OF CLASS R-X CERTIFICATE]

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED
         STATES PERSON.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS THE "RESIDUAL INTEREST" IN FOUR SEPARATE "REAL
         ESTATE MORTGAGE INVESTMENT CONDUITS," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         THIS CLASS R-X CERTIFICATE IS SUBORDINATE TO THE OFFERED
         CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN
         AND IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS R-X CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS
         UNTIL SUCH TIME AS DESCRIBED IN THE AGREEMENT REFERRED TO
         HEREIN.

         THIS CLASS R-X CERTIFICATE HAS NOT BEEN REGISTERED OR
         QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE,
         TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
         SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A
         TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION OR
         QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF
         SECTION 5.02 OF THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS R-X CERTIFICATE MAY NOT BE PURCHASED BY OR
         TRANSFERRED TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE CODE OR PROVISIONS OF OTHER FEDERAL, STATE OR
         LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE
         FOREGOING PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A
         "PLAN"), OR A PERSON ACTING ON BEHALF OF OR INVESTING THE
         ASSETS OF A PLAN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R-X
         CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE
         PROVIDES (1) AN AFFIDAVIT TO THE CERTIFICATE REGISTRAR THAT
         SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY STATE OR
         POLITICAL SUBDIVISION THEREOF, ANY

                                     C-1-2-1

<PAGE>

         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY
         AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY
         ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
         521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY
         CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO
         THE TAX IMPOSED BY SECTION 511 OF THE CODE, (C) ANY
         ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE
         (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B)
         OR (C) BEING HEREINAFTER REFERRED TO AS A "DISQUALIFIED
         ORGANIZATION"), OR (D) AN AGENT OF A DISQUALIFIED
         ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE
         THE ASSESSMENT OR COLLECTION OF TAX, AND (3) SUCH TRANSFEREE
         SATISFIES CERTAIN ADDITIONAL CONDITIONS RELATING TO THE
         FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.
         NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER
         OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R-X
         CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A
         DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED
         TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON
         SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
         HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
         DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF A CLASS R-X
         CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED
         TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE
         PROVISIONS OF SECTION 5.02(D) OF THE AGREEMENT REFERRED TO
         HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS
         PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CLASS
         R-X CERTIFICATE.

                                     C-1-2-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS R-X

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                                          <C>
Series 2003-CB3, Class R-X                                   Servicer:  Litton Loan Servicing LP

Date of Pooling and Servicing  Agreement and                 Trustee:  U.S. Bank National Association
Cut-off Date: June 1, 2003
First Distribution Date:  July 25, 2003                      Closing Date:  June 27, 2003

No.

Percentage Interest:  100%
</TABLE>

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MERRILL LYNCH MORTGAGE INVESTORS, INC., THE SERVICER, THE TRUSTEE OR
         ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY
         AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that Residual Interest Investments, L.P. is the
registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class R-X Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Credit-Based Asset Servicing and Securitization LLC (the
"Seller"), the Servicer and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R-X Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate

                                     C-1-2-3

<PAGE>

Registrar in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
R-X Certificates the aggregate Percentage Interest of which is in excess of a
66% Percentage Interest of the Class R-X Certificates, or by check mailed by
first class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

         The Class R-X Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for

                                     C-1-2-4

<PAGE>

new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest, as requested by the Holder surrendering the
same.

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

         No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing the Certificate or interest therein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan.

         The Holder of this Certificate, by its acceptance hereof, shall be
deemed for all purposes to have consented to the provisions of Section 5.02 of
the Agreement and to any amendment of the Agreement deemed necessary by counsel
of the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause any REMIC
provided for in the Trust Agreement to cease to qualify as a REMIC or cause the
imposition of a tax upon the Trust.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof

                                     C-1-2-5

<PAGE>

for all purposes, and none of the Depositor, the Servicer, the Trustee, the
Certificate Registrar, any Paying Agent nor any such agent shall be affected by
notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-1-2-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                        U.S. BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:____________________________________
                                                    Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                          as Certificate Registrar

                                        By:____________________________________
                                                    Authorized Signatory

Date of authentication: June 27, 2003

                                     C-1-2-7

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>             <C>                                  <C>                      <C>
TEN COM         -  as tenants in common              UNIF GIFT MIN ACT        -  Custodian
                                                                                 (Cust) (Minor)
TEN ENT         -  as tenants by the entireties                                  under Uniform
                                                                                 Gifts to Minors Act

JT TEN          -  as joint tenants  with right of                               ___________________
                   survivorship and not as tenants                                     (State)
                   in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     C-1-2-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_______________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:

                                        _______________________________________
                                        Signature by or on behalf of assignor

                                        _______________________________________
                                        Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________
_______________________________________________________________________________
for the account of ________________________, account number ___________________,
or, if mailed by check, to______________________ Applicable statements should be
mailed to ______________________________________ This information is provided
by_________________________________________________________, the assignee named
above, or______________________________, as its agent.

                                     C-1-2-9

<PAGE>

                                   EXHIBIT C-2

                         [FORM OF CLASS M-1 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
         CLASS A CERTIFICATES AS DESCRIBED IN THE AGREEMENT REFERRED
         TO HEREIN.

         EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT
         REFERRED TO HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY
         OR TRANSFERRED TO ANY PERSON THAT HAS NOT DELIVERED A
         REPRESENTATION LETTER STATING EITHER (A) THAT THE TRANSFEREE
         IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
         "CODE"), OR PROVISIONS OF OTHER FEDERAL, STATE OR LOCAL LAW
         WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE FOREGOING
         PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), AND
         IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN
         OR (B) THE TRANSFEREE IS AN INSURANCE COMPANY AND THE SOURCE
         OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE
         COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION
         V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 ("PTCE
         95-60")) AND THAT THE PURCHASE AND HOLDING OF THE CERTIFICATE
         ARE COVERED UNDER SECTIONS I AND III OF PTCE 95-60. EACH
         PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN
         SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS REQUIRED BY
         THE REPRESENTATION

                                      C-2-1

<PAGE>

         LETTER REFERRED TO IN THE PRECEDING SENTENCE, UNLESS SUCH
         PERSON SHALL HAVE PROVIDED SUCH REPRESENTATION LETTER
         REFERRED TO IN THE PRECEDING SENTENCE TO THE CERTIFICATE
         REGISTRAR. THE AGREEMENT PROVIDES THAT ANY ATTEMPTED OR
         PURPORTED TRANSFER IN VIOLATION OF THESE TRANSFER
         RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO RIGHTS IN
         ANY PURPORTED TRANSFEREE.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS
         BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE
         INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
         SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
         (THE "CODE") AND CERTAIN OTHER PROPERTY.

                                      C-2-2

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS M-1

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                               <C>
Series 2003-CB3, Class M-1                        Original Class Certificate Principal Balance
                                                  of the Class M-1 Certificates as of
                                                  the Closing Date: $14,850,000.00

Pass-Through Rate:  4.271%

Date of Pooling and Servicing  Agreement and      Initial Certificate Principal Balance:
Cut-off Date:  June 1, 2003                       $14,850,000.00
First Distribution Date:  July 25, 2003           Servicer:  Litton Loan Servicing LP

No.                                               Trustee:  U.S. Bank National Association

CUSIP: 12489W GM 0                                Closing Date:  June 27, 2003

ISIN: US12489WGM01
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class M-1
Certificates) in that certain beneficial ownership interest evidenced by all the
Class M-1 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                                      C-2-3

<PAGE>

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class M-1 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class M-1 Pass-Through Rate on each Distribution Date will be the
per annum rate specified above, subject to increase as provided in the
Agreement. Interest will accrue on the Class M-1 Certificates during each
Interest Accrual Period at a rate equal to the lesser of (i) the Class M-1
Pass-Through Rate and (ii) the Subordinate Net WAC for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-1 Certificates.

         The Class M-1 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         This Certificate is subordinated in right of payment to the Class A
Certificates as described in the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate

                                      C-2-4

<PAGE>

and of any Certificate issued upon the transfer hereof or in exchange herefor or
in lieu hereof whether or not notation of such consent is made upon this
Certificate. The Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of the
Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

                                      C-2-5

<PAGE>

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      C-2-6

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                        U.S. BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:___________________________________
                                                   Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                        By:___________________________________
                                                   Authorized Signatory
Date of authentication: June 27, 2003

                                      C-2-7

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>             <C>                                  <C>                       <C>
TEN COM         -  as tenants in common              UNIF GIFT MIN ACT         - Custodian
                                                                                 (Cust) (Minor)
TEN ENT         -  as tenants by the entireties                                  under Uniform
                                                                                 Gifts to Minors Act

JT TEN          -  as joint tenants  with right of                               __________________
                   survivorship and not as tenants                                     (State)
                   in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                      C-2-8

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto____________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:

                                        ________________________________________
                                        Signature by or on behalf of assignor

                                        ________________________________________
                                        Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________
_______________________________________________________________________________
for the account of ________________________, account number ___________________,
or, if mailed by check, to______________________ Applicable statements should be
mailed to ______________________________________ This information is provided
by_________________________________________________________, the assignee named
above, or______________________________, as its agent.

                                      C-2-9

<PAGE>

                                   EXHIBIT C-3

                         [FORM OF CLASS M-2 CERTIFICATE]

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
         REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
         CORPORATION ("DTC"), TO THE TRUSTEE OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
         CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
         IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
         OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
         HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
         INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
         INTEREST HEREIN.

         THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
         CLASS A AND CLASS M-1 CERTIFICATES AS DESCRIBED IN THE
         AGREEMENT REFERRED TO HEREIN.

         EXCEPT AS PROVIDED IN SECTION 5.02(D) OF THE AGREEMENT
         REFERRED TO HEREIN, THIS CERTIFICATE MAY NOT BE PURCHASED BY
         OR TRANSFERRED TO ANY PERSON THAT HAS NOT DELIVERED A
         REPRESENTATION LETTER STATING EITHER (A) THAT THE TRANSFEREE
         IS NOT AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
         ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
         INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR SECTION
         4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
         "CODE"), OR PROVISIONS OF OTHER FEDERAL, STATE OR LOCAL LAW
         WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE FOREGOING
         PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), AND
         IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN
         OR (B) THE TRANSFEREE IS AN INSURANCE COMPANY AND THE SOURCE
         OF FUNDS USED TO PURCHASE THIS CERTIFICATE IS AN "INSURANCE
         COMPANY GENERAL ACCOUNT" (AS SUCH TERM IS DEFINED IN SECTION
         V(E) OF PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 ("PTCE
         95-60")) AND THAT THE PURCHASE AND HOLDING OF THE CERTIFICATE
         ARE COVERED UNDER SECTIONS I AND III OF PTCE 95-60. EACH
         PERSON WHO ACQUIRES THIS CERTIFICATE OR ANY INTEREST THEREIN
         SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS REQUIRED BY
         THE REPRESENTATION LETTER REFERRED TO IN THE PRECEDING
         SENTENCE, UNLESS SUCH PERSON SHALL HAVE PROVIDED SUCH
         REPRESENTATION

                                      C-3-1

<PAGE>

         LETTER REFERRED TO IN THE PRECEDING SENTENCE TO THE
         CERTIFICATE REGISTRAR. THE AGREEMENT PROVIDES THAT ANY
         ATTEMPTED OR PURPORTED TRANSFER IN VIOLATION OF THESE
         TRANSFER RESTRICTIONS WILL BE NULL AND VOID AND WILL VEST NO
         RIGHTS IN ANY PURPORTED TRANSFEREE.

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS BENEFICIAL OWNERSHIP OF A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
         DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND
         CERTAIN OTHER PROPERTY.

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                           SERIES 2003-CB3, CLASS M-2

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

<TABLE>
<S>                                                  <C>
Series 2003-CB3, Class M-2                           Original Class Certificate Principal Balance
                                                     of the Class M-2 Certificates as ofthe
                                                     Closing Date: $14,850,000.00

Pass-Through Rate:  4.562%

Date of Pooling and Servicing  Agreement and         Initial Certificate Principal Balance:
Cut-off Date: June 1, 2003                           $14,850,000.00
First Distribution Date: July 25, 2003               Servicer:  Litton Loan Servicing LP

No.                                                  Trustee:  U.S. Bank National Association

CUSIP: 12489W GN 8                                   Closing Date:  June 27, 2003

ISIN: US12489WGN83
</TABLE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
         BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
         HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
         BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
         ABOVE.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                                      C-3-2

<PAGE>

         This certifies that CEDE & CO. is the registered owner of a Percentage
Interest (obtained by dividing the Initial Certificate Principal Balance of this
Certificate by the Original Class Certificate Principal Balance of the Class M-2
Certificates) in that certain beneficial ownership interest evidenced by all the
Class M-2 Certificates in the Trust Fund created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Merrill
Lynch Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class M-2 Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of
$5,000,000, or by check mailed by first class mail to the address of the Person
entitled thereto, as such name and address shall appear on the Certificate
Register, provided that the Certificate Registrar may deduct a reasonable wire
transfer fee from any payment made by wire transfer. Notwithstanding the above,
the final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

         The Class M-2 Pass-Through Rate on each Distribution Date will be the
per annum rate specified above, subject to increase as provided in the
Agreement. Interest will accrue on the Class M-2 Certificates during each
Interest Accrual Period at a rate equal to the lesser of (i) the Class M-2
Pass-Through Rate and (ii) the Subordinate Net WAC for such Distribution Date.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class M-2 Certificates.

         The Class M-2 Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the

                                      C-3-3

<PAGE>

Distribution Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement of
advances made, or certain expenses incurred, with respect to the Mortgage Loans.

         This Certificate is subordinated in right of payment to the Class A and
Class M-1 Certificates as described in the Agreement.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations specified in the Agreement. As provided in
the Agreement and subject to certain limitations therein set forth, Certificates
are exchangeable for new Certificates of the same Class in authorized
denominations evidencing the same aggregate Percentage Interest, as requested by
the Holder surrendering the same.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the

                                      C-3-4

<PAGE>

Trustee and required to be paid to them pursuant to the Agreement following the
earlier of (i) the final payment or other liquidation (or any advance with
respect thereto) of the last Mortgage Loan remaining in the Trust Fund, and (ii)
the purchase by the party designated in the Agreement at a price determined as
provided in the Agreement from the Trust Fund of all Mortgage Loans and all
property acquired in respect of such Mortgage Loans. The Agreement permits, but
does not require, the party designated in the Agreement to purchase from the
Trust Fund all Mortgage Loans and all property acquired in respect of any
Mortgage Loan at a price determined as provided in the Agreement. The exercise
of such right will effect early retirement of the Certificates; however, such
right to purchase is subject to the aggregate Principal Balance of the Mortgage
Loans at the time of purchase being 10% or less of the Cut-off Date Aggregate
Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      C-3-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                        U.S. BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:____________________________________
                                                  Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                            as Certificate Registrar

                                        By:____________________________________
                                                 Authorized Signatory
Date of authentication: June 27, 2003

                                      C-3-6

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
<TABLE>
<S>             <C>                                  <C>                      <C>
TEN COM         -  as tenants in common              UNIF GIFT MIN ACT        - Custodian
                                                                                (Cust) (Minor)
TEN ENT         -  as tenants by the entireties                                 under Uniform
                                                                                Gifts to Minors Act

JT TEN          -  as joint tenants  with right of                              ___________________
                   survivorship and not as tenants                                    (State)
                   in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                      C-3-7

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto_____________________________________________________________
_______________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                        ________________________________________
                                        Signature by or on behalf of assignor

                                        ________________________________________
                                        Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________
_______________________________________________________________________________
for the account of ________________________, account number ___________________,
or, if mailed by check, to______________________ Applicable statements should be
mailed to ______________________________________ This information is provided
by_________________________________________________________, the assignee named
above, or______________________________, as its agent.

                                      C-3-8

<PAGE>

                                   EXHIBIT C-4

                         [FORM OF CLASS X CERTIFICATES]

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
         REPRESENTS A DIRECT OR INDIRECT BENEFICIAL INTEREST IN A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT
         CONDUIT," AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN
         SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
         AS AMENDED (THE "CODE") AND THE OBLIGATION TO MAKE CERTAIN
         PAYMENTS.

         THIS CLASS X CERTIFICATE IS SUBORDINATE TO THE OFFERED
         CERTIFICATES OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN
         AND IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS X CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS
         UNTIL SUCH TIME AS DESCRIBED IN THE AGREEMENT REFERRED TO
         HEREIN.

         THIS CLASS X CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933
         ACT"), OR THE SECURITIES LAWS OF ANY STATE. ANY RESALE,
         TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT
         SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A
         TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION OR
         QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF
         SECTION 5.02 OF THE AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN
         OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE
         RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR THE
         CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE WITH THE
         PROCEDURES DESCRIBED IN THE AGREEMENT.

                                      C-4-1

<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2003-CB3, CLASS X

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
<TABLE>
<S>                                                          <C>
Series 2003-CB3, Class X                                     Servicer:  Litton Loan Servicing LP

Date of Pooling and Servicing Agreement and Cut-off Date:    Trustee: U.S. Bank National Association
June 1, 2003
First Distribution Date:  July 25, 2003                      Closing Date:  June 27, 2003

No.

Percentage Interest: 100%
</TABLE>

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR
         INTEREST IN MERRILL LYNCH MORTGAGE INVESTORS, INC., THE
         SERVICER, THE TRUSTEE OR ANY OF THEIR AFFILIATES. THIS
         CERTIFICATE IS NOT GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that Merrill Lynch, Pierce, Fenner & Smith Incorporated
is the registered owner of a Percentage Interest set forth above in that certain
beneficial ownership interest evidenced by all the Class X Certificates in the
Trust Fund created pursuant to a Pooling and Servicing Agreement, dated as
specified above (the "Agreement"), among Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor," which term includes any successor entity
under the Agreement), Credit-Based Asset Servicing and Securitization LLC (the
"Seller"), the Servicer and the Trustee, a summary of certain of the pertinent
provisions of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs (the "Record
Date"), from funds in the Distribution Account in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class X Certificates on such Distribution
Date pursuant to the Agreement.

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate

                                      C-4-2

<PAGE>

Registrar in writing at least five Business Days prior to the Record Date
immediately prior to such Distribution Date and is the registered owner of Class
X Certificates the aggregate Initial Certificate Principal Balance of which is
in excess of a 66% Percentage Interest of the Class X Certificates, or by check
mailed by first class mail to the address of the Person entitled thereto, as
such name and address shall appear on the Certificate Register, provided that
the Certificate Registrar may deduct a reasonable wire transfer fee from any
payment made by wire transfer. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Trustee of the pendency
of such distribution and only upon presentation and surrender of this
Certificate at the office or agency appointed by the Trustee for that purpose as
provided in the Agreement.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

         The Class X Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for

                                      C-4-3

<PAGE>

new Certificates of the same Class in authorized denominations evidencing the
same aggregate Percentage Interest, as requested by the Holder surrendering the
same.

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

         No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing the Certificate or interest therein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement

                                      C-4-4

<PAGE>

at a price determined as provided in the Agreement from the Trust Fund of all
Mortgage Loans and all property acquired in respect of such Mortgage Loans. The
Agreement permits, but does not require, the party designated in the Agreement
to purchase from the Trust Fund all Mortgage Loans and all property acquired in
respect of any Mortgage Loan at a price determined as provided in the Agreement.
The exercise of such right will effect early retirement of the Certificates;
however, such right to purchase is subject to the aggregate Principal Balance of
the Mortgage Loans at the time of purchase being 10% or less of the Cut-off Date
Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      C-4-5

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  June 27, 2003

                                        U.S. BANK NATIONAL ASSOCIATION, as
                                        Trustee

                                        By:_____________________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                        U.S. BANK NATIONAL ASSOCIATION,
                                             as Certificate Registrar

                                        By:_____________________________________
                                                  Authorized Signatory

Date of authentication: June 27, 2003

                                     C-4-6

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>             <C>                                  <C>                      <C>
TEN COM         -  as tenants in common              UNIF GIFT MIN ACT        -   Custodian
                                                                                  (Cust) (Minor)
TEN ENT         -  as tenants by the entireties                                   under Uniform
                                                                                  Gifts to Minors
JT TEN          -  as joint tenants  with right of                                Act
                   survivorship and not as tenants                                __________________
                   in common                                                            (State)
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                      C-4-7

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto______________________________________________________________
____________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:
                                        ________________________________________
                                        Signature by or on behalf of assignor

                                        ________________________________________
                                        Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to ____________________________________________________________
_______________________________________________________________________________
for the account of ________________________, account number ___________________,
or, if mailed by check, to______________________ Applicable statements should be
mailed to ______________________________________ This information is provided
by_________________________________________________________, the assignee named
above, or______________________________, as its agent.

                                      C-4-8

<PAGE>

                                   EXHIBIT C-5

                          [FORM OF CLASS N CERTIFICATE]

         FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS A
         DIRECT OR INDIRECT BENEFICIAL INTEREST IN A "REGULAR INTEREST" IN A
         "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED,
         RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
         1986, AS AMENDED (THE "CODE") AND THE OBLIGATION TO MAKE CERTAIN
         PAYMENTS.

         THIS CLASS N CERTIFICATE IS SUBORDINATE TO THE OFFERED CERTIFICATES OF
         THIS SERIES TO THE EXTENT DESCRIBED HEREIN AND IN THE AGREEMENT
         REFERRED TO HEREIN.

         THIS CLASS N CERTIFICATE WILL NOT BE ENTITLED TO PAYMENTS UNTIL SUCH
         TIME AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS N CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES
         LAWS OF ANY STATE. ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
         CERTIFICATE WITHOUT SUCH REGISTRATION OR QUALIFICATION MAY BE MADE ONLY
         IN A TRANSACTION THAT DOES NOT REQUIRE SUCH REGISTRATION OR
         QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT REFERRED TO HEREIN.

         THIS CLASS N CERTIFICATE MAY NOT BE PURCHASED BY OR TRANSFERRED TO AN
         EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT SUBJECT TO TITLE
         I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
         ("ERISA"), OR SECTION 4975 OF THE CODE OR PROVISIONS OF OTHER FEDERAL,
         STATE OR LOCAL LAW WHICH IS, TO A MATERIAL EXTENT, SIMILAR TO THE
         FOREGOING PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, A "PLAN"), OR
         A PERSON ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A PLAN.

                                     C-5-1
<PAGE>

                 C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                            SERIES 2003-CB3, CLASS N

evidencing a beneficial ownership interest in a portion of a Trust Fund
consisting primarily of a pool of conventional fixed-rate and adjustable-rate
one- to four-family first and second lien mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
<TABLE>
<S>                                                          <C>
Series 2003-CB3, Class N                                     Original Class Certificate Notional Balance of the
                                                             Class N Certificates as of the Closing Date: $1.00
Pass-Through Rate: 0.00%                                     Initial Notional Amount: $1.00

Date of Pooling and Servicing Agreement                      Servicer: Litton Loan Servicing LP
and Cut-off Date: June 1, 2003
First Distribution Date: July 25, 2003                       Trustee: U.S. Bank National Association

No.                                                          Closing Date: June 27, 2003
</TABLE>

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MERRILL LYNCH MORTGAGE INVESTORS, INC., THE SERVICER, THE TRUSTEE OR
         ANY OF THEIR AFFILIATES. THIS CERTIFICATE IS NOT GUARANTEED BY ANY
         AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

         This certifies that Merrill Lynch, Pierce, Fenner & Smith Incorporated
is the registered owner of a Percentage Interest (obtained by dividing the
Initial Notional Amount of this Certificate by the Original Class N Notional
Amount) in that certain beneficial ownership interest evidenced by all the Class
N Certificates in the Trust Fund created pursuant to a Pooling and Servicing
Agreement, dated as specified above (the "Agreement"), among Merrill Lynch
Mortgage Investors, Inc. (hereinafter called the "Depositor," which term
includes any successor entity under the Agreement), Credit-Based Asset Servicing
and Securitization LLC (the "Seller"), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         Pursuant to the terms of the Agreement, distributions will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (a "Distribution Date"), commencing on the
first Distribution Date specified above, to the Person in whose name this
Certificate is registered on the last Business Day of the month immediately
preceding the month in which the related Distribution Date occurs or the Closing
Date in the case of the first Distribution Date (the "Record Date"), from funds
in the Distribution Account in an amount equal to the product of the Percentage
Interest evidenced by this Certificate and the amount required to be distributed
to the Holders of Class N Certificates on such Distribution Date pursuant to the
Agreement.

                                     C-5-2
<PAGE>

         All distributions to the Holder of this Certificate under the Agreement
will be made or caused to be made by or on behalf of the Trustee by wire
transfer in immediately available funds to the account of the Person entitled
thereto if such Person shall have so notified the Certificate Registrar in
writing at least five Business Days prior to the Record Date immediately prior
to such Distribution Date and is the registered owner of Class N Certificates
the aggregate Initial Certificate Principal Balance of which is in excess of a
66% Percentage Interest of the Class N Certificates, or by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register, provided that the Certificate
Registrar may deduct a reasonable wire transfer fee from any payment made by
wire transfer. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

         The Pass-Through Rate for this Class N Certificates on each
Distribution Date will be the per annum rate specified above.

         This Certificate is one of a duly authorized issue of Certificates
designated as C-BASS Mortgage Loan Asset-Backed Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
the Percentage Interest specified on the face hereof.

         The Class N Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than distributions to
Certificateholders, such purposes including reimbursement of advances made, or
certain expenses incurred, with respect to the Mortgage Loans.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor, the Servicer, the Trustee, the Seller and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer, the Seller and the Trustee with the consent of the Holders of
Certificates entitled to the Voting Rights identified in the agreement. Any such
consent by the Holder of this Certificate shall be conclusive and binding on
such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies appointed by the Trustee as provided in the Agreement, duly
endorsed by, or accompanied by an assignment in the form below or other written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in

                                     C-5-3
<PAGE>

authorized denominations evidencing the same aggregate Percentage Interest will
be issued to the designated transferee or transferees.

         The Certificates are issuable in fully registered form only without
coupons in Classes and denominations representing Percentage Interests specified
in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.

         No transfer of this Certificate shall be made unless that transfer is
made pursuant to an effective registration statement under the 1933 Act and
effective registration or qualification under applicable state securities laws,
or is made in a transaction that does not require such registration or
qualification. In the event that a transfer is to be made without registration
or qualification (i) the Certificateholder desiring to effect the transfer and
such Certificateholder's prospective transferee shall each execute a
representation letter in the form described by the Agreement certifying to the
Certificate Registrar the facts surrounding the transfer, and (ii) unless such
transfer is made in reliance upon Rule 144A under the 1933 Act, the Depositor
and the Certificate Registrar may require an Opinion of Counsel satisfactory to
them that such transfer may be made without such registration or qualification,
which Opinion of Counsel shall not be an expense of the Depositor, the Trustee
or the Certificate Registrar, in their respective capacities as such. None of
the Depositor, the Certificate Registrar or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any such Certificateholder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trustee, the
Depositor, the Certificate Registrar and the Servicer against any liability that
may result if the transfer is not so exempt or is not made in accordance with
such federal and state laws.

         No transfer of a Certificate or any interest therein may be made to
employee benefit plans and certain other retirement plans and arrangements,
including individual retirement accounts and annuities, Keogh plans and
collective investment funds and separate accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code ("Plans") or any person who is
directly or indirectly purchasing the Certificate or interest therein on behalf
of, as named fiduciary of, as trustee of, or with assets of a Plan.

         No service charge will be made for any such registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

         The Depositor, the Servicer, the Trustee, any Paying Agent and the
Certificate Registrar and any agent of the Depositor, the Servicer, the Trustee,
any Paying Agent or the Certificate Registrar may treat the Person in whose name
this Certificate is registered as the owner hereof for all purposes, and none of
the Depositor, the Servicer, the Trustee, the Certificate Registrar, any Paying
Agent nor any such agent shall be affected by notice to the contrary.

                                     C-5-4
<PAGE>

         The obligations created by the Agreement and the Trust Fund created
thereby shall terminate upon payment to the Certificateholders of all amounts
held by or on behalf of the Trustee and required to be paid to them pursuant to
the Agreement following the earlier of (i) the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust Fund, and (ii) the purchase by the party designated in
the Agreement at a price determined as provided in the Agreement from the Trust
Fund of all Mortgage Loans and all property acquired in respect of such Mortgage
Loans. The Agreement permits, but does not require, the party designated in the
Agreement to purchase from the Trust Fund all Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase being 10% or
less of the Cut-off Date Aggregate Principal Balance.

         The recitals contained herein shall be taken as statements of the
Depositor and the Trustee assumes no responsibility for their correctness.

         Unless the certificate of authentication hereon has been executed by
the Certificate Registrar, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                     C-5-5
<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated: June 27, 2003

                                             U.S. BANK NATIONAL ASSOCIATION, as
                                             Trustee

                                             By: _________________________
                                                      Authorized Officer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                             U.S. BANK NATIONAL ASSOCIATION,
                                                   as Certificate Registrar

                                             By: _________________________
                                                      Authorized Officer

Date of authentication: June 27, 2003

                                     C-5-6
<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>                <C>                                    <C>                      <C>
TEN COM       -    as tenants in common                   UNIF GIFT MIN ACT   -    Custodian
                                                                                   (Cust) (Minor)
TEN ENT       -    as tenants by the entireties                                    under Uniform
                                                                                   Gifts to Minors Act

JT TEN        -    as joint tenants with right of                                  ___________________
                   survivorship and not as tenants                                      (State)
                   in common
</TABLE>

     Additional abbreviations may also be used though not in the above list.

                                     C-5-7
<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
 transfer(s) unto_______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee)

a Percentage Interest equal to ____% evidenced by the within asset-backed
Certificate and hereby authorize(s) the registration of transfer of such
interest to assignee on the Certificate Register of the Trust Fund.

         I (we) further direct the Certificate Registrar to issue a new
Certificate of a like Percentage Interest and Class to the above named assignee
and deliver such Certificate to the following address:

________________________________________________________________________________

Dated:

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

Distributions shall be made, by wire transfer or otherwise, in immediately
available funds to______________________________________________________________
________________________________________________________________________________
for the account of______________, account number________________, or, if mailed
by check, to______________________________________________________________.
Applicable statements should be mailed to_______________________________________
This information is provided by___________________________________________
___________, the assignee named above, or_________________________________
______________, as its agent.

                                     C-5-8
<PAGE>

                                   EXHIBIT D-1

                         GROUP I MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                     D-1-1

<PAGE>

                                   EXHIBIT D-2

                         GROUP II MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                     D-2-1

<PAGE>

                                    EXHIBIT E

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:      U.S. Bank National Association
         180 East Fifth Street
         St. Paul, Minnesota 55101
         Attention: Corporate Trust

         Re:      Pooling and Servicing Agreement dated as of June 1, 2003 among
                  Merrill Lynch Mortgage Investors, Inc., as depositor,
                  Credit-Based Asset Servicing and Securitization LLC, as
                  seller, Litton Loan Servicing LP, as servicer and U.S. Bank
                  Narional Association.

         All capitalized terms used herein shall have the means ascribed to them
in the Pooling and Servicing Agreement (the "Agreement") referenced above.

         In connection with the administration of the Mortgage Loans held by you
as Trustee pursuant to the Agreement, we request the release, and hereby
acknowledge receipt, of the Trustee's Mortgage File for the Mortgage Loan
described below, for the reason indicated.

Mortgage Loan Number:

Mortgagor Name, Address & Zip Code:

Reason for Requesting Documents (check one):

_____ 1.       Mortgage Paid in Full

_____ 2.       Foreclosure

_____ 3.       Substitution

_____ 4.       Other Liquidation (Repurchases, etc.)

_____ 5.       Nonliquidation           Reason:________________________

                                        By:____________________________

                                               (authorized signer)

                                        Issuer:________________________

                                        Address:_______________________

                                        _______________________________

                                        Date:__________________________

                                      E-1

<PAGE>

Custodian

The Bank of New York

         Please acknowledge the execution of the above request by your signature
and date below:

____________________________________                 ______________________
Signature                                            Date

Documents returned to Custodian:

____________________________________                 ______________________
Custodian                                            Date

                                      E-2

<PAGE>

                                   EXHIBIT F-1

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                                   Date

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

Litton Loan Servicing LP
4828 Loop Central Drive
Houston, Texas 77081

         Re:      Pooling and Servicing Agreement (the "Pooling and Servicing
                  Agreement"), dated as of June 1, 2003 among Merrill Lynch
                  Mortgage Investors, Inc., as depositor, Credit-Based Asset
                  Servicing and Securitization LLC, as seller, Litton Loan
                  Servicing LP, as servicer, and U.S. Bank National Association,
                  as trustee with respect to C-BASS Mortgage Loan Asset-Backed
                  Certificates, Series 2003-CB3.

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that it received confirmation from
the Custodian that the Custodian has received the documents listed in Section
2.01 of the Pooling and Servicing Agreement for each Mortgage File pertaining to
each Mortgage Loan listed on Schedule A, to the Pooling and Servicing Agreement,
subject to any exceptions noted on Schedule I hereto.

         Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Pooling and
Servicing Agreement. This Certificate is subject in all respects to the terms of
Section 2.02 of the Pooling and Servicing Agreement and the Pooling and
Servicing Agreement sections cross-referenced therein.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                                       as Trustee

                                              By:________________________
                                              Name:
                                              Title:

                                     F-1-1

<PAGE>

                                   EXHIBIT F-2

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                                   [Date]

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

Litton Loan Servicing LP
4828 Loop Central Drive
Houston, Texas 77081

Re:      Pooling and Servicing Agreement (the "Pooling and Servicing
         Agreement"), dated as of June 1, 2003 among Merrill Lynch Mortgage
         Investors, Inc., as depositor, Credit-Based Asset Servicing and
         Securitization LLC, as seller, Litton Loan Servicing LP, as servicer,
         and U.S. Bank National Association, as trustee with respect to C-BASS
         Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in full
or listed on Schedule I hereto) it received confirmation from the Custodian that
the Custodian has received the applicable documents listed in Section 2.01 of
the Pooling and Servicing Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement. This
Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                             U.S. BANK NATIONAL ASSOCIATION,
                                                     as Trustee

                                             By:______________________
                                             Name:
                                             Title:

                                     F-2-1

<PAGE>

                                   EXHIBIT F-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

                                                                            Date

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

         Re:    C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of June 1, 2003, among Merrill Lynch Mortgage Investors, Inc., as depositor,
Credit-Based Asset Servicing and Securitization LLC, as seller, Litton Loan
Servicing LP, as servicer, and U.S. Bank National Association, as trustee, we
hereby acknowledge the receipt of the original Mortgage Note (a copy of which is
attached hereto as Exhibit 1) with any exceptions thereto listed on Exhibit 2.

                                                U.S. BANK NATIONAL ASSOCIATION,
                                                       as Trustee

                                                By:_________________________
                                                Name:
                                                Title:

                                     F-3-1

<PAGE>

                                    EXHIBIT G

                        MORTGAGE LOAN PURCHASE AGREEMENT

                                See Exhibit 99.1

                                      G-1

<PAGE>

                                    EXHIBIT H

                           FORM OF LOST NOTE AFFIDAVIT

         Personally appeared before me the undersigned authority to administer
oaths, ______________________ who first being duly sworn deposes and says:
Deponent is ______________________ of ______________________________, successor
by merger to _________________________________________ ("Seller") and who has
personal knowledge of the facts set out in this affidavit.

         On ___________________, _________________________ did execute and
deliver a promissory note in the principal amount of $_________.

         That said note has been misplaced or lost through causes unknown and is
presently lost and unavailable after diligent search has been made. Seller's
records show that an amount of principal and interest on said note is still
presently outstanding, due, and unpaid, and Seller is still owner and holder in
due course of said lost note.

         Seller executes this Affidavit for the purpose of inducing U.S. Bank
National Association, as trustee on behalf of C-BASS Mortgage Loan Asset-Backed
Certificates, Series 2003-CB3, to accept the transfer of the above described
loan from Seller.

         Seller agrees to indemnify and hold harmless U.S. Bank National
Association, Merrill Lynch Mortgage Investors, Inc. and J.P. Morgan Securities,
Inc. for any losses incurred by such parties resulting from the above described
promissory note has been lost or misplaced.

                                                By:________________________
                                                ___________________________

STATE OF      )
              )        SS:
COUNTY OF     )

         On this ____ day of _______ 20__, before me, a Notary Public, in and
for said County and State, appeared ________________________, who acknowledged
the extension of the foregoing and who, having been duly sworn, states that any
representations therein contained are true.

         Witness my hand and Notarial Seal this ____ day of _______ 20__.

                                              ______________________________
                                              ______________________________

My commission expires_____________.

                                      H-1

<PAGE>

                                    EXHIBIT I

                          FORM OF ERISA REPRESENTATION

                                                                            Date

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

         Re:     C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         1.       [The undersigned is the ______________________ of (the
"Transferee") a [corporation duly organized] and existing under the laws of
__________, on behalf of which he makes this affidavit.] [The undersigned,
___________________, is the transferee (the "Transferee").]

         2.       The Transferee hereby acknowledges that under the terms of the
Pooling and Servicing Agreement (the "Agreement") among Merrill Lynch Mortgage
Investors, Inc., as depositor (the "Depositor"), Credit-Based Asset Servicing
and Securitization LLC, as seller, Litton Loan Servicing LP, as servicer, and
U.S. Bank National Association, as trustee (the "Trustee"), no transfer of the
ERISA-Restricted Certificates shall be permitted to be made to any person unless
the Depositor and the Certificate Registrar (as defined in the Agreement) have
received a certificate from such transferee in the form hereof.

         3.       The Transferee either (x) (i) is not an employee benefit plan
subject to Title I of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), or Section 4975 of the Internal Revenue Code of 1986, as
amended (the "Code") or provisions of other federal, state or local law
substantially similar to the foregoing provisions of ERISA or the Code,
("Similar Law") the Trustee of any such plan or a person acting on behalf of any
such plan nor a person using the assets of any such plan or (ii) (except in the
case of the Class R, Class R-Q, Class X or Class N Certificates) is an insurance
company which is purchasing such Certificates with funds contained in an
"insurance company general account" (as such term is defined in Section V(e) of
Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60") and that the
purchase and holding of such Certificates are covered under Sections I and III
of PTCE 95-60 or (y) (except in the case of a Class R and Class R-Q Certificate)
shall deliver to the Certificate Registrar and the Depositor an opinion of
counsel (a "Benefit Plan Opinion") satisfactory to the Certificate Registrar,
and upon which the Certificate Registrar and the Depositor shall be entitled to
rely, to the effect that the purchase or holding of such Certificate by the
Transferee will not result in the assets of the Trust Fund being deemed to be
plan assets and subject to the prohibited transaction provisions of ERISA, the
Code or Similar Law and will not subject the Trustee or the

                                      I-1
<PAGE>

Depositor to any obligation in addition to those undertaken by such entities in
the Pooling and Servicing Agreement, which opinion of counsel shall not be an
expense of the Trustee or the Depositor.

         Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Agreement.

         IN WITNESS WHEREOF, the Transferee has executed this certificate.

                                             ___________________________
                                             [Transferee]

                                             ___________________________
                                             By:
                                             Name:
                                             Title:

                                      I-2

<PAGE>

                                    EXHIBIT J

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                                                [DATE]

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101

         Re:     C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         In connection with our acquisition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2003-CB3 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) we are acquiring the Certificates for investment
for our own account and not with a view to any distribution of such Certificates
(but without prejudice to our right at all times to sell or otherwise dispose of
the Certificates in accordance with clause (g) below), (e) we agree that the
Certificates must be held indefinitely by us and we acknowledge that we are able
to bear the economic risk of investment in the Certificates, (f) we have not
offered or sold any Certificates to, or solicited offers to buy any Certificates
from, any person, or otherwise approached or negotiated with any person with
respect thereto, or taken any other action which would result in a violation of
Section 5 of the Act, (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, and if requested, we will at our expense provide
an opinion of counsel satisfactory to the addressees of this Certificate that
such sale, transfer or other disposition may be made pursuant to an exemption
from the Act, (2) the purchaser or transferee of such Certificate has executed
and delivered to you a certificate to substantially the same effect as this
certificate, and (3) the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement and (h)
we acknowledge that the Certificates will bear a legend setting forth the
applicable restrictions on transfer.

                                      J-1

<PAGE>

                                           Very truly yours,

                                           [NAME OF TRANSFEREE]

                                           By:___________________________
                                                  Authorized Officer

                                      J-2

<PAGE>

                       FORM OF RULE 144A INVESTMENT LETTER

                                                                          [DATE]

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101

         Re:     C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         In connection with our acquisition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2003-CB3 (the "Certificates"), we certify that
(a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "Act"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have had the
opportunity to ask questions of and receive answers from the Depositor
concerning the purchase of the Certificates and all matters relating thereto or
any additional information deemed necessary to our decision to purchase the
Certificates, (c) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with respect to the Certificates,
any interest in the Certificates or any other similar security with, any person
in any manner, or made any general solicitation by means of general advertising
or in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the
Certificates, (d) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities Act and have completed either of the
forms of certification to that effect attached hereto as Annex 1 or Annex 2. We
are aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the Securities Act.

                                      J-3

<PAGE>

                                           Very truly yours,

                                           [NAME OF TRANSFEREE]

                                           By:___________________________
                                                 Authorized Officer

                                      J-4

<PAGE>

                                                            ANNEX 1 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         i.       As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         ii.      In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $_____(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A and (ii)
the Buyer satisfies the criteria in the category marked below.

                  ___ Corporation, etc. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution),
                  Massachusetts or similar business trust, partnership, or
                  charitable organization described in Section 501(c)(3) of the
                  Internal Revenue Code of 1986, as amended.

                  ___ Bank. The Buyer (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

                  ___ Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

------------------------
(1)      Buyer must own and/or invest on a discretionary basis at least $______
         in securities unless Buyer is a dealer, and, in that case, Buyer must
         own and/or invest on a discretionary basis at least $______ in
         securities.

                                      J-5

<PAGE>

                  ___ Broker-dealer. The Buyer is a dealer registered pursuant
                  to Section 15 of the Securities Exchange Act of 1934.

                  ___ Insurance Company. The Buyer is an insurance company whose
                  primary and predominant business activity is the writing of
                  insurance or the reinsuring of risks underwritten by insurance
                  companies and which is subject to supervision by the insurance
                  commissioner or a similar official or agency of a State,
                  territory or the District of Columbia.

                  ___ State or Local Plan. The Buyer is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

                  ___ ERISA Plan. The Buyer is an employee benefit plan within
                  the meaning of Title I of the Employee Retirement Income
                  Security Act of 1974.

                  ___ Investment Advisor. The Buyer is an investment advisor
                  registered under the Investment Advisors Act of 1940.

                  ___ Small Business Investment Company. Buyer is a small
                  business investment company licensed by the U.S. Small
                  Business Administration under Section 301(c) or (d) of the
                  Small Business Investment Act of 1958.

                  ___ Business Development Company. Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisors Act of 1940.

         iii.     The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

         iv.      For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. Further, in determining such aggregate
amount, the Buyer may have included securities owned by subsidiaries of the
Buyer, but only if such subsidiaries are consolidated with the Buyer in its
financial statements prepared in accordance with generally accepted accounting
principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934, as
amended.

                                      J-6

<PAGE>

         v.       The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

         vi.      Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                           _________________________________
                                           Print Name of Buyer

                                           By:______________________________
                                           Name:
                                           Title:

                                           Date:___________________

                                      J-7

<PAGE>

                                                            ANNEX 2 TO EXHIBIT J

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

         The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1.       As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

         2.       In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, as amended and (ii) as marked below, the Buyer alone, or the Buyer's
Family of Investment Companies, owned at least $100,000,000 in securities (other
than the excluded securities referred to below) as of the end of the Buyer's
most recent fiscal year. For purposes of determining the amount of securities
owned by the Buyer or the Buyer's Family of Investment Companies, the cost of
such securities was used, except (i) where the Buyer or the Buyer's Family of
Investment Companies reports its securities holdings in its financial statements
on the basis of their market value, and (ii) no current information with respect
to the cost of those securities has been published. If clause (ii) in the
preceding sentence applies, the securities may be valued at market.

                  ___ The Buyer owned $______ in securities (other than the
                  excluded securities referred to below) as of the end of the
                  Buyer's most recent fiscal year (such amount being calculated
                  in accordance with Rule 144A).

                  ___ The Buyer is part of a Family of Investment Companies
                  which owned in the aggregate $______ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         3.       The term "Family of Investment Companies" as used herein means
two or more registered investment companies (or series thereof) that have the
same investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4.       The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

                                      J-8

<PAGE>

         5.       The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

         6.       Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee
Certificate to which this certification relates of any changes in the
information and conclusions herein. Until such notice is given, the Buyer's
purchase of the Certificates will constitute a reaffirmation of this
certification by the undersigned as of the date of such purchase.

                                           _________________________________
                                           Print Name of Buyer or Adviser

                                           By:______________________________
                                           Name:
                                           Title:

                                           IF AN ADVISER:

                                           _________________________________
                                           Print Name of Buyer

                                           Date:___________________

                                      J-9

<PAGE>

                                    EXHIBIT K

                 FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT

         C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2003-CB3

STATE OF          )
                  ) ss.:
COUNTY OF         )

         The undersigned, being first duly sworn, deposes and says as follows:

         1.       The undersigned is [an officer of] ______________, the
proposed Transferee of an Ownership Interest in a [Class R and/or Class R-X
Certificates] (the "Residual Certificate") issued pursuant to the Pooling and
Servicing Agreement, (the "Agreement"), relating to the above-referenced
Certificates, among Merrill Lynch Mortgage Investors, Inc., as depositor,
Credit-Based Asset Servicing and Securitization LLC, as seller, Litton Loan
Servicing LP, as servicer, and U.S. Bank National Association, as trustee (the
"Trustee"). Capitalized terms used, but not defined herein shall have the
meanings ascribed to such terms in the Agreement. The Transferee has authorized
the undersigned to make this affidavit on behalf of the Transferee.

         2.       The Transferee is, as of the date hereof, and will be, as of
the date of the transfer, a Permitted Transferee. The Transferee is acquiring
the Residual Certificate either (i) for its own account or (ii) as nominee,
trustee or agent for another Person who is a Permitted Transferee and has
attached hereto an affidavit from such Person in substantially the same form as
this affidavit. The Transferee has no knowledge that any such affidavit is
false.

         3.       The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Residual Certificate to Persons that are
not Permitted Transferees; (ii) such tax will be imposed on the transferor, or,
if such transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
transfer, such Person does not have actual knowledge that the affidavit is
false.

         4.       The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record Holder of an interest in such entity. The
Transferee understands that, other than in the case of an "electing large
partnership" under Section 775 of the Code, such tax will not be imposed for any
period with respect to which the record Holder furnishes to the pass-through
entity an affidavit that such record Holder is a Permitted Transferee and the
pass-through entity does not have actual knowledge that such affidavit is false.
(For this purpose, a "pass-through entity" includes a regulated investment
company, a real estate investment trust or common trust fund, a partnership,
trust or estate, and certain cooperatives and, except as may be provided in
Treasury Regulations, persons holding interests in pass-through entities as a
nominee for another Person.)

                                      K-1

<PAGE>

         5.       The Transferee has reviewed the provisions of Section 5.02 of
the Agreement and understands the legal consequences of the acquisition of the
Residual Certificate including, without limitation, the restrictions on
subsequent Transfers and the provisions regarding voiding the transfer and
mandatory sales. The Transferee expressly agrees to be bound by and to abide by
the provisions of Section 5.02 of the Agreement and the restrictions noted on
the face of the Certificate. The Transferee understands and agrees that any
breach of any of the representations included herein shall render the transfer
to the Transferee contemplated hereby null and void.

         6.       The Transferee agrees to require a transfer affidavit in the
form of this Affidavit from any Person to whom the Transferee attempts to
transfer the Residual Certificate, and in connection with any transfer by a
Person for whom the Transferee is acting as nominee, trustee or agent, and the
Transferee will not transfer the Residual Certificate or cause the Residual
Certificate to be transferred to any Person that the Transferee knows is not a
Permitted Transferee.

         7.       The Transferee historically has paid its debts as they have
become due.

         8.       The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect to
the Residual Certificate.

         9.       The taxpayer identification number of the Transferee's nominee
is ___________.

         10.      The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

         11.      The Transferee is aware that the Residual Certificate may be a
"noneconomic residual interest" within the meaning of Treasury Regulations
promulgated pursuant to the Code and that the transferor of a noneconomic
residual interest will remain liable for any taxes due with respect to the
income on such residual interest, unless no significant purpose of the transfer
was to impede the assessment or collection of tax.

         12.      The Transferee will not cause income from the Residual
Certificate to be attributable to a foreign permanent establishment or fixed
base, within the meaning of an applicable income tax treaty, of the Transferee
or any other person.

         13.      If the Transferee is purchasing the Residual Certificate in a
transfer intended to meet the safe harbor provisions of Treasury Regulations
Sections 1.860E-1(c), the Transferee has executed and attached Attachment A
hereto.

         14.      The Transferee is not an employee benefit plan or arrangement,
including an individual retirement account, subject to ERISA, the Code or any
federal, state or local law which is similar to ERISA or the Code, and the
Transferee is not acting on behalf of such a plan or arrangement.

                                      * * *

                                      K-2

<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer this _____ day of ________________, ____.

                                           _________________________________
                                           Print Name of Transferee

                                           By:______________________________
                                           Name:
                                           Title:

         Personally appeared before me the above-named ________________________,
known or proved to me to be the same person who executed the foregoing
instrument and to be the _______________________ of the Transferee, and
acknowledged that he executed the same as his free act and deed and the free act
and deed of the Transferee.

         Subscribed and sworn before me this _____ day of ________________, ____

                                           _________________________________
                                                    NOTARY PUBLIC

                                           My Commission expires the ____ day of
                                           ______________,______

                                      K-3

<PAGE>

                                  ATTACHMENT A

                                       to

      AFFIDAVIT PURSUANT TO SECTION 860E(E)(4) OF THE INTERNAL REVENUE CODE
                OF 1986, AS AMENDED, AND FOR NON-ERISA INVESTORS

Check the appropriate box:

[ ]      The consideration paid to the Transferee to acquire the Residual
         Certificate equals or exceeds the excess of (a) the present value of
         the anticipated tax liabilities over (b) the present value of the
         anticipated savings associated with holding such Residual Certificate,
         in each case calculated in accordance with U.S. Treasury Regulations
         Sections 1.860E-1(c)(7) and (8), computing present values using a
         discount rate equal to the short-term Federal rate prescribed by
         Section 1274(d) of the Code and the compounding period used by the
         Transferee.

                                       OR

[ ]      The transfer of the Residual Certificate complies with U.S. Treasury
         Regulations Sections 1.860E-1(c)(5) and (6) and, accordingly:

         (i)      the Transferee is an "eligible corporation," as defined in
                  U.S. Treasury Regulations Section 1.860E-1(c)(6)(i), as to
                  which income from Residual Certificate will only be taxed in
                  the United States;

         (ii)     at the time of the transfer, and at the close of the
                  Transferee's two fiscal years preceding the year of the
                  transfer, the Transferee had gross assets for financial
                  reporting purposes (excluding any obligation of a person
                  related to the Transferee within the meaning of U.S. Treasury
                  Regulations Section 1.860E-1(c)(6)(ii)) in excess of $100
                  million and net assets in excess of $10 million;

         (iii)    the Transferee will transfer the Residual Certificate only to
                  another "eligible corporation," as defined in U.S. Treasury
                  Regulations Section 1.860E-1(c)(6)(i), in a transaction that
                  satisfies the requirements of Sections 1.860E-1(c)(4)(i), (ii)
                  and (iii) and Section 1.860E-1(c)(5) of the U.S. Treasury
                  Regulations;

         (iv)     the Transferee has determined the consideration paid to it to
                  acquire the Residual Certificate based on reasonable market
                  assumptions (including, but not limited to, borrowing and
                  investment rates, prepayment and loss assumptions, expense and
                  reinvestment assumptions, tax rates and other factors specific
                  to the Transferee) that it has determined in good faith; and

         (v)      in the event of any transfer of the Residual Certificate by
                  the Transferee, the Transferee will require its transferee to
                  complete a representation in the form of this Attachment A as
                  a condition of such transferee's purchase of the Residual
                  Certificate.

                                      K-4

<PAGE>

                                    EXHIBIT L

                         FORM OF TRANSFEROR CERTIFICATE

                                                              [DATE]

Merrill Lynch Mortgage Investors, Inc.
4 World Financial enter, 10th Floor
New York, New York 10080

U.S. Bank National Association
180 East Fifth Street
St. Paul, Minnesota 55101

         Re:     C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         In connection with our disposition of the C-BASS Mortgage Loan
Asset-Backed Certificates, Series 2003-CB3 (the "Certificates"), we certify that
(a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "Act"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action which would result in, a violation of Section 5 of the Act, (c) to
the extent we are disposing of a Class [ ] Certificate, we have no knowledge the
Transferee is not a Permitted Transferee and (d) no purpose of the proposed
disposition of a Class [ ] Certificate is to impede the assessment or collection
of tax.

                                           Very truly yours,

                                           [_______________________]

                                           By: ______________________________

                                      L-1

<PAGE>

                                    EXHIBIT M

                                   [RESERVED]

                                      M-1

<PAGE>

                                    EXHIBIT N

                        BLANKET LETTER OF REPRESENTATIONS

                             [INTENTIONALLY OMITTED]

                                      N-1

<PAGE>

                                    EXHIBIT O

                                   [RESERVED]

                                      O-1

<PAGE>

                                    EXHIBIT P

                    MONTHLY INFORMATION DELIVERED BY SERVICER

1.       With respect to the Mortgage Pool and each Loan Group, the number and
         Principal Balances of all Mortgage Loans which were the subject of
         Principal Prepayments during the related Prepayment Period.

2.       With respect to the Mortgage Pool and each Loan Group, the amount of
         all partial Principal Prepayments received by the Servicer during the
         related Prepayment Period.

3.       With respect to the Mortgage Pool and each Loan Group, the aggregate
         amount of principal portion of all Monthly Payments received during the
         related Collection Period.

4.       With respect to the Mortgage Pool and each Loan Group, the amount of
         interest received on the Mortgage Loans during the related Collection
         Period.

5.       With respect to the Mortgage Pool and each Loan Group, the aggregate
         amount of the Advances made and recovered with respect to such
         Distribution Date.

6.       With respect to the Mortgage Pool and each Loan Group, the delinquency
         and foreclosure information and the amount of Mortgage Loan Losses as
         of the close of business of the last day of the preceding Collection
         Period.

7.       With respect to the Mortgage Pool and each Loan Group, the weighted
         average maturity, the weighted average Mortgage Interest Rate and the
         weighted average Net Mortgage Interest Rate as of the last day of the
         preceding Collection Period preceding of the related Interest Accrual
         Period.

8.       The Servicing Fees paid and Servicing Fees accrued during the related
         Collection Period.

9.       The amount of all payments or reimbursements to the Servicer paid or to
         be paid since the prior Distribution Date (or in the case of the first
         Distribution Date, since the Closing Date).

10.      The Pool Balance and aggregate Principal Balance for each Loan Group.

11.      With respect to the Mortgage Pool and each Loan Group, the number of
         Mortgage Loans outstanding at the beginning and at the end of the
         related Collection Period.

12.      The aggregate interest accrued on the Mortgage Loans at their
         respective Mortgage Interest Rates for the related Collection Period

13.      The amount deposited in the Collection Account which may not be
         withdrawn therefrom pursuant to an order of a United States Bankruptcy
         Court of competent jurisdiction imposing a stay pursuant to Section 362
         of U.S. Bankruptcy Code.

14.      The aggregate Realized Losses since the Cut-off Date as of the end of
         the related Collection Period.

                                      P-1

<PAGE>

                                    EXHIBIT Q

                OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                              Officer's Certificate
         C-BASS Mortgage Loan Asset-Backed Certificates, Series 2003-CB3

<Date>

Via Facsimile

U.S. Bank National Association, as Trustee
180 East Fifth Street
St. Paul, Minnesota 55101

         Re:      Pre-Payments

Dear Sir or Madam:

         __________________ hereby certifies that he/she is an officer of the
Servicer, holding the office set forth beneath his/her name and hereby further
certifies as follows with respect to the Mortgage Loans set forth in the
attached schedule:

1.       A Principal Prepayment in full was received during the related
         Collection Period;

2.       Any prepayment penalty due under the terms of the Mortgage Note with
         respect to such Principal Prepayment in full was received from the
         mortgagor and deposited in the Collection Account; ____ Yes____ No

3.       As to each Mortgage Loan so noted on the attached schedule, all or part
         of the prepayment penalty required in connection with the Principal
         Prepayment in full was waived based upon (Circle one): (i) the
         Servicer's determination that such waiver would maximize recovery of
         Liquidation Proceeds for such Mortgage Loan, taking into account the
         value of such prepayment penalty, or (ii)(A) the enforceability thereof
         be limited (1) by bankruptcy insolvency, moratorium, receivership, or
         other similar law relating to creditors' rights generally or (2) due to
         acceleration in connection with a foreclosure or other involuntary
         payment, or (B) the enforceability is otherwise limited or prohibited
         by applicable law;

4.       We certify that all amounts due in connection with the waiver of a
         prepayment penalty inconsistent with number 3 above which are required
         to be deposited by the Servicer pursuant to Section 3.01 of the Pooling
         and Servicing Agreement, have been or will be so deposited.

         Capitalized terms used herein shall have the meanings ascribed to such
terms in the Pooling and Servicing Agreement, dated June 1, 2003, among Merrill
Lynch Mortgage Investors,

                                      Q-1

<PAGE>

Inc., as depositor, Credit-Based Asset Servicing and Securitization LLC, as
seller, Litton Loan Servicing LP, as servicer, and U.S. Bank National
Association.

                          By: LITTON LOAN SERVICING LP

                          ____________________________
                          Name:
                          Title:

                                      Q-2

<PAGE>

                                    EXHIBIT R

               FORM OF NOTICE OF PREPAYMENT PENALTY INCONSISTENCY

______________, 20__

Credit-Based Asset Servicing and Securitization LLC
335 Madison Avenue, 19th Floor
New York, New York 10017

         Re:     Pooling and Servicing Agreement (the "Agreement") dated as of
                 June 1, 2003, among Merrill Lynch Mortgage Investors, Inc.,
                 Credit-Based Asset Servicing and Securitization LLC, Litton
                 Loan Servicing LP and U.S. Bank National Association -
                 C-BASS Mortgage Loan Asset Backed Certificates, Series 2003-CB3

Ladies and Gentlemen:

         Pursuant to Section 3.01 of the Agreement, we have determined the
following inconsistency between the amount of the Prepayment Premium remitted by
the Servicer and the amount of the Prepayment Premium set forth in the Mortgage
Loan Schedule with respect to Mortgage Loan No. _____________:

                                   U.S. BANK NATIONAL ASSOCIATION,
                                          as Trustee

                                   By: _________________________________________
                                   Name: _______________________________________
                                   Title: ______________________________________

                                      R-1

<PAGE>

                                    EXHIBIT S

                              FORM OF CERTIFICATION

                   CERTIFICATION TO BE PROVIDED WITH FORM 10-K

                                 2003-CB3 TRUST,
         C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2003-CB3

I, [identify the certifying individual], certify that:

1.       I have reviewed this annual report on Form 10-K, and all reports on
         Form 8-K containing a copy of the monthly statement to
         certificateholders set forth in Section 4.06 of the Pooling and
         Servicing Agreement, dated as of June 1, 2003 (the "Agreement"), among
         Merrill Lynch Mortgage Investors, Inc., as depositor (the "Depositor"),
         Credit-Based Asset Servicing and Securitization LLC, as seller (the
         "Seller"), Litton Loan Servicing LP, as servicer (the "Servicer"), and
         U.S. Bank National Association, as trustee (the "Trustee"), filed in
         respect of periods included in the year covered by this annual report,
         of the 2003-CB3 Trust (the "Trust");

2.       Based on my knowledge, the information in these reports, taken as a
         whole, does not contain any untrue statement of a material fact or omit
         to state a material fact necessary to make the statements made, in
         light of the circumstances under which such statements were made, not
         misleading as of the last day of the period covered by this annual
         report;

3.       Based on my knowledge, the distribution or servicing information
         required to be provided to the Trustee by the Servicer under the
         Agreement for inclusion in these reports is included in these reports;

4.       I am responsible for reviewing the activities performed by the Servicer
         under the Agreement and based upon my knowledge and the annual
         compliance review required under the Agreement, and except as disclosed
         in the reports, the Servicer has fulfilled its obligations under the
         Agreement; and

5.       The reports disclose all significant deficiencies relating to the
         Servicer's compliance with the minimum servicing standards based upon
         the report provided by an independent public accountant, after
         conducting a review in compliance with the Uniform Single Attestation
         Program for Mortgage Bankers or similar procedure, as set forth in the
         Agreement, that is included in these reports.

6.       In giving the certifications above, I have reasonably relied on
         information provided to me by the following unaffiliated parties: U.S.
         Bank National Association.

                                                     By:________________________
                                                     Name:
                                                     Title:

                                      S-1

<PAGE>

                                    EXHIBIT T

       FORM OF CERTIFICATION TO BE PROVIDED BY THE TRUSTEE TO THE SERVICER

                                 2003-CB3 TRUST,
         C-BASS MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2003-CB3

         Reference is made to the Pooling and Servicing Agreement, dated as of
June 1, 2003 (the "Pooling Agreement"), by and among U.S. Bank National
Association (the "Trustee"), Credit-Based Asset Servicing and Securitization
LLC, as seller, Litton Loan Servicing LP, as servicer (the "Servicer") and
Merrill Lynch Mortgage Investors, Inc., as depositor (the "Depositor"). I,
[identify the certifying individual], certify to the Servicer, and its officers,
directors and affiliates, and with the knowledge and intent that they will rely
upon this certification, that:

1.       I have reviewed the annual report on Form 10-K for the calendar year
         [____], and all reports on Form 8-K containing distribution reports
         filed in respect of periods included in the year covered by that annual
         report of the Depositor relating to the above-referenced trust;

2.       Subject to paragraph (4) hereof, based on my knowledge, the
         distribution information in the distribution reports contained in all
         Form 8-K prepared by the Trustee, taken as a whole, does not contain
         any untrue statement of a material fact or omit to state a material
         fact necessary to make the statements made, in light of the
         circumstances under which such statements were made, not misleading as
         of the last day of the period covered by that annual report;

3.       Based on my knowledge, the distribution information required to be
         provided by the Trustee under the Pooling Agreement is included in
         these reports; and

4.       In compiling the distribution information and making the foregoing
         certifications, the Trustee has relied upon information furnished to it
         by the Servicer under the Pooling Agreement. The Trustee shall have no
         responsibility or liability for any inaccuracy in such reports
         resulting from information so provided by the Servicer.

                                           U.S. BANK NATIONAL ASSOCIATION,
                                                   as Trustee

                                          By:___________________________________
                                          Name:
                                          Title:

                                      T-1

<PAGE>

                                    EXHIBIT U

                SCHEDULE OF MORTGAGE LOANS WITHOUT TITLE POLICIES

<TABLE>
<CAPTION>
Loan Key     Loan Number
<S>          <C>
  1.
  2.
  3.
  4.
  5.
  6.
  7.
  8.
  9.
  10.
  11.
  12.
</TABLE>

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